Investment Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Marketable Equity Securities

The Company held marketable equity securities with fair values of $8.4 million and $9.1 million at December 31, 2021 and 2020, respectively. The gross realized and unrealized gains (losses) recognized on marketable equity securities in other operating income in the Company's Consolidated Statements of Income for the periods indicated were as follows:


(In Thousands)	2021	2020	2019
Unrealized (loss) gain on marketable equity securities	($101)	$61	$911
Gain on sale of marketable equity securities, net	67	98	—
Total	($34)	$159	$911

Debt securities

Debt securities have been classified in the financial statements as available for sale or held to maturity. The following table summarizes the amortized cost, estimated fair value, and ACL of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and unrecognized gains and losses of held to maturity securities at the periods indicated:


(In Thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Allowance for Credit Losses	Fair Value
December 31, 2021
Securities available for sale
U.S. Treasury and government sponsored entities	$345,514	$333	($4,367)	$—	$341,480
Municipal securities	820	20	—	—	840
Corporate bonds	32,721	302	(77)	—	32,946
Collateralized loan obligations	51,431	9	(22)	—	51,418

Total securities available for sale	$430,486	$664	($4,466)	$—	$426,684


(In Thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2021
Securities held to maturity
Corporate bonds	$20,000	$—	($836)	$19,164
Allowance for credit losses	—	—	—	—
Total securities held to maturity, net of ACL	$20,000	$—	($836)	$19,164


(In Thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2020
Securities available for sale
U.S. Treasury and government sponsored entities	$173,318	$1,330	($47)	$174,601
Municipal securities	820	36	—	856
Corporate bonds	29,951	546	(5)	30,492
Collateralized loan obligations	41,782	44	(142)	41,684

Total securities available for sale	$245,871	$1,956	($194)	$247,633
Securities held to maturity
Corporate bonds	$10,000	$—	$—	$10,000
Total securities held to maturity	$10,000	$—	$—	$10,000

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2021 and 2020, were as follows:


	Less Than 12 Months		More Than 12 Months		Total
(In Thousands)	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
2021
Securities Available for Sale
U.S. Treasury and government sponsored entities	$292,845	($4,012)	$21,743	($355)	$314,588	($4,367)
Corporate bonds	4,953	(77)	—	—	4,953	(77)

Collateralized loan obligations	29,470	(22)	—	—	29,470	(22)


Total	$327,268	($4,111)	$21,743	($355)	$349,011	($4,466)
2020
Securities Available for Sale
U.S. Treasury and government sponsored entities	$31,270	($47)	$—	$—	$31,270	($47)


Corporate bonds	3,198	(5)	—	—	3,198	(5)
Collateralized loan obligations	23,670	(118)	2,967	(24)	26,637	(142)
Total	$58,138	($170)	$2,967	($24)	$61,105	($194)

Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2021 and 2020, there were 41 and 12 available for sale securities in an unrealized loss position without an ACL, respectively, that have been in a loss position for less than twelve months. There were 3 and 1 available for sale securities without an ACL with unrealized losses at December 31, 2021 and 2020, respectively, that have been at a loss position for more than twelve months. At December 31, 2021 and 2020, there were two and no held to maturity securities in an unrealized loss position without an ACL, respectively, that have been in a loss position for less than twelve months. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2021, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company's Consolidated Statements of Income.

At December 31, 2021 and 2020, $59.5 million and $77.9 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and fair values of available for sale and held to maturity debt securities at December 31, 2021, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


(In Thousands)	Amortized Cost	Fair Value	Weighted Average Yield
U.S. Treasury and government sponsored entities
Within 1 year	$4,999	$5,041	2.80	%
1-5 years	340,515	336,439	0.79	%

Total	$345,514	$341,480	0.82	%






Corporate bonds

1-5 years	$37,691	$37,912	2.41	%
5-10 years	15,030	14,953	6.50	%
Total	$52,721	$52,865	2.81	%
Collateralized loan obligations
1-5 years	$5,000	$5,000	1.65	%
5-10 years	46,431	46,418	1.39	%

Total	$51,431	$51,418	1.42	%
Municipal securities

1-5 years	820	840	2.14	%

Total	$820	$840	2.14	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2021, 2020, and 2019, respectively, are as follows:


(In Thousands)	Proceeds	Gross Gains	Gross Losses
2021
Available for sale securities	$—	$—	$—
2020
Available for sale securities	$—	$—	$—
2019
Available for sale securities	$4,219	$23	$—

A summary of interest income for the years ending December 31, 2021, 2020, and 2019 on available for investment securities is as follows:


(In Thousands)	2021	2020	2019
U.S. Treasury and government sponsored entities	$2,203	$3,396	$4,170

Other	1,118	1,354	2,282
Total taxable interest income	$3,321	$4,750	$6,452
Municipal securities	$18	$82	$120
Total tax-exempt interest income	$18	$82	$120
Total	$3,339	$4,832	$6,572