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Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

						As of September 30, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	4,970					$	1					$	—					4,971
U.S. government agency securities - government-sponsored enterprises						20,376						264						(75)						20,565
Municipal securities						30,403						422						(328)						30,497
Residential mortgage-backed securities - government issued						15,164						307						(58)						15,413
Residential mortgage-backed securities - government-sponsored enterprises						87,940						1,188						(571)						88,557
Commercial mortgage-backed securities - government issued						6,038						88						(46)						6,080
Commercial mortgage-backed securities - government-sponsored enterprises						25,678						422						(369)						25,731
Other securities						2,205						37						—						2,242
						$	192,774					$	2,729					$	(1,447)					$	194,056

						As of December 31, 2020
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. government agency securities - government-sponsored enterprises						$	22,699					$	9					$	(79)					$	22,629
Municipal securities						24,067						716						(4)						24,779
Residential mortgage-backed securities - government issued						9,894						509						—						10,403
Residential mortgage-backed securities - government-sponsored enterprises						102,843						2,212						(49)						105,006
Commercial mortgage-backed securities - government issued						5,289						175						—						5,464
Commercial mortgage-backed securities - government-sponsored enterprises						12,584						781						—						13,365
Other securities						2,205						74						—						2,279
						$	179,581					$	4,476					$	(132)					$	183,925

The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses were as follows:

						As of September 30, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	14,000					$	261					$	(11)					$	14,250
Residential mortgage-backed securities - government issued						2,507						67						—						2,574
Residential mortgage-backed securities - government-sponsored enterprises						2,680						93						—						2,773
Commercial mortgage-backed securities - government-sponsored enterprises						2,009						219						—						2,228
						$	21,196					$	640					$	(11)					$	21,825

						As of December 31, 2020
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	17,106					$	417					$	(15)					$	17,508
Residential mortgage-backed securities - government issued						3,564						112						—						3,676
Residential mortgage-backed securities - government-sponsored enterprises						3,693						163						—						3,856
Commercial mortgage-backed securities - government-sponsored enterprises						2,011						282						—						2,293
						$	26,374					$	974					$	(15)					$	27,333

U.S. government agency securities - government-sponsored enterprises represent securities issued by Federal National Mortgage Association (“FNMA”) and the SBA. Municipal securities include securities issued by various municipalities located primarily within Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. Residential and commercial mortgage-backed securities - government issued represent securities guaranteed by the Government National Mortgage Association. Residential and commercial mortgage-backed securities - government-sponsored enterprises include securities guaranteed by the Federal Home Loan Mortgage Corporation, FNMA, and the FHLB. Other securities represent certificates of deposit of insured banks and savings institutions with an original maturity greater than three months. There were no sales of available-for-sale securities that occurred during the three months ended September 30, 2021 and seven sales of available-for-sale securities that occurred during the nine months ended September 30, 2021. There were no sales of available-for-sale securities that occurred during three months ended September 30, 2020 and one sale that occurred during the nine months ended September 30, 2020.

At September 30, 2021 and December 31, 2020, securities with a fair value of $44.4 million and $73.7 million, respectively, were pledged to secure various obligations, including interest rate swap contracts.

The amortized cost and fair value of securities by contractual maturity at September 30, 2021 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties.

						Available-for-Sale												Held-to-Maturity
						Amortized Cost						Fair Value						Amortized Cost						Fair Value
						(In Thousands)
Due in one year or less						$	2,703					$	2,740					$	3,630					$	3,647
Due in one year through five years						6,654						6,793						7,973						8,083
Due in five through ten years						49,213						49,790						8,022						8,452
Due in over ten years						134,204						134,733						1,571						1,643
						$	192,774					$	194,056					$	21,196					$	21,825

The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2021 and December 31, 2020. At September 30, 2021, the Corporation held 42 available-for-sale securities that were in an unrealized loss position. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At September 30, 2021, the Corporation held no available-for-sale securities that had been in a continuous unrealized loss position for twelve months or greater.

The Corporation also has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Corporation reviews its securities on a quarterly basis to monitor its exposure to other-than-temporary impairment. Consideration is given to such factors as the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, and an evaluation of the present value of expected future cash flows, if necessary. Based on the Corporation’s evaluation, it is expected that the Corporation will recover the entire amortized cost basis of each security. Accordingly, no other-than-temporary impairment was recorded in the unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020.

A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

						As of September 30, 2021
						Less than 12 Months												12 Months or Longer												Total
						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
						(In Thousands)
Available-for-sale:
U.S. government agency securities - government-sponsored enterprises						$	3,425					$	75					$	—					$	—					$	3,425					$	75
Municipal securities						13,384						328						—						—						13,384						328
Residential mortgage-backed securities - government issued						7,910						58						—						—						7,910						58
Residential mortgage-backed securities - government-sponsored enterprises						47,459						571						—						—						47,459						571
Commercial mortgage-backed securities - government issued						2,252						46						—						—						2,252						46
Commercial mortgage-backed securities - government-sponsored enterprises						14,932						369						—						—						14,932						369
						$	89,362					$	1,447					$	—					$	—					$	89,362					$	1,447

						As of December 31, 2020
						Less than 12 Months												12 Months or Longer												Total
						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
						(In Thousands)
Available-for-sale:
U.S. government agency securities - government-sponsored enterprises						$	11,602					$	45					$	4,031					$	34					$	15,633					$	79
Municipal securities						2,863						4						—						—						2,863						4
Residential mortgage-backed securities - government-sponsored enterprises						19,078						49						—						—						19,078						49
						$	33,543					$	98					$	4,031					$	34					$	37,574					$	132

The tables below show the Corporation’s gross unrealized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2021 and December 31, 2020. At September 30, 2021, the Corporation held three held-to-maturity securities that were in an unrealized loss position. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At September 30, 2021, the Corporation held two held-to-maturity securities that had been in a continuous unrealized loss position for twelve months or greater. It is expected that the Corporation will recover the entire amortized cost basis of each held-to-maturity security based upon an evaluation of aforementioned factors. Accordingly, no other-than-temporary impairment was recorded in the unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020.

A summary of unrealized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:

						As of September 30, 2021
						Less than 12 Months												12 Months or Longer												Total
						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
						(In Thousands)
Held-to-maturity:
Municipal securities						$	230					$	1					$	493					$	10					$	723					$	11

						As of December 31, 2020
						Less than 12 Months												12 Months or Longer												Total
						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
						(In Thousands)
Held-to-maturity:
Municipal securities						$	276					$	13					$	213					$	2					$	489					$	15

X

- References

No definition available.

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- 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)

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