v3.26.3
Investment Securities
 9 Months Ended
Sep. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment securities
The following tables summarize the amortized cost, allowance for credit losses and fair value of the AFS debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss, net at September 30, 2026 and December 31, 2025:  
September 30, 2026
Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses on investments Fair Value
Investment Securities
AFS debt securities
U.S. government agency securities$791,979 $893 $(2,885)$— $789,987 
Mortgage-backed securities - residential616,975 12 (48,467)— 568,520 
Mortgage-backed securities - commercial 19,868 — (1,224)— 18,644 
Municipal securities186,216 1 (33,892)— 152,325 
U.S. Treasury securities7,170 — (206)— 6,964 
Corporate securities1,700 — (10)— 1,690 
Total$1,623,908 $906 $(86,684)$— $1,538,130 
December 31, 2025
Amortized costGross unrealized gains Gross unrealized losses Allowance for credit losses on investmentsFair Value
Investment Securities
AFS debt securities
U.S. government agency securities$672,110 $163 $(2,185)$— $670,088 
Mortgage-backed securities - residential631,104 897 (29,681)— 602,320 
Mortgage-backed securities - commercial11,164 — (486)— 10,678 
Municipal securities185,000 683 (17,313)— 168,370 
U.S. Treasury securities7,088 37 — — 7,125 
Corporate securities1,000 — (2)— 998 
Total$1,507,466 $1,780 $(49,667)$— $1,459,579 
The components of amortized cost for AFS debt securities on the consolidated balance sheets exclude accrued interest receivable as the Company has elected to present accrued interest receivable separately on the consolidated balance sheets. As of September 30, 2026 and December 31, 2025, total accrued interest receivable on AFS debt securities was $5,838 and $5,101, respectively.
AFS debt securities pledged at September 30, 2026 and December 31, 2025 had carrying amounts of $806,647 and $810,579, respectively, and were pledged to secure public deposits and repurchase agreements.
Within AFS debt securities, there were no aggregate holdings of any single issuer, other than U.S. Government sponsored enterprises, in an amount greater than 10% of shareholders’ equity during any period presented.
AFS debt securities transactions are recorded as of the trade date. At both September 30, 2026 and December 31, 2025, there were no trade date receivables related to sales settled after period end. At September 30, 2026, there were $9,900 of trade date payables that related to purchases settled after period end. At December 31, 2025, there were no such trade date payables.
The following tables show gross unrealized losses on AFS debt securities for which an allowance for credit losses has not been recorded at September 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
September 30, 2026
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized Loss Fair ValueGross Unrealized LossFair ValueGross Unrealized Loss
U.S. government agency securities$69,887 $(2,083)$341,129 $(802)$411,016 $(2,885)
Mortgage-backed securities - residential399,394 (12,446)141,459 (36,021)540,853 (48,467)
Mortgage-backed securities - commercial11,066 (604)7,578 (620)18,644 (1,224)
Municipal securities43,184 (3,150)108,649 (30,742)151,833 (33,892)
U.S. Treasury securities6,964 (206)— — 6,964 (206)
Corporate securities990 (10)— — 990 (10)
Total$531,485 $(18,499)$598,815 $(68,185)$1,130,300 $(86,684)
December 31, 2025
Less than 12 months12 months or moreTotal
Fair ValueGross Unrealized LossFair ValueGross Unrealized LossFair ValueGross Unrealized Loss
U.S. government agency securities$274,195 $(500)$275,887 $(1,685)$550,082 $(2,185)
Mortgage-backed securities - residential97,187 (567)207,127 (29,114)304,314 (29,681)
Mortgage-backed securities - commercial1,898 (9)8,780 (477)10,678 (486)
Municipal securities4,012 (2)133,213 (17,311)137,225 (17,313)
Corporate securities— — 998 (2)998 (2)
Total$377,292 $(1,078)$626,005 $(48,589)$1,003,297 $(49,667)
As of September 30, 2026 and December 31, 2025, the Company’s AFS debt securities portfolio consisted of 354 and 324 individual securities, 325 and 209 of which were in an unrealized loss position, respectively.
The Company has historically not recorded any credit losses in AFS debt securities as the majority of the investment portfolio was either government guaranteed, an issuance of a government sponsored entity or highly rated by major credit rating agencies. Municipal debt securities with market values below amortized cost at September 30, 2026 and December 31, 2025 were reviewed for material credit events and/or rating downgrades with individual credit reviews performed. The issuers of these municipal debt securities continue to make timely principal and interest payments under the contractual terms of the securities and the issuers will continue to be observed as a part of the Company’s ongoing credit monitoring. As such, as of September 30, 2026 and December 31, 2025, it was determined that all AFS debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Further, it is not likely that the Company will be required to sell these securities before recovery of their amortized cost basis. Therefore, no allowance for credit losses was recognized on AFS debt securities as of September 30, 2026 or December 31, 2025. Periodically, AFS debt securities may be sold, or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or preparing for anticipated changes in market interest rates.
The amortized cost and fair value of AFS debt securities by contractual maturity as of September 30, 2026 and December 31, 2025 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
September 30,December 31,
2026 2025 
Available-for-saleAvailable-for-sale
Amortized costFair ValueAmortized costFair Value
Due in one year or less$645 $640 $205 $204 
Due in one to five years15,064 13,593 12,467 12,474 
Due in five to ten years369,192 361,197 330,850 328,456 
Due in over ten years602,164 575,536 521,676 505,447 
987,065 950,966 865,198 846,581 
Mortgage-backed securities - residential616,975 568,520 631,104 602,320 
Mortgage-backed securities - commercial19,868 18,644 11,164 10,678 
Total AFS debt securities$1,623,908 $1,538,130 $1,507,466 $1,459,579 
Sales and other dispositions of AFS debt securities were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2026 2025 2026 2025 
Proceeds from sales$— $440 $— $266,894 
Proceeds from maturities, prepayments and calls67,409 83,204 200,233 217,865 
Gross realized gains— — — 104 
Gross realized losses— — — 60,637 
Equity Securities
Equity securities, at fair value
The Company held $5,759 and $155 in marketable equity securities recorded at fair value as of September 30, 2026 and December 31, 2025, respectively. The change in the fair value of equity securities recorded at fair value resulted in a net loss of $241 and $240 for the three and nine months ended September 30, 2026, respectively. The change in the fair value of equity securities recorded at fair value resulted in a net gain of $12 for both the three and nine months ended September 30, 2025.
Restricted equity securities, at cost
The table below represents the Company’s restricted equity securities held at cost as of September 30, 2026 and December 31, 2025.
September 30,December 31,
20262025
Federal Reserve Bank stock$45,493 $45,227 
FHLB stock37,257 32,401 
First National Banker's Bankshares, Inc. stock1,168 1,168 
Pacific Coast Banker's Bank stock250 250 
Total restricted equity securities, at cost$84,168 $79,046 
Equity securities without readily determinable market value
The Company held equity securities without a readily determinable market value included in other assets on the consolidated balance sheets with carrying amounts of $31,260 and $32,038 at September 30, 2026 and December 31, 2025, respectively.
Equity method investment
The Company holds equity securities of a privately held entity which originates manufactured housing loans through utilization of its proprietary technology. As of September 30, 2026 and December 31, 2025, the Company has the ability to exercise significant influence over this entity and therefore accounts for these equity securities under the equity method. Under this method, the carrying value of the investment is adjusted to reflect the Company’s proportionate share of the investee's profit or loss. This investment is reported in other assets on the consolidated balance sheets with carrying amounts of $16,039 and $17,611 as of September 30, 2026 and December 31, 2025, respectively. The Company’s investment includes a basis difference of $17,103, which is accounted for as equity method goodwill.