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, and the corresponding amounts of gross unrealized and unrecognized gains and losses including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI, at the dates indicated:


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Investment securities available for sale:
U.S. government and agency securities	$	68,514	$	—	$	(3,964)	$	64,550
Municipal securities	146,525		218		(14,246)		132,497
Residential CMO and MBS	481,380		—		(47,668)		433,712
Commercial CMO and MBS	704,156		47		(40,706)		663,497
Corporate obligations	4,000		—		(183)		3,817
Other asset-backed securities	20,394		—		(395)		19,999
Total	$	1,424,969	$	265	$	(107,162)	$	1,318,072


	March 31, 2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	150,969	$	—	$	(28,298)	$	122,671

Residential CMO and MBS	285,337		12		(12,315)		273,034
Commercial CMO and MBS	323,857		—		(34,915)		288,942


Total	$	760,163	$	12	$	(75,528)	$	684,647


	December 31, 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	$	—	$	(5,053)	$	63,859
Municipal securities	171,087		172		(18,233)		153,026
Residential CMO and MBS	479,473		—		(55,087)		424,386
Commercial CMO and MBS	714,136		19		(49,734)		664,421


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Corporate obligations	4,000		—		(166)		3,834
Other asset-backed securities	22,425		14		(522)		21,917
Total	$	1,460,033	$	205	$	(128,795)	$	1,331,443


	December 31, 2022
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	150,936	$	—	$	(33,585)	$	117,351

Residential CMO and MBS	290,318		—		(17,440)		272,878
Commercial CMO and MBS	325,142		—		(41,937)		283,205


Total	$	766,396	$	—	$	(92,962)	$	673,434

The following table presents the amortized cost and fair value of investment securities by contractual maturity at the date indicated. 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.


	March 31, 2023
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	29,254	$	28,962	$	—	$	—
Due after one year through five years	38,323		36,884		—		—
Due after five years through ten years	43,983		41,429		83,235		70,107
Due after ten years	107,479		93,589		67,734		52,564
Total investment securities due at a single maturity date	219,039		200,864		150,969		122,671
Mortgage-backed securities (1)	1,205,930		1,117,208		609,194		561,976
Total investment securities	$	1,424,969	$	1,318,072	$	760,163	$	684,647

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 March 31, 2023 and December 31, 2022.

The following tables present 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:


	March 31, 2023
	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	$	—	$	—	$	64,550	$	(3,964)	$	64,550	$	(3,964)
Municipal securities	5,677		(37)		92,518		(14,209)		98,195		(14,246)
Residential CMO and MBS(1)	142,665		(3,401)		291,047		(44,267)		433,712		(47,668)
Commercial CMO and MBS(1)	350,217		(7,332)		289,192		(33,374)		639,409		(40,706)


	March 31, 2023
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate obligations	3,817		(183)		—		—		3,817		(183)
Other asset-backed securities	9,248		(52)		10,145		(343)		19,393		(395)
Total	$	511,624	$	(11,005)	$	747,452	$	(96,157)	$	1,259,076	$	(107,162)


	December 31, 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	$	51,900	$	(2,031)	$	11,959	$	(3,022)	$	63,859	$	(5,053)
Municipal securities	82,580		(5,585)		40,945		(12,648)		123,525		(18,233)
Residential CMO and MBS(1)	217,949		(14,770)		206,437		(40,317)		424,386		(55,087)
Commercial CMO and MBS(1)	473,580		(16,971)		181,692		(32,763)		655,272		(49,734)
Corporate obligations	3,834		(166)		—		—		3,834		(166)
Other asset-backed securities	16,489		(510)		721		(12)		17,210		(522)
Total	$	846,332	$	(40,033)	$	441,754	$	(88,762)	$	1,288,086	$	(128,795)

The Company evaluated investment securities available for sale as of March 31, 2023 and December 31, 2022 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 March 31, 2023 and December 31, 2022. 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 March 31, 2023 and December 31, 2022.

The Company also evaluated investment securities held to maturity for current expected credit losses as of March 31, 2023 and December 31, 2022. There were no investment securities held to maturity classified as nonaccrual or past due as of March 31, 2023 and December 31, 2022 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 March 31, 2023 and December 31, 2022.


	March 31, 2023				December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Washington and Oregon state public deposits	$	214,331	$	203,452	$	156,784	$	137,931
Federal Reserve Bank credit facility	656,858		588,576		60,660		49,506
Securities sold under agreement to repurchase	49,795		45,832		63,685		55,836
Other securities pledged	54,341		48,846		54,910		48,358
Total	$	975,325	$	886,706	$	336,039	$	291,631

Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $4.3 million and $4.8 million at March 31, 2023 and December 31, 2022, respectively. Accrued interest receivable excluded from the amortized cost on investment securities held to maturity totaled $2.3 million and $2.4 million at March 31, 2023 and December 31, 2022, 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 three months ended March 31, 2023 and 2022.

At December 31, 2022, as a member bank of Visa U.S.A., we held 6,549 shares of Visa Inc. Class B common stock. These shares had a carrying value of zero and were restricted from resale to non-member banks of Visa U.S.A. until their conversion into Class A (voting) shares upon the termination of Visa Inc.'s Covered Litigation escrow account. During the three months ended March 31, 2023, the Bank sold all shares of Visa Inc. Class B common stock and recognized a $1.6 million gain which is included in other income.