Securities (Tables)

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Schedule of Carrying Amount and Fair Value of Securities

The carrying amount of securities and their approximate fair values are reflected in the following table:


March 31, 2025	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government agencies	$	17,912	$	13	$	68	$	17,857
Mortgage-backed securities	1,380,674		2,732		91,633		1,291,773
Municipal bonds	3,170		—		120		3,050

Total	$	1,401,756	$	2,745	$	91,821	$	1,312,680


December 31, 2024	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government agencies	$	18,196	$	—	$	299	$	17,897
Mortgage-backed securities	1,335,177		1,083		108,927		1,227,333
Municipal bonds	3,176		—		203		2,973

Total	$	1,356,549	$	1,083	$	109,429	$	1,248,203

Schedule of Debt Securities Available-for-Sale in Unrealized Loss Position

The following tables show debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.


	Less Than 12 Months				12 Months or More				Total
March 31, 2025	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	1,020	$	3	$	9,909	$	65	$	10,929	$	68
Mortgage-backed securities	183,670		2,154		850,837		89,479		1,034,507		91,633
Municipal bonds	—		—		3,050		120		3,050		120

Total	$	184,690	$	2,157	$	863,796	$	89,664	$	1,048,486	$	91,821


	Less Than 12 Months				12 Months or More				Total
December 31, 2024	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	8,036	$	189	$	9,861	$	110	$	17,897	$	299
Mortgage-backed securities	265,934		4,173		859,819		104,754		1,125,753		108,927
Municipal bonds	—		—		2,973		203		2,973		203
Total	$	273,970	$	4,362	$	872,653	$	105,067	$	1,146,623	$	109,429

Schedule of Investment Securities by Maturity

The following is a summary of investment securities by maturity:


	March 31, 2025
	Available-for-Sale
	Amortized Cost		Fair Value
U.S. government agencies
Within one year	$	7,000	$	6,981
One to five years	3,997		3,948
Five to ten years	6,915		6,928
Total	17,912		17,857
Mortgage-backed securities
Within one year	30,237		30,101
One to five years	215,854		209,408
Five to ten years	214,097		194,625
After 10 years	920,486		857,639
Total	1,380,674		1,291,773
Municipal bonds
Five to ten years	3,074		2,967
After 10 years	96		83
Total	3,170		3,050





Total	$	1,401,756	$	1,312,680

Schedule of Balance Sheet and Income Statement Information of Combined Equity Method Investments

The carrying amount and ownership percentage of each equity method investment at March 31, 2025 and December 31, 2024 is reflected in the following table:


	March 31, 2025				December 31, 2024
	Amount		Ownership %		Amount		Ownership %
Apiture, Inc.	$	52,177	40.4	%	$	53,108	40.4	%
Canapi Ventures SBIC Fund, LP (1) (5)	11,631		2.9		11,504		2.9
Canapi Ventures Fund, LP (2) (5)	1,397		1.5		1,438		1.5
Canapi Ventures Fund II, LP (3) (5)	2,401		1.6		2,193		1.6
Canapi Ventures SBIC Fund II, LP (4) (5)	1,184		2.9		1,238		2.9
Affordable housing (6)	12,665		Various		14,724		Various
Solar tax credit investments (7)	4,404		99.0		5,309		99.0
Other (8)	1,177		Various		1,489		Various
Total	$	87,036			$	91,003


(1)			Investment unfunded commitments of $4.8 million and $5.0 million as of March 31, 2025 and December 31, 2024, respectively.
(2)			Investment unfunded commitments of $492 thousand as of March 31, 2025 and December 31, 2024.
(3)			Investment unfunded commitments of $4.9 million and $5.2 million as of March 31, 2025 and December 31, 2024, respectively.
(4)			Investment unfunded commitments of $6.5 million as of March 31, 2025 and December 31, 2024.
(5)			Investee is accounted for under equity method due to the Company's potential influence with investment advisor.

(6)			Affordable Housing includes low income housing tax credit (“LIHTC”) in Estrella Landing Apartments LLC (“Estrella Landing”), in which the Company holds a 99.9% limited member interest. Also included are Cape Fear Collective Impact Opportunity 1 LLC (“Cape Fear Collective 1”) and Cape Fear Collective Impact Opportunity 2 LLC (“Cape Fear Collective 2”) which the Company holds 91.0% and 32.3% of limited member interests, respectively. As of March 31, 2025 and December 31, 2024, there was an unfunded commitment of $1.7 million for Estrella Landing.
(7)			Solar tax credit investments includes Green Sun Tenant LLC (“Green Sun”), SVA 2021-2 TE Holdco LLC (“Sun Vest”), EG5 CSP1 Holding LLC (“HEP”), and HRE Lessee I, LLC (“Heelstone”), which the Company holds a 99.0% limited member interest in all investments.
(8)			Other investments includes OTR Fund I, LLC (“OTR”) which the Company holds 5.9% of limited member interests. This investment category also includes the carried interest security related to Canapi Ventures Fund I, L.P.

Schedule of Carrying Amount of Company Investments in Non Marketable Equity Securities with No Readily Determinable Fair Value and Amounts Recognized in Earnings

The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis as of March 31, 2025 and as of and for the three months ended March 31, 2025 and 2024 is reflected in the following table:


			As of and for the three month period ended
	Cumulative Adjustments		March 31, 2025		March 31, 2024
Carrying value (1)			$	83,069	$	80,005
Carrying value adjustments:
Impairment	$	—	—		—
Upward changes for observable prices (2)	50,901		—		56
Downward changes for observable prices	(2,169)		—		(369)
Net upward (downward) change	$	48,732	$	—	$	(313)


(1)			Investment unfunded commitments of $5.4 million and $2.3 million as of March 31, 2025 and March 31, 2024, respectively.
(2)			Cumulative adjustments excludes $13.9 million in realized gains for sale of an investment in the second quarter of 2021.

Schedule of Variable Interest Entities

The following table provides a summary of the VIEs that the Company has not consolidated as of March 31, 2025 and December 31, 2024:


March 31, 2025	Carrying Amount		Maximum Exposure to Loss		Liability Recognized		Classification
Solar tax credit investments	$	4,404	$	27,845	$	—	Other assets (1)
Affordable housing	12,665		15,305		—		Other assets (2)
Canapi Funds	17,280		34,021		—		Other assets (3)
Non-marketable and other equity investments	5,331		10,700		—		Other assets (4)


December 31, 2024	Carrying Amount		Maximum Exposure to Loss		Liability Recognized		Classification
Solar tax credit investments	$	5,309	$	38,107	$	—	Other assets (5)
Affordable housing	12,940		15,463		—		Other assets (6)
Canapi Funds	17,104		34,269		—		Other assets (7)
Non-marketable and other equity investments	5,290		9,591		—		Other assets (8)


(1)			Maximum exposure to loss includes $4.4 million of current investments and a scenario in which related tax credits are recaptured, collectively totaling $23.4 million.
(2)			Maximum exposure to loss includes $12.7 million of current investments, $1.7 million in unfunded commitments, and a scenario in which related tax credits are recaptured, collectively totaling $941 thousand.
(3)			Maximum exposure to loss includes $17.3 million of current investments and $16.7 million in unfunded commitments.
(4)			Maximum exposure to loss includes $5.3 million of current investments and $5.4 million in unfunded commitments.
(5)			Maximum exposure to loss includes $5.3 million of current investments and a scenario in which related tax credits are recaptured, collectively totaling $32.8 million.
(6)			Maximum exposure to loss includes $12.9 million of current investments, $1.7 million in unfunded commitments, and a scenario in which related tax credits are recaptured, collectively totaling $824 thousand.
(7)			Maximum exposure to loss includes $17.1 million of current investments and $17.2 million in unfunded commitments.
(8)			Maximum exposure to loss includes $5.3 million of current investments and $4.3 million in unfunded commitments.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details