XML 62 R48.htm IDEA: XBRL DOCUMENT v3.21.2
Investment Securities
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]    
Investment Securities
4. Investment Securities
The following tables present amortized cost and fair values of investments as of September 30, 2021, and December 31, 2020, respectively:
September 30, 2021Amortized costAccumulated unrealized gainsAccumulated unrealized lossesFair value
(in thousands)
Investment securities, held-to-maturity
U.S. government and government agencies and authorities$695 $42 $(10)$727 
Investment securities, available-for-sale
U.S. government and government agencies and authorities167,935 37 (647)167,325 
Total investment securities$168,630 $79 $(657)$168,052 
December 31, 2020Amortized costAccumulated unrealized gainsAccumulated unrealized lossesFair value
(in thousands)
Investment securities, held-to-maturity
U.S. government and government agencies and authorities$694 $43 $— $737 
Investment securities, available-for-sale
U.S. government and government agencies and authorities53,953 51 (41)53,963 
Total investment securities$54,647 $94 $(41)$54,700 
The following table presents the amortized cost and fair value of debt securities as of September 30, 2021, by contractual maturity:
September 30, 2021Held-to-maturityAvailable-for-sale
Amortized costFair valueAmortized costFair value
(in thousands)
Due within one year$305 $308 $21,139 $21,142 
Due after one year through five years15 16 141,835 141,352 
Due after five years through ten years265 256 4,961 4,831 
Due after ten years110 147 — — 
Total$695 $727 $167,935 $167,325 
For the three and nine months ended September 30, 2021 and 2020, respectively, net investment income, which is included within other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss, was derived from the following sources:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
(in thousands)
Cash and cash equivalents$— $1 $— $108 
Short-term investments62 519 139 1,141 
Investment securities117 303 201 977 
Investment income, net$179 $823 $340 $2,226 
Gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows at September 30, 2021:
September 30, 2021Less than 12 monthsGreater than 12 monthsTotal
Fair valueUnrealized lossFair valueUnrealized lossFair valueUnrealized loss
(in thousands, except number of positions)
U.S. government and government agencies$— $— $71,620 $(657)$71,620 $(657)
Total$— $— $71,620 $(657)$71,620 $(657)
Number of positions— 14 14 
As of September 30, 2021, all securities were investment grade, with credit ratings of AA+ or higher by S&P. Unrealized losses on investment grade securities are principally related to changes in interest rates or changes in issuer or sector related credit spreads since the securities were acquired. The gross unrealized investment losses as of September 30, 2021, were deemed to be temporary, based on, among other things:
•The duration of time and the relative magnitude to which fair values of these securities have been below their amortized cost was not indicative of an other-than-temporary impairment loss;
•The absence of compelling evidence that would cause the Corporation to call into question the financial condition or near-term prospects of the issuer of the applicable security; and
•The Corporation’s ability and intent to hold the applicable security for a period of time sufficient to allow for any anticipated recovery.
The Corporation may ultimately record a realized loss after having originally concluded that the decline in value was temporary. Risks and uncertainties are inherent in the methodology the Corporation uses to assess other-than-temporary declines in value. Risks and uncertainties could include, but are not limited to, incorrect assumptions
about financial condition, liquidity or future prospects, inadequacy of any underlying collateral, and unfavorable changes in economic conditions or social trends, interest rates or credit ratings.
Proceeds from sales and maturities of investment securities, inclusive of short-term investments, and related gross realized gains (losses) which are included within other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss, were as follows for the three and nine months ended September 30, 2021 and 2020, respectively:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
(in thousands)
Proceeds from sales of investment securities$89,997 $71,049 $126,862 $166,024 
Proceeds from maturities of investment securities50,000 9,600 250,265 56,701 
Gross realized gains7 504 24 540 
Gross realized losses— — (77)— 
Net realized gains (losses)$7 $504 $(53)$540 
As of September 30, 2021, and December 31, 2020, the Corporation had $11.2 million and $7.5 million, respectively, in deposits with various states and regulatory bodies that are included as part of the Corporation's investment balances.
 Investment securities
The following tables present cost or amortized cost and fair values of investments as of December 31, 2020 and 2019, respectively:
December 31, 2020Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
(in thousands)
Investment securities, held-to-maturity:
U.S. government and government agencies and authorities$694 $43 $— $737 
Investment securities, available-for-sale:
U.S. government and government agencies and authorities53,953 51 (41)53,963 
Total investment securities$54,647 $94 $(41)$54,700 
December 31, 2019Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
(in thousands)
Investment securities, held-to-maturity:
U.S. government and government agencies and authorities$663 $22 $— $685 
Investment securities, available-for-sale:
U.S. government and government agencies and authorities56,382 46 — 56,428 
Total investment securities$57,045 $68 $— $57,113 
The following tables present the amortized cost and fair value of debt securities as of December 31, 2020, by contractual maturity:
December 31, 2020Held-to-maturity Available-for-sale
Amortized
cost		Fair
value		Amortized
cost		Fair
value
(in thousands)
Due within one year
$265 $266 $— $— 
Due after one year through five years
319 328 43,382 43,431 
Due after five years through ten years
— — 10,571 10,532 
Due after ten years
110 143 — — 
Total
$694 $737 $53,953 $53,963 
For the years ended December 31, 2020 and 2019, respectively, net investment income was derived from the following sources:
December 31,20202019
(in thousands)
Cash and cash equivalents
$108 $1,249 
Short-term investments
1,722 2,904 
Investment securities
1,146 386 
Net investment income
$2,976 $4,539 
The Corporation has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions, and other similar factors. This process also involves monitoring late payments, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.
There was an immaterial amount of investment securities in an unrealized loss position as of December 31, 2020 and no investment securities in an unrealized loss position as of December 31, 2019.
As of December 31, 2020 and 2019, all securities were investment grade, with credit ratings of AA+ or higher by S&P. Unrealized losses on investment grade securities are principally related to changes in interest rates or changes in issuer or sector related credit spreads since the securities were acquired.
Proceeds from sales and maturities of investment securities and related gross realized gains (losses) included within net investment income were as follows for the years ended December 31, 2020 and 2019, respectively:
December 31,20202019
(in thousands)
Proceeds from sales of investment securities
$248,664 $269,205 
Proceeds from maturities of investment securities
63,751 55,635 
Gross realized gains
1,117 114 
Gross realized losses
(3)(3)
Net realized gains (losses)
$1,114 $111 
As of December 31, 2020 and 2019, the Corporation had $7.5 million and $3.7 million, respectively, in deposits with various states and regulatory bodies.