XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

SECURITIES | 6 Months Ended
--- | ---
Jun. 30, 2021
SECURITIES |
SECURITIES | NOTE 3 – SECURITIES The carrying balances of the securities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ | ​ | 2021 |  | 2020
​ | ​ | (dollars in thousands)
Debt securities available-for-sale | ​ | $ | 836,267 | ​ | $ | 922,869
Debt securities held-to-maturity | ​ | ​ | 309,132 | ​ | ​ | 68,395
Equity securities with readily determinable fair value | ​ | ​ | 3,338 | ​ | ​ | 3,292
Equity securities with no readily determinable fair value | ​ | ​ | 1,552 | ​ | ​ | 1,552
Total securities | ​ | $ | 1,150,289 | ​ | $ | 996,108
​ There were no sales of securities during the three and six months ended June 30, 2021 and 2020. Gains (losses) on securities were as follows during the three and six months ended June 30: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30,
​ |  | 2021 |  | 2020 | ​ | 2021 |  | 2020
​ | ​ | (dollars in thousands)
Net realized gains (losses) on sales | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Net unrealized gains (losses) on equity securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Readily determinable fair value | ​ | ​ | 6 | ​ | ​ | 57 | ​ | ​ | 46 | ​ | ​ | 5
No readily determinable fair value | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Gains (losses) on securities | ​ | $ | 6 | ​ | $ | 57 | ​ | $ | 46 | ​ | $ | 5
​ ​ On June 30, 2021 and March 31, 2021, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market value volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2021 | ​ | March 31, 2021
​ | ​ | Amortized | ​ | ​ | ​ | Amortized | ​ | ​
​ | ​ | Cost | ​ | Fair Value | ​ | Cost |  | Fair Value
​ | ​ | (dollars in thousands)
U.S. government agency | ​ | $ | — | ​ | $ | — | ​ | $ | 7,593 | ​ | $ | 7,323
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 8,776 | ​ | ​ | 8,536
Agency commercial | ​ | ​ | 99,271 | ​ | ​ | 99,275 | ​ | ​ | 118,792 | ​ | ​ | 113,861
Total | ​ | $ | 99,271 | ​ | $ | 99,275 | ​ | $ | 135,161 | ​ | $ | 129,720
​ The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income, but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security. ​ Debt Securities The amortized cost and fair values of debt securities, with gross unrealized gains and losses, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
June 30, 2021 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. Treasury | ​ | $ | 59,941 | ​ | $ | 652 | ​ | $ | — | ​ | $ | 60,593
U.S. government agency | ​ | ​ | 129,100 | ​ | ​ | 2,311 | ​ | ​ | (1,539) | ​ | ​ | 129,872
Municipal | ​ | ​ | 286,070 | ​ | ​ | 7,271 | ​ | ​ | (2,090) | ​ | ​ | 291,251
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 143,657 | ​ | ​ | 3,626 | ​ | ​ | (136) | ​ | ​ | 147,147
Agency commercial | ​ | ​ | 131,172 | ​ | ​ | 2,755 | ​ | ​ | (487) | ​ | ​ | 133,440
Corporate | ​ | ​ | 71,995 | ​ | ​ | 2,235 | ​ | ​ | (266) | ​ | ​ | 73,964
Total available-for-sale | ​ | ​ | 821,935 | ​ | ​ | 18,850 | ​ | ​ | (4,518) | ​ | ​ | 836,267
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government agency | ​ | ​ | 7,332 | ​ | ​ | 153 | ​ | ​ | — | ​ | ​ | 7,485
Municipal | ​ | ​ | 19,174 | ​ | ​ | 1,116 | ​ | ​ | — | ​ | ​ | 20,290
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 24,063 | ​ | ​ | 504 | ​ | ​ | — | ​ | ​ | 24,567
Agency commercial | ​ | ​ | 258,563 | ​ | ​ | 4,168 | ​ | ​ | (149) | ​ | ​ | 262,582
Total held-to-maturity | ​ | ​ | 309,132 | ​ | ​ | 5,941 | ​ | ​ | (149) | ​ | ​ | 314,924
Total debt securities | ​ | $ | 1,131,067 | ​ | $ | 24,791 | ​ | $ | (4,667) | ​ | $ | 1,151,191
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2020 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. government agency | ​ | $ | 118,282 | ​ | $ | 3,720 | ​ | $ | (9) | ​ | $ | 121,993
Municipal | ​ | ​ | 265,309 | ​ | ​ | 9,232 | ​ | ​ | (280) | ​ | ​ | 274,261
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 198,543 | ​ | ​ | 4,871 | ​ | ​ | (162) | ​ | ​ | 203,252
Agency commercial | ​ | ​ | 246,649 | ​ | ​ | 4,651 | ​ | ​ | (534) | ​ | ​ | 250,766
Corporate | ​ | ​ | 70,917 | ​ | ​ | 1,786 | ​ | ​ | (106) | ​ | ​ | 72,597
Total available-for-sale | ​ | ​ | 899,700 | ​ | ​ | 24,260 | ​ | ​ | (1,091) | ​ | ​ | 922,869
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Municipal | ​ | ​ | 22,484 | ​ | ​ | 1,390 | ​ | ​ | — | ​ | ​ | 23,874
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 13,031 | ​ | ​ | 452 | ​ | ​ | — | ​ | ​ | 13,483
Agency commercial | ​ | ​ | 32,880 | ​ | ​ | 2,222 | ​ | ​ | (18) | ​ | ​ | 35,084
Total held-to-maturity | ​ | ​ | 68,395 | ​ | ​ | 4,064 | ​ | ​ | (18) | ​ | ​ | 72,441
Total debt securities | ​ | $ | 968,095 | ​ | $ | 28,324 | ​ | $ | (1,109) | ​ | $ | 995,310
​ ​ As of June 30, 2021 and December 31, 2020, the Bank had debt securities with a carrying value of $353,944,000 and $308,064,000, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The Company has no direct exposure to the State of Illinois, but approximately 45% of the obligations of local municipalities portfolio consists of debt securities issued by municipalities located in Illinois as of June 30, 2021. Approximately 94% of such debt securities were general obligation issues as of June 30, 2021. The amortized cost and fair value of debt securities by contractual maturity, as of June 30, 2021, are shown below. Expected maturities may 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 | ​ | Held-to-Maturity
​ |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
​ | ​ | (dollars in thousands)
Due in 1 year or less | ​ | $ | 30,667 | ​ | $ | 30,905 | ​ | $ | 3,049 | ​ | $ | 3,082
Due after 1 year through 5 years | ​ | ​ | 86,096 | ​ | ​ | 89,035 | ​ | ​ | 12,129 | ​ | ​ | 12,901
Due after 5 years through 10 years | ​ | ​ | 303,175 | ​ | ​ | 307,785 | ​ | ​ | 10,937 | ​ | ​ | 11,384
Due after 10 years | ​ | ​ | 127,168 | ​ | ​ | 127,955 | ​ | ​ | 391 | ​ | ​ | 408
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 143,657 | ​ | ​ | 147,147 | ​ | ​ | 24,063 | ​ | ​ | 24,567
Agency commercial | ​ | ​ | 131,172 | ​ | ​ | 133,440 | ​ | ​ | 258,563 | ​ | ​ | 262,582
Total | ​ | $ | 821,935 | ​ | $ | 836,267 | ​ | $ | 309,132 | ​ | $ | 314,924
​ ​ The following tables present gross unrealized losses and fair value of debt securities, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position, as of June 30, 2021 and December 31, 2020: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Investments in a Continuous Unrealized Loss Position
​ | ​ | Less than 12 Months | ​ | 12 Months or More | ​ | Total
June 30, 2021 |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. government agency | ​ | $ | (1,539) | ​ | $ | 71,163 | ​ | $ | — | ​ | $ | — | ​ | $ | (1,539) | ​ | $ | 71,163
Municipal | ​ | ​ | (2,090) | ​ | ​ | 90,841 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (2,090) | ​ | ​ | 90,841
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | (100) | ​ | ​ | 16,981 | ​ | ​ | (36) | ​ | ​ | 3,695 | ​ | ​ | (136) | ​ | ​ | 20,676
Agency commercial | ​ | ​ | (487) | ​ | ​ | 39,659 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (487) | ​ | ​ | 39,659
Corporate | ​ | ​ | (266) | ​ | ​ | 4,692 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (266) | ​ | ​ | 4,692
Total available-for-sale | ​ | ​ | (4,482) | ​ | ​ | 223,336 | ​ | ​ | (36) | ​ | ​ | 3,695 | ​ | ​ | (4,518) | ​ | ​ | 227,031
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency commercial | ​ | ​ | (149) | ​ | ​ | 18,448 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (149) | ​ | ​ | 18,448
Total held-to-maturity | ​ | ​ | (149) | ​ | ​ | 18,448 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (149) | ​ | ​ | 18,448
Total debt securities | ​ | $ | (4,631) | ​ | $ | 241,784 | ​ | $ | (36) | ​ | $ | 3,695 | ​ | $ | (4,667) | ​ | $ | 245,479
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Investments in a Continuous Unrealized Loss Position
​ | ​ | Less than 12 Months | ​ | 12 Months or More | ​ | Total
December 31, 2020 |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. government agency | ​ | $ | (9) | ​ | $ | 5,919 | ​ | $ | — | ​ | $ | — | ​ | $ | (9) | ​ | $ | 5,919
Municipal | ​ | ​ | (280) | ​ | ​ | 19,652 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (280) | ​ | ​ | 19,652
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | (142) | ​ | ​ | 20,387 | ​ | ​ | (20) | ​ | ​ | 4,490 | ​ | ​ | (162) | ​ | ​ | 24,877
Agency commercial | ​ | ​ | (524) | ​ | ​ | 57,126 | ​ | ​ | (10) | ​ | ​ | 3,449 | ​ | ​ | (534) | ​ | ​ | 60,575
Corporate | ​ | ​ | (106) | ​ | ​ | 4,849 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (106) | ​ | ​ | 4,849
Total available-for-sale | ​ | ​ | (1,061) | ​ | ​ | 107,933 | ​ | ​ | (30) | ​ | ​ | 7,939 | ​ | ​ | (1,091) | ​ | ​ | 115,872
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency commercial | ​ | ​ | (18) | ​ | ​ | 2,983 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (18) | ​ | ​ | 2,983
Total held-to-maturity | ​ | ​ | (18) | ​ | ​ | 2,983 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (18) | ​ | ​ | 2,983
Total debt securities | ​ | $ | (1,079) | ​ | $ | 110,916 | ​ | $ | (30) | ​ | $ | 7,939 | ​ | $ | (1,109) | ​ | $ | 118,855
​ As of June 30, 2021, there were 15 debt securities in an unrealized loss position for a period of twelve months or more, and 125 debt securities in an unrealized loss position for a period of less than twelve months. These unrealized losses are primarily a result of fluctuations in market interest rates. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management believes that all declines in value of these debt securities are deemed to be temporary. ​ Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in gains (losses) on securities on the statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Readily | ​ | No Readily
​ | ​ | Determinable | ​ | Determinable
June 30, 2021 |  | Fair Value |  | Fair Value
​ | ​ | (dollars in thousands)
Initial cost | ​ | $ | 3,098 | ​ | $ | 1,717
Cumulative net unrealized gains (losses) | ​ | ​ | 240 | ​ | ​ | (165)
Carrying value | ​ | $ | 3,338 | ​ | $ | 1,552
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Readily | ​ | No Readily
​ | ​ | Determinable | ​ | Determinable
December 31, 2020 |  | Fair Value |  | Fair Value
​ | ​ | (dollars in thousands)
Initial cost | ​ | $ | 3,098 | ​ | $ | 1,717
Cumulative net unrealized gains (losses) | ​ | ​ | 194 | ​ | ​ | (165)
Carrying value | ​ | $ | 3,292 | ​ | $ | 1,552
​ As of June 30, 2021 and December 31, 2020, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect downward adjustments based on observable price changes of an identical investment. There have been no impairments or upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

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