| Securities |
Note 2 — Securities
The following is a summary of securities available for sale as of the dates indicated:
|
|
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
Estimated
|
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
|
|
|
Cost
|
|
|
Gain
|
|
|
Loss
|
|
|
Value
|
|
|
|
|
(in thousands)
|
|
|
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities
|
|
$
|
9,998
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
10,075
|
|
|
U.S. government agency and sponsored agency obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
|
|
|
579,209
|
|
|
|
87
|
|
|
|
(7,216
|
)
|
|
|
572,080
|
|
|
Collateralized mortgage obligations
|
|
|
112,808
|
|
|
|
145
|
|
|
|
(210
|
)
|
|
|
112,743
|
|
|
Debt securities
|
|
|
85,660
|
|
|
|
31
|
|
|
|
(475
|
)
|
|
|
85,216
|
|
|
Total U.S. government agency and sponsored agency obligations
|
|
|
777,677
|
|
|
|
263
|
|
|
|
(7,901
|
)
|
|
|
770,039
|
|
|
Total securities available for sale
|
|
$
|
787,675
|
|
|
$
|
340
|
|
|
$
|
(7,901
|
)
|
|
$
|
780,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities
|
|
$
|
9,997
|
|
|
$
|
135
|
|
|
$
|
—
|
|
|
$
|
10,132
|
|
|
U.S. government agency and sponsored agency obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
|
|
|
515,169
|
|
|
|
4,260
|
|
|
|
(188
|
)
|
|
|
519,241
|
|
|
Collateralized mortgage obligations
|
|
|
133,632
|
|
|
|
186
|
|
|
|
(217
|
)
|
|
|
133,601
|
|
|
Debt securities
|
|
|
90,660
|
|
|
|
148
|
|
|
|
(1
|
)
|
|
|
90,807
|
|
|
Total U.S. government agency and sponsored agency obligations
|
|
|
739,461
|
|
|
|
4,594
|
|
|
|
(406
|
)
|
|
|
743,649
|
|
|
Total securities available for sale
|
|
$
|
749,458
|
|
|
$
|
4,729
|
|
|
$
|
(406
|
)
|
|
$
|
753,781
|
|
The amortized cost and estimated fair value of securities as of March 31, 2021 and December 31, 2020, 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.
|
|
|
March 31, 2021
|
|
|
December 31, 2020
|
|
|
|
|
Available for Sale
|
|
|
Available for Sale
|
|
|
|
|
Amortized
|
|
|
Estimated
|
|
|
Amortized
|
|
|
Estimated
|
|
|
|
|
Cost
|
|
|
Fair Value
|
|
|
Cost
|
|
|
Fair Value
|
|
|
|
|
(in thousands)
|
|
|
Within one year
|
|
$
|
12,963
|
|
|
$
|
13,045
|
|
|
$
|
13,305
|
|
|
$
|
13,435
|
|
|
Over one year through five years
|
|
|
90,083
|
|
|
|
89,890
|
|
|
|
139,876
|
|
|
|
140,100
|
|
|
Over five years through ten years
|
|
|
50,135
|
|
|
|
49,990
|
|
|
|
25,764
|
|
|
|
25,768
|
|
|
Over ten years
|
|
|
634,494
|
|
|
|
627,189
|
|
|
|
570,513
|
|
|
|
574,478
|
|
|
Total
|
|
$
|
787,675
|
|
|
$
|
780,114
|
|
|
$
|
749,458
|
|
|
$
|
753,781
|
|
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 March 31, 2021 and December 31, 2020, 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
|
|
|
Estimated
|
|
|
Number
|
|
|
Gross
|
|
|
Estimated
|
|
|
Number
|
|
|
Gross
|
|
|
Estimated
|
|
|
Number
|
|
|
|
|
Unrealized
|
|
|
Fair
|
|
|
of
|
|
|
Unrealized
|
|
|
Fair
|
|
|
of
|
|
|
Unrealized
|
|
|
Fair
|
|
|
of
|
|
|
|
|
Loss
|
|
|
Value
|
|
|
Securities
|
|
|
Loss
|
|
|
Value
|
|
|
Securities
|
|
|
Loss
|
|
|
Value
|
|
|
Securities
|
|
|
|
|
(in thousands, except number of securities)
|
|
|
March 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agency and sponsored agency obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
|
|
$
|
(7,216
|
)
|
|
$
|
562,136
|
|
|
|
87
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
(7,216
|
)
|
|
$
|
562,136
|
|
|
|
87
|
|
|
Collateralized mortgage obligations
|
|
|
(210
|
)
|
|
|
78,602
|
|
|
|
18
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(210
|
)
|
|
|
78,602
|
|
|
|
18
|
|
|
Debt securities
|
|
|
(475
|
)
|
|
|
55,525
|
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(475
|
)
|
|
|
55,525
|
|
|
|
9
|
|
|
Total U.S. government agency and sponsored agency obligations
|
|
|
(7,901
|
)
|
|
|
696,263
|
|
|
|
114
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(7,901
|
)
|
|
|
696,263
|
|
|
|
114
|
|
|
Total
|
|
$
|
(7,901
|
)
|
|
$
|
696,263
|
|
|
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
(7,901
|
)
|
|
$
|
696,263
|
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government agency and sponsored agency obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities
|
|
$
|
(188
|
)
|
|
$
|
76,023
|
|
|
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
(188
|
)
|
|
$
|
76,023
|
|
|
|
10
|
|
|
Collateralized mortgage obligations
|
|
|
(217
|
)
|
|
|
97,659
|
|
|
|
21
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(217
|
)
|
|
|
97,659
|
|
|
|
21
|
|
|
Debt securities
|
|
|
(1
|
)
|
|
|
4,999
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
4,999
|
|
|
|
1
|
|
|
Total U.S. government agency and sponsored agency obligations
|
|
|
(406
|
)
|
|
|
178,681
|
|
|
|
32
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(406
|
)
|
|
|
178,681
|
|
|
|
32
|
|
|
Total
|
|
$
|
(406
|
)
|
|
$
|
178,681
|
|
|
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
—
|
|
|
$
|
(406
|
)
|
|
$
|
178,681
|
|
|
|
32
|
|
The Company evaluates its available-for-sale securities portfolio for impairment on an at least quarterly basis. This assessment took into account the credit quality of these debt securities and determined that since all were 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, no credit impairment had occurred.
Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
|
|
(in thousands)
|
|
|
Gross realized gains on sales of securities
|
|
$
|
99
|
|
|
$
|
—
|
|
|
Gross realized losses on sales of securities
|
|
|
—
|
|
|
|
—
|
|
|
Net realized gains on sales of securities
|
|
$
|
99
|
|
|
$
|
—
|
|
|
Proceeds from sales of securities
|
|
$
|
8,035
|
|
|
$
|
—
|
|
During the three months ended March 31, 2021 and 2020, there were $99,000 and $0 in gains or losses, respectively, in earnings resulting from the sale of securities.
Securities available for sale with market values of $32.6 million and $27.3 million as of March 31, 2021 and December 31, 2020, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.
At March 31, 2021, 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 percent of shareholders’ equity.
|