The table below includes the fair value of equity securities as of June 30, 2026 and December 31, 2025. Equity investments with no readily determinable fair value are carried at cost. FHLB and FRB stock represent equity interests the Company is required to hold in the Federal Reserve Bank and Federal Home Loan Bank. These amounts are also carried at cost as they do not have a readily determinable fair value because ownership of these shares is restricted, and they lack a market.


	June 30, 2026		December 31, 2025
	(dollars in thousands)
Common and preferred stocks with readily determinable fair value	$	5,667	$	-
Federal Home Loan Bank stock	10,586		10,634
Federal Reserve Bank stock	26,057		26,057
Other - no readily determinable fair value	11,588		11,510
Total	$	53,898	$	48,200

On April 13, 2026, Visa announced the commencement of an exchange offer pursuant to which holders of Class B-2 common stock could exchange their shares for a combination of Visa Class B-3 common stock and Class C common stock (the "Exchange Offer").

In May 2026, the Company participated in Visa Inc.'s Exchange Offer, pursuant to which all 33,010 shares of its Class B-2 common stock were validly tendered and accepted in exchange for a combination of Visa Class B-3 common stock and Class C common stock, together with cash in lieu of fractional shares. Upon completion of the Exchange Offer, the Company recognized a pre-tax gain of approximately $8.4 million reflecting the fair value of the Class C shares received in the transaction.

Immediately following the exchange, the Company converted approximately one-third of its Visa Class C shares to Visa Class A common stock and sold the resulting Class A shares, realizing approximately $2.7 million of the gain previously recognized upon completion of the Exchange Offer.

As of June 30, 2026, the Company held 8,292 shares of Visa Class A common stock and 2,074 shares of Visa Class C common stock. The fair value of the Class C shares was determined based on their as-converted equivalence to Visa Class A common stock and the closing price of Visa Class A common stock of $341.65 per share on June 29, 2026. The Class A shares were subsequently sold in July 2026, resulting in the realization of an additional $2.9 million of the gain previously recognized upon completion of the Exchange Offer.

As of June 30, 2025, the Company also held 16,505 shares of Visa Class B-3 common stock. These shares are subject to restrictions similar to those applicable to the former Class B-2 shares and are carried at a value of zero under the measurement alternative, as there have been no observable price changes in orderly transactions for identical or similar investments of the same issuer.

During the first six months of 2026, $8.4 million in net gains were recorded on common and preferred stock, consisting of $2.7 million in gains realized on sales and a $5.7 million increase in unrealized gains on the portfolio. Net gains of $0.1 million were recorded on common and preferred stock during the first six months of 2025, consisting of $0.8 million in realized gains on sales, offset by a $0.7 million decrease in unrealized gains on the portfolio.


	As of June 30, 2026
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Available for sale:
U.S. Treasury securities	$	1,205,933	$	1,667	$	(5,684)	$	1,201,916	$	-	$	1,201,916
U.S. agency debentures	55,665		24		(109)		55,580		-		55,580
U.S. agency mortgage-backed securities	5,849,445		10,713		(119,726)		5,740,432		-		5,740,432
Obligations of states and political subdivisions	14,331		35		(55)		14,312		-		14,312
Other securities	4,467		-		(57)		4,410		-		4,410
Total	$	7,129,841	$	12,439	$	(125,631)	$	7,016,650	$	-	$	7,016,650

Held to maturity:
U.S. agency RMBS	$	19	$	1	$	-	$	20	$	-	$	20
Obligations of states and political subdivisions	1,519		3		-		1,522		(12)		1,510
Total	$	1,538	$	4	$	-	$	1,542	$	(12)	$	1,530


	As of December 31, 2025
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Available for sale:
U.S. Treasury securities	$	918,922	$	10,561	$	(1,196)	$	928,287	$	-	$	928,287
U.S. agency debentures	132,692		177		(413)		132,456		-		132,456
U.S. agency mortgage-backed securities	5,345,130		46,346		(102,899)		5,288,577		-		5,288,577
Obligations of states and political subdivisions	16,595		87		(38)		16,644		-		16,644
Other securities	6,535		-		(36)		6,499		-		6,499
Total	$	6,419,874	$	57,171	$	(104,582)	$	6,372,463	$	-	$	6,372,463

Held to maturity:
U.S. agency RMBS	$	21	$	1	$	-	$	22	$	-	$	22
Obligations of states and political subdivisions	1,678		-		-		1,678		(10)		1,668
Total	$	1,699	$	1	$	-	$	1,700	$	(10)	$	1,690


	June 30, 2026
	U.S. government obligations and government- sponsored enterprises						Obligations of states and political subdivisions						Other securities*
	Amortized cost		FTE Yield		Fair value		Amortized cost		FTE Yield		Fair value		Amortized cost		FTE Yield		Fair value
	(dollars in thousands)
Available for sale:
Within 1 year	$	129,699	4.45	%	$	129,902	$	7,846	4.40	%	$	7,846	$	-	-	%	$	-
After 1 but within 5 years	1,131,899		4.18	%	1,127,593		6,088		4.53	%	6,073		-		-		-
After 5 but within 10 years	-		-		-		-		-		-		-		-		-
After 10 years	-		-		-		397		7.91	%	393		-		-		-
Mortgage - and asset-backed securities	5,849,445		4.12	%	5,740,433		-		-		-		4,467		4.58	%	4,410
Total	$	7,111,043	4.13	%	$	6,997,928	$	14,331	4.55	%	$	14,312	$	4,467	4.58	%	$	4,410

Held to maturity:
Within 1 year	$	-	-	%	$	-	$	295	5.04	%	$	295	$	-	-	%	$	-
After 1 but within 5 years	-		-		-		1,224		2.28	%	1,227		-		-		-
After 5 but within 10 years	-		-		-		-		-		-		-		-		-
After 10 years	-		-		-		-		-		-		-		-		-
Mortgage - and asset-backed securities	19		6.11	%	20		-		-		-		-		-		-
Total	$	19	6.11	%	$	20	$	1,519	2.82	%	$	1,522	$	-	-	%	$	-
* Other securities consist primarily of corporate bonds.

Proceeds from sales of AFS securities were $202 million and $0 for the six months ended June 30, 2026 and June 30, 2025, respectively. Using the specific-identification method to determine the cost of the securities sold, the Company recognized net losses of $7.8 million and $0 on the sales of AFS securities during the six months ended June 30, 2026 and 2025, respectively.

Investment securities with a carrying value of approximately $3.38 billion and $4.06 billion were pledged to secure public deposits, repurchase agreements, and borrowed funds at June 30, 2026 and December 31, 2025, respectively.

The expected credit losses for HTM debt securities are determined based on the likelihood of default and potential loss, using assumptions that correspond to loans with similar credit profiles. The Company recorded an allowance for credit losses on its HTM debt securities of $12 thousand and $10 thousand at June 30, 2026 and December 31, 2025, respectively.

All AFS securities not issued or guaranteed by the U.S. Government, its agencies, or sponsored enterprises undergo a quarterly evaluation for impairment. This evaluation involves testing various credit and loss assumptions, rather than solely relying on credit ratings. As of June 30, 2026, the Company did not identify any such securities for which a credit loss exists, and for the three and six months ended June 30, 2026 and 2025, the Company did not recognize a credit loss expense on any AFS securities.

Special emphasis and analysis are placed on securities that have experienced a negative credit rating event, are below investment grade, or have an uncertain financial outlook. These securities are placed on a watch list and monitored for further developments. At June 30, 2026, the fair value of securities on this watch list was $3.5 million compared to $4.9 million at December 31, 2025.

The table below summarizes debt securities AFS in an unrealized loss position, aggregated by length of impairment period, for which an allowance for credit loss has not been recorded at June 30, 2026 and December 31, 2025. Unrealized losses on these AFS securities have not been recognized as income because after review, the securities were deemed not to be impaired. The unrealized losses on these securities are primarily attributable to changes in interest rates and current market conditions. During the second quarter of 2026, the Company sold approximately $210 million of available-for-sale securities at a net loss of $7.8 million as part of a strategic repositioning to improve portfolio yield and extend duration. With respect to the remaining securities in an unrealized loss position, at June 30, 2026 management has both the intent and the ability to hold these securities until recovery of any unrealized losses, which may be at maturity, and does not expect to be required to sell the securities prior to such recovery.


	As of June 30, 2026
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
	(dollars in thousands)
Available for sale:
U.S. government obligations and government- sponsored enterprises	$	3,436,410	$	(30,466)	$	1,080,824	$	(95,053)	$	4,517,234	$	(125,519)
Obligations of states and political subdivisions	-		-		5,725		(55)		5,725		(55)
Other securities	-		-		3,304		(57)		3,304		(57)
Total	$	3,436,410	$	(30,466)	$	1,089,853	$	(95,165)	$	4,526,263	$	(125,631)


	As of December 31, 2025
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized Losses		Fair value		Unrealized losses		Fair value		Unrealized losses
	(dollars in thousands)
Available for sale:
U.S. government obligations and government- sponsored enterprises	$	419,704	$	(1,190)	$	1,469,113	$	(103,318)	$	1,888,817	$	(104,508)
Obligations of states and political subdivisions	-		-		7,204		(38)		7,204		(38)
Other securities	-		-		3,557		(36)		3,557		(36)
Total	$	419,704	$	(1,190)	$	1,479,874	$	(103,392)	$	1,899,578	$	(104,582)

At June 30, 2026, there were no held-to-maturity securities in an unrealized loss position across any investment category or duration period. This compares to December 31, 2025, at which time the held-to-maturity portfolio contained $0.5 million in fair value of obligations of states and political subdivisions that had been in an unrealized loss position for less than 12 months, with no associated unrealized loss amount. There were no U.S. government or government-sponsored enterprise held-to-maturity securities in an unrealized loss position at either date.

For obligations of states and political subdivisions, the Company's holdings are primarily in general obligation and revenue bonds. The Company monitors credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends. The underlying bonds are evaluated for credit losses in conjunction with management's estimate of the allowance for credit losses.


	June 30, 2026
	Amortized Cost Basis by Credit Rating - HTM Debt Securities
	Non-Rated		A		AA		AAA		Total
Held to maturity securities:	(dollars in thousands)
State and political subdivisions	$	246	$	-	$	978	$	295	$	1,519

	December 31, 2025
	Amortized Cost Basis by Credit Rating - HTM Debt Securities
	Non-Rated		A		AA		AAA		Total
Held to maturity securities:	(dollars in thousands)
State and political subdivisions	$	251	$	-	$	1,132	$	295	$	1,678