Note 7 - Investment Securities

6 Months Ended

Jun. 30, 2021

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 June 30, 2021, and December 31, 2020:

	June 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	40,458	$	9	$	—	$	40,467
U.S. government agency entities		92,120		1,329		137		93,312
Mortgage-backed securities		739,672		13,640		3,836		749,476
Collateralized mortgage obligations		10,010		—		274		9,736
Corporate debt securities		109,464		659		599		109,524
Total	$	991,724	$	15,637	$	4,846	$	1,002,515

	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	80,948	$	6	$	6	$	80,948
U.S. government agency entities		99,944		441		546		99,839
Mortgage-backed securities		709,709		17,965		606		727,068
Collateralized mortgage obligations		10,358		—		34		10,324
Corporate debt securities		118,271		367		267		118,371
Total	$	1,019,230	$	18,779	$	1,459	$	1,036,550

As of June 30, 2021, the amortized cost of AFS debt securities excluded accrued interest receivables of $2.0 million, which are included in “accrued interest receivables” on the Consolidated Balance Sheets. For the Company’s accounting policy related to AFS debt securities’ accrued interest receivable, see Note 2. Basis of Presentation and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10Q.

The amortized cost and fair value of securities available-for-sale as of June 30, 2021, 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.  

	June 30, 2021
	Securities Available-For-Sale
	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	65,472	$	65,511
Due after one year through five years		71,862		71,254
Due after five years through ten years		161,771		166,473
Due after ten years		692,619		699,277
Total	$	991,724	$	1,002,515

Equity Securities - The Company recognized a net loss of $0.9 million for the three months ended June 30, 2021, due to the decrease in fair value of equity investments with readily determinable fair values compared to a net gain of $5.8 million for the three months ended June 30, 2020. The Company recognized a net loss of $3.6 million for the six months ended June 30, 2021, due to the decrease in fair value of equity investments with readily determinable fair values compared to a net loss of $323 thousand for the six months ended June 30, 2020. Equity securities were $20.1 million and $23.7 million as of June 30, 2021, and December 31, 2020, 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  June 30, 2021, and  December 31, 2020:

	June 30, 2021
	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	$	—	$	—	$	2,475	$	137	$	2,475	$	137
Mortgage-backed securities		298,310		3,159		7,583		677		305,893		3,836
Collateralized mortgage obligations		9,574		264		162		10		9,736		274
Corporate debt securities		50,611		352		9,753		247		60,364		599
Total	$	358,495	$	3,775	$	19,973	$	1,071	$	378,468	$	4,846

	December 31, 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. treasury securities	$	40,952	$	6	$	—	$	—	$	40,952	$	6
U.S. government agency entities		26,390		102		40,009		444		66,399		546
Mortgage-backed securities		1,694		23		8,093		583		9,787		606
Collateralized mortgage obligations		10,131		25		193		9		10,324		34
Corporate debt securities		58,405		267		—		—		58,405		267
Total	$	137,572	$	423	$	48,295	$	1,036	$	185,867	$	1,459

Allowance for Credit Losses

The securities that were in an unrealized loss position at June 30, 2021, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 2 Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements in this Form 10Q.

The Company concluded 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. 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 allowance for credit losses was recorded as of June 30, 2021, against these securities, and there was no provision for credit losses recognized for the six months ended June 30, 2021. For the six months ended June 30, 2020, there was no credit loss recognized.

Securities available-for-sale having a carrying value of $20.6 million and $22.7 million as of June 30, 2021, and December 31, 2020, respectively, were pledged to secure public deposits, other borrowings and treasury tax and loan.