| Investment Securities, Available-for-Sale |
Note 2. Investment Securities, Available-for-Sale
A comparison of the amortized cost and estimated fair value of the Company’s investment securities designated as available-for-sale is presented below. | | | | | | | | | | | | | | | | | | June 30, 2013 | | Weighted | | Amortized | | Gross Unrealized | | Fair | (Dollars in thousands) | Yield | | Cost | | Gains | | Losses | | Value | U.S. government sponsored enterprises | | | | | | | | | | Maturing after one year through five years | 2.27 | % | | $ | 12,840 |
| | 270 |
| | — |
| | 13,110 |
| Maturing after five years through ten years | 1.71 | % | | 40 |
| | 1 |
| | — |
| | 41 |
| | 2.27 | % | | 12,880 |
| | 271 |
| | — |
| | 13,151 |
| State and local governments | | | | | | | | | | Maturing within one year | 2.02 | % | | 5,066 |
| | 41 |
| | — |
| | 5,107 |
| Maturing after one year through five years | 2.07 | % | | 158,331 |
| | 3,063 |
| | (265 | ) | | 161,129 |
| Maturing after five years through ten years | 3.11 | % | | 55,026 |
| | 904 |
| | (656 | ) | | 55,274 |
| Maturing after ten years | 4.53 | % | | 1,089,519 |
| | 44,313 |
| | (15,466 | ) | | 1,118,366 |
| | 4.17 | % | | 1,307,942 |
| | 48,321 |
| | (16,387 | ) | | 1,339,876 |
| Corporate bonds | | | | | | | | | | Maturing within one year | 2.06 | % | | 64,391 |
| | 630 |
| | — |
| | 65,021 |
| Maturing after one year through five years | 2.10 | % | | 357,036 |
| | 2,571 |
| | (3,173 | ) | | 356,434 |
| Maturing after five years through ten years | 2.27 | % | | 21,635 |
| | 53 |
| | (346 | ) | | 21,342 |
| | 2.10 | % | | 443,062 |
| | 3,254 |
| | (3,519 | ) | | 442,797 |
| Residential mortgage-backed securities | 2.18 | % | | 1,917,954 |
| | 13,728 |
| | (6,129 | ) | | 1,925,553 |
| Total investment securities | 2.88 | % | | $ | 3,681,838 |
| | 65,574 |
| | (26,035 | ) | | 3,721,377 |
|
| | | | | | | | | | | | | | | | | | December 31, 2012 | | Weighted | | Amortized | | Gross Unrealized | | Fair | (Dollars in thousands) | Yield | | Cost | | Gains | | Losses | | Value | U.S. government and federal agency | | | | | | | | | | Maturing within one year | 1.62 | % | | $ | 201 |
| | 1 |
| | — |
| | 202 |
| U.S. government sponsored enterprises | | | | | | | | | | Maturing after one year through five years | 2.30 | % | | 17,064 |
| | 371 |
| | — |
| | 17,435 |
| Maturing after five years through ten years | 2.03 | % | | 44 |
| | 1 |
| | — |
| | 45 |
| | 2.29 | % | | 17,108 |
| | 372 |
| | — |
| | 17,480 |
| State and local governments | | | | | | | | | | Maturing within one year | 2.01 | % | | 4,288 |
| | 28 |
| | (2 | ) | | 4,314 |
| Maturing after one year through five years | 2.11 | % | | 149,497 |
| | 4,142 |
| | (142 | ) | | 153,497 |
| Maturing after five years through ten years | 2.95 | % | | 38,346 |
| | 1,102 |
| | (99 | ) | | 39,349 |
| Maturing after ten years | 4.70 | % | | 935,897 |
| | 82,823 |
| | (1,362 | ) | | 1,017,358 |
| | 4.29 | % | | 1,128,028 |
| | 88,095 |
| | (1,605 | ) | | 1,214,518 |
| Corporate bonds | | | | | | | | | | Maturing within one year | 1.73 | % | | 18,412 |
| | 51 |
| | — |
| | 18,463 |
| Maturing after one year through five years | 2.22 | % | | 250,027 |
| | 4,018 |
| | (238 | ) | | 253,807 |
| Maturing after five years through ten years | 2.23 | % | | 16,144 |
| | 381 |
| | — |
| | 16,525 |
| | 2.19 | % | | 284,583 |
| | 4,450 |
| | (238 | ) | | 288,795 |
| Collateralized debt obligations | | | | | | | | | | Maturing after ten years | 8.03 | % | | 1,708 |
| | — |
| | — |
| | 1,708 |
| Residential mortgage-backed securities | 1.95 | % | | 2,156,049 |
| | 8,860 |
| | (4,607 | ) | | 2,160,302 |
| Total investment securities | 2.71 | % | | $ | 3,587,677 |
| | 101,778 |
| | (6,450 | ) | | 3,683,005 |
|
Included in the residential mortgage-backed securities are $39,375,000 and $46,733,000 as of June 30, 2013 and December 31, 2012, respectively, of non-guaranteed private label whole loan mortgage-backed securities of which none of the underlying collateral is considered “subprime.”
Maturities of securities do not reflect repricing opportunities present in adjustable rate securities, nor do they reflect expected shorter maturities based upon early prepayment of principal. Weighted average yields are based on the level-yield method taking into account premium amortization, discount accretion and mortgage-backed securities’ prepayment provisions. Weighted average yields on tax-exempt investment securities exclude the federal income tax benefit.
The cost of each investment sold is determined by specific identification. Gain or loss on sale of investments consists of the following: | | | | | | | | | | | | | | | | Three Months ended | | Six Months ended | (Dollars in thousands) | June 30, 2013 | | June 30, 2012 | | June 30, 2013 | | June 30, 2012 | Gross proceeds | $ | 75,649 |
| | — |
| | $ | 79,488 |
| | — |
| Less amortized cost | (75,408 | ) | | — |
| | (79,384 | ) | | — |
| Net gain on sale of investments | $ | 241 |
| | — |
| | $ | 104 |
| | — |
| Gross gain on sale of investments | $ | 256 |
| | — |
| | $ | 256 |
| | — |
| Gross loss on sale of investments | (15 | ) | | — |
| | (152 | ) | | — |
| Net gain on sale of investments | $ | 241 |
| | — |
| | $ | 104 |
| | — |
|
Investments with an unrealized loss position are summarized as follows: | | | | | | | | | | | | | | | | | | | | | June 30, 2013 | | Less than 12 Months | | 12 Months or More | | Total | (Dollars in thousands) | Fair Value | | Unrealized Loss | | Fair Value | | Unrealized Loss | | Fair Value | | Unrealized Loss | State and local governments | $ | 312,576 |
| | (15,987 | ) | | 10,434 |
| | (400 | ) | | 323,010 |
| | (16,387 | ) | Corporate bonds | 211,592 |
| | (3,519 | ) | | — |
| | — |
| | 211,592 |
| | (3,519 | ) | Residential mortgage-backed securities | 511,542 |
| | (6,086 | ) | | 15,991 |
| | (43 | ) | | 527,533 |
| | (6,129 | ) | Total temporarily impaired securities | $ | 1,035,710 |
| | (25,592 | ) | | 26,425 |
| | (443 | ) | | 1,062,135 |
| | (26,035 | ) |
| | | | | | | | | | | | | | | | | | | | | December 31, 2012 | | Less than 12 Months | | 12 Months or More | | Total | (Dollars in thousands) | Fair Value | | Unrealized Loss | | Fair Value | | Unrealized Loss | | Fair Value | | Unrealized Loss | State and local governments | $ | 102,896 |
| | (1,531 | ) | | 4,533 |
| | (74 | ) | | 107,429 |
| | (1,605 | ) | Corporate bonds | 41,856 |
| | (238 | ) | | — |
| | — |
| | 41,856 |
| | (238 | ) | Residential mortgage-backed securities | 955,235 |
| | (4,041 | ) | | 62,905 |
| | (566 | ) | | 1,018,140 |
| | (4,607 | ) | Total temporarily impaired securities | $ | 1,099,987 |
| | (5,810 | ) | | 67,438 |
| | (640 | ) | | 1,167,425 |
| | (6,450 | ) |
With respect to the Company’s review of its securities in an unrealized loss position at June 30, 2013, management determined that it did not intend to sell and there was no expected requirement to sell any of its temporarily impaired securities. Based on an analysis of its impaired securities as of June 30, 2013 and December 31, 2012, the Company determined that none of such securities had other-than-temporary impairment. |