Securities

9 Months Ended

Sep. 30, 2025

Securities

Securities

4.     Securities

The following tables summarize the Company’s portfolio of securities held-to-maturity at:

			Allowance		Net		Gross		Gross
	Amortized		for		Carrying		Unrecognized		Unrecognized
September 30, 2025	Cost		Credit Losses		Amount		Gains		Losses		Fair Value
	(In thousands)
Municipals	$	43,039	$	(351)	$	42,688	$	—	$	(3,492)	$	39,196
FNMA		7,821		—		7,821		—		(633)		7,188
Total	$	50,860	$	(351)	$	50,509	$	—	$	(4,125)	$	46,384

			Allowance		Net		Gross		Gross
	Amortized		for		Carrying		Unrecognized		Unrecognized
December 31, 2024	Cost		Credit Losses		Amount		Gains		Losses		Fair Value
	(In thousands)
Municipals	$	44,002	$	(353)	$	43,649	$	—	$	(5,834)	$	37,815
FNMA		7,836		—		7,836		—		(933)		6,903
Total	$	51,838	$	(353)	$	51,485	$	—	$	(6,767)	$	44,718

The following tables summarize the Company’s portfolio of securities available for sale on:

				Allowance	Gross		Gross
	Amortized			for	Unrealized		Unrealized
September 30, 2025	Cost		Credit Losses		Gains		Losses		Fair Value
	(In thousands)
U.S. government agencies	$	6,836	$	—	$	24	$	(43)	$	6,817
Municipals		20,627		(2,921)		—		(428)		17,278
Corporate		201,329		—		2,381		(3,580)		200,130
Mutual funds		12,502		—		—		—		12,502
Collateralized loan obligations		398,210		—		246		(1,521)		396,935
Other		1,491		—		—		—		1,491
Total other securities		640,995		(2,921)		2,651		(5,572)		635,153
REMIC and CMO		698,119		—		4,140		(326)		701,933
GNMA		42,678		—		215		(20)		42,873
FNMA		70,873		—		490		(7)		71,356
FHLMC		88,840		—		1,268		—		90,108
Total mortgage-backed securities		900,510		—		6,113		(353)		906,270
Total Securities available for sale	$	1,541,505	$	(2,921)	$	8,764	$	(5,925)	$	1,541,423

				Allowance	Gross		Gross
	Amortized			for	Unrealized		Unrealized
December 31, 2024	Cost		Credit Losses		Gains		Losses		Fair Value
	(In thousands)
U.S. government agencies	$	8,804	$	—	$	77	$	(33)	$	8,848
Municipals		20,627		(2,627)		—		—		18,000
Corporate		130,882		—		735		(6,368)		125,249
Mutual funds		11,890		—		—		—		11,890
Collateralized loan obligations		420,260		—		1,126		(569)		420,817
Other		1,465		—		—		—		1,465
Total other securities		593,928		(2,627)		1,938		(6,970)		586,269
REMIC and CMO		707,540		—		1,107		(1,067)		707,580
GNMA		30,099		—		—		(154)		29,945
FNMA		99,183		—		11		(1,048)		98,146
FHLMC		76,048		—		13		(96)		75,965
Total mortgage-backed securities		912,870		—		1,131		(2,365)		911,636
Total securities available for sale	$	1,506,798	$	(2,627)	$	3,069	$	(9,335)	$	1,497,905

Corporate securities held by the Company at September 30, 2025 and December 31, 2024, are issued by U.S. banking institutions. CMOs held by the Company at September 30, 2025 and December 31, 2024, are either fully guaranteed or issued by a government sponsored enterprise.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at September 30, 2025, by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due after ten years	$	43,039	$	39,196
Total other securities		43,039		39,196
Mortgage-backed securities		7,821		7,188
Total securities held-to-maturity	$	50,860	$	46,384

	Amortized
Securities available for sale:	Cost		Fair Value
	(In thousands)
Due after one year through five years	$	70,359	$	69,312
Due after five years through ten years		191,469		191,305
Due after ten years		366,665		362,034
Total other securities		628,493		622,651
Mutual funds		12,502		12,502
Mortgage-backed securities		900,510		906,270
Total securities available for sale	$	1,541,505	$	1,541,423

The following tables show the Company’s securities without an allowance for credit losses with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

	At September 30, 2025
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
FNMA	1		7,188		(633)		—		—		7,188		(633)
Total mortgage-backed securities	1		7,188		(633)		—		—		7,188		(633)
Total	1	$	7,188	$	(633)	$	—	$	—	$	7,188	$	(633)
Available for sale securities
U.S. government agencies	3	$	4,096	$	(43)	$	1,198	$	(11)	$	2,898	$	(32)
Corporate	13		96,871		(3,580)		6,234		(11)		90,637		(3,569)
Collateralized loan obligations	19		227,226		(1,521)		99,785		(331)		127,441		(1,190)
Total other securities	35		328,193		(5,144)		107,217		(353)		220,976		(4,791)
REMIC and CMO	10		86,741		(326)		39,701		(119)		47,040		(207)
GNMA	1		15,027		(20)		15,027		(20)		—		—
FNMA	1		14,341		(7)		14,341		(7)		—		—
Total mortgage-backed securities	12		116,109		(353)		69,069		(146)		47,040		(207)
Total securities available for sale	47	$	444,302	$	(5,497)	$	176,286	$	(499)	$	268,016	$	(4,998)

	At December 31, 2024
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
FNMA	1		6,903		(933)		—		—		6,903		(933)
Total mortgage-backed securities	1		6,903		(933)		—		—		6,903		(933)
Total	1	$	6,903	$	(933)	$	—	$	—	$	6,903	$	(933)
Available for sale securities
U.S. government agencies	2	$	3,339	$	(33)	$	—	$	—	$	3,339	$	(33)
Corporate	13		95,758		(6,368)		—		—		95,758		(6,368)
Collateralized loan obligations	18		201,470		(569)		201,470		(569)		—		—
Total other securities	33		300,567		(6,970)		201,470		(569)		99,097		(6,401)
REMIC and CMO	19		287,948		(1,067)		281,570		(936)		6,378		(131)
GNMA	4		29,945		(154)		28,443		(134)		1,502		(20)
FNMA	6		97,417		(1,048)		97,417		(1,048)		—		—
FHLMC	3		56,540		(96)		56,540		(96)		—		—
Total mortgage-backed securities	32		471,850		(2,365)		463,970		(2,214)		7,880		(151)
Total	65	$	772,417	$	(9,335)	$	665,440	$	(2,783)	$	106,977	$	(6,552)

The Company reviewed all available for sale securities that had an unrealized loss at September 30, 2025 and December 31, 2024. Upon this review management determined one municipal security indicated that a credit loss existed at September 30, 2025 and December 31, 2024, resulting in an allowance for credit losses being recorded. At September 30, 2025, this security was non-accrual with an amortized cost of $20.6 million, an allowance for credit losses of $2.9 million and a fair value of $17.3 million. At December 31, 2024, this security was non-accrual with an amortized cost of $20.6 million, an allowance for credit losses of $2.6 million and a fair value of $18.0 million.

All but one of the remaining securities held on September 30, 2025 and December 31, 2024, are either rated investment grade or better, and all these securities have a long history of no credit losses. The Bank holds approximately $10 million of corporate debt from a New York based bank holding company that at September 30, 2025 and December 31, 2024 was rated B1. We do not consider the decline in fair value to be credit related given the underlying bond has not missed any payments and financial performance has not deteriorated to a level where the institution is not well capitalized. The Bank has placed the security on the watch list and will continue to monitor this risk position closely to determine if any action steps and valuation adjustments are required in the future. It is not anticipated that this security or any other available for sale security held at September 30, 2025 and December 31, 2024 would be settled at a price that is less than the amortized cost of the Company’s investment, other than the one municipal security discussed above.

The Company does not have the intent to sell these securities, and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. If the Company identifies any decline in the fair value due to credit loss factors and an evaluation indicates that a credit loss exists, then the present value of cash flows that is expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

In determining the risk of loss for available for sale securities, the Company considered that mortgage-backed securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government, and that issuers of the collateralized loan obligations (“CLO”) and the issuer of corporate securities are global systematically important banks. Each of these securities is performing according to its terms

and, in the opinion of management, will continue to perform according to its terms. Based on this review, management believes that the unrealized losses have resulted from other factors not deemed credit-related and no allowance for credit loss was recorded.

The Company reviewed each held-to-maturity security as part of its quarterly Current Expected Credit Loss (“CECL”) process, resulting in an allowance for credit losses of $0.4 million at both September 30, 2025 and December 31, 2024.

It is the Company’s policy to exclude accrued interest receivable from the calculation of the allowance for credit losses on held-to-maturity and the valuation of available for sale securities. Accrued interest receivable on held-to-maturity securities totaled $0.1 million at both September 30, 2025 and December 31, 2024 and accrued interest receivable on available for sale debt securities totaled $8.4 million and $8.8 million at September 30, 2025 and December 31, 2024, respectively.

The following table presents the activity in the allowance for credit losses for debt securities available for sale:

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
	(In thousands)
Beginning balance	$	3,066	$	—	$	2,627	$	—
Provision (benefit)		(145)		—		294		—
Allowance for credit losses	$	2,921	$	—	$	2,921	$	—

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity:

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
	(In thousands)
Beginning balance	$	355	$	1,089	$	353	$	1,087
Provision (benefit)		(4)		(3)		(2)		(1)
Allowance for credit losses	$	351	$	1,086	$	351	$	1,086

Realized gains and losses on the sales of securities are determined using the specific identification method. During the three and nine months ended September 30, 2025, the Company sold available for sale securities with carrying values at the time of sale totaling $80.7 million at an average yield of 5.29%. During the three and nine months ended September 30, 2024, the Company did not sell any available for sale securities.

The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:

The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:
	For the three months ended				For the nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
	(In thousands)
Gross gains from the sale of securities	$	661	$	—	$	661	$	—
Gross losses from the sale of securities		—		—		—		—
Net gain (loss) from the sale of securities	$	661	$	—	$	661	$	—