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Investment securities
 12 Months Ended
Dec. 31, 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)

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

7,913,932

 

 

$

200

 

 

$

243,172

 

 

$

7,670,960

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

594,779

 

 

 

—

 

 

 

20,480

 

 

 

574,299

 

Residential

 

 

2,501,334

 

 

 

65

 

 

 

171,281

 

 

 

2,330,118

 

Other debt securities

 

 

183,107

 

 

 

250

 

 

 

9,773

 

 

 

173,584

 

 

 

 

11,193,152

 

 

 

515

 

 

 

444,706

 

 

 

10,748,961

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,054,035

 

 

 

—

 

 

 

45,747

 

 

 

1,008,288

 

Obligations of states and political subdivisions

 

 

2,577,078

 

 

 

4

 

 

 

116,512

 

 

 

2,460,570

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

912,431

 

 

 

—

 

 

 

103,528

 

 

 

808,903

 

Residential

 

 

8,934,918

 

 

 

1,451

 

 

 

891,063

 

 

 

8,045,306

 

Privately issued

 

 

49,742

 

 

 

8,833

 

 

 

7,987

 

 

 

50,588

 

Other debt securities

 

 

1,765

 

 

 

—

 

 

 

—

 

 

 

1,765

 

 

 

 

13,529,969

 

 

 

10,288

 

 

 

1,164,837

 

 

 

12,375,420

 

Total debt securities

 

$

24,723,121

 

 

$

10,803

 

 

$

1,609,543

 

 

$

23,124,381

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

153,283

 

 

$

2,120

 

 

$

3,945

 

 

$

151,458

 

Other — at cost

 

 

780,483

 

 

 

—

 

 

 

—

 

 

 

780,483

 

Total equity and other securities

 

$

933,766

 

 

$

2,120

 

 

$

3,945

 

 

$

931,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

No investment in securities of a single non-U.S. Government, government agency or government guaranteed issuer exceeded ten percent of shareholders’ equity at December 31, 2022.

As of December 31, 2022, the latest available investment ratings of all obligations of states and political subdivisions, privately issued mortgage-backed securities and other debt securities were:

 

 

 

 

 

 

 

 

Average Credit Rating of Fair Value Amount

 

 

 

Amortized
Cost

 

 

Estimated
Fair Value

 

 

A or
Better

 

 

BBB

 

 

BB

 

 

B or Less

 

 

Not
Rated

 

 

 

(In thousands)

 

Obligations of states and
    political subdivisions

 

$

2,577,078

 

 

$

2,460,570

 

 

$

2,450,795

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

9,775

 

Privately issued mortgage-
    backed securities

 

 

49,742

 

 

 

50,588

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

379

 

 

 

50,209

 

Other debt securities

 

 

184,872

 

 

 

175,349

 

 

 

15,044

 

 

 

63,361

 

 

 

35,741

 

 

 

—

 

 

 

61,203

 

The amortized cost and estimated fair value of collateralized mortgage obligations included in mortgage-backed securities were as follows:

 

 

December 31

 

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Collateralized mortgage obligations:

 

 

 

 

 

 

Amortized cost

 

$

372,373

 

 

$

61,980

 

Estimated fair value

 

 

327,981

 

 

 

57,763

 

There were no significant gross realized gains or losses from sales of investment securities in 2022, 2021 or 2020.

At December 31, 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

 

$

131,291

 

 

$

126,611

 

Due after one year through five years

 

 

7,870,319

 

 

 

7,628,579

 

Due after five years through ten years

 

 

65,429

 

 

 

61,938

 

Due after ten years

 

 

30,000

 

 

 

27,416

 

 

 

 

8,097,039

 

 

 

7,844,544

 

Mortgage-backed securities available for sale

 

 

3,096,113

 

 

 

2,904,417

 

 

 

$

11,193,152

 

 

$

10,748,961

 

Debt securities held to maturity:

 

 

 

 

 

 

Due in one year or less

 

$

137,854

 

 

$

136,564

 

Due after one year through five years

 

 

1,057,311

 

 

 

1,011,114

 

Due after five years through ten years

 

 

1,092,875

 

 

 

1,068,369

 

Due after ten years

 

 

1,344,838

 

 

 

1,254,576

 

 

 

 

3,632,878

 

 

 

3,470,623

 

Mortgage-backed securities held to maturity

 

 

9,897,091

 

 

 

8,904,797

 

 

 

$

13,529,969

 

 

$

12,375,420

 

 

A summary of investment securities that as of December 31, 2022 and 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)

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

6,706,413

 

 

$

183,760

 

 

$

841,945

 

 

$

59,412

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

574,299

 

 

 

20,480

 

 

 

—

 

 

 

—

 

Residential

 

 

2,295,873

 

 

 

169,489

 

 

 

28,305

 

 

 

1,792

 

Other debt securities

 

 

93,458

 

 

 

3,604

 

 

 

73,280

 

 

 

6,169

 

 

 

 

9,670,043

 

 

 

377,333

 

 

 

943,530

 

 

 

67,373

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,008,288

 

 

 

45,747

 

 

 

—

 

 

 

—

 

Obligations of states and political subdivisions

 

 

2,449,420

 

 

 

116,512

 

 

 

—

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

808,903

 

 

 

103,528

 

 

 

—

 

 

 

—

 

Residential

 

 

6,292,462

 

 

 

619,403

 

 

 

1,319,300

 

 

 

271,660

 

Privately issued

 

 

—

 

 

 

—

 

 

 

35,661

 

 

 

7,987

 

 

 

 

10,559,073

 

 

 

885,190

 

 

 

1,354,961

 

 

 

279,647

 

Total

 

$

20,229,116

 

 

$

1,262,523

 

 

$

2,298,491

 

 

$

347,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 4,273 individual debt securities with aggregate gross unrealized losses of $1.6 billion at December 31, 2022. Based on a review of each of the securities in the investment securities portfolio at December 31, 2022, the Company concluded that it expected to recover the amortized cost basis of its investment. As of December 31, 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 December 31, 2022, the Company has not identified events or changes in circumstances which may

have a significant adverse effect on the fair value of the $780 million of cost method investment securities.

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

At December 31, 2022 and 2021, investment securities with carrying values of $7.9 billion (including $567 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 as described in note 9.