Securities

9 Months Ended

Sep. 30, 2026

Investments, Debt and Equity Securities [Abstract]

a) Debt Securities

Debt securities available for sale

The Company’s investments in debt securities primarily consist of mortgage-backed securities (“MBS”). The following tables present granular information such as amortized cost, allowance for credit losses and approximate fair values of all debt securities available for sale:


	September 30, 2026
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Estimated Fair Value
(in thousands)			Gains		Losses
U.S. Government agency and sponsored enterprise residential MBS	$	2,073,302	$	27	$	(145,716)	$	—	$	1,927,613
U.S. Treasury Securities (1)	21,869		$	—	(2,227)		—		19,642
U.S. Government agency and sponsored enterprise commercial MBS	148,075		—		(9,684)		—		138,391
U.S. Government agency and sponsored enterprise obligations	79,737		1		(824)		—		78,914
Municipal Bonds (2)	1,732		—		(251)		—		1,481



Total debt securities available for sale (3)	$	2,324,715	$	28	$	(158,702)	$	—	$	2,166,041

__________________

(1)Consists of U.S. Treasury notes with a fair value of $19.6 million and amortized cost of $21.9 million, respectively.

(2)Consists of MBS securities with a fair value of $1.5 million and an amortized cost of $1.7 million, respectively.

(3)Excludes accrued interest receivable of $9.9 million as of September 30, 2026, which is included as part of accrued interest receivable and other assets in the Company’s consolidated balance sheet. The Company did not record any write offs on accrued interest receivable related to these securities in the three and nine month periods ended September 30, 2026.


	December 31, 2025
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Estimated Fair Value
(in thousands)			Gains		Losses
U.S. Government agency and sponsored enterprise residential MBS	$	1,824,499	$	20,675	$	(20,664)	$	—	$	1,824,510
U.S. Government agency and sponsored enterprise commercial MBS	153,746		1,016		(2,513)		—		152,249
U.S. Government agency and sponsored enterprise obligations	46,112		3		(660)		—		45,455
Municipal Bonds (1)	1,732		—		(63)		—		1,669
U.S. Treasury Securities	999		1		—		—		1,000
Total debt securities available for sale (2)	$	2,027,088	$	21,695	$	(23,900)	$	—	$	2,024,883

__________________

(1)Consists of MBS securities with a fair value of $1.7 million and amortized cost of $1.7 million.

(2)Excludes accrued interest receivable of $8.1 million as of December 31, 2025, which is included as part of other assets in the Company’s consolidated balance sheet. The Company did not record any write offs on accrued interest receivable related to these securities in 2025.

There were no investments in foreign sovereign debt securities, foreign government agency debt securities, or foreign corporate bonds available for sale at September 30, 2026 and December 31, 2025.

In the three and nine month periods ended September 30, 2026, proceeds from sales, redemptions and calls, gross realized gains, and gross realized losses of debt securities available for sale were as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
(in thousands)	2026		2026
Proceeds from sales, redemptions and calls of debt securities available for sale	$	198,220	$	333,719

Gross realized gains	16		851
Gross realized losses	—		—
Realized gains, net	$	16	$	851

In the three and nine month periods ended September 30, 2025, there were no sales, calls or redemptions of debt securities available for sale.

The Company’s investment in debt securities available for sale with unrealized losses aggregated by the length of time that individual securities have been in a continuous unrealized loss position, are summarized below:


	September 30, 2026
	Less Than 12 Months			12 Months or More			Total
(in thousands, except securities count)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
U.S. Government agency and sponsored enterprise residential MBS	386	$	1,594,672	$	(104,636)	247	$	329,723	$	(41,080)	$	1,924,395	$	(145,716)

U.S. Government agency and sponsored enterprise commercial MBS	19	85,356		(4,678)		27	53,035		(5,006)		138,391		(9,684)
U.S. Government agency and sponsored enterprise obligations	12	66,411		(637)		41	9,839		(187)		76,250		(824)
Municipal bonds	1	336		(24)		2	1,145		(227)		1,481		(251)

U.S. Treasury Securities	4	19,642		(2,227)		—	—		—		19,642		(2,227)

	422	$	1,766,417	$	(112,202)	317	$	393,742	$	(46,500)	$	2,160,159	$	(158,702)


	December 31, 2025
	Less Than 12 Months					12 Months or More					Total
(in thousands, except securities count)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss

U.S. Government agency and sponsored enterprise residential MBS	40	$	98,114	$	(197)	275	$	444,110	$	(20,467)	$	542,224	$	(20,664)
U.S. Government agency and sponsored enterprise commercial MBS	2	8,900		(56)		30	69,498		(2,457)		78,398		(2,513)
U.S. Government agency and sponsored enterprise obligations	7	33,417		(407)		42	11,757		(253)		45,174		(660)
Municipal Bonds	—	—		—		3	1,669		(63)		1,669		(63)
	49	$	140,431	$	(660)	350	$	527,034	$	(23,240)	$	667,465	$	(23,900)

U.S. Government Sponsored Enterprise Debt Securities, U.S. Government Agency Debt Securities and U.S. Treasury Securities.

At September 30, 2026 and December 31, 2025, the Company held certain debt securities issued or guaranteed by the U.S. government and U.S. government-sponsored entities and agencies. In addition, as of September 30, 2026 and December 31, 2025, the Company held U.S. Treasury securities, which have an explicit government guarantee. The Company does not intend to sell impaired debt securities in these categories, if any, and it is more likely than not that it will not be required to sell those securities before their anticipated recovery. The Company evaluates these securities for credit losses by reviewing current market conditions, the extent and nature of changes in fair value, credit ratings, default and delinquency rates and current analysts’ evaluations. The Company believes the decline in fair value on certain of these debt securities is attributable to changes in interest rates and investment securities markets, generally, and not credit quality. As a result, the Company did not record an Allowance for Credit Losses, or ACL, on these securities as of September 30, 2026 and December 31, 2025.

Contractual maturities

Contractual maturities of debt securities at September 30, 2026 are as follows:


	Available for Sale
(in thousands)	Amortized Cost		Estimated Fair Value
Within 1 year	$	2,695	$	2,662
After 1 year through 5 years	48,371		47,106
After 5 years through 10 years	90,106		85,879
After 10 years	2,183,543		2,030,394

	$	2,324,715	$	2,166,041

Actual maturities of debt securities available for sale may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

b) Equity securities with readily available fair value not held for trading

As of September 30, 2026 and December 31, 2025, the Company had an equity security with readily available fair value not held for trading with an original cost and fair value of $2.4 million and $2.5 million, respectively. These equity securities have no stated maturities. There were no significant unrealized gains and losses related to these equity securities in the three and nine month periods ended September 30, 2026 and 2025.

c) Securities Pledged

As of September 30, 2026 and December 31, 2025, the Company had $44.0 million and $62.7 million, respectively, in securities pledged as collateral. These securities were pledged to secure public funds, advances from the Federal Home Loan Bank and for other purposes as permitted by law.