INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2022

INVESTMENT SECURITIES.

INVESTMENT SECURITIES

NOTE D: INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of June 30, 2022 and December 31, 2021 are as follows:

	June 30, 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	$	5,199,745	$	165	$	584,364	$	4,615,546	$	4,064,624	$	39,997	$	106,057	$	3,998,564
Obligations of state and political subdivisions		565,701		2,224		40,770		527,155		413,019		17,326		56		430,289
Government agency mortgage-backed securities		466,276		397		41,316		425,357		474,506		7,615		5,065		477,056
Corporate debt securities		8,000		0		769		7,231		8,000		39		77		7,962
Government agency collateralized mortgage obligations		15,537		7		406		15,138		19,953		410		24		20,339
Total available-for-sale investment portfolio	$	6,255,259	$	2,793	$	667,625	$	5,590,427	$	4,980,102	$	65,387	$	111,279	$	4,934,210
Equity and other Securities:
Equity securities, at fair value	$	251	$	192	$	0	$	443	$	251	$	212	$	0	$	463
Federal Home Loan Bank common stock		13,199		0		0		13,199		7,188		0		0		7,188
Federal Reserve Bank common stock		35,323		0		0		35,323		33,916		0		0		33,916
Other equity securities, at adjusted cost		2,880		750		0		3,630		2,562		750		0		3,312
Total equity and other securities	$	51,653	$	942	$	0	$	52,595	$	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 June 30, 2022

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(000’s omitted)	#	Value		Losses		#	Value		Losses		#	Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	109	$	3,693,538	$	291,840	18	$	797,349	$	292,524	127	$	4,490,887	$	584,364
Obligations of state and political subdivisions	514		348,257		40,770	0		0		0	514		348,257		40,770
Government agency mortgage-backed securities	578		304,192		22,788	90		105,017		18,528	668		409,209		41,316
Corporate debt securities	2		7,231		769	0		0		0	2		7,231		769
Government agency collateralized mortgage obligations	39		14,298		406	1		10		0	40		14,308		406
Total available-for-sale investment portfolio	1,242	$	4,367,516	$	356,573	109	$	902,376	$	311,052	1,351	$	5,269,892	$	667,625

As of December 31, 2021

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(000’s omitted)	#	Value		Losses		#	Value		Losses		#	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 as well as 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 June 30, 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 investment portfolio as of June 30, 2022. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $20.2 million at June 30, 2022 and is excluded from the estimate of credit losses.

The amortized cost and estimated fair value of debt securities at June 30, 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	$	496,539	$	495,239
Due after one through five years		1,497,928		1,424,444
Due after five years through ten years		2,119,643		1,922,167
Due after ten years		1,659,336		1,308,082
Subtotal		5,773,446		5,149,932
Government agency mortgage-backed securities		466,276		425,357
Government agency collateralized mortgage obligations		15,537		15,138
Total	$	6,255,259	$	5,590,427

Investment securities with a carrying value of $2.40 billion and $2.32 billion at June 30, 2022 and December 31, 2021, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $433.6 million and $485.4 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at June 30, 2022 and December 31, 2021, respectively. All securities sold under agreement to repurchase as of June 30, 2022 and December 31, 2021 have an overnight and continuous maturity.