Investment Securities

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Marketable Equity Securities

The Company held marketable equity securities with fair values of $8.0 million and $8.4 million at March 31, 2022 and December 31, 2021, 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 were as follows:


	Three Months Ended March 31,
(In Thousands)	2022	2021
Unrealized loss on marketable equity securities	($422)	($84)
Gain on sale of marketable equity securities, net	—	—
Total	($422)	($84)

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 the Allowance for Credit Losses ("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 gross 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
March 31, 2022
Securities available for sale
U.S. Treasury and government sponsored entities	$415,485	$103	($19,633)	$—	$395,955
Municipal securities	820	—	(5)	—	815

Corporate bonds	32,716	167	(377)	—	32,506
Collateralized loan obligations	59,432	—	(361)	—	59,071
Total securities available for sale	$508,453	$270	($20,376)	$—	$488,347


(In Thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
March 31, 2022
Securities held to maturity
Corporate bonds	$24,750	$—	($1,873)	$22,877
Allowance for credit losses	—	—	—	—
Total securities held to maturity, net of ACL	$24,750	$—	($1,873)	$22,877


(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

Gross unrealized losses on available for sale 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 March 31, 2022 and December 31, 2021 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
March 31, 2022:
Securities available for sale
U.S. Treasury and government sponsored entities	$301,435	($14,981)	$72,868	($4,652)	$374,303	($19,633)
Corporate bonds	7,838	(377)	—	—	7,838	(377)
Collateralized loan obligations	54,079	(361)	—	—	54,079	(361)
Municipal securities	815	(5)	—	—	815	(5)


Total	$364,167	($15,724)	$72,868	($4,652)	$437,035	($20,376)




December 31, 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)

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 March 31, 2022, the Company had 61 available for sale securities in an unrealized loss position without an ACL. At March 31, 2022, the Company had three held to maturity securities in an unrealized loss position without an ACL. 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 March 31, 2022,

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 March 31, 2022 and December 31, 2021, $57.5 million and $59.5 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and estimated fair values of debt securities at March 31, 2022, 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
US Treasury and government sponsored entities
Within 1 year	$5,000	$5,007
1-5 years	410,485	390,948

Total	$415,485	$395,955






Corporate bonds

1-5 years	$37,687	$37,250
5-10 years	19,779	18,133
Total	$57,466	$55,383
Collateralized loan obligations
1-5 years	$5,000	$4,938
5-10 years	23,939	23,796
Over 10 years	30,493	30,337
Total	$59,432	$59,071
Municipal securities

1-5 years	$820	$815

Total	$820	$815

There were no proceeds from sales of investment securities for the three-month periods ending March 31, 2022 and 2021.

A summary of interest income for the three-month periods ending March 31, 2022 and 2021, on available for sale investment securities are as follows:


	Three Months Ended March 31,
(In Thousands)	2022	2021
US Treasury and government sponsored entities	$806	$500

Other	325	274
Total taxable interest income	$1,131	$774
Municipal securities	$4	$4
Total tax-exempt interest income	$4	$4
Total	$1,135	$778