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Equity Securities | 6 Months Ended
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Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract] |
Equity Securities | Debt Securities Available-for-Sale The following is a comparative summary of mortgage-backed and other debt securities available-for-sale at June 30, 2020, and December 31, 2019 (in thousands):
| June 30, 2020 |  |  |  |  |  |
|  |  | Gross |  | Gross |  | Estimated
| Amortized |  | unrealized |  | unrealized |  | fair
| cost |  | gains |  | losses |  | value
Mortgage-backed securities: |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |
Government sponsored enterprises (GSE) | $ | 278,065 |  |  | $ | 11,163 |  |  | $ | 75 |  |  | $ | 289,153 |
Real estate mortgage investment conduits (REMICs): |  |  |  |  |  |  |
GSE | 646,257 |  |  | 7,878 |  |  | 126 |  |  | 654,009 |
Non-GSE | 48 |  |  | — |  |  | 1 |  |  | 47 |
| 924,370 |  |  | 19,041 |  |  | 202 |  |  | 943,209 |
Other debt securities: |  |  |  |  |  |  |
Municipal bonds | 253 |  |  | 1 |  |  | — |  |  | 254 |
Corporate bonds | 92,631 |  |  | 1,395 |  |  | — |  |  | 94,026 |
| 92,884 |  |  | 1,396 |  |  | — |  |  | 94,280 |
Total debt securities available-for-sale | $ | 1,017,254 |  |  | $ | 20,437 |  |  | $ | 202 |  |  | $ | 1,037,489 |
| December 31, 2019 |  |  |  |  |  |
|  |  | Gross |  | Gross |  | Estimated
| Amortized |  | unrealized |  | unrealized |  | fair
| cost |  | gains |  | losses |  | value
Mortgage-backed securities: |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |
GSE | $ | 324,080 |  |  | $ | 6,081 |  |  | $ | 754 |  |  | $ | 329,407 |
REMICs: |  |  |  |  |  |  |
GSE | 643,816 |  |  | 2,076 |  |  | 2,225 |  |  | 643,667 |
Non-GSE | 53 |  |  | — |  |  | — |  |  | 53 |
| 967,949 |  |  | 8,157 |  |  | 2,979 |  |  | 973,127 |
Other debt securities: |  |  |  |  |  |  |
Municipal bonds | 296 |  |  | 3 |  |  | — |  |  | 299 |
Corporate bonds | 163,725 |  |  | 1,214 |  |  | 13 |  |  | 164,926 |
| 164,021 |  |  | 1,217 |  |  | 13 |  |  | 165,225 |
Total debt securities available-for-sale | $ | 1,131,970 |  |  | $ | 9,374 |  |  | $ | 2,992 |  |  | $ | 1,138,352 |
The following is a summary of the expected maturity distribution of debt securities available-for-sale, other than mortgage-backed securities, at June 30, 2020 (in thousands):
Available-for-sale | Amortized cost |  | Estimated fair value
Due in one year or less | $ | 42,195 |  |  | $ | 42,513 |
Due after one year through five years | 50,689 |  |  | 51,767 |
| $ | 92,884 |  |  | $ | 94,280 |
Contractual maturities for mortgage-backed securities are not included above, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. Certain debt securities available-for-sale are pledged or encumbered to secure borrowings under Pledge Agreements and Repurchase Agreements and for other purposes required by law. At June 30, 2020, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $584.2 million. For the three months ended June 30, 2020, the Company had gross proceeds of $12.6 million on sales of debt securities available-for-sale, with gross realized gains of $74,000 related to sales of securities and gross realized losses of $1,000 related to calls of securities. For the six months ended June 30, 2020, the Company had gross proceeds of $12.6 million on sales of debt securities available-for-sale, with gross realized gains of $74,000 related to sales of securities and gross realized losses of $14,000 related to calls of securities. For the three and six months ended June 30, 2019, the Company had gross proceeds of $5.2 million and $34.4 million, respectively, on sales of debt securities available-for-sale, with gross realized gains of $59,000 and $214,000, respectively, and no gross realized losses. The Company recognized net gains of $1.6 million and net losses of $366,000 on its trading securities portfolio during the three and six months ended June 30, 2020, respectively, and net gains of $343,000 and $1.4 million, during the three and six months ended June 30, 2019, respectively. Gross unrealized losses on mortgage-backed and other debt securities available-for-sale, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2020, and December 31, 2019, were as follows (in thousands):
| June 30, 2020 |  |  |  |  |  |  |  |  |  |
| Less than 12 months |  |  |  | 12 months or more |  |  |  | Total |  |
| Unrealized |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  | Estimated
| losses |  | fair value |  | losses |  | fair value |  | losses |  | fair value
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | $ | — |  |  | $ | — |  |  | $ | 75 |  |  | $ | 543 |  |  | $ | 75 |  |  | $ | 543 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | 112 |  |  | 31,767 |  |  | 14 |  |  | 13,281 |  |  | 126 |  |  | 45,048 |
Non-GSE | — |  |  | — |  |  | 1 |  |  | 47 |  |  | 1 |  |  | 47 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |
Municipal bonds | — |  |  | 125 |  |  | — |  |  | — |  |  | — |  |  | 125 |
Total | $ | 112 |  |  | $ | 31,892 |  |  | $ | 90 |  |  | $ | 13,871 |  |  | $ | 202 |  |  | $ | 45,763 |
| December 31, 2019 |  |  |  |  |  |  |  |  |  |
| Less than 12 months |  |  |  | 12 months or more |  |  |  | Total |  |
| Unrealized |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  | Estimated
| losses |  | fair value |  | losses |  | fair value |  | losses |  | fair value
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | $ | 25 |  |  | $ | 3,404 |  |  | $ | 729 |  |  | $ | 55,184 |  |  | $ | 754 |  |  | $ | 58,588 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | 950 |  |  | 197,634 |  |  | 1,275 |  |  | 54,555 |  |  | 2,225 |  |  | 252,189 |
Non-GSE | — |  |  | — |  |  | — |  |  | 53 |  |  | — |  |  | 53 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | — |  |  | — |  |  | 13 |  |  | 15,586 |  |  | 13 |  |  | 15,586 |
Total | $ | 975 |  |  | $ | 201,038 |  |  | $ | 2,017 |  |  | $ | 125,378 |  |  | $ | 2,992 |  |  | $ | 326,416 |
The Company held 12 pass-through mortgage-backed securities issued or guaranteed by GSEs, four REMIC mortgage-backed securities issued or guaranteed by GSEs, and one REMIC mortgage-backed security not issued or guaranteed by a GSE, that were in a continuous unrealized loss position of twelve months or greater at June 30, 2020. There were 10 REMIC mortgage-backed securities issued or guaranteed by GSEs, and two municipal bonds that were in an unrealized loss position of less than twelve months at June 30, 2020. All securities referred to above were rated investment grade at June 30, 2020. Management evaluated these securities and concluded that the declines in fair value relate to the general interest rate environment and are considered temporary. The securities cannot be prepaid in a manner that would result in the Company not receiving substantially all of its amortized cost. The Company neither has an intent to sell, nor is it more likely than not that the Company will be required to sell, the securities before the recovery of their amortized cost basis or, if necessary, maturity. The fair values of our debt securities available-for-sale could decline in the future if the underlying performance of the collateral for the collateralized mortgage obligations or other securities deteriorates and our credit enhancement levels do not provide sufficient protections to our contractual principal and interest, which may result in other-than-temporary impairment in the future. The Company did not recognize any other-than-temporary impairment charges during the three and six months ended June 30, 2020, or June 30, 2019. Equity Securities At June 30, 2020 and December 31, 2019, equity securities totaled $1.3 million and $3.3 million, respectively. Equity securities consist of money market mutual funds, recorded at fair value of $214,000 and $250,000 at June 30, 2020 and December 31, 2019, respectively, and an investment in a private Small Business Administration (“SBA”) Loan Fund recorded at net asset value of $1.1 and $3.1 million at June 30, 2020 and December 31, 2019, respectively. As the SBA Loan Fund operates as a private fund, its shares are not publicly traded and therefore have no readily determinable market value. The investment in the fund is recorded at net asset value as a practical expedient for reporting fair value.

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- 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 + Details
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