| 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 Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | U.S. Treasury securities | $ | 19,918 | | | $ | — | | | $ | — | | | $ | 19,918 | | | U.S. Government agency securities | 72,424 | | | 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 enterprises | 311,235 | | | 24,502 | | | — | | | 335,737 | | | State and municipal securities | 1,007 | | | 2 | | | (4) | | | 1,005 | | | Asset-backed securities | 154,954 | | | 150 | | | (9,129) | | | 145,975 | | | Corporate debt securities and other debt securities | 129,376 | | | 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 Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | U.S. Treasury securities | | $ | 19,855 | | | $ | — | | | $ | — | | | $ | 19,855 | | | U.S. Government agency securities | 35,499 | | | 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 enterprises | 357,291 | | | 14,301 | | | — | | | 371,592 | | | State and municipal securities | 2,069 | | | 6 | | | — | | | 2,075 | | | Asset-backed securities | 323,237 | | | 4,315 | | | (152) | | | 327,400 | | | Corporate debt securities and other debt securities | 144,410 | | | 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 Months | | | | 12 Months of Longer | | | | Total | | | | (in thousands) | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross 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 securities | 503 | | | (4) | | | — | | | — | | | 503 | | | (4) | | | Asset-backed securities | 140,993 | | | (9,129) | | | — | | | — | | | 140,993 | | | (9,129) | | | Corporate debt securities and other debt securities | 105,446 | | | (4,675) | | | — | | | — | | | 105,446 | | | (4,675) | | | Total | $ | 285,770 | | | $ | (13,847) | | | $ | 32 | | | $ | (1) | | | $ | 285,802 | | | $ | (13,848) | | | | | | | | | | | | | | | December 31, 2019 | | | | | | | | | | | | Less than 12 Months | | | | 12 Months of Longer | | | | Total | | | | (in thousands) | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross 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 securities | 37,156 | | | (116) | | | 4,954 | | | (36) | | | 42,110 | | | (152) | | | Corporate debt securities and other debt securities | 9,505 | | | (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 securities | 568 | | | 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 securities | 24,127 | | | 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 securities | 578 | | | 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 securities | 24,068 | | | 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) | 2020 | | 2019 | | | | | | Proceeds from sales of investment securities available for sale | $ | 413,180 | | | $ | 1,642,239 | | | | | | | Gross realized gains on sales | 8,734 | | | 9,130 | | | | | | | Gross realized losses on sales | — | | | (9,055) | | | | | | | Investment securities gains, net | $ | 8,734 | | | $ | 75 | | | | | | | | | | | | | |
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