Investment Securities

9 Months Ended

Sep. 30, 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)
September 30, 2020
Corporate bonds	$	10,000	$	92	$	—	$	10,092

Agency bond securities	55,000		45		(114)		54,931
Agency mortgage-backed securities	212,126		3,059		—		215,185
Municipal bonds	13,972		219		(241)		13,950
Asset-backed securities	14,921		295		—		15,216
Total investment securities	$	306,019	$	3,710	$	(355)	$	309,374

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

Note 4—Investment Securities (continued)

As of September 30, 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)
September 30, 2020
Agency bond securities	$	29,886	$	(114)	$	—	$	—	$	29,886	$	(114)

Municipal bonds	4,618		(241)		—		—		4,618		(241)

Total investment securities	$	34,504	$	(355)	$	—	$	—	$	34,504	$	(355)

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)

Our investments generally consist of highly rated securities, as our investment policy restricts our investments to highly liquid, low credit risk assets. We did not record any significant credit-related impairment losses during the three and nine months ended September 30, 2020 or 2019 on our available-for-sale investment securities. 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.

During the nine months ended September 30, 2020, we recorded a realized gain of approximately $5.1 million as a result of the sale of certain investment securities. The gain recognized upon sale of the investments was reclassified from accumulated other comprehensive income and is recorded as a component of other income and expenses on our consolidated statements of operations.

As of September 30, 2020, the contractual maturities of our available-for-sale investment securities were as follows:


	Amortized cost		Fair value
	(In thousands)

Due after one year through five years	$	10,000	$	10,092
Due after five years through ten years	50,000		49,886
Due after ten years	18,972		18,995
Mortgage and asset-backed securities	227,047		230,401
Total investment securities	$	306,019	$	309,374

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.