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Securities
 6 Months Ended
Jun. 30, 2022
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, 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 securities5,000 — (410)4,590 — 
Asset-backed securities296,232 — (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 securities62,212 555 (3,247)59,520 (972)
Mortgage-backed securities:
Agency residential701,478 218 (58,953)642,743 — 
Agency commercial7,741 36 (35)7,742 — 
Non-agency commercial32,007 — (1,619)30,388 (30)
Total mortgage-backed securities741,226 254 (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 securities5,000 42 (11)5,031 — 
Asset-backed securities298,976 41 (1,489)297,528 — 
Agency commercial MBS101,142 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 securities68,823 1,628 (1,279)69,172 (1,343)
Mortgage-backed securities:
Agency residential756,844 6,785 (7,180)756,449 — 
Agency commercial4,385 7 (44)4,348 — 
Non-agency commercial32,107 362 (104)32,365 (39)
Total mortgage-backed securities793,336 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)

There was no allowance for securities credit losses on debt securities available-for-sale at June 30, 2022 or December 31, 2021. The unrealized losses across security classes were due to interest rate movements. In addition, the asset-backed securities, which are largely comprised of collateralized-loan obligations, and the corporate debt securities were also impacted by credit spread widening across the fixed income markets. All of these securities are rated investment grade.
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,
2022202120222021
Allowance for securities credit losses
Beginning balance$(1,380)$(1,717)$(1,467)$(1,715)
Credit loss benefit87 108 174 106 
Total ending allowance balance$(1,293)$(1,609)$(1,293)$(1,609)
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 as 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 June 30, 2022, aggregated by credit quality indicator, are as follows (in thousands):
Investment GradeNon-Investment Grade/Non-ratedTotal
As of June 30, 2022
State, municipal and sovereign debt obligations$266,455 $2,018 $268,473 
Corporate debt securities46,340 15,872 62,212 
Non-agency commercial MBS32,007 — 32,007 
Total debt securities held-to-maturity$344,802 $17,890 $362,692 
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 the debt securities held-to-maturity at June 30, 2022 and December 31, 2021 is as follows (in thousands): 
June 30,December 31,
20222021
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-maturity10,972 10,668 
Carrying value$1,068,034 $1,139,193 
There were $21,000 and $108,000 of realized losses on debt securities for the three and six months ended June 30, 2022. There were no realized gains or losses on debt securities for the three and six months ended June 30, 2021.
The amortized cost and estimated fair value of debt securities at June 30, 2022 by contractual maturity are shown below (in thousands).
June 30, 2022Amortized
Cost		Estimated
Fair Value
Less than one year$81,436 $81,117 
Due after one year through five years165,148 156,828 
Due after five years through ten years221,620 206,328 
Due after ten years295,107 271,762 
$763,311 $716,035 
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, 2022, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $61.1 million, $87.2 million, and $296.2 million, respectively, and an estimated fair value of $58.0 million, $83.4 million, and $279.0 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 of securities pledged for the ability to draw on FHLB advances, access to the Federal Reserve discount window, and other borrowings and for other purposes required by law amounted to $941.9 million and $1.14 billion at June 30, 2022 and December 31, 2021, respectively, which includes $110.6 million and $142.9 million at June 30, 2022 and December 31, 2021, respectively, pledged as collateral for securities sold under agreements to repurchase.
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 months12 months or longerTotal
 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 securities4,590 (410)— — 4,590 (410)
Asset-backed securities256,738 (15,945)22,243 (1,306)278,981 (17,251)
Agency commercial MBS97,901 (13,234)— — 97,901 (13,234)
Total debt securities available-for-sale479,290 (35,132)27,985 (1,354)507,275 (36,486)
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations201,586 (19,834)15,084 (1,609)216,670 (21,443)
Corporate debt securities6,904 (224)35,308 (3,023)42,212 (3,247)
MBS:
Agency residential453,637 (38,586)158,125 (20,367)611,762 (58,953)
Agency commercial2,283 (35)2,283 (35)
Non-agency commercial30,388 (1,619)— — 30,388 (1,619)
Total MBS484,025 (40,205)160,408 (20,402)644,433 (60,607)
Total debt securities held-to-maturity692,515 (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 securities1,989 (11)— — 1,989 (11)
Asset-backed securities279,486 (1,489)— — 279,486 (1,489)
Agency commercial MBS80,726 (923)— — 80,726 (923)
Total debt securities available-for-sale444,596 (2,894)— — 444,596 (2,894)
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations75,329 (1,063)4,383 (101)79,712 (1,164)
Corporate debt securities38,304 (1,279)— — 38,304 (1,279)
MBS:
Agency residential445,399 (5,822)50,133 (1,358)495,532 (7,180)
Agency commercial2,255 (41)886 (3)3,141 (44)
Non-agency commercial10,722 (104)— — 10,722 (104)
Total MBS458,376 (5,967)51,019 (1,361)509,395 (7,328)
Total debt securities held-to-maturity572,009 (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)

The Company concluded that debt securities were not impaired at June 30, 2022 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 the securities portfolio.
Equity Investments
At June 30, 2022 and December 31, 2021, the Company held equity investments of $75.3 million and $101.2 million, respectively. The equity investments primarily comprised of select financial services institutions’ common and preferred stocks and, to a lesser extent, other equity investments in funds and other financial institutions.
The realized and unrealized gains or losses on equity securities for the three and six months ended June 30, 2022 and 2021 are shown in the table below (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net (loss) gain on equity investments$(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