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Investment Securities

3 Months Ended

Mar. 31, 2026

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 March 31, 2026
(dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses												Estimated Fair Value
U.S. agency securities						$	332,381					$	—					$	(17,318)											$	315,063
Residential mortgage-backed securities						597,422						65						(58,177)												539,310
Commercial mortgage-backed securities						68,581						—						(2,465)												66,116
Municipal bonds						8,380						—						(508)												7,872
Corporate bonds						2,000						—						(47)												1,953
Total available-for-sale securities						$	1,008,764					$	65					$	(78,515)											$	930,314
						As of December 31, 2025
(dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses												Estimated Fair Value
U.S. agency securities						$	355,249					$	—					$	(17,541)											$	337,708
Residential mortgage-backed securities						620,540						152						(58,188)												562,504
Commercial mortgage-backed securities						68,931						117						(2,503)												66,545
Municipal bonds						8,426						—						(380)												8,046
Corporate bonds						2,000						—						(33)												1,967
Total available-for-sale securities						$	1,055,146					$	269					$	(78,645)											$	976,770

The table below summarizes the Company's investment in HTM securities by major security type.

						As of March 31, 2026
(dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Residential mortgage-backed securities						$	531,370					$	—					$	(62,117)					$	469,253
Commercial mortgage-backed securities						85,189						—						(10,006)						75,183
Municipal bonds						106,813						—						(8,221)						98,592
Corporate bonds						118,808						120						(4,718)						114,210
Total						842,180						$	120					$	(85,062)					$	757,238
Less: Allowance for credit losses						(907)
Total held-to-maturity securities, net of ACL						$	841,273
						As of December 31, 2025
(dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Residential mortgage-backed securities						$	544,402					$	—					$	(58,836)					$	485,566
Commercial mortgage-backed securities						85,760						—						(9,787)						75,973
Municipal bonds						106,875						—						(6,933)						99,942
Corporate bonds						118,773						8						(5,315)						113,466
Total						855,810						$	8					$	(80,871)					$	774,947
Less: Allowance for credit losses						(1,030)
Total held-to-maturity securities, net of ACL						$	854,780

In addition, as of March 31, 2026 and December 31, 2025, the Company held $27.7 million and $28.3 million, respectively, in non-marketable equity securities 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 March 31, 2026 and December 31, 2025, the Company had $36.9 million and $38.5 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 was $5.5 million as of March 31, 2026 and December 31, 2025. 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 March 31, 2026
												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						50						$	—					$	—					$	315,063					$	(17,318)					$	315,063					$	(17,318)
Residential mortgage-backed securities						141						17,423						(92)						512,563						(58,085)						529,986						(58,177)
Commercial mortgage-backed securities						12						29,017						(31)						37,099						(2,434)						66,116						(2,465)
Municipal bonds						1						—						—						7,872						(508)						7,872						(508)
Corporate bonds						1						—						—						1,953						(47)						1,953						(47)
Total						205						$	46,440					$	(123)					$	874,550					$	(78,392)					$	920,990					$	(78,515)
Investment securities held-to-maturity:
Residential mortgage-backed securities						135						$	—					$	—					$	469,253					$	(62,117)					$	469,253					$	(62,117)
Commercial mortgage-backed securities						16						4,230						(531)						70,953						(9,475)						75,183						(10,006)
Municipal bonds						33						—						—						97,592						(8,221)						97,592						(8,221)
Corporate bonds						27						9,841						(29)						97,386						(4,689)						107,227						(4,718)
Total						211						$	14,071					$	(560)					$	735,184					$	(84,502)					$	749,255					$	(85,062)

						As of December 31, 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						52						$	—					$	—					$	337,708					$	(17,541)					$	337,708					$	(17,541)
Residential mortgage-backed securities						139						—						—						546,514						(58,188)						546,514						(58,188)
Commercial mortgage-backed securities						10						—						—						37,329						(2,503)						37,329						(2,503)
Municipal bonds						1						—						—						8,046						(380)						8,046						(380)
Corporate bonds						1						—						—						1,967						(33)						1,967						(33)
Total						203						$	—					$	—					$	931,564					$	(78,645)					$	931,564					$	(78,645)
Investment securities held-to-maturity:
Residential mortgage-backed securities						136						$	—					$	—					$	485,567					$	(58,836)					$	485,567					$	(58,836)
Commercial mortgage-backed securities						16						4,271						(503)						71,702						(9,284)						75,973						(9,787)
Municipal bonds						33						—						—						98,942						(6,933)						98,942						(6,933)
Corporate bonds						27						1,922						(18)						106,638						(5,297)						108,560						(5,315)
Total						212						$	6,193					$	(521)					$	762,849					$	(80,350)					$	769,042					$	(80,871)

As of March 31, 2026, 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 AFS securities are expected to recover as the securities approach their respective maturity dates.

The Company measures its AFS and HTM securities portfolios for 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 March 31, 2026 and December 31, 2025, the Company had an allowance for credit losses outstanding of zero on its AFS securities and $0.9 million and $1.0 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 March 31, 2026
(dollars in thousands)						Amortized Cost						Estimated Fair Value
Investment securities available-for-sale:
Within one year						$	70,454					$	69,447
One to five years						226,437						213,471
Five to ten years						27,699						25,939
Beyond ten years						18,171						16,031
Residential mortgage-backed securities						597,422						539,310
Commercial mortgage-backed securities						68,581						66,116
Less: allowance for credit losses						—						—
Total investment securities available-for-sale						1,008,764						930,314
Investment securities held-to-maturity:
Within one year						4,928						4,925
One to five years						71,030						69,073
Five to ten years						98,688						92,668
Beyond ten years						50,975						46,136
Residential mortgage-backed securities:						531,370						469,253
Commercial mortgage-backed securities						85,189						75,183
Less: allowance for credit losses						(907)						—
Total investment securities held-to-maturity						841,273						757,238
Total						$	1,850,037					$	1,687,552

There were no sales and calls of investment securities during the three months ended March 31, 2026 and 2025, therefore, no proceeds from sales or calls in either period.

As of March 31, 2026 and December 31, 2025, 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 $16.0 million and $519.6 million, respectively.

As of March 31, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. agency securities, which exceeded ten percent of shareholders’ equity.

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The entire disclosure for investments in certain debt and equity securities.

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