| Securities |
Note 4—Securities
The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities as of the dates shown and the corresponding amounts of gross unrealized gains and losses:
|
September 30, 2019 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
$ |
42,381 |
|
|
$ |
461 |
|
|
$ |
— |
|
|
$ |
42,842 |
|
|
U.S. Government agencies |
|
|
177,082 |
|
|
|
1,048 |
|
|
|
(272 |
) |
|
|
177,858 |
|
|
Obligations of states, municipalities, and political
subdivisions |
|
|
96,564 |
|
|
|
2,269 |
|
|
|
(231 |
) |
|
|
98,602 |
|
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
329,145 |
|
|
|
2,178 |
|
|
|
(2,313 |
) |
|
|
329,010 |
|
|
Non-agency |
|
|
119,661 |
|
|
|
644 |
|
|
|
(245 |
) |
|
|
120,060 |
|
|
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
150,891 |
|
|
|
1,698 |
|
|
|
(556 |
) |
|
|
152,033 |
|
|
Non-agency |
|
|
31,224 |
|
|
|
276 |
|
|
|
— |
|
|
|
31,500 |
|
|
Corporate securities |
|
|
46,821 |
|
|
|
415 |
|
|
|
(42 |
) |
|
|
47,194 |
|
|
Other securities |
|
|
32,955 |
|
|
|
— |
|
|
|
(121 |
) |
|
|
32,834 |
|
|
Total |
|
$ |
1,026,724 |
|
|
$ |
8,989 |
|
|
$ |
(3,780 |
) |
|
$ |
1,031,933 |
|
|
September 30, 2019 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states, municipalities, and political
subdivisions |
|
$ |
4,417 |
|
|
$ |
85 |
|
|
$ |
— |
|
|
$ |
4,502 |
|
|
Total |
|
$ |
4,417 |
|
|
$ |
85 |
|
|
$ |
— |
|
|
$ |
4,502 |
|
|
December 31, 2018 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
$ |
52,775 |
|
|
$ |
81 |
|
|
$ |
(189 |
) |
|
$ |
52,667 |
|
|
U.S. Government agencies |
|
|
187,427 |
|
|
|
367 |
|
|
|
(1,296 |
) |
|
|
186,498 |
|
|
Obligations of states, municipalities, and political
subdivisions |
|
|
60,686 |
|
|
|
133 |
|
|
|
(586 |
) |
|
|
60,233 |
|
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
284,038 |
|
|
|
101 |
|
|
|
(11,176 |
) |
|
|
272,963 |
|
|
Non-agency |
|
|
84,998 |
|
|
|
199 |
|
|
|
(1,576 |
) |
|
|
83,621 |
|
|
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
93,543 |
|
|
|
55 |
|
|
|
(3,164 |
) |
|
|
90,434 |
|
|
Non-agency |
|
|
31,458 |
|
|
|
— |
|
|
|
(1,000 |
) |
|
|
30,458 |
|
|
Corporate securities |
|
|
34,716 |
|
|
|
67 |
|
|
|
(610 |
) |
|
|
34,173 |
|
|
Other securities |
|
|
4,613 |
|
|
|
2,127 |
|
|
|
(131 |
) |
|
|
6,609 |
|
|
Total |
|
$ |
834,254 |
|
|
$ |
3,130 |
|
|
$ |
(19,728 |
) |
|
$ |
817,656 |
|
|
December 31, 2018 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states, municipalities, and political
subdivisions |
|
$ |
23,835 |
|
|
$ |
40 |
|
|
$ |
(210 |
) |
|
$ |
23,665 |
|
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
40,082 |
|
|
|
93 |
|
|
|
(531 |
) |
|
|
39,644 |
|
|
Non-agency |
|
|
35,349 |
|
|
|
— |
|
|
|
(919 |
) |
|
|
34,430 |
|
|
Total |
|
$ |
99,266 |
|
|
$ |
133 |
|
|
$ |
(1,660 |
) |
|
$ |
97,739 |
|
The Company did not classify securities as trading during the three or nine months ended September 30, 2019 or during 2018.
The Company adopted the provisions of ASU No. 2016-01 as of January 1, 2019. The adoption of this ASU resulted in the reclassification of available-for-sale equity securities, at fair value to a separate line item on the Company’s Consolidated Statements of Financial Condition, and the reclassification of $1.4 million from other comprehensive income to retained earnings, representing the net unrealized gain, net of tax, on available-for-sale for sale equity securities at the date of adoption. At December 31, 2018, the Company held $6.6 million of available-for-sale equity investment securities which were reported as available-for-sale securities, at fair value, and are now reported as equity and other securities, at fair value. Additionally, the Company adopted the provisions of ASU No. 2017-12 on January 1, 2019, and elected to reclassify $94.8 million of securities held-to-maturity to securities available-for-sale, which did not have an impact on the Consolidated Statements of Operations.
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 as of September 30, 2019 and December 31, 2018, are summarized as follows:
|
|
|
|
|
|
|
Less than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
|
September 30, 2019 |
|
# of
Securities |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies |
|
|
5 |
|
|
$ |
14,834 |
|
|
$ |
(163 |
) |
|
$ |
20,266 |
|
|
$ |
(109 |
) |
|
$ |
35,100 |
|
|
$ |
(272 |
) |
|
Obligations of states, municipalities and
political subdivisions |
|
|
4 |
|
|
|
9,960 |
|
|
|
(226 |
) |
|
|
1,417 |
|
|
|
(5 |
) |
|
|
11,377 |
|
|
|
(231 |
) |
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
40 |
|
|
|
32,436 |
|
|
|
(179 |
) |
|
|
204,649 |
|
|
|
(2,134 |
) |
|
|
237,085 |
|
|
|
(2,313 |
) |
|
Non-agency |
|
|
11 |
|
|
|
36,826 |
|
|
|
(62 |
) |
|
|
28,142 |
|
|
|
(183 |
) |
|
|
64,968 |
|
|
|
(245 |
) |
|
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
8 |
|
|
|
38,571 |
|
|
|
(256 |
) |
|
|
33,769 |
|
|
|
(300 |
) |
|
|
72,340 |
|
|
|
(556 |
) |
|
Corporate securities |
|
|
5 |
|
|
|
9,276 |
|
|
|
(42 |
) |
|
|
— |
|
|
|
— |
|
|
|
9,276 |
|
|
|
(42 |
) |
|
Other securities |
|
|
1 |
|
|
|
32,834 |
|
|
|
(121 |
) |
|
|
— |
|
|
|
— |
|
|
|
32,834 |
|
|
|
(121 |
) |
|
Total |
|
|
74 |
|
|
$ |
174,737 |
|
|
$ |
(1,049 |
) |
|
$ |
288,243 |
|
|
$ |
(2,731 |
) |
|
$ |
462,980 |
|
|
$ |
(3,780 |
) |
|
|
|
|
|
|
|
Less than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
|
December 31, 2018 |
|
# of
Securities |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
|
18 |
|
|
$ |
23,835 |
|
|
$ |
(52 |
) |
|
$ |
9,865 |
|
|
$ |
(137 |
) |
|
$ |
33,700 |
|
|
$ |
(189 |
) |
|
U.S. Government agencies |
|
|
25 |
|
|
|
43,487 |
|
|
|
(80 |
) |
|
|
50,101 |
|
|
|
(1,216 |
) |
|
|
93,588 |
|
|
|
(1,296 |
) |
|
Obligations of states, municipalities and
political subdivisions |
|
|
56 |
|
|
|
13,926 |
|
|
|
(97 |
) |
|
|
18,563 |
|
|
|
(489 |
) |
|
|
32,489 |
|
|
|
(586 |
) |
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
42 |
|
|
|
4,288 |
|
|
|
(45 |
) |
|
|
254,121 |
|
|
|
(11,131 |
) |
|
|
258,409 |
|
|
|
(11,176 |
) |
|
Non-agency |
|
|
8 |
|
|
|
59,107 |
|
|
|
(1,378 |
) |
|
|
4,009 |
|
|
|
(198 |
) |
|
|
63,116 |
|
|
|
(1,576 |
) |
|
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
9 |
|
|
|
21,356 |
|
|
|
(447 |
) |
|
|
52,640 |
|
|
|
(2,717 |
) |
|
|
73,996 |
|
|
|
(3,164 |
) |
|
Non-agency |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
30,458 |
|
|
|
(1,000 |
) |
|
|
30,458 |
|
|
|
(1,000 |
) |
|
Corporate securities |
|
|
15 |
|
|
|
25,762 |
|
|
|
(342 |
) |
|
|
4,642 |
|
|
|
(268 |
) |
|
|
30,404 |
|
|
|
(610 |
) |
|
Other securities |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
2,844 |
|
|
|
(131 |
) |
|
|
2,844 |
|
|
|
(131 |
) |
|
Total |
|
|
179 |
|
|
$ |
191,761 |
|
|
$ |
(2,441 |
) |
|
$ |
427,243 |
|
|
$ |
(17,287 |
) |
|
$ |
619,004 |
|
|
$ |
(19,728 |
) |
|
|
|
|
|
|
|
Less than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
|
December 31, 2018 |
|
# of
Securities |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states, municipalities, and
political subdivisions |
|
|
23 |
|
|
$ |
8,127 |
|
|
$ |
(58 |
) |
|
$ |
8,792 |
|
|
$ |
(152 |
) |
|
$ |
16,919 |
|
|
$ |
(210 |
) |
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
16 |
|
|
|
6,625 |
|
|
|
(150 |
) |
|
|
21,139 |
|
|
|
(381 |
) |
|
|
27,764 |
|
|
|
(531 |
) |
|
Non-agency |
|
|
7 |
|
|
|
21,499 |
|
|
|
(503 |
) |
|
|
12,931 |
|
|
|
(416 |
) |
|
|
34,430 |
|
|
|
(919 |
) |
|
Total |
|
|
46 |
|
|
$ |
36,251 |
|
|
$ |
(711 |
) |
|
$ |
42,862 |
|
|
$ |
(949 |
) |
|
$ |
79,113 |
|
|
$ |
(1,660 |
) |
Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 74 securities available-for-sale with unrealized losses at September 30, 2019. There were no securities held-to-maturity with unrealized losses at September 30, 2019. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.
The proceeds from all sales of securities available-for-sale, and the associated gains and losses, for the three and nine months ended September 30, 2019 and 2018 are listed below:
|
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Proceeds |
|
$ |
32,509 |
|
|
$ |
— |
|
|
$ |
92,103 |
|
|
$ |
544 |
|
|
Gross gains |
|
|
225 |
|
|
|
— |
|
|
|
1,274 |
|
|
|
4 |
|
|
Gross losses |
|
|
47 |
|
|
|
— |
|
|
|
123 |
|
|
|
— |
|
There were $178,000 in net gains reclassified from accumulated other comprehensive income into earnings for the three months ended September 30, 2019. There were no net gains reclassified from accumulated other comprehensive income into earnings for the three months ended September 30, 2018. There were $1.2 million and $4,000 in net gains reclassified from accumulated other comprehensive income into earnings for the nine months ended September 30, 2019 and 2018, respectively.
Securities pledged at September 30, 2019 and December 31, 2018 had carrying amounts of $306.9 million and $244.7 million, respectively. At September 30, 2019 and December 31, 2018, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $263.3 million and $197.8 million, respectively, and for customer repurchase agreements of $43.6 million and $46.9 million, respectively. At September 30, 2019 and December 31, 2018, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At September 30, 2019 and December 31, 2018, 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 stockholders’ equity.
At September 30, 2019, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
Equity and other securities, at fair value |
|
|
|
|
|
|
|
|
|
Due after ten years |
|
$ |
697 |
|
|
$ |
697 |
|
|
No defined maturity |
|
|
6,951 |
|
|
|
6,951 |
|
|
Total |
|
$ |
7,648 |
|
|
$ |
7,648 |
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
Due in one year or less |
|
$ |
59,697 |
|
|
$ |
59,875 |
|
|
Due from one to five years |
|
|
123,941 |
|
|
|
125,158 |
|
|
Due from five to ten years |
|
|
136,438 |
|
|
|
137,993 |
|
|
Due after ten years |
|
|
75,727 |
|
|
|
76,304 |
|
|
Mortgage-backed securities |
|
|
630,921 |
|
|
|
632,603 |
|
|
Total |
|
$ |
1,026,724 |
|
|
$ |
1,031,933 |
|
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
Due from one to five years |
|
$ |
3,805 |
|
|
$ |
3,873 |
|
|
Due from five to ten years |
|
|
612 |
|
|
|
629 |
|
|
Total |
|
$ |
4,417 |
|
|
$ |
4,502 |
|
|