Investment Securities (Tables)

9 Months Ended

Sep. 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 September 30, 2014 and December 31, 2013 are summarized below.



	September 30, 2014
(in thousands)	Amortized Cost⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	42,627	41	—		42,668
U.S. Government agency securities	26,435		1,034	—		27,469
Securities issued by U.S. Government sponsored enterprises	81,549		778	—		82,327
Mortgage-backed securities issued by U.S. Government agencies	176,254		2,074	(933	)	177,395
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,323,561		13,516	(20,469	)	2,316,608
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	371,656		4,052	(2,249	)	373,459
State and municipal securities	5,099		204	(2	)	5,301
Equity securities	3,228		3,129	—		6,357
Other investments	19,110		—	(437	)	18,673
Total investment securities available for sale	$	3,049,519	24,828	(24,090	)	3,050,257

	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 September 30, 2014 and December 31, 2013, are presented below.



	September 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	9,678		14	29,955	919	39,633	933
Mortgage-backed securities issued by U.S. Government sponsored enterprises	220,542		562	1,099,220	19,907	1,319,762	20,469
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	122,239	2,249	122,239	2,249
State and municipal securities	—		—	43	2	43	2
Equity securities	—		—	—	—	—	—
Other investments	16,889		221	1,784	216	18,673	437
Total	$	247,109	797	1,253,241	23,293	1,500,350	24,090

	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 September 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	24,834	—	—	—	42,627
U.S. Government agency securities	78		12,577	13,780	—	—	26,435
Securities issued by U.S. Government sponsored enterprises	—		81,549	—	—	—	81,549
Mortgage-backed securities issued by U.S. Government agencies	5		1	—	176,248	—	176,254
Mortgage-backed securities issued by U.S. Government sponsored enterprises	431		1,605	1,926,129	395,396	—	2,323,561
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	—	371,656	—	371,656
State and municipal securities	100		1,971	289	2,739	—	5,099
Equity securities	—		—	—	—	3,228	3,228
Other investments	—		—	—	17,000	2,110	19,110
Total amortized cost	$	18,407	122,537	1,940,198	963,039	5,338	3,049,519
Fair Value
U.S. Treasury securities	$	17,793	24,875	—	—	—	42,668
U.S. Government agency securities	80		13,014	14,375	—	—	27,469
Securities issued by U.S. Government sponsored enterprises	—		82,327	—	—	—	82,327
Mortgage-backed securities issued by U.S. Government agencies	5		1	—	177,389	—	177,395
Mortgage-backed securities issued by U.S. Government sponsored enterprises	456		1,707	1,912,088	402,357	—	2,316,608
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	—	373,459	—	373,459
State and municipal securities	100		2,009	305	2,887	—	5,301
Equity securities	—		—	—	—	6,357	6,357
Other investments	—		—	—	16,666	2,007	18,673
Total fair value	$	18,434	123,933	1,926,768	972,758	8,364	3,050,257

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



	Nine Months Ended September 30,					Three Months Ended September 30,
(in thousands)	2014			2013		2014	2013
Proceeds from sales of investment securities available for sale	$	20,815		$403,792		—	56,406
Gross realized gains	1,419			3,185		—	1,150
Gross realized losses	(88		)	(614	)	—	(26	)
Investment securities gains, net	$	1,331		2,571		—	1,124

- 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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