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Investment securities
 9 Months Ended
Sep. 30, 2021
Investments Debt And Equity Securities [Abstract]  
Investment securities

3. Investment securities

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)

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

9,621

 

 

$

124

 

 

$

1

 

 

$

9,744

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

3,328,080

 

 

 

147,942

 

 

 

543

 

 

 

3,475,479

 

Other debt securities

 

 

136,222

 

 

 

2,905

 

 

 

6,244

 

 

 

132,883

 

 

 

 

3,473,923

 

 

 

150,971

 

 

 

6,788

 

 

 

3,618,106

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

3,065

 

 

 

—

 

 

 

—

 

 

 

3,065

 

Obligations of states and political subdivisions

 

 

177

 

 

 

—

 

 

 

—

 

 

 

177

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

2,288,934

 

 

 

63,523

 

 

 

6,312

 

 

 

2,346,145

 

Privately issued

 

 

64,929

 

 

 

10,901

 

 

 

13,901

 

 

 

61,929

 

Other debt securities

 

 

2,622

 

 

 

—

 

 

 

—

 

 

 

2,622

 

 

 

 

2,359,727

 

 

 

74,424

 

 

 

20,213

 

 

 

2,413,938

 

Total debt securities

 

$

5,833,650

 

 

$

225,395

 

 

$

27,001

 

 

$

6,032,044

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

80,016

 

 

$

3,341

 

 

$

901

 

 

$

82,456

 

Other — at cost

 

 

387,333

 

 

 

—

 

 

 

—

 

 

 

387,333

 

Total equity and other securities

 

$

467,349

 

 

$

3,341

 

 

$

901

 

 

$

469,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

3. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the three-month and nine-month periods ended September 30, 2021 and 2020.  Unrealized gains on equity securities during the three months ended September 30, 2021 were less than $1 million and unrealized losses during the nine months ended September 30, 2021 were $23 million, compared with unrealized gains of $3 million and unrealized losses of $11 million during the three months and nine months ended September 30, 2020, respectively.

At September 30, 2021, 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

 

$

4,291

 

 

 

4,351

 

Due after one year through five years

 

 

13,974

 

 

 

14,616

 

Due after five years through ten years

 

 

97,578

 

 

 

98,981

 

Due after ten years

 

 

30,000

 

 

 

24,679

 

 

 

 

145,843

 

 

 

142,627

 

Mortgage-backed securities available for sale

 

 

3,328,080

 

 

 

3,475,479

 

 

 

$

3,473,923

 

 

 

3,618,106

 

Debt securities held to maturity:

 

 

 

 

 

 

 

 

Due in one year or less

 

$

176

 

 

 

177

 

Due after one year through five years

 

 

3,066

 

 

 

3,065

 

Due after ten years

 

 

2,622

 

 

 

2,622

 

 

 

 

5,864

 

 

 

5,864

 

Mortgage-backed securities held to maturity

 

 

2,353,863

 

 

 

2,408,074

 

 

 

$

2,359,727

 

 

 

2,413,938

 

 3. Investment securities, continued

A summary of investment securities that as of September 30, 2021 and December 31, 2020 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)

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

1,424

 

 

 

(1

)

 

 

—

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

981

 

 

 

(5

)

 

 

22,517

 

 

 

(538

)

Other debt securities

 

 

3,498

 

 

 

(37

)

 

 

64,437

 

 

 

(6,207

)

 

 

 

5,903

 

 

 

(43

)

 

 

86,954

 

 

 

(6,745

)

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

1,019,537

 

 

 

(6,301

)

 

 

1,400

 

 

 

(11

)

Privately issued

 

 

—

 

 

 

—

 

 

 

47,467

 

 

 

(13,901

)

 

 

 

1,019,537

 

 

 

(6,301

)

 

 

48,867

 

 

 

(13,912

)

Total

 

$

1,025,440

 

 

 

(6,344

)

 

 

135,821

 

 

 

(20,657

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

 

The Company owned 286 individual debt securities with aggregate gross unrealized losses of $27 million at September 30, 2021. Based on a review of each of the securities in the investment securities portfolio at September 30, 2021, the Company concluded that it expected to recover the amortized cost basis of its investment.  As of September 30, 2021, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss.  At September 30, 2021, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $387 million of cost method equity securities.

The Company estimated no material allowance for credit losses for its investment securities classified as held-to-maturity at September 30, 2021 or December 31, 2020, as the substantial majority of such investment securities are obligations backed by the U.S. government or its agencies.