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Securities (Tables)
 3 Months Ended
Mar. 31, 2014
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):
 
 
 
March 31, 2014
 
December 31, 2013
 
March 31, 2013
 
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair
Value
 
Net Unrealized Gain (Loss)
U.S. Government agency debentures
 
$
28,588

 
$
14

 
$
34,120

 
$
77

 
$
55,358

 
$
48

U.S. agency residential mortgage-backed securities
 
23,595

 
83

 
21,011

 
123

 
33,106

 
160

Municipal and other tax-exempt securities
 
27,280

 
58

 
27,350

 
(182
)
 
90,710

 
(10
)
Other trading securities
 
7,108

 
(19
)
 
9,135

 
(7
)
 
27,424

 
41

Total
 
$
86,571

 
$
136

 
$
91,616

 
$
11

 
$
206,598

 
$
239
Investment Securities (Held-to-Maturity) [Table Text Block]
The amortized cost and fair values of investment securities are as follows (in thousands):

 
 
March 31, 2014
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
440,303

 
$
440,303

 
$
441,532

 
$
3,182

 
$
(1,953
)
U.S. agency residential mortgage-backed securities – Other
 
44,489

 
45,917

 
47,834

 
1,957

 
(40
)
Other debt securities
 
182,756

 
182,756

 
195,697

 
13,114

 
(173
)
Total
 
$
667,548

 
$
668,976

 
$
685,063

 
$
18,253

 
$
(2,166
)
1 
Carrying value includes $1.4 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.
 
 
December 31, 2013
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
440,187

 
$
440,187

 
$
439,870

 
$
2,452

 
$
(2,769
)
U.S. agency residential mortgage-backed securities – Other
 
48,351

 
50,182

 
51,864

 
1,738

 
(56
)
Other debt securities
 
187,509

 
187,509

 
195,393

 
8,497

 
(613
)
Total
 
$
676,047

 
$
677,878

 
$
687,127

 
$
12,687

 
$
(3,438
)
1 
Carrying value includes $1.8 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.
 
 
March 31, 2013
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
339,003

 
$
339,003

 
$
341,940

 
$
3,518

 
$
(581
)
U.S. agency residential mortgage-backed securities – Other
 
69,075

 
72,968

 
76,851

 
3,883

 
—

Other debt securities
 
177,300

 
177,300

 
196,403

 
19,153

 
(50
)
Total
 
$
585,378

 
$
589,271

 
$
615,194

 
$
26,554

 
$
(631
)

1 
Carrying value includes $3.9 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 March 31, 2014, 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
 
$
39,986

 
$
311,019

 
$
50,118

 
$
39,180

 
$
440,303

 
4.21

Fair value
 
40,099

 
311,262

 
49,968

 
40,203

 
441,532

 
 
Nominal yield¹
 
2.61
%
 
1.72
%
 
2.91
%
 
5.35
%
 
2.26
%
 
 
Other debt securities:
 
 

 
 

 
 

 
 

 
 

 
 
Carrying value
 
13,360

 
32,359

 
47,576

 
89,461

 
182,756

 
8.56

Fair value
 
13,416

 
33,002

 
49,626

 
99,653

 
195,697

 
 
Nominal yield
 
3.41
%
 
4.85
%
 
5.37
%
 
6.32
%
 
5.60
%
 
 
Total fixed maturity securities:
 
 

 
 

 
 

 
 

 
 

 
 
Carrying value
 
$
53,346

 
$
343,378

 
$
97,694

 
$
128,641

 
$
623,059

 
5.48

Fair value
 
53,515

 
344,264

 
99,594

 
139,856

 
637,229

 
 

Nominal yield
 
2.81
%
 
2.01
%
 
4.11
%
 
6.02
%
 
3.24
%
 
 

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Carrying value
 
 

 
 

 
 

 
 

 
$
45,917

 
³

Fair value
 
 

 
 

 
 

 
 

 
47,834

 
 

Nominal yield4
 
 

 
 

 
 

 
 

 
2.73
%
 
 

Total investment securities:
 
 

 
 

 
 

 
 

 
 

 
 

Carrying value
 
 

 
 

 
 

 
 

 
$
668,976

 
 

Fair value
 
 

 
 

 
 

 
 

 
685,063

 
 

Nominal yield
 
 

 
 

 
 

 
 

 
3.20
%
 
 

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 3.0 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):
 
 
March 31, 2014
 
 
Amortized
 
Fair
 
Gross Unrealized1
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,033

 
$
1,034

 
$
1

 
$
—

 
$
—

Municipal and other tax-exempt
 
69,434

 
70,065

 
1,548

 
(917
)
 
—

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
4,380,066

 
4,409,566

 
65,393

 
(35,893
)
 
—

FHLMC
 
2,158,750

 
2,162,580

 
25,644

 
(21,814
)
 
—

GNMA
 
885,058

 
888,989

 
9,612

 
(5,681
)
 
—

Other
 
13,426

 
14,434

 
1,008

 
—

 
—

Total U.S. government agencies
 
7,437,300

 
7,475,569

 
101,657

 
(63,388
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
73,244

 
77,557

 
4,597

 
—

 
(284
)
Jumbo-A loans
 
106,258

 
111,691

 
5,741

 
—

 
(308
)
Total private issue
 
179,502

 
189,248

 
10,338

 
—

 
(592
)
Total residential mortgage-backed securities
 
7,616,802

 
7,664,817

 
111,995

 
(63,388
)
 
(592
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
2,159,704

 
2,123,762

 
1,329

 
(37,271
)
 
—

Other debt securities
 
35,031

 
35,119

 
275

 
(187
)
 
—

Perpetual preferred stock
 
22,171

 
24,281

 
2,110

 
—

 
—

Equity securities and mutual funds
 
14,102

 
14,645

 
602

 
(59
)
 
—

Total
 
$
9,918,277

 
$
9,933,723

 
$
117,860

 
$
(101,822
)
 
$
(592
)
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, 2013
 
 
Amortized
 
Fair
 
Gross Unrealized¹
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,042

 
$
1,042

 
$
—

 
$
—

 
$
—

Municipal and other tax-exempt
 
73,232

 
73,775

 
1,606

 
(1,063
)
 
—

Residential mortgage-backed securities:
 
 
 
 

 
 

 
 

 
 

U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
4,224,327

 
4,232,332

 
68,154

 
(60,149
)
 
—

FHLMC
 
2,308,341

 
2,293,943

 
25,813

 
(40,211
)
 
—

GNMA
 
1,151,225

 
1,152,128

 
9,435

 
(8,532
)
 
—

Other
 
36,296

 
37,607

 
1,311

 
—

 
—

Total U.S. government agencies
 
7,720,189

 
7,716,010

 
104,713

 
(108,892
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
104,559

 
107,212

 
4,386

 
—

 
(1,733
)
Jumbo-A loans
 
109,622

 
113,887

 
4,974

 
—

 
(709
)
Total private issue
 
214,181

 
221,099

 
9,360

 
—

 
(2,442
)
Total residential mortgage-backed securities
 
7,934,370

 
7,937,109

 
114,073

 
(108,892
)
 
(2,442
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
2,100,146

 
2,055,804

 
1,042

 
(45,384
)
 
—

Other debt securities
 
35,061

 
35,241

 
368

 
(188
)
 
—

Perpetual preferred stock
 
22,171

 
22,863

 
705

 
(13
)
 
—

Equity securities and mutual funds
 
19,069

 
21,328

 
2,326

 
(67
)
 
—

Total
 
$
10,185,091

 
$
10,147,162

 
$
120,120

 
$
(155,607
)
 
$
(2,442
)
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.

 
 
March 31, 2013
 
 
Amortized
 
Fair
 
Gross Unrealized1
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,000

 
$
1,000

 
$
—

 
$
—

 
$
—

Municipal and other tax-exempt
 
84,831

 
85,447

 
2,377

 
(1,263
)
 
(498
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
5,036,888

 
5,161,971

 
127,362

 
(2,279
)
 
—

FHLMC
 
2,747,896

 
2,809,286

 
61,390

 
—

 
—

GNMA
 
1,044,086

 
1,060,870

 
16,784

 
—

 
—

Other
 
128,519

 
133,085

 
4,566

 
—

 
—

Total U.S. government agencies
 
8,957,389

 
9,165,212

 
210,102

 
(2,279
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
119,373

 
124,164

 
5,198

 
—

 
(407
)
Jumbo-A loans
 
188,065

 
192,044

 
6,032

 
(139
)
 
(1,914
)
Total private issue
 
307,438

 
316,208

 
11,230

 
(139
)
 
(2,321
)
Total residential mortgage-backed securities
 
9,264,827

 
9,481,420

 
221,332

 
(2,418
)
 
(2,321
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
1,402,594

 
1,405,346

 
4,693

 
(1,941
)
 
—

Other debt securities
 
35,650

 
36,079

 
635

 
(206
)
 
—

Perpetual preferred stock
 
22,171

 
26,832

 
4,661

 
—

 
—

Equity securities and mutual funds
 
19,452

 
23,021

 
3,574

 
(5
)
 
—

Total
 
$
10,830,525

 
$
11,059,145

 
$
237,272

 
$
(5,833
)
 
$
(2,819
)
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 March 31, 2014, 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
$
1,033

 
$
—

 
$
—

 
$
—

 
$
1,033

 
0.88

Fair value
1,034

 
—

 
—

 
—

 
1,034

 
 
Nominal yield
0.24
%
 
—
%
 
—
%
 
—
%
 
0.24
%
 
 
Municipal and other tax-exempt:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
3,204

 
$
33,928

 
$
2,751

 
$
29,551

 
$
69,434

 
9.85

Fair value
3,245

 
35,096

 
2,967

 
28,757

 
70,065

 
 
Nominal yield¹
4.11
%
 
3.97
%
 
6.26
%
 
1.59
%
6 
3.05
%
 
 
Commercial mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
$
—

 
$
738,616

 
$
1,059,505

 
$
361,583

 
$
2,159,704

 
9.02

Fair value
—

 
731,428

 
1,036,404

 
355,930

 
2,123,762

 
 
Nominal yield
—
%
 
1.25
%
 
1.47
%
 
1.26
%
 
1.36
%
 
 
Other debt securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
24,994

 
$
5,137

 
$
—

 
$
4,900

 
$
35,031

 
5.07

Fair value
25,194

 
5,213

 
—

 
4,712

 
35,119

 
 
Nominal yield
1.74
%
 
2.12
%
 
—
%
 
1.64
%
6 
1.78
%
 
 
Total fixed maturity securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
29,231

 
$
777,681

 
$
1,062,256

 
$
396,034

 
$
2,265,202

 
8.98

Fair value
29,473

 
771,737

 
1,039,371

 
389,399

 
2,229,980

 
 
Nominal yield
2.01
%
 
1.37
%
 
1.48
%
 
1.29
%
 
1.42
%
 
 
Residential mortgage-backed securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
 

 
 

 
 

 
 

 
$
7,616,802

 
2 

Fair value
 

 
 

 
 

 
 

 
7,664,817

 
 
Nominal yield4
 

 
 

 
 

 
 

 
1.87
%
 
 
Equity securities and mutual funds:
 

 
 

 
 

 
 

 
 

 
 

Amortized cost
 

 
 

 
 

 
 

 
$
36,273

 
³

Fair value
 

 
 

 
 

 
 

 
38,926

 
 

Nominal yield
 

 
 

 
 

 
 

 
1.44
%
 
 

Total available-for-sale securities:
 

 
 

 
 

 
 

 
 
 
 

Amortized cost
 

 
 

 
 

 
 

 
$
9,918,277

 
 

Fair value
 

 
 

 
 

 
 

 
9,933,723

 
 

Nominal yield
 

 
 

 
 

 
 

 
1.76
%
 
 

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 years 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
 
March 31,
 
2014
 
2013
Proceeds
$
531,385

 
$
728,424

Gross realized gains
6,433

 
5,792

Gross realized losses
(5,193
)
 
(936
)
Related federal and state income tax expense
482

 
1,889
Securities Pledged As Collateral [Table Text Block]
 
March 31,
2014
 
December 31,
2013
 
March 31,
2013
Investment:
 
 
 
 
 
Carrying value
$
87,757

 
$
89,087

 
$
112,990

Fair value
90,765

 
91,804

 
118,054

 
 
 
 
 
 
Available for sale:
 
 
 
 
 
Amortized cost
5,177,411

 
5,171,782

 
4,415,455

Fair value
5,169,432

 
5,133,530

 
4,524,553
Schedule of Unrealized Loss on Investments [Table Text Block]
or March 31, 2013.

Temporarily Impaired Securities as of March 31, 2014
(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
 
96

 
$
78,833

 
$
601

 
$
117,909

 
$
1,352

 
$
196,742

 
$
1,953

U.S. Agency residential mortgage-backed securities – Other
 
1

 
9,645

 
40

 
—

 
—

 
9,645

 
40

Other debt securities
 
31

 
12,516

 
130

 
798

 
43

 
13,314

 
173

Total investment
 
128

 
$
100,994

 
$
771

 
$
118,707

 
$
1,395

 
$
219,701

 
$
2,166


 
 
Number of Securities
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Available for sale:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Municipal and other tax-exempt
 
29

 
$
13,750

 
$
198

 
$
16,601

 
$
719

 
$
30,351

 
$
917

Residential mortgage-backed securities:
 
 
 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 
 
 

 
 

 
 

 
 

 


 


FNMA
 
77

 
2,075,587

 
35,893

 
—

 
—

 
2,075,587

 
35,893

FHLMC
 
45

 
1,236,653

 
21,814

 
—

 
—

 
1,236,653

 
21,814

GNMA
 
14

 
423,725

 
5,681

 
—

 
—

 
423,725

 
5,681

Total U.S. agencies
 
136

 
3,735,965

 
63,388

 
—

 
—

 
3,735,965

 
63,388

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
5

 
—

 
—

 
15,725

 
284

 
15,725

 
284

Jumbo-A loans
 
8

 
11,744

 
308

 
—

 
—

 
11,744

 
308

Total private issue
 
13

 
11,744

 
308

 
15,725

 
284

 
27,469

 
592

Total residential mortgage-backed securities
 
149

 
3,747,709

 
63,696

 
15,725

 
284

 
3,763,434

 
63,980

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
128

 
1,545,035

 
30,151

 
207,246

 
7,120

 
1,752,281

 
37,271

Other debt securities
 
3

 
481

 
19

 
4,231

 
168

 
4,712

 
187

Perpetual preferred stocks
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Equity securities and mutual   funds
 
106

 
1,778

 
48

 
172

 
11

 
1,950

 
59

Total available for sale
 
415

 
$
5,308,753


$
94,112


$
243,975


$
8,302


$
5,552,728


$
102,414

1Includes 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
 
5

 
—

 
—

 
15,725

 
284

 
15,725

 
284

Jumbo-A loans
 
8

 
11,744

 
308

 
—

 
—

 
11,744

 
308


Temporarily Impaired Securities as of December 31, 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
 
107

 
$
166,382

 
$
1,921

 
$
53,073

 
$
848

 
$
219,455

 
$
2,769

U.S. Agency residential mortgage-backed securities – Other
 
2

 
15,224

 
56

 
—

 
—

 
15,224

 
56

Other debt securities
 
30

 
10,932

 
549

 
777

 
64

 
11,709

 
613

Total investment
 
139

 
$
192,538

 
$
2,526

 
$
53,850

 
$
912

 
$
246,388

 
$
3,438


 
 
Number of Securities
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Available for sale:
 
 

 
 

 
 

 
 

 
 

 


 


Municipal and other tax-exempt
 
27

 
$
13,286

 
$
245

 
$
17,805

 
$
818

 
$
31,091

 
$
1,063

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
81

 
2,281,491

 
60,149

 
—

 
—

 
2,281,491

 
60,149

FHLMC
 
50

 
1,450,588

 
40,211

 
—

 
—

 
1,450,588

 
40,211

GNMA
 
27

 
647,058

 
8,532

 
—

 
—

 
647,058

 
8,532

Total U.S. agencies
 
158

 
4,379,137

 
108,892

 
—

 
—

 
4,379,137

 
108,892

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
7

 
11,043

 
756

 
30,774

 
977

 
41,817

 
1,733

Jumbo-A loans
 
9

 
14,642

 
709

 
—

 
—

 
14,642

 
709

Total private issue
 
16

 
25,685

 
1,465

 
30,774

 
977

 
56,459

 
2,442

Total residential mortgage-backed securities
 
174

 
4,404,822

 
110,357

 
30,774

 
977

 
4,435,596

 
111,334

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
123

 
1,800,717

 
45,302

 
2,286

 
82

 
1,803,003

 
45,384

Other debt securities
 
3

 
4,712

 
188

 
—

 
—

 
4,712

 
188

Perpetual preferred stocks
 
1

 
4,988

 
13

 
—

 
—

 
4,988

 
13

Equity securities and mutual funds
 
118

 
2,070

 
67

 
—

 
—

 
2,070

 
67

Total available for sale
 
446

 
$
6,230,595

 
$
156,172

 
$
50,865

 
$
1,877

 
$
6,281,460

 
$
158,049

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
 
7

 
$
11,043

 
$
756

 
$
30,774

 
$
977

 
$
41,817

 
$
1,733

Jumbo-A loans
 
9

 
14,642

 
709

 
—

 
—

 
14,642

 
709


Temporarily Impaired Securities as of March 31, 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
 
63

 
$
141,778

 
$
581

 
$
—

 
$
—

 
$
141,778

 
$
581

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

 
—

 
—

 
—

 
—

 
—

 
—

Other debt securities
 
14

 
852

 
50

 
—

 
—

 
852

 
50

Total investment
 
77

 
$
142,630

 
$
631

 
$
—

 
$
—

 
$
142,630

 
$
631


 
 
Number of Securities
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Available for sale:
 
 

 
 

 
 

 
 

 
 

 


 


Municipal and other tax-exempt1
 
53

 
$
10,390

 
$
397

 
$
29,724

 
$
1,364

 
$
40,114

 
$
1,761

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
26

 
875,087

 
2,279

 
—

 
—

 
875,087

 
2,279

FHLMC
 
—

 
—

 
—

 
—

 
—

 
—

 
—

GNMA
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total U.S. agencies
 
26

 
875,087

 
2,279

 
—

 
—

 
875,087

 
2,279

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
1

 
—

 
—

 
3,500

 
407

 
3,500

 
407

Jumbo-A loans
 
11

 
39,462

 
1,327

 
26,440

 
726

 
65,902

 
2,053

Total private issue
 
12

 
39,462

 
1,327

 
29,940

 
1,133

 
69,402

 
2,460

Total residential mortgage-backed securities
 
38

 
914,549

 
3,606

 
29,940

 
1,133

 
944,489

 
4,739

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
49

 
604,290

 
1,941

 
—

 
—

 
604,290

 
1,941

Other debt securities
 
4

 
4,712

 
187

 
481

 
19

 
5,193

 
206

Perpetual preferred stocks
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Equity securities and mutual funds
 
3

 
598

 
5

 
—

 
—

 
598

 
5

Total available for sale
 
147

 
$
1,534,539

 
$
6,136

 
$
60,145

 
$
2,516

 
$
1,594,684

 
$
8,652

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

 
$
7,424

 
$
310

 
$
4,462

 
$
188

 
$
11,886

 
$
498

Alt-A loans
 
1

 
—

 
—

 
3,500

 
407

 
3,500

 
407

Jumbo-A loans
 
10

 
39,462

 
1,327

 
13,248

 
587

 
52,710

 
1,914
Investments by Lowest Credit Rating [Table Text Block]
At March 31, 2014, 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
 
$
—

 
$
—

 
$
280,508

 
$
279,497

 
$
18,107

 
$
18,298

 
$
—

 
$
—

 
$
141,688

 
$
143,737

 
$
440,303

 
$
441,532

Mortgage-backed securities -- other
 
45,917

 
47,834

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
45,917

 
47,834

Other debt securities
 
—

 
—

 
160,353

 
173,378

 
—

 
—

 
—

 
—

 
22,403

 
22,319

 
182,756

 
195,697

Total investment securities
 
$
45,917

 
$
47,834

 
$
440,861

 
$
452,875

 
$
18,107

 
$
18,298

 
$
—

 
$
—

 
$
164,091

 
$
166,056

 
$
668,976

 
$
685,063

 
 
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
 
$
1,033

 
$
1,034

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,033

 
$
1,034

Municipal and other tax-exempt
 
—

 
—

 
46,208

 
47,268

 
11,491

 
11,206

 
—

 
—

 
11,735

 
11,591

 
69,434

 
70,065

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
4,380,066

 
4,409,566

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,380,066

 
4,409,566

FHLMC
 
2,158,750

 
2,162,580

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,158,750

 
2,162,580

GNMA
 
885,058

 
888,989

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
885,058

 
888,989

Other
 
13,426

 
14,434

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
13,426

 
14,434

Total U.S. government agencies
 
7,437,300

 
7,475,569

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
7,437,300

 
7,475,569

Private issue:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
—

 
—

 
—

 
—

 
—

 
—

 
73,244

 
77,557

 
—

 
—

 
73,244

 
77,557

Jumbo-A loans
 
—

 
—

 
—

 
—

 
—

 
—

 
106,258

 
111,691

 
—

 
—

 
106,258

 
111,691

Total private issue
 
—

 
—

 
—

 
—

 
—

 
—

 
179,502

 
189,248

 
—

 
—

 
179,502

 
189,248

Total residential mortgage-backed securities
 
7,437,300

 
7,475,569

 
—

 
—

 
—

 
—

 
179,502

 
189,248

 
—

 
—

 
7,616,802

 
7,664,817

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
2,159,704

 
2,123,762

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,159,704

 
2,123,762

Other debt securities
 
—

 
—

 
4,900

 
4,712

 
30,131

 
30,407

 
—

 
—

 
—

 
—

 
35,031

 
35,119

Perpetual preferred stock
 
—

 
—

 
—

 
—

 
11,406

 
12,469

 
10,765

 
11,812

 
—

 
—

 
22,171

 
24,281

Equity securities and mutual funds
 
—

 
—

 
4

 
462

 
—

 
—

 
—

 
—

 
14,098

 
14,183

 
14,102

 
14,645

Total available for sale securities
 
$
9,598,037

 
$
9,600,365

 
$
51,112

 
$
52,442

 
$
53,028

 
$
54,082

 
$
190,267

 
$
201,060

 
$
25,833

 
$
25,774

 
$
9,918,277

 
$
9,933,723

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
 
 
 
 
 
 
 
 
 
 
March 31, 2014
 
Life-to-date
 
 
Number of Securities
 
Amortized Cost
 
Fair Value
 
Number of
Securities
 
Amount
 
Number of Securities
 
Amount
Alt-A
 
14

 
$
73,244

 
$
77,557

 
—

 
$
—

 
14

 
$
36,127

Jumbo-A
 
31

 
106,258

 
111,691

 
—

 
—

 
29

 
18,220

Total
 
45

 
$
179,502

 
$
189,248

 
—

 
$
—

 
43

 
$
54,347
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:

 
March 31,
2014
 
December 31,
2013
 
March 31,
2013
 
 
 
 
 
 
Unemployment rate
Held constant at 7.3% over the next 12 months and remains at 7.3% thereafter.
 
Increasing to 7.3% over the next 12 months and remain at 7.3% thereafter.
 
Increasing to 8% over the next 12 months and remain at 8% thereafter.
Housing price appreciation/depreciation
Starting with current depreciated housing prices based on information derived from the FHFA1, appreciating 4% 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, appreciating 4% 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 he following 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]
The following is a tabular roll forward of the amount of credit-related OTTI recognized on available for sale debt securities in earnings (in thousands):
 
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
Balance of credit-related OTTI recognized on available for sale debt, beginning of period
 
$
67,346

 
$
75,228

Additions for credit-related OTTI not previously recognized
 
—

 
—

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
 
—

 
247

Reductions for change in intent to hold before recovery
 
—

 
—

Sales
 
(12,999
)
 
—

Balance of credit-related OTTI recognized on available for sale debt securities, end of period
 
$
54,347

 
$
75,475
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):
 
 
March 31, 2014
 
December 31, 2013
 
March 31, 2013
 
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair Value
 
Net Unrealized Gain
 
Fair
Value
 
Net Unrealized Gain
U.S. agency residential mortgage-backed securities
 
$
156,525

 
$
(5,794
)
 
$
157,431

 
$
(8,378
)
 
$
208,900

 
$
726

Other securities
 
4,359

 
284

 
9,694

 
209

 
1,292

 
46

Total
 
$
160,884

 
$
(5,510
)
 
$
167,125

 
$
(8,169
)
 
$
210,192

 
$
772
Schedule of Cost Method Investments [Table Text Block]
 
March 31, 2014
 
December 31, 2013
 
March 31, 2013
Federal Reserve stock
$
33,741

 
$
33,742

 
$
33,695

Federal Home Loan Bank stock
51,902

 
51,498

 
86,293

Total
$
85,643

 
$
85,240

 
$
119,988