v3.26.1
Investment Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities.
There were no investment securities classified as trading at June 30, 2026 or December 31, 2025.
(a) Investment Securities by Classification, Type and Maturity
The following tables present the amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized and unrecognized gains and losses including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI, at the dates indicated:
June 30, 2026
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities$13,471 $— $(1,648)$11,823 
Municipal securities72,534 13 (8,157)64,390 
Residential CMO and MBS(1)
522,334 1,419 (27,575)496,178 
Commercial CMO and MBS(1)
376,378 174 (12,839)363,713 
Corporate obligations16,490 142 (209)16,423 
Other asset-backed securities18,918 60 (68)18,910 
Total$1,020,125 $1,808 $(50,496)$971,437 
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
June 30, 2026
Amortized
Cost		Gross
Unrecognized
Gains		Gross
Unrecognized
Losses		Fair
Value
(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities$151,363 $— $(21,944)$129,419 
Residential CMO and MBS(1)
207,387 — (11,522)195,865 
Commercial CMO and MBS(1)
303,089 13 (20,604)282,498 
Total$661,839 $13 $(54,070)$607,782 
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
December 31, 2025
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities$13,276 $— $(1,574)$11,702 
Municipal securities59,355 22 (7,954)51,423 
Residential CMO and MBS(1)
297,010 1,298 (23,040)275,268 
Commercial CMO and MBS(1)
260,953 917 (9,706)252,164 
Corporate obligations10,500 72 (40)10,532 
Other asset-backed securities6,411 30 (8)6,433 
Total$647,505 $2,339 $(42,322)$607,522 
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
December 31, 2025
Amortized
Cost		Gross
Unrecognized
Gains		Gross
Unrecognized
Losses		Fair
Value
(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities$151,319 $— $(20,870)$130,449 
Residential CMO and MBS(1)
217,707 303 (8,923)209,087 
Commercial CMO and MBS(1)
305,081 22 (19,352)285,751 
Total$674,107 $325 $(49,145)$625,287 
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
The following table presents the amortized cost and fair value of investment securities by contractual maturity at the date indicated. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
June 30, 2026
Securities Available for SaleSecurities Held to Maturity
Amortized CostFair ValueAmortized CostFair Value
(Dollars in thousands)
Due in one year or less$1,060 $1,060 $— $— 
Due after one year through five years13,504 13,046 23,344 20,708 
Due after five years through ten years49,853 45,957 113,019 96,911 
Due after ten years38,078 32,573 15,000 11,800 
Total investment securities due at a single maturity date102,495 92,636 151,363 129,419 
MBS and Other asset-backed securities(1)
917,630 878,801 510,476 478,363 
Total investment securities$1,020,125 $971,437 $661,839 $607,782 
(1) MBS and Other asset-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their payment speed.
There were no holdings of investment securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity at June 30, 2026 or December 31, 2025.
(b) Unrealized Losses on Investment Securities Available for Sale
The following tables present the gross unrealized losses and fair value of the Company’s investment securities available for sale for which an ACL on investment securities available for sale has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at the dates indicated:
June 30, 2026
Less than 12 Months12 Months or LongerTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
(Dollars in thousands)
U.S. government and agency securities(1)
$195 $— $11,628 $(1,648)$11,823 $(1,648)
Municipal securities14,973 (244)43,576 (7,913)58,549 (8,157)
Residential CMO and MBS(2)
233,062 (3,637)154,714 (23,938)387,776 (27,575)
Commercial CMO and MBS(2)
205,454 (2,792)110,261 (10,047)315,715 (12,839)
Corporate obligations3,478 (22)3,813 (187)7,291 (209)
Other asset-backed securities11,674 (68)— — 11,674 (68)
Total$468,836 $(6,763)$323,992 $(43,733)$792,828 $(50,496)
(1) The unrealized loss on U.S. Government securities in a continuous unrealized loss position less than 12 months was less than one thousand dollars.
(2) U.S. government agency and government-sponsored enterprise CMO and MBS.
December 31, 2025
Less than 12 Months12 Months or LongerTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
(Dollars in thousands)
U.S. government and agency securities$— $— $11,702 $(1,574)$11,702 $(1,574)
Municipal securities(1)
1,241 — 45,785 (7,954)47,026 (7,954)
Residential CMO and MBS(2)
2,330 (9)169,621 (23,031)171,951 (23,040)
Commercial CMO and MBS(2)
6,881 (7)152,683 (9,699)159,564 (9,706)
Corporate obligations— — 3,960 (40)3,960 (40)
Other asset-backed securities1,397 (8)— — 1,397 (8)
Total$11,849 $(24)$383,751 $(42,298)$395,600 $(42,322)
(1) The unrealized loss on municipal securities in a continuous unrealized loss position less than 12 months was less than one thousand dollars.
(2) U.S. government agency and government-sponsored enterprise CMO and MBS.
(c) ACL on Investment Securities
The Company evaluated investment securities available for sale as of June 30, 2026 and December 31, 2025, and determined that any declines in fair value were attributable to changes in interest rates relative to where these investments fall within the yield curve and individual characteristics. Management monitors published credit ratings for adverse changes for all rated investment securities and none of these securities had a below investment grade credit rating as of either June 30, 2026 or December 31, 2025. In addition, the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of the amortized cost basis, which may be upon maturity. Therefore, no ACL on investment securities available for sale was recorded as of June 30, 2026 or December 31, 2025.
The Company also evaluated investment securities held to maturity for current expected credit losses as of June 30, 2026 or December 31, 2025. There were no investment securities held to maturity classified as nonaccrual or past due as of June 30, 2026 and December 31, 2025, and all were issued by the U.S. government and its agencies and either explicitly or implicitly guaranteed by the U.S. government, highly rated by major credit rating agencies and had a long history of no credit losses. Accordingly, the Company did not measure expected credit losses on investment securities held to maturity since the historical credit loss information adjusted for current conditions and reasonable and supportable forecast results in an expectation that nonpayment of the amortized cost basis is zero. Therefore, no ACL on investment securities held to maturity was recorded as of June 30, 2026 or December 31, 2025.
(d) Realized Gains and Losses
The following table presents the gross realized gains and losses on the sale of investment securities available for sale determined using the specific identification method for the dates indicated:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(Dollars in thousands)
Gross realized gains$— $— $— $— 
Gross realized losses(217)(6,854)(217)(10,741)
Net realized losses$(217)$(6,854)$(217)$(10,741)
(e) Pledged Securities
The following table summarizes the amortized cost and fair value of investment securities that were pledged as collateral for the following obligations at the dates indicated:
June 30, 2026December 31, 2025
Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
(Dollars in thousands)
State and local governments public deposits$218,715 $208,192 $224,069 $216,012 
FRB389,195 349,614 395,364 358,480 
Other securities pledged76,719 72,392 55,291 51,349 
Total$684,629 $630,198 $674,724 $625,841 
(f) Accrued Interest Receivable
Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $3.5 million and $2.2 million at June 30, 2026 and December 31, 2025, respectively. Accrued interest receivable excluded from the amortized cost on investment securities held to maturity totaled $2.1 million and $2.2 million at June 30, 2026 and December 31, 2025, respectively.
No amounts of accrued interest receivable on investment securities available for sale or held to maturity were reversed against interest income on investment securities during the six months ended June 30, 2026 and 2025.