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Securities

6 Months Ended

Jun. 30, 2026

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The following tables summarize securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) as of June 30, 2026 and December 31, 2025.

						June 30, 2026
						Amortized Cost						Gross Unrealized												Fair Value
(amounts in thousands)												Gains						Losses
Securities available-for-sale
U.S. Government-sponsored agencies						$	54,787					$	435					$	(947)					$	54,275
Municipal securities						57,663						16						(1,697)						55,982
Agency mortgage-backed securities - residential 1						436,922						1,390						(22,144)						416,168
Agency mortgage-backed securities - commercial						57,544						145						(978)						56,711
Private label mortgage-backed securities - residential						119,043						73						(1,171)						117,945
Asset-backed securities						43,194						71						(159)						43,106
Corporate securities						42,754						400						(665)						42,489
Total available-for-sale						$	811,907					$	2,530					$	(27,761)					$	786,676

						June 30, 2026
						Amortized Cost						Gross Unrealized												Fair Value						Allowance for Credit Losses						Net Carrying Value
(amounts in thousands)												Gains						Losses
Securities held-to-maturity
Municipal securities						$	10,370					$	—					$	(514)					$	9,856					$	(3)					$	10,367
Agency mortgage-backed securities - residential						232,272						1,308						(13,261)						220,319						—						232,272
Agency mortgage-backed securities - commercial						5,598						—						(936)						4,662						—						5,598
Corporate securities						16,500						—						(766)						15,734						(75)						16,425
Total held-to-maturity						$	264,740					$	1,308					$	(15,477)					$	250,571					$	(78)					$	264,662

1 Includes $0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of June 30, 2026.

						December 31, 2025
						Amortized Cost						Gross Unrealized												Fair Value
(amounts in thousands)												Gains						Losses
Securities available-for-sale
U.S. Government-sponsored agencies						$	64,298					$	480					$	(1,014)					$	63,764
Municipal securities						64,777						17						(1,408)						63,386
Agency mortgage-backed securities - residential 1						409,718						841						(21,102)						389,457
Agency mortgage-backed securities - commercial						59,112						202						(837)						58,477
Private label mortgage-backed securities - residential						124,264						234						(825)						123,673
Asset-backed securities						42,492						100						(39)						42,553
Corporate securities						37,761						346						(730)						37,377
Total available-for-sale						$	802,422					$	2,220					$	(25,955)					$	778,687

						December 31, 2025
						Amortized Cost						Gross Unrealized												Fair Value						Allowance for Credit Losses						Net Carrying Value
(amounts in thousands)												Gains						Losses
Securities held-to-maturity
Municipal securities						$	11,009					$	1					$	(459)					$	10,551					$	(3)					$	11,006
Agency mortgage-backed securities - residential						213,530						1,834						(11,649)						203,715						—						213,530
Agency mortgage-backed securities - commercial						5,635						—						(915)						4,720						—						5,635
Corporate securities						20,536						—						(707)						19,829						(98)						20,438
Total held-to-maturity						$	250,710					$	1,835					$	(13,730)					$	238,815					$	(101)					$	250,609

1 Includes $0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2025.

Accrued interest receivable on AFS and HTM securities at June 30, 2026 was $2.8 million and $1.1 million, respectively, compared to $3.0 million and $1.1 million, respectively, at December 31, 2025, and is included in accrued interest receivable on the condensed consolidated balance sheet. The Company elected to exclude all accrued interest receivable from securities when estimating credit losses.

At June 30, 2026 and December 31, 2025, approximately 86% and 84%, respectively, of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses; therefore, the Company did not record an ACL on these securities.

Additionally, the Company evaluated credit impairment for individual AFS securities that are in an unrealized loss position and determined that the unrealized losses are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets. As the Company does not intend to sell the AFS securities that are in an unrealized loss position, and it is unlikely that it will be required to sell these securities before recovery of their amortized cost basis, the Company did not record an ACL on these securities.

The Company also evaluated its HTM securities that are in an unrealized loss position and considered issuer bond ratings, historical loss rates for bond ratings and economic forecasts. The ACL on HTM securities was $0.1 million at both June 30, 2026 and December 31, 2025.

The carrying value of securities at June 30, 2026 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

						Available-for-Sale
(amounts in thousands)						Amortized Cost						Fair Value
Within one year						$	4,360					$	4,341
One to five years						23,300						22,877
Five to ten years						84,191						82,870
After ten years						43,353						42,658
						155,204						152,746
Agency mortgage-backed securities - residential						436,922						416,168
Agency mortgage-backed securities - commercial						57,544						56,711
Private label mortgage-backed securities - residential						119,043						117,945
Asset-backed securities						43,194						43,106
Total						$	811,907					$	786,676

						Held-to-Maturity
(amounts in thousands)						Amortized Cost						Fair Value
Within one year						$	1,181					$	1,174
One to five years						12,145						12,005
Five to ten years						13,273						12,159
After ten years						271						252
						26,870						25,590
Agency mortgage-backed securities - residential						232,272						220,319
Agency mortgage-backed securities - commercial						5,598						4,662
Total						$	264,740					$	250,571

No AFS securities were sold during the three and six months ended June 30, 2026 and June 30, 2025. As such, the Company did not realize any gains or losses related to the sale of AFS securities during either time period.

Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2026 and December 31, 2025 was $643.8 million and $611.2 million, which was approximately 61% and 59%, respectively, of the Company’s AFS and HTM securities portfolios. As of June 30, 2026, the Company’s security portfolio consisted of 628 positions, of which 419 were in an unrealized loss position. As of December 31, 2025, the Company’s security portfolio consisted of 618 positions, of which 395 were in an unrealized loss position. The unrealized losses are related to the categories noted below.

U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.

Agency Mortgage-Backed, Private Label Mortgage-Backed Securities and Asset-Backed Securities

The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost basis over the terms of the securities. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.

The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025.

						June 30, 2026
						Less Than 12 Months												12 Months or Longer												Total
(amounts in thousands)						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies						$	4,129					$	(8)					$	24,074					$	(939)					$	28,203					$	(947)
Municipal securities						9,930						(85)						28,516						(1,612)						38,446						(1,697)
Agency mortgage-backed securities - residential						80,714						(700)						151,429						(21,444)						232,143						(22,144)
Agency mortgage-backed securities - commercial						4,461						(118)						23,506						(860)						27,967						(978)
Private label mortgage-backed securities - residential						96,803						(512)						5,990						(659)						102,793						(1,171)
Asset-backed securities						22,935						(159)						—						—						22,935						(159)
Corporate securities						7,661						(89)						14,424						(576)						22,085						(665)
Total						$	226,633					$	(1,671)					$	247,939					$	(26,090)					$	474,572					$	(27,761)

						December 31, 2025
						Less Than 12 Months												12 Months or Longer												Total
(amounts in thousands)						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies						$	3,600					$	(20)					$	33,849					$	(994)					$	37,449					$	(1,014)
Municipal securities						2,301						—						42,515						(1,408)						44,816						(1,408)
Agency mortgage-backed securities - residential						67,177						(190)						186,453						(20,912)						253,630						(21,102)
Agency mortgage-backed securities - commercial						2,981						(22)						25,915						(815)						28,896						(837)
Private label mortgage-backed securities - residential						75,924						(191)						6,533						(634)						82,457						(825)
Asset-backed securities						21,413						(39)						—						—						21,413						(39)
Corporate securities						3,698						(52)						14,322						(678)						18,020						(730)
Total						$	177,094					$	(514)					$	309,587					$	(25,441)					$	486,681					$	(25,955)

The following tables summarize ratings for the Company’s HTM portfolio as of June 30, 2026 and December 31, 2025.

						June 30, 2026
(amounts in thousands)						Municipal Securities						Mortgage-Backed Securities - Residential						Mortgage-Backed Securities - Commercial						Corporate Securities						Total
AAA equivalent - agency						$	—					$	232,272					$	5,598					$	—					$	237,870
Aa1/AA+						6,408						—						—						—						6,408
Aa2/AA						2,170						—						—						—						2,170
Aa3/AA-						1,792						—						—						—						1,792
A3/A-						—						—						—						5,000						5,000
Baa1/BBB+						—						—						—						7,000						7,000
Baa3/BBB-						—						—						—						2,500						2,500
Not Rated1						—						—						—						2,000						2,000
Total						$	10,370					$	232,272					$	5,598					$	16,500					$	264,740

1 This security previously had a BBB rating, but the issuer was acquired during the first quarter 2026. The acquiring company did not have any outstanding subordinated debt issuances prior to the acquisition and, therefore, did not have a rating at the time of acquisition.

						December 31, 2025
(amounts in thousands)						Municipal Securities						Mortgage-Backed Securities - Residential						Mortgage-Backed Securities - Commercial						Corporate Securities						Total
AAA equivalent - agency						$	—					$	213,530					$	5,635					$	—					$	219,165
Aa1/AA+						7,046						—						—						—						7,046
Aa2/AA						2,170						—						—						—						2,170
Aa3/AA-						1,793						—						—						—						1,793
A3/A-						—						—						—						5,000						5,000
Baa1/BBB+						—						—						—						5,000						5,000
Baa2/BBB						—						—						—						4,000						4,000
Baa3/BBB-						—						—						—						4,536						4,536
Ba1/BB+						—						—						—						2,000						2,000
Total						$	11,009					$	213,530					$	5,635					$	20,536					$	250,710

Equity Investments

Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under equity security accounting and are included within accrued income and other assets on the consolidated balance sheet. The Company’s non-marketable equity investments consist of limited partner interests in venture capital and Small Business Investment Company (“SBIC”) funds. After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive a proportional share of profit and return of capital distributions as a result of fund performance until the funds wind down. While the partnership agreements allow the Company to remove the general partner, this right is not considered to be substantive as the general partner can only be removed for cause. All of these investments are generally non-redeemable and distributions are generally expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreements.

The following tables provide additional information related to equity investments accounted for under equity security accounting.

The carrying amount of each equity investment with a readily determinable fair value or net asset value at June 30, 2026 and December 31, 2025 is reflected in the following table:

(amounts in thousands)						June 30, 2026						December 31, 2025
GenOpp Financial Fund LP						$	3,202					$	2,876
Total						$	3,202					$	2,876

The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis at June 30, 2026 and December 31, 2025 is reflected in the following table:

(amounts in thousands)						June 30, 2026						December 31, 2025
Carrying value1						$	38,438					$	38,611
Carrying value adjustments						—						—
Impairment						—						—
Upward changes for observable prices						—						—
Downward changes for observable prices						—						—
Total						$	38,438					$	38,611

1 Excludes $13.9 million and $14.6 million in unfunded commitments as of June 30, 2026 and December 31, 2025, respectively.

Variable Interest Entities

The above investments meet the criteria of a VIE. However, the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities that most significantly impact the economic performance of the entities. The Company’s maximum exposure to loss from unconsolidated VIEs includes the value of the investment recorded on the Company’s consolidated balance sheets and unfunded commitment. The Company believes the potential for loss from these investments is remote, the maximum exposure for the affordable housing investment was determined by assuming a scenario where related tax credits were recaptured.

The following table provides a summary of VIEs that the Company has not consolidated as June 30, 2026 and December 31, 2025:

						June 30, 2026
(amounts in thousands)						Carrying Amount						Maximum Exposure to Loss						Liability Recognized						Classification
Private equity and venture capital funds						$	14,067					$	19,332					$	—					Other assets (1)
Pooled investment vehicle						3,202						3,202						—						Other assets (2)
SBIC						7,292						13,000						—						Other assets (3)
Affordable housing						7,079						13,045						—						Other assets (4)
Non-marketable and other equity investments						10,000						10,000						—						Other assets (5)

						December 31, 2025
(amounts in thousands)						Carrying Amount						Maximum Exposure to Loss						Liability Recognized						Classification
Private equity and venture capital funds						$	13,685					$	20,208					$	—					Other assets (6)
Pooled investment vehicle						2,876						2,876						—						Other assets (7)
SBIC						7,292						13,000						—						Other assets (8)
Affordable housing						7,634						12,519						—						Other assets (9)
Non-marketable and other equity investments						10,000						10,000						—						Other assets (10)

(1) Maximum exposure to loss includes $14.1 million of current investments and $5.3 million in unfunded commitments.

(2) Maximum exposure to loss includes $3.2 million of current investments.

(3) Maximum exposure to loss includes $7.3 million of current investments and $5.7 million in unfunded commitments.

(4) Maximum exposure to loss includes $7.1 million of current investments, $2.9 million in unfunded commitments and a scenario in which related tax credits of $3.0 million are recaptured, totaling $13.0 million.

(5) Maximum exposure to loss includes $10.0 million of current investments.

(6) Maximum exposure to loss includes $13.7 million of current investments and $6.0 million in unfunded commitments.

(7) Maximum exposure to loss includes $2.9 million of current investments.

(8) Maximum exposure to loss includes $7.3 million of current investments and $5.7 million in unfunded commitments.

(9) Maximum exposure to loss includes $7.6 million of current investments, $2.4 million in unfunded commitments and a scenario in which related tax credits of $2.5 million are recaptured, totaling $12.5 million.

(10) Maximum exposure to loss includes $10.0 million of current investments.

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- 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
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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