XML 26 R10.htm IDEA: XBRL DOCUMENT v3.22.0.1

Investments

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments

INVESTMENTS

Trading Securities

Trading securities are reported on the Company's consolidated statements of condition at fair value. As of December 31, 2021 and 2020, the fair value of the Company's trading securities were $4.4 million and $4.2 million, respectively. These securities are held in a rabbi trust account and invested in mutual funds. The trading securities will be used for future payments associated with the Company’s deferred compensation plan for eligible employees and directors.

AFS Debt Securities

AFS debt securities are reported on the Company's consolidated statements of condition at fair value. The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of AFS debt securities as of the dates indicated:

(In thousands)						Amortized Cost						Unrealized Gains						Unrealized Losses						Fair Value
December 31, 2021
Obligations of U.S. government-sponsored enterprises						$	8,585					$	—					$	(241)					$	8,344
Obligations of states and political subdivisions						112,086						5,392						—						117,478
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises						1,003,869						7,856						(11,468)						1,000,257
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises						361,781						2,835						(5,767)						358,849
Subordinated corporate bonds						22,660						152						(254)						22,558
Total AFS debt securities						$	1,508,981					$	16,235					$	(17,730)					$	1,507,486
December 31, 2020
Obligations of states and political subdivisions						$	119,608					$	7,627					$	(115)					$	127,120
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises						547,396						19,796						(574)						566,618
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises						399,937						10,652						(135)						410,454
Subordinated corporate bonds						11,533						186						(98)						11,621
Total AFS debt securities						$	1,078,474					$	38,261					$	(922)					$	1,115,813

As of December 31, 2021 and 2020, there was no allowance carried on AFS debt securities.

At December 31, 2021, net unrealized losses on AFS debt securities reported within AOCI were $1.2 million, net of a deferred tax asset of $321,000. At December 31, 2020, net unrealized gains on AFS debt securities reported within AOCI were $29.3 million, net of a deferred tax liability of $8.0 million.

The following table details the Company’s sales of AFS debt securities for the periods indicated below:

						For the Year Ended December 31,
(In thousands)						2021						2020						2019
Proceeds from sales of AFS debt securities(1)						$	—					$	—					$	207,001
Gross realized gains						—						—						1,427
Gross realized losses						—						—						(1,532)

(1)    For the year ended December 31, 2019, the Company had not previously recorded any OTTI on AFS debt securities sold.

The following table presents the Company's AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, segregated by the length of time the securities have been in a continuous loss position:

												Less Than 12 Months												12 Months or More												Total
(In thousands, except number of holdings)						Number of Holdings						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
December 31, 2021
Obligations of U.S. government-sponsored enterprises						4						$	8,344					$	(241)					$	—					$	—					$	8,344					$	(241)
Obligations of states and political subdivisions						—						—						—						—						—						—						—
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises						113						659,851						(8,999)						61,978						(2,469)						721,829						(11,468)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises						56						191,456						(4,602)						38,117						(1,165)						229,573						(5,767)
Subordinated corporate bonds						7						11,932						(232)						979						(22)						12,911						(254)
Total AFS debt securities						180						$	871,583					$	(14,074)					$	101,074					$	(3,656)					$	972,657					$	(17,730)
December 31, 2020
Obligations of states and political subdivisions						1						$	2,404					$	(115)					$	—					$	—					$	2,404					$	(115)
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises						15						61,222						(568)						980						(6)						62,202						(574)
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises						9						39,107						(135)						—						—						39,107						(135)
Subordinated corporate bonds						5						4,902						(98)						—						—						4,902						(98)
Total AFS debt securities						30						$	107,635					$	(916)					$	980					$	(6)					$	108,615					$	(922)

As of December 31, 2021 and 2020, the unrealized losses on Company's AFS debt securities have not been recognized into income because management does not intend to sell and it is not more-likely-than-not it will be required to sell any of the AFS debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and not reflective of credit events. The issuers continue to make timely principal and interest payments on the bonds.

At December 31, 2021 and 2020, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $3.4 million and $3.1 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

At December 31, 2021, the amortized cost and estimated fair values of AFS debt securities, by contractual maturity, were as shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or

prepay obligations with or without call or prepayment penalties. Mortgage-related securities are shown in total, as their maturities are highly variable.

(In thousands)						Amortized Cost						Fair Value
Due in one year or less						$	3,718					$	3,735
Due after one year through five years						5,661						6,001
Due after five years through ten years						86,929						89,042
Due after ten years						47,022						49,602
Subtotal						143,330						148,380
Mortgage-related securities						1,365,651						1,359,106
Total						$	1,508,981					$	1,507,486

HTM Debt Securities

HTM debt securities are reported on the Company's consolidated statements of condition at amortized cost. The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of HTM debt securities as of the dates indicated:

(In thousands)						Amortized Cost						Unrealized Gains						Unrealized Losses						Fair Value
December 31, 2021
Obligations of states and political subdivisions						$	1,291					$	89					$	—					$	1,380
Total HTM debt securities						$	1,291					$	89					$	—					$	1,380
December 31, 2020
Obligations of states and political subdivisions						$	1,297					$	114					$	—					$	1,411
Total HTM debt securities						$	1,297					$	114					$	—					$	1,411

As of December 31, 2021 and 2020, the Company’s HTM debt securities portfolio was made up of three investment-grade municipal debt securities, of which two securities also carried credit enhancements. The HTM debt securities portfolio was comprised solely of high credit quality (rated AA or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. As a result, the Company determined that the expected credit loss on its HTM portfolio was immaterial, and therefore, an allowance was not carried on its HTM debt securities at December 31, 2021 or 2020.

As of December 31, 2021 and 2020, none of the Company's HTM debt securities were past due or on non-accrual status. The Company did not recognize any interest income on non-accrual HTM debt securities during the years ended December 31, 2021 and 2020. At December 31, 2021 and 2020, total accrued interest receivable on HTM debt securities, which has been excluded from reported amortized cost basis on HTM debt securities, was $10,000 at each date and reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date.

At December 31, 2021, the amortized cost and estimated fair values of HTM debt securities, by contractual maturity, were as shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In thousands)						Amortized Cost						Fair Value
Due in one year or less						$	—					$	—
Due after one year through five years						866						920
Due after five years through ten years						425						460
Due after ten years						—						—
Total						$	1,291					$	1,380

AFS and HTM Debt Securities Pledged

At December 31, 2021 and 2020, AFS and HTM debt securities with an amortized cost of $640.1 million and $485.0 million, respectively, and estimated fair values of $641.2 million and $507.1 million, respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase, and for other purposes required or permitted by law.

Other Investments

The Company's FHLBB and FRB common stock are reported at cost within other investments on the consolidated statements of condition. The Company evaluates these investments for impairment based on the ultimate recoverability of the par value. The company did not record any impairment on its FHLBB and FRB stock for the years ended December 31, 2021 and 2020.

The following table summarizes the Company's investment in FHLBB stock and FRB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:

(In thousands)						December 31, 2021						December 31, 2020
FHLBB						$	4,906					$	6,167
FRB						5,374						5,374
Total						$	10,280					$	11,541

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