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AVAILABLE-FOR-SALE INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
AVAILABLE-FOR-SALE INVESTMENT SECURITIES
NOTE 6 — AVAILABLE-FOR-SALE INVESTMENT SECURITIES
 
The following table presents the 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
As of December 31, 2015
 
 

 
 

 
 

 
 

Available-for-sale investment securities:
 
 

 
 

 
 

 
 

U.S. Treasury securities
 
$
1,002,874

 
$
33

 
$
(4,392
)
 
$
998,515

U.S. government agency and U.S. government sponsored enterprise debt securities
 
771,288

 
555

 
(2,994
)
 
768,849

U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 

 
 

 
 

 
 

Commercial mortgage-backed securities
 
354,418

 
268

 
(3,024
)
 
351,662

Residential mortgage-backed securities
 
996,255

 
7,542

 
(6,401
)
 
997,396

Municipal securities
 
173,785

 
2,657

 
(793
)
 
175,649

Other residential mortgage-backed securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
62,133

 
433

 
(173
)
 
62,393

Corporate debt securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
366,921

 
132

 
(2,340
)
 
364,713

Non-investment grade (1)
 
11,491

 
—

 
(1,849
)
 
9,642

Other securities
 
44,664

 
124

 
(381
)
 
44,407

Total available-for-sale investment securities
 
$
3,783,829

 
$
11,744

 
$
(22,347
)
 
$
3,773,226

 
 
 
 
 
 
 
 
 
As of 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
 
41,691

 
393

 
(716
)
 
41,368

Total available-for-sale investment securities
 
$
2,619,307

 
$
21,278

 
$
(13,968
)
 
$
2,626,617

 
 
 
 
 
 
 
 
 
(1)
Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody 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.

Unrealized Losses

The following table presents the Company’s investment portfolio’s gross unrealized losses and related fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
 
($ in thousands)
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
 
Fair
Value
 
Gross Unrealized
Losses
As of December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

Available-for-sale investment securities:
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury securities
 
$
907,400

 
$
(4,250
)
 
$
20,282

 
$
(142
)
 
$
927,682

 
$
(4,392
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
541,385

 
(2,994
)
 
—

 
—

 
541,385

 
(2,994
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial mortgage-backed securities
 
252,340

 
(2,562
)
 
20,793

 
(462
)
 
273,133

 
(3,024
)
Residential mortgage-backed securities
 
535,842

 
(4,530
)
 
58,315

 
(1,871
)
 
594,157

 
(6,401
)
Municipal securities
 
48,495

 
(437
)
 
14,739

 
(356
)
 
63,234

 
(793
)
Other residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Investment grade
 
5,123

 
(1
)
 
6,242

 
(172
)
 
11,365

 
(173
)
Corporate debt securities:
 
 

 
 

 
 

 
 

 
 

 
 

Investment grade
 
218,944

 
(1,189
)
 
89,989

 
(1,151
)
 
308,933

 
(2,340
)
Non-investment grade
 
—

 
—

 
9,642

 
(1,849
)
 
9,642

 
(1,849
)
Other securities
 
17,990

 
(112
)
 
8,731

 
(269
)
 
26,721

 
(381
)
Total available-for-sale investment securities
 
$
2,527,519

 
$
(16,075
)
 
$
228,733

 
$
(6,272
)
 
$
2,756,252

 
$
(22,347
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As of 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
)
 
  
For each reporting period, the Company examines all individual securities that are in an unrealized loss position for OTTI.  For discussion of the factors and criteria the Company uses in analyzing securities for OTTI, see Note 1 — Summary of Significant Accounting Policies— Available-for-Sale Investment Securities to the Consolidated Financial Statements.

Management believes the gross unrealized losses detailed in the tables above are temporary and are not due to reasons of credit quality. As a result, we expect to recover the entire amortized cost basis of these securities.

OTTI

The following table presents a rollforward of the amounts related to the OTTI credit losses recognized in earnings for the years ended December 31:
 
($ in thousands)
 
2015
 
2014
 
2013
Beginning balance
 
$
112,338

 
$
115,511

 
$
115,511

Addition of OTTI previously not recognized
 
—

 
—

 
—

Additional increase to the amount related to the credit
 loss for which an OTTI was previously recognized
 
—

 
—

 
—

Reduction for securities sold
 
(112,338
)
 
(3,173
)
 
—

Ending balance
 
$
—

 
$
112,338

 
$
115,511

 


No OTTI credit losses were recognized for the years ended December 31, 2015, 2014 and 2013. For the year ended December 31, 2015, the Company realized a gain of $21.7 million from the sale of non-investment grade corporate debt securities with previously recognized OTTI credit losses of $112.3 million. For the year ended December 31, 2014, the Company realized a gain of $802 thousand from the sale of non-investment grade corporate debt securities with previously recognized OTTI credit losses of $3.2 million. There was no sale of investment securities with previously recognized OTTI credit losses for the year ended December 31, 2013.

Realized Gains and Losses

The following table presents the proceeds, gross realized gains and gross realized losses related to the sales of available-for-sale investment securities for the years ended December 31:
 
($ in thousands)
 
2015
 
2014
 
2013
Proceeds from sales
 
$
1,669,334

 
$
623,689

 
$
663,569

Gross realized gains
 
$
40,367

 
$
10,978

 
$
13,904

Gross realized losses
 
$
—

 
$
127

(1) 
$
1,815

Related tax expense
 
$
16,954

 
$
4,557

 
$
5,077

 
(1)
The gross realized losses of $127 thousand resulted from available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed.

     Available-for-Sale Investment Securities Maturities
 
The following table presents the scheduled maturities of available-for-sale investment securities as of December 31, 2015:
 
($ in thousands)
 
Amortized
Cost
 
Estimated
Fair Value
Due within one year
 
$
756,656

 
$
752,736

Due after one year through five years
 
1,155,873

 
1,152,752

Due after five years through ten years
 
554,458

 
550,980

Due after ten years
 
1,316,842

 
1,316,758

Total available-for-sale investment securities
 
$
3,783,829

 
$
3,773,226

 

 
Actual maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to prepay obligations. In addition, such factors as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities.

Available-for-sale investment securities with fair values of $873.0 million and $1.96 billion were pledged to secure public deposits, repurchase agreements, the Federal Reserve Bank’s discount window, or for other purposes required or permitted by law as of December 31, 2015 and 2014, respectively.