INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2022

Investment Securities Available For Sale [Abstract]

INVESTMENT SECURITIES AVAILABLE FOR SALE

2. INVESTMENT SECURITIES

A summary of amortized cost and approximate fair value of investment securities available for sale and held to maturity included in the Consolidated Statements of Condition as of March 31, 2022 and December 31, 2021 follows:

	March 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized			Allowance for		Fair
(In thousands)	Cost		Gains		Losses			Credit Losses		Value
Securities Available for Sale:
U.S government-sponsored agencies	$	244,761	$	—	$	(26,498	)	$	—	$	218,263
Mortgage-backed securities–residential		364,177		378		(24,042	)		—		340,513
SBA pool securities		38,326		2		(2,853	)		—		35,475
State and political subdivisions		4,523		3		(6	)		—		4,520
Corporate bond		2,500		—		(108	)		—		2,392
Total securities available for sale	$	654,287	$	383	$	(53,507	)	$	—	$	601,163
Securities Held to Maturity:
U.S. government-sponsored agencies	$	40,000	$	—	$	(1,982	)	$	—	$	38,018
Mortgage-backed securities–residential		66,816		—		(4,520	)		—		62,296
Total	$	106,816	$	—	$	(6,502	)	$	—	$	100,314

	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S government-sponsored agencies	$	280,045	$	—	$	(7,824	)	$	272,221
Mortgage-backed securities–residential		481,062		3,849		(7,937	)		476,974
SBA pool securities		40,649		12		(1,100	)		39,561
State and political subdivisions		5,431		45		—			5,476
Corporate bond		2,500		21		—			2,521
Total securities available for sale	$	809,687	$	3,927	$	(16,861	)	$	796,753
Securities Held to Maturity:
U.S. government-sponsored agencies	$	40,000	$	7	$	(25	)	$	39,982
Mortgage-backed securities–residential		68,680		67		(269	)		68,478
Total	$	108,680	$	74	$	(294	)	$	108,460

The following table presents a summary of the gross gains, gross losses and net tax benefit related to proceeds on sales of securities available for sale for the quarter ended March 31, 2022:

(In thousands)	March 31, 2022
Proceeds from sales	$	120,245
Gross gains		3
Gross losses		(6,612	)
Net tax (benefit)/expense		1,581

The following tables present the Company’s available for sale and held to maturity securities with continuous unrealized losses and the approximate fair value of these investments as of March 31, 2022 and December 31, 2021.

	March 31, 2022
	Duration of Unrealized Loss
	Less Than 12 Months					12 Months or Longer					Total
	Approximate					Approximate					Approximate
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
Securities Available for Sale:
U.S. government-sponsored agencies	$	90,578	$	(9,277	)	$	127,685	$	(17,221	)	$	218,263	$	(26,498	)
Mortgage-backed securities residential		132,068		(7,083	)		156,945		(16,959	)		289,013		(24,042	)
SBA pool securities		24,484		(1,653	)		9,393		(1,200	)		33,877		(2,853	)
State and political subdivisions		1,609		(6	)		—		—			1,609		(6	)
Corporate bond		2,392		(108	)		—		—			2,392		(108	)
Total securities available for sale	$	251,131	$	(18,127	)	$	294,023	$	(35,380	)	$	545,154	$	(53,507	)
Securities Held to Maturity:
U.S. government-sponsored agencies	$	38,018	$	(1,982	)	$	—	$	—		$	38,018	$	(1,982	)
Mortgage-backed securities residential		62,296		(4,520	)		—		—			62,296		(4,520	)
Total securities held to maturity	$	100,314	$	(6,502	)	$	—	$	—		$	100,314	$	(6,502	)
Total securities	$	351,445	$	(24,629	)	$	294,023	$	(35,380	)	$	645,468	$	(60,009	)

	December 31, 2021
	Duration of Unrealized Loss
	Less Than 12 Months					12 Months or Longer					Total
	Approximate					Approximate					Approximate
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
Securities Available for Sale:
U.S. government-sponsored agencies	$	243,187	$	(6,858	)	$	29,034	$	(966	)	$	272,221	$	(7,824	)
Mortgage-backed securities residential		265,403		(7,053	)		33,455		(884	)		298,858		(7,937	)
SBA pool securities		22,057		(567	)		10,562		(533	)		32,619		(1,100	)
Total securities available for sale	$	530,647	$	(14,478	)	$	73,051	$	(2,383	)	$	603,698	$	(16,861	)
Securities Held to Maturity:
U.S. government-sponsored agencies	$	24,975	$	(25	)	$	—	$	—		$	24,975	$	(25	)
Mortgage-backed securities residential		48,307		(269	)		—		—			48,307		(269	)
Total securities held to maturity	$	73,282	$	(294	)	$	—	$	—		$	73,282	$	(294	)
Total securities	$	603,929	$	(14,772	)	$	73,051	$	(2,383	)	$	676,980	$	(17,155	)

Available for sale and held to maturity securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statements of Income when management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of securities currently in a continuous loss position continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at March 31, 2022. Primarily all of the investment securities are backed by loans guaranteed by either U.S. government agencies or U.S government-sponsored entities, and management believes that default is highly unlikely given the lack of historical credit losses and governmental backing. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. Therefore, no allowance for credit losses was recorded at March 31, 2022.

The Company has an investment in a CRA investment fund with a fair value of $14.0 million at March 31, 2022. This investment is classified as an equity security in our Consolidated Statements of Condition. This security had a loss of $682,000 for the three months ended March 31, 2022. This amount is included in securities gains/(losses), net on the Consolidated Statements of Income.