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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2023
Investment Securities Available For Sale [Abstract]  
INVESTMENT SECURITIES AVAILABLE FOR SALE

2. INVESTMENT SECURITIES

A summary of amortized cost and approximate fair value of investment securities available for sale and held to maturity included in the Consolidated Statements of Condition as of September 30, 2023 and December 31, 2022 follows:

 

 

 

September 30, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Allowance

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

for

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Credit Losses

 

 

Value

 

Securities Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S government-sponsored agencies

 

$

244,789

 

 

$

—

 

 

$

(61,374

)

 

$

—

 

 

$

183,415

 

   Mortgage-backed securities–residential

 

 

362,595

 

 

 

9

 

 

 

(57,552

)

 

 

—

 

 

 

305,052

 

   SBA pool securities

 

 

28,250

 

 

 

—

 

 

 

(4,516

)

 

 

—

 

 

 

23,734

 

   State and political subdivisions

 

 

650

 

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

649

 

   Corporate bond

 

 

10,000

 

 

 

—

 

 

 

(1,845

)

 

 

—

 

 

 

8,155

 

      Total securities available for sale

 

$

646,284

 

 

$

9

 

 

$

(125,288

)

 

$

—

 

 

$

521,005

 

Securities Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government-sponsored agencies

 

$

40,000

 

 

$

—

 

 

$

(4,790

)

 

$

—

 

 

$

35,210

 

   Mortgage-backed securities–residential

 

 

68,940

 

 

 

—

 

 

 

(12,949

)

 

 

—

 

 

 

55,991

 

      Total securities held to maturity

 

$

108,940

 

 

$

—

 

 

$

(17,739

)

 

$

—

 

 

$

91,201

 

 

 

 

December 31, 2022

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Allowance

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

for

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Credit Losses

 

 

Value

 

Securities Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S government-sponsored agencies

 

$

244,774

 

 

$

—

 

 

$

(54,232

)

 

$

—

 

 

$

190,542

 

   Mortgage-backed securities–residential

 

 

372,471

 

 

 

27

 

 

 

(46,760

)

 

 

—

 

 

 

325,738

 

   SBA pool securities

 

 

31,934

 

 

 

1

 

 

 

(4,508

)

 

 

—

 

 

 

27,427

 

   State and political subdivisions

 

 

1,866

 

 

 

—

 

 

 

(17

)

 

 

—

 

 

 

1,849

 

   Corporate bond

 

 

10,000

 

 

 

—

 

 

 

(908

)

 

 

—

 

 

 

9,092

 

      Total securities available for sale

 

$

661,045

 

 

$

28

 

 

$

(106,425

)

 

$

—

 

 

$

554,648

 

Securities Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government-sponsored agencies

 

$

40,000

 

 

$

—

 

 

$

(4,563

)

 

$

—

 

 

$

35,437

 

   Mortgage-backed securities–residential

 

 

62,291

 

 

 

—

 

 

 

(10,541

)

 

 

—

 

 

 

51,750

 

      Total securities held to maturity

 

$

102,291

 

 

$

—

 

 

$

(15,104

)

 

$

—

 

 

$

87,187

 

 

The following table presents a summary of the gross gains, gross losses and net tax benefit related to proceeds on sales of securities available for sale for the nine months ended September 30, 2023 and 2022:

 

(In thousands)

 

Sept 30, 2023

 

 

Sept 30, 2022

 

Proceeds from sales

 

$

—

 

 

$

118,972

 

Gross gains

 

 

—

 

 

 

3

 

Gross losses

 

 

—

 

 

 

(6,612

)

Net tax benefit

 

 

—

 

 

 

1,581

 

 

The following tables present the Company’s available for sale and held to maturity securities with continuous unrealized losses and the approximate fair value of these investments as of September 30, 2023 and December 31, 2022.

 

 

 

September 30, 2023

 

 

 

Duration of Unrealized Loss

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Approximate

 

 

 

 

 

Approximate

 

 

 

 

 

Approximate

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(In thousands)

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

Securities Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government-sponsored agencies

 

$

—

 

 

$

—

 

 

$

183,415

 

 

$

(61,374

)

 

$

183,415

 

 

$

(61,374

)

   Mortgage-backed securities residential

 

 

50,612

 

 

 

(3,313

)

 

 

202,581

 

 

 

(54,239

)

 

 

253,193

 

 

 

(57,552

)

   SBA pool securities

 

 

443

 

 

 

(1

)

 

 

22,932

 

 

 

(4,515

)

 

 

23,375

 

 

 

(4,516

)

   State and political subdivisions

 

 

—

 

 

 

—

 

 

 

649

 

 

 

(1

)

 

 

649

 

 

 

(1

)

   Corporate bond

 

 

—

 

 

 

—

 

 

 

8,155

 

 

 

(1,845

)

 

 

8,155

 

 

 

(1,845

)

Total securities available for sale

 

$

51,055

 

 

$

(3,314

)

 

$

417,732

 

 

$

(121,974

)

 

$

468,787

 

 

$

(125,288

)

Securities Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government-sponsored agencies

 

$

—

 

 

$

—

 

 

$

35,210

 

 

$

(4,790

)

 

$

35,210

 

 

$

(4,790

)

   Mortgage-backed securities residential

 

 

9,318

 

 

 

(573

)

 

 

46,673

 

 

 

(12,376

)

 

 

55,991

 

 

 

(12,949

)

Total securities held to maturity

 

$

9,318

 

 

$

(573

)

 

$

81,883

 

 

$

(17,166

)

 

$

91,201

 

 

$

(17,739

)

Total securities

 

$

60,373

 

 

$

(3,887

)

 

$

499,615

 

 

$

(139,140

)

 

$

559,988

 

 

$

(143,027

)

 

 

 

December 31, 2022

 

 

 

Duration of Unrealized Loss

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Approximate

 

 

 

 

 

Approximate

 

 

 

 

 

Approximate

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(In thousands)

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

Securities Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government-sponsored agencies

 

$

—

 

 

$

—

 

 

$

190,542

 

 

$

(54,232

)

 

$

190,542

 

 

$

(54,232

)

   Mortgage-backed securities residential

 

 

82,907

 

 

 

(4,082

)

 

 

174,557

 

 

 

(42,678

)

 

 

257,464

 

 

 

(46,760

)

   SBA pool securities

 

 

3,377

 

 

 

(332

)

 

 

23,256

 

 

 

(4,176

)

 

 

26,633

 

 

 

(4,508

)

   State and political subdivisions

 

 

1,579

 

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

1,579

 

 

 

(17

)

   Corporate bond

 

 

9,092

 

 

 

(908

)

 

 

—

 

 

 

—

 

 

 

9,092

 

 

 

(908

)

Total securities available for sale

 

$

96,955

 

 

$

(5,339

)

 

$

388,355

 

 

$

(101,086

)

 

$

485,310

 

 

$

(106,425

)

Securities Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   U.S. government-sponsored agencies

 

$

13,174

 

 

$

(1,826

)

 

$

22,263

 

 

$

(2,737

)

 

$

35,437

 

 

$

(4,563

)

   Mortgage-backed securities residential

 

 

15,635

 

 

 

(3,585

)

 

 

36,115

 

 

 

(6,956

)

 

 

51,750

 

 

 

(10,541

)

Total securities held to maturity

 

$

28,809

 

 

$

(5,411

)

 

$

58,378

 

 

$

(9,693

)

 

$

87,187

 

 

$

(15,104

)

Total securities

 

$

125,764

 

 

$

(10,750

)

 

$

446,733

 

 

$

(110,779

)

 

$

572,497

 

 

$

(121,529

)

 

Available for sale and held to maturity securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statements of Income when management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of securities currently in a continuous loss position continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at September 30, 2023. Substantially all of the investment securities are backed by loans guaranteed by either U.S. government agencies or U.S government-sponsored entities, and management believes that default is highly unlikely given the lack of historical credit losses and governmental backing. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. Therefore, no allowance for credit losses was recorded at September 30, 2023.

The Company has an investment in a CRA investment fund with a fair value of $12.6 million at September 30, 2023. This investment is classified as an equity security in our Consolidated Statements of Condition. This security had a loss of $404,000 for the three months and nine months ended September 30, 2023. This amount is included in the fair value adjustment for CRA equity security on the Consolidated Statements of Income.