XML 29 R11.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Note 2 - Securities | 12 Months Ended
--- | ---
Dec. 31, 2023
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 2 – SECURITIES The amortized cost and fair value of available for sale securities and the related pre-tax gross unrealized gains and losses recognized in accumulated other comprehensive gain/(loss) were as follows at year-end 2023 and 2022:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(Dollars in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 442,496 |  |  | $ | 0 |  |  | $ | (52,000 | ) |  | $ | 390,496 |
Mortgage-backed securities |  |  | 35,168 |  |  |  | 20 |  |  |  | (5,715 | ) |  |  | 29,473 |
Municipal general obligation bonds |  |  | 172,126 |  |  |  | 1,924 |  |  |  | (6,190 | ) |  |  | 167,860 |
Municipal revenue bonds |  |  | 30,708 |  |  |  | 262 |  |  |  | (2,207 | ) |  |  | 28,763 |
Other investments |  |  | 500 |  |  |  | 0 |  |  |  | 0 |  |  |  | 500 |
|  | $ | 680,998 |  |  | $ | 2,206 |  |  | $ | (66,112 | ) |  | $ | 617,092 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 453,836 |  |  | $ | 0 |  |  | $ | (65,092 | ) |  | $ | 388,744 |
Mortgage-backed securities |  |  | 38,002 |  |  |  | 19 |  |  |  | (6,068 | ) |  |  | 31,953 |
Municipal general obligation bonds |  |  | 163,041 |  |  |  | 450 |  |  |  | (9,058 | ) |  |  | 154,433 |
Municipal revenue bonds |  |  | 30,267 |  |  |  | 102 |  |  |  | (3,063 | ) |  |  | 27,306 |
Other investments |  |  | 500 |  |  |  | 0 |  |  |  | 0 |  |  |  | 500 |
|  | $ | 685,646 |  |  | $ | 571 |  |  | $ | (83,281 | ) |  | $ | 602,936 |
Securities with unrealized losses at year-end 2023 and 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 |
(Dollars in thousands) |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
Description of Securities |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 0 |  |  | $ | 0 |  |  | $ | 390,496 |  |  | $ | 52,000 |  |  | $ | 390,496 |  |  | $ | 52,000 |
Mortgage-backed securities |  |  | 114 |  |  |  | 0 |  |  |  | 28,749 |  |  |  | 5,715 |  |  |  | 28,863 |  |  |  | 5,715 |
Municipal general obligation bonds |  |  | 1,109 |  |  |  | 6 |  |  |  | 106,171 |  |  |  | 6,184 |  |  |  | 107,280 |  |  |  | 6,190 |
Municipal revenue bonds |  |  | 1,506 |  |  |  | 8 |  |  |  | 20,602 |  |  |  | 2,199 |  |  |  | 22,108 |  |  |  | 2,207 |
Other investments |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
|  | $ | 2,729 |  |  | $ | 14 |  |  | $ | 546,018 |  |  | $ | 66,098 |  |  | $ | 548,747 |  |  | $ | 66,112 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency debt obligations |  | $ | 53,019 |  |  | $ | 5,713 |  |  | $ | 335,725 |  |  | $ | 59,379 |  |  | $ | 388,744 |  |  | $ | 65,092 |
Mortgage-backed securities |  |  | 31,127 |  |  |  | 6,068 |  |  |  | 12 |  |  |  | 0 |  |  |  | 31,139 |  |  |  | 6,068 |
Municipal general obligation bonds |  |  | 97,252 |  |  |  | 4,516 |  |  |  | 32,870 |  |  |  | 4,542 |  |  |  | 130,122 |  |  |  | 9,058 |
Municipal revenue bonds |  |  | 12,532 |  |  |  | 1,141 |  |  |  | 10,609 |  |  |  | 1,922 |  |  |  | 23,141 |  |  |  | 3,063 |
Other investments |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
|  | $ | 193,930 |  |  | $ | 17,438 |  |  | $ | 379,216 |  |  | $ | 65,843 |  |  | $ | 573,146 |  |  | $ | 83,281 |
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 December 31, 2023, 641 debt securities with estimated fair values totaling $549 million had unrealized losses aggregating $66.1 million. At December 31, 2022, 732 debt securities with estimated fair values totaling $573 million had unrealized losses aggregating $83.3 million. At December 31, 2023, unrealized losses aggregating $57.7 million were attributable to bonds issued or guaranteed by agencies of the U.S. federal government, while unrealized losses totaling $8.4 million were associated with bonds issued by state-based municipalities. After considering the issuers of the bonds, and taking into account the fact that no municipal issuer had been subject to a credit rating downgrade by bond credit rating agencies, we determined that the unrealized losses were due to changing interest rate environments. As we do not intend to sell our debt securities before recovery of their cost basis and we believe it is more likely than not that we will not be required to sell our debt securities before recovery of the cost basis, no unrealized losses are deemed to represent credit losses. The amortized cost and fair values of debt securities at December 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.
|  | Amortized |  |  | Fair |
(Dollars in thousands) |  | Cost |  |  | Value |
Due in one year or less |  | $ | 57,724 |  |  | $ | 56,289 |
Due from one to five years |  |  | 261,591 |  |  |  | 241,758 |
Due from five to ten years |  |  | 279,722 |  |  |  | 243,791 |
Due after ten years |  |  | 46,293 |  |  |  | 45,281 |
Mortgage-backed securities |  |  | 35,168 |  |  |  | 29,473 |
Other investments |  |  | 500 |  |  |  | 500 |
|  | $ | 680,998 |  |  | $ | 617,092 |
No securities were sold during the last three years. Securities issued by the State of Michigan and all its political subdivisions had a combined amortized cost of $203 million and $193 million at December 31, 2023 and December 31, 2022, respectively, with estimated market values of $197 million and $182 million at the respective dates. We had no securities issued by all other states and their political subdivisions as of December 31, 2023 or 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 $230 million and $194 million at December 31, 2023 and 2022, respectively. Investments in FHLBI stock are restricted and may only be resold to, or redeemed by, the issuer.

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