
	December 31, 2022
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-Sale Debt Securities
U.S. Treasury securities and obligations of U.S. government agencies	$	13,813	$	173	$	(339)	$	13,647
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	1,561,197		539		(223,083)		1,338,653
Private mortgage-backed securities and collateralized mortgage obligations	179,148		70		(12,831)		166,387
Collateralized loan obligations	313,155		—		(10,251)		302,904
Obligations of state and political subdivisions	29,350		122		(1,731)		27,741
Other debt securities	22,640		197		(427)		22,410
Totals	$	2,119,303	$	1,101	$	(248,662)	$	1,871,742

Held-to-Maturity Debt Securities
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	$	747,408	$	64	$	(129,731)	$	617,741


Totals	$	747,408	$	64	$	(129,731)	$	617,741


	December 31, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-Sale Debt Securities
U.S. Treasury securities and obligations of U.S. government agencies	$	6,466	$	316	$	(3)	$	6,779
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	1,234,721		8,308		(20,309)		1,222,720
Private mortgage-backed securities and collateralized mortgage obligations	88,096		1,091		(420)		88,767
Collateralized loan obligations	292,751		63		(124)		292,690
Obligations of state and political subdivisions	31,624		1,740		(1)		33,363
Totals	$	1,653,658	$	11,518	$	(20,857)	$	1,644,319

Held-to-Maturity Debt Securities
Mortgage-backed securities of U.S. government-sponsored entities	$	638,640	$	3,828	$	(15,070)	$	627,398


Totals	$	638,640	$	3,828	$	(15,070)	$	627,398

During 2022, debt securities with a fair value of $515.2 million obtained in bank acquisitions were sold. No gain or loss was recognized on these sales, and there were no other sales of securities in 2022. During 2021, debt securities with a fair value of $102.1 million were sold with gross gains of $0.3 million and gross losses of $0.6 million. Debt securities with a fair value of $96.7 million were sold during 2020, with gross gains of $2.4 million and gross losses of $1.3 million. Also included in “Securities gains (losses) net” are decreases of $1.1 million and $0.2 million in 2022 and 2021, respectively, and an increase of $0.1 million in 2020 in the value of an investment in shares of a mutual fund that invests in CRA-qualified debt securities.

During the first quarter of 2021, the Company reclassified debt securities with an amortized cost of $210.8 million from available-for-sale to held-to-maturity, as it has the ability and intent to hold these securities to maturity. These securities had net unrealized gains of $0.8 million at the date of transfer, which will continue to be reported in accumulated other comprehensive income and will be amortized over the remaining life of the securities as an adjustment of yield. The effect on interest income of the amortization of net unrealized gains is offset by the amortization of the premium on the securities transferred.

The amortized cost and fair value of securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	Held-to-Maturity				Available-for-Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	—	$	—	$	1,990	$	2,087
Due after one year through five years	—		—		17,509		17,419
Due after five years through ten years	—		—		3,123		3,030
Due after ten years	—		—		20,541		18,852
	—		—		43,163		41,388

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	$	747,408	$	617,741	$	1,561,197	$	1,338,653
Private mortgage-backed securities and collateralized mortgage obligations	—		—		179,148		166,387
Collateralized loan obligations	—		—		313,155		302,904
Other debt securities	—		—		22,640		22,410
Totals	$	747,408	$	617,741	$	2,119,303	$	1,871,742

The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flows analyses, using observable market data where available. The tables below indicate the fair value of available-for-sale debt securities with unrealized losses for which no allowance for credit losses has been recorded.


	December 31, 2022
	Less than 12 months				12 months or longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government agencies	$	3,788	$	(328)	$	249	$	(11)	$	4,037	$	(339)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	646,651		(54,956)		667,520		(168,127)		1,314,171		(223,083)
Private mortgage-backed securities and collateralized mortgage obligations	130,488		(8,255)		25,234		(4,576)		155,722		(12,831)
Collateralized loan obligations	242,370		(8,343)		60,534		(1,908)		302,904		(10,251)
Obligations of state and political subdivisions	23,804		(1,656)		425		(75)		24,229		(1,731)
Other debt securities	11,459		(427)		—		—		11,459		(427)
Totals	$	1,058,560	$	(73,965)	$	753,962	$	(174,697)	$	1,812,522	$	(248,662)


	December 31, 2021
	Less than 12 months				12 months or longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government agencies	$	97	$	(1)	$	245	$	(2)	$	342	$	(3)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	955,881		(19,575)		11,953		(734)		967,834		(20,309)
Private mortgage-backed securities and collateralized mortgage obligations	33,640		(173)		9,628		(247)		43,268		(420)
Collateralized loan obligations	123,202		(81)		9,461		(43)		132,663		(124)
Obligations of state and political subdivisions	499		(1)		—		—		499		(1)
Totals	$	1,113,319	$	(19,831)	$	31,287	$	(1,026)	$	1,144,606	$	(20,857)

At December 31, 2022, the Company had unrealized losses of $223.1 million on mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $1.3 billion. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The implied government guarantee of principal and interest payments and the high credit rating of the portfolio provide sufficient basis for the current expectation that there is no risk of loss if default were to occur. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at December 31, 2022, no allowance for credit losses has been recorded.

At December 31, 2022, the Company had $12.8 million of unrealized losses on private label residential and commercial mortgage-backed securities and collateralized mortgage obligations having a fair value of $155.7 million. The securities have average credit support of 24%. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at December 31, 2022, no allowance for credit losses has been recorded.

At December 31, 2022, the Company had $10.3 million of unrealized losses in floating rate collateralized loan obligations (“CLOs”) having a fair value of $302.9 million. CLOs are special purpose vehicles and those in which the Company has invested acquire nearly all first-lien, broadly syndicated corporate loans across a diversified band of industries while providing support to senior tranche investors. As of December 31, 2022, all positions held by the Company are in AAA and AA tranches, with average credit support of 38% and 25% respectively. The Company evaluates the securities for potential credit losses by modeling expected loan-level defaults, recoveries, and prepayments for each CLO security. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movement and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at December 31, 2022, no allowance for credit losses has been recorded.

At December 31, 2022, the Company had $1.7 million of unrealized losses on municipal securities having a fair value of $24.2 million. These securities are highly rated issuances of state or local municipalities, all of which are continuing to make timely contractual payments. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. As a result, as of December 31, 2022, no allowance for credit losses has been recorded.

At December 31, 2022, the Company had $0.4 million of unrealized losses on floating rate student loan asset-backed securities having a fair value of $11.5 million. These securities were issued under the U.S. Department of Education’s Federal Family Education Loan program, which generally provides a minimum of 97% U.S. Department of Education guarantee of principal. These securities also have added credit enhancement through over-collateralization and have an average credit support of 8%. Based on the assessment of all relevant factors, the Company believes any unrealized loss positions are a function of changes in investment spreads and interest rate movement and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at December 31, 2022, no allowance for credit losses has been recorded.

All HTM debt securities are issued by government-sponsored entities, which are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. While the potential for default on these securities may be

something greater than zero, the long history with no credit losses, the implied government guarantee of principal and interest payments and the high credit rating of the HTM portfolio provide sufficient basis for the current expectation that there is no risk of loss if default were to occur. As a result, as of December 31, 2022, no allowance for credit losses has been recorded.

Included in Other Assets at December 31, 2022 is $45.6 million of Federal Home Loan Bank and Federal Reserve Bank stock stated at par value. The Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of these cost method investment securities. Accrued interest receivable on AFS and HTM debt securities of $7.0 million and $1.3 million, respectively, at December 31, 2022, and $3.4 million and $1.0 million, respectively, at December 31, 2021, is included in Other Assets. Also included in Other Assets is an investment in a CRA-qualified mutual fund carried at fair value of $8.2 million and $9.3 million at December 31, 2022 and December 31, 2021, respectively.