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Investment Securities

6 Months Ended

Jun. 30, 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 June 30, 2026
(dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses												Estimated Fair Value
U.S. agency securities						$	331,363					$	—					$	(17,591)											$	313,772
Residential mortgage-backed securities						574,550						58						(59,860)												514,748
Commercial mortgage-backed securities						68,359						—						(2,625)												65,734
Municipal bonds						8,335						—						(392)												7,943
Corporate bonds						2,000						—						(14)												1,986
Total available-for-sale securities						$	984,607					$	58					$	(80,482)											$	904,183
						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 June 30, 2026
(dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Residential mortgage-backed securities						$	516,797					$	—					$	(62,731)					$	454,066
Commercial mortgage-backed securities						84,682						—						(10,409)						74,273
Municipal bonds						106,753						—						(7,284)						99,469
Corporate bonds						107,100						5						(3,919)						103,186
Total						815,332						$	5					$	(84,343)					$	730,994
Less: Allowance for credit losses						(454)
Total held-to-maturity securities, net of ACL						$	814,878
						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 June 30, 2026 and December 31, 2025, the Company held $32.5 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 June 30, 2026 and December 31, 2025, the Company had $35.2 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 $5.3 million and $5.5 million as of June 30, 2026 and December 31, 2025, 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 June 30, 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						$	—					$	—					$	313,772					$	(17,591)					$	313,772					$	(17,591)
Residential mortgage-backed securities						140						16,642						(227)						489,180						(59,633)						505,822						(59,860)
Commercial mortgage-backed securities						12						28,805						(198)						36,929						(2,427)						65,734						(2,625)
Municipal bonds						1						—						—						7,943						(392)						7,943						(392)
Corporate bonds						1						—						—						1,986						(14)						1,986						(14)
Total						204						$	45,447					$	(425)					$	849,810					$	(80,057)					$	895,257					$	(80,482)
Investment securities held-to-maturity:
Residential mortgage-backed securities						131						$	—					$	—					$	454,066					$	(62,731)					$	454,066					$	(62,731)
Commercial mortgage-backed securities						16						4,190						(559)						70,083						(9,850)						74,273						(10,409)
Municipal bonds						33						—						—						98,469						(7,284)						98,469						(7,284)
Corporate bonds						25						5,875						(47)						92,348						(3,872)						98,223						(3,919)
Total						205						$	10,065					$	(606)					$	714,966					$	(83,737)					$	725,031					$	(84,343)

						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 June 30, 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 June 30, 2026 and December 31, 2025, the Company had no allowance for credit losses outstanding on its AFS securities and $454 thousand and $1.0 million, respectively, on its HTM securities, 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 June 30, 2026
(dollars in thousands)						Amortized Cost						Estimated Fair Value
Investment securities available-for-sale:
Within one year						$	70,524					$	69,832
One to five years						235,827						221,497
Five to ten years						17,450						16,523
Beyond ten years						17,897						15,849
Residential mortgage-backed securities						574,550						514,748
Commercial mortgage-backed securities						68,359						65,734
Less: allowance for credit losses						—						—
Total investment securities available-for-sale						984,607						904,183
Investment securities held-to-maturity:
Within one year						11,972						11,906
One to five years						70,858						68,659
Five to ten years						80,146						75,368
Beyond ten years						50,877						46,722
Residential mortgage-backed securities:						516,797						454,066
Commercial mortgage-backed securities						84,682						74,273
Less: allowance for credit losses						(454)						—
Total investment securities held-to-maturity						814,878						730,994
Total						$	1,799,485					$	1,635,177

The table below displays information about the sales and calls of our investment securities.

						For the Three Months Ended June 30,												For the Six Months Ended June 30,
(dollars in thousands)						2026						2025						2026						2025
Proceeds from sales and calls						$	12,055					$	62,909					$	12,112					$	112,961
Gross realized gains from sales and calls						266						3						269						8
Gross realized losses from sales and calls						—						1,857						—						1,858

As of June 30, 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 $21.4 million and $519.6 million, respectively.

As of June 30, 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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- Definition

The entire disclosure for investment in debt and equity securities and other assets at fair value and held for trading.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 942
-SubTopic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/942-320/tableOfContent

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 940
-SubTopic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/940-320/tableOfContent

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph b
-Publisher SEC

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/320/tableOfContent

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-10

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Section 50
-Paragraph 6B
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B

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