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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Carrying Amounts and Fair Values of Investment Securities
arrying amounts and fair values of investment securities at December 31, 2014 and 2013 are summarized as follows: 
 
 
December 31, 2014
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
 
(in thousands)
Available-for-sale
 
 
 
 
 
 
 
 
U.S. government sponsored agency securities
 
$
18,701

 
$
—

 
$
(355
)
 
$
18,346

Corporate debt securities
 
52,773

 
717

 
(1,001
)
 
52,489

Municipal obligations
 
285,398

 
13,688

 
(49
)
 
299,037

Preferred stock
 
83,192

 
2,099

 
(2,679
)
 
82,612

Mutual funds
 
37,449

 
500

 
(247
)
 
37,702

Residential MBS issued by GSEs
 
881,734

 
11,440

 
(1,985
)
 
891,189

Commercial MBS issued by GSEs
 
2,047

 
100

 
—

 
2,147

Private label residential MBS
 
70,985

 
379

 
(1,121
)
 
70,243

Private label commercial MBS
 
5,017

 
132

 
—

 
5,149

Trust preferred securities
 
32,000

 
—

 
(6,454
)
 
25,546

CRA investments
 
24,302

 
30

 
—

 
24,332

Collateralized debt obligations
 
50

 
11,395

 
—

 
11,445

Total AFS securities
 
$
1,493,648

 
$
40,480

 
$
(13,891
)
 
$
1,520,237

 
 
 
 
 
 
 
 
 
Securities measured at fair value
 
 
 
 
 
 
 
 
Residential MBS issued by GSEs
 

 

 

 
$
1,858


In May 2014, the Company's Finance and Investment Committee reassessed the Company's holdings in CDOs, and gave management the discretion to sell CDOs to reinvest in higher grade investment securities. This change in intent, prior to maturity or recovery, necessitated a reclassification of all HTM securities to AFS. At the date of transfer, the securities had a total amortized cost of $275.3 million and fair value of $289.6 million. The Company recognized an unrealized gain of $9.0 million, net of tax, in AOCI at the date of the transfer.
 
 
December 31, 2013
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
 
(in thousands)
Held-to-maturity
 
 
 
 
 
 
 
 
Collateralized debt obligations
 
$
50

 
$
1,346

 
$
—

 
$
1,396

Corporate debt securities
 
97,777

 
775

 
(3,826
)
 
94,726

Municipal obligations
 
183,579

 
2,773

 
(2,370
)
 
183,982

CRA investments
 
1,600

 
—

 
—

 
1,600

Total HTM securities
 
$
283,006

 
$
4,894

 
$
(6,196
)
 
$
281,704

 
 
 
 
 
 
 
 
 
Available-for-sale
 
 
 
 
 
 
 
 
U.S. government-sponsored agency securities
 
$
49,110

 
$
—

 
$
(2,135
)
 
$
46,975

Municipal obligations
 
121,671

 
316

 
(6,322
)
 
115,665

Preferred stock
 
68,110

 
853

 
(7,479
)
 
61,484

Mutual funds
 
37,423

 
93

 
(984
)
 
36,532

Residential MBS issued by GSEs
 
1,028,402

 
5,567

 
(12,548
)
 
1,021,421

Private label residential MBS
 
38,250

 
—

 
(2,151
)
 
36,099

Private label commercial MBS
 
5,252

 
181

 
—

 
5,433

Trust preferred securities
 
32,000

 
—

 
(8,195
)
 
23,805

CRA investments
 
23,830

 
—

 
(548
)
 
23,282

Total AFS securities
 
$
1,404,048

 
$
7,010

 
$
(40,362
)
 
$
1,370,696

 
 
 
 
 
 
 
 
 
Securities measured at fair value
 
 
 
 
 
 
 
 
Residential MBS issued by GSEs
 
 
 
 
 
 
 
$
3,036
Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position
Information pertaining to securities with gross unrealized losses at December 31, 2014 and 2013, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 
 
December 31, 2014
 
Less Than Twelve Months
 
More Than Twelve Months
 
Total
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
(in thousands)
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored agency securities
$
—

 
$
—

 
$
355

 
$
18,346

 
$
355

 
$
18,346

Corporate debt securities
139

 
9,860

 
862

 
29,139

 
1,001

 
38,999

Preferred stock
232

 
13,811

 
2,447

 
28,109

 
2,679

 
41,920

Mutual funds
247

 
25,855

 
—

 
—

 
247

 
25,855

Residential MBS issued by GSEs
227

 
49,217

 
1,758

 
97,296

 
1,985

 
146,513

Municipal obligations
—

 
—

 
49

 
4,430

 
49

 
4,430

Private label residential MBS
157

 
24,056

 
964

 
26,614

 
1,121

 
50,670

Trust preferred securities
—

 
—

 
6,454

 
25,546

 
6,454

 
25,546

Total AFS securities
$
1,002

 
$
122,799

 
$
12,889

 
$
229,480

 
$
13,891

 
$
352,279

 
December 31, 2013
 
Less Than Twelve Months
 
More Than Twelve Months
 
Total
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
(in thousands)
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. government sponsored agency securities
$
2,135

 
$
46,975

 
$
—

 
$
—

 
$
2,135

 
$
46,975

Preferred stock
7,479

 
44,637

 
—

 
—

 
7,479

 
44,637

Mutual funds
984

 
30,101

 
—

 
—

 
984

 
30,101

Residential MBS issued by GSEs
11,934

 
601,757

 
614

 
8,984

 
12,548

 
610,741

Municipal obligations
3,545

 
72,301

 
2,777

 
17,923

 
6,322

 
90,224

Private label residential MBS
2,009

 
32,516

 
142

 
3,583

 
2,151

 
36,099

Trust preferred securities
—

 
—

 
8,195

 
23,807

 
8,195

 
23,807

CRA investments
548

 
23,823

 
—

 
—

 
548

 
23,823

Total AFS securities
$
28,634

 
$
852,110

 
$
11,728

 
$
54,297

 
$
40,362

 
$
906,407

 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
Corporate debt securities
$
163

 
$
9,837

 
$
3,663

 
$
71,337

 
$
3,826

 
$
81,174

Municipal obligations
1,624

 
50,740

 
746

 
5,102

 
2,370

 
55,842

Total HTM securities
$
1,787

 
$
60,577

 
$
4,409

 
$
76,439

 
$
6,196

 
$
137,016
Amortized Cost and Fair Value of Investment Securities by Contractual Maturities
The amortized cost and fair value of securities as of December 31, 2014, by contractual maturities, are shown below. The actual maturities of the MBS may differ from their contractual maturities because the loans underlying the securities may be repaid without any penalties due to borrowers that have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, these securities are listed separately in the maturity summary. 
 
 
December 31, 2014
 
 
Amortized Cost
 
Estimated Fair Value
 
 
(in thousands)
Available-for-sale
 
 
 
 
Due in one year or less
 
$
70,846

 
$
71,245

After one year through five years
 
49,195

 
51,266

After five years through ten years
 
150,079

 
153,067

After ten years
 
263,745

 
275,931

Mortgage-backed securities
 
959,783

 
968,728

Total AFS securities
 
$
1,493,648

 
$
1,520,237
Investment Securities by Credit Rating Type
The following tables summarize the carrying amount of the Company’s investment ratings position as December 31, 2014 and 2013: 
 
 
December 31, 2014
 
 
AAA
 
Split-rated AAA/AA+
 
AA+ to AA-
 
A+ to A-
 
BBB+ to BBB-
 
BB+ and below
 
Unrated
 
Totals
 
 
(in thousands)
Available-for-sale
 


 

 


 


 


 


 

 

Municipal obligations
 
$
8,168

 
$
—

 
$
138,256

 
$
146,155

 
$
6,263

 
$
195

 
$
—

 
$
299,037

Residential MBS issued by GSEs
 
—

 
891,189

 
—

 
—

 
—

 
—

 
—

 
891,189

Commercial MBS issued by GSEs
 
—

 
2,147

 
—

 
—

 
—

 
—

 
—

 
2,147

Private label residential MBS
 
59,944

 
—

 
68

 
3,439

 
3,595

 
3,197

 
—

 
70,243

Private label commercial MBS
 
5,149

 
—

 
—

 
—

 
—

 
—

 
—

 
5,149

Mutual funds (2)
 
—

 
—

 
—

 
—

 
37,702

 
—

 
—

 
37,702

U.S. government sponsored agency securities
 
—

 
18,346

 
—

 
—

 
—

 
—

 
—

 
18,346

Preferred stock
 
—

 
—

 
—

 
—

 
54,585

 
17,632

 
10,395

 
82,612

Trust preferred securities
 
—

 
—

 
—

 
—

 
25,546

 
—

 
—

 
25,546

Collateralized debt obligations
 
—

 
—

 
—

 
—

 
—

 
11,445

 
—

 
11,445

Corporate debt securities
 
—

 
—

 
2,759

 
5,570

 
44,160

 
—

 
—

 
52,489

CRA investments
 
—

 
—

 
—

 
—

 
—

 
—

 
24,332

 
24,332

Total AFS securities (1)
 
$
73,261

 
$
911,682

 
$
141,083

 
$
155,164

 
$
171,851

 
$
32,469

 
$
34,727

 
$
1,520,237

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential MBS issued by GSEs
 
$
—

 
$
1,858

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,858

(1)
The Company uses the average credit rating of the combination of S&P, Moody’s, and Fitch, where ratings differ.
(2)
At least 80% of mutual funds are investment grade corporate debt securities.


 
 
December 31, 2013
 
 
AAA
 
Split-rated AAA/AA+
 
AA+ to AA-
 
A+ to A-
 
BBB+ to BBB-
 
BB+ and below
 
Unrated
 
Totals
 
 
(in thousands)
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal obligations
 
$
—

 
$
—

 
$
58,061

 
$
57,389

 
$
—

 
$
215

 
$
—

 
$
115,665

Residential MBS issued by GSEs
 
—

 
1,021,421

 
—

 
—

 
—

 
—

 
—

 
1,021,421

Private label residential MBS
 
23,646

 
—

 
125

 
4,101

 
4,625

 
3,602

 
—

 
36,099

Private label commercial MBS
 
5,433

 
—

 
—

 
—

 
—

 
—

 
—

 
5,433

Mutual funds (2)
 
—

 
—

 
—

 
—

 
36,532

 
—

 
—

 
36,532

U.S. government sponsored agency securities
 
—

 
46,975

 
—

 
—

 
—

 
—

 
—

 
46,975

Preferred stock
 
—

 
—

 
—

 
—

 
45,847

 
13,244

 
2,393

 
61,484

Trust preferred securities
 
—

 
—

 
—

 
—

 
23,805

 
—

 
—

 
23,805

CRA investments
 
—

 
—

 
—

 
—

 
—

 
—

 
23,282

 
23,282

Total AFS securities (1)
 
$
29,079

 
$
1,068,396

 
$
58,186

 
$
61,490

 
$
110,809

 
$
17,061

 
$
25,675

 
$
1,370,696

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities measured at fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential MBS issued by GSEs
 
$
—

 
$
3,036

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
3,036

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal obligations
 
$
7,965

 
$
—

 
$
71,749

 
$
96,560

 
$
7,305

 
$
—

 
$
—

 
$
183,579

Collateralized debt obligations
 
—

 
—

 
—

 
—

 
—

 
50

 
—

 
50

Corporate debt securities
 
—

 
—

 
2,697

 
35,102

 
59,978

 
—

 
—

 
97,777

CRA investments
 
—

 
—

 
—

 
—

 
—

 
—

 
1,600

 
1,600

Total HTM securities
 
$
7,965

 
$
—

 
$
74,446

 
$
131,662

 
$
67,283

 
$
50

 
$
1,600

 
$
283,006



(1)
The Company uses the average credit rating of the combination of S&P, Moody’s, and Fitch, where ratings differ.
(2)
At least 80% of mutual funds are investment grade corporate debt securities.
Gross Gains and (Losses) on Sales of Investment Securities
The following table presents gross gains and losses on sales of investment securities: 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
(in thousands)
Gross gains
 
$
1,118

 
$
1,569

 
$
4,270

Gross losses
 
(361
)
 
(2,764
)
 
(321
)
Net gains (losses) on sales of investment securities
 
$
757

 
$
(1,195
)
 
$
3,949