v3.26.1
Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
 
The following tables summarize securities available-for-sale (“AFS”) and securities held-to-maturity (“HTM”) as of June 30, 2026 and December 31, 2025.

June 30, 2026
Amortized CostGross UnrealizedFair Value
(amounts in thousands)GainsLosses
Securities available-for-sale
U.S. Government-sponsored agencies$54,787 $435 $(947)$54,275 
Municipal securities57,663 16 (1,697)55,982 
Agency mortgage-backed securities - residential 1
436,922 1,390 (22,144)416,168 
Agency mortgage-backed securities - commercial57,544 145 (978)56,711 
Private label mortgage-backed securities - residential119,043 73 (1,171)117,945 
Asset-backed securities43,194 71 (159)43,106 
Corporate securities42,754 400 (665)42,489 
Total available-for-sale$811,907 $2,530 $(27,761)$786,676 


June 30, 2026
Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
(amounts in thousands)GainsLosses
Securities held-to-maturity
Municipal securities$10,370 $— $(514)$9,856 $(3)$10,367 
Agency mortgage-backed securities - residential232,272 1,308 (13,261)220,319 — 232,272 
Agency mortgage-backed securities - commercial5,598 — (936)4,662 — 5,598 
Corporate securities16,500 — (766)15,734 (75)16,425 
Total held-to-maturity$264,740 $1,308 $(15,477)$250,571 $(78)$264,662 

1 Includes $0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of June 30, 2026.

December 31, 2025
Amortized CostGross UnrealizedFair Value
(amounts in thousands)GainsLosses
Securities available-for-sale
U.S. Government-sponsored agencies$64,298 $480 $(1,014)$63,764 
Municipal securities64,777 17 (1,408)63,386 
Agency mortgage-backed securities - residential 1
409,718 841 (21,102)389,457 
Agency mortgage-backed securities - commercial59,112 202 (837)58,477 
Private label mortgage-backed securities - residential124,264 234 (825)123,673 
Asset-backed securities
42,492 100 (39)42,553 
Corporate securities37,761 346 (730)37,377 
Total available-for-sale$802,422 $2,220 $(25,955)$778,687 
December 31, 2025
Amortized CostGross UnrealizedFair ValueAllowance for Credit LossesNet Carrying Value
(amounts in thousands)GainsLosses
Securities held-to-maturity
Municipal securities$11,009 $1 $(459)$10,551 $(3)$11,006 
Agency mortgage-backed securities - residential213,530 1,834 (11,649)203,715 — 213,530 
Agency mortgage-backed securities - commercial5,635 — (915)4,720 — 5,635 
Corporate securities20,536 — (707)19,829 (98)20,438 
Total held-to-maturity$250,710 $1,835 $(13,730)$238,815 $(101)$250,609 

1 Includes $0.2 million of additional premium related to terminated interest rate swaps associated with agency mortgage-backed securities - residential as of December 31, 2025.

Accrued interest receivable on AFS and HTM securities at June 30, 2026 was $2.8 million and $1.1 million, respectively, compared to $3.0 million and $1.1 million, respectively, at December 31, 2025, and is included in accrued interest receivable on the condensed consolidated balance sheet. The Company elected to exclude all accrued interest receivable from securities when estimating credit losses.

At June 30, 2026 and December 31, 2025, approximately 86% and 84%, respectively, of mortgage-backed securities (including both AFS and HTM) held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses; therefore, the Company did not record an ACL on these securities.

Additionally, the Company evaluated credit impairment for individual AFS securities that are in an unrealized loss position and determined that the unrealized losses are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets. As the Company does not intend to sell the AFS securities that are in an unrealized loss position, and it is unlikely that it will be required to sell these securities before recovery of their amortized cost basis, the Company did not record an ACL on these securities.

The Company also evaluated its HTM securities that are in an unrealized loss position and considered issuer bond ratings, historical loss rates for bond ratings and economic forecasts. The ACL on HTM securities was $0.1 million at both June 30, 2026 and December 31, 2025.

The carrying value of securities at June 30, 2026 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Available-for-Sale
(amounts in thousands)Amortized
Cost		Fair
Value
Within one year$4,360 $4,341 
One to five years23,300 22,877 
Five to ten years84,191 82,870 
After ten years43,353 42,658 
155,204 152,746 
Agency mortgage-backed securities - residential436,922 416,168 
Agency mortgage-backed securities - commercial57,544 56,711 
Private label mortgage-backed securities - residential119,043 117,945 
Asset-backed securities43,194 43,106 
Total$811,907 $786,676 
Held-to-Maturity
(amounts in thousands)Amortized
Cost		Fair
Value
Within one year$1,181 $1,174 
One to five years12,145 12,005 
Five to ten years13,273 12,159 
After ten years271 252 
26,870 25,590 
Agency mortgage-backed securities - residential232,272 220,319 
Agency mortgage-backed securities - commercial5,598 4,662 
Total$264,740 $250,571 

No AFS securities were sold during the three and six months ended June 30, 2026 and June 30, 2025. As such, the Company did not realize any gains or losses related to the sale of AFS securities during either time period.

Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2026 and December 31, 2025 was $643.8 million and $611.2 million, which was approximately 61% and 59%, respectively, of the Company’s AFS and HTM securities portfolios. As of June 30, 2026, the Company’s security portfolio consisted of 628 positions, of which 419 were in an unrealized loss position. As of December 31, 2025, the Company’s security portfolio consisted of 618 positions, of which 395 were in an unrealized loss position. The unrealized losses are related to the categories noted below.

U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.
 
Agency Mortgage-Backed, Private Label Mortgage-Backed Securities and Asset-Backed Securities
 
The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed securities and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost basis over the terms of the securities. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of their amortized cost basis, which may be upon maturity.
The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025.

June 30, 2026
Less Than 12 Months12 Months or LongerTotal
(amounts in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Securities available-for-sale
U.S. Government-sponsored agencies$4,129 $(8)$24,074 $(939)$28,203 $(947)
Municipal securities9,930 (85)28,516 (1,612)38,446 (1,697)
Agency mortgage-backed securities - residential80,714 (700)151,429 (21,444)232,143 (22,144)
Agency mortgage-backed securities - commercial4,461 (118)23,506 (860)27,967 (978)
Private label mortgage-backed securities - residential96,803 (512)5,990 (659)102,793 (1,171)
     Asset-backed securities22,935 (159)— — 22,935 (159)
Corporate securities7,661 (89)14,424 (576)22,085 (665)
Total$226,633 $(1,671)$247,939 $(26,090)$474,572 $(27,761)


December 31, 2025
Less Than 12 Months12 Months or LongerTotal
(amounts in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Securities available-for-sale
U.S. Government-sponsored agencies$3,600 $(20)$33,849 $(994)$37,449 $(1,014)
Municipal securities2,301 — 42,515 (1,408)44,816 (1,408)
Agency mortgage-backed securities - residential
67,177 (190)186,453 (20,912)253,630 (21,102)
Agency mortgage-backed securities - commercial2,981 (22)25,915 (815)28,896 (837)
Private label mortgage-backed securities - residential75,924 (191)6,533 (634)82,457 (825)
Asset-backed securities
21,413 (39)— — 21,413 (39)
Corporate securities3,698 (52)14,322 (678)18,020 (730)
Total$177,094 $(514)$309,587 $(25,441)$486,681 $(25,955)
The following tables summarize ratings for the Company’s HTM portfolio as of June 30, 2026 and December 31, 2025.
June 30, 2026
(amounts in thousands)Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $232,272 $5,598 $— $237,870 
Aa1/AA+6,408 — — — 6,408 
Aa2/AA2,170 — — — 2,170 
Aa3/AA-1,792 — — — 1,792 
A3/A-— — — 5,000 5,000 
Baa1/BBB+— — — 7,000 7,000 
Baa3/BBB-— — — 2,500 2,500 
Not Rated1
— — — 2,000 2,000 
   Total$10,370 $232,272 $5,598 $16,500 $264,740 

1 This security previously had a BBB rating, but the issuer was acquired during the first quarter 2026. The acquiring company did not have any outstanding subordinated debt issuances prior to the acquisition and, therefore, did not have a rating at the time of acquisition.

December 31, 2025
(amounts in thousands)Municipal SecuritiesMortgage-Backed Securities - ResidentialMortgage-Backed Securities - CommercialCorporate SecuritiesTotal
AAA equivalent - agency$— $213,530 $5,635 $— $219,165 
Aa1/AA+7,046 — — — 7,046 
Aa2/AA2,170 — — — 2,170 
Aa3/AA-1,793 — — — 1,793 
A3/A-— — — 5,000 5,000 
Baa1/BBB+— — — 5,000 5,000 
Baa2/BBB— — — 4,000 4,000 
Baa3/BBB-— — — 4,536 4,536 
Ba1/BB+— — — 2,000 2,000 
   Total$11,009 $213,530 $5,635 $20,536 $250,710 



Equity Investments

Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under equity security accounting and are included within accrued income and other assets on the consolidated balance sheet. The Company’s non-marketable equity investments consist of limited partner interests in venture capital and Small Business Investment Company (“SBIC”) funds. After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive a proportional share of profit and return of capital distributions as a result of fund performance until the funds wind down. While the partnership agreements allow the Company to remove the general partner, this right is not considered to be substantive as the general partner can only be removed for cause. All of these investments are generally non-redeemable and distributions are generally expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreements.

The following tables provide additional information related to equity investments accounted for under equity security accounting.
The carrying amount of each equity investment with a readily determinable fair value or net asset value at June 30, 2026 and December 31, 2025 is reflected in the following table:

(amounts in thousands)June 30, 2026December 31, 2025
GenOpp Financial Fund LP$3,202 $2,876 
Total$3,202 $2,876 

The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis at June 30, 2026 and December 31, 2025 is reflected in the following table:

(amounts in thousands)June 30, 2026December 31, 2025
Carrying value1
$38,438 $38,611 
Carrying value adjustments— — 
Impairment— — 
Upward changes for observable prices— — 
Downward changes for observable prices— — 
Total$38,438 $38,611 

1 Excludes $13.9 million and $14.6 million in unfunded commitments as of June 30, 2026 and December 31, 2025, respectively.


Variable Interest Entities

The above investments meet the criteria of a VIE. However, the Company is not the primary beneficiary of the entities as it does not have the power to direct the activities that most significantly impact the economic performance of the entities. The Company’s maximum exposure to loss from unconsolidated VIEs includes the value of the investment recorded on the Company’s consolidated balance sheets and unfunded commitment. The Company believes the potential for loss from these investments is remote, the maximum exposure for the affordable housing investment was determined by assuming a scenario where related tax credits were recaptured.

The following table provides a summary of VIEs that the Company has not consolidated as June 30, 2026 and December 31, 2025:

June 30, 2026
(amounts in thousands)Carrying AmountMaximum Exposure to LossLiability RecognizedClassification
Private equity and venture capital funds$14,067 $19,332 $— 
Other assets (1)
Pooled investment vehicle3,202 3,202 — 
Other assets (2)
SBIC7,292 13,000 — 
Other assets (3)
Affordable housing7,079 13,045 — 
Other assets (4)
Non-marketable and other equity investments10,000 10,000 — 
Other assets (5)


December 31, 2025
(amounts in thousands)Carrying AmountMaximum Exposure to LossLiability RecognizedClassification
Private equity and venture capital funds$13,685 $20,208 $— 
Other assets (6)
Pooled investment vehicle2,876 2,876 — 
Other assets (7)
SBIC7,292 13,000 — 
Other assets (8)
Affordable housing7,634 12,519 — 
Other assets (9)
Non-marketable and other equity investments10,000 10,000 — 
Other assets (10)

(1) Maximum exposure to loss includes $14.1 million of current investments and $5.3 million in unfunded commitments.
(2) Maximum exposure to loss includes $3.2 million of current investments.
(3) Maximum exposure to loss includes $7.3 million of current investments and $5.7 million in unfunded commitments.
(4) Maximum exposure to loss includes $7.1 million of current investments, $2.9 million in unfunded commitments and a scenario in which related tax credits of $3.0 million are recaptured, totaling $13.0 million.
(5) Maximum exposure to loss includes $10.0 million of current investments.
(6) Maximum exposure to loss includes $13.7 million of current investments and $6.0 million in unfunded commitments.
(7) Maximum exposure to loss includes $2.9 million of current investments.
(8) Maximum exposure to loss includes $7.3 million of current investments and $5.7 million in unfunded commitments.
(9) Maximum exposure to loss includes $7.6 million of current investments, $2.4 million in unfunded commitments and a scenario in which related tax credits of $2.5 million are recaptured, totaling $12.5 million.
(10) Maximum exposure to loss includes $10.0 million of current investments.