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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Summary of Carrying Amounts of Securities and Their Approximate Fair Values

Investment securities have been classified in the accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows:

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored
   Enterprise obligations

 

$

22,996

 

 

$

246

 

 

$

(231

)

 

$

23,011

 

 

$

22,995

 

 

$

641

 

 

$

(19

)

 

$

23,617

 

Mortgage-backed securities

 

 

176,531

 

 

 

959

 

 

 

(4,462

)

 

 

173,028

 

 

 

208,515

 

 

 

2,502

 

 

 

(387

)

 

 

210,630

 

Corporate debt securities

 

 

1,743

 

 

 

24

 

 

 

(3

)

 

 

1,764

 

 

 

2,742

 

 

 

41

 

 

 

—

 

 

 

2,783

 

Total available for sale securities

 

$

201,270

 

 

$

1,229

 

 

$

(4,696

)

 

$

197,803

 

 

$

234,252

 

 

$

3,184

 

 

$

(406

)

 

$

237,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

864,983

 

 

$

3,981

 

 

$

(13,258

)

 

$

855,706

 

 

$

137,435

 

 

$

6,784

 

 

$

(97

)

 

$

144,122

 

Corporate debt securities

 

 

6,997

 

 

 

26

 

 

 

—

 

 

 

7,023

 

 

 

6,989

 

 

 

197

 

 

 

—

 

 

 

7,186

 

Municipal securities

 

 

105,081

 

 

 

3,798

 

 

 

(516

)

 

 

108,363

 

 

 

103,248

 

 

 

5,643

 

 

 

(60

)

 

 

108,831

 

Total held to maturity securities

 

$

977,061

 

 

$

7,805

 

 

$

(13,774

)

 

$

971,092

 

 

$

247,672

 

 

$

12,624

 

 

$

(157

)

 

$

260,139

 

Total

 

$

1,178,331

 

 

$

9,034

 

 

$

(18,470

)

 

$

1,168,895

 

 

$

481,924

 

 

$

15,808

 

 

$

(563

)

 

$

497,169

 
Schedule of Amortized Cost and Fair Value of Investment Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity

The amortized cost and fair value of investment securities, aggregated by contractual maturity, are shown below. Municipal securities are aggregated by the earliest of call date or contractual maturity. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

Within One Year

 

 

After One, But
Within Five Years

 

 

After Five, But
Within Ten Years

 

 

After Ten Years

 

 

Total

 

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

At December 31, 2021

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government
   Sponsored Enterprise
   obligations

 

$

—

 

 

$

—

 

 

$

9,996

 

 

$

9,765

 

 

$

5,000

 

 

$

5,048

 

 

$

8,000

 

 

$

8,198

 

 

$

22,996

 

 

$

23,011

 

Mortgage-backed
   securities

 

 

—

 

 

 

—

 

 

 

8,324

 

 

 

8,497

 

 

 

50,031

 

 

 

49,382

 

 

 

118,176

 

 

 

115,149

 

 

 

176,531

 

 

 

173,028

 

Corporate debt securities

 

 

763

 

 

 

759

 

 

 

980

 

 

 

1,005

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,743

 

 

 

1,764

 

Total available for
   sale securities

 

$

763

 

 

$

759

 

 

$

19,300

 

 

$

19,267

 

 

$

55,031

 

 

$

54,430

 

 

$

126,176

 

 

$

123,347

 

 

$

201,270

 

 

$

197,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed
   securities

 

$

—

 

 

$

—

 

 

$

41

 

 

$

41

 

 

$

63,165

 

 

$

65,241

 

 

$

801,777

 

 

$

790,424

 

 

$

864,983

 

 

$

855,706

 

Corporate debt securities

 

 

6,997

 

 

 

7,023

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,997

 

 

 

7,023

 

Municipal securities

 

 

3,812

 

 

 

3,864

 

 

 

18,922

 

 

 

19,532

 

 

 

37,772

 

 

 

39,683

 

 

 

44,575

 

 

 

45,284

 

 

 

105,081

 

 

 

108,363

 

Total held to maturity
   securities

 

$

10,809

 

 

$

10,887

 

 

$

18,963

 

 

$

19,573

 

 

$

100,937

 

 

$

104,924

 

 

$

846,352

 

 

$

835,708

 

 

$

977,061

 

 

$

971,092

 

Total

 

$

11,572

 

 

$

11,646

 

 

$

38,263

 

 

$

38,840

 

 

$

155,968

 

 

$

159,354

 

 

$

972,528

 

 

$

959,055

 

 

$

1,178,331

 

 

$

1,168,895

 
Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Investment Securities have been in Continuous Loss Position

The following tables show the Company’s investment securities with gross unrealized losses, for which an allowance for credit losses has not been recorded at December 31, 2021 or at December 31, 2020, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position:

 

 

 

December 31, 2021

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored Enterprise
   obligations

 

$

4,881

 

 

$

(115

)

 

$

4,884

 

 

$

(116

)

 

$

9,765

 

 

$

(231

)

Mortgage-backed securities

 

 

74,724

 

 

 

(2,253

)

 

 

47,871

 

 

 

(2,209

)

 

 

122,595

 

 

 

(4,462

)

Corporate debt securities

 

 

760

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

760

 

 

 

(3

)

Total available for sale securities

 

$

80,365

 

 

$

(2,371

)

 

$

52,755

 

 

$

(2,325

)

 

$

133,120

 

 

$

(4,696

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

740,966

 

 

$

(12,509

)

 

$

15,345

 

 

$

(749

)

 

$

756,311

 

 

$

(13,258

)

Municipal securities

 

 

12,607

 

 

 

(194

)

 

 

5,716

 

 

 

(322

)

 

 

18,323

 

 

 

(516

)

Total held to maturity securities

 

$

753,573

 

 

$

(12,703

)

 

$

21,061

 

 

$

(1,071

)

 

$

774,634

 

 

$

(13,774

)

Total

 

$

833,938

 

 

$

(15,074

)

 

$

73,816

 

 

$

(3,396

)

 

$

907,754

 

 

$

(18,470

)

 

 

 

 

December 31, 2020

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

 

(dollars in thousands)

 

Available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Sponsored Enterprise
   obligations

 

$

4,981

 

 

$

(19

)

 

$

—

 

 

$

—

 

 

$

4,981

 

 

$

(19

)

Mortgage-backed securities

 

 

91,094

 

 

 

(384

)

 

 

944

 

 

 

(3

)

 

 

92,038

 

 

 

(387

)

Total available for sale securities

 

$

96,075

 

 

$

(403

)

 

$

944

 

 

$

(3

)

 

$

97,019

 

 

$

(406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

16,340

 

 

$

(97

)

 

$

—

 

 

$

—

 

 

$

16,340

 

 

$

(97

)

Municipal securities

 

 

6,221

 

 

 

(60

)

 

 

—

 

 

 

—

 

 

 

6,221

 

 

 

(60

)

Total held to maturity securities

 

$

22,561

 

 

$

(157

)

 

$

—

 

 

$

—

 

 

$

22,561

 

 

$

(157

)

Total

 

$

118,636

 

 

$

(560

)

 

$

944

 

 

$

(3

)

 

$

119,580

 

 

$

(563

)
Summary of Gains (Losses) from Sale of Investment Securities

The following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales:

 

 

 

For the Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(dollars in thousands)

 

Amortized cost of securities sold

 

$

—

 

 

$

10,752

 

 

$

26,631

 

Gross gains realized on securities sold

 

 

—

 

 

 

111

 

 

 

—

 

Gross losses realized on securities sold

 

 

—

 

 

 

(42

)

 

 

(79

)

Net proceeds from securities sold

 

$

—

 

 

$

10,821

 

 

$

26,552

 
Summary of Credit Rating of Debt Securities Portfolio

The Company monitors the credit quality of certain debt securities through the use of credit rating among other factors on a quarterly basis. The following tables summarize the credit rating of the Company’s debt securities portfolio at December 31, 2021 and December 31, 2020.

 

 

 

December 31, 2021

 

 

 

Mortgage-backed Securities  (1)

 

 

Corporate Debt Securities

 

 

Municipal Securities

 

 

U.S. GSE Obligations

 

 

Total

 

 

 

(dollars in thousands)

 

Available for sale securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

 

$

173,028

 

 

$

759

 

 

$

—

 

 

$

23,011

 

 

$

196,798

 

BBB/BB/B

 

 

—

 

 

 

1,005

 

 

 

—

 

 

 

—

 

 

 

1,005

 

Total available for sale securities

 

$

173,028

 

 

$

1,764

 

 

$

—

 

 

$

23,011

 

 

$

197,803

 

Held to maturity securities, at amortized cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

 

$

864,983

 

 

$

6,997

 

 

$

105,081

 

 

$

—

 

 

$

977,061

 

Total held to maturity securities

 

$

864,983

 

 

$

6,997

 

 

$

105,081

 

 

$

—

 

 

$

977,061

 

 

 

 

December 31, 2020

 

 

 

Mortgage-backed Securities  (1)

 

 

Corporate Debt Securities

 

 

Municipal Securities

 

 

U.S. GSE Obligations

 

 

Total

 

 

 

(dollars in thousands)

 

Available for sale securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

 

$

210,630

 

 

$

1,779

 

 

$

—

 

 

$

23,617

 

 

$

236,026

 

BBB/BB/B

 

 

—

 

 

 

1,004

 

 

 

—

 

 

 

—

 

 

 

1,004

 

Total available for sale securities

 

$

210,630

 

 

$

2,783

 

 

$

—

 

 

$

23,617

 

 

$

237,030

 

Held to maturity securities, at amortized cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA/AA/A

 

$

137,435

 

 

$

6,989

 

 

$

102,973

 

 

$

—

 

 

$

247,397

 

BBB/BB/B

 

 

—

 

 

 

—

 

 

 

275

 

 

 

—

 

 

 

275

 

Total held to maturity securities

 

$

137,435

 

 

$

6,989

 

 

$

103,248

 

 

$

—

 

 

$

247,672

 

 

(1)
Includes Agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by GSEs and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or Standard & Poor's. Each security contains a guarantee by the issuing GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A.