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Securities
 9 Months Ended
Sep. 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 September 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 September 30, 2022
Debt securities available-for-sale:
U.S. government and agency obligations$107,198 $(8,099)$99,099 $— 
Corporate debt securities5,000 — (628)4,372 — 
Asset-backed securities296,228 — (21,355)274,873 — 
Agency commercial mortgage-backed securities (“MBS”)110,871 — (18,915)91,956 — 
Total debt securities available-for-sale$519,297 $— $(48,997)$470,300 $— 
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations$263,614 $— $(31,052)$232,562 $(63)
Corporate debt securities59,000 403 (3,135)56,268 (1,135)
Mortgage-backed securities:
Agency residential674,356 103 (89,696)584,763 — 
Agency commercial7,440 6 (279)7,167 — 
Non-agency commercial26,973 — (2,307)24,666 (36)
Total mortgage-backed securities708,769 109 (92,282)616,596 (36)
Total debt securities held-to-maturity$1,031,383 $512 $(126,469)$905,426 $(1,234)
Total debt securities$1,550,680 $512 $(175,466)$1,375,726 $(1,234)
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 September 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 nine months ended September 30, 2022 and 2021 (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Allowance for securities credit losses
Beginning balance$(1,293)$(1,609)$(1,467)$(1,715)
Credit loss benefit59 106 233 212 
Total ending allowance balance$(1,234)$(1,503)$(1,234)$(1,503)
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 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 September 30, 2022, aggregated by credit quality indicator, are as follows (in thousands):
Investment GradeNon-Investment Grade/Non-ratedTotal
As of September 30, 2022
State, municipal and sovereign debt obligations$263,614 $— $263,614 
Corporate debt securities43,635 15,365 59,000 
Non-agency commercial MBS26,973 — 26,973 
Total debt securities held-to-maturity$334,222 $15,365 $349,587 
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 September 30, 2022 and December 31, 2021 is as follows (in thousands): 
September 30,December 31,
20222021
Amortized cost$1,031,383 $1,143,548 
Net loss on date of transfer from available-for-sale(13,556)(13,556)
Allowance for securities credit losses(1,234)(1,467)
Accretion of net unrealized loss on securities reclassified as held-to-maturity11,119 10,668 
Carrying value$1,027,712 $1,139,193 
There were $131,000 and $23,000 of realized gains on debt securities for the three and nine months ended September 30, 2022. There were no realized gains or losses on debt securities for the three and nine months ended September 30, 2021.
The amortized cost and estimated fair value of debt securities at September 30, 2022 by contractual maturity are shown below (in thousands).
September 30, 2022Amortized
Cost		Estimated
Fair Value
Less than one year$55,326 $54,972 
Due after one year through five years166,980 154,459 
Due after five years through ten years225,771 205,348 
Due after ten years282,963 252,395 
$731,040 $667,174 
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 September 30, 2022, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $56.0 million, $75.0 million, and $296.2 million, respectively, and an estimated fair value of $52.7 million, $68.7 million, and $274.9 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 $866.5 million and $1.14 billion at September 30, 2022 and December 31, 2021, respectively, which included $105.5 million and $142.9 million at September 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 September 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 September 30, 2022
Debt securities available-for-sale:
U.S. government and agency obligations$75,464 $(5,924)$23,635 $(2,175)$99,099 $(8,099)
Corporate debt securities3,496 (504)877 (124)4,373 (628)
Asset-backed securities216,926 (16,650)57,947 (4,705)274,873 (21,355)
Agency commercial MBS77,878 (16,233)14,078 (2,682)91,956 (18,915)
Total debt securities available-for-sale373,764 (39,311)96,537 (9,686)470,301 (48,997)
Debt securities held-to-maturity:
State, municipal and sovereign debt obligations172,090 (22,460)58,649 (8,592)230,739 (31,052)
Corporate debt securities14,142 (319)36,516 (2,816)50,658 (3,135)
MBS:
Agency residential252,724 (26,933)318,925 (62,763)571,649 (89,696)
Agency commercial3,609 (242)2,092 (37)5,701 (279)
Non-agency commercial20,512 (1,981)4,154 (326)24,666 (2,307)
Total MBS276,845 (29,156)325,171 (63,126)602,016 (92,282)
Total debt securities held-to-maturity463,077 (51,935)420,336 (74,534)883,413 (126,469)
Total debt securities$836,841 $(91,246)$516,873 $(84,220)$1,353,714 $(175,466)
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 September 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 September 30, 2022 and December 31, 2021, the Company held equity investments of $81.7 million and $101.2 million, respectively. The equity investments primarily comprised of select financial services institutions’ preferred and common 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 nine months ended September 30, 2022 and 2021 are shown in the table below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Net gain (loss) on equity investments$3,362 $(466)$(7,502)$8,397 
Less: Net gains recognized on equity securities sold— — 1,351 8,123 
Unrealized gain (loss) recognized on equity securities still held$3,362 $(466)$(8,853)$274