INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

The following table presents the amortized cost and fair value of the investment securities portfolio as of the dates indicated:



($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2020
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	$	100,971	$	3,050	$	—		$	104,021
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	140,797		299		(1,677		)	139,419
Municipal securities	52,985		1,400		—			54,385
Non-agency residential mortgage-backed securities	163		—		(3		)	160
Collateralized loan obligations	703,605		—		(80,034		)	623,571
Corporate debt securities	47,658		586		(373		)	47,871
Total securities available-for-sale	$	1,046,179	$	5,335	$	(82,087	)	$	969,427
December 31, 2019
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	$	37,613	$	—	$	(1,157	)	$	36,456
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	91,543		16		(260		)	91,299
Municipal securities	52,997		51		(359		)	52,689
Non-agency residential mortgage-backed securities	191		5		—			196
Collateralized loan obligations	733,605		—		(15,244		)	718,361
Corporate debt securities	13,500		79		—			13,579
Total securities available-for-sale	$	929,449	$	151	$	(17,020	)	$	912,580

At March 31, 2020, our investment securities portfolio consisted of agency securities, municipal securities, mortgage-backed securities, collateralized loan obligations and corporate debt securities. The expected maturities of these types of securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There was no allowance for credit losses for debt securities as of March 31, 2020. Accrued interest receivable on debt securities available-for-sale totaled $5.7 million and $5.6 million at March 31, 2020 and December 31, 2019, and is included within other assets in the accompanying consolidated balance sheets. This amount is excluded from the estimate of expected credit losses.

At March 31, 2020 and December 31, 2019, there were no holdings of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10 percent of our stockholders’ equity.

The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated:



	Three Months Ended March 31,
($ in thousands)	2020		2019
Gross realized gains on sales and calls of securities available-for-sale	$	—	$	208
Gross realized losses on sales and calls of securities available-for-sale	—		—
Net realized gains on sales and calls of securities available-for-sale	$	—	$	208
Proceeds from sales and calls of securities available-for-sale	$	30,000	$	521,684

Investment securities with carrying values of $39.9 million and $44.0 million as of March 31, 2020 and December 31, 2019 were pledged to secure FHLB advances, public deposits and for other purposes as required or permitted by law.

The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated:



	Less Than 12 Months					12 Months or Longer					Total
($ in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
March 31, 2020
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	$	104,520	$	(1,677	)	$	—	$	—		$	104,520	$	(1,677	)
Non-agency residential mortgage-backed securities	160		(3		)	—		—			160		(3		)
Collateralized loan obligations	58,887		(6,113		)	564,684		(73,921		)	623,571		(80,034		)
Corporate debt securities	17,045		(373		)	—		—			17,045		(373		)
Total securities available-for-sale	$	180,612	$	(8,166	)	$	564,684	$	(73,921	)	$	745,296	$	(82,087	)

December 31, 2019
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	$	35,872	$	(1,157	)	$	—	$	—		$	35,872	$	(1,157	)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	73,379		(260		)	—		—			73,379		(260		)
Municipal securities	31,723		(359		)	—		—			31,723		(359		)
Collateralized loan obligations	49,553		(447		)	668,808		(14,797		)	718,361		(15,244		)
Total securities available-for-sale	$	190,527	$	(2,223	)	$	668,808	$	(14,797	)	$	859,335	$	(17,020	)

At March 31, 2020, our securities available-for-sale portfolio consisted of 85 securities, 54 of which were in an unrealized loss position. At December 31, 2019, our securities available-for-sale portfolio consisted of 70 securities, 60 of which were in an unrealized loss position.

We monitor our securities portfolio to ensure it has adequate credit support. The majority of unrealized losses are related to our collateralized loan obligations. We also consider the lowest credit rating for identification of credit impairment for other securities. As of March 31, 2020, nearly all of our non-agency mortgage-backed securities and collateralized loan obligations investment securities in an unrealized loss position received an investment grade credit rating. Although credit spreads widened during the quarter, the decline in fair value is attributable to a combination of changes in interest rates and general volatility in the credit market conditions. We do not have the intent to sell these 54 securities in an unrealized loss position and further believe it is more likely that not that we will not be required to sell these securities before their anticipated recovery.

The following table presents maturities, based on the earlier of maturity dates or next repricing date, and yield information of the investment securities portfolio as of March 31, 2020:



	One year or less				More than One Year through Five Years				More than Five Years through Ten Years				More than Ten Years				Total
($ in thousands)	Fair Value		Weighted-Average Yield		Fair Value		Weighted-Average Yield		Fair Value		Weighted-Average Yield		Fair Value		Weighted-Average Yield		Fair Value			Weighted-Average Yield
Securities available-for-sale:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	$	—	—	%	$	—	—	%	$	29,993	2.20	%	$	74,028	2.36	%	$	104,021		2.32	%
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	118,165		2.09	%	11,060		2.34	%	10,194		2.43	%	—		—	%	139,419			2.14	%
Municipal securities	—		—	%	—		—	%	—		—	%	54,385		2.79	%	54,385		—	2.79	%
Non-agency residential mortgage-backed securities	—		—	%	—		—	%	—		—	%	160		5.46	%	160			5.46	%
Collateralized loan obligations	623,571		3.43	%	—		—	%	—		—	%	—		—	%	623,571			3.43	%
Corporate debt securities	—		—	%	28,207		3.70	%	19,664		4.21	%	—		—	%	47,871			3.91	%
Total securities available-for-sale	$	741,736	3.22	%	$	39,267	3.32	%	$	59,851	2.90	%	$	128,573	2.55	%	$	969,427		3.14	%