XML 26 R16.htm IDEA: XBRL DOCUMENT
v3.21.2

Securities | 9 Months Ended
--- | ---
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2021 and December 31, 2020.
|  | September 30, 2021
|  | Amortized |  | Gross Unrealized |  | Fair
(in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Securities available-for-sale |  |  |  |  |  |  |  |
U.S. Government-sponsored agencies |  | $ | 53,380 |  |  | $ | 234 |  |  | $ | (1,159) |  |  | $ | 52,455 |
Municipal securities |  | 76,528 |  |  | 1,086 |  |  | (164) |  |  | 77,450 |
Agency mortgage-backed securities |  | 432,613 |  |  | 2,364 |  |  | (5,092) |  |  | 429,885 |
Private label mortgage-backed securities |  | 19,997 |  |  | 238 |  |  | — |  |  | 20,235 |
Asset-backed securities |  | 5,000 |  |  | 5 |  |  | — |  |  | 5,005 |
Corporate securities |  | 48,460 |  |  | 965 |  |  | (448) |  |  | 48,977 |
Total available-for-sale |  | $ | 635,978 |  |  | $ | 4,892 |  |  | $ | (6,863) |  |  | $ | 634,007 |
|  | September 30, 2021
|  | Amortized |  | Gross Unrealized |  | Fair
(in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Securities held-to-maturity |  |  |  |  |  |  |  |
Municipal securities |  | $ | 14,538 |  |  | $ | 781 |  |  | $ | — |  |  | $ | 15,319 |
Corporate securities |  | 47,591 |  |  | 1,427 |  |  | — |  |  | 49,018 |
Total held-to-maturity |  | $ | 62,129 |  |  | $ | 2,208 |  |  | $ | — |  |  | $ | 64,337 |
|  | December 31, 2020
|  | Amortized |  | Gross Unrealized |  | Fair
(in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Securities available-for-sale |  |  |  |  |  |  |  |
U.S. Government-sponsored agencies |  | $ | 61,765 |  |  | $ | 432 |  |  | $ | (1,652) |  |  | $ | 60,545 |
Municipal securities |  | 82,757 |  |  | 463 |  |  | (731) |  |  | 82,489 |
Agency mortgage-backed securities |  | 241,795 |  |  | 4,591 |  |  | (2,465) |  |  | 243,921 |
Private label mortgage-backed securities |  | 57,268 |  |  | 850 |  |  | (2) |  |  | 58,116 |
Asset-backed securities |  | 5,000 |  |  | — |  |  | (39) |  |  | 4,961 |
Corporate securities |  | 48,419 |  |  | 771 |  |  | (1,594) |  |  | 47,596 |
Total available-for-sale |  | $ | 497,004 |  |  | $ | 7,107 |  |  | $ | (6,483) |  |  | $ | 497,628 |
|  | December 31, 2020
|  | Amortized |  | Gross Unrealized |  | Fair
(in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Securities held-to-maturity |  |  |  |  |  |  |  |
Municipal securities |  | $ | 14,571 |  |  | $ | 746 |  |  | $ | — |  |  | $ | 15,317 |
Corporate securities |  | 53,652 |  |  | 610 |  |  | (127) |  |  | 54,135 |
Total held-to-maturity |  | $ | 68,223 |  |  | $ | 1,356 |  |  | $ | (127) |  |  | $ | 69,452 |
The carrying value of securities at September 30, 2021 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 |  | $ | — |  |  | $ | — |
One to five years |  | 34,855 |  |  | 32,935 |
Five to ten years |  | 64,591 |  |  | 64,429 |
After ten years |  | 78,922 |  |  | 81,518 |
|  | 178,368 |  |  | 178,882 |
Agency mortgage-backed securities |  | 432,613 |  |  | 429,885 |
Private label mortgage-backed securities |  | 19,997 |  |  | 20,235 |
Asset-backed securities |  | 5,000 |  |  | 5,005 |
Total |  | $ | 635,978 |  |  | $ | 634,007 |
|  | Held-to-Maturity
(in thousands) |  | Amortized Cost |  | Fair Value
One to five years |  | $ | 5,793 |  |  | $ | 5,976 |
Five to ten years |  | 44,655 |  |  | 46,320 |
After ten years |  | 11,681 |  |  | 12,041 |
Total |  | $ | 62,129 |  |  | $ | 64,337 |
There were no gross gains or losses resulting from the sale of available-for-sale securities during the three and nine months ended September 30, 2021. There were $0.1 million of gross gains resulting from the sale of available-for-sale securities during the three and nine months ended September 30, 2020. Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2021 and December 31, 2020 was $462.4 million and $226.5 million, which was approximately 66% and 40%, respectively, of the Company’s AFS and HTM securities portfolios. As of September 30, 2021, the Company’s security portfolio consisted of 441 securities, of which 167 were in an unrealized loss position. The unrealized losses are related to the categories noted below. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced, with the resulting loss recognized in net income in the period the other-than-temporary impairment (“OTTI”) is identified. U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. 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 September 30, 2021. Agency Mortgage-Backed, Private Label Mortgage-Backed and Asset-Backed Securities 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 terms 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 September 30, 2021. 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 September 30, 2021 and December 31, 2020.
|  | September 30, 2021
|  | 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 |  | $ | 2,931 |  |  | $ | (69) |  |  | $ | 44,034 |  |  | $ | (1,090) |  |  | $ | 46,965 |  |  | $ | (1,159) |
Municipal securities |  | 61,658 |  |  | (164) |  |  | — |  |  | — |  |  | 61,658 |  |  | (164) |
Agency mortgage-backed securities |  | 320,805 |  |  | (4,085) |  |  | 18,818 |  |  | (1,007) |  |  | 339,623 |  |  | (5,092) |
Corporate securities |  | 4,998 |  |  | (2) |  |  | 9,552 |  |  | (446) |  |  | 14,550 |  |  | (448) |
Total |  | $ | 390,392 |  |  | $ | (4,320) |  |  | $ | 72,404 |  |  | $ | (2,543) |  |  | $ | 462,796 |  |  | $ | (6,863) |
There were no securities held-to-maturity with gross unrealized losses at September 30, 2021.
|  | December 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 |  | $ | — |  |  | $ | — |  |  | $ | 52,351 |  |  | $ | (1,652) |  |  | $ | 52,351 |  |  | $ | (1,652) |
Municipal securities |  | 18,731 |  |  | (114) |  |  | 23,519 |  |  | (617) |  |  | 42,250 |  |  | (731) |
Agency mortgage-backed securities |  | 38,987 |  |  | (276) |  |  | 45,297 |  |  | (2,189) |  |  | 84,284 |  |  | (2,465) |
Private label mortgage-backed securities |  | 1,277 |  |  | (1) |  |  | 558 |  |  | (1) |  |  | 1,835 |  |  | (2) |
Asset-backed securities |  | — |  |  | — |  |  | 4,961 |  |  | (39) |  |  | 4,961 |  |  | (39) |
Corporate securities |  | — |  |  | — |  |  | 20,406 |  |  | (1,594) |  |  | 20,406 |  |  | (1,594) |
Total |  | $ | 58,995 |  |  | $ | (391) |  |  | $ | 147,092 |  |  | $ | (6,092) |  |  | $ | 206,087 |  |  | $ | (6,483) |
|  | December 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 |  | 17,456 |  |  | (126) |  |  | 2,999 |  |  | (1) |  |  | 20,455 |  |  | (127) |
Total |  | $ | 17,456 |  |  | $ | (126) |  |  | $ | 2,999 |  |  | $ | (1) |  |  | $ | 20,455 |  |  | $ | (127) |
There were no amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statements of income during the three and nine months ended September 30, 2021. Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and nine months ended September 30, 2020 were as follows:
(in thousands) Details About Accumulated Other Comprehensive Loss Components |  |  |  |  |  |  |  |  | Affected Line Item in the Statements of Income
| Three Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2021 |  | Three Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2020 |  |
Realized gains on securities available-for-sale |  |  |  |  |  |  |  |  |  |  |
Gain realized in earnings |  | $ | — |  |  | $ | — |  |  | $ | 98 |  |  | $ | 139 |  |  |  | Gain on sale of securities
Total reclassified amount before tax |  | — |  |  | — |  |  | 98 |  |  | 139 |  |  |  | Income Before Income Taxes
Tax expense |  | — |  |  | — |  |  | 26 |  |  | 38 |  |  |  | Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss |  | $ | — |  |  | $ | — |  |  | $ | 72 |  |  | $ | 101 |  |  |  | Net Income

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