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Note 7 - Investment Securities

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

7. Investment Securities

The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of securities available-for-sale ("AFS") as of June 30, 2024, and December 31, 2023

		*June 30, 2024*
						*Gross*				*Gross*
		*Amortized*				*Unrealized*				*Unrealized*
		*Cost*				*Gains*				*Losses*				*Fair Value*
		(In thousands)
Securities AFS
U.S. treasury securities		$	545,093			$	—			$	93			$	545,000
U.S. government agency entities			11,063				65				118				11,010
U.S. government sponsored entities			79,785				—				51				79,734
Mortgage-backed securities			846,407				63				117,706				728,764
Collateralized mortgage obligations			29,551				—				3,472				26,079
Corporate debt securities			268,352				26				10,234				258,144
Total		$	1,780,251			$	154			$	131,674			$	1,648,731

		*December 31, 2023*
						*Gross*				*Gross*
		*Amortized*				*Unrealized*				*Unrealized*
		*Cost*				*Gains*				*Losses*				*Fair Value*
		(In thousands)
Securities AFS
U.S. treasury securities		$	495,167			$	153			$	20			$	495,300
U.S. government agency entities			48,282				117				230				48,169
Mortgage-backed securities			892,942				223				106,442				786,723
Collateralized mortgage obligations			31,238				—				3,194				28,044
Corporate debt securities			258,451				22				12,139				246,334
Total		$	1,726,080			$	515			$	122,025			$	1,604,570

As of June 30, 2024, and December 31, 2023, the amortized cost of AFS securities excluded accrued interest receivables of $6.3 million and $5.5 million, respectively, which are included in accrued interest receivable on the Consolidated Balance Sheets. For the Company’s accounting policy related to AFS securities accrued interest receivable, see Note 1 - Summary of Significant Accounting Policies – Securities Available for Sale – Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements in the Company’s 2023 Form 10-K.

The amortized cost and fair value of securities AFS as of June 30, 2024, by contractual maturities, are set forth in the tables below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.

		*June 30, 2024*
		*Securities AFS*
		*Amortized Cost*				*Fair Value*
		(In thousands)

Due in one year or less		$	685,036			$	684,480
Due after one year through five years			210,194				200,598
Due after five years through ten years			129,557				120,163
Due after ten years			755,464				643,490
Total		$	1,780,251			$	1,648,731

Equity Securities - The Company recognized an unrealized net loss of $1.4 million for the three months ended June 30, 2024, due to a decrease in fair value of equity investments with readily determinable fair values compared to a net gain of $10.7 million for the three months ended June 30, 2023. The Company recognized a net loss of $10.5 million for the six months ended June 30, 2024, due to a decrease in fair value of equity investments with readily determinable fair values compared to a net gain of $15.5 million for the six months ended June 30, 2023. Equity securities were $31.5 million and $40.4 million as of June 30, 2024, and December 31, 2023, respectively.

The following tables set forth the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of June 30, 2024, and December 31, 2023:

		*June 30, 2024*
		*Less than 12 Months*								*12 Months or Longer*								*Total*
						*Gross*								*Gross*								*Gross*
		*Fair*				*Unrealized*				*Fair*				*Unrealized*				*Fair*				*Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
		(In thousands)

Securities AFS
U.S. treasury securities		$	545,000			$	93			$	—			$	—			$	545,000			$	93
U.S. government agency entities			1,303				1				2,426				117				3,729				118
U.S. government sponsored entities			79,734				51				—				—				79,734				51
Mortgage-backed securities			16,029				245				711,787				117,461				727,816				117,706
Collateralized mortgage obligations			—				—				26,079				3,472				26,079				3,472
Corporate debt securities			64,857				209				178,261				10,025				243,118				10,234
Total		$	706,923			$	599			$	918,553			$	131,075			$	1,625,476			$	131,674

		*December 31, 2023*
		*Less than 12 Months*								*12 Months or Longer*								*Total*
						*Gross*								*Gross*								*Gross*
		*Fair*				*Unrealized*				*Fair*				*Unrealized*				*Fair*				*Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
		(In thousands)

Securities AFS
U.S. treasury securities		$	49,831			$	20			$	—			$	—			$	49,831			$	20
U.S. government agency entities			18,301				108				1,313				122				19,614				230
Mortgage-backed securities			—				—				768,274				106,442				768,274				106,442
Collateralized mortgage obligations			—				—				28,044				3,194				28,044				3,194
Corporate debt securities			64,448				552				166,864				11,587				231,312				12,139
Total		$	132,580			$	680			$	964,495			$	121,345			$	1,097,075			$	122,025

As of June 30, 2024, the Company had a total of 203 AFS securities in a gross unrealized loss position with no credit impairment, consisting primarily of 153 mortgage-backed securities, and 25 Corporate debt securities, 11 U.S. treasury securities, five collateralized mortgage obligations and five U.S. government agency securities. In comparison, as of December 31, 2023, the Company has a total of 192 AFS securities in a gross unrealized loss position with no credit impairment, consisting primarily of 154 mortgage-backed securities, 24 Corporate debt securities, one U.S. treasury securities, five collateralized mortgage obligations and eight U.S. government agency securities.

In March 2023, the Company recorded a $3.0 million write-off of its holdings of securities AFS from the failed Signature Bank. During the six months ended June 30, 2024, the Company sold that security for $1.4 million.

Allowance for Credit Losses

The AFS securities that were in an unrealized loss position at June 30, 2024, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 - Summary of Significant Accounting Policies - Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements in the Company’s 2023 Form 10-K.

The Company concluded the unrealized losses were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. The Company expects to recover the amortized cost basis of its securities and has no present intent to sell and will not be required to sell securities AFS that have declined below their cost before their anticipated recovery. Accordingly, no allowance for credit losses was recorded as of June 30, 2024, against these securities, and there was no provision for credit losses recognized for the three and six months ended June 30, 2024.

AFS securities having a carrying value of $18.9 million and $134.2 million as of June 30, 2024, and December 31, 2023, respectively, were pledged to secure public deposits and other borrowings.