The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities.

The following tables present the amortized cost and fair value of investment securities at the dates indicated and the corresponding amounts of gross unrealized gains and losses, including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI:


	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Investment securities available for sale:
U.S. government and agency securities	$	68,912	$	—	$	(5,163)	$	63,749
Municipal securities	206,767		51		(21,105)		185,713
Residential CMO and MBS	494,330		6		(55,966)		438,370
Commercial CMO and MBS	691,836		29		(52,424)		639,441
Corporate obligations	6,001		—		(167)		5,834
Other asset-backed securities	23,594		19		(578)		23,035
Total	$	1,491,440	$	105	$	(135,403)	$	1,356,142

Investment securities held to maturity:
U.S. government and agency securities	$	150,948	$	—	$	(32,916)	$	118,032

Residential CMO and MBS	296,432		—		(19,168)		277,264
Commercial CMO and MBS	325,939		—		(43,900)		282,039


Total	$	773,319	$	—	$	(95,984)	$	677,335


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Investment securities available for sale:
U.S. government and agency securities	$	21,494	$	55	$	(176)	$	21,373
Municipal securities	213,158		8,908		(854)		221,212
Residential CMO and MBS	307,366		2,111		(2,593)		306,884
Commercial CMO and MBS	313,169		3,891		(1,199)		315,861
Corporate obligations	2,007		7		—		2,014
Other asset-backed securities	26,638		369		(16)		26,991
Total	$	883,832	$	15,341	$	(4,838)	$	894,335

Investment securities held to maturity:
U.S. government and agency securities	$	141,011	$	120	$	(1,768)	$	139,363

Residential CMO and MBS	24,529		—		(153)		24,376
Commercial CMO and MBS	217,853		—		(5,261)		212,592


Total	$	383,393	$	120	$	(7,182)	$	376,331

The amortized cost and fair value of investment securities at September 30, 2022, by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	26,280	$	25,952	$	—	$	—
Due after one year through five years	63,151		60,858		—		—
Due after five years through ten years	67,834		63,738		83,219		68,150
Due after ten years	124,415		104,748		67,729		49,882
Total investment securities due at a single maturity date	281,680		255,296		150,948		118,032
Mortgage-backed securities (1)	1,209,760		1,100,846		622,371		559,303
Total investment securities	$	1,491,440	$	1,356,142	$	773,319	$	677,335

There were no holdings of investment securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity at September 30, 2022 and December 31, 2021.

The following tables show the gross unrealized losses and fair value of the Company’s investment securities available for sale for which an ACL on investment securities available for sale has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at the dates indicated:


	September 30, 2022
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government and agency securities	$	58,025	$	(4,176)	$	5,724	$	(987)	$	63,749	$	(5,163)
Municipal securities	148,054		(12,031)		27,731		(9,074)		175,785		(21,105)
Residential CMO and MBS	308,142		(28,668)		128,304		(27,298)		436,446		(55,966)
Commercial CMO and MBS	611,399		(49,077)		18,636		(3,347)		630,035		(52,424)
Corporate obligations	5,834		(167)		—		—		5,834		(167)
Other asset-backed securities	17,410		(563)		834		(15)		18,244		(578)
Total	$	1,148,864	$	(94,682)	$	181,229	$	(40,721)	$	1,330,093	$	(135,403)


	December 31, 2021
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
U.S. government and agency securities	$	14,828	$	(176)	$	—	$	—	$	14,828	$	(176)
Municipal securities	29,774		(619)		9,351		(235)		39,125		(854)
Residential CMO and MBS	204,039		(2,470)		19,862		(123)		223,901		(2,593)
Commercial CMO and MBS	83,283		(1,161)		1,936		(38)		85,219		(1,199)

Other asset-backed securities	2,763		(9)		1,118		(7)		3,881		(16)
Total	$	334,687	$	(4,435)	$	32,267	$	(403)	$	366,954	$	(4,838)

The Company evaluated investment securities available for sale as of September 30, 2022 and December 31, 2021 and determined that any declines in fair value were attributable to changes in interest rates relative to where these investments fall within the yield curve and individual characteristics. Management monitors published credit ratings for adverse changes for all

rated investment securities and none of these securities had a below investment grade credit rating as of both September 30, 2022 and December 31, 2021. In addition, the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of the amortized cost basis, which may be upon maturity. Therefore, no ACL on investment securities available for sale was recorded as of September 30, 2022 and December 31, 2021.

The Company also evaluated investment securities held to maturity for current expected credit losses as of September 30, 2022 and December 31, 2021. There were no investment securities held to maturity classified as nonaccrual or past due as of September 30, 2022 and December 31, 2021 and all were issued by the U.S. government and its agencies and either explicitly or implicitly guaranteed by the U.S. government, highly rated by major credit rating agencies and had a long history of no credit losses. Accordingly, the Company did not measure expected credit losses on investment securities held to maturity since the historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Therefore, no ACL on investment securities held to maturity was recorded as of September 30, 2022 and December 31, 2021.

No realized gains or losses on the sale of investment securities available for sale were recognized during the three months ended September 30, 2022 and 2021. No realized gains or losses and $29,000 in gross realized gains on the sale of investment securities available for sale were recognized during the nine months ended September 30, 2022 and 2021, respectively.


	September 30, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Washington and Oregon state public deposits	$	158,082	$	138,003	$	128,216	$	130,217
Federal Reserve Bank credit facility	60,763		49,037		61,057		59,674
Securities sold under agreement to repurchase	64,087		55,825		59,887		59,655
Other securities pledged	55,600		48,785		56,419		55,633
Total	$	338,532	$	291,650	$	305,579	$	305,179

Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $4.7 million and $3.5 million at September 30, 2022 and December 31, 2021, respectively. Accrued interest receivable excluded from the amortized cost on investment securities held to maturity totaled $2.3 million and $1.1 million at September 30, 2022 and December 31, 2021, respectively.

No amounts of accrued interest receivable on investment securities available for sale or held to maturity were reversed against interest income on investment securities during the three or nine months ended September 30, 2022 and 2021.