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Securities
 12 Months Ended
Dec. 31, 2022
Securities [Abstract]  
Securities
4.
Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of December 31, 2022
                        
U.S. treasury
  $ 132,891     $ -     $ (11,233 )   $ 121,658  
Federal agency
    
248,419
      
-
      
(42,000
)
    
206,419
  
State & municipal
    
97,036
      
5
      
(14,190
)
    
82,851
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
454,177
      
9
      
(54,675
)
    
399,511
  
U.S. government agency securities
    
81,844
      
15
      
(7,676
)
    
74,183
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
498,021
      
9
      
(59,473
)
    
438,557
  
U.S. government agency securities
    
171,090
      
-
      
(21,284
)
    
149,806
  
Corporate
    
60,404
      
-
      
(6,164
)
    
54,240
  
Total AFS securities
  
$
1,743,882
    
$
38
    
$
(216,695
)
  
$
1,527,225
  
As of December 31, 2021
                                
U.S. treasury
   $ 73,016     $ 59     $ (6 )   $ 73,069
Federal agency
    
248,454
      
-
      
(8,523
)
    
239,931
  
State & municipal
    
95,531
      
116
      
(1,559
)
    
94,088
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
538,036
      
8,036
      
(5,589
)
    
540,483
  
U.S. government securities
    
65,339
      
1,108
      
(255
)
    
66,192
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
484,550
      
2,723
      
(5,113
)
    
482,160
  
U.S. government securities
    
139,380
      
939
      
(884
)
    
139,435
  
Corporate
    50,500       1,516       (13 )     52,003  
Total AFS securities
  
$
1,694,806
    
$
14,497
    
$
(21,942
)
  
$
1,687,361
  

There was no allowance for credit losses on AFS securities as of December 31, 2022 and 2021.

The components of net realized gains (losses) on AFS securities are as follows.

Years Ended December 31,
  
(In thousands)
2022
  
2021
  
2020
  
Gross realized gains
  
$
-
    
$
-
    
$
3
  
Gross realized (losses)
    
-
      
-
      
-
  
Net AFS realized gains (losses)
  
$
-
    
$
-
    
$
3
  

The Company had no net realized gains (losses) on AFS securities for the years ended December 31, 2022 and 2021. Included in net realized gains (losses) on AFS securities, the Company recorded gains from calls of approximately $3 thousand for the year ended December 31, 2020, which were reclassified out of AOCI and into earnings.

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of December 31, 2022
                        
Federal agency
  
$
100,000
    
$
-
    
$
(20,678
)
  
$
79,322
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
249,511
      
-
      
(36,819
)
    
212,692
  
U.S. government agency securities
    
18,396
      
4
      
(619
)
    
17,781
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
207,738
      
200
      
(14,876
)
    
193,062
  
U.S. government agency securities
    
66,628
      
-
      
(9,842
)
    
56,786
  
State & municipal
    
277,244
      
5
      
(24,245
)
    
253,004
  
Total HTM securities
  
$
919,517
    
$
209
    
$
(107,079
)
  
$
812,647
  
As of December 31, 2021
                                
Federal agency
  $ 100,000     $ -     $ (4,365 )   $ 95,635  
Mortgage-backed:
                                
Government-sponsored enterprises
    
161,462
      
2,232
      
(1,319
)
    
162,375
  
U.S. government agency securities
    
9,112
      
514
      
-
      
9,626
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
94,342
      
1,932
      
(129
)
    
96,145
  
U.S. government agency securities
    
44,473
      
336
      
(674
)
    
44,135
  
State & municipal
    
323,821
      
5,026
      
(1,503
)
    
327,344
  
Total HTM securities
  
$
733,210
    
$
10,040
    
$
(7,990
)
  
$
735,260
  

At December 31, 2022 and 2021, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises securities. There was no allowance for credit losses on HTM securities as of December 31, 2022 and 2021 because the expectation of nonrepayment of the amortized cost is zero, except for state & municipal securities, which such expected losses from nonrepayment are immaterial.

Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $4 thousand for the year ended December 31, 2022, approximately $29 thousand for the year ended December 31, 2021 and approximately $24 thousand for the year ended December 31, 2020.

During the year ended December 31, 2020, the Company sold HTM securities with an amortized cost of $1.0 million and resulted in a realized loss of $1 thousand. Due to significant deterioration in the creditworthiness of the issuer of the HTM securities, the circumstances caused the Company to change its intent to hold the HTM securities sold to maturity, which did not affect the Company’s intent to hold the remainder of the HTM portfolio to maturity. There were no sales of HTM securities in the years ended December 31, 2022 and 2021.

AFS and HTM securities with amortized costs totaling $1.73 billion at December 31, 2022 and $1.63 billion at December 31, 2021 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at December 31, 2022 and 2021, AFS and HTM securities with an amortized cost of $149.5 million and $162.1 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following table set forth information with regard to gains and (losses) on equity securities:

 
Years Ended
December 31,
  
(In thousands)
  
2022
    
2021
  
Net (losses) and gains recognized on equity securities
  
$
(1,135
)
  
$
537
  
Less: Net (losses) and gains recognized on equity securities sold during the period    
-
      
-
  
Unrealized (losses) and gains recognized on equity securities still held
  
$
(1,135
)
  
$
537
  

As of December 31, 2022 and 2021 the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of December 31, 2022 and 2021. There were no impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the years ended December 31, 2022 and 2021.

The following table set forth information with regard to contractual maturities of debt securities at December 31, 2022:

(In thousands)
  
Amortized
Cost
    
Estimated
Fair Value
  
AFS debt securities:
            
Within one year
  
$
682
    
$
675
  
From one to five years
    
402,807
      
361,295
  
From five to ten years
    
582,736
      
506,036
  
After ten years
    
757,657
      
659,219
  
Total AFS debt securities
  
$
1,743,882
    
$
1,527,225
  
HTM debt securities:
                
Within one year
  
$
49,986
    
$
49,979
  
From one to five years
    
92,443
      
89,979
  
From five to ten years
    
278,664
      
241,294
  
After ten years
    
498,424
      
431,395
  
Total HTM debt securities
  
$
919,517
    
$
812,647
  

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at December 31, 2022, 2021 and 2020.

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities had been in a continuous unrealized loss position:

 
Less Than 12 Months
    
12 Months or Longer
    
Total
  
(In thousands)
  
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
  
As of December 31, 2022
                                                      
AFS securities:
                                                      
U.S. treasury
  $ 55,616     $ (3,864 )     5     $ 66,042     $ (7,369 )     3     $ 121,658     $ (11,233 )     8
  
Federal agency
    
-
      
-
      
-
      
206,419
      
(42,000
)
    
16
      
206,419
      
(42,000
)
    
16
  
State & municipal
    3,679       (341 )     2       78,395       (13,849 )     64       82,074       (14,190 )     66  
Mortgage-backed
    
204,447
      
(15,048
)
    
149
      
267,926
      
(47,303
)
    
32
      
472,373
      
(62,351
)
    
181
  
Collateralized mortgage obligations
    
211,612
      
(14,458
)
    
77
      
374,376
      
(66,299
)
    
49
      
585,988
      
(80,757
)
    
126
  
Corporate
    34,434       (2,970 )     12       19,806       (3,194 )     6       54,240       (6,164 )     18  
Total securities with unrealized losses
  
$
509,788
    
$
(36,681
)
    
245
    
$
1,012,964
    
$
(180,014
)
    
170
    
$
1,522,752
    
$
(216,695
)
    
415
  
                                                                         
HTM securities:
                                                                        
Federal agency
  
$
-
    
$
-
      
-
    
$
79,322
    
$
(20,678
)
    
4
    
$
79,322
    
$
(20,678
)
    
4
  
Mortgage-backed
    91,417       (9,096 )     21       138,936       (28,342 )     13       230,353       (37,438 )     34  
Collateralized mortgage obligations
    191,644       (13,863 )     47       48,289       (10,855 )     8       239,933       (24,718 )     55  
State & municipal
    
110,727
      
(4,930
)
    
149
      
82,949
      
(19,315
)
    
76
      
193,676
      
(24,245
)
    
225
  
Total securities with unrealized losses
  
$
393,788
    
$
(27,889
)
    
217
    
$
349,496
    
$
(79,190
)
    
101
    
$
743,284
    
$
(107,079
)
    
318
  
                                                                         
As of December 31, 2021
                                                                        
AFS securities:
                                                                        
U.S. treasury
   $ 49,105     $ (6 )     2     $ -     $ -       -     $ 49,105     $ (6 )     2  
Federal agency
  

41,618
    

(1,846
)
    
4
    

198,313
    

(6,677
)
    
12
    

239,931
    

(8,523
)
    
16
  
State & municipal
     87,515       (1,559 )     61       -       -       -       87,515       (1,559 )     61  
Mortgage-backed
    
281,217
      
(4,319
)
    
24
      
39,491
      
(1,525
)
    
6
      
320,708
      
(5,844
)
    
30
  
Collateralized mortgage obligations
    
341,673
      
(5,495
)
    
34
      
15,774
      
(502
)
    
4
      
357,447
      
(5,997
)
    
38
  
Corporate
     9,987       (13 )     2       -       -       -       9,987       (13 )     2  
Total securities with unrealized losses
  
$
811,115
    
$
(13,238
)
    
127
    
$
253,578
    
$
(8,704
)
    
22
    
$
1,064,693
    
$
(21,942
)
    
149
  
                                                                         
HTM securities:
                                                                        
Federal agency
  $ -     $ -       -     $ 95,635     $ (4,365 )     4     $ 95,635     $ (4,365 )     4  
Mortgage-backed
     103,789       (1,319 )     10       -       -       -       103,789       (1,319 )     10  
Collateralized mortgage obligations     54,612       (803 )     6       -       -       -       54,612       (803 )     6  
State & municipal
    
52,783
      
(1,189
)
    
40
      
8,950
      
(314
)
    
10
      
61,733
      
(1,503
)
    
50
  
Total securities with unrealized losses
  
$
211,184
    
$
(3,311
)
    
56
    
$
104,585
    
$
(4,679
)
    
14
    
$
315,769
    
$
(7,990
)
    
70
  

The Company does not believe the AFS securities that were in an unrealized loss position as of December 31, 2022 and 2021, which consisted of 415 and 149 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of December 31, 2022 and 2021, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $4.2 million at December 31, 2022 and $3.9 million at December 31, 2021 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

None of the bank’s HTM debt securities were past due or on nonaccrual status as of December 31, 2022 and 2021. There was no accrued interest reversed against interest income for the years ended December 31, 2022 and 2021 as all securities remained on accrual status. In addition, there were no collateral-dependent HTM debt securities as of December 31, 2022 and 2021. As of December 31, 2022 and 2021, 70% and 56%, respectively, of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of December 31, 2022 and 2021. The remaining HTM debt securities at December 31, 2022 and 2021 were comprised of state and municipal obligations generally with bond ratings of A to AAA. Utilizing the CECL approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of December 31, 2022 and 2021. AIR on HTM debt securities totaled $3.8 million at December 31, 2022 and $2.7 million at December 31, 2021 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.