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v3.25.3

Securities | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities Securities available for sale (“AFS”) consist of the following:
| Amortized Cost |  | Unrealized |  |
|  | Gains |  | Losses |  | Fair Value
| (In thousands)
September 30, 2025 |  |  |  |  |  |  |
U.S. agency | $ | 8,509 |  |  | $ | 1 |  |  | $ | 439 |  |  | $ | 8,071 |
U.S. agency residential mortgage-backed | 85,014 |  |  | 117 |  |  | 6,935 |  |  | 78,196 |
U.S. agency commercial mortgage-backed | 8,362 |  |  | — |  |  | 907 |  |  | 7,455 |
Private label mortgage-backed | 44,358 |  |  | 262 |  |  | 2,684 |  |  | 41,936 |
Other asset backed | 32,548 |  |  | 24 |  |  | 443 |  |  | 32,129 |
Obligations of states and political subdivisions | 320,802 |  |  | — |  |  | 41,187 |  |  | 279,615 |
Corporate | 56,080 |  |  | 11 |  |  | 1,891 |  |  | 54,200 |
Trust preferred | 989 |  |  | — |  |  | 8 |  |  | 981 |
Total | $ | 556,662 |  |  | $ | 415 |  |  | $ | 54,494 |  |  | $ | 502,583 |
December 31, 2024 |  |  |  |  |  |  |
U.S. agency | $ | 8,858 |  |  | $ | 1 |  |  | $ | 700 |  |  | $ | 8,159 |
U.S. agency residential mortgage-backed | 80,589 |  |  | 47 |  |  | 9,499 |  |  | 71,137 |
U.S. agency commercial mortgage-backed | 12,821 |  |  | — |  |  | 1,180 |  |  | 11,641 |
Private label mortgage-backed | 74,268 |  |  | 263 |  |  | 4,496 |  |  | 70,035 |
Other asset backed | 39,232 |  |  | 18 |  |  | 734 |  |  | 38,516 |
Obligations of states and political subdivisions | 330,874 |  |  | 14 |  |  | 42,097 |  |  | 288,791 |
Corporate | 73,960 |  |  | — |  |  | 4,039 |  |  | 69,921 |
Trust preferred | 986 |  |  | — |  |  | 4 |  |  | 982 |
Total | $ | 621,588 |  |  | $ | 343 |  |  | $ | 62,749 |  |  | $ | 559,182 |
Securities held to maturity (“HTM”) consist of the following:
| Carrying Value |  | Transferred Unrealized Loss (1) |  | ACL |  | Amortized Cost |  | Unrealized |  | Fair Value
|  |  |  |  | Gains |  | Losses |
| (In thousands)
September 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency | $ | 23,119 |  |  | $ | 1,280 |  |  | $ | — |  |  | $ | 24,399 |  |  | $ | — |  |  | $ | 3,929 |  |  | $ | 20,470 |
U.S. agency residential mortgage-backed | 94,648 |  |  | 7,916 |  |  | — |  |  | 102,564 |  |  | — |  |  | 19,715 |  |  | 82,849 |
U.S. agency commercial mortgage-backed | 3,926 |  |  | 76 |  |  | — |  |  | 4,002 |  |  | — |  |  | 261 |  |  | 3,741 |
Private label mortgage-backed | 7,310 |  |  | 106 |  |  | 2 |  |  | 7,418 |  |  | — |  |  | 315 |  |  | 7,103 |
Obligations of states and political subdivisions | 150,784 |  |  | 4,089 |  |  | 19 |  |  | 154,892 |  |  | 43 |  |  | 15,366 |  |  | 139,569 |
Corporate | 40,706 |  |  | 260 |  |  | 67 |  |  | 41,033 |  |  | — |  |  | 2,523 |  |  | 38,510 |
Trust preferred | 957 |  |  | 39 |  |  | 4 |  |  | 1,000 |  |  | — |  |  | — |  |  | 1,000 |
Total | $ | 321,450 |  |  | $ | 13,766 |  |  | $ | 92 |  |  | $ | 335,308 |  |  | $ | 43 |  |  | $ | 42,109 |  |  | $ | 293,242 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency | $ | 24,150 |  |  | $ | 1,404 |  |  | $ | — |  |  | $ | 25,554 |  |  | $ | — |  |  | $ | 4,987 |  |  | $ | 20,567 |
U.S. agency residential mortgage-backed | 100,700 |  |  | 8,669 |  |  | — |  |  | 109,369 |  |  | — |  |  | 24,631 |  |  | 84,738 |
U.S. agency commercial mortgage-backed | 4,013 |  |  | 107 |  |  | — |  |  | 4,120 |  |  | — |  |  | 402 |  |  | 3,718 |
Private label mortgage-backed | 7,350 |  |  | 190 |  |  | 1 |  |  | 7,541 |  |  | — |  |  | 551 |  |  | 6,990 |
Obligations of states and political subdivisions | 156,305 |  |  | 5,262 |  |  | 17 |  |  | 161,584 |  |  | 28 |  |  | 19,461 |  |  | 142,151 |
Corporate | 45,964 |  |  | 496 |  |  | 111 |  |  | 46,571 |  |  | — |  |  | 3,875 |  |  | 42,696 |
Trust preferred | 954 |  |  | 43 |  |  | 3 |  |  | 1,000 |  |  | — |  |  | — |  |  | 1,000 |
Total | $ | 339,436 |  |  | $ | 16,171 |  |  | $ | 132 |  |  | $ | 355,739 |  |  | $ | 28 |  |  | $ | 53,907 |  |  | $ | 301,860 |
(1)Represents the remaining unrealized loss to be accreted on securities that were transferred from AFS to HTM on April 1, 2022. Our investments' gross unrealized losses and fair values for securities AFS aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:
| Less Than Twelve Months |  | Twelve Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (In thousands)
September 30, 2025 |  |  |  |  |  |  |  |  |  |  |
U.S. agency | $ | 1,232 |  |  | $ | 7 |  |  | $ | 6,710 |  |  | $ | 432 |  |  | $ | 7,942 |  |  | $ | 439 |
U.S. agency residential mortgage-backed | 6,395 |  |  | 11 |  |  | 50,236 |  |  | 6,924 |  |  | 56,631 |  |  | 6,935 |
U.S. agency commercial mortgage-backed | — |  |  | — |  |  | 7,456 |  |  | 907 |  |  | 7,456 |  |  | 907 |
Private label mortgage-backed | — |  |  | — |  |  | 40,298 |  |  | 2,684 |  |  | 40,298 |  |  | 2,684 |
Other asset backed | 1,021 |  |  | 4 |  |  | 25,368 |  |  | 439 |  |  | 26,389 |  |  | 443 |
Obligations of states and political subdivisions | 155 |  |  | 10 |  |  | 279,299 |  |  | 41,177 |  |  | 279,454 |  |  | 41,187 |
Corporate | — |  |  | — |  |  | 52,503 |  |  | 1,891 |  |  | 52,503 |  |  | 1,891 |
Trust preferred | — |  |  | — |  |  | 982 |  |  | 8 |  |  | 982 |  |  | 8 |
Total | $ | 8,803 |  |  | $ | 32 |  |  | $ | 462,852 |  |  | $ | 54,462 |  |  | $ | 471,655 |  |  | $ | 54,494 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
U.S. agency | $ | 324 |  |  | $ | 1 |  |  | $ | 7,565 |  |  | $ | 699 |  |  | $ | 7,889 |  |  | $ | 700 |
U.S. agency residential mortgage-backed | 147 |  |  | — |  |  | 61,219 |  |  | 9,499 |  |  | 61,366 |  |  | 9,499 |
U.S. agency commercial mortgage-backed | — |  |  | — |  |  | 11,641 |  |  | 1,180 |  |  | 11,641 |  |  | 1,180 |
Private label mortgage-backed | 2,551 |  |  | 8 |  |  | 66,411 |  |  | 4,488 |  |  | 68,962 |  |  | 4,496 |
Other asset backed | 3,984 |  |  | 19 |  |  | 27,052 |  |  | 715 |  |  | 31,036 |  |  | 734 |
Obligations of states and political subdivisions | 221 |  |  | 1 |  |  | 288,570 |  |  | 42,096 |  |  | 288,791 |  |  | 42,097 |
Corporate | 1,473 |  |  | 23 |  |  | 68,448 |  |  | 4,016 |  |  | 69,921 |  |  | 4,039 |
Trust preferred | — |  |  | — |  |  | 982 |  |  | 4 |  |  | 982 |  |  | 4 |
Total | $ | 8,700 |  |  | $ | 52 |  |  | $ | 531,888 |  |  | $ | 62,697 |  |  | $ | 540,588 |  |  | $ | 62,749 |
Securities AFS in unrealized loss positions are evaluated quarterly for impairment related to credit losses. For securities AFS in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. No securities AFS met these two criteria during the periods presented. For securities AFS that do not meet this criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, adverse conditions specifically related to the security and the issuer and the impact of changes in market interest rates on the market value of the security, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. 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 ACL is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, net of applicable taxes. No ACL for securities AFS was needed at September 30, 2025 and December 31, 2024. Accrued interest receivable on securities AFS totaled $3.1 million and $3.9 million at September 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses and is included in accrued income and other assets in the interim Condensed Consolidated Statements of Financial Condition. U.S. agency, U.S. agency residential mortgage-backed and U.S. agency commercial mortgage-backed securities — at September 30, 2025, we had 29 U.S. agency, 88 U.S. agency residential mortgage-backed and 9 U.S. agency commercial mortgage-backed securities whose fair value is less than amortized cost. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. The unrealized losses are largely attributed to widening spreads to Treasury bonds and/or an increase in interest rates since acquisition. Private label mortgage backed, other asset backed and corporate securities — at September 30, 2025, we had 50 private label mortgage backed, 37 other asset backed, and 58 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and/or an increase in interest rates since acquisition. Obligations of states and political subdivisions — at September 30, 2025, we had 290 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to an increase in interest rates since acquisition. Trust preferred securities — at September 30, 2025, we had one trust preferred security whose fair value is less than amortized cost. This trust preferred security is a single issue security issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening. This security is rated by a major rating agency as investment grade. At September 30, 2025 management does not intend to liquidate any of the securities discussed above and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses. We recorded no credit related charges in our interim Condensed Consolidated Statements of Operations related to securities AFS during the three and nine month periods ended September 30, 2025 and 2024, respectively. The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of securities HTM to present the net amount expected to be collected. Securities HTM are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in our interim Condensed Consolidated Statements of Operations in provision for credit losses. We measure expected credit losses on securities HTM on a collective basis by major security type with each type sharing similar risk characteristics, and consider historical credit loss information. Accrued interest receivable on securities HTM totaled $1.7 million at both September 30, 2025 and December 31, 2024, respectively and is excluded from the estimate of credit losses and is included in accrued income and other assets in the interim Condensed Consolidated Statements of Financial Condition. With regard to U.S. Government-sponsored agency and mortgage-backed securities (residential and commercial), all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to obligations of states and political subdivisions, private label-mortgage-backed, corporate and trust preferred securities HTM, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. During the first quarter of 2023, one corporate security (Signature Bank) defaulted resulting in a full charge-off. Subsequent to this security's charge-off, a portion of its fair value had recovered and was subsequently sold during the first quarter of 2024 for $1.1 million during which period we recorded that amount as a recovery to the ACL. Despite this lone security loss, the long-term historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. Furthermore, as of September 30, 2025 and December 31, 2024, there were no past due principal and interest payments associated with these securities. At those same dates an allowance for credit losses of $92,000 and $132,000, respectively was recorded on non U.S. agency securities HTM based on applying the long-term historical credit loss rate, as published by credit rating agencies, for similar ly rated securities. On a quarterly basis, we monitor the credit quality of securities HTM through the use of credit ratings. The carrying value of securities HTM aggregated by credit quality follow:
| Private Label Mortgage- Backed |  | Obligations of States and Political Subdivisions |  | Corporate |  | Trust Preferred |  | Carrying Value Total
| (In thousands)
September 30, 2025 |  |  |  |  |  |  |  |  |
Credit rating: |  |  |  |  |  |  |  |  |
AAA | $ | 7,310 |  |  | $ | 17,764 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,074 |
AA | — |  |  | 117,374 |  |  | — |  |  | — |  |  | 117,374 |
A | — |  |  | 1,886 |  |  | 5,003 |  |  | — |  |  | 6,889 |
BBB | — |  |  | 443 |  |  | 30,751 |  |  | — |  |  | 31,194 |
BB | — |  |  | — |  |  | 1,979 |  |  | — |  |  | 1,979 |
Non-rated | — |  |  | 13,317 |  |  | 2,973 |  |  | 957 |  |  | 17,247 |
Total | $ | 7,310 |  |  | $ | 150,784 |  |  | $ | 40,706 |  |  | $ | 957 |  |  | $ | 199,757 |
December 31, 2024 |  |  |  |  |  |  |  |  |
Credit rating: |  |  |  |  |  |  |  |  |
AAA | $ | 7,350 |  |  | $ | 34,973 |  |  | $ | — |  |  | $ | — |  |  | $ | 42,323 |
AA | — |  |  | 101,112 |  |  | — |  |  | — |  |  | 101,112 |
A | — |  |  | 3,473 |  |  | 5,005 |  |  | — |  |  | 8,478 |
BBB | — |  |  | 652 |  |  | 36,045 |  |  | — |  |  | 36,697 |
BB | — |  |  | — |  |  | 1,963 |  |  | — |  |  | 1,963 |
Non-rated | — |  |  | 16,095 |  |  | 2,951 |  |  | 954 |  |  | 20,000 |
Total | $ | 7,350 |  |  | $ | 156,305 |  |  | $ | 45,964 |  |  | $ | 954 |  |  | $ | 210,573 |
An analysis of the allowance for credit losses by security HTM type for the three months ended September 30 follows:
| Private Label Mortgage- Backed |  | Obligations of States and Political Subdivisions |  | Corporate |  | Trust Preferred |  | Total
| (In thousands)
2025 |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 1 |  |  | $ | 17 |  |  | $ | 111 |  |  | $ | 4 |  |  | $ | 133 |
Additions (deductions) |  |  |  |  |  |  |  |  |
Provision for credit losses | 1 |  |  | 2 |  |  | (44) |  |  | — |  |  | (41) |
Recoveries credited to the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Securities HTM charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 2 |  |  | $ | 19 |  |  | $ | 67 |  |  | $ | 4 |  |  | $ | 92 |
2024 |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 4 |  |  | $ | 31 |  |  | $ | 116 |  |  | $ | 4 |  |  | $ | 155 |
Additions (deductions) |  |  |  |  |  |  |  |  |
Provision for credit losses | (3) |  |  | (14) |  |  | (5) |  |  | — |  |  | (22) |
Recoveries credited to the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Securities HTM charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 1 |  |  | $ | 17 |  |  | $ | 111 |  |  | $ | 4 |  |  | $ | 133 |
An analysis of the allowance for credit losses by security HTM type for the nine months ended September 30 follows:
| Private Label Mortgage- Backed |  | Obligations of States and Political Subdivisions |  | Corporate |  | Trust Preferred |  | Total
| (In thousands)
2025 |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 1 |  |  | $ | 17 |  |  | $ | 111 |  |  | $ | 3 |  |  | $ | 132 |
Additions (deductions) |  |  |  |  |  |  |  |  |
Provision for credit losses | 1 |  |  | 2 |  |  | (44) |  |  | 1 |  |  | (40) |
Recoveries credited to the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Securities HTM charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 2 |  |  | $ | 19 |  |  | $ | 67 |  |  | $ | 4 |  |  | $ | 92 |
2024 |  |  |  |  |  |  |  |  |
Balance at beginning of period | $ | 4 |  |  | $ | 33 |  |  | $ | 116 |  |  | $ | 4 |  |  | $ | 157 |
Additions (deductions) |  |  |  |  |  |  |  |  |
Provision for credit losses | (3) |  |  | (16) |  |  | (1,130) |  |  | — |  |  | (1,149) |
Recoveries credited to the allowance | — |  |  | — |  |  | 1,125 |  |  | — |  |  | 1,125 |
Securities HTM charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 1 |  |  | $ | 17 |  |  | $ | 111 |  |  | $ | 4 |  |  | $ | 133 |
The amortized cost and fair value of securities AFS and securities HTM at September 30, 2025, by contractual maturity, follow:
| Securities AFS |  | Securities HTM
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (In thousands)
Maturing within one year | $ | 24,490 |  |  | $ | 24,216 |  |  | $ | 13,117 |  |  | $ | 12,967 |
Maturing after one year but within five years | 127,044 |  |  | 120,736 |  |  | 48,794 |  |  | 46,630 |
Maturing after five years but within ten years | 42,007 |  |  | 38,417 |  |  | 91,368 |  |  | 82,613 |
Maturing after ten years | 192,839 |  |  | 159,498 |  |  | 68,045 |  |  | 57,339 |
| 386,380 |  |  | 342,867 |  |  | 221,324 |  |  | 199,549 |
U.S. agency residential mortgage-backed | 85,014 |  |  | 78,196 |  |  | 102,564 |  |  | 82,849 |
U.S. agency commercial mortgage-backed | 8,362 |  |  | 7,455 |  |  | 4,002 |  |  | 3,741 |
Private label mortgage-backed | 44,358 |  |  | 41,936 |  |  | 7,418 |  |  | 7,103 |
Other asset backed | 32,548 |  |  | 32,129 |  |  | — |  |  | — |
Total | $ | 556,662 |  |  | $ | 502,583 |  |  | $ | 335,308 |  |  | $ | 293,242 |
The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Gains and losses realized on the sale of securities AFS are determined using the specific identification method and are recognized on a trade-date basis. A summary of proceeds from the sale of securities AFS and gains and losses for the nine month periods ending September 30, follows:
|  |  | Realized
| Proceeds |  | Gains |  | Losses
| (In thousands)
2025 | $ | 30,581 |  |  | $ | 37 |  |  | $ | 392 |
2024 | 39,431 |  |  | 14 |  |  | 428 |
During the second quarter of 2024 we acquired certain securities classified as equity securities at fair value consisting of Visa Inc. Class C common stock. These securities were all sold during the second and third quarters of 2024. During both the three and nine months ended September 30, 2024, we recognized gains (losses) on these equity securities of $(0.01) million and $2.7 million, respectively that are included in net gains on equity securities at fair value in the interim Condensed Consolidated Statements of Operations. We had no equity securities at fair value during the same periods in 2025. See note #13.

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