Equity Investments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Equity Investments

EQUITY INVESTMENTS

Equity investments with readily determinable fair values at December 31, 2022 and 2021, consisted of mutual funds in the amounts of $4.3 million and $26.8 million, respectively, and were included in “Equity investments” on the Consolidated Statements of Financial Condition.

The changes in fair value for equity investments with readily determinable fair values for the years ended December 31, 2022 and 2021 were recorded in other noninterest income and fees as summarized in the table below:

	Year Ended December 31,
	2022		2021
	(Dollars in thousands)
Net change in fair value recorded during the period on equity investments with readily determinable fair value	$	(1,917)	$	(789)
Less: Net change in fair value recorded on equity investments sold during the period	(1,354)		—
Net change in fair value on equity investments with readily determinable fair values held at the end of the period	$	(563)	$	(789)

The decline in fair value of the Company’s equity investments with readily determinable fair values was due to the recent increases in market interest rates over the yield available at the time the equity investments were purchased. For the year ended December 31, 2022, the Company received proceeds of $20.6 million from the sale of equity investments with readily determinable fair values.

At December 31, 2022 and 2021, the Company also had equity investments without readily determinable fair values which are carried at cost less any determined impairment. The balance of these investments is adjusted for changes in subsequent observable prices. At December 31, 2022, the total balance of equity investments without readily determinable fair values included in “Equity investments” on the Consolidated Statements of Financial Condition was $38.1 million, consisting of $370 thousand in correspondent bank stock, $1.0 million in Community Development Financial Institutions (“CDFI”) investments, and $36.7 million in Community Reinvestment Act (“CRA”) investments. At December 31, 2021, the total balance of equity investments without readily determinable fair values was $31.0 million, consisting of $370 thousand in correspondent bank stock, $1.0 million in CDFI investments, and $29.7 million in CRA investments.

The Company had no impairments or subsequent observable price changes for equity investments without readily determinable fair values for the years ended December 31, 2022 and 2021.