INVESTMENT SECURITIES (Tables)

3 Months Ended

Mar. 31, 2023

INVESTMENT SECURITIES

Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity

The following tables summarize the amortized cost and fair value of AFS and HTM debt securities and equity investments and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses recognized in earnings (in thousands):

			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At March 31, 2023	Cost		Gains		Losses		Fair Value
Available-for-Sale Securities:
U.S. Government agency securities	$	67,996	$	—	$	(7,760)	$	60,236
U.S. State and Municipal securities		11,611		—		(2,074)		9,537
Residential MBS		404,577		481		(69,384)		335,674
Commercial MBS		37,043		312		(2,056)		35,299
Asset-backed securities		3,627		—		(204)		3,423
Total securities available-for-sale	$	524,854	$	793	$	(81,478)	$	444,169
Held-to-Maturity Securities:
U.S. Treasury securities	$	29,863	$	—	$	(1,854)	$	28,009
U.S. State and Municipal securities		15,753		—		(2,096)		13,657
Residential MBS		447,803		—		(60,302)		387,501
Commercial MBS		8,106		—		(1,142)		6,964
Total securities held-to-maturity	$	501,525	$	—	$	(65,394)	$	436,131
Equity Investments:
CRA Mutual Fund	$	2,370	$	—	$	(283)	$	2,087
Total equity investment securities	$	2,370	$	—	$	(283)	$	2,087

			Gross		Gross
			Unrealized/		Unrealized/
	Amortized		Unrecognized		Unrecognized
At December 31, 2022	Cost		Gains		Losses		Fair Value
Available-for-Sale Securities:
U.S. Government agency securities	$	67,996	$	—	$	(8,624)	$	59,372
U.S. State and Municipal securities		11,649		—		(2,437)		9,212
Residential MBS		413,998		279		(75,729)		338,548
Commercial MBS		37,069		10		(2,229)		34,850
Asset-backed securities		3,953		—		(188)		3,765
Total securities available-for-sale	$	534,665	$	289	$	(89,207)	$	445,747
Held-to-Maturity Securities:
U.S. Treasury securities	$	29,852	$	—	$	(2,223)	$	27,629
U.S. State and Municipal securities		15,814		—		(2,609)		13,205
Residential MBS		456,648		—		(67,027)		389,621
Commercial MBS		8,111		—		(1,276)		6,835
Total securities held-to-maturity	$	510,425	$	—	$	(73,135)	$	437,290
Equity Investments:
CRA Mutual Fund	$	2,358	$	—	$	(310)	$	2,048
Total equity investment securities	$	2,358	$	—	$	(310)	$	2,048

Schedule of amortized cost and fair value of debt securities classified by contractual maturity

The tables below summarize, by contractual maturity, the amortized cost and fair value of debt securities. The tables do not include the effect of principal repayments or scheduled principal amortization. Equity securities, primarily investments in mutual funds, have been excluded from the table. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Held-to-Maturity				Available-for-Sale
At March 31, 2023	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within 1 year	$	—	$	—	$	—	$	—
After 1 year through 5 years		29,863		28,009		64,575		58,161
After 5 years through 10 years		9,428		8,195		25,554		24,246
After 10 years		462,234		399,927		434,725		361,762
Total Securities	$	501,525	$	436,131	$	524,854	$	444,169

	Held-to-Maturity				Available-for-Sale
At December 31, 2022	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within 1 year	$	—	$	—	$	—	$	—
After 1 year through 5 years		29,852		27,630		54,736		48,959
After 5 years through 10 years		9,505		8,130		36,043		32,872
After 10 years		471,068		401,530		443,886		363,916
Total Securities	$	510,425	$	437,290	$	534,665	$	445,747

Schedule of securities with unrealized/unrecognized losses

At March 31, 2023, debt securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands):

	Less than 12 Months				12 Months or More				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At March 31, 2023	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Available-for-Sale Securities:
U.S. Government agency securities	$	—	$	—	$	60,236	$	(7,760)	$	60,236	$	(7,760)
U.S. State and Municipal securities		—		—		9,537		(2,074)		9,537		(2,074)
Residential MBS		699		(32)		321,976		(69,352)		322,675		(69,384)
Commercial MBS		2,505		(116)		11,364		(1,940)		13,869		(2,056)
Asset-backed securities		—		—		3,423		(204)		3,423		(204)
Total securities available-for-sale	$	3,204	$	(148)	$	406,536	$	(81,330)	$	409,740	$	(81,478)
Held-to-Maturity Securities:
U.S. Treasury securities	$	—	$	—	$	28,009	$	(1,854)	$	28,009	$	(1,854)
U.S. State and Municipal securities		—		—		13,657		(2,096)		13,657		(2,096)
Residential MBS		69,642		(2,606)		317,859		(57,696)		387,501		(60,302)
Commercial MBS		—		—		6,964		(1,142)		6,964		(1,142)
Total securities held-to-maturity	$	69,642	$	(2,606)	$	366,489	$	(62,788)	$	436,131	$	(65,394)

At December 31, 2022, debt securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands):

	Less than 12 Months				12 Months or More				Total
			Unrealized/				Unrealized/				Unrealized/
	Estimated		Unrecognized		Estimated		Unrecognized		Estimated		Unrecognized
At December 31, 2022	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Available-for-Sale Securities:
U.S. Government agency securities	$	—	$	—	$	59,372	$	(8,624)	$	59,372	$	(8,624)
U.S. State and Municipal securities		2,546		(527)		6,666		(1,910)		9,212		(2,437)
Residential MBS		19,576		(1,654)		305,936		(74,075)		325,512		(75,729)
Commercial MBS		13,406		(198)		11,386		(2,031)		24,792		(2,229)
Asset-backed securities		—		—		3,765		(188)		3,765		(188)
Total securities available-for-sale	$	35,528	$	(2,379)	$	387,125	$	(86,828)	$	422,653	$	(89,207)
Held-to-Maturity Securities:
U.S. Treasury securities	$	18,683	$	(1,365)	$	8,946	$	(858)	$	27,629	$	(2,223)
Residential MBS		162,960		(19,625)		226,661		(47,402)		389,621		(67,027)
Commercial MBS		—		—		6,835		(1,276)		6,835		(1,276)
U.S. State and Municipal securities		13,205		(2,609)		—		—		13,205		(2,609)
Total securities held-to-maturity	$	194,848	$	(23,599)	$	242,442	$	(49,536)	$	437,290	$	(73,135)