XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

SECURITIES: | 12 Months Ended
--- | ---
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES: The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:
|  | December 31, 2021
|  | Amortized |  | Unrealized |  |
(Dollar amounts in thousands) |  | Cost |  | Gains |  | Losses |  | Fair Value
U.S. Government entity mortgage-backed securities |  | $ | 118,176 |  |  | $ | 2,688 |  |  | $ | (741) |  |  | $ | 120,123 |
Mortgage-backed securities, residential |  | 628,920 |  |  | 4,387 |  |  | (6,879) |  |  | 626,428 |
Mortgage-backed securities, commercial |  | 15,480 |  |  | 191 |  |  | — |  |  | 15,671 |
Collateralized mortgage obligations |  | 175,501 |  |  | 1,272 |  |  | (1,768) |  |  | 175,005 |
State and municipal obligations |  | 362,843 |  |  | 17,833 |  |  | (578) |  |  | 380,098 |
Municipal taxable |  | 38,445 |  |  | 396 |  |  | (215) |  |  | 38,626 |
U.S. Treasury |  | 205 |  |  | — |  |  | (1) |  |  | 204 |
Collateralized debt obligations |  | — |  |  | 3,359 |  |  | — |  |  | 3,359 |
Other securities |  | 5,220 |  |  | — |  |  | — |  |  | 5,220 |
TOTAL |  | $ | 1,344,790 |  |  | $ | 30,126 |  |  | $ | (10,182) |  |  | $ | 1,364,734 |
|  | December 31, 2020
|  | Amortized |  | Unrealized |  |
(Dollar amounts in thousands) |  | Cost |  | Gains |  | Losses |  | Fair Value
U.S. Government entity mortgage-backed securities |  | $ | 92,710 |  |  | $ | 5,105 |  |  | $ | (1) |  |  | $ | 97,814 |
Mortgage-backed securities, residential |  | 346,606 |  |  | 8,794 |  |  | (279) |  |  | 355,121 |
Mortgage-backed securities, commercial |  | 17,931 |  |  | 559 |  |  | — |  |  | 18,490 |
Collateralized mortgage obligations |  | 209,556 |  |  | 4,761 |  |  | (157) |  |  | 214,160 |
State and municipal obligations |  | 285,837 |  |  | 20,294 |  |  | — |  |  | 306,131 |
Municipal taxable |  | 22,440 |  |  | 702 |  |  | (3) |  |  | 23,139 |
U.S. Treasury |  | 2,750 |  |  | 3 |  |  | — |  |  | 2,753 |
Collateralized debt obligations |  | — |  |  | 3,136 |  |  | — |  |  | 3,136 |
TOTAL |  | $ | 977,830 |  |  | $ | 43,354 |  |  | $ | (440) |  |  | $ | 1,020,744 |
As of December 31, 2021, the Corporation does not have any securities from any issuer, other than the U.S. Government, with an aggregate book or fair value that exceeds ten percent of shareholders' equity. Securities with a carrying value of approximately $814.7 million and $744.5 million at December 31, 2021 and 2020, respectively, were pledged as collateral for short-term borrowings and for other purposes. Below is a summary of the gross gains and losses realized by the Corporation on investment sales and calls during the years ended December 31, 2021, 2020 and 2019, respectively.
(Dollar amounts in thousands) |  | 2021 |  | 2020 |  | 2019
Proceeds |  | $ | 12,886 |  |  | $ | 36,696 |  |  | $ | 11,210 |
Gross gains |  | 274 |  |  | 290 |  |  | 55 |
Gross losses |  | (160) |  |  | (57) |  |  | (11) |
Gains of $274 thousand and losses of $160 thousand in 2021 and gains of $290 thousand and losses of $57 thousand in 2020 and gains of $55 thousand and losses of $11 thousand in 2019 resulted from redemption premiums on called and sold securities. Contractual maturities of debt securities at year-end 2021 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately.
|  | Available-for-Sale
|  | Amortized |  | Fair
(Dollar amounts in thousands) |  | Cost |  | Value
Due in one year or less |  | $ | 16,769 |  |  | $ | 16,956 |
Due after one but within five years |  | 47,479 |  |  | 48,391 |
Due after five but within ten years |  | 83,680 |  |  | 87,192 |
Due after ten years |  | 376,961 |  |  | 395,091 |
|  | 524,889 |  |  | 547,630 |
Mortgage-backed securities and collateralized mortgage obligations |  | 819,901 |  |  | 817,104 |
TOTAL |  | $ | 1,344,790 |  |  | $ | 1,364,734 |
The following tables show the securities' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2021 and 2020.
|  | December 31, 2021
|  | Less Than 12 Months |  | More Than 12 Months |  | Total
|  |  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
(Dollar amounts in thousands) |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
U.S. Government entity mortgage-backed securities |  | $ | 48,939 |  |  | $ | (739) |  |  | 146 |  |  | (2) |  |  | $ | 49,085 |  |  | $ | (741) |
Mortgage-backed securities, residential |  | 436,726 |  |  | (5,281) |  |  | 60,807 |  |  | (1,598) |  |  | 497,533 |  |  | (6,879) |
Collateralized mortgage obligations |  | 73,530 |  |  | (1,327) |  |  | 12,505 |  |  | (441) |  |  | 86,035 |  |  | (1,768) |
State and municipal obligations |  | 54,040 |  |  | (578) |  |  | — |  |  | — |  |  | 54,040 |  |  | (578) |
Municipal taxable |  | 15,048 |  |  | (195) |  |  | 729 |  |  | (20) |  |  | 15,777 |  |  | (215) |
U.S. Treasury |  | 204 |  |  | (1) |  |  | — |  |  | — |  |  | 204 |  |  | (1) |
Total temporarily impaired securities |  | $ | 628,487 |  |  | $ | (8,121) |  |  | $ | 74,187 |  |  | $ | (2,061) |  |  | $ | 702,674 |  |  | $ | (10,182) |
|  | December 31, 2020
|  | Less Than 12 Months |  | More Than 12 Months |  | Total
|  |  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
(Dollar amounts in thousands) |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
U.S. Government entity mortgage-backed securities |  | $ | — |  |  | $ | — |  |  | $ | 944 |  |  | $ | (1) |  |  | $ | 944 |  |  | $ | (1) |
Mortgage-backed securities, residential |  | 76,962 |  |  | (279) |  |  | — |  |  | — |  |  | 76,962 |  |  | (279) |
Collateralized mortgage obligations |  | 12,282 |  |  | (108) |  |  | 3,767 |  |  | (49) |  |  | 16,049 |  |  | (157) |
Municipal taxable |  | 747 |  |  | (3) |  |  | — |  |  | — |  |  | 747 |  |  | (3) |
U.S. Treasury |  | 250 |  |  | — |  |  | — |  |  | — |  |  | 250 |  |  | — |
Total temporarily impaired securities |  | $ | 90,241 |  |  | $ | (390) |  |  | $ | 4,711 |  |  | $ | (50) |  |  | $ | 94,952 |  |  | $ | (440) |
The Corporation held 221 investment securities with an amortized cost greater than fair value as of December 31, 2021. The unrealized losses on collateralized mortgage obligations, all mortgage-backed securities and state and municipal obligations represent negative adjustments to fair value relative to the rate of interest paid on the securities and not losses related to the creditworthiness of the issuer. Gross unrealized losses on investment securities were $10.2 million as of December 31, 2021 and $440 thousand as of December 31, 2020. Management does not intend to sell and it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery. Management believes the value will recover as the securities approach maturity or market rates change. Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for impairment related to credit losses by segregating the portfolio into two general segments. In evaluating for impairment, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security's amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. In prior years, a significant portion of the total unrealized losses relates to collateralized debt obligations that were separately evaluated under FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. Based upon qualitative considerations, such as a downgrade in credit rating or further defaults of underlying issuers during the year, and an analysis of expected cash flows, we determined that three CDOs included in collateralized debt obligations were other-than-temporarily impaired. One of the CDO's was called in first quarter 2017. A second was called in second quarter 2018. The remaining CDO has a contractual balance of $3.7 million at December 31, 2021 which has been reduced to $3.4 million by $750 thousand of interest payments received, $3.0 million of cumulative credit loss charges recorded through earnings to date and increased by $3.4 million recorded in other comprehensive income. These securities are collateralized by trust preferred securities issued primarily by bank holding companies, but certain pools do include a limited number of insurance companies. Collateralized debt obligations include one additional investment in a CDO consisting of pooled trust preferred securities in which the issuers are primarily banks. This CDO was paid in full in 2015. In the first quarter of 2017 a CDO with no remaining book value was called with the bank receiving $3.1 million, which is included in other non-interest income on the consolidated statements of income and comprehensive income. In the second quarter of 2018 one of the obligations was called, resulting in the elimination of the credit loss associated with that obligation. A recovery of previously recorded credit loss of $4.2 million was received and recognized in non-interest income for the period. In addition the Corporation received $2.4 million of interest income associated with the call. The table below presents a rollforward of the credit losses recognized in earnings for the years presented:
(Dollar amounts in thousands) |  | 2021 |  | 2020 |  | 2019
Beginning balance, January 1, |  | $ | 2,974 |  |  | $ | 2,974 |  |  | $ | 2,974 |
Reductions for securities called during the period |  | — |  |  | — |  |  | — |
Ending balance, December 31, |  | $ | 2,974 |  |  | $ | 2,974 |  |  | $ | 2,974 |

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