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Securities (Tables)
 9 Months Ended
Sep. 30, 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):
 
 
 
September 30, 2014
 
December 31, 2013
 
September 30, 2013
 
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair
Value
 
Net Unrealized Gain (Loss)
U.S. Government agency debentures
 
$
41,004

 
$
(5
)
 
$
34,120

 
$
77

 
$
74,632

 
$
(598
)
U.S. agency residential mortgage-backed securities
 
33,226

 
(2,002
)
 
21,011

 
123

 
26,129

 
456

Municipal and other tax-exempt securities
 
76,884

 
90

 
27,350

 
(182
)
 
37,057

 
81

Other trading securities
 
18,598

 
62

 
9,135

 
(7
)
 
13,069

 
(25
)
Total
 
$
169,712

 
$
(1,855
)
 
$
91,616

 
$
11

 
$
150,887

 
$
(86
)
Investment Securities (Held-to-Maturity) [Table Text Block]
The amortized cost and fair values of investment securities are as follows (in thousands):

 
 
September 30, 2014
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
410,595

 
$
410,595

 
$
415,233

 
$
4,847

 
$
(209
)
U.S. agency residential mortgage-backed securities – Other
 
37,763

 
38,585

 
40,259

 
1,674

 
—

Other debt securities
 
205,911

 
205,911

 
220,953

 
16,001

 
(959
)
Total
 
$
654,269

 
$
655,091

 
$
676,445

 
$
22,522

 
$
(1,168
)
1 
Carrying value includes $822 thousand 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.
 
 
September 30, 2013
 
 
Amortized
 
Carrying
 
Fair
 
Gross Unrealized2
 
 
Cost
 
Value1
 
Value
 
Gain
 
Loss
Municipal and other tax-exempt
 
$
409,542

 
$
409,542

 
$
407,562

 
$
2,316

 
$
(4,296
)
U.S. agency residential mortgage-backed securities – Other
 
53,858

 
56,182

 
58,442

 
2,260

 
—

Other debt securities
 
178,501

 
178,501

 
188,475

 
10,094

 
(120
)
Total
 
$
641,901

 
$
644,225

 
$
654,479

 
$
14,670

 
$
(4,416
)
1 
Carrying value includes $2.3 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 September 30, 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
 
$
34,346

 
$
308,611

 
$
28,772

 
$
38,866

 
$
410,595

 
3.99

Fair value
 
34,512

 
310,492

 
29,280

 
40,949

 
415,233

 
 
Nominal yield¹
 
1.96
%
 
1.68
%
 
3.44
%
 
5.36
%
 
2.18
%
 
 
Other debt securities:
 
 

 
 

 
 

 
 

 
 

 
 
Carrying value
 
15,052

 
36,732

 
56,463

 
97,664

 
205,911

 
9.47

Fair value
 
15,076

 
37,456

 
59,141

 
109,280

 
220,953

 
 
Nominal yield
 
3.41
%
 
4.91
%
 
5.22
%
 
6.16
%
 
5.48
%
 
 
Total fixed maturity securities:
 
 

 
 

 
 

 
 

 
 

 
 
Carrying value
 
$
49,398

 
$
345,343

 
$
85,235

 
$
136,530

 
$
616,506

 
5.82

Fair value
 
49,588

 
347,948

 
88,421

 
150,229

 
636,186

 
 

Nominal yield
 
2.40
%
 
2.02
%
 
4.62
%
 
5.93
%
 
3.28
%
 
 

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Carrying value
 
 

 
 

 
 

 
 

 
$
38,585

 
³

Fair value
 
 

 
 

 
 

 
 

 
40,259

 
 

Nominal yield4
 
 

 
 

 
 

 
 

 
2.74
%
 
 

Total investment securities:
 
 

 
 

 
 

 
 

 
 

 
 

Carrying value
 
 

 
 

 
 

 
 

 
$
655,091

 
 

Fair value
 
 

 
 

 
 

 
 

 
676,445

 
 

Nominal yield
 
 

 
 

 
 

 
 

 
3.25
%
 
 

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):
 
 
September 30, 2014
 
 
Amortized
 
Fair
 
Gross Unrealized1
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,014

 
$
1,015

 
$
1

 
$
—

 
$
—

Municipal and other tax-exempt
 
63,508

 
64,363

 
1,580

 
(725
)
 
—

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
4,117,747

 
4,158,631

 
61,663

 
(20,779
)
 
—

FHLMC
 
1,812,708

 
1,823,393

 
21,886

 
(11,201
)
 
—

GNMA
 
858,003

 
863,055

 
9,240

 
(4,188
)
 
—

Other
 
5,132

 
5,524

 
392

 
—

 
—

Total U.S. government agencies
 
6,793,590

 
6,850,603

 
93,181

 
(36,168
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
68,493

 
73,405

 
4,985

 
—

 
(73
)
Jumbo-A loans
 
92,831

 
98,088

 
5,611

 
—

 
(354
)
Total private issue
 
161,324

 
171,493

 
10,596

 
—

 
(427
)
Total residential mortgage-backed securities
 
6,954,914

 
7,022,096

 
103,777

 
(36,168
)
 
(427
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
2,168,978

 
2,141,645

 
1,841

 
(29,174
)
 
—

Other debt securities
 
34,470

 
34,291

 
71

 
(250
)
 
—

Perpetual preferred stock
 
22,171

 
24,358

 
2,194

 
(7
)
 
—

Equity securities and mutual funds
 
18,896

 
19,118

 
773

 
(551
)
 
—

Total
 
$
9,263,951

 
$
9,306,886

 
$
110,237

 
$
(66,875
)
 
$
(427
)
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.

 
 
September 30, 2013
 
 
Amortized
 
Fair
 
Gross Unrealized1
 
 
 
 
Cost
 
Value
 
Gain
 
Loss
 
OTTI²
U.S. Treasury
 
$
1,052

 
$
1,052

 
$
—

 
$
—

 
$
—

Municipal and other tax-exempt
 
93,897

 
95,440

 
2,792

 
(1,249
)
 
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

FNMA
 
4,513,161

 
4,544,505

 
81,984

 
(50,640
)
 
—

FHLMC
 
2,412,948

 
2,412,116

 
30,673

 
(31,505
)
 
—

GNMA
 
978,361

 
984,065

 
11,054

 
(5,350
)
 
—

Other
 
38,979

 
40,701

 
1,722

 
—

 
—

Total U.S. government agencies
 
7,943,449

 
7,981,387

 
125,433

 
(87,495
)
 
—

Private issue:
 
 

 
 

 
 

 
 

 
 

Alt-A loans
 
109,234

 
109,592

 
2,970

 
—

 
(2,612
)
Jumbo-A loans
 
118,312

 
121,308

 
3,816

 
(138
)
 
(682
)
Total private issue
 
227,546

 
230,900

 
6,786

 
(138
)
 
(3,294
)
Total residential mortgage-backed securities
 
8,170,995

 
8,212,287

 
132,219

 
(87,633
)
 
(3,294
)
Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
1,985,924

 
1,946,295

 
354

 
(39,983
)
 
—

Other debt securities
 
35,091

 
35,362

 
459

 
(188
)
 
—

Perpetual preferred stock
 
22,171

 
23,680

 
1,534

 
(25
)
 
—

Equity securities and mutual funds
 
56,348

 
58,787

 
2,479

 
(40
)
 
—

Total
 
$
10,365,478

 
$
10,372,903

 
$
139,837

 
$
(129,118
)
 
$
(3,294
)
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 September 30, 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
$
1,014

 
$
—

 
$
—

 
$
—

 
$
1,014

 
0.38

Fair value
1,015

 
—

 
—

 
—

 
1,015

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

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
6,690

 
$
30,604

 
$
2,265

 
$
23,949

 
$
63,508

 
8.48

Fair value
6,769

 
31,694

 
2,488

 
23,412

 
64,363

 
 
Nominal yield¹
3.71
%
 
4.06
%
 
6.48
%
 
1.92
%
6 
3.30
%
 
 
Commercial mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
$
—

 
$
737,845

 
$
1,077,326

 
$
353,807

 
$
2,168,978

 
8.75

Fair value
—

 
730,164

 
1,062,449

 
349,032

 
2,141,645

 
 
Nominal yield
—
%
 
1.41
%
 
1.72
%
 
1.32
%
 
1.55
%
 
 
Other debt securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
30,070

 
$
—

 
$
—

 
$
4,400

 
$
34,470

 
4.39

Fair value
30,141

 
—

 
—

 
4,150

 
34,291

 
 
Nominal yield
1.80
%
 
—
%
 
—
%
 
1.71
%
6 
1.79
%
 
 
Total fixed maturity securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
$
37,774

 
$
768,449

 
$
1,079,591

 
$
382,156

 
$
2,267,970

 
8.67

Fair value
37,925

 
761,858

 
1,064,937

 
376,594

 
2,241,314

 
 
Nominal yield
2.09
%
 
1.51
%
 
1.73
%
 
1.37
%
 
1.60
%
 
 
Residential mortgage-backed securities:
 

 
 

 
 

 
 

 
 
 
 
Amortized cost
 

 
 

 
 

 
 

 
$
6,954,914

 
2 

Fair value
 

 
 

 
 

 
 

 
7,022,096

 
 
Nominal yield4
 

 
 

 
 

 
 

 
1.91
%
 
 
Equity securities and mutual funds:
 

 
 

 
 

 
 

 
 

 
 

Amortized cost
 

 
 

 
 

 
 

 
$
41,067

 
³

Fair value
 

 
 

 
 

 
 

 
43,476

 
 

Nominal yield
 

 
 

 
 

 
 

 
1.27
%
 
 

Total available-for-sale securities:
 

 
 

 
 

 
 

 
 
 
 

Amortized cost
 

 
 

 
 

 
 

 
$
9,263,951

 
 

Fair value
 

 
 

 
 

 
 

 
9,306,886

 
 

Nominal yield
 

 
 

 
 

 
 

 
1.83
%
 
 

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
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Proceeds
$
552,871

 
$
355,650

 
$
1,884,061

 
$
2,140,531

Gross realized gains
3,441

 
3,164

 
19,768

 
18,948

Gross realized losses
(3,295
)
 
(2,686
)
 
(18,378
)
 
(9,862
)
Related federal and state income tax expense
57

 
184

 
541

 
3,533
Securities Pledged As Collateral [Table Text Block]
 
September 30,
2014
 
December 31,
2013
 
September 30,
2013
Investment:
 
 
 
 
 
Carrying value
$
66,470

 
$
89,087

 
$
92,442

Fair value
69,031

 
91,804

 
95,658

 
 
 
 
 
 
Available for sale:
 
 
 
 
 
Amortized cost
5,388,372

 
5,171,782

 
5,020,732

Fair value
5,390,599

 
5,133,530

 
5,009,611
Schedule of Unrealized Loss on Investments [Table Text Block]
Temporarily Impaired Securities as of September 30, 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
 
24

 
$
481

 
$
—

 
$
60,742

 
$
209

 
$
61,223

 
$
209

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

 
—

 
—

 
—

 
—

 
—

 
—

Other debt securities
 
83

 
25,373

 
929

 
1,811

 
30

 
27,184

 
959

Total investment
 
107

 
$
25,854

 
$
929

 
$
62,553

 
$
239

 
$
88,407

 
$
1,168


 
 
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
 
19

 
$
—

 
$
—

 
$
12,288

 
$
725

 
$
12,288

 
$
725

Residential mortgage-backed securities:
 
 
 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 
 
 

 
 

 
 

 
 

 


 


FNMA
 
55

 
652,845

 
1,923

 
806,175

 
18,856

 
1,459,020

 
20,779

FHLMC
 
33

 
385,832

 
1,426

 
499,320

 
9,775

 
885,152

 
11,201

GNMA
 
8

 
58,730

 
13

 
144,397

 
4,175

 
203,127

 
4,188

Total U.S. agencies
 
96

 
1,097,407

 
3,362

 
1,449,892

 
32,806

 
2,547,299

 
36,168

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
4

 
12,169

 
73

 
—

 
—

 
12,169

 
73

Jumbo-A loans
 
8

 
3,252

 
106

 
7,587

 
248

 
10,839

 
354

Total private issue
 
12

 
15,421

 
179

 
7,587

 
248

 
23,008

 
427

Total residential mortgage-backed securities
 
108

 
1,112,828

 
3,541

 
1,457,479

 
33,054

 
2,570,307

 
36,595

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
125

 
428,610

 
2,312

 
1,235,200

 
26,862

 
1,663,810

 
29,174

Other debt securities
 
2

 
—

 
—

 
4,150

 
250

 
4,150

 
250

Perpetual preferred stocks
 
1

 
1,018

 
7

 
—

 
—

 
1,018

 
7

Equity securities and mutual   funds
 
81

 
4,869

 
511

 
1,497

 
40

 
6,366

 
551

Total available for sale
 
336

 
$
1,547,325


$
6,371


$
2,710,614


$
60,931


$
4,257,939


$
67,302

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
 
4

 
12,169

 
73

 
—

 
—

 
12,169

 
73

Jumbo-A loans
 
8

 
3,252

 
106

 
7,587

 
248

 
10,839

 
354


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 September 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
 
136

 
$
257,359

 
$
4,292

 
$
803

 
$
4

 
$
258,162

 
$
4,296

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

 
—

 
—

 
—

 
—

 
—

 
—

Other debt securities
 
29

 
1,326

 
59

 
780

 
61

 
2,106

 
120

Total investment
 
165

 
$
258,685

 
$
4,351

 
$
1,583

 
$
65

 
$
260,268

 
$
4,416


 
 
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:
 
 

 
 

 
 

 
 

 
 

 


 


U.S. Treasury
 
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Municipal and other tax-exempt1
 
46

 
$
20,274

 
$
352

 
$
19,575

 
$
897

 
$
39,849

 
$
1,249

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 


 


U. S. agencies:
 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
79

 
2,328,213

 
50,640

 
—

 
—

 
2,328,213

 
50,640

FHLMC
 
46

 
1,402,010

 
31,505

 
—

 
—

 
1,402,010

 
31,505

GNMA
 
23

 
674,512

 
5,350

 
—

 
—

 
674,512

 
5,350

Total U.S. agencies
 
148

 
4,404,735

 
87,495

 
—

 
—

 
4,404,735

 
87,495

Private issue1:
 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
10

 
11,336

 
707

 
48,849

 
1,905

 
60,185

 
2,612

Jumbo-A loans
 
10

 
15,326

 
682

 
11,742

 
138

 
27,068

 
820

Total private issue
 
20

 
26,662

 
1,389

 
60,591

 
2,043

 
87,253

 
3,432

Total residential mortgage-backed securities
 
168

 
4,431,397

 
88,884

 
60,591

 
2,043

 
4,491,988

 
90,927

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
116

 
1,803,008

 
39,983

 
—

 
—

 
1,803,008

 
39,983

Other debt securities
 
3

 
4,712

 
188

 
—

 
—

 
4,712

 
188

Perpetual preferred stocks
 
1

 
4,975

 
25

 
—

 
—

 
4,975

 
25

Equity securities and mutual funds
 
97

 
1,529

 
40

 
—

 
—

 
1,529

 
40

Total available for sale
 
431

 
$
6,265,895

 
$
129,472

 
$
80,166

 
$
2,940

 
$
6,346,061

 
$
132,412

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
 
10

 
$
11,336

 
$
707

 
$
48,849

 
$
1,905

 
$
60,185

 
$
2,612

Jumbo-A loans
 
9

 
15,326

 
682

 
—

 
—

 
15,326

 
682
Investments by Lowest Credit Rating [Table Text Block]
At September 30, 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
 
$
—

 
$
—

 
$
268,636

 
$
269,922

 
$
13,679

 
$
13,865

 
$
—

 
$
—

 
$
128,280

 
$
131,446

 
$
410,595

 
$
415,233

Mortgage-backed securities -- other
 
38,585

 
40,259

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
38,585

 
40,259

Other debt securities
 
—

 
—

 
160,353

 
176,054

 
—

 
—

 
—

 
—

 
45,558

 
44,899

 
205,911

 
220,953

Total investment securities
 
$
38,585

 
$
40,259

 
$
428,989

 
$
445,976

 
$
13,679

 
$
13,865

 
$
—

 
$
—

 
$
173,838

 
$
176,345

 
$
655,091

 
$
676,445

 
 
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
 
$
1,014

 
$
1,015

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,014

 
$
1,015

Municipal and other tax-exempt
 
—

 
—

 
40,532

 
41,834

 
11,520

 
11,007

 
—

 
—

 
11,456

 
11,522

 
63,508

 
64,363

Residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


U. S. government agencies:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


FNMA
 
4,117,747

 
4,158,631

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
4,117,747

 
4,158,631

FHLMC
 
1,812,708

 
1,823,393

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1,812,708

 
1,823,393

GNMA
 
858,003

 
863,055

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
858,003

 
863,055

Other
 
5,132

 
5,524

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5,132

 
5,524

Total U.S. government agencies
 
6,793,590

 
6,850,603

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
6,793,590

 
6,850,603

Private issue:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 


 


Alt-A loans
 
—

 
—

 
—

 
—

 
—

 
—

 
68,493

 
73,405

 
—

 
—

 
68,493

 
73,405

Jumbo-A loans
 
—

 
—

 
—

 
—

 
—

 
—

 
92,831

 
98,088

 
—

 
—

 
92,831

 
98,088

Total private issue
 
—

 
—

 
—

 
—

 
—

 
—

 
161,324

 
171,493

 
—

 
—

 
161,324

 
171,493

Total residential mortgage-backed securities
 
6,793,590

 
6,850,603

 
—

 
—

 
—

 
—

 
161,324

 
171,493

 
—

 
—

 
6,954,914

 
7,022,096

Commercial mortgage-backed securities guaranteed by U.S. government agencies
 
2,168,978

 
2,141,645

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,168,978

 
2,141,645

Other debt securities
 
—

 
—

 
4,400

 
4,150

 
30,070

 
30,141

 
—

 
—

 
—

 
—

 
34,470

 
34,291

Perpetual preferred stock
 
—

 
—

 
—

 
—

 
11,406

 
12,447

 
10,765

 
11,911

 
—

 
—

 
22,171

 
24,358

Equity securities and mutual funds
 
—

 
—

 
4

 
510

 
—

 
—

 
—

 
—

 
18,892

 
18,608

 
18,896

 
19,118

Total available for sale securities
 
$
8,963,582

 
$
8,993,263

 
$
44,936

 
$
46,494

 
$
52,996

 
$
53,595

 
$
172,089

 
$
183,404

 
$
30,348

 
$
30,130

 
$
9,263,951

 
$
9,306,886

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.
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:

 
September 30,
2014
 
December 31,
2013
 
September 30,
2013
 
 
 
 
 
 
Unemployment rate
Moving down to 6.2% over the next 12 months and remains at 6.2% thereafter.
 
Increasing to 7.3% over the next 12 months and remain at 7.3% thereafter.
 
Increasing to 7.5% over the next 12 months and remain at 7.5% 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 FHFA, 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 FHFA, appreciating 5% over the next 12 months, then flat for the 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.
Schedule of Privately Issued Residential Mortgage-backed Securities [Table Text Block]
 
 
 
 
 
 
 
 
Credit Losses Recognized
 
 
 
 
 
 
 
 
Three months ended
 
 
 
 
 
 
 
 
 
 
September 30, 2014
 
Life-to-date
 
 
Number of Securities
 
Amortized Cost
 
Fair Value
 
Number of
Securities
 
Amount
 
Number of Securities
 
Amount
Alt-A
 
14

 
$
68,493

 
$
73,405

 
—

 
$
—

 
14

 
$
36,127

Jumbo-A
 
30

 
92,831

 
98,088

 
—

 
—

 
29

 
18,220

Total
 
44

 
$
161,324

 
$
171,493

 
—

 
$
—

 
43

 
$
54,347
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
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2013
Balance of credit-related OTTI recognized on available for sale debt, beginning of period
 
$
54,347

 
$
76,027

 
$
67,346

 
$
75,228

Additions for credit-related OTTI not previously recognized
 
—

 
67

 
—

 
619

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
 
—

 
73

 
—

 
320

Reductions for change in intent to hold before recovery
 
—

 
(3,589
)
 
—

 
(3,589
)
Sales
 
—

 
(5,232
)
 
(12,999
)
 
(5,232
)
Balance of credit-related OTTI recognized on available for sale debt securities, end of period
 
$
54,347

 
$
67,346

 
$
54,347

 
$
67,346
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):
 
 
September 30, 2014
 
December 31, 2013
 
September 30, 2013
 
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair Value
 
Net Unrealized Gain (Loss)
 
Fair
Value
 
Net Unrealized Gain (Loss)
U.S. agency residential mortgage-backed securities
 
$
175,761

 
$
(2,061
)
 
$
157,431

 
$
(8,378
)
 
$
163,567

 
$
(5,365
)
Other securities
 
—

 
—

 
9,694

 
209

 
4,293

 
1

Total
 
$
175,761

 
$
(2,061
)
 
$
167,125

 
$
(8,169
)
 
$
167,860

 
$
(5,364
)
Schedule of Restricted Equity Securities [Table Text Block]
 
September 30, 2014
 
December 31, 2013
 
September 30, 2013
Federal Reserve stock
$
33,971

 
$
33,742

 
$
33,695

Federal Home Loan Bank stock
155,616

 
51,498

 
91,845

Total
$
189,587

 
$
85,240

 
$
125,540