XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Investment Securities Available for Sale
 3 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Investment Securities Available for Sale
Note 3 - Investment Securities Available for Sale
The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available for sale at September 30, 2020 and December 31, 2019 are summarized below.
September 30, 2020
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
U.S. Treasury securities$20,254 $— $— $20,254 
U.S. Government agency securities153,984 3,056 (426)156,614 
Mortgage-backed securities issued by U.S. Government agencies 1,132,816 2,655 (6,079)1,129,392 
Mortgage-backed securities issued by U.S. Government sponsored enterprises 4,402,051 138,611 (276)4,540,386 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 1,331,011 18,495 (4,222)1,345,284 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises334,463 19,694 — 354,157 
State and municipal securities500 1 — 501 
Corporate debt securities and other debt securities20,186 141 (390)19,937 
Total investment securities available for sale$7,395,265 $182,653 $(11,393)$7,566,525 
December 31, 2019
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
U.S. Treasury securities$19,855 $— $— $19,855 
U.S. Government agency securities35,499 1,042 — 36,541 
Mortgage-backed securities issued by U.S. Government agencies 56,328 560 (72)56,816 
Mortgage-backed securities issued by U.S. Government sponsored enterprises 5,079,396 103,495 (2,076)5,180,815 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 629,706 7,349 (204)636,851 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises357,291 14,301 — 371,592 
State and municipal securities2,069 6 — 2,075 
Asset-backed securities323,237 4,315 (152)327,400 
Corporate debt securities and other debt securities144,410 2,317 (2)146,725 
Total investment securities available for sale$6,647,791 $133,385 $(2,506)$6,778,670 
At September 30, 2020 and December 31, 2019, investment securities with a carrying value of $2.34 billion and $1.71 billion, respectively, were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements.
Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2020 and December 31, 2019 are presented below.
September 30, 2020
Less than 12 Months12 Months of LongerTotal
(in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Government agency securities$48,921 $(426)$— $— $48,921 $(426)
Mortgage-backed securities issued by U.S. Government agencies 800,908 (6,079)— — 800,908 (6,079)
Mortgage-backed securities issued by U.S. Government sponsored enterprises 180,899 (276)— — 180,899 (276)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 609,208 (4,222)— — 609,208 (4,222)
Corporate debt securities and other debt securities11,115 (390)— — 11,115 (390)
Total$1,651,051 $(11,393)$— $— $1,651,051 $(11,393)
December 31, 2019
Less than 12 Months12 Months of LongerTotal
(in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Mortgage-backed securities issued by U.S. Government agencies $19,543 $(70)$355 $(2)$19,898 $(72)
Mortgage-backed securities issued by U.S. Government sponsored enterprises 768,040 (2,076)— — 768,040 (2,076)
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 57,670 (204)— — 57,670 (204)
Asset-backed securities37,156 (116)4,954 (36)42,110 (152)
Corporate debt securities and other debt securities9,505 (2)— — 9,505 (2)
Total$891,914 $(2,468)$5,309 $(38)$897,223 $(2,506)
As of September 30, 2020, Synovus had 28 investment securities in a loss position for less than twelve months and no investment securities in a loss position for twelve months or longer. At December 31, 2019, Synovus had 26 investment securities in a loss position for less than twelve months and 5 investment securities in a loss position for twelve months or longer. Synovus does not intend to sell investment securities in an unrealized loss position prior to the recovery of the unrealized loss, which may not be until maturity, and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the securities that are in an unrealized loss position prior to the respective securities' recovery of all such unrealized losses. As such, no write-downs to the amortized cost basis of the portfolio were recorded in the current period. During the latter part of the second quarter of 2020, as part of an overall strategic repositioning of the investment securities portfolio, Synovus realized net gains of $69.4 million from sales of investment securities, including losses of $5.7 million related to the sale of Synovus' remaining portfolio of asset-backed securities.
At September 30, 2020, no ACL was established for investment securities. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans.
The amortized cost and fair value by contractual maturity of investment securities available for sale at September 30, 2020 are shown below. The expected life of MBSs or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBSs and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.
Distribution of Maturities at September 30, 2020
(in thousands)Within One
Year		1 to 5
Years		5 to 10
Years		More Than
10 Years		Total
Amortized Cost
U.S. Treasury securities$20,254 $— $— $— $20,254 
U.S. Government agency securities430 26,432 127,122 — 153,984 
Mortgage-backed securities issued by U.S. Government agencies — 1,585 311 1,130,920 1,132,816 
Mortgage-backed securities issued by U.S. Government sponsored enterprises — 310 73,420 4,328,321 4,402,051 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises — — 248 1,330,763 1,331,011 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 109,731 112,089 112,643 334,463 
State and municipal securities— — — 500 500 
Corporate debt securities and other debt securities— 9,505 8,681 2,000 20,186 
Total amortized cost$20,684 $147,563 $321,871 $6,905,147 $7,395,265 
Fair Value
U.S. Treasury securities$20,254 $— $— $— $20,254 
U.S. Government agency securities438 26,243 129,933 — 156,614 
Mortgage-backed securities issued by U.S. Government agencies — 1,641 324 1,127,427 1,129,392 
Mortgage-backed securities issued by U.S. Government sponsored enterprises — 319 76,148 4,463,919 4,540,386 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises — — 259 1,345,025 1,345,284 
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises— 116,705 118,468 118,984 354,157 
State and municipal securities— — — 501 501 
Corporate debt securities and other debt securities— 9,315 8,822 1,800 19,937 
Total fair value$20,692 $154,223 $333,954 $7,057,656 $7,566,525 
Proceeds from sales, gross gains, and gross losses on sales of securities available for sale for the three and nine months ended September 30, 2020 and 2019 are presented below. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2020201920202019
Proceeds from sales of investment securities available for sale$1,249,507 $709,464 $3,932,368 $2,456,137 
Gross realized gains on sales— 140 83,840 9,270 
Gross realized losses on sales(1)
(1,550)(3,871)(7,246)(14,772)
Investment securities gains (losses), net$(1,550)$(3,731)$76,594 $(5,502)