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Investment securities
 3 Months Ended
Mar. 31, 2023
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)

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

7,918,648

 

 

$

1,378

 

 

$

187,327

 

 

$

7,732,699

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

664,788

 

 

 

465

 

 

 

17,059

 

 

 

648,194

 

Residential

 

 

2,634,142

 

 

 

1,011

 

 

 

141,448

 

 

 

2,493,705

 

Other debt securities

 

 

176,338

 

 

 

216

 

 

 

12,230

 

 

 

164,324

 

 

 

 

11,393,916

 

 

 

3,070

 

 

 

358,064

 

 

 

11,038,922

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,056,675

 

 

 

—

 

 

 

35,427

 

 

 

1,021,248

 

Obligations of states and political subdivisions

 

 

2,564,095

 

 

 

36

 

 

 

72,224

 

 

 

2,491,907

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

2,027,911

 

 

 

—

 

 

 

106,970

 

 

 

1,920,941

 

Residential

 

 

10,503,208

 

 

 

11,462

 

 

 

796,479

 

 

 

9,718,191

 

Privately issued

 

 

47,956

 

 

 

9,451

 

 

 

6,959

 

 

 

50,448

 

Other debt securities

 

 

1,726

 

 

 

—

 

 

 

—

 

 

 

1,726

 

 

 

 

16,201,571

 

 

 

20,949

 

 

 

1,018,059

 

 

 

15,204,461

 

Total debt securities

 

$

27,595,487

 

 

$

24,019

 

 

$

1,376,123

 

 

$

26,243,383

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

297,461

 

 

$

1,821

 

 

$

4,062

 

 

$

295,220

 

Other — at cost

 

 

907,496

 

 

 

—

 

 

 

—

 

 

 

907,496

 

Total equity and other securities

 

$

1,204,957

 

 

$

1,821

 

 

$

4,062

 

 

$

1,202,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

3. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the quarters ended March 31, 2023 and 2022. Unrealized losses on equity securities are included in gain (loss) on bank investment securities in the consolidated statement of income.

At March 31, 2023, 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

 

$

1,871,549

 

 

$

1,824,693

 

Due after one year through five years

 

 

6,142,735

 

 

 

5,999,076

 

Due after five years through ten years

 

 

50,702

 

 

 

47,804

 

Due after ten years

 

 

30,000

 

 

 

25,450

 

 

 

 

8,094,986

 

 

 

7,897,023

 

Mortgage-backed securities available for sale

 

 

3,298,930

 

 

 

3,141,899

 

 

 

$

11,393,916

 

 

$

11,038,922

 

Debt securities held to maturity:

 

 

 

 

 

 

Due in one year or less

 

$

86,180

 

 

$

85,572

 

Due after one year through five years

 

 

1,120,699

 

 

 

1,084,851

 

Due after five years through ten years

 

 

1,143,823

 

 

 

1,130,492

 

Due after ten years

 

 

1,271,794

 

 

 

1,213,966

 

 

 

 

3,622,496

 

 

 

3,514,881

 

Mortgage-backed securities held to maturity

 

 

12,579,075

 

 

 

11,689,580

 

 

 

$

16,201,571

 

 

$

15,204,461

 

 

3. Investment securities, continued

A summary of investment securities that as of March 31, 2023 and December 31, 2022 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)

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

4,257,631

 

 

$

75,505

 

 

$

3,251,259

 

 

$

111,822

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

615,024

 

 

 

16,985

 

 

 

2,120

 

 

 

74

 

Residential

 

 

660,250

 

 

 

25,055

 

 

 

1,704,875

 

 

 

116,393

 

Other debt securities

 

 

66,072

 

 

 

3,261

 

 

 

92,417

 

 

 

8,969

 

 

 

 

5,598,977

 

 

 

120,806

 

 

 

5,050,671

 

 

 

237,258

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,021,248

 

 

 

35,427

 

 

 

—

 

 

 

—

 

Obligations of states and political subdivisions

 

 

576,759

 

 

 

5,041

 

 

 

1,867,537

 

 

 

67,183

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

1,739,336

 

 

 

106,970

 

 

 

—

 

 

 

—

 

Residential

 

 

5,613,759

 

 

 

446,267

 

 

 

2,464,780

 

 

 

350,212

 

Privately issued

 

 

2,039

 

 

 

110

 

 

 

35,380

 

 

 

6,849

 

 

 

 

8,953,141

 

 

 

593,815

 

 

 

4,367,697

 

 

 

424,244

 

Total

 

$

14,552,118

 

 

$

714,621

 

 

$

9,418,368

 

 

$

661,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

3. Investment securities, continued

The Company owned 4,132 individual debt securities with aggregate gross unrealized losses of $1.4 billion at March 31, 2023. Based on a review of each of the securities in the investment securities portfolio at March 31, 2023, the Company concluded that it expected to recover the amortized cost basis of its investment. As of March 31, 2023, 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 March 31, 2023, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $907 million of cost method equity securities.

The Company estimated no material allowance for credit losses for its investment securities classified as held-to-maturity at March 31, 2023 or December 31, 2022.

At March 31, 2023 and December 31, 2022 investment securities with carrying values of $9.0 billion (including $1.2 billion related to repurchase transactions) and $7.9 billion (including $567 million related to repurchase transactions), respectively, were pledged to secure borrowings, lines of credit and governmental deposits.