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Debt Securities Available for Sale and Debt Securities Held to Maturity (Tables)
 9 Months Ended
Sep. 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.
 
September 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
$
2,154,055

 
$
51,784

 
$
14,830

 
$
2,191,009

Agency mortgage-backed securities
935,845

 
35,144

 
1,067

 
969,922

Agency collateralized mortgage obligations
2,812,087

 
54,656

 
238

 
2,866,505

States and political subdivisions
615

 
21

 
—

 
636

Total
$
5,902,602

 
$
141,605

 
$
16,135

 
$
6,028,072

Debt securities held to maturity:
 
 
 
 
 
 
 
U.S. Treasury and other U.S. government agencies
$
1,290,667

 
$
121,608

 
$
—

 
$
1,412,275

Collateralized mortgage obligations:


 


 


 


Agency
7,638,230

 
211,081

 
10,399

 
7,838,912

Non-agency
31,760

 
5,946

 
435

 
37,271

Asset-backed securities and other
48,747

 
1,268

 
4,679

 
45,336

States and political subdivisions (1)
434,632

 
14,936

 
4,167

 
445,401

Total
$
9,444,036

 
$
354,839

 
$
19,680

 
$
9,779,195

(1)
The Company recorded an allowance of $15 million at September 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 September 30, 2020 and December 31, 2019, for which an allowance for credit losses has not been recorded at September 30, 2020. This information is aggregated by investment category and the length of time the individual securities have been in an unrealized loss position.
 
September 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
$
5,226

 
$
67

 
$
351,472

 
$
14,763

 
$
356,698

 
$
14,830

Agency mortgage-backed securities
38,151

 
211

 
41,528

 
856

 
79,679

 
1,067

Agency collateralized mortgage obligations
115,423

 
63

 
176,202

 
175

 
291,625

 
238

Total
$
158,800

 
$
341

 
$
569,202

 
$
15,794

 
$
728,002

 
$
16,135

 
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 September 30, 2020
 
Allowance for debt securities held to maturity losses:
 
Balance at beginning of period
$
15,017

Provision for credit losses
88

Securities charged off
—

Recoveries
—

Balance at end of period
$
15,105

 
 
Nine Months Ended September 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
13,258

Securities charged off
—

Recoveries
—

Balance at end of period
$
15,105
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 September 30, 2020, aggregated by credit quality indicator.
 
 
September 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
 
$
1,290,667

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,290,667

Collateralized mortgage obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
7,638,230

 
—

 
—

 
—

 
—

 
—

 
7,638,230

Non-agency
 
310

 
8,223

 
10,950

 
5,670

 
2,741

 
3,866

 
31,760

Asset-backed securities and other
 
—

 
47,901

 
250

 
596

 
—

 
—

 
48,747

States and political subdivisions
 
—

 
257,076

 
177,556

 
—

 
—

 
—

 
434,632

 
 
$
8,929,207

 
$
313,200

 
$
188,756

 
$
6,266

 
$
2,741

 
$
3,866

 
$
9,444,036
Schedule of investments classified by contractual maturity date
The contractual maturities of the securities portfolios are presented in the following table.
September 30, 2020
 
Amortized Cost
 
Fair Value
 
 
(In Thousands)
Debt securities available for sale:
 
 
Maturing within one year
 
$
325,088

 
$
325,409

Maturing after one but within five years
 
1,400,509

 
1,449,556

Maturing after five but within ten years
 
6,417

 
6,514

Maturing after ten years
 
422,656

 
410,166

 
 
2,154,670

 
2,191,645

Mortgage-backed securities and collateralized mortgage obligations
 
3,747,932

 
3,836,427

Total
 
$
5,902,602

 
$
6,028,072

 
 
 
 
 
Debt securities held to maturity:
 
 
 
 
Maturing within one year
 
$
24,474

 
$
24,517

Maturing after one but within five years
 
1,419,845

 
1,541,388

Maturing after five but within ten years
 
177,387

 
185,275

Maturing after ten years
 
152,340

 
151,832

 
 
1,774,046

 
1,903,012

Collateralized mortgage obligations
 
7,669,990

 
7,876,183

Total
 
$
9,444,036

 
$
9,779,195
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 September 30,
 
Nine Months Ended September 30,
 
2020
 
2019
 
2020
 
2019
 
(In Thousands)
Gross gains
$
—

 
$
21,003

 
$
22,616

 
$
29,961

Gross losses
—

 
—

 
—

 
—

Net realized gains
$
—

 
$
21,003

 
$
22,616

 
$
29,961