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INVESTMENTS IN DEBT AND EQUITY SECURITIES
 12 Months Ended
Dec. 31, 2014
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, 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.