XML 19 R10.htm IDEA: XBRL DOCUMENT v3.23.2

INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES:

The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): 

			At June 30, 2023
(in thousands)			Amortized cost						Gross unrealized gains						Gross unrealized losses						Fair value
AFS
Mortgage backed securities ("MBS"):
Residential			$	203,781					$	25					$	(12,188)					$	191,618
Commercial			62,412						—						(9,181)						53,231
Collateralized mortgage obligations ("CMOs"):
Residential			559,765						—						(41,574)						518,191
Commercial			73,078						—						(6,724)						66,354
Municipal bonds			459,416						108						(53,979)						405,545
Corporate debt securities			45,717						—						(6,694)						39,023
U.S. Treasury securities			22,833						—						(2,965)						19,868
Agency debentures			61,110						—						(742)						60,368
Total			$	1,488,112					$	133					$	(134,047)					$	1,354,198
HTM
Municipal bonds			$	2,406					$	—					$	(69)					$	2,337

			At December 31, 2022
(in thousands)			Amortized cost						Gross unrealized gains						Gross unrealized losses						Fair value
AFS
MBS:
Residential			$	207,445					$	—					$	(10,183)					$	197,262
Commercial			65,411						—						(9,362)						56,049
CMOs:
Residential			592,449						12						(39,422)						553,039
Commercial			77,909						—						(7,390)						70,519
Municipal bonds			469,346						41						(57,839)						411,548
Corporate debt securities			46,672						74						(3,801)						42,945
U.S. Treasury securities			23,005						—						(3,071)						19,934
Agency debentures			27,499						8						(29)						27,478
Total			$	1,509,736					$	135					$	(131,097)					$	1,378,774
HTM
Municipal bonds			$	2,441					$	—					$	(56)					$	2,385

At June 30, 2023, and December 31, 2022, the Company held $40 million and $19 million, respectively, of trading securities, consisting of US Treasury notes used as economic hedges of our mortgage servicing rights, which are carried at fair value and included with investment securities on the balance sheet. For the quarters ended June 30, 2023 and 2022, net losses of $1.1 million and $3.1 million on trading securities, respectively, and for the six months ended June 30, 2023 and 2022, net losses of $0.4 million and $3.9 million on trading securities, respectively, were recorded in servicing income.

MBS and CMOs represent securities 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 corporations. As of June 30, 2023 and December 31, 2022, substantially all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon nationally recognized statistical rating organizations where available and, where not available, based upon internal ratings.

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 June 30, 2023
			Less than 12 months												12 months or more												Total
(in thousands)			Gross unrealized losses						Fair value						Gross unrealized losses						Fair value						Gross unrealized losses						Fair value
AFS
MBS:
Residential			$	(7,946)					$	148,365					$	(4,242)					$	36,814					$	(12,188)					$	185,179
Commercial			—						64						(9,181)						52,170						(9,181)						52,234
CMOs:
Residential			(6,616)						267,804						(34,958)						250,387						(41,574)						518,191
Commercial			(151)						8,144						(6,573)						58,210						(6,724)						66,354
Municipal bonds			(990)						34,143						(52,989)						353,633						(53,979)						387,776
Corporate debt securities			(829)						14,171						(5,865)						24,852						(6,694)						39,023
U.S. Treasury securities			—						—						(2,965)						19,868						(2,965)						19,868
Agency debentures			(459)						58,077						(283)						2,291						(742)						60,368
Total			$	(16,991)					$	530,768					$	(117,056)					$	798,225					$	(134,047)					$	1,328,993
HTM
Municipal bonds			$	(69)					$	2,337					$	—					$	—					$	(69)					$	2,337

			At December 31, 2022
			Less than 12 months												12 months or more												Total
(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

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 June 30,

2023 or December 31, 2022. In addition, as of June 30, 2023 and December 31, 2022, 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 June 30, 2023
			Within one year												After 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			$	35					2.65		%				$	3,722					2.00		%				$	55,618					3.02		%				$	346,170					2.70		%				$	405,545					2.74		%
Corporate debt securities			4,439						3.47		%				9,933						5.96		%				24,651						3.82		%				—						—		%				39,023						4.25		%
U.S. Treasury securities			—						—		%				—						—		%				19,868						1.12		%				—						—		%				19,868						1.12		%
Agency debentures			15,442						4.72		%				42,635						5.09		%				2,291						2.04		%				—						—		%				60,368						4.87		%
Total			$	19,916					4.44		%				$	56,290					5.02		%				$	102,428					2.84		%				$	346,170					2.70		%				$	524,804					3.01		%
HTM
Municipal bonds			$	—					—		%				$	2,337					1.81		%				$	—					—		%				$	—					—		%				$	2,337					1.81		%

			At December 31, 2022
			Within one year												After 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 debentures			10,485						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		%

The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security. 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 June 30, 2023 and December 31, 2022 was 3.12% and 3.08%, respectively.

Sales of AFS investment securities were as follows:

			Quarter Ended June 30,												Six Months Ended June 30,
(in thousands)			2023						2022						2023						2022
Proceeds			$	—					$	—					$	4,693					$	962
Gross gains			—						—						3						71
Gross losses			—						—						—						—

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:

(in thousands)			At June 30, 2023						At December 31, 2022
Federal Reserve Bank to secure borrowings			$	644,636					$	—
Washington, Oregon and California to secure public deposits			10,655						212,806
Other securities pledged			1,496						2,011
Total securities pledged as collateral			$	656,787					$	214,817

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 investment securities was $2.8 million and $3.1 million for the quarters ended June 30, 2023 and 2022, respectively and $5.6 million and $5.8 million for the six months ended June 30, 2023 and 2022, respectively.

X

- References

No definition available.

+ Details

Name:	us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References

No definition available.

+ Details

Name:	us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration