The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities.

The following tables present the amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized and unrecognized gains and losses including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI, at the dates indicated:


	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities	$	13,276	$	—	$	(1,634)	$	11,642
Municipal securities	59,581		19		(8,403)		51,197
Residential CMO and MBS(1)	321,733		1,487		(24,483)		298,737
Commercial CMO and MBS(1)	265,917		696		(10,618)		255,995
Corporate obligations	7,000		63		(44)		7,019
Other asset-backed securities	6,601		40		—		6,641
Total	$	674,108	$	2,305	$	(45,182)	$	631,231


	September 30, 2025
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	151,297	$	—	$	(21,846)	$	129,451
Residential CMO and MBS(1)	224,654		88		(10,188)		214,554
Commercial CMO and MBS(1)	305,675		22		(21,653)		284,044
Total	$	681,626	$	110	$	(53,687)	$	628,049


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities	$	14,934	$	—	$	(2,390)	$	12,544
Municipal securities	61,169		12		(10,239)		50,942
Residential CMO and MBS(1)	407,520		711		(38,900)		369,331
Commercial CMO and MBS(1)	330,249		134		(20,642)		309,741
Corporate obligations	11,700		181		(111)		11,770
Other asset-backed securities	10,020		47		(1)		10,066
Total	$	835,592	$	1,085	$	(72,283)	$	764,394


	December 31, 2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	151,216	$	—	$	(28,874)	$	122,342
Residential CMO and MBS(1)	244,309		—		(18,563)		225,746
Commercial CMO and MBS(1)	307,760		27		(32,423)		275,364
Total	$	703,285	$	27	$	(79,860)	$	623,452

The following table presents the amortized cost and fair value of investment securities by contractual maturity at the date indicated. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	September 30, 2025
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	500	$	501	$	—	$	—
Due after one year through five years	8,938		8,770		—		—
Due after five years through ten years	39,423		35,540		101,554		89,544
Due after ten years	30,996		25,047		49,743		39,907
Total investment securities due at a single maturity date	79,857		69,858		151,297		129,451
MBS(1)	594,251		561,373		530,329		498,598
Total investment securities	$	674,108	$	631,231	$	681,626	$	628,049

There were no holdings of investment securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity at September 30, 2025 and December 31, 2024.

The following tables present the gross unrealized losses and fair value of the Company’s investment securities available for sale for which an ACL on investment securities available for sale has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at the dates indicated:


	September 30, 2025
	Less than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government and agency securities	$	—	$	—		$	11,642	$	(1,634)	$	11,642	$	(1,634)
Municipal securities	1,247		—		*	45,486		(8,403)		46,733		(8,403)
Residential CMO and MBS(1)	1,775		(7)			181,249		(24,476)		183,024		(24,483)
Commercial CMO and MBS(1)	6,939		(6)			154,811		(10,612)		161,750		(10,618)
Corporate obligations	—		—			3,956		(44)		3,956		(44)
Other asset-backed securities	1,444		—		*	—		—		1,444		—		*
Total	$	11,405	$	(13)		$	397,144	$	(45,169)	$	408,549	$	(45,182)


	December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government and agency securities	$	—	$	—	$	12,544	$	(2,390)	$	12,544	$	(2,390)
Municipal securities	—		—		45,157		(10,239)		45,157		(10,239)
Residential CMO and MBS(1)	25,126		(321)		232,903		(38,579)		258,029		(38,900)
Commercial CMO and MBS(1)	17,772		(86)		270,897		(20,556)		288,669		(20,642)
Corporate obligations	—		—		3,890		(111)		3,890		(111)
Other asset-backed securities	1,568		(1)		—		—		1,568		(1)
Total	$	44,466	$	(408)	$	565,391	$	(71,875)	$	609,857	$	(72,283)

The Company evaluated investment securities available for sale as of September 30, 2025 and December 31, 2024, and determined that any declines in fair value were attributable to changes in interest rates relative to where these investments fall

within the yield curve and individual characteristics. Management monitors published credit ratings for adverse changes for all rated investment securities and none of these securities had a below investment grade credit rating as of either September 30, 2025 or December 31, 2024. In addition, the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of the amortized cost basis, which may be upon maturity. Therefore, no ACL on investment securities available for sale was recorded as of September 30, 2025 and December 31, 2024.

The Company also evaluated investment securities held to maturity for current expected credit losses as of September 30, 2025 and December 31, 2024. There were no investment securities held to maturity classified as nonaccrual or past due as of September 30, 2025 and December 31, 2024, and all were issued by the U.S. government and its agencies and either explicitly or implicitly guaranteed by the U.S. government, highly rated by major credit rating agencies and had a long history of no credit losses. Accordingly, the Company did not measure expected credit losses on investment securities held to maturity since the historical credit loss information adjusted for current conditions and reasonable and supportable forecast results in an expectation that nonpayment of the amortized cost basis is zero. Therefore, no ACL on investment securities held to maturity was recorded as of September 30, 2025 or December 31, 2024.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(Dollars in thousands)
Gross realized gains	$	—	$	—	$	—	$	—
Gross realized losses	—		(6,945)		(10,741)		(18,839)
Net realized losses	$	—	$	(6,945)	$	(10,741)	$	(18,839)


	September 30, 2025				December 31, 2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
State and local governments public deposits	$	226,998	$	217,525	$	236,047	$	220,104
FRB	399,815		360,030		434,534		373,410
Other securities pledged	55,447		51,059		53,296		48,169
Total	$	682,260	$	628,614	$	723,877	$	641,683

Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $2.3 million and $2.7 million at September 30, 2025 and December 31, 2024, respectively. Accrued interest receivable excluded from the amortized cost on investment securities held to maturity totaled $2.1 million and $2.2 million at September 30, 2025 and December 31, 2024, respectively.

No amounts of accrued interest receivable on investment securities available for sale or held to maturity were reversed against interest income on investment securities during the nine months ended September 30, 2025 and 2024.