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Investments
 6 Months Ended
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Investment
Investment Securities     
Securities Available-for-Sale
The following table presents amortized cost, gross unrealized gains and losses, and carrying values of securities available-for-sale as of the dates indicated:
 
June 30, 2015
 
December 31, 2014
 
 
 
Gross
 
Gross
 
 
 
 
 
Gross
 
Gross
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
 
 
Cost
 
Gains
 
Losses
 
Fair Value
 
Cost
 
Gains
 
Losses
 
Fair Value
 
(In thousands)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
government-sponsored enterprise
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
pass-through securities
$
411,842

 
$
15,282

 
$
(250
)
 
$
426,874

 
$
515,902

 
$
20,142

 
$
(372
)
 
$
535,672

Government agency and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
government-sponsored enterprise
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
collateralized mortgage obligations
262,222

 
4,443

 
(766
)
 
265,899

 
275,513

 
3,513

 
(1,080
)
 
277,946

Covered private label collateralized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
25,835

 
6,573

 
(85
)
 
32,323

 
26,889

 
7,153

 
(95
)
 
33,947

Other private label collateralized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
8,025

 
43

 
(43
)
 
8,025

 
10,961

 
46

 
(93
)
 
10,914

Municipal securities
720,835

 
10,358

 
(9,637
)
 
721,556

 
521,499

 
15,899

 
(1,282
)
 
536,116

Corporate debt securities
47,438

 
343

 
(371
)
 
47,410

 
110,074

 
597

 
(562
)
 
110,109

Collateralized loan obligations
133,128

 
1,067

 
(288
)
 
133,907

 
—

 
—

 
—

 
—

Government-sponsored enterprise debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
securities
36,267

 
813

 
—

 
37,080

 
36,232

 
525

 
—

 
36,757

Other securities
25,199

 
2

 
(117
)
 
25,084

 
25,801

 
33

 
(118
)
 
25,716

Total
$
1,670,791

 
$
38,924

 
$
(11,557
)
 
$
1,698,158

 
$
1,522,871

 
$
47,908

 
$
(3,602
)
 
$
1,567,177


Other securities consist primarily of asset‑backed securities. See Note 11, Fair Value Measurements, for information on fair value measurements and methodology.
As of June 30, 2015, securities available‑for‑sale with a carrying value of $364.3 million were pledged as collateral for borrowings, public deposits and other purposes as required by various statutes and agreements.
During the six months ended June 30, 2015 and 2014, we purchased $375.2 million and $163.4 million in securities available-for-sale.
During the six months ended June 30, 2015, we sold $28.7 million of municipal securities for a $698,000 gain, $67.5 million in corporate debt securities for a realized loss of $232,000 and $60.3 million in government agency and government-sponsored enterprise ("GSE") pass-through securities for a realized gain of $2.6 million. During the six months ended June 30, 2014, we sold $137.3 million in GSE pass-through securities for a realized gain of $4.8 million and $797,000 in other securities for a realized gain of $89,000. In addition, we sold $323.6 million of the $382.8 million of securities obtained in the CapitalSource Inc. merger for no gain or loss.

Unrealized Losses on Securities Available-for-Sale
The following tables present the gross unrealized losses and fair values of securities available-for-sale that were in unrealized loss positions, for which other-than-temporary impairments have not been recognized in earnings, as of the dates indicated:
 
June 30, 2015
 
Less Than 12 Months
 
12 Months or More
 
Total
 
 
 
Gross
 
 
 
Gross
 
 
 
Gross
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
(In thousands)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
Government agency and government-
 
 
 
 
 
 
 
 
 
 
 
sponsored enterprise pass-through
 
 
 
 
 
 
 
 
 
 
 
securities
$
4,952

 
$
(92
)
 
$
9,707

 
$
(158
)
 
$
14,659

 
$
(250
)
Government agency and government-
 
 
 
 
 
 
 
 
 
 
 
sponsored enterprise collateralized
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
21,528

 
(51
)
 
14,145

 
(715
)
 
35,673

 
(766
)
Covered private label collateralized
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
1,126

 
(27
)
 
626

 
(58
)
 
1,752

 
(85
)
Other private label collateralized
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
2,188

 
(39
)
 
428

 
(4
)
 
2,616

 
(43
)
Municipal securities
344,761

 
(7,998
)
 
38,651

 
(1,639
)
 
383,412

 
(9,637
)
Corporate debt securities
25,104

 
(371
)
 
—

 
—

 
25,104

 
(371
)
Collateralized loan obligations
39,184

 
(288
)
 
—

 
—

 
39,184

 
(288
)
Other securities
12,366

 
(112
)
 
10,035

 
(5
)
 
22,401

 
(117
)
     Total
$
451,209

 
$
(8,978
)
 
$
73,592

 
$
(2,579
)
 
$
524,801

 
$
(11,557
)

 
December 31, 2014
 
Less Than 12 Months
 
12 Months or More
 
Total
 
 
 
Gross
 
 
 
Gross
 
 
 
Gross
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
(In thousands)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Government agency and government-
 
 
 
 
 
 
 
 
 
 
 
sponsored enterprise pass-through
 
 
 
 
 
 
 
 
 
 
 
securities
$
10,711

 
$
(13
)
 
$
27,100

 
$
(359
)
 
$
37,811

 
$
(372
)
Government agency and government-
 
 
 
 
 
 
 
 
 
 
 
sponsored enterprise collateralized
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
23,908

 
(73
)
 
40,652

 
(1,007
)
 
64,560

 
(1,080
)
Covered private label collateralized
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
—

 
—

 
1,000

 
(95
)
 
1,000

 
(95
)
Other private label collateralized
 
 
 
 
 
 
 
 
 
 
 
mortgage obligations
1,618

 
(93
)
 
—

 
—

 
1,618

 
(93
)
Municipal securities
11,854

 
(66
)
 
84,822

 
(1,216
)
 
96,676

 
(1,282
)
Corporate debt securities
52,071

 
(547
)
 
10,131

 
(15
)
 
62,202

 
(562
)
Other securities
6,440

 
(90
)
 
10,019

 
(28
)
 
16,459

 
(118
)
Total
$
106,602

 
$
(882
)
 
$
173,724

 
$
(2,720
)
 
$
280,326

 
$
(3,602
)

We reviewed the securities that were in a loss position at June 30, 2015, and concluded their unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Accordingly, we determined the securities were temporarily impaired and we did not recognize such impairment in the condensed consolidated statements of earnings. Although we occasionally sell securities for risk management purposes to reduce risks related to price volatility and duration, we do not foresee having to sell any temporarily impaired securities strictly for liquidity needs and believe that it is more likely than not we would not be required to sell any temporarily impaired securities before recovery of their amortized cost.
Contractual Maturities
The following table presents the contractual maturities of our available-for-sale securities portfolio based on amortized cost and carrying value as of the date indicated:
 
June 30, 2015
 
Amortized
 
Fair
 
Cost
 
Value
 
(In thousands)
Due in one year or less
$
5,783

 
$
5,810

Due after one year through five years
106,649

 
108,045

Due after five years through ten years
282,802

 
291,215

Due after ten years
1,275,557

 
1,293,088

Total securities available-for-sale
$
1,670,791

 
$
1,698,158


Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities may differ from contractual maturities because obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
FHLB Stock
At June 30, 2015, we had a $17.3 million investment in Federal Home Loan Bank of San Francisco ("FHLB") stock carried at cost. During the six months ended June 30, 2015, the carrying value of FHLB stock decreased by $23.4 million due to $27.3 million in redemptions, offset partially by $3.9 million in purchases. We evaluated the carrying value of our FHLB stock investment at June 30, 2015, and determined that it was not impaired. Our evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment, and our intent and ability to hold this investment for a period of time sufficient to recover our recorded investment. The FHLB paid us a special dividend of $1.4 million in the second quarter of 2015.
Interest Income on Investment Securities
The following table presents the composition of our interest income on investment securities for the periods indicated:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
2015
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Taxable interest
$
7,577

 
$
7,473

 
$
7,668

 
$
15,050

 
$
14,584

Non-taxable interest
4,808

 
3,894

 
3,333

 
8,702

 
6,661

Dividend income
2,185

 
828

 
985

 
3,013

 
1,564

Total interest income on investment securities
$
14,570

 
$
12,195

 
$
11,986

 
$
26,765

 
$
22,809