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Investment Securities | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Note 3 – Investment Securities The table below summarizes the Company's investment in AFS securities by major security type.
|  | As of September 30, 2025
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
U.S. agency securities |  | $ | 432,607 |  |  | $ | — |  |  | $ | (20,394) |  |  | $ | — |  |  | $ | 412,213 |
Residential mortgage-backed securities |  | 644,193 |  |  | 108 |  |  | (64,701) |  |  | — |  |  | 579,600 |
Commercial mortgage-backed securities |  | 74,372 |  |  | 129 |  |  | (2,783) |  |  | — |  |  | 71,718 |
Municipal bonds |  | 8,472 |  |  | — |  |  | (532) |  |  | — |  |  | 7,940 |
Corporate bonds |  | 2,000 |  |  | — |  |  | (59) |  |  | — |  |  | 1,941 |
Total available-for-sale securities |  | $ | 1,161,644 |  |  | $ | 237 |  |  | $ | (88,469) |  |  | $ | — |  |  | $ | 1,073,412 |
|  | As of December 31, 2024
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
U.S. treasury bonds |  | $ | 24,988 |  |  | $ | — |  |  | $ | (212) |  |  | $ | — |  |  | $ | 24,776 |
U.S. agency securities |  | 600,277 |  |  | — |  |  | (41,742) |  |  | $ | — |  |  | 558,535
Residential mortgage-backed securities |  | 719,815 |  |  | 36 |  |  | (94,535) |  |  | — |  |  | 625,316
Commercial mortgage-backed securities |  | 53,248 |  |  | — |  |  | (4,303) |  |  | — |  |  | 48,945
Municipal bonds |  | 8,607 |  |  | — |  |  | (593) |  |  | — |  |  | 8,014
Corporate bonds |  | 2,000 |  |  | — |  |  | (160) |  |  | (22) |  |  | 1,818
Total available-for-sale securities |  | $ | 1,408,935 |  |  | $ | 36 |  |  | $ | (141,545) |  |  | $ | (22) |  |  | $ | 1,267,404 |
The table below summarizes the Company's investment in HTM securities by major security type.
|  | As of September 30, 2025
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Residential mortgage-backed securities |  | $ | 558,842 |  |  | $ | — |  |  | $ | (62,442) |  |  | $ | 496,400 |
Commercial mortgage-backed securities |  | 86,359 |  |  | — |  |  | (10,414) |  |  | 75,945 |
Municipal bonds |  | 106,936 |  |  | — |  |  | (8,109) |  |  | 98,827 |
Corporate bonds |  | 121,480 |  |  | 25 |  |  | (6,015) |  |  | 115,490 |
Total |  | 873,617 |  |  | $ | 25 |  |  | $ | (86,980) |  |  | $ | 786,662 |
Less: Allowance for credit losses |  | (1,199) |  |  |  |  |  |  |
Total held-to-maturity securities, net of ACL |  | $ | 872,418 |  |  |  |  |  |  |
|  | As of December 31, 2024
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Residential mortgage-backed securities |  | $ | 605,904 |  |  | $ | — |  |  | $ | (85,941) |  |  | $ | 519,963 |
Commercial mortgage-backed securities |  | 88,575 |  |  | — |  |  | (13,069) |  |  | 75,506 |
Municipal bonds |  | 114,060 |  |  | — |  |  | (11,389) |  |  | 102,671 |
Corporate bonds |  | 131,414 |  |  | — |  |  | (9,172) |  |  | 122,242 |
Total |  | 939,953 |  |  | $ | — |  |  | $ | (119,571) |  |  | $ | 820,382 |
Less: Allowance for credit losses |  | (1,306) |  |  |  |  |  |  |
Total held-to-maturity securities, net of ACL |  | $ | 938,647 |  |  |  |  |  |  |
In addition, as of September 30, 2025 and December 31, 2024, the Company held $28.3 million and $51.8 million in non-marketable equity securities, respectively, in a combination of Federal Reserve System ("Federal Reserve Board", "Federal Reserve" or "FRB") and FHLB stocks, which are required to be held for regulatory purposes. These securities cannot be disposed of other than through redemption by the issuer and, if redeemed, would be redeemed at the original cost. The securities are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. As of September 30, 2025 and December 31, 2024, the Company had $40.0 million and $44.8 million, respectively, of unamortized unrealized losses outstanding following the transfer of investment securities from AFS to HTM in 2022. These unrealized losses are included in accumulated other comprehensive loss and are amortized through interest income as a yield adjustment over the remaining term of the securities. Accrued interest receivable on investment securities totaled $5.9 million and $6.6 million as of September 30, 2025 and December 31, 2024, respectively. The accrued interest on investment securities is excluded from the amortized cost of the securities and is reported in other assets in the Consolidated Balance Sheets. The table below summarizes, by length of time, the Company's AFS securities that have been in a continuous unrealized loss position and HTM securities that have been in a continuous unrecognized loss position.
|  | As of September 30, 2025
|  |  |  | Less than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency securities |  | 58 |  |  | $ | — |  |  | $ | — |  |  | $ | 412,213 |  |  | $ | (20,394) |  |  | $ | 412,213 |  |  | $ | (20,394) |
Residential mortgage-backed securities |  | 142 |  |  | — |  |  | — |  |  | 569,707 |  |  | (64,701) |  |  | 569,707 |  |  | (64,701) |
Commercial mortgage-backed securities |  | 12 |  |  | — |  |  | — |  |  | 43,430 |  |  | (2,783) |  |  | 43,430 |  |  | (2,783) |
Municipal bonds |  | 1 |  |  | — |  |  | — |  |  | 7,940 |  |  | (532) |  |  | 7,940 |  |  | (532) |
Corporate bonds |  | 1 |  |  | — |  |  | — |  |  | 1,941 |  |  | (59) |  |  | 1,941 |  |  | (59) |
Total |  | 214 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,035,231 |  |  | $ | (88,469) |  |  | $ | 1,035,231 |  |  | $ | (88,469) |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 136 |  |  | $ | — |  |  | $ | — |  |  | $ | 496,400 |  |  | $ | (62,442) |  |  | $ | 496,400 |  |  | $ | (62,442) |
Commercial mortgage-backed securities |  | 16 |  |  | 4,266 |  |  | (520) |  |  | 71,679 |  |  | (9,894) |  |  | 75,945 |  |  | (10,414) |
Municipal bonds |  | 33 |  |  | — |  |  | — |  |  | 97,827 |  |  | (8,109) |  |  | 97,827 |  |  | (8,109) |
Corporate bonds |  | 27 |  |  | 1,950 |  |  | (54) |  |  | 105,718 |  |  | (5,961) |  |  | 107,668 |  |  | (6,015) |
Total |  | 212 |  |  | $ | 6,216 |  |  | $ | (574) |  |  | $ | 771,624 |  |  | $ | (86,406) |  |  | $ | 777,840 |  |  | $ | (86,980) |
|  | As of December 31, 2024
|  |  |  | Less than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 24,776 |  |  | $ | (212) |  |  | $ | 24,776 |  |  | $ | (212) |
U.S. agency securities |  | 71 |  |  | 2,300 |  |  | (8) |  |  | 556,235 |  |  | (41,734) |  |  | 558,535 |  |  | (41,742) |
Residential mortgage-backed securities |  | 148 |  |  | 7,530 |  |  | (128) |  |  | 616,392 |  |  | (94,407) |  |  | 623,922 |  |  | (94,535) |
Commercial mortgage-backed securities |  | 13 |  |  | — |  |  | — |  |  | 48,945 |  |  | (4,303) |  |  | 48,945 |  |  | (4,303) |
Municipal bonds |  | 1 |  |  | — |  |  | — |  |  | 8,014 |  |  | (593) |  |  | 8,014 |  |  | (593) |
Corporate bonds |  | 1 |  |  | — |  |  | — |  |  | 1,818 |  |  | (160) |  |  | 1,818 |  |  | (160) |
Total |  | 235 |  | $ | 9,830 |  |  | $ | (136) |  |  | $ | 1,256,180 |  |  | $ | (141,409) |  |  | $ | 1,266,010 |  |  | $ | (141,545) |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 140 |  |  | $ | — |  |  | $ | — |  |  | $ | 519,963 |  |  | $ | (85,941) |  |  | $ | 519,963 |  |  | $ | (85,941) |
Commercial mortgage-backed securities |  | 16 |  |  | — |  |  | — |  |  | 75,506 |  |  | (13,069) |  |  | 75,506 |  |  | (13,069) |
Municipal bonds |  | 36 |  |  | 4,026 |  |  | (75) |  |  | 98,645 |  |  | (11,314) |  |  | 102,671 |  |  | (11,389) |
Corporate bonds |  | 30 |  |  | 1,928 |  |  | (77) |  |  | 110,280 |  |  | (9,095) |  |  | 112,208 |  |  | (9,172) |
Total |  | 222 |  | $ | 5,954 |  |  | $ | (152) |  |  | $ | 804,394 |  |  | $ | (119,419) |  |  | $ | 810,348 |  |  | $ | (119,571) |
As of September 30, 2025, unrealized losses were generally attributable to changes in market interest rates and interest spread relationships subsequent to the dates the securities were originally purchased, and were considered to be temporary, and not due to credit quality concerns on the investment securities. The fair values of these securities are expected to recover as the securities approach their respective maturity dates. The Company measures its AFS and HTM securities portfolios for current expected credit losses as part of its ACL analysis. For further information on provision for credit losses on AFS and HTM securities, see the Allowance for Credit Losses discussion in "Note 1 – Summary of Significant Accounting Policies". As of September 30, 2025 and December 31, 2024, the Company had an allowance for credit losses outstanding of zero and $22 thousand, respectively, on its AFS securities and $1.2 million and $1.3 million, respectively, on its HTM securities, each of which primarily comprise allowances for corporate bonds. The table below summarizes the Company's investment in AFS securities and HTM securities by contractual maturity. Expected maturities for mortgage-backed securities ("MBS") will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | As of September 30, 2025
(dollars in thousands) |  | Amortized Cost |  | Estimated Fair Value
Investment securities available-for-sale: |  |  |  |
Within one year |  | $ | 122,508 |  |  | $ | 121,617 |
One to five years |  | 237,049 |  |  | 224,915 |
Five to ten years |  | 64,715 |  |  | 59,124 |
Beyond ten years |  | 18,807 |  |  | 16,438 |
Residential mortgage-backed securities |  | 644,193 |  |  | 579,600 |
Commercial mortgage-backed securities |  | 74,372 |  |  | 71,718 |
Less: allowance for credit losses |  | — |  |  | — |
Total investment securities available-for-sale |  | 1,161,644 |  |  | 1,073,412 |
Investment securities held-to-maturity: |  |  |  |
Within one year |  | — |  |  | — |
One to five years |  | 77,630 |  |  | 75,376 |
Five to ten years |  | 99,613 |  |  | 92,629 |
Beyond ten years |  | 51,173 |  |  | 46,312 |
Residential mortgage-backed securities: |  | 558,842 |  |  | 496,400 |
Commercial mortgage-backed securities |  | 86,359 |  |  | 75,945 |
Less: allowance for credit losses |  | (1,199) |  |  | — |
Total investment securities held-to-maturity |  | 872,418 |  |  | 786,662 |
Total |  | $ | 2,034,062 |  |  | $ | 1,860,074 |
The table below displays information about the sales and calls of our investment securities.
|  | For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
(dollars in thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Proceeds from sales and calls |  | $ | 84,157 |  |  | $ | 4,542 |  |  | $ | 197,117 |  |  | $ | 31,644 |  |  |
Gross realized gains from sales and calls |  | 3 |  |  | 3 |  |  | 12 |  |  | 10 |  |  |
Gross realized losses from sales and calls |  | 1,985 |  |  | — |  |  | 3,844 |  |  | — |  |  |
As of September 30, 2025 and December 31, 2024, the book value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase and certain lines of credit with correspondent banks was $597.0 million and $369.1 million, respectively, which were well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of September 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders’ equity.

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