| Securities |
Note 2 — Securities
The following is a summary of securities available for sale as of the dates indicated:
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Gross |
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Gross |
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Estimated |
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Amortized |
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Unrealized |
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Unrealized |
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Fair |
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Cost |
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Gain |
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Loss |
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Value |
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(in thousands) |
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September 30, 2026 |
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U.S. Treasury securities |
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$ |
226,273 |
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$ |
— |
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$ |
(1,222 |
) |
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$ |
225,051 |
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U.S. government agency and sponsored agency obligations: |
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Mortgage-backed securities - residential |
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384,273 |
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8 |
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(50,734 |
) |
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333,547 |
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Mortgage-backed securities - commercial |
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78,566 |
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— |
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(14,752 |
) |
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63,814 |
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Collateralized mortgage obligations |
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159,907 |
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46 |
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(8,894 |
) |
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151,059 |
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Other U.S. government agency obligations |
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34,567 |
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— |
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(484 |
) |
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34,083 |
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Total U.S. government agency and sponsored agency obligations |
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657,313 |
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54 |
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(74,864 |
) |
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582,503 |
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Municipal bonds-tax exempt |
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74,242 |
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(12,297 |
) |
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61,945 |
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Total securities available for sale |
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$ |
957,828 |
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$ |
54 |
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$ |
(88,383 |
) |
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$ |
869,499 |
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December 31, 2025 |
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U.S. Treasury securities |
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$ |
128,569 |
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$ |
298 |
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$ |
(157 |
) |
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$ |
128,710 |
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U.S. government agency and sponsored agency obligations: |
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Mortgage-backed securities - residential |
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411,223 |
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|
926 |
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(38,741 |
) |
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373,408 |
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Mortgage-backed securities - commercial |
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71,751 |
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116 |
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(11,295 |
) |
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60,572 |
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Collateralized mortgage obligations |
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188,120 |
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1,768 |
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(5,933 |
) |
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183,955 |
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Other U.S. government agency obligations |
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67,059 |
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— |
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(1,105 |
) |
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65,954 |
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Total U.S. government agency and sponsored agency obligations |
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738,153 |
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2,810 |
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(57,074 |
) |
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683,889 |
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Municipal bonds-tax exempt |
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75,038 |
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— |
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(7,013 |
) |
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|
68,025 |
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Total securities available for sale |
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$ |
941,760 |
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$ |
3,108 |
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$ |
(64,244 |
) |
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$ |
880,624 |
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The amortized cost and estimated fair value of securities as of September 30, 2026 and December 31, 2025, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities. Mortgage-backed securities included in the table below may be repaid before their contractual maturities.
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September 30, 2026 |
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December 31, 2025 |
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Available for Sale |
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Available for Sale |
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Amortized |
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Estimated |
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Amortized |
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Estimated |
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Cost |
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Fair Value |
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Cost |
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Fair Value |
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(in thousands) |
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Within one year |
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$ |
150,885 |
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$ |
150,221 |
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$ |
159,050 |
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$ |
158,399 |
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Over one year through five years |
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128,761 |
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126,730 |
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65,994 |
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|
64,919 |
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Over five years through ten years |
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296,223 |
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255,644 |
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234,306 |
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213,596 |
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Over ten years |
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381,959 |
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336,904 |
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482,410 |
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|
443,710 |
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Total |
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$ |
957,828 |
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$ |
869,499 |
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$ |
941,760 |
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$ |
880,624 |
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The following table summarizes debt securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2026 or December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position:
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Holding Period |
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Less than 12 Months |
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12 Months or More |
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Total |
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Gross |
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Estimated |
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Number |
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Gross |
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Estimated |
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Number |
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Gross |
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Estimated |
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Number |
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Unrealized |
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Fair |
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of |
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Unrealized |
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Fair |
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of |
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Unrealized |
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Fair |
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of |
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Loss |
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Value |
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Securities |
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Loss |
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Value |
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Securities |
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Loss |
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Value |
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Securities |
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(in thousands, except number of securities) |
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September 30, 2026 |
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U.S. Treasury securities |
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$ |
(1,205 |
) |
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$ |
221,567 |
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39 |
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$ |
(17 |
) |
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$ |
3,484 |
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1 |
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$ |
(1,222 |
) |
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$ |
225,051 |
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40 |
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U.S. government agency and sponsored agency obligations: |
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Mortgage-backed securities - residential |
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(2,389 |
) |
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55,019 |
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20 |
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(48,345 |
) |
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275,194 |
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115 |
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(50,734 |
) |
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330,213 |
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|
135 |
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Mortgage-backed securities - commercial |
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(940 |
) |
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18,343 |
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6 |
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(13,812 |
) |
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45,471 |
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14 |
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(14,752 |
) |
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63,814 |
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20 |
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Collateralized mortgage obligations |
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(1,923 |
) |
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106,199 |
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38 |
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(6,971 |
) |
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38,652 |
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21 |
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(8,894 |
) |
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144,851 |
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59 |
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Other U.S. government agency obligations |
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(165 |
) |
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9,836 |
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2 |
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(319 |
) |
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24,247 |
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5 |
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(484 |
) |
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34,083 |
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7 |
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Total U.S. government agency and sponsored agency obligations |
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(5,417 |
) |
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189,397 |
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66 |
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(69,447 |
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383,564 |
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155 |
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(74,864 |
) |
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572,961 |
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221 |
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Municipal bonds-tax exempt |
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— |
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— |
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— |
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(12,297 |
) |
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61,945 |
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19 |
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(12,297 |
) |
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61,945 |
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19 |
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Total |
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$ |
(6,622 |
) |
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$ |
410,964 |
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|
105 |
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$ |
(81,761 |
) |
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$ |
448,993 |
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|
175 |
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$ |
(88,383 |
) |
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$ |
859,957 |
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280 |
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December 31, 2025 |
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U.S. Treasury securities |
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$ |
— |
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$ |
4,999 |
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1 |
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$ |
(157 |
) |
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$ |
10,351 |
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3 |
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$ |
(157 |
) |
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$ |
15,350 |
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4 |
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U.S. government agency and sponsored agency obligations: |
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Mortgage-backed securities - residential |
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(46 |
) |
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4,629 |
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2 |
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(38,695 |
) |
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322,912 |
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114 |
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(38,741 |
) |
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327,541 |
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|
116 |
|
Mortgage-backed securities - commercial |
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— |
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— |
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— |
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(11,295 |
) |
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|
54,316 |
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16 |
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(11,295 |
) |
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|
54,316 |
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|
16 |
|
Collateralized mortgage obligations |
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|
— |
|
|
|
— |
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|
— |
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|
|
(5,933 |
) |
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|
50,264 |
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24 |
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|
(5,933 |
) |
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|
50,264 |
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|
24 |
|
Other U.S. government agency obligations |
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|
— |
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|
— |
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|
— |
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|
|
(1,105 |
) |
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|
65,954 |
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13 |
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(1,105 |
) |
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|
65,954 |
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|
13 |
|
Total U.S. government agency and sponsored agency obligations |
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(46 |
) |
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4,629 |
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2 |
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(57,028 |
) |
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|
493,446 |
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|
167 |
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(57,074 |
) |
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|
498,075 |
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|
169 |
|
Municipal bonds-tax exempt |
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— |
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— |
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— |
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|
(7,013 |
) |
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|
68,025 |
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19 |
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(7,013 |
) |
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|
68,025 |
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|
19 |
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Total |
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$ |
(46 |
) |
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$ |
9,628 |
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3 |
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$ |
(64,198 |
) |
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$ |
571,822 |
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|
189 |
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$ |
(64,244 |
) |
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$ |
581,450 |
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|
|
192 |
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The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. If a credit loss is expected to occur, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the securities portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government and are therefore not expected to incur credit losses.
During the three months ended September 30, 2026, the Company sold $44.5 million of U.S. Treasury securities at a loss of $0.1 million. There were no other sales of securities during the nine months ended September 30, 2026. There were no sales of securities during the nine months ended September 30, 2025.
As of September 30, 2026 and December 31, 2025, there were no securities available for sale that were pledged to secure advances or other borrowings.
At September 30, 2026, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.
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