Note 4 - Securities

9 Months Ended

Sep. 30, 2023

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 September 30, 2023 and December 31, 2022 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
September 30, 2023	(In Thousands)
Debt Securities Available-for-Sale
U.S. Treasury Securities	$	280,807	$	7	$	(96	)	$	280,718
Mortgage-backed securities		251,001		-		(35,760	)		215,241
State and municipal securities		12,762		1		(1,570	)		11,193
Corporate debt		375,673		-		(48,023	)		327,650
Total	$	920,243	$	8	$	(85,449	)	$	834,802
Debt Securities Held-to-Maturity
U.S. Treasury Securities	$	558,196	$	-	$	(35,014	)	$	523,182
Mortgage-backed securities		477,646		-		(74,928	)		402,718
State and municipal securities		8,057		-		(951	)		7,106
Total	$	1,043,899	$	-	$	(110,893	)	$	933,006
December 31, 2022
Debt Securities Available-for-Sale
U.S. Treasury Securities	$	3,002	$	-	$	(33	)	$	2,969
Government Agency Securities		9		-		-			9
Mortgage-backed securities		282,480		5		(32,782	)		249,703
State and municipal securities		15,205		1		(1,597	)		13,609
Corporate debt		406,680		-		(28,155	)		378,525
Total	$	707,376	$	6	$	(62,567	)	$	644,815
Debt Securities Held-to-Maturity
U.S. Treasury Securities	$	507,151	$	-	$	(36,197	)	$	470,954
Mortgage-backed securities		518,929		7		(60,960	)		457,976
State and municipal securities		8,041		-		(1,018	)		7,023
Total	$	1,034,121	$	7	$	(98,175	)	$	935,953

The amortized cost and fair value of debt securities as of September 30, 2023 and December 31, 2022 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.

	September 30, 2023				December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Debt securities available-for-sale
Due within one year	$	292,131	$	291,740	$	24,712	$	24,432
Due from one to five years		66,668		63,623		58,554		57,092
Due from five to ten years		307,443		261,919		338,630		311,100
Due after ten years		3,000		2,279		3,000		2,488
Mortgage-backed securities		251,001		215,241		282,480		249,703
	$	920,243	$	834,802	$	707,376	$	644,815
Debt securities held-to-maturity
Due within one year	$	309,311	$	304,931	$	250	$	250
Due from one to five years		128,708		115,557		386,465		366,095
Due from five to ten years		128,234		109,800		128,477		111,632
Mortgage-backed securities		477,646		402,718		518,929		457,976
	$	1,043,899	$	933,006	$	1,034,121	$	935,953

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.

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

The carrying value of investment securities pledged to secure public funds on deposit and for other purposes as required by law as of September 30, 2023 and December 31, 2022 was $1.45 billion and $789.3 million, respectively.

The following table identifies, as of September 30, 2023 and December 31, 2022, 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)
September 30, 2023
Debt Securities available-for-sale
U.S. Treasury Securities	$	(96	)	$	231,360	$	-		$	-	$	(96	)	$	231,360
Mortgage-backed securities		(33	)		1,137		(35,727	)		214,104		(35,760	)		215,241
State and municipal securities		-			-		(1,570	)		10,462		(1,570	)		10,462
Corporate debt		(772	)		13,660		(47,251	)		305,631		(48,023	)		319,291
Total	$	(901	)	$	246,157	$	(84,548	)	$	530,197	$	(85,449	)	$	776,354
Debt Securities held-to-maturity
U.S. Treasury Securities	$	(6	)	$	49,669	$	(35,008	)	$	473,513	$	(35,014	)	$	523,182
Mortgage-backed securities		(38	)		846		(74,890	)		398,551		(74,928	)		399,396
State and municipal securities		-			-		(951	)		6,856		(951	)		6,856
Total	$	(44	)	$	50,515	$	(110,849	)	$	878,920	$	(110,893	)	$	929,434
December 31, 2022
Debt Securities available-for-sale
U.S. Treasury Securities	$	(33	)	$	2,969	$	-		$	-	$	(33	)	$	2,969
Government Agency Securities		-			9		-			-		-			9
Mortgage-backed securities		(3,473	)		60,234		(29,309	)		189,109		(32,782	)		249,343
State and municipal securities		(186	)		5,283		(1,411	)		7,880		(1,597	)		13,163
Corporate debt		(18,566	)		304,254		(9,589	)		63,411		(28,155	)		367,666
Total	$	(22,258	)	$	372,749	$	(40,309	)	$	260,400	$	(62,567	)	$	633,149
Debt Securities held-to-maturity
U.S. Treasury Securities	$	(12,662	)	$	295,383	$	(23,537	)	$	175,570	$	(36,197	)	$	470,953
Mortgage-backed securities		(31,367	)		278,746		(29,592	)		174,842		(60,960	)		453,588
State and municipal securities		(544	)		4,443		(474	)		2,330		(1,018	)		6,773
Total	$	(44,573	)	$	578,572	$	(53,603	)	$	352,742	$	(98,175	)	$	931,314

At September 30, 2023 and 2022, no allowance for credit losses 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. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to U.S. Treasury and residential mortgage-backed securities issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by States and political subdivisions and other held-to-maturity securities, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts.  Historical loss rates associated with securities having similar grades as those in our portfolio have generally not been significant. Furthermore, as of September 30, 2023 and 2022, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for held-to-maturity State and Municipal Securities as such amount is not material at September 30, 2023 and 2022. All debt securities in an unrealized loss position as of September 30, 2023 continue to perform as scheduled and the Company does not believe there is an expected credit loss or that an allowance for credit loss on these debt securities is necessary.

The following table summarizes information about sales of debt securities available-for-sale.

	Nine Months Ended September 30,
	2023		2022
	(In Thousands)
Sale proceeds	$	-	$	75,036
Gross realized gains	$	-	$	-
Gross realized losses		-		(6,168	)
Net realized gain (loss)	$	-	$	(6,168	)