XML 23 R14.htm IDEA: XBRL DOCUMENT
v3.22.1

INVESTMENT SECURITIES | 3 Months Ended
--- | ---
Mar. 31, 2022
Investments in Securities |
Investments in Securities | NOTE 5: INVESTMENT SECURITIES Held-to-maturity securities (“HTM”), which include any security for which the Company has both the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income over the security’s estimated life. Prepayments are anticipated for certain mortgage-backed securities. Premiums on callable securities are amortized to their earliest call date. Available-for-sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Realized gains and losses, based on specifically identified amortized cost of the individual security, are included in noninterest income. Unrealized gains and losses are recorded, net of related income tax effects, in stockholders’ equity. Premiums and discounts are amortized and accreted, respectively, to interest income over the estimated life of the security. Prepayments are anticipated for certain mortgage-backed and Small Business Administration (SBA) securities. Premiums on callable securities are amortized to their earliest call date. During the three months ended March 31, 2022, the Company transferred, at fair value, $226.5 million of securities from the available-for-sale portfolio to the held-to-maturity portfolio. The related net unrealized gross gains were $1.0 million; $775,000 (net of income taxes) remained in accumulated other comprehensive income and will be amortized over the remaining life of the securities. No gains or losses on these securities were recognized at the time of transfer. ​ The amortized cost and fair values of securities were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, 2022
​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
​ |  | Cost |  | Gains |  | Losses |  | Value
​ |  | (In Thousands)
AVAILABLE-FOR-SALE SECURITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency mortgage-backed securities |  | $ | 305,885 |  | $ | 928 |  | $ | 9,337 |  | $ | 297,476
Agency collateralized mortgage obligations | ​ | ​ | 78,199 | ​ | ​ | 73 | ​ | ​ | 5,263 | ​ | ​ | 73,009
States and political subdivisions | ​ | ​ | 41,202 | ​ | ​ | 221 | ​ | ​ | 426 | ​ | ​ | 40,997
Small Business Administration securities | ​ | ​ | 50,428 | ​ | ​ | 441 | ​ | ​ | 976 | ​ | ​ | 49,893
​ |  | $ | 475,714 |  | $ | 1,663 |  | $ | 16,002 |  | $ | 461,375
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2022
​ | ​ | ​ | ​ | ​ | ​ | Amortized | ​ | Gross | ​ | Gross | ​ | ​
​ | ​ | Amortized | ​ | Fair Value | ​ | Carrying | ​ | Unrealized | ​ | Unrealized | ​ | Fair
​ | ​ | Cost | ​ | Adjustment | ​ | Value | ​ | Gains | ​ | Losses | ​ | Value
​ | ​ | (In Thousands)
HELD-TO-MATURITY SECURITIES: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Agency mortgage-backed securities | ​ | $ | 88,542 | ​ | $ | 4,424 | ​ | $ | 92,966 | ​ | $ | — | ​ | $ | 2,966 | ​ | $ | 90,000
Agency collateralized mortgage obligations | ​ |  | 131,638 | ​ |  | (3,420) | ​ |  | 128,218 | ​ |  | — | ​ |  | 4,023 | ​ |  | 124,195
States and political subdivisions | ​ |  | 6,278 | ​ |  | (21) | ​ |  | 6,257 | ​ |  | — | ​ |  | 264 | ​ |  | 5,993
​ | ​ | $ | 226,458 | ​ | $ | 983 | ​ | $ | 227,441 | ​ | $ | — | ​ | $ | 7,253 | ​ | $ | 220,188
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2021
​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
​ |  | Cost |  | Gains |  | Losses |  | Value
​ |  | (In Thousands)
AVAILABLE-FOR-SALE SECURITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency mortgage-backed securities |  | $ | 219,624 |  | $ | 10,561 |  | $ | 744 |  | $ | 229,441
Agency collateralized mortgage obligations | ​ | ​ | 204,332 | ​ | ​ | 2,443 | ​ | ​ | 2,498 | ​ | ​ | 204,277
States and political subdivisions | ​ | ​ | 38,440 | ​ | ​ | 1,618 | ​ | ​ | 43 | ​ | ​ | 40,015
Small Business Administration securities | ​ | ​ | 26,802 | ​ | ​ | 497 | ​ | ​ | — | ​ | ​ | 27,299
​ |  | $ | 489,198 |  | $ | 15,119 |  | $ | 3,285 |  | $ | 501,032
​ No securities were classified as held-to-maturity at December 31, 2021. The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2022, 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. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Available-for-Sale | ​ | Held-to-Maturity
​ | ​ | Amortized | ​ | Fair | ​ | Amortized |  | Fair
​ |  | Cost |  | Value |  | Carrying Value |  | Value
​ | ​ | (In Thousands)
One year or less | ​ | $ | — | ​ | $ | — | ​ | $ | — |  | $ | —
After one through two years | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
After two through three years | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
After three through four years | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
After four through five years | ​ | ​ | 2,292 | ​ | ​ | 2,318 | ​ | ​ | — | ​ | ​ | —
After five through fifteen years | ​ | ​ | 13,081 | ​ | ​ | 13,208 | ​ | ​ | 2,575 | ​ | ​ | 2,440
After fifteen years | ​ | ​ | 25,831 | ​ | ​ | 25,474 | ​ | ​ | 3,681 | ​ | ​ | 3,553
Securities not due on a single maturity date | ​ | ​ | 434,510 | ​ | ​ | 420,375 | ​ | ​ | 221,185 | ​ | ​ | 214,195
​ | ​ | $ | 475,714 | ​ | $ | 461,375 | ​ | $ | 227,441 |  | $ | 220,188
​ Certain available-for-sale investments in debt securities are reported in the financial statements at an amount less than their amortized cost. Total fair value of these investments at March 31, 2022 and December 31, 2021, was approximately $351.5 million and $173.9 million, respectively, which is approximately 76.2% and 34.7% of the Company’s total available-for-sale investment portfolio. A high percentage of the unrealized losses were related to the Company’s mortgage-backed securities, collateralized mortgage obligations and Small Business Administration securities, which are issued and guaranteed by U.S. government-sponsored entities and agencies. The Company’s state and political subdivisions securities are investments in insured fixed rate municipal bonds for which the issuers continue to make timely principal and interest payments under the contractual terms of the securities. 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 available-for-sale and held-to-maturity securities 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 March 31, 2022 and December 31, 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2022
​ | ​ | 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)
AVAILABLE-FOR-SALE SECURITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency mortgage-backed securities |  | $ | 244,661 |  | $ | (9,337) |  | $ | — |  | $ | — |  | $ | 244,661 |  | $ | (9,337)
Agency collateralized mortgage obligations | ​ | ​ | 25,813 | ​ | ​ | (1,177) | ​ | ​ | 34,761 | ​ | ​ | (4,086) | ​ | ​ | 60,574 | ​ | ​ | (5,263)
States and political subdivisions securities | ​ | ​ | 17,527 | ​ | ​ | (179) | ​ | ​ | 3,976 | ​ | ​ | (247) | ​ | ​ | 21,503 | ​ | ​ | (426)
Small Business Administration securities | ​ | ​ | 24,804 | ​ | ​ | (976) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 24,804 | ​ | ​ | (976)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | $ | 312,805 |  | $ | (11,669) |  | $ | 38,737 |  | $ | (4,333) |  | $ | 351,542 |  | $ | (16,002)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2022
​ | ​ | 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)
HELD-TO-MATURITY SECURITIES: | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Agency mortgage-backed securities | ​ | $ | 80,283 | ​ | $ | (2,662) | ​ | $ | 9,717 | ​ | $ | (304) | ​ | $ | 90,000 | ​ | $ | (2,966)
Agency collateralized mortgage obligations | ​ |  | 70,764 | ​ |  | (1,772) | ​ |  | 53,431 | ​ |  | (2,251) | ​ |  | 124,195 | ​ |  | (4,023)
States and political subdivisions securities | ​ |  | 932 | ​ |  | (58) | ​ |  | 5,061 | ​ |  | (206) | ​ |  | 5,993 | ​ |  | (264)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | $ | 151,979 | ​ | $ | (4,492) | ​ | $ | 68,209 | ​ | $ | (2,761) | ​ | $ | 220,188 | ​ | $ | (7,253)
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 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)
AVAILABLE-FOR-SALE SECURITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency mortgage-backed securities | ​ | $ | 47,769 | ​ | $ | (388) | ​ | $ | 10,583 | ​ | $ | (356) | ​ | $ | 58,352 | ​ | $ | (744)
Agency collateralized mortgage obligations | ​ | ​ | 92,727 | ​ | ​ | (1,588) | ​ | ​ | 16,298 | ​ | ​ | (910) | ​ | ​ | 109,025 | ​ | ​ | (2,498)
States and political subdivisions securities | ​ | ​ | 6,537 | ​ | ​ | (43) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 6,537 | ​ | ​ | (43)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | $ | 147,033 | ​ | $ | (2,019) |  | $ | 26,881 | ​ | $ | (1,266) |  | $ | 173,914 | ​ | $ | (3,285)
​ Available-for-sale securities totaling $4.9 million were sold during the three months ended March 31, 2022. A gain of $7,000 resulting from the sale of this available-for-sale security was recognized during the three months ended March 31, 2022. There were no sales of available-for-sale securities during the three months ended March 31, 2021. 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.

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