LAKELAND BANCORP INC [LBAI] Filings

10-Q 1 lbai-20220331.htm 10-Q lbai-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

☒ 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			000-17820

LAKELAND BANCORP, INC.

(Exact name of registrant as specified in its charter)


New Jersey			22-2953275
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

250 Oak Ridge Road, Oak Ridge, New Jersey 07438

(Address of principal executive offices and zip code)

(973) 697-2000

(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 exchange on which registered
Common Stock, no par value	LBAI	The NASDAQ Stock Market

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 (Section 232.405 of this chapter) during the preceding 12 months (or 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, a 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 ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of May 3, 2022, there were 64,779,728 outstanding shares of Common Stock, no par value.

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LAKELAND BANCORP, INC.

Form 10-Q Index


		PAGE
	Part I. Financial Information

Item 1.	Financial Statements:

	Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021	3
	Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2022 and 2021 (unaudited)	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	50

	Part II. Other Information

Item 1.	Legal Proceedings	51

Item 1A.	Risk Factors	51

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	51

Item 3.	Defaults Upon Senior Securities	51

Item 4.	Mine Safety Disclosures	51

Item 5.	Other Information	51

Item 6.	Exhibits	52

Signatures		53

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Lakeland Bancorp, Inc. and Subsidiaries

Consolidated Balance Sheets


	March 31, 2022		December 31, 2021
(dollars in thousands)	(unaudited)

Assets
Cash	$	384,490	$	199,158
Interest-bearing deposits due from banks	37,179		29,372
Total cash and cash equivalents	421,669		228,530
Investment securities available for sale, at fair value (allowance for credit losses of $1,267 at March 31, 2022 and $83 at December 31, 2021)	1,170,938		769,956
Investment securities held to maturity (fair value of $859,928 at March 31, 2022 and $815,211 at December 31, 2021 and allowance for credit losses of $199 at March 31, 2022 and $181 at December 31, 2021)	940,786		824,956
Equity securities, at fair value	16,915		17,368
Federal Home Loan Bank and other membership bank stock, at cost	10,415		9,049
Loans held for sale	1,906		1,943
Loans, net of deferred fees	7,137,793		5,976,148
Less: Allowance for credit losses	67,112		58,047
Total loans, net	7,070,681		5,918,101
Premises and equipment, net	58,591		45,916
Operating lease right-of-use assets	27,281		15,222
Accrued interest receivable	24,999		19,209
Goodwill	271,829		156,277
Other intangible assets	10,842		2,420
Bank owned life insurance	155,700		117,356
Other assets	92,681		71,753
Total Assets	$	10,275,233	$	8,198,056
Liabilities and Stockholders' Equity
Liabilities





Deposits	8,748,909		6,965,823
Federal funds purchased and securities sold under agreements to repurchase	102,911		106,453
Other borrowings	25,000		25,000
Subordinated debentures	193,904		179,043
Operating lease liabilities	28,694		16,523
Other liabilities	86,533		78,200
Total Liabilities	9,185,951		7,371,042
Stockholders' Equity
Common stock, no par value; authorized 100,000,000 shares; issued 64,910,643 shares and outstanding 64,779,608 shares at March 31, 2022 and issued 50,737,400 shares and outstanding 50,606,365 shares at December 31, 2021	852,110		565,862
Retained earnings	266,460		259,340
Treasury shares, at cost, 131,035 shares at March 31, 2022 and December 31, 2021	(1,452)		(1,452)
Accumulated other comprehensive income	(27,836)		3,264
Total Stockholders' Equity	1,089,282		827,014
Total Liabilities and Stockholders' Equity	$	10,275,233	$	8,198,056

The accompanying notes are an integral part of these consolidated financial statements.

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Lakeland Bancorp, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)


	For the Three Months Ended March 31,
(in thousands, except per share data)	2022		2021
Interest Income
Loans and fees	$	67,809	$	58,778
Federal funds sold and interest-bearing deposits with banks	182		37
Taxable investment securities and other	6,709		3,981
Tax-exempt investment securities	1,302		612
Total Interest Income	76,002		63,408
Interest Expense
Deposits	4,039		5,124
Federal funds purchased and securities sold under agreements to repurchase	20		23
Other borrowings	1,555		1,533
Total Interest Expense	5,614		6,680
Net Interest Income	70,388		56,728
Provision (benefit) for credit losses	6,272		(2,642)
Net Interest Income after Provision (Benefit) for Credit Losses	64,116		59,370
Noninterest Income
Service charges on deposit accounts	2,626		2,296
Commissions and fees	2,106		1,598
Income on bank owned life insurance	830		634
Loss on equity securities	(485)		(144)
Gains on sales of loans held for sale	1,426		708

Swap income	—		562
Other income	277		105
Total Noninterest Income	6,780		5,759
Noninterest Expense
Compensation and employee benefits	27,679		20,518
Premises and equipment	7,972		6,318
FDIC insurance expense	672		711
Data processing expense	1,670		1,255
Merger related expenses	4,585		—
Other expenses	7,381		5,101
Total Noninterest Expense	49,959		33,903
Income before provision for income taxes	20,937		31,226
Provision for income taxes	5,008		8,051
Net Income	$	15,929	$	23,175
Per Share of Common Stock
Basic earnings	$	0.25	$	0.45
Diluted earnings	$	0.25	$	0.45
Dividends paid	$	0.135	$	0.125

The accompanying notes are an integral part of these consolidated financial statements.

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Lakeland Bancorp, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)


	For the Three Months Ended March 31,
(in thousands)	2022		2021

Net Income	$	15,929	$	23,175
Other comprehensive income (loss), net of tax:
Unrealized losses on securities available for sale	(30,965)		(13,135)


Amortization of gain on debt securities reclassified to held to maturity	(135)		—
Unrealized gains on derivatives	—		47

Other comprehensive loss	(31,100)		(13,088)
Total Comprehensive (Loss) Income	$	(15,171)	$	10,087

The accompanying notes are an integral part of these consolidated financial statements.

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Lakeland Bancorp, Inc. and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended March 31, 2022 and 2021


(in thousands, except per share data)	Common Stock		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total

January 1, 2021	$	562,421	$	191,418	$	(1,452)	$	11,397	$	763,784


Net income	—		23,175		—		—		23,175
Other comprehensive loss, net of tax	—		—		—		(13,088)		(13,088)


Stock based compensation	1,206		—		—		—		1,206
Retirement of restricted stock	(656)		—		—		—		(656)
Exercise of stock options	13		—		—		—		13
Cash dividends on common stock of $0.125 per share	—		(6,369)		—		—		(6,369)
March 31, 2021	562,984		208,224		(1,452)		(1,691)		768,065

January 1, 2022	$	565,862	$	259,340	$	(1,452)	$	3,264	$	827,014


Net income	—		15,929		—		—		15,929
Other comprehensive loss, net of tax	—		—		—		(31,100)		(31,100)

Issuance of stock for 1st Constitution acquisition	285,742		—		—		—		285,742
Stock based compensation	1,439		—		—		—		1,439
Retirement of restricted stock	(933)		—		—		—		(933)

Cash dividends on common stock of $0.135 per share	—		(8,809)		—		—		(8,809)
March 31, 2022	$	852,110	$	266,460	$	(1,452)	$	(27,836)	$	1,089,282

The accompanying notes are an integral part of these consolidated financial statements.

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Lakeland Bancorp, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)


	For the Three Months Ended March 31,
(in thousands)	2022		2021
Cash Flows from Operating Activities:
Net income	$	15,929	$	23,175
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of premiums, discounts and deferred loan fees and costs	1,271		(1,497)
Depreciation and amortization	1,665		1,040
Amortization of intangible assets	596		226
Amortization of operating lease right-of-use assets	1,021		682
Provision (benefit) for credit losses	6,272		(2,642)
Loans originated for sale	(25,379)		(16,905)
Proceeds from sales of loans held for sale	31,462		17,718

Loss on equity securities	485		144
Income on bank owned life insurance	(777)		(634)
Gains on proceeds from bank owned life insurance policies	(53)		—
Gains on sales of loans held for sale	(1,426)		(708)
Gains on other real estate and other repossessed assets	(8)		—
Loss on sales of premises and equipment	3		—



Stock-based compensation	1,439		1,206

Excess tax deficiencies (benefits)	79		(88)
(Increase) decrease in other assets	(1,860)		26,971
Decrease in other liabilities	(1,379)		(18,687)
Net Cash Provided by Operating Activities	29,340		30,001
Cash Flows from Investing Activities:
Net cash acquired in acquisitions	326,236		—
Proceeds from repayments and maturities of available for sale securities	41,454		55,314
Proceeds from repayments and maturities of held to maturity securities	42,432		9,561


Purchase of available for sale securities	(269,070)		(188,321)
Purchase of held to maturity securities	(35,648)		(3,968)
Purchase of equity securities	(32)		(40)

Death benefit proceeds from bank owned life insurance policy	95		—
Proceeds from redemptions of Federal Home Loan Bank stock	—		11,251
Purchases of Federal Home Loan Bank stock	(119)		(10,044)
Net increase in loans	(60,109)		(94,975)
Proceeds from sales of loans previously held for investment	—		10,078
Proceeds from sales of other real estate and repossessed assets	8		—
Proceeds from dispositions and sales of premises and equipment	123		—
Purchases of premises and equipment	(944)		(1,714)
Net Cash Provided by (Used in) Investing Activities	44,426		(212,858)




















Cash Flows from Financing Activities:
Net increase in deposits	132,657		179,458
Decrease in federal funds purchased and securities sold under agreements to repurchase	(3,542)		(57,561)





Exercise of stock options	—		13
Retirement of restricted stock	(933)		(656)
Dividends paid	(8,809)		(6,369)
Net Cash Provided by Financing Activities	119,373		114,885
Net increase (decrease) in cash and cash equivalents	193,139		(67,972)
Cash and cash equivalents, beginning of period	228,530		270,090
Cash and cash equivalents, end of period	$	421,669	$	202,118

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	For the Three Months Ended March 31,
(in thousands)	2022		2021
Supplemental schedule of non-cash investing and financing activities:
Cash paid during the period for income taxes	$	5,619	$	9,035
Cash paid during the period for interest	6,969		8,273

Transfer of loans to loans held for sale	—		10,078



Right-of-use assets obtained in exchange for new lease liabilities	89		109
Acquisitions:
Non-cash assets acquired:
Federal Home Loan Bank stock	1,247		—
Investment securities available for sale	217,774		—
Investment securities held to maturity	124,485		—
Loans held for sale	4,620		—
Loans	1,095,266		—
Fixed Assets	13,748		—
Operating lease right-of-use assets	12,991		—
Goodwill and other intangible assets, net	124,570		—
Bank owned life insurance	37,580		—
Other assets	8,820		—
Total non-cash assets acquired	1,641,101		—
Liabilities assumed:
Deposits	1,650,613		—
Subordinated debt	14,734		—
Operating lease liabilities	12,991		—
Other liabilities	3,257		—
Total liabilities assumed	1,681,595		—
Common stock issued	$	285,742	$	—

The accompanying notes are an integral part of these consolidated financial statements.

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Lakeland Bancorp, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

Note 1 – Significant Accounting Policies

Basis of Presentation

This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. and its subsidiaries, including Lakeland Bank (“Lakeland”) and Lakeland’s wholly owned subsidiaries (collectively, the “Company”). The accounting and reporting policies of the Company conform with U.S. generally accepted accounting principles (“U.S. GAAP”) and predominant practices within the banking industry. The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the three months ended March 31, 2022 do not necessarily indicate the results that the Company will achieve for all of 2022.

Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission. These unaudited interim financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications.

Note 2 – Acquisitions

On January 6, 2022, the Company completed its acquisition of 1st Constitution Bancorp ("1st Constitution"), a bank holding company headquartered in Cranbury, New Jersey. 1st Constitution was the parent of 1st Constitution Bank, which operated 25 branches in Bergen, Mercer, Middlesex, Monmouth, Ocean and Somerset Counties in New Jersey. This acquisition enabled the Company to establish a presence in Mercer, Middlesex and Monmouth Counties and broaden its presence in the other counties. Effective as of the close of business on January 6, 2022, 1st Constitution merged into the Company and 1st Constitution Bank merged into Lakeland. Pursuant to the merger agreement, the shareholders of 1st Constitution received for each outstanding share of 1st Constitution common stock that they owned at the effective time of the merger, 1.3577 shares of Lakeland Bancorp, Inc. common stock. The Company issued 14,020,495 shares of its common stock in the merger. Outstanding 1st Constitution stock options were paid out in cash at the difference between $25.55 and an average strike price of $15.95 for a total cash payment of $559,000.

The acquisition was accounted for under the acquisition method of accounting and accordingly, the assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values as of the acquisition date. 1st Constitution's assets were recorded at their preliminary estimated fair values as of January 6, 2022 and 1st Constitution's results of operations have been included in the Company's Consolidated Statements of Income from that date forward.

The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based on management's best estimates using information available at the date of the acquisition, including the use of a third-party valuation specialist. The calculation of goodwill is subject to change for up to one year after the closing date of the transaction as additional information relative to closing date estimates and uncertainties becomes available. As the Company finalizes its analysis of these assets and liabilities, there may be adjustments to the recorded carrying values. The Goodwill is not deductible for tax purposes.

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The following table summarizes the estimated fair value of the acquired assets and liabilities assumed at the date of acquisition for 1st Constitution.


(in thousands)
Assets acquired:
Cash and cash equivalents	$	326,236
Investment securities available for sale	217,774
Investment securities held to maturity	124,485
Federal Home Loan Bank stock	1,247
Loans held for sale	4,620
Loans	1,095,266
Premises and equipment	13,748
Right-of-use assets, operating lease	12,991
Goodwill	115,552
Other intangible assets	9,018
Bank owned life insurance	37,580
Accrued interest receivable and other assets	8,820
Total assets acquired	1,967,337
Liabilities assumed:
Deposits	(1,650,613)

Subordinated debt	(14,734)
Operating lease liabilities	(12,991)
Other liabilities	(3,257)
Total liabilities assumed	(1,681,595)
Net assets acquired	$	285,742

Loans acquired in the 1st Constitution acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310. There was no carryover related allowance for loan losses. The fair values of loans acquired from 1st Constitution were estimated using the discounted cash flow method based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses and the rate of prepayments. Projected cash flows were then discounted to present value based on the relative risk of the cash flows, taking into account the loan type, liquidity risk, maturity of the loans, servicing costs, and a required return on capital; the monthly principal and interest cash flows were discounted to present value and summed to arrive at the calculated value of loans.

For loans acquired without evidence of more-than-insignificant deterioration in credit quality since origination, the Company prepared the interest rate loan fair value and credit fair value adjustments. Loans were grouped into pools based on similar characteristics, such as loan type, fixed or adjustable interest rates, payment type, index rate and caps/floors, and non-accrual status. The loans were valued at the sub-pool level and were pooled at the summary level based on loan type. Market rates for similar loans were obtained from various internal and external data sources and reviewed by management for reasonableness. The average of these market rates was used as the fair value interest rate that a market participant would utilize.

Loans acquired that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated ("PCD") loans. The Company evaluated acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; and (4) delinquency status. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. Additionally for PCD loans, an allowance for loan losses was calculated using management's best estimate of projected losses over the remaining life of the loans, in accordance with ASC 326-20. This represents the portion of loan balances that has been deemed uncollectible based on the Company's expectation of future cash flows for the PCD loans. For loans that were put in collection status immediately, Management made a best estimate of the loan's fair value based on analysis of the credit and our lien position. For all other loans, the fair value was determined using discounted cash flows as described above for non-PCD loans.

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The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired (in thousands):


Gross amortized cost basis at January 6, 2022	$	1,110,600
Interest rate fair value adjustment on all loans	3,057
Credit fair value adjustment on non-PCD loans	(6,314)
Fair value of acquired loans at January 6, 2022	1,107,343
Allowance for credit losses on PCD loans	(12,077)
Fair value of acquired loans, net, as of January 6 2022	$	1,095,266

The following is a summary of the PCD loans acquired in the 1st Constitution acquisition as of the closing date.


(in thousands)	PCD Loans
Gross amortized cost basis at January 6, 2022	$	140,300
Interest component of expected cash flows (accretable difference)	(3,792)
Allowance for credit losses on PCD loans	(12,077)
Net PCD loans	$	124,431

The Company acquired 25 branches through the 1st Constitution merger, seven of which were owned premises. The fair value of the properties acquired was derived by valuations prepared by an independent third party using the sales comparison approach to value the property as improved.

As part of the 1st Constitution acquisition, the Company added 17 lease obligations. The Company recorded a $13.0 million right of use asset and lease liability for these lease obligations.

The core deposit intangible totaled $9.0 million and is being amortized over its estimated useful life of approximately ten years using an accelerated method. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes.

The fair values of deposit liabilities with no stated maturities such as checking, money market and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand. The fair values of certificates of deposit represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit.

Direct costs related to the acquisition were expensed as incurred. The Company incurred $4.6 million merger-related expenses during the first quarter of 2022 which have been separately stated in the Company's Consolidated Statements of Income. There were no merger-related expenses in the first quarter of 2021.

Supplemental Pro Forma Financial Information

The following table presents financial information regarding the former 1st Constitution operations included in the Consolidated Statements of Income from the date of the acquisition (January 6, 2022) through March 31, 2022. In addition the table provides condensed pro forma financial information assuming that the 1st Constitution acquisition had been completed as of January 1, 2022 for the quarters ended March 31, 2021 and 2022. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the periods presented, nor is it indicative of future results. The pro forma information does not reflect management's estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of 1st Constitution's operations. The pro forma information reflects adjustments related to certain purchase accounting fair value adjustments, amortization of core deposit and other intangibles, and related income tax effects.

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(in thousands)	1st Constitution Actual from acquisition to March 31, 2022		Pro forma Quarter ended March 31, 2022		Pro forma Quarter ended March 31, 2021
Net interest income	$	11,406	$	72,794	$	71,689
Provision (benefit) for credit losses	37		6,272		(1,242)
Noninterest income	2,108		6,478		9,837
Noninterest expense	7,730		48,407		45,306
Net income	4,352		18,713		27,671
Earnings per share:
Fully diluted	$	0.07	$	0.29	$	0.43

Note 3 – Earnings Per Share

The following schedule shows the Company’s earnings per share calculations for the periods presented:


	For the Three Months Ended March 31,
(in thousands, except per share data)	2022		2021
Net income available to common shareholders	$	15,929	$	23,175
Less: earnings allocated to participating securities	164		216
Net income allocated to common shareholders	$	15,765	$	22,959
Weighted average number of common shares outstanding - basic	63,961		50,576
Share-based plans	277		204
Weighted average number of common shares outstanding - diluted	64,238		50,780
Basic earnings per share	$	0.25	$	0.45
Diluted earnings per share	$	0.25	$	0.45

There were no antidilutive options to purchase common stock excluded from the computation for the three months ended March 31, 2022 and 2021.

Note 4 – Investment Securities

The amortized cost, gross unrealized gains and losses, allowance for credit losses and the fair value of the Company's available for sale securities are as follows:


	March 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	397,100	$	131	$	(13,516)	$	—	$	383,715
Mortgage-backed securities, residential	377,454		59		(16,817)		—		360,696
Collateralized mortgage obligations, residential	196,369		80		(6,659)		—		189,790
Mortgage-backed securities, multifamily	1,809		—		(206)		—		1,603
Collateralized mortgage obligations, multifamily	56,101		31		(1,901)		—		54,231
Asset-backed securities	63,685		9		(738)		—		62,956
Obligations of states and political subdivisions	24,069		1		(590)		(2)		23,478
Corporate bonds	96,232		227		(725)		(1,265)		94,469
Total	$	1,212,819	$	538	$	(41,152)	$	(1,267)	$	1,170,938

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	December 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	202,961	$	1,215	$	(789)	$	—	$	203,387
Mortgage-backed securities, residential	238,456		1,250		(1,731)		—		237,975
Collateralized mortgage obligations, residential	191,086		1,693		(1,488)		—		191,291
Mortgage-backed securities, multifamily	1,816		—		(75)		—		1,741
Collateralized mortgage obligations, multifamily	32,254		511		(246)		—		32,519
Asset-backed securities	52,518		153		(87)		—		52,584

Corporate bonds	49,598		959		(15)		(83)		50,459
Total