XML 41 R28.htm IDEA: XBRL DOCUMENT v3.23.2

Securities (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Gross Realized and Unrealized Losses Recognized on Equity Securities

The gross realized and unrealized gains and losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in thousands)						2023						2022						2023						2022
Unrealized gains (losses) on equity securities held at the reporting date						$	(72)					$	(35)					$	—					$	(454)
Realized gains (losses) on equity securities sold during the period						—						—						18						—
						$	(72)					$	(35)					$	18					$	(454)

The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in thousands)			2023						2022						2023						2022
Unrealized gains (losses) on equity securities still held at the reporting date			$	—					$	10,163					$	—					$	10,163
Realized gains (losses) on equity securities sold during the period			—						—						—						—
			$	—					$	10,163					$	—					$	10,163

Equity Securities without Readily Determinable Fair Value

The following table summarizes the Company's investments in equity securities without readily determinable fair values:

(Dollars in thousands)			June 30, 2023						December 31, 2022
Equity Securities without readily determinable fair value, at cost			$	64,282					$	39,019
Upward adjustments based on observable price changes, cumulative			10,163						10,163
Equity Securities without readily determinable fair value, carrying value			$	74,445					$	49,182

Schedule of Amortized Cost of Securities and Their Estimated Fair Values

The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities:

(Dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
June 30, 2023
Available for sale securities:
Mortgage-backed securities, residential						$	51,069					$	—					$	(5,240)					$	—					$	45,829
Asset-backed securities						1,286						—						(34)						—						1,252
State and municipal						5,283						—						(88)						—						5,195
CLO securities						250,260						481						(1,662)						—						249,079
Corporate bonds						769						—						(9)						—						760
SBA pooled securities						1,773						5						(114)						—						1,664
Total available for sale securities						$	310,440					$	486					$	(7,147)					$	—					$	303,779

(Dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrecognized Losses						Fair Value
June 30, 2023
Held to maturity securities:
CLO securities						$	6,256					$	284					$	(1,790)					$	4,750
Allowance for credit losses						(2,876)
Total held to maturity securities, net of ACL						$	3,380

(Dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
December 31, 2022
Available for sale securities:
Mortgage-backed securities, residential						$	55,329					$	235					$	(4,931)					$	—					$	50,633
Asset-backed securities						6,389						—						(58)						—						6,331
State and municipal						13,553						1						(116)						—						13,438
CLO Securities						185,068						161						(4,218)						—						181,011
Corporate bonds						1,270						1						(8)						—						1,263
SBA pooled securities						1,910						29						(111)						—						1,828
Total available for sale securities						$	263,519					$	427					$	(9,442)					$	—					$	254,504

(Dollars in thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrecognized Losses						Fair Value
December 31, 2022
Held to maturity securities:
CLO securities						$	6,521					$	458					$	(1,503)					$	5,476
Allowance for credit losses						(2,444)
Total held to maturity securities, net of ACL						$	4,077

Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

The amortized cost and estimated fair value of securities at June 30, 2023, by contractual maturity, are shown below. 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.

						Available for Sale Securities												Held to Maturity Securities
(Dollars in thousands)						Amortized Cost						Fair Value						Amortized Cost						Fair Value
Due in one year or less						$	1,224					$	1,220					$	—					$	—
Due from one year to five years						2,213						2,175						1,913						2,106
Due from five years to ten years						73,022						72,397						4,343						2,644
Due after ten years						179,853						179,242						—						—
						256,312						255,034						6,256						4,750
Mortgage-backed securities, residential						51,069						45,829						—						—
Asset-backed securities						1,286						1,252						—						—
SBA pooled securities						1,773						1,664						—						—
						$	310,440					$	303,779					$	6,256					$	4,750

Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses as well as Net Gains and Losses from Calls of Debt Securities

Proceeds from sales of debt securities and the associated gross gains and losses as well as net gains and losses from calls of debt securities are as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
(Dollars in thousands)						2023						2022						2023						2022
Proceeds						$	4,000					$	40,163					$	4,000					$	40,163
Gross gains						—						2,512						—						2,512
Gross losses						—						—						—						—
Net gains and losses from calls of securities						—						2						—						2

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position:

						Less than 12 Months												12 Months or More												Total
(Dollars in thousands)						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
June 30, 2023
Available for sale securities:
Mortgage-backed securities, residential						$	18,822					$	(574)					$	26,886					$	(4,666)					$	45,708					$	(5,240)
Asset-backed securities						—						—						1,252						(34)						1,252						(34)
State and municipal						4,134						(57)						471						(31)						4,605						(88)
CLO securities						23,028						(49)						107,197						(1,613)						130,225						(1,662)
Corporate bonds						759						(9)						—						—						759						(9)
SBA pooled securities						223						(3)						1,133						(111)						1,356						(114)
						$	46,966					$	(692)					$	136,939					$	(6,455)					$	183,905					$	(7,147)

						Less than 12 Months												12 Months or More												Total
(Dollars in thousands)						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
December 31, 2022
Available for sale securities:
Mortgage-backed securities, residential						$	26,030					$	(1,507)					$	15,828					$	(3,424)					$	41,858					$	(4,931)
Asset-backed securities						1,337						(52)						4,994						(6)						6,331						(58)
State and municipal						12,680						(116)						—						—						12,680						(116)
CLO Securities						151,572						(3,407)						19,439						(811)						171,011						(4,218)
Corporate bonds						261						(8)						—						—						261						(8)
SBA pooled securities						1,262						(111)						—						—						1,262						(111)
						$	193,142					$	(5,201)					$	40,261					$	(4,241)					$	233,403					$	(9,442)

Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities

The following table presents the activity in the allowance for credit losses for held to maturity debt securities:

(Dollars in thousands)						Three Months Ended June 30,												Six Months Ended June 30,
Held to Maturity CLO Securities						2023						2022						2023						2022
Allowance for credit losses:
Beginning balance						$	2,585					$	2,455					$	2,444					$	2,082
Credit loss expense						291						(100)						432						273
Allowance for credit losses ending balance						$	2,876					$	2,355					$	2,876					$	2,355

X

- Definition

Tabular disclosure of fair value of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale), in unrealized loss position, without allowance for credit loss. Includes beneficial interest in securitized financial asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479081/326-30-55-8

Reference 2: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-6

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479106/326-30-50-4

+ Details

Name:	us-gaap_DebtSecuritiesAvailableForSaleUnrealizedLossPositionFairValueTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of allowance for credit loss on investment in debt security measured at amortized cost (held-to-maturity).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-13

+ Details

Name:	us-gaap_DebtSecuritiesHeldToMaturityAllowanceForCreditLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of investment in equity security without readily determinable fair value.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 321
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479536/321-10-50-3

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 321
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479536/321-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 321
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479536/321-10-50-3

+ Details

Name:	us-gaap_EquitySecuritiesWithoutReadilyDeterminableFairValueTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of realized and unrealized gain (loss) on investment in security.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(7)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(9)(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

+ Details

Name:	us-gaap_GainLossOnInvestmentsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

+ References

No definition available.

+ Details

Name:	us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

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

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References

No definition available.

+ Details

Name:	us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the proceeds from sales of available-for-sale securities and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

+ Details

Name:	us-gaap_ScheduleOfRealizedGainLossTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration