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Securities
 12 Months Ended
Dec. 31, 2021
Securities [Abstract]  
Securities
4.
Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of December 31, 2021
                        
U.S. treasury
  $
73,016     $
59     $
6     $
73,069  
Federal agency
  

248,454
    

-
    

8,523
    

239,931
  
State & municipal
    
95,531
      
116
      
1,559
      
94,088
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
538,036
      
8,036
      
5,589
      
540,483
  
U.S. government agency securities
    
65,339
      
1,108
      
255
      
66,192
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
484,550
      
2,723
      
5,113
      
482,160
  
U.S. government agency securities
    
139,380
      
939
      
884
      
139,435
  
Corporate
    
50,500
      
1,516
      
13
      
52,003
  
Total AFS securities
  
$
1,694,806
    
$
14,497
    
$
21,942
    
$
1,687,361
  
As of December 31, 2020
                                
Federal agency
  
$
245,590
    
$
59
    
$
2,052
    
$
243,597
  
State & municipal
    
42,550
      
630
      
-
      
43,180
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
521,448
      
17,079
      
22
      
538,505
  
U.S. government securities
    
55,049
      
2,332
      
47
      
57,334
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
311,710
      
7,549
      
58
      
319,201
  
U.S. government securities
    
114,864
      
3,739
      
-
      
118,603
  
Corporate
    27,500       778       -       28,278  
Total AFS securities
  
$
1,318,711
    
$
32,166
    
$
2,179
    
$
1,348,698
  

There was no allowance for credit losses on AFS securities as of the year ending December 31, 2021 and 2020.

The components of net realized gains (losses) on AFS securities are as follows. These amounts were reclassified out of AOCI and into earnings.

 
Years Ended December 31,
  
(In thousands)
  
2021
    
2020
    
2019
  
Gross realized gains
  
$
-
    
$
3
    
$
73
  
Gross realized (losses)
    
-
      
-
   
(152
)
Net AFS realized gains (losses)
  
$
-
    
$
3
 
$
(79
)

The Company had no net realized gains (losses) on AFS securities for the year ended December 31, 2021. Included in net realized gains (losses) on AFS securities, the Company recorded gains from calls of approximately $3 thousand for the year ended December 31, 2020 and  $25 thousand for the year ended December 31, 2019.

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of December 31, 2021
                        
Federal agency
  
$
100,000
    
$
-
    
$
4,365
    
$
95,635
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
161,462
      
2,232
      
1,319
      
162,375
  
U.S. government agency securities
    
9,112
      
514
      
-
      
9,626
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
94,342
      
1,932
      
129
      
96,145
  
U.S. government agency securities
    
44,473
      
336
      
674
      
44,135
  
State & municipal
    
323,821
      
5,026
      
1,503
      
327,344
  
Total HTM securities
  
$
733,210
    
$
10,040
    
$
7,990
    
$
735,260
  
As of December 31, 2020
                                
Federal agency
  $
100,000     $
-     $
1,658     $
98,342  
Mortgage-backed:
                                
Government-sponsored enterprises
  

107,914
    

4,583
    

-
    

112,497
  
U.S. government agency securities
    
11,533
      
979
      
-
      
12,512
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
103,105
      
4,477
      
-
      
107,582
  
U.S. government agency securities
    
79,145
      
3,950
      
-
      
83,095
  
State & municipal
    
214,863
      
7,953
      
17
      
222,799
  
Total HTM securities
  
$
616,560
    
$
21,942
    
$
1,675
    
$
636,827
  

At December 31, 2021 and 2020, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and Government-sponsored enterprises securities. There was no allowance for credit losses on HTM securities as of December 31, 2021 and 2020.

Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $29 thousand for the year ended December 31, 2021, approximately $24 thousand for the year ended December 31, 2020 and approximately $12 thousand for the year ended December 31, 2019.

During the year ended December 31, 2020, the Company sold HTM securities with an amortized cost of $1.0 million and resulted in a realized loss of $1 thousand. Due to significant deterioration in the creditworthiness of the issuer of the HTM securities, the circumstances caused the Company to change its intent to hold the HTM securities sold to maturity, which did not affect the Company’s intent to hold the remainder of the HTM portfolio to maturity. There were no sales of HTM securities in the years ended December 31, 2021 and 2019.

AFS and HTM securities with amortized costs totaling $1.6 billion at December 31, 2021 and $1.4 billion at December 31, 2020 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at December 31, 2021 and 2020, AFS and HTM securities with an amortized cost of $162.1 million and $305.2 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following tables set forth information with regard to gains and (losses) on equity securities:

 
Years Ended
December 31,
  
(In thousands)
  
2021
    
2020
  
Net gains and (losses) recognized on equity securities
  
$
537
    
$
(414
)
Less: Net gains and (losses) recognized during the period on equity securities sold during the period
    
-
      
-
  
Unrealized gains and (losses) recognized on equity securities still held
  
$
537
    
$
(414
)

As of December 31, 2021 and 2020 the carrying value of equity securities without readily determinable fair values was $1.0 million and $2.0 million, respectively. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of December 31, 2021 and 2020. There were no impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the years ended December 31, 2021 and 2020.

The following tables set forth information with regard to contractual maturities of debt securities at December 31, 2021:

(In thousands)
  
Amortized
Cost
    
Estimated
Fair Value
  
AFS debt securities:
            
Within one year
  
$
919
    
$
920
  
From one to five years
    
111,381
      
111,252
  
From five to ten years
    
738,891
      
731,896
  
After ten years
    
843,615
      
843,293
  
Total AFS debt securities
  
$
1,694,806
    
$
1,687,361
  
HTM debt securities:
                
Within one year
  
$
102,967
    
$
103,011
  
From one to five years
    
58,364
      
59,832
  
From five to ten years
    
222,178
      
221,043
  
After ten years
    
349,701
      
351,374
  
Total HTM debt securities
  
$
733,210
    
$
735,260
  

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. Government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at December 31, 2021 and 2020.

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded at December 31, 2021, segregated according to the length of time the securities had been in a continuous unrealized loss position:

 
Less Than 12 Months
    
12 Months or Longer
    
Total
  
(In thousands)
  
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
  
As of December 31, 2021
                                                      
AFS securities:
                                                      
U.S. treasury
  $ 49,105     $ (6 )     2     $ -     $ -       -     $ 49,105     $ (6 )     2
  
Federal agency
    
41,618
      
(1,846
)
    
4
      
198,313
      
(6,677
)
    
12
      
239,931
      
(8,523
)
    
16
  
State & municipal
    87,515       (1,559 )     61       -       -       -       87,515       (1,559 )     61  
Mortgage-backed
    
281,217
      
(4,319
)
    
24
      
39,491
      
(1,525
)
    
6
      
320,708
      
(5,844
)
    
30
  
Collateralized mortgage obligations
    
341,673
      
(5,495
)
    
34
      
15,774
      
(502
)
    
4
      
357,447
      
(5,997
)
    
38
  
Corporate
    9,987       (13 )     2       -       -       -       9,987       (13 )     2  
Total securities with unrealized losses
  
$
811,115
    
$
(13,238
)
    
127
    
$
253,578
    
$
(8,704
)
    
22
    
$
1,064,693
    
$
(21,942
)
    
149
  
                                                                         
HTM securities:
                                                                        
Federal agency
  
$
-
    
$
-
      
-
    
$
95,635
    
$
(4,365
)
    
4
    
$
95,635
    
$
(4,365
)
    
4
  
Mortgage-backed
    103,789       (1,319 )     10       -       -       -       103,789       (1,319 )     10  
Collateralized mortgage obligations
    54,612       (803 )     6       -       -       -       54,612       (803 )     6  
State & municipal
    
52,783
      
(1,189
)
    
40
      
8,950
      
(314
)
    
10
      
61,733
      
(1,503
)
    
50
  
Total securities with unrealized losses
  
$
211,184
    
$
(3,311
)
    
56
    
$
104,585
    
$
(4,679
)
    
14
    
$
315,769
    
$
(7,990
)
    
70
  
                                                                         
As of December 31, 2020
                                                                        
AFS securities:
                                                                        
Federal agency
  
$
148,537
    
$
(2,052
)
    
10
    
$
-
    
$
-
      
-
    
$
148,537
    
$
(2,052
)
    
10
  
Mortgage-backed
    
47,269
      
(60
)
    
3
      
800
      
(9
)
    
4
      
48,069
      
(69
)
    
7
  
Collateralized mortgage obligations
    
17,837
      
(58
)
    
6
      
-
      
-
      
-
      
17,837
      
(58
)
    
6
  
Total securities with unrealized losses
  
$
213,643
    
$
(2,170
)
    
19
    
$
800
    
$
(9
)
    
4
    
$
214,443
    
$
(2,179
)
    
23
  
                                                                         
HTM securities:
                                                                        
Federal agency
  $ 98,342     $ (1,658 )     4     $ -     $ -       -     $ 98,342     $ (1,658 )     4  
State & municipal
    
4,805
      
(17
)
    
5
      
-
      
-
      
-
      
4,805
      
(17
)
    
5
  
Total securities with unrealized losses
  
$
103,147
    
$
(1,675
)
    
9
    
$
-
    
$
-
      
-
    
$
103,147
    
$
(1,675
)
    
9
  

The Company does not believe the AFS securities that were in an unrealized loss position as of December 31, 2021 and 2020, which consisted of 149 and 23 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of December 31, 2021 and 2020, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $3.9 million at December 31, 2021 and $3.3 million at December 31, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.

None of the bank’s HTM debt securities were past due or on nonaccrual status as of the year ended December 31, 2021 and 2020. There was no accrued interest reversed against interest income for the year ended December 31, 2021 and 2020 as all securities remained on accrual status. In addition, there were no collateral-dependent HTM debt securities as of year ended December 31, 2021 and 2020. As of December 31, 2021 and 2020, 56% and 65%, respectively, of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of December 31, 2021 and 2020. The remaining HTM debt securities at December 31, 2021 and 2020 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the CECL approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of December 31, 2021 and 2020. AIR on HTM debt securities totaled $2.7 million at December 31, 2021 and 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.