Equity Investments

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

EQUITY INVESTMENTS

On January 1, 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”. As a result of the adoption, the Company reclassified $469 thousand in net unrealized losses included in other comprehensive income and deferred tax assets to retained earnings on January 1, 2018. Equity investments with readily determinable fair values at December 31, 2019 consisted of mutual funds in the amount of $22.1 million and is included in “Equity investments” on the consolidated statements of financial condition. In 2019, the Company sold its equity stock in other institutions for $2.6 million. There was no change in fair value recorded on the equity investments sold. At December 31, 2018, equity investments with readily determinable fair values consisted of mutual funds and equity stock in other institutions in the amount of $21.5 million and $1.9 million, respectively and is included in “Equity investments” on the consolidated statements of financial condition.

The change in fair values for equity investments with readily determinable fair values for the years ended December 31, 2019 and 2018 were recorded as other noninterest income as summarized in the table below:



	Year ended December 31,
	2019		2018
	(Dollars in thousands)
Net change in fair value recorded during the period on equity investments with readily determinable fair value	$	1,288	$	1,449
Net change in fair value recorded on equity investments sold during the period	—		—
Net change in fair value on equity investments with readily determinable fair values	$	1,288	$	1,449

At December 31, 2019 and 2018 the Company also had equity investments without readily determinable fair value which are carried at cost less any determined impairment. The balance of these investments is adjusted for changes in subsequent observable prices. At December 31, 2019, the total balance of equity investments without readily determinable fair values included in “Equity investments” on the consolidated statements of financial condition was $27.0 million, consisting of $370 thousand in correspondent bank stock, $1.0 million in CDFI investments, and $25.6 million in CRA investments. At December 31, 2018, the total balance of equity investments without readily determinable fair values included in “Equity investments” on the consolidated statements of financial condition was $26.4 million, consisting of $370 thousand in correspondent bank stock, $1.0 million in CDFI investments, and $25.1 million in CRA investments. The Company had no impairments or subsequent observable price changes for investments without readily determinable fair values for twelve months ended December 31, 2019 and 2018.