| Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
Note 6 - Securities
The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:
| |
|
(Dollars in thousands) |
|
| |
|
|
|
|
|
Gross |
|
|
Gross |
|
|
Estimated |
|
| |
|
Cost |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
| |
|
Basis |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
| March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government sponsored entities |
|
$ |
8,883 |
|
|
$ |
- |
|
|
$ |
(1,141 |
) |
|
|
7,742 |
|
| U.S. treasury securities |
|
|
389 |
|
|
|
- |
|
|
|
- |
|
|
|
389 |
|
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
|
159,376 |
|
|
|
- |
|
|
|
(26,067 |
) |
|
|
133,309 |
|
| Municipal securities |
|
|
280,604 |
|
|
|
69 |
|
|
|
(45,229 |
) |
|
|
235,444 |
|
| Collateralized debt obligations |
|
|
2,173 |
|
|
|
- |
|
|
|
(1,156 |
) |
|
|
1,017 |
|
| Total securities available-for-sale |
|
$ |
451,425 |
|
|
$ |
69 |
|
|
$ |
(73,593 |
) |
|
$ |
377,901 |
|
| |
|
(Dollars in thousands) |
|
| |
|
|
|
|
|
Gross |
|
|
Gross |
|
|
Estimated |
|
| |
|
Cost |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
| |
|
Basis |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
| December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government sponsored entities |
|
$ |
8,883 |
|
|
$ |
- |
|
|
$ |
(1,258 |
) |
|
$ |
7,625 |
|
| U.S. treasury securities |
|
|
389 |
|
|
|
- |
|
|
|
- |
|
|
|
389 |
|
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
|
163,000 |
|
|
|
- |
|
|
|
(28,884 |
) |
|
|
134,116 |
|
| Municipal securities |
|
|
281,032 |
|
|
|
7 |
|
|
|
(53,321 |
) |
|
|
227,718 |
|
| Collateralized debt obligations |
|
|
2,173 |
|
|
|
- |
|
|
|
(1,125 |
) |
|
|
1,048 |
|
| Total securities available-for-sale |
|
$ |
455,477 |
|
|
$ |
7 |
|
|
$ |
(84,588 |
) |
|
$ |
370,896 |
|
The cost basis and estimated fair value of available-for-sale debt securities at March 31, 2023, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.
| |
|
(Dollars in thousands) |
|
| |
|
Available-for-sale |
|
| |
|
|
|
|
|
Estimated |
|
| |
|
Cost |
|
|
Fair |
|
| March 31, 2023 |
|
Basis |
|
|
Value |
|
| Due in one year or less |
|
$ |
795 |
|
|
$ |
795 |
|
| Due from one to five years |
|
|
7,062 |
|
|
|
6,363 |
|
| Due from five to ten years |
|
|
20,004 |
|
|
|
18,548 |
|
| Due over ten years |
|
|
264,188 |
|
|
|
218,886 |
|
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
|
159,376 |
|
|
|
133,309 |
|
| Total |
|
$ |
451,425 |
|
|
$ |
377,901 |
|
Sales of available-for-sale securities were as follows for the three months ended:
| |
|
(Dollars in thousands) |
|
| |
|
March 31, |
|
|
March 31, |
|
| |
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
| Proceeds |
|
$ |
- |
|
|
$ |
16,236 |
|
| Gross gains |
|
|
- |
|
|
|
397 |
|
| Gross losses |
|
|
- |
|
|
|
(16 |
) |
Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:
| |
|
(Dollars in thousands) |
|
| |
|
Unrealized
gain/(loss) |
|
| Ending balance, December 31, 2021 |
|
$ |
4,276 |
|
| Current period change |
|
|
(37,738 |
) |
| Ending balance, March 31, 2022 |
|
$ |
(33,462 |
) |
| |
|
(Dollars in thousands) |
|
| |
|
Unrealized
gain/(loss) |
|
| Ending balance, December 31, 2022 |
|
$ |
(64,300 |
) |
| Current period change |
|
|
8,405 |
|
| Ending balance, March 31, 2023 |
|
$ |
(55,895 |
) |
Securities with market values of approximately $320.7 million and $223.7 million were pledged as of March 31, 2023 and December 31, 2022, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
Securities with gross unrealized losses at March 31, 2023, and December 31, 2022 not recognized in income are as follows:
| |
|
(Dollars in thousands) |
|
|
|
|
|
| |
|
Less than 12 months |
|
|
12 months or longer |
|
|
Total |
|
|
|
|
|
| |
|
Estimated |
|
|
|
|
|
|
Estimated |
|
|
|
|
|
|
Estimated |
|
|
|
|
|
|
Percentage of |
|
| |
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Total Portfolio |
|
| |
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
in Loss Position |
|
| March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government sponsored entities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,742 |
|
|
$ |
(1,141 |
) |
|
$ |
7,742 |
|
|
$ |
(1,141 |
) |
|
|
100.0 |
% |
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
|
3,617 |
|
|
|
(125 |
) |
|
|
129,692 |
|
|
|
(25,942 |
) |
|
|
133,309 |
|
|
|
(26,067 |
) |
|
|
100.0 |
% |
| Municipal securities |
|
|
10,579 |
|
|
|
(197 |
) |
|
|
215,135 |
|
|
|
(45,032 |
) |
|
|
225,714 |
|
|
|
(45,229 |
) |
|
|
95.9 |
% |
| Collateralized debt obligations |
|
|
- |
|
|
|
- |
|
|
|
1,017 |
|
|
|
(1,156 |
) |
|
|
1,017 |
|
|
|
(1,156 |
) |
|
|
100.0 |
% |
| Total temporarily impaired |
|
$ |
14,196 |
|
|
$ |
(322 |
) |
|
$ |
353,586 |
|
|
$ |
(73,271 |
) |
|
$ |
367,782 |
|
|
$ |
(73,593 |
) |
|
|
97.3 |
% |
| Number of securities |
|
|
|
|
|
|
28 |
|
|
|
|
|
|
|
408 |
|
|
|
|
|
|
|
436 |
|
|
|
|
|
| |
|
(Dollars in thousands) |
|
|
|
|
|
| |
|
Less than 12 months |
|
|
12 months or longer |
|
|
Total |
|
|
|
|
|
| |
|
Estimated |
|
|
|
|
|
|
Estimated |
|
|
|
|
|
|
Estimated |
|
|
|
|
|
|
Percentage of |
|
| |
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Total Portfolio |
|
| |
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
in Loss Position |
|
| December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| U.S. government sponsored entities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,625 |
|
|
$ |
(1,258 |
) |
|
$ |
7,625 |
|
|
$ |
(1,258 |
) |
|
|
100.0 |
% |
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
|
32,700 |
|
|
|
(4,955 |
) |
|
|
101,416 |
|
|
|
(23,929 |
) |
|
|
134,116 |
|
|
|
(28,884 |
) |
|
|
100.0 |
% |
| Municipal securities |
|
|
171,581 |
|
|
|
(35,935 |
) |
|
|
52,961 |
|
|
|
(17,386 |
) |
|
|
224,542 |
|
|
|
(53,321 |
) |
|
|
98.6 |
% |
| Collateralized debt obligations |
|
|
- |
|
|
|
- |
|
|
|
1,048 |
|
|
|
(1,125 |
) |
|
|
1,048 |
|
|
|
(1,125 |
) |
|
|
100.0 |
% |
| Total temporarily impaired |
|
$ |
204,281 |
|
|
$ |
(40,890 |
) |
|
$ |
163,050 |
|
|
$ |
(43,698 |
) |
|
$ |
367,331 |
|
|
$ |
(84,588 |
) |
|
|
99.0 |
% |
| Number of securities |
|
|
|
|
|
|
311 |
|
|
|
|
|
|
|
135 |
|
|
|
|
|
|
|
446 |
|
|
|
|
|
At March 31, 2023, collateralized debt obligations with a cost basis of $2.2 million and fair value of $1.0 million, had previously recorded impairment of $173 thousand, which will not be recoverable until maturity of the security.
Accrued interest receivable on AFS debt securities totaled $2.4 million at March 31, 2023, and is excluded from the estimate of credit losses. The Bancorp made the policy election to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately on the condensed consolidated balance sheet.
Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold those securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.
|