




		June 30, 2026
(In thousands)		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Available for sale:
Traditional securities:
Government sponsored entities ("GSE") certificates & Collateralized mortgage obligations ("CMOs")		$	725,173		$	2,457		$	(21,627)		$	706,003
Non-GSE certificates & CMOs	458,967			598			(11,408)			448,157
Asset-Backed Securities ("ABS")		793,598			731			(10,136)			784,193
Corporate		88,068			75			(2,198)			85,945
Other		10,674			—			(440)			10,234
		2,076,480			3,861			(45,809)			2,034,532
PACE assessments:
Residential PACE assessments		207,432			—			(1,130)			206,302







Total available for sale		$	2,283,912		$	3,861		$	(46,939)		$	2,240,834

		Amortized Cost			Gross Unrecognized Gains			Gross Unrecognized Losses			Fair Value
Held-to-maturity:
Traditional securities
GSE certificates & CMOs		$	181,708		$	905		$	(14,462)		$	168,151
Non-GSE certificates & CMOs		66,930			1			(3,791)			63,140
ABS		126,409			16			(4,790)			121,635
Municipal		63,419			285			(8,276)			55,428
Corporate		3,000			—			(62)			2,938
		441,466			1,207			(31,381)			411,292
PACE assessments:
Commercial PACE assessments		365,470			—			(31,797)			333,673
Residential PACE assessments		765,398			—			(73,281)			692,117



		1,130,868			—			(105,078)			1,025,790

Total held-to-maturity		$	1,572,334		$	1,207		$	(136,459)		$	1,437,082

Allowance for credit losses		(787)

Total held-to-maturity, net of allowance for credit losses		$	1,571,547


	December 31, 2025
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
Traditional securities:
GSE residential CMOs	$	580,446	$	5,258	$	(18,634)	$	567,070
Non-GSE certificates & CMOs	281,787		1,523		(10,078)		273,232
ABS	638,635		1,005		(10,472)		629,168
Corporate	100,000		117		(4,613)		95,504
Other	15,190		37		(152)		15,075
	1,616,058		7,940		(43,949)		1,580,049
PACE assessments:
Residential PACE assessments	200,003		3,499		—		203,502






Total available for sale	$	1,816,061	$	11,439	$	(43,949)	$	1,783,551

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Held-to-maturity:
Traditional securities:
GSE certificates & CMOs	$	184,690	$	1,178	$	(13,611)	$	172,257
Non-GSE certificates & CMOs	69,198		1		(3,331)		65,868
ABS	156,020		9		(4,167)		151,862
Municipal	64,083		229		(7,891)		56,421
Corporate	3,000		6		—		3,006
	476,991		1,423		(29,000)		449,414
PACE assessments:
Commercial PACE assessments	327,735		—		(28,865)		298,870
Residential PACE assessments	750,033		—		(58,345)		691,688

	1,077,768		—		(87,210)		990,558

Total held-to-maturity	$	1,554,759	$	1,423	$	(116,210)	$	1,439,972

Allowance for credit losses	(744)

Total held-to-maturity, net of allowance for credit losses	$	1,554,015

The following table summarizes the amortized cost and fair value of debt securities available for sale and held-to-maturity, exclusive of mortgage-backed securities, by their contractual maturity as of June 30, 2026. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty:






	Available for Sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
(In thousands)
Due within one year	$	15,006	$	14,842	$	11,750	$	11,511
Due after one year through five years	35,112		34,516		9,633		8,711
Due after five years through ten years	168,655		167,212		97,325		92,569
Due after ten years	880,999		870,104		1,204,988		1,093,000
	$	1,099,772	$	1,086,674	$	1,323,696	$	1,205,791


	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
(In thousands)
Proceeds	$	89,022	$	40,017	$	135,180	$	56,136

Realized gains	$	267	$	—	$	475	$	—
Realized losses	(306)		(1,014)		(1,336)		(1,694)
Net realized losses	$	(39)	$	(1,014)	$	(861)	$	(1,694)

Tax benefit	$	10	$	271	$	223	$	461

The Company controls and monitors inherent credit risk in its securities portfolio through due diligence, diversification, concentration limits, periodic securities reviews, and by investing in low risk securities. This includes high quality Non-Agency Securities, low loan-to-value ("LTV") PACE assessments and a significant portion of the securities portfolio in GSE obligations. GSEs include the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) and the Small Business Administration (“SBA”). GNMA is a wholly owned U.S. Government corporation whereas FHLMC and FNMA are private. Mortgage-related securities may include mortgage pass-through certificates, participation certificates and CMOs. At June 30, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.

The following summarizes the fair value and unrealized losses for available for sale securities as of June 30, 2026 and December 31, 2025, respectively, segregated between securities that have been in an unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer at the respective dates:


	June 30, 2026
	Less Than Twelve Months				Twelve Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale:
Traditional securities:
GSE certificates & CMOs	$	326,432	$	3,774	$	118,343	$	17,853	$	444,775	$	21,627
Non-GSE certificates & CMOs	245,471		1,673		106,065		9,735		351,536		11,408
ABS	315,123		1,202		85,164		8,934		400,287		10,136
Corporate	19,884		186		60,986		2,012		80,870		2,198
Other	10,234		440		—		—		10,234		440
PACE assessments:
Residential PACE assessments	206,302		1,130		—		—		206,302		1,130






Total available for sale	$	1,123,446	$	8,405	$	370,558	$	38,534	$	1,494,004	$	46,939


	December 31, 2025
	Less Than Twelve Months				Twelve Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale:
Traditional securities:
GSE certificates & CMOs	$	57,671	$	342	$	138,879	$	18,292	$	196,550	$	18,634
Non-GSE certificates & CMOs	5,893		20		118,250		10,058		124,143		10,078
ABS	284,508		1,095		105,027		9,377		389,535		10,472
Corporate	—		—		75,386		4,613		75,386		4,613
Other	7,848		152		—		—		7,848		152








Total available for sale	$	355,920	$	1,609	$	437,542	$	42,340	$	793,462	$	43,949

As of June 30, 2026, none of the Company’s available-for-sale debt securities were in an unrealized loss position due to credit quality and therefore no allowance for credit losses on available-for-sale debt securities was required. The temporary impairment of fixed income securities is primarily attributable to changes in overall market interest rates and/or changes in credit/liquidity spreads since the investments were acquired. In general, as market interest rates rise and/or credit/liquidity spreads widen, the fair value of fixed rate securities will decrease, as market interest rates fall and/or credit spreads tighten, the fair value of fixed rate securities will increase.

With respect to the Company’s security investments that are temporarily impaired as of June 30, 2026, management does not intend to sell these investments and does not believe it will be necessary to do so before anticipated recovery. If either criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. The Company expects to collect all amounts due according to the contractual terms of these investments. Therefore, the Company does not hold an allowance for credit losses for available for sale securities at June 30, 2026.

Management conducts an evaluation of expected credit losses on held-to-maturity securities on a collective basis by security type. Management monitors the credit quality of debt securities held-to-maturity through reasonable and supportable forecasts, reviews of credit trends on underlying assets, credit ratings, and other factors. Holdings of securities issued by GSEs with unrealized

With the exception of PACE assessments, which are generally not rated, our traditional securities were rated investment grade by at least one nationally recognized statistical rating organization with only $7.0 million rated below investment grade. All issues were current as to their interest payments. We have had insignificant losses on PACE assessments that we have invested in and are not aware of any significant losses in the PACE bonds sector given the low loan-to-value position and the superior lien position on the property. Management considers that the temporary impairment of these investments as of June 30, 2026 is primarily due to an increase in interest rates and spreads since the time these investments were acquired.

Accrued interest receivable on securities totaling $39.6 million and $41.6 million at June 30, 2026 and December 31, 2025, respectively, was included in the consolidated balance sheet and excluded from the amortized cost and estimated fair value totals in the table above.


(In thousands)	Non-GSE commercial certificates		Commercial PACE		Residential PACE		Total
Allowance for credit losses:
Beginning balance	$	40	$	335	$	374	$	749
Provision for (recovery of) credit losses	(2)		31		9		38
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	38	$	366	$	383	$	787


(In thousands)	Non-GSE commercial certificates		Commercial PACE		Residential PACE		Total
Allowance for credit losses:
Beginning balance	$	47	$	271	$	383	$	701
Provision for (recovery of) credit losses	—		7		(4)		3
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	47	$	278	$	379	$	704


(In thousands)	Non-GSE commercial certificates		Commercial PACE		Residential PACE		Total
Allowance for credit losses:
Beginning balance	$	41	$	328	$	375	$	744
Provision for (recovery of) credit losses	(3)		38		8		43
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	38	$	366	$	383	$	787


(In thousands)	Non-GSE commercial certificates		Commercial PACE		Residential PACE		Total
Allowance for credit losses:
Beginning balance	$	49	$	268	$	387	$	704
Provision for (recovery of) credit losses	(2)		10		(8)		—
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	47	$	278	$	379	$	704