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SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | 9 Months Ended
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Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES The following is a summary of securities available for sale, held to maturity, and marketable equity securities:
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Allowance
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |
U.S Treasuries |  | $ | 19,997 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 20,000 |  |  |
Municipal bonds and obligations |  | 66,399 |  |  | 21 |  |  | (5,854) |  |  | 60,566 |  |  | — |
Agency collateralized mortgage obligations |  | 656,132 |  |  | — |  |  | (98,619) |  |  | 557,513 |  |  | — |
Agency mortgage-backed securities |  | 660,065 |  |  | 1 |  |  | (106,329) |  |  | 553,737 |  |  | — |
Agency commercial mortgage-backed securities |  | 270,609 |  |  | — |  |  | (35,033) |  |  | 235,576 |  |  | — |
Corporate bonds |  | 45,269 |  |  | 83 |  |  | (2,451) |  |  | 42,901 |  |  | — |
Other bonds and obligations |  | 655 |  |  | 67 |  |  | (66) |  |  | 656 |  |  | — |
Total securities available for sale |  | 1,719,126 |  |  | 175 |  |  | (248,352) |  |  | 1,470,949 |  |  | — |
Securities held to maturity |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | 267,821 |  |  | 299 |  |  | (36,446) |  |  | 231,674 |  |  | 67 |
Agency collateralized mortgage obligations |  | 132,931 |  |  | — |  |  | (19,965) |  |  | 112,966 |  |  | — |
Agency mortgage-backed securities |  | 52,175 |  |  | — |  |  | (10,333) |  |  | 41,842 |  |  | — |
Agency commercial mortgage-backed securities |  | 137,177 |  |  | — |  |  | (22,659) |  |  | 114,518 |  |  | — |
Tax advantaged economic development bonds |  | 2,235 |  |  | 5 |  |  | (142) |  |  | 2,098 |  |  | 28 |
Other bonds and obligations |  | 164 |  |  | — |  |  | — |  |  | 164 |  |  | — |
Total securities held to maturity |  | 592,503 |  |  | 304 |  |  | (89,545) |  |  | 503,262 |  |  | 95 |
Marketable equity securities |  | 15,035 |  |  | — |  |  | (2,245) |  |  | 12,790 |  |  | — |
Total |  | $ | 2,326,664 |  |  | $ | 479 |  |  | $ | (340,142) |  |  | $ | 1,987,001 |  |  | $ | 95 |
(In thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Allowance
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |
U.S Treasuries |  | $ | 59,972 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 59,973 |  |  | $ | — |
Municipal bonds and obligations |  | 71,822 |  |  | 5,355 |  |  | — |  |  | 77,177 |  |  | — |
Agency collateralized mortgage obligations |  | 693,782 |  |  | 5,566 |  |  | (11,012) |  |  | 688,336 |  |  | — |
Agency mortgage-backed securities |  | 711,154 |  |  | 2,347 |  |  | (7,642) |  |  | 705,859 |  |  | — |
Agency commercial mortgage-backed securities |  | 300,259 |  |  | 3,949 |  |  | (3,628) |  |  | 300,580 |  |  | — |
Corporate bonds |  | 44,824 |  |  | 950 |  |  | (114) |  |  | 45,660 |  |  | — |
Total securities available for sale |  | 1,881,813 |  |  | 18,168 |  |  | (22,396) |  |  | 1,877,585 |  |  | — |
Securities held to maturity |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | 281,515 |  |  | 16,151 |  |  | (693) |  |  | 296,973 |  |  | 70 |
Agency collateralized mortgage obligations |  | 149,195 |  |  | 3,203 |  |  | (3,513) |  |  | 148,885 |  |  | — |
Agency mortgage-backed securities |  | 57,327 |  |  | 95 |  |  | (1,498) |  |  | 55,924 |  |  | — |
Agency commercial mortgage-backed securities |  | 145,573 |  |  | 266 |  |  | (3,289) |  |  | 142,550 |  |  | — |
Tax advantaged economic development bonds |  | 2,728 |  |  | 26 |  |  | (15) |  |  | 2,739 |  |  | 35 |
Other bonds and obligations |  | 165 |  |  | — |  |  | — |  |  | 165 |  |  | — |
Total securities held to maturity |  | 636,503 |  |  | 19,741 |  |  | (9,008) |  |  | 647,236 |  |  | 105 |
Marketable equity securities |  | 15,689 |  |  | 67 |  |  | (303) |  |  | 15,453 |  |  | — |
Total |  | $ | 2,534,005 |  |  | $ | 37,976 |  |  | $ | (31,707) |  |  | $ | 2,540,274 |  |  | $ | 105 |
The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three and nine months ended September 30, 2022 and 2021:
(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at June 30, 2022 | $ | 66 |  |  | $ | 28 |  |  | $ | 94 |
Provision for credit losses | 1 |  |  | — |  |  | 1 |
Balance at September 30, 2022 | $ | 67 |  |  | $ | 28 |  |  | $ | 95 |
(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at June 30, 2021 | $ | 90 |  |  | $ | 40 |  |  | $ | 130 |
(Benefit)/provision for credit losses | (3) |  |  | (2) |  |  | (5) |
Balance at September 30, 2021 | $ | 87 |  |  | $ | 38 |  |  | $ | 125 |
(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at December 31, 2021 | $ | 70 |  |  | $ | 35 |  |  | $ | 105 |
(Benefit)/provision for credit losses | (3) |  |  | (7) |  |  | (10) |
Balance at September 30, 2022 | $ | 67 |  |  | $ | 28 |  |  | $ | 95 |
(In thousands) | Municipal bonds and obligations |  | Tax advantaged economic development bonds |  | Total
Balance at December 31, 2020 | $ | 64 |  |  | $ | 40 |  |  | $ | 104 |
Provision/(benefit) for credit losses | 23 |  |  | (2) |  |  | 21 |
Balance at September 30, 2021 | $ | 87 |  |  | $ | 38 |  |  | $ | 125 |
Credit Quality Information The Company monitors the credit quality of held to maturity securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying municipality, agency, or organization. As of September 30, 2022, none of the Company's investment securities were delinquent or in non-accrual status. The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at September 30, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.
|  | Available for sale |  | Held to maturity
|  | Amortized |  | Fair |  | Amortized |  | Fair
(In thousands) |  | Cost |  | Value |  | Cost |  | Value
Within 1 year |  | $ | 20,441 |  |  | $ | 20,444 |  |  | $ | 1,711 |  |  | $ | 1,710 |
Over 1 year to 5 years |  | 9,392 |  |  | 9,224 |  |  | 2,326 |  |  | 2,313 |
Over 5 years to 10 years |  | 48,894 |  |  | 46,318 |  |  | 23,841 |  |  | 23,500 |
Over 10 years |  | 53,593 |  |  | 48,137 |  |  | 242,342 |  |  | 206,413 |
Total bonds and obligations |  | 132,320 |  |  | 124,123 |  |  | 270,220 |  |  | 233,936 |
Mortgage-backed securities |  | 1,586,806 |  |  | 1,346,826 |  |  | 322,283 |  |  | 269,326 |
Total |  | $ | 1,719,126 |  |  | $ | 1,470,949 |  |  | $ | 592,503 |  |  | $ | 503,262 |
During the three and nine months ended September 30, 2022, purchases of AFS securities totaled $41.4 million and $428.1 million, respectively. During the three months ended September 30, 2022, there were no sales of AFS securities. During the nine months ended September 30, 2022, sales of AFS securities totaled $150 million. During the three and nine months ended September 30, 2021, purchases of AFS securities totaled $160.0 million and $429.0 million, respectively. During the three and nine months ended September 30, 2021, there were no sales of AFS securities. During the three months ended September 30, 2022, there were no gross gains or gross losses. During the nine months ended September 30, 2022, gross gains totaled $6 thousand and there were no gross losses. During the three and nine months ended September 30, 2021, there were no gross gains or losses on AFS securities. These gains and losses are included in gain/(loss) on securities, net on the consolidated statements of income. Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:
|  | Less Than Twelve Months |  | Over Twelve Months |  | Total
|  | Gross |  |  |  | Gross |  |  |  | Gross |  |
|  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair
(In thousands) |  | Losses |  | Value |  | Losses |  | Value |  | Losses |  | Value
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
U.S Treasuries |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Municipal bonds and obligations |  | 5,854 |  |  | 52,279 |  |  | — |  |  | — |  |  | 5,854 |  |  | 52,279 |
Agency collateralized mortgage obligations |  | 26,129 |  |  | 293,758 |  |  | 72,490 |  |  | 263,754 |  |  | 98,619 |  |  | 557,512 |
Agency mortgage-backed securities |  | 48,764 |  |  | 314,987 |  |  | 57,565 |  |  | 238,651 |  |  | 106,329 |  |  | 553,638 |
Agency commercial mortgage-backed securities |  | 19,323 |  |  | 154,763 |  |  | 15,710 |  |  | 80,799 |  |  | 35,033 |  |  | 235,562 |
Corporate bonds |  | 1,627 |  |  | 34,126 |  |  | 824 |  |  | 7,851 |  |  | 2,451 |  |  | 41,977 |
Other bonds and obligations |  | — |  |  | — |  |  | 66 |  |  | 295 |  |  | 66 |  |  | 295 |
Total securities available for sale |  | $ | 101,697 |  |  | $ | 849,913 |  |  | $ | 146,655 |  |  | $ | 591,350 |  |  | $ | 248,352 |  |  | $ | 1,441,263 |
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | $ | 22,075 |  |  | $ | 166,539 |  |  | $ | 14,371 |  |  | $ | 23,286 |  |  | $ | 36,446 |  |  | $ | 189,825 |
Agency collateralized mortgage obligations |  | 2,537 |  |  | 52,558 |  |  | 17,428 |  |  | 60,408 |  |  | 19,965 |  |  | 112,966 |
Agency mortgage-backed securities |  | 340 |  |  | 2,410 |  |  | 9,993 |  |  | 39,432 |  |  | 10,333 |  |  | 41,842 |
Agency commercial mortgage-backed securities |  | 4,156 |  |  | 25,094 |  |  | 18,503 |  |  | 89,423 |  |  | 22,659 |  |  | 114,517 |
Tax advantaged economic development bonds |  | 1 |  |  | 213 |  |  | 141 |  |  | 1,023 |  |  | 142 |  |  | 1,236 |
Total securities held to maturity |  | 29,109 |  |  | 246,814 |  |  | 60,436 |  |  | 213,572 |  |  | 89,545 |  |  | 460,386 |
Total |  | $ | 130,806 |  |  | $ | 1,096,727 |  |  | $ | 207,091 |  |  | $ | 804,922 |  |  | $ | 337,897 |  |  | $ | 1,901,649 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Agency collateralized mortgage obligations |  | $ | 9,626 |  |  | $ | 375,132 |  |  | $ | 1,386 |  |  | $ | 27,025 |  |  | $ | 11,012 |  |  | $ | 402,157 |
Agency mortgage-backed securities |  | 3,179 |  |  | 222,887 |  |  | 4,463 |  |  | 175,941 |  |  | 7,642 |  |  | 398,828 |
Agency commercial mortgage-backed securities |  | 1,609 |  |  | 103,354 |  |  | 2,019 |  |  | 49,313 |  |  | 3,628 |  |  | 152,667 |
Corporate bonds |  | 114 |  |  | 11,115 |  |  | — |  |  | — |  |  | 114 |  |  | 11,115 |
Total securities available for sale |  | $ | 14,528 |  |  | $ | 712,488 |  |  | $ | 7,868 |  |  | $ | 252,279 |  |  | $ | 22,396 |  |  | $ | 964,767 |
Securities held to maturity |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds and obligations |  | $ | 693 |  |  | $ | 36,981 |  |  | $ | — |  |  | $ | — |  |  | $ | 693 |  |  | $ | 36,981 |
Agency collateralized mortgage obligations |  | 1,808 |  |  | 49,308 |  |  | 1,705 |  |  | 36,212 |  |  | 3,513 |  |  | 85,520 |
Agency mortgage-backed securities |  | 839 |  |  | 26,656 |  |  | 659 |  |  | 26,025 |  |  | 1,498 |  |  | 52,681 |
Agency commercial mortgage-backed securities |  | 1,255 |  |  | 80,406 |  |  | 2,034 |  |  | 51,654 |  |  | 3,289 |  |  | 132,060 |
Tax advantaged economic development bonds |  | 15 |  |  | 1,255 |  |  | — |  |  | — |  |  | 15 |  |  | 1,255 |
Total securities held to maturity |  | 4,610 |  |  | 194,606 |  |  | 4,398 |  |  | 113,891 |  |  | 9,008 |  |  | 308,497 |
Total |  | $ | 19,138 |  |  | $ | 907,094 |  |  | $ | 12,266 |  |  | $ | 366,170 |  |  | $ | 31,404 |  |  | $ | 1,273,264 |
Debt Securities The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of September 30, 2022, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at September 30, 2022: AFS municipal bonds and obligations At September 30, 2022, 76 of the 95 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 10.1% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. AFS collateralized mortgage obligations At September 30, 2022, 245 of the 248 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 15.0% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS commercial and residential mortgage-backed securities At September 30, 2022, 136 of the 139 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 15.2% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS corporate bonds At September 30, 2022, 14 of the 15 securities in the Company’s portfolio of AFS corporate bonds were in unrealized loss positions. Aggregate unrealized losses represents 5.5% of the amortized cost of the bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. AFS other bonds and obligations At September 30, 2022, 2 of the 3 securities in the Company’s portfolio of AFS other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represents 18.3% of the amortized cost of the bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. HTM municipal bonds and obligations At September 30, 2022, 148 of the 192 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 16.1% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. HTM collateralized mortgage obligations At September 30, 2022, 13 of the 13 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 15.0% of the amortized cost of the securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing. HTM commercial and residential mortgage-backed securities At September 30, 2022, 17 of the 17 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 17.4% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. HTM tax-advantaged economic development bonds At September 30, 2022, 2 of the 3 securities in the Company’s portfolio of tax-advantaged economic development bonds was in unrealized loss positions. Aggregate unrealized losses represented 10.3% of the amortized cost of the security in unrealized loss positions. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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