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Debt Securities Available-for-Sale | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Debt Securities Available-for-Sale | Debt Securities Available-for-Sale The following is a comparative summary of mortgage-backed securities and other debt securities available-for-sale at December 31, 2021 and 2020 (in thousands):
| December 31, 2021
|  |  | Gross |  | Gross |  | Estimated
| Amortized |  | unrealized |  | unrealized |  | fair
| cost |  | gains |  | losses |  | value
U.S. Government agency securities | $ | 2,344 |  |  | $ | — |  |  | $ | (54) |  |  | $ | 2,290 |
Mortgage-backed securities: |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |
Government sponsored enterprises ("GSEs") | 579,035 |  |  | 5,233 |  |  | (2,862) |  |  | 581,406 |
Real estate mortgage investment conduits ("REMICs"): |  |  |  |  |  |  |
GSE | 390,755 |  |  | 2,398 |  |  | (1,443) |  |  | 391,710 |
| 969,790 |  |  | 7,631 |  |  | (4,305) |  |  | 973,116 |
Other debt securities: |  |  |  |  |  |  |
Municipal bonds | 71 |  |  | 1 |  |  | — |  |  | 72 |
Corporate bonds | 233,311 |  |  | 192 |  |  | (744) |  |  | 232,759 |
| 233,382 |  |  | 193 |  |  | (744) |  |  | 232,831 |
Total debt securities available-for-sale | $ | 1,205,516 |  |  | $ | 7,824 |  |  | $ | (5,103) |  |  | $ | 1,208,237 |
| December 31, 2020
|  |  | Gross |  | Gross |  | Estimated
| Amortized |  | unrealized |  | unrealized |  | fair
| cost |  | gains |  | losses |  | value
U.S. Government agency securities | $ | 3,168 |  |  | $ | — |  |  | $ | (10) |  |  | $ | 3,158 |
Mortgage-backed securities: |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |
GSE | 270,867 |  |  | 10,720 |  |  | (244) |  |  | 281,343 |
REMICs: |  |  |  |  |  |  |
GSE | 884,414 |  |  | 7,027 |  |  | (476) |  |  | 890,965 |
Non-GSE | 4 |  |  | — |  |  | — |  |  | 4 |
| 1,155,285 |  |  | 17,747 |  |  | (720) |  |  | 1,172,312 |
Other debt securities: |  |  |  |  |  |  |
Municipal bonds | 122 |  |  | 1 |  |  | — |  |  | 123 |
Corporate bonds | 87,319 |  |  | 1,099 |  |  | — |  |  | 88,418 |
Asset-backed securities | 779 |  |  | 15 |  |  | — |  |  | 794 |
| 88,220 |  |  | 1,115 |  |  | — |  |  | 89,335 |
Total debt securities available-for-sale | $ | 1,246,673 |  |  | $ | 18,862 |  |  | $ | (730) |  |  | $ | 1,264,805 |
The following is a summary of the expected maturity distribution of debt securities available-for-sale other than mortgage-backed securities at December 31, 2021 (in thousands):
Available-for-sale |  | Amortized cost |  | Estimated fair value
Due in one year or less |  | $ | 57,299 |  |  | $ | 57,295 |
Due after one year through five years |  | 161,074 |  |  | 160,835 |
Due after five years through ten years |  | 17,353 |  |  | 16,991 |
|  | $ | 235,726 |  |  | $ | 235,121 |
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 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 December 31, 2021, and December 31, 2020, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $522.1 million and $542.1 million, respectively. See Note 10 - “Borrowings” for further discussion regarding securities pledged or encumbered for borrowings. For the year ended December 31, 2021, the Company had gross proceeds of $329.0 million on sales of securities available-for-sale with gross realized gains of $1.5 million and no gross realized losses. For the year ended December 31, 2020, the Company had gross proceeds of $23.6 million on sales of securities available-for-sale with gross realized gains of $350,000 and gross realized losses of $23,000. For the year ended December 31, 2019, the Company had gross proceeds of $79.3 million on sales of securities available-for-sale with gross realized gains of $514,000 and no gross realized losses. The Company recognized net gains of $1.7 million, $1.6 million, and $2.0 million on its trading securities portfolio during the years ended December 31, 2021 and December 31, 2020, and December 31, 2019 respectively. The Company routinely sells securities when market pricing presents, in management’s assessment, an economic benefit that outweighs holding such security, and when smaller balance securities become cost prohibitive to carry. Gross unrealized losses on mortgage-backed securities 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 December 31, 2021 and 2020, were as follows (in thousands):
| December 31, 2021
| Less than 12 months |  | 12 months or more |  | Total
| Unrealized |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  | Estimated
| losses |  | fair value |  | losses |  | fair value |  | losses |  | fair value
U.S. Government agency securities | $ | — |  |  | $ | — |  |  | $ | (54) |  |  | $ | 2,290 |  |  | $ | (54) |  |  | $ | 2,290 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | (2,543) |  |  | 417,291 |  |  | (318) |  |  | 14,625 |  |  | (2,861) |  |  | 431,916 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | (1,350) |  |  | 125,725 |  |  | (94) |  |  | 4,413 |  |  | (1,444) |  |  | 130,138 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | (744) |  |  | 146,853 |  |  | — |  |  | — |  |  | (744) |  |  | 146,853 |
Total | $ | (4,637) |  |  | $ | 689,869 |  |  | $ | (466) |  |  | $ | 21,328 |  |  | $ | (5,103) |  |  | $ | 711,197 |
| December 31, 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
U.S. Government agency securities | $ | (10) |  |  | $ | 3,158 |  |  | $ | — |  |  | $ | — |  |  | $ | (10) |  |  | $ | 3,158 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | (233) |  |  | 28,419 |  |  | (11) |  |  | 459 |  |  | (244) |  |  | 28,878 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | (476) |  |  | 210,569 |  |  | — |  |  | — |  |  | (476) |  |  | 210,569 |
Total | $ | (719) |  |  | $ | 242,146 |  |  | $ | (11) |  |  | $ | 459 |  |  | $ | (730) |  |  | $ | 242,605 |
The Company held 15 pass-through mortgage-backed securities issued or guaranteed by GSEs, 20 REMIC mortgage-backed securities issued or guaranteed by GSEs, and one U.S. Government agency security that were in a continuous unrealized loss position of twelve months or greater at December 31, 2021. There were 27 pass-through mortgage-backed securities issued or guaranteed by GSEs, 28 REMIC mortgage-backed securities issued or guaranteed by GSEs, and 21 corporate bonds that were in an unrealized loss position of less than twelve months at December 31, 2021. All securities referred to above were rated investment grade at December 31, 2021. Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. In performing an assessment of whether any decline in fair value is due to a credit loss, the Company considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level such as credit deterioration of the issuer or collateral underlying the security. In assessing the impairment, the Company compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If it is determined that the decline in fair value was due to credit losses, an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. The Company did not recognize any allowance for credit losses on its available-for-sale debt securities during the year ended December 31, 2021. The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. The Company also assesses the intent to sell the securities (as well as the likelihood of a near-term recovery). If the Company intends to sell an available for sale debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, the debt security is written down to its fair value and the write down is charged to the debt security’s fair value at the reporting date with any incremental impairment reported in earnings. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivable associated with debt securities available-for-sale totaling $2.5 million at December 31, 2021 was reported in accrued interest receivable on the consolidated balance sheet. Equity Securities At December 31, 2021 and December 31, 2020, equity securities totaled $5.3 million and $253,000, respectively. Equity securities consist of money market mutual funds, recorded at fair value of $328,000 and $253,000, at December 31, 2021 and December 31, 2020, respectively, and in addition, an investment in a private Small Business Administration (“SBA”) Loan Fund (the "SBA Loan Fund") recorded at net asset value of $5.0 million and $0 at December 31, 2021 and December 31, 2020, 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 SBA Loan Fund was 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 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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