
	September 30, 2025
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value

U.S. Government agency securities	$	607	$	—	$	(51)	$	556
Mortgage-backed securities:
Pass-through certificates:
Government sponsored enterprises ("GSEs")	356,703		2,164		(12,330)		346,537
Real estate mortgage investment conduits ("REMICs"):
GSE	950,993		6,977		(4,612)		953,358

Total mortgage-backed securities	1,307,696		9,141		(16,942)		1,299,895
Other debt securities:
Municipal bonds	484		—		—		484

Corporate bonds	30,106		229		(366)		29,969

Total other debt securities	30,590		229		(366)		30,453
Total debt securities available-for-sale	$	1,338,893	$	9,370	$	(17,359)	$	1,330,904


	December 31, 2024
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value

U.S. Government agency securities	$	75,734	$	—	$	(386)	$	75,348
Mortgage-backed securities:
Pass-through certificates:
GSE	282,704		—		(21,028)		261,676
REMICs:
GSE	734,086		1,231		(7,974)		727,343

Total mortgage-backed securities	1,016,790		1,231		(29,002)		989,019
Other debt securities:
Municipal bonds	684		1		—		685
Corporate bonds	36,569		134		(938)		35,765

Total other debt securities	37,253		135		(938)		36,450
Total debt securities available-for-sale	$	1,129,777	$	1,366	$	(30,326)	$	1,100,817


Available-for-sale	Amortized cost		Estimated fair value
Due in one year or less	$	4,287	$	4,300
Due after one year through five years	18,910		18,674
Due after five years through ten years	8,000		8,035

	$	31,197	$	31,009

Contractual maturities for mortgage-backed securities are not included above, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.

Certain securities available-for-sale are pledged or encumbered to secure borrowings under pledge agreements and repurchase agreements and for other purposes required by law. At September 30, 2025, and December 31, 2024, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $613.3 million and $420.4 million, respectively.

For the three and nine months ended September 30, 2025, the Company had no proceeds on sales of debt securities available-for-sale and no gross realized gains or losses. For the three months ended September 30, 2024, the Company had no proceeds on sales of debt securities available-for-sale, with no gross realized gains and gross realized losses of $7,000 related to calls of securities. For the nine months ended September 30, 2024, the Company had no proceeds on sales of debt securities available-for-sale, with gross realized losses of $7,000 and gross realized gains of $1,000 related to calls of securities. The Company recognized net gains of $804,000 and $1.5 million on its trading securities portfolio during the three and nine months ended September 30, 2025, respectively. During the three and nine months ended September 30, 2024, the Company recognized net gains of $710,000 and $1.6 million, respectively, on its trading securities portfolio.

Gross unrealized losses on mortgage-backed securities and other debt securities available-for-sale, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2025, and December 31, 2024, were as follows (in thousands):


	September 30, 2025
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value

U.S. Government agency securities	$	—	$	—	$	(51)	$	556	$	(51)	$	556
Mortgage-backed securities:
Pass-through certificates:
GSE	—		1,301		(12,330)		205,028		(12,330)		206,329
REMICs:
GSE	(20)		33,283		(4,592)		129,123		(4,612)		162,406

Other debt securities:
Municipal bonds	—		483		—		—		—		483
Corporate bonds	—		—		(366)		18,637		(366)		18,637


Total	$	(20)	$	35,067	$	(17,339)	$	353,344	$	(17,359)	$	388,411


	December 31, 2024
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
U.S. Government agency securities	$	—	$	—	$	(386)	$	75,348	$	(386)	$	75,348
Mortgage-backed securities:
Pass-through certificates:
GSE	(125)		7,329		(20,903)		254,163		(21,028)		261,492
REMICs:
GSE	(285)		105,412		(7,689)		164,262		(7,974)		269,674

Other debt securities:

Corporate bonds	—		—		(938)		18,066		(938)		18,066
Total	$	(410)	$	112,741	$	(29,916)	$	511,839	$	(30,326)	$	624,580

The Company held 106 pass-through mortgage-backed securities issued or guaranteed by GSEs, 66 REMIC mortgage-backed securities issued or guaranteed by GSEs, three corporate bonds, and one U.S. Government agency security that were in a continuous unrealized loss position of twelve months or greater at September 30, 2025. There was one pass-through mortgage-backed security issued or guaranteed by a GSE and five REMIC mortgage-backed securities issued or guaranteed by GSEs that were in an unrealized loss position of less than twelve months at September 30, 2025. Substantially all securities referred to above were rated investment grade at September 30, 2025.

Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level such as credit deterioration of the issuer or collateral underlying the security. In assessing the impairment, the Company compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If it is determined that the decline in fair value was due to credit losses, an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. The Company did not record any allowance for credit losses on its available-for-sale debt securities as of September 30, 2025 or December 31, 2024.

The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company also assesses its intent to sell the securities (as well as the likelihood of a near-term recovery). If the Company intends to sell an available-for-sale debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the debt security is written down to its fair value and the write down is charged to the debt security’s fair value at the reporting date with any incremental impairment reported in earnings.

The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivable associated with debt securities available-for-sale totaled $3.8 million and $3.1 million at September 30, 2025, and December 31, 2024, respectively, and was reported in accrued interest receivable on the consolidated balance sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable as an allowance on possible uncollectible accrued interest is not warranted.

Equity securities totaled $5.0 million and $14.3 million at September 30, 2025, and December 31, 2024, respectively. Equity securities consisted of an investment in a private SBA loan fund (the “SBA Loan Fund”) recorded at net asset value of $5.0 million and $10.0 million at September 30, 2025, and December 31, 2024, respectively, and money market mutual funds, recorded at fair value of $0 and $4.3 million at September 30, 2025, and December 31, 2024, respectively. As the SBA Loan Fund operates as a private fund, its shares are not publicly traded and, therefore, has no readily determinable market value. The SBA Loan Fund was recorded at net asset value as a practical expedient for reporting fair value.