XML 21 R12.htm IDEA: XBRL DOCUMENT v3.23.1

Securities

3 Months Ended

Mar. 31, 2023

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, 2023
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	4,979					$	—					$	(454)					4,525
U.S. government agency securities - government-sponsored enterprises						21,342						63						(478)						20,927
Municipal securities						44,985						167						(4,747)						40,405
Residential mortgage-backed securities - government issued						28,634						6						(2,136)						26,504
Residential mortgage-backed securities - government-sponsored enterprises						125,333						84						(11,346)						114,071
Commercial mortgage-backed securities - government issued						3,397						—						(486)						2,911
Commercial mortgage-backed securities - government-sponsored enterprises						32,284						—						(4,638)						27,646
						$	260,954					$	320					$	(24,285)					$	236,989

						As of December 31, 2022
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	4,977					$	—					$	(532)					$	4,445
U.S. government agency securities - government-sponsored enterprises						13,666						70						(531)						13,205
Municipal securities						45,088						90						(5,867)						39,311
Residential mortgage-backed securities - government issued						21,790						—						(2,359)						19,431
Residential mortgage-backed securities - government-sponsored enterprises						119,265						—						(12,942)						106,323
Commercial mortgage-backed securities - government issued						3,450						—						(518)						2,932
Commercial mortgage-backed securities - government-sponsored enterprises						31,515						—						(5,138)						26,377
						$	239,751					$	160					$	(27,887)					$	212,024

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

						As of March 31, 2023
						Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	6,597					$	14					$	(32)					$	6,579
Residential mortgage-backed securities - government issued						1,520						—						(88)						1,432
Residential mortgage-backed securities - government-sponsored enterprises						1,338						—						(68)						1,270
Commercial mortgage-backed securities - government-sponsored enterprises						2,006						—						(80)						1,926
						$	11,461					$	14					$	(268)					$	11,207

						As of December 31, 2022
						Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	7,467					$	7					$	(70)					$	7,404
Residential mortgage-backed securities - government issued						1,625						—						(107)						1,518
Residential mortgage-backed securities - government-sponsored enterprises						1,537						—						(93)						1,444
Commercial mortgage-backed securities - government-sponsored enterprises						2,006						—						(102)						1,904
						$	12,635					$	7					$	(372)					$	12,270

U.S. Treasuries contain 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, 2023 and 2022.

At March 31, 2023 and December 31, 2022, securities with a fair value of $47.7 million and $35.9 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, 2023 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						$	4,499					$	4,490					$	2,230					$	2,225
Due in one year through five years						16,383						15,386						3,451						3,425
Due in five through ten years						16,426						15,320						916						929
Due in over ten years						33,998						30,661						—						—
						71,306						65,857						6,597						6,579
Residential mortgage-backed securities						153,967						140,576						2,858						2,702
Commercial mortgage-backed securities						35,681						30,556						2,006						1,926
						$	260,954					$	236,989					$	11,461					$	11,207

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, 2023 and December 31, 2022. At March 31, 2023, the Corporation held 177 available-for-sale securities that were in an unrealized loss position. At March 31, 2023, the Corporation held 147 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 assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the three months ended March 31, 2023 and 2022, management concluded that in all instances securities with fair value less than carrying value was due to market and other factors; thus, no credit loss provision was required.

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, 2023
						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						$	—					$	—					$	4,525					$	454					$	4,525					$	454
U.S. government agency securities - government-sponsored enterprises						5,989						11						3,033						467						9,022						478
Municipal securities						1,377						16						36,302						4,731						37,679						4,747
Residential mortgage-backed securities - government issued						7,951						330						11,746						1,806						19,697						2,136
Residential mortgage-backed securities - government-sponsored enterprises						24,051						681						76,466						10,664						100,517						11,345
Commercial mortgage-backed securities - government issued						—						—						2,910						486						2,910						486
Commercial mortgage-backed securities - government-sponsored enterprises						905						15						26,741						4,623						27,646						4,638
						$	40,273					$	1,053					$	161,723					$	23,231					$	201,996					$	24,284

						As of December 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						$	—					$	—					$	4,446					$	532					$	4,446					$	532
U.S. government agency securities - government-sponsored enterprises						—						—						2,969						531						2,969						531
Municipal securities						26,759						3,132						10,133						2,735						36,892						5,867
Residential mortgage-backed securities - government issued						9,624						436						9,807						1,923						19,431						2,359
Residential mortgage-backed securities - government-sponsored enterprises						71,474						6,433						34,849						6,509						106,323						12,942
Commercial mortgage-backed securities - government issued						1,236						112						1,696						406						2,932						518
Commercial mortgage-backed securities - government-sponsored enterprises						7,758						984						18,619						4,154						26,377						5,138
						$	116,851					$	11,097					$	82,519					$	16,790					$	199,370					$	27,887

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, 2023 and December 31, 2022. At March 31, 2023, the Corporation held 32 held-to-maturity securities that were in an unrealized loss position. Management assesses HTM securities for credit losses on a quarterly basis. The assessment includes review of credit ratings, identification of delinquency and evaluation of market factors. Based on this analysis, management concludes the

decline in fair value is due to market factors. Accordingly, no credit loss provision was recorded in the unaudited Consolidated Statements of Income for the three months ended March 31, 2023 and 2022.

A summary of unrecognized 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, 2023
						Less than 12 Months												12 Months or Longer												Total
						Fair Value						Unrecognized Losses						Fair Value						Unrecognized Losses						Fair Value						Unrecognized Losses
						(In Thousands)
Held-to-maturity:
Municipal securities						$	3,701					$	17					$	335					$	15					$	4,036					$	32
Residential mortgage-backed securities - government issued						—						—						1,432						88						1,432						88
Residential mortgage-backed securities - government-sponsored enterprises						226						14						1,044						54						1,270						68
Commercial mortgage-backed securities - government-sponsored enterprises						1,926						80						—						—						1,926						80
						$	5,853					$	111					$	2,811					$	157					$	8,664					$	268

						As of December 31, 2022
						Less than 12 Months												12 Months or Longer												Total
						Fair Value						Unrecognized Losses						Fair Value						Unrecognized Losses						Fair Value						Unrecognized Losses
						(In Thousands)
Held-to-maturity:
Municipal securities						$	6,035					$	52					$	267					$	18					$	6,302					$	70
Residential mortgage-backed securities - government issued						1,518						107						—						—						1,518						107
Residential mortgage-backed securities - government-sponsored enterprises						1,444						93						—						—						1,444						93
Commercial mortgage-backed securities - government-sponsored enterprises						1,904						102						—						—						1,904						102
						$	10,901					$	354					$	267					$	18					$	11,168					$	372

On January 1, 2023, the Corporation adopted ASU 2016-13, which replaced the legacy GAAP other-than-temporary impairment (“OTTI”) model with a credit loss model. ASU 2016-13 requires an allowance on lifetime expected credit losses on held to maturity debt securities. As of January 1, 2023 and March 31, 2023, the Corporation estimated the expected credit losses to be immaterial based on the composition of the securities portfolio.

The credit loss model under ASU 2016-13, applicable to AFS debt securities, requires the recognition of credit losses through an allowance account, but retains the concept from the OTTI model that credit losses are recognized once securities become

impaired. See Note 1, “Summary of Significant Accounting Policies” to the consolidated financial statement included in this

Form 10-Q, for a discussion of the impact of the adoption of ASU 2016-13.

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