As of June 30, 2026, the Company had $3.29 billion and $266.2 million in available for sale debt securities and held to maturity debt securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, changes in interest rates, regulatory actions, changes in the business environment or any changes in the competitive marketplace, could have an adverse effect on the Company’s investment portfolio.


	June 30, 2026
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	200,584	52	(6,401)	194,235
Government-agency obligations	28,324		581	(211)	28,694
Mortgage-backed securities	2,927,054		8,155	(130,178)	2,805,031
Asset-backed securities	35,165		454	(211)	35,408
State and municipal obligations	118,970		784	(7,370)	112,384
Corporate obligations	107,131		4,943	(1,370)	110,704

	$	3,417,228	14,969	(145,741)	3,286,456


	December 31, 2025
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

U.S. Treasury obligations	$	274,500	190	(7,946)	266,744
Government-agency obligations	32,693		877	(31)	33,539
Mortgage-backed securities	2,705,346		23,454	(116,453)	2,612,347
Asset-backed securities	41,619		409	(267)	41,761
State and municipal obligations	119,173		1,249	(7,423)	112,999
Corporate obligations	93,498		5,429	(1,561)	97,366

	$	3,266,829	31,608	(133,681)	3,164,756

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $11.7 million and $10.9 million as of June 30, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The amortized cost and fair value of available for sale debt securities as of June 30, 2026, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	June 30, 2026
	Amortized cost		Fair value
Due in one year or less	$	105,564	104,664
Due after one year through five years	123,518		118,109
Due after five years through ten years	131,955		133,665
Due after ten years	65,648		60,885
Securities without a contractual maturity (1)	2,990,543		2,869,133
	$	3,417,228	3,286,456

(1) Residential mortgage-backed securities, other asset-backed securities and government-agency obligations are not included in the maturity categories as actual maturities may differ from contractual maturities because the underlying loans may be called or prepaid without penalties.

For the three and six months ended June 30, 2026, proceeds from sales on securities in the available for sale debt securities portfolio totaled $23.9 million, with no gross gains and $806,000 of losses recognized, while proceeds from calls on securities totaled $5.4 million with gross gains of $494,000 and no gross losses recognized. For the three months ended June 30, 2025, no securities were sold or called from the available for sale debt securities portfolio. For the six months ended June 30, 2025, proceeds from sales on securities from the available for sale debt portfolio totaled $1.7 million with gross gains of $87,000 and

The following table shows gross unrealized losses and estimated fair value of available for sale debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026
	Less Than 12 months			12 Months or More		Total
	Fair value		Unrealized Losses	Fair value	Unrealized Losses	Fair value	Unrealized Losses
Available-for-sale:
U.S. Treasury obligations	$	—	—	172,950	(6,401)	172,950	(6,401)
Government-agency obligations	7,544		(204)	2,119	(7)	9,663	(211)
Mortgage-backed securities	1,018,248		(11,787)	932,078	(118,391)	1,950,326	(130,178)
Asset-backed securities	10,042		(44)	5,649	(167)	15,690	(211)
State and municipal obligations	13,249		(191)	65,318	(7,179)	78,567	(7,370)
Corporate obligations	21,735		(265)	19,140	(1,104)	40,875	(1,370)
Total	$	1,070,818	(12,491)	1,197,254	(133,250)	2,268,072	(145,741)


	December 31, 2025
	Less Than 12 months			12 Months or More		Total
	Fair value		Unrealized Losses	Fair value	Unrealized Losses	Fair value	Unrealized Losses
Available-for-sale:
U.S. Treasury obligations	$	—	—	245,675	(7,946)	245,675	(7,946)
Government-agency obligations	8,541		(31)	—	—	8,541	(31)
Mortgage-backed securities	133,316		(4,119)	984,261	(112,334)	1,117,577	(116,453)
Asset-backed securities	20,493		(129)	1,605	(138)	22,098	(267)
State and municipal obligations	21,613		(665)	53,173	(6,758)	74,786	(7,423)
Corporate obligations	8,994		(6)	18,742	(1,555)	27,736	(1,561)
Total	$	192,957	(4,949)	1,303,456	(128,732)	1,496,412	(133,681)

The number of available for sale debt securities in an unrealized loss position as of June 30, 2026 totaled 540, compared with 406 as of December 31, 2025. The increase in the number of securities in an unrealized loss position as of June 30, 2026, was mainly due to higher current market interest rates compared to rates as of December 31, 2025. All securities in an unrealized loss position were investment grade as of June 30, 2026.

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $22,000 and $16,000, as of June 30, 2026 and December 31, 2025, respectively (in thousands):


	June 30, 2026
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

Government-agency obligations	$	1,000	—	(4)	996

State and municipal obligations	264,676		113	(7,072)	257,717
Corporate obligations	570		—	(2)	568
	$	266,246	113	(7,078)	259,281


	December 31, 2025
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value

Government-agency obligations	$	3,400	—	(22)	3,378

State and municipal obligations	276,600		156	(7,045)	269,711
Corporate obligations	2,143		—	(14)	2,129
	$	282,143	156	(7,081)	275,218

Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $2.7 million and $2.6 million as of June 30, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2026, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $1.6 million and $4.4 million, respectively. As to these calls on securities, for the three and six months ended June 30, 2026, there were gross gains of $3,000 and no gross losses related to these calls on securities. For the three and six months ended June 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $5.2 million and $10.1 million, respectively. As to these calls on securities, for the three months ended June 30, 2025, there were no gross gains or gross losses, while for the six months ended June 30, 2025, there were no gross gains, while gross losses totaled $1,200.

The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of June 30, 2026 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

The amortized cost and fair value of held to maturity debt securities as of June 30, 2026 by contractual maturity, excluding allowances for credit losses of $22,000 as of June 30, 2026 are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	June 30, 2026
	Amortized cost		Fair value
Due in one year or less	$	48,979	48,937
Due after one year through five years	148,654		147,682
Due after five years through ten years	65,531		60,175
Due after ten years	3,082		2,487
	$	266,246	259,281

The number of held to maturity debt securities in an unrealized loss position as of June 30, 2026 totaled 185, compared with 221 as of December 31, 2025. The decrease in the number of securities in an unrealized loss position as of June 30, 2026, was mainly due to a decline in the number of securities held in the held to maturity portfolio as of June 30, 2026, compared with December 31, 2025.

Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types:

All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of June 30, 2026 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's").


	June 30, 2026
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total

Government-agency obligations	$	1,000	—	—	—	—	1,000

State and municipal obligations	43,936		187,330	16,913	—	16,497	264,676
Corporate obligations	—		570	—	—	—	570
	$	44,936	187,900	16,913	—	16,497	266,246

	December 31, 2025
Total Portfolio	AAA		AA	A	BBB	Not Rated	Total

Government-agency obligations	$	3,400	—	—	—	—	3,400

State and municipal obligations	44,930		199,977	20,896	—	10,797	276,600
Corporate obligations	—		573	1,570	—	—	2,143
	$	48,330	200,550	22,466	—	10,797	282,143

Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. As of June 30, 2026, the held to maturity debt securities portfolio was comprised of 17% rated AAA, 71% rated AA, 6% rated A, and less than 6% either below an A rating or not rated by Moody’s or Standard and Poor’s.

The following table shows gross unrealized losses and estimated fair value of held to maturity debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026
	Less Than 12 months			12 Months or More		Total
	Fair value		Unrealized Losses	Fair value	Unrealized Losses	Fair value	Unrealized Losses
Held-to-maturity:
Government-agency obligations	$	—	—	996	(4)	996	(4)

State and municipal obligations	31,337		(72)	82,586	(7,000)	113,923	(7,072)
Corporate obligations	—		—	568	(2)	568	(2)
Total	$	31,337	(72)	84,150	(7,006)	115,487	(7,078)


	December 31, 2025
	Less Than 12 months			12 Months or More		Total
	Fair value		Unrealized Losses	Fair value	Unrealized Losses	Fair value	Unrealized Losses
Held-to-maturity:
Government-agency obligations	$	—	—	3,388	(22)	3,388	(22)

State and municipal obligations	3,353		(1)	127,012	(7,044)	130,365	(7,045)
Corporate obligations	—		—	2,129	(14)	2,129	(14)
Total	$	3,353	(1)	132,529	(7,080)	135,882	(7,081)