INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2024

Investment Securities Available For Sale [Abstract]

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 December 31, 2024 and 2023 follows:


	2024
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			For Credit		Fair
(In thousands)	Cost		Gains		Losses			Losses		Value
Securities Available for Sale:
U.S. government-sponsored agencies	$	244,813	$	—	$	(47,899	)	$	—	$	196,914
Mortgage-backed securities-residential		595,789		1,086		(48,263	)		—		548,612
SBA pool securities		27,772		—		(3,290	)		—		24,482
Corporate bond		15,500		105		(1,069	)		—		14,536
Total securities available for sale	$	883,874	$	1,191	$	(100,521	)	$	—	$	784,544
Securities Held to Maturity:
U.S. government-sponsored agencies	$	40,000	$	—	$	(2,666	)	$	—	$	37,334
Mortgage-backed securities-residential		61,635		—		(10,319	)		—		51,316
Total securities held to maturity	$	101,635	$	—	$	(12,985	)	$	—	$	88,650


	2023
			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			For Credit		Fair
(In thousands)	Cost		Gains		Losses			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 amortized cost and fair value of investment securities available for sale and held to maturity as of December 31, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity, such as mortgage-backed securities and SBA pool securities are shown separately.


(In thousands)	Available for Sale				Held to Maturity
Maturing in:	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	—	$	—	$	—	$	—
After one year through five years		45,000		39,764		40,000		37,334
After five years through ten years		150,450		123,093		—		—
After ten years		64,863		48,593		—		—
		260,313		211,450		40,000		37,334
Mortgage-backed securities-residential		595,789		548,612		61,635		51,316
SBA pool securities		27,772		24,482		—		—
Total	$	883,874	$	784,544	$	101,635	$	88,650

Securities available for sale with a fair value of $558.9 million and $434.6 million as of December 31, 2024 and December 31, 2023, respectively, were pledged, but not necessarily encumbered, to secure public funds and for other purposes required or permitted by law. In addition, securities held to maturity with a carrying value of $99.6 million and $107.8 million were also pledged as of December 31, 2024 and December 31, 2023, respectively, for the same purposes.

The following is a summary of gross gains, gross losses and net tax benefit related to proceeds on sales of securities available for sale for the years ended December 31:


(In thousands)	2024		2023		2022
Proceeds on sales	$	—	$	—	$	118,972
Gross gains		—		—		3
Gross losses		—		—		(6,612	)
Net tax benefit		—		—		1,581

The following table presents 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 December 31, 2024 and 2023.


	2024
	Duration of Unrealized Loss
	Less Than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In thousands)	Value		Losses			Value		Losses			Value		Losses
Securities Available for Sale:
U.S. government- sponsored agencies	$	—	$	—		$	196,914	$	(47,899	)	$	196,914	$	(47,899	)
Mortgage-backed securities-residential		171,531		(2,063	)		216,735		(46,200	)		388,266		(48,263	)
SBA pool securities		4,861		(11	)		19,621		(3,279	)		24,482		(3,290	)
Corporate bond		—		—			8,931		(1,069	)		8,931		(1,069	)
Total securities available for sale	$	176,392	$	(2,074	)	$	442,201	$	(98,447	)	$	618,593	$	(100,521	)
Securities Held to Maturity:
U.S. government- sponsored agencies	$	—	$	—		$	37,334	$	(2,666	)	$	37,334	$	(2,666	)
Mortgage-backed securities-residential		—		—			51,316		(10,319	)		51,316		(10,319	)
Total securities held to maturity	$	—	$	—		$	88,650	$	(12,985	)	$	88,650	$	(12,985	)
Total securities	$	176,392	$	(2,074	)	$	530,851	$	(111,432	)	$	707,243	$	(113,506	)


	2023
	Duration of Unrealized Loss
	Less Than 12 Months					12 Months or Longer					Total
	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 unrealized loss 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 unrealized loss on available for sale securities 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 December 31, 2024. 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 were 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 years ended December 31, 2024, December 31, 2023 or December 31, 2022, respectively.

The Company has an investment in a CRA investment fund with a fair value of $13.0 million and $13.2 million at December 31, 2024 and 2023, respectively. The investment is classified as an equity security in our Consolidated Statements of Condition. This security had a loss of $125,000 for the year ended December 31, 2024, a gain of $181,000 for the year ended December 31, 2023 and a loss of $1.7 million for the year ended December 31, 2022. This amount is included in the fair value adjustment for equity securities on the Consolidated Statements of Income. Additionally, the Company sold its Visa B shares which resulted in a positive fair value adjustment to equity securities of $953,000 recognized in our Consolidated Statements of Income during the year ended December 31, 2024.