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Investment Securities | 9 Months Ended
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Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The following tables are a summary of the investment securities portfolios as of the dates shown:
| September 30, 2023
(In thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale securities |  |  |  |  |  |  |
U.S. Treasury | $ | 4,930 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 4,931 |
U.S. government agencies | 80,000 |  |  | — |  |  | (7,570) |  |  | 72,430 |
Municipal | 177,208 |  |  | 49 |  |  | (8,734) |  |  | 168,523 |
Corporate notes: |  |  |  |  |  |  |
Financial issuers | 83,995 |  |  | — |  |  | (8,368) |  |  | 75,627 |
Other | 1,000 |  |  | — |  |  | (21) |  |  | 979 |
Mortgage-backed: (1) |  |  |  |  |  |  |
Residential mortgage-backed securities | 3,862,871 |  |  | — |  |  | (656,135) |  |  | 3,206,736 |
Commercial (multi-family) mortgage-backed securities | 13,179 |  |  | — |  |  | (802) |  |  | 12,377 |
Collateralized mortgage obligations | 92,540 |  |  | — |  |  | (22,308) |  |  | 70,232 |
Total available-for-sale securities | $ | 4,315,723 |  |  | $ | 50 |  |  | $ | (703,938) |  |  | $ | 3,611,835 |
Held-to-maturity securities |  |  |  |  |  |  |
U.S. government agencies | $ | 339,598 |  |  | $ | — |  |  | $ | (87,897) |  |  | $ | 251,701 |
Municipal | 176,262 |  |  | 123 |  |  | (11,230) |  |  | 165,155 |
Mortgage-backed: (1) |  |  |  |  |  |  |
Residential mortgage-backed securities | 3,082,314 |  |  | — |  |  | (717,444) |  |  | 2,364,870 |
Commercial (multi-family) mortgage-backed securities | 6,425 |  |  | — |  |  | (477) |  |  | 5,948 |
Collateralized mortgage obligations | 247,215 |  |  | — |  |  | (29,798) |  |  | 217,417 |
Corporate notes | 57,717 |  |  | — |  |  | (4,849) |  |  | 52,868 |
Total held-to-maturity securities | $ | 3,909,531 |  |  | $ | 123 |  |  | $ | (851,695) |  |  | $ | 3,057,959 |
Less: Allowance for credit losses | (381) |  |  |  |  |  |  |
Held-to-maturity securities, net of allowance for credit losses | $ | 3,909,150 |  |  |  |  |  |  |
Equity securities with readily determinable fair value | $ | 140,749 |  |  | $ | 3,290 |  |  | $ | (9,729) |  |  | $ | 134,310 |
(1)None of our mortgage-backed securities are subprime.
| December 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(In thousands) |  |  |
Available-for-sale securities |  |  |  |  |  |  |
U.S. Treasury | $ | 14,943 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 14,948 |
U.S. government agencies | 80,000 |  |  | 36 |  |  | (5,814) |  |  | 74,222 |
Municipal | 173,861 |  |  | 230 |  |  | (5,436) |  |  | 168,655 |
Corporate notes: |  |  |  |  |  |  |
Financial issuers | 93,994 |  |  | — |  |  | (9,291) |  |  | 84,703 |
Other | 1,000 |  |  | 2 |  |  | — |  |  | 1,002 |
Mortgage-backed: (1) |  |  |  |  |  |  |
Mortgage-backed securities | 3,308,494 |  |  | 238 |  |  | (488,795) |  |  | 2,819,937 |
Collateralized mortgage obligations | 97,342 |  |  | — |  |  | (17,792) |  |  | 79,550 |
Total available-for-sale securities | $ | 3,769,634 |  |  | $ | 511 |  |  | $ | (527,128) |  |  | $ | 3,243,017 |
Held-to-maturity securities |  |  |  |  |  |  |
U.S. government agencies | $ | 339,614 |  |  | $ | — |  |  | $ | (75,293) |  |  | $ | 264,321 |
Municipal | 179,027 |  |  | 477 |  |  | (4,066) |  |  | 175,438 |
Mortgage-backed: (1) |  |  |  |  |  |  |
Mortgage-backed securities | 2,900,031 |  |  | — |  |  | (583,682) |  |  | 2,316,349 |
Collateralized mortgage obligations | 164,151 |  |  | — |  |  | (23,322) |  |  | 140,829 |
Corporate notes | 58,232 |  |  | — |  |  | (5,348) |  |  | 52,884 |
Total held-to-maturity securities | $ | 3,641,055 |  |  | $ | 477 |  |  | $ | (691,711) |  |  | $ | 2,949,821 |
Less: Allowance for credit losses | (488) |  |  |  |  |  |  |
Held-to-maturity securities, net of allowance for credit losses | $ | 3,640,567 |  |  |  |  |  |  |
Equity securities with readily determinable fair value | $ | 115,552 |  |  | $ | 2,935 |  |  | $ | (8,122) |  |  | $ | 110,365 |
(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime.
| September 30, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(In thousands) |  |  |
Available-for-sale securities |  |  |  |  |  |  |
U.S. Treasury | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. government agencies | 50,000 |  |  | — |  |  | (5,987) |  |  | 44,013 |
Municipal | 181,612 |  |  | 127 |  |  | (7,738) |  |  | 174,001 |
Corporate notes: |  |  |  |  |  |  |
Financial issuers | 93,994 |  |  | — |  |  | (7,951) |  |  | 86,043 |
Other | 1,000 |  |  | — |  |  | (10) |  |  | 990 |
Mortgage-backed: (1) |  |  |  |  |  |  |
Mortgage-backed securities | 3,052,778 |  |  | — |  |  | (513,978) |  |  | 2,538,800 |
Collateralized mortgage obligations | 98,922 |  |  | — |  |  | (19,116) |  |  | 79,806 |
Total available-for-sale securities | $ | 3,478,306 |  |  | $ | 127 |  |  | $ | (554,780) |  |  | $ | 2,923,653 |
Held-to-maturity securities |  |  |  |  |  |  |
U.S. government agencies | $ | 314,618 |  |  | $ | — |  |  | $ | (72,723) |  |  | $ | 241,895 |
Municipal | 180,304 |  |  | 203 |  |  | (7,791) |  |  | 172,716 |
Mortgage-backed: (1) |  |  |  |  |  |  |
Mortgage-backed securities | 2,679,862 |  |  | — |  |  | (600,335) |  |  | 2,079,527 |
Collateralized mortgage obligations | 166,965 |  |  | — |  |  | (24,475) |  |  | 142,490 |
Corporate notes | 48,403 |  |  | — |  |  | (5,705) |  |  | 42,698 |
Total held-to-maturity securities | $ | 3,390,152 |  |  | $ | 203 |  |  | $ | (711,029) |  |  | $ | 2,679,326 |
Less: Allowance for credit losses | (310) |  |  |  |  |  |  |
Held-to-maturity securities, net of allowance for credit losses | $ | 3,389,842 |  |  |  |  |  |  |
Equity securities with readily determinable fair value | $ | 120,073 |  |  | $ | 2,233 |  |  | $ | (8,294) |  |  | $ | 114,012 |
(1)Consisting entirely of residential mortgage-backed securities, none of which are subprime. Equity securities without readily determinable fair values totaled $58.1 million as of September 30, 2023. Equity securities without readily determinable fair values are included as part of accrued interest receivable and other assets in the Company’s Consolidated Statements of Condition. The Company monitors its equity investments without readily determinable fair values to identify potential transactions that may indicate an observable price change in orderly transactions for the identical or a similar investment of the same issuer, requiring adjustment to its carrying amount. The Company recorded no upward or downward adjustments related to such observable price changes for the three and nine months ended September 30, 2023 or September 30, 2022. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows. During the three months and nine months ended September 30, 2023, the Company recorded $489,000 impairment of equity securities without readily determinable fair values. During the three months ended September 30, 2022, the Company recorded $5,000 of impairment of equity securities without readily determinable fair values. During the nine months ended September 30, 2022, the Company recorded $4.4 million of impairment of equity securities without readily determinable fair values. The following table presents the portion of the Company’s available-for-sale investment securities portfolios that have gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023:
| Continuous unrealized losses existing for less than 12 months |  | Continuous unrealized losses existing for greater than 12 months |  | Total
(In thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies | $ | 29,974 |  |  | $ | (26) |  |  | $ | 42,456 |  |  | $ | (7,544) |  |  | $ | 72,430 |  |  | $ | (7,570) |
Municipal | 71,452 |  |  | (2,331) |  |  | 90,634 |  |  | (6,403) |  |  | 162,086 |  |  | (8,734) |
Corporate notes: |  |  |  |  |  |  |  |  |  |  |
Financial issuers | — |  |  | — |  |  | 75,627 |  |  | (8,368) |  |  | 75,627 |  |  | (8,368) |
Other | 979 |  |  | (21) |  |  | — |  |  | — |  |  | 979 |  |  | (21) |
Mortgage-backed: (1) |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities | 963,794 |  |  | (38,223) |  |  | 2,242,942 |  |  | (617,912) |  |  | 3,206,736 |  |  | (656,135) |
Commercial (multi-family) mortgage-backed securities | 12,377 |  |  | (802) |  |  | — |  |  | — |  |  | 12,377 |  |  | (802) |
Collateralized mortgage obligations | — |  |  | — |  |  | 70,232 |  |  | (22,308) |  |  | 70,232 |  |  | (22,308) |
Total available-for-sale securities | $ | 1,078,576 |  |  | $ | (41,403) |  |  | $ | 2,521,891 |  |  | $ | (662,535) |  |  | $ | 3,600,467 |  |  | $ | (703,938) |
(1)None of our mortgage-backed securities are subprime. The Company conducts a regular assessment of its investment securities to determine whether securities are experiencing credit losses. Factors for consideration include the nature of the securities, credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period. The Company does not consider available-for-sale securities with unrealized losses at September 30, 2023 to be experiencing credit losses and recognized no resulting allowance for credit losses for such individually assessed credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Available-for-sale securities with continuous unrealized losses existing for more than twelve months at September 30, 2023 were primarily mortgage-backed securities with unrealized losses due to increased market rates during such period. See Note (7) “Allowance for Credit Losses” for further discussion regarding any credit losses associated with held-to-maturity securities at September 30, 2023. The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:
| Three months ended September 30, |  | Nine months ended September 30,
(In thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
Realized gains on investment securities | $ | 225 |  |  | $ | 15 |  |  | $ | 836 |  |  | $ | 280 |
Realized losses on investment securities | (9) |  |  | (4) |  |  | (60) |  |  | (18) |
Net realized gains on investment securities | 216 |  |  | 11 |  |  | 776 |  |  | 262 |
Unrealized gains on equity securities with readily determinable fair value | 10 |  |  | 45 |  |  | 2,984 |  |  | 227 |
Unrealized losses on equity securities with readily determinable fair value | (2,094) |  |  | (3,154) |  |  | (4,230) |  |  | (9,809) |
Net unrealized losses on equity securities with readily determinable fair value | (2,084) |  |  | (3,109) |  |  | (1,246) |  |  | (9,582) |
Upward adjustments of equity securities without readily determinable fair values | — |  |  | — |  |  | — |  |  | — |
Downward adjustments of equity securities without readily determinable fair values | — |  |  | — |  |  | — |  |  | — |
Impairment of equity securities without readily determinable fair values | (489) |  |  | (5) |  |  | (489) |  |  | (4,362) |
Adjustment and impairment, net, of equity securities without readily determinable fair values | (489) |  |  | (5) |  |  | (489) |  |  | (4,362) |
Losses on investment securities, net | $ | (2,357) |  |  | $ | (3,103) |  |  | $ | (959) |  |  | $ | (13,682) |
Proceeds from sales of equity securities with readily determinable fair value | $ | — |  |  | $ | 3,000 |  |  | $ | 23,592 |  |  | $ | 21,753 |
Proceeds from sales and capital distributions of equity securities without readily determinable fair value | — |  |  | 703 |  |  | 67 |  |  | 1,232 |
(1)Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party. The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2023, December 31, 2022 and September 30, 2022, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:
| September 30, 2023 |  | December 31, 2022 |  | September 30, 2022
(In thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Available-for-sale securities |  |  |  |  |  |  |  |  |  |  |
Due in one year or less | $ | 99,892 |  |  | $ | 99,525 |  |  | $ | 119,830 |  |  | $ | 119,275 |  |  | $ | 55,249 |  |  | $ | 54,846 |
Due in one to five years | 139,623 |  |  | 130,036 |  |  | 63,644 |  |  | 61,701 |  |  | 86,555 |  |  | 83,641 |
Due in five to ten years | 43,199 |  |  | 38,074 |  |  | 115,734 |  |  | 105,076 |  |  | 115,949 |  |  | 105,921 |
Due after ten years | 64,419 |  |  | 54,855 |  |  | 64,590 |  |  | 57,478 |  |  | 68,853 |  |  | 60,639 |
Mortgage-backed | 3,968,590 |  |  | 3,289,345 |  |  | 3,405,836 |  |  | 2,899,487 |  |  | 3,151,700 |  |  | 2,618,606 |
Total available-for-sale securities | $ | 4,315,723 |  |  | $ | 3,611,835 |  |  | $ | 3,769,634 |  |  | $ | 3,243,017 |  |  | $ | 3,478,306 |  |  | $ | 2,923,653 |
Held-to-maturity securities |  |  |  |  |  |  |  |  |  |  |
Due in one year or less | $ | 2,248 |  |  | $ | 2,241 |  |  | $ | 1,340 |  |  | $ | 1,332 |  |  | $ | 1,173 |  |  | $ | 1,166 |
Due in one to five years | 103,104 |  |  | 96,546 |  |  | 94,705 |  |  | 89,093 |  |  | 85,423 |  |  | 78,995 |
Due in five to ten years | 106,042 |  |  | 100,215 |  |  | 115,318 |  |  | 113,758 |  |  | 108,703 |  |  | 104,829 |
Due after ten years | 362,183 |  |  | 270,722 |  |  | 365,510 |  |  | 288,460 |  |  | 348,026 |  |  | 272,319 |
Mortgage-backed | 3,335,954 |  |  | 2,588,235 |  |  | 3,064,182 |  |  | 2,457,178 |  |  | 2,846,827 |  |  | 2,222,017 |
Total held-to-maturity securities | $ | 3,909,531 |  |  | $ | 3,057,959 |  |  | $ | 3,641,055 |  |  | $ | 2,949,821 |  |  | $ | 3,390,152 |  |  | $ | 2,679,326 |
Less: Allowance for credit losses | (381) |  |  |  |  | (488) |  |  |  |  | (310) |  |  |
Held-to-maturity securities, net of allowance for credit losses | $ | 3,909,150 |  |  |  |  | $ | 3,640,567 |  |  |  |  | $ | 3,389,842 |  |  |
Securities having a carrying value of $7.1 billion at September 30, 2023 as well as securities having a carrying value of $2.8 billion and $2.5 billion at December 31, 2022 and September 30, 2022, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank (“FHLB”) advances and available lines of credit, securities sold under repurchase agreements and derivatives. At September 30, 2023, there were no securities of a single issuer, other than U.S. government-sponsored agency securities, which exceeded 10% of shareholders’ equity.

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