10-Q 1 hfwa-20220331.htm 10-Q hfwa-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022 or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from __________ to __________
Commission File Number 000-29480 
HERITAGE FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter) 
 
Washington 91-1857900
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
201 Fifth Avenue SW,OlympiaWA 98501
(Address of principal executive offices) (Zip Code)
(360) 943-1500
(Registrant’s telephone number, including area code) 
 Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common stock, no par value
HFWA
NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer  
Non-accelerated filer  
Smaller reporting company  
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No  ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date:
As of April 25, 2022, there were 35,102,372 shares of the registrant's common stock, no par value per share, outstanding.


HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
FORM 10-Q
March 31, 2022
TABLE OF CONTENTS
Page
PART I.
ITEM 1.
NOTE 1.
NOTE 2.
NOTE 3.
NOTE 4.
NOTE 5.
NOTE 6.
NOTE 7.
NOTE 8.
NOTE 9.
NOTE 10.
ITEM 2.
ITEM 3.
2


GLOSSARY OF ACRONYMS, ABBREVIATIONS, AND TERMS

The acronyms, abbreviations, and terms listed below are used in various sections of this Form 10-Q. As used throughout this report, the terms “we”, “our”, or “us” refer to Heritage Financial Corporation and its consolidated subsidiaries, unless the context otherwise requires.
2021 Annual Form 10-KCompany's Annual Report on Form 10-K for the year ended December 31, 2021
ACLAllowance for credit losses
AOCIAccumulated other comprehensive income (loss), net
ASUAccounting Standards Update
BankHeritage Bank
CECLCurrent Expected Credit Loss
CMOCollateralized Mortgage Obligation
CompanyHeritage Financial Corporation
COVID-19 PandemicCoronavirus Disease of 2019 pandemic
CRECommercial real estate
FASBFinancial Accounting Standards Board
FDICFederal Deposit Insurance Corporation
Federal ReserveBoard of Governors of the Federal Reserve System
Federal Reserve BankFederal Reserve Bank of San Francisco
GAAPU.S. Generally Accepted Accounting Principles
LIBORLondon Interbank Offering Rate
LIHTCLow-Income Housing Tax Credit
MBSMortgage-backed security
PPPPaycheck Protection Program
SBASmall Business Administration
SECSecurities and Exchange Commission
SMSpecial Mention
SSSubstandard
TDRTroubled debt restructured

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for future periods to differ materially from those expressed in
3

any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating results and stock price performance including, but not limited to:
the effect of the COVID-19 pandemic, including on the Company’s credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity;
the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our ACL on loans and provision for credit losses on loans that may be affected by deterioration in the housing and CRE markets, which may lead to increased losses and nonperforming assets in our loan portfolio, and may result in our ACL on loans no longer being adequate to cover actual losses, and require us to increase our ACL on loans;
changes in general economic conditions, either nationally or in our market areas;
changes in the levels of general interest rates, and the relative differences between short-term and long-term interest rates, deposit interest rates, our net interest margin and funding sources;
risks related to acquiring assets in or entering markets in which we have not previously operated and may not be familiar;
fluctuations in the demand for loans, the number of unsold homes and other properties and fluctuations in real estate values in our market areas;
results of examinations of us by the bank regulators, including the possibility that any such regulatory authority may, among other things, initiate an enforcement action against the Company or our bank subsidiary which could require us to increase our ACL on loans, write-down assets, change our regulatory capital position, affect our ability to borrow funds or maintain or increase deposits, or impose additional requirements on us, any of which could affect our ability to continue our growth through mergers, acquisitions or similar transactions and adversely affect our liquidity and earnings;
legislative or regulatory changes that adversely affect our business, including as a result of the COVID-19 Pandemic;
implementing regulations, changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules;
our ability to control operating costs and expenses;
increases in premiums for deposit insurance;
the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation;
difficulties in reducing risk associated with the loans on our unaudited Condensed Consolidated Statements of Financial Condition;
staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges;
disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions;
our ability to retain key members of our senior management team;
costs and effects of litigation, including settlements and judgments;
our ability to implement our growth strategies;
our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames or at all, and any goodwill charges related thereto and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, which might be greater than expected;
increased competitive pressures among financial service companies;
changes in consumer spending, borrowing and savings habits;
the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions;
adverse changes in the securities markets;
inability of key third-party providers to perform their obligations to us;
changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the FASB, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; and
other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services, and the other risks detailed from time to time in our filings with the SEC including our 2021 Annual Form 10-K.
4

PART I.     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(In thousands, except shares)
March 31,
2022
December 31,
2021
ASSETS
Cash on hand and in banks$87,907 $61,377 
Interest earning deposits1,488,815 1,661,915 
Cash and cash equivalents1,576,722 1,723,292 
Investment securities available for sale, at fair value, net (amortized cost of $1,085,016 and $883,832, respectively)
1,039,924 894,335 
Investment securities held to maturity, at amortized cost, net (fair value of $384,822 and $376,331, respectively)
422,213 383,393 
Total investment securities1,462,137 1,277,728 
Loans held for sale1,142 1,476 
Loans receivable3,821,178 3,815,662 
Allowance for credit losses on loans(40,333)(42,361)
Loans receivable, net3,780,845 3,773,301 
Other real estate owned  
Premises and equipment, net78,737 79,370 
Federal Home Loan Bank stock, at cost8,916 7,933 
Bank owned life insurance119,929 120,196 
Accrued interest receivable14,582 14,657 
Prepaid expenses and other assets190,592 183,543 
Other intangible assets, net9,273 9,977 
Goodwill240,939 240,939 
Total assets$7,483,814 $7,432,412 
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits$6,491,500 $6,394,290 
Junior subordinated debentures21,253 21,180 
Securities sold under agreement to repurchase49,069 50,839 
Accrued expenses and other liabilities100,543 111,671 
Total liabilities6,662,365 6,577,980 
Stockholders’ equity:
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding, respectively
  
Common stock, no par value, 50,000,000 shares authorized; 35,102,372 and 35,105,779 shares issued and outstanding, respectively
550,096 551,798 
Retained earnings305,581 293,238 
Accumulated other comprehensive (loss) income, net(34,228)9,396 
Total stockholders’ equity821,449 854,432 
Total liabilities and stockholders’ equity$7,483,814 $7,432,412 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
5

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts and shares outstanding)
Three Months Ended
March 31,
20222021
INTEREST INCOME:
Interest and fees on loans$41,025 $49,524 
Taxable interest on investment securities6,003 3,534 
Nontaxable interest on investment securities860 958 
Interest on interest earning deposits706 175 
Total interest income48,594 54,191 
INTEREST EXPENSE:
Deposits1,424 1,728 
Junior subordinated debentures194 187 
Other borrowings32 38 
Total interest expense1,650 1,953 
Net interest income46,944 52,238 
Reversal of provision for credit losses(3,577)(7,199)
Net interest income after reversal of provision for credit losses50,521 59,437 
NONINTEREST INCOME:
Service charges and other fees2,296 1,892 
Card revenue2,441 2,097 
Gain on sale of investment securities, net 29 
Gain on sale of loans, net241 1,370 
Interest rate swap fees279 152 
Bank owned life insurance income1,695 656 
Gain on sale of other assets, net
204 22 
Other income1,382 2,033 
Total noninterest income8,538 8,251 
NONINTEREST EXPENSE:
Compensation and employee benefits21,252 22,201 
Occupancy and equipment4,331 4,454 
Data processing4,061 3,812 
Marketing266 513 
Professional services699 1,270 
State/municipal business and use taxes796 972 
Federal deposit insurance premium600 589 
Amortization of intangible assets704 797 
Other expense3,011 2,634 
Total noninterest expense35,720 37,242 
Income before income taxes23,339 30,446 
Income tax expense3,582 5,102 
Net income$19,757 $25,344 
Basic earnings per share$0.56 $0.70 
Diluted earnings per share$0.56 $0.70 
Dividends declared per share$0.21 $0.20 
Average number of basic shares outstanding35,094,725 35,926,950 
Average number of diluted shares outstanding35,412,098 36,232,204 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
6

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In thousands)
Three Months Ended
March 31,
20222021
Net income$19,757 $25,344 
Change in fair value of investment securities available for sale, net of tax of $(12,113) and $(3,204), respectively
(43,482)(11,534)
Amortization of net unrealized gain for the reclassification of investment securities available for sale to held to maturity, net of tax of $(39) and $0, respectively
(142) 
Reclassification adjustment for net gain from sale of investment securities available for sale included in income, net of tax of $0 and $(6), respectively
 (23)
Other comprehensive loss(43,624)(11,557)
Comprehensive (loss) income$(23,867)$13,787 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
7

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
(In thousands, except shares and per share amounts)

Three Months Ended March 31, 2022
Number of
common
shares
Common
stock
Retained
earnings
AOCITotal
stockholders’
equity
Balance at December 31, 202135,105,779 $551,798 $293,238 $9,396 $854,432 
Restricted stock units vested101,683 — — — — 
Stock-based compensation expense— 950 — — 950 
Common stock repurchased(105,090)(2,652)— — (2,652)
Net income— — 19,757 — 19,757 
Other comprehensive loss, net of tax— — — (43,624)(43,624)
Cash dividends declared on common stock ($0.21 per share)
— — (7,414)— (7,414)
Balance at March 31, 202235,102,372 $550,096 $305,581 $(34,228)$821,449 

Three Months Ended March 31, 2021
Number of
common
shares
Common
stock
Retained
earnings
AOCITotal
stockholders’
equity
Balance at December 31, 202035,912,243 $571,021 $224,400 $25,018 $820,439 
Restricted stock units vested92,320 — — — — 
Stock-based compensation expense— 870 — — 870 
Common stock repurchased(23,246)(687)— — (687)
Net income— — 25,344 — 25,344 
Other comprehensive loss, net of tax— — — (11,557)(11,557)
Cash dividends declared on common stock ($0.20 per share)
— — (7,258)— (7,258)
Balance at March 31, 202135,981,317 $571,204 $242,486 $13,461 $827,151 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
8

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended
March 31,
20222021
Cash flows from operating activities:
Net income$19,757 $25,344 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion(1,572)(6,796)
Reversal of provision for credit losses(3,577)(7,199)
Stock-based compensation expense950 870 
Amortization of intangible assets704 797 
Origination of mortgage loans held for sale(5,833)(32,254)
Proceeds from sale of mortgage loans held for sale6,408 31,755 
Bank owned life insurance income(1,695)(656)
Valuation adjustment on interest rate swaps(53)(244)
Gain on sale of mortgage loans held for sale, net(241)(1,370)
Gain on sale of investment securities available for sale, net (29)
Gain on sale of assets held for sale(204)(22)
Other(3,716)(1,115)
Net cash provided by operating activities10,928 9,081 
Cash flows from investing activities:
Loan originations and purchases, net of payments(988)(117,892)
Maturities and repayments of investment securities available for sale42,327 62,675 
Maturities and repayments of investment securities held to maturity6,644  
Purchase of investment securities available for sale(244,409)(166,038)
Purchase of investment securities held to maturity(45,849) 
Proceeds from sales of investment securities available for sale 1,248 
Purchase of premises and equipment(724)(475)
Proceeds from sales of assets held for sale1,173 1,731 
Purchases of Federal Home Loan Bank stock(983)(1,272)
Purchases of bank owned life insurance(105)(105)
Capital contributions to low-income housing tax credit partnerships (12,617)
Net cash used by investing activities(242,914)(232,745)
Cash flows from financing activities:
Net increase in deposits97,210 421,708 
Common stock cash dividends paid(7,372)(7,183)
Net (decrease) increase in securities sold under agreement to repurchase(1,770)820 
Repurchase of common stock(2,652)(687)
Net cash provided by financing activities85,416 414,658 
Net (decrease) increase in cash and cash equivalents(146,570)190,994 
Cash and cash equivalents at beginning of period1,723,292 743,322 
Cash and cash equivalents at end of period$1,576,722 $934,316 
Supplemental disclosures of cash flow information:
Cash paid for interest$1,555 $1,889 
Cash paid for income taxes, net of refunds 64 
Investment in LIHTC partnership and related funding commitment670  
Right of use assets obtained in exchange for new operating lease liabilities55 7,381 
Purchase of investment securities available for sale not settled 5,000 
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
9

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(1)Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements
(a) Description of Business
The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, the Bank. The Bank is headquartered in Olympia, Washington and conducts business from its 49 branch offices located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small and medium-sized businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans, consumer loans and originates first mortgage loans on residential properties primarily located in its market areas. The Bank's deposits are insured by the FDIC.
(b) Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is recommended these unaudited Condensed Consolidated Financial Statements and accompanying Notes be read with the audited Consolidated Financial Statements and the accompanying Notes included in the 2021 Annual Form 10-K. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.
To prepare unaudited Condensed Consolidated Financial Statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided. Management believes the judgments, estimates and assumptions used in the preparation of the unaudited Condensed Consolidated Financial Statements are appropriate based on the facts and circumstances at the time. Actual results, however, could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to management's estimate of the ACL on investment securities, management's estimate of the ACL on loans, management's estimate of the ACL on unfunded commitments, management's evaluation of goodwill impairment and management's estimate of the fair value of financial instruments.
The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany balances and transactions among the Company and the Bank have been eliminated in consolidation.
There have been reclassifications in certain prior year amounts in the unaudited Condensed Consolidated Statements of Financial Condition, the unaudited Condensed Consolidated Statements of Income and the unaudited Condensed Consolidated Statements of Cash Flows. Reclassifications had no effect on the prior year's net income or stockholders’ equity.
(c) Significant Accounting Policies
The significant accounting policies used in preparation of the unaudited Condensed Consolidated Financial Statements are disclosed in greater detail in the 2021 Annual Form 10-K. There have not been any material changes in the Company's significant accounting policies from those contained in the 2021 Annual Form 10-K during the three months ended March 31, 2022.
(d) Recently Issued or Adopted Accounting Pronouncements
FASB ASU 2020-04, Reference Rate Reform (Topic 848), as amended by ASU 2021-01, was issued in March 2020 and provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments are elective, apply to all entities, and provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Bank’s interest rate swap-related transactions are the majority of the Company's LIBOR exposure. Effective January 25, 2021, the Company adhered to the Interbank Offered Rate Fallbacks Protocol as published by the International Swaps and Derivatives Association, Inc. and recommended by the Alternative Reference Rates Committee. Additionally, effective January 1, 2022, the bank is no longer initiating or renewing loans using LIBOR as an index. The Company does not expect this ASU to have a material impact on its business operations and the Consolidated Financial Statements.
FASB ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, was issued in March 2022. The ASU eliminates the accounting guidance for TDR loans by creditors while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, the ASU requires public business entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. These amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, since Heritage previously adopted the amendments in ASU 2016-13, which is commonly referred to as the current expected credit loss methodology, on January 1, 2020. Early adoption is permitted and should be applied prospectively; however, the transition method related to the recognition and
10

measurement of TDR loans may be applied under a modified retrospective transition method. The Company is evaluating the effect this ASU will have on its Consolidated Financial Statements and related disclosures.

(2)Investment Securities
The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities.
There were no investment securities classified as trading at March 31, 2022 or December 31, 2021.
(a) Investment Securities by Classification, Type and Maturity
The following tables present the amortized cost and fair value of investment securities at the dates indicated and the corresponding amounts of gross unrealized gains and losses, including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI:
March 31, 2022
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(In thousands)
Investment securities available for sale:
U.S. government and agency securities$41,489 $ $(1,934)$39,555 
Municipal securities215,488 1,964 (7,213)210,239 
Residential CMO and MBS378,934 219 (20,744)358,409 
Commercial CMO and MBS421,696 615 (17,806)404,505 
Corporate obligations2,005 4  2,009 
Other asset-backed securities25,404 88 (285)25,207 
Total$1,085,016 $2,890 $(47,982)$1,039,924 
Investment securities held to maturity:
U.S. government and agency securities$150,973 $ $(14,344)$136,629 
Residential CMO and MBS54,486  (2,936)51,550 
Commercial CMO and MBS216,754  (20,111)196,643 
Total$422,213 $ $(37,391)$384,822 
December 31, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(In thousands)
Investment securities available for sale:
U.S. government and agency securities$21,494 $55 $(176)$21,373 
Municipal securities213,158 8,908 (854)221,212 
Residential CMO and MBS307,366 2,111 (2,593)306,884 
Commercial CMO and MBS313,169 3,891 (1,199)315,861 
Corporate obligations2,007 7  2,014 
Other asset-backed securities26,638 369 (16)26,991 
Total$883,832 $15,341 $(4,838)$894,335 
Investment securities held to maturity:
U.S. government and agency securities$141,011 $120 $(1,768)$139,363 
Residential CMO and MBS24,529  (153)24,376 
Commercial CMO and MBS217,853  (5,261)212,592 
Total$383,393 $120 $(7,182)$376,331 
11

The amortized cost and fair value of investment securities at March 31, 2022, by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
Securities Available for SaleSecurities Held to Maturity
Amortized CostFair ValueAmortized CostFair Value
(In thousands)
Due in one year or less$8,733 $8,777 $ $ 
Due after one year through five years55,551 55,075   
Due after five years through ten years63,330 62,935 83,202 76,884 
Due after ten years131,368 125,016 67,771 59,745 
Total investment securities due at a single maturity date258,982 251,803 150,973 136,629 
Mortgage-backed securities (1)
826,034 788,121 271,240 248,193 
Total investment securities$1,085,016 $1,039,924 $422,213 $384,822 
(1) Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their payment speed.
There were no holdings of investment securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity at March 31, 2022 and December 31, 2021.
(b) Unrealized Losses on Investment Securities Available for Sale
The following tables show the gross unrealized losses and fair value of the Company’s investment securities available for sale for which an ACL on investment securities available for sale has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at the dates indicated:
March 31, 2022
Less than 12 Months12 Months or LongerTotal
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(In thousands)
U.S. government and agency securities$38,002 $(1,764)$1,553 $(170)$39,555 $(1,934)
Municipal securities90,266 (5,206)16,837 (2,007)107,103 (7,213)
Residential CMO and MBS307,811 (19,312)24,731 (1,432)332,542 (20,744)
Commercial CMO and MBS307,598 (17,695)1,717 (111)309,315 (17,806)
Other asset-backed securities12,476 (274)1,004 (11)13,480 (285)
Total$756,153 $(44,251)$45,842 $(