Investment Securities (Tables)

6 Months Ended

Jun. 30, 2014

Summary of Available-for-Sale Investment Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available for sale at June 30, 2014 and December 31, 2013 are summarized below.



	June 30, 2014
(in thousands)	Amortized Cost⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	17,793	—	—		17,793
U.S. Government agency securities	33,264		1,028	—		34,292
Securities issued by U.S. Government sponsored enterprises	111,795		1,014	—		112,809
Mortgage-backed securities issued by U.S. Government agencies	173,296		1,848	(766	)	174,378
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,327,735		21,176	(10,616	)	2,338,295
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	384,836		4,125	(2,488	)	386,473
State and municipal securities	5,222		209	(2	)	5,429
Equity securities	3,228		3,725	—		6,953
Other investments	4,099		—	(336	)	3,763
Total investment securities available for sale	$	3,061,268	33,125	(14,208	)	3,080,185

	December 31, 2013
(in thousands)	Amortized Cost⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	17,791	—	—		17,791
U.S. Government agency securities	33,480		1,161	—		34,641
Securities issued by U.S. Government sponsored enterprises	112,305		1,440	—		113,745
Mortgage-backed securities issued by U.S. Government agencies	196,521		2,257	(3,661	)	195,117
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,443,282		9,718	(31,640	)	2,421,360
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	406,717		698	(8,875	)	398,540
State and municipal securities	6,723		168	(2	)	6,889
Equity securities	3,856		3,728	—		7,584
Other investments	4,074		—	(383	)	3,691
Total investment securities available for sale	$	3,224,749	19,170	(44,561	)	3,199,358


⁽¹⁾	Amortized cost is adjusted for other-than-temporary impairment charges in 2014 and 2013, which have been recognized in the consolidated statements of income in the applicable year, and were considered inconsequential.

Schedule of Unrealized Loss on Investments

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2014 and December 31, 2013, are presented below.



	June 30, 2014
	Less than 12 Months			12 Months or Longer		Total
(in thousands)	Fair Value		Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
U.S. Treasury securities	$	—	—	—	—	—	—
U.S. Government agency securities	—		—	—	—	—	—
Securities issued by U.S. Government sponsored enterprises	—		—	—	—	—	—
Mortgage-backed securities issued by U.S. Government agencies	—		—	30,922	766	30,922	766
Mortgage-backed securities issued by U.S. Government sponsored enterprises	—		—	1,052,375	10,616	1,052,375	10,616
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	125,675	2,488	125,675	2,488
State and municipal securities	—		—	42	2	42	2
Equity securities	—		—	—	—	—	—
Other investments	1,897		202	1,866	134	3,763	336
Total	$	1,897	202	1,210,880	14,006	1,212,777	14,208

	December 31, 2013
	Less than 12 Months			12 Months or Longer		Total
(in thousands)	Fair Value		Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
U.S. Treasury securities	$	—	—	—	—	—	—
U.S. Government agency securities	—		—	—	—	—	—
Securities issued by U.S. Government sponsored enterprises	—		—	—	—	—	—
Mortgage-backed securities issued by U.S. Government agencies	121,607		3,363	2,951	298	124,558	3,661
Mortgage-backed securities issued by U.S. Government sponsored enterprises	1,885,521		31,640	—	—	1,885,521	31,640
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	282,898		8,875	—	—	282,898	8,875
State and municipal securities	—		—	40	2	40	2
Equity securities	—		—	—	—	—	—
Other investments	1,969		105	1,722	278	3,691	383
Total	$	2,291,995	43,983	4,713	578	2,296,708	44,561

Amortized Cost and Estimated Fair Value by Contractual Maturity of Investment Securities Available-for-Sale

For purposes of the maturity table, mortgage-backed securities and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.



	Distribution of Maturities at June 30, 2014
(in thousands)	Within One Year		1 to 5 Years	5 to 10 Years	More Than 10 Years	No Stated Maturity	Total
Amortized Cost
U.S. Treasury securities	$	17,793	—	—	—	—	17,793
U.S. Government agency securities	114		9,097	24,053	—	—	33,264
Securities issued by U.S. Government sponsored enterprises	30,030		81,765	—	—	—	111,795
Mortgage-backed securities issued by U.S. Government agencies	15		1	—	173,280	—	173,296
Mortgage-backed securities issued by U.S. Government sponsored enterprises	102		2,429	1,913,531	411,673	—	2,327,735
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	—	384,836	—	384,836
State and municipal securities	95		2,098	289	2,740	—	5,222
Equity securities	—		—	—	—	3,228	3,228
Other investments	—		—	—	2,000	2,099	4,099
Total amortized cost	$	48,149	95,390	1,937,873	974,529	5,327	3,061,268
Fair Value
U.S. Treasury securities	$	17,793	—	—	—	—	17,793
U.S. Government agency securities	114		9,414	24,764	—	—	34,292
Securities issued by U.S. Government sponsored enterprises	30,187		82,622	—	—	—	112,809
Mortgage-backed securities issued by U.S. Government agencies	15		1	—	174,362	—	174,378
Mortgage-backed securities issued by U.S. Government sponsored enterprises	108		2,595	1,913,923	421,669	—	2,338,295
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	—	386,473	—	386,473
State and municipal securities	95		2,139	308	2,887	—	5,429
Equity securities	—		—	—	—	6,953	6,953
Other investments	—		—	—	1,866	1,897	3,763
Total fair value	$	48,312	96,771	1,938,995	987,257	8,850	3,080,185

Schedule of Activity for Available-for-Sale Securities

Proceeds from sales, gross gains, and gross losses on sales of securities available for sale for the six and three months ended June 30, 2014 and 2013 are presented below. Other-than-temporary impairment charges of $88 thousand are included in gross realized losses for the six months ended June 30, 2014. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.



	Six Months Ended June 30,					Three Months Ended June 30,
(in thousands)	2014			2013		2014	2013
Proceeds from sales of investment securities available for sale	$	20,815		$347,386		—	135,146
Gross realized gains	1,419			2,036		—	1,760
Gross realized losses	(88		)	(588	)	—	(357	)
Investment securities gains, net	$	1,331		1,448		—	1,403

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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