
	September 30, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale
U.S. Treasury securities and obligations of U.S. government agencies	$	6,785	$	371	$	(2)	$	7,154

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	1,147,743		12,378		(9,450)		1,150,671

Private mortgage-backed securities and collateralized mortgage obligations	75,754		1,710		(236)		77,228

Collateralized loan obligations	277,262		149		(105)		277,306

Obligations of state and political subdivisions	32,016		1,837		(57)		33,796

Totals	$	1,539,560	$	16,445	$	(9,850)	$	1,546,155


Debt securities held-to-maturity
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	$	526,502	$	4,702	$	(12,740)	$	518,464

Totals	$	526,502	$	4,702	$	(12,740)	$	518,464


	December 31, 2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities available-for-sale
U.S. Treasury securities and obligations of U.S. government agencies	$	8,250	$	528	$	(1)	$	8,777
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	1,038,437		23,457		(1,240)		1,060,654
Private mortgage-backed securities and collateralized mortgage obligations	89,284		2,131		(210)		91,205
Collateralized loan obligations	202,563		279		(647)		202,195
Obligations of state and political subdivisions	33,005		2,321		—		35,326
Totals	$	1,371,539	$	28,716	$	(2,098)	$	1,398,157

Debt securities held-to-maturity
Mortgage-backed securities of U.S. government-sponsored entities	$	184,484	$	7,818	$	(123)	$	192,179


Totals	$	184,484	$	7,818	$	(123)	$	192,179

Proceeds from sales of securities were $1.0 million for the three months ended September 30, 2021, with no gain or loss recognized. For the nine months ended September 30, 2021, proceeds from sales of securities were $57.2 million, resulting in gross gains of $0.2 million and gross losses of $0.3 million. For the three months ended September 30, 2020, proceeds from sales of securities were $4.4 million, which resulted in gross gains of $4 thousand and no gross losses. For the nine months ended September 30, 2020, proceeds from sales of securities were $96.7 million, which resulted in gross gains of $2.4 million and gross losses of $1.3 million.

Also included in “Securities gains (losses), net” is a decrease of $30 thousand and a decrease of $0.1 million for the three and nine months ended September 30, 2021, respectively, and increases of $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively, in the value of a CRA-qualified mutual fund.

During the first quarter of 2021, the Company reclassified debt securities with an amortized cost of $210.8 million from available-for-sale to held-to-maturity, as it has the ability and intent to hold these securities to maturity. These securities had net unrealized gains of $0.8 million at the date of transfer, which will continue to be reported in accumulated other comprehensive income, and will be amortized over the remaining life of the securities as an adjustment of yield. The effect on interest income of the amortization of net unrealized gains is offset by the amortization of the premium on the securities transferred.

The amortized cost and fair value of debt securities held-to-maturity and available-for-sale at September 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	September 30, 2021
	Held-to-Maturity				Available-for-Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	—	$	—	$	1,418	$	1,442

Due after one year through five years	—		—		13,892		14,828

Due after five years through ten years	—		—		8,376		8,764

Due after ten years	—		—		15,115		15,916

	—		—		38,801		40,950

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	526,502		518,464		1,147,743		1,150,671

Private mortgage-backed securities and collateralized mortgage obligations	—		—		75,754		77,228

Collateralized loan obligations	—		—		277,262		277,306

Totals	$	526,502	$	518,464	$	1,539,560	$	1,546,155

The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flows analyses, or using observable market data. The tables below indicate the fair value of available-for-sale debt securities with unrealized losses for which no allowance for credit losses has been recorded.


	September 30, 2021
	Less Than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	—	$	248	$	(2)	$	248	$	(2)

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	660,028		(8,696)		15,350		(754)		675,378		(9,450)

Private mortgage-backed securities and collateralized mortgage obligations	13,018		(206)		2,710		(30)		15,728		(236)

Collateralized loan obligations	64,232		(58)		9,459		(47)		73,691		(105)
Obligations of state and political subdivisions	5,443		(57)		—		—		5,443		(57)



Totals	$	742,721	$	(9,017)	$	27,767	$	(833)	$	770,488	$	(9,850)


	December 31, 2020
	Less Than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities and obligations of U.S. government agencies	$	—	$	—	$	256	$	(1)	$	256	$	(1)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	203,405		(1,218)		569		(22)		203,974		(1,240)
Private mortgage-backed securities and collateralized mortgage obligations	23,997		(210)		—		—		23,997		(210)
Collateralized loan obligations	104,697		(102)		72,513		(545)		177,210		(647)

Totals	$	332,099	$	(1,530)	$	73,338	$	(568)	$	405,437	$	(2,098)

At September 30, 2021, the Company had $9.4 million of unrealized losses on mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $675.4 million. These securities are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. The implied government

guarantee of principal and interest payments and the high credit rating of the portfolio provide sufficient basis for the current expectation that there is no risk of loss if default were to occur. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2021, no allowance for credit losses has been recorded.

At September 30, 2021, the Company had $0.2 million of unrealized losses on private label residential and commercial mortgage-backed securities and collateralized mortgage obligations having a fair value of $15.7 million. The collateral underlying these mortgage investments is primarily residential real estate. The securities have average credit support of 35%. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2021, no allowance for credit losses has been recorded.

At September 30, 2021, the Company had $0.1 million in unrealized losses in uncapped 3-month LIBOR floating rate collateralized loan obligations ("CLOs") having a fair value of $73.7 million. CLOs are special purpose vehicles and those in which the Company has invested acquire nearly all first-lien, broadly syndicated corporate loans across a diversified band of industries while providing support to senior tranche investors. As of September 30, 2021, these positions are in AAA and AA tranches, with average credit support of 37% and 24%, respectively. The Company evaluates the securities for potential credit losses by modeling expected loan-level defaults, recoveries, and prepayments for each CLO security. Based on the assessment of all relevant factors, the Company believes that the unrealized loss positions on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality, and expects to recover the entire amortized cost basis of these securities. Therefore, at September 30, 2021, no allowance for credit losses has been recorded.

All HTM debt securities are issued by government-sponsored entities, which are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. While the potential for default on these securities may be something greater than zero, the long history with no credit losses, the implied government guarantee of principal and interest payments and the high credit rating of the HTM portfolio provide sufficient basis for the current expectation that there is no risk of loss if default were to occur. As a result, as of September 30, 2021, no allowance for credit losses has been recorded.

Included in other assets at September 30, 2021 is $31.5 million of Federal Home Loan Bank and Federal Reserve Bank stock stated at par value. The Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of these cost method investment securities. Also included in other assets is a $9.4 million investment in a CRA-qualified mutual fund carried at fair value. Accrued interest receivable on AFS and HTM debt securities of $3.7 million and $0.8 million at September 30, 2021, respectively, and $3.2 million and $0.4 million at December 31, 2020, respectively, is also included in other assets.