v3.26.1
Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities AFS and HTM at June 30, 2026 and December 31, 2025 are as follows (in thousands):
Amortized
Cost 		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Allowance for Securities Credit Losses
At June 30, 2026
Debt securities AFS:
U.S. government and agency obligations$54,631 $— $(2,544)$52,087 $— 
State and municipal debt obligations135,335 6,937 — 142,272 — 
Corporate debt securities144,760 952 (158)145,554 — 
Asset-backed securities461,052 103 (157)460,998 — 
MBS:
Agency residential1,179,978 1,005 (12,322)1,168,661 — 
Agency commercial107,545 — (9,449)98,096 — 
Total mortgage-backed securities1,287,523 1,005 (21,771)1,266,757 — 
Total excluding fair value hedge basis adjustment2,083,301 8,997 (24,630)2,067,668 — 
Fair value hedge basis adjustment (1)
(12,223)— 12,223 — — 
Total debt securities AFS
$2,071,078 $8,997 $(12,407)$2,067,668 $— 
Debt securities HTM:
State and municipal debt obligations$150,074 $622 $(7,155)$143,541 $(20)
Corporate debt securities46,007 227 (398)45,836 (631)
Mortgage-backed securities:
Agency residential2,520,815 3,134 (49,788)2,474,161 — 
Agency commercial144,905 275 (6,227)138,953 — 
Non-agency commercial1,058 — (83)975 (12)
Total mortgage-backed securities2,666,778 3,409 (56,098)2,614,089 (12)
Total debt securities HTM
$2,862,859 $4,258 $(63,651)$2,803,466 $(663)
Total debt securities$4,933,937 $13,255 $(76,058)$4,871,134 $(663)
At December 31, 2025
Debt securities AFS:
U.S. government and agency obligations$54,607 $— $(2,666)$51,941 $— 
State, municipal and sovereign debt obligations75,776 7,359 — 83,135 — 
Corporate debt securities27,947 575 (298)28,224 — 
Asset-backed securities114,595 60 (161)114,494 — 
Mortgage-backed securities:
Agency residential857,079 1,773 (3,830)855,022 — 
Agency commercial 108,070 2 (9,061)99,011 — 
Total mortgage-backed securities965,149 1,775 (12,891)954,033 — 
Total excluding fair value hedge basis adjustment1,238,074 9,769 (16,016)1,231,827 — 
Fair value hedge basis adjustment (1)
(4,038)— 4,038 — — 
Total debt securities AFS
$1,234,036 $9,769 $(11,978)$1,231,827 $— 
Debt securities HTM:
State and municipal debt obligations$165,267 $434 $(8,518)$157,183 $(22)
Corporate debt securities48,986 251 (692)48,545 (772)
Mortgage-backed securities:
Agency residential589,078 1,788 (44,521)546,345 — 
Agency commercial77,517 8 (5,256)72,269 — 
Non-agency commercial1,531 — (83)1,448 (17)
Total mortgage-backed securities668,126 1,796 (49,860)620,062 (17)
Total debt securities HTM
$882,379 $2,481 $(59,070)$825,790 $(811)
Total debt securities$2,116,415 $12,250 $(71,048)$2,057,617 $(811)
(1)Refer to Note 9, Derivatives and Hedging Activities for additional information.
The following table presents the activity in the allowance for credit losses for debt securities HTM for the three and six months ended June 30, 2026 and 2025 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Allowance for securities credit losses
Beginning balance$(754)$(898)$(811)$(967)
Benefit for credit losses91 89 148 158 
Total ending allowance balance$(663)$(809)$(663)$(809)
The Company monitors the credit quality of debt securities HTM on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. Credit ratings of BBB- or Baa3 or higher are considered investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities HTM at June 30, 2026, aggregated by credit quality indicator, are as follows (in thousands):
Investment GradeNon-Investment Grade/Non-ratedTotal
As of June 30, 2026
State and municipal debt obligations$150,074 $— $150,074 
Corporate debt securities32,601 13,406 46,007 
Non-agency commercial MBS
1,058 — 1,058 
Total debt securities held-to-maturity$183,733 $13,406 $197,139 
There were no realized gains/losses on sale of debt securities AFS for the three and six months ended June 30, 2026, as compared to $56,000 realized losses for both the corresponding prior year periods. These realized gains/losses on debt securities are presented within Other and included within Total other income on the Consolidated Statements of Income.
The amortized cost and estimated fair value of debt securities at June 30, 2026 by contractual maturity are shown below (in thousands):
June 30, 2026
Amortized
Cost (1)
Estimated
Fair Value
Less than one year$64,385 $63,625 
Due after one year through five years108,490 104,690 
Due after five years through ten years215,288 215,267 
Due after ten years603,696 606,706 
$991,859 $990,288 
(1)The amortized cost of AFS securities excludes the portfolio layer fair value hedge basis adjustments of $12.2 million at June 30, 2026.
Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2026, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost, excluding the fair value hedge basis adjustments, of $190.2 million, $166.4 million, and $461.1 million, respectively, and an estimated fair value of $190.8 million, $173.4 million, and $461.0 million, respectively, were callable prior to the maturity date. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments.
The estimated fair value and unrealized losses for debt securities AFS and HTM at June 30, 2026 and December 31, 2025, segregated by the duration of the unrealized losses, are as follows (in thousands):
Less than 12 months12 months or longerTotal
Estimated
Fair
Value
Unrealized
Losses (1)
Estimated
Fair
Value
Unrealized
Losses (1)
Estimated
Fair
Value
Unrealized
Losses (1)
At June 30, 2026
Debt securities AFS:
U.S. government and agency obligations$— $— $52,087 $(2,544)$52,087 $(2,544)
Corporate debt securities48,005 (150)993 (8)48,998 (158)
Asset-backed securities243,820 (157)— — 243,820 (157)
MBS:
Agency residential730,312 (12,322)— — 730,312 (12,322)
Agency commercial485 (3)97,611 (9,446)98,096 (9,449)
Total MBS
730,797 (12,325)97,611 (9,446)828,408 (21,771)
Total debt securities AFS
1,022,622 (12,632)150,691 (11,998)1,173,313 (24,630)
Debt securities HTM:
State and municipal debt obligations4,911 (59)125,489 (7,096)130,400 (7,155)
Corporate debt securities992 (1)15,768 (397)16,760 (398)
MBS:
Agency residential1,089,549 (3,555)348,410 (46,233)1,437,959 (49,788)
Agency commercial34,016 (116)66,317 (6,111)100,333 (6,227)
Non-agency commercial— — 975 (83)975 (83)
Total MBS
1,123,565 (3,671)415,702 (52,427)1,539,267 (56,098)
Total debt securities HTM
1,129,468 (3,731)556,959 (59,920)1,686,427 (63,651)
Total debt securities$2,152,090 $(16,363)$707,650 $(71,918)$2,859,740 $(88,281)
At December 31, 2025
Debt securities AFS:
U.S. government and agency obligations$— $— $51,941 $(2,666)$51,941 $(2,666)
Corporate debt securities4,712 (97)3,798 (201)8,510 (298)
Asset-backed securities68,805 (161)— — 68,805 (161)
MBS:
Agency residential498,047 (3,771)21,547 (59)519,594 (3,830)
Agency commercial— — 98,518 (9,061)98,518 (9,061)
Total MBS
498,047 (3,771)120,065 (9,120)618,112 (12,891)
Total debt securities AFS
571,564 (4,029)175,804 (11,987)747,368 (16,016)
Debt securities HTM:
State and municipal debt obligations245 — 138,624 (8,518)138,869 (8,518)
Corporate debt securities4,458 (241)14,295 (451)18,753 (692)
MBS:
Agency residential23,548 (72)425,748 (44,449)449,296 (44,521)
Agency commercial— — 71,509 (5,256)71,509 (5,256)
Non-agency commercial459 (1)989 (82)1,448 (83)
Total MBS
24,007 (73)498,246 (49,787)522,253 (49,860)
Total debt securities HTM
28,710 (314)651,165 (58,756)679,875 (59,070)
Total debt securities$600,274 $(4,343)$826,969 $(70,743)$1,427,243 $(75,086)
(1)The unrealized losses of AFS securities excludes the portfolio layer fair value hedge basis adjustments of $12.2 million and $4.0 million at June 30, 2026 and December 31, 2025, respectively.
The Company concluded that no debt securities were impaired at June 30, 2026 based on consideration of several factors. As of June 30, 2026, the Company had one non-performing investment of $20.6 million acquired from Flushing, for which full recovery is expected. Except for this investment, the Company noted that each issuer made all contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.
Equity Investments
At June 30, 2026 and December 31, 2025, the Company held equity investments of $76.0 million and $91.9 million, respectively. The equity investments are primarily comprised of investments in other financial institutions and funds, and select financial services institutions’ preferred stocks.
The realized and unrealized gains or losses on equity securities for the three and six months ended June 30, 2026 and 2025 are shown in the table below (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Net (loss) gain on equity investments$(347)$488 $(701)$693 
Less: Net loss recognized on equity investments sold(455)— (455)— 
Unrealized gains (losses) recognized on equity investments still held$108 $488 $(246)$693