Investment Securities (Tables)

6 Months Ended

Jun. 30, 2020

Debt Securities, Available-for-sale [Abstract]

Summary of securities

The following is a summary of available-for-sale debt securities: 

(in thousands)	Amortized Cost(1)		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2020
Available-for-sale debt securities:
Residential mortgage-backed securities	$	4,308	$	154	$	—		$	4,462
Tax-exempt asset-backed securities	187,210		4,455		(248		)	191,417
Credit risk transfer securities	14,713		—		(3,760		)	10,953
Total	$	206,231	$	4,609	$	(4,008	)	$	206,832
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 $1.5 million and $1.6 million at June 30, 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, and weighted average yield 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
June 30, 2020
Available-for-sale:
Residential mortgage-backed securities:(1)
Amortized cost	$	—		$	772		$	—		$	3,536		$	4,308
Estimated fair value	—			851			—			3,611			4,462
Weighted average yield(3)	—		%	5.54		%	—		%	3.73		%	4.05		%
Tax-exempt asset-backed securities:(1)
Amortized Cost	—			—			—			187,210			187,210
Estimated fair value	—			—			—			191,417			191,417
Weighted average yield(2)(3)	—		%	—		%	—		%	3.88		%	3.88		%
CRT securities:(1)
Amortized Cost	—			—			—			14,713			14,713
Estimated fair value	—			—			—			10,953			10,953
Weighted average yield(3)	—		%	—		%	—		%	0.18		%	0.18		%
Total available-for-sale debt securities:
Amortized cost													$	206,231
Estimated fair value													$	206,832
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
June 30, 2020
Tax-exempt asset-backed securities	$	91,762	$	(248	)	$	—	$	—		$	91,762	$	(248	)
CRT securities	—		—			10,953		(3,760		)	10,953		(3,760		)
Total	$	91,762	$	(248	)	$	10,953	$	(3,760	)	$	102,715	$	(4,008	)
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 June 30,					Six months ended June 30,
(in thousands)	2020			2019		2020			2019
Net gains/(losses) recognized during the period	$	2,912		$	573	$	(65	)	$	1,839
Less: Realized net gains/(losses) recognized during the period on equity securities sold	(226		)	6		(245		)	(24		)
Unrealized net gains/(losses) recognized during the period on equity securities still held	$	3,138		$	567	$	180		$	1,863