XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
 
The following tables summarize securities available-for-sale and securities held-to-maturity as of December 31, 2019 and 2018.
 
 
December 31, 2019
 
 
Amortized
 
Gross Unrealized
 
Fair
 
 
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


 
 
December 31, 2019
 
 
Amortized
 
Gross Unrealized
 
Fair
 
 
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

 
 
 
December 31, 2018
 
 
Amortized
 
Gross Unrealized
 
Fair
 
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
109,631

 
$
20

 
$
(2,066
)
 
$
107,585

Municipal securities
 
97,090

 
90

 
(4,674
)
 
92,506

Agency mortgage-backed securities
 
242,293

 
162

 
(8,721
)
 
233,734

Private label mortgage-backed securities
 
9,199

 
—

 
(21
)
 
9,178

Asset-backed securities
 
5,002

 
—

 
(143
)
 
4,859

Corporate securities
 
36,678

 
—

 
(3,195
)
 
33,483

Total available-for-sale
 
$
499,893

 
$
272

 
$
(18,820
)
 
$
481,345



 
 
December 31, 2018
 
 
Amortized
 
Gross Unrealized
 
Fair
 
 
Cost
 
Gains
 
Losses
 
Value
Securities held-to-maturity
 
 

 
 

 
 

 
 

Municipal securities
 
$
10,157

 
$
—

 
$
(356
)
 
$
9,801

Corporate securities
 
12,593

 
80

 
(56
)
 
12,617

Total held-to-maturity
 
$
22,750

 
$
80

 
$
(412
)
 
$
22,418



 
The carrying value of securities at December 31, 2019 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
 
 
Amortized
Cost
 
Fair
Value
Within one year
 
$
30

 
$
31

One to five years
 
9,200

 
7,789

Five to ten years
 
81,237

 
80,175

After ten years
 
123,327

 
122,849

 
 
213,794

 
210,844

Agency mortgage-backed securities
 
264,142

 
261,440

Private label mortgage-backed securities
 
63,704

 
63,613

Asset-backed securities
 
5,000

 
4,955

Total
 
$
546,640

 
$
540,852


 
 
Held-to-Maturity
 
 
Amortized
Cost
 
Fair
Value
One to five years
 
$
998

 
$
1,005

Five to ten years
 
50,848

 
51,493

After ten years
 
10,032

 
10,062

Total
 
$
61,878

 
$
62,560


 
There were no gross realized gains resulting from sales of available-for-sale securities recognized during the twelve months ended December 31, 2019, 2018, and 2017. There were gross realized losses of $0.5 million, $0.0 million, and $0.0 million resulting from sales of available-for-sale securities recognized during the twelve months ended December 31, 2019, 2018, and 2017, respectively.

As of December 31, 2019, the fair value of available-for-sale investment securities pledged as collateral was $469.0 million. The Company pledged the securities for various types of transactions, including FHLB advances, derivative financial instruments and to collateralize municipal deposits.
 
Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2019 and 2018 was $317.5 million and $469.8 million, which is approximately 53% and 93%, respectively, of the Company’s available-for-sale and held-to-maturity securities portfolio. These declines primarily resulted 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 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 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 maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2019.

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 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 maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2019.

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 December 31, 2019 and 2018:

 
 
December 31, 2019
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
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
)
 
 
December 31, 2019
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
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
)


 
 
December 31, 2018
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities available-for-sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
69,798

 
$
(893
)
 
$
33,511

 
$
(1,173
)
 
$
103,309

 
$
(2,066
)
Municipals
 
23,747

 
(710
)
 
59,938

 
(3,964
)
 
83,685

 
(4,674
)
Agency mortgage-backed securities
 
47,000

 
(509
)
 
172,442

 
(8,212
)
 
219,442

 
(8,721
)
Private label mortgage-backed securities
 
9,177

 
(20
)
 
—

 
(1
)
 
9,177

 
(21
)
Asset-backed securities
 
4,859

 
(143
)
 
—

 
—

 
4,859

 
(143
)
Corporate securities
 
14,092

 
(586
)
 
19,391

 
(2,609
)
 
33,483

 
(3,195
)
Total
 
$
168,673

 
$
(2,861
)
 
$
285,282

 
$
(15,959
)
 
$
453,955

 
$
(18,820
)

  
 
 
December 31, 2018
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities held-to-maturity
 
 

 
 

 
 

 
 

 
 

 
 

Municipal securities
 
$
9,801

 
$
(356
)
 
$
—

 
$
—

 
$
9,801

 
$
(356
)
Corporate securities
 
6,037

 
(56
)
 
—

 
—

 
6,037

 
(56
)
Total
 
$
15,838

 
$
(412
)
 
$
—

 
$
—

 
$
15,838

 
$
(412
)


 Amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of income during the years ended December 31, 2019, 2018 and 2017 were as follows:
Details About Accumulated Other Comprehensive Loss Components
 
Amounts Reclassified from
Accumulated Other Comprehensive Loss
for the Year Ended December 31,
 
Affected Line Item in the
Statements of Income
 
2019
 
2018
 
2017
 
Unrealized gains and losses on securities available-for-sale
 
 

 
 

 
 
 
 
Loss realized in earnings
 
$
(458
)
 
$
—

 
$
(8
)
 
Loss on sale of securities
Total reclassified amount before tax
 
(458
)
 
—

 
(8
)
 
Income before income taxes
Tax benefit
 
(124
)
 
—

 
(3
)
 
Income tax provision
Total reclassifications out of accumulated other comprehensive loss
 
$
(334
)
 
$
—

 
$
(5
)
 
Net Income