XML 24 R14.htm IDEA: XBRL DOCUMENT

INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2021

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE 5: INVESTMENT SECURITIES

The amortized cost and fair values of securities classified as available-for-sale were as follows:


		June 30, 2021
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value

		(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
Agency mortgage-backed securities		$	158,456		$	14,171		$	777		$	171,850
Agency collateralized mortgage obligations			214,533			5,155			1,314			218,374
States and political subdivisions			39,177			1,883			64			40,996
Small Business Administration securities			18,653			967			—			19,620
		$	430,819		$	22,176		$	2,155		$	450,840


		December 31, 2020
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value

		(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
Agency mortgage-backed securities		$	151,106		$	19,665		$	831		$	169,940
Agency collateralized mortgage obligations			168,472			8,524			375			176,621
States and political subdivisions			45,196			2,135			6			47,325
Small Business Administration securities			20,033			1,014			—			21,047
		$	384,807		$	31,338		$	1,212		$	414,933

The amortized cost and fair value of available-for-sale securities at June 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


		Amortized			Fair
		Cost			Value

		(In Thousands)
One year or less		$	—		$	—
After one through five years			—			—
After five through ten years			9,919			10,481
After ten years			29,258			30,515
Securities not due on a single maturity date			391,642			409,844
		$	430,819		$	450,840

There were no securities classified as held to maturity at June 30, 2021 or December 31, 2020.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2021 and December 31, 2020, was approximately $93.1 million and $24.2 million, respectively, which is approximately 20.7% and 5.8% of the Company’s available-for-sale investment portfolio, respectively.

Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes any declines in fair value for these debt securities are temporary.

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2021 and December 31, 2020:


		June 30, 2021
		Less than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses

		(In Thousands)
Agency mortgage-backed securities		$	10,247		$	(777)		$	—		$	—		$	10,247		$	(777)
Agency collateralized mortgage obligations			77,031			(1,314)			—			—			77,031			(1,314)
States and political subdivisions securities			5,855			(64)			—			—			5,855			(64)

		$	93,133		$	(2,155)		$	—		$	—		$	93,133		$	(2,155)


		December 31, 2020
		Less than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses

		(In Thousands)
Agency mortgage-backed securities		$	10,279		$	(831)		$	—		$	—		$	10,279		$	(831)
Agency collateralized mortgage obligations			12,727			(375)			—			—			12,727			(375)
Small Business Administration securities			—			—			—			—			—			—
States and political subdivisions securities			1,164			(6)			—			—			1,164			(6)

		$	24,170		$	(1,212)		$	—		$	—		$	24,170		$	(1,212)

There were no sales of available-for-sale securities during the three or six months ended June 30, 2021. Gross gains of $78,000 resulting from sales of available-for-sale securities were realized during the three and six months ended June 30, 2020. Gains and losses on sales of securities are determined on the specific-identification method.

Allowance for Credit Losses On January 1, 2021, the Company began evaluating all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. All of the mortgage-backed, collateralized mortgage, and SBA securities held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Likewise, the Company has not experienced historical losses on these types of securities. Accordingly, no allowance for credit losses has been recorded for these securities.

Regarding securities issued by state and political subdivisions, management considers the following when evaluating these securities: (i) current issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) updated financial information of the issuer, (v) internal forecasts and (vi) whether such securities provide insurance or other credit enhancement or are pre-refunded by the issuers. These securities are highly rated by major rating agencies and have a long history of no credit losses. Likewise, the Company has not experienced historical losses on these types of securities. Accordingly, no allowance for credit losses has been recorded for these securities.

Amounts Reclassified Out of Accumulated Other Comprehensive Income. There were no amounts reclassified from accumulated other comprehensive income during the three or six months ended June 30, 2021 and 2020.