Note 4 - Securities

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

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

4. Securities

The Company did

not

hold any trading securities at

March 31, 2019

and

December 31, 2018.

Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at

March 31, 2019:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	22,532	$	22,276	$	–	$	256
Total other securities		22,532		22,276		–		256
FNMA		7,949		7,726		–		223
Total mortgage-backed securities		7,949		7,726		–		223
Total	$	30,481	$	30,002	$	–	$	479

The following table summarizes the Company’s portfolio of securities held-to-maturity at

December 31, 2018:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	24,065	$	22,508	$	–	$	1,557
Total other securities		24,065		22,508		–		1,557
FNMA		7,953		7,366		–		587
Total mortgage-backed securities		7,953		7,366		–		587
Total	$	32,018	$	29,874	$	–	$	2,144

The following table summarizes the Company’s portfolio of securities available for sale at

March 31, 2019:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	130,000	$	121,382	$	–	$	8,618
Municipals		32,772		33,061		289		–
Mutual funds		11,802		11,802		–		–
Collateralized loan obligations		100,311		99,305		10		1,016
Other		1,289		1,289		–		–
Total other securities		276,174		266,839		299		9,634
REMIC and CMO		400,522		396,890		1,719		5,351
GNMA		766		810		44		–
FNMA		95,360		94,197		302		1,465
FHLMC		87,736		87,288		413		861
Total mortgage-backed securities		584,384		579,185		2,478		7,677
Total securities available for sale	$	860,558	$	846,024	$	2,777	$	17,311

The following table summarizes the Company’s portfolio of securities available for sale at

December 31, 2018:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	130,000	$	118,535	$	–	$	11,465
Municipals		46,231		46,574		343		–
Mutual funds		11,586		11,586		–		–
Collateralized loan obligations		88,396		86,751		–		1,645
Other		1,256		1,256		–		–
Total other securities		277,469		264,702		343		13,110
REMIC and CMO		382,632		376,340		885		7,177
GNMA		785		826		41		–
FNMA		94,069		91,693		72		2,448
FHLMC		90,377		89,094		113		1,396
Total mortgage-backed securities		567,863		557,953		1,111		11,021
Total securities available for sale	$	845,332	$	822,655	$	1,454	$	24,131

We did

not

hold any private issue CMO’s that are collateralized by commercial real estate mortgages at

March 31, 2019

and

December 31, 2018.

The corporate securities held by the Company at

March 31, 2019

and

December 31, 2018

are issued by U.S. banking institutions.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at

March 31, 2019,

by contractual maturity. Expected maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties.

Securities held-to-maturity:	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	1,180	$	1,180
Due after ten years		21,352		21,096
Total other securities		22,532		22,276
Mortgage-backed securities		7,949		7,726
Total	$	30,481	$	30,002

Securities available for sale:	Amortized Cost		Fair Value
	(In thousands)
Due after one year through five years	$	10,000	$	9,587
Due after five years through ten years		131,963		123,717
Due after ten years		122,409		121,733
Total other securities		264,372		255,037
Mutual funds		11,802		11,802
Mortgage-backed securities		584,384		579,185
Total	$	860,558	$	846,024

The following tables show the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

	At March 31, 2019
			Total				Less than 12 months				12 months or more
	Count		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	21,096	$	256	$	–	$	–	$	21,096	$	256
Total other securities		1		21,096		256		–		–		21,096		256
FNMA		1		7,726		223		–		–		7,726		223
Total mortgage-backed securities		1		7,726		223		–		–		7,726		223
Total		2	$	28,822	$	479	$	–	$	–	$	28,822	$	479
Available for sale securities
Corporate		16	$	121,382	$	8,618	$	19,419	$	581	$	101,963	$	8,037
CLO		11		85,896		1,016		85,896		1,016		–		–
Total other securities		27		207,278		9,634		105,315		1,597		101,963		8,037
REMIC and CMO		36		215,761		5,351		20,259		79		195,502		5,272
FNMA		12		77,992		1,465		–		–		77,992		1,465
FHLMC		3		50,602		861		9,657		97		40,945		764
Total mortgage-backed securities		51		344,355		7,677		29,916		176		314,439		7,501
Total		78	$	551,633	$	17,311	$	135,231	$	1,773	$	416,402	$	15,538

	At December 31, 2018
			Total				Less than 12 months				12 months or more
	Count		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	19,940	$	1,557	$	–	$	–	$	19,940	$	1,557
Total other securities		1		19,940		1,557		–		–		19,940		1,557
FNMA		1		7,366		587		–		–		7,366		587
Total mortgage-backed  securities		1		7,366		587		–		–		7,366		587
Total securities held-to-maturity		2	$	27,306	$	2,144	$	–	$	–	$	27,306	$	2,144
Available for sale securities
Corporate		16	$	118,535	$	11,465	$	19,113	$	888	$	99,422	$	10,577
Municipals		3		4,220		–		4,220		–		–		–
CLO		11		86,752		1,645		86,752		1,645		–		–
Total other securities		30		209,507		13,110		110,085		2,533		99,422		10,577
REMIC and CMO		39		243,756		7,177		17,308		200		226,448		6,977
GNMA		1		51		–		51		–		–		–
FNMA		14		85,046		2,448		6,372		17		78,674		2,431
FHLMC		3		51,288		1,396		10,116		95		41,172		1,301
Total mortgage-backed  securities		57		380,141		11,021		33,847		312		346,294		10,709
Total securities available for sale		87	$	589,648	$	24,131	$	143,932	$	2,845	$	445,716	$	21,286

OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than

not

that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does

not

expect to sell a debt security in an unrealized loss position, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive loss (“AOCL”) within Stockholders’ Equity. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCL, net of tax.

The Company reviewed each investment that had an unrealized loss at

March 31, 2019

and

December 31, 2018.

The unrealized losses in held-to-maturity municipal securities at

March 31, 2019

and

December 31, 2018

were caused by illiquidity in the market and movements in interest rates. The unrealized losses in held-to-maturity FNMA securities at

March 31, 2019

and

December 31, 2018

were caused by movements in interest rates. The unrealized losses in securities available for sale at

March 31, 2019

and

December 31, 2018

were caused by movements in interest rates.

It is

not

anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does

not

have the intent to sell these securities and it is more likely than

not

the Company will

not

be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations,

none

of which the Company believes would cause the sale of the securities. Therefore, the Company did

not

consider these investments to be other-than-temporarily impaired at

March 31, 2019

and

December 31, 2018.

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company did

not

sell any securities during the

three

months ended

March 31, 2019

and

2018.