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INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2021

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
March 31, 2021
Securities available-for-sale:
SBA loan pool securities						$	16,812					$	—					$	(79)											$	16,733
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						122,300						1,419						(419)												123,300
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						210,343						2,079						(1,466)												210,956
Municipal securities						84,385						2,242						(1,089)												85,538
Non-agency residential mortgage-backed securities						154						4						—												158
Collateralized loan obligations						687,505						—						(3,632)												683,873
Corporate debt securities						141,982						8,302						(12)												150,272
Total securities available-for-sale						$	1,263,481					$	14,046					$	(6,697)											$	1,270,830
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

At March 31, 2021, our investment securities portfolio consisted of agency securities, municipal securities, mortgage-backed securities, collateralized loan obligations (“CLOs”), 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, 2021 and December 31, 2020. Accrued interest receivable on debt securities available-for-sale totaled $5.8 million and $4.5 million at March 31, 2021 and December 31, 2020, and is included within other assets in the accompanying consolidated statements of financial condition.

At March 31, 2021 and December 31, 2020, there were no holdings of any one issuer, other than the U.S. government sponsored enterprises, 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)						2021						2020
Gross realized gains on sales and calls of securities available-for-sale						$	—					$	—
Gross realized losses on sales and calls of securities available-for-sale						—						—
Net realized (losses) gains on sales and calls of securities available-for-sale						$	—					$	—
Proceeds from sales and calls of securities available-for-sale						$	—					$	30,000

Investment securities with carrying values of $43.9 million and $43.7 million as of March 31, 2021 and December 31, 2020, 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, 2021
Securities available-for-sale:
SBA loan pool securities						$	16,733					$	(79)					$	—					$	—					$	16,733					$	(79)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage-backed securities						47,975						(419)						—						—						47,975						(419)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						42,339						(1,466)						—						—						42,339						(1,466)
Municipal securities						30,357						(1,089)						—						—						30,357						(1,089)
Collateralized loan obligations						37,446						(54)						427,177						(3,578)						464,623						(3,632)
Corporate debt securities						4,988						(12)						—						—						4,988						(12)
Total securities available-for-sale						$	179,838					$	(3,119)					$	427,177					$	(3,578)					$	607,015					$	(6,697)
December 31, 2020
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)
Total securities available-for-sale						$	112,563					$	(477)					$	613,010					$	(9,495)					$	725,573					$	(9,972)

At March 31, 2021, our securities available-for-sale portfolio consisted of 111 securities, of which 47 securities were in an unrealized loss position. At December 31, 2020, our securities available-for-sale portfolio consisted of 103 securities, of which 50 securities 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 March 31, 2021, 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. Securities that are in an unrealized gain position or are trading at par are evaluated for continued inclusion in our portfolio based on interest rate, liquidity and yield objectives of the Company.

During the three months ended March 31, 2021 and 2020, no allowance for credit losses related to securities available-for-sale was recorded.

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 March 31, 2021:

						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						$	16,733					1.34		%				$	—					—		%				$	—					—		%				$	—					—		%				$	16,733					1.34		%
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						—						—		%				—						—		%				29,238						2.20		%				94,062						2.35		%				123,300						2.31		%
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						110,147						0.67		%				11,193						1.99		%				42,747						1.35		%				46,869						1.76		%				210,956						1.12		%
Municipal securities						—						—		%				—						—		%				9,193						2.60		%				76,345						2.49		%				85,538						2.51		%
Non-agency residential mortgage-backed securities						—						—		%				—						—		%				—						—		%				158						6.36		%				158						6.36		%
Collateralized loan obligations						683,873						1.86		%				—						—		%				—						—		%				—						—		%				683,873						1.86		%
Corporate debt securities						—						—		%				132,244						5.01		%				18,028						5.73		%				—						—		%				150,272						5.08		%
Total securities available-for-sale						$	810,753					1.69		%				$	143,437					4.77		%				$	99,206					2.40		%				$	217,434					2.28		%				$	1,270,830					2.18		%

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X

- 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
-SubTopic 320
-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

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph (b)

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