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Securities (Tables)
 6 Months Ended
Jun. 30, 2013
Marketable Securities [Abstract]  
Trading Securities [Table Text Block]
The fair value and net unrealized gain (loss) included in trading securities is as follows (in thousands):
 
 
 
June 30, 2013
 
December 31, 2012
 
June 30, 2012
 
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair
Value
 
Net Unrealized Gain (Loss)
U.S. Government agency debentures
 
$
60,713

 
$
(552
)
 
$
16,545

 
$
(57
)
 
$
53,514

 
$
23

U.S. agency residential mortgage-backed securities
 
43,858

 
38

 
86,361

 
447

 
46,502

 
222

Municipal and other tax-exempt securities
 
53,819

 
(1,271
)
 
90,326

 
(226
)
 
44,632

 
9

Other trading securities
 
32,201

 
(717
)
 
20,870

 
(13
)
 
4,669

 
(14
)
Total
 
$
190,591

 
$
(2,502
)
 
$
214,102

 
$
151

 
$
149,317

 
$
240
Investment Securities (Held-to-Maturity) [Table Text Block]
The amortized cost and fair values of investment securities are as follows (in thousands):

 
 
June 30, 2013
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
375,317

 
$
375,317

 
$
371,690

 
$
2,189

 
$
(5,816
)
U.S. agency residential mortgage-backed securities – Other
 
61,152

 
64,172

 
66,796

 
2,624

 
—

Other debt securities
 
176,301

 
176,301

 
187,219

 
10,978

 
(60
)
Total
 
$
612,770

 
$
615,790

 
$
625,705

 
$
15,791

 
$
(5,876
)
1 
Carrying value includes $3.0 million of net unrealized gain which remains in Accumulated other comprehensive income (“AOCI”) related to certain securities transferred from the Available for Sale securities portfolio to the Investment securities portfolio as discussed in greater detail following.
2 
Gross unrealized gains and losses are not recognized in AOCI in the Consolidated Balance Sheets.
 
 
December 31, 2012
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
232,700

 
$
232,700

 
$
235,940

 
$
3,723

 
$
(483
)
U.S. agency residential mortgage-backed securities – Other
 
77,726

 
82,767

 
85,943

 
3,176

 
—

Other debt securities
 
184,067

 
184,067

 
206,575

 
22,528

 
(20
)
Total
 
$
494,493

 
$
499,534

 
$
528,458

 
$
29,427

 
$
(503
)
1 
Carrying value includes $5.0 million of net unrealized gain which remains in Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheets related to certain securities transferred from the Available for Sale securities portfolio to the Investment securities portfolio as discussed in greater detail following.
2 
Gross unrealized gains and losses are not recognized in AOCI in the Consolidated Balance Sheets.
 
 
June 30, 2012
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
126,168

 
$
126,168

 
$
130,308

 
$
4,165

 
$
(25
)
U.S. agency residential mortgage-backed securities – Other
 
94,126

 
102,347

 
105,535

 
3,188

 
—

Other debt securities
 
183,964

 
183,964

 
204,795

 
20,831

 
—

Total
 
$
404,258

 
$
412,479

 
$
440,638

 
$
28,184

 
$
(25
)

1 
Carrying value includes $8.2 million of net unrealized gain which remains in Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheets related to certain securities transferred from the Available for Sale securities portfolio to the Investment securities portfolio as discussed in greater detail following.
2 
Gross unrealized gains and losses are not recognized in AOCI in the Consolidated Balance Sheets.

During the three months ended September 30, 2011, the Company transferred certain U.S. government agency residential mortgage-backed securities from the available for sale portfolio to the investment securities (held-to-maturity) portfolio as the Company has the positive intent and ability to hold these securities to maturity. No gains or losses were recognized in the Consolidated Statement of Earnings at the time of the transfer. Transfers of debt securities into the investment securities portfolio (held-to-maturity) are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income and in the carrying value of the investment securities portfolio.  Such amounts are amortized over the estimated remaining life of the security as an adjustment to yield, offsetting the related amortization of the premium or accretion of the discount on the transferred securities. At the time of transfer, the fair value totaled $131 million, amortized cost totaled $118 million and the pretax unrealized gain totaled $13 million.

The amortized cost and fair values of investment securities at June 30, 2013, by contractual maturity, are as shown in the following table (dollars in thousands):
 
 
Less than
One Year
 
One to
Five Years
 
Six to
Ten Years
 
Over
Ten Years
 
Total
 
Weighted
Average
Maturity²
Municipal and other tax-exempt:
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value
 
$
24,239

 
$
239,869

 
$
101,753

 
$
9,456

 
$
375,317

 
4.15

Fair value
 
24,504

 
238,125

 
99,465

 
9,596

 
371,690

 
 
Nominal yield¹
 
4.22

 
1.68

 
2.21

 
2.73

 
2.01

 
 
Other debt securities:
 
 

 
 

 
 

 
 

 
 

 
 
Carrying value
 
9,681

 
30,987

 
35,164

 
100,469

 
176,301

 
9.06

Fair value
 
9,713

 
31,420

 
36,257

 
109,829

 
187,219

 
 
Nominal yield
 
4.24

 
5.30

 
5.57

 
6.29

 
5.86

 
 
Total fixed maturity securities:
 
 

 
 

 
 

 
 

 
 

 
 
Carrying value
 
$
33,920

 
$
270,856

 
$
136,917

 
$
109,925

 
$
551,618

 
5.72

Fair value
 
34,217

 
269,545

 
135,722

 
119,425

 
558,909

 
 

Nominal yield
 
4.22

 
2.09

 
3.07

 
5.99

 
3.24

 
 

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Carrying value
 
 

 
 

 
 

 
 

 
$
64,172

 
³

Fair value
 
 

 
 

 
 

 
 

 
66,796

 
 

Nominal yield4
 
 

 
 

 
 

 
 

 
2.72

 
 

Total investment securities:
 
 

 
 

 
 

 
 

 
 

 
 

Carrying value
 
 

 
 

 
 

 
 

 
$
615,790

 
 

Fair value
 
 

 
 

 
 

 
 

 
625,705

 
 

Nominal yield
 
 

 
 

 
 

 
 

 
3.19

 
 

1 
Calculated on a taxable equivalent basis using a 39% effective tax rate.
2 
Expected maturities may differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without penalty.
3 
The average expected lives of residential mortgage-backed securities were 4.1 years based upon current prepayment assumptions.
4 
The nominal yield on residential mortgage-backed securities is based upon prepayment assumptions at the purchase date. Actual yields earned may differ significantly based upon actual prepayments. See Quarterly Financial Summary - Unaudited for current yields on the investment securities portfolio.
Available For Sale Securities [Table Text Block]
The amortized cost and fair value of available for sale securities are as follows (in thousands):
 
 
June 30, 2013
 
 
Amortized
 
Fair
 
Gross Unrealized1
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,061

 
$
1,060

 
$
—

 
$
(1
)
 
$
—

Municipal and other tax-exempt
 
95,974

 
95,103

 
1,653

 
(1,870
)
 
(654
)
Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
4,648,337

 
4,687,141

 
78,285

 
(39,481
)
 
—

FHLMC
 
2,695,506

 
2,715,896

 
32,994

 
(12,604
)
 
—

GNMA
 
916,646

 
925,081

 
11,163

 
(2,728
)
 
—

Other
 
42,563

 
44,677

 
2,114

 
—

 
—

Total U.S. government agencies
 
8,303,052

 
8,372,795

 
124,556

 
(54,813
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
113,804

 
115,036

 
2,905

 
—

 
(1,673
)
Jumbo-A loans
 
178,581

 
182,139

 
4,129

 
(274
)
 
(297
)
Total private issue
 
292,385

 
297,175

 
7,034

 
(274
)
 
(1,970
)
Total residential mortgage-backed securities
 
8,595,437

 
8,669,970

 
131,590

 
(55,087
)
 
(1,970
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
1,885,585

 
1,846,943

 
343

 
(38,985
)
 
—

Other debt securities
 
35,622

 
35,894

 
479

 
(207
)
 
—

Perpetual preferred stock
 
22,172

 
25,583

 
3,439

 
(28
)
 
—

Equity securities and mutual funds
 
19,990

 
23,521

 
3,736

 
(205
)
 
—

Total
 
$
10,655,841

 
$
10,698,074

 
$
141,240

 
$
(96,383
)
 
$
(2,624
)
1 Gross unrealized gain/loss recognized in AOCI in the consolidated balance sheet.
2 Amounts represent unrealized loss that remains in AOCI after an other-than-temporary credit loss has been recognized in income.
 
 
December 31, 2012
 
 
Amortized
 
Fair
 
Gross Unrealized¹
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,000

 
$
1,002

 
$
2

 
$
—

 
$
—

Municipal and other tax-exempt
 
84,892

 
87,142

 
2,414

 
(164
)
 
—

Residential mortgage-backed securities:
 
 
 
 

 
 

 
 

 
 

U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
5,308,463

 
5,453,549

 
146,247

 
(1,161
)
 
—

FHLMC
 
2,978,608

 
3,045,564

 
66,956

 
—

 
—

GNMA
 
1,215,554

 
1,237,041

 
21,487

 
—

 
—

Other
 
148,025

 
153,667

 
5,642

 
—

 
—

Total U.S. government agencies
 
9,650,650

 
9,889,821

 
240,332

 
(1,161
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
124,314

 
123,174

 
1,440

 
—

 
(2,580
)
Jumbo-A loans
 
198,588

 
201,989

 
5,138

 
(134
)
 
(1,603
)
Total private issue
 
322,902

 
325,163

 
6,578

 
(134
)
 
(4,183
)
Total residential mortgage-backed securities
 
9,973,552

 
10,214,984

 
246,910

 
(1,295
)
 
(4,183
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
890,746

 
895,075

 
5,006

 
(677
)
 
—

Other debt securities
 
35,680

 
36,389

 
709

 
—

 
—

Perpetual preferred stock
 
22,171

 
25,072

 
2,901

 
—

 
—

Equity securities and mutual funds
 
24,593

 
27,557

 
3,242

 
(278
)
 
—

Total
 
$
11,032,634

 
$
11,287,221

 
$
261,184

 
$
(2,414
)
 
$
(4,183
)
1 Gross unrealized gain/loss recognized in AOCI in the consolidated balance sheet.
2 Amounts represent unrealized loss that remains in AOCI after an other-than-temporary credit loss has been recognized in income.

 
 
June 30, 2012
 
 
Amortized
 
Fair
 
Gross Unrealized1
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,001

 
$
1,003

 
$
2

 
$
—

 
$
—

Municipal and other tax-exempt
 
86,808

 
88,458

 
2,430

 
(187
)
 
(593
)
Residential mortgage-backed securities:
 


 


 


 


 


U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
5,270,918

 
5,426,832

 
156,699

 
(785
)
 
—

FHLMC
 
3,527,123

 
3,607,060

 
81,679

 
(1,742
)
 
—

GNMA
 
645,103

 
674,006

 
28,973

 
(70
)
 
—

Other
 
188,831

 
195,634

 
6,803

 
—

 
—

Total U.S. government agencies
 
9,631,975

 
9,903,532

 
274,154

 
(2,597
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
134,266

 
118,414

 
—

 
—

 
(15,852
)
Jumbo-A loans
 
219,917

 
199,347

 
618

 
(943
)
 
(20,245
)
Total private issue
 
354,183

 
317,761

 
618

 
(943
)
 
(36,097
)
Total residential mortgage-backed securities
 
9,986,158

 
10,221,293

 
274,772

 
(3,540
)
 
(36,097
)
Other debt securities
 
35,739

 
36,286

 
559

 
(12
)
 
—

Perpetual preferred stock
 
22,171

 
23,431

 
1,812

 
(552
)
 
—

Equity securities and mutual funds
 
21,285

 
24,944

 
3,989

 
(330
)
 
—

Total
 
$
10,153,162

 
$
10,395,415

 
$
283,564

 
$
(4,621
)
 
$
(36,690
)
1 
Gross unrealized gain/loss recognized in AOCI in the consolidated balance sheet
2 
Amounts represent unrealized loss that remains in AOCI after an other-than-temporary credit loss has been recognized in income.

The amortized cost and fair values of available for sale securities at June 30, 2013, by contractual maturity, are as shown in the following table (dollars in thousands):
 
Less than
One Year
 
One to
Five Years
 
Six to
Ten Years
 
Over
Ten Years
 
Total
 
Weighted
Average
Maturity5
U.S. Treasuries:
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
$
1,061

 
$
—

 
$
—

 
$
—

 
$
1,061

 
1.68

Fair value
1,060

 
—

 
—

 
—

 
1,060

 
 
Nominal yield
0.24

 
—

 
—

 
—

 
0.24

 
 
Municipal and other tax-exempt:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
1,684

 
33,591

 
6,382

 
54,317

 
95,974

 
14.84

Fair value
1,705

 
34,777

 
6,621

 
52,000

 
95,103

 
 
Nominal yield¹
—

 
0.95

 
0.69

 
2.55

6 
1.82

 
 
Commercial mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
—

 
414,587

 
1,150,171

 
320,827

 
1,885,585

 
10.74

Fair value
—

 
409,069

 
1,121,016

 
316,858

 
1,846,943

 
 
Nominal yield
—

 
1.08

 
1.34

 
1.35

 
1.28

 
 
Other debt securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
—

 
30,222

 
—

 
5,400

 
35,622

 
5.98

Fair value
—

 
30,701

 
—

 
5,193

 
35,894

 
 
Nominal yield
—

 
1.80

 
—

 
1.41

6 
1.74

 
 
Total fixed maturity securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
2,745

 
$
478,400

 
$
1,156,553

 
$
380,544

 
$
2,018,242

 
10.84

Fair value
2,765

 
474,547

 
1,127,637

 
374,051

 
1,979,000

 
 
Nominal yield
0.09

 
1.12

 
1.33

 
1.52

 
1.32

 
 
Residential mortgage-backed securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
 

 
 

 
 

 
 

 
8,595,437

 
2 

Fair value
 

 
 

 
 

 
 

 
8,669,970

 
 
Nominal yield4
 

 
 

 
 

 
 

 
1.97

 
 
Equity securities and mutual funds:
 

 
 

 
 

 
 

 
 

 
 

Amortized cost
 

 
 

 
 

 
 

 
42,162

 
³

Fair value
 

 
 

 
 

 
 

 
49,104

 
 

Nominal yield
 

 
 

 
 

 
 

 
1.30

 
 

Total available-for-sale securities:
 

 
 

 
 

 
 

 
 
 
 

Amortized cost
 

 
 

 
 

 
 

 
$
10,655,841

 
 

Fair value
 

 
 

 
 

 
 

 
10,698,074

 
 

Nominal yield
 

 
 

 
 

 
 

 
1.85

 
 

1 
Calculated on a taxable equivalent basis using a 39% effective tax rate.
2 
The average expected lives of mortgage-backed securities were 3.5 based upon current prepayment assumptions.
3 
Primarily common stock and preferred stock of corporate issuers with no stated maturity.
4 
The nominal yield on mortgage-backed securities is based upon prepayment assumptions at the purchase date. Actual yields earned may differ significantly based upon actual prepayments. See Quarterly Financial Summary –– Unaudited following for current yields on available for sale securities portfolio.
5 
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty.
6 
Nominal yield on municipal and other tax-exempt securities and other debt securities with contractual maturity dates over ten years are based on variable rates which generally are reset within 35 days.

Sales of available for sale securities resulted in gains and losses as follows (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2013
 
2012
 
2013
 
2012
Proceeds
$
1,083,001

 
$
459,610

 
$
1,837,970

 
$
1,451,551

Gross realized gains
9,992

 
20,481

 
15,784

 
32,166

Gross realized losses
(6,239
)
 
—

 
(7,176
)
 
(7,354
)
Related federal and state income tax expense
1,460

 
7,967

 
3,349

 
9,652
Securities Pledged As Collateral [Table Text Block]
 
June 30, 2013
 
December 31, 2012
 
June 30, 2012
Investment:
 
 
 
 
 
Carrying value
$
97,286

 
$
117,346

 
$
156,852

Fair value
100,644

 
121,647

 
162,391

 
 
 
 
 
 
Available for sale:
 
 
 
 
 
Amortized cost
5,078,098

 
4,070,250

 
3,552,776

Fair value
5,103,507

 
4,186,390

 
3,686,838
Schedule of Unrealized Loss on Investments [Table Text Block]
.

Temporarily Impaired Securities as of June 30, 2013
(in thousands):

 
 
Number of Securities
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal and other tax-exempt
 
149

 
$
271,897

 
$
5,816

 
$
—

 
$
—

 
$
271,897

 
$
5,816

U.S. Agency residential mortgage-backed securities – Other
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other debt securities
 
14

 
841

 
60

 
—

 
—

 
841

 
60

Total investment
 
163

 
$
272,738

 
$
5,876

 
$
—

 
$
—

 
$
272,738

 
$
5,876

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury
 
1

 
$
1,060

 
$
1

 
$
—

 
$
—

 
$
1,060

 
$
1

Municipal and other tax-exempt1
 
86

 
$
66,168

 
$
2,524

 
$
—

 
$
—

 
$
66,168

 
$
2,524

Residential mortgage-backed securities:
 
 
 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 
 
 

 
 

 
 

 
 

 


 


FNMA
 
72

 
2,196,603

 
39,481

 
—

 
—

 
2,196,603

 
39,481

FHLMC
 
38

 
1,202,545

 
12,604

 
—

 
—

 
1,202,545

 
12,604

GNMA
 
13

 
197,149

 
2,728

 
—

 
—

 
197,149

 
2,728

Total U.S. agencies
 
123

 
3,596,297

 
54,813

 
—

 
—

 
3,596,297

 
54,813

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
10

 
51,681

 
1,236

 
3,379

 
437

 
55,060

 
1,673

Jumbo-A loans
 
2

 
17,615

 
296

 
12,298

 
275

 
29,913

 
571

Total private issue
 
12

 
69,296

 
1,532

 
15,677

 
712

 
84,973

 
2,244

Total residential mortgage-backed securities
 
135

 
3,665,593

 
56,345

 
15,677

 
712

 
3,681,270

 
57,057

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
113

 
1,730,306

 
38,985

 
—

 
—

 
1,730,306

 
38,985

Other debt securities
 
4

 
5,193

 
207

 
—

 
—

 
5,193

 
207

Perpetual preferred stocks
 
1

 
4,973

 
28

 
—

 
—

 
4,973

 
28

Equity securities and mutual   funds
 
7

 
3,558

 
205

 
—

 
—

 
3,558

 
205

Total available for sale
 
347

 
$
5,476,851

$
—

$
98,295

$
—

$
15,677

$
—

$
712

$
—

$
5,492,528

$
—

$
99,007

1Includes the following securities for which an unrealized loss remains in AOCI after an other-than-temporary credit loss has been recognized in income:
Municipal and other tax-exempt
 
21

 
$
11,731

 
$
654

 
$
—

 
$
—

 
$
11,731

 
$
654

Alt-A loans
 
10

 
51,681

 
1,236

 
3,379

 
437

 
55,060

 
1,673

Jumbo-A loans
 
2

 
17,615

 
296

 
—

 
—

 
17,615

 
296


Temporarily Impaired Securities as of December 31, 2012
(In thousands)

 
 
Number of Securities
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal and other tax- exempt
 
53

 
$
92,768

 
$
483

 
$
—

 
$
—

 
$
92,768

 
$
483

U.S. Agency residential mortgage-backed securities – Other
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other debt securities
 
14

 
881

 
20

 
—

 
—

 
881

 
20

Total investment
 
67

 
$
93,649

 
$
503

 
$
—

 
$
—

 
$
93,649

 
$
503

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 

 
 

 
 

 
 

 
 

 


 


Municipal and other tax-exempt
 
38

 
$
6,150

 
$
11

 
$
26,108

 
$
153

 
$
32,258

 
$
164

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
12

 
161,828

 
1,161

 
—

 
—

 
161,828

 
1,161

FHLMC
 
—

 
—

 
—

 
—

 
—

 
—

 
—

GNMA
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total U.S. agencies
 
12

 
161,828

 
1,161

 
—

 
—

 
161,828

 
1,161

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
12

 
—

 
—

 
87,907

 
2,580

 
87,907

 
2,580

Jumbo-A loans
 
11

 
—

 
—

 
43,252

 
1,737

 
43,252

 
1,737

Total private issue
 
23

 
—

 
—

 
131,159

 
4,317

 
131,159

 
4,317

Total residential mortgage-backed securities
 
35

 
161,828

 
1,161

 
131,159

 
4,317

 
292,987

 
5,478

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
8

 
275,065

 
677

 
—

 
—

 
275,065

 
677

Other debt securities
 
3

 
4,899

 
—

 
—

 
—

 
4,899

 
—

Perpetual preferred stocks
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Equity securities and mutual funds
 
22

 
202

 
1

 
2,161

 
277

 
2,363

 
278

Total available for sale
 
106

 
$
448,144

 
$
1,850

 
$
159,428

 
$
4,747

 
$
607,572

 
$
6,597

1 
Includes the following securities for which an unrealized loss remains in AOCI after an other-than-temporary credit loss has been recognized in income:
Alt-A loans
 
12

 
$
—

 
$
—

 
$
87,907

 
$
2,580

 
$
87,907

 
$
2,580

Jumbo-A loans
 
10

 
—

 
—

 
29,128

 
1,602

 
29,128

 
1,602


Temporarily Impaired Securities as of June 30, 2012
(In thousands)

 
 
Number of Securities
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal and other tax- exempt
 
6

 
$
9,321

 
$
25

 
$
—

 
$
—

 
$
9,321

 
$
25

U.S. Agency residential mortgage-backed securities – Other
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other debt securities
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total investment
 
6

 
$
9,321

 
$
25

 
$
—

 
$
—

 
$
9,321

 
$
25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale:
 
 

 
 

 
 

 
 

 
 

 


 


Municipal and other tax-exempt1
 
66

 
$
21,950

 
$
640

 
$
27,864

 
$
140

 
$
49,814

 
$
780

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
13

 
528,649

 
785

 
—

 
—

 
528,649

 
785

FHLMC
 
10

 
438,190

 
1,742

 
—

 
—

 
438,190

 
1,742

GNMA
 
2

 
74,789

 
70

 
—

 
—

 
74,789

 
70

Total U.S. agencies
 
25

 
1,041,628

 
2,597

 
—

 
—

 
1,041,628

 
2,597

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
16

 
—

 
—

 
118,414

 
15,852

 
118,414

 
15,852

Jumbo-A loans
 
27

 
—

 
—

 
174,234

 
21,188

 
174,234

 
21,188

Total private issue
 
43

 
—

 
—

 
292,648

 
37,040

 
292,648

 
37,040

Total residential mortgage-backed securities
 
68

 
1,041,628

 
2,597

 
292,648

 
37,040

 
1,334,276

 
39,637

Other debt securities
 
2

 
—

 
—

 
988

 
12

 
988

 
12

Perpetual preferred stocks
 
5

 
10,717

 
552

 
—

 
—

 
10,717

 
552

Equity securities and mutual funds
 
12

 
2,579

 
330

 
—

 
—

 
2,579

 
330

Total available for sale
 
153

 
$
1,076,874

 
$
4,119

 
$
321,500

 
$
37,192

 
$
1,398,374

 
$
41,311

1 
Includes the following securities for which an unrealized loss remains in AOCI after an other-than-temporary credit loss has been recognized in income:
Municipal and other tax-exempt
 
21

 
12,804

 
593

 
—

 
—

 
12,804

 
593

Alt-A loans
 
16

 
—

 
—

 
118,414

 
15,852

 
118,414

 
15,852

Jumbo-A loans
 
27

 
—

 
—

 
162,754

 
20,245

 
162,754

 
20,245



On a quart
Investments by Lowest Credit Rating [Table Text Block]
At June 30, 2013, the composition of the Company’s investment and available for sale securities portfolios by the lowest current credit rating assigned by any of the three nationally-recognized rating agencies is as follows (in thousands):
 
 
 
U.S. Govt / GSE 1
 

AAA - AA
 
 
A - BBB
 
 
Below Investment Grade
 
 
Not Rated
 
 
Total
 
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal and other tax-exempt
 
$
—

 
$
—

 
$
271,541

 
$
266,827

 
$
24,565

 
$
24,834

 
$
—

 
$
—

 
$
79,211

 
$
80,029

 
$
375,317

 
$
371,690

Mortgage-backed securities -- other
 
64,172

 
66,796

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
64,172

 
66,796

Other debt securities
 
—

 
—

 
167,463

 
178,378

 
600

 
600

 
—

 
—

 
8,238

 
8,241

 
176,301

 
187,219

Total investment securities
 
$
64,172

 
$
66,796

 
$
439,004

 
$
445,205

 
$
25,165

 
$
25,434

 
$
—

 
$
—

 
$
87,449

 
$
88,270

 
$
615,790

 
$
625,705

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Govt / GSE 1
 
AAA - AA
 
 
A - BBB
 
Below Investment Grade
 
Not Rated
 
Total
 
 
Amortized Cost
 
Fair
Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair
Value
Available for Sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury
 
$
1,061

 
$
1,060

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,061

 
$
1,060

Municipal and other tax-exempt
 
—

 
—

 
60,895

 
61,295

 
22,695

 
22,077

 
12,384

 
11,731

 
—

 
—

 
95,974

 
95,103

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
4,648,337

 
4,687,141

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,648,337

 
4,687,141

FHLMC
 
2,695,506

 
2,715,896

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,695,506

 
2,715,896

GNMA
 
916,646

 
925,081

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
916,646

 
925,081

Other
 
42,563

 
44,677

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
42,563

 
44,677

Total U.S. government agencies
 
8,303,052

 
8,372,795

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8,303,052

 
8,372,795

Private issue:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
—

 
—

 
—

 
—

 
—

 
—

 
113,804

 
115,036

 
—

 
—

 
113,804

 
115,036

Jumbo-A loans
 
—

 
—

 
—

 
—

 
—

 
—

 
178,581

 
182,139

 
—

 
—

 
178,581

 
182,139

Total private issue
 
—

 
—

 
—

 
—

 
—

 
—

 
292,385

 
297,175

 
—

 
—

 
292,385

 
297,175

Total residential mortgage-backed securities
 
8,303,052

 
8,372,795

 
—

 
—

 
—

 
—

 
292,385

 
297,175

 
—

 
—

 
8,595,437

 
8,669,970

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
1,885,585

 
1,846,943

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1,885,585

 
1,846,943

Other debt securities
 
—

 
—

 
5,400

 
5,193

 
30,222

 
30,701

 
—

 
—

 
—

 
—

 
35,622

 
35,894

Perpetual preferred stock
 
—

 
—

 
—

 
—

 
22,172

 
25,583

 
—

 
—

 
—

 
—

 
22,172

 
25,583

Equity securities and mutual funds
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
19,990

 
23,521

 
19,990

 
23,521

Total available for sale securities
 
$
10,189,698

 
$
10,220,798

 
$
66,295

 
$
66,488

 
$
75,089

 
$
78,361

 
$
304,769

 
$
308,906

 
$
19,990

 
$
23,521

 
$
10,655,841

 
$
10,698,074

1 
U.S. government and government sponsored enterprises are not rated by the nationally-recognized rating agencies as these securities are guaranteed by agencies of the U.S. government or government-sponsored enterprises.
Schedule of Privately Issued Residential Mortgage-backed Securities [Table Text Block]
 
 
 
 
 
 
 
 
Credit Losses Recognized
 
 
 
 
 
 
 
 
Three months ended
 
 
 
 
 
 
 
 
 
 
June 30, 2013
 
Life-to-date
 
 
Number of Securities
 
Amortized Cost
 
Fair Value
 
Number of
Securities
 
Amount
 
Number of Securities
 
Amount
Alt-A
 
16

 
$
113,804

 
$
115,036

 
1

 
$
552

 
16

 
$
48,986

Jumbo-A
 
33

 
178,581

 
182,139

 
—

 
—

 
31

 
23,452

Total
 
49

 
$
292,385

 
$
297,175

 
1

 
$
552

 
47

 
$
72,438
Other-than-temporary impairement, Private Lable Mortgage-Backed Securities, Assumptions Used to Develop Projected Cash Flows [Table Text Block]
The primary assumptions used in this evaluation were:

 
June 30, 2013
 
December 31, 2012
 
6/30/2012
 
 
 
 
 
 
Unemployment rate
Increasing to 8% over the next 12 months and remain at 8% thereafter
 
Increasing to 8.5% over the next 12 months, dropping to 8% over the following 21 months and holding at 8% thereafter.
 
Increasing to 9.5% over the next 12 months, dropping to 8% over the following 21 months and holding at 8% thereafter.
Housing price appreciation/depreciation
Starting with current depreciated housing prices based on information derived from the FHFA1, appreciating 5% over the next 12 months, then flat for the following 12 months and then appreciating at 2% per year thereafter.
 
Starting with current depreciated housing prices based on information derived from the FHFA1, depreciating 2% over the next 12 months, then flat for the following 12 months and then appreciating at 2% per year thereafter.
 
Starting with current depreciated housing prices based on information derived from the FHFA1, depreciating 6% over the next 12 months and then appreciating at 2% per year thereafter.
Estimated liquidation costs
Reflect actual historical liquidations costs observed on Jumbo and Alt-A residential mortgage loans in securities owned by the Company.
 
Reflect actual historical liquidations costs observed on Jumbo and Alt-A residential mortgage loans in securities owned by the Company.
 
Reflect actual historical liquidations costs observed on Jumbo and Alt-A residential mortgage loans in securities owned by the Company.
Discount rates
Estimated cash flows were discounted at rates that range from 2.00% to 6.25% based on our current expected yields.
 
Estimated cash flows were discounted at rates that range from 2.00% to 6.25% based on our current expected yields.
 
Estimated cash flows were discounted at rates that range from 2.00% to 6.25% based on our current expected yields.
Rollforward Other-than-temporary Impairment Credit Losses Recognized in Earnings [Table Text Block]
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2013
 
2012
 
2013
 
2012
Balance of credit-related OTTI recognized on available for sale debt, beginning of period
 
$
75,475

 
$
72,057

 
$
75,228

 
$
76,131

Additions for credit-related OTTI not previously recognized
 
552

 
135

 
552

 
248

Additions for increases in credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost
 
—

 
723

 
247

 
4,332

Sales
 
—

 
—

 
—

 
(7,796
)
Balance of credit-related OTTI recognized on available for sale debt securities, end of period
 
$
76,027

 
$
72,915

 
$
76,027

 
$
72,915
Fair Value Option Securities [Table Text Block]
The fair value and net unrealized gain (loss) included in Fair value option securities is as follows (in thousands):
 
 
June 30, 2013
 
December 31, 2012
 
June 30, 2012
 
 
Fair Value
 
Net Unrealized Gain
 
Fair Value
 
Net Unrealized Gain
 
Fair
Value
 
Net Unrealized Gain
U.S. agency residential mortgage-backed securities
 
$
203,816

 
$
(8,048
)
 
$
257,040

 
$
3,314

 
$
299,467

 
$
8,373

Corporate debt securities
 
—

 
—

 
26,486

 
1,409

 
25,710

 
621

Other securities
 
1,940

 
(8
)
 
770

 
47

 
—

 
—

Total
 
$
205,756

 
$
(8,056
)
 
$
284,296

 
$
4,770

 
$
325,177

 
$
8,994