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INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2025

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE 4 — INVESTMENT SECURITIES

The following tables summarize the amortized cost and fair value of AFS and HTM debt securities and equity investments and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses recognized in earnings (in thousands):


					Gross			Gross
					Unrealized/			Unrealized/
		Amortized			Unrecognized			Unrecognized
At June 30, 2025		Cost			Gains			Losses			Fair Value
Available-for-Sale Securities:
U.S. Government agency securities		$	67,999		$	—		$	(2,896)		$	65,103
U.S. State and Municipal securities			11,263			—			(1,820)			9,443
Residential MBS			486,014			2,343			(57,980)			430,377
Commercial MBS			45,839			14			(2,212)			43,641
Asset-backed securities			2,540			—			(75)			2,465
Total securities available-for-sale		$	613,655		$	2,357		$	(64,983)		$	551,029

Held-to-Maturity Securities:
U.S. Treasury securities		$	9,967		$	—		$	(156)		$	9,811
U.S. State and Municipal securities			15,193			—			(2,267)			12,926
Residential MBS			354,684			—			(48,120)			306,564
Commercial MBS			8,057			—			(664)			7,393
Total securities held-to-maturity		$	387,901		$	—		$	(51,207)		$	336,694

Equity Investments:
CRA Mutual Fund		$	5,584		$	—		$	(308)		$	5,276
Total equity investment securities		$	5,584		$	—		$	(308)		$	5,276


					Gross			Gross
					Unrealized/			Unrealized/
		Amortized			Unrecognized			Unrecognized
At December 31, 2024		Cost			Gains			Losses			Fair Value
Available-for-Sale Securities:
U.S. Government agency securities		$	67,999		$	—		$	(4,247)		$	63,752
U.S. State and Municipal securities			11,341			—			(1,841)			9,500
Residential MBS			430,968			854			(68,754)			363,068
Commercial MBS			46,094			—			(2,966)			43,128
Asset-backed securities			2,677			—			(40)			2,637
Total securities available-for-sale		$	559,079		$	854		$	(77,848)		$	482,085

Held-to-Maturity Securities:
U.S. Treasury securities		$	29,938		$	—		$	(410)		$	29,528
U.S. State and Municipal securities			15,319			—			(1,686)			13,633
Residential MBS			375,232			—			(58,866)			316,366
Commercial MBS			8,068			—			(876)			7,192
Total securities held-to-maturity		$	428,557		$	—		$	(61,838)		$	366,719

Equity Investments:
CRA Mutual Fund		$	5,503		$	—		$	(394)		$	5,109
Total equity investment securities		$	5,503		$	—		$	(394)		$	5,109

There were no proceeds from sales or calls of AFS securities for the three and six months ended June 30, 2025 and 2024.

The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):


		Held-to-Maturity						Available-for-Sale
At June 30, 2025		Amortized Cost			Fair Value			Amortized Cost			Fair Value
Due within 1 year		$	9,967		$	9,811		$	47,999		$	47,407
After 1 year through 5 years			—			—			15,000			14,027
After 5 years through 10 years			—			—			4,825			3,894
After 10 years			15,193			12,926			11,438			9,218
Mortgage-backed and Asset-backed Securities			362,741			313,957			534,393			476,483
Total Securities		$	387,901		$	336,694		$	613,655		$	551,029


		Held-to-Maturity						Available-for-Sale
At December 31, 2024		Amortized Cost			Fair Value			Amortized Cost			Fair Value
Due within 1 year		$	29,938			29,527			38,000			36,954
After 1 year through 5 years			—			—			24,999			23,200
After 5 years through 10 years			—			—			4,827			3,713
After 10 years			15,319			13,633			11,514			9,385
Mortgage-backed and Asset-backed Securities			383,300			323,559			479,739			408,833
Total Securities		$	428,557		$	366,719		$	559,079		$	482,085

At June 30, 2025, there was $779.8 million of securities pledged to support wholesale funding, and to a lesser extent certain other types of deposits, of which $106.6 million was encumbered. At December 31, 2024, there were $750.3 million of securities pledged to support wholesale funding, and to a lesser extent certain other types of deposits, of which $65.5 million was encumbered.

At June 30, 2025 and December 31, 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. At June 30, 2025 and December 31, 2024, all of the residential MBS and commercial MBS held by the Company were issued by U.S. Government-sponsored entities and agencies.

The following tables present debt securities with unrealized/unrecognized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):


		Less than 12 Months						12 Months or More						Total
					Unrealized/						Unrealized/						Unrealized/
		Estimated			Unrecognized			Estimated			Unrecognized			Estimated			Unrecognized
At June 30, 2025		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Available-for-Sale Securities:
U.S. Government agency securities		$	—		$	—		$	65,103		$	(2,896)		$	65,103		$	(2,896)
U.S. State and Municipal securities			—			—			9,443			(1,820)			9,443			(1,820)
Residential MBS			37,453			(299)			251,642			(57,681)			289,095			(57,980)
Commercial MBS			10,710			(39)			23,503			(2,173)			34,213			(2,212)
Asset-backed securities			—			—			2,465			(75)			2,465			(75)
Total securities available-for-sale		$	48,163		$	(338)		$	352,156		$	(64,645)		$	400,319		$	(64,983)

Held-to-Maturity Securities:
U.S. Treasury securities		$	—		$	—		$	9,811		$	(156)		$	9,811		$	(156)
U.S. State and Municipal securities			—			—			12,926			(2,267)			12,926			(2,267)
Residential MBS			—			—			306,564			(48,120)			306,564			(48,120)
Commercial MBS			—			—			7,393			(664)			7,393			(664)
Total securities held-to-maturity		$	—		$	—		$	336,694		$	(51,207)		$	336,694		$	(51,207)


		Less than 12 Months						12 Months or More						Total
					Unrealized/						Unrealized/						Unrealized/
		Estimated			Unrecognized			Estimated			Unrecognized			Estimated			Unrecognized
At December 31, 2024		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Available-for-Sale Securities:
U.S. Government agency securities		$	—		$	—		$	63,752		$	(4,247)		$	63,752		$	(4,247)
U.S. State and Municipal securities			—			—			9,500			(1,841)			9,500			(1,841)
Residential MBS			46,859			(1,104)			258,763			(67,650)			305,622			(68,754)
Commercial MBS			19,624			(410)			23,504			(2,556)			43,128			(2,966)
Asset-backed securities			—			—			2,637			(40)			2,637			(40)
Total securities available-for-sale		$	66,483		$	(1,514)		$	358,156		$	(76,334)		$	424,639		$	(77,848)

Held-to-Maturity Securities:
U.S. Treasury securities		$	—		$	—		$	29,528		$	(410)		$	29,528		$	(410)
U.S. State and Municipal securities			—			—			13,633			(1,686)			13,633			(1,686)
Residential MBS			—			—			316,366			(58,866)			316,366			(58,866)
Commercial MBS			—			—			7,192			(876)			7,192			(876)
Total securities held-to-maturity		$	—		$	—		$	366,719		$	(61,838)		$	366,719		$	(61,838)

Except for U.S. State and Municipal securities, the Company has a zero loss expectation for its HTM securities portfolio, and therefore has no ACL related to these securities. Obligations of U.S. State and Municipal securities were rated investment grade and the associated ACL was immaterial at June 30, 2025 and December 31, 2024

AFS securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. The unrealized losses on AFS securities are primarily due to the changes in market interest rates subsequent to purchase. In addition, the Company does not intend, nor would it be required, to sell these investments until there is a full recovery of

the unrealized loss, which may be at maturity. As a result, no ACL was recognized during the three and six months ended June 30, 2025 and 2024.