XML 20 R12.htm IDEA: XBRL DOCUMENT
v3.20.1

Securities | 3 Months Ended
--- | ---
Mar. 31, 2020
Securities [Abstract] |
Securities |
4. | Securities
The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:
(In thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Estimated Fair Value |
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
State & municipal |  | $ | 2,533 |  |  | $ | 86 |  |  | $ | - |  |  | $ | 2,619 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 465,033 |  |  |  | 15,787 |  |  |  | - |  |  |  | 480,820 |
U.S. government agency securities |  |  | 50,109 |  |  |  | 1,249 |  |  |  | 55 |  |  |  | 51,303 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 308,833 |  |  |  | 9,221 |  |  |  | 95 |  |  |  | 317,959 |
U.S. government agency securities |  |  | 146,350 |  |  |  | 1,997 |  |  |  | 68 |  |  |  | 148,279 |
Total AFS securities |  | $ | 972,858 |  |  | $ | 28,340 |  |  | $ | 218 |  |  | $ | 1,000,980 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 34,998 |  |  | $ | 3 |  |  | $ | 243 |  |  | $ | 34,758 |
State & municipal |  |  | 2,533 |  |  |  | - |  |  |  | 20 |  |  |  | 2,513 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 453,614 |  |  |  | 4,982 |  |  |  | 239 |  |  |  | 458,357 |
U.S. government agency securities |  |  | 44,758 |  |  |  | 667 |  |  |  | 156 |  |  |  | 45,269 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 328,499 |  |  |  | 1,949 |  |  |  | 467 |  |  |  | 329,981 |
U.S. government agency securities |  |  | 104,152 |  |  |  | 718 |  |  |  | 408 |  |  |  | 104,462 |
Total AFS securities |  | $ | 968,554 |  |  | $ | 8,319 |  |  | $ | 1,533 |  |  | $ | 975,340 |
There was no allowance for credit losses on AFS securities as of the quarter ending March 31, 2020. The components of net realized gains (losses) on the sale of AFS securities are as follows. These amounts were reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings.
|  | Three Months Ended March 31, |
(In thousands) |  | 2020 |  |  | 2019 |
Gross realized gains |  | $ | 3 |  |  | $ | 53 |
Gross realized (losses) |  |  | - |  |  |  | (152 | )
Net AFS realized gains (losses) |  | $ | 3 |  |  | $ | (99 | )
Included in net gains (losses) on AFS securities, the Company recorded gains from calls of approximately $3 thousand for the three months ended March 31, 2020 and approximately $4 thousand for the three months ended March 31, 2019. The amortized cost, estimated fair value and unrealized gains (losses) of securities HTM are as follows:
(In thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Estimated Fair Value |
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  | $ | 151,588 |  |  | $ | 7,020 |  |  | $ | - |  |  | $ | 158,608 |
U.S. government agency securities |  |  | 12,236 |  |  |  | 815 |  |  |  | - |  |  |  | 13,051 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 171,397 |  |  |  | 5,990 |  |  |  | - |  |  |  | 177,387 |
U.S. government agency securities |  |  | 105,704 |  |  |  | 4,133 |  |  |  | - |  |  |  | 109,837 |
State & municipal |  |  | 180,434 |  |  |  | 3,127 |  |  |  | 119 |  |  |  | 183,442 |
Total HTM securities |  | $ | 621,359 |  |  | $ | 21,085 |  |  | $ | 119 |  |  | $ | 642,325 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  | $ | 149,448 |  |  | $ | 3,184 |  |  | $ | 155 |  |  | $ | 152,477 |
U.S. government agency securities |  |  | 13,667 |  |  |  | 584 |  |  |  | - |  |  |  | 14,251 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 189,402 |  |  |  | 2,165 |  |  |  | 368 |  |  |  | 191,199 |
U.S. government agency securities |  |  | 110,498 |  |  |  | 3,256 |  |  |  | 100 |  |  |  | 113,654 |
State & municipal |  |  | 167,059 |  |  |  | 2,628 |  |  |  | 6 |  |  |  | 169,681 |
Total HTM securities |  | $ | 630,074 |  |  | $ | 11,817 |  |  | $ | 629 |  |  | $ | 641,262 |
At March 31, 2020 and December 31, 2019, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and Government-sponsored enterprises securities. There was no allowance for credit losses on HTM securities as of March 31, 2020. AFS and HTM securities with amortized costs totaling $1.4 billion at March 31, 2020 and $1.3 billion December 31, 2019 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at March 31, 2020 and December 31, 2019, AFS and HTM securities with an amortized cost of $270.5 million and $189.8 million, respectively, were pledged as collateral for securities sold under repurchase agreements. The following table sets forth information with regard to gains and losses on equity securities:
|  | Three Months Ended March 31, |
(In thousands) |  | 2020 |  |  | 2019 |
Net gains and losses recognized on equity securities |  | $ | (815 | ) |  | $ | 156 |
Less: Net gains and losses recognized during the period on equity securities sold during the period |  |  | - |  |  |  | - |
Unrealized gains and losses recognized on equity securities still held |  | $ | (815 | ) |  | $ | 156 |
As of March 31, 2020 and December 31, 2019, 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 March 31, 2020 and 2019. There were impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the three months ended March 31, 2020 and 2019. The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2020:
(In thousands) |  | Amortized Cost |  |  | Estimated Fair Value |
AFS debt securities: |  |  |  |  |  |
Within one year |  | $ | 473 |  |  | $ | 484 |
From one to five years |  |  | 17,006 |  |  |  | 17,501 |
From five to ten years |  |  | 146,941 |  |  |  | 151,270 |
After ten years |  |  | 808,438 |  |  |  | 831,725 |
Total AFS debt securities |  | $ | 972,858 |  |  | $ | 1,000,980 |
HTM debt securities: |  |  |  |  |  |  |  |
Within one year |  | $ | 26,569 |  |  | $ | 26,581 |
From one to five years |  |  | 60,261 |  |  |  | 60,859 |
From five to ten years |  |  | 159,181 |  |  |  | 164,806 |
After ten years |  |  | 375,348 |  |  |  | 390,079 |
Total HTM debt securities |  | $ | 621,359 |  |  | $ | 642,325 |
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 and Government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at March 31, 2020 and December 31, 2019. The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded at March 31, 2020, 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 March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed |  | $ | 6,003 |  |  | $ | (46 | ) |  |  | 3 |  |  | $ | 789 |  |  | $ | (9 | ) |  |  | 2 |  |  | $ | 6,792 |  |  | $ | (55 | ) |  |  | 5 |
Collateralized mortgage obligations |  |  | 42,517 |  |  |  | (120 | ) |  |  | 13 |  |  |  | 3,161 |  |  |  | (43 | ) |  |  | 1 |  |  |  | 45,678 |  |  |  | (163 | ) |  |  | 14 |
Total securities with unrealized losses |  | $ | 48,520 |  |  | $ | (166 | ) |  |  | 16 |  |  | $ | 3,950 |  |  | $ | (52 | ) |  |  | 3 |  |  | $ | 52,470 |  |  | $ | (218 | ) |  |  | 19 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State & municipal |  | $ | 3,338 |  |  | $ | (119 | ) |  |  | 4 |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 3,338 |  |  | $ | (119 | ) |  |  | 4 |
Total securities with unrealized losses |  | $ | 3,338 |  |  | $ | (119 | ) |  |  | 4 |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 3,338 |  |  | $ | (119 | ) |  |  | 4 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 14,891 |  |  | $ | (109 | ) |  |  | 2 |  |  | $ | 9,866 |  |  | $ | (134 | ) |  |  | 1 |  |  | $ | 24,757 |  |  | $ | (243 | ) |  |  | 3 |
State & municipal |  |  | 2,503 |  |  |  | (20 | ) |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,503 |  |  |  | (20 | ) |  |  | 1 |
Mortgage-backed |  |  | 67,986 |  |  |  | (273 | ) |  |  | 21 |  |  |  | 37,745 |  |  |  | (122 | ) |  |  | 16 |  |  |  | 105,731 |  |  |  | (395 | ) |  |  | 37 |
Collateralized mortgage obligations |  |  | 113,121 |  |  |  | (316 | ) |  |  | 24 |  |  |  | 49,632 |  |  |  | (559 | ) |  |  | 17 |  |  |  | 162,753 |  |  |  | (875 | ) |  |  | 41 |
Total securities with unrealized losses |  | $ | 198,501 |  |  | $ | (718 | ) |  |  | 48 |  |  | $ | 97,243 |  |  | $ | (815 | ) |  |  | 34 |  |  | $ | 295,744 |  |  | $ | (1,533 | ) |  |  | 82 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 25,370 |  |  | $ | (155 | ) |  |  | 2 |  |  | $ | 25,370 |  |  | $ | (155 | ) |  |  | 2 |
Collateralized mortgage obligations |  |  | 18,040 |  |  |  | (181 | ) |  |  | 3 |  |  |  | 22,389 |  |  |  | (287 | ) |  |  | 5 |  |  |  | 40,429 |  |  |  | (468 | ) |  |  | 8 |
State & municipal |  |  | 2,257 |  |  |  | (6 | ) |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,257 |  |  |  | (6 | ) |  |  | 4 |
Total securities with unrealized losses |  | $ | 20,297 |  |  | $ | (187 | ) |  |  | 7 |  |  | $ | 47,759 |  |  | $ | (442 | ) |  |  | 7 |  |  | $ | 68,056 |  |  | $ | (629 | ) |  |  | 14 |
The Company does not believe the AFS securities that were in an unrealized loss position as of March 31, 2020, which consisted of 19 individual securities, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of March 31, 2020, all of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. AIR on AFS debt securities totaled $2.1 million at March 31, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets. None of the bank’s HTM debt securities were past due or on non-accrual status as of the quarter ending March 31, 2020. There was no accrued interest reversed against interest income for the quarter ended March 31, 2020 as all securities remained on accrual status. In addition, there were no collateral-dependent HTM debt securities as of March 31, 2020. 71% of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2020. The remaining HTM debt securities at March 31, 2020 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the CECL approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of March 31, 2020. AIR on HTM debt securities totaled $2.6 million at March 31, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.

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