XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.22.1

Securities | 3 Months Ended
--- | ---
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities 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, 2022 and December 31, 2021 are as follows (in thousands):
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
At March 31, 2022 |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 145,690 |  |  | $ | 206 |  |  | $ | (3,855) |  |  | $ | 142,041 |  |  | $ | — |
Corporate debt securities | 5,000 |  |  | — |  |  | (216) |  |  | 4,784 |  |  | — |
Asset-backed securities | 302,389 |  |  | — |  |  | (5,300) |  |  | 297,089 |  |  | — |
Agency commercial mortgage-backed securities (“MBS”) | 111,399 |  |  | — |  |  | (8,843) |  |  | 102,556 |  |  | — |
Total debt securities available-for-sale | $ | 564,478 |  |  | $ | 206 |  |  | $ | (18,214) |  |  | $ | 546,470 |  |  | $ | — |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 272,250 |  |  | $ | 396 |  |  | $ | (12,673) |  |  | $ | 259,973 |  |  | $ | (69) |
Corporate debt securities | 64,198 |  |  | 917 |  |  | (1,951) |  |  | 63,164 |  |  | (1,272) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Agency residential | 730,960 |  |  | 467 |  |  | (38,828) |  |  | 692,599 |  |  | — |
Agency commercial | 4,163 |  |  | 3 |  |  | (45) |  |  | 4,121 |  |  | — |
Non-agency commercial | 32,057 |  |  | 3 |  |  | (1,025) |  |  | 31,035 |  |  | (39) |
Total mortgage-backed securities | 767,180 |  |  | 473 |  |  | (39,898) |  |  | 727,755 |  |  | (39) |
Total debt securities held-to-maturity | $ | 1,103,628 |  |  | $ | 1,786 |  |  | $ | (54,522) |  |  | $ | 1,050,892 |  |  | $ | (1,380) |
Total debt securities | $ | 1,668,106 |  |  | $ | 1,992 |  |  | $ | (72,736) |  |  | $ | 1,597,362 |  |  | $ | (1,380) |
At December 31, 2021 |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 164,756 |  |  | $ | 1,135 |  |  | $ | (471) |  |  | $ | 165,420 |  |  | $ | — |
Corporate debt securities | 5,000 |  |  | 42 |  |  | (11) |  |  | 5,031 |  |  | — |
Asset-backed securities | 298,976 |  |  | 41 |  |  | (1,489) |  |  | 297,528 |  |  | — |
Agency commercial MBS | 101,142 |  |  | 57 |  |  | (923) |  |  | 100,276 |  |  | — |
Total debt securities available-for-sale | $ | 569,874 |  |  | $ | 1,275 |  |  | $ | (2,894) |  |  | $ | 568,255 |  |  | $ | — |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |
State, municipal, and sovereign debt obligations | $ | 281,389 |  |  | $ | 10,185 |  |  | $ | (1,164) |  |  | $ | 290,410 |  |  | $ | (85) |
Corporate debt securities | 68,823 |  |  | 1,628 |  |  | (1,279) |  |  | 69,172 |  |  | (1,343) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Agency residential | 756,844 |  |  | 6,785 |  |  | (7,180) |  |  | 756,449 |  |  | — |
Agency commercial | 4,385 |  |  | 7 |  |  | (44) |  |  | 4,348 |  |  | — |
Non-agency commercial | 32,107 |  |  | 362 |  |  | (104) |  |  | 32,365 |  |  | (39) |
Total mortgage-backed securities | 793,336 |  |  | 7,154 |  |  | (7,328) |  |  | 793,162 |  |  | (39) |
Total debt securities held-to-maturity | $ | 1,143,548 |  |  | $ | 18,967 |  |  | $ | (9,771) |  |  | $ | 1,152,744 |  |  | $ | (1,467) |
Total debt securities | $ | 1,713,422 |  |  | $ | 20,242 |  |  | $ | (12,665) |  |  | $ | 1,720,999 |  |  | $ | (1,467) |
There was no allowance for securities credit losses on debt securities available-for-sale at March 31, 2022 or December 31, 2021. 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, 2022 and 2021 (in thousands):
| Three Months Ended March 31, |  |
| 2022 |  | 2021 |  |  |  |
Allowance for securities credit losses |  |  |  |  |  |  |
Beginning balance | $ | (1,467) |  |  | $ | (1,715) |  |  |  |  |
Benefit (provision) for credit loss expense | 87 |  |  | (2) |  |  |  |  |
Total ending allowance balance | $ | (1,380) |  |  | $ | (1,717) |  |  |  |  |
During 2021 and 2013, the Bank transferred $12.7 million and $536.0 million, respectively, of previously designated available-for-sale securities to a held-to-maturity designation at estimated fair value. The securities transferred had an unrealized net loss of $209,000 and $13.3 million at the time of transfer in 2021 and 2013, respectively, which continues to be reflected in accumulated other comprehensive loss on the Consolidated Statement of Financial Condition, net of subsequent amortization, which is being recognized over the life of the securities. The carrying value of the debt securities held-to-maturity at March 31, 2022 and December 31, 2021 is as follows (in thousands):
| March 31, |  | December 31,
| 2022 |  | 2021
Amortized cost | $ | 1,103,628 |  |  | $ | 1,143,548 |
Net loss on date of transfer from available-for-sale | (13,556) |  |  | (13,556) |
Allowance for securities credit losses | (1,380) |  |  | (1,467) |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 10,822 |  |  | 10,668 |
Carrying value | $ | 1,099,514 |  |  | $ | 1,139,193 |
There was $87,000 of realized losses on debt securities for the three months ended March 31, 2022. There were no realized gains or losses on debt securities for the three months ended March 31, 2021. The amortized cost and estimated fair value of debt securities at March 31, 2022 by contractual maturity are shown below (in thousands).
March 31, 2022 | Amortized Cost |  | Estimated Fair Value
Less than one year | $ | 95,878 |  |  | $ | 95,857 |
Due after one year through five years | 153,847 |  |  | 148,910 |
Due after five years through ten years | 242,079 |  |  | 232,695 |
Due after ten years | 297,723 |  |  | 289,589 |
| $ | 789,527 |  |  | $ | 767,051 |
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, 2022, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $63.1 million, $87.6 million, and $303.4 million, respectively, and an estimated fair value of $61.8 million, $85.4 million, and $297.1 million, respectively, were callable prior to the maturity date. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments. The estimated fair value of securities pledged for the ability to draw on FHLB advances, access to the Federal Reserve discount window, and other borrowings and for other purposes required by law amounted to $1.09 billion and $1.14 billion at March 31, 2022 and December 31, 2021, respectively, which includes $114.6 million and $142.9 million at March 31, 2022 and December 31, 2021, respectively, pledged as collateral for securities sold under agreements to repurchase. The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at March 31, 2022 and December 31, 2021, 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 March 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 76,857 |  |  | $ | (3,811) |  |  | $ | 5,017 |  |  | $ | (44) |  |  | $ | 81,874 |  |  | $ | (3,855) |
Corporate debt securities | 4,784 |  |  | (216) |  |  | — |  |  | — |  |  | 4,784 |  |  | (216) |
Asset-backed securities | 266,780 |  |  | (5,058) |  |  | 15,309 |  |  | (242) |  |  | 282,089 |  |  | (5,300) |
Agency commercial MBS | 102,556 |  |  | (8,843) |  |  | — |  |  | — |  |  | 102,556 |  |  | (8,843) |
Total debt securities available-for-sale | 450,977 |  |  | (17,928) |  |  | 20,326 |  |  | (286) |  |  | 471,303 |  |  | (18,214) |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | 203,363 |  |  | (11,481) |  |  | 15,508 |  |  | (1,192) |  |  | 218,871 |  |  | (12,673) |
Corporate debt securities | 6,080 |  |  | (87) |  |  | 36,467 |  |  | (1,864) |  |  | 42,547 |  |  | (1,951) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Agency residential | 469,893 |  |  | (24,938) |  |  | 170,870 |  |  | (13,890) |  |  | 640,764 |  |  | (38,828) |
Agency commercial | 608 |  |  | (2) |  |  | 2,393 |  |  | (43) |  |  | 3,001 |  |  | (45) |
Non-agency commercial | 30,032 |  |  | (1,025) |  |  | — |  |  | — |  |  | 30,032 |  |  | (1,025) |
Total mortgage-backed securities | 500,533 |  |  | (25,965) |  |  | 173,263 |  |  | (13,933) |  |  | 673,797 |  |  | (39,898) |
Total debt securities held-to-maturity | 709,976 |  |  | (37,533) |  |  | 225,238 |  |  | (16,989) |  |  | 935,215 |  |  | (54,522) |
Total debt securities | $ | 1,160,953 |  |  | $ | (55,461) |  |  | $ | 245,564 |  |  | $ | (17,275) |  |  | $ | 1,406,518 |  |  | $ | (72,736) |
At December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 82,395 |  |  | $ | (471) |  |  | $ | — |  |  | $ | — |  |  | $ | 82,395 |  |  | $ | (471) |
Corporate debt securities | 1,989 |  |  | (11) |  |  | — |  |  | — |  |  | 1,989 |  |  | (11) |
Asset-backed securities | 279,486 |  |  | (1,489) |  |  | — |  |  | — |  |  | 279,486 |  |  | (1,489) |
Agency commercial MBS | 80,726 |  |  | (923) |  |  | — |  |  | — |  |  | 80,726 |  |  | (923) |
Total debt securities available-for-sale | 444,596 |  |  | (2,894) |  |  | — |  |  | — |  |  | 444,596 |  |  | (2,894) |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
State, municipal, and sovereign debt obligations | 75,329 |  |  | (1,063) |  |  | 4,383 |  |  | (101) |  |  | 79,712 |  |  | (1,164) |
Corporate debt securities | 38,304 |  |  | (1,279) |  |  | — |  |  | — |  |  | 38,304 |  |  | (1,279) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Agency residential | 445,399 |  |  | (5,822) |  |  | 50,133 |  |  | (1,358) |  |  | 495,532 |  |  | (7,180) |
Agency commercial | 2,255 |  |  | (41) |  |  | 886 |  |  | (3) |  |  | 3,141 |  |  | (44) |
Non-agency commercial | 10,722 |  |  | (104) |  |  | — |  |  | — |  |  | 10,722 |  |  | (104) |
Total mortgage-backed securities | 458,376 |  |  | (5,967) |  |  | 51,019 |  |  | (1,361) |  |  | 509,395 |  |  | (7,328) |
Total debt securities held-to-maturity | 572,009 |  |  | (8,309) |  |  | 55,402 |  |  | (1,462) |  |  | 627,411 |  |  | (9,771) |
Total debt securities | $ | 1,016,605 |  |  | $ | (11,203) |  |  | $ | 55,402 |  |  | $ | (1,462) |  |  | $ | 1,072,007 |  |  | $ | (12,665) |
The Company concluded that debt securities were not impaired at March 31, 2022 based on a consideration of several factors. The Company noted that each issuer made all the contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the change in net unrealized losses were primarily due to changes in the general interest rate environment and not credit quality. Historically, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside the securities portfolio. The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. Credit ratings of BBB- or Baa3 or higher are considered as investment grade. The amortized cost of debt securities held-to-maturity at March 31, 2022, aggregated by credit quality indicator are as follows (in thousands):
| Investment Grade |  | Non-Investment Grade/Non-rated |  | Total
As of March 31, 2022 |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 272,250 |  |  | $ | — |  |  | $ | 272,250 |
Corporate debt securities | 48,211 |  |  | 15,987 |  |  | 64,198 |
Non-agency commercial MBS | 32,057 |  |  | — |  |  | 32,057 |
Total debt securities held-to-maturity | $ | 352,518 |  |  | $ | 15,987 |  |  | $ | 368,505 |
Equity Investments At March 31, 2022 and December 31, 2021, the Company held equity investments of $93.9 million and $101.2 million, respectively. The equity investments primarily comprised of select financial services institutions’ common and preferred stocks and to a lesser extent other equity investments in funds and other financial institutions. The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2022 and 2021 are shown in the table below (in thousands):
| Three Months Ended March 31, |  |
| 2022 |  | 2021 |  |  |  |
Net (loss) gain on equity investments | $ | (2,786) |  |  | $ | 8,287 |  |  |  |  |
Less: Net gains recognized on equity securities sold | 1,582 |  |  | 8,123 |  |  |  |  |
Unrealized (loss) gain recognized on equity securities still held | $ | (4,368) |  |  | $ | 164 |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration