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Debt Securities Available for Sale and Debt Securities Held to Maturity (Tables)
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of adjusted cost and approximate fair value of investment securities available for sale and investments held to maturity
The following tables present the adjusted cost and approximate fair value of debt securities available for sale and debt securities held to maturity.
 
June 30, 2020
 
 
 
Gross Unrealized
 
 
 
Amortized Cost
 
Gains
 
Losses
 
Fair Value
 
(In Thousands)
Debt securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
2,176,754

 
$
56,764

 
$
15,780

 
$
2,217,738

Agency mortgage-backed securities
1,062,592

 
35,382

 
1,229

 
1,096,745

Agency collateralized mortgage obligations
2,391,399

 
59,210

 
614

 
2,449,995

States and political subdivisions
687

 
27

 
—

 
714

Total
$
5,631,432

 
$
151,383

 
$
17,623

 
$
5,765,192

Debt securities held to maturity:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
1,289,447

 
$
127,581

 
$
—

 
$
1,417,028

Collateralized mortgage obligations:


 


 


 


Agency
6,800,461

 
237,246

 
—

 
7,037,707

Non-agency
33,825

 
5,876

 
823

 
38,878

Asset-backed securities and other
48,903

 
1,321

 
5,465

 
44,759

States and political subdivisions (1)
535,818

 
15,574

 
11,466

 
539,926

Total
$
8,708,454

 
$
387,598

 
$
17,754

 
$
9,078,298

(1)
The Company recorded an allowance of $15 million, at June 30, 2020, related to state and political subdivisions, which is not included in the table above.
 
December 31, 2019
 
 
 
Gross Unrealized
 
 
 
Amortized Cost
 
Gains
 
Losses
 
Fair Value
 
(In Thousands)
Debt securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
3,145,331

 
$
16,888

 
$
34,694

 
$
3,127,525

Agency mortgage-backed securities
1,322,432

 
12,444

 
9,019

 
1,325,857

Agency collateralized mortgage obligations
2,783,003

 
7,744

 
9,622

 
2,781,125

States and political subdivisions
757

 
41

 
—

 
798

Total
$
7,251,523

 
$
37,117

 
$
53,335

 
$
7,235,305

Debt securities held to maturity:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
1,287,049

 
$
53,399

 
$
—

 
$
1,340,448

Collateralized mortgage obligations:


 


 


 


Agency
4,846,862

 
82,105

 
16,568

 
4,912,399

Non-agency
37,705

 
5,923

 
1,154

 
42,474

Asset-backed securities and other
52,355

 
1,266

 
2,017

 
51,604

States and political subdivisions
573,075

 
8,652

 
7,494

 
574,233

Total
$
6,797,046

 
$
151,345

 
$
27,233

 
$
6,921,158
Schedule of fair value and gross unrealized losses of available for sale and held to maturity securities that were in a loss position
The following tables disclose the fair value and the gross unrealized losses of the Company’s available for sale debt securities that were in a loss position at June 30, 2020 and December 31, 2019, for which an allowance for credit losses has not been recorded at June 30, 2020. This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position.
 
June 30, 2020
 
Securities in a loss position for less than 12 months
 
Securities in a loss position for 12 months or longer
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
(In Thousands)
Debt securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
255,351

 
$
72

 
$
364,068

 
$
15,708

 
$
619,419

 
$
15,780

Agency mortgage-backed securities
14,155

 
74

 
75,365

 
1,155

 
89,520

 
1,229

Agency collateralized mortgage obligations
10,090

 
39

 
305,362

 
575

 
315,452

 
614

Total
$
279,596

 
$
185

 
$
744,795

 
$
17,438

 
$
1,024,391

 
$
17,623

 
December 31, 2019
 
Securities in a loss position for less than 12 months
 
Securities in a loss position for 12 months or longer
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
(In Thousands)
Debt securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
59,496

 
$
208

 
$
819,360

 
$
34,486

 
$
878,856

 
$
34,694

Agency mortgage-backed securities
245,191

 
851

 
592,312

 
8,168

 
837,503

 
9,019

Agency collateralized mortgage obligations
880,485

 
4,768

 
579,679

 
4,854

 
1,460,164

 
9,622

Total
$
1,185,172

 
$
5,827

 
$
1,991,351

 
$
47,508

 
$
3,176,523

 
$
53,335
Schedule of allowance for credit losses for debt securities held to maturity
The following table presents the activity in the allowance for debt securities held to maturity losses.
 
Held to Maturity Debt Securities
 
(In Thousands)
Three months ended June 30, 2020
 
Allowance for debt securities held to maturity losses:
 
Balance at beginning of period
$
1,892

Impact of adopting ASC 326
—

Provision for credit losses
13,125

Securities charged off
—

Recoveries
—

Balance at end of period
$
15,017

 
 
Six Months Ended June 30, 2020
 
Allowance for debt securities held to maturity losses:
 
Balance at beginning of period
$
—

Impact of adopting ASC 326
1,847

Provision for credit losses
13,170

Securities charged off
—

Recoveries
—

Balance at end of period
$
15,017
Schedule of debt securities held to maturity through credit ratings
The Company monitors the credit quality of its HTM debt securities through credit ratings. The following table presents the amortized cost of HTM debt securities, as of June 30, 2020, aggregated by credit quality indicator.
 
 
June 30, 2020
 
 
 
 
Range of Ratings
 
 
 
 
AAA
 
AA+ / A -
 
BBB+ / B-
 
CCC+ / C
 
D
 
NR
 
Total
 
 
(In Thousands)
Debt securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
 
$
1,289,447

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,289,447

Collateralized mortgage obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
6,800,461

 
—

 
—

 
—

 
—

 
—

 
6,800,461

Non-agency
 
66

 
9,201

 
11,576

 
5,932

 
2,968

 
4,082

 
33,825

Asset-backed securities and other
 
—

 
47,904

 
293

 
706

 
—

 
—

 
48,903

States and political subdivisions
 
—

 
332,314

 
203,504

 
—

 
—

 
—

 
535,818

 
 
$
8,089,974

 
$
389,419

 
$
215,373

 
$
6,638

 
$
2,968

 
$
4,082

 
$
8,708,454
Schedule of investments classified by contractual maturity date
The contractual maturities of the securities portfolios are presented in the following table.
June 30, 2020
 
Amortized Cost
 
Fair Value
 
 
(In Thousands)
Debt securities available for sale:
 
 
Maturing within one year
 
$
325,189

 
$
325,784

Maturing after one but within five years
 
1,393,467

 
1,446,864

Maturing after five but within ten years
 
20,904

 
21,824

Maturing after ten years
 
437,881

 
423,980

 
 
2,177,441

 
2,218,452

Mortgage-backed securities and collateralized mortgage obligations
 
3,453,991

 
3,546,740

Total
 
$
5,631,432

 
$
5,765,192

 
 
 
 
 
Debt securities held to maturity:
 
 
 
 
Maturing within one year
 
$
25,500

 
$
25,497

Maturing after one but within five years
 
1,430,336

 
1,556,878

Maturing after five but within ten years
 
254,879

 
257,822

Maturing after ten years
 
163,453

 
161,516

 
 
1,874,168

 
2,001,713

Collateralized mortgage obligations
 
6,834,286

 
7,076,585

Total
 
$
8,708,454

 
$
9,078,298
Schedule of gross realized gains and losses
The gross realized gains and losses recognized on sales of debt securities available for sale are shown in the table below.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(In Thousands)
Gross gains
$
3,477

 
$
—

 
$
22,616

 
$
8,958

Gross losses
—

 
—

 
—

 
—

Net realized gains
$
3,477

 
$
—

 
$
22,616

 
$
8,958