XML 22 R12.htm IDEA: XBRL DOCUMENT

Investment Securities

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 3—Investment Securities

The amortized cost and estimated fair values of investment securities are summarized below:

AVAILABLE-FOR-SALE:

						Gross				Gross
		Amortized				Unrealized				Unrealized
(Dollars in thousands)		Cost				Gains				Losses				Fair Value
March 31, 2021
US Treasury securities		$	15,715			$	—			$	704			$	15,011
Government Sponsored Enterprises			999				3				—				1,002
Mortgage-backed securities			257,874				4,899				1,867				260,906
Small Business Administration pools			37,115				685				18				37,782
State and local government			84,383				4,554				1,116				87,821
Corporate and other securities			3,274				52				—				3,326
		$	399,360			$	10,193			$	3,705			$	405,848

						Gross				Gross
		Amortized				Unrealized				Unrealized
(Dollars in thousands)		Cost				Gains				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

There were no investment securities listed as held-to-maturity as of March 31, 2021 or December 31, 2020.

During the three months ended March 31, 2021 and 2020, the Company did not receive any proceeds from the sale of investment securities available-for-sale. For the three months ended March 31, 2021, and 2020 there were no gross realized gains from the sale of investment securities available-for-sale and no gross realized losses.

At March 31, 2021, 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 $9.7 thousand, and foreign debt of $10.0 thousand. As required by Accounting Standards Update (“ASU”) 2016-01-Financial Instruments-Overall (Subtopic 825-10), the Company measured its equity investments at fair value with changes in the fair value recognized through net income. For the three months ended March 31, 2021 and 2020, a $1.7 thousand gain and a $3.8 thousand loss were recognized on a mutual fund, respectively. 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 fund at $8.0 thousand and foreign debt of $10.0 thousand. Other investments, at cost, include Federal Home Loan Bank (“FHLB”) stock in the amount of $698.3 thousand and corporate stock in the amount of $1.0 million at March 31, 2021. The Company held $1.1 million of FHLB stock and $1.0 million in corporate stock at December 31, 2020.

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 March 31, 2021 and December 31, 2020.


(Dollars in thousands)		Less than 12 months								12 months or more								Total
March 31, 2021		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Available-for-sale securities:		Value				Loss				Value				Loss				Value				Loss

US Treasury Securities		$	15,011			$	704			$	—			$	—			$	15,011			$	704
Mortgage-backed securities			99,435				1,842				1,374				25				100,809				1,867
Small Business Administration pools			486				2				1,299				16				1,785				18
State and local government			21,854				1,116				—				—				21,854				1,116
Total		$	136,786			$	3,664			$	2,673			$	41			$	139,459			$	3,705

(Dollars in thousands)		Less than 12 months								12 months or more								Total
December 31, 2020		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Available-for-sale securities:		Value				Loss				Value				Loss				Value				Loss

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

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 $295.0 million and $257.3 million and approximate fair value of $298.7 million and $265.4 million at March 31, 2021 and December 31, 2020, respectively. Unrealized losses on certain of these investments are not considered to be “other than temporary,” and the Company has 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 GSEs. 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 that the Company will not be required to 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 March 31, 2021.

Non-agency Mortgage Backed Securities: The Company held private label mortgage-backed securities (“PLMBSs”), including CMOs, at March 31, 2021 with an amortized cost of $53.0 thousand and approximate fair value of $50.8 thousand. The Company held PLMBSs, including CMOs, at December 31, 2020 with an amortized cost of $57.4 thousand and approximate fair value of $54.7 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.

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 other-than-temporarily impaired at March 31, 2021.

The following sets forth the amortized cost and fair value of investment securities at March 31, 2021 by contractual maturity. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. MBSs are based on average life at estimated prepayment speeds.

		Available-for-sale
March 31, 2021		Amortized				Fair
(Dollars in thousands)		Cost				Value
Due in one year or less		$	12,508			$	12,728
Due after one year through five years			138,484				142,260
Due after five years through ten years			180,804				183,025
Due after ten years			67,564				67,835
Total		$	399,360			$	405,848