Securities |
Note 3: Securities Available-for-Sale Securities AFS securities are summarized as follows as of the dates indicated: | | | | | | | | | | | | | | | December 31, 2023 | | | | | | Gross | | Gross | | | | | | | | | Unrealized | | Unrealized | | Approximate | | | Amortized Cost | | Gains | | Losses | | Fair Value | | | | (Dollars in thousands) | Federal agency obligations | | $ | 9,988 | | $ | 84 | | $ | — | | $ | 10,072 | U.S. Treasury securities | | | 4,965 | | | 3 | | | — | | | 4,968 | Mortgage-backed - GSE residential | | | 233,203 | | | 629 | | | 21,370 | | | 212,462 | Collateralized mortgage obligations - GSE residential | | | 50,125 | | | 493 | | | 674 | | | 49,944 | State and political subdivisions | | | 396,349 | | | 497 | | | 40,949 | | | 355,897 | Small Business Administration loan pools | | | 125,017 | | | 722 | | | 961 | | | 124,778 | Corporate bonds | | | 9,740 | | | — | | | 1,208 | | | 8,532 | Total available-for-sale securities | | $ | 829,387 | | $ | 2,428 | | $ | 65,162 | | $ | 766,653 |
| | | | | | | | | | | | | | | December 31, 2022 | | | | | | Gross | | Gross | | | | | | | | | Unrealized | | Unrealized | | Approximate | | | Amortized Cost | | Gains | | Losses | | Fair Value | | | | (Dollars in thousands) | Mortgage-backed - GSE residential | | $ | 197,243 | | $ | 232 | | $ | 25,166 | | $ | 172,309 | Collateralized mortgage obligations - GSE residential | | | 11,629 | | | — | | | 743 | | | 10,886 | State and political subdivisions | | | 551,007 | | | 929 | | | 57,440 | | | 494,496 | Corporate bonds | | | 9,762 | | | — | | | 552 | | | 9,210 | Total available-for-sale securities | | $ | 769,641 | | $ | 1,161 | | $ | 83,901 | | $ | 686,901 |
The carrying value of securities pledged as collateral was $40 million and $22 million at December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the AFS securities had $7 million and $6 million, respectively, of accrued interest, excluded from the amortized cost basis, and presented in “interest receivable” on the consolidated statements of financial condition. The following table summarizes the gross realized gains and losses from sales or maturities of AFS securities: | | | | | | | | | | | | For the Year Ended December 31, 2023 | | | | | | | | | | | | | Gross Realized Gains | | Gross Realized Losses | | Net Realized Loss | | | | (Dollars in thousands) | Available-for-sale securities | | $ | 462 | | $ | 1,589 | | $ | (1,127) |
| | | | | | | | | | | | For the Year Ended December 31, 2022 | | | | | | | | | | | | | Gross Realized Gains | | Gross Realized Losses | | Net Realized Gain | | | | (Dollars in thousands) | Available-for-sale securities | | $ | 146 | | $ | 50 | | $ | 96 |
The following table summarizes AFS securities with gross unrealized losses, as of the dates shown, along with the length of time in an unrealized loss position: | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | Less than 12 Months | | 12 Months or More | | Total | | | Fair | | Unrealized | | Number of | | Fair | | Unrealized | | Number of | | Fair | | Unrealized | | Number of | | | Value | | Losses | | Securities | | Value | | Losses | | Securities | | Value | | Losses | | Securities | | | | (Dollars in thousands) | Available-for-Sale Securities | | | | | | | | | | | | | | | | | | | | | | | | | Federal agency obligations | | $ | — | | $ | — | | — | | $ | — | | $ | — | | — | | $ | — | | $ | — | | — | U.S. Treasury securities | | | — | | | — | | — | | | — | | | — | | — | | | — | | | — | | — | Mortgage-backed - GSE residential | | | 21,523 | | | 56 | | 5 | | | 137,626 | | | 21,314 | | 52 | | | 159,149 | | | 21,370 | | 57 | Collateralized mortgage obligations - GSE residential | | | 17,707 | | | 135 | | 4 | | | 8,469 | | | 539 | | 17 | | | 26,176 | | | 674 | | 21 | State and political subdivisions | | | 33,577 | | | 207 | | 20 | | | 287,128 | | | 40,742 | | 190 | | | 320,705 | | | 40,949 | | 210 | Small Business Administration loan pools | | | 76,380 | | | 959 | | 11 | | | 91 | | | 2 | | 4 | | | 76,471 | | | 961 | | 15 | Corporate bonds | | | — | | | — | | — | | | 8,532 | | | 1,208 | | 5 | | | 8,532 | | | 1,208 | | 5 | Total temporarily impaired AFS securities | | $ | 149,187 | | $ | 1,357 | | 40 | | $ | 441,846 | | $ | 63,805 | | 268 | | $ | 591,033 | | $ | 65,162 | | 308 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | Less than 12 Months | | 12 Months or More | | Total | | | Fair | | Unrealized | | Number of | | Fair | | Unrealized | | Number of | | Fair | | Unrealized | | Number of | | | Value | | Losses | | Securities | | Value | | Losses | | Securities | | Value | | Losses | | Securities | | | | (Dollars in thousands) | Available-for-Sale Securities | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage-backed - GSE residential | | $ | 91,929 | | $ | 10,410 | | 41 | | $ | 66,036 | | $ | 14,756 | | 16 | | $ | 157,965 | | $ | 25,166 | | 57 | Collateralized mortgage obligations - GSE residential | | | 10,636 | | | 733 | | 18 | | | 251 | | | 10 | | 1 | | | 10,887 | | | 743 | | 19 | State and political subdivisions | | | 350,884 | | | 36,697 | | 266 | | | 52,519 | | | 20,743 | | 40 | | | 403,403 | | | 57,440 | | 306 | Corporate bonds | | | 9,210 | | | 552 | | 5 | | | — | | | — | | — | | | 9,210 | | | 552 | | 5 | Total temporarily impaired AFS securities | | $ | 462,659 | | $ | 48,392 | | 330 | | $ | 118,806 | | $ | 35,509 | | 57 | | $ | 581,465 | | $ | 83,901 | | 387 |
Management evaluated all of the AFS securities in an unrealized loss position at December 31, 2023. The unrealized losses in the Company’s investment portfolio were caused by interest rate changes. The Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis. The Company has not recorded any credit losses on AFS securities in 2023 or 2022. The amortized cost, fair value, and weighted average yield of AFS securities by contractual maturity, are shown below: | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | | Within | | After One to | | After Five to | | After | | | | | | | One Year | | Five Years | | Ten Years | | Ten Years | | Total | | | | | (Dollars in thousands) | Available-for-sale securities | | | | | | | | | | | | | | | | | Federal agency obligations(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | — | | $ | — | | $ | 9,988 | | $ | 9,988 | | Estimated fair value | | $ | — | | $ | — | | $ | — | | $ | 10,072 | | $ | 10,072 | | Weighted average yield(2) | | | — | % | | — | % | | — | % | | 6.41 | % | | 6.41 | % | U.S. Treasury securities | | | | | | | | | | | | | | | | | Amortized cost | | $ | 4,965 | | $ | — | | $ | — | | $ | — | | $ | 4,965 | | Estimated fair value | | $ | 4,968 | | $ | — | | $ | — | | $ | — | | $ | 4,968 | | Weighted average yield(2) | | | 5.56 | % | | — | % | | — | % | | — | % | | 5.56 | % | Mortgage-backed - GSE residential(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | — | | $ | 889 | | $ | 232,314 | | $ | 233,203 | | Estimated fair value | | $ | — | | $ | — | | $ | 821 | | $ | 211,641 | | $ | 212,462 | | Weighted average yield(2) | | | — | % | | — | % | | 2.24 | % | | 3.16 | % | | 3.15 | % | Collateralized mortgage obligations - GSE residential(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | 2,237 | | $ | — | | $ | 47,888 | | $ | 50,125 | | Estimated fair value | | $ | — | | $ | 2,153 | | $ | — | | $ | 47,791 | | $ | 49,944 | | Weighted average yield(2) | | | — | % | | 2.78 | % | | — | % | | 5.23 | % | | 5.12 | % | State and political subdivisions(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | 520 | | $ | 3,727 | | $ | 55,956 | | $ | 336,146 | | $ | 396,349 | | Estimated fair value | | $ | 529 | | $ | 3,726 | | $ | 55,446 | | $ | 296,196 | | $ | 355,897 | | Weighted average yield(2) | | | 4.22 | % | | 4.31 | % | | 2.85 | % | | 2.54 | % | | 2.61 | % | Small Business Administration loan pools(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | 9 | | $ | 84 | | $ | 124,924 | | $ | 125,017 | | Estimated fair value | | $ | — | | $ | 10 | | $ | 81 | | $ | 124,687 | | $ | 124,778 | | Weighted average yield(2) | | | — | % | | 4.90 | % | | 4.10 | % | | 4.87 | % | | 4.87 | % | Corporate bonds(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | 143 | | $ | 9,597 | | $ | — | | $ | 9,740 | | Estimated fair value | | $ | — | | $ | 140 | | $ | 8,392 | | $ | — | | $ | 8,532 | | Weighted average yield(2) | | | — | % | | 4.15 | % | | 5.70 | % | | — | % | | 5.68 | % | Total available-for-sale securities | | | | | | | | | | | | | | | | | Amortized cost | | $ | 5,485 | | $ | 6,116 | | $ | 66,526 | | $ | 751,260 | | $ | 829,387 | | Estimated fair value | | $ | 5,497 | | $ | 6,029 | | $ | 64,740 | | $ | 690,387 | | $ | 766,653 | | Weighted average yield(2) | | | 5.43 | % | | 3.75 | % | | 3.25 | % | | 3.34 | % | | 3.35 | % |
(1) | Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. |
(2) | Yields are calculated based on amortized cost using a 30/360 day basis. Tax-exempt securities are not tax effected. |
| | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | Within | | After One to | | After Five to | | After | | | | | | One Year | | Five Years | | Ten Years | | Ten Years | | Total | | | | | (Dollars in thousands) | Available-for-sale securities | | | | | | | | | | | | | | | | | Mortgage-backed - GSE residential(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | 18 | | $ | 105 | | $ | 197,120 | | $ | 197,243 | | Estimated fair value | | $ | — | | $ | 17 | | $ | 101 | | $ | 172,191 | | $ | 172,309 | | Weighted average yield(2) | | | — | % | | 4.77 | % | | 4.05 | % | | 2.39 | % | | 2.39 | % | Collateralized mortgage obligations - GSE residential(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | — | | $ | 2,344 | | $ | 9,285 | | $ | 11,629 | | Estimated fair value | | $ | — | | $ | — | | $ | 2,229 | | $ | 8,657 | | $ | 10,886 | | Weighted average yield(2) | | | — | % | | — | % | | 2.77 | % | | 2.25 | % | | 2.36 | % | State and political subdivisions(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | 1,076 | | $ | 6,310 | | $ | 109,771 | | $ | 433,850 | | $ | 551,007 | | Estimated fair value | | $ | 1,077 | | $ | 6,471 | | $ | 109,134 | | $ | 377,814 | | $ | 494,496 | | Weighted average yield(2) | | | 3.54 | % | | 4.60 | % | | 3.08 | % | | 2.70 | % | | 2.80 | % | Corporate bonds(1) | | | | | | | | | | | | | | | | | Amortized cost | | $ | — | | $ | 150 | | $ | 9,612 | | $ | — | | $ | 9,762 | | Estimated fair value | | $ | — | | $ | 146 | | $ | 9,064 | | $ | — | | $ | 9,210 | | Weighted average yield(2) | | | — | % | | 5.43 | % | | 5.70 | % | | — | % | | 5.70 | % | Total available-for-sale securities | | | | | | | | | | | | | | | | | Amortized cost | | $ | 1,076 | | $ | 6,478 | | $ | 121,832 | | $ | 640,255 | | $ | 769,641 | | Estimated fair value | | $ | 1,077 | | $ | 6,634 | | $ | 120,528 | | $ | 558,662 | | $ | 686,901 | | Weighted average yield(2) | | | 3.54 | % | | 4.62 | % | | 3.28 | % | | 2.60 | % | | 2.74 | % |
(1) | Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. |
(2) | Yields are calculated based on amortized cost using a 30/360 day basis. Tax-exempt securities are not tax effected. |
Equity Securities Equity securities consist of $5.8 million of private equity investments. Equity securities are included in other assets on the consolidated statements of financial condition. During 2020, the Company acquired an $11 million privately-held security in partial satisfaction of debts previously contracted. During 2021, the Company sold the equity security for $5 million that resulted in a $6 million realized loss which is included in “other non-interest income” in the consolidated statement of operations. The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on equity securities: | | | | | | | | | | | | For the Year Ended December 31, | | | | | | | | | | | | | 2023 | | 2022 | | 2021 | | | | (Dollars in thousands) | Net gains (losses) recognized during the reporting period on equity securities | | $ | 132 | | $ | (181) | | $ | (6,325) | Less: net gains (losses) recognized during the period on equity securities sold during the period | | | 93 | | | (181) | | | (6,245) | Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date | | $ | 39 | | $ | — | | $ | (80) |
|