INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2025

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE 4 — INVESTMENT SECURITIES

The following tables summarize the amortized cost and fair value of AFS and HTM debt securities and equity investments and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses recognized in earnings (in thousands):

			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At June 30, 2025	Cost		Gains		Losses		Fair Value
Available-for-Sale Securities:
U.S. Government agency securities	$	67,999	$	—	$	(2,896)	$	65,103
U.S. State and Municipal securities		11,263		—		(1,820)		9,443
Residential MBS		486,014		2,343		(57,980)		430,377
Commercial MBS		45,839		14		(2,212)		43,641
Asset-backed securities		2,540		—		(75)		2,465
Total securities available-for-sale	$	613,655	$	2,357	$	(64,983)	$	551,029
Held-to-Maturity Securities:
U.S. Treasury securities	$	9,967	$	—	$	(156)	$	9,811
U.S. State and Municipal securities		15,193		—		(2,267)		12,926
Residential MBS		354,684		—		(48,120)		306,564
Commercial MBS		8,057		—		(664)		7,393
Total securities held-to-maturity	$	387,901	$	—	$	(51,207)	$	336,694
Equity Investments:
CRA Mutual Fund	$	5,584	$	—	$	(308)	$	5,276
Total equity investment securities	$	5,584	$	—	$	(308)	$	5,276

			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2024	Cost		Gains		Losses		Fair Value
Available-for-Sale Securities:
U.S. Government agency securities	$	67,999	$	—	$	(4,247)	$	63,752
U.S. State and Municipal securities		11,341		—		(1,841)		9,500
Residential MBS		430,968		854		(68,754)		363,068
Commercial MBS		46,094		—		(2,966)		43,128
Asset-backed securities		2,677		—		(40)		2,637
Total securities available-for-sale	$	559,079	$	854	$	(77,848)	$	482,085
Held-to-Maturity Securities:
U.S. Treasury securities	$	29,938	$	—	$	(410)	$	29,528
U.S. State and Municipal securities		15,319		—		(1,686)		13,633
Residential MBS		375,232		—		(58,866)		316,366
Commercial MBS		8,068		—		(876)		7,192
Total securities held-to-maturity	$	428,557	$	—	$	(61,838)	$	366,719
Equity Investments:
CRA Mutual Fund	$	5,503	$	—	$	(394)	$	5,109
Total equity investment securities	$	5,503	$	—	$	(394)	$	5,109

There were no proceeds from sales or calls of AFS securities for the three and six months ended June 30, 2025 and 2024.

The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Held-to-Maturity				Available-for-Sale
At June 30, 2025	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within 1 year	$	9,967	$	9,811	$	47,999	$	47,407
After 1 year through 5 years		—		—		15,000		14,027
After 5 years through 10 years		—		—		4,825		3,894
After 10 years		15,193		12,926		11,438		9,218
Mortgage-backed and Asset-backed Securities		362,741		313,957		534,393		476,483
Total Securities	$	387,901	$	336,694	$	613,655	$	551,029

	Held-to-Maturity				Available-for-Sale
At December 31, 2024	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within 1 year	$	29,938		29,527		38,000		36,954
After 1 year through 5 years		—		—		24,999		23,200
After 5 years through 10 years		—		—		4,827		3,713
After 10 years		15,319		13,633		11,514		9,385
Mortgage-backed and Asset-backed Securities		383,300		323,559		479,739		408,833
Total Securities	$	428,557	$	366,719	$	559,079	$	482,085

At June 30, 2025, there was $779.8 million of securities pledged to support wholesale funding, and to a lesser extent certain other types of deposits, of which $106.6 million was encumbered. At December 31, 2024, there were $750.3 million of securities pledged to support wholesale funding, and to a lesser extent certain other types of deposits, of which $65.5 million was encumbered.

At June 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. At June 30, 2025 and December 31, 2024, all of the residential MBS and commercial MBS held by the Company were issued by U.S. Government-sponsored entities and agencies.

The following tables present debt securities with unrealized/unrecognized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	Less than 12 Months				12 Months or More				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At June 30, 2025	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Available-for-Sale Securities:
U.S. Government agency securities	$	—	$	—	$	65,103	$	(2,896)	$	65,103	$	(2,896)
U.S. State and Municipal securities		—		—		9,443		(1,820)		9,443		(1,820)
Residential MBS		37,453		(299)		251,642		(57,681)		289,095		(57,980)
Commercial MBS		10,710		(39)		23,503		(2,173)		34,213		(2,212)
Asset-backed securities		—		—		2,465		(75)		2,465		(75)
Total securities available-for-sale	$	48,163	$	(338)	$	352,156	$	(64,645)	$	400,319	$	(64,983)
Held-to-Maturity Securities:
U.S. Treasury securities	$	—	$	—	$	9,811	$	(156)	$	9,811	$	(156)
U.S. State and Municipal securities		—		—		12,926		(2,267)		12,926		(2,267)
Residential MBS		—		—		306,564		(48,120)		306,564		(48,120)
Commercial MBS		—		—		7,393		(664)		7,393		(664)
Total securities held-to-maturity	$	—	$	—	$	336,694	$	(51,207)	$	336,694	$	(51,207)

	Less than 12 Months				12 Months or More				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At December 31, 2024	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Available-for-Sale Securities:
U.S. Government agency securities	$	—	$	—	$	63,752	$	(4,247)	$	63,752	$	(4,247)
U.S. State and Municipal securities		—		—		9,500		(1,841)		9,500		(1,841)
Residential MBS		46,859		(1,104)		258,763		(67,650)		305,622		(68,754)
Commercial MBS		19,624		(410)		23,504		(2,556)		43,128		(2,966)
Asset-backed securities		—		—		2,637		(40)		2,637		(40)
Total securities available-for-sale	$	66,483	$	(1,514)	$	358,156	$	(76,334)	$	424,639	$	(77,848)
Held-to-Maturity Securities:
U.S. Treasury securities	$	—	$	—	$	29,528	$	(410)	$	29,528	$	(410)
U.S. State and Municipal securities		—		—		13,633		(1,686)		13,633		(1,686)
Residential MBS		—		—		316,366		(58,866)		316,366		(58,866)
Commercial MBS		—		—		7,192		(876)		7,192		(876)
Total securities held-to-maturity	$	—	$	—	$	366,719	$	(61,838)	$	366,719	$	(61,838)

Except for U.S. State and Municipal securities, the Company has a zero loss expectation for its HTM securities portfolio, and therefore has no ACL related to these securities. Obligations of U.S. State and Municipal securities were rated investment grade and the associated ACL was immaterial at June 30, 2025 and December 31, 2024

AFS securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. The unrealized losses on AFS securities are primarily due to the changes in market interest rates subsequent to purchase. In addition, the Company does not intend, nor would it be required, to sell these investments until there is a full recovery of

the unrealized loss, which may be at maturity. As a result, no ACL was recognized during the three and six months ended June 30, 2025 and 2024.