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Securities
 3 Months Ended
Mar. 31, 2023
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, 2023 and December 31, 2022 are as follows (in thousands):
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Allowance for Credit Losses
At March 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations$73,305 $4 $(6,643)$66,666 $— 
Corporate debt securities10,077 — (616)9,461 — 
Asset-backed securities296,217 — (14,448)281,769 — 
Agency commercial mortgage-backed securities (“MBS”)110,340 — (16,041)94,299 — 
Total debt securities available-for-sale$489,939 $4 $(37,748)$452,195 $— 
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations$254,311 $104 $(19,342)$235,073 $(56)
Corporate debt securities54,930 42 (4,171)50,801 (976)
Mortgage-backed securities:
Agency residential882,211 2,311 (75,309)809,213 — 
Agency commercial31,887 90 (553)31,424 — 
Non-agency commercial25,291 — (2,129)23,162 (11)
Total mortgage-backed securities939,389 2,401 (77,991)863,799 (11)
Total debt securities held-to-maturity$1,248,630 $2,547 $(101,504)$1,149,673 $(1,043)
Total debt securities$1,738,569 $2,551 $(139,252)$1,601,868 $(1,043)
At December 31, 2022
Debt securities available-for-sale:
U.S. government and agency obligations$87,648 $1 $(7,635)$80,014 $— 
Corporate debt securities8,928 — (756)8,172 — 
Asset-backed securities296,222 — (19,349)276,873 — 
Agency commercial MBS110,606 — (18,017)92,589 — 
Total debt securities available-for-sale$503,404 $1 $(45,757)$457,648 $— 
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations$260,249 $46 $(24,940)$235,355 $(60)
Corporate debt securities56,893 380 (3,778)53,495 (1,059)
Mortgage-backed securities:
Agency residential849,985 795 (83,586)767,194 — 
Agency commercial32,127 23 (1,189)30,961 — 
Non-agency commercial25,310 — (2,274)23,036 (9)
Total mortgage-backed securities907,422 818 (87,049)821,191 (9)
Total debt securities held-to-maturity$1,224,564 $1,244 $(115,767)$1,110,041 $(1,128)
Total debt securities$1,727,968 $1,245 $(161,524)$1,567,689 $(1,128)

There was no allowance for securities credit losses on debt securities available-for-sale at March 31, 2023 or December 31, 2022.
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, 2023 and 2022 (in thousands):
Three Months Ended March 31,
20232022
Allowance for securities credit losses
Beginning balance$(1,128)$(1,467)
Provision for credit loss benefit85 87 
Total ending allowance balance$(1,043)$(1,380)
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 investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities held-to-maturity at March 31, 2023, aggregated by credit quality indicator, are as follows (in thousands):
Investment GradeNon-Investment Grade/Non-ratedTotal
As of March 31, 2023
State, municipal and sovereign debt obligations$254,311 $— $254,311 
Corporate debt securities40,654 14,276 54,930 
Non-agency commercial MBS25,291 — 25,291 
Total debt securities held-to-maturity$320,256 $14,276 $334,532 
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 debt securities held-to-maturity at March 31, 2023 and December 31, 2022 is as follows (in thousands): 
March 31,December 31,
20232022
Amortized cost$1,248,630 $1,224,564 
Allowance for securities credit losses(1,043)(1,128)
Net loss on date of transfer from available-for-sale(13,556)(13,556)
Accretion of net unrealized loss on securities reclassified as held-to-maturity11,393 11,258 
Carrying value$1,245,424 $1,221,138 
There was $697,000 and $87,000 of realized losses on sale of debt securities available-for-sale for the three months ended March 31, 2023 and 2022, respectively. These realized losses on debt securities are presented within Other under Total other income of the Consolidated Statements of Income.
The amortized cost and estimated fair value of debt securities at March 31, 2023 by contractual maturity are shown below (in thousands):
March 31, 2023Amortized
Cost		Estimated
Fair Value
Less than one year$33,091 $32,799 
Due after one year through five years165,074 153,196 
Due after five years through ten years216,802 203,049 
Due after ten years273,873 254,726 
$688,840 $643,770 
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, 2023, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $60.4 million, $80.3 million, and $296.2 million, respectively, and an estimated fair value of $56.1 million, $76.7 million, and $281.8 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 and unrealized losses for debt securities available-for-sale and held-to-maturity at March 31, 2023 and December 31, 2022, segregated by the duration of the unrealized losses, are as follows (in thousands):
 Less than 12 months12 months or longerTotal
 Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
At March 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations$13,126 $(203)$53,539 $(6,440)$66,665 $(6,643)
Corporate debt securities6,909 (168)2,552 (448)9,461 (616)
Asset-backed securities59,683 (3,577)222,086 (10,871)281,769 (14,448)
Agency commercial MBS— — 94,299 (16,041)94,299 (16,041)
Total debt securities available-for-sale79,718 (3,948)372,476 (33,800)452,194 (37,748)
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations29,809 (284)195,955 (19,058)225,764 (19,342)
Corporate debt securities6,779 (535)39,610 (3,636)46,389 (4,171)
MBS:
Agency residential132,107 (1,962)516,190 (73,347)648,297 (75,309)
Agency commercial18,628 (513)1,990 (40)20,618 (553)
Non-agency commercial— — 23,162 (2,129)23,162 (2,129)
Total MBS150,735 (2,475)541,342 (75,516)692,077 (77,991)
Total debt securities held-to-maturity187,323 (3,294)776,907 (98,210)964,230 (101,504)
Total debt securities$267,041 $(7,242)$1,149,383 $(132,010)$1,416,424 $(139,252)
At December 31, 2022
Debt securities available-for-sale:
U.S. government and agency obligations$27,232 $(450)$52,782 $(7,185)$80,014 $(7,635)
Corporate debt securities4,735 (193)3,437 (563)8,172 (756)
Asset-backed securities143,392 (9,179)133,481 (10,170)276,873 (19,349)
Agency commercial MBS8,782 (1,675)83,807 (16,342)92,589 (18,017)
Total debt securities available-for-sale184,141 (11,497)273,507 (34,260)457,648 (45,757)
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations133,492 (11,952)97,135 (12,988)230,627 (24,940)
Corporate debt securities11,783 (598)36,152 (3,180)47,935 (3,778)
MBS:
Agency residential297,296 (12,404)397,036 (71,182)694,332 (83,586)
Agency commercial25,936 (1,150)2,062 (39)27,998 (1,189)
Non-agency commercial16,839 (1,621)6,198 (653)23,037 (2,274)
Total MBS340,071 (15,175)405,296 (71,874)745,367 (87,049)
Total debt securities held-to-maturity485,346 (27,725)538,583 (88,042)1,023,929 (115,767)
Total debt securities$669,487 $(39,222)$812,090 $(122,302)$1,481,577 $(161,524)
The Company concluded that debt securities were not impaired at March 31, 2023 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 credit and 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 securities sales.
Equity Investments
At March 31, 2023 and December 31, 2022, the Company held equity investments of $101.0 million and $102.0 million, respectively. The equity investments primarily comprised of select financial services institutions’ preferred stocks, investments in funds and other financial institutions.
The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2023 and 2022 are shown in the table below (in thousands):
Three Months Ended March 31,
20232022
Net loss on equity investments$(6,801)$(2,786)
Less: Net (losses) gains recognized on equity investments sold(4,608)1,582 
Unrealized losses recognized on equity investments still held$(2,193)$(4,368)