Securities

12 Months Ended

Dec. 31, 2024

Debt Securities [Abstract]

Securities

Securities

Available for Sale Securities

The amortized cost, gross unrealized gains and losses, ACL and fair value of available for sale securities as of the dates indicated were as follows:

	As of December 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In thousands)
Debt securities:
Government-sponsored residential mortgage-backed securities	$	3,099,328	$	—	$	(537,433)	$	—	$	2,561,895
Government-sponsored commercial mortgage-backed securities	1,362,519		—		(201,408)		—		1,161,111
U.S. Agency bonds	19,608		—		(1,936)		—		17,672
U.S. Treasury securities	99,784		—		(2,165)		—		97,619
State and municipal bonds and obligations	197,405		—		(14,104)		—		183,301
	$	4,778,644	$	—	$	(757,046)	$	—	$	4,021,598

	As of December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In thousands)
Debt securities:
Government-sponsored residential mortgage-backed securities	$	3,302,165	$	—	$	(521,527)	$	—	$	2,780,638
Government-sponsored commercial mortgage-backed securities	1,326,029		—		(201,653)		—		1,124,376
U.S. Agency bonds	236,454		—		(20,443)		—		216,011
U.S. Treasury securities	99,552		—		(4,400)		—		95,152
State and municipal bonds and obligations	197,704		172		(6,532)		—		191,344
	$	5,161,904	$	172	$	(754,555)	$	—	$	4,407,521

The Company did not record a provision for credit losses on any AFS securities during either the year ended December 31, 2024 or 2023. Accrued interest receivable on AFS securities totaled $8.9 million and $9.2 million as of December 31, 2024 and 2023, respectively, and is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest income on AFS securities during either the year ended December 31, 2024 or 2023. No securities held by the Company were delinquent on contractual payments as of December 31, 2024 nor 2023, nor were any such securities placed on non-accrual status during the periods then ended.

As of December 31, 2024 and 2023, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of consolidated shareholders’ equity.

The following table summarizes gross realized gains and losses from sales of AFS securities for the periods indicated:

	For the Years Ended December 31,
	2024		2023		2022
	(In thousands)
Gross realized gains from sales of AFS securities	$	—	$	—	$	1,775
Gross realized losses from sales of AFS securities	(16,798)		(333,170)		(4,932)
Net losses from sales of AFS securities	$	(16,798)	$	(333,170)	$	(3,157)

Information pertaining to AFS securities with gross unrealized losses as of December 31, 2024 and 2023, for which the Company did not recognize a provision for credit losses under CECL, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

	As of December 31, 2024
		Less than 12 Months				12 Months or Longer				Total
	# of Holdings	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Government-sponsored residential mortgage-backed securities	324	$	9	$	113,326	$	537,424	$	2,448,569	$	537,433	$	2,561,895
Government-sponsored commercial mortgage-backed securities	187	27		86,201		201,381		1,074,910		201,408		1,161,111
U.S. Agency bonds	1	—		—		1,936		17,672		1,936		17,672
U.S. Treasury securities	6	—		—		2,165		97,619		2,165		97,619
State and municipal bonds and obligations	238	819		19,361		13,285		163,940		14,104		183,301
	756	$	855	$	218,888	$	756,191	$	3,802,710	$	757,046	$	4,021,598

	As of December 31, 2023
		Less than 12 Months				12 Months or Longer				Total
	# of Holdings	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Government-sponsored residential mortgage-backed securities	324	$	—	$	—	$	521,527	$	2,780,638	$	521,527	$	2,780,638
Government-sponsored commercial mortgage-backed securities	187	—		—		201,653		1,124,376		201,653		1,124,376
U.S. Agency bonds	23	—		—		20,443		216,011		20,443		216,011
U.S. Treasury securities	6	36		4,927		4,364		90,225		4,400		95,152
State and municipal bonds and obligations	196	233		22,894		6,299		135,279		6,532		158,173
	736	$	269	$	27,821	$	754,286	$	4,346,529	$	754,555	$	4,374,350

As of December 31, 2024, the Company did not intend to sell these investments and has determined based upon available evidence that it is more-likely-than-not that the Company will not be required to sell each security before the expected recovery of its amortized cost basis. As a result, the Company did not recognize an ACL on these investments as of either December 31, 2024 or 2023.

The causes of the impairments listed in the tables above by category are as follows as of December 31, 2024 and 2023:

•Government-sponsored mortgage-backed securities, U.S. Agency bonds and U.S. Treasury securities – The securities with unrealized losses in these portfolios have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies.

•State and municipal bonds and obligations – The securities with unrealized losses in this portfolio have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality.

Held to Maturity Securities

The amortized cost, gross unrealized gains and losses, ACL and fair value of HTM securities as of the dates indicated were as follows:

	As of December 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In thousands)
Debt securities:
Government-sponsored residential mortgage-backed securities	$	231,709	$	—	$	(29,438)	$	—	$	202,271
Government-sponsored commercial mortgage-backed securities	189,006		—		(19,553)		—		169,453
	$	420,715	$	—	$	(48,991)	$	—	$	371,724

	As of December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In thousands)
Debt securities:
Government-sponsored residential mortgage-backed securities	$	254,752	$	—	$	(24,433)	$	—	$	230,319
Government-sponsored commercial mortgage-backed securities	194,969		—		(20,466)		—		174,503
	$	449,721	$	—	$	(44,899)	$	—	$	404,822

The Company did not record a provision for estimated credit losses on any HTM securities during either the year ended December 31, 2024 or 2023. As of both December 31, 2024 and 2023, the accrued interest receivable on HTM securities totaled $0.9 million, and is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest receivable on HTM securities during either the year ended December 31, 2024 or 2023. No HTM securities held by the Company were delinquent on contractual payments as of either December 31, 2024 or 2023, nor were any such securities placed on non-accrual status during the periods then ended.

Available for Sale and Held to Maturity Securities Contractual Maturity

The amortized cost and estimated fair value of AFS and HTM securities by scheduled contractual maturities as of dates indicated were as follows:

	As of December 31, 2024
	Due in one year or less				Due after one year to five years				Due after five to ten years				Due after ten years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
AFS securities
Government-sponsored residential mortgage-backed securities	$	561	$	557	$	21,535	$	20,940	$	13,212	$	12,268	$	3,064,020	$	2,528,130	$	3,099,328	$	2,561,895
Government-sponsored commercial mortgage-backed securities	—		—		436,515		404,181		270,546		235,853		655,458		521,077		1,362,519		1,161,111
U.S. Agency bonds	—		—		19,608		17,672		—		—		—		—		19,608		17,672
U.S. Treasury securities	49,947		49,717		49,837		47,902		—		—		—		—		99,784		97,619
State and municipal bonds and obligations	5,368		5,319		33,497		32,284		51,326		48,743		107,214		96,955		197,405		183,301
Total available for sale securities	55,876		55,593		560,992		522,979		335,084		296,864		3,826,692		3,146,162		4,778,644		4,021,598
HTM securities
Government-sponsored residential mortgage-backed securities	—		—		—		—		—		—		231,709		202,271		231,709		202,271
Government-sponsored commercial mortgage-backed securities	—		—		133,168		121,471		55,838		47,982		—		—		189,006		169,453
Total held to maturity securities	—		—		133,168		121,471		55,838		47,982		231,709		202,271		420,715		371,724
Total	$	55,876	$	55,593	$	694,160	$	644,450	$	390,922	$	344,846	$	4,058,401	$	3,348,433	$	5,199,359	$	4,393,322

	As of December 31, 2023
	Due in one year or less				Due after one year to five years				Due after five to ten years				Due after ten years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
AFS securities
Government-sponsored residential mortgage-backed securities	$	—	$	—	$	29,288	$	28,188	$	22,735	$	21,235	$	3,250,142	$	2,731,215	$	3,302,165	$	2,780,638
Government-sponsored commercial mortgage-backed securities	—		—		256,229		234,725		379,749		327,198		690,051		562,453		1,326,029		1,124,376
U.S. Agency bonds	—		—		236,454		216,011		—		—		—		—		236,454		216,011
U.S. Treasury securities	—		—		99,552		95,152		—		—		—		—		99,552		95,152
State and municipal bonds and obligations	213		209		30,131		29,393		44,047		43,260		123,313		118,482		197,704		191,344
Total available for sale securities	213		209		651,654		603,469		446,531		391,693		4,063,506		3,412,150		5,161,904		4,407,521
HTM securities
Government-sponsored residential mortgage-backed securities	—		—		—		—		—		—		254,752		230,319		254,752		230,319
Government-sponsored commercial mortgage-backed securities	—		—		80,014		72,952		114,955		101,551		—		—		194,969		174,503
Total held to maturity securities	—		—		80,014		72,952		114,955		101,551		254,752		230,319		449,721		404,822
Total	$	213	$	209	$	731,668	$	676,421	$	561,486	$	493,244	$	4,318,258	$	3,642,469	$	5,611,625	$	4,812,343

Mortgage-backed securities include investments in securities that are insured or guaranteed by Freddie Mac, Ginnie Mae or Fannie Mae. Mortgage-backed securities are purchased to achieve positive interest rate spread with minimal administrative expense, and to lower the Company’s credit risk. Mortgage-backed securities and callable securities are shown at their contractual maturity dates. However, both are expected to have shorter average lives due to expected prepayments and callable features, respectively. Included in the above maturity tables as of December 31, 2024 and 2023 were $196.4 million, and $394.4 million, respectively, of callable securities at fair value.

Securities Pledged as Collateral

As of December 31, 2024 and 2023, securities with a carrying value of $687.9 million and $615.7 million, respectively, were pledged to secure public deposits and for other purposes required by law. As of December 31, 2024 and 2023, deposits with associated pledged collateral included cash accounts from the Company’s wealth management division (“Cambridge Trust Wealth Management”), which was formerly operated under the name “Eastern Wealth Management,” and municipal deposit accounts. As of December 31, 2024, securities with a carrying value of $1.0 billion were pledged as collateral to the FHLBB. No securities were pledged to the FHLBB as collateral as of December 31, 2023.

In March 2023 the Federal Reserve created the Bank Term Funding Program (the “Program”) that offered eligible depository institutions loans up to one year in length in return for any collateral eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries. As of December 31, 2023, securities with a carrying value of $2.4

billion were pledged as collateral through the Program. On January 24, 2024, the Federal Reserve Board announced the Program would cease making new loans as scheduled on March 11, 2024. Accordingly, no securities were pledged as collateral under the Program as of December 31, 2024. Separately, as of December 31, 2024 and 2023, the Company pledged securities with a carrying value of $794.8 million and $168.8 million, respectively, to the Federal Reserve Discount Window (the “Discount Window”).