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INVESTMENT SECURITIES

9 Months Ended

Sep. 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 September 30, 2025		Cost			Gains			Losses			Fair Value
Available-for-Sale Securities:
U.S. Government agency securities		$	40,000		$	—		$	(2,148)		$	37,852
U.S. State and Municipal securities			11,224			—			(1,584)			9,640
Residential MBS			509,919			2,567			(53,561)			458,925
Commercial MBS			45,653			28			(2,063)			43,618
Asset-backed securities			2,478			—			(72)			2,406
Total securities available-for-sale		$	609,274		$	2,595		$	(59,428)		$	552,441

Held-to-Maturity Securities:
U.S. Treasury securities		$	9,983		$	—		$	(74)		$	9,909
U.S. State and Municipal securities			15,130			—			(1,794)			13,336
Residential MBS			343,282			—			(44,259)			299,023
Commercial MBS			8,052			—			(558)			7,494
Total securities held-to-maturity		$	376,447		$	—		$	(46,685)		$	329,762

Equity Investments:
CRA Mutual Fund		$	5,814		$	—		$	(266)		$	5,548
Total equity investment securities		$	5,814		$	—		$	(266)		$	5,548


					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 nine months ended September 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 September 30, 2025		Amortized Cost			Fair Value			Amortized Cost			Fair Value
Due within 1 year		$	9,983		$	9,910		$	20,000		$	19,856
After 1 year through 5 years			—			—			15,000			14,129
After 5 years through 10 years			—			—			4,824			3,966
After 10 years			15,130			13,336			11,400			9,541
Mortgage-backed and Asset-backed Securities			351,334			306,516			558,050			504,949
Total Securities		$	376,447		$	329,762		$	609,274		$	552,441


		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 September 30, 2025, there was $798.7 million of securities pledged to support wholesale funding, and to a lesser extent certain other types of deposits, of which $104.5 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 September 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 September 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 September 30, 2025		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Available-for-Sale Securities:
U.S. Government agency securities		$	—		$	—		$	37,852		$	(2,148)		$	37,852		$	(2,148)
U.S. State and Municipal securities			—			—			9,640			(1,584)			9,640			(1,584)
Residential MBS			12,696			(70)			247,336			(53,491)			260,032			(53,561)
Commercial MBS			10,797			(17)			23,391			(2,046)			34,188			(2,063)
Asset-backed securities			—			—			2,406			(72)			2,406			(72)
Total securities available-for-sale		$	23,493		$	(87)		$	320,625		$	(59,341)		$	344,118		$	(59,428)

Held-to-Maturity Securities:
U.S. Treasury securities		$	—		$	—		$	9,909		$	(74)		$	9,909		$	(74)
U.S. State and Municipal securities			—			—			13,336			(1,794)			13,336			(1,794)
Residential MBS			—			—			299,023			(44,258)			299,023			(44,258)
Commercial MBS			—			—			7,494			(558)			7,494			(558)
Total securities held-to-maturity		$	—		$	—		$	329,762		$	(46,684)		$	329,762		$	(46,684)


		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 September 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 nine months ended September 30, 2025 and 2024.