Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

The following tables are a summary of the investment securities portfolios as of the dates shown:


	March 31, 2025
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities
U.S. Treasury	$	12,943	$	51	$	—	$	12,994
U.S. government agencies	50,000		—		(4,056)		45,944
Municipal	190,670		1,063		(3,584)		188,149
Corporate notes:
Financial issuers	83,997		—		(3,562)		80,435
Other	1,000		—		(0)		1,000
Mortgage-backed: (1)
Residential mortgage-backed securities	4,067,349		907		(482,256)		3,586,000
Commercial (multi-family) mortgage-backed securities	58,205		118		(1,696)		56,627
Collateralized mortgage obligations	265,070		1,250		(17,164)		249,156
Total available-for-sale securities	$	4,729,234	$	3,389	$	(512,318)	$	4,220,305
Held-to-maturity securities
U.S. government agencies	$	313,539	$	0	$	(62,627)	$	250,912
Municipal	158,307		303		(4,964)		153,646
Mortgage-backed: (1)
Residential mortgage-backed securities	2,825,859		1,072		(555,525)		2,271,406
Commercial (multi-family) mortgage-backed securities	6,351		20		(134)		6,237
Collateralized mortgage obligations	204,199		763		(19,678)		185,284
Corporate notes	56,681		14		(1,367)		55,328
Total held-to-maturity securities	$	3,564,936	$	2,172	$	(644,295)	$	2,922,813
Less: Allowance for credit losses	(446)
Held-to-maturity securities, net of allowance for credit losses	$	3,564,490
Equity securities with readily determinable fair value	$	272,400	$	5,254	$	(7,212)	$	270,442

(1)None of our mortgage-backed securities are subprime.


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
Available-for-sale securities
U.S. Treasury	$	37,858	$	49	$	—	$	37,907
U.S. government agencies	50,000		—		(5,055)		44,945
Municipal	188,405		528		(4,340)		184,593
Corporate notes:
Financial issuers	83,997		—		(3,828)		80,169
Other	1,000		—		(7)		993
Mortgage-backed: (1)
Residential Mortgage-backed securities	4,106,641		284		(553,287)		3,553,638
Commercial (multi-family) mortgage-backed securities	19,064		23		(755)		18,332
Collateralized mortgage obligations	238,574		1,187		(18,856)		220,905
Total available-for-sale securities	$	4,725,539	$	2,071	$	(586,128)	$	4,141,482
Held-to-maturity securities
U.S. government agencies	$	313,539	$	—	$	(69,127)	$	244,412
Municipal	161,016		243		(5,290)		155,969
Mortgage-backed: (1)
Residential Mortgage-backed securities	2,864,927		—		(605,014)		2,259,913
Commercial (multi-family) mortgage-backed securities	6,364		—		(252)		6,112
Collateralized mortgage obligations	211,023		815		(22,683)		189,155
Corporate notes	56,851		8		(1,870)		54,989
Total held-to-maturity securities	$	3,613,720	$	1,066	$	(704,236)	$	2,910,550
Less: Allowance for credit losses	(457)
Held-to-maturity securities, net of allowance for credit losses	$	3,613,263
Equity securities with readily determinable fair value	$	220,758	$	2,905	$	(8,251)	$	215,412

(1)None of our mortgage-backed securities are subprime.


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
Available-for-sale securities
U.S. Treasury	$	61,185	$	—	$	(10)	$	61,175
U.S. government agencies	50,000		—		(4,285)		45,715
Municipal	144,752		569		(4,731)		140,590
Corporate notes:
Financial issuers	83,996		—		(8,264)		75,732
Other	1,000		—		(7)		993
Mortgage-backed: (1)
Mortgage-backed securities	4,396,962		480		(520,719)		3,876,723
Commercial (multi-family) mortgage-backed securities	16,225		28		(577)		15,676
Collateralized mortgage obligations	188,240		924		(18,170)		170,994
Total available-for-sale securities	$	4,942,360	$	2,001	$	(556,763)	$	4,387,598
Held-to-maturity securities
U.S. government agencies	$	336,463	$	—	$	(69,998)	$	266,465
Municipal	168,490		258		(4,709)		164,039
Mortgage-backed: (1)
Residential mortgage-backed securities	3,007,304		—		(597,758)		2,409,546
Commercial (multi-family) mortgage-backed securities	6,401		—		(281)		6,120
Collateralized mortgage obligations	234,314		431		(22,983)		211,762
Corporate notes	57,372		8		(3,358)		54,022
Total held-to-maturity securities	$	3,810,344	$	697	$	(699,087)	$	3,111,954
Less: Allowance for credit losses	(329)
Held-to-maturity securities, net of allowance for credit losses	$	3,810,015
Equity securities with readily determinable fair value	$	123,421	$	4,480	$	(8,124)	$	119,777

(1)None of our mortgage-backed securities are subprime.

Equity securities without readily determinable fair values totaled $67.9 million as of March 31, 2025. Equity securities without readily determinable fair values are included as part of accrued interest receivable and other assets in the Company’s Consolidated Statements of Condition. The Company monitors its equity investments without readily determinable fair values to identify potential transactions that may indicate an observable price change in orderly transactions for the identical or a similar investment of the same issuer, requiring adjustment to its carrying amount. During the three months ended March 31, 2025 the Company recorded no upward adjustment and a downward adjustment of $20,000 related to such observable price changes. During the three months ended March 31, 2024, the Company recorded no upward or downward adjustments related to such observable price changes. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows. During the three months ended March 31, 2025, the Company recorded no impairment of equity securities without readily determinable fair values. During the three months ended March 31, 2024, the Company recorded $2,000 impairment of equity securities without readily determinable fair values.

The following table presents the portion of the Company’s available-for-sale investment securities portfolios that have gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at March 31, 2025:


	Continuous unrealized losses existing for less than 12 months				Continuous unrealized losses existing for greater than 12 months				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. government agencies	—		—		45,944		(4,056)		45,944		(4,056)
Municipal	45,437		(717)		50,975		(2,867)		96,412		(3,584)
Corporate notes:
Financial issuers	—		—		80,435		(3,562)		80,435		(3,562)
Other	—		—		1,000		(0)		1,000		—
Mortgage-backed: (1)
Residential mortgage-backed securities	1,279,995		(15,142)		2,224,823		(467,114)		3,504,818		(482,256)
Commercial (multi-family) mortgage-backed securities	39,068		(1,312)		6,134		(384)		45,202		(1,696)
Collateralized mortgage obligations	16,914		(14)		66,087		(17,150)		83,001		(17,164)
Total available-for-sale securities	$	1,381,414	$	(17,185)	$	2,475,398	$	(495,133)	$	3,856,812	$	(512,318)

(1)None of our mortgage-backed securities are subprime.

The Company conducts a regular assessment of its investment securities to determine whether securities are experiencing credit losses. Factors for consideration include the nature of the securities, credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period.

The Company does not consider available-for-sale securities with unrealized losses at March 31, 2025 to be experiencing credit losses and recognized no resulting allowance for credit losses for such individually assessed credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Available-for-sale securities with continuous unrealized losses existing for more than twelve months at March 31, 2025 were primarily mortgage-backed securities with unrealized losses due to increased market rates during such period.

See Note (7) “Allowance for Credit Losses” in Item 1 of this report for further discussion regarding any credit losses associated with held-to-maturity securities at March 31, 2025.

The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:


	Three months ended March 31,
(In thousands)	2025		2024
Realized gains on investment securities	$	189	$	1,035
Realized losses on investment securities	(361)		(108)
Net realized (losses) gains on investment securities	(172)		927
Unrealized gains on equity securities with readily determinable fair value	3,445		1,034
Unrealized losses on equity securities with readily determinable fair value	(57)		(633)
Net unrealized gains on equity securities with readily determinable fair value	3,388		401
Upward adjustments of equity securities without readily determinable fair values	—		—
Downward adjustments of equity securities without readily determinable fair values	(20)		—
Impairment of equity securities without readily determinable fair values	—		(2)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(20)		(2)
Gains on investment securities, net	$	3,196	$	1,326

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of March 31, 2025, December 31, 2024 and March 31, 2024, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:


	March 31, 2025				December 31, 2024				March 31, 2024
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities
Due in one year or less	$	61,653	$	61,702	$	89,578	$	89,392	$	107,680	$	107,285
Due in one to five years	160,377		156,869		157,883		153,325		130,137		121,417
Due in five to ten years	89,444		85,935		89,125		84,240		85,212		80,234
Due after ten years	27,136		24,016		24,674		21,650		17,904		15,269
Mortgage-backed	4,390,624		3,891,783		4,364,279		3,792,875		4,601,427		4,063,393
Total available-for-sale securities	$	4,729,234	$	4,220,305	$	4,725,539	$	4,141,482	$	4,942,360	$	4,387,598
Held-to-maturity securities
Due in one year or less	$	27,766	$	27,436	$	18,929	$	18,658	$	4,652	$	4,616
Due in one to five years	103,583		101,546		110,897		108,056		115,707		111,324
Due in five to ten years	94,324		88,875		71,846		70,277		89,538		88,050
Due after ten years	302,854		242,029		329,734		258,379		352,428		280,536
Mortgage-backed	3,036,409		2,462,927		3,082,314		2,455,180		3,248,019		2,627,428
Total held-to-maturity securities	$	3,564,936	$	2,922,813	$	3,613,720	$	2,910,550	$	3,810,344	$	3,111,954
Less: Allowance for credit losses	(446)				(457)				(329)
Held-to-maturity securities, net of allowance for credit losses	$	3,564,490			$	3,613,263			$	3,810,015

Securities having a carrying value of $7.0 billion at March 31, 2025 as well as securities having a carrying value of $6.9 billion and $7.2 billion at December 31, 2024 and March 31, 2024, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank (“FHLB”) advances, Federal Reserve Bank (“FRB”) discount window, securities sold under repurchase agreements and derivatives. At March 31, 2025, there were no securities of a single issuer, other than U.S. government-sponsored agency securities, which exceeded 10% of shareholders’ equity.