Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

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, 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 June 30, 2022
Debt securities available-for-sale:
U.S. government and agency obligations	$	131,394	$	1	$	(5,591)	$	125,804	$	—
Corporate debt securities	5,000		—		(410)		4,590		—
Asset-backed securities	296,232		—		(17,251)		278,981		—

Agency commercial mortgage-backed securities (“MBS”)	111,135		—		(13,234)		97,901		—
Total debt securities available-for-sale	$	543,761	$	1	$	(36,486)	$	507,276	$	—
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations	$	268,473	$	109	$	(21,443)	$	247,139	$	(291)
Corporate debt securities	62,212		555		(3,247)		59,520		(972)
Mortgage-backed securities:
Agency residential	701,478		218		(58,953)		642,743		—
Agency commercial	7,741		36		(35)		7,742		—
Non-agency commercial	32,007		—		(1,619)		30,388		(30)
Total mortgage-backed securities	741,226		254		(60,607)		680,873		(30)
Total debt securities held-to-maturity	$	1,071,911	$	918	$	(85,297)	$	987,532	$	(1,293)
Total debt securities	$	1,615,672	$	919	$	(121,783)	$	1,494,808	$	(1,293)
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 six months ended June 30, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Allowance for securities credit losses
Beginning balance	$	(1,380)	$	(1,717)	$	(1,467)	$	(1,715)

Credit loss benefit	87		108		174		106



Total ending allowance balance	$	(1,293)	$	(1,609)	$	(1,293)	$	(1,609)

Schedule of Debt Securities, Held-to-maturity, Credit Quality Indicator

Under this approach, the amortized cost of debt securities held-to-maturity at June 30, 2022, aggregated by credit quality indicator, are as follows (in thousands):



	Investment Grade		Non-Investment Grade/Non-rated		Total
As of June 30, 2022


State, municipal and sovereign debt obligations	$	266,455	$	2,018	$	268,473
Corporate debt securities	46,340		15,872		62,212






Non-agency commercial MBS	32,007		—		32,007

Total debt securities held-to-maturity	$	344,802	$	17,890	$	362,692

Carrying Value of Held-to-Maturity Investment Securities

The carrying value of the debt securities held-to-maturity at June 30, 2022 and December 31, 2021 is as follows (in thousands):


	June 30,		December 31,
	2022		2021
Amortized cost	$	1,071,911	$	1,143,548
Net loss on date of transfer from available-for-sale	(13,556)		(13,556)
Allowance for securities credit losses	(1,293)		(1,467)
Accretion of net unrealized loss on securities reclassified as held-to-maturity	10,972		10,668
Carrying value	$	1,068,034	$	1,139,193

The realized and unrealized gains or losses on equity securities for the three and six months ended June 30, 2022 and 2021 are shown in the table below (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net (loss) gain on equity investments	$	(8,078)	$	576	$	(10,864)	$	8,863
Less: Net (losses) gains recognized on equity securities sold	(231)		—		1,351		8,123
Unrealized (loss) gain recognized on equity securities still held	$	(7,847)	$	576	$	(12,215)	$	740

Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity

The amortized cost and estimated fair value of debt securities at June 30, 2022 by contractual maturity are shown below (in thousands).


June 30, 2022	Amortized Cost		Estimated Fair Value
Less than one year	$	81,436	$	81,117
Due after one year through five years	165,148		156,828
Due after five years through ten years	221,620		206,328
Due after ten years	295,107		271,762
	$	763,311	$	716,035

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 June 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 June 30, 2022
Debt securities available-for-sale:
U.S. government and agency obligations	$	120,061	$	(5,543)	$	5,742	$	(48)	$	125,803	$	(5,591)
Corporate debt securities	4,590		(410)		—		—		4,590		(410)
Asset-backed securities	256,738		(15,945)		22,243		(1,306)		278,981		(17,251)
Agency commercial MBS	97,901		(13,234)		—		—		97,901		(13,234)
Total debt securities available-for-sale	479,290		(35,132)		27,985		(1,354)		507,275		(36,486)
Debt securities held-to-maturity:


State, municipal and sovereign debt obligations	201,586		(19,834)		15,084		(1,609)		216,670		(21,443)
Corporate debt securities	6,904		(224)		35,308		(3,023)		42,212		(3,247)

MBS:
Agency residential	453,637		(38,586)		158,125		(20,367)		611,762		(58,953)
Agency commercial					2,283		(35)		2,283		(35)
Non-agency commercial	30,388		(1,619)		—		—		30,388		(1,619)
Total MBS	484,025		(40,205)		160,408		(20,402)		644,433		(60,607)
Total debt securities held-to-maturity	692,515		(60,263)		210,800		(25,034)		903,315		(85,297)
Total debt securities	$	1,171,805	$	(95,395)	$	238,785	$	(26,388)	$	1,410,590	$	(121,783)
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)