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Securities
 6 Months Ended
Jun. 30, 2021
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 June 30, 2021 and December 31, 2020 are as follows (in thousands):
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Allowance for Credit Losses
At June 30, 2021
Debt securities available-for-sale:
U.S. government and agency obligations$144,233 $2,056 $(9)$146,280 $— 
Corporate debt securities5,000 30 (3)5,027 — 
Collateralized loan obligations (“CLOs”)97,861 101 (45)97,917 — 
Mortgage-backed securities - FNMA105 1 — 106 — 
Total debt securities available-for-sale$247,199 $2,188 $(57)$249,330 $— 
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations301,343 9,544 (690)310,197 (89)
Corporate debt securities71,841 1,633 (1,474)72,000 (1,408)
Mortgage-backed securities:
FHLMC340,085 4,234 (1,846)342,473 — 
FNMA349,643 5,640 (1,379)353,904 — 
GNMA51,286 1,309 (22)52,573 — 
SBA4,925 15 (44)4,896 — 
Other32,216 864 — 33,080 (112)
Total mortgage-backed securities778,155 12,062 (3,291)786,926 (112)
Total debt securities held-to-maturity$1,151,339 $23,239 $(5,455)$1,169,123 $(1,609)
Total debt securities$1,398,538 $25,427 $(5,512)$1,418,453 $(1,609)
At December 31, 2020
Debt securities available-for-sale:
U.S. government and agency obligations$173,790 $3,152 $(2)$176,940 $— 
CLOs6,174 — (4)6,170 — 
Mortgage-backed securities - FNMA190 2 — 192 — 
Total debt securities available-for-sale$180,154 $3,154 $(6)$183,302 $— 
Debt securities held-to-maturity:
State and municipal obligations238,405 11,500 (231)249,674 (48)
Corporate debt securities72,305 1,615 (2,652)71,268 (1,550)
Mortgage-backed securities:
FHLMC232,942 5,383 (124)238,201 — 
FNMA293,615 7,640 (147)301,108 — 
GNMA67,334 2,014 (12)69,336 — 
SBA5,392 — (60)5,332 — 
Other32,321 1,226 — 33,547 (117)
Total mortgage-backed securities631,604 16,263 (343)647,524 (117)
Total debt securities held-to-maturity$942,314 $29,378 $(3,226)$968,466 $(1,715)
Total debt securities$1,122,468 $32,532 $(3,232)$1,151,768 $(1,715)
There was no allowance for securities credit losses on debt securities available-for-sale at June 30, 2021 or December 31, 2020.
The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three and six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Allowance for credit losses
Beginning balance$(1,717)$(2,529)$(1,715)$— 
Impact of CECL adoption— — — (1,268)
Provision for credit loss expense108 83 106 (1,178)
Total ending allowance balance$(1,609)$(2,446)$(1,609)$(2,446)

During 2013, the Bank transferred $536.0 million 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 $13.3 million at the time of transfer, which continues to be reflected in accumulated other comprehensive income 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 June 30, 2021 and December 31, 2020 is as follows (in thousands): 
June 30, 2021December 31, 2020
Amortized cost$1,151,339 $942,314 
Net loss on date of transfer from available-for-sale(13,347)(13,347)
Allowance for securities credit loss(1,609)(1,715)
Accretion of net unrealized loss on securities reclassified as held-to-maturity10,352 10,001 
Carrying value$1,146,735 $937,253 
There were no realized gains or losses on debt securities for the three and six months ended June 30, 2021 and 2020.
The amortized cost and estimated fair value of debt securities at June 30, 2021 by contractual maturity are shown below (in thousands). 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 June 30, 2021, corporate debt securities with an amortized cost of $34.0 million, and estimated fair value of $35.5 million, and CLOs with an amortized cost and estimated fair value of $97.9 million were callable prior to the maturity date.
 
June 30, 2021Amortized
Cost		Estimated
Fair Value
Less than one year$95,776 $96,440 
Due after one year through five years177,734 181,538 
Due after five years through ten years195,691 195,161 
Due after ten years151,077 158,282 
$620,278 $631,421 
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 as required security for deposits and for other purposes required by law amounted to $991.3 million and $435.9 million at June 30, 2021 and December 31, 2020, respectively, which includes $277.4 million and $152.7 million at June 30, 2021 and December 31, 2020, respectively, pledged as collateral for securities sold under agreements to repurchase.
At June 30, 2021, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies and government-sponsored enterprises, in an amount greater than 10% of stockholders’ equity.
The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at June 30, 2021 and December 31, 2020, 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 June 30, 2021
Debt securities available-for-sale:
U.S. government and agency obligations$15,114 $(9)$— $— $15,114 $(9)
Corporate debt securities997 (3)— — 997 (3)
CLOs40,521 (45)— — 40,521 (45)
Total debt securities available-for-sale56,632 (57)— — 56,632 (57)
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations58,149 (427)5,877 (263)64,026 (690)
Corporate debt securities37,888 (1,471)507 (3)38,395 (1,474)
Mortgage-backed securities:
FHLMC160,445 (1,846)— — 160,445 (1,846)
FNMA166,605 (1,376)272 (3)166,877 (1,379)
GNMA5,924 (22)— — 5,924 (22)
SBA1,619 (42)1,789 (2)3,408 (44)
Total mortgage-backed securities334,593 (3,286)2,061 (5)336,654 (3,291)
Total debt securities held-to-maturity430,630 (5,184)8,445 (271)439,075 (5,455)
Total debt securities$487,262 $(5,241)$8,445 $(271)$495,707 $(5,512)
At December 31, 2020
Debt securities available-for-sale:
U.S. government and agency obligations$17,029 $(2)$— $— $17,029 $(2)
CLOs4,766 (4)— — 4,766 (4)
Total debt securities available-for-sale21,795 (6)— — 21,795 (6)
Debt securities held-to-maturity:
State and municipal obligations2,823 (23)7,509 (208)10,332 (231)
Corporate debt securities10,192 (255)35,935 (2,397)46,127 (2,652)
Mortgage-backed securities:
FHLMC24,661 (117)669 (7)25,330 (124)
FNMA39,365 (128)939 (19)40,304 (147)
GNMA5,856 (11)207 (1)6,063 (12)
SBA3,626 (12)1,706 (48)5,332 (60)
Total mortgage-backed securities73,508 (268)3,521 (75)77,029 (343)
Total debt securities held-to-maturity86,523 (546)46,965 (2,680)133,488 (3,226)
Total debt securities$108,318 $(552)$46,965 $(2,680)$155,283 $(3,232)


The Company concluded that the corporate debt securities were not impaired at June 30, 2021 and the Company considered several factors in its analysis. 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 Company does not intend to sell these corporate debt securities and it is more likely than not that the Company will not be required to sell the securities. Historically, the Company has not utilized securities sales as a source of liquidity and the Company’s long range liquidity plans indicate adequate sources of liquidity outside the securities portfolio.
The mortgage-backed securities are issued and guaranteed by either FHLMC, FNMA, GNMA, or SBA, corporations which are chartered by the United States Government and whose debt obligations are rated AA+/Aaa by S&P and Moody’s, respectively.
Additionally, there are private label commercial mortgage-backed securities with credit ratings ranging between Aaa and Aa3. The Company considers the unrealized losses to be the result of changes in interest rates, and not credit quality, which over time can have both a positive and negative impact on the estimated fair value of the mortgage-backed securities. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost. As a result, the Company concluded that these securities were not impaired at June 30, 2021.
State, municipal, and sovereign debt obligations are securities issued by state, local and national governments for various purposes. The Company is not aware of any information subsequent to the purchase of any state, municipal, and sovereign debt obligations that indicates an inability on the part of an issuer to meet all of its financial commitments. The weighted average credit rating of these securities is Aa2/AA with no credit rating below Baa2/BBB. The Company has the ability and stated intention to hold these securities to maturity at which time the Company expects to receive full repayment. Current unrealized losses are considered to be the result of changes in interest rates which over time can have both a positive and negative impact on the estimated fair value of the securities. As a result, the Company concluded that these securities were not impaired as of June 30, 2021.
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. The following table summarized the amortized cost of debt securities held-to-maturity at June 30, 2021, aggregated by credit quality indicator (in thousands):
AAAAAABBBBBTotal
As of June 30, 2021
State, municipal and sovereign debt obligations$32,807 $148,920 $86,601 $33,015 $— $301,343 
Corporate debt securities— 497 12,013 48,804 10,527 71,841 
Mortgage-backed securities - other11,103 21,113 — — — 32,216 
Total debt securities held-to-maturity$43,910 $170,530 $98,614 $81,819 $10,527 $405,400 
Equity Investments
At June 30, 2021 and December 31, 2020, the Company held equity investments at an estimated fair value of $90.9 million and $107.1 million, respectively. The equity investments primarily comprised of select financial services institutions’ common and preferred stocks paying attractive dividends.
The realized and unrealized gains or losses on equity securities for the three and six months ended June 30, 2021 and June 30, 2020 are shown in the table below (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Net gain on equity investments$576 $148 $8,863 $303 
Less: Net gains (losses) recognized on equity securities sold— (53)8,123 (53)
Unrealized gain recognized on equity securities still held$576 $201 $740 $356