INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2022

INVESTMENT SECURITIES.

INVESTMENT SECURITIES

NOTE D: INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of March 31, 2022 and December 31, 2021 are as follows:

	March 31, 2022								December 31, 2021
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(000’s omitted)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	$	5,200,931	$	4,301	$	373,145	$	4,832,087	$	4,064,624	$	39,997	$	106,057	$	3,998,564
Obligations of state and political subdivisions		488,659		4,220		16,724		476,155		413,019		17,326		56		430,289
Government agency mortgage-backed securities		476,790		1,213		23,756		454,247		474,506		7,615		5,065		477,056
Corporate debt securities		8,000		0		503		7,497		8,000		39		77		7,962
Government agency collateralized mortgage obligations		17,429		32		289		17,172		19,953		410		24		20,339
Total available-for-sale portfolio	$	6,191,809	$	9,766	$	414,417	$	5,787,158	$	4,980,102	$	65,387	$	111,279	$	4,934,210
Equity and Other Securities:
Equity securities, at fair value	$	251	$	214	$	0	$	465	$	251	$	212	$	0	$	463
Federal Home Loan Bank common stock		7,181		0		0		7,181		7,188		0		0		7,188
Federal Reserve Bank common stock		33,568		0		0		33,568		33,916		0		0		33,916
Other equity securities, at adjusted cost		2,494		750		0		3,244		2,562		750		0		3,312
Total equity and other securities	$	43,494	$	964	$	0	$	44,458	$	43,917	$	962	$	0	$	44,879

A summary of investment securities that have been in a continuous unrealized loss position is as follows:

As of March 31, 2022

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
				Unrealized					Unrealized					Unrealized
(000’s omitted)	#	Fair Value		Losses		#	Fair Value		Losses		#	Fair Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	94	$	3,308,837	$	179,251	18	$	894,753	$	193,894	112	$	4,203,590	$	373,145
Obligations of state and political subdivisions	292		244,080		16,724	0		0		0	292		244,080		16,724
Government agency mortgage-backed securities	431		289,183		12,368	85		107,216		11,388	516		396,399		23,756
Corporate debt securities	2		7,497		503	0		0		0	2		7,497		503
Government agency collateralized mortgage obligations	38		14,289		289	1		31		0	39		14,320		289
Total available-for-sale investment portfolio	857	$	3,863,886	$	209,135	104	$	1,002,000	$	205,282	961	$	4,865,886	$	414,417

As of December 31, 2021

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
				Unrealized					Unrealized					Unrealized
(000’s omitted)	#	Fair Value		Losses		#	Fair Value		Losses		#	Fair Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	47	$	1,224,101	$	14,873	13	$	900,462	$	91,184	60	$	2,124,563	$	106,057
Obligations of state and political subdivisions	27		23,966		56	0		0		0	27		23,966		56
Government agency mortgage-backed securities	147		139,442		2,475	52		67,273		2,590	199		206,715		5,065
Corporate debt securities	1		4,923		77	0		0		0	1		4,923		77
Government agency collateralized mortgage obligations	18		3,146		24	1		53		0	19		3,199		24
Total available-for-sale investment portfolio	240	$	1,395,578	$	17,505	66	$	967,788	$	93,774	306	$	2,363,366	$	111,279

The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities, include treasuries, agencies, and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions carry a credit rating of A or better. Additionally, a majority of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company holds two corporate debt securities in an unrealized loss position, which are currently rated A- or better, and the issuer of the securities both show a low risk of default. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. Timely principal and interest payments continue to be made on the securities. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of March 31, 2022 represents credit losses and no unrealized losses have been recognized in the provision for credit losses. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of March 31, 2022. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $17.2 million at March 31, 2022 and is excluded from the estimate of credit losses.

The amortized cost and estimated fair value of debt securities at March 31, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, including government agency mortgage-backed securities and government agency collateralized mortgage obligations, are shown separately.

	Available-for-Sale
	Amortized
(000’s omitted)	Cost		Fair Value
Due in one year or less	$	152,902	$	153,690
Due after one through five years		1,801,393		1,757,237
Due after five years through ten years		2,163,695		2,038,048
Due after ten years		1,579,600		1,366,764
Subtotal		5,697,590		5,315,739
Government agency mortgage-backed securities		476,790		454,247
Government agency collateralized mortgage obligations		17,429		17,172
Total	$	6,191,809	$	5,787,158

Investment securities with a carrying value of $2.51 billion and $2.32 billion at March 31, 2022 and December 31, 2021, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $436.8 million and $485.4 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at March 31, 2022 and December 31, 2021, respectively. All securities sold under agreement to repurchase as of March 31, 2022 and December 31, 2021 have an overnight and continuous maturity.