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INVESTMENTS IN DEBT AND EQUITY SECURITIES
 12 Months Ended
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS IN DEBT AND EQUITY SECURITIES
INVESTMENTS IN DEBT AND EQUITY SECURITIES
Securities Available for Sale. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities available for sale at December 31, 2013 and 2012 were as follows:
 
Maturity
 
Total Amortized Cost
 
Gross Unrealized
 
 
 
Weighted Average Yield
 
1 Year or Less
 
1-5
Years
 
5-10 Years
 
After 10 Years
 
 
Gains
 
Losses
 
Fair Value
 
 
(dollars expressed in thousands)
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
8,450

 
40,243

 
88,666

 
135,679

 
273,038

 
3,525

 
(664
)
 
275,899

 
1.34
%
Residential mortgage-backed
—

 
43,943

 
115,731

 
951,454

 
1,111,128

 
12,873

 
(18,214
)
 
1,105,787

 
2.32

Commercial mortgage-backed
—

 
—

 
793

 
—

 
793

 
63

 
—

 
856

 
4.94

State and political subdivisions
1,369

 
2,035

 
200

 
28,432

 
32,036

 
81

 
(560
)
 
31,557

 
1.26

Corporate notes
4,980

 
140,575

 
45,132

 
—

 
190,687

 
5,777

 
(261
)
 
196,203

 
2.69

Equity investments
—

 
—

 
—

 
1,500

 
1,500

 
—

 
(57
)
 
1,443

 
2.17

Total
$
14,799

 
226,796

 
250,522

 
1,117,065

 
1,609,182

 
22,319

 
(19,756
)
 
1,611,745

 
2.18

Fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
14,927

 
233,338

 
250,860

 
1,111,177

 
 
 
 
 
 
 
 
 
 
Equity securities
—

 
—

 
—

 
1,443

 
 
 
 
 
 
 
 
 
 
Total
$
14,927

 
233,338

 
250,860

 
1,112,620

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average yield
2.17
%
 
2.23
%
 
1.81
%
 
2.24
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
10,051

 
80,328

 
—

 
213,892

 
304,271

 
6,304

 
(146
)
 
310,429

 
1.42
%
Residential mortgage-backed
364

 
24,014

 
219,286

 
1,251,917

 
1,495,581

 
38,983

 
(497
)
 
1,534,067

 
2.32

Commercial mortgage-backed
—

 
—

 
806

 
—

 
806

 
109

 
—

 
915

 
4.86

State and political subdivisions
985

 
3,579

 
201

 
—

 
4,765

 
164

 
—

 
4,929

 
4.05

Corporate Notes
—

 
137,090

 
49,704

 
—

 
186,794

 
6,192

 
(621
)
 
192,365

 
3.13

Equity investments
—

 
—

 
—

 
1,000

 
1,000

 
22

 
—

 
1,022

 
2.54

Total
$
11,400

 
245,011

 
269,997

 
1,466,809

 
1,993,217

 
51,774

 
(1,264
)
 
2,043,727

 
2.26

Fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
11,476

 
251,558

 
275,251

 
1,504,420

 
 
 
 
 
 
 
 
 
 
Equity securities
—

 
—

 
—

 
1,022

 
 
 
 
 
 
 
 
 
 
Total
$
11,476

 
251,558

 
275,251

 
1,505,442

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average yield
2.01
%
 
2.17
%
 
2.65
%
 
2.21
%
 
 
 
 
 
 
 
 
 
 

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at December 31, 2013 and 2012 were as follows:
 
Maturity
 
Total Amortized Cost
 
Gross Unrealized
 
 
 
Weighted Average Yield
 
1 Year or Less
 
1-5 Years
 
5-10 Years
 
After 10 Years
 
 
Gains
 
Losses
 
Fair Value
 
 
(dollars expressed in thousands)
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
—

 
—

 
16,119

 
—

 
16,119

 
—

 
(153
)
 
15,966

 
1.14
%
Residential mortgage-backed
—

 
16,327

 
182,933

 
522,504

 
721,764

 
441

 
(21,206
)
 
700,999

 
1.88

State and political subdivisions
640

 
575

 
55

 
1,033

 
2,303

 
2

 
(87
)
 
2,218

 
1.93

Total
$
640

 
16,902

 
199,107

 
523,537

 
740,186

 
443

 
(21,446
)
 
719,183

 
1.86

Fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
642

 
16,926

 
195,647

 
505,968

 
 
 
 
 
 
 
 
 
 
Weighted average yield
3.32
%
 
2.20
%
 
1.53
%
 
1.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
—

 
—

 
52,582

 
—

 
52,582

 
269

 
—

 
52,851

 
1.63
%
Residential mortgage-backed
—

 
—

 
108,420

 
466,863

 
575,283

 
6,142

 
(614
)
 
580,811

 
1.82

State and political subdivisions
826

 
1,099

 
252

 
1,511

 
3,688

 
51

 
(377
)
 
3,362

 
1.89

Total
$
826

 
1,099

 
161,254

 
468,374

 
631,553

 
6,462

 
(991
)
 
637,024

 
1.80

Fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
836

 
1,129

 
164,433

 
470,626

 
 
 
 
 
 
 
 
 
 
Weighted average yield
2.56
%
 
3.40
%
 
1.77
%
 
1.81
%
 
 
 
 
 
 
 
 
 
 

Proceeds from sales of available-for-sale investment securities were $143.7 million, $315.2 million and $283.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. Proceeds from calls of investment securities were $51.2 million, $277.2 million and $56.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. Gross realized gains and gross realized losses on investment securities for the years ended December 31, 2013, 2012 and 2011 were as follows:
 
2013
 
2012
 
2011
 
(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities
$
802

 
1,675

 
5,286

Gross realized losses on sales of available-for-sale securities
(354
)
 
(374
)
 
(1
)
Other-than-temporary impairment
(412
)
 
(2
)
 
(3
)
Gross realized gains on calls of investment securities
—

 
7

 
53

Net realized gain on investment securities
$
36

 
1,306

 
5,335


Other-than-temporary impairment for the year ended December 31, 2013 includes impairment of $407,000 recorded during the first quarter of 2013 on a municipal investment security classified as held-to-maturity. Investment securities with a carrying value of approximately $283.7 million and $257.6 million at December 31, 2013 and 2012, respectively, were pledged in connection with deposits of public and trust funds, securities sold under agreements to repurchase and for other purposes as required by law.
During the first quarter of 2013, the Company reclassified certain of its available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $242.5 million, in aggregate. The net gross unrealized gain on these available-for-sale investment securities at the time of transfer was $5.0 million, in aggregate. On June 30, 2012, the Company reclassified certain of its available-for-sale investment securities to held-to-maturity investment securities at their respective fair values, which totaled $729.1 million, in aggregate. The net gross unrealized gain on these available-for-sale investment securities at the time of transfer was $11.7 million, in aggregate. The determination of the reclassifications were made by management based on the Company’s current and expected future liquidity levels and the resulting intent to hold such investment securities to maturity. The net gross unrealized gain on these available-for-sale investment securities at the time of transfer was recorded as additional premium on the securities and is being amortized over the remaining lives of the respective securities, as further described in Note 13 to the consolidated financial statements.
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 December 31, 2013 and 2012, were as follows:
 
Less than 12 months
 
12 months or more
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
(dollars expressed in thousands)
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
16,005

 
(664
)
 
—

 
—

 
16,005

 
(664
)
Residential mortgage-backed
511,617

 
(18,119
)
 
5,473

 
(95
)
 
517,090

 
(18,214
)
State and political subdivisions
27,872

 
(560
)
 
—

 
—

 
27,872

 
(560
)
Corporate notes
9,959

 
(41
)
 
4,780

 
(220
)
 
14,739

 
(261
)
Equity investments
1,443

 
(57
)
 
—

 
—

 
1,443

 
(57
)
Total
$
566,896

 
(19,441
)
 
10,253

 
(315
)
 
577,149

 
(19,756
)
 
 
 
 
 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
15,966

 
(153
)
 
—

 
—

 
15,966

 
(153
)
Residential mortgage-backed
644,700

 
(20,759
)
 
10,527

 
(447
)
 
655,227

 
(21,206
)
State and political subdivisions
946

 
(87
)
 
—

 
—

 
946

 
(87
)
Total:
$
661,612

 
(20,999
)
 
10,527

 
(447
)
 
672,139

 
(21,446
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored agencies
$
20,018

 
(146
)
 
—

 
—

 
20,018

 
(146
)
Residential mortgage-backed
125,449

 
(441
)
 
270

 
(56
)
 
125,719

 
(497
)
Corporate notes
—

 
—

 
17,675

 
(621
)
 
17,675

 
(621
)
Total
$
145,467

 
(587
)
 
17,945

 
(677
)
 
163,412

 
(1,264
)
 
 
 
 
 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
$
66,011

 
(614
)
 
—

 
—

 
66,011

 
(614
)
State and political subdivisions
1,133

 
(377
)
 
—

 
—

 
1,133

 
(377
)
Total:
$
67,144

 
(991
)
 
—

 
—

 
67,144

 
(991
)

The Company does not believe that the investment securities that were in an unrealized loss position at December 31, 2013 and 2012 are other-than-temporarily impaired. The unrealized losses on the investment securities were primarily attributable to fluctuations in interest rates. It is expected that the securities would not be settled at a price less than the amortized cost. Because the decline in fair value is attributable to changes in interest rates and not credit loss, and because the Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of the remaining amortized cost basis or maturity, these investments are not considered other-than-temporarily impaired. The unrealized losses for residential mortgage-backed securities for 12 months or more at December 31, 2013 and 2012 included 11 and nine securities, respectively. The unrealized losses for corporate notes for 12 months or more at December 31, 2013 and 2012 included one and six securities, respectively.