Note 8 - Investment Securities

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

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

8. 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 March 31, 2022, and December 31, 2021:

	March 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	119,757	$	4	$	13	$	119,748
U.S. government agency entities		82,300		1,050		134		83,216
Mortgage-backed securities		929,428		521		56,444		873,505
Collateralized mortgage obligations		9,282		—		894		8,388
Corporate debt securities		144,096		50		9,462		134,684
Total	$	1,284,863	$	1,625	$	66,947	$	1,219,541

	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
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 March 31, 2022, the amortized cost of AFS debt securities excluded accrued interest receivables of $2.9 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 1 - Summary of Significant Accounting Policies – Securities Available for Sale – Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements in the Company’s 2021 Form 10-K.

The amortized cost and fair value of securities available-for-sale as of March 31, 2022, 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.  

	March 31, 2022
	Securities Available-For-Sale
	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	124,789	$	124,794
Due after one year through five years		126,637		117,089
Due after five years through ten years		142,206		141,424
Due after ten years		891,231		836,234
Total	$	1,284,863	$	1,219,541

Equity Securities - The Company recognized a net gain of $5.9 million for the three months ended March 31, 2022, due to the increase in fair value during the quarter of equity investments with readily determinable fair values compared to a net loss of $2.8 million for the three months ended March 31, 2021. Equity securities were $27.7 million and $22.3 million as of March 31, 2022, and December 31, 2021, 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  March 31, 2022, and  December 31, 2021:

	March 31, 2022
	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	$	39,603	$	13	$	—	$	—	$	39,603	$	13
U.S. government agency entities		—		—		2,221		134		2,221		134
Mortgage-backed securities		695,157		40,532		144,040		15,912		839,197		56,444
Collateralized mortgage obligations		8,274		879		114		15		8,388		894
Corporate debt securities		102,960		7,858		18,396		1,604		121,356		9,462
Total	$	845,994	$	49,282	$	164,771	$	17,665	$	1,010,765	$	66,947

	December 31, 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		—		—		2,337		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 March 31, 2022, the Company had a total of 156 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 135 U.S. government-sponsored mortgage-backed securities, and 14 Corporate debt securities. In comparison, as of December 31, 2021, the Company has a total of 88 AFS debt securities in a gross unrealized loss position with no impairment, consisting primarily of 70 U.S. government-sponsored mortgage-backed securities, and 12 Corporate debt securities.

Allowance for Credit Losses

The securities that were in an unrealized loss position at March 31, 2022, 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 in the Company’s 2021 Form 10-K.

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 March 31, 2022, against these securities, and there was no provision for credit losses recognized for the three months ended March 31, 2022. For the three months ended March 31, 2021, there was no credit loss recognized.

Securities available-for-sale having a carrying value of $28.8 million and $30.5 million as of March 31, 2022, and December 31, 2021, respectively, were pledged to secure public deposits, other borrowings, treasury tax and loan.