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INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2022

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, 2022
Securities held-to-maturity:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						$	153,713					$	—					$	(7,832)											$	145,881
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						61,464						—						(3,646)												57,818
Municipal securities						114,204						—						(6,951)												107,253
Total securities held-to-maturity						$	329,381					$	—					$	(18,429)											$	310,952
Securities available-for-sale:
SBA loan pool securities						$	13,918					$	—					$	(108)											$	13,810
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						12,084						—						(351)												11,733
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						170,827						438						(5,050)												166,215
Non-agency residential mortgage-backed securities						54,417						—						(3,955)												50,462
Collateralized loan obligations						492,775						—						(4,802)												487,973
Corporate debt securities						165,259						4,700						(1,377)												168,582
Total securities available-for-sale						$	909,280					$	5,138					$	(15,643)											$	898,775
December 31, 2021
Securities available-for-sale:
SBA loan pool securities						$	14,679					$	—					$	(88)											$	14,591
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						190,382						2,898						(1,311)												191,969
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						242,458						1,171						(2,088)												241,541
Municipal securities						117,913						2,641						(1,539)												119,015
Non-agency residential mortgage-backed securities						56,014						11						—												56,025
Collateralized loan obligations						521,275						—						(2,311)												518,964
Corporate debt securities						162,002						11,603						(7)												173,598
Total securities available-for-sale						$	1,304,723					$	18,324					$	(7,344)											$	1,315,703

During the first quarter of 2022, certain longer-duration fixed-rate mortgage-backed securities and municipal securities with an amortized cost basis of $346.0 million were transferred from the available-for-sale portfolio to the held-to-maturity portfolio. At the time of the transfer, the securities had an unrealized gross loss of $16.6 million, which along with the related unrealized loss in accumulated other comprehensive income, will be amortized into interest income as a yield adjustment over the remaining term of the securities.

At March 31, 2022, 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 held-to-maturity and available-for sale as of March 31, 2022 and December 31, 2021. Accrued interest receivable on debt securities held-to-maturity and available-for-sale totaled $6.0 million and $4.7 million at March 31, 2022 and December 31, 2021, and is included within other assets in the accompanying consolidated statements of financial condition.

At March 31, 2022 and December 31, 2021, 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 March 31,
($ in thousands)						2022						2021
Gross realized gains						$	209					$	—
Gross realized losses						(193)						—
Net realized gains on sales and calls						$	16					$	—
Proceeds from sales and calls						$	17,646					$	—

Investment securities with carrying values of $28.8 million and $28.9 million as of March 31, 2022 and December 31, 2021, 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 available-for-sale 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, 2022
Securities available-for-sale:
SBA loan pool securities						$	—					$	—					$	13,810					$	(108)					$	13,810					$	(108)
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						11,733						(351)						—						—						11,733						(351)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						84,047						(2,866)						15,723						(2,184)						99,770						(5,050)
Non-agency residential mortgage-backed securities						50,462						(3,955)						—						—						50,462						(3,955)
Collateralized loan obligations						226,353						(1,147)						251,620						(3,655)						477,973						(4,802)
Corporate debt securities						46,123						(1,377)						—						—						46,123						(1,377)
Total securities available-for-sale						$	418,718					$	(9,696)					$	281,153					$	(5,947)					$	699,871					$	(15,643)
December 31, 2021
Securities available-for-sale:
SBA loan pool securities						$	—					$	—					$	14,591					$	(88)					$	14,591					$	(88)
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						67,588						(1,311)						—						—						67,588						(1,311)
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						85,290						(1,184)						17,754						(904)						103,044						(2,088)
Municipal securities						44,748						(919)						10,762						(620)						55,510						(1,539)
Collateralized loan obligations						81,962						(38)						253,002						(2,273)						334,964						(2,311)
Corporate debt securities						4,993						(7)						—						—						4,993						(7)
Total securities available-for-sale						$	284,581					$	(3,459)					$	296,109					$	(3,885)					$	580,690					$	(7,344)

At March 31, 2022, our securities available-for-sale portfolio consisted of 79 securities, of which 56 securities were in an unrealized loss position. At December 31, 2021, our securities available-for-sale portfolio consisted of 119 securities, of which 46 securities were in an unrealized loss position.

We monitor our securities portfolio to ensure it has adequate credit support. We consider the lowest credit rating for identification of credit impairment for collateralized loan obligations and other securities. The decline in fair value of our securities since acquisition 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, rising inflation and conflict between Russia and Ukraine. 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. As of March 31, 2022, all of our collateralized loan obligations investment securities in an unrealized loss position received an investment grade credit rating.

During the three months ended March 31, 2022 and 2021, there was no provision for credit losses related to securities held-to-maturity or available-for-sale.

The following table presents the amortized cost and fair value of the investment securities portfolio, based on the earlier of maturity dates or next repricing date, as of March 31, 2022:

						Held-to-Maturity												Available-for-Sale
($ in thousands)						Amortized Cost						Fair Value						Amortized Cost						Fair Value
Maturity:
Within one year						$	—					$	—					$	600,944					$	596,427
One to five years						—						—						162,258						163,524
Five to ten years						14,825						14,143						66,735						64,402
Greater than ten years						314,556						296,809						79,343						74,422
Total						$	329,381					$	310,952					$	909,280					$	898,775

The following table presents the fair value and weighted average yields using amortized cost, of the securities held-to-maturity portfolio as of March 31, 2022, based on the earlier of maturity dates or next repricing dates:

						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 held-to-maturity:
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						$	—					—		%				$	—					—		%				$	—					—		%				$	145,881					2.69		%				$	145,881					2.69		%
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						—						—		%				—						—		%				—						—		%				57,818						2.64		%				57,818						2.64		%
Municipal securities						—						—		%				—						—		%				14,143						2.20		%				93,110						2.68		%				107,253						2.62		%
Total securities held-to-maturity						$	—					—		%				$	—					—		%				$	14,143					2.20		%				$	296,809					2.68		%				$	310,952					2.66		%

The following table presents the fair value and weighted average yields using amortized cost, of the securities available-for-sale portfolio as of March 31, 2022, based on the earlier of maturity dates or next repricing dates:

						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						$	13,810					0.98		%				$	—					—		%				$	—					—		%				$	—					—		%				$	13,810					0.98		%
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities						—						—		%				—						—		%				11,733						2.23		%				—						—		%				11,733						2.23		%
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations						94,644						0.80		%				9,923						1.98		%				37,688						1.36		%				23,960						1.74		%				166,215						1.14		%
Non-agency residential mortgage-backed securities						—						—		%				—						—		%				—						—		%				50,462						2.51		%				50,462						2.51		%
Collateralized loan obligations						487,973						1.87		%				—						—		%				—						—		%				—						—		%				487,973						1.87		%
Corporate debt securities						—						—		%				153,601						4.71		%				14,981						5.73		%				—						—		%				168,582						4.80		%
Total securities available-for-sale						$	596,427					1.68		%				$	163,524					4.54		%				$	64,402					2.39		%				$	74,422					2.27		%				$	898,775					2.29		%

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- References

No definition available.

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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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