XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.23.3

Note 2 - INVESTMENT SECURITIES | 9 Months Ended
--- | ---
Sep. 30, 2023
Notes to Financial Statements |
INVESTMENT SECURITIES | NOTE 2– INVESTMENT SECURITIES The amortized cost and fair value of investment securities as of September 30, 2023 and December 31, 2022 are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Allowance |  | Gross | ​ | Gross | ​ | ​ | ​ | ​
​ | ​ | Amortized | ​ | for Credit |  | Unrealized | ​ | Unrealized | ​ | Fair | ​
​ |  | Cost |  | (Losses) |  | Gains |  | (Losses) |  | Value |
​ | ​ | (dollars in thousands) | ​
September 30, 2023: |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |
Securities HTM: |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |
Municipal securities | ​ | $ | 614,245 | ​ | $ | (180) | ​ | $ | 2,448 | ​ | $ | (92,718) | ​ | $ | 523,795 | ​
Other securities | ​ |  | 1,050 | ​ |  | — | ​ |  | — | ​ |  | (26) | ​ |  | 1,024 | ​
​ | ​ | $ | 615,295 | ​ | $ | (180) | ​ | $ | 2,448 | ​ | $ | (92,744) | ​ | $ | 524,819 | ​
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Securities AFS: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
U.S. treasuries and govt. sponsored agency securities | ​ | $ | 19,130 | ​ | $ | — | ​ | $ | 13 | ​ | $ | (3,141) | ​ | $ | 16,002 | ​
Residential mortgage-backed and related securities | ​ |  | 66,433 | ​ |  | — | ​ |  | — | ​ |  | (8,487) | ​ |  | 57,946 | ​
Municipal securities | ​ |  | 207,318 | ​ |  | — | ​ |  | — | ​ |  | (57,546) | ​ |  | 149,772 | ​
Asset-backed securities | ​ | ​ | 16,226 | ​ | ​ | — | ​ | ​ | 144 | ​ | ​ | (44) | ​ | ​ | 16,326 | ​
Other securities | ​ |  | 46,531 | ​ |  | (989) | ​ |  | 2 | ​ |  | (4,311) | ​ |  | 41,233 | ​
​ | ​ | $ | 355,638 | ​ | $ | (989) | ​ | $ | 159 | ​ | $ | (73,529) | ​ | $ | 281,279 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Allowance | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | for Credit | ​ | Unrealized | ​ | Unrealized | ​ | Fair | ​
​ |  | Cost | ​ | (Losses) | ​ | Gains |  | (Losses) | ​ | Value | ​
​ | ​ | (dollars in thousands) | ​
December 31, 2022: |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  | ​ | ​ | ​ |
Securities HTM: |  | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  | ​ | ​ | ​ |
Municipal securities | ​ | $ | 586,272 | ​ | $ | (180) | ​ | $ | 5,292 | ​ | $ | (56,798) | ​ | $ | 534,586 | ​
Other securities | ​ |  | 1,050 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 1,050 | ​
​ | ​ | $ | 587,322 | ​ | $ | (180) | ​ | $ | 5,292 | ​ | $ | (56,798) | ​ | $ | 535,636 | ​
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
Securities AFS: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​
U.S. govt. sponsored agency securities | ​ | $ | 19,745 | ​ | $ | — | ​ | $ | 19 | ​ | $ | (2,783) | ​ | $ | 16,981 | ​
Residential mortgage-backed and related securities | ​ |  | 73,438 | ​ |  | — | ​ |  | — | ​ |  | (7,223) | ​ |  | 66,215 | ​
Municipal securities | ​ |  | 239,812 | ​ |  | — | ​ |  | 66 | ​ |  | (46,700) | ​ |  | 193,178 | ​
Asset-backed securities | ​ | ​ | 18,885 | ​ | ​ | — | ​ | ​ | 48 | ​ | ​ | (205) | ​ | ​ | 18,728 | ​
Other securities | ​ |  | 48,631 | ​ |  | — | ​ |  | 27 | ​ |  | (2,800) | ​ |  | 45,858 | ​
​ | ​ | $ | 400,511 | ​ | $ | — | ​ | $ | 160 | ​ | $ | (59,711) | ​ | $ | 340,960 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring. ​ The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities. ​ ​ ​ Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2023 and December 31, 2022, are summarized in the tables below. Securities available-for-sale, for which an allowance for credit losses has been provided, are not included in these disclosures. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less than 12 Months | ​ | 12 Months or More | ​ | Total
​ | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross
​ | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
​ |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
​ | ​ | (dollars in thousands)
September 30, 2023: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Securities HTM: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Municipal securities | ​ | $ | 235,313 | ​ | $ | (20,751) | ​ | $ | 237,690 | ​ | $ | (71,967) | ​ | $ | 473,003 | ​ | $ | (92,718)
Other securities | ​ | ​ | 523 | ​ | ​ | (26) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 523 | ​ | ​ | (26)
​ | ​ | $ | 235,836 | ​ | $ | (20,777) | ​ | $ | 237,690 | ​ | $ | (71,967) | ​ | $ | 473,526 | ​ | $ | (92,744)
​ | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Securities AFS: | ​ |  |  | ​ |  | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S. treasuries and govt. sponsored agency securities | ​ | $ | 1,649 | ​ | $ | (1) | ​ | $ | 13,377 | ​ | $ | (3,140) | ​ | $ | 15,026 | ​ | $ | (3,141)
Residential mortgage-backed and related securities | ​ |  | 77 | ​ |  | (1) | ​ |  | 57,869 | ​ |  | (8,486) | ​ |  | 57,946 | ​ |  | (8,487)
Municipal securities | ​ |  | 1,067 | ​ |  | (38) | ​ |  | 148,159 | ​ |  | (57,508) | ​ |  | 149,226 | ​ |  | (57,546)
Asset-backed securities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 10,521 | ​ | ​ | (44) | ​ | ​ | 10,521 | ​ | ​ | (44)
Other securities | ​ |  | 3,823 | ​ |  | (427) | ​ |  | 34,190 | ​ |  | (3,884) | ​ |  | 38,013 | ​ |  | (4,311)
​ | ​ | $ | 6,616 | ​ | $ | (467) | ​ | $ | 264,116 | ​ | $ | (73,062) | ​ | $ | 270,732 | ​ | $ | (73,529)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less than 12 Months | ​ | 12 Months or More | ​ | Total
​ | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross | ​ | ​ | ​ | Gross
​ | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
​ |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
​ | ​ | (dollars in thousands)
December 31, 2022: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Securities HTM: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Municipal securities | ​ | $ | 347,651 | ​ | $ | (56,798) | ​ | $ | — | ​ | $ | — | ​ | $ | 347,651 | ​ | $ | (56,798)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Securities AFS: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S. treasuries and govt. sponsored agency securities | ​ | $ | 5,138 | ​ | $ | (326) | ​ | $ | 10,591 | ​ | $ | (2,457) | ​ | $ | 15,729 | ​ | $ | (2,783)
Residential mortgage-backed and related securities | ​ |  | 48,469 | ​ |  | (3,327) | ​ |  | 17,690 | ​ |  | (3,896) | ​ |  | 66,159 | ​ |  | (7,223)
Municipal securities | ​ |  | 178,172 | ​ |  | (42,661) | ​ |  | 9,809 | ​ |  | (4,039) | ​ |  | 187,981 | ​ |  | (46,700)
Asset-backed securities | ​ | ​ | 13,684 | ​ | ​ | (205) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 13,684 | ​ | ​ | (205)
Other securities | ​ | ​ | 35,206 | ​ | ​ | (2,404) | ​ | ​ | 4,122 | ​ | ​ | (396) | ​ | ​ | 39,328 | ​ | ​ | (2,800)
​ | ​ | $ | 280,669 | ​ | $ | (48,923) | ​ | $ | 42,212 | ​ | $ | (10,788) | ​ | $ | 322,881 | ​ | $ | (59,711)
​ At September 30, 2023, the investment portfolio included 644 securities. Of this number, 621 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 17.1% of the total amortized cost of the portfolio. Of these 621 securities, there were 480 securities that had an unrealized loss for twelve months or more due to the current rate environment. ​ For the quarter ended March 31, 2023, the Company’s impairment evaluation determined that one publicly traded debt security experienced a decline in fair value due to credit quality, rather than market factors. As a result, the Company recognized a credit loss expense of $989 thousand in the first quarter and established an ACL on the related AFS security. For the quarters ended June 30, 2023 and September 30, 2023, there has been no change to the ACL on the related AFS security. ​ The following table presents the activity in the allowance for credit losses for held to maturity and available for sale securities by major security type for the three and nine months ended September 30, 2023 and 2022. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | ​
​ | ​ | September 30, 2023 | ​ | September 30, 2022 | ​ | September 30, 2023 | ​ | September 30, 2022 | ​ | ​
​ | ​ | Securities HTM | ​ | Securities AFS | ​ | Securities HTM | ​ | Securities HTM | ​ | ​ | Securities AFS | ​ | Securities HTM | ​ | ​
​ | ​ | Municipal | ​ | Corporate | ​ | Municipal | ​ | Municipal | ​ | ​ | Corporate | ​ | Municipal | ​ | ​
​ |  | securities |  | securities | ​ | securities | ​ | securities | ​ | ​ | securities | ​ | securities | ​ | ​
​ |  | (dollars in thousands)
Allowance for credit losses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Beginning balance | ​ | $ | 180 | ​ | $ | 989 | ​ | $ | 198 | ​ | $ | 180 | ​ | $ | — | ​ | $ | 198 | ​ | ​
Provision for credit loss expense | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 989 | ​ | ​ | — | ​ | ​
Balance, ending | ​ | $ | 180 | ​ | $ | 989 | ​ | $ | 198 | ​ | $ | 180 | ​ | $ | 989 | ​ | $ | 198 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ There were no sales of securities for the three months ended September 30, 2023 and 2022. All sales of securities for the nine months ended September 30, 2023 and 2022 were securities identified as AFS. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Nine Months Ended |
​ | ​ | ​ | ​ | ​ | September 30, 2023 | ​ | September 30, 2022 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Proceeds from sales of securities | ​ | ​ | ​ | ​ | $ | 30,568 | ​ | $ | 111,375 | ​
Gross gains from sales of securities | ​ | ​ | ​ | ​ |  | 56 | ​ |  | — | ​
Gross losses from sales of securities | ​ | ​ | ​ | ​ |  | (507) | ​ |  | — | ​
​ The amortized cost and fair value of securities as of September 30, 2023 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the residential mortgages underlying the securities may be prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Amortized Cost |  | Fair Value
​ | ​ | (dollars in thousands)
Securities HTM: |  | ​ |  |  | ​ |
Due in one year or less | ​ | $ | 1,907 | ​ | $ | 1,882
Due after one year through five years | ​ |  | 27,159 | ​ |  | 27,700
Due after five years | ​ |  | 586,229 | ​ |  | 495,237
​ | ​ | $ | 615,295 | ​ | $ | 524,819
Securities AFS: | ​ |  |  | ​ |  |
Due in one year or less | ​ | $ | 3,160 | ​ | $ | 3,146
Due after one year through five years | ​ |  | 14,338 | ​ |  | 12,239
Due after five years | ​ |  | 255,481 | ​ |  | 191,622
​ | ​ | ​ | 272,979 | ​ | ​ | 207,007
Residential mortgage-backed and related securities | ​ | ​ | 66,433 | ​ | ​ | 57,946
Asset-backed securities | ​ |  | 16,226 | ​ |  | 16,326
​ | ​ | $ | 355,638 | ​ | $ | 281,279
​ | ​ | ​ | ​ | ​ | ​ | ​
​ Portions of the U.S. government sponsored agency securities and municipal securities as of September 30, 2023, contain call options, which, at the discretion of the issuer, terminate the security at par and at predetermined dates prior to the stated maturity, summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Amortized Cost |  | Fair Value
​ | ​ | (dollars in thousands)
Securities HTM: |  | ​ |  |  | ​ |
Municipal securities | ​ | $ | 230,493 | ​ | $ | 194,222
​ | ​ |  |  | ​ |  |
Securities AFS: | ​ |  |  | ​ |  |
Municipal securities | ​ | ​ | 205,747 | ​ | ​ | 148,235
Other securities | ​ |  | 45,577 | ​ |  | 40,277
​ | ​ | $ | 251,324 | ​ | $ | 188,512
​ As of September 30, 2023, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 81 issuers with fair values totaling $80.4 million and revenue bonds, issued by 166 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $593.2 million. The Company also held investments in general obligation bonds in 18 states, including seven states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 30 states, including 14 states in which the aggregate fair value exceeded $5.0 million. As of December 31, 2022, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 118 issuers with fair values totaling $110.6 million and revenue bonds, issued by 181 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $617.2 million. The Company also held investments in general obligation bonds in 22 states, including seven states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 29 states, including 12 states in which the aggregate fair value exceeded $5.0 million. Both general obligation and revenue bonds are diversified across many issuers. As of September 30, 2023 and as of December 31, 2022, the Company held revenue bonds of two issuers, both located in Ohio, of which the aggregate book or market value exceeded 5% of the Company’s stockholders’ equity. The issuers’ financial conditions are strong and the sources of repayment are diversified. The Company monitors the investments and concentration closely. Of the general obligation and revenue bonds in the Company's portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to the Company’s loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities. The Company's municipal securities are owned by the four charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of September 30, 2023, all were within policy limitations approved by the Company’s board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital. As of September 30, 2023, the Company's standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards.

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

X
- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480524/946-210-50-12 + Details
Name: | us-gaap_InvestmentHoldingsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration