XML 72 R15.htm IDEA: XBRL DOCUMENT

Securities

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6. Securities

The Company did not hold any trading securities at December 31, 2019 and 2018. Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at December 31, 2019:


								Gross			Gross
		Amortized						Unrealized			Unrealized
		Cost			Fair Value			Gains			Losses
		(In thousands)
Securities held-to-maturity:
Municipals		$	50,954		$	53,998		$	3,044		$	—
Total municipals			50,954			53,998			3,044			—

FNMA			7,934			8,114			180			—
Total mortgage-backed securities			7,934			8,114			180			—
Total		$	58,888		$	62,112		$	3,224		$	—

The following table summarizes the Company’s portfolio of securities held-to-maturity at December 31, 2018:


								Gross			Gross
		Amortized						Unrealized			Unrealized
		Cost			Fair Value			Gains			Losses
		(In thousands)
Securities held-to-maturity:
Municipals		$	24,065		$	22,508		$	—		$	1,557
Total municipals			24,065			22,508			—			1,557

FNMA			7,953			7,366			—			587
Total mortgage-backed securities			7,953			7,366			—			587
Total		$	32,018		$	29,874		$	—		$	2,144

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2019:


								Gross			Gross
		Amortized						Unrealized			Unrealized
		Cost			Fair Value			Gains			Losses
		(In thousands)
Corporate		$	130,000		$	123,050		$	—		$	6,950
Municipals			12,797			12,916			119			—
Mutual funds			12,216			12,216			—			—
Collateralized loan obligations			100,349			99,137			—			1,212
Other			1,332			1,332			—			—
Total other securities			256,694			248,651			119			8,162
REMIC and CMO			348,236			348,989			2,193			1,440
GNMA			653			704			51			—
FNMA			104,235			104,882			1,073			426
FHLMC			68,476			69,274			871			73
Total mortgage-backed securities			521,600			523,849			4,188			1,939
Total securities available for sale		$	778,294		$	772,500		$	4,307		$	10,101

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2018:


								Gross			Gross
		Amortized						Unrealized			Unrealized
		Cost			Fair Value			Gains			Losses
		(In thousands)
Corporate		$	130,000		$	118,535		$	—		$	11,465
Municipals			46,231			46,574			343			—
Mutual funds			11,586			11,586			—			—
Collateralized loan obligations			88,396			86,751			—			1,645
Other			1,256			1,256			—			—
Total other securities			277,469			264,702			343			13,110
REMIC and CMO			382,632			376,340			885			7,177
GNMA			785			826			41			—
FNMA			94,069			91,693			72			2,448
FHLMC			90,377			89,094			113			1,396
Total mortgage-backed securities			567,863			557,953			1,111			11,021
Total securities available for sale		$	845,332		$	822,655		$	1,454		$	24,131

We did not hold any private issue CMO’s that are collateralized by commercial real estate mortgages at December 31, 2019 and 2018.

The corporate securities held by the Company at December 31, 2019 and 2018 are issued by U.S. banking institutions.

The following table details the amortized cost and fair value of the Company’s securities classified as held-to-maturity at December 31, 2019, by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


		Amortized
		Cost			Fair Value
		(In thousands)
Due in one year or less		$	180		$	180
Due after ten years			50,774			53,818
Total other securities			50,954			53,998
Mortgage-backed securities			7,934			8,114
Total securities held-to-maturity		$	58,888		$	62,112

The amortized cost and fair value of the Company’s securities, classified as available for sale at December 31, 2019, by contractual maturity, are shown below.


		Amortized
		Cost			Fair Value
		(In thousands)
Due after one year through five years		$	10,000		$	9,820
Due after five years through ten years			137,918			131,051
Due after ten years			96,560			95,564
Total other securities			244,478			236,435
Mutual funds			12,216			12,216
Mortgage-backed securities			521,600			523,849
Total securities available for sale		$	778,294		$	772,500

The following table shows the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019.


				Total						Less than 12 months						12 months or more
							Unrealized						Unrealized						Unrealized
		Count		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
		(Dollars in thousands)
Available for sale securities
Corporate		16		$	123,050		$	6,950		$	—		$	—		$	123,050		$	6,950
CLO		13			99,137			1,212			25,451			108			73,686			1,104
Total other securities		29			222,187			8,162			25,451			108			196,736			8,054

REMIC and CMO		23			120,989			1,440			102,384			1,117			18,605			323
GNMA		1			49			—			49			—			—			—
FNMA		8			67,618			426			19,073			138			48,545			288
FHLMC		1			30,200			73			—			—			30,200			73
Total mortgage-backed securities		33			218,856			1,939			121,506			1,255			97,350			684
Total securities available for sale		62		$	441,043		$	10,101		$	146,957		$	1,363		$	294,086		$	8,738

The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018.


				Total						Less than 12 months						12 months or more
							Unrealized						Unrealized						Unrealized
		Count		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
		(Dollars in thousands)
Held-to-maturity securities

Municipals		1		$	19,940		$	1,557		$	—		$	—		$	19,940		$	1,557
Total other securities		1			19,940			1,557			—			—			19,940			1,557

FNMA		1			7,366			587			—			—			7,366			587
Total mortgage-backed securities		1			7,366			587			—			—			7,366			587

Total securities held-to-maturity		2		$	27,306		$	2,144		$	—		$	—		$	27,306		$	2,144

Available for sale securities
Corporate		16		$	118,535		$	11,465		$	19,113		$	888		$	99,422		$	10,577
Municipals		3			4,220			—			4,220			—			—			—
CLO		11			86,752			1,645			86,752			1,645			—			—
Total other securities		30			209,507			13,110			110,085			2,533			99,422			10,577

REMIC and CMO		39			243,756			7,177			17,308			200			226,448			6,977
GNMA		1			51			—			51			—			—			—
FNMA		14			85,046			2,448			6,372			17			78,674			2,431
FHLMC		3			51,288			1,396			10,116			95			41,172			1,301
Total mortgage-backed securities		57			380,141			11,021			33,847			312			346,294			10,709
Total securities available for sale		87		$	589,648		$	24,131		$	143,932		$	2,845		$	445,716		$	21,286

We recognize OTTI losses on impaired securities in earnings when we have the intent to sell the debt security or if it is more likely than not that we will be required to sell the debt security before recovery of its amortized cost. However, even if we do not expect to sell a debt security in an unrealized loss position, we must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive income (loss). Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in accumulated other comprehensive income (loss), net of tax.

The Company reviewed each investment that had an unrealized loss at December 31, 2019 and 2018. The unrealized losses in held-to-maturity municipal securities at December 31, 2018 were caused by illiquidity in the market and movements in interest rates. The unrealized losses in held-to-maturity FNMA securities at December 31, 2018 were caused by movements in interest rates. The unrealized losses in securities available for sale at December 31, 2019 and 2018 were caused by movements in interest rates.

It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2019 and 2018.

The Company did not record any credit related OTTI charges during the years ended December 31, 2019, 2018 and 2017.

The Company sold available for sale securities with carrying values at the time of sale totaling $26.4 million, $120.3 million and $112.4 million during the years ended December 31, 2019, 2018 and 2017, respectively.

The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:


		For the years ended
		December 31,
		2019			2018			2017
		(In thousands)
Gross gains from the sale of securities		$	423		$	105		$	401
Gross losses from the sale of securities			(438)			(2,025)			(587)

Net (losses) gains from the sale of securities		$	(15)		$	(1,920)		$	(186)

Included in “Other assets” within our Consolidated Statements of Financial Condition are amounts held in a rabbi trust for certain non-qualified deferred compensation plans totaling $20.0 million and $17.3 million at December 31, 2019 and 2018, respectively.