Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Our available-for-sale investment securities were as follows:


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(In thousands)
March 31, 2025
Corporate bonds	$	10,000	$	—	$	(30)	$	9,970

Agency bond securities	238,184		—		(30,208)		207,976
Agency mortgage-backed securities	2,125,665		12		(262,288)		1,863,389
Municipal bonds	28,824		—		(5,875)		22,949

Total investment securities	$	2,402,673	$	12	$	(298,401)	$	2,104,284

December 31, 2024
Corporate bonds	$	10,000	$	—	$	(110)	$	9,890


Agency bond securities	240,628		—		(38,132)		202,496
Agency mortgage-backed securities	2,121,037		3		(323,467)		1,797,573
Municipal bonds	29,116		—		(6,273)		22,843

Total investment securities	$	2,400,781	$	3	$	(367,982)	$	2,032,802

As of March 31, 2025 and December 31, 2024, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:


	Less than 12 months				12 months or more				Total fair value		Total unrealized loss
	Fair value		Unrealized loss		Fair value		Unrealized loss
	(In thousands)
March 31, 2025
Corporate bonds	$	—	$	—	$	9,970	$	(30)	$	9,970	$	(30)
Agency bond securities	—		—		169,018		(30,208)		169,018		(30,208)
Agency mortgage-backed securities	85,489		(292)		1,096,475		(261,996)		1,181,964		(262,288)
Municipal bonds	—		—		22,949		(5,875)		22,949		(5,875)

Total investment securities	$	85,489	$	(292)	$	1,298,412	$	(298,109)	$	1,383,901	$	(298,401)

December 31, 2024
Corporate bonds	$	—	$	—	$	9,890	$	(110)	$	9,890	$	(110)

Agency bond securities	—		—		202,496		(38,132)		202,496		(38,132)
Agency mortgage-backed securities	15,311		(937)		1,781,301		(322,530)		1,796,612		(323,467)
Municipal bonds	—		—		22,843		(6,273)		22,843		(6,273)

Total investment securities	$	15,311	$	(937)	$	2,016,530	$	(367,045)	$	2,031,841	$	(367,982)

Our investments generally consist of highly rated securities, substantially all of which are directly or indirectly backed by the U.S. federal government, as our investment policy restricts our investments to highly liquid, low credit risk assets. As such, we have not recorded any credit-related impairment loss during the three months ended March 31, 2025 or 2024 on our available-for-sale investment securities. Unrealized losses as of March 31, 2025 and December 31, 2024 are the result of increases in interest rates relative to when they were purchased as our investment portfolio is comprised predominantly of fixed rate securities. Substantially all of the underlying securities within our investment portfolio were in an unrealized loss position as of March 31, 2025 and December 31, 2024 due to the timing of our investment purchases, as a significant portion of our investments were purchased prior to increases in interest rates by the Federal Reserve, and general volatility in market conditions.

Except as disclosed below, we do not currently intend to sell our remaining investments, and we have determined that it is more likely than not that we will not be required to sell our investments before recovery of their amortized cost bases, which may be at maturity.

Note 4—Investment Securities (continued)

In April 2025, we sold certain available-for-sales securities in order to reposition the proceeds into higher yielding assets. As a result, we recorded a realized loss of $24.5 million for the three months ended March 31, 2025 because we no longer had the intent to hold the securities until recovery of their amortized cost bases. The losses were recorded as a reduction of the amortized cost basis for each security and are reflected as a component of other expense, net on our consolidated statements of operations.

As of March 31, 2025, the contractual maturities of our available-for-sale investment securities were as follows:


	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	102,067	$	102,037
Due after one year through five years	86,247		80,042
Due after five years through ten years	117,226		99,530
Due after ten years	53,824		41,642
Mortgage and asset-backed securities	2,043,309		1,781,033
Total investment securities	$	2,402,673	$	2,104,284

The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.