
	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-Sale:
U.S. Government and agency obligations	$	191,842	$	177	$	(1,126)	$	—	$	190,893
Municipal bonds	283,124		675		(32,499)		—		251,300
Corporate bonds	133,461		12		(5,969)		—		127,504
Mortgage-backed or related securities	2,580,045		697		(257,269)		—		2,323,473
Asset-backed securities	203,000		89		(1,837)		—		201,252

	$	3,391,472	$	1,650	$	(298,700)	$	—	$	3,094,422


	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-Maturity:
U.S. Government and agency obligations	$	313	$	—	$	(4)	$	309	$	—
Municipal bonds	502,416		499		(58,474)		444,441		(196)
Corporate bonds	3,027		—		(19)		3,008		(228)
Mortgage-backed or related securities	646,433		—		(57,890)		588,543		—
	$	1,152,189	$	499	$	(116,387)	$	1,036,301	$	(424)


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-Sale:
U.S. Government and agency obligations	$	201,101	$	852	$	(621)	$	—	$	201,332
Municipal bonds	293,761		15,171		(320)		—		308,612
Corporate bonds	114,427		3,103		(183)		—		117,347
Mortgage-backed or related securities	2,837,480		17,749		(49,961)		—		2,805,268
Asset-backed securities	206,391		52		(9)		—		206,434

	$	3,653,160	$	36,927	$	(51,094)	$	—	$	3,638,993


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-Maturity:
U.S. Government and agency obligations	$	316	$	3	$	—	$	319	$	—
Municipal bonds	420,555		20,743		(1,393)		439,905		(203)
Corporate bonds	3,092		—		(3)		3,089		(230)
Mortgage-backed or related securities	97,392		1,171		(23)		98,540		—
	$	521,355	$	21,917	$	(1,419)	$	541,853	$	(433)

Accrued interest receivable on held-to-maturity debt securities was $4.9 million and $3.3 million as of June 30, 2022 and December 31, 2021, respectively, and was $10.4 million and $10.1 million on available-for-sale debt securities at June 30, 2022 and December 31, 2021, respectively. Accrued interest receivable on securities is reported in accrued interest receivable on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses.

At June 30, 2022 and December 31, 2021, the gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands):


	June 30, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-Sale:
U.S. Government and agency obligations	$	125,486	$	(710)	$	19,513	$	(416)	$	144,999	$	(1,126)
Municipal bonds	197,628		(32,499)		—		—		197,628		(32,499)
Corporate bonds	121,892		(5,969)		—		—		121,892		(5,969)
Mortgage-backed or related securities	1,536,926		(160,253)		586,950		(97,016)		2,123,876		(257,269)
Asset-backed securities	94,788		(1,837)		—		—		94,788		(1,837)

	$	2,076,720	$	(201,268)	$	606,463	$	(97,432)	$	2,683,183	$	(298,700)


	December 31, 2021
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-Sale:
U.S. Government and agency obligations	$	—	$	—	$	71,306	$	(621)	$	71,306	$	(621)
Municipal bonds	40,397		(221)		8,541		(99)		48,938		(320)
Corporate bonds	8,009		(121)		9,938		(62)		17,947		(183)
Mortgage-backed or related securities	1,307,411		(38,028)		721,454		(11,933)		2,028,865		(49,961)
Asset-backed securities	3,382		(9)		—		—		3,382		(9)

	$	1,359,199	$	(38,379)	$	811,239	$	(12,715)	$	2,170,438	$	(51,094)

At June 30, 2022, there were 263 securities—available-for-sale with unrealized losses, compared to 97 at December 31, 2021. Management does not believe that any individual unrealized loss as of June 30, 2022 or December 31, 2021 resulted from credit loss. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase.

There were no sales of securities—trading during the six months ended June 30, 2022 or 2021. There were no securities—trading in a nonaccrual status at June 30, 2022 or December 31, 2021. Net unrealized holding gains of $905,000 were recognized during the six months ended June 30, 2022 compared to $117,000 of net unrealized holding gains recognized during the six months ended June 30, 2021.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Available-for-Sale:
Gross Gains	$	81	$	77	$	516	$	626
Gross Losses	(49)		—		(49)		(110)
Balance, end of the period	$	32	$	77	$	467	$	516

There were no sales of securities—held-to-maturity during the six months ended June 30, 2022 or June 30, 2021. There were no securities—held-to-maturity in a nonaccrual status or 30 days or more past due at June 30, 2022 or December 31, 2021.

There were no sales of equity securities during the six months ended June 30, 2022. During the six months ended June 30, 2021, the Company sold a $4.8 million equity security with a resulting net gain of $46,000.

The following table presents the amortized cost and estimated fair value of securities at June 30, 2022, by contractual maturity (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.


	June 30, 2022
	Trading				Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within one year	$	—	$	—	$	2,415	$	2,415	$	8,970	$	8,971
Maturing after one year through five years	—		—		274,688		266,205		42,855		42,572
Maturing after five years through ten years	—		—		707,130		672,333		25,284		24,832
Maturing after ten years	27,203		27,886		2,407,239		2,153,469		1,075,080		959,926



	$	27,203	$	27,886	$	3,391,472	$	3,094,422	$	1,152,189	$	1,036,301

The following table presents, as of June 30, 2022, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):


	June 30, 2022
	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	234,535	$	237,079	$	216,480
Interest rate swap counterparties	8,057		8,212		8,055
Repurchase transaction accounts	286,698		308,284		269,311
Other	2,490		2,490		2,473
Total pledged securities	$	531,780	$	556,065	$	496,319

The Company monitors the credit quality of held-to-maturity debt securities through the use of credit ratings which are reviewed and updated quarterly. The Company’s non-rated held-to-maturity debt securities are primarily United States government sponsored enterprise debentures carrying minimal to no credit risk. The non-rated corporate bonds primarily consist of Community Reinvestment Act related bonds secured by loan instruments from low to moderate income borrowers. The remaining non-rated held-to-maturity debt securities balance is comprised of local municipal debt from within the Company’s geographic footprint and is monitored through quarterly or annual financial review. This municipal debt is predominately essential service or unlimited general obligation backed debt. The following tables summarize the amortized cost of held-to-maturity debt securities by credit rating at June 30, 2022 and December 31, 2021 (in thousands):


	June 30, 2022
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
AAA/AA/A	$	—	$	489,810	$	500	$	16,779	$	507,089

Not Rated	313		12,606		2,527		629,654		645,100


	$	313	$	502,416	$	3,027	$	646,433	$	1,152,189


	December 31, 2021
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
AAA/AA/A	$	—	$	406,363	$	500	$	—	$	406,863

Not Rated	316		14,192		2,592		97,392		114,492
	$	316	$	420,555	$	3,092	$	97,392	$	521,355

The following tables present the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the three and six months ended June 30, 2022 and June 30, 2021 (in thousands):


	For the Three Months Ended June 30, 2022
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
Allowance for credit losses – securities
Beginning Balance	$	—	$	191	$	229	$	—	$	420

Provision (recapture) for credit losses	—		5		(1)		—		4



Ending Balance	$	—	$	196	$	228	$	—	$	424

	For the Six Months Ended June 30, 2022
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
Allowance for credit losses – securities
Beginning Balance	$	—	$	203	$	230	$	—	$	433

Recapture of provision for credit losses	—		(7)		(2)		—		(9)



Ending Balance	$	—	$	196	$	228	$	—	$	424