
	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)

U.S. government and agency obligations	$	23,432	$	—	$	(1,793)	$	21,639
Mortgage-backed securities and collateralized mortgage obligations	1,324,035		179		(153,341)		1,170,873
Municipal obligations	3,695		—		(147)		3,548
Corporate debt securities	92,539		—		(16,029)		76,510
	$	1,443,701	$	179	$	(171,310)	$	1,272,570


	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
			(In thousands)

U.S. government and agency obligations	$	67,771	$	—	$	(4,205)	$	63,566
Mortgage-backed securities and collateralized mortgage obligations	1,351,929		135		(170,337)		1,181,727
Municipal obligations	3,697		—		(122)		3,575
Corporate debt securities	92,544		6		(12,784)		79,766

	$	1,515,941	$	141	$	(187,448)	$	1,328,634

The amortized cost and fair value of debt securities available for sale at March 31, 2023, 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.


	March 31, 2023
	Amortized Cost		Fair Value
	(In thousands)

One year or less	$	920	$	906
More than one year to five years	54,882		50,274
More than five years to ten years	63,864		50,517

	$	119,666	$	101,697
Mortgage-backed securities and collateralized mortgage obligations	1,324,035		1,170,873
	$	1,443,701	$	1,272,570

Mortgage-backed securities and collateralized mortgage obligations totaling $1.3 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 March 31, 2023, proceeds from the sale of debt securities available for sale totaled $42.6 million, resulting in no gross gains and $1.3 million of gross losses. There were no calls or matured debt securities available for sale during the three months ended March 31, 2023.

Debt securities available for sale having a carrying value of $990.9 million and $724.0 million, at March 31, 2023 and December 31, 2022, 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 $39.0 million and $28.3 million, at March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:


	March 31, 2023
	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	$	1,408	$	(53)	$	20,231	$	(1,740)	$	21,639	$	(1,793)
Mortgage-backed securities and collateralized mortgage obligations	87,503		(3,544)		1,060,893		(149,797)		1,148,396		(153,341)
Municipal obligations	3,111		(136)		438		(11)		3,549		(147)
Corporate debt securities	17,309		(5,191)		57,201		(10,838)		74,510		(16,029)

	$	109,331	$	(8,924)	$	1,138,763	$	(162,386)	$	1,248,094	$	(171,310)


	December 31, 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	$	47,956	$	(2,359)	$	15,610	$	(1,846)	$	63,566	$	(4,205)
Mortgage-backed securities and collateralized mortgage obligations	424,328		(29,013)		741,515		(141,324)		1,165,843		(170,337)
Municipal obligations	3,574		(122)		—		—		3,574		(122)
Corporate debt securities	46,751		(5,792)		31,008		(6,992)		77,759		(12,784)

	$	522,609	$	(37,286)	$	788,133	$	(150,162)	$	1,310,742	$	(187,448)

The number of securities in an unrealized loss position at March 31, 2023 totaled 439, compared with 455 at December 31, 2022. All temporarily impaired securities were investment grade as of March 31, 2023 and December 31, 2022.

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 months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
	2023		2022
	(In thousands)
Allowance for Credit Losses:
Beginning balance	$	—	$	—
Impact of adopting ASU 2016-13 (CECL) effective January 1, 2022	—		490
Provision for credit losses	—		654
Ending balance	$	—	$	1,144

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 $3.3 million and $3.2 million at March 31, 2023 and December 31, 2022, respectively, and is excluded from the estimate of credit losses.


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value
	(In thousands)

U.S. government and agency obligations	$	49,871	$	—	$	(6,599)	$	—	$	43,272
Mortgage-backed securities and collateralized mortgage obligations	367,356		—		(38,441)		—		328,915
	$	417,227	$	—	$	(45,040)	$	—	$	372,187


	December 31, 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	$	—	$	(7,304)	$	—	$	42,567
Mortgage-backed securities and collateralized mortgage obligations	371,652		—		(43,828)		—		327,824
	$	421,523	$	—	$	(51,132)	$	—	$	370,391

The amortized cost and fair value of debt securities held to maturity at March 31, 2023, 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.


	March 31, 2023
	Amortized Cost		Fair Value
	(In thousands)


More than one year to five years	$	19,875	$	18,600
More than five years to ten years	19,996		17,018
More than ten years	10,000		7,654
	49,871		43,272
Mortgage-backed securities and collateralized mortgage obligations	367,356		328,915
	$	417,227	$	372,187

Mortgage-backed securities and collateralized mortgage obligations totaling $367.4 million at amortized cost, and $328.9 million at fair value at March 31, 2023, are not classified by maturity as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

Debt securities held to maturity having a carrying value of $346.8 million and $228.8 million, at March 31, 2023 and December 31, 2022, 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.


	March 31, 2023
	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	$	4,935	$	(65)	$	38,337	$	(6,534)	$	43,272	$	(6,599)
Mortgage-backed securities and collateralized mortgage obligations	39,392		(2,340)		289,523		(36,101)		328,915		(38,441)
	$	44,327	$	(2,405)	$	327,860	$	(42,635)	$	372,187	$	(45,040)


	December 31, 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	$	4,956	$	(44)	$	37,611	$	(7,260)	$	42,567	$	(7,304)
Mortgage-backed securities and collateralized mortgage obligations	275,107		(33,000)		52,717		(10,828)		327,824		(43,828)
	$	280,063	$	(33,044)	$	90,328	$	(18,088)	$	370,391	$	(51,132)

The number of securities in an unrealized loss position at March 31, 2023 totaled 114, compared with 116 at December 31, 2022. All temporarily impaired securities were investment grade as of March 31, 2023 and December 31, 2022.

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 $818,000 and $1.0 million at March 31, 2023 and December 31, 2022, respectively, 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 March 31, 2023 and December 31, 2022 was $3.6 million and $3.4 million, respectively.

The Company recorded a net increase in the fair value of equity securities of $168,000 and $79,000, during the three months ended March 31, 2023 and 2022, respectively, as a component of non-interest income.