Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

The amortized cost and fair value of investment securities were as follows:



	Investment Securities Available-for-sale, At Fair Value
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
At March 31, 2020
Debt securities:
Government and government-sponsored enterprises	$	218,996	$	80	$	496	$	218,580
Obligations of states and political subdivisions	850,816		16,509		769		866,556
Mortgage-backed securities:
Residential agency	4,701,950		194,932		13		4,896,869
Residential non-agency	327,663		415		4,544		323,534
Commercial agency	653,969		27,769		2,156		679,582
Commercial non-agency	39,390		328		15		39,703
Total mortgage-backed debt securities	5,722,972		223,444		6,728		5,939,688
Corporate debt and trust preferred securities	451		—		51		400
Total investment securities available-for-sale	$	6,793,235	$	240,033	$	8,044	$	7,025,224
At December 31, 2019
Debt securities:
Government and government-sponsored enterprises	$	235,045	$	18	$	678	$	234,385
Obligations of states and political subdivisions	852,096		12,446		687		863,855
Mortgage-backed securities:
Residential agency	4,492,427		68,797		6,103		4,555,121
Residential non-agency	374,046		1,166		616		374,596
Commercial agency	645,814		8,639		2,049		652,404
Commercial non-agency	39,398		17		205		39,210
Total mortgage-backed debt securities	5,551,685		78,619		8,973		5,621,331
Corporate debt and trust preferred securities	451		—		21		430
Total investment securities available-for-sale	$	6,639,277	$	91,083	$	10,359	$	6,720,001



	Investment Securities Held-to-Maturity
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
At March 31, 2020
Residential agency mortgage-backed securities	$	131,947	$	10,370	$	15	$	142,302
Corporate debt and trust preferred securities	3,672		—		—		3,672
Total investment securities held-to-maturity ⁽¹⁾	$	135,619	$	10,370	$	15	$	145,974
At December 31, 2019
Residential agency mortgage-backed securities	$	135,769	$	5,576	$	177	$	141,168
Corporate debt and trust preferred securities	3,676		—		—		3,676
Total investment securities held-to-maturity	$	139,445	$	5,576	$	177	$	144,844


(1)	The adoption of CECL was inconsequential to held-to-maturity investment securities. At March 31, 2020 there was no allowance for credit losses for investment securities held-to-maturity.

Accrued interest receivable for investment securities was $25.3 million and $21.6 million at March 31, 2020 and December 31, 2019, respectively, and is is included in other assets on the Consolidated Statements of Financial Condition.

Gross unrealized losses and fair value of available-for-sale investment securities aggregated by investment category and the length of time the securities were in a continuous loss position were as follows:



	At March 31, 2020
	Less than 12 months				12 months or more				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Investment securities available-for-sale
Debt securities:
Government and government sponsored enterprises	$	182,694	$	496	$	—	$	—	$	182,694	$	496
Obligations of states and political subdivisions	145,406		769		—		—		145,406		769
Mortgage-backed securities:
Residential agency	480		13		—		—		480		13
Residential non-agency	251,453		4,544		—		—		251,453		4,544
Commercial agency	89,607		2,156		—		—		89,607		2,156
Commercial non-agency	2,004		15		—		—		2,004		15
Total mortgage-backed debt securities	343,544		6,728		—		—		343,544		6,728
Corporate debt and trust preferred securities	400		51		—		—		400		51
Total investment securities available-for-sale	$	672,044	$	8,044	$	—	$	—	$	672,044	$	8,044



	At December 31, 2019
	Less than 12 months				12 months or more				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Investment securities available-for-sale
Debt securities:
Government and government sponsored enterprises	$	226,177	$	678	$	—	$	—	$	226,177	$	678
Obligations of states and political subdivisions	60,639		687		—		—		60,639		687
Mortgage-backed securities:
Residential agency	667,511		3,586		200,534		2,517		868,045		6,103
Residential non-agency	140,403		616		—		—		140,403		616
Commercial agency	176,880		2,049		—		—		176,880		2,049
Commercial non-agency	25,560		205		—		—		25,560		205
Total mortgage-backed debt securities	1,010,354		6,456		200,534		2,517		1,210,888		8,973
Corporate debt and trust preferred securities	430		21		—		—		430		21
Total investment securities available-for-sale	$	1,297,600	$	7,842	$	200,534	$	2,517	$	1,498,134	$	10,359

The adoption of CECL did not have a material impact on our accounting for available-for-sale investment securities. At March 31, 2020 there were 598 available-for-sale investment securities in an unrealized loss position. We have assessed each investment security with unrealized losses for credit impairment. As part of that assessment we evaluated and concluded that it is more-likely-than-not that the Corporation will not be required and does not intend to sell any of the investment securities prior to recovery of the amortized cost. Unrealized losses on investment securities were due to credit spreads and interest rates.

The gross gains and losses on sales of investment securities were as follows:



	Three Months Ended March 31,
(In thousands)	2020		2019
Gross realized gains	$	—	$	1,622
Gross realized losses	—		1,175
Recoveries on previously impaired investment securities held-to-maturity	—		4
Net gains (losses) on investment securities	$	—	$	451

The amortized cost and fair value of investment securities by final contractual maturity were as follows. Securities with multiple maturity dates are classified in the period of final maturity. The final contractual maturities do not consider possible prepayments and therefore expected maturities may differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	At March 31, 2020				At December 31, 2019
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Investment Securities Available-for-Sale
Due in one year or less	$	66,096	$	66,021	$	66,124	$	66,112
Due in 1-5 years	188,565		189,294		191,364		192,065
Due in 5-10 years	551,643		569,940		547,813		555,523
Due after 10 years	5,986,931		6,199,969		5,833,976		5,906,301
Total investment securities available-for-sale	$	6,793,235	$	7,025,224	$	6,639,277	$	6,720,001
Investment Securities Held-to-Maturity
Due in 1-5 years	$	3,550	$	3,550	$	3,550	$	3,550
Due in 5-10 years	55		61		58		64
Due after 10 years	132,014		142,363		135,837		141,230
Total investment securities held-to-maturity	$	135,619	$	145,974	$	139,445	$	144,844

At March 31, 2020 and December 31, 2019, investment securities with a carrying value of $1.2 billion and $627.0 million, respectively, were pledged as collateral to secure certain deposits and borrowings.