XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.23.1

Investment Securities | 3 Months Ended
--- | ---
Mar. 31, 2023
Investment Securities |
Investment Securities | NOTE 3 Investment Securities The following tables present amortized cost, gross unrealized gains and losses, and fair value of the available-for-sale investment securities and the amortized cost, gross unrealized gains and losses and fair value of held-to-maturity securities as of March 31, 2023 and December 31, 2022: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2023
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Allowance for | ​ | Fair
(dollars in thousands) |  | Cost | ​ | Gains | ​ | Losses | ​ | Credit Losses |  | Value
Available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasury and agencies | ​ | $ | 3,264 | ​ | $ | 15 | ​ | $ | (12) | ​ | $ | — | ​ | $ | 3,267
Mortgage backed securities | ​ |  |  | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​
Residential agency | ​ |  | 691,334 | ​ |  | 1 | ​ |  | (109,716) | ​ | ​ | — | ​ |  | 581,619
Commercial | ​ |  | 69,011 | ​ |  | — | ​ |  | (6,240) | ​ | ​ | — | ​ |  | 62,771
Asset backed securities | ​ |  | 32 | ​ |  | — | ​ |  | — | ​ | ​ | — | ​ |  | 32
Corporate bonds | ​ |  | 69,499 | ​ |  | — | ​ |  | (11,363) | ​ | ​ | — | ​ |  | 58,136
Total available-for-sale investment securities | ​ | ​ | 833,140 | ​ | ​ | 16 | ​ | ​ | (127,331) | ​ | ​ | — | ​ | ​ | 705,825
Held-to-maturity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of state and political agencies | ​ | ​ | 132,433 | ​ |  | — | ​ |  | (14,149) | ​ | ​ | 117 | ​ |  | 118,284
Mortgage backed securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential agency | ​ | ​ | 181,438 | ​ |  | — | ​ |  | (31,848) | ​ | ​ | 106 | ​ |  | 149,590
Total held-to-maturity investment securities | ​ | ​ | 313,871 | ​ | ​ | — | ​ | ​ | (45,997) | ​ | ​ | 223 | ​ | ​ | 267,874
Total investment securities | ​ | $ | 1,147,011 | ​ | $ | 16 | ​ | $ | (173,328) | ​ | $ | 223 | ​ | $ | 973,699
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2022
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Allowance for | ​ | Fair
(dollars in thousands) |  | Cost | ​ | Gains | ​ | Losses | ​ | Credit Losses |  | Value
Available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasury and agencies | ​ | $ | 3,518 | ​ | $ | 19 | ​ | $ | (17) | ​ | ​ | N/A | ​ | $ | 3,520
Mortgage backed securities | ​ |  |  | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  |
Residential agency | ​ |  | 705,845 | ​ |  | 2 | ​ |  | (118,168) | ​ | ​ | N/A | ​ |  | 587,679
Commercial | ​ |  | 70,669 | ​ |  | — | ​ |  | (7,111) | ​ | ​ | N/A | ​ |  | 63,558
Asset backed securities | ​ |  | 34 | ​ |  | — | ​ |  | — | ​ | ​ | N/A | ​ |  | 34
Corporate bonds | ​ |  | 69,501 | ​ |  | — | ​ |  | (6,968) | ​ | ​ | N/A | ​ |  | 62,533
Total available-for-sale investment securities | ​ | ​ | 849,567 | ​ | ​ | 21 | ​ | ​ | (132,264) | ​ | ​ | N/A | ​ | ​ | 717,324
Held-to-maturity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of state and political agencies | ​ | ​ | 137,787 | ​ |  | — | ​ |  | (17,736) | ​ | ​ | N/A | ​ | ​ | 120,051
Mortgage backed securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential agency | ​ | ​ | 184,115 | ​ |  | — | ​ |  | (33,254) | ​ | ​ | N/A | ​ | ​ | 150,861
Total held-to-maturity investment securities | ​ | ​ | 321,902 | ​ | ​ | — | ​ | ​ | (50,990) | ​ | ​ | N/A | ​ | ​ | 270,912
Total investment securities | ​ | $ | 1,171,469 | ​ | $ | 21 | ​ | $ | (183,254) | ​ | ​ | N/A | ​ | $ | 988,236
​ Accrued interest receivable on available-for-sale investment securities and held-to-maturity investment securities is recorded in accrued interest receivable and is excluded from the estimate of credit losses. As of March 31, 2023 the accrued interest receivable on available-for-sale investment securities and held-to-maturity investment securities totaled $2.2 million and $1.0 million, respectively. As of December 31, 2022, the accrued interest receivable on available-for-sale investment securities and held-to-maturity investment securities totaled $1.9 million and $1.5 million, respectively. The following table presents investment securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2023: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2023
​ | ​ | Less than 12 Months | ​ | Over 12 Months | ​ | Total
​ | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair
(dollars in thousands) |  | Losses |  | Value |  | Losses |  | Value |  | Losses |  | Value
Available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasury and agencies | ​ | $ | (12) | ​ | $ | 427 | ​ | $ | — | ​ | $ | — | ​ | $ | (12) | ​ | $ | 427
Mortgage backed securities | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Residential agency | ​ |  | (63) | ​ |  | 2,575 | ​ |  | (109,653) | ​ |  | 578,913 | ​ |  | (109,716) | ​ |  | 581,488
Commercial | ​ |  | (300) | ​ |  | 4,941 | ​ |  | (5,940) | ​ |  | 57,830 | ​ |  | (6,240) | ​ |  | 62,771
Asset backed securities | ​ |  | — | ​ |  | 30 | ​ |  | — | ​ |  | 2 | ​ |  | — | ​ |  | 32
Corporate bonds | ​ |  | (2,075) | ​ |  | 14,900 | ​ |  | (9,288) | ​ |  | 43,236 | ​ |  | (11,363) | ​ |  | 58,136
Total available-for-sale investment securities | ​ | $ | (2,450) | ​ | $ | 22,873 | ​ | $ | (124,881) | ​ | $ | 679,981 | ​ | $ | (127,331) | ​ | $ | 702,854
​ ​ Gross unrealized losses on investment securities and the fair value of the related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2022, were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2022
​ | ​ | Less than 12 Months | ​ | Over 12 Months | ​ | Total
​ | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair
(dollars in thousands) |  | Losses |  | Value |  | Losses |  | Value |  | Losses |  | Value
Available-for-sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Treasury and agencies | ​ | $ | (17) | ​ | $ | 509 | ​ | $ | — | ​ | $ | — | ​ | $ | (17) | ​ | $ | 509
Mortgage backed securities | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Residential agency | ​ |  | (10,457) | ​ |  | 79,693 | ​ |  | (107,711) | ​ |  | 507,418 | ​ |  | (118,168) | ​ |  | 587,111
Commercial | ​ |  | (4,835) | ​ |  | 50,437 | ​ |  | (2,276) | ​ |  | 13,120 | ​ |  | (7,111) | ​ |  | 63,557
Asset backed securities | ​ |  | — | ​ |  | 32 | ​ |  | — | ​ |  | 2 | ​ |  | — | ​ |  | 34
Corporate bonds | ​ |  | (4,452) | ​ |  | 48,048 | ​ |  | (2,516) | ​ |  | 14,484 | ​ |  | (6,968) | ​ |  | 62,532
Total available-for-sale investment securities | ​ | ​ | (19,761) | ​ | ​ | 178,719 | ​ | ​ | (112,503) | ​ | ​ | 535,024 | ​ | ​ | (132,264) | ​ | ​ | 713,743
Held-to-maturity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of state and political agencies | ​ | ​ | (3,336) | ​ | ​ | 18,788 | ​ | ​ | (14,400) | ​ | ​ | 98,762 | ​ | ​ | (17,736) | ​ | ​ | 117,550
Mortgage backed securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential agency | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (33,254) | ​ | ​ | 150,861 | ​ | ​ | (33,254) | ​ | ​ | 150,861
Total held-to-maturity investment securities | ​ | ​ | (3,336) | ​ | ​ | 18,788 | ​ | ​ | (47,654) | ​ | ​ | 249,623 | ​ | ​ | (50,990) | ​ | ​ | 268,411
Total investment securities | ​ | $ | (23,097) | ​ | $ | 197,507 | ​ | $ | (160,157) | ​ | $ | 784,647 | ​ | $ | (183,254) | ​ | $ | 982,154
​ Unrealized losses on available-for-sale investments securities have not been recognized into income because the issuers’ bonds are of high credit quality. Furthermore, the Company does not intend to sell, and it is likely that management will not be required to sell, the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The issuers continue to make timely principal and interest payments on their bonds. The Company expects that it could see a continued increase in unrealized losses if the Federal Reserve continues to raise interest rates. The following table presents amortized cost and fair value of available-for-sale investment securities and the carrying value and fair value of held-to-maturity investment securities as of March 31, 2023, by contractual maturity: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Held-to-maturity | ​ | Available-for-sale
​ | ​ | Carrying | ​ | Fair | ​ | Amortized | ​ | Fair
(dollars in thousands) |  | Value | ​ | Value | ​ | Cost |  | Value
Due within one year or less | ​ | $ | 5,797 | ​ | $ | 5,692 | ​ | $ | — | ​ | $ | —
Due after one year through five years | ​ |  | 40,296 | ​ |  | 37,454 | ​ |  | 17,549 | ​ |  | 16,463
Due after five years through ten years | ​ |  | 69,945 | ​ |  | 60,959 | ​ |  | 78,819 | ​ |  | 66,742
Due after 10 years | ​ |  | 16,395 | ​ |  | 14,179 | ​ |  | 45,438 | ​ |  | 41,001
​ | ​ | ​ | 132,433 | ​ | ​ | 118,284 | ​ | ​ | 141,806 | ​ | ​ | 124,206
Mortgage-backed securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential agency | ​ | ​ | 181,438 | ​ | ​ | 149,590 | ​ | ​ | 691,334 | ​ | ​ | 581,619
Total investment securities | ​ | $ | 313,871 | ​ | $ | 267,874 | ​ | $ | 833,140 | ​ | $ | 705,825
​ 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. Investment securities with a total carrying value of $368.0 million and $260.7 million were pledged as of March 31, 2023 and December 31, 2022, respectively, to secure public deposits and for other purposes required or permitted by law. The company had no sales or calls of available-for-sale investment securities, for the three months ended March 31, 2023 and 2022 ​ Proceeds from the call of held-to-maturity investment securities, for the three months ended March 31, 2023 and 2022, are displayed in the table below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended
​ | ​ | March 31,
(dollars in thousands) |  | 2023 |  | 2022
Proceeds | ​ | $ | 126 | ​ | $ | 515
Realized gains | ​ |  | — | ​ |  | —
Realized losses | ​ |  | — | ​ |  | —
​ As of March 31, 2023 and December 31, 2022, the carrying value of the Company’s Federal Reserve stock and Federal Home Loan Bank of Des Moines, or FHLB, stock was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, | ​ | December 31,
(dollars in thousands) |  | 2023 |  | 2022
Federal Reserve | ​ | $ | 4,623 | ​ | $ | 4,595
FHLB | ​ |  | 19,587 | ​ |  | 19,362
​ These securities can only be redeemed or sold at their par value and only to the respective issuing institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. Visa Class B Restricted Shares In 2008, the Company received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the settlement of certain litigation which will be indemnified by Visa members, including the Company. Visa funded an escrow account from its initial public offering to settle these litigation claims. Should this escrow account be insufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank’s Class B conversion ratio to unrestricted Class A shares. As of March 31, 2023, the conversion ratio was 1.5991. Based on the existing transfer restriction and the uncertainty of the outcome of the Visa litigation mentioned above, the 6,924 Class B shares (11,072 Class A equivalents) that the Company owned as of March 31, 2023 and December 31, 2022, were carried at a zero cost basis.

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 https://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 https://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 https://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 https://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