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INVESTMENTS
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Trading Securities

Trading securities are reported on the Company's consolidated statements of condition at fair value. As of March 31, 2023 and December 31, 2022, the fair value of the Company's trading securities were $4.0 million. These securities are held in a rabbi trust account and invested in mutual funds. The trading securities will be used for future payments associated with the Company's deferred compensation plan for eligible employees and directors.
AFS Debt Securities

AFS debt securities are reported on the Company's consolidated statements of condition at fair value. The following table summarizes the amortized cost, estimated fair value, and unrealized gains (losses) of AFS debt securities, as of the dates indicated:
(In thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
March 31, 2023    
Obligations of states and political subdivisions$49,142 $41 $(132)$49,051 
MBS issued or guaranteed by U.S. government-sponsored enterprises585,249 214 (77,632)507,831 
CMO issued or guaranteed by U.S. government-sponsored enterprises117,552 — (11,319)106,233 
Subordinated corporate bonds
25,678 — (2,370)23,308 
Total AFS debt securities$777,621 $255 $(91,453)$686,423 
December 31, 2022    
Obligations of states and political subdivisions$49,678 $11 $(463)$49,226 
MBS issued or guaranteed by U.S. government-sponsored enterprises598,845 131 (84,957)514,019 
CMO issued or guaranteed by U.S. government-sponsored enterprises122,760 — (13,413)109,347 
Subordinated corporate bonds25,677 3 (2,397)23,283 
Total AFS debt securities$796,960 $145 $(101,230)$695,875 

As of March 31, 2023 and December 31, 2022, there was no allowance carried on AFS debt securities.
In June of 2022, the Company transferred securities with a fair value of $520.3 million from AFS to HTM. The unrealized losses on the AFS debt securities at the time of transfer were $72.1 million, pre-tax, and were reported within AOCI. These unrealized losses are being amortized over the remaining life of the securities from AOCI into interest income on the consolidated statements of income. At March 31, 2023 the net unrealized losses on the transferred securities reported within AOCI were $50.9 million, net of a deferred tax asset of $13.9 million and at December 31, 2022 were $52.2 million, net of a deferred tax asset of $14.3 million.

The net unrealized losses on AFS debt securities reported within AOCI (excluding the aforementioned securities transferred from AFS to HTM) at March 31, 2023, were $71.6 million, net of a deferred tax asset of $19.6 million and at December 31, 2022 were $79.4 million, net of a deferred tax asset of $21.7 million.

For the three months ended March 31, 2023 and 2022, the Company did not sell any AFS debt securities.
The following table presents the Company's AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, segregated by the length of time the securities have been in a continuous loss position, as of the dates indicated:  
 Less Than 12 Months12 Months or MoreTotal
(In thousands, except number of holdings)
Number of
Holdings		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
March 31, 2023      
Obligations of states and political subdivisions54 $19,151 $(48)$10,384 $(84)$29,535 $(132)
MBS issued or guaranteed by U.S. government-sponsored enterprises172 3,310 (80)488,861 (77,552)492,171 (77,632)
CMO issued or guaranteed by U.S. government-sponsored enterprises62 2,506 (56)103,727 (11,263)106,233 (11,319)
Subordinated corporate bonds14 6,179 (412)17,129 (1,958)23,308 (2,370)
Total AFS debt securities302 $31,146 $(596)$620,101 $(90,857)$651,247 $(91,453)
December 31, 2022      
Obligations of states and political subdivisions83 42,276 (463)— — 42,276 (463)
MBS issued or guaranteed by U.S. government-sponsored enterprises175 118,290 (11,521)381,355 (73,436)499,645 (84,957)
CMO issued or guaranteed by U.S. government-sponsored enterprises64 47,340 (4,589)62,007 (8,824)109,347 (13,413)
Subordinated corporate bonds13 7,687 (384)14,593 (2,013)22,280 (2,397)
Total AFS debt securities335 $215,593 $(16,957)$457,955 $(84,273)$673,548 $(101,230)

For the three months ended March 31, 2023 and 2022, the unrealized losses on the Company's AFS debt securities have not been recognized into income because management does not intend to sell and it is not more-likely-than-not it will be required to sell any of the AFS debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and were not reflective of credit events. Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. AFS municipal debt holdings are comprised solely of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. Subordinated corporate bonds are primarily comprised of investment grade senior notes and senior subordinated notes of other financial institutions.

At March 31, 2023 and December 31, 2022, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $2.0 million and $1.9 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

The amortized cost and estimated fair values of the Company's AFS debt securities by contractual maturity at March 31, 2023, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-related securities are shown in total, as their maturities are highly variable.
(In thousands)Amortized
Cost		Fair
Value
Due in one year or less$1,002 $1,003 
Due after one year through five years13,612 12,323 
Due after five years through ten years60,206 59,032 
Due after ten years— — 
Subtotal74,820 72,358 
Mortgage-related securities702,801 614,065 
Total$777,621 $686,423 

HTM Debt Securities

HTM debt securities are reported on the Company's consolidated statements of condition at amortized cost. The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of HTM debt securities as of the dates indicated:
(In thousands)
Amortized
Cost(1)
Unrealized
Gains		Unrealized
Losses		Fair
Value
March 31, 2023
Obligations of U.S. government-sponsored enterprises$7,491 $— $(507)$6,984 
Obligations of states and political subdivisions56,049 1,683 (760)56,972 
MBS issued or guaranteed by U.S. government-sponsored enterprises314,589 — (18,932)295,657 
CMO issued or guaranteed by U.S. government-sponsored enterprises143,030 — (10,628)132,402 
Subordinated corporate bonds18,915 607 (538)18,984 
Total HTM debt securities $540,074 $2,290 $(31,365)$510,999 
December 31, 2022
Obligations of U.S. government-sponsored enterprises$7,457 $— $(777)$6,680 
Obligations of states and political subdivisions55,978 431 (1,610)54,799 
MBS issued or guaranteed by U.S. government-sponsored enterprises317,406 — (24,766)292,640 
CMO issued or guaranteed by U.S. government-sponsored enterprises145,069 — (13,724)131,345 
Subordinated corporate bonds20,673 332 (276)20,729 
Total HTM debt securities$546,583 $763 $(41,153)$506,193 
(1) Amortized cost presented above includes unamortized unrealized losses for March 31, 2023 and December 31, 2022: $1.1 million in obligations of U.S. government-sponsored enterprises for both periods, $6.0 million and $6.1 million in obligations of state and political subdivisions, $37.4 million and $38.4 million in mortgage-backed securities, $20.1 million and $20.7 million in collateralized mortgage obligations and $108,000 and $117,000 in subordinated corporate bonds.
Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress. The principal and interest payments on agency-guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. HTM municipal debt holdings are comprised solely of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. Subordinated corporate bonds are primarily comprised of investment grade senior notes and senior subordinated notes of other financial institutions. For the three months ended March 31, 2023 and 2022, the Company recorded a provision for credit losses on its HTM debt securities portfolio of $1.8 million and $0, respectively. The provision for credit losses recorded during the three months ended March 31, 2023 was due to the write-off of a Signature Bank subordinated corporate bond, which was designated as HTM and previously carried no ACL, as the bank failed during the quarter. Additionally, the Company wrote-off accrued interest receivable due from the Signature Bank subordinated corporate bond of $8,000 during the three months ended March 31, 2023, and it was recorded as a reversal of interest income on the consolidated statements of income. The Company did not write-off any accrued interest for the three months ended March 31, 2022.

The Company evaluated its HTM debt securities with an amortized cost as of March 31, 2023 and December 31, 2022, and determined that the expected credit loss on its HTM portfolio was immaterial, and therefore it did not carry an ACL at either date.

As of March 31, 2023 and December 31, 2022, none of the Company's HTM debt securities were past due or on non-accrual status. For the three months ended March 31, 2023 and 2022, the Company did not recognize any interest income on non-accrual HTM debt securities. At March 31, 2023 and December 31, 2022, total accrued interest receivable on HTM debt securities, which has been excluded from reported amortized cost basis on HTM debt securities, was $1.5 million and $1.7 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the HTM debt securities accrued interest receivable at either date.

The amortized cost and estimated fair values of HTM debt securities by contractual maturity at March 31, 2023 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-related securities are shown in total, as their maturities are highly variable.
(In thousands)Amortized
Cost		Fair
Value
Due in one year or less$— $— 
Due after one year through five years1,285 1,272 
Due after five years through ten years20,527 19,720 
Due after ten years60,643 61,947 
Subtotal82,455 82,939 
Mortgage-related securities457,619 428,060 
Total$540,074 $510,999 

AFS and HTM Debt Securities Pledged

At March 31, 2023 and December 31, 2022, AFS and HTM debt securities with an amortized cost of $630.2 million and $821.9 million and estimated fair values of $560.3 million and $726.5 million, respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law.
Other Investments

The Company's FHLBB and FRB common stock are reported at cost within other investments on the consolidated statements of condition. The Company evaluates these investments for impairment based on the ultimate recoverability of the par value. The Company did not record any impairment on its FHLBB and FRB stock for the three months ended March 31, 2023 and 2022.

The following table summarizes the Company's investment in FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:
(In thousands)March 31,
2023		December 31,
2022
FHLBB$14,040 $7,339 
FRB5,374 5,374 
Total other investments$19,414 $12,713