
	September 30, 2022
(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	$	5,398	$	4	$	(330)	$	5,072

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	1,573,618		86		(220,135)		1,353,569

Private mortgage-backed securities and collateralized mortgage obligations	183,740		22		(11,798)		171,964

Collateralized loan obligations	314,214		—		(12,140)		302,074

Obligations of state and political subdivisions	30,167		139		(2,251)		28,055

Totals	$	2,107,137	$	251	$	(246,654)	$	1,860,734


Debt securities held-to-maturity
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	$	774,706	$	65	$	(129,332)	$	645,439

Totals	$	774,706	$	65	$	(129,332)	$	645,439


	December 31, 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	$	6,466	$	316	$	(3)	$	6,779
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	1,234,721		8,308		(20,309)		1,222,720
Private mortgage-backed securities and collateralized mortgage obligations	88,096		1,091		(420)		88,767
Collateralized loan obligations	292,751		63		(124)		292,690
Obligations of state and political subdivisions	31,624		1,740		(1)		33,363
Totals	$	1,653,658	$	11,518	$	(20,857)	$	1,644,319

Debt securities held-to-maturity
Mortgage-backed securities of U.S. government-sponsored entities	$	638,640	$	3,828	$	(15,070)	$	627,398


Totals	$	638,640	$	3,828	$	(15,070)	$	627,398

During the first quarter of 2022, securities with a fair value of $26.0 million obtained in the acquisition of Business Bank of Florida Corp. were immediately sold. No gain or loss was recognized on the sale. There were no other sales of securities during the three and nine months ended September 30, 2022. Proceeds from the sales of securities for the three and nine months ended September 30, 2021 were $1.0 million, and $57.2 million, respectively, resulting in gross gains of $0.2 million and gross losses of $0.3 million. Also included in “Securities losses, net” are decreases of $0.4 million and $1.1 million for the three and nine months ended September 30, 2022, respectively, and decreases of $30 thousand and $0.1 million for the three and nine months ended September 30, 2021, respectively, in the value of an investment in shares of a mutual fund that invests in CRA-qualified debt securities.

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 securities at September 30, 2022, 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, 2022
	Held-to-Maturity				Available-for-Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	—	$	—	$	1,546	$	1,544

Due after one year through five years	—		—		15,959		15,817

Due after five years through ten years	—		—		3,788		3,645

Due after ten years	—		—		14,272		12,121

	—		—		35,565		33,127

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	774,706		645,439		1,573,618		1,353,569

Private mortgage-backed securities and collateralized mortgage obligations	—		—		183,740		171,964

Collateralized loan obligations	—		—		314,214		302,074

Totals	$	774,706	$	645,439	$	2,107,137	$	1,860,734

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, 2022
	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	$	3,987	$	(318)	$	292	$	(12)	$	4,279	$	(330)

Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	941,663		(119,928)		398,769		(100,207)		1,340,432		(220,135)

Private mortgage-backed securities and collateralized mortgage obligations	162,976		(10,801)		7,721		(997)		170,697		(11,798)

Collateralized loan obligations	249,362		(10,404)		52,711		(1,736)		302,073		(12,140)
Obligations of state and political subdivisions	23,049		(2,172)		421		(79)		23,470		(2,251)



Totals	$	1,381,037	$	(143,623)	$	459,914	$	(103,031)	$	1,840,951	$	(246,654)


	December 31, 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	$	97	$	(1)	$	245	$	(2)	$	342	$	(3)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government-sponsored entities	955,881		(19,575)		11,953		(734)		967,834		(20,309)
Private mortgage-backed securities and collateralized mortgage obligations	33,640		(173)		9,628		(247)		43,268		(420)
Collateralized loan obligations	123,202		(81)		9,461		(43)		132,663		(124)
Obligations of state and political subdivisions	499		(1)		—		—		499		(1)
Totals	$	1,113,319	$	(19,831)	$	31,287	$	(1,026)	$	1,144,606	$	(20,857)

At September 30, 2022, the Company had unrealized losses of $220.1 million on mortgage-backed securities and collateralized mortgage obligations issued by government-sponsored entities having a fair value of $1.3 billion. 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 a 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, 2022, no allowance for credit losses has been recorded.

At September 30, 2022, the Company had $12.1 million of unrealized losses in floating rate collateralized loan obligations (“CLOs”) having a fair value of $302.1 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, 2022, all positions held by the Company are in AAA and AA tranches, with average credit support of 37% and 36%, 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, 2022, no allowance for credit losses has been recorded.

At September 30, 2022, the Company had $11.8 million of unrealized losses on private label residential and commercial mortgage-backed securities and collateralized mortgage obligations having a fair value of $170.7 million. The collateral underlying these mortgage investments is primarily residential real estate. The securities have average credit support of 20%. 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, 2022, no allowance for credit losses has been recorded.

At September 30, 2022, the Company had $2.3 million of unrealized losses on municipal securities having a fair value of $23.5 million. These securities are highly rated issuances of state or local municipalities, all of which are continuing to make timely contractual payments. 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. As a result, as of September 30, 2022, no allowance for credit losses has been recorded.

All held-to-maturity (“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, 2022, no allowance for credit losses has been recorded.

Included in Other Assets at September 30, 2022 is $38.2 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, which may have a significant adverse effect on the fair value of these cost method investment securities. Accrued interest receivable on available-for-sale (“AFS”) securities and HTM debt securities of $5.8 million and $1.3 million, respectively, at September 30, 2022, and $3.4 million and $1.0 million, respectively, at December 31, 2021, is included in Other Assets. Also included in Other Assets is an $8.2 million investment in a CRA-qualified mutual fund carried at fair value.