Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2020 and December 31, 2019.

	September 30, 2020
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	65,007	$	489	$	(1,814)	$	63,682
Municipal securities	87,365		3,296		(4,240)		86,421
Agency mortgage-backed securities	250,755		5,773		(3,236)		253,292
Private label mortgage-backed securities	71,519		1,128		(21)		72,626
Asset-backed securities	5,000		—		(79)		4,921
Corporate securities	48,406		500		(1,537)		47,369
Total available-for-sale	$	528,052	$	11,186	$	(10,927)	$	528,311

	December 31, 2019
	Amortized		Gross Unrealized				Fair
(in thousands)	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

Schedule Of Held-To-Maturity Securities Reconciliation

	September 30, 2020
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Securities held-to-maturity
Municipal securities	$	14,582	$	746	$	—	$	15,328
Corporate securities	53,672		551		(375)		53,848
Total held-to-maturity	$	68,254	$	1,297	$	(375)	$	69,176

	December 31, 2019
	Amortized		Gross Unrealized				Fair
(in thousands)	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

Available-for-sale Securities

The carrying value of securities at September 30, 2020 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	31,197		26,893
Five to ten years	82,255		80,704
After ten years	87,326		89,875
	200,778		197,472
Agency mortgage-backed securities	250,755		253,292
Private label mortgage-backed securities	71,519		72,626
Asset-backed securities	5,000		4,921
Total	$	528,052	$	528,311

Held-to-maturity Securities

	Held-to-Maturity
(in thousands)	Amortized Cost		Fair Value
One to five years	$	2,869	$	2,989
Five to ten years	53,181		53,544
After ten years	12,204		12,643
Total	$	68,254	$	69,176

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

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 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 upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2020.

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, 2020 and December 31, 2019.

	September 30, 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	$	—	$	—	$	55,382	$	(1,814)	$	55,382	$	(1,814)
Municipal securities	61,269		(4,240)		—		—		61,269		(4,240)
Agency mortgage-backed securities	29,466		(361)		10,294		(2,875)		39,760		(3,236)
Private label mortgage-backed securities	2,410		(9)		1,026		(12)		3,436		(21)
Asset-backed securities	—		—		4,921		(79)		4,921		(79)
Corporate securities	—		—		20,463		(1,537)		20,463		(1,537)
Total	$	93,145	$	(4,610)	$	92,086	$	(6,317)	$	185,231	$	(10,927)

	September 30, 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	$	21,200	$	(375)	$	—	$	—	$	21,200	$	(375)
Total	$	21,200	$	(375)	$	—	$	—	$	21,200	$	(375)

	December 31, 2019
	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	$	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)

Held to Maturity, Continuous Unrealized Loss Position, Fair Value

	December 31, 2019
	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	13,977		(132)		—		—		13,977		(132)
Total	$	13,977	$	(132)	$	—	$	—	$	13,977	$	(132)

Schedule of Accumulated Other Comprehensive Income (Loss)

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 and September 30, 2019 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, 2020		Nine Months Ended September 30, 2020		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Realized gains (losses) on securities available-for-sale
Gain (loss) realized in earnings	$	98	$	139	$	—	$	(458)	Gain (loss) on sale of securities
Total reclassified amount before tax	98		139		—		(458)		Income Before Income Taxes
Tax expense (benefit)	26		38		—		(124)		Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss	$	72	$	101	$	—	$	(334)	Net Income

The components of accumulated other comprehensive loss, included in stockholders' equity, for the nine months ended September 30, 2020 and 2019, respectively, are presented in the table below.

(in thousands)	Available-For-Sale Securities		Cash Flow Hedges		Total
Balance, January 1, 2020	$	(4,388)	$	(9,803)	$	(14,191)
Net change in unrealized gain (loss)	6,187		(12,453)		(6,266)
Reclassification of gain realized and included in earnings	(139)		—		(139)
Accumulated other comprehensive income (loss) before income tax	1,660		(22,256)		(20,596)
Income tax provision (benefit)	2,096		(3,602)		(1,506)
Balance, September 30, 2020	$	(436)	$	(18,654)	$	(19,090)
Balance, January 1, 2019	$	(13,360)	$	(3,181)	$	(16,541)
Net change in unrealized gain (loss)	11,843		(12,689)		(846)
Reclassification of net loss realized and included in earnings	458		—		458
Accumulated other comprehensive loss before income tax	(1,059)		(15,870)		(16,929)
Income tax provision (benefit)	3,552		(3,426)		126
Balance, September 30, 2019	$	(4,611)	$	(12,444)	$	(17,055)

The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended September 30, 2020 and 2019, respectively, are presented in the table below.

(in thousands)	Available-For-Sale Securities		Cash Flow Hedges		Total
Balance, July 1, 2020	$	(1,388)	$	(19,750)	$	(21,138)
Net change in unrealized loss	1,386		1,514		2,900
Reclassification of gain realized and included in earnings	(98)		—		(98)
Accumulated other comprehensive loss before income tax	(100)		(18,236)		(18,336)
Income tax benefit	336		418		754
Balance, September 30, 2020	$	(436)	$	(18,654)	$	(19,090)
Balance, July 1, 2019	$	(5,488)	$	(10,090)	$	(15,578)
Net change in unrealized gain (loss)	1,266		(3,225)		(1,959)
Accumulated other comprehensive loss before income tax	(4,222)		(13,315)		(17,537)
Income tax (benefit) provision	389		(871)		(482)
Balance, September 30, 2019	$	(4,611)	$	(12,444)	$	(17,055)