Equity Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Debt Securities Available-for-Sale

The following is a comparative summary of mortgage-backed securities and other debt securities available-for-sale at March 31, 2026, and December 31, 2025 (in thousands):


	March 31, 2026
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value

U.S. Government agency securities	$	587	$	—	$	(48)	$	539
Mortgage-backed securities:
Pass-through certificates:
Government sponsored enterprises ("GSEs")	454,004		1,104		(11,402)		443,706
Real estate mortgage investment conduits ("REMICs"):
GSE	885,039		4,726		(3,900)		885,865

Total mortgage-backed securities	1,339,043		5,830		(15,302)		1,329,571
Other debt securities:
Municipal bonds	614		1		(1)		614

Corporate bonds	47,699		208		(129)		47,778

Total other debt securities	48,313		209		(130)		48,392
Total debt securities available-for-sale	$	1,387,943	$	6,039	$	(15,480)	$	1,378,502


	December 31, 2025
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value

U.S. Government agency securities	$	607	$	—	$	(49)	$	558
Mortgage-backed securities:
Pass-through certificates:
GSE	515,162		2,508		(10,721)		506,949
REMICs:
GSE	870,020		6,123		(4,044)		872,099

Total mortgage-backed securities	1,385,182		8,631		(14,765)		1,379,048
Other debt securities:
Municipal bonds	614		1		(1)		614
Corporate bonds	32,101		268		(170)		32,199

Total other debt securities	32,715		269		(171)		32,813
Total debt securities available-for-sale	$	1,418,504	$	8,900	$	(14,985)	$	1,412,419

The following is a summary of the expected maturity distribution of debt securities available-for-sale, other than mortgage-backed securities, at March 31, 2026 (in thousands):


Available-for-sale	Amortized cost		Estimated fair value
Due in one year or less	$	4,307	$	4,311
Due after one year through five years	34,593		34,572
Due after five years through ten years	10,000		10,049

	$	48,900	$	48,932

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, 2026, and December 31, 2025, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $704.0 million and $686.3 million, respectively.

For the three months ended March 31, 2026, the Company had no proceeds on sales of debt securities available-for-sale, with no gross realized gains and gross realized losses of $2,000 related to calls of securities. For the three months ended March 31, 2025, the Company had no proceeds on sales of debt securities available-for-sale, with no gross realized gains or losses. The Company recognized net losses of $254,000 and $299,000 on its trading securities portfolio during the three months ended March 31, 2026 and 2025, respectively.

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, 2026, and December 31, 2025, were as follows (in thousands):


	March 31, 2026
	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	$	—	$	—	$	(48)	$	540	$	(48)	$	540
Mortgage-backed securities:
Pass-through certificates:
GSE	(751)		171,356		(10,651)		173,258		(11,402)		344,614
REMICs:
GSE	(89)		40,714		(3,811)		113,963		(3,900)		154,677

Other debt securities:
Municipal bonds	(1)		483		—		—		(1)		483
Corporate bonds	(45)		1,955		(84)		3,915		(129)		5,870


Total	$	(886)	$	214,508	$	(14,594)	$	291,676	$	(15,480)	$	506,184


	December 31, 2025
	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	$	—	$	—	$	(49)	$	558	$	(49)	$	558
Mortgage-backed securities:
Pass-through certificates:
GSE	(92)		51,775		(10,629)		189,412		(10,721)		241,187
REMICs:
GSE	(12)		7,980		(4,032)		120,616		(4,044)		128,596

Other debt securities:
Municipal bonds	(1)		482		—		—		(1)		482
Corporate bonds	(5)		1,995		(165)		18,837		(170)		20,832
Total	$	(110)	$	62,232	$	(14,875)	$	329,423	$	(14,985)	$	391,655

The Company held 90 pass-through mortgage-backed securities issued or guaranteed by GSEs, 61 REMIC mortgage-backed securities issued or guaranteed by GSEs, one corporate bond, and one U.S. Government agency security that were in a continuous unrealized loss position of twelve months or greater at March 31, 2026. There was 14 pass-through mortgage-backed security issued or guaranteed by a GSE, three REMIC mortgage-backed securities issued or guaranteed by GSEs, one municipal bond, and one corporate bond that were in an unrealized loss position of less than twelve months at March 31, 2026. Substantially all securities referred to above were rated investment grade at March 31, 2026.

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, 2026 or December 31, 2025.

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 $4.1 million and $4.2 million at March 31, 2026, and December 31, 2025, 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

Equity securities totaled $5.0 million at both March 31, 2026, and December 31, 2025, and consisted of an investment in a private SBA loan fund (the “SBA Loan Fund”) recorded at net asset value. As the SBA Loan Fund operates as a private fund, its shares are not publicly traded and, therefore, has no readily determinable market value. The SBA Loan Fund was recorded at net asset value as a practical expedient for reporting fair value.

Northfield Bancorp, Inc. 10-Q