As of September 30, 2026, the Company had $3.28 billion and $257.1 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.


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

U.S. Treasury obligations	$	191,896	2	(6,556)	185,342
Government-agency obligations	26,673		597	(64)	27,206
Mortgage-backed securities	3,051,193		1,012	(233,760)	2,818,445
Asset-backed securities	34,256		427	(207)	34,476
State and municipal obligations	118,869		19	(14,985)	103,903
Corporate obligations	112,318		4,973	(2,313)	114,978

	$	3,535,205	7,030	(257,885)	3,284,350


	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 $12.7 million and $10.9 million as of September 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 September 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.


	September 30, 2026
	Amortized cost		Fair value
Due in one year or less	$	97,786	97,143
Due after one year through five years	121,543		115,334
Due after five years through ten years	140,981		139,291
Due after ten years	62,773		52,455
Securities without a contractual maturity (1)	3,112,122		2,880,127
	$	3,535,205	3,284,350

(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 months ended September 30, 2026, no securities were sold from the available for sale debt securities portfolio, while proceeds from calls on securities totaled $1.1 million with gross gains of $86,000 and no gross losses recognized. For the nine months ended September 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 $6.5 million with gross gains of $580,000 and no gross losses recognized. For the three months ended September 30, 2025, no securities were sold or called from the available for sale debt securities portfolio. For the nine months ended September 30,

2025, proceeds from sales on securities in the available for sale debt securities portfolio totaled $1.7 million, with gross gains of $87,000 and no losses recognized. For the three and nine months ended September 30, 2025, proceeds from calls on securities from the available for sale debt portfolio totaled $4.0 million with gross gains of $67,000 and no losses recognized.

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 September 30, 2026 and December 31, 2025 (in thousands):


	September 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	$	2,441	(3)	172,927	(6,553)	175,368	(6,556)
Government-agency obligations	8,314		(64)	—	—	8,314	(64)
Mortgage-backed securities	1,814,944		(87,350)	863,356	(146,410)	2,678,300	(233,760)
Asset-backed securities	9,254		(36)	2,006	(171)	11,260	(207)
State and municipal obligations	41,237		(3,211)	60,485	(11,774)	101,722	(14,985)
Corporate obligations	35,715		(1,285)	19,189	(1,028)	54,904	(2,313)
Total	$	1,911,905	(91,949)	1,117,963	(165,936)	3,029,868	(257,885)


	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 September 30, 2026 totaled 728, compared with 406 as of December 31, 2025. The increase in the number of securities in an unrealized loss position as of September 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 September 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 September 30, 2026 and December 31, 2025, respectively (in thousands):


	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 $2.3 million and $2.6 million as of September 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 nine months ended September 30, 2026 and 2025. For the three and nine months ended September 30, 2026, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $870,000 and $5.2 million, respectively. As to these calls on securities, for the three months ended September 30, 2026, there were no gross gains or gross losses, while for the nine months ended September 30, 2026, there were gross gains of $3,000 and no gross losses related to these calls on securities. For the three and nine months ended September 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $910,000 and $11.0 million, respectively. As to these calls on securities, for the three and nine months ended September 30, 2025, there were no gross gains or gross losses related to these calls on securities.

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


	September 30, 2026
	Amortized cost		Fair value
Due in one year or less	$	51,398	51,186
Due after one year through five years	142,485		137,440
Due after five years through ten years	60,143		50,746
Due after ten years	3,080		2,248
	$	257,106	241,620

The number of held to maturity debt securities in an unrealized loss position as of September 30, 2026 totaled 393, compared with 221 as of December 31, 2025. The increase in the number of securities in an unrealized loss position as of September 30, 2026, was mainly due to higher current market interest rates compared to rates as of December 31, 2025.

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 September 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").


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



State and municipal obligations	42,915		178,179	15,476	—	20,536	257,106

	$	42,915	178,179	15,476	—	20,536	257,106

	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 September 30, 2026, the held to maturity debt securities portfolio was comprised of 17% rated AAA, 69% rated AA, 6% rated A, and less than 8% 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 September 30, 2026 and December 31, 2025 (in thousands):


	September 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:


State and municipal obligations	144,745		(4,291)	76,430	(11,195)	221,175	(15,486)

Total	$	144,745	(4,291)	76,430	(11,195)	221,175	(15,486)


	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)