
	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)

U.S. government and agency obligations	$	67,491	$	—	$	(4,210)	$	63,281
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		122		(175,867)		1,223,652
Municipal obligations	3,698		—		(141)		3,557
Corporate debt securities	88,565		6		(7,340)		81,231
	$	1,559,151	$	128	$	(187,558)	$	1,371,721


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)

U.S. government and agency obligations	$	34,711	$	404	$	(236)	$	34,879
Mortgage-backed securities and collateralized mortgage obligations	1,553,491		14,141		(13,273)		1,554,359
Municipal obligations	4,159		20		—		4,179
Corporate debt securities	109,018		2,378		(966)		110,430

	$	1,701,379	$	16,943	$	(14,475)	$	1,703,847

The amortized cost and fair value of debt securities available for sale at September 30, 2022, 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.


	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)

One year or less	$	919	$	901
More than one year to five years	68,971		65,791
More than five years to ten years	89,864		81,377

	$	159,754	$	148,069
Mortgage-backed securities and collateralized mortgage obligations	1,399,397		1,223,652
	$	1,559,151	$	1,371,721

Mortgage-backed securities and collateralized mortgage obligations totaling $1.4 billion at amortized cost, and $1.2 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 September 30, 2022, there were no proceeds from the sale of debt securities available for sale. During the nine months ended September 30, 2022, proceeds from the sales of debt securities available for sale totaled $126.8 million, resulting in gross gains of $210,000 and no gross losses. There were no calls and $915,000 in maturities of debt securities available for sale during three and nine months ended September 30, 2022.

During the three months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $22.5 million, resulting in gross gains of $2.0 million and no gross losses. Proceeds from called debt securities available for sale totaled $9.0 million, resulting in no gross gains or losses. No debt securities available for sale matured during the quarter.

During the nine months ended September 30, 2021, proceeds from the sale of debt securities available for sale totaled $27.2 million, resulting in gross gains of $2.0 million and gross losses of $281,000. Proceeds from called debt securities available for sale totaled $14.0 million, resulting in no gross gains or losses. Proceeds from matured debt securities available for sale totaled $210,000.

Debt securities available for sale having a carrying value of $636.0 million and $587.7 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia 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. Debt securities available for sale having a carrying value of $30.1 million and $44.1 million, at September 30, 2022 and December 31, 2021, respectively, were pledged by Freehold Bank for outstanding borrowings at the Federal Home Loan Bank, and 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 September 30, 2022 and December 31, 2021 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:


	September 30, 2022
	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	$	54,464	$	(3,104)	$	8,817	$	(1,106)	$	63,281	$	(4,210)
Mortgage-backed securities and collateralized mortgage obligations	696,364		(72,154)		504,328		(103,713)		1,200,692		(175,867)
Municipal obligations	3,557		(141)		—		—		3,557		(141)
Corporate debt securities	70,286		(6,300)		8,960		(1,040)		79,246		(7,340)

	$	824,671	$	(81,699)	$	522,105	$	(105,859)	$	1,346,776	$	(187,558)


	December 31, 2021
	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	$	14,488	$	(236)	$	—	$	—	$	14,488	$	(236)
Mortgage-backed securities and collateralized mortgage obligations	820,746		(11,892)		62,407		(1,381)		883,153		(13,273)

Corporate debt securities	29,221		(671)		4,705		(295)		33,926		(966)

	$	864,455	$	(12,799)	$	67,112	$	(1,676)	$	931,567	$	(14,475)

The number of securities in an unrealized loss position at September 30, 2022 totaled 439, compared with 219 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss would be recorded through an allowance for credit losses, limited by the amount that the fair value is less than the amortized cost basis.

The following table presents the activity in the allowance for credit losses on debt securities available for sale for the three and nine months ended September 30, 2022:


	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
(Reversal of ) credit losses	—		(490)
Balance at September 30, 2022	$	—	$	—

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities available for sale. Accrued interest receivable on debt securities available for sale is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $3.1 million at September 30, 2022, and is excluded from the estimate of credit losses.


	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)

U.S. government and agency obligations	$	49,871	$	—	$	(7,587)	$	—	$	42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		—		(43,996)		—		331,210
	$	425,077	$	—	$	(51,583)	$	—	$	373,494


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)

U.S. government and agency obligations	$	44,870	$	—	$	(759)	$	44,111
Mortgage-backed securities and collateralized mortgage obligations	384,864		6,741		(927)		390,678
	$	429,734	$	6,741	$	(1,686)	$	434,789

The amortized cost and fair value of debt securities held to maturity at September 30, 2022, 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.


	September 30, 2022
	Amortized Cost		Fair Value
	(In thousands)


More than one year to five years	$	19,875	$	18,282
More than five years to ten years	19,996		16,479
More than ten years	10,000		7,523
	49,871		42,284
Mortgage-backed securities and collateralized mortgage obligations	375,206		331,210
	$	425,077	$	373,494

Mortgage-backed securities and collateralized mortgage obligations totaling $375.2 million at amortized cost, and $331.2 million at fair value at September 30, 2022, 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 nine months ended September 30, 2021, there were no sales or maturities of debt securities held to maturity. During the three months ended September 30, 2021 there were no calls of debt securities held to maturity. During the nine months ended September 30, 2021, proceeds from called debt securities held to maturity totaled $5.1 million, resulting in no gross gains or losses.

Debt securities held to maturity having a carrying value of $230.9 million and $252.4 million, at September 30, 2022 and December 31, 2021, respectively, were pledged as security for public funds on deposit at Columbia 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.


	September 30, 2022
	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	$	4,967	$	(32)	$	37,316	$	(7,555)	$	42,283	$	(7,587)
Mortgage-backed securities and collateralized mortgage obligations	322,117		(41,399)		9,093		(2,597)		331,210		(43,996)
	$	327,084	$	(41,431)	$	46,409	$	(10,152)	$	373,493	$	(51,583)


	December 31, 2021
	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	$	44,111	$	(759)	$	—	$	—	$	44,111	$	(759)
Mortgage-backed securities and collateralized mortgage obligations	79,036		(927)		—		—		79,036		(927)
	$	123,147	$	(1,686)	$	—	$	—	$	123,147	$	(1,686)

The number of securities in an unrealized loss position at September 30, 2022 totaled 117, compared with 25 at December 31, 2021. All temporarily impaired securities were investment grade as of September 30, 2022 and December 31, 2021.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero and the Company is not required to estimate an allowance for credit losses on these securities under the CECL standard. All these securities reflect a credit quality rating of AAA by Moody's Investors Service.

The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of debt securities held to maturity. Accrued interest receivable on debt securities held to maturity is reported as a component of accrued interest receivable on the Consolidated Statement of Financial Condition, which totaled $820,000 at September 30, 2022, and is excluded from the estimate of credit losses.

The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, a community bank correspondent services company, preferred stock in U.S. Government agencies, and a community reinvestment act qualifying bond fund which are reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at September 30, 2022 and December 31, 2021 was $3.5 million and $2.7 million, respectively.

The Company recorded a net decrease in the fair value of equity securities of $264,000 and $443,000, during the three months ended September 30, 2022 and 2021, respectively, as a component of non-interest income. During the nine months ended September 30, 2022 and 2021, the Company recorded a net decrease in the fair value of equity securities of $332,000 and $1.8 million, respectively, as a component of non-interest income.