Investment Securities

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

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


	September 30, 2025
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities
U.S. Treasury	$	7,997	$	39	$	—	$	8,036
U.S. government agencies	50,000		—		(3,489)		46,511
Municipal	194,723		1,673		(2,152)		194,244
Corporate notes:
Financial issuers	82,000		—		(2,628)		79,372
Other	1,000		—		—		1,000
Mortgage-backed: (1)
Residential mortgage-backed securities	4,761,918		17,519		(419,975)		4,359,462
Commercial (multi-family) mortgage-backed securities	233,127		347		(5,136)		228,338
Collateralized mortgage obligations	371,584		2,373		(16,796)		357,161
Total available-for-sale securities	$	5,702,349	$	21,951	$	(450,176)	$	5,274,124
Held-to-maturity securities
U.S. government agencies	$	313,540	$	—	$	(59,178)	$	254,362
Municipal	155,770		458		(2,283)		153,945
Mortgage-backed: (1)
Residential mortgage-backed securities	2,724,442		5,421		(505,165)		2,224,698
Commercial (multi-family) mortgage-backed securities	6,315		65		(102)		6,278
Collateralized mortgage obligations	188,223		980		(17,400)		171,803
Corporate notes	50,511		26		(653)		49,884
Total held-to-maturity securities	$	3,438,801	$	6,950	$	(584,781)	$	2,860,970
Less: Allowance for credit losses	(395)
Held-to-maturity securities, net of allowance for credit losses	$	3,438,406
Equity securities with readily determinable fair value	$	60,843	$	6,520	$	(3,918)	$	63,445

(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.


	September 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
Available-for-sale securities
U.S. Treasury	$	98,151	$	172	$	—	$	98,323
U.S. government agencies	50,000		—		(2,346)		47,654
Municipal	201,701		1,392		(2,881)		200,212
Corporate notes:
Financial issuers	83,997		—		(4,880)		79,117
Other	1,000		—		—		1,000
Mortgage-backed: (1)
Residential mortgage-backed securities	3,694,382		8,143		(394,844)		3,307,681
Commercial (multi-family) mortgage-backed securities	19,088		308		(255)		19,141
Collateralized mortgage obligations	172,524		1,537		(14,957)		159,104
Total available-for-sale securities	$	4,320,843	$	11,552	$	(420,163)	$	3,912,232
Held-to-maturity securities
U.S. government agencies	$	314,578	$	—	$	(56,198)	$	258,380
Municipal	165,141		488		(2,910)		162,719
Mortgage-backed: (1)
Residential mortgage-backed securities	2,915,018		5,541		(485,115)		2,435,444
Commercial (multi-family) mortgage-backed securities	6,379		40		(126)		6,293
Collateralized mortgage obligations	219,758		1,457		(17,303)		203,912
Corporate notes	57,025		—		(1,953)		55,072
Total held-to-maturity securities	$	3,677,899	$	7,526	$	(563,605)	$	3,121,820
Less: Allowance for credit losses	(479)
Held-to-maturity securities, net of allowance for credit losses	$	3,677,420
Equity securities with readily determinable fair value	$	127,700	$	4,313	$	(6,703)	$	125,310

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

Equity securities without readily determinable fair values totaled $67.8 million as of September 30, 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 September 30, 2025, the Company recorded no adjustment related to such observable price changes. During the nine months ended September 30, 2025, the Company recorded no upward adjustment and a downward adjustment of $20,000 related to such observable price changes. During the three and nine months ended September 30, 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 and nine months ended September 30, 2025, the Company recorded $570,000 and $1.6 million impairment of equity securities without readily determinable fair values. During the three months ended September 30, 2024, the Company recorded no impairment of equity securities without readily determinable fair values. During the nine months ended September 30, 2024, the Company recorded $3.7 million 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 September 30, 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	—		—		46,511		(3,489)		46,511		(3,489)
Municipal	27,180		(276)		45,372		(1,876)		72,552		(2,152)
Corporate notes:
Financial issuers	—		—		79,372		(2,628)		79,372		(2,628)
Other	—		—		1,000		(0)		1,000		(0)
Mortgage-backed: (1)
Residential mortgage-backed securities	746,985		(3,625)		2,174,994		(416,350)		2,921,979		(419,975)
Commercial (multi-family) mortgage-backed securities	179,691		(4,574)		7,594		(562)		187,285		(5,136)
Collateralized mortgage obligations	31,196		(102)		63,054		(16,694)		94,250		(16,796)
Total available-for-sale securities	$	985,052	$	(8,577)	$	2,417,897	$	(441,599)	$	3,402,949	$	(450,176)

(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 September 30, 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 September 30, 2025 were primarily mortgage-backed securities with unrealized losses due to increased market rates subsequent to the date the securities were purchased.

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 September 30, 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 September 30,				Nine months ended September 30,
(In thousands)	2025		2024		2025		2024
Realized gains on investment securities	$	3,563	$	222	$	3,846	$	2,582
Realized losses on investment securities	(2,689)		(144)		(3,313)		(273)
Net realized gains on investment securities	874		78		533		2,309
Unrealized gains on equity securities with readily determinable fair value	3,352		3,126		8,689		4,234
Unrealized losses on equity securities with readily determinable fair value	(684)		(15)		(741)		(2,579)
Net unrealized gains on equity securities with readily determinable fair value	2,668		3,111		7,948		1,655

Downward adjustments of equity securities without readily determinable fair values	—		—		(20)		—
Impairment of equity securities without readily determinable fair values	(570)		—		(1,643)		(3,731)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(570)		—		(1,663)		(3,731)
Gains on investment securities, net	$	2,972	$	3,189	$	6,818	$	233

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2025, December 31, 2024 and September 30, 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:


	September 30, 2025				December 31, 2024				September 30, 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	$	58,284	$	58,315	$	89,578	$	89,392	$	150,539	$	150,627
Due in one to five years	160,939		159,081		157,883		153,325		168,856		164,650
Due in five to ten years	89,505		87,359		89,125		84,240		91,620		89,220
Due after ten years	26,992		24,408		24,674		21,650		23,834		21,809
Mortgage-backed	5,366,629		4,944,961		4,364,279		3,792,875		3,885,994		3,485,926
Total available-for-sale securities	$	5,702,349	$	5,274,124	$	4,725,539	$	4,141,482	$	4,320,843	$	3,912,232
Held-to-maturity securities
Due in one year or less	$	44,853	$	44,288	$	18,929	$	18,658	$	12,026	$	11,883
Due in one to five years	81,277		81,174		110,897		108,056		110,330		108,416
Due in five to ten years	91,067		87,541		71,846		70,277		84,580		83,918
Due after ten years	302,624		245,188		329,734		258,379		329,808		271,954
Mortgage-backed	2,918,980		2,402,779		3,082,314		2,455,180		3,141,155		2,645,649
Total held-to-maturity securities	$	3,438,801	$	2,860,970	$	3,613,720	$	2,910,550	$	3,677,899	$	3,121,820
Less: Allowance for credit losses	(395)				(457)				(479)
Held-to-maturity securities, net of allowance for credit losses	$	3,438,406			$	3,613,263			$	3,677,420

Securities having a carrying value of $8.0 billion at September 30, 2025 as well as securities having a carrying value of $6.9 billion and $7.2 billion at December 31, 2024 and September 30, 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 September 30, 2025, there were no securities of a single issuer, other than U.S. government-sponsored agency securities, which exceeded 10% of shareholders’ equity.