

	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
			(In thousands)

U.S. government and agency obligations	$	35,433	$	1,238	$	—		$	36,671
Mortgage-backed securities and collateralized mortgage obligations	1,013,079		43,526		(377		)	1,056,228
Municipal obligations	1,873		14		—			1,887
Corporate debt securities	77,551		2,038		(749		)	78,840
Trust preferred securities	5,000		—		(701		)	4,299
	$	1,132,936	$	46,816	$	(1,827	)	$	1,177,925



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
			(In thousands)

U.S. government and agency obligations	$	42,081	$	321	$	(16	)	$	42,386
Mortgage-backed securities and collateralized mortgage obligations	968,165		12,981		(1,265		)	979,881
Municipal obligations	2,284		1		(1		)	2,284
Corporate debt securities	68,613		945		(378		)	69,180
Trust preferred securities	5,000		—		(395		)	4,605
	$	1,086,143	$	14,248	$	(2,055	)	$	1,098,336

The amortized cost and fair value of debt securities available for sale at June 30, 2020, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.



	June 30, 2020
	Amortized Cost		Fair Value
	(In thousands)

One year or less	$	22,397	$	22,464
More than one year to five years	37,414		39,410
More than five years to ten years	59,575		59,338
More than ten years	471		485
	$	119,857	$	121,697
Mortgage-backed securities and collateralized mortgage obligations	1,013,079		1,056,228
	$	1,132,936	$	1,177,925

Mortgage-backed securities and collateralized mortgage obligations totaling $1.0 billion at amortized cost, and $1.1 billion at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During the three months ended June 30, 2020, there were no sales of debt securities available for sale. Proceeds from called debt securities available for sale totaled $5.5 million. No gross gains or gross losses were recognized on the securities called. Proceeds from matured debt securities available for sale totaled $5.1 million.

During the six months ended June 30, 2020, proceeds from the sale of debt securities available for sale totaled $20.8 million, resulting in $369,000 of gross gains and no gross losses. Proceeds from called debt securities available for sale totaled $6.6 million, resulting in $1,000 of gross gains and no gross losses. Proceeds from matured debt securities available for sale totaled $5.8 million.

During the three and six months ended June 30, 2019, proceeds from the sale of debt securities available for sale totaled $15.7 million resulting in $339,000 of gross gains and no gross losses. During the three and six months ended June 30, 2019, there were no maturities of debt securities available for sale. During the six months ended June 30, 2019, proceeds from one called debt security available for sale totaled $797,000. No gross gains or losses were recognized on the security which was called. During the three months ended June 30, 2019 there were no calls of debt securities available for sale.

Debt securities available for sale having a carrying value of $769.7 million and $462.0 million, respectively, at June 30, 2020 and December 31, 2019, respectively, were pledged as security for public funds on deposit at the Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at June 30, 2020 and December 31, 2019 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:



	June 30, 2020
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized (Losses)			Fair Value		Gross Unrealized (Losses)			Fair Value		Gross Unrealized (Losses)
	(In thousands)

Mortgage-backed securities and collateralized mortgage obligations	$	43,842	$	(267	)	$	31,643	$	(110	)	$	75,485	$	(377	)
Corporate debt securities	15,912		(88		)	4,340		(661		)	20,252		(749		)
Trust preferred securities	—		—			4,298		(701		)	4,298		(701		)
	$	59,754	$	(355	)	$	40,281	$	(1,472	)	$	100,035	$	(1,827	)



	December 31, 2019
	Less Than 12 Months							12 Months or Longer							Total
	Fair Value		—	Gross Unrealized (Losses)			—	Fair Value		—	Gross Unrealized (Losses)			—	Fair Value		—	Gross Unrealized (Losses)
	(In thousands)

U.S. government and agency obligations	$	5,106		$	(13	)		$	4,988		$	(3	)		$	10,094		$	(16	)
Mortgage-backed securities and collateralized mortgage obligations	178,665			(946		)		58,208			(319		)		236,873			(1,265		)
Municipal obligations	696			(1		)		—			—				696			(1		)
Corporate debt securities	2,588			(5		)		4,627			(373		)		7,215			(378		)
Trust preferred securities	—			—				4,605			(395		)		4,605			(395		)
	$	187,055		$	(965	)		$	72,428		$	(1,090	)		$	259,483		$	(2,055	)

The Company evaluates securities for other-than-temporary impairment at each reporting period and more frequently when economic or market conditions warrant such evaluation. The temporary loss position associated with debt securities available for sale was the result of changes in market interest rates relative to the coupon of the individual security and changes in credit spreads. The Company does not have the intent to sell securities in a temporary loss position at June 30, 2020, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The number of securities in an unrealized loss position at June 30, 2020 totaled 31, compared with 97 at December 31, 2019. All temporarily impaired securities were investment grade at June 30, 2020 and December 31, 2019.

The Company did not record an other-than-temporary impairment charge on debt securities available for sale during the three and six months ended June 30, 2020 and 2019.



	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(In thousands)

Mortgage-backed securities and collateralized mortgage obligations	$	273,997	$	15,878	$	(39	)	$	289,836
	$	273,997	$	15,878	$	(39	)	$	289,836



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(In thousands)

U.S. government and agency obligations	$	20,000	$	26	$	(66	)	$	19,960
Mortgage-backed securities and collateralized mortgage obligations	265,756		4,048		(259		)	269,545
	$	285,756	$	4,074	$	(325	)	$	289,505

Mortgage-backed securities and collateralized mortgage obligations totaling $274.0 million at amortized cost, and $289.8 million at fair value, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During the three and six months ended June 30, 2020, there were no sales or maturities of debt securities held to maturity. During both the three and six months ended June 30, 2020, proceeds from called debt securities held to maturity totaled $20.0 million. No gross gains or losses were recognized on the securities which were called.

During the three and six months ended June 30, 2019, there were no sales or maturities of debt securities held for maturity. During the three and six months ended June 30, 2019, proceeds from one called debt security held to maturity totaled $5.0 million, resulting in no gross gain or loss.

Debt securities held to maturity having a carrying value of $240.0 million and $236.0 million, at June 30, 2020 and December 31, 2019, respectively, were pledged as security for public funds on deposit at the Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowings at the Federal Reserve Bank of New York.



	June 30, 2020
	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Gross Unrealized (Losses)			Fair Value		Gross Unrealized (Losses)		Fair Value		Gross Unrealized (Losses)
	(In thousands)

Mortgage-backed securities and collateralized mortgage obligations	$	7,974	$	(39	)	$	—	$	—	$	7,974	$	(39	)



	December 31, 2019
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized (Losses)			Fair Value		Gross Unrealized (Losses)			Fair Value		Gross Unrealized (Losses)
	(In thousands)

U.S. government and agency obligations	$	9,934	$	(66	)	$	—	$	—		$	9,934	$	(66	)
Mortgage-backed securities and collateralized mortgage obligations	27,911		(251		)	772		(8		)	28,683		(259		)
	$	37,845	$	(317	)	$	772	$	(8	)	$	38,617	$	(325	)

The Company evaluates securities for other-than-temporary impairment at each reporting period and more frequently when economic or market conditions warrant such evaluation. The temporary loss position associated with debt securities held to maturity was the result of changes in market interest rates relative to the coupon of the individual security and changes in credit spreads. The Company does not have the intent to sell securities in a temporary loss position at June 30, 2020, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

There were five securities in an unrealized loss position at June 30, 2020, compared with 22 at December 31, 2019. All temporarily impaired securities were investment grade at June 30, 2020 and December 31, 2019.

The Company did not record an other-than-temporary impairment charge on debt securities held to maturity during the three and six months ended June 30, 2020 and 2019.

The Company has an equity securities portfolio which consists of common stock in other financial institutions, a payment technology company, a community bank correspondent services company, and preferred stock in U.S. Government agencies which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at June 30, 2020 and December 31, 2019 was $4.7 million and $2.9 million, respectively.

The Company adopted ASU 2016-01 on January 1, 2019, resulting in a $548,000 after tax cumulative-effect adjustment from other comprehensive income (loss) to retained earnings, as reflected in the Consolidated Statements of Changes in Stockholders' Equity. The Company recorded a net increase in the fair value of equity securities of $643,000 and $59,000, during the three and six months ended June 30, 2020, as a component of non-interest income. During the three and six months ended June 30, 2019, the Company recorded a net increase in the fair value of equity securities of $71,000 and $247,000, respectively, as a component of non-interest income.