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, 2026	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	9,788	$	23	$	2,971	$	15	$	12,759	$	38
Mortgage-backed securities	332,876		2,733		641,838		65,863		974,714		68,596
Municipal bonds	707		5		2,357		76		3,064		81

Total	$	343,371	$	2,761	$	647,166	$	65,954	$	990,537	$	68,715


	Less Than 12 Months				12 Months or More				Total
December 31, 2025	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	—	$	—	$	2,970	$	13	$	2,970	$	13
Mortgage-backed securities	120,039		613		709,710		66,475		829,749		67,088
Municipal bonds	3,022		34		83		12		3,105		46
Total	$	123,061	$	647	$	712,763	$	66,500	$	835,824	$	67,147

At March 31, 2026, there were 340 mortgage-backed securities, one U.S. government agency and two municipal bonds in unrealized loss positions for greater than 12 months. There were 55 mortgage-backed securities, two U.S. government agencies and one municipal bond in unrealized loss positions for less than 12 months. Unrealized losses at December 31, 2025 were comprised of 357 mortgage-backed securities, one U.S. government agency and one municipal bond in unrealized loss positions for greater than 12 months. There were 18 mortgage-backed securities and two municipal bonds in unrealized loss positions for less than 12 months.

These unrealized losses are primarily the result of non-credit-related volatility in the market and market interest rates. Since none of the unrealized losses relate to the issuers' ability to honor redemption obligations, and the Company does not intend to sell the related securities and does not believe it is more likely than not that it will be required to sell the securities before recovery of amortized cost, none of the losses have been recognized in the Company’s Unaudited Condensed Consolidated Statements of Income.


	March 31, 2026
	Available-for-Sale
	Amortized Cost		Fair Value
U.S. government agencies

One to five years	$	3,463	$	3,450
Five to ten years	16,811		16,804
Total	20,274		20,254
Mortgage-backed securities
Within one year	35,542		35,304
One to five years	232,369		225,174
Five to ten years	170,883		159,877
After 10 years	1,034,644		990,865
Total	1,473,438		1,411,220
Municipal bonds
Five to ten years	3,050		2,981
After 10 years	95		83
Total	3,145		3,064





Total	$	1,496,857	$	1,434,538

At March 31, 2026, investment securities with a fair value of $540.0 million and amortized cost of $583.5 million were pledged to support unused borrowing capacity. At December 31, 2025, investment securities with a fair value of $565.8 million and amortized cost of $610.1 million were pledged to support unused borrowing capacity.

Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under either the equity method or equity security accounting and are included in other assets in the accompanying Unaudited Condensed Consolidated Balance Sheets. The below tables provide additional information related to investments accounted for under these two methods.


	March 31, 2026				December 31, 2025
	Amount		Ownership %		Amount		Ownership %
Canapi Ventures SBIC Fund, LP (1) (5)	$	11,126	2.9	%	$	11,250	2.9	%
Canapi Ventures Fund, LP (2) (5)	1,356		1.5		1,374		1.5
Canapi Ventures Fund II, LP (3) (5)	3,479		1.6		3,558		1.6
Canapi Ventures SBIC Fund II, LP (4) (5)	2,570		2.9		2,625		2.9
Affordable housing (6)	13,216		Various		13,457		Various
Solar tax credit investments (7)	3,550		99.0		4,203		99.0
Other (8)	105		Various		231		Various
Total	$	35,402			$	36,698


(1)			Investment unfunded commitments of $4.8 million as of March 31, 2026 and December 31, 2025.
(2)			Investment unfunded commitments of $472 thousand as of March 31, 2026 and December 31, 2025.
(3)			Investment unfunded commitments of $3.6 million as of March 31, 2026 and December 31, 2025.
(4)			Investment unfunded commitments of $4.9 million as of March 31, 2026 and December 31, 2025.
(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.
(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.


	As of and for the three month period ended
	March 31, 2026		March 31, 2025
Carrying value (1)	$	79,861	$	83,069
Carrying value adjustments:
Impairment	—		—
Upward changes for observable prices (2)	—		—
Downward changes for observable prices	—		—
Net upward (downward) change	$	—	$	—

For the three months ended March 31, 2026, the Company did not recognize any unrealized gains on equity securities held at the reporting date. For the three months ended March 31, 2025, the Company recognized unrealized gains on all equity securities held at the reporting date of $8 thousand.

Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in the fair value of an entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE.

The Company has equity interests in several limited liability companies that own and operate solar renewable energy projects which are accounted for as equity method investments. Over the course of the investments, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized.

The Company has an equity investment in a limited liability company LIHTC that qualifies as an affordable housing project, managed by an unrelated general partner. The Company accounts for the investment under the proportional amortization method. Under this method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense. The Company also has equity interests in two limited liability companies that invest in the acquisition, rehabilitation, or new construction of local qualified housing projects which are accounted for as equity method investments.

The Company’s limited partnership investments in the Canapi Funds focus on providing venture capital to new and emerging financial technology companies. After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down.

The Company also has limited interests in several non-marketable funds, including Small Business Investment Company (“SBIC”), venture capital funds, and a reciprocal deposit network, all of which are accounted for as equity security investments. For fund investments, after the initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down. While the partnership agreements allow the Company to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. All investments are generally non-redeemable and distributions are expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreement.

The above investments meet the criteria of a VIE, however, the Company is not the primary beneficiary of the entities, as it does not have the power to direct the activities that most significantly impact the economic performance of the entities. The Company’s investment in the unconsolidated VIEs are carried in other assets on the Unaudited Condensed Consolidated Balance Sheets.

The Company’s maximum exposure to loss from unconsolidated VIEs includes the investment recorded on the Company’s Unaudited Condensed Consolidated Balance Sheets and unfunded commitment. For solar tax credit investments, the balance sheet figures are net of any impairment recognized, and includes previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes the potential for loss from these investments is remote, the maximum exposure for solar tax credit investments was determined by assuming a scenario where related tax credits were recaptured.


March 31, 2026	Investment Carrying Amount		Maximum Exposure to Loss		Liability Recognized		Classification
Solar tax credit investments	$	3,550	$	17,634	$	—	Other assets (1)
Affordable housing	13,216		14,158		—		Other assets (2)
Canapi Funds	18,636		32,455		—		Other assets (3)
Non-marketable and other equity investments	4,580		10,619		—		Other assets (4)


December 31, 2025	Investment Carrying Amount		Maximum Exposure to Loss		Liability Recognized		Classification
Solar tax credit investments	$	4,203	$	27,644	$	—	Other assets (5)
Affordable housing	13,457		14,399		—		Other assets (6)
Canapi Funds	19,039		32,858		—		Other assets (7)
Non-marketable and other equity investments	4,872		10,976		—		Other assets (8)


(1)			Maximum exposure to loss includes $3.6 million of current investments and a scenario in which related tax credits are recaptured, collectively totaling $14.0 million.
(2)			Maximum exposure to loss includes $13.2 million of current investments and a scenario in which $941 thousand in related tax credits are recaptured.
(3)			Maximum exposure to loss includes $18.6 million of current investments and $13.8 million in unfunded commitments.
(4)			Maximum exposure to loss includes $4.6 million of current investments and $6.0 million in unfunded commitments.
(5)			Maximum exposure to loss includes $4.2 million of current investments and a scenario in which related tax credits are recaptured, collectively totaling $23.4 million.
(6)			Maximum exposure to loss includes $13.5 million of current investments and a scenario in which $941 thousand in related tax credits are recaptured.
(7)			Maximum exposure to loss includes $19.0 million of current investments and $13.8 million in unfunded commitments.
(8)			Maximum exposure to loss includes $4.9 million of current investments and $6.1 million in unfunded commitments.