Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

Debt Securities, Available-for-sale [Abstract]

Summary of securities

The following is a summary of available-for-sale debt securities at March 31, 2020: 

(in thousands)	Amortized Cost(1)		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2020
Available-for-sale debt securities:
Residential mortgage-backed securities	$	4,556	$	132	$	—		$	4,688
Tax-exempt asset-backed securities	178,872		12,602		—			191,474
Credit risk transfer securities	14,713		—		(6,698		)	8,015
Total	$	198,141	$	12,734	$	(6,698	)	$	204,177
December 31, 2019
Available-for-sale debt securities:
Residential mortgage-backed securities	$	4,991	$	275	$	—		$	5,266
Tax-exempt asset-backed securities	183,225		13,802		—			197,027
Credit risk transfer securities	14,713		—		(2,749		)	11,964
Total	$	202,929	$	14,077	$	(2,749	)	$	214,257

(1)

Excludes accrued interest receivable of $1.7 million and $1.6 million at March 31, 2020 and December 31, 2019, respectively, that is recorded in accrued interest receivable and other assets.

Schedule of amortized cost and estimated fair value of securities

The amortized cost and estimated fair value, excluding accrued interest receivable, of available-for-sale debt securities are presented below by contractual maturity:  

(in thousands, except percentage data)	Less Than One Year			After One Through Five Years			After Five Through Ten Years			After Ten Years			Total
March 31, 2020
Available-for-sale:
Residential mortgage-backed securities:(1)
Amortized cost	$	—		$	888		$	—		$	3,668		$	4,556
Estimated fair value	—			968			—			3,720			4,688
Weighted average yield(3)	—		%	5.54		%	—		%	4.22		%	4.48		%
Tax-exempt asset-backed securities:(1)
Amortized Cost	—			—			—			178,872			178,872
Estimated fair value	—			—			—			191,474			191,474
Weighted average yield(2)(3)	—		%	—		%	—		%	4.20		%	4.20		%
CRT securities:(1)
Amortized Cost	—			—			—			14,713			14,713
Estimated fair value	—			—			—			8,015			8,015
Weighted average yield(3)	—		%	—		%	—		%	1.63		%	1.63		%
Total available-for-sale debt securities:
Amortized cost													$	198,141
Estimated fair value													$	204,177
December 31, 2019
Available-for-sale:
Residential mortgage-backed securities:(1)
Amortized cost	$	—		$	1,005		$	—		$	3,986		$	4,991
Estimated fair value	—			1,088			—			4,178			5,266
Weighted average yield(3)	—		%	5.54		%	—		%	4.31		%	4.55		%
Tax-exempt asset-backed securities:(1)
Amortized Cost	—			—			—			183,225			183,225
Estimated fair value	—			—			—			197,027			197,027
Weighted average yield(2)(3)	—		%	—		%	—		%	4.20		%	4.20		%
CRT securities:(1)
Amortized Cost	—			—			—			14,713			14,713
Estimated fair value	—			—			—			11,964			11,964
Weighted average yield(3)	—		%	—		%	—		%	1.71		%	1.71		%
Total available-for-sale debt securities:
Amortized cost													$	202,929
Estimated fair value													$	214,257

(1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.

(2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate.

(3)

Yields are calculated based on amortized cost.

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

The following table discloses our available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months:

	Less Than 12 Months					12 Months or Longer					Total
(in thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
March 31, 2020
CRT securities	$	—	$	—		$	8,015	$	(6,698	)	$	8,015	$	(6,698	)
December 31, 2019
CRT securities	$	11,964	$	(2,749	)	$	—	$	—		$	11,964	$	(2,749	)

Summary of unrealized and realized gains/(losses) recognized in net income on equity securities

The following is a summary of unrealized and realized gains/(losses) recognized on equity securities and included in other non-interest income in the consolidated statements of income:

	Three months ended March 31,
(in thousands)	2020			2019
Net gains/(losses) recognized during the period	$	(2,977	)	$	1,266
Less: Realized net gains/(losses) recognized during the period on equity securities sold	(19		)	(30		)
Unrealized net gains/(losses) recognized during the period on equity securities still held	$	(2,958	)	$	1,296