Investment securities include investment securities available for sale, marketable equity securities, and investment securities held to maturity. The investment securities portfolio consisted of the following at the dates indicated (in thousands):



	June 30, 2020
	Amortized Cost		Gross Unrealized					Carrying Value ⁽¹⁾
	Amortized Cost		Gains		Losses			Carrying Value ⁽¹⁾
Investment securities available for sale:
U.S. Treasury securities	$	75,217	$	1,963	$	—		$	77,180
U.S. Government agency and sponsored enterprise residential MBS	2,371,729		13,309		(5,198		)	2,379,840
U.S. Government agency and sponsored enterprise commercial MBS	455,344		9,859		(926		)	464,277
Private label residential MBS and CMOs	1,101,390		16,670		(1,974		)	1,116,086
Private label commercial MBS	2,075,683		16,735		(48,798		)	2,043,620
Single family rental real estate-backed securities	608,019		11,381		(1,193		)	618,207
Collateralized loan obligations	1,166,929		—		(38,176		)	1,128,753
Non-mortgage asset-backed securities	255,854		6,251		(574		)	261,531
State and municipal obligations	239,502		19,993		—			259,495
SBA securities	247,914		2,286		(4,258		)	245,942
	8,597,581		$	98,447	$	(101,097	)	8,594,931
Investment securities held to maturity	10,000							10,000
	$	8,607,581						8,604,931
Marketable equity securities								88,697
								$	8,693,628



	December 31, 2019
	Amortized Cost		Gross Unrealized					Carrying Value ⁽¹⁾
	Amortized Cost		Gains		Losses			Carrying Value ⁽¹⁾
Investment securities available for sale:
U.S. Treasury securities	$	70,243	$	219	$	(137	)	$	70,325
U.S. Government agency and sponsored enterprise residential MBS	2,018,853		9,835		(6,513		)	2,022,175
U.S. Government agency and sponsored enterprise commercial MBS	366,787		4,920		(731		)	370,976
Private label residential MBS and CMOs	1,001,337		11,851		(1,011		)	1,012,177
Private label commercial MBS	1,719,228		6,650		(1,194		)	1,724,684
Single family rental real estate-backed securities	467,459		4,016		(1,450		)	470,025
Collateralized loan obligations	1,204,905		322		(7,861		)	1,197,366
Non-mortgage asset-backed securities	194,171		1,780		(1,047		)	194,904
State and municipal obligations	257,528		15,774		—			273,302
SBA securities	359,808		4,587		(1,664		)	362,731
	7,660,319		$	59,954	$	(21,608	)	7,698,665
Investment securities held to maturity	10,000							10,000
	$	7,670,319						7,708,665
Marketable equity securities								60,572
								$	7,769,237

Investment securities held to maturity at June 30, 2020 and December 31, 2019 consisted of one State of Israel bond maturing in 2024. At June 30, 2020 and December 31, 2019, accrued interest receivable on investments totaled $23 million and $28 million, respectively, and is included in other assets in the accompanying consolidated balance sheets.



	Amortized Cost		Fair Value
Due in one year or less	$	908,180	$	914,970
Due after one year through five years	4,875,569		4,830,499
Due after five years through ten years	2,304,114		2,332,121
Due after ten years	509,718		517,341
	$	8,597,581	$	8,594,931

The carrying value of securities pledged as collateral for FHLB advances, public deposits, interest rate swaps and to secure borrowing capacity at the FRB totaled $4.8 billion and $2.4 billion at June 30, 2020 and December 31, 2019, respectively.



	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
Proceeds from sale of investment securities available for sale	$	240,805	$	850,527		$	547,337		$	1,626,250

Gross realized gains:
Investment securities available for sale	$	5,723	$	4,631		$	7,255		$	8,956
Gross realized losses:
Investment securities available for sale	—		(716		)	(2		)	(724		)
Net realized gain	5,723		3,915			7,253			8,232

Net unrealized gains (losses) on marketable equity securities recognized in earnings	1,113		201			(3,870		)	1,669

Gain on investment securities, net	$	6,836	$	4,116		$	3,383		$	9,901

The following tables present the aggregate fair value and the aggregate amount by which amortized cost exceeded fair value for investment securities available for sale in unrealized loss positions aggregated by investment category and length of time that individual securities had been in continuous unrealized loss positions at the dates indicated (in thousands). No ACL was recorded for any investment securities available for sale in an unrealized loss position at June 30, 2020.



	June 30, 2020
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government agency and sponsored enterprise residential MBS	$	604,143	$	(895	)	$	517,239	$	(4,303	)	$	1,121,382	$	(5,198	)
U.S. Government agency and sponsored enterprise commercial MBS	39,892		(108		)	73,856		(818		)	113,748		(926		)
Private label residential MBS and CMOs	205,524		(1,974		)	—		—			205,524		(1,974		)
Private label commercial MBS	1,302,037		(45,341		)	56,875		(3,457		)	1,358,912		(48,798		)
Single family rental real estate-backed securities	184,785		(1,193		)	—		—			184,785		(1,193		)
Collateralized loan obligations	591,422		(15,873		)	537,331		(22,303		)	1,128,753		(38,176		)
Non-mortgage asset-backed securities	13,857		(45		)	13,472		(529		)	27,329		(574		)
SBA securities	35,136		(326		)	109,837		(3,932		)	144,973		(4,258		)
	$	2,976,796	$	(65,755	)	$	1,308,610	$	(35,342	)	$	4,285,406	$	(101,097	)



	December 31, 2019
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	20,056	$	(137	)	$	—	$	—		$	20,056	$	(137	)
U.S. Government agency and sponsored enterprise residential MBS	579,076		(3,862		)	243,839		(2,651		)	822,915		(6,513		)
U.S. Government agency and sponsored enterprise commercial MBS	99,610		(696		)	6,477		(35		)	106,087		(731		)
Private label residential MBS and CMOs	180,398		(838		)	41,636		(173		)	222,034		(1,011		)
Private label commercial MBS	648,761		(1,060		)	76,302		(134		)	725,063		(1,194		)
Single family rental real estate-backed securities	241,915		(1,445		)	5,460		(5		)	247,375		(1,450		)
Collateralized loan obligations	63,310		(846		)	682,076		(7,015		)	745,386		(7,861		)
Non-mortgage asset-backed securities	78,964		(962		)	7,883		(85		)	86,847		(1,047		)
SBA securities	10,236		(2		)	142,204		(1,662		)	152,440		(1,664		)
	$	1,922,326	$	(9,848	)	$	1,205,877	$	(11,760	)	$	3,128,203	$	(21,608	)

The Company monitors its investment securities available for sale for credit loss impairment on an individual security basis. No securities were determined to be credit loss impaired during the three and six months ended June 30, 2020 or other than temporarily impaired during the three and six months ended June 30, 2019. The Company does not intend to sell securities that are in significant unrealized loss positions at June 30, 2020 and it is not more likely than not that the Company will be required to sell these securities before recovery of the amortized cost basis, which may be at maturity. In making this determination, the Company considered its current and projected liquidity position, its investment policy as to permissible holdings and concentration limits, regulatory requirements and other relevant factors.

At June 30, 2020, 224 securities available for sale were in unrealized loss positions. The amount of impairment related to 64 of these securities was considered insignificant both individually and in the aggregate, totaling approximately $398 thousand and no further analysis with respect to these securities was considered necessary.

Unrealized losses at June 30, 2020, particularly in the private label CMBS and CLO asset classes, were primarily attributable to widening spreads, resulting in large part from market response to, and dislocation in the wake of, the COVID-19 pandemic.

At June 30, 2020, twenty-eight U.S. Government agency and sponsored enterprise residential MBS, five U.S. Government agency and sponsored enterprise commercial MBS and eleven SBA securities were in unrealized loss positions. The timely payment of principal and interest on these securities is explicitly or implicitly guaranteed by the U.S. Government. As such, there is an assumption of zero credit loss and the Company expects to recover the entire amortized cost basis of these securities.

None of the impaired securities had missed principal or interest payments or had been downgraded by a NRSRO at June 30, 2020. The Company performed an analysis comparing the present value of cash flows expected to be collected to the amortized cost basis of impaired securities. This analysis was based on a scenario that we believe to be generally more severe than our reasonable and supportable economic forecast at June 30, 2020, and incorporated assumptions about voluntary prepayment rates, collateral defaults, delinquencies, severity and other relevant factors as described further below. Our analysis also considered the structural characteristics of each security and the level of credit enhancement provided by that structure. Based on the results of this analysis, the Company expects to recover the entire amortized cost basis of its impaired AFS securities at June 30, 2020. No ACL was considered necessary at June 30, 2020.

At June 30, 2020,seven private label residential MBS and CMOs were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, voluntary prepayment rates, loss severity, delinquencies and recovery lag. In developing those assumptions, we took into account collateral quality measures such as FICO, LTV, documentation, loan type, property type, agency availability criteria and performing status. We also regularly monitor sector data including home price appreciation, forbearance, delinquency and prepay trends as well as other economic data which would indicate further stress in the sector. Our June 30, 2020 analysis projected weighted average collateral losses for this category of 4% compared to weighted average credit support of 17%. As of June 30, 2020, 88% of the impaired securities in this category, based on carrying value, were externally rated AAA, and one security representing 12% of impaired securities in this category was not externally rated; this security was internally rated investment grade.

At June 30, 2020, seventy private label commercial MBS were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, voluntary prepayment rates, loss severity, delinquencies and recovery lag. In developing those assumptions, we took into account collateral quality and type, loan size, loan purpose and other qualitative factors. We also regularly monitor collateral watchlists, bankruptcy data, special servicing trends, delinquency and other economic data which would indicate further stress in the sector. Our June 30, 2020 analysis projected weighted average collateral losses for this category of 13% compared to weighted average credit support of 42%. As of June 30, 2020, 83% of impaired securities in this category, based on carrying value were externally rated AAA, 12% were rated AA and 5% were rated A.

At June 30, 2020, ten single family rental real estate-backed securities were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, delinquencies and recovery lag. We regularly monitor sector data including home price appreciation, forbearance, delinquency and prepay trends as well as other economic data which would indicate further stress in the sector. Our June 30, 2020 analysis projected weighted average collateral losses for this category of 13% compared to weighted average credit support of 49%. As of June 30, 2020, 87% of the impaired securities in this category, based on carrying value, were externally rated AAA and 13% were rated AA.

At June 30, 2020, twenty-six collateralized loan obligations were in unrealized loss positions. Leveraged loans underlying these securities have seen pricing pressure as the market looks to evaluate ability of borrowers to maintain payments. Uncertainties surrounding the broad economy and how they may translate into rating downgrades and defaults as the COVID-19 crisis plays out have negatively impacted pricing in the leveraged loan market. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, and delinquencies, calibrated to take into account idiosyncratic risks associated with the underlying collateral. In developing those assumptions, we took into account each sector’s performance pre, during and post the 2008 financial crisis. We regularly engage with bond managers to monitor trends in underlying collateral including potential downgrades and subsequent cash flow diversions, liquidity, ratings migration, and any other relevant developments. Our June 30, 2020 analysis projected weighted average collateral losses for this category of 21% compared to weighted average credit support of 41%. As of June 30, 2020, 84% of

At June 30, 2020, three non-mortgage asset-backed securities were in unrealized loss positions. These securities are backed by student loan collateral. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, delinquencies, voluntary prepayment rates and recovery lag. In developing those assumptions, we took into account collateral type, delineated by whether collateral consisted of loans to borrowers in school, refinancing, or a mixture. Our June 30, 2020 analysis projected weighted average collateral losses for this category of 14% compared to weighted average credit support of 25%. As of June 30, 2020, 50% of the impaired securities in this category, based on carrying value, were externally rated AAA and 50% were rated AA.