| 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, 2014 and 2013 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Maturity | | Total Amortized Cost | | Gross Unrealized | | | | Weighted Average Yield | (dollars in thousands) | 1 Year or Less | | 1-5 Years | | 5-10 Years | | After 10 Years | | | Gains | | Losses | | Fair Value | | December 31, 2014: | | | | | | | | | | | | | | | | | | Carrying value: | | | | | | | | | | | | | | | | | | U.S. Government sponsored agencies | $ | — |
| | 29,942 |
| | 20,119 |
| | 180,098 |
| | 230,159 |
| | 2,129 |
| | (557 | ) | | 231,731 |
| | 1.39 | % | Residential mortgage-backed | 269 |
| | 65,433 |
| | 48,174 |
| | 885,896 |
| | 999,772 |
| | 14,189 |
| | (6,117 | ) | | 1,007,844 |
| | 2.39 |
| Commercial mortgage-backed | — |
| | 779 |
| | — |
| | — |
| | 779 |
| | 58 |
| | — |
| | 837 |
| | 4.95 |
| State and political subdivisions | 863 |
| | 571 |
| | — |
| | 28,371 |
| | 29,805 |
| | 33 |
| | (223 | ) | | 29,615 |
| | 1.05 |
| Corporate notes | 27,382 |
| | 72,959 |
| | 70,990 |
| | — |
| | 171,331 |
| | 2,759 |
| | (395 | ) | | 173,695 |
| | 2.75 |
| Equity investments | — |
| | — |
| | — |
| | 2,000 |
| | 2,000 |
| | — |
| | (33 | ) | | 1,967 |
| | 2.15 |
| Total | $ | 28,514 |
| | 169,684 |
| | 139,283 |
| | 1,096,365 |
| | 1,433,846 |
| | 19,168 |
| | (7,325 | ) | | 1,445,689 |
| | 2.25 |
| Fair value: | | | | | | | | | | | | | | | | | | Debt securities | $ | 28,901 |
| | 172,561 |
| | 140,717 |
| | 1,101,543 |
| | | | | | | | | | | Equity securities | — |
| | — |
| | — |
| | 1,967 |
| | | | | | | | | | | Total | $ | 28,901 |
| | 172,561 |
| | 140,717 |
| | 1,103,510 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Weighted average yield | 2.64 | % | | 1.97 | % | | 2.58 | % | | 2.23 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | % | | | | | | | | | | |
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, 2014 and 2013 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Maturity | | Total Amortized Cost | | Gross Unrealized | | | | Weighted Average Yield | (dollars in thousands) | 1 Year or Less | | 1-5 Years | | 5-10 Years | | After 10 Years | | | Gains | | Losses | | Fair Value | | December 31, 2014: | | | | | | | | | | | | | | | | | | Carrying value: | | | | | | | | | | | | | | | | | | U.S. Government sponsored agencies | $ | — |
| | — |
| | 10,725 |
| | — |
| | 10,725 |
| | 42 |
| | — |
| | 10,767 |
| | 1.25 | % | Residential mortgage-backed | — |
| | 105,660 |
| | 50,512 |
| | 448,905 |
| | 605,077 |
| | 1,931 |
| | (5,782 | ) | | 601,226 |
| | 1.86 |
| State and political subdivisions | 561 |
| | 335 |
| | 489 |
| | 961 |
| | 2,346 |
| | 1 |
| | (68 | ) | | 2,279 |
| | 1.68 |
| Total | $ | 561 |
| | 105,995 |
| | 61,726 |
| | 449,866 |
| | 618,148 |
| | 1,974 |
| | (5,850 | ) | | 614,272 |
| | 1.85 |
| Fair value: | | | | | | | | | | | | | | | | | | Debt securities | $ | 561 |
| | 106,147 |
| | 62,000 |
| | 445,564 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Weighted average yield | 3.07 | % | | 1.88 | % | | 1.13 | % | | 1.94 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | % | | | | | | | | | | |
Proceeds from sales of available-for-sale investment securities were $343.5 million, $143.7 million and $315.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Gross realized gains and gross realized losses on investment securities for the years ended December 31, 2014, 2013 and 2012 were as follows: | | | | | | | | | | | (dollars in thousands) | 2014 | | 2013 | | 2012 | Gross realized gains on sales of available-for-sale securities | $ | 5,063 |
| | 802 |
| | 1,675 |
| Gross realized losses on sales of available-for-sale securities | (3,374 | ) | | (354 | ) | | (374 | ) | Other-than-temporary impairment | (3 | ) | | (412 | ) | | (2 | ) | Gross realized gains on calls of investment securities | — |
| | — |
| | 7 |
| Net realized gain on investment securities | $ | 1,686 |
| | 36 |
| | 1,306 |
|
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 $349.0 million and $283.7 million at December 31, 2014 and 2013, 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 gains 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, 2014 and 2013, were as follows: | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | (dollars in thousands) | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | December 31, 2014: | | | | | | | | | | | | Available for sale: | | | | | | | | | | | | U.S. Government sponsored agencies | $ | 79,207 |
| | (427 | ) | | 14,600 |
| | (130 | ) | | 93,807 |
| | (557 | ) | Residential mortgage-backed | 204,378 |
| | (1,154 | ) | | 191,644 |
| | (4,963 | ) | | 396,022 |
| | (6,117 | ) | State and political subdivisions | 28,148 |
| | (223 | ) | | — |
| | — |
| | 28,148 |
| | (223 | ) | Corporate notes | 9,650 |
| | (350 | ) | | 4,955 |
| | (45 | ) | | 14,605 |
| | (395 | ) | Equity investments | 1,967 |
| | (33 | ) | | — |
| | — |
| | 1,967 |
| | (33 | ) | Total | $ | 323,350 |
| | (2,187 | ) | | 211,199 |
| | (5,138 | ) | | 534,549 |
| | (7,325 | ) | | | | | | | | | | | | | Held to maturity: | | | | | | | | | | | | Residential mortgage-backed | $ | 28,371 |
| | (112 | ) | | 325,820 |
| | (5,670 | ) | | 354,191 |
| | (5,782 | ) | State and political subdivisions | 641 |
| | (3 | ) | | 896 |
| | (65 | ) | | 1,537 |
| | (68 | ) | Total: | $ | 29,012 |
| | (115 | ) | | 326,716 |
| | (5,735 | ) | | 355,728 |
| | (5,850 | ) | | | | | | | | | | | | | 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 | ) |
The Company does not believe the investment securities that were in an unrealized loss position at December 31, 2014 and 2013 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 investments 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 investment securities for 12 months or more at December 31, 2014 and 2013 included 47 and 12 securities, respectively. |