Marketable Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Securities

The following table shows the portfolio of marketable securities available-for-sale at March 31, 2020 (in thousands):



	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses		Fair value
Debt issued by government sponsored enterprises:
Due in less than one year	$	50,761	475	—		51,236
Due in one year through five years	25,227		284	—		25,511
Due in five years through ten years	3,411		114	(103	)	3,422

Municipal securities:
Due in less than one year	812		3	—		815
Due in one year through five years	2,897		68	—		2,965
Due in five years through ten years	8,903		178	—		9,081
Due after ten years	31,400		436	—		31,836

Residential mortgage-backed securities:
Fixed rate pass-through	130,729		4,453	(10	)	135,172
Variable rate pass-through	18,025		403	(8	)	18,420
Fixed rate agency CMOs	423,625		10,447	(60	)	434,012
Variable rate agency CMOs	53,913		62	(866	)	53,109
Total residential mortgage-backed securities	626,292		15,365	(944	)	640,713
Total marketable securities available-for-sale	$	749,703	16,923	(1,047	)	765,579

The following table shows the portfolio of marketable securities available-for-sale at December 31, 2019 (in thousands):



	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses		Fair value
Debt issued by the U.S. government and agencies:
Due in less than one year	$	14,951	40	—		14,991

Debt issued by government sponsored enterprises:
Due in less than one year	50,777		345	—		51,122
Due in one year through five years	50,229		—	(227	)	50,002
Due after ten years	3,716		53	(109	)	3,660

Municipal securities:
Due in less than one year	809		4	—		813
Due in one year through five years	2,891		79	—		2,970
Due in five years through ten years	10,155		148	—		10,303
Due after ten years	11,695		267	—		11,962

Corporate debt issues:
Due in five years through ten years	919		—	—		919

Residential mortgage-backed securities:
Fixed rate pass-through	142,421		1,941	(881	)	143,481
Variable rate pass-through	18,933		749	(4	)	19,678
Fixed rate agency CMOs	452,256		3,518	(1,606	)	454,168
Variable rate agency CMOs	55,743		207	(118	)	55,832
Total residential mortgage-backed securities	669,353		6,415	(2,609	)	673,159
Total marketable securities available-for-sale	$	815,495	7,351	(2,945	)	819,901

The following table shows the portfolio of marketable securities held-to-maturity at March 31, 2020 (in thousands):



	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses		Fair value
Residential mortgage-backed securities:
Fixed rate pass-through	$	2,096	113	—		2,209
Variable rate pass-through	1,119		15	—		1,134
Fixed rate agency CMOs	13,389		639	—		14,028
Variable rate agency CMOs	604		1	(8	)	597
Total residential mortgage-backed securities	17,208		768	(8	)	17,968
Total marketable securities held-to-maturity	$	17,208	768	(8	)	17,968

The following table shows the portfolio of marketable securities held-to-maturity at December 31, 2019 (in thousands):



	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Residential mortgage-backed securities:
Fixed rate pass-through	$	2,197	83	—	2,280
Variable rate pass-through	1,210		28	—	1,238
Fixed rate agency CMOs	14,016		68	—	14,084
Variable rate agency CMOs	613		8	—	621
Total residential mortgage-backed securities	18,036		187	—	18,223
Total marketable securities held-to-maturity	$	18,036	187	—	18,223

The following table shows the contractual maturity of our marketable securities held-to-maturity at March 31, 2020 (in thousands):



	Amortized cost		Fair value
Residential mortgage-backed securities:
Due in less than one year	$	1	1
Due in one year through five years	599		626
Due after five years through ten years	929		981
Due after ten years	15,679		16,360
Total residential mortgage-backed securities	17,208		17,968
Total marketable securities held-to-maturity	$	17,208	17,968

The following table shows the fair value of and gross unrealized losses on available-for-sale marketable securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2020 (in thousands):



	Less than 12 months				12 months or more			Total
	Fair value		Unrealized loss		Fair value	Unrealized loss		Fair value	Unrealized loss
U.S. government sponsored enterprises	$	—	—		2,320	(103	)	2,320	(103	)
Residential mortgage-backed securities - agency	46,190		(847	)	9,167	(97	)	55,357	(944	)
Total temporarily impaired securities	$	46,190	(847	)	11,487	(200	)	57,677	(1,047	)

The following table shows the fair value of and gross unrealized losses on marketable securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2019 (in thousands):



	Less than 12 months				12 months or more			Total
	Fair value		Unrealized loss		Fair value	Unrealized loss		Fair value	Unrealized loss
U.S. government sponsored enterprises	$	—	—		52,620	(336	)	52,620	(336	)
Residential mortgage-backed securities - agency	173,112		(858	)	109,324	(1,751	)	282,436	(2,609	)
Total temporarily impaired securities	$	173,112	(858	)	161,944	(2,087	)	335,056	(2,945	)

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position as of March 31, 2020, which comprised of 83 individual securities, represents a credit loss impairment. All of these securities were issued by U.S. government agencies or U.S. government-sponsored agencies. There securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The unrealized losses were primarily attributable to changes in the interest rate environment and not due to the credit quality of these investment securities. The Company doe not have the intent to sell these investment securities and it is likely that we will not be required to sell these securities before their anticipated recovery, which may be at maturity.

All of the Company's held-to-maturity debt securities are issued by by U.S. government agencies or U.S. government-sponsored agencies. There securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2020.

The following table presents the credit quality of our held-to-maturity securities, based on latest information available as of March 31, 2020. The credit ratings are sourced from nationally recognized rating agencies, which include Moody's and S&P, or when credit ratings cannot be sourced from the agencies, they are presented based on asset type. All of our held-to-maturity securities were current in their payment of principal and interest as of March 31, 2020.

Held-to-maturity securities:

Residential mortgage-backed securities

Total marketable securities held-to-maturity