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Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
NOTE 4 – Securities
The amortized cost, gross unrealized gains and losses, and fair value of People’s United’s debt securities available-for-sale and debt securities held-to-maturity are as follows:
As of December 31, 2019 (in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Debt securities available-for-sale:
U.S. Treasury and agency$689.5  $0.4  $(2.8) $687.1  
GSE mortgage-backed and CMO securities2,856.3  25.0  (4.1) 2,877.2  
Total debt securities available-for-sale$3,545.8  $25.4  $(6.9) $3,564.3  
Debt securities held-to-maturity:
State and municipal$2,503.9  $142.0  $(0.4) $2,645.5  
GSE mortgage-backed securities1,271.4  8.0  (0.3) 1,279.1  
Corporate92.4  1.5  —  93.9  
Other1.5  —  —  1.5  
Total debt securities held-to-maturity$3,869.2  $151.5  $(0.7) $4,020.0  

As of December 31, 2018 (in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Debt securities available-for-sale:
U.S. Treasury and agency$699.0  $0.1  $(21.1) $678.0  
GSE mortgage-backed securities2,486.6  4.6  (48.2) 2,443.0  
Total debt securities available-for-sale$3,185.6  $4.7  $(69.3) $3,121.0  
Debt securities held-to-maturity:
State and municipal$2,352.4  $35.4  $(18.4) $2,369.4  
GSE mortgage-backed securities1,367.5  —  (33.2) 1,334.3  
Corporate70.9  0.5  (0.7) 70.7  
Other1.5  —  —  1.5  
Total debt securities held-to-maturity$3,792.3  $35.9  $(52.3) $3,775.9  
At December 31, 2019 and 2018, debt securities available-for-sale with fair values of $2.43 billion and $2.20 billion, respectively, and debt securities held-to-maturity with an amortized cost basis of $1.47 billion and $1.49 billion, respectively, were pledged as collateral for public deposits and for other purposes.
The following table is a summary of the amortized cost, fair value and fully taxable equivalent (“FTE”) yield of debt securities as of December 31, 2019, based on remaining period to contractual maturity. Information for GSE mortgage-backed and CMO securities is based on the final contractual maturity dates without considering repayments and prepayments.
Available-for-SaleHeld-to-Maturity
(dollars in millions)Amortized
Cost		Fair
Value		FTE
Yield		Amortized
Cost		Fair
Value		FTE
Yield
U.S. Treasury and agency:
Within 1 year$158.4  $158.4  1.84 %$—  $—  — %
After 1 but within 5 years531.1  528.7  1.43  —  —  —  
Total689.5  687.1  1.53  —  —  —  
GSE mortgage-backed and CMO
securities:
Within 1 year—  —  —  2.7  2.7  2.04  
After 1 but within 5 years84.9  86.9  3.17  861.0  866.6  2.43  
After 5 but within 10 years855.1  867.7  2.67  120.2  121.3  2.52  
After 10 years1,916.3  1,922.6  2.35  287.5  288.5  2.17  
Total2,856.3  2,877.2  2.47  1,271.4  1,279.1  2.38  
State and municipal:
Within 1 year—  —  —  10.3  10.4  2.61  
After 1 but within 5 years—  —  —  235.4  245.3  2.78  
After 5 but within 10 years—  —  —  418.8  444.1  3.47  
After 10 years—  —  —  1,839.4  1,945.7  3.81  
Total—  —  —  2,503.9  2,645.5  3.65  
Corporate:
Within 1 year—  —  —  5.0  5.0  3.50  
After 1 but within 5 years—  —  —  1.0  1.0  2.67  
After 5 but within 10 years—  —  —  86.4  87.9  4.52  
Total—  —  —  92.4  93.9  4.45  
Other:
Within 1 year—  —  —  1.5  1.5  2.46  
Total—  —  —  1.5  1.5  2.46  
Total:
Within 1 year158.4  158.4  1.84  19.5  19.6  2.74  
After 1 but within 5 years616.0  615.6  1.67  1,097.4  1,112.9  2.51  
After 5 but within 10 years855.1  867.7  2.67  625.4  653.3  3.43  
After 10 years1,916.3  1,922.6  2.35  2,126.9  2,234.2  3.59  
Total$3,545.8  $3,564.3  2.29 %$3,869.2  $4,020.0  3.25 %
The following tables summarize those debt securities with unrealized losses, segregated by the length of time the securities have been in a continuous unrealized loss position at the respective dates. Certain unrealized losses totaled less than $0.1 million.
Continuous Unrealized Loss Position
Less Than 12 Months12 Months Or LongerTotal
As of December 31, 2019 (in millions)_Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Debt securities available-for-sale:
GSE mortgage-backed and CMO
securities		$565.4  $(3.1) $509.3  $(1.0) $1,074.7  $(4.1) 
U.S. Treasury and agency181.0  (0.4) 362.4  (2.4) 543.4  (2.8) 
Total debt securities available-for-sale$746.4  $(3.5) $871.7  $(3.4) $1,618.1  $(6.9) 
Debt securities held-to-maturity:
GSE mortgage-backed securities$100.9  $(0.3) $9.1  $—  $110.0  $(0.3) 
State and municipal33.0  (0.2) 11.4  (0.2) 44.4  (0.4) 
Corporate3.5  —  8.6  —  12.1  —  
Total debt securities held-to-maturity$137.4  $(0.5) $29.1  $(0.2) $166.5  $(0.7) 

Continuous Unrealized Loss Position
Less Than 12 Months12 Months Or LongerTotal
As of December 31, 2018 (in millions)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Debt securities available-for-sale:
GSE mortgage-backed securities$132.4  $(0.5) $1,656.3  $(47.7) $1,788.7  $(48.2) 
U.S. Treasury and agency—  —  656.2  (21.1) 656.2  (21.1) 
Total debt securities available-for-sale$132.4  $(0.5) $2,312.5  $(68.8) $2,444.9  $(69.3) 
Debt securities held-to-maturity:
GSE mortgage-backed securities$—  $—  $1,334.3  $(33.2) $1,334.3  $(33.2) 
State and municipal113.4  (0.7) 697.6  (17.7) 811.0  (18.4) 
Corporate31.2  (0.6) 2.7  (0.1) 33.9  (0.7) 
Total debt securities held-to-maturity$144.6  $(1.3) $2,034.6  $(51.0) $2,179.2  $(52.3) 
At December 31, 2019, approximately 8% of the 2,242 debt securities owned by the Company, consisting of 101 debt securities classified as available-for-sale and 79 debt securities classified as held-to-maturity, had gross unrealized losses totaling $6.9 million and $0.7 million, respectively. With respect to those securities with unrealized losses, all of the GSE mortgage-backed and CMO securities had AAA credit ratings and an average contractual maturity of 18 years. The state and municipal securities had an average credit rating of AA and a weighted average maturity of nine years.
The cause of the gross unrealized losses with respect to all of the debt securities is directly related to changes in interest rates. At this time, management does not intend to sell such securities nor is it more likely than not, based upon available evidence, that management will be required to sell such securities prior to recovery. As such, management believes that all gross unrealized losses within the securities portfolio at December 31, 2019 are temporary impairments. No 
other-than-temporary impairment losses were recognized in the Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 2017.
People’s United uses the specific identification method to determine the cost of securities sold and records securities transactions on the trade date. People’s United sold (i) GSE mortgage-backed securities with an amortized cost of $235.5 million and recorded $10.0 million of gross realized losses in December 2018 and (ii) U.S. Treasury and CMO securities with a combined amortized cost of $291.3 million and recorded $10.0 million of gross realized losses in December 2017. Also in 2017, People’s United sold U.S. Treasury and CMO securities with a combined amortized cost of $486.9 million and recorded $15.7 million of gross realized losses. Including other minor gains and losses, net security gains (losses) totaled $0.2 million, $(9.8) million and $(25.4) million for the years ended December 31, 2019, 2018 and 2017, respectively.
The components of net security gains (losses) are summarized below.
Years ended December 31 (in millions)201920182017
Debt securities:
Gains$0.5  $0.1  $2.1  
Losses(0.4) (10.0) (27.5) 
Total debt securities0.1  (9.9) (25.4) 
Trading debt securities:
Gains0.1  0.1  —  
Losses—  —  —  
Total trading debt securities (1)0.1  0.1  —  
Net security gains (losses)$0.2  $(9.8) $(25.4) 
(1)Net gains and losses on trading debt securities totaled less than $0.1 million for the year ended December 31, 2017.
Effective January 1, 2018, People’s United adopted new accounting guidance that requires equity investments (other than equity method investments) to be measured at fair value with changes in fair value recognized in net income. At 
December 31, 2017, the Company’s securities portfolio included equity securities with an amortized cost of $9.6 million and a fair value of $8.7 million. Accordingly, upon adoption of this guidance, a cumulative-effect transition adjustment, representing the cumulative unrealized loss (net-of-tax) within AOCL was recorded, which served to decrease opening retained earnings by $0.6 million. For the years ended December 31, 2019 and 2018, People’s United recorded unrealized gains of $1.5 million and $0.6 million (included in other non-interest income in the Consolidated Statements of Income) relating to the change in fair value of its equity securities during the respective periods.
The Bank, as a member of the FHLB of Boston, is currently required to purchase and hold shares of capital stock in the FHLB of Boston (total cost of $136.6 million and $124.2 million at December 31, 2019 and 2018, respectively) in an amount equal to its membership base investment plus an activity based investment determined according to the Bank’s level of outstanding FHLB advances. As a result of prior acquisitions, the Bank acquired shares of capital stock in the FHLB of New York (total cost of $0.7 million at both December 31, 2019 and 2018). Based on the current capital adequacy and liquidity position of both the FHLB of Boston and the FHLB of New York, management believes there is no impairment in the Company’s investment at December 31, 2019 and the cost of the investment approximates fair value. Dividend income on FHLB capital stock totaled $7.0 million, $8.3 million and $6.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.
The Bank, as a member of the Federal Reserve Bank system, is currently required to purchase and hold shares of capital stock in the FRB-NY (total cost of $203.8 million and $178.5 million at December 31, 2019 and 2018, respectively) in an amount equal to 6% of its capital and surplus. Based on the current capital adequacy and liquidity position of the FRB-NY, management believes there is no impairment in the Company’s investment at December 31, 2019 and the cost of the investment approximates fair value. Dividend income on FRB-NY capital stock totaled $3.8 million, $5.1 million and $3.7 million for the years ended December 31, 2019, 2018 and 2017, respectively.