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v3.21.1

Securities (Tables) | 3 Months Ended
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Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Schedule of Debt Securities, Available-for-sale | The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at March 31, 2021 and December 31, 2020 are as follows (in thousands):
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
At March 31, 2021 |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 169,337 |  |  | $ | 2,570 |  |  | $ | (8) |  |  | $ | 171,899 |  |  | $ | — |
Collateralized loan obligations (“CLOs”) | 96,410 |  |  | 96 |  |  | (40) |  |  | 96,466 |  |  | — |
Mortgage-backed securities - FNMA | 144 |  |  | 2 |  |  | — |  |  | 146 |  |  | — |
Total debt securities available-for-sale | $ | 265,891 |  |  | $ | 2,668 |  |  | $ | (48) |  |  | $ | 268,511 |  |  | $ | — |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | 278,179 |  |  | 7,043 |  |  | (1,106) |  |  | 284,116 |  |  | (90) |
Corporate debt securities | 72,821 |  |  | 1,542 |  |  | (1,912) |  |  | 72,451 |  |  | (1,511) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
FHLMC | 303,539 |  |  | 4,256 |  |  | (3,178) |  |  | 304,617 |  |  | — |
FNMA | 335,307 |  |  | 5,978 |  |  | (2,481) |  |  | 338,804 |  |  | — |
GNMA | 59,904 |  |  | 1,614 |  |  | (23) |  |  | 61,495 |  |  | — |
SBA | 5,190 |  |  | — |  |  | (58) |  |  | 5,132 |  |  | — |
Other | 32,269 |  |  | 861 |  |  | — |  |  | 33,130 |  |  | (116) |
Total mortgage-backed securities | 736,209 |  |  | 12,709 |  |  | (5,740) |  |  | 743,178 |  |  | (116) |
Total debt securities held-to-maturity | $ | 1,087,209 |  |  | $ | 21,294 |  |  | $ | (8,758) |  |  | $ | 1,099,745 |  |  | $ | (1,717) |
Total debt securities | $ | 1,353,100 |  |  | $ | 23,962 |  |  | $ | (8,806) |  |  | $ | 1,368,256 |  |  | $ | (1,717) |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
At December 31, 2020 |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 173,790 |  |  | $ | 3,152 |  |  | $ | (2) |  |  | $ | 176,940 |  |  | $ | — |
CLOs | 6,174 |  |  | — |  |  | (4) |  |  | 6,170 |  |  | — |
Mortgage-backed securities - FNMA | 190 |  |  | 2 |  |  | — |  |  | 192 |  |  | — |
Total debt securities available-for-sale | $ | 180,154 |  |  | $ | 3,154 |  |  | $ | (6) |  |  | $ | 183,302 |  |  | $ | — |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |
State and municipal obligations | 238,405 |  |  | 11,500 |  |  | (231) |  |  | 249,674 |  |  | (48) |
Corporate debt securities | 72,305 |  |  | 1,615 |  |  | (2,652) |  |  | 71,268 |  |  | (1,550) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
FHLMC | 232,942 |  |  | 5,383 |  |  | (124) |  |  | 238,201 |  |  |
FNMA | 293,615 |  |  | 7,640 |  |  | (147) |  |  | 301,108 |  |  |
GNMA | 67,334 |  |  | 2,014 |  |  | (12) |  |  | 69,336 |  |  |
SBA | 5,392 |  |  | — |  |  | (60) |  |  | 5,332 |  |  |
Other | 32,321 |  |  | 1,226 |  |  | — |  |  | 33,547 |  |  | (117) |
Total mortgage-backed securities | 631,604 |  |  | 16,263 |  |  | (343) |  |  | 647,524 |  |  | (117) |
Total debt securities held-to-maturity | $ | 942,314 |  |  | $ | 29,378 |  |  | $ | (3,226) |  |  | $ | 968,466 |  |  | $ | (1,715) |
Total debt securities | $ | 1,122,468 |  |  | $ | 32,532 |  |  | $ | (3,232) |  |  | $ | 1,151,768 |  |  | $ | (1,715) |
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2021 and March 31, 2020 (in thousands):
| Three Months Ended March 31,
| 2021 |  |  | 2020
Allowance for credit losses |  |  |  |  |
Beginning balance | $ | (1,715) |  |  |  | $ | — |  |
Impact of CECL adoption | — |  |  |  | (1,268) |  |
Provision for credit loss expense | (2) |  |  |  | (1,261) |  |
Total ending allowance balance | $ | (1,717) |  |  |  | $ | (2,529) |  |
Schedule of Carrying Value of Held-to-Maturity Investment Securities | The carrying value of the debt securities held-to-maturity at March 31, 2021 and December 31, 2020 is as follows (in thousands):
| March 31, 2021 |  | December 31, 2020
Amortized cost | $ | 1,087,209 |  |  | $ | 942,314 |
Net loss on date of transfer from available-for-sale | (13,347) |  |  | (13,347) |
Allowance for securities credit loss | (1,717) |  |  | (1,715) |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 10,181 |  |  | 10,001 |
Carrying value | $ | 1,082,326 |  |  | $ | 937,253 |
The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2021 and March 31, 2020 are shown in the table below (in thousands):
| Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
Net gain on equity investments | $ | 8,287 |  |  | $ | 155 |  |  |  |  |
Less: Net gains recognized on equity securities sold | 8,123 |  |  | — |  |  |  |  |
Unrealized gain recognized on equity securities still held | $ | 164 |  |  | $ | 155 |  |  |  |  |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities at March 31, 2021 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2021, corporate debt securities with an amortized cost of $54.3 million, and estimated fair value of $54.0 million, and CLOs with an amortized cost of $96.4 million, and estimated fair value of $96.5 million, were callable prior to the maturity date.
March 31, 2021 | Amortized Cost |  | Estimated Fair Value
Less than one year | $ | 105,213 |  |  | $ | 105,784 |
Due after one year through five years | 189,783 |  |  | 194,363 |
Due after five years through ten years | 164,010 |  |  | 162,249 |
Due after ten years | 157,741 |  |  | 162,536 |
| $ | 616,747 |  |  | $ | 624,932 |
Summary of Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity | The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at March 31, 2021 and December 31, 2020, segregated by the duration of the unrealized losses, are as follows (in thousands):
| At March 31, 2021
| Less than 12 months |  | 12 months or longer |  | Total
| Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 10,139 |  |  | $ | (8) |  |  | $ | — |  |  | $ | — |  |  | $ | 10,139 |  |  | $ | (8) |
CLOs | 47,053 |  |  | (40) |  |  | — |  |  | — |  |  | 47,053 |  |  | (40) |
Total debt securities available-for-sale | 57,192 |  |  | (48) |  |  | — |  |  | — |  |  | 57,192 |  |  | (48) |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 50,696 |  |  | $ | (890) |  |  | $ | 5,748 |  |  | $ | (216) |  |  | $ | 56,444 |  |  | $ | (1,106) |
Corporate debt securities | 39,041 |  |  | (1,774) |  |  | 3,818 |  |  | (138) |  |  | 42,859 |  |  | (1,912) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
FHLMC | 158,632 |  |  | (3,178) |  |  | — |  |  | — |  |  | 158,632 |  |  | (3,178) |
FNMA | 163,103 |  |  | (2,478) |  |  | 293 |  |  | (3) |  |  | 163,396 |  |  | (2,481) |
GNMA | 6,104 |  |  | (23) |  |  | — |  |  | — |  |  | 6,104 |  |  | (23) |
SBA | 2,015 |  |  | (48) |  |  | 3,116 |  |  | (10) |  |  | 5,131 |  |  | (58) |
Total mortgage-backed securities | 329,854 |  |  | (5,727) |  |  | 3,409 |  |  | (13) |  |  | 333,263 |  |  | (5,740) |
Total debt securities held-to-maturity | 419,591 |  |  | (8,391) |  |  | 12,975 |  |  | (367) |  |  | 432,566 |  |  | (8,758) |
Total debt securities | $ | 476,783 |  |  | $ | (8,439) |  |  | $ | 12,975 |  |  | $ | (367) |  |  | $ | 489,758 |  |  | $ | (8,806) |
| At December 31, 2020
| Less than 12 months |  | 12 months or longer |  | Total
| Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 17,029 |  |  | $ | (2) |  |  | $ | — |  |  | $ | — |  |  | $ | 17,029 |  |  | $ | (2) |
CLOs | 4,766 |  |  | (4) |  |  | — |  |  | — |  |  | 4,766 |  |  | (4) |
Total debt securities available-for-sale | 21,795 |  |  | (6) |  |  | — |  |  | — |  |  | 21,795 |  |  | (6) |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations | 2,823 |  |  | (23) |  |  | 7,509 |  |  | (208) |  |  | 10,332 |  |  | (231) |
Corporate debt securities | 10,192 |  |  | (255) |  |  | 35,935 |  |  | (2,397) |  |  | 46,127 |  |  | (2,652) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
FHLMC | 24,661 |  |  | (117) |  |  | 669 |  |  | (7) |  |  | 25,330 |  |  | (124) |
FNMA | 39,365 |  |  | (128) |  |  | 939 |  |  | (19) |  |  | 40,304 |  |  | (147) |
GNMA | 5,856 |  |  | (11) |  |  | 207 |  |  | (1) |  |  | 6,063 |  |  | (12) |
SBA | 3,626 |  |  | (12) |  |  | 1,706 |  |  | (48) |  |  | 5,332 |  |  | (60) |
Total mortgage-backed securities | 73,508 |  |  | (268) |  |  | 3,521 |  |  | (75) |  |  | 77,029 |  |  | (343) |
Total debt securities held-to-maturity | 86,523 |  |  | (546) |  |  | 46,965 |  |  | (2,680) |  |  | 133,488 |  |  | (3,226) |
Total debt securities | $ | 108,318 |  |  | $ | (552) |  |  | $ | 46,965 |  |  | $ | (2,680) |  |  | $ | 155,283 |  |  | $ | (3,232) |
Schedule of Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table summarized the amortized cost of debt securities held-to-maturity at March 31, 2021, aggregated by credit quality indicator (in thousands):
| AAA |  | AA |  | A |  | BBB |  | BB |  | Total
As of March 31, 2021 |  |  |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 33,421 |  |  | $ | 138,734 |  |  | $ | 72,959 |  |  | $ | 33,065 |  |  | $ | — |  |  | $ | 278,179 |
Corporate debt securities | — |  |  | 497 |  |  | 11,995 |  |  | 48,995 |  |  | 11,334 |  |  | 72,821 |
Mortgage-backed securities - Other | 11,111 |  |  | 21,158 |  |  | — |  |  | — |  |  | — |  |  | 32,269 |
Total debt securities held-to-maturity | $ | 44,532 |  |  | $ | 160,389 |  |  | $ | 84,954 |  |  | $ | 82,060 |  |  | $ | 11,334 |  |  | $ | 383,269 |

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