INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2024

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, 2024 and December 31, 2023 follows:


	March 31, 2024
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for		Fair
(In thousands)	Cost		Gains		Losses			Credit Losses		Value
Securities Available for Sale:
U.S government-sponsored agencies	$	244,799	$	—	$	(49,782	)	$	—	$	195,017
Mortgage-backed securities–residential		371,821		95		(46,780	)		—		325,136
SBA pool securities		26,233		—		(3,939	)		—		22,294
Corporate bond		10,000		—		(1,577	)		—		8,423
Total securities available for sale	$	652,853	$	95	$	(102,078	)	$	—	$	550,870
Securities Held to Maturity:
U.S. government-sponsored agencies	$	40,000	$	—	$	(3,687	)	$	—	$	36,313
Mortgage-backed securities–residential		66,498		—		(10,468	)		—		56,030
Total securities held to maturity	$	106,498	$	—	$	(14,155	)	$	—	$	92,343


	December 31, 2023
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for		Fair
(In thousands)	Cost		Gains		Losses			Credit Losses		Value
Securities Available for Sale:
U.S government-sponsored agencies	$	244,794	$	—	$	(47,103	)	$	—	$	197,691
Mortgage-backed securities–residential		363,893		80		(43,177	)		—		320,796
SBA pool securities		27,148		—		(3,744	)		—		23,404
Corporate bond		10,000		—		(1,274	)		—		8,726
Total securities available for sale	$	645,835	$	80	$	(95,298	)	$	—	$	550,617
Securities Held to Maturity:
U.S. government-sponsored agencies	$	40,000	$	—	$	(3,369	)	$	—	$	36,631
Mortgage-backed securities–residential		67,755		—		(9,971	)		—		57,784
Total securities held to maturity	$	107,755	$	—	$	(13,340	)	$	—	$	94,415

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, 2024 and December 31, 2023.


	March 31, 2024
	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	$	—	$	—		$	195,017	$	(49,782	)	$	195,017	$	(49,782	)
Mortgage-backed securities residential		25,360		(738	)		223,708		(46,042	)		249,068		(46,780	)
SBA pool securities		639		(2	)		21,655		(3,937	)		22,294		(3,939	)
Corporate bond		—		—			8,423		(1,577	)		8,423		(1,577	)
Total securities available for sale	$	25,999	$	(740	)	$	448,803	$	(101,338	)	$	474,802	$	(102,078	)
Securities Held to Maturity:
U.S. government-sponsored agencies	$	—	$	—		$	36,313	$	(3,687	)	$	36,313	$	(3,687	)
Mortgage-backed securities residential		7,479		(186	)		48,551		(10,282	)		56,030		(10,468	)
Total securities held to maturity	$	7,479	$	(186	)	$	84,864	$	(13,969	)	$	92,343	$	(14,155	)
Total securities	$	33,478	$	(926	)	$	533,667	$	(115,307	)	$	567,145	$	(116,233	)


	December 31, 2023
	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	$	—	$	—		$	197,691	$	(47,103	)	$	197,691	$	(47,103	)
Mortgage-backed securities residential		36,634		(963	)		217,513		(42,214	)		254,147		(43,177	)
SBA pool securities		655		(1	)		22,749		(3,743	)		23,404		(3,744	)
Corporate bond		—		—			8,726		(1,274	)		8,726		(1,274	)
Total securities available for sale	$	37,289	$	(964	)	$	446,679	$	(94,334	)	$	483,968	$	(95,298	)
Securities Held to Maturity:
U.S. government-sponsored agencies	$	—	$	—		$	36,631	$	(3,369	)	$	36,631	$	(3,369	)
Mortgage-backed securities residential		9,647		(135	)		48,137		(9,836	)		57,784		(9,971	)
Total securities held to maturity	$	9,647	$	(135	)	$	84,768	$	(13,205	)	$	94,415	$	(13,340	)
Total securities	$	46,936	$	(1,099	)	$	531,447	$	(107,539	)	$	578,383	$	(108,638	)

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, 2024. Substantially 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 for the quarters ended March 31, 2024 or 2023, respectively.

The Company has an investment in a CRA investment fund with a fair value of $13.1 million at March 31, 2024. This investment is classified as an equity security in our Consolidated Statements of Condition. This security had a loss of $111,000 for the three months ended March 31, 2024. This amount was included in the fair value adjustment for CRA equity security on the Consolidated Statements of Income.