Annual report pursuant to Section 13 and 15(d)

Securities

v3.24.0.1
Securities
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 2 — Securities

The following is a summary of securities available for sale as of December 31, 2023 and 2022:

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Estimated

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gain

 

 

Loss

 

 

Value

 

 

 

(in thousands)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

86,355

 

 

$

173

 

 

$

(1,040

)

 

$

85,488

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

504,544

 

 

 

481

 

 

 

(62,697

)

 

 

442,328

 

Mortgage-backed securities - commercial

 

 

59,973

 

 

 

 

 

 

(11,982

)

 

 

47,991

 

Collateralized mortgage obligations

 

 

106,823

 

 

 

237

 

 

 

(9,649

)

 

 

97,411

 

Debt securities

 

 

132,215

 

 

 

 

 

 

(7,590

)

 

 

124,625

 

Total U.S. government agency and sponsored agency obligations

 

 

803,555

 

 

 

718

 

 

 

(91,918

)

 

 

712,355

 

Municipal bonds-tax exempt

 

 

77,121

 

 

 

 

 

 

(9,225

)

 

 

67,896

 

Total securities available for sale

 

$

967,031

 

 

$

891

 

 

$

(102,183

)

 

$

865,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

49,690

 

 

$

 

 

$

(1,664

)

 

$

48,026

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

540,590

 

 

 

63

 

 

 

(75,501

)

 

 

465,152

 

Mortgage-backed securities - commercial

 

 

61,799

 

 

 

 

 

 

(10,507

)

 

 

51,292

 

Collateralized mortgage obligations

 

 

98,236

 

 

 

 

 

 

(12,751

)

 

 

85,485

 

Debt securities

 

 

150,338

 

 

 

 

 

 

(11,839

)

 

 

138,499

 

Total U.S. government agency and sponsored agency obligations

 

 

850,963

 

 

 

63

 

 

 

(110,598

)

 

 

740,428

 

Municipal bonds-tax exempt

 

 

78,143

 

 

 

 

 

 

(12,759

)

 

 

65,384

 

Total securities available for sale

 

$

978,796

 

 

$

63

 

 

$

(125,021

)

 

$

853,838

 

 

The amortized cost and estimated fair value of securities as of December 31, 2023, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities. Mortgage-backed securities included in the table below may mature before their contractual maturities.

 

 

 

Available for Sale

 

 

 

Amortized

 

 

Estimated

 

 

 

Cost

 

 

Fair Value

 

 

 

(in thousands)

 

Within one year

 

$

62,521

 

 

$

61,828

 

Over one year through five years

 

 

169,176

 

 

 

160,983

 

Over five years through ten years

 

 

83,720

 

 

 

77,608

 

Over ten years

 

 

651,614

 

 

 

565,320

 

Total

 

$

967,031

 

 

$

865,739

 

 

The following table summarizes debt securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded at December 31, 2023 and 2022, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Holding Period

 

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

Gross
Unrealized
Loss

 

 

Estimated
Fair
Value

 

 

Number
of
Securities

 

 

Gross
Unrealized
Loss

 

 

Estimated
Fair
Value

 

 

Number
of
Securities

 

 

Gross
Unrealized
Loss

 

 

Estimated
Fair
Value

 

 

Number
of
Securities

 

 

 

(in thousands, except number of securities)

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(57

)

 

$

21,024

 

 

 

7

 

 

$

(983

)

 

$

32,449

 

 

 

11

 

 

$

(1,040

)

 

$

53,473

 

 

 

18

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

(11

)

 

 

2,324

 

 

 

5

 

 

 

(62,686

)

 

 

411,417

 

 

 

118

 

 

 

(62,697

)

 

 

413,741

 

 

 

123

 

Mortgage-backed securities - commercial

 

 

 

 

 

 

 

 

 

 

 

(11,982

)

 

 

47,991

 

 

 

15

 

 

 

(11,982

)

 

 

47,991

 

 

 

15

 

Collateralized mortgage obligations

 

 

(38

)

 

 

7,074

 

 

 

2

 

 

 

(9,611

)

 

 

63,610

 

 

 

24

 

 

 

(9,649

)

 

 

70,684

 

 

 

26

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

(7,590

)

 

 

124,625

 

 

 

26

 

 

 

(7,590

)

 

 

124,625

 

 

 

26

 

Total U.S. government agency and sponsored agency obligations

 

 

(49

)

 

 

9,398

 

 

 

7

 

 

 

(91,869

)

 

 

647,643

 

 

 

183

 

 

 

(91,918

)

 

 

657,041

 

 

 

190

 

Municipal bonds-tax exempt

 

 

 

 

 

 

 

 

 

 

 

(9,225

)

 

 

67,896

 

 

 

19

 

 

 

(9,225

)

 

 

67,896

 

 

 

19

 

Total

 

$

(106

)

 

$

30,422

 

 

 

14

 

 

$

(102,077

)

 

$

747,988

 

 

 

213

 

 

$

(102,183

)

 

$

778,410

 

 

 

227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(414

)

 

$

33,812

 

 

 

14

 

 

$

(1,250

)

 

$

14,215

 

 

 

4

 

 

$

(1,664

)

 

$

48,027

 

 

 

18

 

U.S. government agency and sponsored agency obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities - residential

 

 

(1,712

)

 

 

36,009

 

 

 

18

 

 

 

(73,789

)

 

 

424,302

 

 

 

105

 

 

 

(75,501

)

 

 

460,311

 

 

 

123

 

Mortgage-backed securities - commercial

 

 

(84

)

 

 

4,069

 

 

 

1

 

 

 

(10,423

)

 

 

47,221

 

 

 

14

 

 

 

(10,507

)

 

 

51,290

 

 

 

15

 

Collateralized mortgage obligations

 

 

(1,011

)

 

 

23,606

 

 

 

8

 

 

 

(11,740

)

 

 

61,879

 

 

 

20

 

 

 

(12,751

)

 

 

85,485

 

 

 

28

 

Debt securities

 

 

(1,103

)

 

 

31,714

 

 

 

8

 

 

 

(10,736

)

 

 

106,785

 

 

 

22

 

 

 

(11,839

)

 

 

138,499

 

 

 

30

 

Total U.S. government agency and sponsored agency obligations

 

 

(3,910

)

 

 

95,398

 

 

 

35

 

 

 

(106,688

)

 

 

640,187

 

 

 

161

 

 

 

(110,598

)

 

 

735,585

 

 

 

196

 

Municipal bonds-tax exempt

 

 

 

 

 

 

 

 

 

 

 

(12,759

)

 

 

65,385

 

 

 

19

 

 

 

(12,759

)

 

 

65,385

 

 

 

19

 

Total

 

$

(4,324

)

 

$

129,210

 

 

 

49

 

 

$

(120,697

)

 

$

719,787

 

 

 

184

 

 

$

(125,021

)

 

$

848,997

 

 

 

233

 

 

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment takes into account the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. In the event that a credit loss is expected to occur in the future, an allowance is established and a corresponding credit loss is recognized. Based on this analysis, the Company determined that no credit losses are expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the securities portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Gross realized gains on sales of securities

 

$

 

 

$

 

 

$

99

 

Gross realized losses on sales of securities

 

 

(1,871

)

 

 

 

 

 

(598

)

Net realized gains (losses) on sales of securities

 

$

(1,871

)

 

$

 

 

$

(499

)

Proceeds from sales of securities

 

$

8,149

 

 

 

 

 

 

55,884

 

For the year ended December 31, 2023, the Company recorded $1.9 million in net realized loss from sale of securities that had previously been recognized as net unrealized losses of $1.7 million in comprehensive income.

There were no sales of securities for the year ended December 31, 2022. For the year ended December 31, 2021, the Company recorded $0.5 million in net realized loss from the sale of securities that had previously been recognized as net unrealized losses of $0.1 million in comprehensive income.

Securities available for sale with market values of $24.8 million and $23.4 million as of December 31, 2023 and 2022, respectively, were pledged to secure advances from the Federal Reserve Bank (“FRB”) Discount Window and the Bank Term Funding Program (“BTFP”), and for other purposes as required or permitted by law.

At year-end 2023, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.