XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.23.2

Securities | 6 Months Ended
--- | ---
Jun. 30, 2023
Securities [Abstract] |
Securities |
4. | 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 June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury |  | $ | 133,019 |  |  | $ | - |  |  | $ | (11,022 | ) |  | $ | 121,997 |
Federal agency |  |  | 248,401 |  |  |  | - |  |  |  | (39,748 | ) |  |  | 208,653 |
State & municipal |  |  | 96,645 |  |  |  | 2 |  |  |  | (12,472 | ) |  |  | 84,175 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 426,190 |  |  |  | 4 |  |  |  | (53,872 | ) |  |  | 372,322 |
U.S. government agency securities |  |  | 77,869 |  |  |  | 11 |  |  |  | (8,813 | ) |  |  | 69,067 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 474,708 |  |  |  | 8 |  |  |  | (58,849 | ) |  |  | 415,867 |
U.S. government agency securities |  |  | 166,936 |  |  |  | - |  |  |  | (25,434 | ) |  |  | 141,502 |
Corporate |  |  | 48,423 |  |  |  | - |  |  |  | (8,080 | ) |  |  | 40,343 |
Total AFS securities |  | $ | 1,672,191 |  |  | $ | 25 |  |  | $ | (218,290 | ) |  | $ | 1,453,926 |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury |  | $ | 132,891 |  |  | $ | - |  |  | $ | (11,233 | ) |  | $ | 121,658 |
Federal agency |  |  | 248,419 |  |  |  | - |  |  |  | (42,000 | ) |  |  | 206,419 |
State & municipal |  |  | 97,036 |  |  |  | 5 |  |  |  | (14,190 | ) |  |  | 82,851 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 454,177 |  |  |  | 9 |  |  |  | (54,675 | ) |  |  | 399,511 |
U.S. government agency securities |  |  | 81,844 |  |  |  | 15 |  |  |  | (7,676 | ) |  |  | 74,183 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 498,021 |  |  |  | 9 |  |  |  | (59,473 | ) |  |  | 438,557 |
U.S. government agency securities |  |  | 171,090 |  |  |  | - |  |  |  | (21,284 | ) |  |  | 149,806 |
Corporate |  |  | 60,404 |  |  |  | - |  |  |  | (6,164 | ) |  |  | 54,240 |
Total AFS securities |  | $ | 1,743,882 |  |  | $ | 38 |  |  | $ | (216,695 | ) |  | $ | 1,527,225 |
There was no allowance for credit losses on AFS securities as of June 30, 2023 and December 31, 2022. During the three months ended June 30, 2023, there were $4.5 million of gross realized losses reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings. During the six months ended June 30, 2023, there were $4.5 million of gross realized losses reclassified out of AOCI and into earnings and the Company incurred a $5.0 million loss on the write-off of an AFS corporate debt security from a subordinated debt investment of a bank that failed. These losses were reclassified out of AOCI and into earnings in net securities losses in the consolidated statement of income. During the three and six months ended June 30, 2022 there were no gains or losses reclassified out of AOCI and into earnings. 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 June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 100,000 |  |  | $ | - |  |  | $ | (19,620 | ) |  | $ | 80,380 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 239,102 |  |  |  | - |  |  |  | (35,641 | ) |  |  | 203,461 |
U.S. government agency securities |  |  | 17,391 |  |  |  | 1 |  |  |  | (827 | ) |  |  | 16,565 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 197,597 |  |  |  | 84 |  |  |  | (15,575 | ) |  |  | 182,106 |
U.S. government agency securities |  |  | 65,298 |  |  |  | - |  |  |  | (11,007 | ) |  |  | 54,291 |
State & municipal |  |  | 293,488 |  |  |  | 50 |  |  |  | (21,700 | ) |  |  | 271,838 |
Total HTM securities |  | $ | 912,876 |  |  | $ | 135 |  |  | $ | (104,370 | ) |  | $ | 808,641 |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 100,000 |  |  | $ | - |  |  | $ | (20,678 | ) |  | $ | 79,322 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 249,511 |  |  |  | - |  |  |  | (36,819 | ) |  |  | 212,692 |
U.S. government agency securities |  |  | 18,396 |  |  |  | 4 |  |  |  | (619 | ) |  |  | 17,781 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 207,738 |  |  |  | 200 |  |  |  | (14,876 | ) |  |  | 193,062 |
U.S. government agency securities |  |  | 66,628 |  |  |  | - |  |  |  | (9,842 | ) |  |  | 56,786 |
State & municipal |  |  | 277,244 |  |  |  | 5 |  |  |  | (24,245 | ) |  |  | 253,004 |
Total HTM securities |  | $ | 919,517 |  |  | $ | 209 |  |  | $ | (107,079 | ) |  | $ | 812,647 |
At June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022 because the expectation of nonrepayment of the amortized cost was zero, except for state & municipal securities, which such expected losses from nonrepayment were immaterial. The Company recorded no gains from calls on HTM securities for the three months ended June 30, 2023 and 2022. The Company recorded no gains from calls on HTM securities for the six months ended June 30, 2023. Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $4 thousand for the six months ended June 30, 2022. AFS and HTM securities with amortized costs totaling $1.68 billion at June 30, 2023 and $1.73 billion at December 31, 2022 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at June 30, 2023 and December 31, 2022, AFS and HTM securities with an amortized cost of $142.7 million and $149.5 million, respectively, were pledged as collateral for securities sold under repurchase agreements. The following tables set forth information with regard to gains and (losses) on equity securities:
|  | Three Months Ended June 30, |
(In thousands) |  | 2023 |  |  | 2022 |
Net (losses) recognized on equity securities |  | $ | (191 | ) |  | $ | (587 | )
Less: Net (losses) recognized on equity securities sold during the period |  |  | - |  |  |  | - |
Unrealized (losses) recognized on equity securities still held |  | $ | (191 | ) |  | $ | (587 | )
|  | Six Months Ended June 30, |
(In thousands) |  | 2023 |  |  | 2022 |
Net (losses) recognized on equity securities |  | $ | (189 | ) |  | $ | (770 | )
Less: Net (losses) recognized on equity securities sold during the period |  |  | - |  |  |  | - |
Unrealized (losses) recognized on equity securities still held |  | $ | (189 | ) |  | $ | (770 | )
As of June 30, 2023 and December 31, 2022, the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of June 30, 2023 and 2022. There were no impairments, or downward or upward adjustments recognized for equity securities without readily determinable fair values during the three and six months ended June 30, 2023 and 2022. The following table sets forth information with regard to contractual maturities of debt securities at June 30, 2023:
(In thousands) |  | Amortized Cost |  |  | Estimated Fair Value |
AFS debt securities: |  |  |  |  |  |
Within one year |  | $ | 10,194 |  |  | $ | 10,009 |
From one to five years |  |  | 440,801 |  |  |  | 393,528 |
From five to ten years |  |  | 508,775 |  |  |  | 438,195 |
After ten years |  |  | 712,421 |  |  |  | 612,194 |
Total AFS debt securities |  | $ | 1,672,191 |  |  | $ | 1,453,926 |
HTM debt securities: |  |  |  |  |  |  |  |
Within one year |  | $ | 72,506 |  |  | $ | 72,463 |
From one to five years |  |  | 100,046 |  |  |  | 96,551 |
From five to ten years |  |  | 282,757 |  |  |  | 245,029 |
After ten years |  |  | 457,567 |  |  |  | 394,598 |
Total HTM debt securities |  | $ | 912,876 |  |  | $ | 808,641 |
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 June 30, 2023 and December 31, 2022. 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, 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 June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury |  | $ | 9,763 |  |  | $ | (182 | ) |  |  | 1 |  |  | $ | 112,234 |  |  | $ | (10,840 | ) |  |  | 7 |  |  | $ | 121,997 |  |  | $ | (11,022 | ) |  |  | 8 |
Federal agency |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 208,653 |  |  |  | (39,748 | ) |  |  | 16 |  |  |  | 208,653 |  |  |  | (39,748 | ) |  |  | 16 |
State & municipal |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 83,404 |  |  |  | (12,472 | ) |  |  | 66 |  |  |  | 83,404 |  |  |  | (12,472 | ) |  |  | 66 |
Mortgage-backed |  |  | 20,856 |  |  |  | (1,033 | ) |  |  | 48 |  |  |  | 419,602 |  |  |  | (61,652 | ) |  |  | 136 |  |  |  | 440,458 |  |  |  | (62,685 | ) |  |  | 184 |
Collateralized mortgage obligations |  |  | 46,530 |  |  |  | (1,999 | ) |  |  | 15 |  |  |  | 508,725 |  |  |  | (82,284 | ) |  |  | 107 |  |  |  | 555,255 |  |  |  | (84,283 | ) |  |  | 122 |
Corporate |  |  | 12,844 |  |  |  | (1,579 | ) |  |  | 4 |  |  |  | 27,499 |  |  |  | (6,501 | ) |  |  | 11 |  |  |  | 40,343 |  |  |  | (8,080 | ) |  |  | 15 |
Total securities with unrealized losses |  | $ | 89,993 |  |  | $ | (4,793 | ) |  |  | 68 |  |  | $ | 1,360,117 |  |  | $ | (213,497 | ) |  |  | 343 |  |  | $ | 1,450,110 |  |  | $ | (218,290 | ) |  |  | 411 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 80,380 |  |  | $ | (19,620 | ) |  |  | 4 |  |  | $ | 80,380 |  |  | $ | (19,620 | ) |  |  | 4 |
Mortgage-backed |  |  | 27,586 |  |  |  | (1,519 | ) |  |  | 7 |  |  |  | 192,339 |  |  |  | (34,949 | ) |  |  | 27 |  |  |  | 219,925 |  |  |  | (36,468 | ) |  |  | 34 |
Collateralized mortgage obligation |  |  | 70,172 |  |  |  | (3,894 | ) |  |  | 13 |  |  |  | 156,957 |  |  |  | (22,688 | ) |  |  | 41 |  |  |  | 227,129 |  |  |  | (26,582 | ) |  |  | 54 |
State & municipal |  |  | 61,670 |  |  |  | (1,285 | ) |  |  | 86 |  |  |  | 129,553 |  |  |  | (20,415 | ) |  |  | 134 |  |  |  | 191,223 |  |  |  | (21,700 | ) |  |  | 220 |
Total securities with unrealized losses |  | $ | 159,428 |  |  | $ | (6,698 | ) |  |  | 106 |  |  | $ | 559,229 |  |  | $ | (97,672 | ) |  |  | 206 |  |  | $ | 718,657 |  |  | $ | (104,370 | ) |  |  | 312 |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury |  | $ | 55,616 |  |  | $ | (3,864 | ) |  |  | 5 |  |  | $ | 66,042 |  |  | $ | (7,369 | ) |  |  | 3 |  |  | $ | 121,658 |  |  | $ | (11,233 | ) |  |  | 8 |
Federal agency |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 206,419 |  |  |  | (42,000 | ) |  |  | 16 |  |  |  | 206,419 |  |  |  | (42,000 | ) |  |  | 16 |
State & municipal |  |  | 3,679 |  |  |  | (341 | ) |  |  | 2 |  |  |  | 78,395 |  |  |  | (13,849 | ) |  |  | 64 |  |  |  | 82,074 |  |  |  | (14,190 | ) |  |  | 66 |
Mortgage-backed |  |  | 204,447 |  |  |  | (15,048 | ) |  |  | 149 |  |  |  | 267,926 |  |  |  | (47,303 | ) |  |  | 32 |  |  |  | 472,373 |  |  |  | (62,351 | ) |  |  | 181 |
Collateralized mortgage obligations |  |  | 211,612 |  |  |  | (14,458 | ) |  |  | 77 |  |  |  | 374,376 |  |  |  | (66,299 | ) |  |  | 49 |  |  |  | 585,988 |  |  |  | (80,757 | ) |  |  | 126 |
Corporate |  |  | 34,434 |  |  |  | (2,970 | ) |  |  | 12 |  |  |  | 19,806 |  |  |  | (3,194 | ) |  |  | 6 |  |  |  | 54,240 |  |  |  | (6,164 | ) |  |  | 18 |
Total securities with unrealized losses |  | $ | 509,788 |  |  | $ | (36,681 | ) |  |  | 245 |  |  | $ | 1,012,964 |  |  | $ | (180,014 | ) |  |  | 170 |  |  | $ | 1,522,752 |  |  | $ | (216,695 | ) |  |  | 415 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 79,322 |  |  | $ | (20,678 | ) |  |  | 4 |  |  | $ | 79,322 |  |  | $ | (20,678 | ) |  |  | 4 |
Mortgage-backed |  |  | 91,417 |  |  |  | (9,096 | ) |  |  | 21 |  |  |  | 138,936 |  |  |  | (28,342 | ) |  |  | 13 |  |  |  | 230,353 |  |  |  | (37,438 | ) |  |  | 34 |
Collateralized mortgage obligations |  |  | 191,644 |  |  |  | (13,863 | ) |  |  | 47 |  |  |  | 48,289 |  |  |  | (10,855 | ) |  |  | 8 |  |  |  | 239,933 |  |  |  | (24,718 | ) |  |  | 55 |
State & municipal |  |  | 110,727 |  |  |  | (4,930 | ) |  |  | 149 |  |  |  | 82,949 |  |  |  | (19,315 | ) |  |  | 76 |  |  |  | 193,676 |  |  |  | (24,245 | ) |  |  | 225 |
Total securities with unrealized losses |  | $ | 393,788 |  |  | $ | (27,889 | ) |  |  | 217 |  |  | $ | 349,496 |  |  | $ | (79,190 | ) |  |  | 101 |  |  | $ | 743,284 |  |  | $ | (107,079 | ) |  |  | 318 |
The Company does not believe the AFS securities that were in an unrealized loss position as of June 30, 2023 and December 31, 2022, which consisted of 411 and 415 individual securities, respectively, 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 June 30, 2023 and December 31, 2022, the majority 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. AIR on AFS debt securities totaled $4.0 million at June 30, 2023 and $4.2 million at December 31, 2022 and is excluded from the estimate of credit losses and reported in the other assets financial statement line. None of the Bank’s HTM debt securities were past due or on nonaccrual status as of June 30, 2023 and December 31, 2022. There was no accrued interest reversed against interest income for the three and six months ended June 30, 2023 or the year ended December 31, 2022 as all securities remained on accrual status. In addition, there were no collateral-dependent HTM debt securities as of June 30, 2023 and December 31, 2022. As of June 30, 2023 and December 31, 2022, 68% and 70%, respectively, of the Company’s HTM debt securities were 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, which are widely recognized as “risk-free,” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of June 30, 2023 and December 31, 2022. The remaining HTM debt securities at June 30, 2023 and December 31, 2022 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the Current Expected Credit Losses (“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 June 30, 2023 and December 31, 2022. AIR on HTM debt securities totaled $3.8 million at June 30, 2023 and December 31, 2022 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

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://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration