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Securities

9 Months Ended

Sep. 30, 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 September 30, 2022
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	4,975					$	—					$	(575)					4,400
U.S. government agency securities - government-sponsored enterprises						15,711						104						(563)						15,252
Municipal securities						44,379						—						(7,580)						36,799
Residential mortgage-backed securities - government issued						18,373						—						(2,314)						16,059
Residential mortgage-backed securities - government-sponsored enterprises						106,445						—						(13,071)						93,374
Commercial mortgage-backed securities - government issued						3,585						—						(505)						3,080
Commercial mortgage-backed securities - government-sponsored enterprises						32,934						—						(5,332)						27,602
						$	226,402					$	104					$	(29,940)					$	196,566

						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 September 30, 2022
						Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	8,134					$	—					$	(147)					$	7,987
Residential mortgage-backed securities - government issued						1,744						—						(94)						1,650
Residential mortgage-backed securities - government-sponsored enterprises						1,646						—						(101)						1,545
Commercial mortgage-backed securities - government-sponsored enterprises						2,007						—						(111)						1,896
						$	13,531					$	—					$	(453)					$	13,078

						As of December 31, 2021
						Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized 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 and nine months ended September 30, 2022. 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.

At September 30, 2022 and December 31, 2021, securities with a fair value of $36.4 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 September 30, 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						$	1,947					$	1,928					$	2,557					$	2,539
Due in one year through five years						13,389						12,025						4,660						4,544
Due in five through ten years						57,109						49,658						5,419						5,167
Due in over ten years						153,957						132,955						895						828
						$	226,402					$	196,566					$	13,531					$	13,078

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, 2022 and December 31, 2021. At September 30, 2022, the Corporation held 176 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, 2022, the Corporation held 40 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 and nine months ended September 30, 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 September 30, 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						$	—					$	—					$	4,400					$	575					$	4,400					$	575
U.S. government agency securities - government-sponsored enterprises						—						—						2,937						563						2,937						563
Municipal securities						27,780						4,733						9,019						2,847						36,799						7,580
Residential mortgage-backed securities - government issued						9,936						1,060						6,123						1,254						16,059						2,314
Residential mortgage-backed securities - government-sponsored enterprises						59,449						6,384						33,925						6,687						93,374						13,071
Commercial mortgage-backed securities - government issued						1,348						95						1,732						410						3,080						505
Commercial mortgage-backed securities - government-sponsored enterprises						11,668						1,669						15,934						3,663						27,602						5,332
						$	110,181					$	13,941					$	74,070					$	15,999					$	184,251					$	29,940

						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 September 30, 2022 and December 31, 2021. At September 30, 2022, the Corporation held 44 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, 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 and nine months ended September 30, 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 September 30, 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						$	7,501					$	122					$	261					$	25					$	7,762					$	147
Residential mortgage-backed securities - government issued						1,650						94						—						—						1,650						94
Residential mortgage-backed securities - government-sponsored enterprises						1,545						101						—						—						1,545						101
Commercial mortgage-backed securities - government-sponsored enterprises						1,896						111						—						—						1,896						111
						$	12,592					$	428					$	261					$	25					$	12,853					$	453

						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

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- 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 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)

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