Investments (Tables)

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Estimated Fair Value and Unrealized Gains (Losses)

The amortized cost, estimated fair value and unrealized gains (losses) are reflected in the following table:


March 31, 2026	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government agencies	$	20,274	$	18	$	38	$	20,254
Mortgage-backed securities	1,473,438		6,378		68,596		1,411,220
Municipal bonds	3,145		—		81		3,064

Total	$	1,496,857	$	6,396	$	68,715	$	1,434,538


December 31, 2025	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government agencies	$	13,603	$	27	$	13	$	13,617
Mortgage-backed securities	1,469,440		8,327		67,088		1,410,679
Municipal bonds	3,151		—		46		3,105

Total	$	1,486,194	$	8,354	$	67,147	$	1,427,401

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, 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

Schedule of Investment Securities by Maturity

The following is a summary of investment securities by maturity:


	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

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, 2026 and December 31, 2025 is reflected in the following table:


	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.

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 for the three months ended March 31, 2026 and 2025 is reflected in the following table:


	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	$	—	$	—


(1)			Investment unfunded commitments of $6.0 million and $5.4 million as of March 31, 2026, and March 31, 2025, respectively.
(2)			The equity securities portfolio has recognized cumulative adjustments of $59.3 million over the life of the equity security portfolio as of March 31, 2026.

Schedule of Variable Interest Entities

The following table provides a summary of the VIEs that the Company has not consolidated as of March 31, 2026 and December 31, 2025:


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.

- 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.

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