Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investment securities available for sale

The amortized cost and fair values of securities available for sale and held to maturity were as follows.

March 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	($ in Thousands)
Investment securities available for sale:
U. S. Treasury securities	$	1,000	$	—	$	—		$	1,000
Residential mortgage-related securities:
FNMA / FHLMC	1,268,929		35,321		(846		)	1,303,404
GNMA	1,536,248		11,086		(79		)	1,547,255
Private-label	1,535		—		(23		)	1,512
GNMA commercial mortgage-related securities	2,053,540		5,855		(11,530		)	2,047,865
Other securities (debt and equity)	4,718		87		—			4,805
Total investment securities available for sale	$	4,865,970	$	52,349	$	(12,478	)	$	4,905,841
Investment securities held to maturity:
Obligations of state and political subdivisions (municipal securities)	$	1,054,757	$	25,972	$	(146	)	$	1,080,583
Residential mortgage-related securities:
FNMA / FHLMC	40,404		797		(180		)	41,021
GNMA	81,660		1,086		(5		)	82,741
Total investment securities held to maturity	$	1,176,821	$	27,855	$	(331	)	$	1,204,345

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	($ in Thousands)
Investment securities available for sale:
U. S. Treasury securities	$	999	$	—	$	(2	)	$	997
Residential mortgage-related securities:
FNMA / FHLMC	1,388,995		33,791		(8,160		)	1,414,626
GNMA	1,605,956		507		(16,460		)	1,590,003
Private-label	1,722		1		(14		)	1,709
GNMA commercial mortgage-related securities	1,982,477		1,334		(28,501		)	1,955,310
Other securities (debt and equity)	4,718		51		—			4,769
Total investment securities available for sale	$	4,984,867	$	35,684	$	(53,137	)	$	4,967,414
Investment securities held to maturity:
Municipal securities	$	1,043,767	$	16,803	$	(339	)	$	1,060,231
Residential mortgage-related securities:
FNMA / FHLMC	41,469		513		(645		)	41,337
GNMA	82,994		189		(309		)	82,874
Total investment securities held to maturity	$	1,168,230	$	17,505	$	(1,293	)	$	1,184,442

Investment securities held to maturity

The amortized cost and fair values of securities available for sale and held to maturity were as follows.

March 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	($ in Thousands)
Investment securities available for sale:
U. S. Treasury securities	$	1,000	$	—	$	—		$	1,000
Residential mortgage-related securities:
FNMA / FHLMC	1,268,929		35,321		(846		)	1,303,404
GNMA	1,536,248		11,086		(79		)	1,547,255
Private-label	1,535		—		(23		)	1,512
GNMA commercial mortgage-related securities	2,053,540		5,855		(11,530		)	2,047,865
Other securities (debt and equity)	4,718		87		—			4,805
Total investment securities available for sale	$	4,865,970	$	52,349	$	(12,478	)	$	4,905,841
Investment securities held to maturity:
Obligations of state and political subdivisions (municipal securities)	$	1,054,757	$	25,972	$	(146	)	$	1,080,583
Residential mortgage-related securities:
FNMA / FHLMC	40,404		797		(180		)	41,021
GNMA	81,660		1,086		(5		)	82,741
Total investment securities held to maturity	$	1,176,821	$	27,855	$	(331	)	$	1,204,345

December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	($ in Thousands)
Investment securities available for sale:
U. S. Treasury securities	$	999	$	—	$	(2	)	$	997
Residential mortgage-related securities:
FNMA / FHLMC	1,388,995		33,791		(8,160		)	1,414,626
GNMA	1,605,956		507		(16,460		)	1,590,003
Private-label	1,722		1		(14		)	1,709
GNMA commercial mortgage-related securities	1,982,477		1,334		(28,501		)	1,955,310
Other securities (debt and equity)	4,718		51		—			4,769
Total investment securities available for sale	$	4,984,867	$	35,684	$	(53,137	)	$	4,967,414
Investment securities held to maturity:
Municipal securities	$	1,043,767	$	16,803	$	(339	)	$	1,060,231
Residential mortgage-related securities:
FNMA / FHLMC	41,469		513		(645		)	41,337
GNMA	82,994		189		(309		)	82,874
Total investment securities held to maturity	$	1,168,230	$	17,505	$	(1,293	)	$	1,184,442

Amortized cost and fair values of investment securities available for sale by contractual maturity

The amortized cost and fair values of investment securities available for sale and held to maturity at March 31, 2016, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale					Held to Maturity
($ in Thousands)	Amortized Cost		Fair Value			Amortized Cost		Fair Value
Due in one year or less	$	2,500	$	2,530		$	46,749	$	32,151
Due after one year through five years	3,200		3,200			243,423		255,338
Due after five years through ten years	—		—			245,683		255,755
Due after ten years	—		—			518,902		537,339
Total debt securities	5,700		5,730			1,054,757		1,080,583
Residential mortgage-related securities:
FNMA / FHLMC	1,268,929		1,303,404			40,404		41,021
GNMA	1,536,248		1,547,255			81,660		82,741
Private-label	1,535		1,512			—		—
GNMA commercial mortgage-related securities	2,053,540		2,047,865			—		—
Equity securities	18		75			—		—
Total investment securities	$	4,865,970	$	4,905,841		$	1,176,821	$	1,204,345
Ratio of Fair Value to Amortized Cost			100.8		%			102.3		%

Realized gains and losses and proceeds from sale

During the first three months of 2016, the Corporation continued to restructure its investment securities portfolio and sold approximately $119 million of FNMA and FHLMC mortgage-related securities and reinvested into GNMA mortgage-related securities, generating a $3 million net gain on sale. This restructuring lowered risk weighted assets and related capital requirements.

	Three Months Ended March 31,
	2016			2015
	($ in Thousands)
Gross gains	$	3,287		$	—
Gross losses	(189		)	—
Investment securities gains, net	$	3,098		$	—
Proceeds from sales of investment securities	$	119,379		$	289

Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length

The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at March 31, 2016.

	Less than 12 months						12 months or more						Total
March 31, 2016	Number of Securities	Unrealized Losses			Fair Value		Number of Securities	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	($ in Thousands)
Investment securities available for sale:
Residential mortgage-related securities:
FNMA / FHLMC	—	$	—		$	—	12	$	(846	)	$	258,670	$	(846	)	$	258,670
GNMA	2	(79		)	41,913		—	—			—		(79		)	41,913
Private-label	1	(1		)	76		3	(22		)	1,382		(23		)	1,458
GNMA commercial mortgage-related securities	20	(1,390		)	558,620		21	(10,140		)	448,861		(11,530		)	1,007,481
Total	23	$	(1,470	)	$	600,609	36	$	(11,008	)	$	708,913	$	(12,478	)	$	1,309,522
Investment securities held to maturity:
Municipal securities	20	$	(75	)	$	10,029	17	$	(71	)	$	5,599	$	(146	)	$	15,628
Residential mortgage-related securities:
FNMA / FHLMC	1	(3		)	1,180		5	(177		)	13,587		(180		)	14,767
GNMA	—	—			—		1	(5		)	1,548		(5		)	1,548
Total	21	$	(78	)	$	11,209	23	$	(253	)	$	20,734	$	(331	)	$	31,943

For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015.

	Less than 12 months						12 months or more						Total
December 31, 2015	Number of Securities	Unrealized Losses			Fair Value		Number of Securities	Unrealized Losses			Fair Value		Unrealized Losses			Fair Value
	($ in Thousands)
Investment securities available for sale:
U.S. Treasury securities	1	$	(2	)	$	997	—	$	—		$	—	$	(2	)	$	997
Residential mortgage-related securities:
FNMA / FHLMC	17	(1,548		)	220,852		14	(6,612		)	338,186		(8,160		)	559,038
GNMA	46	(16,460		)	1,434,484		—	—			—		(16,460		)	1,434,484
Private-label	1	(1		)	83		3	(13		)	1,565		(14		)	1,648
GNMA commercial mortgage-related securities	40	(9,610		)	1,132,844		21	(18,891		)	448,218		(28,501		)	1,581,062
Total	105	$	(27,621	)	$	2,789,260	38	$	(25,516	)	$	787,969	$	(53,137	)	$	3,577,229
Investment securities held to maturity:
Municipal securities	53	$	(146	)	$	23,137	24	$	(193	)	$	9,254	$	(339	)	$	32,391
Residential mortgage-related securities:
FNMA / FHLMC	10	(177		)	12,754		3	(468		)	11,106		(645		)	23,860
GNMA	21	(201		)	45,499		3	(108		)	6,797		(309		)	52,296
Total	84	$	(524	)	$	81,390	30	$	(769	)	$	27,157	$	(1,293	)	$	108,547