Investment Securities (Tables)
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6 Months Ended |
Jun. 30, 2023 |
Investments, Debt and Equity Securities [Abstract] |
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Schedule of available-for-sale securities reconciliation |
The following table presents amortized cost, gross unrealized gains and losses, and fair values of securities available-for-sale as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | December 31, 2022 | | | | Gross | | Gross | | | | | | Gross | | Gross | | | | Amortized | | Unrealized | | Unrealized | | Fair | | Amortized | | Unrealized | | Unrealized | | Fair | Security Type | Cost | | Gains | | Losses | | Value | | Cost | | Gains | | Losses | | Value | | (In thousands) | Agency residential MBS | $ | 2,592,344 | | | $ | — | | | $ | (423,731) | | | $ | 2,168,613 | | | $ | 2,685,038 | | | $ | — | | | $ | (442,996) | | | $ | 2,242,042 | | U.S. Treasury securities | 771,226 | | | 2 | | | (98,145) | | | 673,083 | | | 771,145 | | | — | | | (101,075) | | | 670,070 | | Agency commercial MBS | 540,449 | | | — | | | (60,492) | | | 479,957 | | | 549,492 | | | — | | | (61,886) | | | 487,606 | | Agency residential CMOs | 500,101 | | | — | | | (60,874) | | | 439,227 | | | 517,174 | | | — | | | (60,111) | | | 457,063 | | Municipal securities | 395,200 | | | — | | | (52,411) | | | 342,789 | | | 399,724 | | | — | | | (60,398) | | | 339,326 | | Corporate debt securities | 344,730 | | | — | | | (64,217) | | | 280,513 | | | 344,767 | | | 6 | | | (32,868) | | | 311,905 | | Private label residential CMOs | 198,992 | | | — | | | (39,485) | | | 159,507 | | | 207,123 | | | — | | | (40,399) | | | 166,724 | | Collateralized loan obligations | 109,168 | | | — | | | (4,345) | | | 104,823 | | | 109,159 | | | — | | | (6,898) | | | 102,261 | | Private label commercial MBS | 25,137 | | | — | | | (1,937) | | | 23,200 | | | 28,903 | | | — | | | (2,076) | | | 26,827 | | Asset-backed securities | 22,116 | | | — | | | (391) | | | 21,725 | | | 23,568 | | | — | | | (1,155) | | | 22,413 | | SBA securities | 16,360 | | | — | | | (1,278) | | | 15,082 | | | 18,524 | | | — | | | (1,274) | | | 17,250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 5,515,823 | | | $ | 2 | | | $ | (807,306) | | | $ | 4,708,519 | | | $ | 5,654,617 | | | $ | 6 | | | $ | (811,136) | | | $ | 4,843,487 | |
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Schedule of realized gains and losses on securities available-for-sale |
The following table presents the amortized cost of securities sold with related gross realized gains, gross realized losses, and net realized (losses) gains for the years indicated: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | Sales of Securities Available-for-Sale | 2023 | | 2022 | | 2023 | | 2022 | | (In thousands) | Amortized cost of securities sold | $ | — | | | $ | 393,432 | | | $ | — | | | $ | 599,520 | | | | | | | | | | Gross realized gains | $ | — | | | $ | 1,544 | | | $ | — | | | $ | 2,734 | | Gross realized losses | — | | | (2,753) | | | — | | | (3,839) | | Net realized gains (losses) | $ | — | | | $ | (1,209) | | | $ | — | | | $ | (1,105) | |
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Unrealized losses on investment securities available-for-sale |
The following tables present the gross unrealized losses and fair values of securities available-for-sale that were in unrealized loss positions as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | Less Than 12 Months | | 12 Months or More | | Total | | | | Gross | | | | Gross | | | | Gross | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | Security Type | Value | | Losses | | Value | | Losses | | Value | | Losses | | (In thousands) | Agency residential MBS | $ | 6,358 | | | $ | (400) | | | $ | 2,162,255 | | | $ | (423,331) | | | $ | 2,168,613 | | | $ | (423,731) | | U.S. Treasury securities | — | | | — | | | 668,123 | | | (98,145) | | | 668,123 | | | (98,145) | | Agency commercial MBS | — | | | — | | | 479,957 | | | (60,492) | | | 479,957 | | | (60,492) | | Agency residential CMOs | 701 | | | (31) | | | 438,527 | | | (60,843) | | | 439,228 | | | (60,874) | | Municipal securities | 1,162 | | | (87) | | | 341,627 | | | (52,324) | | | 342,789 | | | (52,411) | | Corporate debt securities | 13,997 | | | (1,003) | | | 266,516 | | | (63,214) | | | 280,513 | | | (64,217) | | Private label residential CMOs | — | | | — | | | 159,507 | | | (39,485) | | | 159,507 | | | (39,485) | | Collateralized loan obligations | — | | | — | | | 104,823 | | | (4,345) | | | 104,823 | | | (4,345) | | Private label commercial MBS | — | | | — | | | 23,200 | | | (1,937) | | | 23,200 | | | (1,937) | | Asset-backed securities | — | | | — | | | 21,725 | | | (391) | | | 21,725 | | | (391) | | SBA securities | — | | | — | | | 15,082 | | | (1,278) | | | 15,082 | | | (1,278) | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | 22,218 | | | $ | (1,521) | | | $ | 4,681,342 | | | $ | (805,785) | | | $ | 4,703,560 | | | $ | (807,306) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Less Than 12 Months | | 12 Months or More | | Total | | | | Gross | | | | Gross | | | | Gross | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | Security Type | Value | | Losses | | Value | | Losses | | Value | | Losses | | (In thousands) | Agency residential MBS | $ | 52,556 | | | $ | (6,193) | | | $ | 2,189,485 | | | $ | (436,803) | | | $ | 2,242,041 | | | $ | (442,996) | | U.S. Treasury securities | 4,972 | | | (26) | | | 665,098 | | | (101,049) | | | 670,070 | | | (101,075) | | Agency commercial MBS | 316,892 | | | (31,139) | | | 170,714 | | | (30,747) | | | 487,606 | | | (61,886) | | Agency residential CMOs | 245,755 | | | (22,748) | | | 211,309 | | | (37,363) | | | 457,064 | | | (60,111) | | Municipal securities | 37,380 | | | (3,129) | | | 298,266 | | | (57,269) | | | 335,646 | | | (60,398) | | Corporate debt securities | 302,643 | | | (32,124) | | | 4,256 | | | (744) | | | 306,899 | | | (32,868) | | Private label residential CMOs | 19,261 | | | (1,294) | | | 147,464 | | | (39,105) | | | 166,725 | | | (40,399) | | Collateralized loan obligations | 27,704 | | | (1,818) | | | 74,558 | | | (5,080) | | | 102,262 | | | (6,898) | | Private label commercial MBS | 10,204 | | | (508) | | | 16,623 | | | (1,568) | | | 26,827 | | | (2,076) | | Asset-backed securities | 22,413 | | | (1,155) | | | — | | | — | | | 22,413 | | | (1,155) | | SBA securities | 17,250 | | | (1,274) | | | — | | | — | | | 17,250 | | | (1,274) | | Total | $ | 1,057,030 | | | $ | (101,408) | | | $ | 3,777,773 | | | $ | (709,728) | | | $ | 4,834,803 | | | $ | (811,136) | |
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Schedule of held-to-maturity securities reconciliation |
The following table presents amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair values of securities held-to-maturity as of the date indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | | | Allowance | | | | | | | | | | | | for | | Net | | Gross | | Gross | | | | Amortized | | Credit | | Carrying | | Unrealized | | Unrealized | | Fair | Security Type | Cost | | Losses | | Amount | | Gains | | Losses | | Value | | (In thousands) | | | | | | | | | | | | | Municipal securities | $ | 1,245,462 | | | $ | (140) | | | $ | 1,245,322 | | | $ | 173 | | | $ | (53,811) | | | $ | 1,191,684 | | Agency commercial MBS | 430,578 | | | — | | | 430,578 | | | — | | | (35,178) | | | 395,400 | | Private label commercial MBS | 348,123 | | | — | | | 348,123 | | | — | | | (34,612) | | | 313,511 | | U.S. Treasury securities | 185,581 | | | — | | | 185,581 | | | — | | | (12,987) | | | 172,594 | | Corporate debt securities | 69,958 | | | (1,360) | | | 68,598 | | | — | | | (20,975) | | | 47,623 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total (1) | $ | 2,279,702 | | | $ | (1,500) | | | $ | 2,278,202 | | | $ | 173 | | | $ | (157,563) | | | $ | 2,120,812 | | __________________________(1) Excludes accrued interest receivable of $13.4 million at June 30, 2023 which is recorded in "Other assets" on the condensed consolidated balance sheets. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | Allowance | | | | | | | | | | | | for | | Net | | Gross | | Gross | | | | Amortized | | Credit | | Carrying | | Unrealized | | Unrealized | | Fair | Security Type | Cost | | Losses | | Amount | | Gains | | Losses | | Value | | (In thousands) | | | | | | | | | | | | | Municipal securities | $ | 1,243,443 | | | $ | (140) | | | $ | 1,243,303 | | | $ | 8 | | | $ | (77,526) | | | $ | 1,165,785 | | Agency commercial MBS | 427,411 | | | — | | | 427,411 | | | — | | | (34,287) | | | 393,124 | | Private label commercial MBS | 345,825 | | | — | | | 345,825 | | | — | | | (26,027) | | | 319,798 | | U.S. Treasury securities | 184,162 | | | — | | | 184,162 | | | — | | | (12,462) | | | 171,700 | | Corporate debt securities | 69,794 | | | (1,360) | | | 68,434 | | | — | | | (8,369) | | | 60,065 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total (1) | $ | 2,270,635 | | | $ | (1,500) | | | $ | 2,269,135 | | | $ | 8 | | | $ | (158,671) | | | $ | 2,110,472 | | __________________________(1) Excludes accrued interest receivable of $13.5 million at December 31, 2022 which is recorded in "Other assets" on the condensed consolidated balance sheets.
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Debt Securities, Held-to-maturity, Allowance for Credit Loss |
The following table presents the changes by major security type in our allowance for credit losses on securities held-to-maturity for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for | | Provision | | | | | | Allowance for | | Credit Losses, | | for | | | | | | Credit Losses, | | Beginning | | Credit | | | | | | End of | Security Type | of Period | | Losses | | Charge-offs | | Recoveries | | Period | | (In thousands) | Three Months Ended June 30, 2023 | | | | | | | | | | Municipal securities | $ | 140 | | | $ | — | | | $ | — | | | $ | — | | | $ | 140 | | Corporate debt securities | 1,360 | | | — | | | — | | | — | | | 1,360 | | Total | $ | 1,500 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,500 | | | | | | | | | | | | Six Months Ended June 30, 2023 | | | | | | | | | | Municipal securities | $ | 140 | | | $ | — | | | $ | — | | | $ | — | | | $ | 140 | | Corporate debt securities | 1,360 | | | — | | | — | | | — | | | 1,360 | | Total | $ | 1,500 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,500 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for | | Provision | | | | | | Allowance for | | Credit Losses, | | for | | | | | | Credit Losses, | | Beginning | | Credit | | | | | | End of | Security Type | of Period | | Losses | | Charge-offs | | Recoveries | | Period | | (In thousands) | Three Months Ended June 30, 2022 | | | | | | | | | | Municipal securities | $ | — | | | $ | 140 | | | $ | — | | | $ | — | | | $ | 140 | | Corporate debt securities | — | | | 1,360 | | | — | | | — | | | 1,360 | | Total | $ | — | | | $ | 1,500 | | | $ | — | | | $ | — | | | $ | 1,500 | | | | | | | | | | | | Six Months Ended June 30, 2022 | | | | | | | | | | Municipal securities | $ | — | | | $ | 140 | | | $ | — | | | $ | — | | | $ | 140 | | Corporate debt securities | — | | | 1,360 | | | — | | | — | | | 1,360 | | Total | $ | — | | | $ | 1,500 | | | $ | — | | | $ | — | | | $ | 1,500 | |
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Debt Securities, Held-to-maturity, Credit Quality Indicator |
The following table presents our securities held-to-maturity portfolio at amortized cost by the lowest available credit rating as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | Security Type | AAA | | AA+ | | AA | | AA- | | A+ | | A | | A- | | BBB | | NR | | Total | | (In thousands) | Amortized Cost: | | | | | | | | | | | | | | | | | | | | Municipal securities | $ | 552,131 | | | $ | 403,500 | | | $ | 166,760 | | | $ | 86,060 | | | $ | 12,018 | | | $ | 1,894 | | | $ | — | | | $ | — | | | $ | 23,099 | | | $ | 1,245,462 | | Agency commercial | | | | | | | | | | | | | | | | | | | | MBS | — | | | 430,578 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 430,578 | | Private label | | | | | | | | | | | | | | | | | | | | commercial MBS | 348,123 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 348,123 | | U.S. Treasury | | | | | | | | | | | | | | | | | | | | securities | — | | | 185,581 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 185,581 | | Corporate debt | | | | | | | | | | | | | | | | | | | | securities | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 44,306 | | | 25,652 | | | 69,958 | | Total | $ | 900,254 | | | $ | 1,019,659 | | | $ | 166,760 | | | $ | 86,060 | | | $ | 12,018 | | | $ | 1,894 | | | $ | — | | | $ | 44,306 | | | $ | 48,751 | | | $ | 2,279,702 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | Security Type | AAA | | AA+ | | AA | | AA- | | A+ | | A | | A- | | BBB | | NR | | Total | | (In thousands) | Amortized Cost: | | | | | | | | | | | | | | | | | | | | Municipal securities | $ | 568,674 | | | $ | 385,990 | | | $ | 173,751 | | | $ | 95,471 | | | $ | — | | | $ | 1,901 | | | $ | — | | | $ | — | | | $ | 17,656 | | | $ | 1,243,443 | | Agency commercial | | | | | | | | | | | | | | | | | | | | MBS | — | | | 427,411 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 427,411 | | Private label | | | | | | | | | | | | | | | | | | | | commercial MBS | 345,825 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 345,825 | | U.S. Treasury | | | | | | | | | | | | | | | | | | | | securities | — | | | 184,162 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 184,162 | | Corporate debt | | | | | | | | | | | | | | | | | | | | securities | — | | | — | | | — | | | — | | | — | | | — | | | 23,244 | | | 20,999 | | | 25,551 | | | 69,794 | | Total | $ | 914,499 | | | $ | 997,563 | | | $ | 173,751 | | | $ | 95,471 | | | $ | — | | | $ | 1,901 | | | $ | 23,244 | | | $ | 20,999 | | | $ | 43,207 | | | $ | 2,270,635 | |
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Investment income |
The following table presents the composition of our interest income on investment securities, including available-for-sale and held-to-maturity, for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | 2023 | | 2022 | | 2023 | | 2022 | | (In thousands) | Taxable interest | $ | 38,207 | | | $ | 44,467 | | | $ | 76,899 | | | $ | 89,109 | | Non-taxable interest | 4,922 | | | 8,180 | | | 9,825 | | | 16,699 | | Dividend income | 1,024 | | | 255 | | | 1,666 | | | 516 | | Total interest income on investment securities | $ | 44,153 | | | $ | 52,902 | | | $ | 88,390 | | | $ | 106,324 | |
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Available-for-sale Investments Classified by Contractual Maturity Date |
The following table presents the contractual maturities of our securities available-for-sale portfolio based on amortized cost and carrying value as of the date indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | | | Due After | | Due After | | | | | | Due | | One Year | | Five Years | | Due | | | | Within | | Through | | Through | | After | | | Security Type | One Year | | Five Years | | Ten Years | | Ten Years | | Total | | (In thousands) | Amortized Cost: | | | | | | | | | | Agency residential MBS | $ | — | | | $ | — | | | $ | — | | | $ | 2,592,344 | | | $ | 2,592,344 | | U.S. Treasury securities | 4,958 | | | 666,576 | | | 99,692 | | | — | | | 771,226 | | Agency commercial MBS | — | | | 202,143 | | | 320,570 | | | 17,736 | | | 540,449 | | Agency residential CMOs | — | | | — | | | 172,382 | | | 327,719 | | | 500,101 | | Municipal securities | — | | | 65,454 | | | 307,486 | | | 22,260 | | | 395,200 | | Corporate debt securities | — | | | 5,000 | | | 339,730 | | | — | | | 344,730 | | Private label residential CMOs | — | | | — | | | — | | | 198,992 | | | 198,992 | | Collateralized loan obligations | — | | | — | | | 70,330 | | | 38,838 | | | 109,168 | | Private label commercial MBS | — | | | — | | | — | | | 25,137 | | | 25,137 | | Asset-backed securities | — | | | — | | | — | | | 22,116 | | | 22,116 | | SBA securities | — | | | 3,408 | | | — | | | 12,952 | | | 16,360 | | Total | $ | 4,958 | | | $ | 942,581 | | | $ | 1,310,190 | | | $ | 3,258,094 | | | $ | 5,515,823 | | | | | | | | | | | | Fair Value: | | | | | | | | | | Agency residential MBS | $ | — | | | $ | — | | | $ | — | | | $ | 2,168,613 | | | $ | 2,168,613 | | U.S. Treasury securities | 4,959 | | | 582,194 | | | 85,930 | | | — | | | 673,083 | | Agency commercial MBS | — | | | 185,585 | | | 277,605 | | | 16,767 | | | 479,957 | | Agency residential CMOs | — | | | — | | | 149,975 | | | 289,252 | | | 439,227 | | Municipal securities | — | | | 58,119 | | | 264,120 | | | 20,550 | | | 342,789 | | Corporate debt securities | — | | | 4,725 | | | 275,788 | | | — | | | 280,513 | | Private label residential CMOs | — | | | — | | | — | | | 159,507 | | | 159,507 | | Collateralized loan obligations | — | | | — | | | 67,716 | | | 37,107 | | | 104,823 | | Private label commercial MBS | — | | | — | | | — | | | 23,200 | | | 23,200 | | Asset-backed securities | — | | | — | | | — | | | 21,725 | | | 21,725 | | SBA securities | — | | | 3,168 | | | — | | | 11,914 | | | 15,082 | | Total | $ | 4,959 | | | $ | 833,791 | | | $ | 1,121,134 | | | $ | 2,748,635 | | | $ | 4,708,519 | |
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Held-to-Maturity Investments Classified by Contractual Maturity Date |
The following table presents the contractual maturities of our securities held-to-maturity portfolio based on amortized cost and fair value as of the date indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | | | Due After | | Due After | | | | | | Due | | One Year | | Five Years | | Due | | | | Within | | Through | | Through | | After | | | Security Type | One Year | | Five Years | | Ten Years | | Ten Years | | Total | | (In thousands) | Amortized Cost: | | | | | | | | | | | | | | | | | | | | Municipal securities | $ | — | | | $ | — | | | $ | 368,095 | | | $ | 877,367 | | | $ | 1,245,462 | | Agency commercial MBS | — | | | — | | | 409,517 | | | 21,061 | | | 430,578 | | Private label commercial MBS | — | | | — | | | 36,193 | | | 311,930 | | | 348,123 | | U.S. Treasury securities | — | | | — | | | 185,581 | | | — | | | 185,581 | | Corporate debt securities | — | | | — | | | 10,211 | | | 59,747 | | | 69,958 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | — | | | $ | — | | | $ | 1,009,597 | | | $ | 1,270,105 | | | $ | 2,279,702 | | | | | | | | | | | | Fair Value: | | | | | | | | | | | | | | | | | | | | Municipal securities | $ | — | | | $ | — | | | $ | 348,295 | | | $ | 843,389 | | | $ | 1,191,684 | | Agency commercial MBS | — | | | — | | | 375,946 | | | 19,454 | | | 395,400 | | Private label commercial MBS | — | | | — | | | 33,057 | | | 280,454 | | | 313,511 | | U.S. Treasury securities | — | | | — | | | 172,594 | | | — | | | 172,594 | | Corporate debt securities | — | | | — | | | 8,000 | | | 39,623 | | | 47,623 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | $ | — | | | $ | — | | | $ | 937,892 | | | $ | 1,182,920 | | | $ | 2,120,812 | |
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