XML 20 R13.htm IDEA: XBRL DOCUMENT
v3.25.1

Investment Securities | 3 Months Ended
--- | ---
Mar. 31, 2025
Investments [Abstract] |
Investment Securities | (3.) INVESTMENT SECURITIES The amortized cost and fair value of investment securities are summarized below (in thousands):
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  | $ | 281,907 |  |  | $ | 1,295 |  |  | $ | 5,425 |  |  | $ | 277,777 |
Federal Home Loan Mortgage Corporation |  |  | 344,496 |  |  |  | 1,268 |  |  |  | 20,092 |  |  |  | 325,672 |
Government National Mortgage Association |  |  | 215,666 |  |  |  | 284 |  |  |  | 21,591 |  |  |  | 194,359 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 14,303 |  |  |  | 128 |  |  |  | 1,194 |  |  |  | 13,237 |
Federal Home Loan Mortgage Corporation |  |  | 29,086 |  |  |  | 307 |  |  |  | 2,449 |  |  |  | 26,944 |
Government National Mortgage Association |  |  | 73,532 |  |  |  | 422 |  |  |  | 110 |  |  |  | 73,844 |
Privately issued |  |  | — |  |  |  | 359 |  |  |  | — |  |  |  | 359 |
Total mortgage-backed securities |  |  | 958,990 |  |  |  | 4,063 |  |  |  | 50,861 |  |  |  | 912,192 |
Other debt securities |  |  | 14,645 |  |  |  | 156 |  |  |  | 1 |  |  |  | 14,800 |
Total available for sale securities |  | $ | 973,635 |  |  | $ | 4,219 |  |  | $ | 50,862 |  |  | $ | 926,992 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency and government sponsored enterprises |  | $ | 16,701 |  |  | $ | — |  |  | $ | 295 |  |  | $ | 16,406 |
State and political subdivisions |  |  | 44,595 |  |  |  | 25 |  |  |  | 5,404 |  |  |  | 39,216 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 5,074 |  |  |  | — |  |  |  | 483 |  |  |  | 4,591 |
Federal Home Loan Mortgage Corporation |  |  | 7,336 |  |  |  | — |  |  |  | 1,211 |  |  |  | 6,125 |
Government National Mortgage Association |  |  | 17,959 |  |  |  | — |  |  |  | 1,878 |  |  |  | 16,081 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 7,882 |  |  |  | — |  |  |  | 542 |  |  |  | 7,340 |
Federal Home Loan Mortgage Corporation |  |  | 10,662 |  |  |  | — |  |  |  | 578 |  |  |  | 10,084 |
Government National Mortgage Association |  |  | 2,898 |  |  |  | — |  |  |  | 180 |  |  |  | 2,718 |
Total mortgage-backed securities |  |  | 51,811 |  |  |  | — |  |  |  | 4,872 |  |  |  | 46,939 |
Total held to maturity securities |  |  | 113,107 |  |  | $ | 25 |  |  | $ | 10,571 |  |  | $ | 102,561 |
Allowance for credit losses–securities |  |  | (2 | ) |  |  |  |  |  |  |  |  |
Total held to maturity securities, net |  | $ | 113,105 |  |  |  |  |  |  |  |  |  |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 287,416 |  |  |  | 1 |  |  |  | 9,447 |  |  |  | 277,970 |
Federal Home Loan Mortgage Corporation |  |  | 350,495 |  |  |  | 206 |  |  |  | 25,355 |  |  |  | 325,346 |
Government National Mortgage Association |  |  | 216,392 |  |  |  | 84 |  |  |  | 23,210 |  |  |  | 193,266 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 14,720 |  |  |  | — |  |  |  | 1,320 |  |  |  | 13,400 |
Federal Home Loan Mortgage Corporation |  |  | 20,357 |  |  |  | 136 |  |  |  | 2,732 |  |  |  | 17,761 |
Government National Mortgage Association |  |  | 74,677 |  |  |  | 3 |  |  |  | 404 |  |  |  | 74,276 |
Privately issued |  |  | — |  |  |  | 365 |  |  |  | — |  |  |  | 365 |
Total mortgage-backed securities |  |  | 964,057 |  |  |  | 795 |  |  |  | 62,468 |  |  |  | 902,384 |
Other debt securities |  |  | 8,663 |  |  |  | 69 |  |  |  | 11 |  |  |  | 8,721 |
Total available for sale securities |  | $ | 972,720 |  |  | $ | 864 |  |  | $ | 62,479 |  |  | $ | 911,105 |
(3.) INVESTMENT SECURITIES (Continued)
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
December 31, 2024 (continued) |  |  |  |  |  |  |  |  |  |  |  |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies and government sponsored enterprises |  | $ | 16,663 |  |  | $ | — |  |  | $ | 512 |  |  | $ | 16,151 |
State and political subdivisions |  |  | 45,333 |  |  |  | 26 |  |  |  | 5,192 |  |  |  | 40,167 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 5,120 |  |  |  | — |  |  |  | 580 |  |  |  | 4,540 |
Federal Home Loan Mortgage Corporation |  |  | 7,365 |  |  |  | — |  |  |  | 1,367 |  |  |  | 5,998 |
Government National Mortgage Association |  |  | 18,410 |  |  |  | — |  |  |  | 2,217 |  |  |  | 16,193 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 8,777 |  |  |  | — |  |  |  | 658 |  |  |  | 8,119 |
Federal Home Loan Mortgage Corporation |  |  | 11,309 |  |  |  | — |  |  |  | 727 |  |  |  | 10,582 |
Government National Mortgage Association |  |  | 3,026 |  |  |  | — |  |  |  | 220 |  |  |  | 2,806 |
Total mortgage-backed securities |  |  | 54,007 |  |  |  | — |  |  |  | 5,769 |  |  |  | 48,238 |
Total held to maturity securities |  |  | 116,003 |  |  | $ | 26 |  |  | $ | 11,473 |  |  | $ | 104,556 |
Allowance for credit losses–securities |  |  | (2 | ) |  |  |  |  |  |  |  |  |
Total held to maturity securities, net |  | $ | 116,001 |  |  |  |  |  |  |  |  |  |
The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For available for sale (“AFS”) debt securities, AIR totaled $3.3 million as of both March 31, 2025 and December 31, 2024. For held to maturity (“HTM”) debt securities, AIR totaled $645 thousand and $456 thousand as of March 31, 2025 and December 31, 2024, respectively. AIR is included in other assets on the Company’s consolidated statements of financial condition. For the three months ended March 31, 2025 and 2024, the provision for credit losses for HTM investment securities was less than $1 thousand in each period. Investment securities with a total fair value of $971.4 million and $828.8 million at March 31, 2025 and December 31, 2024, respectively, were pledged as collateral to secure public deposits and for other purposes required or permitted by law. There were no sales of securities available for sale for the three months ended March 31, 2025 and 2024. On December 13, 2024, the Company completed a public, underwritten common stock offering, further discussed in Note 9, Shareholders’ Equity. A portion of the proceeds from the stock offering was used to fund losses on the sale of $653.5 million of available for sale securities for a pre-tax loss of $100.2 million and the Company used the net proceeds from the sale of the securities to purchase higher-yielding agency wrapped investments with a face value of $642.6 million in December 2024. The scheduled maturities of securities available for sale and securities held to maturity at March 31, 2025 are shown below (in thousands). Actual expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
|  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |
Debt securities available for sale: |  |  |  |  |  |
Due in one year or less |  | $ | 3 |  |  | $ | 3 |
Due from one to five years |  |  | 12 |  |  |  | 12 |
Due after five years through ten years |  |  | 38,404 |  |  |  | 38,682 |
Due after ten years |  |  | 935,216 |  |  |  | 888,295 |
Total available for sale securities |  | $ | 973,635 |  |  | $ | 926,992 |
Debt securities held to maturity: |  |  |  |  |  |
Due in one year or less |  | $ | 15,777 |  |  | $ | 15,760 |
Due from one to five years |  |  | 21,531 |  |  |  | 20,826 |
Due after five years through ten years |  |  | 25,659 |  |  |  | 22,971 |
Due after ten years |  |  | 50,140 |  |  |  | 43,004 |
Total held to maturity securities |  | $ | 113,107 |  |  | $ | 102,561 |
(3.) INVESTMENT SECURITIES (Continued) Unrealized losses on investment securities for which an allowance for credit losses has not been recorded and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands):
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  | $ | 51,985 |  |  | $ | 70 |  |  | $ | 19,869 |  |  | $ | 5,355 |  |  | $ | 71,854 |  |  | $ | 5,425 |
Federal Home Loan Mortgage Corporation |  |  | — |  |  |  | — |  |  |  | 76,514 |  |  |  | 20,092 |  |  |  | 76,514 |  |  |  | 20,092 |
Government National Mortgage Association |  |  | 69,303 |  |  |  | 1,774 |  |  |  | 70,696 |  |  |  | 19,817 |  |  |  | 139,999 |  |  |  | 21,591 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | — |  |  |  | — |  |  |  | 3,675 |  |  |  | 1,194 |  |  |  | 3,675 |  |  |  | 1,194 |
Federal Home Loan Mortgage Corporation |  |  | — |  |  |  | — |  |  |  | 7,643 |  |  |  | 2,449 |  |  |  | 7,643 |  |  |  | 2,449 |
Government National Mortgage Association |  |  | 14,058 |  |  |  | 110 |  |  |  | — |  |  |  | — |  |  |  | 14,058 |  |  |  | 110 |
Total mortgage-backed securities |  |  | 135,346 |  |  |  | 1,954 |  |  |  | 178,397 |  |  |  | 48,907 |  |  |  | 313,743 |  |  |  | 50,861 |
Other debt securities |  |  | 973 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 973 |  |  |  | 1 |
Total AFS debt securities with unrealized losses |  | $ | 136,319 |  |  | $ | 1,955 |  |  | $ | 178,397 |  |  | $ | 48,907 |  |  | $ | 314,716 |  |  | $ | 50,862 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 258,197 |  |  |  | 3,525 |  |  |  | 19,732 |  |  |  | 5,922 |  |  |  | 277,929 |  |  |  | 9,447 |
Federal Home Loan Mortgage Corporation |  |  | 228,956 |  |  |  | 2,941 |  |  |  | 75,647 |  |  |  | 22,414 |  |  |  | 304,603 |  |  |  | 25,355 |
Government National Mortgage Association |  |  | 113,772 |  |  |  | 2,120 |  |  |  | 69,935 |  |  |  | 21,090 |  |  |  | 183,707 |  |  |  | 23,210 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association |  |  | 9,742 |  |  |  | 16 |  |  |  | 3,658 |  |  |  | 1,304 |  |  |  | 13,400 |  |  |  | 1,320 |
Federal Home Loan Mortgage Corporation |  |  | 2,411 |  |  |  | 29 |  |  |  | 7,655 |  |  |  | 2,703 |  |  |  | 10,066 |  |  |  | 2,732 |
Government National Mortgage Association |  |  | 64,493 |  |  |  | 404 |  |  |  |  |  |  |  |  |  | 64,493 |  |  |  | 404 |
Total mortgage-backed securities |  |  | 677,571 |  |  |  | 9,035 |  |  |  | 176,627 |  |  |  | 53,433 |  |  |  | 854,198 |  |  |  | 62,468 |
Other debt securities |  |  | 3,652 |  |  |  | 11 |  |  |  | — |  |  |  | — |  |  |  | 3,652 |  |  |  | 11 |
Total available for sale securities |  |  | 681,223 |  |  |  | 9,046 |  |  |  | 176,627 |  |  |  | 53,433 |  |  |  | 857,850 |  |  |  | 62,479 |
Total AFS debt securities with unrealized losses |  | $ | 681,223 |  |  | $ | 9,046 |  |  | $ | 176,627 |  |  | $ | 53,433 |  |  | $ | 857,850 |  |  | $ | 62,479 |
(3.) INVESTMENT SECURITIES (Continued) The total number of AFS securities’ positions in the investment portfolio in an unrealized loss position, for which an allowance for credit losses had not been recorded, was 46 at March 31, 2025 and 76 at December 31, 2024, respectively. At March 31, 2025, the Company had a position in 37 investment securities with a fair value of $178.4 million and a total unrealized loss of $48.9 million that had been in a continuous unrealized loss position for more than 12 months, and a total of 9 securities’ positions in the Company’s investment portfolio with a fair value of $136.3 million and a total unrealized loss of $2.0 million that had been in a continuous unrealized loss position for less than 12 months. At December 31, 2024, the Company had a position in 37 investment securities with a fair value of $176.6 million and a total unrealized loss of $53.4 million that had been in a continuous unrealized loss position for more than 12 months, and a total of 39 securities’ positions in the Company’s investment portfolio with a fair value of $681.2 million and a total unrealized loss of $9.0 million that had been in a continuous unrealized loss position for less than 12 months. The unrealized loss on investment securities was predominantly caused by changes in market interest rates subsequent to purchase. The fair value of most of the Company’s portfolio fluctuates as market interest rates change. Securities Available for Sale As of March 31, 2025 and December 31, 2024, no al lowance for credit losses had been recognized on AFS securities in an unrealized loss position as management does not believe any of the securities were impaired due to reasons of credit quality. This is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available for sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, the Company expects to recover the amortized cost basis of its investments and more than likely will not need to sell before the recovery period for operating purposes, with no impairment identified. As the portfolio is managed from a liquidity, earnings, and risk standpoint, sales from the AFS portfolio may be warranted based upon prevailing market factors. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Securities Held to Maturity The Company’s HTM investment securities include debt securities that are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. In addition, the Company’s HTM investment securities include debt securities that are issued by state and local government agencies, or municipal bonds. The Company monitors the credit quality of our municipal bonds through the use of a credit rating agency or by ratings that are derived by an internal scoring model. The scoring methodology for the internally derived ratings is based on a series of financial ratios for the municipality being reviewed as compared to typical industry figures. This information is used to determine the financial strengths and weaknesses of the municipality, which is indicated with a numeric rating. This number is then converted into a letter rating to better match the system used by the credit rating agencies. As of March 31, 2025, $39.8 million of our municipal bonds were rated as an equivalent to Standard & Poor’s A/AA/AAA, with $4.8 million internally rated to be the equivalent of Standard & Poor’s A/AA/AAA rating. Additionally, no municipal bonds were rated below investment grade. As of December 31, 2024, $41.9 million of our municipal bonds were rated as an equivalent to Standard & Poor’s A/AA/AAA, with $3.4 million internally rated to be the equivalent of Standard & Poor’s A/AA/AAA rating, and no municipal bonds were rated below investment grade. As of March 31, 2025 and December 31, 2024, the Company had no past due or nonaccrual held to maturity investment securities.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: 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 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration