| Investments in debt and marketable equity securities |
Note 5 – Debt securities available-for-saleThe following tables present the amortized cost, gross unrealized gains and losses, approximate fair value, weighted average yield and contractual maturities of debt securities available-for-sale at December 31, 2020 and December 31, 2019
|
|
At December 31, 2020 |
|
|
|
|
|
Gross |
Gross |
|
|
Weighted |
|
|
|
Amortized |
unrealized |
unrealized |
Fair |
average |
|
(In thousands) |
cost |
gains |
losses |
value |
yield |
|
U.S. Treasury securities |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
$ |
4,900,055 |
$ |
16,479 |
$ |
- |
$ |
4,916,534 |
0.69 |
% |
|
After 1 to 5 years |
|
5,007,223 |
|
259,399 |
|
- |
|
5,266,622 |
2.05 |
|
|
After 5 to 10 years |
|
567,367 |
|
37,517 |
|
- |
|
604,884 |
1.68 |
|
Total U.S. Treasury securities |
|
10,474,645 |
|
313,395 |
|
- |
|
10,788,040 |
1.40 |
|
Obligations of U.S. Government sponsored entities |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
|
59,993 |
|
101 |
|
- |
|
60,094 |
1.46 |
|
|
After 1 to 5 years |
|
90 |
|
- |
|
- |
|
90 |
5.64 |
|
Total obligations of U.S. Government sponsored entities |
|
60,083 |
|
101 |
|
- |
|
60,184 |
1.47 |
|
Collateralized mortgage obligations - federal agencies |
|
|
|
|
|
|
|
|
|
|
|
After 1 to 5 years |
|
1,388 |
|
14 |
|
- |
|
1,402 |
2.97 |
|
|
After 5 to 10 years |
|
61,229 |
|
1,050 |
|
- |
|
62,279 |
1.56 |
|
|
After 10 years |
|
318,292 |
|
10,202 |
|
43 |
|
328,451 |
2.04 |
|
Total collateralized mortgage obligations - federal agencies |
|
380,909 |
|
11,266 |
|
43 |
|
392,132 |
1.97 |
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
|
5,616 |
|
56 |
|
- |
|
5,672 |
2.83 |
|
|
After 1 to 5 years |
|
50,393 |
|
1,735 |
|
- |
|
52,128 |
2.35 |
|
|
After 5 to 10 years |
|
454,880 |
|
20,022 |
|
6 |
|
474,896 |
1.91 |
|
|
After 10 years |
|
9,608,860 |
|
180,844 |
|
1,839 |
|
9,787,865 |
1.94 |
|
Total mortgage-backed securities |
|
10,119,749 |
|
202,657 |
|
1,845 |
|
10,320,561 |
1.94 |
|
Other |
|
|
|
|
|
|
|
|
|
|
|
After 1 to 5 years |
|
224 |
|
11 |
|
- |
|
235 |
3.62 |
|
Total other |
|
224 |
|
11 |
|
- |
|
235 |
3.62 |
|
Total debt securities available-for-sale[1] |
$ |
21,035,610 |
$ |
527,430 |
$ |
1,888 |
$ |
21,561,152 |
1.66 |
% |
[1] |
Includes $18.2 billion pledged to secure government and trust deposits, assets sold under agreements to repurchase, credit facilities and loan servicing agreements that the secured parties are not permitted to sell or repledge the collateral, of which $16.9 billion serve as collateral for public funds. |
|
|
At December 31, 2019 |
|
|
|
|
|
Gross |
Gross |
|
|
Weighted |
|
|
|
Amortized |
unrealized |
unrealized |
Fair |
average |
|
(In thousands) |
cost |
gains |
losses |
value |
yield |
|
U.S. Treasury securities |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
$ |
5,071,201 |
$ |
3,262 |
$ |
567 |
$ |
5,073,896 |
1.58 |
% |
|
After 1 to 5 years |
|
5,137,804 |
|
75,597 |
|
3,435 |
|
5,209,966 |
2.19 |
|
|
After 5 to 10 years |
|
1,778,568 |
|
429 |
|
6,604 |
|
1,772,393 |
1.70 |
|
Total U.S. Treasury securities |
|
11,987,573 |
|
79,288 |
|
10,606 |
|
12,056,255 |
1.86 |
|
Obligations of U.S. Government sponsored entities |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
|
62,492 |
|
2 |
|
21 |
|
62,473 |
1.45 |
|
|
After 1 to 5 years |
|
60,021 |
|
- |
|
90 |
|
59,931 |
1.48 |
|
Total obligations of U.S. Government sponsored entities |
|
122,513 |
|
2 |
|
111 |
|
122,404 |
1.47 |
|
Obligations of Puerto Rico, States and political subdivisions |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
|
6,975 |
|
- |
|
- |
|
6,975 |
- |
|
Total obligations of Puerto Rico, States and political subdivisions |
|
6,975 |
|
- |
|
- |
|
6,975 |
- |
|
Collateralized mortgage obligations - federal agencies |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
|
236 |
|
- |
|
- |
|
236 |
1.83 |
|
|
After 1 to 5 years |
|
350 |
|
1 |
|
- |
|
351 |
2.16 |
|
|
After 5 to 10 years |
|
85,079 |
|
31 |
|
1,180 |
|
83,930 |
1.63 |
|
|
After 10 years |
|
504,391 |
|
3,640 |
|
6,373 |
|
501,658 |
2.08 |
|
Total collateralized mortgage obligations - federal agencies |
|
590,056 |
|
3,672 |
|
7,553 |
|
586,175 |
2.02 |
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
Within 1 year |
|
16 |
|
- |
|
- |
|
16 |
2.13 |
|
|
After 1 to 5 years |
|
36,717 |
|
852 |
|
1 |
|
37,568 |
3.38 |
|
|
After 5 to 10 years |
|
350,373 |
|
1,958 |
|
1,303 |
|
351,028 |
2.02 |
|
|
After 10 years |
|
4,447,561 |
|
60,384 |
|
20,243 |
|
4,487,702 |
2.60 |
|
Total mortgage-backed securities |
|
4,834,667 |
|
63,194 |
|
21,547 |
|
4,876,314 |
2.57 |
|
Other |
|
|
|
|
|
|
|
|
|
|
|
After 1 to 5 years |
|
341 |
|
9 |
|
- |
|
350 |
3.62 |
|
Total other |
|
341 |
|
9 |
|
- |
|
350 |
3.62 |
|
Total debt securities available-for-sale[1] |
$ |
17,542,125 |
$ |
146,165 |
$ |
39,817 |
$ |
17,648,473 |
2.05 |
% |
[1] |
Includes $12.2 billion pledged to secure government and trust deposits, assets sold under agreements to repurchase, credit facilities and loan servicing agreements that the secured parties are not permitted to sell or repledge the collateral, of which $10.9 billion serve as collateral for public funds. | The weighted average yield on debt securities available-for-sale is based on amortized cost; therefore, it does not give effect to changes in fair value. Securities not due on a single contractual maturity date, such as mortgage-backed securities and collateralized mortgage obligations, are classified in the period of final contractual maturity. The expected maturities of collateralized mortgage obligations, mortgage-backed securities and certain other securities may differ from their contractual maturities because they may be subject to prepayments or may be called by the issuer. The following table presents the aggregate amortized cost and fair value of debt securities available-for-sale at December 31, 2020 by contractual maturity.
(In thousands) |
|
Amortized cost |
|
Fair value |
Within 1 year |
$ |
4,965,664 |
$ |
4,982,300 |
After 1 to 5 years |
|
5,059,318 |
|
5,320,477 |
After 5 to 10 years |
|
1,083,476 |
|
1,142,059 |
After 10 years |
|
9,927,152 |
|
10,116,316 |
Total debt securities available-for-sale |
$ |
21,035,610 |
$ |
21,561,152 | During the years ended December 31, 2020 and 2019, the Corporation sold U.S. Treasury Notes and U.S. Treasury Bills, respectively. The proceeds from these sales were $5 million and $99 million, respectively. Gross realized gains and losses on the sale of debt securities available-for-sale for the years ended December 31, 2020, 2019 and 2018 were as follows:
(In thousands) |
|
2020 |
|
2019 |
|
2018 |
Gross realized gains |
$ |
41 |
$ |
- |
$ |
- |
Gross realized losses |
|
- |
|
(20) |
|
- |
Net realized gains (losses) on sale of debt securities available-for-sale |
$ |
41 |
$ |
(20) |
$ |
- | The following tables present the Corporation’s fair value and gross unrealized losses of debt securities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2020 and 2019.
|
|
At December 31, 2020 |
|
Less than 12 months |
12 months or more |
Total |
|
|
|
|
Gross |
|
|
Gross |
|
|
Gross |
|
|
Fair |
unrealized |
Fair |
unrealized |
Fair |
unrealized |
(In thousands) |
value |
losses |
value |
losses |
value |
losses |
Collateralized mortgage obligations - federal agencies |
$ |
4,029 |
$ |
43 |
$ |
- |
$ |
- |
$ |
4,029 |
$ |
43 |
Mortgage-backed securities |
|
886,432 |
|
1,834 |
|
555 |
|
11 |
|
886,987 |
|
1,845 |
Total debt securities available-for-sale in an unrealized loss position |
$ |
890,461 |
$ |
1,877 |
$ |
555 |
$ |
11 |
$ |
891,016 |
$ |
1,888 |
|
|
At December 31, 2019 |
|
Less than 12 months |
12 months or more |
Total |
|
|
|
|
Gross |
|
|
Gross |
|
|
Gross |
|
|
Fair |
unrealized |
Fair |
unrealized |
Fair |
unrealized |
(In thousands) |
value |
losses |
value |
losses |
value |
losses |
U.S. Treasury securities |
$ |
2,439,114 |
$ |
9,798 |
$ |
452,784 |
$ |
808 |
$ |
2,891,898 |
$ |
10,606 |
Obligations of U.S. Government sponsored entities |
|
9,973 |
|
4 |
|
99,846 |
|
107 |
|
109,819 |
|
111 |
Collateralized mortgage obligations - federal agencies |
|
114,603 |
|
537 |
|
310,315 |
|
7,016 |
|
424,918 |
|
7,553 |
Mortgage-backed securities |
|
179,312 |
|
693 |
|
1,784,414 |
|
20,854 |
|
1,963,726 |
|
21,547 |
Total debt securities available-for-sale in an unrealized loss position |
$ |
2,743,002 |
$ |
11,032 |
$ |
2,647,359 |
$ |
28,785 |
$ |
5,390,361 |
$ |
39,817 | As of December 31, 2020, the portfolio of available-for-sale debt securities reflects gross unrealized losses of approximately $2 million, driven mainly by mortgage-backed securities. The following table states the name of issuers, and the aggregate amortized cost and fair value of the debt securities of such issuer (includes available-for-sale and held-to-maturity debt securities), in which the aggregate amortized cost of such securities exceeds 10% of stockholders’ equity. This information excludes debt securities backed by the full faith and credit of the U.S. Government. Investments in obligations issued by a state of the U.S. and its political subdivisions and agencies, which are payable and secured by the same source of revenue or taxing authority, other than the U.S. Government, are considered securities of a single issuer.
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
(In thousands) |
Amortized cost |
Fair value |
Amortized cost |
Fair value |
FNMA |
$ |
2,242,121 |
$ |
2,338,897 |
$ |
3,113,373 |
$ |
3,129,538 |
Freddie Mac |
|
3,616,238 |
|
3,675,679 |
|
1,623,116 |
|
1,638,796 |
|