XML 39 R28.htm IDEA: XBRL DOCUMENT v3.21.2
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2021
Investments Debt And Equity Securities [Abstract]  
Summary of Carrying Amounts of Securities and Their Approximate Fair Values

Investment securities have been classified in the unaudited consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows:

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored Enterprise obligations

 

$

22,996

 

 

$

578

 

 

$

(159

)

 

$

23,415

 

 

$

22,995

 

 

$

641

 

 

$

(19

)

 

$

23,617

 

Mortgage-backed securities

 

 

187,252

 

 

 

1,853

 

 

 

(2,033

)

 

 

187,072

 

 

 

208,515

 

 

 

2,502

 

 

 

(387

)

 

 

210,630

 

Corporate debt securities

 

 

1,742

 

 

 

38

 

 

 

(1

)

 

 

1,779

 

 

 

2,742

 

 

 

41

 

 

 

—

 

 

 

2,783

 

Total available for sale securities

 

$

211,990

 

 

$

2,469

 

 

$

(2,193

)

 

$

212,266

 

 

$

234,252

 

 

$

3,184

 

 

$

(406

)

 

$

237,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

379,726

 

 

$

5,681

 

 

$

(2,798

)

 

$

382,609

 

 

$

137,435

 

 

$

6,784

 

 

$

(97

)

 

$

144,122

 

Corporate debt securities

 

 

6,993

 

 

 

110

 

 

 

—

 

 

 

7,103

 

 

 

6,989

 

 

 

197

 

 

 

—

 

 

 

7,186

 

Municipal securities

 

 

106,063

 

 

 

4,511

 

 

 

(401

)

 

 

110,173

 

 

 

103,248

 

 

 

5,643

 

 

 

(60

)

 

 

108,831

 

Total held to maturity securities

 

$

492,782

 

 

$

10,302

 

 

$

(3,199

)

 

$

499,885

 

 

$

247,672

 

 

$

12,624

 

 

$

(157

)

 

$

260,139

 

Total

 

$

704,772

 

 

$

12,771

 

 

$

(5,392

)

 

$

712,151

 

 

$

481,924

 

 

$

15,808

 

 

$

(563

)

 

$

497,169

 
Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Loss Position

The following tables show the Company’s securities with gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2021 or at December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position:

 

 

 

June 30, 2021

 

o

 

Less than 12 months

 

 

12 months or longer

 

 

 

 

Total

 

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

 

 

Unrealized

Losses

 

 

 

 

Fair

Value

 

 

 

 

Unrealized

Losses

 

 

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored Enterprise obligations

 

$

9,837

 

 

$

(159

)

 

$

—

 

 

 

 

$

—

 

 

 

 

$

9,837

 

 

 

 

$

(159

)

Mortgage-backed securities

 

 

98,535

 

 

 

(2,032

)

 

 

775

 

 

 

 

 

(1

)

 

 

 

 

99,310

 

 

 

 

 

(2,033

)

Corporate debt securities

 

 

768

 

 

 

(1

)

 

 

—

 

 

 

 

 

—

 

 

 

 

 

768

 

 

 

 

 

(1

)

Total available for sale securities

 

$

109,140

 

 

$

(2,192

)

 

$

775

 

 

 

 

$

(1

)

 

 

 

$

109,915

 

 

 

 

$

(2,193

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

231,740

 

 

$

(2,798

)

 

$

—

 

 

 

 

$

—

 

 

 

 

$

231,740

 

 

 

 

$

(2,798

)

Municipal securities

 

 

14,610

 

 

 

(401

)

 

 

—

 

 

 

 

 

—

 

 

 

 

 

14,610

 

 

 

 

 

(401

)

Total held to maturity securities

 

$

246,350

 

 

$

(3,199

)

 

$

—

 

 

 

 

$

—

 

 

 

 

$

246,350

 

 

 

 

$

(3,199

)

Total

 

$

355,490

 

 

$

(5,391

)

 

$

775

 

 

 

 

$

(1

)

 

 

 

$

356,265

 

 

 

 

$

(5,392

)

 

 

 

December 31, 2020

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored Enterprise obligations

 

$

4,981

 

 

$

(19

)

 

$

—

 

 

$

—

 

 

$

4,981

 

 

$

(19

)

Mortgage-backed securities

 

 

91,094

 

 

 

(384

)

 

 

944

 

 

 

(3

)

 

 

92,038

 

 

 

(387

)

Total available for sale securities

 

$

96,075

 

 

$

(403

)

 

$

944

 

 

$

(3

)

 

$

97,019

 

 

$

(406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

16,340

 

 

$

(97

)

 

$

—

 

 

$

—

 

 

$

16,340

 

 

$

(97

)

Municipal securities

 

 

6,221

 

 

 

(60

)

 

 

—

 

 

 

—

 

 

 

6,221

 

 

 

(60

)

Total held to maturity securities

 

$

22,561

 

 

$

(157

)

 

$

—

 

 

$

—

 

 

$

22,561

 

 

$

(157

)

Total

 

$

118,636

 

 

$

(560

)

 

$

944

 

 

$

(3

)

 

$

119,580

 

 

$

(563

)
Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity

The amortized cost and fair value of debt securities, aggregated by the earlier of call date or contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

Within One Year

 

 

After One, But

Within Five Years

 

 

After Five, But

Within Ten Years

 

 

After Ten Years

 

 

Total

 

 

 

Amortized

Cost

 

 

Fair

Value

 

 

Amortized

Cost

 

 

Fair

Value

 

 

Amortized

Cost

 

 

Fair

Value

 

 

Amortized

Cost

 

 

Fair

Value

 

 

Amortized

Cost

 

 

Fair

Value

 

At June 30, 2021

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored Enterprise obligations

 

$

—

 

 

$

—

 

 

$

9,996

 

 

$

9,837

 

 

$

5,000

 

 

$

5,123

 

 

$

8,000

 

 

$

8,455

 

 

$

22,996

 

 

$

23,415

 

Mortgage-backed securities

 

 

12

 

 

 

12

 

 

 

3,253

 

 

 

3,327

 

 

 

57,712

 

 

 

58,119

 

 

 

126,275

 

 

 

125,614

 

 

 

187,252

 

 

 

187,072

 

Corporate debt securities

 

 

—

 

 

 

—

 

 

 

1,742

 

 

 

1,779

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,742

 

 

 

1,779

 

Total available for sale securities

 

$

12

 

 

$

12

 

 

$

14,991

 

 

$

14,943

 

 

$

62,712

 

 

$

63,242

 

 

$

134,275

 

 

$

134,069

 

 

$

211,990

 

 

$

212,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

—

 

 

$

—

 

 

$

2

 

 

$

2

 

 

$

60,048

 

 

$

63,159

 

 

$

319,676

 

 

$

319,448

 

 

$

379,726

 

 

$

382,609

 

Corporate debt securities

 

 

4,497

 

 

 

4,552

 

 

 

2,496

 

 

 

2,551

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,993

 

 

 

7,103

 

Municipal securities

 

 

4,364

 

 

 

4,431

 

 

 

19,497

 

 

 

20,290

 

 

 

39,784

 

 

 

42,139

 

 

 

42,418

 

 

 

43,313

 

 

 

106,063

 

 

 

110,173

 

Total held to maturity securities

 

$

8,861

 

 

$

8,983

 

 

$

21,995

 

 

$

22,843

 

 

$

99,832

 

 

$

105,298

 

 

$

362,094

 

 

$

362,761

 

 

$

492,782

 

 

$

499,885

 

Total

 

$

8,873

 

 

$

8,995

 

 

$

36,986

 

 

$

37,786

 

 

$

162,544

 

 

$

168,540

 

 

$

496,369

 

 

$

496,830

 

 

$

704,772

 

 

$

712,151

 
Summary of Gains from Sale of Investment Securities

The following table sets forth information regarding sales of investment securities and the resulting gains from such sales: 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Amortized cost of securities sold

 

$

—

 

 

$

10,752

 

 

$

—

 

 

$

10,752

 

Gross gains realized on securities sold

 

 

—

 

 

 

69

 

 

 

—

 

 

 

69

 

Gross losses realized on securities sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net proceeds from securities sold

 

$

—

 

 

$

10,821

 

 

$

—

 

 

$

10,821

 
Summary of Credit Rating of Debt Securities Portfolio

The Company monitors the credit quality of certain debt securities through the use of credit ratings among other factors on a quarterly basis. The following tables summarize the credit rating of the Company’s debt securities portfolio at June 30, 2021 and December 31, 2020.

 

 

 

June 30, 2021

 

 

 

Mortgage-backed Securities

 

 

Corporate Debt Securities

 

 

Municipal Securities

 

 

U.S. GSE obligations

 

 

Total

 

 

 

(dollars in thousands)

 

Available for sale securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A (1)

 

$

187,072

 

 

$

768

 

 

$

—

 

 

$

23,415

 

 

$

211,255

 

BBB/BB/B

 

 

—

 

 

 

1,011

 

 

 

—

 

 

 

—

 

 

 

1,011

 

Total available for sale securities

 

$

187,072

 

 

$

1,779

 

 

$

—

 

 

$

23,415

 

 

$

212,266

 

Held to maturity securities, at amortized cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

 

$

379,726

 

 

$

6,993

 

 

$

106,063

 

 

$

—

 

 

$

492,782

 

Total held to maturity securities

 

$

379,726

 

 

$

6,993

 

 

$

106,063

 

 

$

—

 

 

$

492,782

 

 


 

 

 

 

December 31, 2020

 

 

 

Mortgage-backed Securities

 

 

Corporate Debt Securities

 

 

Municipal Securities

 

 

U.S. GSE obligations

 

 

Total

 

 

 

(dollars in thousands)

 

Available for sale securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A (1)

 

$

210,630

 

 

$

1,779

 

 

$

—

 

 

$

23,617

 

 

$

236,026

 

BBB/BB/B

 

 

—

 

 

 

1,004

 

 

 

—

 

 

 

—

 

 

 

1,004

 

Total available for sale securities

 

$

210,630

 

 

$

2,783

 

 

$

—

 

 

$

23,617

 

 

$

237,030

 

Held to maturity securities, at amortized cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

 

$

137,435

 

 

$

6,989

 

 

$

102,973

 

 

$

—

 

 

$

247,397

 

BBB/BB/B

 

 

—

 

 

 

—

 

 

 

275

 

 

 

—

 

 

 

275

 

Total held to maturity securities

 

$

137,435

 

 

$

6,989

 

 

$

103,248

 

 

$

—

 

 

$

247,672

 

 

 

(1)

Includes agency MBS pass-through securities and collateralized mortgage obligations (“CMOs”) issued by U.S. Government Sponsored Enterprises (“GSEs”) such as Fannie Mae, Freddie Mac, and Ginnie Mae that are not rated by Moody’s or Standard & Poor’s (“S&P”). Each security contains a guarantee by the issuing GSE or agency and carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A.