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Investment Securities
 12 Months Ended
Dec. 31, 2013
Investment Securities  
Investment Securities

4.     Investment Securities

        Investment securities at December 31, 2013 and 2012 are as follows:

2013
  Amortized
cost		   Unrealized
gains		   Unrealized
losses		   Fair value
 
   (in thousands)

Available for sale securities:

                        

Mortgage-backed securities

   $ 8     1     -     9

Corporate bonds

     14,568     61     -     14,629

Affiliated mutual funds

     87,710     5,899     (957)     92,652
                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 102,286     5,961     (957)     107,290
                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                 

Trading securities:

    
 		    
 		    
 		    
 

Mortgage-backed securities

                       37

Municipal bonds

                       501

Corporate bonds

                       9,412

Common stock

                       60

Affiliated mutual funds

                       84,048
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

                       94,058
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Total investment securities

                       201,348
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       


 

2012
  Amortized
cost		   Unrealized
gains		   Unrealized
losses		   Fair value
 
   (in thousands)

Available for sale securities:

                        

Mortgage-backed securities

   $ 9     1     -     10

Corporate bonds

     30,408     248     (3)     30,653

Affiliated mutual funds

     73,443     3,749     (1,090)     76,102
                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

   $ 103,860     3,998     (1,093)     106,765
                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                 

Trading securities:

    
 		    
 		    
 		    
 

Mortgage-backed securities

                       44

Municipal bonds

                       501

Corporate bonds

                       12,112

Common stock

                       37

Affiliated mutual funds

                       56,683
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

                       69,377
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Total investment securities

                       176,142
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        A summary of available for sale affiliated mutual funds with fair values below carrying values at December 31, 2013 is as follows:

 
   Less than 12 months   12 months or longer   Total
 
   Fair value   Unrealized
losses		   Fair value   Unrealized
losses		   Fair value   Unrealized
losses
 
   (in thousands)

Affiliated mutual funds

   $ 29,598     (939)     213     (18)     29,811     (957)
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total temporarily impaired securities

   $ 29,598     (939)     213     (18)     29,811     (957)
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                         

        Based upon our assessment of these affiliated mutual funds, the time frame investments have been in a loss position and our intent to hold affiliated mutual funds until they have recovered, we determined that a write-down was not necessary at December 31, 2013.

        Mortgage-backed securities and corporate bonds accounted for as available for sale and held as of December 31, 2013 mature as follows:

 
   Amortized
cost		   Fair value
 
   (in thousands)

Within one year

   $ 14,568     14,629

After five years but within 10 years

     8     9
         
​ ​ ​ ​ ​ ​ ​

 

   $ 14,576     14,638
         
​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​
         

        Mortgage-backed securities, municipal bonds and corporate bonds accounted for as trading and held as of December 31, 2013 mature as follows:

 
   Fair value    
 
   (in thousands)

Within one year

   $ 9,412      

After one year but within five years

     501      

After five years but within 10 years

     37      
           
​ ​ ​ ​ ​ ​ ​

 

   $ 9,950      
           
​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​
           

        Investment securities with fair values of $442.0 million, $79.9 million and $55.7 million were sold during 2013, 2012 and 2011, respectively. During 2013, realized gains of $14.4 million and $7.7 million were recognized from the sale of $247.0 million in available for sale securities and the sale of $195.0 million in trading securities, respectively. During 2012, net realized gains of $3.2 million and $5.3 million were recognized from the sale of $32.9 million in available for sale securities and the sale of $47.0 million in trading securities, respectively. During 2011, net realized gains of $2.3 million and $1.4 million were recognized from the sale of $22.1 million in available for sale securities and the sale of $33.6 million in trading securities, respectively.

        The aggregate carrying amount of our equity method investments, classified in other assets, was $0.4 million and $4.6 million at December 31, 2013 and 2012, respectively. At December 31, 2013, our investment consists of a limited partnership interest in private equity funds.

        Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of the asset. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs that are significant to the overall valuation. The three-tier hierarchy of inputs is summarized as follows:

  • •
    Level 1 – Investments are valued using quoted prices in active markets for identical securities.

    •
    Level 2 – Investments are valued using other significant observable inputs, including quoted prices in active markets for similar securities.

    •
    Level 3 – Investments are valued using significant unobservable inputs, including the Company's own assumptions in determining the fair value of investments.

        Assets classified as Level 2 can have a variety of observable inputs. These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value. The fair value of municipal bonds is measured based on pricing models that take into account, among other factors, information received from market makers and broker/dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance and benchmark yield curves. The fair value of corporate bonds is measured using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads and fundamental data relating to the issuer. The fair value of equity derivatives is measured based on active market broker quotes, evaluated broker quotes and evaluated prices from vendors.

        Securities' values classified as Level 3 are primarily determined through the use of a single quote (or multiple quotes) from dealers in the securities using proprietary valuation models. These quotes involve significant unobservable inputs, and thus, the related securities are classified as Level 3 securities.

        The following tables summarize our investment securities as of December 31, 2013 and 2012 that are recognized in our consolidated balance sheets using fair value measurements based on the differing levels of inputs. There were no transfers between levels for the years ended December 31, 2013 or 2012.

2013
   Level 1
   Level 2
   Level 3
   Total
             
 
   (in thousands)

Mortgage-backed securities

   $ -     46     -     46

Municipal bonds

     -     501     -     501

Corporate bonds

     -     24,041     -     24,041

Common stock

     60     -     -     60

Affiliated mutual funds

     176,700     -     -     176,700
     
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 176,760   $ 24,588   $ -   $ 201,348
                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                 


 

2012
   Level 1
   Level 2
   Level 3
   Total
             
 
   (in thousands)

Mortgage-backed securities

     -     54     -     54

Municipal bonds

     -     501     -     501

Corporate bonds

     -     42,765     -     42,765

Common stock

     37     -     -     37

Affiliated mutual funds

     132,785     -     -     132,785
     
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 132,822   $ 43,320   $ -   $ 176,142
                 
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​