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Investments in AFS Debt Securities | 6 Months Ended
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Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Investments in AFS Debt Securities | Investments in AFS Debt Securities In the third quarter of 2021, we began investing in debt securities. As of June 30, 2022 and December 31, 2021, all of our investments in debt securities were classified as available-for-sale. During the first quarter of 2022, we acquired additional investments in AFS debt securities with the Bank Merger. The following table presents our investments in AFS debt securities as of the dates indicated:
|  | June 30, 2022
|  | Amortized Cost(1) |  | Accrued Interest |  | Gross Unrealized Gains |  | Gross Unrealized Losses(2) |  | Fair Value
Investments in AFS debt securities(3): |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 121,284 |  |  | $ | 151 |  |  | $ | — |  |  | $ | (3,249) |  |  | $ | 118,186 |
Multinational securities(4) |  | 19,785 |  |  | 109 |  |  | — |  |  | (692) |  |  | 19,202 |
Corporate bonds |  | 42,125 |  |  | 256 |  |  | — |  |  | (2,477) |  |  | 39,904 |
Agency mortgage-backed securities |  | 9,650 |  |  | 24 |  |  | — |  |  | (731) |  |  | 8,943 |
Other asset-backed securities |  | 9,583 |  |  | 5 |  |  | — |  |  | (466) |  |  | 9,122 |
Other(5) |  | 2,741 |  |  | 21 |  |  | — |  |  | (186) |  |  | 2,576 |
Total investments in AFS debt securities |  | $ | 205,168 |  |  | $ | 566 |  |  | $ | — |  |  | $ | (7,801) |  |  | $ | 197,933 |
|  | December 31, 2021
|  | Amortized Cost |  | Accrued Interest |  | Gross Unrealized Gains |  | Gross Unrealized Losses(2) |  | Fair Value
Investments in AFS debt securities(3): |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 103,014 |  |  | $ | 73 |  |  | $ | — |  |  | $ | (584) |  |  | $ | 102,503 |
Multinational securities(4) |  | 19,911 |  |  | 109 |  |  | — |  |  | (154) |  |  | 19,866 |
Corporate bonds |  | 39,894 |  |  | 235 |  |  | — |  |  | (480) |  |  | 39,649 |
Agency TBA(6) |  | 7,457 |  |  | 13 |  |  | 4 |  |  | (8) |  |  | 7,466 |
Agency mortgage-backed securities |  | 4,153 |  |  | 14 |  |  | — |  |  | (31) |  |  | 4,136 |
Other asset-backed securities |  | 9,610 |  |  | 5 |  |  | — |  |  | (91) |  |  | 9,524 |
Commercial paper |  | 9,939 |  |  | — |  |  | — |  |  | — |  |  | 9,939 |
Other(5) |  | 1,818 |  |  | 13 |  |  | — |  |  | (7) |  |  | 1,824 |
Total investments in AFS debt securities |  | $ | 195,796 |  |  | $ | 462 |  |  | $ | 4 |  |  | $ | (1,355) |  |  | $ | 194,907 |
_____________________ (1) Amortized cost basis reflects the amortization of premiums of $186 and $477 during the three and six months ended June 30, 2022, respectively. (2) As of June 30, 2022 and December 31, 2021, we determined that our unrealized loss positions related to credit losses were immaterial. Additionally, we do not intend to sell the securities in loss positions nor is it more likely than not that we will be required to sell the securities prior to recovery of the amortized cost basis. Further, no such investments have been in a continuous unrealized loss position for more than 12 months. (3) Investments in AFS debt securities are recorded at fair value. (4) Includes sovereign foreign and supranational bonds. (5) Includes state and city municipal bond securities. (6) Represented to-be-announced (“TBA”) securities, which were securities that were delivered under the purchase contract at a later date when the underlying security was issued. The December 31, 2021 balance was paid in cash during 2022. The following table presents the amortized cost and fair value of our investments in AFS debt securities by contractual maturity as of the date indicated:
|  | Due Within One Year |  | Due After One Year Through Five Years |  | Due After Five Years Through Ten Years |  | Due After Ten Years |  | Total
June 30, 2022 |  |  |  |  |  |  |  |  |  |
Investments in AFS debt securities—Amortized cost: |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 45,021 |  |  | $ | 76,263 |  |  | $ | — |  |  | $ | — |  |  | $ | 121,284 |
Multinational securities |  | 3,942 |  |  | 15,843 |  |  | — |  |  | — |  |  | 19,785 |
Corporate bonds |  | 328 |  |  | 38,441 |  |  | 3,356 |  |  | — |  |  | 42,125 |
Agency mortgage-backed securities |  | — |  |  | 104 |  |  | 678 |  |  | 8,868 |  |  | 9,650 |
Other asset-backed securities |  | — |  |  | 7,600 |  |  | 1,983 |  |  | — |  |  | 9,583 |
Other |  | 600 |  |  | 1,207 |  |  | — |  |  | 934 |  |  | 2,741 |
Total investments in AFS debt securities |  | $ | 49,891 |  |  | $ | 139,458 |  |  | $ | 6,017 |  |  | $ | 9,802 |  |  | $ | 205,168 |
Weighted average yield for investments in AFS debt securities(1) |  | (1.19) | % |  | (4.49) | % |  | (4.73) | % |  | (22.78) | % |  | (4.57) | %
Investments in AFS debt securities—Fair value(2): |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 43,986 |  |  | $ | 74,049 |  |  | $ | — |  |  | $ | — |  |  | $ | 118,035 |
Multinational securities |  | 3,841 |  |  | 15,252 |  |  | — |  |  | — |  |  | 19,093 |
Corporate bonds |  | 318 |  |  | 36,158 |  |  | 3,172 |  |  | — |  |  | 39,648 |
Agency mortgage-backed securities |  | — |  |  | 98 |  |  | 630 |  |  | 8,191 |  |  | 8,919 |
Other asset-backed securities |  | — |  |  | 7,224 |  |  | 1,893 |  |  | — |  |  | 9,117 |
Other |  | 598 |  |  | 1,174 |  |  | — |  |  | 783 |  |  | 2,555 |
Total investments in AFS debt securities |  | $ | 48,743 |  |  | $ | 133,955 |  |  | $ | 5,695 |  |  | $ | 8,974 |  |  | $ | 197,367 |
_____________________ (1) The weighted average yield represents the effective yield for the investment securities and is computed based on the amortized cost of each security as of June 30, 2022. (2) Presentation of fair values of our investments in AFS debt securities by contractual maturity excludes total accrued interest of $566 as of June 30, 2022. The following table presents the gross proceeds and gross realized gains and losses from sales, maturities and paydowns of our investments in AFS debt securities during the three and six months ended June 30, 2022. Realized gains and losses are presented within noninterest income—other in the unaudited condensed consolidated statements of operations and comprehensive income (loss). There were no transfers between classifications of our investments in AFS debt securities during the periods presented.
|  | Three Months Ended June 30, 2022 |  | Six Months Ended June 30, 2022
Investments in AFS debt securities |  |  |  |
Gross realized gains included in earnings |  | $ | — |  |  | $ | — |
Gross realized losses included in earnings |  | (124) |  |  | (285) |
Net realized losses |  | (124) |  |  | (285) |
Gross proceeds from sales, maturities and paydowns(1) |  | $ | 7,788 |  |  | $ | 37,403 |
_____________________ (1) Proceeds from maturities and paydowns of investments in AFS debt securities during the three and six months ended June 30, 2022 were $1,942 and $13,906, respectively. See Note 11 for unrealized gains and losses on our investments in AFS debt securities and amounts reclassified out of accumulated other comprehensive income (loss) (“AOCI”).

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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