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Investment Securities Held-to-Maturity
12 Months Ended
Dec. 31, 2014
Text Block [Abstract]  
Investment Securities Held-to-Maturity

4.    Investment Securities Held-to-Maturity

 

    December 31, 2014     December 31, 2013  
    Amortized
Cost
    Gross
Unrealized
Gains
    Gross
Unrealized
Losses
    Estimated
Fair Value
    Amortized
Cost
    Gross
Unrealized
Gains
    Gross
Unrealized
Losses
    Estimated
Fair Value
 
(dollars in thousands)                                                

U.S. Government Sponsored Enterprise

  $ 251,617      $ 2,707      $ 249      $ 254,075      $ 291,779      $ 185      $ 5,043      $ 286,921   

U.S. Government Sponsored Enterprise Mortgage-Backed Securities

    1,155,175        11,185        6,832        1,159,528        1,196,105        2,239        20,816        1,177,528   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,406,792      $ 13,892      $ 7,081      $ 1,413,603      $ 1,487,884      $ 2,424      $ 25,859      $ 1,464,449   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $868,924,000 and $732,144,000 at December 31, 2014, and 2013, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank at fair value amounting to $458,782,000 and $510,060,000 at December 31, 2014, and 2013, respectively.

At December 31, 2014 and 2013, all mortgage-backed securities are obligations of U.S. Government Sponsored Enterprises. Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities held-to-maturity at December 31, 2014.

 

     Amortized
Cost
     Fair Value  
(dollars in thousands)              

Within one year

   $ 3,837       $ 3,912   

After one but within five years

     1,095,478         1,098,957   

After five but within ten years

     305,690         308,892   

More than ten years

     1,787         1,842   
  

 

 

    

 

 

 

Total

   $ 1,406,792       $ 1,413,603   
  

 

 

    

 

 

 

The weighted average remaining life of investment securities held-to-maturity at December 31, 2014, was 4.4 years. Included in the weighted average remaining life calculation at December 31, 2014, were $178,825,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The actual maturities, which were used in the table above, of mortgage-backed securities, will differ from the contractual maturities due to the ability of the issuers to prepay underlying obligations.

The Company transferred $987,037,000 of securities with unrealized losses of $25,333,000 from available-for-sale to held-to-maturity during 2013.

As of December 31, 2014 and December 31, 2013, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of their remaining amortized costs. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade.

The unrealized loss on U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these securities and it is not more likely than not that it will be required to sell these securities before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2014 and December 31, 2013.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2014. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 34 and 48 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 303 holdings at December 31, 2014.

 

     December 31, 2014  
     Less Than 12 Months      12 Months or Longer      Total  

Temporarily Impaired Investments

   Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
 
(dollars in thousands)                                          

U.S. Government Sponsored Enterprises

   $ 22,414       $ 25       $ 14,776       $ 224       $ 37,190       $ 249   

U.S. Government Agency and Sponsored

                 

Enterprise Mortgage-Backed Securities

     194,119         1,678         308,526         5,154         502,645         6,832   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total temporarily impaired securities

   $ 216,533       $ 1,703       $ 323,302       $ 5,378       $ 539,835       $ 7,081   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2013. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 191 and 13 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 300 holdings at December 31, 2013.

 

     December 31, 2013  
     Less Than 12 Months      12 Months or Longer      Total  

Temporarily Impaired Investments

   Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
     Fair Value      Unrealized
Losses
 
(dollars in thousands)                                          

U.S. Government Sponsored Enterprises

   $ 232,535       $ 5,043       $       $       $ 232,535       $ 5,043   

U.S. Government Agency and Sponsored

                 

Enterprise Mortgage-Backed Securities

     931,180         18,654         80,362         2,162         1,011,542         20,816   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total temporarily impaired securities

   $ 1,163,715       $ 23,697       $ 80,362       $ 2,162       $ 1,244,077       $ 25,859