SECURITIES

A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)



	December 31,
	2013									2012
	Amortized Cost		Gross Unrealized					Fair Value		Amortized Cost		Gross Unrealized					Fair Value
	Amortized Cost		Gains		Losses			Fair Value		Amortized Cost		Gains		Losses			Fair Value
Securities Available-for-Sale
U.S. agency securities	$	500	$	—	$	—		$	500	$	508	$	—	$	—		$	508
Collateralized mortgage obligations ("CMOs")	490,962		1,427		(16,621		)	475,768		397,146		3,752		(515		)	400,383
Other mortgage-backed securities ("MBSs")	135,097		3,349		(2,282		)	136,164		117,785		5,183		(68		)	122,900
Municipal securities	457,318		9,673		(5,598		)	461,393		495,906		24,623		(486		)	520,043
Trust preferred collateralized debt obligations ("CDOs")	46,532		—		(28,223		)	18,309		46,533		—		(34,404		)	12,129
Corporate debt securities	12,999		1,930		—			14,929		13,006		2,333		—			15,339
Equity securities:
Hedge fund investment	1,208		1,971		—			3,179		1,231		385		—			1,616
Other equity securities	2,498		75		(90		)	2,483		8,459		1,026		—			9,485
Total equity securities	3,706		2,046		(90		)	5,662		9,690		1,411		—			11,101
Total available- for-sale securities	$	1,147,114	$	18,425	$	(52,814	)	$	1,112,725	$	1,080,574	$	37,302	$	(35,473	)	$	1,082,403
Securities Held-to-Maturity
Municipal securities	$	44,322	$	—	$	(935	)	$	43,387	$	34,295	$	1,728	$	—		$	36,023
Trading Securities								$	17,317								$	14,162

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)



	December 31, 2013
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	12,879	$	12,326	$	3,366	$	3,295
After one year to five years	86,727		83,002		10,950		10,719
After five years to ten years	232,362		222,383		8,041		7,871
After ten years	185,381		177,420		21,965		21,502
Securities that do not have a single contractual maturity date	629,765		617,594		—		—
Total	$	1,147,114	$	1,112,725	$	44,322	$	43,387

The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $755.3 million at December 31, 2013 and $675.3 million at December 31, 2012. No securities held-to-maturity were pledged as of December 31, 2013 or 2012.

Excluding securities issued or backed by the U.S. government and its agencies and U.S. government-sponsored enterprises, there were no investments in securities from one issuer that exceeded 10% of total stockholders' equity as of December 31, 2013 or 2012.

The following table presents net realized gains (losses) on securities.

Securities Gains (Losses)

(Dollar amounts in thousands)



	Years ended December 31,
	2013			2012			2011
Gains (losses) on sales of securities:
Gross realized gains	$	34,572		$	3,045		$	4,103
Gross realized losses	—			(297		)	(757		)
Net realized gains on securities sales	34,572			2,748			3,346
Non-cash impairment charges:
OTTI	(408		)	(3,728		)	(1,464		)
Portion of OTTI recognized in other comprehensive (loss) income	—			59			528
Net non-cash impairment charges	(408		)	(3,669		)	(936		)
Net realized gains (losses)	$	34,164		$	(921	)	$	2,410
Net trading gains (losses) ⁽¹⁾	$	3,189		$	1,627		$	(691	)
Net non-cash impairment charges:
Municipal	$	402		$	—		$	—
CMOs	6			1,443			—
CDOs	—			2,226			936
Total	$	408		$	3,669		$	936


⁽¹⁾	All net trading gains (losses) relate to trading securities still held as of December 31, 2013, 2012, and 2011 and are included in other income in the Consolidated Statements of Income.

Net gains realized on securities sales for the years ended December 31, 2013, 2012, and 2011 were $34.6 million, $2.7 million, and $3.3 million, respectively. During 2013, the Company sold its investment in an equity security which resulted in a $34.0 million gain.

Accounting guidance requires that the credit portion of an OTTI charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the non-credit related portion of the decline in fair value in other comprehensive (loss) income.

In deriving the credit component of the impairment on the CDOs, projected cash flows were discounted at the contractual rate and compared to the fair values computed by discounting future projected cash flows at LIBOR plus an adjustment to reflect the higher risk inherent in these securities given their complex structures and the impact of market factors. The following table presents the cumulative amount of OTTI on CDOs related to credit deterioration recognized by year in earnings.

OTTI on CDOs

(Dollar amounts in thousands)



	Years Ended December 31,
Number	2013		2012		2011		Life-to-Date
1	$	—	$	—	$	—	$	10,360
2	—		1,534		525		9,402
3	—		692		411		2,262
4	—		—		—		1,078
5	—		—		—		8,570
6	—		—		—		243
7	—		—		—		6,750
	$	—	$	2,226	$	936	$	38,665

The following table presents a rollforward of life-to-date OTTI recognized in earnings related to all available-for-sale securities held by the Company for the years ended December 31, 2013, 2012, and 2011.

Changes in OTTI Recognized in Earnings

(Dollar amounts in thousands)



	Years Ended December 31,
	2013			2012			2011
Beginning balance	$	38,803		$	36,525		$	35,589
OTTI included in earnings ⁽¹⁾:
Losses on securities that previously had OTTI	—			2,278			936
Losses on securities that did not previously have OTTI	408			1,391			—
Reduction for securities sales ⁽²⁾	(6,789		)	(1,391		)	—
Ending balance	$	32,422		$	38,803		$	36,525


⁽¹⁾	Included in net securities gains (losses) in the Consolidated Statements of Income.


⁽²⁾	During the year ended December 31, 2013, one CDO with a carrying value of zero was sold, resulting in a gain of $101,000. This CDO had OTTI of $6.8 million that was previously recognized in earnings.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of December 31, 2013 and 2012.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)



		Less Than 12 Months				Greater Than 12 Months				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of December 31, 2013
CMOs	67	$	338,064	$	14,288	$	57,269	$	2,333	$	395,333	$	16,621
Other MBSs	19	57,311		2,281		356		1		57,667		2,282
Municipal securities	154	65,370		3,245		27,565		2,353		92,935		5,598
CDOs	6	—		—		18,309		28,223		18,309		28,223
Equity securities	1	2,168		90		—		—		2,168		90
Total	247	$	462,913	$	19,904	$	103,499	$	32,910	$	566,412	$	52,814
As of December 31, 2012
CMOs	19	$	102,939	$	421	$	12,796	$	94	$	115,735	$	515
Other MBSs	6	7,210		55		176		13		7,386		68
Municipal securities	49	28,903		459		1,238		27		30,141		486
CDOs	6	—		—		12,129		34,404		12,129		34,404
Total	80	$	139,052	$	935	$	26,339	$	34,538	$	165,391	$	35,473

Substantially all of the Company's CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority are supported by third-party insurance or some other form of credit enhancement. Management does not believe any individual unrealized loss as of December 31, 2013 represents an OTTI related to credit deterioration. The unrealized losses associated with these securities are not believed to be attributed to credit quality, but rather to changes in interest rates and temporary market movements. In addition, the Company does not intend to sell the securities with unrealized losses, and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The unrealized losses on CDOs as of December 31, 2013 reflect the illiquidity of these structured investment vehicles. Management does not believe these unrealized losses represent OTTI related to credit deterioration. In addition, the Company does not intend to sell the CDOs with unrealized losses within a short period of time, and the Company does not believe it is more likely than not that it will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

Significant judgment is required to calculate the fair value of the CDOs, all of which are pooled. The Company estimates the fair value of these securities using discounted cash flow analyses with the assistance of a structured credit valuation firm. For additional discussion of the CDO valuation methodology, refer to Note 21, "Fair Value."