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Note 4 - Securities

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

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

NOTE 4 - SECURITIES

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2024 and December 31, 2023 are summarized as follows:

						Gross				Gross
		Amortized				Unrealized				Unrealized				Market
		Cost				Gain				Loss				Value
March 31, 2024		(In Thousands)
Debt Securities Available-for-Sale
U.S. Treasury Securities		$	494,156			$	10			$	(197	)		$	493,969
Mortgage-backed securities			281,343				249				(26,677	)			254,915
State and municipal securities			11,142				1				(1,186	)			9,958
Corporate debt			352,684				60				(37,657	)			315,086
Total		$	1,139,325			$	320			$	(65,716	)		$	1,073,929
Debt Securities Held-to-Maturity
U.S. Treasury Securities		$	393,932			$	-			$	(25,065	)		$	368,868
Mortgage-backed securities			465,695				5				(56,634	)			409,066
State and municipal securities			8,069				-				(733	)			7,336
Total		$	867,696			$	5			$	(82,431	)		$	785,270

December 31, 2023
Debt Securities Available-for-Sale
U.S. Treasury Securities		$	340,556			$	251			$	-			$	340,807
Mortgage-backed securities			241,458				6				(25,979	)			215,485
State and municipal securities			11,400				1				(1,178	)			10,223
Corporate debt			375,676				-				(42,009	)			333,667
Total		$	969,090			$	258			$	(69,166	)		$	900,183
Debt Securities Held-to-Maturity
U.S. Treasury Securities		$	508,985			$	-			$	(24,718	)		$	484,267
Mortgage-backed securities			465,615				3				(50,025	)			415,593
State and municipal securities			8,063				-				(732	)			7,331
Total		$	982,664			$	3			$	(75,475	)		$	907,191

The amortized cost and fair value of debt securities as of March 31, 2024 and December 31, 2023 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities.

		March 31, 2024								December 31, 2023
		Amortized Cost				Market Value				Amortized Cost				Market Value
		(In Thousands)
Debt securities available-for-sale
Due within one year		$	430,857			$	430,760			$	350,400			$	350,396
Due from one to five years			132,967				129,779				70,016				67,334
Due from five to ten years			291,157				256,407				304,216				264,893
Due after ten years			3,000				2,068				3,000				2,076
Mortgage-backed securities			281,343				254,915				241,458				215,485
		$	1,139,325			$	1,073,929			$	969,090			$	900,183

Debt securities held-to-maturity
Due within one year		$	144,940			$	144,283			$	260,047			$	257,835
Due from one to five years			253,772				229,043				203,481				185,741
Due from five to ten years			3,289				2,878				53,521				48,022
Mortgage-backed securities			465,695				409,066				465,615				415,593
		$	867,696			$	785,270			$	982,664			$	907,191

All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

Restricted equity securities are comprised entirely of restricted investment in Federal Home Loan Bank stock for membership requirements.

The carrying value of investment securities pledged to secure public funds on deposit and for other purposes as required by law was $1.48 billion and $1.49 billion as of March 31, 2024 and December 31, 2023, respectively.

The following table identifies, as of March 31, 2024 and December 31, 2023, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months.

		Less Than Twelve Months								Twelve Months or More								Total
		Gross								Gross								Gross
		Unrealized								Unrealized								Unrealized
		Losses				Fair Value				Losses				Fair Value				Losses				Fair Value
		(In Thousands)
March 31, 2024
Debt Securities available-for-sale
U.S. Treasury Securities		$	(197	)		$	479,762			$	-			$	-			$	(197	)		$	479,762
Government Agency Securities			-				-				-				-				-				-
Mortgage-backed securities			(2	)			161				(26,674	)			205,195				(26,677	)			205,356
State and municipal securities			-				-				(1,186	)			9,512				(1,186	)			9,512
Corporate debt			(2,392	)			11,108				(35,265	)			294,003				(37,657	)			305,111
Total		$	(2,591	)		$	491,031			$	(63,125	)		$	508,710			$	(65,716	)		$	999,741
Debt Securities held-to-maturity
U.S. Treasury Securities		$	-			$	-			$	(25,065	)		$	368,868			$	(25,065	)		$	368,868
Mortgage-backed securities			(162	)			9,895				(56,471	)			393,887				(56,634	)			405,323
State and municipal securities			-				-				(733	)			7,086				(733	)			7,086
Total		$	(162	)		$	9,895			$	(82,269	)		$	771,382			$	(82,431	)		$	779,735
December 31, 2023
Debt Securities available-for-sale
Mortgage-backed securities		$	(6	)		$	704			$	(25,973	)		$	214,393			$	(25,979	)		$	215,097
State and municipal securities			-				-				(1,178	)			9,777				(1,178	)			9,777
Corporate debt			(794	)			15,141				(41,214	)			311,666				(42,009	)			326,807
Total		$	(801	)		$	15,845			$	(68,365	)		$	535,836			$	(69,166	)		$	551,681
Debt Securities held-to-maturity
U.S. Treasury Securities		$	-			$	-			$	(24,718	)		$	484,267			$	(24,718	)		$	484,267
Mortgage-backed securities			(1	)			430				(50,024	)			411,585				(50,025	)			412,015
State and municipal securities			-				-				(732	)			7,081				(732	)			7,081
Total		$	(1	)		$	430			$	(75,474	)		$	902,933			$	(75,475	)		$	903,363

At March 31, 2024 and 2023, no allowance for credit losses (“ACL”) has been recognized on available-for-sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available-for-sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to U.S. Treasury and residential mortgage-backed securities issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by States and political subdivisions and other held-to-maturity securities, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Historical loss rates associated with securities having similar grades as those in our portfolio have generally not been significant. Furthermore, as of March 31, 2024 and 2023, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for held-to-maturity State and Municipal Securities as such amount is not material at March 31, 2024 and 2023. All debt securities in an unrealized loss position as of March 31, 2024 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.