Investment Securities

6 Months Ended

Jun. 30, 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 June 30, 2020
Debt securities:
Government and government-sponsored enterprises	$	209,771	$	504	$	156	$	210,119
Obligations of states and political subdivisions	810,091		30,967		2,913		838,145
Mortgage-backed securities:
Residential agency	4,981,205		192,830		523		5,173,512
Residential non-agency	265,927		4,540		35		270,432
Commercial agency	644,458		40,048		—		684,506
Commercial non-agency	39,378		2,843		—		42,221
Total mortgage-backed debt securities	5,930,968		240,261		558		6,170,671
Corporate debt and trust preferred securities	453		—		15		438
Total investment securities available-for-sale	$	6,951,283	$	271,732	$	3,642	$	7,219,373
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 June 30, 2020
Residential agency mortgage-backed securities	$	126,429	$	11,006	$	—	$	137,435
Corporate debt and trust preferred securities	3,672		—		—		3,672
Total investment securities held-to-maturity ⁽¹⁾	$	130,101	$	11,006	$	—	$	141,107
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 June 30, 2020 there was no ACL for investment securities held-to-maturity.

Accrued interest receivable for investment securities was $21.2 million and $21.6 million at June 30, 2020 and December 31, 2019, respectively, and 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 June 30, 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	$	58,504	$	156	$	—	$	—	$	58,504	$	156
Obligations of states and political subdivisions	206,197		2,913		—		—		206,197		2,913
Mortgage-backed securities:
Residential agency	292,534		523		—		—		292,534		523
Residential non-agency	20,079		35		—		—		20,079		35
Commercial agency	—		—		—		—		—		—
Commercial non-agency	—		—		—		—		—		—
Total mortgage-backed debt securities	312,613		558		—		—		312,613		558
Corporate debt and trust preferred securities	438		15		—		—		438		15
Total investment securities available-for-sale	$	577,752	$	3,642	$	—	$	—	$	577,752	$	3,642



	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 was inconsequential to available-for-sale investment securities. At June 30, 2020 there was no ACL for investment securities available-for-sale. At June 30, 2020 there were 805 available-for-sale investment securities in an unrealized loss position. Management assessed each investment security with unrealized losses for credit impairment. Substantially all unrealized losses on investment securities were due to credit spreads and interest rates rather than credit impairment. As part of that assessment management 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.

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



	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Gross realized gains	$	—	$	1,533	$	—	$	3,155
Gross realized losses	—		467		—		1,642
Recoveries on previously impaired investment securities held-to-maturity	8		—		8		4
Net gains on investment securities	$	8	$	1,066	$	8	$	1,517

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 June 30, 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	$	63,391	$	63,440	$	66,124	$	66,112
Due in 1-5 years	182,753		184,351		191,364		192,065
Due in 5-10 years	558,013		588,103		547,813		555,523
Due after 10 years	6,147,126		6,383,479		5,833,976		5,906,301
Total investment securities available-for-sale	$	6,951,283	$	7,219,373	$	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	52		58		58		64
Due after 10 years	126,499		137,499		135,837		141,230
Total investment securities held-to-maturity	$	130,101	$	141,107	$	139,445	$	144,844

At June 30, 2020 and December 31, 2019, investment securities with a carrying value of $1.3 billion and $627.0 million, respectively, were pledged as collateral to secure certain deposits and borrowings.