INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2021

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
September 30, 2021





Securities available-for-sale:
SBA loan pool securities	$	15,489	$	—	$	(68)	$	15,421
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	190,708		3,556		(978)		193,286
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	254,775		2,062		(1,532)		255,305
Municipal securities	117,955		3,167		(705)		120,417
Non-agency residential mortgage-backed securities	149		5		—		154

Collateralized loan obligations	551,775		—		(2,498)		549,277
Corporate debt securities	156,995		12,513		—		169,508
Total securities available-for-sale	$	1,287,846	$	21,303	$	(5,781)	$	1,303,368
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 September 30, 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 September 30, 2021 and December 31, 2020. Accrued interest receivable on debt securities available-for-sale totaled $5.9 million at both September 30, 2021 and December 31, 2020, and is included within other assets in the accompanying consolidated statements of financial condition.

At September 30, 2021 and December 31, 2020, there were no holdings of any one issuer, other than U.S. government agency and 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 September 30,				Nine Months Ended September 30,
($ in thousands)	2021		2020		2021		2020
Gross realized gains	$	—	$	—	$	—	$	2,011
Gross realized losses	—		—		—		—
Net realized gains on sales and calls	$	—	$	—	$	—	$	2,011
Proceeds from sales and calls(1)	$	20,000	$	—	$	120,230	$	52,727

(1) Includes proceeds from CLO resets

Investment securities with carrying values of $28.9 million and $43.7 million as of September 30, 2021 and December 31, 2020, were pledged to secure FHLB advances, public deposits or 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
September 30, 2021





Securities available-for-sale:
SBA loan pool securities	$	3,476	$	(6)	$	11,945	$	(62)	$	15,421	$	(68)
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	54,501		(978)		—		—		54,501		(978)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	77,262		(1,048)		9,686		(484)		86,948		(1,532)
Municipal securities	43,346		(261)		10,945		(444)		54,291		(705)


Collateralized loan obligations	66,956		(44)		258,320		(2,454)		325,276		(2,498)

Total securities available-for-sale	$	245,541	$	(2,337)	$	290,896	$	(3,444)	$	536,437	$	(5,781)

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 September 30, 2021, our securities available-for-sale portfolio consisted of 116 securities, of which 44 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 September 30, 2021, all of our collateralized loan obligations investment securities in an unrealized loss position received an investment grade credit rating. The improvement in fair value was attributable to a combination of changes in interest rates and tightening of credit spreads from improving economic conditions. 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 and nine months ended September 30, 2021 and 2020, no provision 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 September 30, 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	$	15,421	0.93	%	$	—	—	%	$	—	—	%	$	—	—	%	$	15,421	0.93	%
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities	—		—	%	—		—	%	29,294		2.20	%	163,992		2.16	%	193,286		2.17	%
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations	105,662		0.63	%	10,978		1.97	%	42,423		1.34	%	96,242		1.75	%	255,305		1.23	%
Municipal securities	—		—	%	—		—	%	15,425		2.62	%	104,992		2.37	%	120,417		2.40	%
Non-agency residential mortgage-backed securities	—		—	%	—		—	%	—		—	%	154		6.36	%	154		6.36	%

Collateralized loan obligations	549,277		1.76	%	—		—	%	—		—	%	—		—	%	549,277		1.76	%
Corporate debt securities	—		—	%	151,201		4.82	%	18,307		5.73	%	—		—	%	169,508		4.91	%
Total securities available-for-sale	$	670,360	1.56	%	$	162,179	4.62	%	$	105,449	2.42	%	$	365,380	2.11	%	$	1,303,368	2.15	%