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Investment securities
 9 Months Ended
Sep. 30, 2022
Investments Debt And Equity Securities [Abstract]  
Investment securities

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

 

 

(In thousands)

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

7,908,153

 

 

$

413

 

 

$

249,838

 

 

$

7,658,728

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

     Commercial

 

 

613,752

 

 

 

—

 

 

 

7,181

 

 

 

606,571

 

     Residential

 

 

2,635,976

 

 

 

127

 

 

 

205,157

 

 

 

2,430,946

 

Other debt securities

 

 

182,274

 

 

 

311

 

 

 

8,484

 

 

 

174,101

 

 

 

 

11,340,155

 

 

 

851

 

 

 

470,660

 

 

 

10,870,346

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,199,539

 

 

 

—

 

 

 

49,633

 

 

 

1,149,906

 

Obligations of states and political subdivisions

 

 

2,663,917

 

 

 

6

 

 

 

221,631

 

 

 

2,442,292

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

     Commercial

 

 

927,503

 

 

 

—

 

 

 

106,215

 

 

 

821,288

 

     Residential

 

 

8,053,619

 

 

 

—

 

 

 

967,653

 

 

 

7,085,966

 

Privately issued

 

 

52,479

 

 

 

9,260

 

 

 

8,341

 

 

 

53,398

 

Other debt securities

 

 

1,805

 

 

 

—

 

 

 

—

 

 

 

1,805

 

 

 

 

12,898,862

 

 

 

9,266

 

 

 

1,353,473

 

 

 

11,554,655

 

Total debt securities

 

$

24,239,017

 

 

$

10,117

 

 

$

1,824,133

 

 

$

22,425,001

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

192,584

 

 

$

4,943

 

 

$

2,990

 

 

$

194,537

 

Other — at cost

 

 

640,020

 

 

 

—

 

 

 

—

 

 

 

640,020

 

Total equity and other securities

 

$

832,604

 

 

$

4,943

 

 

$

2,990

 

 

$

834,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

682,267

 

 

$

229

 

 

$

3,806

 

 

$

678,690

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

     Residential

 

 

3,042,771

 

 

 

113,102

 

 

 

561

 

 

 

3,155,312

 

Other debt securities

 

 

124,309

 

 

 

1,974

 

 

 

4,481

 

 

 

121,802

 

 

 

 

3,849,347

 

 

 

115,305

 

 

 

8,848

 

 

 

3,955,804

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

3,052

 

 

 

—

 

 

 

9

 

 

 

3,043

 

Obligations of states and political subdivisions

 

 

177

 

 

 

2

 

 

 

—

 

 

 

179

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

     Residential

 

 

2,667,328

 

 

 

49,221

 

 

 

8,376

 

 

 

2,708,173

 

Privately issued

 

 

61,555

 

 

 

10,520

 

 

 

14,742

 

 

 

57,333

 

Other debt securities

 

 

2,562

 

 

 

—

 

 

 

—

 

 

 

2,562

 

 

 

 

2,734,674

 

 

 

59,743

 

 

 

23,127

 

 

 

2,771,290

 

Total debt securities

 

$

6,584,021

 

 

$

175,048

 

 

$

31,975

 

 

$

6,727,094

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

73,774

 

 

$

4,460

 

 

$

594

 

 

$

77,640

 

Other — at cost

 

 

387,742

 

 

 

—

 

 

 

—

 

 

 

387,742

 

Total equity and other securities

 

$

461,516

 

 

$

4,460

 

 

$

594

 

 

$

465,382

 

 

3. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the three-month and nine-month periods ended September 30, 2022 and 2021. Unrealized losses on equity securities were $1 million and $2 million during the three months and nine months ended September 30, 2022, respectively, compared with unrealized gains on equity securities of less than $1 million and unrealized losses of $23 million during the three months and nine months ended September 30, 2021, respectively.

At September 30, 2022, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

 

 

Amortized
Cost

 

 

Estimated
Fair Value

 

 

 

(In thousands)

 

Debt securities available for sale:

 

 

 

 

 

 

Due in one year or less

 

$

6,886

 

 

$

6,813

 

Due after one year through five years

 

 

7,979,072

 

 

 

7,727,233

 

Due after five years through ten years

 

 

74,469

 

 

 

71,558

 

Due after ten years

 

 

30,000

 

 

 

27,225

 

 

 

 

8,090,427

 

 

 

7,832,829

 

Mortgage-backed securities available for sale

 

 

3,249,728

 

 

 

3,037,517

 

 

 

$

11,340,155

 

 

$

10,870,346

 

Debt securities held to maturity:

 

 

 

 

 

 

Due in one year or less

 

$

292,223

 

 

$

290,088

 

Due after one year through five years

 

 

1,096,658

 

 

 

1,045,997

 

Due after five years through ten years

 

 

1,045,507

 

 

 

992,244

 

Due after ten years

 

 

1,430,873

 

 

 

1,265,674

 

 

 

 

3,865,261

 

 

 

3,594,003

 

Mortgage-backed securities held to maturity

 

 

9,033,601

 

 

 

7,960,652

 

 

 

$

12,898,862

 

 

$

11,554,655

 

 

3. Investment securities, continued

A summary of investment securities that as of September 30, 2022 and December 31, 2021 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

 

(In thousands)

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

7,159,893

 

 

$

224,986

 

 

$

253,585

 

 

$

24,852

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

         Commercial

 

 

606,571

 

 

 

7,181

 

 

 

—

 

 

 

—

 

     Residential

 

 

2,401,907

 

 

 

204,279

 

 

 

18,668

 

 

 

878

 

Other debt securities

 

 

99,347

 

 

 

2,827

 

 

 

68,872

 

 

 

5,657

 

 

 

 

10,267,718

 

 

 

439,273

 

 

 

341,125

 

 

 

31,387

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,146,912

 

 

 

49,618

 

 

 

2,994

 

 

 

15

 

Obligations of states and political subdivisions

 

 

2,426,287

 

 

 

221,631

 

 

 

—

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

         Commercial

 

 

821,288

 

 

 

106,215

 

 

 

—

 

 

 

—

 

         Residential

 

 

6,416,154

 

 

 

819,363

 

 

 

669,812

 

 

 

148,290

 

Privately issued

 

 

—

 

 

 

—

 

 

 

37,642

 

 

 

8,341

 

 

 

 

10,810,641

 

 

 

1,196,827

 

 

 

710,448

 

 

 

156,646

 

Total

 

$

21,078,359

 

 

$

1,636,100

 

 

$

1,051,573

 

 

$

188,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

598,566

 

 

$

3,806

 

 

$

—

 

 

$

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

         Residential

 

 

10,111

 

 

 

54

 

 

 

20,824

 

 

 

507

 

Other debt securities

 

 

3,760

 

 

 

74

 

 

 

66,419

 

 

 

4,407

 

 

 

 

612,437

 

 

 

3,934

 

 

 

87,243

 

 

 

4,914

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

3,043

 

 

 

9

 

 

 

—

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

     Residential

 

 

1,372,236

 

 

 

8,356

 

 

 

1,251

 

 

 

20

 

Privately issued

 

 

—

 

 

 

—

 

 

 

43,692

 

 

 

14,742

 

 

 

 

1,375,279

 

 

 

8,365

 

 

 

44,943

 

 

 

14,762

 

Total

 

$

1,987,716

 

 

$

12,299

 

 

$

132,186

 

 

$

19,676

 

 

The Company owned 4,330 individual debt securities with aggregate gross unrealized losses of $1.8 billion at September 30, 2022. Based on a review of each of the securities in the investment securities portfolio at September 30, 2022, the Company concluded that it expected to recover the amortized cost basis of its investment. As of September 30, 2022, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At September 30, 2022, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $640 million of cost method equity securities.

3. Investment securities, continued

The Company estimated no material allowance for credit losses for its investment securities classified as held-to-maturity at September 30, 2022 or December 31, 2021.

At September 30, 2022 and December 31, 2021 investment securities with carrying values of $10.3 billion (including $581 million related to repurchase transactions) and $5.1 billion (including $96 million related to repurchase transactions), respectively, were pledged to secure borrowings, lines of credit and governmental deposits.