Investment Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Marketable Equity Securities

The Company held marketable equity securities with fair values of $13.2 million and $10.7 million at December 31, 2023 and 2022, 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)	2023	2022	2021
Unrealized gain (loss) on marketable equity securities	$120	($1,119)	($101)
Gain on sale of marketable equity securities, net	—	—	67
Total	$120	($1,119)	($34)

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, 2023
Securities available for sale
U.S. Treasury and government sponsored entities	$587,639	$451	($23,965)	$—	$564,125
Municipal securities	820	—	(4)	—	816
Corporate bonds	14,014	28	(418)	—	13,624
Collateralized loan obligations	59,795	12	(436)	—	59,371

Total securities available for sale	$662,268	$491	($24,823)	$—	$637,936
December 31, 2022
Securities available for sale
U.S. Treasury and government sponsored entities	$634,582	$1	($39,422)	$—	$595,161
Municipal securities	820	—	(25)	—	795
Corporate bonds	24,281	37	(674)	—	23,644
Collateralized loan obligations	59,434	—	(2,005)	—	57,429
Total securities available for sale	$719,117	$38	($42,126)	$—	$677,029


(In Thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2023
Securities held to maturity
Corporate bonds	$36,750	$—	($3,337)	$33,413
Allowance for credit losses	—	—	—	—
Total securities held to maturity, net of ACL	$36,750	$—	($3,337)	$33,413
December 31, 2022
Securities held to maturity
Corporate bonds	$36,750	$—	($4,111)	$32,639
Allowance for credit losses	—	—	—	—
Total securities held to maturity, net of ACL	$36,750	$—	($4,111)	$32,639

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, 2023 and 2022, 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
2023
Securities Available for Sale
U.S. Treasury and government sponsored entities	$9,997	($3)	$528,574	($23,962)	$538,571	($23,965)
Corporate bonds	—	—	6,599	(418)	6,599	(418)
Municipal securities	—	—	816	(4)	816	(4)
Collateralized loan obligations	3,909	(91)	43,149	(345)	47,058	(436)


Total	$13,906	($94)	$579,138	($24,729)	$593,044	($24,823)
2022
Securities Available for Sale
U.S. Treasury and government sponsored entities	$282,319	($8,876)	$302,840	($30,546)	$585,159	($39,422)
Municipal securities	795	(25)	—	—	795	(25)

Corporate bonds	13,216	(43)	4,394	(631)	17,610	(674)
Collateralized loan obligations	22,309	(632)	35,120	(1,373)	57,429	(2,005)
Total	$318,639	($9,576)	$342,354	($32,550)	$660,993	($42,126)

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, 2023 and 2022, there were two and 38 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 72 and 47 available for sale securities without an ACL with unrealized losses at December 31, 2023 and 2022, respectively, that have been at a loss position for more than twelve months. At December 31, 2023 and 2022, there were zero and three 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. At December 31, 2023 and 2022, there were five and two held to maturity securities in an unrealized loss position without an ACL, respectively, that have been in a loss position for more 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, 2023, 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, 2023 and 2022, $180.1 million and $59.3 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, 2023, 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	$163,987	$160,054	1.14	%
1-5 years	423,652	404,071	2.05	%

Total	$587,639	$564,125	1.79	%






Corporate bonds
Within 1 year	$2,000	$1,997	3.59	%
1-5 years	22,014	21,264	4.95	%
5-10 years	26,750	23,776	5.01	%
Total	$50,764	$47,037	4.93	%
Collateralized loan obligations


5-10 years	$34,301	$34,102	6.83	%
Over 10 years	25,494	25,269	7.07	%
Total	$59,795	$59,371	6.94	%
Municipal securities
Within 1 year	$820	$816	2.12	%


Total	$820	$816	2.12	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2023, 2022, and 2021, respectively, are as follows:


(In Thousands)	Proceeds	Gross Gains	Gross Losses
2023
Available for sale securities	$—	$—	$—
2022
Available for sale securities	$—	$—	$—
2021
Available for sale securities	$—	$—	$—

A summary of interest income for the years ending December 31, 2023, 2022, and 2021 on available for investment securities is as follows:


(In Thousands)	2023	2022	2021
U.S. Treasury and government sponsored entities	$11,074	$7,030	$2,203

Other	4,741	2,631	1,118
Total taxable interest income	$15,815	$9,661	$3,321
Municipal securities	$18	$18	$18
Total tax-exempt interest income	$18	$18	$18
Total	$15,833	$9,679	$3,339