v3.26.1
Investment Securities
 6 Months Ended
Jun. 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 June 30, 2026 and December 31, 2025:  
June 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$751,820 $29 $(3,072)$— $748,777 
Mortgage-backed securities - residential605,343 1,109 (33,273)— 573,179 
Mortgage-backed securities - commercial 20,810 30 (635)— 20,205 
Municipal securities186,105 365 (16,297)— 170,173 
U.S. Treasury securities7,143 — (77)— 7,066 
Corporate securities1,700 — (7)— 1,693 
Total$1,572,921 $1,533 $(53,361)$— $1,521,093 
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 June 30, 2026 and December 31, 2025, total accrued interest receivable on AFS debt securities was $5,100 and $5,101, respectively.
AFS debt securities pledged at June 30, 2026 and December 31, 2025 had carrying amounts of $829,803 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 June 30, 2026 and December 31, 2025, there were no trade date receivables nor payables that related to sales or purchases settled after period end.
The following tables show gross unrealized losses on AFS debt securities for which an allowance for credit losses has not been recorded at June 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:
June 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$482,620 $(1,211)$256,131 $(1,861)$738,751 $(3,072)
Mortgage-backed securities - residential197,976 (3,601)152,501 (29,672)350,477 (33,273)
Mortgage-backed securities - commercial6,327 (109)8,647 (526)14,974 (635)
Municipal securities20,238 (118)123,664 (16,179)143,902 (16,297)
U.S. Treasury securities7,066 (77)— — 7,066 (77)
Corporate securities993 (7)— — 993 (7)
Total$715,220 $(5,123)$540,943 $(48,238)$1,256,163 $(53,361)
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 June 30, 2026 and December 31, 2025, the Company’s AFS debt securities portfolio consisted of 344 and 324 individual securities, 240 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 June 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 June 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 June 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 June 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.
June 30,December 31,
2026 2025 
Available-for-saleAvailable-for-sale
Amortized costFair ValueAmortized costFair Value
Due in one year or less$1,949 $1,952 $205 $204 
Due in one to five years14,222 14,116 12,467 12,474 
Due in five to ten years378,516 374,906 330,850 328,456 
Due in over ten years552,081 536,735 521,676 505,447 
946,768 927,709 865,198 846,581 
Mortgage-backed securities - residential605,343 573,179 631,104 602,320 
Mortgage-backed securities - commercial20,810 20,205 11,164 10,678 
Total AFS debt securities$1,572,921 $1,521,093 $1,507,466 $1,459,579 
Sales and other dispositions of AFS debt securities were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026 2025 2026 2025 
Proceeds from sales$— $266,454 $— $266,454 
Proceeds from maturities, prepayments and calls72,698 59,801 132,824 134,661 
Gross realized gains— 88 — 104 
Gross realized losses— 60,637 — 60,637 
Equity Securities
Equity securities, at fair value
The Company held $6,000 and $155 in marketable equity securities recorded at fair value as of June 30, 2026 and December 31, 2025, respectively.
The change in the fair value of equity securities recorded at fair value resulted in a net gain of $1 for the three and six months ended June 30, 2026. There were no such amounts recognized for the three and six months ended June 30, 2025.
Restricted equity securities, at cost
The table below represents the Company’s restricted equity securities held at cost as of June 30, 2026 and December 31, 2025.
June 30,December 31,
20262025
Federal Reserve Bank stock$45,502 $45,227 
FHLB stock40,652 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$87,572 $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 $30,324 and $32,038 at June 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 June 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 $16,516 and $17,611 as of June 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.