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INVESTMENT SECURITIES | 9 Months Ended
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Sep. 30, 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
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Securities held-to-maturity: |  |  |  |  |  |  |  |  |  |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities |  | $ | 153,127 |  |  | $ | — |  |  | $ | (29,178) |  |  |  |  | $ | 123,949 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations |  | 61,426 |  |  | — |  |  | (11,950) |  |  |  |  | 49,476 |
Municipal securities |  | 114,204 |  |  | — |  |  | (24,277) |  |  |  |  | 89,927 |
Total securities held-to-maturity |  | $ | 328,757 |  |  | $ | — |  |  | $ | (65,405) |  |  |  |  | $ | 263,352 |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |
SBA loan pool securities |  | $ | 12,156 |  |  | $ | 4 |  |  | $ | (54) |  |  |  |  | $ | 12,106 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities |  | 12,012 |  |  | — |  |  | (1,316) |  |  |  |  | 10,696 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations |  | 151,582 |  |  | — |  |  | (10,425) |  |  |  |  | 141,157 |
Non-agency residential mortgage-backed securities |  | 52,076 |  |  | — |  |  | (10,562) |  |  |  |  | 41,514 |
Collateralized loan obligations |  | 492,775 |  |  | — |  |  | (20,099) |  |  |  |  | 472,676 |
Corporate debt securities |  | 177,774 |  |  | 12 |  |  | (8,370) |  |  |  |  | 169,416 |
Total securities available-for-sale |  | $ | 898,375 |  |  | $ | 16 |  |  | $ | (50,826) |  |  |  |  | $ | 847,565 |
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 is subsequently amortized into interest income as a yield adjustment over the remaining life of the securities. The unrealized losses remaining in accumulated other comprehensive income are also accreted into interest income in a consistent manner. As a result, there is no impact on the consolidated statements of operations. At September 30, 2022, 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 held-to-maturity and available-for sale as of September 30, 2022 and December 31, 2021. We do not consider unrealized losses on these securities to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in non-credit related factors such as interest rates, market spreads, and market conditions subsequent to purchase. Accrued interest receivable on debt securities held-to-maturity and available-for-sale totaled $8.2 million and $4.7 million at September 30, 2022 and December 31, 2021, and is included within other assets in the accompanying consolidated statements of financial condition. At September 30, 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. Pledged Securities Investment securities with carrying values of $123.1 million and $8.9 million as of September 30, 2022 and December 31, 2021 were pledged to the Federal Reserve Discount Window ("FRB Discount Window"). Investments securities with carrying values of $214.6 million and zero as of September 30, 2022 and December 31, 2021 were pledged to secure FHLB advances. Securities Available-for-Sale The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
($ in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Gross realized gains |  | $ | — |  |  | $ | — |  |  | $ | 209 |  |  | $ | — |
Gross realized losses |  | — |  |  | — |  |  | (193) |  |  | — |
Net realized gains on sales and calls |  | $ | — |  |  | $ | — |  |  | $ | 16 |  |  | $ | — |
Proceeds from sales and calls |  | $ | — |  |  | $ | 20,000 |  |  | $ | 56,145 |  |  | $ | 120,230 |
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
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
SBA loan pool securities |  | $ | — |  |  | $ | — |  |  | $ | 9,474 |  |  | $ | (54) |  |  | $ | 9,474 |  |  | $ | (54) |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities |  | 10,696 |  |  | (1,316) |  |  | — |  |  | — |  |  | 10,696 |  |  | (1,316) |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations |  | 110,864 |  |  | (4,705) |  |  | 30,293 |  |  | (5,720) |  |  | 141,157 |  |  | (10,425) |
Non-agency residential mortgage-backed securities |  | 41,514 |  |  | (10,562) |  |  | — |  |  | — |  |  | 41,514 |  |  | (10,562) |
Collateralized loan obligations |  | 233,975 |  |  | (10,025) |  |  | 238,702 |  |  | (10,074) |  |  | 472,677 |  |  | (20,099) |
Corporate debt securities |  | 166,497 |  |  | (8,370) |  |  | — |  |  | — |  |  | 166,497 |  |  | (8,370) |
Total securities available-for-sale |  | $ | 563,546 |  |  | $ | (34,978) |  |  | $ | 278,469 |  |  | $ | (15,848) |  |  | $ | 842,015 |  |  | $ | (50,826) |
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 September 30, 2022, our securities available-for-sale portfolio consisted of 82 securities, of which 80 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. During the three and nine months ended September 30, 2022 and 2021, there was no provision for credit losses related to securities available-for-sale. 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 many factors, including but not limited to, 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 September 30, 2022, all of our collateralized loan obligations investment securities in an unrealized loss position received an investment grade credit rating. The following table presents the amortized cost and fair value of the investment securities portfolio, based on the earlier of contractual maturity dates or next repricing date, as of September 30, 2022:
|  | Held-to-Maturity |  | Available-for-Sale
($ in thousands) |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Earlier of maturity or next repricing date: |  |  |  |  |  |  |  |
Within one year |  | $ | — |  |  | $ | — |  |  | $ | 585,237 |  |  | $ | 564,436 |
One to five years |  | — |  |  | — |  |  | 173,721 |  |  | 164,704 |
Five to ten years |  | 28,705 |  |  | 24,157 |  |  | 64,851 |  |  | 56,549 |
Greater than ten years |  | 300,052 |  |  | 239,195 |  |  | 74,566 |  |  | 61,876 |
Total |  | $ | 328,757 |  |  | $ | 263,352 |  |  | $ | 898,375 |  |  | $ | 847,565 |
Contractual maturities may not reflect the actual maturities of the investments. The average lives for mortgage-backed securities and collateralized mortgage obligations likely will be shorter than their contractual maturities due to prepayments and amortization. The following table presents the fair value and weighted average yields or tax-equivalent yields using amortized cost of the securities held-to-maturity portfolio as of September 30, 2022, based on the earlier of contractual 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 |  | $ | — |  |  | — | % |  | $ | — |  |  | — | % |  | $ | 7,960 |  |  | 2.52 | % |  | $ | 115,989 |  |  | 2.70 | % |  | $ | 123,949 |  |  | 2.69 | %
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations |  | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | 49,476 |  |  | 2.64 | % |  | 49,476 |  |  | 2.64 | %
Municipal securities (1) |  | — |  |  | — | % |  | — |  |  | — | % |  | 16,197 |  |  | 2.19 | % |  | 73,730 |  |  | 2.71 | % |  | 89,927 |  |  | 2.62 | %
Total securities held-to-maturity |  | $ | — |  |  | — | % |  | $ | — |  |  | — | % |  | $ | 24,157 |  |  | 2.29 | % |  | $ | 239,195 |  |  | 2.69 | % |  | $ | 263,352 |  |  | 2.65 | %
(1) Computed on a tax-equivalent basis. The following table presents the fair value and weighted average yields using amortized cost of the securities available-for-sale portfolio as of September 30, 2022, based on the earlier of contractual 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 |  | $ | 12,106 |  |  | 1.82 | % |  | $ | — |  |  | — | % |  | $ | — |  |  | — | % |  | $ | — |  |  | — | % |  | $ | 12,106 |  |  | 1.82 | %
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities |  | — |  |  | — | % |  | — |  |  | — | % |  | 10,696 |  |  | 2.23 | % |  | — |  |  | — | % |  | 10,696 |  |  | 2.23 | %
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations |  | 79,654 |  |  | 3.16 | % |  | 8,138 |  |  | 2.72 | % |  | 33,003 |  |  | 1.92 | % |  | 20,362 |  |  | 1.83 | % |  | 141,157 |  |  | 2.61 | %
Non-agency residential mortgage-backed securities |  | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | 41,514 |  |  | 2.50 | % |  | 41,514 |  |  | 2.50 | %
Collateralized loan obligations |  | 472,676 |  |  | 4.23 | % |  | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | 472,676 |  |  | 4.23 | %
Corporate debt securities |  | — |  |  | — | % |  | 156,566 |  |  | 4.82 | % |  | 12,850 |  |  | 5.73 | % |  | — |  |  | — | % |  | 169,416 |  |  | 4.89 | %
Total securities available-for-sale |  | $ | 564,436 |  |  | 4.03 | % |  | $ | 164,704 |  |  | 4.71 | % |  | $ | 56,549 |  |  | 2.76 | % |  | $ | 61,876 |  |  | 2.30 | % |  | $ | 847,565 |  |  | 3.93 | %

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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 https://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 https://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 https://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 https://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) + Details
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