XML 68 R27.htm IDEA: XBRL DOCUMENT v3.20.1
Securities (Tables)
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-for-sale Securities Reconciliation
The following tables summarize securities available-for-sale and securities held-to-maturity as of March 31, 2020 and December 31, 2019.
 
 
March 31, 2020
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
71,387

 
$
438

 
$
(1,821
)
 
$
70,004

Municipal securities
 
94,981

 
4,049

 
(4,211
)
 
94,819

Agency mortgage-backed securities
 
279,458

 
6,901

 
(3,727
)
 
282,632

Private label mortgage-backed securities
 
114,363

 
813

 
(152
)
 
115,024

Asset-backed securities
 
5,000

 
—

 
(287
)
 
4,713

Corporate securities
 
43,378

 
322

 
(2,210
)
 
41,490

Total available-for-sale
 
$
608,567

 
$
12,523

 
$
(12,408
)
 
$
608,682
Schedule Of Held-To-Maturity Securities Reconciliation
 
 
December 31, 2019
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities held-to-maturity
 
 

 
 

 
 

 
 

Municipal securities
 
$
10,142

 
$
226

 
$
—

 
$
10,368

Corporate securities
 
51,736

 
588

 
(132
)
 
52,192

Total held-to-maturity
 
$
61,878

 
$
814

 
$
(132
)
 
$
62,560

 
 
March 31, 2020
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities held-to-maturity
 
 

 
 

 
 

 
 

Municipal securities
 
$
14,617

 
$
1,061

 
$
—

 
$
15,678

Corporate securities
 
51,714

 
2,262

 
(186
)
 
53,790

Total held-to-maturity
 
$
66,331

 
$
3,323

 
$
(186
)
 
$
69,468

 
 
December 31, 2019
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
77,715

 
$
99

 
$
(1,942
)
 
$
75,872

Municipal securities
 
97,447

 
1,706

 
(1,501
)
 
97,652

Agency mortgage-backed securities
 
264,142

 
1,304

 
(4,006
)
 
261,440

Private label mortgage-backed securities
 
63,704

 
97

 
(188
)
 
63,613

Asset-backed securities
 
5,000

 
—

 
(45
)
 
4,955

Corporate securities
 
38,632

 
220

 
(1,532
)
 
37,320

Total available-for-sale
 
$
546,640

 
$
3,426

 
$
(9,214
)
 
$
540,852
Schedule of Classification of Available for Sale Securities Investment
The following tables summarize securities available-for-sale and securities held-to-maturity as of March 31, 2020 and December 31, 2019.
 
 
March 31, 2020
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
71,387

 
$
438

 
$
(1,821
)
 
$
70,004

Municipal securities
 
94,981

 
4,049

 
(4,211
)
 
94,819

Agency mortgage-backed securities
 
279,458

 
6,901

 
(3,727
)
 
282,632

Private label mortgage-backed securities
 
114,363

 
813

 
(152
)
 
115,024

Asset-backed securities
 
5,000

 
—

 
(287
)
 
4,713

Corporate securities
 
43,378

 
322

 
(2,210
)
 
41,490

Total available-for-sale
 
$
608,567

 
$
12,523

 
$
(12,408
)
 
$
608,682


 
 
March 31, 2020
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities held-to-maturity
 
 

 
 

 
 

 
 

Municipal securities
 
$
14,617

 
$
1,061

 
$
—

 
$
15,678

Corporate securities
 
51,714

 
2,262

 
(186
)
 
53,790

Total held-to-maturity
 
$
66,331

 
$
3,323

 
$
(186
)
 
$
69,468

 
 
December 31, 2019
 
 
Amortized
 
Gross Unrealized
 
Fair
(in thousands)
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
77,715

 
$
99

 
$
(1,942
)
 
$
75,872

Municipal securities
 
97,447

 
1,706

 
(1,501
)
 
97,652

Agency mortgage-backed securities
 
264,142

 
1,304

 
(4,006
)
 
261,440

Private label mortgage-backed securities
 
63,704

 
97

 
(188
)
 
63,613

Asset-backed securities
 
5,000

 
—

 
(45
)
 
4,955

Corporate securities
 
38,632

 
220

 
(1,532
)
 
37,320

Total available-for-sale
 
$
546,640

 
$
3,426

 
$
(9,214
)
 
$
540,852
Available-for-sale Securities
The carrying value of securities at March 31, 2020 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
Available-for-Sale
(in thousands)
 
Amortized
Cost
 
Fair
Value
Within one year
 
$
15

 
$
15

One to five years
 
19,032

 
15,068

Five to ten years
 
81,662

 
80,465

After ten years
 
109,037

 
110,765

 
 
209,746

 
206,313

Agency mortgage-backed securities
 
279,458

 
282,632

Private label mortgage-backed securities
 
114,363

 
115,024

Asset-backed securities
 
5,000

 
4,713

Total
 
$
608,567

 
$
608,682
Held-to-maturity Securities
 
 
Held-to-Maturity
(in thousands)
 
Amortized
Cost
 
Fair
Value
One to five years
 
$
1,505

 
$
1,584

Five to ten years
 
52,301

 
54,610

After ten years
 
12,525

 
13,274

Total
 
$
66,331

 
$
69,468
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2020.

The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2020 and December 31, 2019.
 
 
March 31, 2020
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
(in thousands)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities available-for-sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
3,274

 
$
(96
)
 
$
57,775

 
$
(1,725
)
 
$
61,049

 
$
(1,821
)
Municipal securities
 
61,974

 
(4,211
)
 
—

 
—

 
61,974

 
(4,211
)
Agency mortgage-backed securities
 
18,798

 
(317
)
 
13,516

 
(3,410
)
 
32,314

 
(3,727
)
Private label mortgage-backed securities
 
10,201

 
(122
)
 
2,639

 
(30
)
 
12,840

 
(152
)
Asset-backed securities
 
—

 
—

 
4,713

 
(287
)
 
4,713

 
(287
)
Corporate securities
 
9,274

 
(286
)
 
20,076

 
(1,924
)
 
29,350

 
(2,210
)
Total
 
$
103,521

 
$
(5,032
)
 
$
98,719

 
$
(7,376
)
 
$
202,240

 
$
(12,408
)
 
 
March 31, 2020
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
(in thousands)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities held-to-maturity
 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
$
2,814

 
$
(186
)
 
$
—

 
$
—

 
$
2,814

 
$
(186
)
Total
 
$
2,814

 
$
(186
)
 
$
—

 
$
—

 
$
2,814

 
$
(186
)

 
 
 
December 31, 2019
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
(in thousands)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities available-for-sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
4,820

 
$
(61
)
 
$
62,182

 
$
(1,881
)
 
$
67,002

 
$
(1,942
)
Municipal securities
 
1,279

 
(1,501
)
 
—

 
—

 
1,279

 
(1,501
)
Agency mortgage-backed securities
 
91,159

 
(829
)
 
83,212

 
(3,177
)
 
174,371

 
(4,006
)
Private label mortgage-backed securities
 
30,077

 
(180
)
 
2,884

 
(8
)
 
32,961

 
(188
)
Asset-backed securities
 
—

 
—

 
4,955

 
(45
)
 
4,955

 
(45
)
Corporate securities
 
—

 
—

 
22,985

 
(1,532
)
 
22,985

 
(1,532
)
Total
 
$
127,335

 
$
(2,571
)
 
$
176,218

 
$
(6,643
)
 
$
303,553

 
$
(9,214
)
Held to Maturity, Continuous Unrealized Loss Position, Fair Value
 
 
December 31, 2019
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
(in thousands)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities held-to-maturity
 
 

 
 

 
 

 
 

 
 

 
 

Corporate securities
 
13,977

 
(132
)
 
—

 
—

 
13,977

 
(132
)
Total
 
$
13,977

 
$
(132
)
 
$
—

 
$
—

 
$
13,977

 
$
(132
)
Schedule of Accumulated Other Comprehensive Income (Loss)
Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three months ended March 31, 2020 were as follows:

(in thousands)



Details About Accumulated Other Comprehensive Loss Components
 
 
 
Affected Line Item in the
Statements of Income
 
Three Months Ended March 31, 2020
 
Realized gains on securities available-for-sale
 
 

 
 
Gain realized in earnings
 
$
41

 
Gain on sale of securities
Total reclassified amount before tax
 
41

 
Income Before Income Taxes
Tax expense
 
11

 
Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss
 
$
30

 
Net Income

The components of accumulated other comprehensive loss, included in stockholders' equity, are presented in the table below.
(in thousands)
 
Available-For-Sale Securities
 
Cash Flow Hedges
 
Total
Balance, January 1, 2020
 
$
(4,388
)
 
$
(9,803
)
 
$
(14,191
)
Net change in unrealized gain (loss)
 
6,299

 
(13,458
)
 
(7,159
)
Reclassification of gain realized and included in earnings
 
(41
)
 
—

 
(41
)
Accumulated other comprehensive income (loss) before income tax
 
1,870

 
(23,261
)
 
(21,391
)
Income tax provision (benefit)
 
2,109

 
(3,634
)
 
(1,525
)
Balance, March 31, 2020
 
$
(239
)
 
$
(19,627
)
 
$
(19,866
)
 
 
 
 
 
 
 
Balance, January 1, 2019
 
$
(13,360
)
 
$
(3,181
)
 
$
(16,541
)
Net change in unrealized gain (loss)
 
6,910

 
(3,572
)
 
3,338

Accumulated other comprehensive loss before income tax
 
(6,450
)
 
(6,753
)
 
(13,203
)
Income tax provision (benefit)
 
1,930

 
(965
)
 
965

Balance, March 31, 2019
 
$
(8,380
)
 
$
(5,788
)
 
$
(14,168
)