Investment Securities (Tables)

9 Months Ended

Sep. 30, 2018



(In thousands)	September 30, 2018		December 31, 2017
Available for sale debt securities	$	8,674,986	$	8,725,442
Trading debt securities	19,676		18,269
Equity securities:
Readily determinable fair value	2,765		48,838
No readily determinable fair value	1,702		1,753
Other:
Federal Reserve Bank stock	33,498		33,253
Federal Home Loan Bank stock	10,000		10,000
Private equity investments	83,622		55,752
Total investment securities	$	8,826,249	$	8,893,307

Summary Of Available For Sale Investment Securities By Maturity Groupings

A summary of the available for sale debt securities by maturity groupings as of September 30, 2018 is shown below. The investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as the FHLMC, FNMA, GNMA and FDIC, in addition to non-agency mortgage-backed securities, which have no guarantee but are collateralized by commercial and residential mortgages. Also included are certain other asset-backed securities, which are primarily collateralized by credit cards, automobiles, student loans, and commercial loans. These securities differ from traditional debt securities primarily in that they may have uncertain maturity dates and are priced based on estimated prepayment rates on the underlying collateral.



(In thousands)	Amortized Cost		Fair Value
U.S. government and federal agency obligations:
Within 1 year	$	23,624	$	23,532
After 1 but within 5 years	646,024		632,363
After 5 but within 10 years	183,500		177,790
After 10 years	69,283		67,430
Total U.S. government and federal agency obligations	922,431		901,115
Government-sponsored enterprise obligations:
Within 1 year	28,635		28,607
After 1 but within 5 years	121,588		119,494
After 5 but within 10 years	34,985		33,587
After 10 years	42,872		39,428
Total government-sponsored enterprise obligations	228,080		221,116
State and municipal obligations:
Within 1 year	124,946		125,248
After 1 but within 5 years	642,000		640,269
After 5 but within 10 years	551,184		545,707
After 10 years	79,516		77,674
Total state and municipal obligations	1,397,646		1,388,898
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,351,134		3,266,524
Non-agency mortgage-backed securities	1,103,357		1,091,382
Asset-backed securities	1,489,750		1,475,425
Total mortgage and asset-backed securities	5,944,241		5,833,331
Other debt securities:
Within 1 year	9,002		8,984
After 1 but within 5 years	257,635		251,880
After 5 but within 10 years	73,254		69,662
Total other debt securities	339,891		330,526
Total available for sale debt securities	$	8,832,289	$	8,674,986

Available For Sale Securities Unrealized Gains And Losses By Security Type

For debt securities classified as available for sale, the following table shows the unrealized gains and losses (pre-tax) in AOCI, by security type.



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2018
U.S. government and federal agency obligations	$	922,431	$	41	$	(21,357	)	$	901,115
Government-sponsored enterprise obligations	228,080		—		(6,964		)	221,116
State and municipal obligations	1,397,646		3,541		(12,289		)	1,388,898
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,351,134		3,875		(88,485		)	3,266,524
Non-agency mortgage-backed securities	1,103,357		6,236		(18,211		)	1,091,382
Asset-backed securities	1,489,750		2,174		(16,499		)	1,475,425
Total mortgage and asset-backed securities	5,944,241		12,285		(123,195		)	5,833,331
Other debt securities	339,891		—		(9,365		)	330,526
Total	$	8,832,289	$	15,867	$	(173,170	)	$	8,674,986
December 31, 2017
U.S. government and federal agency obligations	$	917,494	$	4,096	$	(4,443	)	$	917,147
Government-sponsored enterprise obligations	408,266		26		(1,929		)	406,363
State and municipal obligations	1,592,707		21,413		(2,754		)	1,611,366
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,046,701		17,956		(23,744		)	3,040,913
Non-agency mortgage-backed securities	903,920		6,710		(4,837		)	905,793
Asset-backed securities	1,495,380		2,657		(5,237		)	1,492,800
Total mortgage and asset-backed securities	5,446,001		27,323		(33,818		)	5,439,506
Other debt securities	350,988		1,250		(1,178		)	351,060
Total	$	8,715,456	$	54,108	$	(44,122	)	$	8,725,442

Cash Flow Model Inputs Used To Calculate Credit Losses

ignificant inputs to the cash flow models used to calculate the credit losses on these securities at September 30, 2018 included the following:



Significant Inputs	Range
Prepayment CPR	0%	-	25%
Projected cumulative default	12%	-	51%
Credit support	0%	-	20%
Loss severity	14%	-	63%

Changes In Recorded Credit Losses

The following table presents a rollforward of the cumulative OTTI credit losses recognized in earnings on all available for sale debt securities.



	For the Nine Months Ended September 30
(In thousands)	2018			2017
Cumulative OTTI credit losses at January 1	$	14,199		$	14,080
Credit losses on debt securities for which impairment was not previously recognized	58			98
Credit losses on debt securities for which impairment was previously recognized	10			274
Increase in expected cash flows that are recognized over remaining life of security	(138		)	(207		)
Cumulative OTTI credit losses at September 30	$	14,129		$	14,245

Securities With Unrealized Losses And Length Of Impairment Period

ecurities with unrealized losses recorded in AOCI are shown in the table below, along with the length of the impairment period.



	Less than 12 months				12 months or longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2018
U.S. government and federal agency obligations	$	572,747	$	12,285	$	270,313	$	9,072	$	843,060	$	21,357
Government-sponsored enterprise obligations	139,520		3,909		81,596		3,055		221,116		6,964
State and municipal obligations	715,673		7,472		130,190		4,817		845,863		12,289
Mortgage and asset-backed securities:
Agency mortgage-backed securities	1,958,646		42,485		1,039,348		46,000		2,997,994		88,485
Non-agency mortgage-backed securities	680,691		9,372		374,601		8,839		1,055,292		18,211
Asset-backed securities	735,808		9,758		422,531		6,741		1,158,339		16,499
Total mortgage and asset-backed securities	3,375,145		61,615		1,836,480		61,580		5,211,625		123,195
Other debt securities	258,019		5,813		72,507		3,552		330,526		9,365
Total	$	5,061,104	$	91,094	$	2,391,086	$	82,076	$	7,452,190	$	173,170
December 31, 2017
U.S. government and federal agency obligations	$	618,617	$	4,443	$	—	$	—	$	618,617	$	4,443
Government-sponsored enterprise obligations	286,393		1,712		49,766		217		336,159		1,929
State and municipal obligations	282,843		1,752		49,339		1,002		332,182		2,754
Mortgage and asset-backed securities:
Agency mortgage-backed securities	1,320,689		9,433		619,300		14,311		1,939,989		23,744
Non-agency mortgage-backed securities	577,017		2,966		153,813		1,871		730,830		4,837
Asset-backed securities	786,048		3,168		264,295		2,069		1,050,343		5,237
Total mortgage and asset-backed securities	2,683,754		15,567		1,037,408		18,251		3,721,162		33,818
Other debt securities	144,090		727		20,202		451		164,292		1,178
Total	$	4,015,697	$	24,201	$	1,156,715	$	19,921	$	5,172,412	$	44,122

Proceeds From Sales Of Securities And Components Of Investment Securities Gains And Losses

The following tables present proceeds from sales of securities and the components of investment securities gains and losses which have been recognized in earnings.



	For the Nine Months Ended September 30
(In thousands)	2018			2017
Proceeds from sales of securities:
Available for sale debt securities	$	153,066		$	367,453
Equity securities	39,981			—
Other	—			1,583
Total proceeds	$	193,047		$	369,036

Investment securities gains (losses), net:
Available for sale debt securities:
Losses realized on called bonds	$	—		$	(254	)
Gains realized on sales	430			592
Losses realized on sales	—			(568		)
Other-than-temporary impairment recognized on debt securities	(68		)	(372		)
Equity securities:
Gains realized on donations of securities	—			6,707
Gains realized on sales	102			—
Losses realized on sales	(8,917		)	—
Fair value adjustments, net	2,723			—
Other:
Gains realized on sales	—			645
Losses realized on sales	—			(880		)
Fair value adjustments, net	12,371			(8,028		)
Total investment securities gains, net	$	6,641		$	(2,158	)