INVESTMENT AND MORTGAGE-BACKED SECURITIES

9 Months Ended

Sep. 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:

	September 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
Agency notes	$	82,475	$	—	$	(1,457)	$	81,018
Treasury securities		248,173		5		(482)		247,696
Corporate securities		122,476		4,758		(401)		126,833
Pass-through MBS issued by GSEs		622,225		6,005		(6,273)		621,957
Agency Collateralized Mortgage Obligations ("CMOs")		590,385		5,159		(5,118)		590,426
State and municipal obligations		41,158		153		(178)		41,133
Total securities available-for-sale	$	1,706,892	$	16,080	$	(13,909)	$	1,709,063
	September 30, 2021
			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities held-to-maturity:
Pass-through MBS issued by GSEs	$	25,325	$	—	$	—	$	25,325
Agency Collateralized Mortgage Obligations ("CMOs")		14,978		—		—		14,978
Total securities held-to-maturity	$	40,303	$	—	$	—	$	40,303

	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.

As of December 31, 2020, there were no securities held-to-maturity.

The carrying amount of securities pledged as collateral was $684.0 million and $99.4 million at September 30, 2021 and December 31, 2020, respectively.

At September 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.  

	September 30, 2021
	Amortized		Fair
(In thousands)	Cost		Value
Available-for-sale
Within one year	$	1,346	$	1,351
One to five years		270,069		269,665
Five to ten years		209,938		212,881
Beyond ten years		12,929		12,783
Pass-through MBS issued by GSEs and agency CMO		1,212,610		1,212,383
Total	$	1,706,892	$	1,709,063
Held-to-maturity
Pass-through MBS issued by GSEs and agency CMO	$	40,303	$	40,303
Total	$	40,303	$	40,303

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2021		2020		2021		2020
Agency Notes:
Proceeds	$	—	$	—	$	—	$	273
Gross gains		—		—		—		—
Tax expense on gain		—		—		—		—
Gross losses		—		—		—		—
Tax benefit on loss		—		—		—		—
Corporate Securities:
Proceeds		—		—		50,273		25,403
Gross gains		—		—		729		1,344
Tax expense on gain		—		—		232		423
Gross losses		—		—		41		—
Tax benefit on loss		—		—		13		—
Pass through MBS issued by GSEs:
Proceeds		—		5,987		26,823		39,182
Gross gains		—		215		187		2,005
Tax expense on gain		—		67		59		630
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		—
Gross losses		—		—		—		—
Tax benefit on loss		—		—		—		—

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2021		2020		2021		2020
Proceeds:
Marketable equity securities	$	—	$	137	$	—	$	410

There were no gains on marketable equity securities for the three months ended September 30, 2021. Net gain of $175 thousand was recognized on marketable equity securities for the three months ended September 30, 2020. Net gains of $131 thousand and $139 thousand were recognized on marketable equity securities for the nine months ended September 30, 2021 and 2020, respectively. Marketable equity securities were fully liquidated in connection with the termination of the BMP.

There were no sales of securities held-to-maturity during the three months ended September 30, 2021 and 2020.  There were no sales of securities held-to-maturity during the nine months ended September 30, 2021 and 2020.

There were no transfers to or from securities held-to-maturity during the three months ended September 30, 2021 and 2020.  There were no transfers to or from securities held-to-maturity during the nine months ended September 30, 2021 and 2020.

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:

	September 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	$	81,018	$	1,457	$	—	$	—	$	81,018	$	1,457
Treasury securities		231,984		482		—		—		231,984		482
Corporate securities		17,863		401		—		—		17,863		401
Pass-through MBS issued by GSEs		446,864		6,273		—		—		446,864		6,273
Agency CMOs		347,726		5,118		—		—		347,726		5,118
State and municipal obligations		16,412		178		—		—		16,412		178

	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 September 30, 2021.