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v3.22.2.2

Securities (Tables) | 9 Months Ended
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Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
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, 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 September 30, 2022 |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 107,198 |  |  |  |  | $ | (8,099) |  |  | $ | 99,099 |  |  | $ | — |
Corporate debt securities | 5,000 |  |  | — |  |  | (628) |  |  | 4,372 |  |  | — |
Asset-backed securities | 296,228 |  |  | — |  |  | (21,355) |  |  | 274,873 |  |  | — |
Agency commercial mortgage-backed securities (“MBS”) | 110,871 |  |  | — |  |  | (18,915) |  |  | 91,956 |  |  | — |
Total debt securities available-for-sale | $ | 519,297 |  |  | $ | — |  |  | $ | (48,997) |  |  | $ | 470,300 |  |  | $ | — |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 263,614 |  |  | $ | — |  |  | $ | (31,052) |  |  | $ | 232,562 |  |  | $ | (63) |
Corporate debt securities | 59,000 |  |  | 403 |  |  | (3,135) |  |  | 56,268 |  |  | (1,135) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Agency residential | 674,356 |  |  | 103 |  |  | (89,696) |  |  | 584,763 |  |  | — |
Agency commercial | 7,440 |  |  | 6 |  |  | (279) |  |  | 7,167 |  |  | — |
Non-agency commercial | 26,973 |  |  | — |  |  | (2,307) |  |  | 24,666 |  |  | (36) |
Total mortgage-backed securities | 708,769 |  |  | 109 |  |  | (92,282) |  |  | 616,596 |  |  | (36) |
Total debt securities held-to-maturity | $ | 1,031,383 |  |  | $ | 512 |  |  | $ | (126,469) |  |  | $ | 905,426 |  |  | $ | (1,234) |
Total debt securities | $ | 1,550,680 |  |  | $ | 512 |  |  | $ | (175,466) |  |  | $ | 1,375,726 |  |  | $ | (1,234) |
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) |
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, 2022 and 2021 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Allowance for securities credit losses |  |  |  |  |  |  |
Beginning balance | $ | (1,293) |  |  | $ | (1,609) |  |  | $ | (1,467) |  |  | $ | (1,715) |
Credit loss benefit | 59 |  |  | 106 |  |  | 233 |  |  | 212 |
Total ending allowance balance | $ | (1,234) |  |  | $ | (1,503) |  |  | $ | (1,234) |  |  | $ | (1,503) |
Schedule of Debt Securities, Held-to-maturity, Credit Quality Indicator | Under this approach, the amortized cost of debt securities held-to-maturity at September 30, 2022, aggregated by credit quality indicator, are as follows (in thousands):
| Investment Grade |  | Non-Investment Grade/Non-rated |  | Total
As of September 30, 2022 |  |  |  |  |
State, municipal and sovereign debt obligations | $ | 263,614 |  |  | $ | — |  |  | $ | 263,614 |
Corporate debt securities | 43,635 |  |  | 15,365 |  |  | 59,000 |
Non-agency commercial MBS | 26,973 |  |  | — |  |  | 26,973 |
Total debt securities held-to-maturity | $ | 334,222 |  |  | $ | 15,365 |  |  | $ | 349,587 |
Carrying Value of Held-to-Maturity Investment Securities | The carrying value of the debt securities held-to-maturity at September 30, 2022 and December 31, 2021 is as follows (in thousands):
| September 30, |  | December 31,
| 2022 |  | 2021
Amortized cost | $ | 1,031,383 |  |  | $ | 1,143,548 |
Net loss on date of transfer from available-for-sale | (13,556) |  |  | (13,556) |
Allowance for securities credit losses | (1,234) |  |  | (1,467) |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 11,119 |  |  | 10,668 |
Carrying value | $ | 1,027,712 |  |  | $ | 1,139,193 |
The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2022 and 2021 are shown in the table below (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Net gain (loss) on equity investments | $ | 3,362 |  |  | $ | (466) |  |  | $ | (7,502) |  |  | $ | 8,397 |
Less: Net gains recognized on equity securities sold | — |  |  | — |  |  | 1,351 |  |  | 8,123 |
Unrealized gain (loss) recognized on equity securities still held | $ | 3,362 |  |  | $ | (466) |  |  | $ | (8,853) |  |  | $ | 274 |
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, 2022 by contractual maturity are shown below (in thousands).
September 30, 2022 | Amortized Cost |  | Estimated Fair Value
Less than one year | $ | 55,326 |  |  | $ | 54,972 |
Due after one year through five years | 166,980 |  |  | 154,459 |
Due after five years through ten years | 225,771 |  |  | 205,348 |
Due after ten years | 282,963 |  |  | 252,395 |
| $ | 731,040 |  |  | $ | 667,174 |
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, 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 September 30, 2022 |  |  |  |  |  |  |  |  |  |  |
Debt securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and agency obligations | $ | 75,464 |  |  | $ | (5,924) |  |  | $ | 23,635 |  |  | $ | (2,175) |  |  | $ | 99,099 |  |  | $ | (8,099) |
Corporate debt securities | 3,496 |  |  | (504) |  |  | 877 |  |  | (124) |  |  | 4,373 |  |  | (628) |
Asset-backed securities | 216,926 |  |  | (16,650) |  |  | 57,947 |  |  | (4,705) |  |  | 274,873 |  |  | (21,355) |
Agency commercial MBS | 77,878 |  |  | (16,233) |  |  | 14,078 |  |  | (2,682) |  |  | 91,956 |  |  | (18,915) |
Total debt securities available-for-sale | 373,764 |  |  | (39,311) |  |  | 96,537 |  |  | (9,686) |  |  | 470,301 |  |  | (48,997) |
Debt securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
State, municipal and sovereign debt obligations | 172,090 |  |  | (22,460) |  |  | 58,649 |  |  | (8,592) |  |  | 230,739 |  |  | (31,052) |
Corporate debt securities | 14,142 |  |  | (319) |  |  | 36,516 |  |  | (2,816) |  |  | 50,658 |  |  | (3,135) |
MBS: |  |  |  |  |  |  |  |  |  |  |
Agency residential | 252,724 |  |  | (26,933) |  |  | 318,925 |  |  | (62,763) |  |  | 571,649 |  |  | (89,696) |
Agency commercial | 3,609 |  |  | (242) |  |  | 2,092 |  |  | (37) |  |  | 5,701 |  |  | (279) |
Non-agency commercial | 20,512 |  |  | (1,981) |  |  | 4,154 |  |  | (326) |  |  | 24,666 |  |  | (2,307) |
Total MBS | 276,845 |  |  | (29,156) |  |  | 325,171 |  |  | (63,126) |  |  | 602,016 |  |  | (92,282) |
Total debt securities held-to-maturity | 463,077 |  |  | (51,935) |  |  | 420,336 |  |  | (74,534) |  |  | 883,413 |  |  | (126,469) |
Total debt securities | $ | 836,841 |  |  | $ | (91,246) |  |  | $ | 516,873 |  |  | $ | (84,220) |  |  | $ | 1,353,714 |  |  | $ | (175,466) |
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) |
MBS: |  |  |  |  |  |  |  |  |  |  |
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 MBS | 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) |

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