SECURITIES

9 Months Ended

Sep. 30, 2024

SECURITIES

SECURITIES

6. SECURITIES

The following tables summarize the major categories of securities as of the dates indicated:

	September 30, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
Agency notes	$	10,000		—		(311)	$	9,689
Treasury securities		166,278		—		(4,907)		161,371
Corporate securities		173,909		607		(13,887)		160,629
Pass-through mortgage-backed securities ("MBS") issued by government sponsored entities ("GSEs")		197,805		26		(18,495)		179,336
Agency CMOs		276,677		61		(38,965)		237,773
State and municipal obligations		27,154		1		(1,345)		25,810
Total securities available-for-sale	$	851,823	$	695	$	(77,910)	$	774,608
	September 30, 2024
			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities held-to-maturity:
Agency notes	$	89,873	$	—	$	(8,355)	$	81,518
Corporate securities		13,000		80		(975)		12,105
Pass-through MBS issued by GSEs		266,043		136		(31,803)		234,376
Agency CMOs		223,498		151		(23,118)		200,531
Total securities held-to-maturity	$	592,414	$	367	$	(64,251)	$	528,530

	December 31, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities available-for-sale:
Agency notes	$	10,000	$	—	$	(629)	$	9,371
Treasury securities		245,877		—		(11,687)		234,190
Corporate securities		174,978		—		(23,808)		151,170
Pass-through MBS issued by GSEs		230,253		10		(24,978)		205,285
Agency CMOs		305,860		46		(46,491)		259,415
State and municipal obligations		28,741		—		(1,932)		26,809
Total securities available-for-sale	$	995,709	$	56	$	(109,525)	$	886,240
	December 31, 2023
			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
(In thousands)	Cost		Gains		Losses		Value
Securities held-to-maturity:
Agency notes	$	89,563	$	—	$	(11,300)	$	78,263
Corporate securities		9,000		—		(1,825)		7,175
Pass-through MBS issued by GSEs		279,853		—		(37,579)		242,274
Agency CMOs		216,223		16		(27,021)		189,218
Total securities held-to-maturity	$	594,639	$	16	$	(77,725)	$	516,930

There were no transfers to or from securities held-to-maturity during the three or nine months ended September 30, 2024 and 2023.

The carrying value of securities pledged at September 30, 2024 and December 31, 2023 was $479.0 million and $457.7 million, respectively.

At September 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.

The following table presents the amortized cost and fair value of securities by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.  

	September 30, 2024
	Amortized		Fair
(In thousands)	Cost		Value
Available-for-sale
Within one year	$	119,761	$	117,040
One to five years		96,687		91,475
Five to ten years		160,893		148,984
Beyond ten years		—		—
Pass-through MBS issued by GSEs and agency CMOs		474,482		417,109
Total	$	851,823	$	774,608
Held-to-maturity
Within one year	$	—	$	—
One to five years		19,818		18,865
Five to ten years		83,055		74,758
Beyond ten years		—		—
Pass-through MBS issued by GSEs and agency CMOs		489,541		434,907
Total	$	592,414	$	528,530

The following table presents the information related to sales of securities available-for-sale as of the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2024		2023		2024		2023
Securities available-for-sale
Proceeds	$	—	$	—	$	—	$	77,804
Gross gains		—		—		—		130
Tax expense on gains		—		—		—		39
Gross losses		—		—		—		1,577
Tax benefit on losses		—		—		—		467

There were no sales of securities held-to-maturity during the three or nine months ended September 30, 2024 and 2023, respectively.  

The following table summarizes the gross unrealized losses and fair value of securities available-for-sale aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated:

	September 30, 2024
	Less than 12				12 Consecutive
	Consecutive Months				Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Losses		Value		Losses		Value		Losses
Securities available-for-sale:
Agency notes	$	—	$	—	$	9,689	$	311	$	9,689	$	311
Treasury securities		—		—		161,371		4,907		161,371		4,907
Corporate securities		3,700		300		134,359		13,587		138,059		13,887
Pass-through MBS issued by GSEs		—		—		177,238		18,495		177,238		18,495
Agency CMOs		—		—		230,244		38,965		230,244		38,965
State and municipal obligations		—		—		22,309		1,345		22,309		1,345

	December 31, 2023
	Less than 12				12 Consecutive
	Consecutive Months				Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Losses		Value		Losses		Value		Losses
Securities available-for-sale:
Agency Notes	$	—	$	—	$	9,371	$	629	$	9,371	$	629
Treasury securities		—		—		234,190		11,687		234,190		11,687
Corporate securities		20,935		917		130,235		22,891		151,170		23,808
Pass-through MBS issued by GSEs		—		—		203,469		24,978		203,469		24,978
Agency CMOs		—		—		251,900		46,491		251,900		46,491
State and municipal obligations		1,796		54		21,513		1,878		23,309		1,932

As of September 30, 2024, none of the Company’s available-for-sale debt securities were in an unrealized loss position due to credit and therefore no allowance for credit losses on available-for-sale debt securities was required. Additionally, given the nature of the Company’s held-to-maturity portfolio which predominantly consists of agency guaranteed securities, the Company did not record an allowance for credit losses on the held-to-maturity portfolio. With respect to certain classes of debt securities, primarily U.S. Treasuries and securities issued by Government Sponsored Entities, the Company considers the history of credit losses, current conditions and reasonable and supportable forecasts, which may indicate that the expectation that nonpayment of the amortized cost basis is or continues to be zero, even if the U.S. government were to technically default. Accrued interest receivable on securities totaling $4.5 million and $5.3 million at September 30, 2024 and December 31, 2023, respectively, was included in other assets in the Consolidated Statement of Condition and excluded from the amortized cost and estimated fair value totals in the table above.

Management evaluates available-for-sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value

is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2024, substantially all of the securities in an unrealized loss position had a fixed interest rate and the cause of the temporary impairment was directly related to changes in interest rates. The Company generally views changes in fair value caused by changes in interest rates as temporary, which is consistent with its experience. The following major security types held by the Company are all issued by U.S. government entities and agencies and therefore either explicitly or implicitly guaranteed by the U.S. government: Agency Notes, Treasury Securities, Pass-through MBS issued by GSEs, Agency Collateralized Mortgage Obligations. None of the unrealized losses are related to credit quality of the issuer. Substantially all of the state and municipal obligations within the portfolio have all maintained an investment grade rating by either Moody’s or Standard and Poor’s. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. The issuers continue to make timely principal and interest payments on the debt. The fair value is expected to recover as the securities approach maturity.