The table below includes the fair value of equity securities as of December 31, 2025 and 2024. Equity investments with no readily determinable fair value are carried at cost. Federal Home Loan Bank and Federal Reserve stock represent equity interests the Company is required to hold in the Federal Reserve Bank and Federal Home Loan Bank. These amounts are also carried at cost as they do not have a readily determinable fair value because ownership of these shares is restricted, and they lack a market.


	December 31,
	2025		2024
Equity securities:	(dollars in thousands)
Common and preferred stock with readily determinable fair value	$	-	$	724
Federal Home Loan Bank stock	10,634		10,708
Federal Reserve Bank stock	26,057		26,057
Other - no readily determinable fair value	11,510		11,281
Total equity securities	$	48,200	$	48,770

As of December 31, 2023, the Company held 66,020 shares of Visa Inc. Class B-1 common stock that had a carrying value of zero as there had not been observable price changes in orderly transactions for identical or similar investments. On January 23, 2024, Visa, Inc.'s shareholders approved an exchange offer that allowed holders of Class B-1 shares to convert up to 50% of their holdings into Visa Class C shares, which could later be converted into freely transferable Visa Class A common shares, subject to certain restrictions and holding period conditions (the "Exchange Offer"). The Exchange Offer opened on April 8, 2024, and expired on May 3, 2024. The Company tendered all of its 66,020 Class B-1 Visa shares under the offer, receiving 33,010 Visa Class B-2 shares and 13,100 Visa Class C shares. The Visa Class C shares automatically convert into four Visa Class A shares upon transfer to anyone other than a Visa member or affiliate.

In the second quarter of 2024, the Company sold 34,928 Visa Class A shares, recognizing $9.7 million in pre-tax gains. An unrealized gain of $4.6 million was recognized on the remaining Visa Class C shares based on the closing price of Visa Class A shares, reflecting market transactions involving similar Visa securities. The Company sold the remaining Visa Class C shares, equating to 17,472 Visa Class A shares, in the third quarter of 2024, realizing a pre-tax gain of $4.5 million. As of December 31, 2025 we continue to hold all 33,010 of Visa Class B-2 shares, which retain the same restrictions as the former Class B-1 shares and have a carrying value of zero, as there have not been observable price changes in orderly transactions for identical or similar investments of the same issuer.

During 2025, $0.1 million in net gains were recorded on common and preferred stock, consisting of $0.8 million in gains realized on sales during 2025 and a $0.7 million decrease in unrealized gains on the portfolio. In 2024, and including the gain on Visa shares outlined above, $14.7 million in net gains were recorded on common and preferred stock, consisting of $16.0 million in gains realized on sales during 2024 and $1.3 million decrease in unrealized gains on the portfolio.


	As of December 31, 2025
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values		Allowance for credit losses		Net carrying amount
Available for sale securities:	(dollars in thousands)
U.S. Treasury securities	$	918,922	$	10,561	$	(1,196)	$	928,287	$	-	$	928,287
U.S. Agency debentures	132,692		177		(413)		132,456		-		132,456
U.S. Agency mortgage-backed securities	5,345,130		46,346		(102,899)		5,288,577		-		5,288,577
Obligations of states and political subdivisions	16,595		87		(38)		16,644		-		16,644
Other securities	6,535		-		(36)		6,499		-		6,499
Total available for sale securities	$	6,419,874	$	57,171	$	(104,582)	$	6,372,463	$	-	$	6,372,463
Held to maturity:
U.S. Agency mortgage-backed securities	$	21	$	1	$	-	$	22	$	-	$	22
Obligations of states and political subdivisions	1,678		-		-		1,678		(10)		1,668
Total held to maturity securities	$	1,699	$	1	$	-	$	1,700	$	(10)	$	1,690


	As of December 31, 2024
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair values		Allowance for credit losses		Net carrying amount
Available for sale securities:	(dollars in thousands)
U.S. Treasury securities	$	1,291,137	$	752	$	(22,336)	$	1,269,553	$	-	$	1,269,553
U.S. Agency debentures	373,869		54		(4,635)		369,288		-		369,288
U.S. Agency mortgage-backed securities	4,078,956		6,535		(170,739)		3,914,752		-		3,914,752
Obligations of states and political subdivisions	21,274		79		(212)		21,141		-		21,141
Other securities	29,648		12		(671)		28,989		-		28,989
Total available for sale securities	$	5,794,884	$	7,432	$	(198,593)	$	5,603,723	$	-	$	5,603,723
Held to maturity:
U.S. Agency mortgage-backed securities	$	25	$	1	$	-	$	26	$	-	$	26
Obligations of states and political subdivisions	3,221		-		(16)		3,205		(21)		3,184
Total held to maturity securities	$	3,246	$	1	$	(16)	$	3,231	$	(21)	$	3,210


	December 31, 2025
	U.S. government obligations and government-sponsored enterprises						Obligations of state and political subdivisions						Other securities*
	Amortized Cost		FTE Yield		Fair Value		Amortized Cost		FTE Yield		Fair Value		Amortized Cost		FTE Yield		Fair Value
Securities available for sale:	(dollars in thousands)
Within 1 year	$	96,253	2.11	%	$	95,243	$	2,759	3.55	%	$	2,757	$	-	-	%	$	-
After 1 but within 5 years	955,361		4.22	%	965,500		13,173		4.54	%	13,232		1,167		7.49	%	1,167
After 5 but within 10 years	-		-	%	-		256		2.74	%	252		-		-	%	-
After 10 years	-		-	%	-		407		7.89	%	403		-		-	%	-
Mortgage– and asset-backed securities	5,345,130		4.04	%	5,288,577		-		-	%	-		5,368		5.07	%	5,332
Total available for sale securities	$	6,396,744	4.04	%	$	6,349,320	$	16,595	4.43	%	$	16,644	$	6,535	5.58	%	$	6,499

Securities held to maturity:
Within 1 year	$	-	-	%	$	-	$	155	3.36	%	$	155	$	-	-	%	$	-
After 1 but within 5 years	-		-	%	-		1,492		2.75	%	1,492		-		-	%	-
After 5 but within 10 years	-		-	%	-		31		6.52	%	31		-		-	%	-
After 10 years	-		-	%	-		-		-	%	-		-		-	%	-
Mortgage– and asset-backed securities	21		6.11	%	22		-		-	%	-		-		-	%	-
Total held to maturity securities	$	21	6.11	%	$	22	$	1,678	2.88	%	$	1,678	$	-	-	%	$	-
* Other securities consist primarily of corporate bonds.

Proceeds from sales of AFS securities in 2025 and 2024 were $0.32 billion and $1.04 billion, respectively. Using the specific-identification method to determine the cost of the securities sold, net losses of $6.9 million and $51.2 million were recognized on the sale of AFS securities in 2025 and 2024, respectively.

The Company adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, on January 1, 2023. The principles for expected credit losses apply to all financial assets valued at cost, including our portfolio of HTM debt securities. The expected credit losses for these assets are determined based on the likelihood of default and the potential loss in the event of default, using assumptions that correspond to loans with similar credit profiles. The Company recorded an allowance for credit losses on its HTM securities of $10 thousand and $21 thousand at December 31, 2025 and 2024, respectively.

All AFS securities not issued or guaranteed by the U.S. Government, its agencies, or sponsored enterprises are subject to a quarterly review to test for impairment. This process requires the Company to adequately test for a range of credit and loss assumptions and does not rely primarily on credit ratings. This revealed no matters that would warrant impairment and result in an allowance for credit losses as of December 31, 2025 and 2024, respectively. The Company determined that all unrealized losses in its available-for-sale portfolio are primarily attributable to changes in interest rates and current market conditions.

Special emphasis and analysis are placed on securities that have experienced a negative credit rating event, are below investment grade, or have an uncertain financial outlook. These securities are placed on a watch list and monitored for further developments. At December 31, 2025, the fair value of securities on this watch list was $4.9 million compared to $2.2 million at December 31, 2024.

The table below summarizes debt securities AFS in an unrealized loss position, aggregated by length of impairment period, for which an allowance for credit losses has not been recorded. Unrealized losses on these AFS securities have not been recognized into income because after review, the securities were deemed not to be impaired. The unrealized losses on these securities are primarily attributable to changes in interest rates and current market conditions. Additionally, management does not intend to sell the securities, and it is more likely than not that management will not be required to sell the securities prior to the anticipated recovery.

Gross unrealized losses on AFS investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024 were as follows:


	As of December 31, 2025
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Available for sale securities:	(dollars in thousands)
U.S. government obligations and government- sponsored enterprises	$	419,704	$	(1,190)	$	1,469,113	$	(103,318)	$	1,888,817	$	(104,508)
Obligations of states and political subdivisions	-		-		7,204		(38)		7,204		(38)
Other securities	-		-		3,557		(36)		3,557		(36)
Total available for sale securities	$	419,704	$	(1,190)	$	1,479,874	$	(103,392)	$	1,899,578	$	(104,582)


	As of December 31, 2024
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Available for sale securities:	(dollars in thousands)
U.S. government obligations and government- sponsored enterprises	$	1,468,478	$	(14,293)	$	2,757,421	$	(183,418)	$	4,225,899	$	(197,711)
Obligations of states and political subdivisions	2,239		(16)		9,618		(195)		11,856		(211)
Other securities	717		-		26,691		(671)		27,409		(671)
Total available for sale securities	$	1,471,434	$	(14,309)	$	2,793,730	$	(184,284)	$	4,265,164	$	(198,593)

Gross unrealized losses on HTM investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024 were as follows:


	As of December 31, 2025
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Held to maturity securities:	(dollars in thousands)
U.S. government obligations and government- sponsored enterprises	$	-	$	-	$	-	$	-	$	-	$	-
Obligations of states and political subdivisions	450		-		-		-		450		-
Total held to maturity securities	$	450	$	-	$	-	$	-	$	450	$	-


	As of December 31, 2024
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Held to maturity securities:	(dollars in thousands)
U.S. government obligations and government- sponsored enterprises	$	-	$	-	$	-	$	-	$	-	$	-
Obligations of states and political subdivisions	1,278		(15)		149		(1)		1,427		(16)
Total held to maturity securities	$	1,278	$	(15)	$	149	$	(1)	$	1,427	$	(16)

For obligations of states and political subdivisions, the Company’s holdings are primarily in general obligation and revenue bonds. The Company monitors credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends. The underlying bonds are evaluated for credit losses in conjunction with management’s estimate of the allowance for credit losses.


	December 31, 2025
	Amortized Cost Basis by Credit Rating
	Non-Rated		A		AA		AAA		Grand Total
Held to maturity securities:	(dollars in thousands)
State and political subdivisions	$	251	$	-	$	1,132	$	295	$	1,678

	December 31, 2024
	Amortized Cost Basis by Credit Rating
	Non-Rated		A		AA		AAA		Grand Total
Held to maturity securities:	(dollars in thousands)
State and political subdivisions	$	35	$	40	$	2,996	$	150	$	3,221