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Securities

3 Months Ended

Mar. 31, 2024

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, 2024
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	14,239					$	—					$	(410)					13,829
U.S. government agency securities - government-sponsored enterprises						15,901						—						(463)						15,438
Municipal securities						40,304						—						(5,007)						35,297
Residential mortgage-backed securities - government issued						105,331						409						(2,871)						102,869
Residential mortgage-backed securities - government-sponsored enterprises						127,841						145						(11,754)						116,232
Commercial mortgage-backed securities - government issued						2,823						—						(469)						2,354
Commercial mortgage-backed securities - government-sponsored enterprises						32,603						44						(4,552)						28,095
						$	339,042					$	598					$	(25,526)					$	314,114

						As of December 31, 2023
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
						(In Thousands)
Available-for-sale:
U.S. treasuries						$	14,158					$	7					$	(389)					$	13,776
U.S. government agency securities - government-sponsored enterprises						27,986						35						(455)						27,566
Municipal securities						40,407						—						(4,526)						35,881
Residential mortgage-backed securities - government issued						69,441						1,000						(2,385)						68,056
Residential mortgage-backed securities - government-sponsored enterprises						131,321						281						(10,769)						120,833
Commercial mortgage-backed securities - government issued						2,995						—						(470)						2,525
Commercial mortgage-backed securities - government-sponsored enterprises						32,774						65						(4,470)						28,369
						$	319,082					$	1,388					$	(23,464)					$	297,006

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, 2024
						Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	4,017					$	—					$	(57)					$	3,960
Residential mortgage-backed securities - government issued						1,114						—						(73)						1,041
Residential mortgage-backed securities - government-sponsored enterprises						996						—						(57)						939
Commercial mortgage-backed securities - government-sponsored enterprises						2,004						—						(96)						1,908
						$	8,131					$	—					$	(283)					$	7,848

						As of December 31, 2023
						Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Fair Value
						(In Thousands)
Held-to-maturity:
Municipal securities						$	4,210					$	4					$	(41)					$	4,173
Residential mortgage-backed securities - government issued						1,211						—						(76)						1,135
Residential mortgage-backed securities - government-sponsored enterprises						1,078						—						(53)						1,025
Commercial mortgage-backed securities - government-sponsored enterprises						2,004						—						(82)						1,922
						$	8,503					$	4					$	(252)					$	8,255

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. The Corporation sold five available-for-sale securities during the three months ended March 31, 2024. There were no sales of available-for-sale securities during the three months ended March 31, 2023.

At March 31, 2024 and December 31, 2023, securities with a fair value of $33.0 million and $45.4 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, 2024 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						$	18,655					$	18,645					$	870					$	870
Due in one year through five years						19,674						18,259						3,147						3,090
Due in five through ten years						10,553						9,736						—						—
Due in over ten years						21,562						17,924						—						—
						70,444						64,564						4,017						3,960
Residential mortgage-backed securities						233,172						219,101						2,110						1,980
Commercial mortgage-backed securities						35,426						30,449						2,004						1,908
						$	339,042					$	314,114					$	8,131					$	7,848

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, 2024 and December 31, 2023. At March 31, 2024, the Corporation held 182 available-for-sale securities that were in an unrealized loss position, 159 of which have been in a continuous unrealized loss position for twelve months or greater.

The Corporation 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, 2024 and 2023, 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, 2024
						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						$	9,252					$	3					$	4,577					$	407					$	13,829					$	410
U.S. government agency securities - government-sponsored enterprises						10,381						20						5,057						443						15,438						463
Municipal securities						—						—						35,297						5,007						35,297						5,007
Residential mortgage-backed securities - government issued						37,001						409						17,270						2,462						54,271						2,871
Residential mortgage-backed securities - government-sponsored enterprises						20,280						331						86,461						11,423						106,741						11,754
Commercial mortgage-backed securities - government issued						—						—						2,354						469						2,354						469
Commercial mortgage-backed securities - government-sponsored enterprises						—						—						27,102						4,552						27,102						4,552
						$	76,914					$	763					$	178,118					$	24,763					$	255,032					$	25,526

						As of December 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						$	—					$	—					$	4,595					$	389					$	4,595					$	389
U.S. government agency securities - government-sponsored enterprises						13,370						30						3,076						425						16,446						455
Municipal securities						—						—						35,881						4,526						35,881						4,526
Residential mortgage-backed securities - government issued						13,178						160						13,819						2,225						26,997						2,385
Residential mortgage-backed securities - government-sponsored enterprises						19,925						285						78,086						10,484						98,011						10,769
Commercial mortgage-backed securities - government issued						—						—						2,525						470						2,525						470
Commercial mortgage-backed securities - government-sponsored enterprises						893						20						26,465						4,450						27,358						4,470
						$	47,366					$	495					$	164,447					$	22,969					$	211,813					$	23,464

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, 2024 and December 31, 2023. At March 31, 2024, the Corporation held 25 held-to-maturity securities that were in an unrealized loss position, 21 of which have been in a continuous loss position for twelve months or greater. Management assesses held-to-maturity 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, specifically changes in interest rates. Accordingly, no credit loss provision was recorded in the unaudited Consolidated Statements of Income for the three months ended March 31, 2024 and 2023.

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, 2024
						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						$	1,655					$	12					$	1,765					$	45					$	3,420					$	57
Residential mortgage-backed securities - government issued						—						—						1,041						73						1,041						73
Residential mortgage-backed securities - government-sponsored enterprises						—						—						939						57						939						57
Commercial mortgage-backed securities - government-sponsored enterprises						—						—						1,908						96						1,908						96
						$	1,655					$	12					$	5,653					$	271					$	7,308					$	283

						As of December 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						$	1,424					$	4					$	2,234					$	37					$	3,658					$	41
Residential mortgage-backed securities - government issued						—						—						1,135						76						1,135						76
Residential mortgage-backed securities - government-sponsored enterprises						—						—						1,025						53						1,025						53
Commercial mortgage-backed securities - government-sponsored enterprises						—						—						1,922						82						1,922						82
						$	1,424					$	4					$	6,316					$	248					$	7,740					$	252

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- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

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-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
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