Securities

3 Months Ended

Mar. 31, 2025

Available for Sale Securities

The amortized cost, gross unrealized gains and losses, allowance for credit losses (“ACL”) and fair value of available for sale (“AFS”) securities as of the dates indicated were as follows:


	As of March 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In thousands)
Debt securities:
Government-sponsored residential mortgage-backed securities	$	2,941,128	$	8,868	$	(302,358)	$	—	$	2,647,638
Government-sponsored commercial mortgage-backed securities	1,180,724		5,087		(109,042)		—		1,076,769
U.S. Treasury securities	100,019		195		(95)		—		100,119
State and municipal bonds and obligations	196,037		—		(16,634)		—		179,403
	$	4,417,908	$	14,150	$	(428,129)	$	—	$	4,003,929


	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

The Company did not record a provision for credit losses on any AFS securities for either the three months ended March 31, 2025 or 2024. Accrued interest receivable on AFS securities totaled $13.0 million and $8.9 million as of March 31, 2025 and December 31, 2024, respectively, and is included within other assets on the Consolidated Balance Sheets. The Company did not record any write-offs of accrued interest receivable on AFS securities during either the three months ended March 31, 2025 or 2024. No AFS securities held by the Company were delinquent on contractual payments as of March 31,

2025 or December 31, 2024, nor were any AFS securities placed on non-accrual status during the three- and twelve-month periods then ended.

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


	Three Months Ended March 31,
	2025		2024
	(In thousands)
Gross realized gains from sales of AFS securities	$	—	$	—
Gross realized losses from sales of AFS securities	(269,638)		—
Net losses from sales of AFS securities	$	(269,638)	$	—

Information pertaining to AFS securities with gross unrealized losses as of March 31, 2025 and December 31, 2024, for which the Company did not recognize a provision for credit losses under the current expected credit loss methodology (“CECL”), aggregated by investment category and length of time that individual securities had been in a continuous loss position, is as follows:


	As of March 31, 2025
		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	299	$	898	$	268,473	$	301,460	$	1,614,229	$	302,358	$	1,882,702
Government-sponsored commercial mortgage-backed securities	149	—		—		109,042		631,365		109,042		631,365
U.S. Treasury securities	4	—		—		95		49,875		95		49,875
State and municipal bonds and obligations	236	559		11,530		16,075		167,873		16,634		179,403
	688	$	1,457	$	280,003	$	426,672	$	2,463,342	$	428,129	$	2,743,345


	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

The Company does 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 March 31, 2025 or December 31, 2024.

The causes of the impairments listed in the tables above by category are as follows as of March 31, 2025 and December 31, 2024:

•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, allowance for credit losses and fair value of held to maturity (“HTM”) securities as of the dates indicated were as follows:


	As of March 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In thousands)
Debt securities:
Government-sponsored residential mortgage-backed securities	$	227,145	$	—	$	(23,653)	$	—	$	203,492
Government-sponsored commercial mortgage-backed securities	188,043		—		(16,198)		—		171,845
State and municipal bonds and obligations	7,662		—		(142)		—		7,520
Corporate note	18,000		225		—		—		18,225
	$	440,850	$	225	$	(39,993)	$	—	$	401,082


	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

The Company did not record a provision for estimated credit losses on any HTM securities for either the three months ended March 31, 2025 or 2024. As of both March 31, 2025 and December 31, 2024, 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 three months ended March 31, 2025 or 2024. No HTM securities held by the Company were delinquent on contractual payments as of either March 31, 2025 or December 31, 2024, nor were any HTM securities placed on non-accrual status during the three and twelve month 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 contractual maturities as of March 31, 2025 and December 31, 2024 are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.

The scheduled contractual maturities of AFS and HTM securities as of the dates indicated were as follows:


	As of March 31, 2025
	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	$	341	$	339	$	19,001	$	18,564	$	12,184	$	11,425	$	2,909,602	$	2,617,310	$	2,941,128	$	2,647,638
Government-sponsored commercial mortgage-backed securities	—		—		611,697		606,580		50,396		44,396		518,631		425,793		1,180,724		1,076,769
U.S. Treasury securities	49,970		49,875		50,049		50,244		—		—		—		—		100,019		100,119
State and municipal bonds and obligations	6,841		6,785		33,027		31,945		50,698		47,788		105,471		92,885		196,037		179,403
Total available for sale securities	57,152		56,999		713,774		707,333		113,278		103,609		3,533,704		3,135,988		4,417,908		4,003,929
HTM securities
Government-sponsored residential mortgage-backed securities	—		—		—		—		—		—		227,145		203,492		227,145		203,492
Government-sponsored commercial mortgage-backed securities	—		—		132,445		122,957		55,598		48,888		—		—		188,043		171,845
State and municipal bond obligations	—		—		—		—		—		—		7,662		7,520		7,662		7,520
Corporate note	—		—		—		—		18,000		18,225		—		—		18,000		18,225
Total held to maturity securities	—		—		132,445		122,957		73,598		67,113		234,807		211,012		440,850		401,082
Total	$	57,152	$	56,999	$	846,219	$	830,290	$	186,876	$	170,722	$	3,768,511	$	3,347,000	$	4,858,758	$	4,405,011


	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		0	—		—		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

Securities Pledged as Collateral

As of March 31, 2025 and December 31, 2024, securities with a carrying value of $576.6 million and $687.9 million, respectively, were pledged to secure public deposits and for other purposes required by law. As of March 31, 2025 and December 31, 2024, deposits with associated pledged collateral included cash accounts from the Company’s wealth management division (“Cambridge Trust Wealth Management”) and municipal deposit accounts. As of March 31, 2025 and December 31, 2024, securities with a carrying value of $0.3 billion and $1.0 billion, respectively, were pledged as collateral to the FHLBB.

As of March 31, 2025 and December 31, 2024, the Company pledged securities with a carrying value of $440.5 million and $794.8 million, respectively, to the Federal Reserve Discount Window (the “Discount Window”).