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Investment Securities Available for Sale
 3 Months Ended
Mar. 31, 2020
Investments [Abstract]  
Investment Securities Available for Sale
Note 3 - Investment Securities Available for Sale
The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available for sale at March 31, 2020 and December 31, 2019 are summarized below.
March 31, 2020
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
U.S. Treasury securities$19,918  $—  $—  $19,918  
U.S. Government agency securities72,424  2,469  (37) 74,856  
Mortgage-backed securities issued by U.S. Government agencies 53,557  1,866  (1) 55,422  
Mortgage-backed securities issued by U.S. Government sponsored enterprises 5,312,698  237,127  —  5,549,825  
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 601,585  27,297  (2) 628,880  
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises311,235  24,502  —  335,737  
State and municipal securities1,007  2  (4) 1,005  
Asset-backed securities154,954  150  (9,129) 145,975  
Corporate debt securities and other debt securities129,376  921  (4,675) 125,622  
Total investment securities available for sale$6,656,754  $294,334  $(13,848) $6,937,240  
December 31, 2019
(in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
U.S. Treasury securities  $19,855  $—  $—  $19,855  
U.S. Government agency securities35,499  1,042  —  36,541  
Mortgage-backed securities issued by U.S. Government agencies 56,328  560  (72) 56,816  
Mortgage-backed securities issued by U.S. Government sponsored enterprises 5,079,396  103,495  (2,076) 5,180,815  
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 629,706  7,349  (204) 636,851  
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises357,291  14,301  —  371,592  
State and municipal securities2,069  6  —  2,075  
Asset-backed securities323,237  4,315  (152) 327,400  
Corporate debt securities and other debt securities144,410  2,317  (2) 146,725  
Total investment securities available for sale$6,647,791  $133,385  $(2,506) $6,778,670  
At March 31, 2020 and December 31, 2019, investment securities with a carrying value of $2.16 billion and $1.71 billion, respectively, were pledged to secure certain deposits and other liabilities, as required by law or contractual agreements.
Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2020 and December 31, 2019 are presented below.
March 31, 2020
Less than 12 Months12 Months of LongerTotal
(in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Government agency securities$38,502  $(37) $—  $—  $38,502  $(37) 
Mortgage-backed securities issued by U.S. Government agencies 6  (1) —  —  6  (1) 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 320  (1) 32  (1) 352  (2) 
State and municipal securities503  (4) —  —  503  (4) 
Asset-backed securities140,993  (9,129) —  —  140,993  (9,129) 
Corporate debt securities and other debt securities105,446  (4,675) —  —  105,446  (4,675) 
Total$285,770  $(13,847) $32  $(1) $285,802  $(13,848) 
December 31, 2019
Less than 12 Months12 Months of LongerTotal
(in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Mortgage-backed securities issued by U.S. Government agencies $19,543  $(70) $355  $(2) $19,898  $(72) 
Mortgage-backed securities issued by U.S. Government sponsored enterprises 768,040  (2,076) —  —  768,040  (2,076) 
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises 57,670  (204) —  —  57,670  (204) 
Asset-backed securities37,156  (116) 4,954  (36) 42,110  (152) 
Corporate debt securities and other debt securities9,505  (2) —  —  9,505  (2) 
Total$891,914  $(2,468) $5,309  $(38) $897,223  $(2,506) 
As of March 31, 2020, Synovus had 17 investment securities in a loss position for less than twelve months and 3 investment securities in a loss position for twelve months or longer. At December 31, 2019, Synovus had 26 investment securities in a loss position for less than twelve months and 5 investment securities in a loss position for twelve months or longer. Synovus does not intend to sell investment securities in an unrealized loss position prior to the recovery of the unrealized loss, which may not be until maturity, and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the securities that are in an unrealized loss position prior to the respective securities' recovery of all such unrealized losses. As such, no write-downs to the amortized cost basis of the portfolio were recorded in the current period.
Synovus has evaluated investment securities that are in an unrealized loss position as of March 31, 2020 and determined the following by investment category:
Asset-backed securities - Synovus considers the amount of credit support available to absorb losses for these holdings. For securities in which adequate credit support is not available, Synovus compares the present value of expected cash flows to the amortized cost of the individual securities. Assumptions used in cash flow determination include expected future default rates, severity of loss, and prepayments. The analysis performed at March 31, 2020 indicated the decline in fair value of asset-backed
securities was unrelated to credit losses and was instead attributable to wider market spreads. As such, no ACL was recorded during the period and unrealized losses were recognized in other comprehensive income, net of tax.
Corporate debt securities - Synovus considers the credit quality of each issuer and whether payments of principal and interest are current. None of the investment securities described above are past due as of March 31, 2020. At March 31, 2020, these securities are rated investment grade and the decline in fair value was largely driven by wider market spreads. As such, no ACL was recorded during the period and unrealized losses were recognized in other comprehensive income, net of tax.
The amortized cost and fair value by contractual maturity of investment securities available for sale at March 31, 2020 are shown below. The expected life of mortgage-backed securities or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, mortgage-backed securities and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.
Distribution of Maturities at March 31, 2020
(in thousands)Within One
Year		1 to 5
Years		5 to 10
Years		More Than
10 Years		Total
Amortized Cost
U.S. Treasury securities$19,918  $—  $—  $—  $19,918  
U.S. Government agency securities568  3,367  43,501  24,988  72,424  
Mortgage-backed securities issued by U.S. Government agencies —  1,542  803  51,212  53,557  
Mortgage-backed securities issued by U.S. Government sponsored enterprises —  517  86,523  5,225,658  5,312,698  
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises —  —  296  601,289  601,585  
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises—  109,774  116,210  85,251  311,235  
State and municipal securities—  —  —  1,007  1,007  
Asset-backed securities—  —  154,954  —  154,954  
Corporate debt securities and other debt securities24,127  94,619  8,630  2,000  129,376  
Total amortized cost$44,613  $209,819  $410,917  $5,991,405  $6,656,754  
Fair Value
U.S. Treasury securities$19,918  $—  $—  $—  $19,918  
U.S. Government agency securities578  3,426  45,897  24,955  74,856  
Mortgage-backed securities issued by U.S. Government agencies —  1,588  831  53,003  55,422  
Mortgage-backed securities issued by U.S. Government sponsored enterprises —  536  92,059  5,457,230  5,549,825  
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises —  —  309  628,571  628,880  
Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises—  116,257  129,175  90,305  335,737  
State and municipal securities—  —  —  1,005  1,005  
Asset-backed securities—  —  145,975  —  145,975  
Corporate debt securities and other debt securities24,068  92,574  7,418  1,562  125,622  
Total fair value$44,564  $214,381  $421,664  $6,256,631  $6,937,240  
Proceeds from sales, gross gains, and gross losses on sales of securities available for sale for the three months ended March 31, 2020 and 2019 are presented below. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.
Three Months Ended March 31,
(in thousands)20202019
Proceeds from sales of investment securities available for sale$413,180  $1,642,239  
Gross realized gains on sales8,734  9,130  
Gross realized losses on sales—  (9,055) 
Investment securities gains, net$8,734  $75