Investment Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Fair value of equity securities with readily determinable fair values at March 31, 2024 and December 31, 2023, are as follows:


(In thousands)	Fair Value at Beginning of Period		Sales/reclassification		(Losses) Gains		Losses on sales of securities		Fair Value at End of Period
Three Months Ended March 31, 2024
CRA Mutual Fund	$	928	$	—	$	(10)	$	—	$	918




Twelve Months Ended December 31, 2023
CRA Mutual Fund	$	915	$	—	$	13	$	—	$	928
Canapi Ventures SBIC Fund	206		206		—		—		—
Stock in other banks	598		592		5		(11)		—
	$	1,719	$	798	$	18	$	(11)	$	928

Amortized cost and fair value of securities were as follows:


(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2024
Available for Sale
U.S. Government and agencies	$	176,049	$	—	$	20,228	$	155,821
Collateralized mortgage obligations	43,892		—		4,386		39,506
Residential mortgage-backed securities	173,920		—		21,340		152,580
Commercial mortgage-backed securities	66,136		3		4,485		61,654

Corporate bonds	18,109		—		2,556		15,553
	$	478,106	$	3	$	52,995	$	425,114

Held to Maturity

State and municipal	$	62,310	$	—	$	6,387	$	55,923
Residential mortgage-backed securities	2,284		—		123		2,161
	$	64,594	$	—	$	6,510	$	58,084

December 31, 2023
Available for Sale
U.S. Government and agencies	$	176,458	$	—	$	19,663	$	156,795
Collateralized mortgage obligations	45,189		—		4,105		41,084
Residential mortgage-backed securities	178,441		19		19,630		158,830
Commercial mortgage-backed securities	69,498		344		4,552		65,290

Corporate bonds	32,326		202		2,834		29,694
	$	501,912	$	565	$	50,784	$	451,693

Held to Maturity

State and municipal	$	62,133	$	—	$	5,419	$	56,714
Residential mortgage-backed securities	2,467		—		124		2,343
	$	64,600	$	—	$	5,543	$	59,057

The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2024, and December 31, 2023:


	Less than 12 Months				12 Months or More				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2024
Available for Sale
U.S. Government and agencies	$	—	$	—	$	155,821	$	20,228	$	155,821	$	20,228
Collateralized mortgage obligations	—		—		39,506		4,386		39,506		4,386
Residential mortgage-backed securities	2,737		6		149,843		21,334		152,580		21,340
Commercial mortgage-backed securities	26,850		92		29,847		4,393		56,697		4,485

Corporate bonds	—		—		15,553		2,556		15,553		2,556
	$	29,587	$	98	$	390,570	$	52,897	$	420,157	$	52,995

Held to Maturity
State and municipal	$	—	$	—	$	55,923	$	6,387	$	55,923	$	6,387
Residential mortgage-backed securities	—		—		2,161		123		2,161		123
	$	—	$	—	$	58,084	$	6,510	$	58,084	$	6,510

December 31, 2023
Available for Sale
U.S. Government and agencies	$	—	$	—	$	156,795	$	19,663	$	156,795	$	19,663
Collateralized mortgage obligations	—		—		41,085		4,104		41,085		4,104
Residential mortgage-backed securities	—		—		156,295		19,630		156,295		19,630
Commercial mortgage-backed securities	—		—		33,063		4,553		33,063		4,553

Corporate bonds	—		—		15,279		2,834		15,279		2,834
	$	—	$	—	$	402,517	$	50,784	$	402,517	$	50,784

Held to Maturity

State and municipal	$	—	$	—	$	56,713	$	5,419	$	56,713	$	5,419
Residential mortgage-backed securities	—		—		2,344		124		2,344		124
	$	—	$	—	$	59,057	$	5,543	$	59,057	$	5,543

All mortgage-backed security investments are government sponsored enterprise pass-through instruments issued by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation or they are issued by Government National Mortgage Association which is backed by the U.S. government.

The Company evaluates AFS debt securities for impairment in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis is due to credit-related factors or noncredit-related factors. The Company evaluates HTM debt securities for expected credit losses at each measurement date to determine if an ACL is required. In estimating credit events management considers whether it intends to sell the security, or if it is more likely than not that it will be required to sell the security before anticipated recovery, or if it does not expect to recover the entire amortized cost basis. The Corporation does not have an ACL for HTM investment securities as of March 31, 2024 and December 31, 2023.

Amortized cost and fair value at March 31, 2024, by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Securities not due at a single maturity date are shown separately.


	Available for Sale				Held to Maturity
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
1 year or less	$	15,609	$	15,265	$	—	$	—
Over 1 year through 5 years	117,054		105,401		1,960		1,732
Over 5 years through 10 years	59,495		49,245		23,643		23,572
Over 10 years	2,000		1,463		36,707		30,619
Mortgage-backed securities	283,948		253,740		2,284		2,161
	$	478,106	$	425,114	$	64,594	$	58,084

The proceeds from sales and calls of securities and the associated gains and losses are listed below:


	Three Months Ended March 31,
(In thousands)	2024		2023
Proceeds	$	23,561	$	57,524
Gross gains	87		228
Gross losses	18		421

At March 31, 2024, and December 31, 2023, securities with a carrying value of $186.1 million and $233.7 million, respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes.