Investment Securities

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Note 3 – Investment Securities

The table below summarizes the Company's investment in AFS securities by major security type.


	As of December 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit 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

	As of December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
U.S. treasury bonds	$	24,988	$	—	$	(212)	$	—	$	24,776
U.S. agency securities	600,277		—		(41,742)		$	—	558,535
Residential mortgage-backed securities	719,815		36		(94,535)		—		625,316
Commercial mortgage-backed securities	53,248		—		(4,303)		—		48,945
Municipal bonds	8,607		—		(593)		—		8,014
Corporate bonds	2,000		—		(160)		(22)		1,818
Total available-for-sale securities	$	1,408,935	$	36	$	(141,545)	$	(22)	$	1,267,404

The table below summarizes the Company's investment in HTM securities by major security type.


	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

	As of December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value


Residential mortgage-backed securities	$	605,904	$	—	$	(85,941)	$	519,963
Commercial mortgage-backed securities	88,575		—		(13,069)		75,506
Municipal bonds	114,060		—		(11,389)		102,671
Corporate bonds	131,414		—		(9,172)		122,242
Total	939,953		$	—	$	(119,571)	$	820,382
Less: Allowance for credit losses	(1,306)
Total held-to-maturity securities, net of ACL	$	938,647

In addition, as of December 31, 2025 and 2024, the Company held $28.3 million and $51.8 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 December 31, 2025 and 2024, the Company had $38.5 million and $44.8 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 totaled $5.5 million and $6.6 million as of December 31, 2025 and 2024, 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 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 December 31, 2024
		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. treasury bonds	1	$	—	$	—	$	24,776	$	(212)	$	24,776	$	(212)
U.S. agency securities	71	2,300		(8)		556,235		(41,734)		558,535		(41,742)
Residential mortgage-backed securities	148	7,530		(128)		616,392		(94,407)		623,922		(94,535)
Commercial mortgage-backed securities	13	—		—		48,945		(4,303)		48,945		(4,303)
Municipal bonds	1	—		—		8,014		(593)		8,014		(593)
Corporate bonds	1	—		—		1,818		(160)		1,818		(160)
Total	235	$	9,830	$	(136)	$	1,256,180	$	(141,409)	$	1,266,010	$	(141,545)

Investment securities held-to-maturity:


Residential mortgage-backed securities	140	$	—	$	—	$	519,963	$	(85,941)	$	519,963	$	(85,941)
Commercial mortgage-backed securities	16	—		—		75,506		(13,069)		75,506		(13,069)
Municipal bonds	36	4,026		(75)		98,645		(11,314)		102,671		(11,389)
Corporate bonds	30	1,928		(77)		110,280		(9,095)		112,208		(9,172)
Total	222	$	5,954	$	(152)	$	804,394	$	(119,419)	$	810,348	$	(119,571)

As of December 31, 2025, 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 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 December 31, 2025 and 2024, the Company had an allowance for credit losses outstanding of zero and $22 thousand, respectively, on its AFS securities and $1.0 million and $1.3 million, respectively, on its HTM securities, each of 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 December 31, 2025
(dollars in thousands)	Amortized Cost		Estimated Fair Value
Investment securities available-for-sale:
Within one year	$	58,374	$	57,691
One to five years	224,088		213,883
Five to ten years	64,720		59,807
Beyond ten years	18,493		16,340
Residential mortgage-backed securities	620,540		562,504
Commercial mortgage-backed securities	68,931		66,545


Less: allowance for credit losses	—		—
Total investment securities available-for-sale	1,055,146		976,770

Investment securities held-to-maturity:
Within one year	4,897		4,905
One to five years	71,023		69,041
Five to ten years	98,654		92,580
Beyond ten years	51,074		46,882
Residential mortgage-backed securities:	544,402		485,566
Commercial mortgage-backed securities	85,760		75,973


Less: allowance for credit losses	(1,030)		—
Total investment securities held-to-maturity	854,780		774,947
Total	$	1,909,926	$	1,751,717

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


	For the Year Ended December 31,
(dollars in thousands)		2025		2024		2023
Proceeds from sales and calls		$	276,162	$	152,968	$	11,209
Gross realized gains from sales and calls		20		14		129
Gross realized losses from sales and calls		3,843		—		140

As of December 31, 2025 and 2024, 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 $519.6 million and $369.1 million, respectively, which were well in excess of required amounts in order to operationally provide significant reserve amounts for new business.

As of December 31, 2025 and 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders’ equity.