
	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(In thousands)

U.S. government and agency obligations	$	96,364	$	27	$	(2,608)	$	93,783
Mortgage-backed securities and collateralized mortgage obligations	1,026,493		140		(182,373)		844,260
Municipal obligations	2,772		—		(108)		2,664
Corporate debt securities	92,531		9		(14,868)		77,672
	$	1,218,160	$	176	$	(199,957)	$	1,018,379


	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 September 30, 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.


	September 30, 2023
	Amortized Cost		Fair Value
	(In thousands)

One year or less	$	35,265	$	35,218
More than one year to five years	87,687		84,301
More than five years to ten years	68,715		54,600

	$	191,667	$	174,119
Mortgage-backed securities and collateralized mortgage obligations	1,026,493		844,260
	$	1,218,160	$	1,018,379

Mortgage-backed securities and collateralized mortgage obligations totaling $1.0 billion at amortized cost, and $844.3 million 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, 2023, there were no sales of debt securities available for sale. During the nine months ended September 30, 2023, proceeds from the sale of debt securities available for sale totaled $277.0 million, resulting in no gross gains and $10.8 million of gross losses. There were no calls or matured debt securities available for sale during the three and nine months ended September 30, 2023.

During the three months ended September 30, 2022 there we no sales 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 the three and nine months ended September 30, 2022.

Debt securities available for sale having a carrying value of $207.1 million and $724.0 million, at September 30, 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 $71.5 million and $28.3 million, at September 30, 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 September 30, 2023 and December 31, 2022 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:


	September 30, 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	$	73,213	$	(230)	$	18,844	$	(2,378)	$	92,057	$	(2,608)
Mortgage-backed securities and collateralized mortgage obligations	11,183		(715)		821,064		(181,658)		832,247		(182,373)
Municipal obligations	—		—		2,664		(108)		2,664		(108)
Corporate debt securities	—		—		70,663		(14,868)		70,663		(14,868)

	$	84,396	$	(945)	$	913,235	$	(199,012)	$	997,631	$	(199,957)


	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 September 30, 2023 totaled 273, compared with 455 at December 31, 2022. All temporarily impaired securities were investment grade as of September 30, 2023, except one $7.0 million corporate debt security which is rated BB+. All temporarily impaired securities were investment grade at 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 and nine months ended September 30, 2023 and 2022:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		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	—		—		—		(490)
Ending balance	$	—	$	—	$	—	$	—

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 $3.8 million and $3.2 million at September 30, 2023 and December 31, 2022, respectively, and is excluded from the estimate of credit losses.


	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Fair Value


U.S. government and agency obligations	$	49,871	$	—	$	(7,981)	$	—	$	41,890
Mortgage-backed securities and collateralized mortgage obligations	362,074		—		(52,037)		—		310,037
	$	411,945	$	—	$	(60,018)	$	—	$	351,927


	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 September 30, 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.


	September 30, 2023
	Amortized Cost		Fair Value
	(In thousands)


More than one year to five years	$	29,875	$	26,783
More than five years to ten years	9,996		8,022
More than ten years	10,000		7,085
	49,871		41,890
Mortgage-backed securities and collateralized mortgage obligations	362,074		310,037
	$	411,945	$	351,927

Mortgage-backed securities and collateralized mortgage obligations totaling $362.1 million at amortized cost, and $310.0 million at fair value at September 30, 2023, 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, 2023 and 2022 there were no sales, calls or maturities of debt securities held to maturity.

Debt securities held to maturity having a carrying value of $149.2 million and $228.8 million, at September 30, 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.


	September 30, 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	$	—	$	—	$	41,890	$	(7,981)	$	41,890	$	(7,981)
Mortgage-backed securities and collateralized mortgage obligations	14		(1)		310,023		(52,036)		310,037		(52,037)
	$	14	$	(1)	$	351,913	$	(60,017)	$	351,927	$	(60,018)


	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 September 30, 2023 totaled 115, compared with 116 at December 31, 2022. All temporarily impaired securities were investment grade as of September 30, 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 $378,000 and $1.0 million at September 30, 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 September 30, 2023 and December 31, 2022 was $3.6 million and $3.4 million, respectively.

The Company recorded a net (decrease) increase in the fair value of equity securities of $(81,000) and $(264,000), and $249,000 and $(332,000), respectively, during the three and nine months ended September 30, 2023 and 2022, respectively, as a component of non-interest income.