Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Securities available for sale (“AFS”) consist of the following:


	Amortized Cost		Unrealized
			Gains		Losses		Fair Value
	(In thousands)
March 31, 2026
U.S. agency	$	7,678	$	1	$	428	$	7,251
U.S. agency residential mortgage-backed	92,239		155		6,906		85,488
U.S. agency commercial mortgage-backed	7,846		—		879		6,967
Private label mortgage-backed	39,248		239		2,380		37,107
Other asset backed	29,357		29		447		28,939
Obligations of states and political subdivisions	316,538		1		42,979		273,560
Corporate	43,775		1		1,777		41,999
Trust preferred	991		—		7		984
Total	$	537,672	$	426	$	55,803	$	482,295

December 31, 2025
U.S. agency	$	8,320	$	1	$	404	$	7,917
U.S. agency residential mortgage-backed	87,435		136		6,506		81,065
U.S. agency commercial mortgage-backed	8,039		—		853		7,186
Private label mortgage-backed	42,689		260		2,443		40,506
Other asset backed	30,633		31		479		30,185
Obligations of states and political subdivisions	319,402		—		39,000		280,402
Corporate	49,355		2		1,696		47,661
Trust preferred	990		—		3		987
Total	$	546,863	$	430	$	51,384	$	495,909

Securities held to maturity (“HTM”) consist of the following:


	Carrying Value		Transferred Unrealized Loss (1)		ACL		Amortized Cost		Unrecognized				Fair Value
									Gains		Losses
	(In thousands)
March 31, 2026
U.S. agency	$	22,254	$	1,191	$	—	$	23,445	$	—	$	3,776	$	19,669
U.S. agency residential mortgage-backed	91,271		7,475		—		98,746		—		19,885		78,861
U.S. agency commercial mortgage-backed	3,566		52		—		3,618		—		246		3,372
Private label mortgage-backed	7,274		55		2		7,331		—		231		7,100
Obligations of states and political subdivisions	147,326		3,370		19		150,715		21		16,175		134,561
Corporate	28,357		85		67		28,509		—		1,620		26,889
Trust preferred	959		37		4		1,000		—		—		1,000
Total	$	301,007	$	12,265	$	92	$	313,364	$	21	$	41,933	$	271,452

December 31, 2025
U.S. agency	$	22,446	$	1,220	$	—	$	23,666	$	—	$	3,833	$	19,833
U.S. agency residential mortgage-backed	92,900		7,688		—		100,588		—		19,337		81,251
U.S. agency commercial mortgage-backed	3,734		62		—		3,796		—		249		3,547
Private label mortgage-backed	7,294		80		2		7,376		—		272		7,104
Obligations of states and political subdivisions	149,915		3,717		19		153,651		36		14,278		139,409
Corporate	32,276		177		67		32,520		—		1,834		30,686
Trust preferred	958		38		4		1,000		—		—		1,000
Total	$	309,523	$	12,982	$	92	$	322,597	$	36	$	39,803	$	282,830

(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)
March 31, 2026
U.S. agency	$	953	$	2	$	6,238	$	426	$	7,191	$	428
U.S. agency residential mortgage-backed	17,066		151		47,360		6,755		64,426		6,906
U.S. agency commercial mortgage-backed	—		—		6,967		879		6,967		879
Private label mortgage-backed	103		—		36,327		2,380		36,430		2,380
Other asset backed	147		—		24,473		447		24,620		447
Obligations of states and political subdivisions	—		—		273,059		42,979		273,059		42,979
Corporate	4,365		5		37,469		1,772		41,834		1,777
Trust preferred	—		—		984		7		984		7
Total	$	22,634	$	158	$	432,877	$	55,645	$	455,511	$	55,803

December 31, 2025
U.S. agency	$	972	$	1	$	6,884	$	403	$	7,856	$	404
U.S. agency residential mortgage-backed	6,931		5		49,103		6,501		56,034		6,506
U.S. agency commercial mortgage-backed	—		—		7,186		853		7,186		853
Private label mortgage-backed	—		—		39,234		2,443		39,234		2,443
Other asset backed	1,392		3		24,417		476		25,809		479
Obligations of states and political subdivisions	156		9		280,246		38,991		280,402		39,000
Corporate	—		—		45,986		1,696		45,986		1,696
Trust preferred	—		—		987		3		987		3
Total	$	9,451	$	18	$	454,043	$	51,366	$	463,494	$	51,384

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 earnings. 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 (loss), net of applicable taxes. No ACL for securities AFS was needed at March 31, 2026 and December 31, 2025. Accrued interest receivable on securities AFS totaled $3.0 million and $3.5

million at March 31, 2026 and December 31, 2025, 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.

The following is a summary of securities AFS with an unrealized loss by grouping as of March 31, 2026.

U.S. agency, U.S. agency residential mortgage-backed and U.S. agency commercial mortgage-backed securities — at March 31, 2026, we had 29 U.S. agency, 95 U.S. agency residential mortgage-backed and 8 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 March 31, 2026, we had 46 private label mortgage-backed, 39 other asset backed, and 49 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 March 31, 2026, we had 283 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 March 31, 2026, 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 March 31, 2026 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 month periods ended March 31, 2026 and 2025, 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 $1.6 million and $1.5 million March 31, 2026 and December 31, 2025, 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. The long-term historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. Furthermore, as of March 31, 2026 and December 31, 2025, there were no past due principal and interest payments associated with these securities. At both those same dates an allowance for credit losses of $92,000 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 similarly 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)
March 31, 2026
Credit rating:
AAA	$	7,274	$	17,123	$	—	$	—	$	24,397
AA	—		113,899		—		—		113,899
A	—		2,745		3,494		—		6,239
BBB	—		440		19,890		—		20,330
BB	—		—		1,988		—		1,988
Non-rated	—		13,119		2,985		959		17,063
Total	$	7,274	$	147,326	$	28,357	$	959	$	183,916

December 31, 2025
Credit rating:
AAA	$	7,294	$	17,357	$	—	$	—	$	24,651
AA	—		116,264		—		—		116,264
A	—		2,740		3,500		—		6,240
BBB	—		441		23,814		—		24,255
BB	—		—		1,983		—		1,983
Non-rated	—		13,113		2,979		958		17,050
Total	$	7,294	$	149,915	$	32,276	$	958	$	190,443

An analysis of the allowance for credit losses by security HTM type for the three months ended March 31 follows:


	Private Label Mortgage- Backed		Obligations of States and Political Subdivisions		Corporate		Trust Preferred		Total
	(In thousands)
2026
Balance at beginning of period	$	2	$	19	$	67	$	4	$	92
Additions (deductions)
Provision for credit losses	—		—		—		—		—
Recoveries credited to the allowance	—		—		—		—		—
Securities HTM charged against the allowance	—		—		—		—		—
Balance at end of period	$	2	$	19	$	67	$	4	$	92

2025
Balance at beginning of period	$	1	$	17	$	111	$	3	$	132
Additions (deductions)
Provision for credit losses	—		—		(3)		—		(3)
Recoveries credited to the allowance	—		—		—		—		—
Securities HTM charged against the allowance	—		—		—		—		—
Balance at end of period	$	1	$	17	$	108	$	3	$	129

There were no securities HTM on nonaccrual or past due at March 31, 2026 and 2025.

The amortized cost and fair value of securities AFS and securities HTM at March 31, 2026, by contractual maturity, follow:


	Securities AFS				Securities HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	24,563	$	24,262	$	15,651	$	15,489
Maturing after one year but within five years	116,871		110,741		42,376		40,399
Maturing after five years but within ten years	41,501		36,829		82,603		73,956
Maturing after ten years	186,047		151,962		63,039		52,275
	368,982		323,794		203,669		182,119
U.S. agency residential mortgage-backed	92,239		85,488		98,746		78,861
U.S. agency commercial mortgage-backed	7,846		6,967		3,618		3,372
Private label mortgage-backed	39,248		37,107		7,331		7,100
Other asset backed	29,357		28,939		—		—
Total	$	537,672	$	482,295	$	313,364	$	271,452

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 three month periods ending March 31, follows:


			Realized
	Proceeds		Gains		Losses
	(In thousands)
2026	$	3,256	$	—	$	26
2025	22,503		1		331

The tax benefit related to these net realized losses was $0.01 million and $0.07 million for the three month periods ending March 31, 2026 and 2025, respectively.