XML 23 R12.htm IDEA: XBRL DOCUMENT v3.21.2
Investment Securities
 6 Months Ended
Jun. 30, 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 
June 30, 2021                    
US Treasury securities  $15,722   $—   $274   $15,448 
Mortgage-backed securities   317,506    5,377    1,642    321,241 
Small Business Administration pools   35,558    728    61    36,225 
State and local government   84,216    5,417    295    89,338 
Corporate and other securities   6,525    174    —    6,699 
   $459,527   $11,696   $2,272   $468,951 
                     
       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 June 30, 2021 or December 31, 2020.

 

During the three and six months ended June 30, 2021 and 2020, the Company did not receive any proceeds from the sale of investment securities available-for-sale. For the three and six months ended June 30, 2021, and 2020, there were no gross realized gains or losses from the sale of investment securities available-for-sale.

 

At June 30, 2021, corporate and other securities available-for-sale included the following at fair value: corporate fixed-to-float bonds at $6.7 million, mutual funds at $10.2 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 six months ended June 30, 2021 and 2020, a $2.2 thousand gain and a $2.1 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 and a venture fund at $20.0 thousand at June 30, 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 June 30, 2021 and December 31, 2020.

 

(Dollars in thousands)  Less than 12 months   12 months or more   Total 
June 30, 2021  Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
Available-for-sale securities:  Value   Loss   Value   Loss   Value   Loss 
                         
US Treasury Securities  $15,448   $274   $—   $—   $15,448   $274 
Mortgage-backed securities   145,058    1,564    12,170    78    157,228    1,642 
Small Business Administration pools   6,151    61    943    —    7,094    61 
State and local government   13,977    295    —    —    13,977    295 
Total  $180,634   $2,194   $13,113   $78   $193,747   $2,272 
                               
(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 $353.1 million and $257.3 million and approximate fair value of $357.5 million and $265.4 million at June 30, 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 June 30, 2021.

 

Non-agency Mortgage Backed Securities: The Company held private label mortgage-backed securities (“PLMBSs”), including CMOs, at June 30, 2021 with an amortized cost of $51.2 thousand and approximate fair value of $49.1 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 June 30, 2021.

 

The following sets forth the amortized cost and fair value of investment securities at June 30, 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 
June 30, 2021  Amortized   Fair 
(Dollars in thousands)  Cost   Value 
Due in one year or less  $15,519   $15,768 
Due after one year through five years   159,613    163,332 
Due after five years through ten years   162,819    168,061 
Due after ten years   121,576    121,790 
Total  $459,527   $468,951