Investment Securities

3 Months Ended

Mar. 31, 2021

Investments Debt And Equity Securities [Abstract]

4. Investment securities

The following tables present cost or amortized cost and fair values of investments as of March 31, 2021 and December 31, 2020, respectively:



March 31, 2021	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(in thousands)
Investment securities, held-to-maturity
U.S. government and government agencies and authorities	$	695	$	21	$	(13	)	$	703
Investment securities, available-for-sale
U.S. government and government agencies and authorities		36,282		23		(506	)		35,799
Total investment securities	$	36,977	$	44	$	(519	)	$	36,502



December 31, 2020	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(in thousands)
Investment securities, held-to-maturity
U.S. government and government agencies and authorities	$	694	$	43	$	—		$	737
Investment securities, available-for-sale
U.S. government and government agencies and authorities		53,953		51		(41	)		53,963
Total investment securities	$	54,647	$	94	$	(41	)	$	54,700

The following table presents the amortized cost and fair value of debt securities as of March 31, 2021 by contractual maturity:



March 31, 2021	Held-to-maturity				Available-for-sale
	Amortized cost		Fair value		Amortized Cost		Fair value
	(in thousands)
Due within one year	$	—	$	—	$	1,001	$	1,001
Due after one year through five years		319		327		27,222		26,990
Due after five years through ten years		265		253		8,059		7,808
Due after ten years		111		123		—		—
Total	$	695	$	703	$	36,282	$	35,799

For the three months ended March 31, 2021 and 2020, respectively, net investment income, which is included within other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss, was derived from the following sources:


Three Months Ended March 31,	2021		2020
	(in thousands)
Cash and cash equivalents	$	—	$	89
Short-term investments		37		452
Investment securities		47		360
Investment income, net	$	84	$	901

Gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows at March 31, 2021:


March 31, 2021	Less than 12 months				Greater than 12 months					Total
	Fair value		Unrealized loss		Fair value		Unrealized loss			Fair value		Unrealized loss
	(in thousands, except number of positions)
U.S. government and government agencies	$	—	$	—	$	30,516	$	(519	)	$	30,516	$	(519	)
Total	$	—	$	—	$	30,516	$	(519	)	$	30,516	$	(519	)
Number of positions				—			7					7

As of March 31, 2021, all securities were investment grade, with credit ratings of AA+ or higher by S&P. Unrealized losses on investment grade securities are principally related to changes in interest rates or changes in issuer or sector related credit spreads since the securities were acquired. The gross unrealized investment losses as of March 31, 2021, were deemed to be temporary, based on, among other things:

• The duration of time and the relative magnitude to which fair values of these securities have been below their amortized cost was not indicative of an other-than-temporary impairment ("OTTI") loss;

• The absence of compelling evidence that would cause the Corporation to call into question the financial condition or near-term prospects of the issuer of the applicable security; and

• The Corporation's ability and intent to hold the applicable security for a period of time sufficient to allow for any anticipated recovery.

The Corporation may ultimately record a realized loss after having originally concluded that the decline in value was temporary. Risks and uncertainties are inherent in the methodology the Corporation uses to assess other-than-temporary declines in value. Risks and uncertainties could include, but are not limited to, incorrect assumptions about financial condition, liquidity or future prospects, inadequacy of any underlying collateral, and unfavorable changes in economic conditions or social trends, interest rates or credit ratings.

Proceeds from sales and maturities of investment securities and related gross realized gains (losses), which are included within other income in the Condensed Consolidated Statements of Operations and Comprehensive Loss, were as follows for the three months ended March 31, 2021 and 2020, respectively:


Three Months Ended March 31,	2021			2020
	(in thousands)
Proceeds from sales of investment securities	$	17,267		$	69,977
Proceeds from maturities of investment securities		265			32,101
Gross realized gains		16			7
Gross realized losses		(77	)		—
Net realized (losses) gains	$	(61	)	$	7

As of March 31, 2021 and December 31, 2020, the Corporation had $7.5 million and $7.5 million, respectively, in deposits with various states and regulatory bodies that are included as part of the Corporation's investment balances.