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:



	September 30, 2016									December 31, 2015
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
Security Type:	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(In thousands)
Residential mortgage-backed
securities ("MBS") and collateralized
mortgage obligations ("CMOs"):
Agency MBS	$	518,996	$	10,639	$	(694	)	$	528,941	$	660,069	$	11,517	$	(3,746	)	$	667,840
Agency CMOs	154,216		3,196		(181		)	157,231		193,148		2,633		(1,026		)	194,755
Private label CMOs	133,917		5,377		(669		)	138,625		140,065		5,837		(1,106		)	144,796
Municipal securities	1,437,952		84,571		(29		)	1,522,494		1,508,968		39,435		(1,072		)	1,547,331
Agency commercial MBS	517,163		15,299		(1,189		)	531,273		392,729		1,509		(2,797		)	391,441
Corporate debt securities	47,155		1,856		—			49,011		49,047		327		(950		)	48,424
Collateralized loan obligations	155,373		1,511		(237		)	156,647		133,192		128		(1,131		)	132,189
SBA securities	185,639		1,909		(248		)	187,300		211,946		41		(830		)	211,157
US Treasury securities	—		—		—			—		70,196		—		(816		)	69,380
Agency debt securities	—		—		—			—		36,302		611		—			36,913
Asset-backed and other securities	69,189		722		(98		)	69,813		116,723		119		(1,631		)	115,211
Total	$	3,219,600	$	125,080	$	(3,345	)	$	3,341,335	$	3,512,385	$	62,157	$	(15,105	)	$	3,559,437

As of September 30, 2016, securities available-for-sale with a carrying value of $342.2 million were pledged as collateral for borrowings, public deposits and other purposes as required by various statutes and agreements.

During the three months ended September 30, 2016, we sold $39.1 million of securities available-for-sale for a gross realized gain of $1.0 million and a gross realized loss of $0.6 million. During the three months ended September 30, 2015, we sold $52.0 million of securities available-for-sale for a gross realized gain of $0.7 million.

During the nine months ended September 30, 2016, we sold $383.9 million of securities available-for-sale for a gross realized gain of $10.5 million and a gross realized loss of $1.6 million. During the nine months ended September 30, 2015, we sold $208.4 million of securities available-for-sale for a gross realized gain of $4.4 million and a gross realized loss of $0.7 million.

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:



	September 30, 2016
	Less Than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Security Type:	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
Residential MBS and CMOs:
Agency MBS	$	33,817	$	(100	)	$	130,786	$	(594	)	$	164,603	$	(694	)
Agency CMOs	18,893		(95		)	26,476		(86		)	45,369		(181		)
Private label CMOs	14,552		(98		)	29,058		(571		)	43,610		(669		)
Municipal securities	5,338		(29		)	—		—			5,338		(29		)
Agency commercial MBS	77,706		(1,189		)	—		—			77,706		(1,189		)
Collateralized loan obligations	2,506		(5		)	39,197		(232		)	41,703		(237		)
SBA securities	2,956		(9		)	39,842		(239		)	42,798		(248		)
Asset-backed and other securities	5		(2		)	14,974		(96		)	14,979		(98		)
Total	$	155,773	$	(1,527	)	$	280,333	$	(1,818	)	$	436,106	$	(3,345	)



	December 31, 2015
	Less Than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Security Type:	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
Residential MBS and CMOs:
Agency MBS	$	352,042	$	(3,480	)	$	9,342	$	(266	)	$	361,384	$	(3,746	)
Agency CMOs	117,786		(1,026		)	—		—			117,786		(1,026		)
Private label CMOs	93,533		(1,000		)	1,638		(106		)	95,171		(1,106		)
Municipal securities	126,892		(1,061		)	531		(11		)	127,423		(1,072		)
Agency commercial MBS	236,098		(2,156		)	14,230		(641		)	250,328		(2,797		)
US Treasury securities	69,380		(816		)	—		—			69,380		(816		)
Corporate debt securities	29,379		(950		)	—		—			29,379		(950		)
Collateralized loan obligations	100,993		(1,131		)	—		—			100,993		(1,131		)
SBA securities	179,942		(830		)	—		—			179,942		(830		)
Asset-backed and other securities	71,619		(1,182		)	16,091		(449		)	87,710		(1,631		)
Total	$	1,377,664	$	(13,632	)	$	41,832	$	(1,473	)	$	1,419,496	$	(15,105	)

We reviewed the securities that were in a loss position at September 30, 2016, and concluded their unrealized losses were not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Such unrealized losses were a result of the level of market interest rates and pricing changes caused by shifting supply and demand dynamics relative to the types of securities. 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 portfolio management purposes, 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 of Securities Available-for-Sale

The following table presents the contractual maturities of our securities available-for-sale portfolio based on amortized cost and carrying value as of the date indicated:



	September 30, 2016
	Amortized		Fair
Maturity:	Cost		Value
	(In thousands)
Due in one year or less	$	8,352	$	8,562
Due after one year through five years	252,427		259,096
Due after five years through ten years	714,467		738,034
Due after ten years	2,244,354		2,335,643
Total securities available-for-sale	$	3,219,600	$	3,341,335

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.

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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2016		2016		2015		2016		2015
	(In thousands)
Taxable interest	$	11,446	$	11,406	$	7,323	$	34,248	$	22,373
Non-taxable interest	10,333		10,503		6,058		31,562		14,760
Dividend income	408		511		574		1,344		3,587
Total interest income on investment securities	$	22,187	$	22,420	$	13,955	$	67,154	$	40,720