Note 4 - Securities

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 4 - SECURITIES

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2022 and December 31, 2021 are summarized as follows:

	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
March 31, 2022	(In Thousands)
Debt Securities Available for Sale
U.S. Treasury Securities	$	6,005	$	14	$	(9	)	$	6,010
Government Agency Securities		14		-		-			14
Mortgage-backed securities		356,119		200		(17,185	)		339,134
State and municipal securities		20,350		23		(707	)		19,666
Corporate debt		420,826		4,075		(5,052	)		419,849
Total	$	803,314	$	4,312	$	(22,953	)	$	784,673
Debt Securities Held to Maturity
U.S. Treasury Securities	$	346,414	$	16	$	(14,370	)	$	332,060
Mortgage-backed securities		478,865		383		(19,542	)		459,706
State and municipal securities		8,025		-		(444	)		7,581
Total	$	833,304	$	399	$	(34,356	)	$	799,347
December 31, 2021
Debt Securities Available for Sale
U.S. Treasury Securities	$	9,003	$	101	$	-		$	9,104
Government Agency Securities		6,022		19		-			6,041
Mortgage-backed securities		424,372		3,474		(2,685	)		425,161
State and municipal securities		21,531		173		(70	)		21,634
Corporate debt		369,618		11,659		(647	)		380,630
Total	$	830,546	$	15,425	$	(3,402	)	$	842,570
Debt Securities Held to Maturity
U.S. Treasury Securities	$	149,263	$	25	$	(668	)	$	148,620
Mortgage-backed securities		310,641		5,251		(1,271	)		314,621
State and municipal securities		3,053		2		(10	)		3,045
Total	$	462,957	$	5,278	$	(1,949	)	$	466,286

The amortized cost and fair value of debt securities as of March 31, 2022 and December 31, 2021 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities.

	March 31, 2022				December 31, 2021
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Debt securities available for sale
Due within one year	$	26,302	$	26,389	$	32,913	$	33,232
Due from one to five years		64,413		64,291		31,760		32,307
Due from five to ten years		346,386		344,765		338,407		348,594
Due after ten years		10,094		10,094		3,094		3,276
Mortgage-backed securities		356,119		339,134		424,372		425,161
	$	803,314	$	784,673	$	830,546	$	842,570
Debt securities held to maturity
Due within one year	$	250	$	250	$	250	$	250
Due from one to five years		225,279		217,987		49,663		49,419
Due from five to ten years		128,910		121,403		102,403		101,996
Mortgage-backed securities		478,865		459,706		310,641		314,621
Total	$	833,304	$	799,347	$	462,957	$	466,286

All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

The carrying value of investment securities pledged to secure public funds on deposit and for other purposes as required by law was $490.8 million and $481.3 million as of March 31, 2022 and December 31, 2021, respectively.

The following table identifies, as of March 31, 2022 and December 31, 2021, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months.

	Less Than Twelve Months					Twelve Months or More					Total
	Gross					Gross					Gross
	Unrealized					Unrealized					Unrealized
	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
	(In Thousands)
March 31, 2022
Debt Securities available for sale
U.S. Treasury Securities	$	(9	)	$	2,997	$	-		$	-	$	(9	)	$	2,997
Mortgage-backed securities		(13,930	)		273,725		(3,254	)		45,759		(17,185	)		319,485
State and municipal securities		(664	)		11,203		(43	)		427		(707	)		11,630
Corporate debt		(5,052	)		191,204		-			-		(5,052	)		191,204
Total	$	(19,655	)	$	479,129	$	(3,297	)	$	46,186	$	(22,953	)	$	525,315
Debt Securities held to maturity
U.S. Treasury Securities	$	(14,370	)	$	284,429	$	-		$	-	$	(14,370	)	$	284,429
Mortgage-backed securities		(18,096	)		407,781		(1,446	)		14,767		(19,542	)		422,549
State and municipal securities		(444	)		7,331		-			-		(444	)		7,331
Total	$	(32,910	)	$	699,541	$	(1,446	)	$	14,767	$	(34,356	)	$	714,308
December 31, 2021
Debt Securities available for sale
Mortgage-backed securities		(2,685	)		303,297		-			-		(2,685	)		303,297
State and municipal securities		(61	)		5,198		(9	)		228		(70	)		5,426
Corporate debt		(647	)		61,677		-			-		(647	)		61,677
Total	$	(3,393	)	$	370,172	$	(9	)	$	228	$	(3,402	)	$	370,400
Debt Securities held to maturity
U.S. Treasury Securities	$	(668	)	$	123,698	$	-		$	-	$	(668	)	$	123,698
Mortgage-backed securities		(1,271	)		134,192		-			-		(1,271	)		134,192
State and municipal securities		(10	)		482		-			-		(10	)		482
Total	$	(1,949	)	$	258,372	$	-		$	-	$	(1,949	)	$	258,372

At March 31, 2022, no allowance for credit losses (“ACL”) has been recognized on available for sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available for sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased. Furthermore, the Company performed an analysis that determined that the following securities have a zero expected credit loss: U.S. Treasury Securities; State and Municipal Securities and, Agency-Backed Securities, including securities issued by GNMA, FNMA, FHLB, FFCB and SBA. All of the U.S. Treasury and Agency-Backed Securities have the full faith and credit backing of the United States Government or one of its agencies. All debt securities in an unrealized loss position as of March 31, 2022 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.

	Three Months Ended March 31,
	2022			2021
	(In Thousands)
Sale proceeds	$	45,394		$	-
Gross realized losses		(3,335	)		-
Net realized losses	$	(3,335	)	$	-

Restricted equity securities are comprised entirely of a restricted investment in Federal Home Loan Bank of Atlanta stock for membership requirement.