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Securities (Tables) | 9 Months Ended
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Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Schedule of Gross Realized and Unrealized Losses Recognized on Equity Securities | The gross realized and unrealized gains and losses recognized on equity securities with readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Unrealized gains (losses) on equity securities held at the reporting date |  | $ | (137) |  |  | $ | (134) |  |  | $ | (137) |  |  | $ | (588) |
Realized gains (losses) on equity securities sold during the period |  | — |  |  | — |  |  | 18 |  |  | — |
|  | $ | (137) |  |  | $ | (134) |  |  | $ | (119) |  |  | $ | (588) |
The gross realized and unrealized gains (losses) recognized on equity securities without readily determinable fair values in noninterest income in the Company’s consolidated statements of income were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
Unrealized gains (losses) on equity securities still held at the reporting date | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,163 |
Realized gains (losses) on equity securities sold during the period | — |  |  | — |  |  | — |  |  | — |
| $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,163 |
Equity Securities without Readily Determinable Fair Value | The following table summarizes the Company's investments in equity securities without readily determinable fair values:
(Dollars in thousands) | September 30, 2023 |  | December 31, 2022
Equity Securities without readily determinable fair value, at cost | $ | 55,812 |  |  | $ | 39,019 |
Upward adjustments based on observable price changes, cumulative | 10,163 |  |  | 10,163 |
Equity Securities without readily determinable fair value, carrying value | $ | 65,975 |  |  | $ | 49,182 |
Schedule of Amortized Cost of Securities and Their Estimated Fair Values | The following table summarizes the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized gains and losses of available for sale securities recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses of held to maturity securities:
(Dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
September 30, 2023 |  |  |  |  |
Available for sale securities: |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities, residential |  | $ | 49,346 |  |  | $ | 9 |  |  | $ | (6,173) |  |  | $ | — |  |  | $ | 43,182 |
Asset-backed securities |  | 1,243 |  |  | 10 |  |  | — |  |  | — |  |  | 1,253 |
State and municipal |  | 5,217 |  |  | — |  |  | (189) |  |  | — |  |  | 5,028 |
CLO securities |  | 240,162 |  |  | 1,047 |  |  | (734) |  |  | — |  |  | 240,475 |
Corporate bonds |  | 768 |  |  | — |  |  | (19) |  |  | — |  |  | 749 |
SBA pooled securities |  | 1,746 |  |  | 7 |  |  | (116) |  |  | — |  |  | 1,637 |
Total available for sale securities |  | $ | 298,482 |  |  | $ | 1,073 |  |  | $ | (7,231) |  |  | $ | — |  |  | $ | 292,324 |
(Dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrecognized Losses |  | Fair Value
September 30, 2023 |  |  |  |
Held to maturity securities: |  |  |  |  |  |  |  |
CLO securities |  | $ | 6,201 |  |  | $ | 339 |  |  | $ | (1,784) |  |  | $ | 4,756 |
Allowance for credit losses |  | (2,890) |  |  |  |  |  |  |
Total held to maturity securities, net of ACL |  | $ | 3,311 |  |  |  |  |  |  |
(Dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
December 31, 2022 |  |  |  |  |
Available for sale securities: |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities, residential |  | $ | 55,329 |  |  | $ | 235 |  |  | $ | (4,931) |  |  | $ | — |  |  | $ | 50,633 |
Asset-backed securities |  | 6,389 |  |  | — |  |  | (58) |  |  | — |  |  | 6,331 |
State and municipal |  | 13,553 |  |  | 1 |  |  | (116) |  |  | — |  |  | 13,438 |
CLO Securities |  | 185,068 |  |  | 161 |  |  | (4,218) |  |  | — |  |  | 181,011 |
Corporate bonds |  | 1,270 |  |  | 1 |  |  | (8) |  |  | — |  |  | 1,263 |
SBA pooled securities |  | 1,910 |  |  | 29 |  |  | (111) |  |  | — |  |  | 1,828 |
Total available for sale securities |  | $ | 263,519 |  |  | $ | 427 |  |  | $ | (9,442) |  |  | $ | — |  |  | $ | 254,504 |
(Dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrecognized Losses |  | Fair Value
December 31, 2022 |  |  |  |
Held to maturity securities: |  |  |  |  |  |  |  |
CLO securities |  | $ | 6,521 |  |  | $ | 458 |  |  | $ | (1,503) |  |  | $ | 5,476 |
Allowance for credit losses |  | (2,444) |  |  |  |  |  |  |
Total held to maturity securities, net of ACL |  | $ | 4,077 |  |  |  |  |  |  |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at September 30, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Available for Sale Securities |  | Held to Maturity Securities
(Dollars in thousands) |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due in one year or less |  | $ | 1,167 |  |  | $ | 1,165 |  |  | $ | — |  |  | $ | — |
Due from one year to five years |  | 2,212 |  |  | 2,122 |  |  | 1,913 |  |  | 2,085 |
Due from five years to ten years |  | 72,866 |  |  | 72,665 |  |  | 4,288 |  |  | 2,671 |
Due after ten years |  | 169,902 |  |  | 170,300 |  |  | — |  |  | — |
|  | 246,147 |  |  | 246,252 |  |  | 6,201 |  |  | 4,756 |
Mortgage-backed securities, residential |  | 49,346 |  |  | 43,182 |  |  | — |  |  | — |
Asset-backed securities |  | 1,243 |  |  | 1,253 |  |  | — |  |  | — |
SBA pooled securities |  | 1,746 |  |  | 1,637 |  |  | — |  |  | — |
|  | $ | 298,482 |  |  | $ | 292,324 |  |  | $ | 6,201 |  |  | $ | 4,756 |
Schedule of Proceeds from Sales of Debt Securities and the Associated Gross Gains and Losses as well as Net Gains and Losses from Calls of Debt Securities | Proceeds from sales of debt securities and the associated gross gains and losses as well as net gains and losses from calls of debt securities are as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Proceeds |  | $ | 10,005 |  |  | $ | — |  |  | $ | 14,005 |  |  | $ | 40,163 |
Gross gains |  | 5 |  |  | — |  |  | 5 |  |  | 2,512 |
Gross losses |  | — |  |  | — |  |  | — |  |  | — |
Net gains and losses from calls of securities |  | — |  |  | — |  |  | — |  |  | 2 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position:
|  | Less than 12 Months |  | 12 Months or More |  | Total
(Dollars in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
September 30, 2023 |  |  |  |  |  |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities, residential |  | $ | 1,429 |  |  | $ | (100) |  |  | $ | 35,045 |  |  | $ | (6,073) |  |  | $ | 36,474 |  |  | $ | (6,173) |
Asset-backed securities |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
State and municipal |  | 1,537 |  |  | (64) |  |  | 2,986 |  |  | (125) |  |  | 4,523 |  |  | (189) |
CLO securities |  | 14,966 |  |  | (34) |  |  | 78,211 |  |  | (700) |  |  | 93,177 |  |  | (734) |
Corporate bonds |  | 749 |  |  | (19) |  |  | — |  |  | — |  |  | 749 |  |  | (19) |
SBA pooled securities |  | 220 |  |  | (6) |  |  | 1,111 |  |  | (110) |  |  | 1,331 |  |  | (116) |
|  | $ | 18,901 |  |  | $ | (223) |  |  | $ | 117,353 |  |  | $ | (7,008) |  |  | $ | 136,254 |  |  | $ | (7,231) |
|  | Less than 12 Months |  | 12 Months or More |  | Total
(Dollars in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
December 31, 2022 |  |  |  |  |  |
Available for sale securities: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities, residential |  | $ | 26,030 |  |  | $ | (1,507) |  |  | $ | 15,828 |  |  | $ | (3,424) |  |  | $ | 41,858 |  |  | $ | (4,931) |
Asset-backed securities |  | 1,337 |  |  | (52) |  |  | 4,994 |  |  | (6) |  |  | 6,331 |  |  | (58) |
State and municipal |  | 12,680 |  |  | (116) |  |  | — |  |  | — |  |  | 12,680 |  |  | (116) |
CLO Securities |  | 151,572 |  |  | (3,407) |  |  | 19,439 |  |  | (811) |  |  | 171,011 |  |  | (4,218) |
Corporate bonds |  | 261 |  |  | (8) |  |  | — |  |  | — |  |  | 261 |  |  | (8) |
SBA pooled securities |  | 1,262 |  |  | (111) |  |  | — |  |  | — |  |  | 1,262 |  |  | (111) |
|  | $ | 193,142 |  |  | $ | (5,201) |  |  | $ | 40,261 |  |  | $ | (4,241) |  |  | $ | 233,403 |  |  | $ | (9,442) |
Summary of Activity in Allowance for Credit Losses for Held To Maturity Debt Securities | The following table presents the activity in the allowance for credit losses for held to maturity debt securities:
(Dollars in thousands) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Held to Maturity CLO Securities |  | 2023 |  | 2022 |  | 2023 |  | 2022
Allowance for credit losses: |  |  |  |  |  |  |  |
Beginning balance |  | $ | 2,876 |  |  | $ | 2,355 |  |  | $ | 2,444 |  |  | $ | 2,082 |
Credit loss expense |  | 14 |  |  | 75 |  |  | 446 |  |  | 348 |
Allowance for credit losses ending balance |  | $ | 2,890 |  |  | $ | 2,430 |  |  | $ | 2,890 |  |  | $ | 2,430 |

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