XML 20 R11.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 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. There were no investment securities classified as trading at June 30, 2023 or December 31, 2022. (a) Investment Securities by Classification, Type and Maturity 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:
| June 30, 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 |  |  | $ | — |  |  | $ | (4,255) |  |  | $ | 64,259 |
Municipal securities | 145,681 |  |  | 48 |  |  | (15,714) |  |  | 130,015 |
Residential CMO and MBS(1) | 465,625 |  |  | — |  |  | (54,653) |  |  | 410,972 |
Commercial CMO and MBS(1) | 698,833 |  |  | 17 |  |  | (50,509) |  |  | 648,341 |
Corporate obligations | 4,000 |  |  | — |  |  | (226) |  |  | 3,774 |
Other asset-backed securities | 19,491 |  |  | 9 |  |  | (311) |  |  | 19,189 |
Total | $ | 1,402,144 |  |  | $ | 74 |  |  | $ | (125,668) |  |  | $ | 1,276,550 |
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
| June 30, 2023
| Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value
| (In thousands)
Investment securities held to maturity: |  |  |  |  |  |  |
U.S. government and agency securities | $ | 151,005 |  |  | $ | — |  |  | $ | (30,245) |  |  | $ | 120,760 |
Residential CMO and MBS(1) | 280,032 |  |  | — |  |  | (17,219) |  |  | 262,813 |
Commercial CMO and MBS(1) | 323,239 |  |  | — |  |  | (42,002) |  |  | 281,237 |
Total | $ | 754,276 |  |  | $ | — |  |  | $ | (89,466) |  |  | $ | 664,810 |
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
| 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(1) | 479,473 |  |  | — |  |  | (55,087) |  |  | 424,386 |
Commercial CMO and MBS(1) | 714,136 |  |  | 19 |  |  | (49,734) |  |  | 664,421 |
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 |
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
| 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(1) | 290,318 |  |  | — |  |  | (17,440) |  |  | 272,878 |
Commercial CMO and MBS(1) | 325,142 |  |  | — |  |  | (41,937) |  |  | 283,205 |
Total | $ | 766,396 |  |  | $ | — |  |  | $ | (92,962) |  |  | $ | 673,434 |
(1) U.S. government agency and government-sponsored enterprise CMO and MBS. 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.
| June 30, 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 | $ | 30,995 |  |  | $ | 30,804 |  |  | $ | — |  |  | $ | — |
Due after one year through five years | 38,496 |  |  | 36,522 |  |  | — |  |  | — |
Due after five years through ten years | 47,291 |  |  | 44,222 |  |  | 83,244 |  |  | 68,938 |
Due after ten years | 101,413 |  |  | 86,500 |  |  | 67,761 |  |  | 51,822 |
Total investment securities due at a single maturity date | 218,195 |  |  | 198,048 |  |  | 151,005 |  |  | 120,760 |
| June 30, 2023
| Securities Available for Sale |  | Securities Held to Maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
MBS(1) | 1,183,949 |  |  | 1,078,502 |  |  | 603,271 |  |  | 544,050 |
Total investment securities | $ | 1,402,144 |  |  | $ | 1,276,550 |  |  | $ | 754,276 |  |  | $ | 664,810 |
(1)MBS, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their payment speed. 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 June 30, 2023 and December 31, 2022. (b) Unrealized Losses on Investment Securities Available for Sale 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:
| June 30, 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 | $ | — |  |  | $ | — |  |  | $ | 64,259 |  |  | $ | (4,255) |  |  | $ | 64,259 |  |  | $ | (4,255) |
Municipal securities | 28,423 |  |  | (243) |  |  | 90,903 |  |  | (15,471) |  |  | 119,326 |  |  | (15,714) |
Residential CMO and MBS(1) | 94,015 |  |  | (3,598) |  |  | 316,957 |  |  | (51,055) |  |  | 410,972 |  |  | (54,653) |
Commercial CMO and MBS(1) | 170,005 |  |  | (4,692) |  |  | 475,114 |  |  | (45,817) |  |  | 645,119 |  |  | (50,509) |
Corporate obligations | — |  |  | — |  |  | 3,774 |  |  | (226) |  |  | 3,774 |  |  | (226) |
Other asset-backed securities | 4,219 |  |  | (4) |  |  | 12,308 |  |  | (307) |  |  | 16,527 |  |  | (311) |
Total | $ | 296,662 |  |  | $ | (8,537) |  |  | $ | 963,315 |  |  | $ | (117,131) |  |  | $ | 1,259,977 |  |  | $ | (125,668) |
(1) U.S. government agency and government-sponsored enterprise CMO and MBS.
| 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) |
(1) U.S. government agency and government-sponsored enterprise CMO and MBS. (c) ACL on Investment Securities The Company evaluated investment securities available for sale as of June 30, 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 June 30, 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 June 30, 2023 and December 31, 2022. The Company also evaluated investment securities held to maturity for current expected credit losses as of June 30, 2023 and December 31, 2022. There were no investment securities held to maturity classified as nonaccrual or past due as of June 30, 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 June 30, 2023 and December 31, 2022. (d) Realized Gains and Losses During the three months ended June 30, 2023 and 2022 there were no sales of investment securities available for sale. The following table presents the gross realized gains and losses on the sale of investment securities available for sale determined using the specific identification for the dates indicated:
|  |  | Six Months Ended June 30,
|  |  |  |  | 2023 |  | 2022
|  |  |  |  | (In thousands)
Gross realized gains |  |  |  |  | $ | 36 |  |  | $ | — |
Gross realized losses |  |  |  |  | (322) |  |  | — |
Net realized (loss) gain |  |  |  |  | $ | (286) |  |  | $ | — |
(e) Pledged Securities The following table summarizes the amortized cost and fair value of investment securities that were pledged as collateral for the following obligations at the dates indicated:
| June 30, 2023 |  | December 31, 2022
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (In thousands)
State and local governments public deposits | $ | 225,512 |  |  | $ | 210,173 |  |  | $ | 156,784 |  |  | $ | 137,931 |
FRB | 881,662 |  |  | 765,440 |  |  | 60,660 |  |  | 49,506 |
Securities sold under agreement to repurchase | 52,084 |  |  | 46,614 |  |  | 63,685 |  |  | 55,836 |
Other securities pledged | 54,113 |  |  | 47,024 |  |  | 54,910 |  |  | 48,358 |
Total | $ | 1,213,371 |  |  | $ | 1,069,251 |  |  | $ | 336,039 |  |  | $ | 291,631 |
(f) Accrued Interest Receivable Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $4.6 million and $4.8 million at June 30, 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 June 30, 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 the six months ended June 30, 2023 and 2022. (g) Non-Marketable Securities 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 six months ended June 30, 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.

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 The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration