Securities

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

SECURITIES

The significant accounting policies related to securities are presented in Note 1, "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in the Company's 2019 10-K.

A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)


	As of June 30, 2020																	As of December 31, 2019
	Amortized Cost		Gross Unrealized								Fair Value		Amortized Cost		Gross Unrealized							Fair Value
					Gains			Losses									Gains		Losses
Securities Available-for-Sale
U.S. treasury securities	$	20,992	$	207		$	—		$	21,199	$	33,939	$	137	$	(1)				$	34,075
U.S. agency securities	640,253		4,166			(1,372)			643,047		249,502		758		(1,836)					248,424
Collateralized mortgage obligations ("CMOs")	1,624,609		49,059			(1,539)			1,672,129		1,547,805		14,893		(5,027)					1,557,671
Other mortgage-backed securities ("MBSs")	695,218		20,159			(237)			715,140		678,804		7,728		(1,848)					684,684
Municipal securities	229,414		10,410			(21)			239,803		228,632		5,898		(99)					234,431
Corporate debt securities	143,639		2,367			(1,462)			144,544		112,797		1,791		(487)					114,101

Total securities available-for-sale	$	3,354,125	$	86,368		$	(4,631)		$	3,435,862	$	2,851,479	$	31,205	$	(9,298)				$	2,873,386



Securities Held-to-Maturity
Municipal securities	$	19,848	$	48		$	—		$	19,896	$	21,997	$	—	$	(763)				$	21,234
Allowance for securities held-to- maturity⁽¹⁾	(220)								$	(220)
Total securities held-to-maturity, net	$	19,628	$	48		$	—		$	19,676
Equity Securities									$	43,954										$	42,136

⁽¹⁾The allowance for securities held-to-maturity was established upon adoption of CECL on January 1, 2020.

Accrued interest receivable on the securities portfolio totaled $13.6 million and $11.3 million as of June 30, 2020 and December 31, 2019, respectively, and is included in accrued interest receivable and other assets in the Consolidated Statements of Financial Condition.

Accounting guidance requires that the credit portion of a decline in fair value be recognized as an allowance for credit losses, established as a charge to expense through income. If a decline in fair value below carrying value is not attributable to credit deterioration and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the non-credit related portion of the decline in fair value in other comprehensive income (loss). In determining whether a decline in fair value of a security is credit related, the Company considers adverse conditions specific to the security, deterioration in economic conditions or market environment that may affect the value of the securities and related collateral, if any, events of default, changes to the credit rating of the security by a rating agency, and guarantees applicable to the security, among other factors.

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)


	As of June 30, 2020
	Available-for-Sale						Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	270,623	$	274,363	$	8,070	$	8,089
After one year to five years	185,159		187,718		5,452		5,465
After five years to ten years	578,516		586,512		3,315		3,323
After ten years	—		—		2,791		2,799
Securities that do not have a single contractual maturity date	2,319,827		2,387,269		—		—
Total	$	3,354,125	$	3,435,862	$	19,628	$	19,676

The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $1.5 billion as of June 30, 2020 and $1.3 billion as of December 31, 2019. No securities held-to-maturity were pledged as of June 30, 2020 or December 31, 2019.

There were realized losses of $1.0 million on securities available-for-sale for six months ended June 30, 2020 and no realized gains (losses) for the quarters ended June 30, 2020 and 2019 and six months ended June 30, 2019.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of June 30, 2020 and December 31, 2019.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)


		Less Than 12 Months						12 Months or Longer						Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of June 30, 2020
Securities Available-for-Sale

U.S. agency securities	23	$	73,659	$	1,149	$	13,927	$	223	$	87,586	$	1,372
CMOs	41	139,578		1,379		33,967		160		173,545		1,539
MBSs	14	64,778		223		3,805		14		68,583		237
Municipal securities	1	1,745		21		—		—		1,745		21

Corporate debt securities	11	39,949		154		38,199		1,308		78,148		1,462
Total	90	$	319,709	$	2,926	$	89,898	$	1,705	$	409,607	$	4,631


As of December 31, 2019
Securities Available-for-Sale
U.S. treasury securities	5	$	4,966	$	1	$	—	$	—	$	4,966	$	1
U.S. agency securities	52	97,729		1,200		49,387		636		147,116		1,836
CMOs	148	187,470		2,177		412,083		2,850		599,553		5,027
MBSs	59	66,340		996		121,861		852		188,201		1,848
Municipal securities	16	9,384		89		3,104		10		12,488		99
Corporate debt securities	6	9,719		281		21,955		206		31,674		487
Total	286	$	375,608	$	4,744	$	608,390	$	4,554	$	983,998	$	9,298

Substantially all of the Company's CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority are supported by third-party insurance or some other form of credit enhancement. Management does not believe any of these securities with unrealized losses as of June 30, 2020 represent impairment related to credit deterioration. These unrealized losses are attributed to changes in interest rates and temporary market movements. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.