As of June 30, 2025, the Company had $3.02 billion and $308.7 million in available for sale debt securities and held to maturity debt securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, changes in interest rates, regulatory actions, changes in the business environment or any changes in the competitive marketplace, could have an adverse effect on the Company’s investment portfolio.

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of June 30, 2025 and December 31, 2024 (in thousands):


	June 30, 2025
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	331,283	263	(12,101)	319,445
Government-agency obligations	39,483		1,128	(50)	40,561
Mortgage-backed securities	2,537,641		12,708	(140,824)	2,409,525
Asset-backed securities	44,855		429	(353)	44,931
State and municipal obligations	119,730		467	(10,602)	109,595
Corporate obligations	93,496		4,779	(2,536)	95,739

	$	3,166,488	19,774	(166,466)	3,019,796


	December 31, 2024
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	348,621	317	(18,340)	330,598
Government-agency obligations	105,965		1,461	(191)	107,235
Mortgage-backed securities	2,243,725		4,982	(186,548)	2,062,159
Asset-backed securities	47,203		645	(285)	47,563
State and municipal obligations	126,766		243	(10,092)	116,917
Corporate obligations	103,415		3,958	(2,930)	104,443

	$	2,975,695	11,606	(218,386)	2,768,915

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $10.5 million and $9.7 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The amortized cost and fair value of available for sale debt securities as of June 30, 2025, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	June 30, 2025
	Amortized cost		Fair value
Due in one year or less	$	107,849	106,282
Due after one year through five years	258,931		248,809
Due after five years through ten years	110,734		110,382
Due after ten years	66,995		59,307
	$	544,509	524,780

Investments which pay principal on a periodic basis totaling $2.62 billion at amortized cost and $2.50 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three months ended June 30, 2025, no securities were sold or called from the available for sale debt securities portfolio. For the six months ended June 30, 2025, proceeds from sales on securities in the available for sale debt securities portfolio totaled $1.7 million, with gross gains of $87,000 and no losses recognized. For the three and six months ended June 30, 2024, proceeds from sales on available for sale debt securities portfolio totaled $568.4 million, with no gains and $3.0 million of losses recognized. For the three months ended June 30, 2025 no securities were called from the available for sale debt securities portfolio. For the six months ended June 30, 2025, proceeds from calls on securities in the available for sale debt

securities portfolio totaled $9.6 million with no gains or losses recognized. For the three and six months ended June 30, 2024, there were no proceeds from calls on securities in the available for sale debt securities portfolio.

The number of available for sale debt securities in an unrealized loss position as of June 30, 2025 totaled 504, compared with 646 as of December 31, 2024. The decrease in the number of securities in an unrealized loss position as of June 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024. All securities in an unrealized loss position were investment grade as of June 30, 2025.

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $20,000 and $14,000, as of June 30, 2025 and December 31, 2024, respectively (in thousands):


	June 30, 2025
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

Government-agency obligations	$	8,399	—	(115)	8,284

State and municipal obligations	296,727		32	(10,120)	286,639
Corporate obligations	3,598		—	(63)	3,535
	$	308,724	32	(10,298)	298,458


	December 31, 2024
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

Government-agency obligations	9,999		—	(292)	9,707

State and municipal obligations	311,118		689	(14,133)	297,674
Corporate obligations	6,520		—	(168)	6,352
	$	327,637	689	(14,593)	313,733

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $2.8 million and $2.9 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2025 and 2024. For the three and six months ended June 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $5.2 million and $10.1 million, respectively. For the three and six months ended June 30, 2025 there were no gross gains or gross losses related to these calls on securities. For the three and six months ended June 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $1.2 million and $2.4 million, respectively. As to these calls on securities, for the three months ended June 30, 2024, there were no gross gains or gross losses, while for the six months ended June 30, 2024, there were no gross gains, while gross losses totaled $1,200.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of June 30, 2025 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	June 30, 2025
	Amortized cost		Fair value
Due in one year or less	$	50,292	50,125
Due after one year through five years	158,612		157,107
Due after five years through ten years	83,208		78,181
Due after ten years	16,612		13,045
	$	308,724	298,458

The number of held to maturity debt securities in an unrealized loss position as of June 30, 2025 totaled 420, compared with 512 as of December 31, 2024. The decrease in the number of securities in an unrealized loss position as of June 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of June 30, 2025 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").


	June 30, 2025
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total

Government-agency obligations	$	8,399	—	—	—	—	8,399

State and municipal obligations	45,144		219,904	21,601	—	10,078	296,727
Corporate obligations	—		575	3,023		—	3,598
	$	53,543	220,479	24,624	—	10,078	308,724

	December 31, 2024
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total

Government-agency obligations	9,999		—	—	—	—	9,999

State and municipal obligations	44,821		234,212	28,735	—	3,350	311,118
Corporate obligations	501		2,013	3,981	—	25	6,520
	$	55,321	236,225	32,716	—	3,375	327,637

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. As of June 30, 2025, the held to maturity debt securities portfolio was comprised of 17% rated AAA, 71% rated AA, 8% rated A, and less than 3% either below an A rating or not rated by Moody’s or Standard and Poor’s. Securities not explicitly rated, such as U.S. government issued mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.