Investment Securities

6 Months Ended

Jun. 30, 2026

Investment Securities

Investment Securities

Note 4 Investment Securities

The Company’s investment securities portfolio is comprised of available-for-sale and held-to-maturity investment securities. These investment securities totaled $1.4 billion at June 30, 2026 and included $0.6 billion of available-for-sale securities and $0.8 billion of held-to-maturity securities. During 2026, the Company acquired available-for-sale securities with a fair value of $145.5 million related to the acquisition of Vista. At December 31, 2025, investment securities totaled $1.2 billion and included $0.5 billion of available-for-sale securities and $0.7 billion of held-to-maturity securities.

Available-for-sale

Available-for-sale securities are summarized as follows as of the dates indicated:


		June 30, 2026
		Amortized			Gross			Gross
		cost			unrealized gains			unrealized losses			Fair value
U.S. Treasury securities		$	53,576		$	110		$	(11)		$	53,675
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			219,693			140			(18,698)			201,135
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			376,163			112			(45,803)			330,472
Other securities			251			—			—			251
Total investment securities available-for-sale		$	649,683		$	362		$	(64,512)		$	585,533


		December 31, 2025
		Amortized			Gross			Gross
		cost			unrealized gains			unrealized losses			Fair value
U.S. Treasury securities		$	73,144		$	1,082		$	—		$	74,226
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			173,308			1,248			(16,891)			157,665
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			338,768			563			(43,305)			296,026
Other securities			722			—			—			722
Total investment securities available-for-sale		$	585,942		$	2,893		$	(60,196)		$	528,639

During the six months ended June 30, 2026 and 2025, purchases of available-for-sale securities totaled $154.3 million and $160.5 million, respectively. Maturities and paydowns of available-for-sale securities during the six months ended June 30, 2026 and 2025 totaled $61.8 million and $74.6 million, respectively. During the six months ended June 30, 2026, the Company sold $176.4 million of available for sale securities, primarily related to securities acquired in the Vista acquisition. There were no sales of available-for-sale securities during the six months ended June 30, 2025.

At June 30, 2026 and December 31, 2025, the Company’s available-for-sale investment portfolio was primarily comprised of U.S. Treasury securities and mortgage-backed securities. All mortgage-backed securities were backed by GSE collateral such as FHLMC and FNMA and the government-owned agency GNMA.

The tables below summarize the available-for-sale securities with unrealized losses, along with the length of time they have been in an unrealized loss position, as of the dates shown:


		June 30, 2026
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
U.S. Treasury securities		$	4,928		$	(11)		$	—		$	—		$	4,928		$	(11)
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			83,187			(1,344)			90,965			(17,354)			174,152			(18,698)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			85,258			(973)			218,377			(44,830)			303,635			(45,803)
Total		$	173,373		$	(2,328)		$	309,342		$	(62,184)		$	482,715		$	(64,512)


		December 31, 2025
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises		$	—		$	—		$	96,937		$	(16,891)		$	96,937		$	(16,891)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			2,546			(5)			232,742			(43,300)			235,288			(43,305)
Total		$	2,546		$	(5)		$	329,679		$	(60,191)		$	332,225		$	(60,196)

Management regularly monitors the investment securities portfolio in its entirety and further evaluates all of the available-for-sale securities in an unrealized loss position at each reporting period. The portfolio included 90 securities which were in an unrealized loss position at June 30, 2026, compared to 84 securities at December 31, 2025. The unrealized losses in the Company’s investment portfolio at June 30, 2026 were caused by changes in interest rates. The Company has no intention of selling these securities and believes it will not be required to sell the securities before the recovery of their amortized cost. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk.

Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The fair value of available-for-sale investment securities pledged as collateral totaled $206.1 million and $102.4 million at June 30, 2026 and at December 31, 2025, respectively. The Company may also pledge available-for-sale investment securities as collateral for FHLB advances. No securities were pledged for this purpose at June 30, 2026 or December 31, 2025.

A summary of the available-for-sale securities by maturity is shown in the following table as of June 30, 2026. Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments and are therefore not included in the table below. The Company holds other available-for-sale securities with an amortized cost and fair value of $0.3 million as of June 30, 2026 that have no stated contractual maturity date.


		June 30, 2026
								Weighted
		Amortized cost			Fair value			average yield
U.S. Treasury securities
Within one year		$	29,921		$	29,969		4.23%
After one but within five years			23,655			23,706		4.30%
Total		$	53,576		$	53,675

As of June 30, 2026 and December 31, 2025, AIR from available-for-sale investment securities totaled $1.7 million and $1.9 million, respectively, and was included within other assets in the consolidated statements of financial condition.

Held-to-maturity

Held-to-maturity investment securities are summarized as follows as of the dates indicated:


		June 30, 2026
					Gross			Gross
		Amortized			unrealized			unrealized
		cost			gains			losses			Fair value
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			236,687			90			(24,442)			212,335
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			521,536			271			(37,417)			484,390
Total investment securities held-to-maturity		$	758,223		$	361		$	(61,859)		$	696,725


		December 31, 2025
					Gross			Gross
		Amortized			unrealized			unrealized
		cost			gains			losses			Fair value
U.S. Treasury securities		$	24,900		$	—		$	(49)		$	24,851
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			236,535			666			(23,227)			213,974
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			390,297			2,310			(33,983)			358,624
Total investment securities held-to-maturity		$	651,732		$	2,976		$	(57,259)		$	597,449

During the six months ended June 30, 2026 and 2025, purchases of held-to-maturity securities totaled $202.2 million and $260.3 million, respectively. Maturities and paydowns of held-to-maturity securities totaled $96.9 million and $76.7 million during the six months ended June 30, 2026 and 2025, respectively.

The held-to-maturity portfolio included 130 securities which were in an unrealized loss position as of June 30, 2026, compared to 92 securities at December 31, 2025. The tables below summarize the held-to-maturity securities with unrealized losses, along with the length of time they have been in an unrealized loss position, as of the dates shown:


		June 30, 2026
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			39,556			(380)			152,564			(24,062)			192,120			(24,442)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			252,108			(2,923)			134,688			(34,494)			386,796			(37,417)
Total		$	291,664		$	(3,303)		$	287,252		$	(58,556)		$	578,916		$	(61,859)


		December 31, 2025
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
U.S. Treasury securities		$	—		$	—		$	24,850		$	(49)		$	24,850		$	(49)
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			1,174			(1)			169,340			(23,226)			170,514			(23,227)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			—			—			144,208			(33,983)			144,208			(33,983)
Total		$	1,174		$	(1)		$	338,398		$	(57,258)		$	339,572		$	(57,259)

The Company does not measure expected credit losses on a financial asset, or group of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or GSEs, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell any held-to-maturity securities and believes it will not be required to sell any held-to-maturity securities before the recovery of their amortized cost.

The table below summarizes the credit quality indicators, by amortized cost, of held-to-maturity securities as of the dates shown:


		June 30, 2026			December 31, 2025
		AA+			AA+
U.S. Treasury securities		$	—		$	24,900
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			236,687			236,535
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			521,536			390,297
Total investment securities held-to-maturity		$	758,223		$	651,732

Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The carrying value of held-to-maturity investment securities pledged as collateral totaled $589.6 million and $604.0 million at June 30, 2026 and December 31, 2025, respectively. The Company may also pledge held-to-maturity investment securities as collateral for FHLB advances. No held-to-maturity investment securities were pledged for this purpose at June 30, 2026 or December 31, 2025.

Actual maturities of mortgage-backed securities may differ from scheduled maturities depending on the repayment characteristics and experience of the underlying financial instruments and are not disclosed.

As of June 30, 2026 and December 31, 2025, AIR from held-to-maturity investment securities totaled $2.1 million and $1.4 million, respectively, and was included within other assets in the consolidated statements of financial condition.