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Securities Available for Sale | 3 Months Ended
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Mar. 31, 2021
Debt Securities, Available-for-sale [Abstract] |
Securities Available for Sale | Securities Available for Sale The following is a summary of securities available for sale as of the dates indicated:
| At March 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance For Investment Credit Losses |  | Fair Value
| (Dollars in thousands)
Debt securities: |  |  |  |  |  |  |  |  |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |  |  |  |  |  |  |
Collateralized mortgage obligations | $ | 901,735 |  |  | $ | 9,424 |  |  | $ | (6,500) |  |  | $ | — |  |  | $ | 904,659 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Residential | 646,409 |  |  | 3,190 |  |  | (11,771) |  |  | — |  |  | 637,828 |
Commercial | 527,528 |  |  | 13,378 |  |  | (3,118) |  |  | — |  |  | 537,788 |
Asset-backed securities | 34,781 |  |  | 104 |  |  | (36) |  |  | — |  |  | 34,849 |
Corporate securities | 14,435 |  |  | — |  |  | (1,230) |  |  | — |  |  | 13,205 |
Municipal securities | 103,481 |  |  | 2,272 |  |  | (338) |  |  | — |  |  | 105,415 |
Total investment securities available for sale | $ | 2,228,369 |  |  | $ | 28,368 |  |  | $ | (22,993) |  |  | $ | — |  |  | $ | 2,233,744 |
| At December 31, 2020
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance For Investment Credit Losses |  | Fair Value
| (Dollars in thousands)
Debt securities: |  |  |  |  |  |  |  |  |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |  |  |  |  |  |  |
Collateralized mortgage obligations | $ | 990,679 |  |  | $ | 11,482 |  |  | $ | (844) |  |  | $ | — |  |  | $ | 1,001,317 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Residential | 672,667 |  |  | 8,460 |  |  | (114) |  |  | — |  |  | 681,013 |
Commercial | 482,874 |  |  | 25,026 |  |  | (21) |  |  | — |  |  | 507,879 |
Corporate securities | 7,000 |  |  | 15 |  |  | (881) |  |  | — |  |  | 6,134 |
Municipal securities | 86,213 |  |  | 3,058 |  |  | (3) |  |  | — |  |  | 89,268 |
Total investment securities available for sale | $ | 2,239,433 |  |  | $ | 48,041 |  |  | $ | (1,863) |  |  | $ | — |  |  | $ | 2,285,611 |
As of March 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. During the three months ended March 31, 2021 and 2020, the Company recognized zero net gains on sales and calls of securities available for sale. For the three months ended March 31, 2021 and 2020, the Company had no sales of securities available for sale. At March 31, 2021 and December 31, 2020, $4.4 million and $33.2 million in unrealized gains on securities available for sale net of taxes, respectively, were included in accumulated other comprehensive income. For the three months ended March 31, 2021 and 2020, there were no reclassifications out of accumulated other comprehensive income into earnings as gain on sales of investments securities available for sale. The amortized cost and estimated fair value of investment securities at March 31, 2021, by contractual maturity, is presented in the table below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. Collateralized mortgage obligations, mortgage-backed securities, and asset-backed securities are not due at a single maturity date and their total balances are shown separately.
| Amortized Cost |  | Estimated Fair Value
| (Dollars in thousands)
Available for sale: |  |  |
Due within one year | $ | 350 |  |  | $ | 351 |
Due after one year through five years | — |  |  | — |
Due after five years through ten years | 19,616 |  |  | 19,478 |
Due after ten years | 97,950 |  |  | 98,791 |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |
Collateralized mortgage obligations | 901,735 |  |  | 904,659 |
Mortgage-backed securities: |  |  |
Residential | 646,409 |  |  | 637,828 |
Commercial | 527,528 |  |  | 537,788 |
Asset-backed securities | 34,781 |  |  | 34,849 |
Total | $ | 2,228,369 |  |  | $ | 2,233,744 |
Securities with carrying values of approximately $325.0 million and $376.1 million at March 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits, for various borrowings, and for other purposes as required or permitted by law. The following tables show the Company’s investments’ gross unrealized losses and estimated fair values, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.
|  | As of March 31, 2021
|  | Less than 12 months |  | 12 months or longer |  | Total
Description of Securities |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses
|  | (Dollars in thousands)
Collateralized mortgage obligations* |  | 24 |  |  | $ | 453,139 |  |  | $ | (6,475) |  |  | 2 |  |  | $ | 2,347 |  |  | $ | (25) |  |  | 26 |  |  | $ | 455,486 |  |  | $ | (6,500) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential* |  | 44 |  |  | 507,249 |  |  | (11,771) |  |  | — |  |  | — |  |  | — |  |  | 44 |  |  | 507,249 |  |  | (11,771) |
Commercial* |  | 13 |  |  | 136,164 |  |  | (3,118) |  |  | — |  |  | — |  |  | — |  |  | 13 |  |  | 136,164 |  |  | (3,118) |
Asset-backed securities |  | 1 |  |  | 4,515 |  |  | (36) |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 4,515 |  |  | (36) |
Corporate securities |  | 3 |  |  | 9,011 |  |  | (423) |  |  | 1 |  |  | 4,194 |  |  | (807) |  |  | 4 |  |  | 13,205 |  |  | (1,230) |
Municipal securities |  | 10 |  |  | 31,371 |  |  | (338) |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 31,371 |  |  | (338) |
Total |  | 95 |  |  | $ | 1,141,449 |  |  | $ | (22,161) |  |  | 3 |  |  | $ | 6,541 |  |  | $ | (832) |  |  | 98 |  |  | $ | 1,147,990 |  |  | $ | (22,993) |
__________________________________ * Investments in U.S. Government agency and U.S. Government sponsored enterprises
|  | As of December 31, 2020
|  | Less than 12 months |  | 12 months or longer |  | Total
Description of Securities |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses
|  | (Dollars in thousands)
Collateralized mortgage obligations* |  | 22 |  |  | $ | 312,757 |  |  | $ | (844) |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 22 |  |  | $ | 312,757 |  |  | $ | (844) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential* |  | 8 |  |  | 46,094 |  |  | (114) |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 46,094 |  |  | (114) |
Commercial* |  | 1 |  |  | 10,275 |  |  | (21) |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 10,275 |  |  | (21) |
Corporate securities |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 4,119 |  |  | (881) |  |  | 1 |  |  | 4,119 |  |  | (881) |
Municipal securities |  | 1 |  |  | 997 |  |  | (3) |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 997 |  |  | (3) |
Total |  | 32 |  |  | $ | 370,123 |  |  | $ | (982) |  |  | 1 |  |  | $ | 4,119 |  |  | $ | (881) |  |  | 33 |  |  | $ | 374,242 |  |  | $ | (1,863) |
__________________________________ * Investments in U.S. Government agency and U.S. Government sponsored enterprises The Company had two CMOs and one corporate security that were in a continuous unrealized loss position for twelve months or longer with fair values of $2.3 million and $4.2 million, respectively as of March 31, 2021. With the adoption of CECL, the length of time that the fair value of investment securities have been less than amortized cost is not considered when assessing for credit impairment. With the adoption of ASU 2016-13 on January 1, 2020, the CECL methodology replaced the other-than-temporary impairment model that previou sly existed. The Company did not have a day 1 allowance impact attributable to its investment securities portfolio and did not have an allowance for credit losses as of March 31, 2021 and December 31, 2020. The Company has elected to exclude accrued interest from the amortized cost of its investment securities available for sale. Accrued interest receivable for investment securities available for sale at March 31, 2021 and December 31, 2020, totaled $4.5 million and $4.7 million, respectively. The Company evaluates securities in unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. In evaluating whether a credit loss exists, the Company has set up an initial filter for impairment triggers. Once the quantitative filters have been triggered, the securities are placed on a watch list and an additional assessment is performed to identify whether a credit impairment exists. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available for sale securities was recorded at March 31, 2021. Approximately 93% of the Company’s investment portfolio at March 31, 2021 consisted of securities that were issued by U.S. Government agency and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government, and the current support they receive is subject to a cap as part of the agreement entered into in 2008. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, we concluded that a zero allowance approach for these investment securities is appropriate. The Company had also had one asset-backed security, four corporate securities, and 10 municipal bonds in unrealized loss positions at March 31, 2021. The Company performed an assessment of investment securities in unrealized loss positions for credit impairment and concluded that no allowance for credit losses was required at March 31, 2021.

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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 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 + Details
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