
	March 31, 2024
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
U.S. Treasuries	$	174,314	$	1	$	(1)	$	174,314
U.S. Government agency securities	75,801		—		(2,090)		73,711
Mortgage-backed securities:
Pass-through certificates:
Government sponsored enterprises ("GSEs")	343,285		1		(29,146)		314,140
Real estate mortgage investment conduits ("REMICs"):
GSE	412,485		694		(11,315)		401,864

Total mortgage-backed securities	755,770		695		(40,461)		716,004
Other debt securities:
Municipal bonds	765		—		(3)		762

Corporate bonds	113,136		83		(2,269)		110,950

	113,901		83		(2,272)		111,712
Total debt securities available-for-sale	$	1,119,786	$	779	$	(44,824)	$	1,075,741


	December 31, 2023
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
U.S. Treasuries	$	44,364	$	15	$	—	$	44,379
U.S. Government agency securities	75,898		—		(1,990)		73,908
Mortgage-backed securities:
Pass-through certificates:
GSE	365,823		2		(28,285)		337,540
REMICs:
GSE	224,931		—		(11,831)		213,100

Total mortgage-backed securities	590,754		2		(40,116)		550,640
Other debt securities:
Municipal bonds	765		—		(2)		763
Corporate bonds	128,704		43		(2,973)		125,774

	129,469		43		(2,975)		126,537
Total debt securities available-for-sale	$	840,485	$	60	$	(45,081)	$	795,464


Available-for-sale	Amortized cost		Estimated fair value
Due in one year or less	$	284,961	$	282,465
Due after one year through five years	75,056		73,923
Due after five years through ten years	3,999		3,349

	$	364,016	$	359,737

Contractual maturities for mortgage-backed securities are not included above, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.

Certain securities available-for-sale are pledged or encumbered to secure borrowings under pledge agreements and repurchase agreements and for other purposes required by law. At March 31, 2024 and December 31, 2023, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $471.7 million and $272.9 million, respectively.

For the three months ended March 31, 2024, the Company had no proceeds on sales of debt securities available-for-sale, and no gross realized gains or losses. For the three months ended March 31, 2023, the Company had no proceeds on sales of debt securities available-for-sale, with gross realized gains of $1,000 related to the payoff of securities and no gross realized losses. During the three months ended March 31, 2024 and 2023, the Company recognized net gains of $699,000 and $512,000, respectively, on its trading securities portfolio.

Gross unrealized losses on mortgage-backed securities and other debt securities available-for-sale, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2024 and December 31, 2023, were as follows (in thousands):


	March 31, 2024
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
U.S. Treasuries	$	(1)	$	24,861	$	—	$	—	$	(1)	$	24,861
U.S. Government agency securities	—		—		(2,090)		73,711		(2,090)		73,711
Mortgage-backed securities:
Pass-through certificates:
GSE	—		33		(29,146)		314,045		(29,146)		314,078
REMICs:
GSE	(71)		96,616		(11,244)		202,983		(11,315)		299,599

Other debt securities:
Municipal bonds	(3)		762		—		—		(3)		762
Corporate bonds	(8)		18,056		(2,261)		36,628		(2,269)		54,684


Total	$	(83)	$	140,328	$	(44,741)	$	627,367	$	(44,824)	$	767,695


	December 31, 2023
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
U.S. Government agency securities	$	—	$	—	$	(1,990)	$	73,908	$	(1,990)	$	73,908
Mortgage-backed securities:
Pass-through certificates:
GSE	—		17		(28,285)		337,438		(28,285)		337,455
REMICs:
GSE	—		—		(11,831)		213,100		(11,831)		213,100

Other debt securities:
Municipal bonds	(2)		763		—		—		(2)		763
Corporate bonds	(7)		9,966		(2,966)		96,978		(2,973)		106,944
Total	$	(9)	$	10,746	$	(45,072)	$	721,424	$	(45,081)	$	732,170

The Company held 115 pass-through mortgage-backed securities issued or guaranteed by GSEs, 71 REMIC mortgage-backed securities issued or guaranteed by GSEs, six corporate bonds, and five U.S. Government agency securities that were in a continuous unrealized loss position of twelve months or greater at March 31, 2024. There were six pass-through mortgage-backed securities issued or guaranteed by GSEs, five corporate bonds, four REMIC mortgage-backed securities issued or guaranteed by GSEs, one municipal bond, and one U.S. Treasury that were in an unrealized loss position of less than twelve months at March 31, 2024. Substantially all securities referred to above were rated investment grade at March 31, 2024.

Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level such as credit deterioration of the issuer or collateral underlying the security. In assessing the impairment, the Company compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If it is determined that the decline in fair value was due to credit losses, an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. The Company did not record any allowance for credit losses on its available-for-sale debt securities as of March 31, 2024 or December 31, 2023.

The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company also assesses its intent to sell the securities (as well as the likelihood of a near-term recovery). If the Company intends to sell an available-for-sale debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the debt security is written down to its fair value and the write down is charged to the debt security’s fair value at the reporting date with any incremental impairment reported in earnings.

The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivable associated with debt securities available-for-sale totaled $3.1 million and $2.4 million, at March 31, 2024 and December 31, 2023, respectively, and was reported in accrued interest receivable on the consolidated balance sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable, as an allowance on possible uncollectible accrued interest is not warranted.

Equity securities totaled $11.0 million and $10.6 million at March 31, 2024 and December 31, 2023, respectively. Equity securities consisted of money market mutual funds, recorded at fair value of $1.0 million and $330,000 at March 31, 2024 and December 31, 2023, respectively, and an investment in a private SBA loan fund (the “SBA Loan Fund”) recorded at net asset value of $10.0 million and $10.3 million at March 31, 2024 and December 31, 2023, respectively. As the SBA Loan Fund operates as a private fund, its shares are not publicly traded and, therefore, have no readily determinable market value. The SBA Loan Fund was recorded at net asset value as a practical expedient for reporting fair value.