XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.24.3

INVESTMENTS | 9 Months Ended
--- | ---
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
INVESTMENTS | INVESTMENTS Trading Securities Trading securities are reported on the Company's consolidated statements of condition at fair value. As of September 30, 2024 and December 31, 2023, the fair value of the Company's trading securities was $5.1 million and $4.6 million, respectively. These securities are held in a rabbi trust account and invested in mutual funds. The trading securities will be used for future payments associated with the Company's deferred compensation plan for eligible employees and directors. AFS Debt Securities AFS debt securities are reported on the Company's consolidated statements of condition at fair value. The following table summarizes the amortized cost, estimated fair value, and unrealized gains (losses) of AFS debt securities, as of the dates indicated:
(In thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
September 30, 2024 |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 5,424 |  |  | $ | 1 |  |  | $ | (50) |  |  | $ | 5,375 |
MBS issued or guaranteed by U.S. government-sponsored enterprises |  | 497,174 |  |  | 1,011 |  |  | (54,476) |  |  | 443,709 |
CMO issued or guaranteed by U.S. government-sponsored enterprises |  | 140,490 |  |  | 917 |  |  | (7,523) |  |  | 133,884 |
Corporate bonds |  | 21,680 |  |  | 8 |  |  | (1,445) |  |  | 20,243 |
Total AFS debt securities |  | $ | 664,768 |  |  | $ | 1,937 |  |  | $ | (63,494) |  |  | $ | 603,211 |
December 31, 2023 |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | $ | 6,429 |  |  | $ | 1 |  |  | $ | (44) |  |  | $ | 6,386 |
MBS issued or guaranteed by U.S. government-sponsored enterprises |  | 525,439 |  |  | 630 |  |  | (65,978) |  |  | 460,091 |
CMO issued or guaranteed by U.S. government-sponsored enterprises |  | 149,387 |  |  | 1,161 |  |  | (9,537) |  |  | 141,011 |
Corporate bonds |  | 21,682 |  |  | 1 |  |  | (3,363) |  |  | 18,320 |
Total AFS debt securities |  | $ | 702,937 |  |  | $ | 1,793 |  |  | $ | (78,922) |  |  | $ | 625,808 |
As of September 30, 2024 and December 31, 2023, there was no allowance carried on AFS debt securities. In 2022, the Company transferred securities with a fair value of $520.3 million from AFS to HTM. The unrealized losses on the AFS debt securities at the time of transfer were $72.1 million, pre-tax, and were reported within AOCI. These unrealized losses are being amortized over the remaining life of the securities from AOCI into the HTM securities on the consolidated statements of condition. As of September 30, 2024, the net unrealized losses on the transferred securities reported within AOCI were $43.0 million, net of a deferred tax asset of $11.8 million, and as of December 31, 2023 were $46.9 million, net of a deferred tax asset of $12.8 million. The net unrealized losses on AFS debt securities reported within AOCI (excluding the aforementioned securities transferred from AFS to HTM) as of September 30, 2024 and December 31, 2023, were $48.3 million, net of a deferred tax asset of $13.2 million and $60.5 million, net of a deferred tax asset of $16.6 million, respectively. The following table presents the Company's AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, segregated by the length of time the securities have been in a continuous loss position, as of the dates indicated:
|  |  |  | Less Than 12 Months |  | 12 Months or More |  | Total
(In thousands, except number of holdings) |  | Number of Holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | 7 |  |  | $ | 893 |  |  | $ | (7) |  |  | $ | 2,781 |  |  | $ | (43) |  |  | $ | 3,674 |  |  | $ | (50) |
MBS issued or guaranteed by U.S. government-sponsored enterprises |  | 139 |  |  | 12,094 |  |  | (19) |  |  | 379,019 |  |  | (54,457) |  |  | 391,113 |  |  | (54,476) |
CMO issued or guaranteed by U.S. government-sponsored enterprises |  | 43 |  |  | 15,489 |  |  | (90) |  |  | 59,171 |  |  | (7,433) |  |  | 74,660 |  |  | (7,523) |
Corporate bonds |  | 11 |  |  | — |  |  | — |  |  | 19,234 |  |  | (1,445) |  |  | 19,234 |  |  | (1,445) |
Total AFS debt securities |  | 200 |  |  | $ | 28,476 |  |  | $ | (116) |  |  | $ | 460,205 |  |  | $ | (63,378) |  |  | $ | 488,681 |  |  | $ | (63,494) |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions |  | 6 |  |  | $ | 2,345 |  |  | $ | (6) |  |  | $ | 1,437 |  |  | $ | (38) |  |  | $ | 3,782 |  |  | $ | (44) |
MBS issued or guaranteed by U.S. government-sponsored enterprises |  | 145 |  |  | 13,474 |  |  | (23) |  |  | 407,200 |  |  | (65,955) |  |  | 420,674 |  |  | (65,978) |
CMO issued or guaranteed by U.S. government-sponsored enterprises |  | 43 |  |  | 19,620 |  |  | (45) |  |  | 62,869 |  |  | (9,492) |  |  | 82,489 |  |  | (9,537) |
Corporate bonds |  | 11 |  |  | — |  |  | — |  |  | 17,319 |  |  | (3,363) |  |  | 17,319 |  |  | (3,363) |
Total AFS debt securities |  | 205 |  |  | $ | 35,439 |  |  | $ | (74) |  |  | $ | 488,825 |  |  | $ | (78,848) |  |  | $ | 524,264 |  |  | $ | (78,922) |
For the three and nine months ended September 30, 2024 and 2023, the unrealized losses on the Company's AFS debt securities have not been recognized into income because management does not intend to sell, and it is not more-likely-than-not it will be required to sell, any of the AFS debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and were not reflective of credit events. Agency-backed and government-sponsored enterprise securities have a long history of no credit losses, including during times of severe stress. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and securities backed by government-sponsored enterprises carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. Municipal debt holdings are comprised only of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. Corporate bonds are primarily comprised of investment grade senior notes and senior subordinated notes of other financial institutions.
As of September 30, 2024 and December 31, 2023, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $1.7 million at each date, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date. The amortized cost and estimated fair values of the Company's AFS debt securities by contractual maturity as of September 30, 2024, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-related securities are shown in total, as their maturities are highly variable.
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | — |  |  | $ | — |
Due after one year through five years |  | 10,944 |  |  | 10,439 |
Due after five years through ten years |  | 16,160 |  |  | 15,179 |
Due after ten years |  | — |  |  | — |
Subtotal |  | 27,104 |  |  | 25,618 |
Mortgage-related securities |  | 637,664 |  |  | 577,593 |
Total |  | $ | 664,768 |  |  | $ | 603,211 |
HTM Debt Securities HTM debt securities are reported on the Company's consolidated statements of condition at amortized cost. The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of HTM debt securities as of the dates indicated:
(In thousands) |  | Amortized Cost(1) |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
September 30, 2024 |  |  |  |  |  |  |  |
Obligations of U.S. government-sponsored enterprises |  | $ | 7,695 |  |  | $ | — |  |  | $ | (329) |  |  | $ | 7,366 |
Obligations of states and political subdivisions |  | 56,476 |  |  | 673 |  |  | (531) |  |  | 56,618 |
MBS issued or guaranteed by U.S. government-sponsored enterprises |  | 295,229 |  |  | — |  |  | (16,269) |  |  | 278,960 |
CMO issued or guaranteed by U.S. government-sponsored enterprises |  | 147,551 |  |  | 393 |  |  | (9,731) |  |  | 138,213 |
Corporate bonds |  | 19,300 |  |  | 933 |  |  | (771) |  |  | 19,462 |
Total HTM debt securities |  | $ | 526,251 |  |  | $ | 1,999 |  |  | $ | (27,631) |  |  | $ | 500,619 |
December 31, 2023 |  |  |  |  |  |  |  |
Obligations of U.S. government-sponsored enterprises |  | $ | 7,593 |  |  | $ | — |  |  | $ | (528) |  |  | $ | 7,065 |
Obligations of states and political subdivisions |  | 56,262 |  |  | 1,242 |  |  | (731) |  |  | 56,773 |
MBS issued or guaranteed by U.S. government-sponsored enterprises |  | 304,850 |  |  | — |  |  | (21,623) |  |  | 283,227 |
CMO issued or guaranteed by U.S. government-sponsored enterprises |  | 157,118 |  |  | 515 |  |  | (13,497) |  |  | 144,136 |
Corporate bonds |  | 19,108 |  |  | 1,377 |  |  | (1,091) |  |  | 19,394 |
Total HTM debt securities |  | $ | 544,931 |  |  | $ | 3,134 |  |  | $ | (37,470) |  |  | $ | 510,595 |
(1)Amortized cost presented above includes unamortized unrealized losses from the aforementioned transfer from AFS to HTM securities that occurred in 2022. As of September 30, 2024 and December 31, 2023, the unamortized unrealized losses on the 2022 transfer included within amortized cost were as follows: (1) $890,000 and $992,000 in obligations of U.S. government-sponsored enterprises, (2) $5.3 million and $5.6 million in obligations of state and political subdivisions, (3) $31.7 million and $34.6 million in MBS, (4) $16.9 million and $18.4 million in CMO, and (5) $62,000 and $85,000 in corporate bonds, respectively. In the first quarter of 2023, the Company wrote-off its $1.8 million Signature Bank corporate bond in response to Signature Bank's failure. The write-off was recorded as a provision on HTM debt securities in the consolidated statements of income. During the first quarter of 2024, the Company sold the Signature Bank corporate bond and recovered $910,000, which was recorded as a credit for credit losses on HTM debt securities in the consolidated statements of income. In addition to writing off the Signature Bank corporate bond in the first quarter of 2023, the Company also wrote-off the bond’s associated accrued interest receivable totaling $8,000 and recorded a reversal of interest income on the consolidated statements of income for the nine months ended September 30, 2023. The following table presents the activity in the ACL on HTM debt securities for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Beginning balance | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
HTM debt securities recovered (charged-off) | — |  |  | — |  |  | 910 |  |  | (1,838) |
(Credit) provision on HTM debt securities | — |  |  | — |  |  | (910) |  |  | 1,838 |
Ending balance | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
The Company evaluated its HTM debt securities with an amortized cost as of September 30, 2024 and December 31, 2023, and determined that the expected credit loss on its HTM portfolio was immaterial, and therefore it did not carry an ACL on the HTM portfolio at either date. The HTM debt securities portfolio is comprised of the same types of securities as the AFS debt securities portfolio. Refer to the discussion above for considerations of credit risk. As of September 30, 2024 and December 31, 2023, none of the Company's HTM debt securities were past due or on non-accrual status. The Company did not recognize any interest income on non-accrual HTM debt securities during the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, total accrued interest receivable on HTM debt securities was $1.5 million and $1.7 million, respectively, and no allowance was provided for. Accrued interest on HTM debt securities is reported within other assets on the consolidated statements of condition and excluded from reported amortized cost. The amortized cost and estimated fair values of HTM debt securities by contractual maturity as of September 30, 2024 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-related securities are shown in total, as their maturities are highly variable.
(In thousands) |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 501 |  |  | $ | 499 |
Due after one year through five years |  | 1,790 |  |  | 1,807 |
Due after five years through ten years |  | 40,246 |  |  | 40,085 |
Due after ten years |  | 40,934 |  |  | 41,055 |
Subtotal |  | 83,471 |  |  | 83,446 |
Mortgage-related securities |  | 442,780 |  |  | 417,173 |
Total |  | $ | 526,251 |  |  | $ | 500,619 |
AFS and HTM Debt Securities Pledged As of September 30, 2024 and December 31, 2023, AFS and HTM debt securities with an amortized cost of $513.6 million and $675.5 million and estimated fair values of $466.5 million and $607.9 million, respectively, were pledged to secure FHLBB advances, FRB advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law. Other Investments The Company's FHLBB and FRB common stock are reported at cost within other investments on the consolidated statements of condition. The Company evaluates these investments for impairment based on the ultimate recoverability of the par value. The Company did not record any impairment on its FHLBB and FRB stock for the three and nine months ended September 30, 2024 and 2023. The following table summarizes the Company's investment in FHLBB stock and FRB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:
(In thousands) |  | September 30, 2024 |  | December 31, 2023
FHLBB |  | $ | 17,140 |  |  | $ | 10,020 |
FRB |  | 5,373 |  |  | 5,374 |
Total other investments |  | $ | 22,513 |  |  | $ | 15,394 |

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