XML 27 R11.htm IDEA: XBRL DOCUMENT v3.25.4
Investment Securities
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
The following is a summary of investment securities as of the dates indicated:

 December 31, 2025December 31, 2024
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses
Fair
Value		Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
 (Dollars in thousands)
Debt securities AFS:
U.S. Government agency and U.S. Government sponsored enterprises:
Agency securities$— $— $— $— $4,000 $— $(43)$3,957 
CMOs706,528 1,116 (91,137)616,507 861,179 152 (139,425)721,906 
MBS:
Residential521,939 3,549 (48,105)477,383 473,099 — (86,039)387,060 
Commercial502,092 1,807 (43,157)460,742 466,929 — (56,078)410,851 
Asset-backed securities129,854 150 (4)130,000 103,081 157 (14)103,224 
Corporate securities23,009 — (1,873)21,136 23,254 — (2,560)20,694 
Municipal securities134,969 645 (8,300)127,314 191,138 28 (15,615)175,551 
Total investment securities AFS$2,018,391 $7,267 $(192,576)$1,833,082 $2,122,680 $337 $(299,774)$1,823,243 
Debt securities HTM:
U.S. Government agency and U.S. Government sponsored enterprises:
MBS:
Residential$133,121 $— $(7,358)$125,763 $142,059 $— $(12,629)$129,430 
Commercial106,661 18 (5,418)101,261 110,326 — (8,632)101,694 
Total investment securities HTM$239,782 $18 $(12,776)$227,024 $252,385 $— $(21,261)$231,124 
Accrued interest receivable for investment debt securities at December 31, 2025 and 2024, totaled $8.3 million and $7.6 million, respectively.
At December 31, 2025 and 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.
Investments AFS and HTM of $18.5 million and $516.7 million, respectively, were acquired as part of the Merger with Territorial on April 2, 2025, and, immediately upon the Merger, all of the acquired investments were categorized as AFS according to management intent and sold. The investment securities were sold at a market value of $535.2 million, with no gain or loss impact on the Consolidated Statements of Income. See Note 19 “Business Combinations” for additional information regarding the Merger with Territorial.
As part of a strategic repositioning of investment securities, in June 2025, the Company sold a portion of its legacy investment securities portfolio AFS with a fair value of $417.9 million, consisting of lower-yielding collateralized mortgage obligations, mortgage-backed, corporate, and municipal securities, and recorded realized losses of $38.9 million. Net proceeds from these sales were redeployed to purchase higher-yielding investment securities AFS.
The table below summarizes the proceeds from and gains and losses on the sales of investment securities AFS, for the periods presented below.
Year Ended December 31,
202520242023
(Dollars in thousands)
Proceeds from sales of investment securities AFS$1,133,470 $276,252 $— 
Gains from sales of investment securities AFS$1,574 $2,908 $— 
Losses from sales of investment securities AFS(39,262)(1,972)— 
Net (losses) gains on sales of investment securities AFS$(37,688)$936 $— 
At December 31, 2025 and 2024, $129.3 million and $210.5 million in unrealized losses on investment securities AFS, net of taxes, respectively, were included in AOCI. For the year ended December 31, 2025 and 2024, $37.7 million in net losses on sales of investment securities AFS and $936 thousand in net gains on sales of investment securities AFS, respectively, was reclassified out of AOCI into earnings, compared with no reclassifications for the same period of 2023 as there were no sales of investments securities AFS.
The following table presents a breakdown of interest income recorded for investment securities that are taxable and nontaxable.
 Year Ended December 31,
 202520242023
 (Dollars in thousands)
Interest income on investment securities
Taxable$74,543 $65,285 $61,696 
Nontaxable1,692 3,264 4,367 
Total$76,235 $68,549 $66,063 
The amortized cost and estimated fair value of investment securities at December 31, 2025, by contractual maturity, are presented in the table below. Collateralized mortgage obligations, mortgage-backed securities, and asset-backed securities are presented by final maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.
Available for SaleHeld to Maturity
Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
 (Dollars in thousands)
Debt securities:
Due within one year$— $— $— $— 
Due after one year through five years— — 30,946 30,845 
Due after five years through ten years108,251 104,556 — — 
Due after ten years1,910,140 1,728,526 208,836 196,179 
Total$2,018,391 $1,833,082 $239,782 $227,024 
Securities with carrying values of approximately $229.2 million and $219.4 million at December 31, 2025 and 2024, respectively, were pledged to secure public deposits, for various borrowings, and for other purposes as required or permitted by law.
The following tables show the Company’s investments’ gross unrealized losses and estimated fair values, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated. The length of time that the individual securities have been in a continuous unrealized loss position is not a factor in determining credit impairment.    
December 31, 2025
Less than 12 months12 months or longerTotal
Description of
Securities AFS		Number 
of
Securities		Fair 
Value		Gross
Unrealized
Losses		Number 
of
Securities		Fair 
Value		Gross
Unrealized
Losses		Number 
of
Securities		Fair 
Value		Gross
Unrealized
Losses
  (Dollars in thousands)
U.S. Government agency and U.S. Government sponsored enterprises:
CMOs— $— $— 40 $463,133 $(91,137)40 $463,133 $(91,137)
MBS:
Residential2 9,718 (19)43 272,276 (48,086)45 281,994 (48,105)
Commercial7 64,572 (320)41 272,407 (42,837)48 336,979 (43,157)
Asset-backed securities1 5,003 (4)— — — 1 5,003 (4)
Corporate securities1 3,946 (54)4 17,190 (1,819)5 21,136 (1,873)
Municipal securities1 2,619 (12)27 87,292 (8,288)28 89,911 (8,300)
Total12 $85,858 $(409)155 $1,112,298 $(192,167)167 $1,198,156 $(192,576)


December 31, 2024
Less than 12 months12 months or longerTotal
Description of
Securities AFS		Number 
of
Securities		Fair 
Value		Gross
Unrealized
Losses		Number 
of
Securities		Fair 
Value		Gross
Unrealized
Losses		Number 
of
Securities		Fair 
Value		Gross
Unrealized
Losses
  (Dollars in thousands)
U.S. Government agency and U.S. Government sponsored enterprises:
Agency securities— $— $— 1 $3,957 $(43)1 $3,957 $(43)
CMOs7 59,661 (527)95 636,472 (138,898)102 696,133 (139,425)
MBS:
Residential2 19,183 (1,029)63 367,877 (85,010)65 387,060 (86,039)
Commercial10 70,728 (2,406)57 340,123 (53,672)67 410,851 (56,078)
Asset-backed securities1 5,007 (14)— — — 1 5,007 (14)
Corporate securities— — — 6 20,694 (2,560)6 20,694 (2,560)
Municipal securities18 77,119 (3,348)39 83,515 (12,267)57 160,634 (15,615)
Total38 $231,698 $(7,324)261 $1,452,638 $(292,450)299 $1,684,336 $(299,774)
The Company had CMO, MBS, corporate, and municipal securities classified as AFS that were in a continuous loss position for twelve months or longer at December 31, 2025. The CMO and MBS were investments in U.S. Government agency and U.S. Government sponsored enterprises and had high credit ratings (“AA” grade or better). The interest on corporate and municipal securities that were in an unrealized loss position has been paid as agreed, and the Company believes this will continue in the future and that the securities will be paid in full as scheduled. The market value declines for these securities were primarily due to movements in interest rates and were not reflective of management’s expectations of the Company’s ability to fully recover any unrealized losses, which may be at maturity.
At December 31, 2025, 86.6% of the Company’s investment portfolio consisted of securities that were issued by U.S. Government agency and U.S. Government sponsored enterprises. Although a government guarantee exists on securities issued by U.S. Government sponsored agencies, these entities are not legally backed by the full faith and credit of the federal government, and the current support is subject to a cap as part of the Housing and Economic Recovery Act of 2008. Nonetheless, at this time the Company does not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, the Company concluded that a zero allowance approach for these investments was appropriate. The Company also had one asset-backed security, five corporate securities, and 28 municipal bonds in unrealized loss positions at December 31, 2025.
Allowance for Credit Losses on Securities AFS—The Company evaluates investment securities AFS in unrealized loss positions for impairment related to credit losses on at least a quarterly basis. Investment securities AFS in unrealized loss positions are first assessed as to whether the Company intends to sell, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. In evaluating whether a credit loss exists, the Company has set up an initial quantitative filter for impairment triggers. Once the quantitative filter has been triggered, a security is placed on a watch list and an additional assessment is performed to identify whether a credit impairment exists. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. The Company did not have an allowance for credit losses on investment securities AFS at December 31, 2025 and 2024.
Allowance for Credit Losses on Securities HTM—For each major HTM debt security type, the allowance for credit losses is estimated collectively for groups of securities with similar risk characteristics. For securities that do not share similar risk characteristics, the losses are estimated individually. Debt securities that are issued by a U.S. government or government-sponsored enterprises are highly rated by major rating agencies and have a long history of no credit losses. Therefore, the Company applies a zero credit loss assumption on these investments. Any expected credit loss is recorded through the allowance for credit losses on investment securities HTM and deducted from the amortized cost basis of the security, so that the balance sheet reflects the net amount the Company expects to collect. At December 31, 2025, all of the Company’s investment securities HTM were issued by a U.S. government agency or government-sponsored enterprise. The Company did not have an allowance for credit losses on investment securities HTM at December 31, 2025 and 2024.