Securities

12 Months Ended

Dec. 31, 2021

Notes To Financial Statements

Securities

7. Securities

The Company did not hold any trading securities at December 31, 2021 and 2020. 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 December 31, 2021:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	50,836	$	53,362	$	2,526	$	—
Total municipals		50,836		53,362		2,526		—
FNMA		7,894		8,667		773		—
Total mortgage-backed securities		7,894		8,667		773		—
Allowance for Credit Losses		(862)		—		—		—
Total	$	57,868	$	62,029	$	3,299	$	—

The following table summarizes the Company’s portfolio of securities held-to-maturity at December 31, 2020:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	50,825	$	54,538	$	3,713	$	—
Total municipals		50,825		54,538		3,713		—
FNMA		7,914		8,991		1,077		—
Total mortgage-backed securities		7,914		8,991		1,077		—
Allowance for Credit Losses		(907)		—		—		—
Total	$	57,832	$	63,529	$	4,790	$	—

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2021:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	5,599	$	5,590	$	—	$	9
Corporate		107,423		104,370		136		3,189
Mutual funds		12,485		12,485		—		—
Collateralized loan obligations		81,166		80,912		1		255
Other		1,695		1,695		—		—
Total other securities		208,368		205,052		137		3,453
REMIC and CMO		210,948		208,509		1,217		3,656
GNMA		10,572		10,286		30		316
FNMA		203,777		202,938		1,321		2,160
FHLMC		152,760		150,451		326		2,635
Total mortgage-backed securities		578,057		572,184		2,894		8,767
Total securities available for sale	$	786,425	$	777,236	$	3,031	$	12,220

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2020:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	6,452	$	6,453	$	2	$	1
Corporate		130,000		123,865		131		6,266
Mutual funds		12,703		12,703		—		—
Collateralized loan obligations		100,561		99,198		—		1,363
Other		1,295		1,295		—		—
Total other securities		251,011		243,514		133		7,630
REMIC and CMO		175,142		180,877		5,735		—
GNMA		13,009		13,053		66		22
FNMA		143,154		146,169		3,046		31
FHLMC		63,796		64,361		648		83
Total mortgage-backed securities		395,101		404,460		9,495		136
Total securities available for sale	$	646,112	$	647,974	$	9,628	$	7,766

The corporate securities held by the Company at December 31, 2021 and 2020 are issued by U.S. banking institutions. The CMOs held by the Company at December 31, 2021 and 2020 are either fully guaranteed or issued by a government sponsored enterprise.

The following table details the amortized cost and fair value of the Company’s securities classified as held-to-maturity at December 31, 2021, by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:

	Amortized
	Cost		Fair Value
	(In thousands)
Due after ten years	$	50,836	$	53,362
Total other securities		50,836		53,362
Mortgage-backed securities		7,894		8,667
		58,730		62,029
Allowance for credit losses		(862)		-
Total securities held-to-maturity	$	57,868	$	62,029

The amortized cost and fair value of the Company’s securities, classified as available for sale at December 31, 2021, by contractual maturity, are shown below:

	Amortized
	Cost		Fair Value
	(In thousands)
Due after one year through five years	$	20,000	$	19,865
Due after five years through ten years		163,572		160,417
Due after ten years		12,311		12,285
Total other securities		195,883		192,567
Mutual funds		12,485		12,485
Mortgage-backed securities		578,057		572,184
Total securities available for sale	$	786,425	$	777,236

The following table shows 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 December 31, 2021:

		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Available for sale securities
U.S. government agencies	2	$	5,577	$	9	$	1,130	$	5	$	4,447	$	4
Corporate	13		94,234		3,189		65,453		1,970		28,781		1,219
CLO	4		31,012		255		10,000		1		21,012		254
Total other securities	19		130,823		3,453		76,583		1,976		54,240		1,477
REMIC and CMO	15		124,131		3,656		105,959		2,800		18,172		856
GNMA	4		9,924		316		1,138		16		8,786		300
FNMA	25		171,109		2,160		153,657		1,587		17,452		573
FHLMC	18		129,115		2,635		98,297		1,448		30,818		1,187
Total mortgage-backed securities	62		434,279		8,767		359,051		5,851		75,228		2,916
Total securities available for sale	81	$	565,102	$	12,220	$	435,634	$	7,827	$	129,468	$	4,393

The following table shows the Company’s available for sale 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 December 31, 2020:

		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Available for sale securities
U.S. government agencies	1	$	4,988	$	1	$	4,988	$	1	$	—	$	—
Corporate	14		113,734		6,266		—		—		113,734		6,266
CLO	13		99,199		1,363		7,441		52		91,758		1,311
Total other securities	28		217,921		7,630		12,429		53		205,492		7,577
GNMA	1		10,341		22		10,341		22		—		—
FNMA	5		32,463		31		23,864		28		8,599		3
FHLMC	3		30,095		83		30,095		83		—		—
Total mortgage-backed securities	9		72,899		136		64,300		133		8,599		3
Total securities available for sale	37	$	290,820	$	7,766	$	76,729	$	186	$	214,091	$	7,580

The Company reviewed each available for sale debt security that had an unrealized loss at December 31, 2021 and December 31, 2020. 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. All of these securities are rated investment grade or above and have a long history of no credit losses. 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.

In determining the risk of loss for available for sale securities, the Company considered that mortgage-backed securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to U.S. government, the tranche of the purchased collateralized loan obligations (“CLO”) and the issuer of Corporate securities are global systematically important banks. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. Based on this review, management believes that the unrealized losses have resulted from other factors not deemed credit-related and no allowance for credit loss was recorded.

Accrued interest receivable on held-to-maturity debt securities totaled $0.1 million each at December 31, 2021 and 2020 and is excluded from the estimate of credit losses. Accrued interest receivable on available-for-sale debt securities totaled $1.5 million and $1.3 million at December 31, 2021 and 2020 respectively and is excluded from the estimate of credit losses.

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity:

	Other Securities
	For the year ended December 31,
	2021		2020
Beginning balance	$	907	$	—
CECL adoption		—		340
Provision (benefit) for credit losses		(45)		567
Allowance for credit losses - securities	$	862	$	907

The Company did not have any allowance for credit losses for mortgage-backed securities for the year ended December 31, 2021 and 2020.

The Company sold available for sale securities with carrying values at the time of sale totaling $45.0 million, $221.0 million, and $26.4 million during the years ended December 31, 2021, 2020, and 2019, respectively. The Company purchased mortgage-backed available for sale securities totaling $340.8 million, $308.1 million, and $128.0 million during the years ended December 31, 2021, 2020, and 2019, respectively.  

The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:

	For the years ended
	December 31,
	2021		2020		2019
	(In thousands)
Gross gains from the sale of securities	$	123	$	1,499	$	423
Gross losses from the sale of securities		(10)		(2,200)		(438)
Net losses from the sale of securities	$	113	$	(701)	$	(15)

Included in “Other assets” within our Consolidated Statements of Financial Condition are amounts held in a rabbi trust for certain non-qualified deferred compensation plans totaling $26.3 million and $22.6 million at December 31, 2021 and 2020, respectively.