Note 3. Securities

At March 31, 2014, the Company had total securities of $8.65 billion, comprised of securities available-for-sale at fair value of $5.39 billion, securities held-to-maturity at amortized cost of $3.20 billion and trading securities at fair value of $61.6 million. At December 31, 2013, the Company had total securities of $9.28 billion, comprised of securities available-for-sale at fair value of $6.24 billion, securities held-to-maturity at amortized cost of $2.96 billion and trading securities at fair value of $82.4 million.

The following is a summary of amortized cost and estimated fair value for the major categories of securities available-for-sale and securities held-to-maturity at March 31, 2014 and December 31, 2013:

			Gross		Gross
	Amortized		Unrealized		Unrealized
(in thousands)	Cost		Gains		Losses			Fair Value
March 31, 2014
Securities available-for-sale:
U.S. Treasury	$	185,275	$	38	$	—		$	185,313
Federal agency - Debt	756,828		648		(3,787		)	753,689
Federal agency - MBS	124,698		3,119		(2,204		)	125,613
CMOs - Federal agency	3,715,837		28,420		(54,311		)	3,689,946
CMOs - Non-agency	36,773		351		(776		)	36,348
State and municipal	398,960		8,055		(118		)	406,897
Other debt securities	174,907		3,501		—			178,408
Total debt securities	5,393,278		44,132		(61,196		)	5,376,214
Equity securities and mutual funds	787		9,753		—			10,540
Total securities available-for-sale	$	5,394,065	$	53,885	$	(61,196	)	$	5,386,754

Securities held-to-maturity (1):
Federal agency - Debt	$	265,071	$	372	$	(3,342	)	$	262,101
Federal agency - MBS	450,334		3,601		(7,335		)	446,600
CMOs - Federal agency	1,867,099		4,867		(32,845		)	1,839,121
State and municipal	522,104		6,234		(9,287		)	519,051
Other debt securities	98,389		55		(249		)	98,195
Total securities held-to-maturity	$	3,202,997	$	15,129	$	(53,058	)	$	3,165,068

(1) Securities held-to-maturity are presented in the consolidated balance sheets at amortized cost.

			Gross		Gross
	Amortized		Unrealized		Unrealized
(in thousands)	Cost		Gains		Losses			Fair Value
December 31, 2013
Securities available-for-sale:
U.S. Treasury	$	35,312	$	23	$	—		$	35,335
Federal agency - Debt	1,417,509		938		(7,911		)	1,410,536
Federal agency - MBS	156,399		3,615		(2,788		)	157,226
CMOs - Federal agency	4,037,348		30,721		(70,771		)	3,997,298
CMOs - Non-agency	38,383		127		(1,048		)	37,462
State and municipal	407,312		8,806		(123		)	415,995
Other debt securities	175,091		3,731		—			178,822
Total debt securities	6,267,354		47,961		(82,641		)	6,232,674
Equity securities and mutual funds	337		8,106		—			8,443
Total securities available-for-sale	$	6,267,691	$	56,067	$	(82,641	)	$	6,241,117

Securities held-to-maturity (1):
Federal agency - Debt	$	178,413	$	133	$	(5,122	)	$	173,424
Federal agency - MBS	445,360		1,005		(11,930		)	434,435
CMOs - Federal agency	1,781,219		1,839		(40,621		)	1,742,437
State and municipal	454,155		421		(19,014		)	435,562
Other debt securities	98,696		—		(619		)	98,077
Total securities held-to-maturity	$	2,957,843	$	3,398	$	(77,306	)	$	2,883,935

(1) Securities held-to-maturity are presented in the consolidated balance sheets at amortized cost.

Proceeds from sales of securities available-for-sale were $377.1 million for the three months ended March 31, 2014 and $1.03 billion for the three months ended March 31, 2013. There were no sales of securities held-to-maturity during the three months ended March 31, 2014 and 2013. The following table provides the gross realized gains and losses on the sales and calls of securities (including trading securities):

	For the three months ended
	March 31,
(in thousands)	2014			2013
Gross realized gains	$	2,602		$	1,046
Gross realized losses	(480		)	—
Net realized gains	$	2,122		$	1,046

Interest income on securities for the three months ended March 31, 2014 and 2013 is comprised of: (i) taxable interest income of $36.0 million and $39.8 million, respectively (ii) nontaxable interest income of $5.5 million and $4.4 million, respectively, and (iii) dividend income of $9 thousand and $19 thousand, respectively.

The following table provides the expected remaining maturities of debt securities included in the securities portfolio at March 31, 2014, except for maturities of mortgage-backed securities which are allocated according to the average life of expected cash flows. Average expected maturities will differ from contractual maturities because of the amortizing nature of the loan collateral and prepayment behavior of borrowers.

(in thousands)	One year or less		Over 1 year through 5 years		Over 5 years through 10 years		Over 10 years		Total

Securities available-for-sale:
U.S. Treasury	$	172,234	$	13,079	$	—	$	—	$	185,313
Federal agency - Debt	215,510		499,012		39,167		—		753,689
Federal agency - MBS	—		107,729		17,884		—		125,613
CMOs - Federal agency	98,666		3,244,429		346,851		—		3,689,946
CMOs - Non-agency	2,500		33,848		—		—		36,348
State and municipal	78,801		324,777		—		3,319		406,897
Other	29,345		149,063		—		—		178,408

Total debt securities available-for-sale	$	597,056	$	4,371,937	$	403,902	$	3,319	$	5,376,214

Amortized cost	$	594,486	$	4,385,520	$	409,872	$	3,400	$	5,393,278

Securities held-to-maturity:
Federal agency - Debt	$	—	$	11,082	$	57,513	$	196,476	$	265,071
Federal agency - MBS	—		54,660		377,913		17,761		450,334
CMOs - Federal agency	—		648,349		1,218,750		—		1,867,099
State and municipal	1,434		35,041		357,339		128,290		522,104
Other	—		98,389		—		—		98,389
Total debt securities held-to-maturity at amortized cost	$	1,434	$	847,521	$	2,011,515	$	342,527	$	3,202,997

Impairment Assessment

The Company performs a quarterly assessment of debt and equity securities in its investment portfolio to determine whether a decline in fair value below amortized cost is other-than-temporary. The Company’s impairment assessment of debt securities takes the following factors into consideration: the length of time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer, including events specific to the issuer or industry; defaults or deferrals of scheduled interest and principal payments; external credit ratings; and whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. For equity securities, the evaluation of whether an impairment is other than temporary is based on whether and when an equity security will recover in value and whether the Company has the intent and ability to hold the equity security until the anticipated recovery in value occurs. If a decline in fair value is determined to be other-than-temporary, the cost basis of the individual security is written down to fair value which then becomes the security’s new cost basis. The new cost basis is not adjusted for subsequent recoveries in fair value.

Other-than-temporary impairment losses on equity securities are recognized in earnings. For debt securities, if the Company intends to sell an impaired security or it is more likely than not it will be required to sell a security prior to recovery of its amortized cost, an impairment loss is recognized in earnings for the entire difference between the amortized cost and fair value of the security on the measurement date. If the Company does not intend to sell the security or it is not more likely than not it will be required to sell the security prior to recovery of its amortized cost, the credit loss component of impairment is recognized in earnings. Impairment associated with factors other than credit, such as market liquidity, is recognized in other comprehensive income, net of tax.

Securities Deemed to be Other-Than-Temporarily Impaired

There were no impairment losses recorded in earnings on securities available-for-sale for the three months ended March 31, 2014 and 2013. There was no non-credit-related other-than-temporary impairment recognized in accumulated other comprehensive income or loss (“AOCI”) on securities available-for-sale at March 31, 2014. The Company recognized $0.5 million of non-credit-related other-than-temporary impairment in AOCI on non-agency CMO securities classified as available-for-sale at March 31, 2013. No impairment losses were recognized in earnings or AOCI for securities held-to-maturity during the three months ended March 31, 2014 and 2013.

The following table summarizes the changes in cumulative credit-related other-than-temporary impairment recognized in earnings for debt securities for the three months ended March 31, 2014 and 2013. Credit-related other-than-temporary impairment that was recognized in earnings is reflected as an “Initial credit-related impairment” if the period reported is the first time the security had a credit impairment. A credit-related other-than-temporary impairment is reflected as a “Subsequent credit-related impairment” if the period reported is not the first time the security had a credit impairment. Cumulative impairment is reduced for securities with previously recognized credit-related impairment that were sold or redeemed during the period. Cumulative impairment is further adjusted for other changes in expected cash flows.

	For the three months ended
	March 31,
(in thousands)	2014		2013
Balance, beginning of period	$	4,549	$	16,486
Reduction for securities sold or redeemed	—		(12,761		)
Reduction for increase in expected cash flows on securities for which OTTI was previously recognized	—		(49		)
Balance, end of period	$	4,549	$	3,676

The following table provides a summary of the gross unrealized losses and fair value of investment securities that are not deemed to be other-than-temporarily impaired aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position as of March 31, 2014 and December 31, 2013. The table also includes investment securities that had both a credit-related impairment recognized in earnings and a non-credit-related impairment recognized in AOCI.

	Less than 12 months				12 months or greater				Total
(in thousands)	Fair Value		Estimated Unrealized Loss		Fair Value		Estimated Unrealized Loss		Fair Value		Estimated Unrealized Loss
March 31, 2014
Securities available-for-sale:
Federal agency - Debt	$	573,402	$	3,787	$	—	$	—	$	573,402	$	3,787
Federal agency - MBS	17,921		76		42,974		2,128		60,895		2,204
CMOs - Federal agency	1,234,220		22,311		801,649		32,000		2,035,869		54,311
CMOs - Non-agency	7,751		160		8,506		616		16,257		776
State and municipal	7,096		18		4,249		100		11,345		118
Total securities available-for-sale	$	1,840,390	$	26,352	$	857,378	$	34,844	$	2,697,768	$	61,196

Securities held-to-maturity:
Federal agency - Debt	$	166,775	$	3,342	$	—	$	—	$	166,775	$	3,342
Federal agency - MBS	199,582		5,623		24,992		1,712		224,574		7,335
CMOs - Federal agency	1,238,387		25,387		112,092		7,458		1,350,479		32,845
State and municipal	175,726		5,547		52,479		3,740		228,205		9,287
Other debt securities	80,571		249		—		—		80,571		249
Total securities held-to-maturity	$	1,861,041	$	40,148	$	189,563	$	12,910	$	2,050,604	$	53,058

	Less than 12 months				12 months or greater				Total
(in thousands)	Fair Value		Estimated Unrealized Loss		Fair Value		Estimated Unrealized Loss		Fair Value		Estimated Unrealized Loss
December 31, 2013
Securities available-for-sale:
Federal agency - Debt	$	1,026,142	$	7,911	$	—	$	—	$	1,026,142	$	7,911
Federal agency - MBS	17,962		85		43,492		2,703		61,454		2,788
CMOs - Federal agency	1,637,994		35,922		728,101		34,849		2,366,095		70,771
CMOs - Non-agency	10,056		319		8,483		729		18,539		1,048
State and municipal	16,521		39		4,266		84		20,787		123
Total securities available-for-sale	$	2,708,675	$	44,276	$	784,342	$	38,365	$	3,493,017	$	82,641

Securities held-to-maturity:
Federal agency - Debt	$	156,290	$	5,122	$	—	$	—	$	156,290	$	5,122
Federal agency - MBS	321,090		10,513		15,338		1,417		336,428		11,930
CMOs - Federal agency	1,539,464		36,435		63,276		4,186		1,602,740		40,621
State and municipal	347,305		14,190		41,102		4,824		388,407		19,014
Other debt securities	98,077		619		—		—		98,077		619
Total securities held-to-maturity	$	2,462,226	$	66,879	$	119,716	$	10,427	$	2,581,942	$	77,306

At March 31, 2014, the Company had $2.70 billion of securities available-for-sale and $2.05 billion of securities held-to-maturity in an unrealized loss position. The debt securities in an unrealized loss position totaled 638 and included 35 federal agency debt securities, 35 federal agency MBS securities, 159 federal agency CMOs, 3 non-agency CMOs, 398 state and municipal securities and 8 other debt securities.

At December 31, 2013, the Company had $3.49 billion of securities available-for-sale and $2.58 billion of securities held-to-maturity in an unrealized loss position. The debt securities in an unrealized loss position totaled 809 and included 47 federal agency debt securities, 44 federal agency MBS, 182 federal agency CMOs, 4 non-agency CMOs, 520 state and municipal securities and 12 other debt securities.