v3.25.2
Securities
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
Securities available for sale (“AFS”) consist of the following:
Amortized
Cost		Unrealized
GainsLossesFair Value
(In thousands)
June 30, 2025
U.S. agency$9,143 $1 $497 $8,647 
U.S. agency residential mortgage-backed79,773 74 8,051 71,796 
U.S. agency commercial mortgage-backed12,183 — 1,017 11,166 
Private label mortgage-backed47,903 262 3,236 44,929 
Other asset backed34,610 13 706 33,917 
Obligations of states and political subdivisions326,567 — 49,821 276,746 
Corporate63,934 — 2,601 61,333 
Trust preferred988 — 11 977 
Total$575,101 $350 $65,940 $509,511 
   
December 31, 2024   
U.S. agency$8,858 $1 $700 $8,159 
U.S. agency residential mortgage-backed80,589 47 9,499 71,137 
U.S. agency commercial mortgage-backed12,821 — 1,180 11,641 
Private label mortgage-backed74,268 263 4,496 70,035 
Other asset backed39,232 18 734 38,516 
Obligations of states and political subdivisions330,874 14 42,097 288,791 
Corporate73,960 — 4,039 69,921 
Trust preferred986 — 4 982 
Total$621,588 $343 $62,749 $559,182 
Securities held to maturity (“HTM”) consist of the following:
Carrying
Value		Transferred
Unrealized
Loss (1)		ACLAmortized
Cost		UnrealizedFair Value
GainsLosses
(In thousands)
June 30, 2025
U.S. agency$23,283 $1,309 $— $24,592 $— $4,260 $20,332 
U.S. agency residential mortgage-backed96,758 8,165 — 104,923 — 22,399 82,524 
U.S. agency commercial mortgage-backed3,957 87 — 4,044 — 337 3,707 
Private label mortgage-backed7,324 133 1 7,458 — 407 7,051 
Obligations of states and political subdivisions152,433 4,466 17 156,916 11 19,781 137,146 
Corporate44,591 343 111 45,045 — 3,147 41,898 
Trust preferred956 40 4 1,000 — — 1,000 
Total$329,302 $14,543 $133 $343,978 $11 $50,331 $293,658 
December 31, 2024
U.S. agency$24,150 $1,404 $— $25,554 $— $4,987 $20,567 
U.S. agency residential mortgage-backed100,700 8,669 — 109,369 — 24,631 84,738 
U.S. agency commercial mortgage-backed4,013 107 — 4,120 — 402 3,718 
Private label mortgage-backed7,350 190 1 7,541 — 551 6,990 
Obligations of states and political subdivisions156,305 5,262 17 161,584 28 19,461 142,151 
Corporate45,964 496 111 46,571 — 3,875 42,696 
Trust preferred954 43 3 1,000 — — 1,000 
Total$339,436 $16,171 $132 $355,739 $28 $53,907 $301,860 
(1)Represents the remaining unrealized loss to be accreted on securities that were transferred from AFS to HTM on April 1, 2022.
Our investments' gross unrealized losses and fair values for securities AFS aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:
Less Than Twelve MonthsTwelve Months or MoreTotal
Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
(In thousands)
June 30, 2025
U.S. agency$1,271 $3 $7,245 $494 $8,516 $497 
U.S. agency residential mortgage-backed7,252 17 51,017 8,034 58,269 8,051 
U.S. agency commercial mortgage-backed— — 11,166 1,017 11,166 1,017 
Private label mortgage-backed— — 43,557 3,236 43,557 3,236 
Other asset backed5,063 55 24,557 651 29,620 706 
Obligations of states and political subdivisions327 13 276,417 49,808 276,744 49,821 
Corporate1,492 5 59,841 2,596 61,333 2,601 
Trust preferred— — 978 11 978 11 
Total$15,405 $93 $474,778 $65,847 $490,183 $65,940 
December 31, 2024
U.S. agency$324 $1 $7,565 $699 $7,889 $700 
U.S. agency residential mortgage-backed147 — 61,219 9,499 61,366 9,499 
U.S. agency commercial mortgage-backed— — 11,641 1,180 11,641 1,180 
Private label mortgage-backed2,551 8 66,411 4,488 68,962 4,496 
Other asset backed3,984 19 27,052 715 31,036 734 
Obligations of states and political subdivisions221 1 288,570 42,096 288,791 42,097 
Corporate1,473 23 68,448 4,016 69,921 4,039 
Trust preferred— — 982 4 982 4 
Total$8,700 $52 $531,888 $62,697 $540,588 $62,749 
Securities AFS in unrealized loss positions are evaluated quarterly for impairment related to credit losses. For securities AFS in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities AFS that do not meet this criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, adverse conditions specifically related to the security and the issuer and the impact of changes in market interest rates on the market value of the security, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an ACL is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss), net of applicable taxes. No ACL for securities AFS was needed at June 30, 2025 and December 31, 2024. Accrued interest receivable on securities AFS totaled $3.7 million and $3.9 million at June 30, 2025 and December 31, 2024, respectively,
and is excluded from the estimate of credit losses and is included in accrued income and other assets in the interim Condensed Consolidated Statements of Financial Condition.
U.S. agency, U.S. agency residential mortgage-backed and U.S. agency commercial mortgage-backed securities — at June 30, 2025, we had 30 U.S. agency, 94 U.S. agency residential mortgage-backed and 10 U.S. agency commercial mortgage-backed securities whose fair value is less than amortized cost. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. The unrealized losses are largely attributed to widening spreads to Treasury bonds and/or an increase in interest rates since acquisition.
Private label mortgage backed, other asset backed and corporate securities — at June 30, 2025, we had 55 private label mortgage backed, 43 other asset backed, and 66 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and/or an increase in interest rates since acquisition.
Obligations of states and political subdivisions — at June 30, 2025, we had 304 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to an increase in interest rates since acquisition.
Trust preferred securities — at June 30, 2025, we had one trust preferred security whose fair value is less than amortized cost. This trust preferred security is a single issue security issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening. This security is rated by a major rating agency as investment grade.
At June 30, 2025 management does not intend to liquidate any of the securities discussed above and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses.
We recorded no credit related charges in our interim Condensed Consolidated Statements of Operations related to securities AFS during the three and six month periods ended June 30, 2025 and 2024, respectively.
The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of securities HTM to present the net amount expected to be collected. Securities HTM are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in our interim Condensed Consolidated Statements of Operations in provision for credit losses. We measure expected credit losses on securities HTM on a collective basis by major security type with each type sharing similar risk characteristics, and consider historical credit loss information. Accrued interest receivable on securities HTM totaled $1.7 million and $1.7 million at June 30, 2025 and December 31, 2024, respectively and is excluded from the estimate of credit losses and is included in accrued income and other assets in the interim Condensed Consolidated Statements of Financial Condition. With regard to U.S. Government-sponsored agency and mortgage-backed securities (residential and commercial), all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to obligations of states and political subdivisions, private label-mortgage-backed, corporate and trust preferred securities HTM, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. During the first quarter of 2023, one corporate security (Signature Bank) defaulted resulting in a full charge-off. Subsequent to this security's charge-off, a portion of its fair value had recovered and was subsequently sold during the first quarter of 2024 for $1.1 million during which period we recorded that amount as a recovery to the ACL. Despite this lone security loss, the long-term historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. Furthermore, as of June 30, 2025 and December 31, 2024, there were no past due principal and interest payments associated with these securities. At those same dates an allowance for credit losses of $133,000 and $132,000, respectively was recorded on non U.S. agency securities HTM based on applying the long-term historical credit loss rate, as published by credit rating agencies, for similarly rated securities.
On a quarterly basis, we monitor the credit quality of securities HTM through the use of credit ratings. The carrying value of securities HTM aggregated by credit quality follow:
Private
Label
Mortgage-
Backed		Obligations
of States
and Political
Subdivisions		CorporateTrust
Preferred		Carrying
Value
Total
(In thousands)
June 30, 2025
Credit rating:
AAA$7,324 $17,802 $— $— $25,126 
AA— 118,000 — — 118,000 
A— 1,961 5,001 — 6,962 
BBB— 444 34,655 — 35,099 
BB
— — 1,972 — 1,972 
Non-rated— 14,226 2,963 956 18,145 
Total$7,324 $152,433 $44,591 $956 $205,304 
December 31, 2024
Credit rating:
AAA$7,350 $34,973 $— $— $42,323 
AA— 101,112 — — 101,112 
A— 3,473 5,005 — 8,478 
BBB— 652 36,045 — 36,697 
BB— — 1,963 — 1,963 
Non-rated— 16,095 2,951 954 20,000 
Total$7,350 $156,305 $45,964 $954 $210,573 
An analysis of the allowance for credit losses by security HTM type for the three months ended June 30 follows:
Private
Label
Mortgage-
Backed		Obligations
of States
and Political
Subdivisions		CorporateTrust
Preferred		Total
(In thousands)
2025
Balance at beginning of period$1 $17 $108 $3 $129 
Additions (deductions)   
Provision for credit losses— — 3 1 4 
Recoveries credited to the allowance— — — — — 
Securities HTM charged against the allowance— — — — — 
Balance at end of period$1 $17 $111 $4 $133 
2024
Balance at beginning of period$4 $31 $116 $4 $155 
Additions (deductions)
Provision for credit losses— — — — — 
Recoveries credited to the allowance— — — — — 
Securities HTM charged against the allowance— — — — — 
Balance at end of period$4 $31 $116 $4 $155 
An analysis of the allowance for credit losses by security HTM type for the six months ended June 30 follows:
Private
Label
Mortgage-
Backed		Obligations
of States
and Political
Subdivisions		CorporateTrust
Preferred		Total
(In thousands)
2025
Balance at beginning of period$1 $17 $111 $3 $132 
Additions (deductions)
Provision for credit losses— — — 1 1 
Recoveries credited to the allowance— — — — — 
Securities HTM charged against the allowance— — — — — 
Balance at end of period$1 $17 $111 $4 $133 
2024
Balance at beginning of period$4 $33 $116 $4 $157 
Additions (deductions)
Provision for credit losses— (2)(1,125)— (1,127)
Recoveries credited to the allowance— — 1,125 — 1,125 
Securities HTM charged against the allowance— — — — — 
Balance at end of period$4 $31 $116 $4 $155 

The amortized cost and fair value of securities AFS and securities HTM at June 30, 2025, by contractual maturity, follow:
Securities AFSSecurities HTM
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
(In thousands)
Maturing within one year$28,517 $28,207 $11,362 $11,237 
Maturing after one year but within five years135,008 126,926 51,215 48,268 
Maturing after five years but within ten years35,330 31,802 93,772 83,408 
Maturing after ten years201,777 160,768 71,204 57,463 
400,632 347,703 227,553 200,376 
U.S. agency residential mortgage-backed79,773 71,796 104,923 82,524 
U.S. agency commercial mortgage-backed12,183 11,166 4,044 3,707 
Private label mortgage-backed47,903 44,929 7,458 7,051 
Other asset backed34,610 33,917 — — 
Total$575,101 $509,511 $343,978 $293,658 
The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
Gains and losses realized on the sale of securities AFS are determined using the specific identification method and are recognized on a trade-date basis. A summary of proceeds from the sale of securities AFS and gains and losses for the six month periods ending June 30, follows:
Realized
ProceedsGainsLosses
(In thousands)
2025$26,356 $37 $356 
202437,273 14 283 
During the second quarter of 2024 we acquired certain securities classified as equity securities at fair value consisting of Visa Inc. Class C common stock. These securities were all sold during the second and third quarters of 2024. During both the three and six months ended June 30, 2024, we recognized gains on these equity securities of $2.7 million, that are included in net gains on equity securities at fair value in the interim Condensed Consolidated Statements of Operations. We had no equity securities at fair value during the same periods in 2025. See note #13.