Note 7 - Investment Securities

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

7. Investment Securities

The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of securities available-for-sale as of September 30, 2020, and December 31, 2019:

	September 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	99,968	$	12	$	—	$	99,980
U.S. government agency entities		104,661		465		530		104,596
Mortgage-backed securities		709,756		20,045		557		729,244
Collateralized mortgage obligations		222		—		11		211
Corporate debt securities		146,368		288		147		146,509
Total	$	1,060,975	$	20,810	$	1,245	$	1,080,540

	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	74,926	$	10	$	—	$	74,936
U.S. government agency entities		90,452		663		319		90,796
U.S. government sponsored entities		225,000		—		557		224,443
Mortgage-backed securities		880,040		8,574		824		887,790
Collateralized mortgage obligations		569		—		17		552
Corporate debt securities		172,743		605		23		173,325
Total	$	1,443,730	$	9,852	$	1,740	$	1,451,842

The amortized cost and fair value of securities available-for-sale as of September 30, 2020, by contractual maturities, are set forth in the tables below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.  

	September 30, 2020
	Securities Available-For-Sale
	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	182,047	$	182,289
Due after one year through five years		44,028		44,044
Due after five years through ten years		176,079		178,429
Due after ten years		658,821		675,778
Total	$	1,060,975	$	1,080,540

Equity Securities - The Company recognized a net loss of $1.6 million for the three months ended September 30, 2020, due to the decrease in fair value of equity investments with readily determinable fair values compared to a net gain of $0.4 million for the three months ended September 30, 2019. The Company recognized a net loss of $1.9 million for the nine months ended September 30, 2020, due to the decrease in fair value of equity investments with readily determinable fair values compared to a net gain of $7.8 million for the nine months ended September 30, 2019. Equity securities were $23.0 million and $28.0 million as of September 30, 2020 and December 31, 2019, respectively.

The following tables set forth the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of  September 30, 2020 and  December 31, 2019:

	September 30, 2020
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Securities Available-for-Sale
U.S. government agency entities	$	21,824	$	94	$	40,793	$	436	$	62,617	$	530
Mortgage-backed securities		1,924		20		8,944		537		10,868		557
Collateralized mortgage obligations		—		—		211		11		211		11
Corporate debt securities		45,762		147		—		—		45,762		147
Total	$	69,510	$	261	$	49,948	$	984	$	119,458	$	1,245

	December 31, 2019
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Securities Available-for-Sale
U.S. government agency entities	$	48,829	$	172	$	3,570	$	147	$	52,399	$	319
U.S. government sponsored entities		—		—		224,443		557		224,443		557
Mortgage-backed securities		43,719		36		120,801		788		164,520		824
Collateralized mortgage obligations		—		—		552		17		552		17
Corporate debt securities		51,791		23		—		—		51,791		23
Total	$	144,339	$	231	$	349,366	$	1,509	$	493,705	$	1,740

To the Company’s knowledge, the Company believes the unrealized losses were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. Management believes the gross unrealized losses detailed in the table above are temporary. The Company expects to recover the amortized cost basis of its securities and has no present intent to sell and will not be required to sell available-for-sale securities that have declined below their cost before their anticipated recovery. Accordingly, no other than temporary impairment write-downs were recorded on the Company’s Condensed Consolidated Statement of Operations and Comprehensive Income in the three or nine months ended September 30, 2020 and 2019.

Securities available-for-sale having a carrying value of $18.6 million and $20.1 million as of September 30, 2020 and December 31, 2019, respectively, were pledged to secure public deposits, other borrowings and treasury tax and loan.