v3.25.2
Securities
 6 Months Ended
Jun. 30, 2025
Securities [Abstract]  
Securities
5.
Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of June 30, 2025
                        
U.S. treasury
   $ 104,095     $ 34     $ (3,920 )   $ 100,209  
Federal agency
    
248,330
      
-
      
(21,708
)
    
226,622
  
State & municipal
    
93,556
      
1
      
(5,524
)
    
88,033
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
460,203
      
837
      
(30,288
)
    
430,752
  
U.S. government agency securities
    
112,183
      
373
      
(4,295
)
    
108,261
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
613,607
      
1,210
      
(32,928
)
    
581,889
  
U.S. government agency securities
    
181,822
      
73
      
(24,056
)
    
157,839
  
Corporate
    
38,498
      
-
      
(2,675
)
    
35,823
  
Total AFS securities
  
$
1,852,294
    
$
2,528
    
$
(125,394
)
  
$
1,729,428
  
As of December 31, 2024
                                
U.S. treasury
   $ 108,838     $ 59     $ (6,107 )   $ 102,790  
Federal agency
    
248,348
      
-
      
(29,831
)
    
218,517
  
State & municipal
    
95,457
      
-
      
(7,967
)
    
87,490
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
435,825
      
2
      
(41,528
)
    
394,299
  
U.S. government agency securities
    
76,528
      
9
      
(6,471
)
    
70,066
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
546,685
      
142
      
(42,831
)
    
503,996
  
U.S. government agency securities
    
179,136
      
39
      
(26,683
)
    
152,492
  
Corporate
    
48,482
      
-
      
(3,468
)
    
45,014
  
Total AFS securities
  
$
1,739,299
    
$
251
    
$
(164,886
)
  
$
1,574,664
  

There was no allowance for credit losses on AFS securities as of June 30, 2025 and December 31, 2024.


During the three and six months ended June 30, 2025, there were no gains or losses reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings. During the three months ended June 30, 2024, there were no gains or losses reclassified out of AOCI and into earnings. During the six months ended June 30, 2024, the Company sold a previously written-off security and recognized a gain of $2.3 million into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income.


The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of June 30, 2025
                        
Federal agency
  
$
100,000
    
$
-
    
$
(12,829
)
  
$
87,171
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
198,957
      
-
      
(27,343
)
    
171,614
  
U.S. government agency securities
    
14,105
      
1
      
(51
)
    
14,055
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
158,778
      
88
      
(8,183
)
    
150,683
  
U.S. government agency securities
    
59,142
      
-
      
(10,091
)
    
49,051
  
State & municipal
    
278,682
      
2
      
(15,871
)
    
262,813
  
Total HTM securities
  
$
809,664
    
$
91
    
$
(74,368
)
  
$
735,387
  
As of December 31, 2024
                                
Federal agency
  
$
100,000
    
$
-
    
$
(16,656
)
  
$
83,344
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
208,579
      
-
      
(34,349
)
    
174,230
  
U.S. government agency securities
    
15,611
      
1
      
(516
)
    
15,096
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
168,018
      
-
      
(11,554
)
    
156,464
  
U.S. government agency securities
    
60,906
      
-
      
(11,245
)
    
49,661
  
State & municipal
    
289,807
      
41
      
(18,698
)
    
271,150
  
Total HTM securities
  
$
842,921
    
$
42
    
$
(93,018
)
  
$
749,945
  

At June 30, 2025 and December 31, 2024, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises securities.

The Company recorded no gains from calls on HTM securities for the three and six months ended June 30, 2025 and 2024.

AFS and HTM securities with amortized costs totaling $1.76 billion at June 30, 2025 and $1.60 billion at December 31, 2024, were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at June 30, 2025 and December 31, 2024, AFS and HTM securities with an amortized cost of $219.5 million and $234.2 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following tables set forth information with regard to gains and (losses) on equity securities:

 
Three Months Ended June 30,
  
(In thousands)
  
2025
    
2024
  
Net gains (losses) recognized on equity securities
  
$
112
    
$
(92
)
Less: Net gains (losses) recognized on equity securities sold during the period
    
(35
)
    
-
  
Unrealized gains (losses) recognized on equity securities still held
  
$
147
    
$
(92
)

 
Six Months Ended June 30,
  
(In thousands)
  
2025
    
2024
  
Net gains (losses) recognized on equity securities
  
$
8
    
$
(193
)
Less: Net gains (losses) recognized on equity securities sold during the period
    
(35
)
    
-
  
Unrealized gains (losses) recognized on equity securities still held
  
$
43
    
$
(193
)

As of June 30, 2025 and December 31, 2024, the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of credit concern as of June 30, 2025 and 2024. There were no impairments, or downward or upward adjustments recognized for equity securities without readily determinable fair values during the three and six months ended June 30, 2025 and 2024.

The following table sets forth information with regard to contractual maturities of debt securities at June 30, 2025:

(In thousands)
  
Amortized
Cost
    
Estimated
Fair Value
  
AFS debt securities:
            
Within one year
  
$
90,827
    
$
89,677
  
From one to five years
    
632,475
      
594,417
  
From five to ten years
    
221,923
      
208,864
  
After ten years
    
907,069
      
836,470
  
Total AFS debt securities
  
$
1,852,294
    
$
1,729,428
  
HTM debt securities:
                
Within one year
  
$
92,748
    
$
92,656
  
From one to five years
    
198,559
      
187,673
  
From five to ten years
    
151,189
      
135,999
  
After ten years
    
367,168
      
319,059
  
Total HTM debt securities
  
$
809,664
    
$
735,387
  

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at June 30, 2025 and December 31, 2024.

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities were in a continuous unrealized loss position:

 
Less Than 12 Months
    
12 Months or Longer
    
Total
  
(In thousands)
  
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
  
As of June 30, 2025
                                                      
AFS securities:
  
                                                 
U.S. treasury
   $ -     $ -       -     $ 95,173     $ (3,920 )     5     $ 95,173     $ (3,920 )     5  
Federal agency
    
-
      
-
      
-
      
226,622
      
(21,708
)
    
16
      
226,622
      
(21,708
)
    
16
  
State & municipal
    
-
      
-
      
-
      
87,272
      
(5,524
)
    
65
      
87,272
      
(5,524
)
    
65
  
Mortgage-backed
    
34,785
      
(218
)
    
7
      
350,950
      
(34,365
)
    
146
      
385,735
      
(34,583
)
    
153
  
Collateralized mortgage obligations
    
113,346
      
(489
)
    
13
      
468,427
      
(56,495
)
    
112
      
581,773
      
(56,984
)
    
125
  
Corporate     -       -       -       35,823       (2,675 )     13       35,823       (2,675 )     13  
Total securities with unrealized losses
  
$
148,131
    
$
(707
)
    
20
    
$
1,264,267
    
$
(124,687
)
    
357
    
$
1,412,398
    
$
(125,394
)
    
377
  
HTM securities:
                                                                        
Federal agency
  
$
-
    
$
-
      
-
    
$
87,171
    
$
(12,829
)
    
4
    
$
87,171
    
$
(12,829
)
    
4
  
Mortgage-backed
    
11,031
      
(4
)
    
1
      
174,596
      
(27,390
)
    
33
      
185,627
      
(27,394
)
    
34
  
Collateralized mortgage obligation
     -
       -       -
       193,085
       (18,274 )     49
       193,085
       (18,274 )     49
  
State & municipal
    
10,812
      
(171
)
    
12
      
157,826
      
(15,700
)
    
171
      
168,638
      
(15,871
)
    
183
  
Total securities with unrealized losses
  
$
21,843
    
$
(175
)
    
13
    
$
612,678
    
$
(74,193
)
    
257
    
$
634,521
    
$
(74,368
)
    
270
  
As of December 31, 2024
                                                                        
AFS securities:
                                                                        
U.S. treasury
   $ -     $ -       -     $ 92,737     $ (6,107 )     5     $ 92,737     $ (6,107 )     5  
Federal agency
    
-
      
-
      
-
      
218,517
      
(29,831
)
     16      
218,517
      
(29,831
)
    
16
  
State & municipal
     759       (4 )     1       86,731       (7,963 )     66       87,490       (7,967 )     67  
Mortgage-backed
    
95,153
      
(1,374
)
    
16
      
368,589
      
(46,625
)
    
152
      
463,742
      
(47,999
)
    
168
  
Collateralized mortgage obligations
    
98,494
      
(1,128
)
    
14
      
480,891
      
(68,386
)
     116
      
579,385
      
(69,514
)
    
130
  
Corporate
     1,478       (9 )     1       43,536       (3,459 )     14       45,014       (3,468 )     15  
Total securities with unrealized losses
  
$
195,884
    
$
(2,515
)
    
32
    
$
1,291,001
    
$
(162,371
)
    
369
    
$
1,486,885
    
$
(164,886
)
    
401
  
HTM securities:
                                                                        
Federal agency
   $ -     $ -       -     $ 83,344     $ (16,656 )     4     $ 83,344     $ (16,656 )     4  
Mortgage-backed     -       -       -       189,271       (34,865 )     34       189,271       (34,865 )     34  
Collateralized mortgage obligations     7,147       (7 )     1       198,978       (22,792 )     52       206,125       (22,799 )     53  
State & municipal
    
9,458
      
(107
)
    
12
      
168,945
      
(18,591
)
     186      
178,403
      
(18,698
)
    
198
  
Total securities with unrealized losses
  
$
16,605
    
$
(114
)
    
13
    
$
640,538
    
$
(92,904
)
     276    
$
657,143
    
$
(93,018
)
    
289
  

The Company does not believe the AFS securities that were in an unrealized loss position as of June 30, 2025 and December 31, 2024, which consisted of 377 and 401 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of June 30, 2025 and December 31, 2024, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $5.1 million and $4.4 million at June 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

None of the Bank’s HTM debt securities were past due or on nonaccrual status as of June 30, 2025 and December 31, 2024. There was no accrued interest reversed against interest income for the three and six months ended June 30, 2025 or the year ended December 31, 2024 as all securities remained in accrual status. In addition, there were no collateral-dependent HTM debt securities as of June 30, 2025 and December 31, 2024. There was no allowance for credit losses on HTM securities as of June 30, 2025 and December 31, 2024. As of June 30, 2025 and December 31, 2024, 66% of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises with bond ratings of A to AAA. These securities carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of June 30, 2025 and December 31, 2024. The remaining HTM debt securities at June 30, 2025 and December 31, 2024 were comprised of state and municipal obligations with bond ratings of A to AAA excluding the $89.1 million and $84.7 million, respectively, of local municipal bonds which are not rated. Based on the Company’s current expected credit losses (“CECL”) methodology, the expected credit loss on the HTM municipal bond portfolio was deemed immaterial, therefore no allowance for credit loss was recorded as of June 30, 2025 and December 31, 2024. AIR on HTM debt securities totaled $4.4 million at June 30, 2025 and December 31, 2024 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.