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Securities (Tables) | 9 Months Ended
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Sep. 30, 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 September 30, 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 September 30, 2021 |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 133,088 |  |  | $ | 1,653 |  |  | $ | (136) |  |  | $ | 134,605 |  |  | $ | — |
Corporate debt securities | 5,000 |  |  | 52 |  |  | (3) |  |  | 5,049 |  |  | — |
Collateralized loan obligations (“CLOs”) | 145,792 |  |  | 8 |  |  | (380) |  |  | 145,420 |  |  | — |
Mortgage-backed securities - FNMA | 12,648 |  |  | 1 |  |  | — |  |  | 12,649 |  |  | — |
Mortgage-backed securities - agency commercial | 17,047 |  |  | — |  |  | (150) |  |  | 16,897 |  |  | — |
Total debt securities available-for-sale | $ | 313,575 |  |  | $ | 1,714 |  |  | $ | (669) |  |  | $ | 314,620 |  |  | $ | — |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 292,226 |  |  | $ | 8,379 |  |  | $ | (630) |  |  | $ | 299,975 |  |  | $ | (86) |
Corporate debt securities | 70,343 |  |  | 1,828 |  |  | (1,273) |  |  | 70,898 |  |  | (1,309) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
FHLMC | 359,449 |  |  | 3,568 |  |  | (2,881) |  |  | 360,136 |  |  | — |
FNMA | 326,877 |  |  | 4,887 |  |  | (1,964) |  |  | 329,800 |  |  | — |
GNMA | 44,010 |  |  | 1,056 |  |  | (34) |  |  | 45,032 |  |  | — |
SBA | 4,654 |  |  | 12 |  |  | (43) |  |  | 4,623 |  |  | — |
Other | 32,160 |  |  | 760 |  |  | (3) |  |  | 32,917 |  |  | (108) |
Total mortgage-backed securities | 767,150 |  |  | 10,283 |  |  | (4,925) |  |  | 772,508 |  |  | (108) |
Total debt securities held-to-maturity | $ | 1,129,719 |  |  | $ | 20,490 |  |  | $ | (6,828) |  |  | $ | 1,143,381 |  |  | $ | (1,503) |
Total debt securities | $ | 1,443,294 |  |  | $ | 22,204 |  |  | $ | (7,497) |  |  | $ | 1,458,001 |  |  | $ | (1,503) |
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 and nine months ended September 30, 2021 and 2020 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Allowance for credit losses |  |  |  |  |  |  |
Beginning balance | $ | (1,609) |  |  | $ | (2,446) |  |  | $ | (1,715) |  |  | $ | — |
Impact of current expected credit loss (“CECL”) adoption | — |  |  | — |  |  | — |  |  | (1,268) |
Provision for credit loss expense | 106 |  |  | 53 |  |  | 212 |  |  | (1,125) |
Total ending allowance balance | $ | (1,503) |  |  | $ | (2,393) |  |  | $ | (1,503) |  |  | $ | (2,393) |
Schedule of Carrying Value of Held-to-Maturity Investment Securities | The carrying value of the debt securities held-to-maturity at September 30, 2021 and December 31, 2020 is as follows (in thousands):
| September 30, |  | December 31,
| 2021 |  | 2020
Amortized cost | $ | 1,129,719 |  |  | $ | 942,314 |
Net loss on date of transfer from available-for-sale | (13,347) |  |  | (13,347) |
Allowance for securities credit loss | (1,503) |  |  | (1,715) |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 10,513 |  |  | 10,001 |
Carrying value | $ | 1,125,382 |  |  | $ | 937,253 |
The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2021 and September 30, 2020 are shown in the table below (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Net (loss) gain on equity investments | $ | (466) |  |  | $ | (3,576) |  |  | $ | 8,397 |  |  | $ | (3,273) |
Less: Net gains (losses) recognized on equity securities sold | — |  |  | — |  |  | 8,123 |  |  | (53) |
Unrealized (loss) gain recognized on equity securities still held | $ | (466) |  |  | $ | (3,576) |  |  | $ | 274 |  |  | $ | (3,220) |
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 September 30, 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 September 30, 2021, corporate debt securities with an amortized cost of $29.4 million, and estimated fair value of $31.0 million, and CLOs with an amortized cost of $145.8 million and estimated fair value of $145.4 million were callable prior to the maturity date.
September 30, 2021 | Amortized Cost |  | Estimated Fair Value
Less than one year | $ | 90,596 |  |  | $ | 91,346 |
Due after one year through five years | 154,228 |  |  | 157,403 |
Due after five years through ten years | 222,930 |  |  | 222,072 |
Due after ten years | 178,695 |  |  | 185,126 |
| $ | 646,449 |  |  | $ | 655,947 |
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 September 30, 2021 and December 31, 2020, segregated by the duration of the unrealized losses, are as follows (in thousands):
| Less than 12 months |  | 12 months or longer |  | Total
| Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
At September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 25,911 |  |  | $ | (136) |  |  | $ | — |  |  | $ | — |  |  | $ | 25,911 |  |  | $ | (136) |
Corporate debt securities | 997 |  |  | (3) |  |  | — |  |  | — |  |  | 997 |  |  | (3) |
Mortgage-backed securities | 11,555 |  |  | (150) |  |  | — |  |  | — |  |  | 11,555 |  |  | (150) |
CLOs | 117,477 |  |  | (380) |  |  | — |  |  | — |  |  | 117,477 |  |  | (380) |
Total debt securities available-for-sale | 155,940 |  |  | (669) |  |  | — |  |  | — |  |  | 155,940 |  |  | (669) |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | 64,303 |  |  | (608) |  |  | 911 |  |  | (22) |  |  | 65,214 |  |  | (630) |
Corporate debt securities | 39,573 |  |  | (1,273) |  |  | — |  |  | — |  |  | 39,573 |  |  | (1,273) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
FHLMC | 242,215 |  |  | (2,823) |  |  | 4,102 |  |  | (58) |  |  | 246,317 |  |  | (2,881) |
FNMA | 171,450 |  |  | (1,776) |  |  | 8,647 |  |  | (188) |  |  | 180,097 |  |  | (1,964) |
GNMA | 458 |  |  | (3) |  |  | 4,867 |  |  | (31) |  |  | 5,325 |  |  | (34) |
SBA | 1,602 |  |  | (41) |  |  | 969 |  |  | (2) |  |  | 2,571 |  |  | (43) |
Other | 4,484 |  |  | (3) |  |  | — |  |  | — |  |  | 4,484 |  |  | (3) |
Total mortgage-backed securities | 420,209 |  |  | (4,646) |  |  | 18,585 |  |  | (279) |  |  | 438,794 |  |  | (4,925) |
Total debt securities held-to-maturity | 524,085 |  |  | (6,527) |  |  | 19,496 |  |  | (301) |  |  | 543,581 |  |  | (6,828) |
Total debt securities | $ | 680,025 |  |  | $ | (7,196) |  |  | $ | 19,496 |  |  | $ | (301) |  |  | $ | 699,521 |  |  | $ | (7,497) |
At December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
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 September 30, 2021, aggregated by credit quality indicator (in thousands):
| AAA |  | AA |  | A |  | BBB |  | BB |  | Total
As of September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 31,053 |  |  | $ | 145,704 |  |  | $ | 85,435 |  |  | $ | 30,034 |  |  | $ | — |  |  | $ | 292,226 |
Corporate debt securities | — |  |  | 7,534 |  |  | 4,748 |  |  | 47,538 |  |  | 10,523 |  |  | 70,343 |
Mortgage-backed securities - other | 11,093 |  |  | 21,067 |  |  | — |  |  | — |  |  | — |  |  | 32,160 |
Total debt securities held-to-maturity | $ | 42,146 |  |  | $ | 174,305 |  |  | $ | 90,183 |  |  | $ | 77,572 |  |  | $ | 10,523 |  |  | $ | 394,729 |

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