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INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES:
The following tables set forth certain information regarding the amortized cost and fair values of our investment securities AFS and HTM:
At December 31, 2022
(in thousands)Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
AFS
Mortgage-backed securities ("MBS"):
Residential$207,445 $— $(10,183)$197,262 
Commercial65,411 — (9,362)56,049 
Collateralized mortgage obligations ("CMOs")
Residential592,449 12 (39,422)553,039 
Commercial77,909 — (7,390)70,519 
Municipal bonds469,346 41 (57,839)411,548 
Corporate debt securities46,672 74 (3,801)42,945 
U.S. Treasury securities23,005 — (3,071)19,934 
Agency debentures27,499 8 (29)27,478 
Total$1,509,736 $135 $(131,097)$1,378,774 
HTM
   Municipal bonds $2,441 $— $(56)$2,385 

At December 31, 2021
(in thousands)Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
AFS
MBS:
Residential$32,905 $396 $(338)$32,963 
Commercial62,094 933 (235)62,792 
CMOs:
Residential186,703 2,012 (1,321)187,394 
Commercial135,102 1,890 (333)136,659 
Municipal bonds516,693 24,154 (924)539,923 
Corporate debt securities18,918 699 (1)19,616 
U.S. Treasury securities23,348 — (173)23,175 
Total$975,763 $30,084 $(3,325)$1,002,522 
HTM
Municipal bonds$4,169 $136 $— $4,305 

The Company held $19.0 million of trading securities which are used as economic hedges of our mortgage servicing rights and are not included in the above tables. Net trading losses of $7.0 million were recorded in servicing income in the consolidated income statements in 2022.
MBS and CMOs represent securities primarily issued by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal organizations. As of December 31, 2022 and 2021, all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor’s Rating Services or Moody's Investors Services.

Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:
At December 31, 2022
 Less than 12 months12 months or moreTotal
(in thousands)Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value
AFS
MBS:
Residential
$(8,845)$191,398 $(1,338)$5,763 $(10,183)$197,161 
Commercial(5,729)41,416 (3,633)14,619 (9,362)56,035 
CMOs:
Residential(27,789)498,333 (11,633)45,689 (39,422)544,022 
Commercial(4,787)56,671 (2,603)13,848 (7,390)70,519 
Municipal bonds(44,513)350,918 (13,326)46,377 (57,839)397,295 
Corporate debt securities(3,801)32,871 — — (3,801)32,871 
U.S. Treasury securities— — (3,071)19,934 (3,071)19,934 
Agency debentures(29)15,970 — — (29)15,970 
Total$(95,493)$1,187,577 $(35,604)$146,230 $(131,097)$1,333,807 
HTM
Municipal bonds$(56)$2,385 $— $— $(56)$2,385 

At December 31, 2021
 Less than 12 months12 months or moreTotal
(in thousands)Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value
MBS:
Residential$(38)$5,324 $(300)$2,406 $(338)$7,730 
Commercial(235)18,127 — — (235)18,127 
CMOs:
Residential(1,007)53,068 (314)7,116 (1,321)60,184 
Commercial(135)14,806 (198)5,132 (333)19,938 
Municipal bonds(914)64,237 (10)1,058 (924)65,295 
Corporate debt securities(1)3,164 — — (1)3,164 
U.S. Treasury securities(173)23,175 — — (173)23,175 
Total$(2,503)$181,901 $(822)$15,712 $(3,325)$197,613 

The Company has evaluated AFS securities that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of December 31, 2022 and 2021. In addition, as of December 31, 2022 and 2021, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis.
The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield.

 At December 31, 2022
 Within one yearAfter one year
through five years		After five years
through ten years		After
ten years		Total
(dollars in thousands)Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield
AFS
Municipal bonds$— — %$3,644 1.96 %$38,977 3.04 %$368,927 2.83 %$411,548 2.84 %
Corporate debt securities— — %15,342 5.13 %27,603 4.25 %— — %42,945 4.54 %
U.S. Treasury securities— — %— — %19,934 1.11 %— — %19,934 1.11 %
Agency debentures10,485 4.74 %16,993 4.94 %— — %— — %27,478 4.86 %
Total $10,485 4.74 %$35,979 4.69 %$86,514 2.97 %$368,927 2.83 %$501,905 3.01 %
HTM
Municipal bonds$— — %$2,385 2.04 %$— — %$— — %$2,385 2.04 %

 
 At December 31, 2021
 Within one yearAfter one year
through five years		After five years
through ten years		After
ten years		Total
(dollars in thousands)Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield		Fair
Value		Weighted
Average
Yield
AFS
Municipal bonds$4,933 3.79 %$14,366 3.26 %$68,025 3.60 %$452,599 3.23 %$539,923 3.28 %
Corporate debt securities— — %6,563 3.60 %13,053 5.03 %— — %19,616 4.55 %
U.S. Treasury securities— — %— — %23,175 1.27 %— — %23,175 1.27 %
Total $4,933 3.79 %$20,929 3.37 %$104,253 3.23 %$452,599 3.23 %$582,714 3.24 %
HTM
Municipal bonds$1,684 2.86 %$2,621 2.12 %$— — %$— — %$4,305 2.42 %

The weighted-average yield is computed using the contractual coupon for each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of December 31, 2022 and 2021 was 3.08% and 1.82%, respectively.

Sales of AFS investment securities were as follows for the periods indicated: 
 Years Ended December 31,
(in thousands)202220212020
Proceeds$98,915 $28,187 $62,378 
Gross gains1,585 288 1,334 
Gross losses(1,561)(226)(993)
The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law.
At December 31,
(in thousands)20222021
Washington, Oregon and California State to secure public deposits$212,806 $206,153 
Other securities pledged2,011 5,258 
Total securities pledged as collateral$214,817 $211,411 

The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk.

Tax-exempt interest income on AFS securities was $11.9 million, $10.2 million and $10.7 million for 2022, 2021 and 2020, respectively.