Investment Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

A summary of the available-for-sale and held-to-maturity investment securities portfolios presenting carrying amounts and gross unrealized gains and losses as of December 31, 2023 and 2022 is as follows:


	December 31, 2023								December 31, 2022
(In thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value		Amortized Cost		Gross unrealized gains		Gross unrealized losses		Fair Value
Available-for-sale securities
U.S. Treasury	$	6,960	$	8	$	—	$	6,968	$	14,943	$	5	$	—	$	14,948
U.S. government agencies	50,000		—		(4,876)		45,124		80,000		36		(5,814)		74,222
Municipal	144,299		657		(3,998)		140,958		173,861		230		(5,436)		168,655
Corporate notes:
Financial issuers	83,996		—		(8,456)		75,540		93,994		—		(9,291)		84,703
Other	1,000		—		(9)		991		1,000		2		—		1,002
Mortgage-backed: (1)
Residential mortgage-backed securities	3,505,012		1,392		(446,784)		3,059,620		3,308,494		238		(488,795)		2,819,937
Commercial (multi-family) mortgage-baked securities	13,201		68		(289)		12,980		—		—		—		—
Collateralized mortgage obligations	175,346		1,400		(16,012)		160,734		97,342		—		(17,792)		79,550
Total available-for-sale securities	$	3,979,814	$	3,525	$	(480,424)	$	3,502,915	$	3,769,634	$	511	$	(527,128)	$	3,243,017
Held-to-maturity securities
U.S. government agencies	$	336,468	$	—	$	(67,058)	$	269,410	$	339,614	$	—	$	(75,293)	$	264,321
Municipal	172,933		565		(3,778)		169,720		179,027		477		(4,066)		175,438
Mortgage-backed: (1)
Residential mortgage-backed securities	3,042,828		1,922		(549,265)		2,495,485		2,900,031		—		(583,682)		2,316,349
Commercial (multi-family) mortgage-backed securities	6,415		—		(184)		6,231		—		—		—		—
Collateralized mortgage obligations	241,075		978		(21,502)		220,551		164,151		—		(23,322)		140,829
Corporate notes	57,544		7		(3,480)		54,071		58,232		—		(5,348)		52,884
Total held-to-maturity securities	$	3,857,263	$	3,472	$	(645,267)	$	3,215,468	$	3,641,055	$	477	$	(691,711)	$	2,949,821
Less: Allowance for credit losses	(347)								(488)
Held-to-maturity securities, net of allowance for credit losses	$	3,856,916							$	3,640,567
Equity securities with readily determinable fair value	$	143,312	$	3,500	$	(7,544)	$	139,268	$	115,552	$	2,935	$	(8,122)	$	110,365

(1)None of our mortgage-backed securities are subprime.

Equity securities without readily determinable fair values totaled $60.0 million as of December 31, 2023 and $43.8 million as of December 31, 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 in 2023 or 2022. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such equity securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows. During the years ended December 31, 2023 and December 31, 2022, the Company recorded $688,000 and $12.2 million, respectively, of impairment of equity securities without readily determinable fair values.

The following tables present the portion of the Company’s available-for-sale investment securities portfolios which had gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022, respectively:


As of December 31, 2023	Continuous unrealized losses existing for less than 12 months				Continuous unrealized losses existing for greater than 12 months				Total
(In thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Available-for-sale securities

U.S. government agencies	$	—	$	—	$	45,124	$	(4,876)	$	45,124	$	(4,876)
Municipal	36,519		(513)		58,216		(3,485)		94,735		(3,998)
Corporate notes:
Financial issuers	—		—		75,540		(8,456)		75,540		(8,456)
Other	991		(9)		—		—		991		(9)
Mortgage-backed: (1)
Residential mortgage-backed securities	333,879		(1,170)		2,374,724		(445,614)		2,708,603		(446,784)
Commercial (multi-family) mortgage backed securities	9,953		(289)		—		—		9,953		(289)
Collateralized mortgage obligations	—		—		75,101		(16,012)		75,101		(16,012)

Total available-for-sale securities	$	381,342	$	(1,981)	$	2,628,705	$	(478,443)	$	3,010,047	$	(480,424)

(1)None of our mortgage-backed securities are subprime.


As of December 31, 2022	Continuous unrealized losses existing for less than 12 months				Continuous unrealized losses existing for greater than 12 months				Total
(In thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Available-for-sale securities

U.S. government agencies	$	36,750	$	(3,250)	$	7,436	$	(2,564)	$	44,186	$	(5,814)
Municipal	88,433		(1,997)		41,642		(3,439)		130,075		(5,436)
Corporate notes:
Financial issuers	14,420		(580)		70,283		(8,711)		84,703		(9,291)
Other	—		—		—		—		—		—
Mortgage-backed: (1)
Mortgage-backed securities	1,185,885		(99,494)		1,578,200		(389,301)		2,764,085		(488,795)
Collateralized mortgage obligations	2,690		(190)		76,860		(17,602)		79,550		(17,792)

Total available-for-sale securities	$	1,328,178	$	(105,511)	$	1,774,421	$	(421,617)	$	3,102,599	$	(527,128)

(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.

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 December 31, 2023 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 at December 31, 2023 were primarily mortgage-backed securities with unrealized losses due to increased market rates during such period.

See Note (5) “Allowance for Credit Losses” for further discussion regarding any credit losses associated with held-to-maturity securities at December 31, 2023.

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:


	Years Ended December 31,
(In thousands)	2023		2022		2021
Realized gains on investment securities	$	1,136	$	461	$	1,252
Realized losses on investment securities	(71)		(22)		(173)
Net realized gains on investment securities	1,065		439		1,079

Unrealized gains on equity securities with readily determinable fair value	5,428		1,154		2,688
Unrealized losses on equity securities with readily determinable fair value	(4,280)		(9,862)		(2,411)
Net unrealized gains (losses) on equity securities with readily determinable fair value	1,148		(8,708)		277

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	(688)		(12,158)		(2,415)
Adjustment and impairment, net, of equity securities without readily determinable fair values	(688)		(12,158)		(2,415)

Gains (losses) on investment securities, net	$	1,525	$	(20,427)	$	(1,059)


Proceeds from sales of equity securities with readily determinable fair value	$	23,592	$	31,753	$	9,759
Proceeds from sales and capital distributions of equity securities without readily determinable fair value	67		1,330		2,685

Net gains/losses on investment securities resulted in income tax expense (benefit) of $403,000, $(5.4) million and $(282,000) in 2023, 2022 and 2021, respectively.

The amortized cost and fair value of investment securities as of December 31, 2023 and December 31, 2022, 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:


	December 31, 2023				December 31, 2022
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities
Due in one year or less	$	53,162	$	52,945	$	119,830	$	119,275
Due in one to five years	132,348		123,985		63,644		61,701
Due in five to ten years	82,040		76,869		115,734		105,076
Due after ten years	18,705		15,782		64,590		57,478
Mortgage-backed	3,693,559		3,233,334		3,405,836		2,899,487

Total available-for-sale securities	$	3,979,814	$	3,502,915	$	3,769,634	$	3,243,017
Held-to-maturity securities
Due in one year or less	$	5,169	$	5,142	$	1,340	$	1,332
Due in one to five years	109,602		105,835		94,705		89,093
Due in five to ten years	99,700		98,718		115,318		113,758
Due after ten years	352,474		283,506		365,510		288,460
Mortgage-backed	3,290,318		2,722,267		3,064,182		2,457,178
Total held-to-maturity securities	$	3,857,263	$	3,215,468	$	3,641,055	$	2,949,821
Less: Allowance for credit losses	(347)				(488)
Held-to-maturity securities, net of allowance for credit losses	$	3,856,916			$	3,640,567

At December 31, 2023 and December 31, 2022, securities having a carrying value of $6.9 billion and $2.8 billion, respectively, were pledged as collateral for public deposits, trust deposits, FHLB advances, securities sold under repurchase agreements and derivatives. At December 31, 2023, there were no securities of a single issuer, other than U.S. government-sponsored agency securities, which exceeded 10% of shareholders’ equity.