Securities (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Available for Sale Securities from Amortized Cost to Fair Value

Amortized cost, allowance for credit losses and approximate fair values of debt securities available for sale are summarized as follows:

	September 30, 2023
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Estimated Fair Value
(in thousands)			Gains		Losses
U.S. government-sponsored enterprise debt securities (1) (2)	$	473,047	$	26	$	(58,438)	$	—	$	414,635
Corporate debt securities (2)	285,370		—		(32,792)		—		252,578
U.S. government agency debt securities (1) (2)	409,306		61		(53,380)		—		355,987
Collateralized loan obligations	5,000		5		—		—		5,005
Municipal bonds (1)	1,732		—		(92)		—		1,640
U.S. treasury securities	3,976		—		(24)		—		3,952
Total debt securities available for sale (3)	$	1,178,431	$	92	$	(144,726)	$	—	$	1,033,797

__________________

(1)Includes residential mortgage-backed securities. As of September 30, 2023, we had total residential-mortgage backed securities, included as part of total debt securities available for sale, with amortized cost of $769.4 million and fair value of $668.7 million.

(2)Includes commercial mortgage-backed securities. As of September 30, 2023, we had total commercial mortgage-backed securities, included as part of total debt securities available for sale, with amortized cost of $101.1 million and fair value of $88.8 million .

(3)Excludes accrued interest receivable of $6.3 million as of September 30, 2023, which is included as part of accrued interest receivable and other assets in the Company’s consolidated balance sheet. The Company did not record any write offs on accrued interest receivable related to these securities in the three and nine month periods ended September 30, 2023.

	December 31, 2022
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Estimated Fair Value
(in thousands)			Gains		Losses
U.S. government sponsored enterprise debt securities (1) (2)	$	480,359	$	981	$	(43,666)	$	—	$	437,674
Corporate debt securities (2)	306,898		1		(26,199)		—		280,700
U.S. government agency debt securities (1) (2)	373,593		42		(42,814)		—		330,821
U.S. treasury securities	1,997		—		(1)		—		1,996
Municipal bonds (1)	1,731		—		(75)		—		1,656
Collateralized loan obligations	5,000		—		(226)		—		4,774
Total debt securities available for sale (3)	$	1,169,578	$	1,024	$	(112,981)	$	—	$	1,057,621

__________________

(1)Includes residential mortgage-backed securities. As of December 31, 2022, we had total residential-mortgage backed securities, included as part of total debt securities available for sale, with amortized cost of $743.0 million and fair value of $666.5 million.

(2)Includes commercial mortgage-backed securities. As of December 31, 2022, we had total commercial mortgage-backed securities, included as part of total debt securities available for sale, with amortized cost of $91.0 million and fair value of $80.9 million.

(3)Excludes accrued interest receivable of $5.6 million as of December 31, 2022, which is included as part of accrued interest receivable and other assets in the Company’s consolidated balance sheet. The Company did not record any write offs on accrued interest receivable related to these securities in 2022.

Schedule of Realized Gain (Loss)

In the three and nine month periods ended September 30, 2023 and 2022, proceeds from sales, redemptions and calls, gross realized gains, and gross realized losses of debt securities available for sale were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Proceeds from sales, redemptions and calls of debt securities available for sale	$	—	$	12,154	$	1,240	$	26,312
Gross realized gains	$	—	$	22	$	—	$	71
Gross realized losses	—		—		(10,760)		—
Realized (loss) gain, net	$	—	$	22	$	(10,760)	$	71

Schedule of Available for Sale Securities with Unrealized Losses

The Company’s investment in debt securities available for sale with unrealized losses aggregated by the length of time that individual securities have been in a continuous unrealized loss position, are summarized below:

	September 30, 2023
	Less Than 12 Months					12 Months or More					Total
(in thousands, except securities count)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
U.S. government-sponsored enterprise debt securities	52	$	79,491	$	(3,063)	335	$	333,171	$	(55,375)	$	412,662	$	(58,438)
Corporate debt securities	6	13,242		(673)		55	239,336		(32,119)		252,578		(32,792)
U.S. government agency debt securities	30	43,592		(941)		167	294,482		(52,439)		338,074		(53,380)
Municipal bonds	—	—		—		3	1,640		(92)		1,640		(92)
U.S. treasury securities	2	3,952		(24)		—	—		—		3,952		(24)
	90	$	140,277	$	(4,701)	560	$	868,629	$	(140,025)	$	1,008,906	$	(144,726)

	December 31, 2022
	Less Than 12 Months					12 Months or More					Total
(in thousands, except securities count)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
U.S. government sponsored enterprise debt securities	250	$	292,595	$	(22,315)	108	$	96,986	$	(21,351)	$	389,581	$	(43,666)
Corporate debt securities	50	203,516		(13,374)		14	72,190		(12,825)		275,706		(26,199)
U.S. government agency debt securities	92	88,056		(4,976)		104	240,668		(37,838)		328,724		(42,814)
Municipal bonds	3	1,656		(75)		—	—		—		1,656		(75)
U.S. treasury securities	1	1,996		(1)		—	—		—		1,996		(1)
Collateralized Loan Obligations	1	4,774		(226)		—	—		—		4,774		(226)
	397	$	592,593	$	(40,967)	226	$	409,844	$	(72,014)	$	1,002,437	$	(112,981)

The Company’s investment in debt securities held to maturity with unrealized losses aggregated by length of time that individual securities have been in a continuous unrealized loss position, are summarized below:

	September 30, 2023
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
U.S. government agency debt securities	1	$	9,425	$	(500)	12	$	45,239	$	(9,838)	$	54,664	$	(10,338)
U.S. government sponsored enterprise debt securities	—	—		—		34	140,501		(24,751)		140,501		(24,751)
	1	$	9,425	$	(500)	46	$	185,740	$	(34,589)	$	195,165	$	(35,089)

	December 31, 2022
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Estimated Fair Value		Unrealized Loss		Number of Securities	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
U.S. government agency debt securities	—	$	—	$	—	12	$	50,755	$	(7,778)	$	50,755	$	(7,778)
U.S. government sponsored enterprise debt securities	31	142,033		(9,085)		3	14,689		(7,738)		156,722		(16,823)
	31	$	142,033	$	(9,085)	15	$	65,444	$	(15,516)	$	207,477	$	(24,601)

Schedule of Debt Securities, Held-to-Maturity

Amortized cost and approximate fair values of debt securities held to maturity are summarized as follows:

	September 30, 2023
	Amortized Cost		Gross Unrealized				Estimated Fair Value		Allowance for Credit Losses
(in thousands)			Gains		Losses
U.S. government agency debt securities (1)	$	65,002	$	—	$	(10,338)	$	54,664	$	—
U.S. government sponsored enterprise debt securities(1) (2)	165,252		—		(24,751)		140,501		—
Total debt securities held to maturity (3)	$	230,254	$	—	$	(35,089)	$	195,165	$	—

__________________

(1)Includes residential mortgage-backed securities. As of September 30, 2023, we had total residential mortgage-backed securities, included as part of total debt securities held to maturity, with amortized cost of $202.6 million and fair value of $170.6 million.

(2)Includes commercial mortgage-backed securities. As of September 30, 2023, we had total commercial mortgage-backed securities, included as part of total debt securities held to maturity, with amortized cost of $27.6 million and fair value of $24.5 million.

(3)Excludes accrued interest receivable of $0.7 million as of September 30, 2023, which is included as part of accrued interest receivable and other assets in the Company’s consolidated balance sheet. The Company did not record any write offs on accrued interest receivable related to these securities in the three and nine month periods ended September 30, 2023.

	December 31, 2022
	Amortized Cost		Gross Unrealized				Estimated Fair Value		Allowance for Credit Losses
(in thousands)			Gains		Losses
U.S. government agency debt securities (1)	$	68,556	$	109	$	(7,778)	$	60,887	$	—
U.S. government sponsored enterprise debt securities (1) (2)	173,545		—		(16,823)		156,722		—
Total debt securities held to maturity (3)	$	242,101	$	109	$	(24,601)	$	217,609	$	—

__________________

(1)Includes residential mortgage-backed securities. As of December 31, 2022, we had total residential mortgage-backed securities, included as part of total debt securities held to maturity, with amortized cost of $213.9 million and fair value of $191.4 million.

(2)Includes commercial mortgage-backed securities. As of December 31, 2022, includes total commercial mortgage-backed securities with amortized cost of $28.2 million and fair value of $26.2 million.

(3)Excludes accrued interest receivable of $0.8 million as of December 31, 2022, which is included as part of accrued interest receivable and other assets in the Company’s consolidated balance sheet. The Company did not record any write offs on accrued interest receivable related to these securities in 2022.

Schedule of Contractual Maturities of Securities

Contractual maturities of debt securities at September 30, 2023 are as follows:

	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within 1 year	$	2,705	$	2,682	$	—	$	—
After 1 year through 5 years	125,842		118,742		6,603		3,247
After 5 years through 10 years	228,020		199,276		14,634		13,358
After 10 years	821,864		713,097		209,017		178,560
	$	1,178,431	$	1,033,797	$	230,254	$	195,165