XML 27 R11.htm IDEA: XBRL DOCUMENT
v3.19.3

Securities | 9 Months Ended
--- | ---
Sep. 30, 2019
Securities [Abstract] |
Securities |
3. | Securities
The amortized cost, estimated fair value and unrealized gains (losses) of available for sale (“AFS”) securities are as follows:
(In thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Estimated Fair Value |
As of September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 29,998 |  |  | $ | - |  |  | $ | 167 |  |  | $ | 29,831 |
State & municipal |  |  | 9 |  |  |  | - |  |  |  | - |  |  |  | 9 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 433,393 |  |  |  | 4,494 |  |  |  | 292 |  |  |  | 437,595 |
U.S. government agency securities |  |  | 44,912 |  |  |  | 1,021 |  |  |  | 18 |  |  |  | 45,915 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 343,682 |  |  |  | 2,484 |  |  |  | 456 |  |  |  | 345,710 |
U.S. government agency securities |  |  | 72,443 |  |  |  | 887 |  |  |  | 217 |  |  |  | 73,113 |
Total AFS securities |  | $ | 924,437 |  |  | $ | 8,886 |  |  | $ | 1,150 |  |  | $ | 932,173 |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 84,982 |  |  | $ | 10 |  |  | $ | 693 |  |  | $ | 84,299 |
State & municipal |  |  | 30,136 |  |  |  | 16 |  |  |  | 237 |  |  |  | 29,915 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 493,225 |  |  |  | 439 |  |  |  | 10,354 |  |  |  | 483,310 |
U.S. government agency securities |  |  | 29,190 |  |  |  | 270 |  |  |  | 475 |  |  |  | 28,985 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 332,409 |  |  |  | 344 |  |  |  | 7,211 |  |  |  | 325,542 |
U.S. government agency securities |  |  | 47,684 |  |  |  | 137 |  |  |  | 1,376 |  |  |  | 46,445 |
Total AFS securities |  | $ | 1,017,626 |  |  | $ | 1,216 |  |  | $ | 20,346 |  |  | $ | 998,496 |
The components of net realized gains (losses) on AFS securities are as follows. These amounts were reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings.
|  | Three Months Ended September 30, |
(In thousands) |  | 2019 |  |  | 2018 |
Gross realized gains |  | $ | 20 |  |  | $ | - |
Gross realized (losses) |  |  | - |  |  |  | - |
Net AFS realized gains |  | $ | 20 |  |  | $ | - |
|  | Nine Months Ended September 30, |
(In thousands) |  | 2019 |  |  | 2018 |
Gross realized gains |  | $ | 73 |  |  | $ | - |
Gross realized (losses) |  |  | (152 | ) |  |  | - |
Net AFS realized (losses) |  | $ | (79 | ) |  | $ | - |
Included in net realized gains (losses) on AFS securities, the Company recorded gains from calls of approximately $20 thousand for the three months ended September 30, 2019 and $25 thousand for the nine months ended September 30, 2019. There were no recorded gains from calls on AFS securities included in net realized gains (losses) for the three and nine months ended September 30, 2018. The amortized cost, estimated fair value and unrealized gains (losses) of held to maturity (“HTM”) securities are as follows:
(In thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Estimated Fair Value |
As of September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 10,000 |  |  | $ | 6 |  |  | $ | - |  |  | $ | 10,006 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 154,701 |  |  |  | 3,139 |  |  |  | 127 |  |  |  | 157,713 |
U.S. government agency securities |  |  | 13,679 |  |  |  | 785 |  |  |  | - |  |  |  | 14,464 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 213,409 |  |  |  | 2,849 |  |  |  | 365 |  |  |  | 215,893 |
U.S. government agency securities |  |  | 112,974 |  |  |  | 4,001 |  |  |  | 64 |  |  |  | 116,911 |
State & municipal |  |  | 173,672 |  |  |  | 2,544 |  |  |  | 14 |  |  |  | 176,202 |
Total HTM securities |  | $ | 678,435 |  |  | $ | 13,324 |  |  | $ | 570 |  |  | $ | 691,189 |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 19,995 |  |  | $ | 52 |  |  | $ | - |  |  | $ | 20,047 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 164,618 |  |  |  | 712 |  |  |  | 2,773 |  |  |  | 162,557 |
U.S. government agency securities |  |  | 15,230 |  |  |  | 403 |  |  |  | - |  |  |  | 15,633 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 257,475 |  |  |  | 1,097 |  |  |  | 3,897 |  |  |  | 254,675 |
U.S. government agency securities |  |  | 83,148 |  |  |  | 767 |  |  |  | - |  |  |  | 83,915 |
State & municipal |  |  | 243,133 |  |  |  | 331 |  |  |  | 1,616 |  |  |  | 241,848 |
Total HTM securities |  | $ | 783,599 |  |  | $ | 3,362 |  |  | $ | 8,286 |  |  | $ | 778,675 |
Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $4 thousand for the three and nine months ended September 30, 2019. There were no recorded gains from calls on HTM securities included in net realized gains (losses) for the three and nine months ended September 30, 2018. AFS and HTM securities with amortized costs totaling $1.4 billion at September 30, 2019 and $1.5 billion at December 31, 2018 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at September 30, 2019 and December 31, 2018, AFS and HTM securities with an amortized cost of $186.3 million and $215.3 million, respectively, were pledged as collateral for securities sold under repurchase agreements. The following table sets forth information with regard to investment securities with unrealized losses segregated according to the length of time the securities had been in a continuous unrealized loss position:
|  | Less Than 12 Months |  |  | 12 Months or Longer |  |  | Total |
(In thousands) |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Positions |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Positions |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Positions |
As of September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 19,965 |  |  | $ | (33 | ) |  |  | 2 |  |  | $ | 9,866 |  |  | $ | (134 | ) |  |  | 1 |  |  | $ | 29,831 |  |  | $ | (167 | ) |  |  | 3 |
Mortgage-backed |  |  | 36,017 |  |  |  | (69 | ) |  |  | 18 |  |  |  | 39,394 |  |  |  | (241 | ) |  |  | 16 |  |  |  | 75,411 |  |  |  | (310 | ) |  |  | 34 |
Collateralized mortgage obligations |  |  | 60,272 |  |  |  | (170 | ) |  |  | 11 |  |  |  | 72,528 |  |  |  | (503 | ) |  |  | 23 |  |  |  | 132,800 |  |  |  | (673 | ) |  |  | 34 |
Total securities with unrealized losses |  | $ | 116,254 |  |  | $ | (272 | ) |  |  | 31 |  |  | $ | 121,788 |  |  | $ | (878 | ) |  |  | 40 |  |  | $ | 238,042 |  |  | $ | (1,150 | ) |  |  | 71 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 26,836 |  |  | $ | (127 | ) |  |  | 2 |  |  | $ | 26,836 |  |  | $ | (127 | ) |  |  | 2 |
Collateralized mortgage obligations |  |  | 18,656 |  |  |  | (129 | ) |  |  | 3 |  |  |  | 23,708 |  |  |  | (300 | ) |  |  | 5 |  |  |  | 42,364 |  |  |  | (429 | ) |  |  | 8 |
State & municipal |  |  | 5,447 |  |  |  | (14 | ) |  |  | 8 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,447 |  |  |  | (14 | ) |  |  | 8 |
Total securities with unrealized losses |  | $ | 24,103 |  |  | $ | (143 | ) |  |  | 11 |  |  | $ | 50,544 |  |  | $ | (427 | ) |  |  | 7 |  |  | $ | 74,647 |  |  | $ | (570 | ) |  |  | 18 |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 64,294 |  |  | $ | (693 | ) |  |  | 6 |  |  | $ | 64,294 |  |  | $ | (693 | ) |  |  | 6 |
State & municipal |  |  | 1,715 |  |  |  | (3 | ) |  |  | 3 |  |  |  | 22,324 |  |  |  | (234 | ) |  |  | 35 |  |  |  | 24,039 |  |  |  | (237 | ) |  |  | 38 |
Mortgage-backed |  |  | 18,462 |  |  |  | (65 | ) |  |  | 12 |  |  |  | 428,440 |  |  |  | (10,764 | ) |  |  | 101 |  |  |  | 446,902 |  |  |  | (10,829 | ) |  |  | 113 |
Collateralized mortgage obligations |  |  | 12,118 |  |  |  | (69 | ) |  |  | 5 |  |  |  | 320,908 |  |  |  | (8,518 | ) |  |  | 62 |  |  |  | 333,026 |  |  |  | (8,587 | ) |  |  | 67 |
Total securities with unrealized losses |  | $ | 32,295 |  |  | $ | (137 | ) |  |  | 20 |  |  | $ | 835,966 |  |  | $ | (20,209 | ) |  |  | 204 |  |  | $ | 868,261 |  |  | $ | (20,346 | ) |  |  | 224 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 82,579 |  |  | $ | (2,773 | ) |  |  | 6 |  |  | $ | 82,579 |  |  | $ | (2,773 | ) |  |  | 6 |
Collateralized mortgage obligations |  |  | 4,386 |  |  |  | (7 | ) |  |  | 2 |  |  |  | 145,396 |  |  |  | (3,890 | ) |  |  | 26 |  |  |  | 149,782 |  |  |  | (3,897 | ) |  |  | 28 |
State & municipal |  |  | 18,907 |  |  |  | (84 | ) |  |  | 30 |  |  |  | 58,258 |  |  |  | (1,532 | ) |  |  | 86 |  |  |  | 77,165 |  |  |  | (1,616 | ) |  |  | 116 |
Total securities with unrealized losses |  | $ | 23,293 |  |  | $ | (91 | ) |  |  | 32 |  |  | $ | 286,233 |  |  | $ | (8,195 | ) |  |  | 118 |  |  | $ | 309,526 |  |  | $ | (8,286 | ) |  |  | 150 |
Declines in the fair value of HTM securities below their amortized cost, less any current period credit loss, that are deemed to be other-than-temporary are reflected in earnings as realized losses or in other comprehensive income (“OCI”). The classification is dependent upon whether the Company intends to sell the security, or whether it is more likely than not, that the Company will be required to sell the security before recovery. The other-than-temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be separated into (i) the amount representing the credit loss and (ii) the amount related to all other factors. The amount of the total OTTI related to the credit loss shall be recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in OCI, net of applicable taxes. In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the historical and implied volatility of the fair value of the security. Management has the intent to hold the securities classified as HTM until they mature, at which time it is believed the Company will receive full value for the securities. The unrealized losses on HTM debt securities are due to increases in market interest rates over yields at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. The fair value is expected to recover as the bond approaches its maturity date or repricing date or if market yields for such investments declines. Management also has the intent to hold and will not be required to sell, the debt securities classified as AFS for a period of time sufficient for a recovery of cost, which may be until maturity. The unrealized losses on AFS debt securities are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. For AFS debt securities, OTTI losses are recognized in earnings if the Company intends to sell the security. In other cases the Company considers the relevant factors noted above, as well as the Company’s intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security. As of September 30, 2019 and December 31, 2018, management believes the impairments detailed in the table above are temporary. There were no OTTI losses realized in the Company’s unaudited interim consolidated statements of income for the three and nine months ended September 30, 2019, or in the three and nine months ended September 30, 2018. The following tables set forth information with regard to gains and losses on equity securities:
|  | Three Months Ended September 30, |
(In thousands) |  | 2019 |  |  | 2018 |
Net gains and losses recognized on equity securities |  | $ | 4,012 |  |  | $ | 412 |
Less: Net gains and losses recognized during the period on equity securities sold during the period |  |  | 3,966 |  |  |  | 511 |
Unrealized gains and losses recognized on equity securities still held |  | $ | 46 |  |  | $ | (99 | )
|  | Nine Months Ended September 30, |
(In thousands) |  | 2019 |  |  | 2018 |
Net gains and losses recognized on equity securities |  | $ | 4,099 |  |  | $ | 575 |
Less: Net gains and losses recognized during the period on equity securities sold during the period |  |  | 3,966 |  |  |  | 555 |
Unrealized gains and losses recognized on equity securities still held |  | $ | 133 |  |  | $ | 20 |
Included in the net realized gains and losses recognized on equity securities during the three and nine months ended September 30, 2019, the Company recorded a $4.0 million gain from the sale of Visa Class B common stock, which had no readily determinable fair value at the time of the sale. As of September 30, 2019 and December 31, 2018, the carrying value of equity securities without readily determinable fair values was $4.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of September 30, 2019 and 2018. There were no impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the three and nine months ended September 30, 2019 and 2018. The following tables set forth information with regard to contractual maturities of debt securities at September 30, 2019:
(In thousands) |  | Amortized Cost |  |  | Estimated Fair Value |
AFS debt securities: |  |  |  |  |  |
Within one year |  | $ | 37 |  |  | $ | 37 |
From one to five years |  |  | 30,404 |  |  |  | 30,393 |
From five to ten years |  |  | 171,485 |  |  |  | 173,220 |
After ten years |  |  | 722,511 |  |  |  | 728,523 |
Total AFS debt securities |  | $ | 924,437 |  |  | $ | 932,173 |
HTM debt securities: |  |  |  |  |  |  |  |
Within one year |  | $ | 26,940 |  |  | $ | 26,940 |
From one to five years |  |  | 68,113 |  |  |  | 68,531 |
From five to ten years |  |  | 179,381 |  |  |  | 183,425 |
After ten years |  |  | 404,001 |  |  |  | 412,293 |
Total HTM debt securities |  | $ | 678,435 |  |  | $ | 691,189 |
Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Except for U.S. Government securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at September 30, 2019 and December 31, 2018.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration