The table below includes the fair value of equity securities as of March 31, 2026 and December 31, 2025. Equity investments with no readily determinable fair value are carried at cost. FHLB and FRB 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.


	March 31, 2026		December 31, 2025
	(dollars in thousands)

Federal Home Loan Bank stock	$	10,604	$	10,634
Federal Reserve Bank stock	26,057		26,057
Other - no readily determinable fair value	11,513		11,510
Total	$	48,174	$	48,200

During the first three months of 2026, there were no recorded gains or losses on common and preferred stock. During the first three months of 2025, $0.1 million in net gains were recorded on common and preferred stock. These consisted of $0.8 million in realized gains on sales, offset by a $0.7 million decrease in unrealized gains on the portfolio.

Included in the equity securities portfolio at March 31, 2026 are holdings of 33,010 of Visa Class B-2 shares, which are carried at a zero cost basis, as the Company has elected to use an alternative measurement method due to the lack of observable price changes in the market for identical or similar investments of the same issuer.

On April 13, 2026, Visa announced the commencement of an exchange offer pursuant to which holders of Class B‑2 common stock may exchange their shares for a combination of Visa Class B‑3 common stock and Class C common stock (the “Exchange Offer”). The Exchange Offer remains subject to the terms and conditions set forth by Visa.

In May 2026, the Company participated in Visa Inc.’s Exchange Offer, pursuant to which all 33,010 shares of its Class B‑2 common stock were validly tendered and accepted in exchange for a combination of Visa Class B‑3 common stock and Class C common stock, together with cash in lieu of fractional shares.

As a result of the exchange, the Company expects to recognize a pre-tax gain of approximately $8 million in the second quarter of 2026, reflecting the fair value measurement of the Class C common stock received. The fair value of the Class C shares was determined based on their as-converted equivalence to Visa Class A common stock and the closing price of Visa Class A common stock of $318.79 per share on May 8, 2026.

The remaining 16,505 shares of Visa Class B-3 common stock retain the same restrictions as the former Class B-2 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.


	As of March 31, 2026
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Available for sale:
U.S. Treasury securities	$	1,096,080	$	4,164	$	(2,936)	$	1,097,308	$	-	$	1,097,308
U.S. agency debentures	128,157		16		(505)		127,668		-		127,668
U.S. agency mortgage-backed securities	5,594,209		19,838		(118,082)		5,495,965		-		5,495,965
Obligations of states and political subdivisions	15,889		55		(52)		15,892		-		15,892
Other securities	4,804		2		(66)		4,740		-		4,740
Total	$	6,839,139	$	24,075	$	(121,641)	$	6,741,573	$	-	$	6,741,573

Held to maturity:
U.S. agency RMBS	$	20	$	1	$	-	$	21	$	-	$	21
Obligations of states and political subdivisions	1,518		-		-		1,518		(10)		1,508
Total	$	1,538	$	1	$	-	$	1,539	$	(10)	$	1,529


	As of December 31, 2025
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Available for sale:
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	$	6,419,874	$	57,171	$	(104,582)	$	6,372,463	$	-	$	6,372,463

Held to maturity:
U.S. agency RMBS	$	21	$	1	$	-	$	22	$	-	$	22
Obligations of states and political subdivisions	1,678		-		-		1,678		(10)		1,668
Total	$	1,699	$	1	$	-	$	1,700	$	(10)	$	1,690


	March 31, 2026
	U.S. government obligations and government- sponsored enterprises						Obligations of states and political subdivisions						Other securities*
	Amortized cost		FTE Yield		Fair value		Amortized cost		FTE Yield		Fair value		Amortized cost		FTE Yield		Fair value
	(dollars in thousands)
Available for sale:
Within 1 year	$	191,070	2.94	%	$	190,109	$	4,743	4.65	%	$	4,773	$	-	-	%	$	-
After 1 but within 5 years	1,033,167		4.20	%	1,034,866		10,744		4.25	%	10,721		-		-		-
After 5 but within 10 years	-		-		-		-		-		-		-		-		-
After 10 years	-		-		-		402		7.91	%	398		-		-		-
Mortgage - and asset-backed securities	5,594,209		4.02	%	5,495,966		-		-		-		4,804		4.77	%	4,740
Total	$	6,818,446	4.01	%	$	6,720,941	$	15,889	4.46	%	$	15,892	$	4,804	4.77	%	$	4,740

Held to maturity:
Within 1 year	$	-	-	%	$	-	$	295	5.04	%	$	295	$	-	-	%	$	-
After 1 but within 5 years	-		-		-		1,223		2.28	%	1,223		-		-		-
After 5 but within 10 years	-		-		-		-		-		-		-		-		-
After 10 years	-		-		-		-		-		-		-		-		-
Mortgage - and asset-backed securities	20		6.11	%	21		-		-		-		-		-		-
Total	$	20	6.11	%	$	21	$	1,518	2.82	%	$	1,518	$	-	-	%	$	-
* Other securities consist primarily of corporate bonds.

Investment securities with a carrying value of approximately $3.46 billion and $4.06 billion were pledged to secure public deposits, repurchase agreements, and borrowed funds at March 31, 2026 and December 31, 2025, respectively.

The expected credit losses for HTM debt securities are determined based on the likelihood of default and potential loss, using assumptions that correspond to loans with similar credit profiles. The Company recorded an allowance for credit losses on its HTM debt securities of $10 thousand at both March 31, 2026 and December 31, 2025.

All AFS securities not issued or guaranteed by the U.S. Government, its agencies, or sponsored enterprises undergo a quarterly evaluation for impairment. This evaluation involves testing various credit and loss assumptions, rather than solely relying on credit ratings. As of March 31, 2026, the Company did not identify any such securities for which a credit loss exists, and for the three months ended March 31, 2026 and 2025, the Company did not recognize a credit loss expense on any AFS securities.

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 March 31, 2026, the fair value of securities on this watch list was $4.3 million compared to $4.9 million at December 31, 2025.

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 at March 31, 2026 and December 31, 2025. Unrealized losses on these AFS securities have not been recognized as 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. At March 31, 2026 management does not intend to sell the securities, nor is it anticipated that it would be required to sell the securities prior to the anticipated recovery.


	As of March 31, 2026
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
	(dollars in thousands)
Available for sale:
U.S. government obligations and government- sponsored enterprises	$	2,083,763	$	(15,229)	$	1,401,353	$	(106,293)	$	3,485,116	$	(121,522)
Obligations of states and political subdivisions	475		-		6,229		(52)		6,704		(52)
Other securities	-		-		3,421		(66)		3,421		(66)
Total	$	2,084,238	$	(15,229)	$	1,411,003	$	(106,411)	$	3,495,241	$	(121,640)


	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
	(dollars in thousands)
Available for sale:
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	$	419,704	$	(1,190)	$	1,479,874	$	(103,392)	$	1,899,578	$	(104,582)

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 March 31, 2026 and December 31, 2025 were as follows:


	As of March 31, 2026
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
	(dollars in thousands)
Held to maturity:
U.S. government obligations and government- sponsored enterprises	$	-	$	-	$	-	$	-	$	-	$	-
Obligations of states and political subdivisions	515		-		-		-		515		-
Total	$	515	$	-	$	-	$	-	$	515	$	-


	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
	(dollars in thousands)
Held to maturity:
U.S. government obligations and government- sponsored enterprises	$	-	$	-	$	-	$	-	$	-	$	-
Obligations of states and political subdivisions	450		-		-		-		450		-
Total	$	450	$	-	$	-	$	-	$	450	$	-

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.


	March 31, 2026
	Amortized Cost Basis by Credit Rating - HTM Debt Securities
	Non-Rated		A		AA		AAA		Total
Held to maturity securities:	(dollars in thousands)
State and political subdivisions	$	246	$	-	$	977	$	295	$	1,518

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