| 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 June 30, 2020 and December 31, 2019 are summarized below. | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2020 | | | | | | | | (in thousands) | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | U.S. Treasury securities | $ | 19,921 | | | $ | — | | | $ | — | | | $ | 19,921 | | | U.S. Government agency securities | 168,918 | | | 2,504 | | | (56) | | | 171,366 | | | Mortgage-backed securities issued by U.S. Government agencies | 860,773 | | | 3,721 | | | (66) | | | 864,428 | | | Mortgage-backed securities issued by U.S. Government sponsored enterprises | 4,293,563 | | | 150,689 | | | — | | | 4,444,252 | | | Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 1,191,630 | | | 21,597 | | | (146) | | | 1,213,081 | | | Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | 342,974 | | | 22,335 | | | (56) | | | 365,253 | | | State and municipal securities | 1,003 | | | 4 | | | — | | | 1,007 | | | Corporate debt securities and other debt securities | 119,573 | | | 40 | | | (1,428) | | | 118,185 | | | Total investment securities available for sale | $ | 6,998,355 | | | $ | 200,890 | | | $ | (1,752) | | | $ | 7,197,493 | | | | | | | | | | | 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 June 30, 2020 and December 31, 2019, investment securities with a carrying value of $2.49 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 June 30, 2020 and December 31, 2019 are presented below. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 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 | $ | 47,091 | | | $ | (56) | | | $ | — | | | $ | — | | | $ | 47,091 | | | $ | (56) | | | Mortgage-backed securities issued by U.S. Government agencies | 25,126 | | | (66) | | | — | | | — | | | 25,126 | | | (66) | | | Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | 142,634 | | | (146) | | | — | | | — | | | 142,634 | | | (146) | | | Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | 33,285 | | | (56) | | | — | | | — | | | 33,285 | | | (56) | | | Corporate debt securities and other debt securities | 42,782 | | | (1,428) | | | — | | | — | | | 42,782 | | | (1,428) | | | Total | $ | 290,918 | | | $ | (1,752) | | | $ | — | | | $ | — | | | $ | 290,918 | | | $ | (1,752) | | | | | | | | | | | | | | | 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 June 30, 2020, Synovus had 12 investment securities in a loss position for less than twelve months and no 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. During the latter part of the second quarter of 2020, as part of an overall strategic repositioning of the investment securities portfolio, Synovus realized net gains of $69.4 million from sales of investment securities, including losses of $5.7 million related to the sale of Synovus' remaining portfolio of asset-backed securities. Synovus has evaluated investment securities that are in an unrealized loss position as of June 30, 2020 and determined the following: 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 June 30, 2020. At June 30, 2020, these securities are rated investment grade and the decline in fair value was largely driven by liquidity and 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 June 30, 2020 are shown below. The expected life of MBSs 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, MBSs 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 June 30, 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 | $ | 19,921 | | | $ | — | | | $ | — | | | $ | — | | | $ | 19,921 | | | U.S. Government agency securities | 568 | | | 27,714 | | | 140,636 | | | — | | | 168,918 | | | Mortgage-backed securities issued by U.S. Government agencies | — | | | 1,398 | | | 715 | | | 858,660 | | | 860,773 | | | Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | | | 410 | | | 83,168 | | | 4,209,985 | | | 4,293,563 | | | Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | | | — | | | 273 | | | 1,191,357 | | | 1,191,630 | | | Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | — | | | 109,753 | | | 116,092 | | | 117,129 | | | 342,974 | | | State and municipal securities | — | | | — | | | 500 | | | 503 | | | 1,003 | | | Corporate debt securities and other debt securities | 24,049 | | | 84,869 | | | 8,655 | | | 2,000 | | | 119,573 | | | Total amortized cost | $ | 44,538 | | | $ | 224,144 | | | $ | 350,039 | | | $ | 6,379,634 | | | $ | 6,998,355 | | | | | | | | | | | | | Fair Value | | | | | | | | | | | U.S. Treasury securities | $ | 19,921 | | | $ | — | | | $ | — | | | $ | — | | | $ | 19,921 | | | U.S. Government agency securities | 571 | | | 27,770 | | | 143,025 | | | — | | | 171,366 | | | Mortgage-backed securities issued by U.S. Government agencies | — | | | 1,442 | | | 743 | | | 862,243 | | | 864,428 | | | Mortgage-backed securities issued by U.S. Government sponsored enterprises | — | | | 423 | | | 89,415 | | | 4,354,414 | | | 4,444,252 | | | Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises | — | | | — | | | 285 | | | 1,212,796 | | | 1,213,081 | | | Commercial mortgage-backed securities issued by U.S. Government agencies or sponsored enterprises | — | | | 116,639 | | | 125,274 | | | 123,340 | | | 365,253 | | | State and municipal securities | — | | | — | | | 501 | | | 506 | | | 1,007 | | | Corporate debt securities and other debt securities | 23,967 | | | 83,922 | | | 8,634 | | | 1,662 | | | 118,185 | | | Total fair value | $ | 44,459 | | | $ | 230,196 | | | $ | 367,877 | | | $ | 6,554,961 | | | $ | 7,197,493 | | | | | | | | | | | |
Proceeds from sales, gross gains, and gross losses on sales of securities available for sale for the three and six months ended June 30, 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 June 30, | | | | Six Months Ended June 30, | | | | (in thousands) | 2020 | | 2019 | | 2020 | | 2019 | | Proceeds from sales of investment securities available for sale | $ | 2,269,682 | | | $ | 104,434 | | | $ | 2,682,861 | | | $ | 1,746,673 | | | Gross realized gains on sales | 75,105 | | | — | | | 83,839 | | | 9,129 | | Gross realized losses on sales(1) | (5,696) | | | (1,845) | | | (5,695) | | | (10,900) | | | Investment securities gains, net | $ | 69,409 | | | $ | (1,845) | | | $ | 78,144 | | | $ | (1,771) | | | | | | | | | |
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