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SECURITIES

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at June 30, 2023 and December 31, 2022 are summarized as follows (in thousands):

			June 30, 2023
			Amortized Cost																		Fair Value
Trading:
Corporate bonds			$	27,203																	$	25,659
			$	27,203																	$	25,659

			June 30, 2023
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
Available-for-Sale:
U.S. Government and agency obligations			$	49,471					$	14					$	(1,123)					$	—					$	48,362
Municipal bonds			194,660						181						(34,073)						—						160,768
Corporate bonds			118,160						—						(16,372)						(2,000)						99,788
Mortgage-backed or related securities			2,294,371						275						(352,248)						—						1,942,398
Asset-backed securities			222,517						63						(7,936)						—						214,644
			$	2,879,179					$	533					$	(411,752)					$	(2,000)					$	2,465,960

			June 30, 2023
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value						Allowance for Credit Losses
Held-to-Maturity:
U.S. Government and agency obligations			$	309					$	—					$	(7)					$	302					$	—
Municipal bonds			497,546						105						(62,883)						434,598						(170)
Corporate bonds			2,844						—						(24)						2,635						(185)
Mortgage-backed or related securities			598,226						—						(102,645)						495,581						—
			$	1,098,925					$	105					$	(165,559)					$	933,116					$	(355)

			December 31, 2022
			Amortized Cost																		Fair Value
Trading:
Corporate bonds			$	27,203																	$	28,694
			$	27,203																	$	28,694

			December 31, 2022
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses												Fair Value
Available-for-Sale:
U.S. Government and agency obligations			$	56,344					$	8					$	(1,244)											$	55,108
Municipal bonds			301,449						530						(40,770)												261,209
Corporate bonds			133,334						—						(11,481)												121,853
Mortgage-backed or related securities			2,505,172						885						(366,721)												2,139,336
Asset-backed securities			222,478						40						(10,993)												211,525
			$	3,218,777					$	1,463					$	(431,209)											$	2,789,031

			December 31, 2022
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value						Allowance for Credit Losses
Held-to-Maturity:
U.S. Government and agency obligations			$	312					$	—					$	(7)					$	305					$	—
Municipal bonds			503,117						109						(70,907)						432,319						(183)
Corporate bonds			2,961						—						(16)						2,945						(196)
Mortgage-backed or related securities			611,577						—						(104,966)						506,611						—
			$	1,117,967					$	109					$	(175,896)					$	942,180					$	(379)

Accrued interest receivable on held-to-maturity debt securities was $4.7 million and $4.8 million as of June 30, 2023 and December 31, 2022, respectively, and was $11.1 million and $12.4 million on available-for-sale debt securities at June 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, 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, 2023
			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			$	—					$	—					$	45,207					$	(1,123)					$	45,207					$	(1,123)
Municipal bonds			34,744						(559)						119,287						(33,514)						154,031						(34,073)
Corporate bonds			9,599						(314)						95,502						(16,058)						105,101						(16,372)
Mortgage-backed or related securities			259,765						(9,381)						1,635,349						(342,867)						1,895,114						(352,248)
Asset-backed securities			121,210						(4,603)						83,292						(3,333)						204,502						(7,936)
			$	425,318					$	(14,857)					$	1,978,637					$	(396,895)					$	2,403,955					$	(411,752)

			December 31, 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			$	33,407					$	(882)					$	16,732					$	(362)					$	50,139					$	(1,244)
Municipal bonds			188,920						(25,592)						33,907						(15,178)						222,827						(40,770)
Corporate bonds			108,187						(9,547)						13,066						(1,934)						121,253						(11,481)
Mortgage-backed or related securities			930,566						(90,537)						1,159,110						(276,184)						2,089,676						(366,721)
Asset-backed securities			201,437						(10,993)						—						—						201,437						(10,993)
			$	1,462,517					$	(137,551)					$	1,222,815					$	(293,658)					$	2,685,332					$	(431,209)

At June 30, 2023, there were 245 securities—available-for-sale with unrealized losses, compared to 298 at December 31, 2022. As of June 30, 2023, we have an allowance for credit losses of $2.0 million related to the estimated credit loss on one security.  Management does not believe that any remaining individual unrealized loss as of June 30, 2023 or December 31, 2022 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, 2023 or 2022. There were no securities—trading in a nonaccrual status at June 30, 2023 or December 31, 2022.  Net unrealized holding losses of $3.0 million were recognized during the six months ended June 30, 2023, compared to $905,000 of net unrealized holding gains recognized during the six months ended June 30, 2022.

The following table presents gross gains and losses on sales and partial calls of securities available-for-sale (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Available-for-Sale:
Gross Gains			$	145					$	81					$	377					$	516
Gross Losses			(4,672)						(49)						(12,156)						(49)
Balance, end of the period			$	(4,527)					$	32					$	(11,779)					$	467

There were no securities—available-for-sale in a nonaccrual status at June 30, 2023 or December 31, 2022.

The following table presents the amortized cost and estimated fair value of securities at June 30, 2023, by contractual maturity and does not reflect any required periodic payments (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, 2023
			Trading												Available-for-Sale												Held-to-Maturity
			Amortized Cost						Fair Value						Amortized Cost						Fair Value						Amortized Cost						Fair Value
Maturing within one year			$	—					$	—					$	719					$	716					$	21,769					$	21,243
Maturing after one year through five years			—						—						158,285						143,916						21,090						20,352
Maturing after five years through ten years			—						—						416,915						364,317						26,732						25,554
Maturing after ten years			27,203						25,659						2,303,260						1,957,011						1,029,334						865,967
			$	27,203					$	25,659					$	2,879,179					$	2,465,960					$	1,098,925					$	933,116

The following table presents, as of June 30, 2023, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):

			June 30, 2023
			Carrying Value						Amortized Cost						Fair Value
Purpose or beneficiary:
State and local governments public deposits			$	248,951					$	256,711					$	224,566
Federal Reserve			118,643						118,643						100,314
Interest rate swap counterparties			3,039						3,249						2,865
Repurchase transaction accounts			273,613						273,613						225,628
Other			4,779						4,779						4,558
Total pledged securities			$	649,025					$	656,995					$	557,931

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, 2023 and December 31, 2022 (in thousands):

			June 30, 2023
			U.S. Government and agency obligations						Municipal bonds						Corporate bonds						Mortgage-backed or related securities						Total
AAA/AA/A			$	—					$	487,763					$	500					$	16,574					$	504,837
Not Rated			309						9,783						2,344						581,652						594,088
			$	309					$	497,546					$	2,844					$	598,226					$	1,098,925

			December 31, 2022
			U.S. Government and agency obligations						Municipal bonds						Corporate bonds						Mortgage-backed or related securities						Total
AAA/AA/A			$	—					$	492,105					$	500					$	16,681					$	509,286
Not Rated			312						11,012						2,461						594,896						608,681
			$	312					$	503,117					$	2,961					$	611,577					$	1,117,967

The following tables present the activity in the allowance for credit losses for securities available-for-sale by major type for the three and six months ended June 30, 2023 (in thousands). We had no allowance for credit losses for securities available-for-sale during three and six months ended June 30, 2022.

			For the Three Months Ended June 30, 2023
			U.S. Government and agency obligations						Municipal bonds						Corporate bonds						Mortgage-backed or related securities						Total
Allowance for credit losses – securities available-for-sale
Beginning balance			$	—					$	—					$	—					$	—					$	—
Provision for credit losses			—						—						2,000						—						2,000
Ending balance			$	—					$	—					$	2,000					$	—					$	2,000
			For the Six Months Ended June 30, 2023
			U.S. Government and agency obligations						Municipal bonds						Corporate bonds						Mortgage-backed or related securities						Total
Allowance for credit losses – securities available-for-sale
Beginning balance			$	—					$	—					$	—					$	—					$	—
Provision for credit losses			—						—						2,000						—						2,000
Ending balance			$	—					$	—					$	2,000					$	—					$	2,000

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The entire disclosure for investments in certain debt and equity securities.

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-Topic 320
-Name Accounting Standards Codification
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