XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.23.1

Note 2 - Securities | 3 Months Ended
--- | ---
Mar. 31, 2023
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
2. | SECURITIES
The amortized cost and estimated fair value of available for sale securities and the related pre-tax gross unrealized gains and losses recognized in accumulated other comprehensive income are as follows:
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 454,000,000 |  |  | $ | 0 |  |  | $ | (57,780,000 | ) |  | $ | 396,220,000 |
Mortgage-backed securities |  |  | 37,164,000 |  |  |  | 22,000 |  |  |  | (5,596,000 | ) |  |  | 31,590,000 |
Municipal general obligation bonds |  |  | 168,721,000 |  |  |  | 1,081,000 |  |  |  | (6,731,000 | ) |  |  | 163,071,000 |
Municipal revenue bonds |  |  | 30,812,000 |  |  |  | 200,000 |  |  |  | (2,420,000 | ) |  |  | 28,592,000 |
Other investments |  |  | 500,000 |  |  |  | 0 |  |  |  | 0 |  |  |  | 500,000 |
|  | $ | 691,197,000 |  |  | $ | 1,303,000 |  |  | $ | (72,527,000 | ) |  | $ | 619,973,000 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 453,836,000 |  |  | $ | 0 |  |  | $ | (65,092,000 | ) |  | $ | 388,744,000 |
Mortgage-backed securities |  |  | 38,002,000 |  |  |  | 19,000 |  |  |  | (6,068,000 | ) |  |  | 31,953,000 |
Municipal general obligation bonds |  |  | 163,041,000 |  |  |  | 450,000 |  |  |  | (9,058,000 | ) |  |  | 154,433,000 |
Municipal revenue bonds |  |  | 30,267,000 |  |  |  | 102,000 |  |  |  | (3,063,000 | ) |  |  | 27,306,000 |
Other investments |  |  | 500,000 |  |  |  | 0 |  |  |  | 0 |  |  |  | 500,000 |
|  | $ | 685,646,000 |  |  | $ | 571,000 |  |  | $ | (83,281,000 | ) |  | $ | 602,936,000 |
Securities with unrealized losses at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows:
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 14,000,000 |  |  | $ | 755,000 |  |  | $ | 382,220,000 |  |  | $ | 57,025,000 |  |  | $ | 396,220,000 |  |  | $ | 57,780,000 |
Mortgage-backed securities |  |  | 29,016,000 |  |  |  | 5,508,000 |  |  |  | 1,742,000 |  |  |  | 88,000 |  |  |  | 30,758,000 |  |  |  | 5,596,000 |
Municipal general obligation bonds |  |  | 43,446,000 |  |  |  | 940,000 |  |  |  | 67,822,000 |  |  |  | 5,791,000 |  |  |  | 111,268,000 |  |  |  | 6,731,000 |
Municipal revenue bonds |  |  | 5,404,000 |  |  |  | 401,000 |  |  |  | 16,407,000 |  |  |  | 2,019,000 |  |  |  | 21,811,000 |  |  |  | 2,420,000 |
|  | $ | 91,866,000 |  |  | $ | 7,604,000 |  |  | $ | 468,191,000 |  |  | $ | 64,923,000 |  |  | $ | 560,057,000 |  |  | $ | 72,527,000 |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 53,019,000 |  |  | $ | 5,713,000 |  |  | $ | 335,725,000 |  |  | $ | 59,379,000 |  |  | $ | 388,744,000 |  |  | $ | 65,092,000 |
Mortgage-backed securities |  |  | 31,127,000 |  |  |  | 6,068,000 |  |  |  | 12,000 |  |  |  | 0 |  |  |  | 31,139,000 |  |  |  | 6,068,000 |
Municipal general obligation bonds |  |  | 97,252,000 |  |  |  | 4,516,000 |  |  |  | 32,870,000 |  |  |  | 4,542,000 |  |  |  | 130,122,000 |  |  |  | 9,058,000 |
Municipal revenue bonds |  |  | 12,532,000 |  |  |  | 1,141,000 |  |  |  | 10,609,000 |  |  |  | 1,922,000 |  |  |  | 23,141,000 |  |  |  | 3,063,000 |
|  | $ | 193,930,000 |  |  | $ | 17,438,000 |  |  | $ | 379,216,000 |  |  | $ | 65,843,000 |  |  | $ | 573,146,000 |  |  | $ | 83,281,000 |
We evaluate securities in an unrealized loss position at least quarterly. Consideration is given to the financial condition of the issuer, and the intent and ability we have to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. For those debt securities whose fair value is less than their amortized cost basis, we also consider our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery and if we do not expect to recover the entire amortized cost basis of the security. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. At March 31, 2023, 653 debt securities with estimated fair values totaling $560 million had unrealized losses aggregating $72.5 million. At December 31, 2022, 732 debt securities with estimated fair values totaling $573 million had unrealized losses aggregating $83.3 million. At March 31, 2023, unrealized losses aggregating $63.4 million were attributable to bonds issued or guaranteed by agencies of the U.S. federal government, while unrealized losses totaling $9.1 million were associated with bonds issued by state-based municipalities. For available for sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the debt security’s amortized cost basis is written down to fair value through income with the establishment of an allowance. For debt securities available for sale that do not meet the aforementioned criteria, we evaluate whether any decline in fair value is due to credit loss factors. In making this assessment, we consider any changes to the rating of the security by a rating agency and adverse conditions specifically related to the issuer of the security, among other factors.
The amortized cost and fair value of debt securities at March 31, 2023, by maturity, are shown in the following table. The contractual maturity is utilized for U.S. Government agency debt obligations and municipal bonds. 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. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. Weighted average yields are also reflected, with yields for municipal securities shown at their tax equivalent yield.
|  | Weighted |  |  |  |  |  |  |  |  |
|  | Average |  |  | Amortized |  |  | Fair |
|  | Yield (%) |  |  | Cost |  |  | Value |
Due in 2023 |  |  | 0.98 |  |  | $ | 20,361,000 |  |  | $ | 19,997,000 |
Due in 2024 through 2028 |  |  | 1.32 |  |  |  | 319,037,000 |  |  |  | 293,271,000 |
Due in 2029 through 2033 |  |  | 2.03 |  |  |  | 278,488,000 |  |  |  | 241,115,000 |
Due in 2034 and beyond |  |  | 3.58 |  |  |  | 35,647,000 |  |  |  | 33,500,000 |
Mortgage-backed securities |  |  | 2.12 |  |  |  | 37,164,000 |  |  |  | 31,590,000 |
Other investments |  |  | 8.00 |  |  |  | 500,000 |  |  |  | 500,000 |
Total available for sale securities |  |  | 1.76 |  |  | $ | 691,197,000 |  |  | $ | 619,973,000 |
No securities were sold during the first three months of 2023 or the full-year 2022. Securities issued by the State of Michigan and all its political subdivisions had a combined amortized cost of $200 million and $193 million at March 31, 2023 and December 31, 2022, respectively, with estimated market values of $192 million and $182 million at the respective dates. We had no securities issued by all other states and their political subdivisions as of March 31, 2023, and December 31, 2022. Total securities of any other specific issuer, other than the U.S. Government and its agencies and the State of Michigan and all its political subdivisions, did not exceed 10% of shareholders’ equity. The carrying value of U.S. Government agency debt obligations and mortgage-backed securities that are pledged to secure repurchase agreements was $227 million and $194 million at March 31, 2023, and December 31, 2022, respectively.

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 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