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Securities

3 Months Ended

Mar. 31, 2022

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 March 31, 2022
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	4,973					$	—					$	(313)					4,660
U.S. government agency securities - government-sponsored enterprises						18,505						219						(297)						18,427
Municipal securities						44,105						17						(2,930)						41,192
Residential mortgage-backed securities - government issued						18,715						26						(912)						17,829
Residential mortgage-backed securities - government-sponsored enterprises						105,744						27						(5,331)						100,440
Commercial mortgage-backed securities - government issued						5,297						12						(230)						5,079
Commercial mortgage-backed securities - government-sponsored enterprises						36,565						2						(2,778)						33,789
Other securities						2,205						10						—						2,215
						$	236,109					$	313					$	(12,791)					$	223,631

						As of December 31, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	4,971					$	—					$	(57)					$	4,914
U.S. government agency securities - government-sponsored enterprises						19,797						248						(110)						19,935
Municipal securities						30,828						473						(344)						30,957
Residential mortgage-backed securities - government issued						19,563						238						(140)						19,661
Residential mortgage-backed securities - government-sponsored enterprises						85,748						741						(784)						85,705
Commercial mortgage-backed securities - government issued						5,801						36						(66)						5,771
Commercial mortgage-backed securities - government-sponsored enterprises						36,786						313						(568)						36,531
Other securities						2,205						23						—						2,228
						$	205,699					$	2,072					$	(2,069)					$	205,702

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 March 31, 2022
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	10,899					$	51					$	(18)					$	10,932
Residential mortgage-backed securities - government issued						2,035						—						(45)						1,990
Residential mortgage-backed securities - government-sponsored enterprises						2,325						6						(38)						2,293
Commercial mortgage-backed securities - government-sponsored enterprises						2,008						53						—						2,061
						$	17,267					$	110					$	(101)					$	17,276

						As of December 31, 2021
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	13,009					$	222					$	(3)					$	13,228
Residential mortgage-backed securities - government issued						2,226						40						—						2,266
Residential mortgage-backed securities - government-sponsored enterprises						2,502						76						—						2,578
Commercial mortgage-backed securities - government-sponsored enterprises						2,009						195						—						2,204
						$	19,746					$	533					$	(3)					$	20,276

U.S. Treasuries contains treasury bonds issued by the United States Treasury. 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 March 31, 2022 and 2021.

At March 31, 2022 and December 31, 2021, securities with a fair value of $38.7 million and $70.3 million, respectively, were pledged to secure various obligations, including interest rate swap contracts and municipal deposits.

The amortized cost and fair value of securities by contractual maturity at March 31, 2022 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						$	3,991					$	4,001					$	3,138					$	3,139
Due in one year through five years						10,368						9,913						6,337						6,342
Due in five through ten years						61,645						58,300						6,438						6,453
Due in over ten years						160,105						151,417						1,354						1,342
						$	236,109					$	223,631					$	17,267					$	17,276

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 March 31, 2022 and December 31, 2021. At March 31, 2022, the Corporation held 149 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 March 31, 2022, the Corporation held 10 available-for-sale securities that have 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 months ended March 31, 2022 and 2021.

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 March 31, 2022
						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. treasuries						$	4,660					$	313					$	—					$	—					$	4,660					$	313
U.S. government agency securities - government-sponsored enterprises						936						64						2,267						233						3,203						297
Municipal securities						36,910						2,510						2,080						420						38,990						2,930
Residential mortgage-backed securities - government issued						14,362						912						—						—						14,362						912
Residential mortgage-backed securities - government-sponsored enterprises						83,315						4,280						12,235						1,051						95,550						5,331
Commercial mortgage-backed securities - government issued						3,469						230						—						—						3,469						230
Commercial mortgage-backed securities - government-sponsored enterprises						26,134						1,968						6,361						810						32,495						2,778
						$	169,786					$	10,277					$	22,943					$	2,514					$	192,729					$	12,791

						As of December 31, 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. treasuries						$	4,914					$	57					$	—					$	—					$	4,914					$	57
U.S. government agency securities - government-sponsored enterprises						978						22						2,412						88						3,390						110
Municipal securities						12,568						344						—						—						12,568						344
Residential mortgage-backed securities - government issued						12,745						140						—						—						12,745						140
Residential mortgage-backed securities - government-sponsored enterprises						41,276						629						4,250						155						45,526						784
Commercial mortgage-backed securities - government issued						2,193						66						—						—						2,193						66
Commercial mortgage-backed securities - government-sponsored enterprises						25,906						568						—						—						25,906						568
						$	100,580					$	1,826					$	6,662					$	243					$	107,242					$	2,069

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 March 31, 2022 and December 31, 2021. At March 31, 2022, the Corporation held 17 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 March 31, 2022, the Corporation held one held-to-maturity security 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 months ended March 31, 2022 and 2021.

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 March 31, 2022
						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						$	522					$	1					$	270					$	17					$	792					$	18
Residential mortgage-backed securities - government issued						1,990						45						—						—						1,990						45
Residential mortgage-backed securities - government-sponsored enterprises						1,585						38						—						—						1,585						38
						$	4,097					$	84					$	270					$	17					$	4,367					$	101

						As of December 31, 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						$	—					$	—					$	284					$	3					$	284					$	3

X

- References

No definition available.

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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)

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