XML 27 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Securities | 12 Months Ended
--- | ---
Dec. 31, 2021
Securities |
Securities | Note 4: Securities ​ The following table summarizes the amortized cost and fair value of the securities portfolio at December 31, and the corresponding amounts of gross unrealized gains and losses were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
December 31, 2021 |  | Cost1 |  | Gains |  | Losses | ​ | Value
Securities available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasury | ​ | $ | 202,251 | ​ | $ | 125 | ​ | $ | (37) | ​ | $ | 202,339
U.S. government agencies | ​ | ​ | 62,587 | ​ | ​ | - | ​ | ​ | (699) | ​ | ​ | 61,888
U.S. government agencies mortgage-backed | ​ | ​ | 172,016 | ​ | ​ | 856 | ​ | ​ | (570) | ​ | ​ | 172,302
States and political subdivisions | ​ | ​ | 240,793 | ​ | ​ | 16,344 | ​ | ​ | (672) | ​ | ​ | 256,465
Corporate bonds | ​ | ​ | 10,000 | ​ | ​ | - | ​ | ​ | (113) | ​ | ​ | 9,887
Collateralized mortgage obligations | ​ | ​ | 673,238 | ​ | ​ | 2,014 | ​ | ​ | (2,285) | ​ | ​ | 672,967
Asset-backed securities | ​ | ​ | 236,293 | ​ | ​ | 1,245 | ​ | ​ | (661) | ​ | ​ | 236,877
Collateralized loan obligations | ​ | ​ | 79,838 | ​ | ​ | 3 | ​ | ​ | (78) | ​ | ​ | 79,763
Total securities available-for-sale | ​ | $ | 1,677,016 | ​ | $ | 20,587 | ​ | $ | (5,115) | ​ | $ | 1,692,488
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
December 31, 2020 |  | Cost1 |  | Gains |  | Losses | ​ | Value
Securities available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasury | ​ | $ | 4,014 | ​ | $ | 103 | ​ | $ | - | ​ | $ | 4,117
U.S. government agencies | ​ | ​ | 6,811 | ​ | ​ | - | ​ | ​ | (154) | ​ | ​ | 6,657
U.S. government agencies mortgage-backed | ​ | ​ | 16,098 | ​ | ​ | 1,112 | ​ | ​ | (1) | ​ | ​ | 17,209
States and political subdivisions | ​ | ​ | 229,352 | ​ | ​ | 21,269 | ​ | ​ | (1,362) | ​ | ​ | 249,259
Collateralized mortgage obligations | ​ | ​ | 53,999 | ​ | ​ | 2,866 | ​ | ​ | (280) | ​ | ​ | 56,585
Asset-backed securities | ​ | ​ | 130,959 | ​ | ​ | 1,370 | ​ | ​ | (511) | ​ | ​ | 131,818
Collateralized loan obligations | ​ | ​ | 30,728 | ​ | ​ | 15 | ​ | ​ | (210) | ​ | ​ | 30,533
Total securities available-for-sale | ​ | $ | 471,961 | ​ | $ | 26,735 | ​ | $ | (2,518) | ​ | $ | 496,178
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
1 Excludes interest receivable of $4.3 million and $2.7 million at December 31, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet. ​ FHLBC stock was $7.1 million and $3.7 million at December 31, 2021 and December 31, 2020 respectively. FRBC stock was $6.2 million at December 31, 2021 and December 31, 2020. Our FHLBC stock is necessary to maintain access to FHLBC advances. ​ Securities valued at $501.3 million as of December 31, 2021, were pledged to secure deposits and borrowings, and for other purposes, an increase from $335.8 million at year-end 2020, primarily due to the West Suburban acquisition in 2021. ​ The fair value, amortized cost and weighted average yield of debt securities at December 31, 2021, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date are shown separately. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​
​ | ​ | Amortized | ​ | Average | ​ | ​ | Fair | ​
Securities available-for-sale |  | Cost |  | Yield | ​ |  | Value |
Due in one year or less | ​ | $ | 8,671 | ​ | 1.24 | % | ​ | $ | 8,707 | ​
Due after one year through five years | ​ | ​ | 274,984 | ​ | 0.89 | ​ | ​ | ​ | 274,537 | ​
Due after five years through ten years | ​ | ​ | 43,770 | ​ | 2.43 | ​ | ​ | ​ | 45,470 | ​
Due after ten years | ​ | ​ | 188,206 | ​ | 2.98 | ​ | ​ | ​ | 201,865 | ​
​ | ​ | ​ | 515,631 | ​ | 1.79 | ​ | ​ | ​ | 530,579 | ​
Mortgage-backed and collateralized mortgage obligations | ​ | ​ | 845,254 | ​ | 1.19 | ​ | ​ | ​ | 845,269 | ​
Asset-backed securities | ​ | ​ | 236,293 | ​ | 1.12 | ​ | ​ | ​ | 236,877 | ​
Collateralized loan obligations | ​ | ​ | 79,838 | ​ | 1.60 | ​ | ​ | ​ | 79,763 | ​
Total securities available-for-sale | ​ | $ | 1,677,016 | ​ | 1.38 | % | ​ | $ | 1,692,488 | ​
​ At December 31, 2021, the Company’s investments include asset-backed securities totaling $194.4 million that are backed by student loans originated under the Federal Family Education Loan program (“FFEL”). Under the FFEL, private lenders made federally guaranteed student loans to parents and students. While the program was modified several times before elimination in 2010, FFEL securities are generally guaranteed by the U.S. Department of Education (“DOE”) at not less than 97% of the principal amount of the loans. The guarantee will reduce to 85% if the DOE receives reimbursement requests in excess of 5% of insured loans; reimbursement will drop to 75% if reimbursement requests exceed 9% of insured loans. As of December 31, 2021, the likelihood of the decrease in the government guarantee was minimal as the average rate of reimbursement for 2021 was less than 1.0%. ​ As of December 31, 2021, the Company has no securities issued from one originator, other than the U.S. Government and its agencies, that individually amounted to over 10% of the Company’s stockholders equity. ​ Securities with unrealized losses with no corresponding allowance for credit losses at December 31, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less than 12 months | ​ | 12 months or more | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2021 | ​ | in an unrealized loss position | ​ | in an unrealized loss position | ​ | Total
​ | ​ | Number of | ​ | Unrealized | ​ | Fair | ​ | Number of | ​ | Unrealized | ​ | Fair | ​ | Number of | ​ | Unrealized | ​ | Fair
Securities available-for-sale |  | Securities |  | Losses |  | Value |  | Securities |  | Losses |  | Value |  | Securities |  | Losses |  | Value
U.S. Treasuries | ​ | 1 | ​ | $ | 37 | ​ | $ | 49,719 | ​ | - | ​ | $ | - | ​ | $ | - | ​ | 1 | ​ | $ | 37 | ​ | $ | 49,719
U.S. government agencies | ​ | 5 | ​ | $ | 592 | ​ | $ | 56,879 | ​ | 4 | ​ | $ | 107 | ​ | $ | 5,008 | ​ | 9 | ​ | $ | 699 | ​ | $ | 61,887
U.S. government agencies mortgage-backed | ​ | 63 | ​ | ​ | 505 | ​ | ​ | 78,711 | ​ | 1 | ​ | ​ | 65 | ​ | ​ | 1,663 | ​ | 64 | ​ | ​ | 570 | ​ | ​ | 80,374
States and political subdivisions | ​ | 7 | ​ | ​ | 55 | ​ | ​ | 8,430 | ​ | 1 | ​ | ​ | 617 | ​ | ​ | 4,051 | ​ | 8 | ​ | ​ | 672 | ​ | ​ | 12,481
Corporate bonds | ​ | 2 | ​ | ​ | 113 | ​ | ​ | 9,887 | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | 2 | ​ | ​ | 113 | ​ | ​ | 9,887
Collateralized mortgage obligations | ​ | 133 | ​ | ​ | 2,285 | ​ | ​ | 381,658 | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | 133 | ​ | ​ | 2,285 | ​ | ​ | 381,658
Asset-backed securities | ​ | 20 | ​ | ​ | 608 | ​ | ​ | 103,819 | ​ | 3 | ​ | ​ | 53 | ​ | ​ | 3,276 | ​ | 23 | ​ | ​ | 661 | ​ | ​ | 107,095
Collateralized loan obligations | ​ | 10 | ​ | ​ | 35 | ​ | ​ | 45,132 | ​ | 2 | ​ | ​ | 43 | ​ | ​ | 10,628 | ​ | 12 | ​ | ​ | 78 | ​ | ​ | 55,760
Total securities available-for-sale | ​ | 241 | ​ | $ | 4,230 | ​ | $ | 734,235 | ​ | 11 | ​ | $ | 885 | ​ | $ | 24,626 | ​ | 252 | ​ | $ | 5,115 | ​ | $ | 758,861
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less than 12 months | ​ | 12 months or more | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2020 | ​ | in an unrealized loss position | ​ | in an unrealized loss position | ​ | Total
​ | ​ | Number of | ​ | Unrealized | ​ | ​ | Fair | ​ | Number of | ​ | Unrealized | ​ | ​ | Fair | ​ | Number of | ​ | Unrealized | ​ | ​ | Fair
Securities available-for-sale |  | Securities |  | Losses |  | ​ | Value |  | Securities |  | Losses |  | ​ | Value |  | Securities |  | Losses |  | ​ | Value
U.S. government agencies | ​ | - | ​ | $ | - | ​ | $ | - | ​ | 4 | ​ | $ | 154 | ​ | $ | 6,657 | ​ | 4 | ​ | $ | 154 | ​ | $ | 6,657
U.S. government agencies mortgage-backed | ​ | 1 | ​ | ​ | 1 | ​ | ​ | 141 | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | 1 | ​ | ​ | 1 | ​ | ​ | 141
States and political subdivisions | ​ | - | ​ | ​ | - | ​ | ​ | - | ​ | 1 | ​ | ​ | 1,362 | ​ | ​ | 3,433 | ​ | 1 | ​ | ​ | 1,362 | ​ | ​ | 3,433
Collateralized mortgage obligations | ​ | 4 | ​ | ​ | 279 | ​ | ​ | 8,142 | ​ | 1 | ​ | ​ | 1 | ​ | ​ | 146 | ​ | 5 | ​ | ​ | 280 | ​ | ​ | 8,288
Asset-backed securities | ​ | 1 | ​ | ​ | 2 | ​ | ​ | 251 | ​ | 3 | ​ | ​ | 509 | ​ | ​ | 49,572 | ​ | 4 | ​ | ​ | 511 | ​ | ​ | 49,823
Collateralized loan obligations | ​ | 1 | ​ | ​ | 31 | ​ | ​ | 7,468 | ​ | 4 | ​ | ​ | 179 | ​ | ​ | 21,477 | ​ | 5 | ​ | ​ | 210 | ​ | ​ | 28,945
Total securities available-for-sale | ​ | 7 | ​ | $ | 313 | ​ | $ | 16,002 | ​ | 13 | ​ | $ | 2,205 | ​ | $ | 81,285 | ​ | 20 | ​ | $ | 2,518 | ​ | $ | 97,287
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The unrealized loss attributable to our collateralized loan obligations are the result of spread widening in that sector due to the current economic environment, specifically rising interest rates. The unrealized loss attributable to our U.S. government agencies is associated with our SBA positions. Shortly after purchase a structural change in the SBA program occurred that led to higher prepayments which negatively affected these positions. The unrealized loss attributable to states and political subdivisions, collateralized mortgage obligations, and asset-backed securities are due to limited liquidity as a result of a few securities with uncommon structures and lesser known issuers. The asset-backed securities are primarily backed by student loans under the FFEL program, these securities are 97% guaranteed by U.S. DOE and have a long history of no credit losses. At December 31, 2021, we have no intent to sell any securities that were in an unrealized loss position nor is it expected that we would be required to sell the securities prior to their anticipated recovery. ​ The following table presents net realized gains (losses) on securities available-for-sale for the years ended: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended | ​
​ | ​ | December 31, | ​
Securities available-for-sale |  | 2021 |  | 2020 |  | 2019 | ​
Proceeds from sales of securities | ​ | $ | 605,846 | ​ | $ | 18,006 | ​ | $ | 191,298 | ​
Gross realized gains on securities | ​ |  | 270 | ​ |  | 17 | ​ |  | 5,521 | ​
Gross realized losses on securities | ​ |  | (38) | ​ |  | (42) | ​ |  | (1,010) | ​
Net realized gains (losses) | ​ | $ | 232 | ​ | $ | (25) | ​ | $ | 4,511 | ​
Income tax (expense) benefit on net realized gains (losses) | ​ | $ | (65) | ​ | $ | 7 | ​ | $ | (1,267) | ​
Effective tax rate applied | ​ | ​ | 28.0 | % | ​ | 28.0 | % | ​ | 28.1 | %
​

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 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration