INVESTMENT AND MORTGAGE-BACKED SECURITIES

6 Months Ended

Jun. 30, 2021

INVESTMENT AND MORTGAGE-BACKED SECURITIES

INVESTMENT AND MORTGAGE-BACKED SECURITIES

7.INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following tables summarize the major categories of securities owned by the Company as of the dates indicated:

	June 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
Agency notes	$	82,474	$	—	$	(1,439)	$	81,035
Treasury securities		167,984		114		(100)		167,998
Corporate securities		103,740		4,380		(56)		108,064
Pass-through MBS issued by GSEs		326,786		6,908		(1,945)		331,749
Agency Collateralized Mortgage Obligations ("CMOs")		528,649		6,532		(3,691)		531,490
State and municipal obligations		41,329		231		(108)		41,452
Total securities available-for-sale	$	1,250,962	$	18,165	$	(7,339)	$	1,261,788

	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
Agency notes	$	47,500	$	12	$	(91)	$	47,421
Corporate securities		62,021		2,440		—		64,461
Pass-through MBS issued by GSEs		135,842		7,672		(31)		143,483
Agency CMOs		274,898		8,674		(76)		283,496
Total securities available-for-sale	$	520,261	$	18,798	$	(198)	$	538,861

As a result of the Merger, the Company acquired $652.0 million of securities available-for-sale on the Merger Date.

The carrying amount of securities pledged as collateral was $505.5 million and $99.4 million at June 30, 2021 and December 31, 2020, respectively.

At June 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.

The amortized cost and fair value of debt securities are shown by contractual maturity.  Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Securities not due at a single maturity date are shown separately.  

	June 30, 2021
	Amortized		Fair
(In thousands)	Cost		Value
Available-for-sale
Within one year	$	949	$	958
One to five years		174,565		174,660
Five to ten years		212,080		215,115
Beyond ten years		7,933		7,816
Pass-through MBS issued by GSEs and agency CMO		855,435		863,239
Total	$	1,250,962	$	1,261,788

The following table presents the information related to sales of securities available-for-sale as of the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2021		2020		2021		2020
Agency Notes:
Proceeds	$	—	$	273	$	—	$	273
Gross gains		—		—		—		—
Tax expense on gain		—		—		—		—
Gross losses		—		—		—		—
Tax benefit on loss		—		—		—		—
Corporate Securities:
Proceeds		3,519		25,403		50,273		25,403
Gross gains		20		1,344		729		1,344
Tax expense on gain		6		423		232		423
Gross losses		—		—		41		—
Tax benefit on loss		—		—		13		—
Pass through MBS issued by GSEs:
Proceeds		—		33,195		26,823		33,195
Gross gains		—		1,790		187		1,790
Tax expense on gain		—		563		59		563
Gross losses		—		—		35		—
Tax benefit on loss		—		—		11		—
Agency CMOs:
Proceeds		—		—		41,324		4,199
Gross gains		—		—		268		8
Tax expense on gain		—		—		85		3
Gross losses		—		—		44		—
Tax benefit on loss		—		—		14		—
State and municipal obligations:
Proceeds		—		—		19,657		—
Gross gains		—		—		143		—
Tax expense on gain		—		—		45		—

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2021		2020		2021		2020
Proceeds:
Marketable equity securities	$	—	$	136	$	6,101	$	273

There were no gains on marketable equity securities for the three months ended June 30, 2021. Net gain of $436 thousand was recognized on marketable equity securities for the three months ended June 30, 2020. Net gain (loss) of $131 thousand and $(36) thousand were recognized on marketable equity securities for the six months ended June 30, 2021 and 2020, respectively. Marketable equity securities were fully liquidated in connection with the termination of the BMP.

The following table summarizes the gross unrealized losses and fair value of investment and mortgage-backed securities aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated:

	June 30, 2021
	Less than 12				12 Consecutive
	Consecutive Months				Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Losses		Value		Losses		Value		Losses
Securities available-for-sale:
Agency notes	$	81,035	$	1,439	$	—	$	—	$	81,035	$	1,439
Treasury securities		70,963		100		—		—		70,963		100
Corporate securities		6,855		56		—		—		6,855		56
Pass-through MBS issued by GSEs		177,409		1,945		—		—		177,409		1,945
Agency CMOs		235,036		3,691		—		—		235,036		3,691
State and municipal obligations		7,723		108		—		—		7,723		108

	December 31, 2020
	Less than 12				12 Consecutive
	Consecutive Months				Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Losses		Value		Losses		Value		Losses
Securities available-for-sale:
Agency notes	$	22,409	$	91	$	—	$	—	$	22,409	$	91
Pass-through MBS issued by GSEs		5,007		31		—		—		5,007		31
Agency CMOs		6,563		30		4,954		46		11,517		76

The issuers of securities available-for-sale are primarily U.S. government-sponsored entities or agencies. The decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality. In accordance with the Company’s investment policy, corporate notes are rated "investment grade" at the time of purchase and the financials of the issuers are reviewed quarterly. It is likely that the Company will not be required to sell the securities before their anticipated recovery, and as such, the Company does not consider these securities to be other-than-temporarily-impaired at June 30, 2021.