

	June 30, 2026
	Amortized Cost		Gross Unrealized				Carrying Value
			Gains		Losses
Investment securities available for sale:
U.S. Treasury securities	$	318,809	$	183	$	(11,315)	$	307,677
U.S. Government agency and sponsored enterprise residential MBS	2,227,612		14,691		(12,928)		2,229,375
U.S. Government agency and sponsored enterprise commercial MBS	796,610		623		(46,533)		750,700
Private label residential MBS and CMOs	2,727,024		1,393		(202,253)		2,526,164
Private label commercial MBS	2,380,423		4,858		(20,921)		2,364,360
Single family real estate-backed securities	184,725		—		(1,930)		182,795
Collateralized loan obligations	773,119		203		(1,266)		772,056
Non-mortgage asset-backed securities	57,483		—		(985)		56,498
State and municipal obligations	74,326		166		(4,789)		69,703
SBA securities	54,008		32		(1,506)		52,534

	$	9,594,139	$	22,149	$	(304,426)	$	9,311,862


Marketable equity securities							5,752
							$	9,317,614



	December 31, 2025
	Amortized Cost		Gross Unrealized				Carrying Value
			Gains		Losses
Investment securities available for sale:
U.S. Treasury securities	$	275,966	$	530	$	(7,843)	$	268,653
U.S. Government agency and sponsored enterprise residential MBS	2,562,702		16,003		(15,678)		2,563,027
U.S. Government agency and sponsored enterprise commercial MBS	576,295		975		(42,907)		534,363
Private label residential MBS and CMOs	2,683,881		2,505		(195,558)		2,490,828
Private label commercial MBS	2,182,983		5,018		(19,891)		2,168,110
Single family real estate-backed securities	227,711		158		(1,977)		225,892
Collateralized loan obligations	780,847		1,315		(1,218)		780,944
Non-mortgage asset-backed securities	59,942		—		(1,177)		58,765
State and municipal obligations	115,193		192		(5,865)		109,520
SBA securities	59,526		26		(1,737)		57,815

	$	9,525,046	$	26,722	$	(293,851)	$	9,257,917


Marketable equity securities							5,734
							$	9,263,651


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Gross realized gains on investment securities AFS	$	1,031	$	731	$	4,643	$	1,593
Gross realized losses on investment securities AFS	(217)		(118)		(430)		(155)
Net realized gain	814		613		4,213		1,438

Net gain (loss) on marketable equity securities recognized in earnings	127		(266)		18		(147)

Gain on investment securities, net	$	941	$	347	$	4,231	$	1,291

The following tables present the aggregate fair value and the aggregate amount by which amortized cost exceeded fair value for investment securities available for sale in unrealized loss positions aggregated by investment category and length of time that individual securities had been in continuous unrealized loss positions at the dates indicated (in thousands):


	June 30, 2026

	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	170,101	$	(3,908)	$	67,520	$	(7,407)	$	237,621	$	(11,315)
U.S. Government agency and sponsored enterprise residential MBS	252,831		(2,302)		445,933		(10,626)		698,764		(12,928)
U.S. Government agency and sponsored enterprise commercial MBS	289,921		(3,351)		346,875		(43,182)		636,796		(46,533)

Private label residential MBS and CMOs	535,506		(3,309)		1,771,680		(198,944)		2,307,186		(202,253)
Private label commercial MBS	203,597		(1,128)		232,470		(19,793)		436,067		(20,921)
Single family real estate-backed securities	19,968		(19)		137,882		(1,911)		157,850		(1,930)
Collateralized loan obligations	461,288		(710)		64,648		(556)		525,936		(1,266)
Non-mortgage asset-backed securities	44,120		(351)		12,378		(634)		56,498		(985)
State and municipal obligations	4,492		(131)		47,598		(4,658)		52,090		(4,789)
SBA securities	—		—		46,918		(1,506)		46,918		(1,506)

	$	1,981,824	$	(15,209)	$	3,173,902	$	(289,217)	$	5,155,726	$	(304,426)


	December 31, 2025
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	125,467	$	(825)	$	97,812	$	(7,018)	$	223,279	$	(7,843)
U.S. Government agency and sponsored enterprise residential MBS	128,974		(471)		637,536		(15,207)		766,510		(15,678)
U.S. Government agency and sponsored enterprise commercial MBS	36,046		(140)		384,952		(42,767)		420,998		(42,907)

Private label residential MBS and CMOs	83,348		(101)		1,897,018		(195,457)		1,980,366		(195,558)
Private label commercial MBS	134,630		(134)		424,672		(19,757)		559,302		(19,891)
Single family real estate-backed securities	—		—		151,818		(1,977)		151,818		(1,977)
Collateralized loan obligations	37,511		(305)		60,791		(913)		98,302		(1,218)
Non-mortgage asset-backed securities	44,173		(298)		14,592		(879)		58,765		(1,177)
State and municipal obligations	12,125		(189)		47,255		(5,676)		59,380		(5,865)
SBA securities	—		—		54,222		(1,737)		54,222		(1,737)

	$	602,274	$	(2,463)	$	3,770,668	$	(291,388)	$	4,372,942	$	(293,851)

The Company monitors its investment securities available for sale for credit loss impairment on an individual security basis. No securities were determined to be credit loss impaired during the three and six months ended June 30, 2026 and 2025. At June 30, 2026, the Company did not have an intent to sell securities that were in significant unrealized loss positions, and it was not more likely than not that the Company would be required to sell these securities before recovery of the amortized cost basis, which may be at maturity. In making this determination, the Company considered its current and projected liquidity position including its ability to pledge securities to generate liquidity, its investment policy as to permissible holdings and concentration limits, regulatory requirements and other relevant factors.

At June 30, 2026, 369 securities available for sale were in unrealized loss positions. The amount of unrealized losses related to 105 of these securities was considered insignificant both individually and in the aggregate, totaling approximately $0.9 million. No further analysis with respect to these securities was considered necessary. The basis for concluding that AFS securities were not credit loss impaired and no ACL was considered necessary at June 30, 2026, is further discussed below.

Unrealized losses were primarily attributable to a sustained higher interest rate environment and in some cases, wider spreads compared to levels at which securities were purchased. The investment securities AFS portfolio was in a net unrealized loss position of $282.3 million at June 30, 2026, compared to $267.1 million at December 31, 2025, increasing by $15.2 million during the six months ended June 30, 2026. While the majority of securities in the portfolio were floating rate at June 30, 2026, fixed rate securities accounted for the majority of unrealized losses.

At June 30, 2026, 12 U.S. treasury, 44 U.S. Government agency and sponsored enterprise residential MBS, 27 U.S. Government agency and sponsored enterprise commercial MBS and 14 SBA securities were in unrealized loss positions. The timely payment of principal and interest on these securities is explicitly or implicitly guaranteed by the U.S. Government. As such, there is an assumption of zero credit loss, and the Company expects to recover the amortized cost basis of these securities.

None of the impaired private label securities had missed principal or interest payments or had been downgraded by a NRSRO at June 30, 2026. The Company performed an analysis comparing the present value of cash flows expected to be collected to the amortized cost basis of impaired securities. This analysis was based on a scenario that we believe to be generally more conservative than our reasonable and supportable economic forecast at June 30, 2026, and incorporated assumptions about voluntary prepayment rates, collateral defaults, delinquencies, severity and other relevant factors as described further below. Our analysis also considered the structural characteristics of each security and the level of credit enhancement provided by that structure.

At June 30, 2026, 129 private label residential MBS and CMOs were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, voluntary prepayment rates, loss severity, delinquencies and recovery lag. In developing those assumptions, we took into account collateral quality measures such as FICO, LTV, documentation, loan type, property type, agency availability criteria and performing status. We also regularly monitor sector data including home price appreciation, forbearance, delinquency, special servicing and prepay trends as well as other economic data that could be indicative of stress in the sector. Underlying delinquencies in this sector remain low. Our June 30, 2026 analysis projected weighted average collateral losses for impaired securities in this category of 3.3% compared to weighted average credit support of 19.2%. As of June 30, 2026, 86% of impaired securities in this category, based on carrying value, were externally rated AAA, 3% were rated AA, 9% were rated A and one security was not externally rated.

At June 30, 2026, 17 private label commercial MBS were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, voluntary prepayment rates, loss severity, delinquencies and recovery lag. In developing those assumptions, we took into account collateral quality and type, loan size, loan purpose and other qualitative factors. We also regularly monitor collateral concentrations, collateral watch lists, bankruptcy data, defeasance data, special servicing trends, delinquency and other economic data that could be indicative of stress in the sector. We consider collateral, deal, sector and tranche level performance as well as maturity and refinance risk. While we have observed some deterioration in collateral performance in this segment, particularly in the office sector, the high credit quality of these securities and adequacy of subordination to cover projected collateral losses supports the conclusion that there is no credit loss impairment. Our June 30, 2026 analysis projected weighted average collateral losses for impaired securities in this category of 7.8% compared to weighted average credit support of 39.3%. As of June 30, 2026, 78% of impaired securities in this category, based on carrying value, were externally rated AAA, 2% were rated AA and 20% were rated A. There was no single-asset, single-borrower exposure.

At June 30, 2026, five single family real estate-backed securities were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, delinquencies and recovery lag. We regularly monitor sector data including home price appreciation, forbearance, delinquency and prepay trends as well as other economic data that could be indicative of stress in the sector. We consider collateral, deal, sector and tranche level performance as well as maturity and refinance risk. Our June 30, 2026 analysis projected weighted average collateral losses for this category of 6.2% compared to weighted average credit support of 60.6%. As of June 30, 2026, 54% of impaired securities in this category, based on carrying value, were externally rated AAA and 46% were rated AA.

At June 30, 2026, eight collateralized loan obligations were in unrealized loss positions. Unrealized losses totaled less than 1% of total amortized cost of this segment at June 30, 2026. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, and delinquencies, calibrated to take into account idiosyncratic risks associated with the underlying collateral. In developing those assumptions, we took into account each sector’s performance pre-, during and post the 2008 financial crisis. We regularly engage with bond managers to monitor trends in underlying collateral including potential downgrades and subsequent cash flow diversions, liquidity, ratings migration, and any other relevant developments. The high credit quality of these securities and adequacy of subordination to cover projected collateral losses supports the conclusion that there is no credit loss impairment. Our June 30, 2026 analysis projected weighted average collateral losses for impaired securities in this category of 15.8% compared to weighted average credit support of 41%. As of June 30, 2026, 86% of the impaired securities in this category, based on carrying value, were externally rated AAA, and 14% were rated AA.

At June 30, 2026, three non-mortgage asset-backed securities were in unrealized loss positions. These securities are backed by student loan collateral. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, delinquencies, voluntary prepayment rates and recovery lag. In developing assumptions, we took into account collateral type, delineated by whether collateral consisted of loans to borrowers in school, refinancing, or a mixture. Our June 30, 2026 analysis projected weighted average collateral losses for impaired securities in this category of 3.4% compared to weighted average credit support of 37.6%. As of June 30, 2026, 20% of the impaired securities in this category, based on carrying value, were externally rated AAA, and 80% were rated AA.

At June 30, 2026, five state and municipal obligations were in unrealized loss positions. Our analysis of potential credit loss impairment for these securities incorporates a comprehensive analysis and quantitative score of the underlying obligor's credit worthiness provided by a third-party vendor as well as other relevant qualitative considerations. As of June 30, 2026, 8% of the impaired securities in this category, based on carrying value, were externally rated AAA, and 92% were rated AA.