Note 3 - Investment Securities

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

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

3.         Investment Securities

Investment Securities. The following tables reflect the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of debt securities available-for-sale as of December 31, 2021 and December 31, 2020:

	As of December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	—	$	—	$	—	$	—
U.S. government agency entities		86,475		1,169		135		87,509
Mortgage-backed securities		886,614		9,465		7,414		888,665
Collateralized mortgage obligations		9,547		—		430		9,117
Corporate debt securities		144,231		441		2,654		142,018
Total	$	1,126,867	$	11,075	$	10,633	$	1,127,309

	As of 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

The amortized cost and fair value of securities available-for-sale at December 31, 2021, by contractual maturities, are set forth in the table 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.  

	Securities Available-for-Sale
	As of December 31, 2021
	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	5,005	$	5,009
Due after one year through five years		126,871		124,148
Due after five years through ten years		137,989		141,331
Due after ten years		857,002		856,821
Total	$	1,126,867	$	1,127,309

Proceeds from the sale of investment securities were $21.1 million during 2021 compared to $117.2 million during 2020. Proceeds from repayments, maturities and calls of investment securities during 2021 were $424.4 million compared to $734.5 million during 2020. In 2021, the Company recorded realized gains of $853 thousand and zero losses on sales of investment securities compared to realized gains of $1.7 million and zero losses on sales of investment securities in 2020.

Allowance for Credit Losses

The securities that were in an unrealized loss position at December 31, 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 1 Summary of Significant Accounting Policies - Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements.

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 December 31, 2021, against these securities, and there was no provision for credit losses recognized for the year ended December 31, 2021.

The tables below show the related fair value and the gross unrealized losses of the Company’s investment portfolio, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021, and December 31, 2020:

	As of December 31, 2021
	Less than 12 months				12 months or longer				Total
	Fair		Gross Unrealized		Fair		Gross Unrealized		Fair		Gross Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	—	$	—	$	—	$	—	$	—	$	—
U.S. government agency entities		—		—		2,337		135		2,337		135
Mortgage-backed securities		527,276		6,659		6,496		755		533,772		7,414
Collateralized mortgage obligations		8,989		417		128		13		9,117		430
Corporate debt securities		103,720		2,122		19,468		532		123,188		2,654
Total	$	639,985	$	9,198	$	28,429	$	1,435	$	668,414	$	10,633

	As of December 31, 2020
	Less than 12 months				12 months or longer				Total
	Fair		Gross Unrealized		Fair		Gross Unrealized		Fair		Gross 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

Securities available-for-sale having a carrying value of $30.5 million and $22.7 million as of December 31, 2021, and December 31, 2020, respectively, were pledged to secure public deposits, other borrowings, treasury tax and loans.

For the year ended December 31, 2021, the Company recognized a net loss of $1.4 million due to the decrease in fair value of equity investments with readily determinable fair values, compared to a net loss of $1.1 million in 2020. Equity securities were $22.3 million as of December 31, 2021, compared to $23.7 million as of December 31, 2020.