Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Our available-for-sale investment securities were as follows:


	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(In thousands)
March 31, 2020
Corporate bonds	$	10,000	$	21	$	—	$	10,021

Agency bond securities	15,000		50		—		15,050
Agency mortgage-backed securities	250,387		8,319		(153)		258,553
Municipal bonds	4,275		—		(76)		4,199
Asset-backed securities	19,868		89		(255)		19,702
Total investment securities	$	299,530	$	8,479	$	(484)	$	307,525

December 31, 2019
Corporate bonds	$	10,000	$	12	$	—	$	10,012


Agency bond securities	19,980		20		—		20,000
Agency mortgage-backed securities	208,821		2,453		(241)		211,033
Municipal bonds	4,342		2		(2)		4,342
Asset-backed securities	31,814		238		—		32,052
Total investment securities	$	274,957	$	2,725	$	(243)	$	277,439

As of March 31, 2020 and December 31, 2019, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:


	Less than 12 months						12 months or more						Total fair value	Total unrealized loss
	Fair value		Unrealized loss		Fair value		Unrealized loss
	(In thousands)
March 31, 2020

Agency mortgage-backed securities	$	3,812	$	(86)	$	5,921	$	(67)	$	9,733	$	(153)
Municipal bonds	4,109		(75)		89		(1)		4,198		(76)
Asset-backed securities	9,739		(255)		—		—		9,739		(255)
Total investment securities	$	17,660	$	(416)	$	6,010	$	(68)	$	23,670	$	(484)

December 31, 2019


Agency mortgage-backed securities	$	43,337	$	(153)	$	8,735	$	(88)	$	52,072	$	(241)
Municipal bonds	—		—		113		(2)		113		(2)

Total investment securities	$	43,337	$	(153)	$	8,848	$	(90)	$	52,185	$	(243)

Note 4—Investment Securities (continued)

Our investments generally consist of highly rated securities, as our investment policy restricts our investments to highly liquid, low credit risk assets. For the three months ended March 31, 2020, we recorded a de minimis credit-related impairment loss on an individual security within our available-for-sale investment portfolio. Upon adoption of ASU 2016-13, we establish an allowance for credit losses limited by the amount that the fair value of the investment is less than its amortized cost, rather than a direct write down under previous GAAP. Any subsequent improvements in credit will be recognized in income through a reversal of the allowance established. We continue to record non-credit-related losses as a component of accumulated other comprehensive income or loss. We do not intend to sell our investments and we have determined that it is more likely than not that we will not be required to sell our investments before recovery of their amortized cost bases, which may be at maturity.

We did not record any credit-related impairment losses during the three months ended March 31, 2019 on our available-for-sale investment securities.

As of March 31, 2020, the contractual maturities of our available-for-sale investment securities were as follows:


	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	10,000	$	10,003
Due after one year through five years	10,000		10,021
Due after five years through ten years	—		—
Due after ten years	9,275		9,246
Mortgage and asset-backed securities	270,255		278,255
Total investment securities	$	299,530	$	307,525

The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.