XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Investment Securities
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following tables are a summary of the investment securities portfolios as of the dates shown:
September 30, 2022
(In thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Available-for-sale securities
U.S. Treasury$— $— $— $— 
U.S. government agencies50,000 — (5,987)44,013 
Municipal181,612 127 (7,738)174,001 
Corporate notes:
Financial issuers93,994 — (7,951)86,043 
Other1,000 — (10)990 
Mortgage-backed: (1)
Mortgage-backed securities3,052,778 — (513,978)2,538,800 
Collateralized mortgage obligations98,922 — (19,116)79,806 
Total available-for-sale securities$3,478,306 $127 $(554,780)$2,923,653 
Held-to-maturity securities
U.S. government agencies$314,618 $— $(72,723)$241,895 
Municipal180,304 203 (7,791)172,716 
Mortgage-backed: (1)
Mortgage-backed securities2,679,862 — (600,335)2,079,527 
Collateralized mortgage obligations166,965 — (24,475)142,490 
Corporate notes48,403 — (5,705)42,698 
Total held-to-maturity securities$3,390,152 $203 $(711,029)$2,679,326 
Less: Allowance for credit losses(310)
Held-to-maturity securities, net of allowance for credit losses$3,389,842 
Equity securities with readily determinable fair value $120,073 $2,233 $(8,294)$114,012 
(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.
December 31, 2021
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
(In thousands)
Available-for-sale securities
U.S. Treasury$— $— $— $— 
U.S. government agencies50,158 2,349 — 52,507 
Municipal161,618 4,193 (217)165,594 
Corporate notes:
Financial issuers96,878 418 (2,599)94,697 
Other1,000 7 — 1,007 
Mortgage-backed: (1)
Mortgage-backed securities1,901,005 32,830 (25,854)1,907,981 
Collateralized mortgage obligations105,710 297 — 106,007 
Total available-for-sale securities$2,316,369 $40,094 $(28,670)$2,327,793 
Held-to-maturity securities
U.S. government agencies$180,192 $201 $(3,314)$177,079 
Municipal187,486 9,544 (223)196,807 
Mortgage-backed: (1)
Mortgage-backed securities2,530,730 864 (47,622)2,483,972 
Collateralized mortgage obligations— — — — 
Corporate notes43,955 — (1,119)42,836 
Total held-to-maturity securities$2,942,363 $10,609 $(52,278)$2,900,694 
Less: Allowance for credit losses(78)
Held-to-maturity securities, net of allowance for credit losses$2,942,285 
Equity securities with readily determinable fair value$86,989 $5,354 $(1,832)$90,511 
(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.
September 30, 2021
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
(In thousands)
Available-for-sale securities
U.S. Treasury$6,000 $— $— $6,000 
U.S. government agencies50,163 3,112 — 53,275 
Municipal170,612 4,202 (214)174,600 
Corporate notes:
Financial issuers98,848 500 (1,241)98,107 
Other1,000 11 — 1,011 
Mortgage-backed: (1)
Mortgage-backed securities1,913,139 44,931 (25,434)1,932,636 
Collateralized mortgage obligations107,657 192 — 107,849 
Total available-for-sale securities$2,347,419 $52,948 $(26,889)$2,373,478 
Held-to-maturity securities
U.S. government agencies$176,143 $482 $(2,878)$173,747 
Municipal190,662 10,321 (334)200,649 
Mortgage-backed: (1)
Mortgage-backed securities2,318,309 1,924 (46,102)2,274,131 
Collateralized mortgage obligations— — — — 
Corporate Notes51,691 — (738)50,953 
Total held-to-maturity securities$2,736,805 $12,727 $(50,052)$2,699,480 
Less: Allowance for credit losses(83)
Held-to-maturity securities, net of allowance for credit losses$2,736,722 
Equity securities with readily determinable fair value$83,909 $5,678 $(1,394)$88,193 
(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

Equity securities without readily determinable fair values totaled $43.9 million as of September 30, 2022. Equity securities without readily determinable fair values are included as part of accrued interest receivable and other assets in the Company’s Consolidated Statements of Condition. The Company monitors its equity investments without readily determinable fair values to identify potential transactions that may indicate an observable price change in orderly transactions for the identical or a similar investment of the same issuer, requiring adjustment to its carrying amount. The Company recorded no upward and no downward adjustments related to such observable price changes for the three and nine months ended September 30, 2022. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows. The Company recorded $5,000 of impairment of equity securities without readily determinable fair values for the three months ended September 30, 2022. For the nine months ended September 30, 2022, the Company recorded $4.4 million of impairment of equity securities without readily determinable fair values.
The following table presents the portion of the Company’s available-for-sale investment securities portfolios that have gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022:
Continuous unrealized
losses existing for
less than 12 months		Continuous unrealized
losses existing for
greater than 12 months		Total
(In thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Available-for-sale securities
U.S. government agencies$44,013 $(5,987)$— $— $44,013 $(5,987)
Municipal128,642 (5,960)31,753 (1,778)160,395 (7,738)
Corporate notes:
Financial issuers20,621 (1,379)65,422 (6,572)86,043 (7,951)
Other990 (10)— — 990 (10)
Mortgage-backed:
Mortgage-backed securities1,847,405 (308,051)691,395 (205,927)2,538,800 (513,978)
Collateralized mortgage obligations79,806 (19,116)— — 79,806 (19,116)
Total available-for-sale securities$2,121,477 $(340,503)$788,570 $(214,277)$2,910,047 $(554,780)

The Company conducts a regular assessment of its investment securities to determine whether securities are experiencing credit losses. Factors for consideration include the nature of the securities, credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period.

The Company does not consider available-for-sale securities with unrealized losses at September 30, 2022 to be experiencing credit losses and recognized no resulting allowance for credit losses for such individually assessed credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Available-for-sale securities with continuous unrealized losses existing for more than twelve months were primarily mortgage-backed securities with unrealized losses due to increased market rates during such period.

See Note 7 - Allowance for Credit Losses for further discussion regarding any credit losses associated with held-to-maturity securities at September 30, 2022.
The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:
Three months ended September 30,Nine months ended September 30,
(In thousands)2022202120222021
Realized gains on investment securities$15 $355 $280 $1,184 
Realized losses on investment securities(4)(5)(18)(40)
Net realized gains on investment securities11 350 262 1,144 
Unrealized gains on equity securities with readily determinable fair value45 1 227 2,627 
Unrealized losses on equity securities with readily determinable fair value(3,154)(634)(9,809)(1,585)
Net unrealized (losses) gains on equity securities with readily determinable fair value(3,109)(633)(9,582)1,042 
Upward adjustments of equity securities without readily determinable fair values— — — — 
Downward adjustments of equity securities without readily determinable fair values— — — — 
Impairment of equity securities without readily determinable fair values(5)(2,148)(4,362)(2,178)
Adjustment and impairment, net, of equity securities without readily determinable fair values(5)(2,148)(4,362)(2,178)
(Losses) gains on investment securities, net$(3,103)$(2,431)$(13,682)$8 
Proceeds from sales of available-for-sale securities(1)
$— $189,851 $— $192,227 
Proceeds from sales of equity securities with readily determinable fair value3,000 3,500 21,753 9,759 
Proceeds from sales and capital distributions of equity securities without readily determinable fair value703 1,330 1,232 2,467 
(1)Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party.
The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2022, December 31, 2021 and September 30, 2021, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:
September 30, 2022December 31, 2021September 30, 2021
(In thousands)Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Available-for-sale securities
Due in one year or less$55,249 $54,846 $49,714 $49,822 $45,459 $45,549 
Due in one to five years86,555 83,641 72,382 73,850 92,457 94,134 
Due in five to ten years115,949 105,921 118,358 117,573 121,099 121,650 
Due after ten years68,853 60,639 69,200 72,560 67,608 71,660 
Mortgage-backed3,151,700 2,618,606 2,006,715 2,013,988 2,020,796 2,040,485 
Total available-for-sale securities$3,478,306 $2,923,653 $2,316,369 $2,327,793 $2,347,419 $2,373,478 
Held-to-maturity securities
Due in one year or less$1,173 $1,166 $2,976 $2,992 $5,466 $5,493 
Due in one to five years85,423 78,995 79,422 79,705 75,724 76,173 
Due in five to ten years108,703 104,829 106,713 112,667 150,908 157,282 
Due after ten years348,026 272,319 222,522 221,358 186,398 186,401 
Mortgage-backed2,846,827 2,222,017 2,530,730 2,483,972 2,318,309 2,274,131 
Total held-to-maturity securities$3,390,152 $2,679,326 $2,942,363 $2,900,694 $2,736,805 $2,699,480 
Less: Allowance for credit losses(310)(78)(83)
Held-to-maturity securities, net of allowance for credit losses$3,389,842 $2,942,285 $2,736,722 

Securities having a carrying value of $2.5 billion at September 30, 2022 as well as securities having a carrying value of $2.6 billion and $2.5 billion at December 31, 2021 and September 30, 2021, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank (“FHLB”) advances and available lines of credit, securities sold under repurchase agreements and derivatives. At September 30, 2022, there were no securities of a single issuer, other than U.S. government-sponsored agency securities, which exceeded 10% of shareholders’ equity.