XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

INVESTMENT SECURITIES | 12 Months Ended
--- | ---
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | Note 4—INVESTMENT SECURITIES The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE:
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 1,501 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1,502 |
Government Sponsored Enterprises |  |  | 996 |  |  |  | 10 |  |  |  | — |  |  |  | 1,006 |
Mortgage-backed securities |  |  | 222,739 |  |  |  | 7,375 |  |  |  | 185 |  |  |  | 229,929 |
Small Business Administration pools |  |  | 34,577 |  |  |  | 928 |  |  |  | 7 |  |  |  | 35,498 |
State and local government |  |  | 82,495 |  |  |  | 6,184 |  |  |  | 76 |  |  |  | 88,603 |
Corporate and other securities |  |  | 3,272 |  |  |  | 56 |  |  |  | — |  |  |  | 3,328 |
|  | $ | 345,580 |  |  | $ | 14,554 |  |  | $ | 268 |  |  | $ | 359,866 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 7,190 |  |  | $ | 16 |  |  | $ | 3 |  |  | $ | 7,203 |
Government Sponsored Enterprises |  |  | 984 |  |  |  | 17 |  |  |  | — |  |  |  | 1,001 |
Mortgage-backed securities |  |  | 182,736 |  |  |  | 1,490 |  |  |  | 640 |  |  |  | 183,586 |
Small Business Administration pools |  |  | 45,301 |  |  |  | 259 |  |  |  | 217 |  |  |  | 45,343 |
State and local government |  |  | 47,418 |  |  |  | 2,371 |  |  |  | 141 |  |  |  | 49,648 |
Other securities |  |  | 19 |  |  |  | — |  |  |  | — |  |  |  | 19 |
|  | $ | 283,648 |  |  | $ | 4,153 |  |  | $ | 1,001 |  |  | $ | 286,800 |
At December 31, 2020, corporate and other securities available-for-sale included the following at fair value: corporate fixed-to-float bonds at $3.3 million, mutual funds at $8.0 thousand and foreign debt of $10.0 thousand. At December 31, 2019, corporate and other securities available-for-sale included the following at fair value: mutual funds at $8.8 thousand and foreign debt of $10.0 thousand. Other investments, at cost, include Federal Home Loan Bank (“FHLB”) stock in the amount of $1.1 million and corporate stock in the amount of $1.0 million at December 31, 2020. The Company held $991.4 thousand of FHLB stock and $1.0 million in corporate stock at December 31, 2019. During the first quarter of 2019, the Company reclassified the portfolio of securities listed as held-to-maturity to available-for-sale. At the time of reclassification, the unrealized gain on securities was $124.3 thousand. There were no investment securities listed as held-to-maturity as of December 31, 2020. During the years ended December 31, 2020 and 2019, the Company received proceeds of $1.2 million and $44.4 million, respectively, from the sale of investment securities available-for-sale. For the year ended December 31, 2020, gross realized gains from the sale of investment securities available-for-sale amounted to $99.1 thousand and there were no gross realized losses. For the year ended December 31, 2019, gross realized gains from the sale of investment securities available-for-sale amounted to $355.6 thousand and gross realized losses amounted to $219.6 thousand. The tax (benefit) provision applicable to the net realized gain (loss) was approximately $21 thousand, 29 thousand, and ($72) thousand for 2020, 2019 and 2018, respectively. The amortized cost and fair value of investment securities at December 31, 2020, by expected maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. Mortgage-backed securities are included in the year corresponding with the remaining expected life. There were no Held-to-maturity securities as of December 31, 2020.
(Dollars in thousands) |  | Available-for-sale |
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 11,013 |  |  | $ | 11,163 |
Due after one year through five years |  |  | 139,664 |  |  |  | 144,358 |
Due after five years through ten years |  |  | 139,982 |  |  |  | 148,563 |
Due after ten years |  |  | 54,921 |  |  |  | 55,782 |
|  | $ | 345,580 |  |  | $ | 359,866 |
Securities with an amortized cost of $155.0 million and fair value of $161.5 million at December 31, 2020 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $138.6 million and fair value of $139.3 million at December 31, 2019 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2020 and December 31, 2019.
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
December 31, 2020 (Dollars in thousands) |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities |  | $ | 21,298 |  |  | $ | 152 |  |  | $ | 1,414 |  |  | $ | 33 |  |  | $ | 22,712 |  |  | $ | 185 |
Small Business Administration pools |  |  | — |  |  |  | — |  |  |  | 1,323 |  |  |  | 7 |  |  |  | 1,323 |  |  |  | 7 |
State and local government |  |  | 4,930 |  |  |  | 76 |  |  |  | — |  |  |  | — |  |  |  | 4,930 |  |  |  | 76 |
Total |  | $ | 26,228 |  |  | $ | 228 |  |  | $ | 2,737 |  |  | $ | 40 |  |  | $ | 28,965 |  |  | $ | 268 |
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
December 31, 2019 (Dollars in thousands) |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury |  | $ | — |  |  | $ | — |  |  | $ | 1,508 |  |  | $ | 3 |  |  | $ | 1,508 |  |  | $ | 3 |
Mortgage-backed securities |  |  | 57,175 |  |  |  | 485 |  |  |  | 12,419 |  |  |  | 155 |  |  |  | 69,594 |  |  |  | 640 |
Small Business Administration pools |  |  | 7,891 |  |  |  | 53 |  |  |  | 13,502 |  |  |  | 164 |  |  |  | 21,393 |  |  |  | 217 |
State and local government |  |  | 5,695 |  |  |  | 141 |  |  |  | — |  |  |  | — |  |  |  | 5,695 |  |  |  | 141 |
Total |  | $ | 70,761 |  |  | $ | 679 |  |  | $ | 27,429 |  |  | $ | 322 |  |  | $ | 98,190 |  |  | $ | 1,001 |
Government Sponsored Enterprise, Mortgage-Backed Securities: The Company owned mortgage-backed securities (“MBSs”), including collateralized mortgage obligations (“CMOs”), issued by government sponsored enterprises (“GSEs”) with an amortized cost of $257.3 million and $182.7 million and approximate fair value of $265.4 million and $183.6 million at December 31, 2020 and December 31, 2019, respectively. As of December 31, 2020, and December 31, 2019, all of the MBSs issued by GSEs were classified as “Available for Sale.” Unrealized losses on certain of these investments are not considered to be “other than temporary,” and we have the intent and ability to hold these until they mature or recover the current book value. The contractual cash flows of the investments are guaranteed by the GSE. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the Company does not intend to sell these securities and it is more likely than not the Company will not be required sell these securities before a recovery of its amortized cost, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at December 31, 2020. Non-agency Mortgage Backed Securities: The Company holds private label mortgage-backed securities (“PLMBSs”), including CMOs, at December 31, 2020 with an amortized cost of $57.4 thousand and approximate fair value of $54.7 thousand. The Company held private label mortgage-backed securities (“PLMBSs”), including CMOs, at December 31, 2019 with an amortized cost of $73.5 thousand and approximate fair value of $73.5 thousand. Management monitors each of these securities on a quarterly basis to identify any deterioration in the credit quality, collateral values and credit support underlying the investments. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, the financial condition and near term prospects of the issuer and any collateral underlying the relevant security. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. During the years ended December 31, 2020, December 31, 2019, and December 31, 2018, no OTTI charges were recorded in earnings for the PLMBS portfolio. State and Local Governments and Other: Management monitors these securities on a quarterly basis to identify any deterioration in the credit quality. Included in the monitoring is a review of the credit rating, a financial analysis and certain demographic data on the underlying issuer. The Company does not consider these securities to be OTTI at December 31, 2020 and December 31, 2019.

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 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 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration