Investment Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Available-for-Sale Investment Securities

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 Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	20,254	$	—	$	—	$	20,254
U.S. Government agency securities	153,984		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 enterprises	334,463		19,694		—		354,157
State and municipal securities	500		1		—		501
Corporate debt securities and other debt securities	20,186		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 Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	19,855	$	—	$	—	$	19,855
U.S. Government agency securities	35,499		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 enterprises	357,291		14,301		—		371,592
State and municipal securities	2,069		6		—		2,075
Asset-backed securities	323,237		4,315		(152)		327,400
Corporate debt securities and other debt securities	144,410		2,317		(2)		146,725
Total investment securities available for sale	$	6,647,791	$	133,385	$	(2,506)	$	6,778,670

Schedule of Gross Unrealized Losses on Investment Securities and Fair Value

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 Months				12 Months of Longer				Total
(in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross 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 securities	11,115		(390)		—		—		11,115		(390)
Total	$	1,651,051	$	(11,393)	$	—	$	—	$	1,651,051	$	(11,393)

	December 31, 2019
	Less than 12 Months				12 Months of Longer				Total
(in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross 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 securities	37,156		(116)		4,954		(36)		42,110		(152)
Corporate debt securities and other debt securities	9,505		(2)		—		—		9,505		(2)
Total	$	891,914	$	(2,468)	$	5,309	$	(38)	$	897,223	$	(2,506)

Amortized Cost and Estimated Fair Value by Contractual Maturity of Investment Securities Available-for-Sale

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 securities	430		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 securities	438		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

Schedule of Sales Activities of Available-for-Sale Securities

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)	2020		2019		2020		2019
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)

(1) Losses recognized during 2020 primarily relate to the sale of Synovus' remaining portfolio of asset-backed securities during the second quarter of 2020. Additionally, losses include an $802 thousand third quarter 2020 settlement adjustment to the gain recognized on second quarter 2020 securities sales.