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INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities Available for sale

The following tables present a summary of investment securities:


	Amortized Cost		Unrealized				Fair Value
			Gains		Losses
	(In thousands)
At December 31, 2020
Investment securities available-for-sale at fair value:
U.S. government and agencies	$	19,962	$	1,022	$	—	$	20,984
Government-sponsored entities	142,985		4,801		—		147,786
Municipal bonds	324,422		22,177		(11)		346,588
Mortgage-backed securities (1)	711,144		17,805		(614)		728,335
Total	$	1,198,513	$	45,805	$	(625)	$	1,243,693

Investment securities held-to-maturity at amortized cost:

Mortgage-backed securities (1)	$	35,223	$	719	$	—	$	35,942
Total	$	35,223	$	719	$	—	$	35,942

Equity securities at fair value:
Money market mutual funds (2)	$	41,452	$	—	$	—	$	41,452
Total	$	41,452	$	—	$	—	$	41,452


	Amortized Cost		Unrealized				Fair Value
			Gains		Losses
	(In thousands)
At December 31, 2019
Investment securities available-for-sale at fair value:
U.S. government and agencies	$	19,955	$	42	$	(57)	$	19,940
Government-sponsored entities	154,963		1,292		—		156,255
Municipal bonds	312,977		12,551		(73)		325,455
Mortgage-backed securities (1)	479,005		1,117		(3,488)		476,634
Total	$	966,900	$	15,002	$	(3,618)	$	978,284

Investment securities held-to-maturity at amortized cost:

Mortgage-backed securities (1)	48,212		53		(316)		47,949
Total	$	48,212	$	53	$	(316)	$	47,949

Equity securities at fair value:
Money market mutual funds (2)	$	18,810	$	—	$	—	$	18,810
Total	$	18,810	$	—	$	—	$	18,810

_________________

(1)All Mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

(2)Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss.

Schedule of Debt Securities Held-to-maturity

The following tables present a summary of investment securities:


	Amortized Cost		Unrealized				Fair Value
			Gains		Losses
	(In thousands)
At December 31, 2020
Investment securities available-for-sale at fair value:
U.S. government and agencies	$	19,962	$	1,022	$	—	$	20,984
Government-sponsored entities	142,985		4,801		—		147,786
Municipal bonds	324,422		22,177		(11)		346,588
Mortgage-backed securities (1)	711,144		17,805		(614)		728,335
Total	$	1,198,513	$	45,805	$	(625)	$	1,243,693

Investment securities held-to-maturity at amortized cost:

Mortgage-backed securities (1)	$	35,223	$	719	$	—	$	35,942
Total	$	35,223	$	719	$	—	$	35,942

Equity securities at fair value:
Money market mutual funds (2)	$	41,452	$	—	$	—	$	41,452
Total	$	41,452	$	—	$	—	$	41,452


	Amortized Cost		Unrealized				Fair Value
			Gains		Losses
	(In thousands)
At December 31, 2019
Investment securities available-for-sale at fair value:
U.S. government and agencies	$	19,955	$	42	$	(57)	$	19,940
Government-sponsored entities	154,963		1,292		—		156,255
Municipal bonds	312,977		12,551		(73)		325,455
Mortgage-backed securities (1)	479,005		1,117		(3,488)		476,634
Total	$	966,900	$	15,002	$	(3,618)	$	978,284

Investment securities held-to-maturity at amortized cost:

Mortgage-backed securities (1)	48,212		53		(316)		47,949
Total	$	48,212	$	53	$	(316)	$	47,949

Equity securities at fair value:
Money market mutual funds (2)	$	18,810	$	—	$	—	$	18,810
Total	$	18,810	$	—	$	—	$	18,810

_________________

(1)All Mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

(2)Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss.

Investments Classified by Contractual Maturity Date

The following tables present the maturities of Investment securities available-for-sale, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2020. Certain securities are callable before their final maturity. Additionally, certain securities (such as Mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and curtailments are expected to have shorter lives.


	U.S. government and agencies (1)						Government-sponsored entities (1)
	Amortized cost		Fair value		Weighted average yield		Amortized cost		Fair value		Weighted average yield
	(In thousands, except percentages)
Within one year	$	—	$	—	—	%	$	27,776	$	28,107	1.89	%
After one, but within five years	10,000		10,337		1.75	%	100,116		103,336		1.99	%
After five, but within ten years	9,962		10,647		1.70	%	15,093		16,343		2.00	%
Greater than ten years	—		—		—	%	—		—		—	%
Total	$	19,962	$	20,984	1.72	%	$	142,985	$	147,786	1.97	%


	Municipal bonds (1)						Mortgage-backed securities (2)
	Amortized cost		Fair value		Weighted average yield		Amortized cost		Fair value		Weighted average yield
	(In thousands, except percentages)
Within one year	$	10,582	$	10,676	2.16	%	$	9,310	$	9,341	2.22	%
After one, but within five years	10,678		10,895		2.39	%	170,295		179,035		2.16	%
After five, but within ten years	87,513		93,603		2.60	%	121,639		127,337		2.12	%
Greater than ten years	215,649		231,414		2.43	%	409,900		412,622		1.44	%
Total	$	324,422	$	346,588	2.47	%	$	711,144	$	728,335	1.74	%

The following table presents the maturities of Investment securities held-to-maturity, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2020:


	Mortgage-backed securities (2)
		Amortized cost		Fair value		Weighted average yield
		(In thousands, except percentages)
Within one year		$	—	$	—	—	%
After one, but within five years		—		—		—	%
After five, but within ten years		28,858		29,449		2.23	%
Greater than ten years		6,365		6,493		2.48	%
Total		$	35,223	$	35,942	2.28	%

_________________

(1)Certain securities are callable before their final maturity.

(2)Mortgage-backed securities are shown based on their final (contractual) maturity, but, due to prepayments, they are expected to have shorter lives.

The weighted average remaining maturity at December 31, 2020 was 11.4 years for Investment securities available-for-sale, with $274.5 million of Investment securities available-for-sale callable before maturity. The weighted average remaining maturity at December 31, 2019 was 7.7 years for Investment securities available-for-sale, with $239.0 million of Investment securities available-for-sale callable before maturity.

The weighted average remaining maturity for Investment securities held-to-maturity was 9.0 years and 10.0 years at December 31, 2020 and December 31, 2019, respectively.

The following table presents the maturities of Equity securities at fair value, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2020:


	Money market mutual funds
	Amortized cost		Fair value		Weighted average yield
	(In thousands)
Within one year	$	41,452	$	41,452	0.40	%
After one, but within five years	—		—		—	%
After five, but within ten years	—		—		—	%
Greater than ten years	—		—		—	%
Total	$	41,452	$	41,452	0.40	%

Realized Gain (Loss) on Investments

The following table presents the proceeds from sales, gross realized gains, and gross realized losses for Investment securities available-for-sale that were sold or called during the following periods, as well as changes in fair value of equity securities as prescribed by ASC 321, Investment- Equity Securities. ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities was adopted on January 1, 2018, at which time a cumulative effect adjustment of $339 thousand was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from Accumulated other comprehensive income to Retained earnings.


	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Proceeds from sales (1)	$	—	$	—	$	53,412
Realized gains	—		—		7
Realized losses	—		—		(597)
Change in unrealized gain/(loss) on equity securities reflected in the Consolidated Statements of Operations (2)	—		—		(23)

_________________

(1) Purchases and sales of money market mutual funds in operational accounts are excluded from this table.

(2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss.

(3) There have been no sales of Investment securities available-for-sale or Equity securities in the years ended December 31, 2020 and 2019.

Schedule of Unrealized Loss on Investments

The following tables present information regarding securities at December 31, 2020 and 2019 having temporary impairment due to the fair values having declined below the amortized cost of the individual securities and the time period that the investments have been temporarily impaired. As of December 31, 2020, there were no Investment securities held-to-maturity in an unrealized loss position.


	Less than 12 months				12 months or longer				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses		Number of securities
	(In thousands, except number of securities)
December 31, 2020
Investment securities available-for-sale


Municipal bonds	$	2,344	$	(11)	$	—	$	—	$	2,344	$	(11)	2
Mortgage-backed securities (1)	126,545		(519)		5,411		(95)		131,956		(614)		41

Total	$	128,889	$	(530)	$	5,411	$	(95)	$	134,300	$	(625)	43


	Less than 12 months				12 months or longer				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses		Number of securities
	(In thousands, except number of securities)
December 31, 2019
Investment securities available-for-sale
U.S. government and agencies	$	9,899	$	(57)	$	—	$	—	$	9,899	$	(57)	1
Government-sponsored entities	1,725		—		—		—		1,725		—		1
Municipal bonds	9,149		(73)		—		—		9,149		(73)		4
Mortgage-backed securities (1)	140,723		(1,016)		187,043		(2,472)		327,766		(3,488)		85

Total	$	161,496	$	(1,146)	$	187,043	$	(2,472)	$	348,539	$	(3,618)	91

Investment securities held-to-maturity
Mortgage-backed securities (1)	$	10,328	$	(11)	$	30,451	$	(305)	$	40,779	$	(316)	14
Total	$	10,328	$	(11)	$	30,451	$	(305)	$	40,779	$	(316)	14

___________________

(1)All Mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

Fair Value, Concentration of Risk

The following table presents the concentration of securities with any one issuer that exceeds 10% of shareholders’ equity as of December 31, 2020:


	Amortized cost		Fair value
	(In thousands)

Federal Home Loan Mortgage Corporation	$	405,243	$	419,653
Federal Home Loan Bank	88,802		91,761
Federal National Mortgage Association	331,881		336,644
Total	$	825,926	$	848,058

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details