SECURITIES (Tables)

6 Months Ended

Jun. 30, 2022

SECURITIES

Summary of AFS Securities Portfolio

The following table provides a summary of the Company’s securities AFS portfolio as of:

	Amortized		Gross Unrealized				Allowance for		Estimated
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Fair Value
June 30, 2022:
Collateralized mortgage obligations	$	10,941	$	—	$	(936)	$	—	$	10,005
Agency mortgage-backed securities		9,530		—		(530)		—		9,000
Municipal bonds		50,567		—		(3,733)		—		46,834
SBA securities		23,039		69		(3)		—		23,105
Beneficial interests in FHLMC securitization		20,015		201		—		(11,226)		8,990
Corporate bonds		147,635		191		(6,327)		—		141,499
U.S. Treasury		897		—		(60)		—		837
Total	$	262,624	$	461	$	(11,589)	$	(11,226)	$	240,270
December 31, 2021:
Collateralized mortgage obligations	$	13,862	$	—	$	(37)	$	—	$	13,825
Agency mortgage-backed securities		928,546		6,563		(6,120)		—		928,989
Municipal bonds		52,052		94		—		—		52,146
SBA securities		27,970		2		—		—		27,972
Beneficial interests in FHLMC securitization		21,606		373		—		(10,399)		11,580
Corporate bonds		154,027		2,441		(92)		—		156,376
U.S. Treasury		499		—		(9)		—		490
Total	$	1,198,562	$	9,473	$	(6,258)	$	(10,399)	$	1,191,378

Summary of HTM Securities Portfolio

	Amortized		Gross Unrecognized				Allowance for		Estimated
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Fair Value
June 30, 2022:
Agency mortgage-backed securities	$	930,562	$	—	$	(70,926)	$	—	$	859,636
Total	$	930,562	$	—	$	(70,926)	$	—	$	859,636

Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time

The tables below indicate, as of June 30, 2022 and December 31, 2021, the gross unrealized losses and fair values of our investments AFS, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Securities with Unrealized Loss at June 30, 2022
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Collateralized mortgage obligations	$	9,979	$	(936)	$	—	$	—	$	9,979	$	(936)
Agency mortgage-backed securities		9,000		(530)		—		—		9,000		(530)
Municipal bonds		46,835		(3,733)		—		—		46,835		(3,733)
SBA securities		2,016		(3)		—		—		2,016		(3)
Corporate bonds		126,308		(6,327)		—		—		126,308		(6,327)
U.S. Treasury		838		(60)		—		—		838		(60)
Total temporarily impaired securities	$	194,976	$	(11,589)	$	—	$	—	$	194,976	$	(11,589)

	Securities with Unrealized Loss at December 31, 2021
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Collateralized mortgage obligations	$	12,971	$	(37)	$	—	$	—	$	12,971	$	(37)
Agency mortgage-backed securities		434,973		(5,051)		36,136		(1,069)		471,109		(6,120)
Corporate bonds		47,880		(92)		—		—		47,880		(92)
U.S. Treasury		491		(9)		—		—		491		(9)
Total temporarily impaired securities	$	496,315	$	(5,189)	$	36,136	$	(1,069)	$	532,451	$	(6,258)

The table below indicates, as of June 30, 2022, the gross unrealized losses and fair values of our investments HTM, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Securities with Unrecognized Loss at June 30, 2022
	Less than 12 months				12 months or more				Total
	Fair		Unrecognized		Fair		Unrecognized		Fair		Unrecognized
(dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Agency mortgage-backed securities	$	827,772	$	(68,544)	$	31,864	$	(2,382)	$	859,636	$	(70,926)
Total temporarily impaired securities	$	827,772	$	(68,544)	$	31,864	$	(2,382)	$	859,636	$	(70,926)

Summary of Allowance For Credit Losses - Securities AFS

(dollars in thousands)		Total
Three Months Ended June 30, 2022:
Beginning balance	$	10,743
Provision for credit losses		483
Balance: June 30, 2022	$	11,226
Six Months Ended June 30, 2022:
Beginning balance	$	10,399
Provision for credit losses		827
Balance: June 30, 2022	$	11,226
Year Ended December 31, 2021:
Beginning balance	$	7,245
Provision for credit losses		3,154
Balance: December 31, 2021	$	10,399

Scheduled Maturities of Securities AFS Other than Mortgage Backed Securities and the Related Weighted Average Yield

The scheduled maturities of securities AFS and the related weighted average yields were as follows for the periods indicated:

	Less than			1 Through			5 Through			After
(dollars in thousands)	1 Year			5 years			10 Years			10 Years			Total
June 30, 2022
Amortized Cost:
Collateralized mortgage obligations	$	—		$	—		$	740		$	10,201		$	10,941
Agency mortgage-backed securities		—			4,120			3,714			1,696			9,530
Municipal bonds		304			5,176			35,374			9,713			50,567
SBA securities		55			1,836			1,507			19,641			23,039
Beneficial interests in FHLMC securitization		—			10,546			—			9,469			20,015
Corporate bonds		6,018			10,412			125,671			5,534			147,635
U.S. Treasury		—			897			—			—			897
Total	$	6,377		$	32,987		$	167,006		$	56,254		$	262,624
Weighted average yield		1.97	%		1.98	%		3.48	%		2.00	%		2.94	%
Estimated Fair Value:
Collateralized mortgage obligations	$	—		$	—		$	687		$	9,318		$	10,005
Agency mortgage-backed securities		—			3,969			3,460			1,571			9,000
Municipal bonds		301			4,839			33,370			8,324			46,834
SBA securities		55			1,833			1,510			19,707			23,105
Beneficial interests in FHLMC securitization		—			10,546			—			9,670			20,216
Corporate bonds		5,985			9,877			120,654			4,983			141,499
U.S. Treasury		—			837			—			—			837
Total	$	6,341		$	31,901		$	159,681		$	53,573		$	251,496

	Less than			1 Through			5 Through			After
(dollars in thousands)	1 Year			5 years			10 Years			10 Years			Total
December 31, 2021
Amortized Cost:
Collateralized mortgage obligations	$	—		$	710		$	802		$	12,350		$	13,862
Agency mortgage-backed securities		—			4,990			24,568			898,988			928,546
Municipal bonds		—			1,625			38,853			11,574			52,052
SBA securities		70			1,613			2,952			23,335			27,970
Beneficial interests in FHLMC securitization		—			11,902			—			9,704			21,606
Corporate bonds		9,534			10,519			128,438			5,536			154,027
U.S. Treasury		—			499			—			—			499
Total	$	9,604		$	31,858		$	195,613		$	961,487		$	1,198,562
Weighted average yield		(2.28)	%		2.06	%		3.03	%		1.63	%		1.84	%
Estimated Fair Value:
Collateralized mortgage obligations	$	—		$	710		$	799		$	12,316		$	13,825
Agency mortgage-backed securities		—			5,082			25,056			898,851			928,989
Municipal bonds		—			1,704			38,865			11,577			52,146
SBA securities		70			1,613			2,953			23,336			27,972
Beneficial interests in FHLMC securitization		—			11,902			—			10,077			21,979
Corporate bonds		9,529			10,499			130,754			5,594			156,376
U.S. Treasury		—			490			—			—			490
Total	$	9,599		$	32,000		$	198,427		$	961,751		$	1,201,777

Schedule of maturities of securities HTM and the related weighted average yields

	Less than			1 Through			5 Through			After
(dollars in thousands)	1 Year			5 years			10 Years			10 Years			Total
June 30, 2022
Amortized Cost:
Agency mortgage-backed securities	$	—		$	131		$	19,227		$	911,204		$	930,562
Total	$	—		$	131		$	19,227		$	911,204		$	930,562
Weighted average yield		—	%		0.28	%		1.05	%		1.72	%		1.70	%
Estimated Fair Value:
Agency mortgage-backed securities	$	—		$	123		$	17,937		$	841,576		$	859,636
Total	$	—		$	123		$	17,937		$	841,576		$	859,636