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INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES

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
December 31, 2020
Securities available-for-sale:
SBA loan pool securities						$	17,436					$	—					$	(82)					$	17,354
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						99,591						6,793						—						106,384
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						209,426						2,571						(166)						211,831
Municipal securities						64,355						4,272						(4)						68,623
Non-agency residential mortgage-backed securities						156						4						—						160
Collateralized loan obligations						687,505						—						(9,720)						677,785
Corporate debt securities						141,975						7,319						—						149,294
Total securities available-for-sale						$	1,220,444					$	20,959					$	(9,972)					$	1,231,431
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 December 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 December 31, 2020. Accrued interest receivable on debt securities available-for-sale totaled $4.5 million and $5.6 million at December 31, 2020 and December 31, 2019, and is included within other assets in the accompanying consolidated statements of financial condition. Accrued interest receivable is excluded from the estimate of expected credit losses.

At December 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% 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:

						Year Ended December 31,
($ in thousands)						2020						2019						2018
Gross realized gains on sales and calls of securities available-for-sale						$	2,011					$	556					$	5,532
Gross realized losses on sales and calls of securities available-for-sale						—						(5,408)						—
Net realized gains (losses) on sales and calls of securities available-for-sale						$	2,011					$	(4,852)					$	5,532
Proceeds from sales and calls of securities available-for-sale						$	68,829					$	1,249,588					$	1,025,471

Investment securities with carrying values of $43.7 million and $44.0 million as of December 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
December 31, 2020
Securities available-for-sale:
SBA loan pool securities						$	17,354					$	(82)					$	—					$	—					$	17,354					$	(82)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						19,033						(166)						—						—						19,033						(166)
Municipal securities						11,401						(4)						—						—						11,401						(4)
Collateralized loan obligations						64,775						(225)						613,010						(9,495)						677,785						(9,720)
Corporate debt securities						—						—						—						—						—						—
Total securities available-for-sale						$	112,563					$	(477)					$	613,010					$	(9,495)					$	725,573					$	(9,972)
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 December 31, 2020, our securities available-for-sale portfolio consisted of 103 securities, 50 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 consider the lowest credit rating for identification of credit impairment for collateralized loan obligations and other securities. As of December 31, 2020, all of our collateralized loan obligations investment securities in an unrealized loss position received an investment grade credit rating. The decline in fair value was attributable to a combination of changes in interest rates and general volatility in the credit market conditions in response to the economic uncertainty caused by the global pandemic. We do not currently intend to sell any of the securities in an unrealized loss position and further believe, it is more likely than not, that we will not be required to sell these securities before their anticipated recovery.

During the year ended December 31, 2020, no allowance for credit losses related to securities available-for-sale was recorded. Prior to the adoption of CECL on January 1, 2020, losses related to securities available-for-sale were evaluated for OTTI. During the year ended December 31, 2019, we recorded OTTI for our remaining portfolio of mortgage-backed securities of $731 thousand. This OTTI was recognized as a result of our strategic decision to liquidate this longer duration portfolio. During the year ended December 31, 2018, we recorded OTTI for our remaining portfolio of non-agency commercial mortgage-backed securities of $3.3 million. This OTTI was recognized as a result of decision to liquidate this portfolio.

The following table presents the fair value and yield information of the investment securities portfolio, based on the earlier of maturity dates or next repricing date, as of December 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:
SBA loan pool securities						$	17,354					1.71		%				$	—					—		%				$	—					—		%				$	—					—		%				$	17,354					1.71		%
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						—						—		%				—						—		%				30,243						2.20		%				76,141						2.35		%				106,384						2.31		%
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						113,227						0.71		%				11,438						2.01		%				44,451						1.36		%				42,715						0.31		%				211,831						0.83		%
Municipal securities						—						—		%				—						—		%				9,456						2.60		%				59,167						2.62		%				68,623						2.62		%
Non-agency residential mortgage-backed securities						—						—		%				—						—		%				—						—		%				160						6.35		%				160						6.35		%
Collateralized loan obligations						677,785						1.86		%				—						—		%				—						—		%				—						—		%				677,785						1.86		%
Corporate debt securities						—						—		%				131,829						5.01		%				17,465						5.73		%				—						—		%				149,294						5.08		%
Total securities available-for-sale						$	808,366					1.70		%				$	143,267					4.77		%				$	101,615					2.40		%				$	178,183					1.93		%				$	1,231,431					2.14		%

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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 http://asc.fasb.org/subtopic&trid=2209399

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
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-URI http://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 http://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 http://asc.fasb.org/subtopic&trid=2176304

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