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Securities (Tables)

9 Months Ended

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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- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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