Investment Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Approximate Fair Value of Investment Securities

The amortized cost and fair value of investment securities as of September 30, 2020 and December 31, 2019 are summarized in the tables below:


	September 30, 2020 (1)
(amounts in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale debt securities:
Asset-backed securities	$	374,151	$	1,404	$	(174)	$	375,381
U.S. government agencies securities	40,000		8		—		40,008
Agency-guaranteed residential mortgage-backed securities	59,013		2,066		—		61,079

Agency-guaranteed collateralized mortgage obligations	153,088		771		(80)		153,779
State and political subdivision debt securities (2)	17,391		868		—		18,259
Private label collateralized mortgage obligations	118,979		8		—		118,987
Corporate notes (3)	344,344		19,632		(104)		363,872

Available for sale debt securities	$	1,106,966	$	24,757	$	(358)	1,131,365

Equity securities (5)							2,466
Total investment securities, at fair value							$	1,133,831


	December 31, 2019
(amounts in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale debt securities:
Agency-guaranteed residential mortgage-backed securities	$	273,252	$	5,069	$	—	$	278,321

Corporate notes (3)	284,639		14,238		—		298,877
Available for sale debt securities	$	557,891	$	19,307	$	—	577,198
Interest-only GNMA securities (4)							16,272
Equity securities (5)							2,406
Total investment securities, at fair value							$	595,876

(1)Accrued interest on AFS debt securities totaled $4.2 million at September 30, 2020 and is included in accrued interest receivable on the consolidated balance sheet.

(2)Includes both taxable and non-taxable municipal securities.

(3)Includes corporate securities issued by domestic bank holding companies.

(4)Reported at fair value with fair value changes recorded in non-interest income based on a fair value option election.

(5)Includes equity securities issued by a foreign entity.

Summary of Available-for-Sale Debt Securities by Stated Maturity

The following table shows debt securities by stated maturity. Debt securities backed by mortgages and other assets securities have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date:


	September 30, 2020
(amounts in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	8,000	$	8,000
Due after one year through five years	83,209		84,275
Due after five years through ten years	274,135		292,605
Due after ten years	36,391		37,259
Asset-backed securities	374,151		375,381
Agency-guaranteed residential mortgage-backed securities	59,013		61,079
Agency-guaranteed collateralized mortgage obligations	153,088		153,779
Private label collateralized mortgage obligations	118,979		118,987


Total debt securities	$	1,106,966	$	1,131,365

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value

Gross unrealized losses and fair value of Customers' available for sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020 were as follows:



	September 30, 2020
	Less Than 12 Months				12 Months or More				Total
(amounts in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale debt securities:
Asset-backed securities	$	107,610	$	(174)	$	—	$	—	$	107,610	$	(174)
Agency-guaranteed residential mortgage-backed securities	19,019		(80)		—		—		19,019		(80)

Corporate notes	40,409		(104)		—		—		40,409		(104)

Total	$	167,038	$	(358)	$	—	$	—	$	167,038	$	(358)