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Debt and Equity Securities
 3 Months Ended
Mar. 31, 2015
Investments Debt And Equity Securities [Abstract]  
Debt and Equity Securities

Note 3 – Debt and Equity Securities

The amortized cost and estimated fair value of investments in debt securities, all of which are classified as available-for-sale, are as follows:

(in thousands)

 

Amortized
cost

 

 

Gross unrealized

 

 

Estimated
fair value

 

 

Gains

 

 

Losses

 

March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

$

95,821

 

 

$

1,374

 

 

$

(136

)

 

$

97,059

 

 

Municipal bonds

 

612,181

 

 

 

12,954

 

 

 

(729

)

 

 

624,406

 

 

Foreign bonds

 

177,420

 

 

 

3,609

 

 

 

(8

)

 

 

181,021

 

 

Governmental agency bonds

 

358,378

 

 

 

1,984

 

 

 

(525

)

 

 

359,837

 

 

Governmental agency mortgage-backed securities

 

2,038,262

 

 

 

13,587

 

 

 

(5,218

)

 

 

2,046,631

 

 

Corporate debt securities

 

716,953

 

 

 

15,666

 

 

 

(1,757

)

 

 

730,862

 

 

 

$

3,999,015

 

 

$

49,174

 

 

$

(8,373

)

 

$

4,039,816

 

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury bonds

$

64,195

 

 

$

968

 

 

$

(181

)

 

$

64,982

 

 

Municipal bonds

 

577,703

 

 

 

10,981

 

 

 

(1,007

)

 

 

587,677

 

 

Foreign bonds

 

194,749

 

 

 

2,009

 

 

 

(8

)

 

 

196,750

 

 

Governmental agency bonds

 

198,330

 

 

 

1,562

 

 

 

(2,018

)

 

 

197,874

 

 

Governmental agency mortgage-backed securities

 

1,812,766

 

 

 

8,491

 

 

 

(9,095

)

 

 

1,812,162

 

 

Non-agency mortgage-backed securities

 

15,949

 

 

 

1,306

 

 

 

(717

)

 

 

16,538

 

 

Corporate debt securities

 

568,774

 

 

 

8,759

 

 

 

(3,264

)

 

 

574,269

 

 

 

$

3,432,466

 

 

$

34,076

 

 

$

(16,290

)

 

$

3,450,252

 

 

 

The cost and estimated fair value of investments in equity securities, all of which are classified as available-for-sale, are as follows:

 

Cost

 

 

Gross unrealized

 

 

Estimated
fair value

 

(in thousands)

 

 

 

Gains

 

 

Losses

 

 

 

March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stocks

$

17,742

 

 

$

640

 

 

$

(354

)

 

$

18,028

 

Common stocks

 

251,984

 

 

 

18,615

 

 

 

(2,298

)

 

 

268,301

 

 

$

269,726

 

 

$

19,255

 

 

$

(2,652

)

 

$

286,329

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stocks

$

14,976

 

 

$

596

 

 

$

(47

)

 

$

15,525

 

Common stocks

 

378,938

 

 

 

16,680

 

 

 

(8,731

)

 

 

386,887

 

 

$

393,914

 

 

$

17,276

 

 

$

(8,778

)

 

$

402,412

 

  

Sales of debt and equity securities resulted in realized gains of $3.6 million and $6.6 million and realized losses of $6.2 million and $3.8 million for the three months ended March 31, 2015 and 2014, respectively.

The Company had the following gross unrealized losses as of March 31, 2015 and December 31, 2014:

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

(in thousands)

 

Estimated
fair value

 

  

Unrealized
losses

 

 

Estimated
fair value

 

  

Unrealized
losses

 

 

Estimated
fair value

 

  

Unrealized
losses

 

March 31, 2015

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Debt securities:

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

U.S. Treasury bonds

$

34,449

  

  

$

(109

) 

 

$

11,015

  

  

$

(27

)

 

$

45,464

  

  

$

(136

) 

Municipal bonds

 

107,182

  

  

 

(591

) 

 

 

13,096

  

  

 

(138

) 

 

 

120,278

  

  

 

(729

) 

Foreign bonds

 

3,146

  

  

 

(8

) 

 

 

—

  

  

 

—

 

 

 

3,146

  

  

 

(8

) 

Governmental agency bonds

 

140,760

  

  

 

(258

) 

 

 

44,933

  

  

 

(267

) 

 

 

185,693

  

  

 

(525

) 

Governmental agency mortgage-backed securities

 

497,847

  

  

 

(1,573

) 

 

 

170,779

  

  

 

(3,645

) 

 

 

668,626

  

  

 

(5,218

) 

Corporate debt securities

 

102,134

  

  

 

(1,753

) 

 

 

2,498

  

  

 

(4

) 

 

 

104,632

  

  

 

(1,757

) 

Total debt securities

 

885,518

  

  

 

(4,292

) 

 

 

242,321

  

  

 

(4,081

) 

 

 

1,127,839

  

  

 

(8,373

) 

Equity securities

 

90,625

  

  

 

(2,369

) 

 

 

2,527

  

  

 

(283

) 

 

 

93,152

  

  

 

(2,652

) 

Total

$

976,143

  

  

$

(6,661

) 

 

$

244,848

  

  

$

(4,364

) 

 

$

1,220,991

  

  

$

(11,025

) 

December 31, 2014

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

Debt securities:

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

  

 

 

 

U.S. Treasury bonds

$

8,122

 

 

$

(27

)

 

$

15,124

 

 

$

(154

)

 

$

23,246

 

 

$

(181

)

Municipal bonds

 

137,755

 

 

 

(689

)

 

 

19,625

 

 

 

(318

)

 

 

157,380

 

 

 

(1,007

)

Foreign bonds

 

6,215

 

 

 

(8

)

 

 

—

 

 

 

—

 

 

 

6,215

 

 

 

(8

)

Governmental agency bonds

 

27,479

 

 

 

(88

)

 

 

127,936

 

 

 

(1,930

)

 

 

155,415

 

 

 

(2,018

)

Governmental agency mortgage-backed securities

 

383,717

 

 

 

(1,612

)

 

 

300,918

 

 

 

(7,483

)

 

 

684,635

 

 

 

(9,095

)

Non-agency mortgage-backed securities

 

—

 

 

 

—

 

 

 

5,611

 

 

 

(717

)

 

 

5,611

 

 

 

(717

)

Corporate debt securities

 

198,079

 

 

 

(3,151

)

 

 

9,683

 

 

 

(113

)

 

 

207,762

 

 

 

(3,264

)

Total debt securities

 

761,367

 

 

 

(5,575

)

 

 

478,897

 

 

 

(10,715

)

 

 

1,240,264

 

 

 

(16,290

)

Equity securities

 

208,922

 

 

 

(8,587

)

 

 

2,340

 

 

 

(191

)

 

 

211,262

 

 

 

(8,778

)

Total

$

970,289

 

 

$

(14,162

)

 

$

481,237

 

 

$

(10,906

)

 

$

1,451,526

 

 

$

(25,068

)

 

The amortized cost and estimated fair value of debt securities at March 31, 2015, by contractual maturities, are as follows:

(in thousands)

 

Due in one
year or less

 

  

Due after
one through
five years

 

  

Due after
five through
ten years

 

  

Due after
ten years

 

  

Total

 

U.S. Treasury bonds

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

$

3,901

  

  

$

66,751

  

  

$

6,329

  

  

$

18,840

  

  

$

95,821

  

Estimated fair value

$

3,954

  

  

$

67,065

  

  

$

6,521

  

  

$

19,519

  

  

$

97,059

  

Municipal bonds

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

$

36,197

  

  

$

261,299

  

  

$

203,947

  

  

$

110,738

  

  

$

612,181

  

Estimated fair value

$

36,394

  

  

$

264,118

  

  

$

209,590

  

  

$

114,304

  

  

$

624,406

  

Foreign bonds

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

$

45,043

  

  

$

122,711

  

  

$

6,566

  

  

$

3,100

  

  

$

177,420

  

Estimated fair value

$

45,238

  

  

$

125,680

  

  

$

6,812

  

  

$

3,291

  

  

$

181,021

  

Governmental agency bonds

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

$

12,368

  

  

$

264,168

  

  

$

59,953

  

  

$

21,889

  

  

$

358,378

  

Estimated fair value

$

12,382

  

  

$

264,117

  

  

$

60,525

  

  

$

22,813

  

  

$

359,837

  

Corporate debt securities

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

$

20,797

  

  

$

272,892

  

  

$

364,116

  

  

$

59,148

  

  

$

716,953

  

Estimated fair value

$

20,999

  

  

$

277,919

  

  

$

370,011

  

  

$

61,933

  

  

$

730,862

  

Total debt securities excluding mortgage-backed securities

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

$

118,306

  

  

$

987,821

  

  

$

640,911

  

  

$

213,715

  

  

$

1,960,753

  

Estimated fair value

$

118,967

  

  

$

998,899

  

  

$

653,459

  

  

$

221,860

  

  

$

1,993,185

  

Total mortgage-backed securities

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

$

2,038,262

  

Estimated fair value

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

$

2,046,631

  

Total debt securities

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Amortized cost

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

$

3,999,015

  

Estimated fair value

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

$

4,039,816

  

 

Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.