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Investment securities (Tables)
 12 Months Ended
Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]  
Amortized Cost and Estimated Fair Value of Investment Securities

On January 1, 2018, the Company adopted amended guidance requiring equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in the consolidated statement of income. This amended guidance excludes equity method investments, investments in consolidated subsidiaries, exchange membership ownership interests, and Federal Home Loan Bank of New York and Federal Reserve Bank of New York capital stock. Upon adoption the Company reclassified $17 million, after-tax effect, from accumulated other comprehensive income to retained earnings, representing the difference between fair value and the cost basis of equity investments with readily determinable fair values at January 1, 2018.

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

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

 

(In thousands)

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

9,154

 

 

$

198

 

 

$

14

 

 

$

9,338

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

4,475,406

 

 

 

208,787

 

 

 

755

 

 

 

4,683,438

 

Privately issued

 

 

16

 

 

 

—

 

 

 

—

 

 

 

16

 

Other debt securities

 

 

136,451

 

 

 

1,664

 

 

 

8,301

 

 

 

129,814

 

 

 

 

4,621,027

 

 

 

210,649

 

 

 

9,070

 

 

 

4,822,606

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

2,999

 

 

 

—

 

 

 

—

 

 

 

2,999

 

Obligations of states and political subdivisions

 

 

1,531

 

 

 

9

 

 

 

—

 

 

 

1,540

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

1,664,443

 

 

 

100,176

 

 

 

11

 

 

 

1,764,608

 

Privately issued

 

 

77,155

 

 

 

11,056

 

 

 

17,938

 

 

 

70,273

 

Other debt securities

 

 

2,861

 

 

 

—

 

 

 

—

 

 

 

2,861

 

 

 

 

1,748,989

 

 

 

111,241

 

 

 

17,949

 

 

 

1,842,281

 

Total debt securities

 

$

6,370,016

 

 

$

321,890

 

 

$

27,019

 

 

$

6,664,887

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

67,891

 

 

$

25,094

 

 

$

—

 

 

$

92,985

 

Other — at cost

 

 

381,117

 

 

 

—

 

 

 

—

 

 

 

381,117

 

Total equity and other securities

 

$

449,008

 

 

$

25,094

 

 

$

—

 

 

$

474,102

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

9,742

 

 

$

41

 

 

$

16

 

 

$

9,767

 

Obligations of states and political subdivisions

 

 

776

 

 

 

2

 

 

 

3

 

 

 

775

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

6,113,913

 

 

 

88,634

 

 

 

21,607

 

 

 

6,180,940

 

Privately issued

 

 

16

 

 

 

—

 

 

 

—

 

 

 

16

 

Other debt securities

 

 

133,829

 

 

 

2,046

 

 

 

8,597

 

 

 

127,278

 

 

 

 

6,258,276

 

 

 

90,723

 

 

 

30,223

 

 

 

6,318,776

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

249,862

 

 

 

286

 

 

 

—

 

 

 

250,148

 

Obligations of states and political subdivisions

 

 

4,140

 

 

 

16

 

 

 

—

 

 

 

4,156

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

2,306,180

 

 

 

50,381

 

 

 

1,992

 

 

 

2,354,569

 

Privately issued

 

 

93,496

 

 

 

11,779

 

 

 

18,181

 

 

 

87,094

 

Other debt securities

 

 

3,239

 

 

 

—

 

 

 

—

 

 

 

3,239

 

 

 

 

2,656,917

 

 

 

62,462

 

 

 

20,173

 

 

 

2,699,206

 

Total debt securities

 

$

8,915,193

 

 

$

153,185

 

 

$

50,396

 

 

$

9,017,982

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

105,524

 

 

$

34,786

 

 

$

269

 

 

$

140,041

 

Other — at cost

 

 

381,517

 

 

 

—

 

 

 

—

 

 

 

381,517

 

Total equity and other securities

 

$

487,041

 

 

$

34,786

 

 

$

269

 

 

$

521,558

 
Investment Ratings of All Privately Issued Mortgage-Backed Securities and Other Debt Securities

As of December 31, 2020, the latest available investment ratings of all obligations of states and political subdivisions, privately issued mortgage-backed securities and other debt securities were:

 

 

 

 

 

 

 

 

 

 

 

Average Credit Rating of Fair Value Amount

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

 

A or

Better

 

 

BBB

 

 

BB

 

 

B or Less

 

 

Not

Rated

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political

   subdivisions

 

$

1,531

 

 

$

1,540

 

 

$

1,540

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Privately issued mortgage-backed

   securities

 

 

77,171

 

 

 

70,289

 

 

 

1,533

 

 

 

—

 

 

 

—

 

 

 

490

 

 

 

68,266

 

Other debt securities

 

 

139,312

 

 

 

132,675

 

 

 

7,302

 

 

 

62,016

 

 

 

31,303

 

 

 

—

 

 

 

32,054

 

Total

 

$

218,014

 

 

$

204,504

 

 

$

10,375

 

 

$

62,016

 

 

$

31,303

 

 

$

490

 

 

$

100,320

 
Amortized Cost and Estimated Fair Value of Collateralized Mortgage Obligations

 

The amortized cost and estimated fair value of collateralized mortgage obligations included in mortgage-backed securities were as follows:

 

 

December 31

 

 

 

2020

 

 

2019

 

 

 

(In thousands)

 

Collateralized mortgage obligations:

 

 

 

 

 

 

 

 

Amortized cost

 

$

77,964

 

 

$

94,817

 

Estimated fair value

 

 

71,099

 

 

 

88,410

 
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

At December 31, 2020, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

 

 

(In thousands)

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

Due in one year or less

 

$

4,950

 

 

 

4,945

 

Due after one year through five years

 

 

12,051

 

 

 

12,585

 

Due after five years through ten years

 

 

98,604

 

 

 

97,301

 

Due after ten years

 

 

30,000

 

 

 

24,321

 

 

 

 

145,605

 

 

 

139,152

 

Mortgage-backed securities available for sale

 

 

4,475,422

 

 

 

4,683,454

 

 

 

$

4,621,027

 

 

 

4,822,606

 

Debt securities held to maturity:

 

 

 

 

 

 

 

 

Due in one year or less

 

$

4,355

 

 

 

4,361

 

Due after one year through five years

 

 

175

 

 

 

178

 

Due after ten years

 

 

2,861

 

 

 

2,861

 

 

 

 

7,391

 

 

 

7,400

 

Mortgage-backed securities held to maturity

 

 

1,741,598

 

 

 

1,834,881

 

 

 

$

1,748,989

 

 

 

1,842,281

 
Investment Securities in Continuous Unrealized Loss Position

A summary of investment securities that as of December 31, 2020 and 2019 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

 

(In thousands)

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

985

 

 

 

(14

)

 

 

—

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

18,687

 

 

 

(356

)

 

 

16,556

 

 

 

(399

)

Other debt securities

 

 

16,055

 

 

 

(181

)

 

 

63,462

 

 

 

(8,120

)

 

 

 

35,727

 

 

 

(551

)

 

 

80,018

 

 

 

(8,519

)

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

2,039

 

 

 

(11

)

 

 

—

 

 

 

—

 

Privately issued

 

 

—

 

 

 

—

 

 

 

52,418

 

 

 

(17,938

)

 

 

 

2,039

 

 

 

(11

)

 

 

52,418

 

 

 

(17,938

)

Total

 

$

37,766

 

 

 

(562

)

 

 

132,436

 

 

 

(26,457

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

1,406

 

 

 

(7

)

 

 

2,893

 

 

 

(9

)

Obligations of states and political subdivisions

 

 

—

 

 

 

—

 

 

 

277

 

 

 

(3

)

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

117,299

 

 

 

(222

)

 

 

2,002,364

 

 

 

(21,385

)

Other debt securities

 

 

6,600

 

 

 

(354

)

 

 

56,313

 

 

 

(8,243

)

 

 

 

125,305

 

 

 

(583

)

 

 

2,061,847

 

 

 

(29,640

)

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

2,727

 

 

 

(5

)

 

 

145,235

 

 

 

(1,987

)

Privately issued

 

 

—

 

 

 

—

 

 

 

49,656

 

 

 

(18,181

)

 

 

 

2,727

 

 

 

(5

)

 

 

194,891

 

 

 

(20,168

)

Total

 

$

128,032

 

 

 

(588

)

 

 

2,256,738

 

 

 

(49,808

)