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Investment securities (Tables)
 12 Months Ended
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]  
Amortized Cost and Estimated Fair Value of Investment Securities

On January 1, 2018, the Company adopted amended guidance requiring equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in the consolidated statement of income. This amended guidance excludes equity method investments, investments in consolidated subsidiaries, exchange membership ownership interests, and Federal Home Loan Bank of New York and Federal Reserve Bank of New York capital stock. Upon adoption the Company reclassified $17 million, after-tax effect, from accumulated other comprehensive income to retained earnings, representing the difference between fair value and the cost basis of equity investments with readily determinable fair values at January 1, 2018. Net unrealized losses recorded as gain (loss) on bank investment securities in the consolidated statement of income during the year ended December 31, 2018 were $6 million.  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, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

1,346,782

 

 

$

—

 

 

$

9,851

 

 

$

1,336,931

 

Obligations of states and political subdivisions

 

 

1,660

 

 

 

4

 

 

 

5

 

 

 

1,659

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

7,383,340

 

 

 

15,754

 

 

 

182,103

 

 

 

7,216,991

 

Privately issued

 

 

24

 

 

 

—

 

 

 

2

 

 

 

22

 

Other debt securities

 

 

137,617

 

 

 

770

 

 

 

11,481

 

 

 

126,906

 

 

 

 

8,869,423

 

 

 

16,528

 

 

 

203,442

 

 

 

8,682,509

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

446,542

 

 

 

—

 

 

 

239

 

 

 

446,303

 

Obligations of states and political subdivisions

 

 

7,494

 

 

 

22

 

 

 

12

 

 

 

7,504

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

2,745,776

 

 

 

4,165

 

 

 

55,111

 

 

 

2,694,830

 

Privately issued

 

 

113,160

 

 

 

12,345

 

 

 

22,327

 

 

 

103,178

 

Other debt securities

 

 

3,668

 

 

 

—

 

 

 

—

 

 

 

3,668

 

 

 

 

3,316,640

 

 

 

16,532

 

 

 

77,689

 

 

 

3,255,483

 

Total debt securities

 

$

12,186,063

 

 

$

33,060

 

 

$

281,131

 

 

$

11,937,992

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

77,440

 

 

$

17,295

 

 

$

818

 

 

$

93,917

 

Other — at cost

 

 

599,747

 

 

 

—

 

 

 

—

 

 

 

599,747

 

Total equity and other securities

 

$

677,187

 

 

$

17,295

 

 

$

818

 

 

$

693,664

 

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

 

(In thousands)

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

1,965,665

 

 

$

—

 

 

$

18,178

 

 

$

1,947,487

 

Obligations of states and political subdivisions

 

 

2,555

 

 

 

36

 

 

 

2

 

 

 

2,589

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

8,755,482

 

 

 

59,497

 

 

 

98,587

 

 

 

8,716,392

 

Privately issued

 

 

28

 

 

 

—

 

 

 

—

 

 

 

28

 

Other debt securities

 

 

136,905

 

 

 

2,402

 

 

 

10,475

 

 

 

128,832

 

Equity securities

 

 

78,161

 

 

 

23,219

 

 

 

424

 

 

 

100,956

 

 

 

 

10,938,796

 

 

 

85,154

 

 

 

127,666

 

 

 

10,896,284

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political subdivisions

 

 

24,562

 

 

 

109

 

 

 

49

 

 

 

24,622

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

3,187,953

 

 

 

27,236

 

 

 

13,746

 

 

 

3,201,443

 

Privately issued

 

 

135,688

 

 

 

2,574

 

 

 

27,575

 

 

 

110,687

 

Other debt securities

 

 

5,010

 

 

 

—

 

 

 

—

 

 

 

5,010

 

 

 

 

3,353,213

 

 

 

29,919

 

 

 

41,370

 

 

 

3,341,762

 

Other securities — at cost

 

 

415,028

 

 

 

—

 

 

 

—

 

 

 

415,028

 

Total

 

$

14,707,037

 

 

$

115,073

 

 

$

169,036

 

 

$

14,653,074

 
Investment Ratings of All Privately Issued Mortgage-Backed Securities and Other Debt Securities

As of December 31, 2018, 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

 

$

9,154

 

 

$

9,163

 

 

$

8,637

 

 

$

526

 

 

$

—

 

 

$

—

 

 

$

—

 

Privately issued mortgage-backed

   securities

 

 

113,184

 

 

 

103,200

 

 

 

17,055

 

 

 

16

 

 

 

—

 

 

 

34,180

 

 

 

51,949

 

Other debt securities

 

 

141,285

 

 

 

130,574

 

 

 

4,818

 

 

 

59,814

 

 

 

31,053

 

 

 

—

 

 

 

34,889

 

Total

 

$

263,623

 

 

$

242,937

 

 

$

30,510

 

 

$

60,356

 

 

$

31,053

 

 

$

34,180

 

 

$

86,838

 
Amortized Cost and Estimated Fair Value of Collateralized Mortgage Obligations

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

 

 

 

December 31

 

 

 

2018

 

 

2017

 

 

 

(In thousands)

 

Collateralized mortgage obligations:

 

 

 

 

 

 

 

 

Amortized cost

 

$

115,171

 

 

$

138,527

 

Estimated fair value

 

 

105,155

 

 

 

113,516

 
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

At December 31, 2018, 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

 

$

1,344,408

 

 

 

1,334,695

 

Due after one year through five years

 

 

9,555

 

 

 

9,319

 

Due after five years through ten years

 

 

102,081

 

 

 

95,653

 

Due after ten years

 

 

30,015

 

 

 

25,829

 

 

 

 

1,486,059

 

 

 

1,465,496

 

Mortgage-backed securities available for sale

 

 

7,383,364

 

 

 

7,217,013

 

 

 

$

8,869,423

 

 

 

8,682,509

 

Debt securities held to maturity:

 

 

 

 

 

 

 

 

Due in one year or less

 

$

449,468

 

 

 

449,237

 

Due after one year through five years

 

 

4,568

 

 

 

4,570

 

Due after ten years

 

 

3,668

 

 

 

3,668

 

 

 

 

457,704

 

 

 

457,475

 

Mortgage-backed securities held to maturity

 

 

2,858,936

 

 

 

2,798,008

 

 

 

$

3,316,640

 

 

 

3,255,483

 
Investment Securities in Continuous Unrealized Loss Position

A summary of investment securities that as of December 31, 2018 and 2017 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, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

273

 

 

 

(2

)

 

 

1,335,559

 

 

 

(9,849

)

Obligations of states and political subdivisions

 

 

629

 

 

 

(5

)

 

 

—

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

405,558

 

 

 

(2,892

)

 

 

5,646,773

 

 

 

(179,211

)

Privately issued

 

 

22

 

 

 

(2

)

 

 

—

 

 

 

—

 

Other debt securities

 

 

53,478

 

 

 

(2,187

)

 

 

66,014

 

 

 

(9,294

)

 

 

 

459,960

 

 

 

(5,088

)

 

 

7,048,346

 

 

 

(198,354

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

446,303

 

 

 

(239

)

 

 

—

 

 

 

—

 

Obligations of states and political subdivisions

 

 

—

 

 

 

—

 

 

 

3,126

 

 

 

(12

)

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

179,354

 

 

 

(989

)

 

 

2,082,723

 

 

 

(54,122

)

Privately issued

 

 

—

 

 

 

—

 

 

 

51,943

 

 

 

(22,327

)

 

 

 

625,657

 

 

 

(1,228

)

 

 

2,137,792

 

 

 

(76,461

)

Total

 

$

1,085,617

 

 

 

(6,316

)

 

 

9,186,138

 

 

 

(274,815

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

278,132

 

 

 

(1,761

)

 

 

1,669,355

 

 

 

(16,417

)

Obligations of states and political subdivisions

 

 

—

 

 

 

—

 

 

 

474

 

 

 

(2

)

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

2,106,142

 

 

 

(13,695

)

 

 

3,138,841

 

 

 

(84,892

)

Other debt securities

 

 

3,067

 

 

 

(26

)

 

 

61,159

 

 

 

(10,449

)

Equity securities (a)

 

 

—

 

 

 

—

 

 

 

18,162

 

 

 

(424

)

 

 

 

2,387,341

 

 

 

(15,482

)

 

 

4,887,991

 

 

 

(112,184

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political subdivisions

 

 

2,954

 

 

 

(4

)

 

 

6,110

 

 

 

(45

)

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

1,331,759

 

 

 

(7,036

)

 

 

265,695

 

 

 

(6,710

)

Privately issued

 

 

5,061

 

 

 

(1,216

)

 

 

55,255

 

 

 

(26,359

)

 

 

 

1,339,774

 

 

 

(8,256

)

 

 

327,060

 

 

 

(33,114

)

Total

 

$

3,727,115

 

 

 

(23,738

)

 

 

5,215,051

 

 

 

(145,298

)

 

 

(a)

Beginning January 1, 2018, equity securities with readily determinable fair values are required to be measured at fair value with changes in fair value recognized in the consolidated statement of income. As a result, subsequent to December 31, 2017 disclosing the time period for which these equity securities had been in a continuous unrealized loss position is no longer relevant.