AVAILABLE-FOR-SALE INVESTMENT SECURITIES (Tables)

3 Months Ended

Mar. 31, 2015

AVAILABLE-FOR-SALE INVESTMENT SECURITIES

Schedule of amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of available-for-sale investment securities

($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2015
Available-for-sale investment securities:
U.S. Treasury securities	$	1,162,801	$	9,586	$	(161)	$	1,172,226
U.S. government agency and U.S. government sponsored enterprise debt securities	411,275		1,143		(452)		411,966
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	94,330		1,242		(337)		95,235
Residential mortgage-backed securities	717,693		11,274		(1,611)		727,356
Municipal securities	187,244		4,800		(798)		191,246
Other residential mortgage-backed securities:
Investment grade (1)	50,297		1,310		(106)		51,501
Corporate debt securities:
Investment grade (1)	141,140		—		(739)		140,401
Non-investment grade (1)	11,524		—		(2,023)		9,501
Other securities	41,543		436		(326)		41,653
Total available-for-sale investment securities	$	2,817,847	$	29,791	$	(6,553)	$	2,841,085
December 31, 2014
Available-for-sale investment securities:
U.S. Treasury securities	$	873,101	$	1,971	$	(1,637)	$	873,435
U.S. government agency and U.S. government sponsored enterprise debt securities	311,927		490		(1,393)		311,024
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	140,957		1,056		(593)		141,420
Residential mortgage-backed securities	785,412		9,754		(4,078)		791,088
Municipal securities	245,408		6,202		(1,162)		250,448
Other residential mortgage-backed securities:
Investment grade (1)	52,694		1,359		(135)		53,918
Other commercial mortgage-backed securities:
Investment grade (1)	34,000		53		—		34,053
Corporate debt securities:
Investment grade (1)	116,236		—		(1,054)		115,182
Non-investment grade (1)	17,881		—		(3,200)		14,681
Other securities	41,589		243		(716)		41,116
Total available-for-sale investment securities	$	2,619,205	$	21,128	$	(13,968)	$	2,626,365

(1)

Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade.

Schedule of sales of available-for-sale investment securities


	Three Months Ended March 31,
($ in thousands)	2015		2014
Proceeds from sales	$	180,501	$	330,231
Gross realized gains	$	4,404	$	3,545
Gross realized losses	$	—	$	127	(1)
Related tax expense	$	1,850	$	1,436

(1)

The gross $127 thousand of losses resulted from the available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed.

Schedule of other than temporary impairment credit losses recognized in earnings


	Three Months Ended March 31,
($ in thousands)	2015		2014
Beginning balance	$	112,338	$	115,511
Addition of OTTI that was not previously recognized	—		—
Additional increases to the amount related to the credit loss for which an OTTI was previously recognized	—		—
Reduction for securities sold	(5,650)		—
Ending balance	$	106,688	$	115,511

Gross unrealized losses and related fair values of available-for-sale investment securities


	Less Than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2015
Available-for-sale investment securities:
U.S. Treasury securities	$	61,684	$	(37)	$	50,860	$	(124)	$	112,544	$	(161)
U.S. government agency and U.S. government sponsored enterprise debt securities	144,114		(383)		24,927		(69)		169,041		(452)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	14,119		(141)		13,541		(196)		27,660		(337)
Residential mortgage-backed securities	40,969		(97)		103,488		(1,514)		144,457		(1,611)
Municipal securities	26,905		(335)		15,783		(463)		42,688		(798)
Other residential mortgage-backed securities:
Investment grade	—		—		6,985		(106)		6,985		(106)
Corporate debt securities:
Investment grade	—		—		90,401		(739)		90,401		(739)
Non-investment grade	—		—		9,501		(2,023)		9,501		(2,023)
Other securities	8,674		(326)		—		—		8,674		(326)
Total available-for-sale investment securities	$	296,465	$	(1,319)	$	315,486	$	(5,234)	$	611,951	$	(6,553)





	Less Than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2014
Available-for-sale investment securities:
U.S. Treasury securities	$	170,260	$	(266)	$	163,800	$	(1,371)	$	334,060	$	(1,637)
U.S. government agency and U.S. government sponsored enterprise debt securities	69,438		(504)		124,104		(889)		193,542		(1,393)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	45,405		(257)		16,169		(336)		61,574		(593)
Residential mortgage-backed securities	81,927		(270)		241,047		(3,808)		322,974		(4,078)
Municipal securities	6,391		(26)		61,107		(1,136)		67,498		(1,162)
Other residential mortgage-backed securities:
Investment grade	—		—		7,217		(135)		7,217		(135)
Corporate debt securities:
Investment grade	25,084		(12)		90,098		(1,042)		115,182		(1,054)
Non-investment grade	—		—		14,681		(3,200)		14,681		(3,200)
Other securities	15,885		(716)		—		—		15,885		(716)
Total available-for-sale investment securities	$	414,390	$	(2,051)	$	718,223	$	(11,917)	$	1,132,613	$	(13,968)

Scheduled maturities of available-for-sale investment securities

The following table presents the scheduled maturities of available-for-sale investment securities as of March 31, 2015:


($ in thousands)	Amortized Cost		Fair Value
Due within one year	$	435,764	$	434,493
Due after one year through five years	1,275,954		1,289,312
Due after five years through ten years	311,367		311,157
Due after ten years	794,762		806,123
Total available-for-sale investment securities	$	2,817,847	$	2,841,085

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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