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Securities Held-to-Maturity | 12 Months Ended
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Dec. 31, 2023
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract] |
Securities Held-to-Maturity | Securities Held-to-Maturity Agency Private Label Certificates. In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. At December 31, 2023, we retained APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 6.6 years. The weighted average effective interest rate was 8.85% at both December 31, 2023 and 2022, including the accretion of a portion of the discount deemed collectible. Approximately $19.7 million is estimated to mature after one year through five years and $173.1 million is estimated to mature after five years through ten years. Agency B Piece Bonds. Freddie Mac may choose to hold, sell or securitize loans we sell to them under the Freddie Mac SBL program. As part of the securitizations under the SBL program, we have the ability to purchase the B Piece bond through a bidding process, which represents the bottom 10%, or highest risk, of the securitization. At December 31, 2023, we retained 49%, or $106.2 million initial face value, of seven B Piece bonds, which were previously purchased at a discount for $74.7 million, and sold the remaining 51% to a third party. These securities are collateralized by a pool of multifamily mortgage loans, bear interest at an initial weighted average variable rate of 3.74% and have an estimated weighted average remaining maturity of 6.1 years. The weighted average effective interest rate was 11.28% and 12.20% at December 31, 2023 and 2022, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $5.9 million is estimated to mature within one year, $11.4 million is estimated to mature after one year through five years and $20.4 million is estimated to mature after ten years. A summary of our securities held-to-maturity is as follows (in thousands):
| Face Value |  | Net Carrying Value |  | Unrealized Gain (Loss) |  | Estimated Fair Value |  | Allowance for Credit Losses
December 31, 2023 |  |  |  |  |  |  |  |  |
APL certificates | $ | 192,791 |  |  | $ | 128,865 |  |  | $ | (31,331) |  |  | $ | 97,534 |  |  | $ | 2,272 |
B Piece bonds | 37,704 |  |  | 26,414 |  |  | 5,442 |  |  | 31,856 |  |  | 3,984 |
Total | $ | 230,495 |  |  | $ | 155,279 |  |  | $ | (25,889) |  |  | $ | 129,390 |  |  | $ | 6,256 |
December 31, 2022 |  |  |  |  |  |  |  |  |
APL certificates | $ | 192,791 |  |  | $ | 123,475 |  |  | $ | (13,348) |  |  | $ | 110,127 |  |  | $ | 2,783 |
B Piece bonds | 41,464 |  |  | 33,072 |  |  | 1,372 |  |  | 34,444 |  |  | 370 |
Total | $ | 234,255 |  |  | $ | 156,547 |  |  | $ | (11,976) |  |  | $ | 144,571 |  |  | $ | 3,153 |
A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows (in thousands):
| Year Ended December 31, 2023
| APL Certificates |  | B Piece Bonds |  | Total
Beginning balance | $ | 2,783 |  |  | $ | 370 |  |  | $ | 3,153 |
Provision for credit loss expense/(reversal) | (511) |  |  | 3,614 |  |  | 3,103 |
Ending balance | $ | 2,272 |  |  | $ | 3,984 |  |  | $ | 6,256 |
The allowance for credit losses on our held-to-maturity securities was estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities. The issuers continue to make timely principal and interest payments and we continue to accrue interest on all our securities. At December 31, 2023, no other-than-temporary impairment was recorded on our held-to-maturity securities. We recorded interest income (including the amortization of discount) related to these investments of $13.6 million, $18.6 million and $13.2 million during 2023, 2022 and 2021, respectively.

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