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Securities
 12 Months Ended
Dec. 31, 2013
Securities  
Securities

Note 5. Securities

        At December 31, 2013, the Company had total securities of $9.28 billion, comprised of securities available-for-sale at fair value of $6.24 billion, securities held-to-maturity at amortized cost of $2.96 billion and trading securities at fair value of $82.4 million. The Company had total securities of $10.72 billion at December 31, 2012, comprised of securities available-for-sale at fair value of $9.21 billion, security held-to-maturity at amortized cost of $1.40 billion and trading securities at fair value of $115.1 million.

        The increase in the held-to-maturity portfolio at December 31, 2013 compared to 2012 was primarily attributable to the transfer of $994.3 million of debt securities from the available-for-sale category to the held-to-maturity category during the fourth quarter of 2013. These securities had a total net unrealized loss of $6 thousand in AOCI on the date of transfer. The transfer was made as part of a change in the Company's strategy to mitigate the potential volatility of higher interest rates on market values in the available-for-sale securities portfolio. The transfer included selected agency mortgage securities, agency CMO securities, municipal securities and corporate debt securities. The transfer of securities was accounted for at fair value on the date of transfer. The unrealized holding gains and losses on the date of transfer are reported as a separate component of AOCI and will be amortized or accreted into interest income over the remaining life of the securities transferred.

        The following is a summary of amortized cost and estimated fair value for the major categories of securities available-for-sale and securities held-to-maturity at December 31, 2013 and 2012:

(in thousands)
  Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Fair Value  

December 31, 2013

                          

Securities available-for-sale:

                          

U.S. Treasury

   $ 35,312   $ 23   $ —   $ 35,335  

Federal agency—Debt

     1,417,509     938     (7,911 )   1,410,536  

Federal agency—MBS

     156,399     3,615     (2,788 )   157,226  

CMOs—Federal agency

     4,037,348     30,721     (70,771 )   3,997,298  

CMOs—Non-agency

     38,383     127     (1,048 )   37,462  

State and municipal

     407,312     8,806     (123 )   415,995  

Other debt securities

     175,091     3,731     —     178,822  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total debt securities

     6,267,354     47,961     (82,641 )   6,232,674  

Equity securities and mutual funds

     337     8,106     —     8,443  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities available-for-sale

   $ 6,267,691   $ 56,067   $ (82,641 ) $ 6,241,117  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Securities held-to-maturity (1):

                          

Federal agency—Debt

   $ 178,413   $ 133   $ (5,122 ) $ 173,424  

Federal agency—MBS

     445,360     1,005     (11,930 )   434,435  

CMOs—Federal agency

     1,781,219     1,839     (40,621 )   1,742,437  

State and municipal

     454,155     421     (19,014 )   435,562  

Other debt securities

     98,696     —     (619 )   98,077  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities held-to-maturity

   $ 2,957,843   $ 3,398   $ (77,306 ) $ 2,883,935  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

December 31, 2012

                          

Securities available-for-sale:

                          

U.S. Treasury

   $ 20,393   $ 7   $ (3 ) $ 20,397  

Federal agency—Debt

     2,344,374     5,031     (203 )   2,349,202  

Federal agency—MBS

     653,428     39,673     (69 )   693,032  

CMOs—Federal agency

     5,233,126     91,165     (6,038 )   5,318,253  

CMOs—Non-agency

     62,975     662     (2,124 )   61,513  

State and municipal

     437,266     17,447     (239 )   454,474  

Other debt securities

     305,340     7,945     (5,868 )   307,417  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total debt securities

     9,056,902     161,930     (14,544 )   9,204,288  

Equity securities and mutual funds

     336     1,365     —     1,701  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities available-for-sale

   $ 9,057,238   $ 163,295   $ (14,544 ) $ 9,205,989  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Securities held-to-maturity (1):

                          

Federal agency—Debt

   $ 97,183   $ 4,032   $ —   $ 101,215  

Federal agency—MBS

     303,642     11,490     (182 )   314,950  

CMOs—Federal agency

     745,980     28,973     (382 )   774,571  

State and municipal

     251,598     5,122     (857 )   255,863  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities held-to-maturity

   $ 1,398,403   $ 49,617   $ (1,421 ) $ 1,446,599  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Securities held-to-maturity are presented in the consolidated balance sheets at amortized cost.

        Proceeds from sales of securities available-for-sale were $2.37 billion, $52.1 million and $101.1 million in 2013, 2012 and 2011, respectively. There were no sales of securities held-to-maturity in 2013 and 2012. The following table provides the gross realized gains and losses on the sales and calls of securities (including trading securities):

 
   For the year ended December 31,  
(in thousands)
  2013   2012   2011  

Gross realized gains

   $ 27,396   $ 2,259   $ 6,747  

Gross realized losses

     (19,421 )   (1,146 )   (1,681 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net realized gains

   $ 7,975   $ 1,113   $ 5,066  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        Interest income on securities is comprised of: (i) taxable interest income of $149.5 million, $160.0 million and $146.1 million for the years ended December 31, 2013, 2012 and 2011, respectively, (ii) nontaxable interest income of $18.1 million, $16.3 million and $12.4 million for the years ended December 31, 2013, 2012 and 2011, respectively, and (iii) dividend income of $0.2 million, $0.3 million and $0.8 million for the years ended December 31, 2013, 2012 and 2011, respectively.

        The following table provides the expected remaining maturities of debt securities included in the securities portfolio at December 31, 2013, except for mortgage-backed securities which are allocated according to the average life of expected cash flows. Average expected maturities will differ from contractual maturities because of the amortizing nature of the loan collateral and prepayment behavior of borrowers.

(in thousands)
  One year
or less		   Over 1 year
through
5 years		   Over 5 years
through
10 years		   Over
10 years		   Total  

Securities available-for-sale:

                                

U.S. Treasury

   $ 12,041   $ 23,294   $ —   $ —   $ 35,335  

Federal agency—Debt

     479,705     872,099     58,732     —     1,410,536  

Federal agency—MBS

     54     95,718     61,454     —     157,226  

CMOs—Federal agency

     111,773     3,452,663     432,862     —     3,997,298  

CMOs—Non-agency

     —     32,182     5,280     —     37,462  

State and municipal

     63,046     349,613     —     3,336     415,995  

Other

     —     178,822     —     —     178,822  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total debt securities available-for-sale

   $ 666,619   $ 5,004,391   $ 558,328   $ 3,336   $ 6,232,674  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Amortized cost

   $ 664,211   $ 5,023,953   $ 575,790   $ 3,400   $ 6,267,354  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Securities held-to-maturity:

                                

Federal agency—Debt

   $ —   $ —   $ 58,639   $ 119,774   $ 178,413  

Federal agency—MBS

     44     30,001     403,869     11,446     445,360  

CMOs—Federal agency

     —     640,808     1,140,411     —     1,781,219  

State and municipal

     —     12,860     194,220     247,075     454,155  

Other

     —     98,696     —     —     98,696  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total debt securities held-to-maturity at amortized cost

   $ 44   $ 782,365   $ 1,797,139   $ 378,295   $ 2,957,843  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        Securities totaling $1.18 billion were pledged to secure trust funds, public deposits, or for other purposes required or permitted by law at December 31, 2013. Included in this total are $12.4 million of securities pledged as collateral that the secured party has the right by contract or custom to sell or repledge the collateral.

Impairment Assessment

        The Company performs a quarterly assessment of the debt and equity securities in its investment portfolio to determine whether a decline in fair value below amortized cost is other-than-temporary. The Company's impairment assessment takes into consideration the following factors as applicable to the individual security being analyzed: the length of time and the extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer, including events specific to the issuer or industry; defaults or deferrals of scheduled interest, principal or dividend payments; external credit ratings and recent downgrades; and the Company's intent and overall ability to hold the security until its value recovers. If a decline in fair value is determined to be other-than-temporary, the cost basis of the individual security is written down to fair value which then becomes the security's new cost basis. The new cost basis is not adjusted for subsequent recoveries in fair value.

        Other-than-temporary impairment losses on equity securities are recognized in earnings. For debt securities, if the Company intends to sell an impaired security or it is more likely than not it will be required to sell a security prior to recovery of its amortized cost, an impairment loss is recognized in earnings for the entire difference between the amortized cost and fair value of the security on the measurement date. If the Company does not intend to sell the security or it is not more likely than not it will be required to sell the security prior to recovery of its amortized cost, the credit loss component of impairment is recognized in earnings. Impairment associated with factors other than credit, such as market liquidity, is recognized in other comprehensive income, net of tax.

        Refer to Note 1, Summary of Significant Accounting Policies, for additional discussion of the Company's accounting policy related to securities impairment.

Securities Deemed to be Other-Than-Temporarily Impaired

        The Company recorded impairment losses in earnings on securities available-for-sale of $0.3 million, $0.3 million and $0.7 million for 2013, 2012 and 2011, respectively. There was no non-credit-related other-than-temporary impairment recognized in AOCI on securities available-for-sale at December 31, 2013. The Company recognized $1.0 million and $4.2 million of non-credit-related other-than-temporary impairment in AOCI on securities available-for-sale at December 31, 2012 and 2011, respectively. All other-than-temporary impairment losses in 2013, 2012 and 2011 related to non-agency CMOs. No impairment losses were recognized in earnings or AOCI for securities held-to-maturity in 2013 and 2012.

        The following table summarizes the changes in cumulative credit-related other-than-temporary impairment recognized in earnings for debt securities for the years ended December 31, 2013 and 2012. Credit-related other-than-temporary impairment that was recognized in earnings is reflected as an "Initial credit-related impairment" if the period reported is the first time the security had credit impairment. A credit-related other-than-temporary impairment is reflected as a "Subsequent credit-related impairment" if the period reported is not the first time the security had credit impairment. Cumulative impairment is reduced for securities with previously recognized credit-related impairment that were sold or redeemed during the period. Cumulative impairment is further adjusted for other changes in expected cash flows.

 
   For the year ended
December 31,		  
(in thousands)
  2013   2012  

Balance, beginning of period

   $ 16,486   $ 17,531  

Subsequent credit-related impairment

     326     291  

Reduction for securities sold or redeemed

     (12,263 )   (537 )

Reduction for increase in expected cash flows on securities for which OTTI was previously recognized

     —     (799 )
           
​ ​ ​ ​ ​ ​ ​ ​

Balance, end of period

   $ 4,549   $ 16,486  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Non-agency CMOs

        The Company held $28.7 million of variable rate non-agency CMOs at December 31, 2013. The Company determined that none of these non-agency CMOs were other-than-temporarily impaired at December 31, 2013. These CMOs have a fixed interest rate for an initial period after which they become variable-rate instruments with annual rate resets. For purposes of projecting future cash flows, the current fixed coupon was used through the reset date for each security. The prevailing LIBOR/Treasury forward curve as of the measurement date was used to project all future floating-rate cash flows based on the characteristics of each security. Other factors considered in the projection of future cash flows include the current level of subordination from other CMO classes, anticipated prepayment rates, cumulative defaults and loss given default. The Company recognized credit-related impairment losses in earnings on its investments in certain variable rate non-agency CMOs totaling $0.3 million, $0.3 million and $0.7 million in 2013, 2012 and 2011, respectively. No other-than-temporary impairment was recognized in AOCI on the impaired CMO security at December 31, 2013. The Company also holds $8.8 million in fixed rate non-agency CMOs, none of which have experienced any other-than-temporary impairment.

        The following table provides a summary of the gross unrealized losses and fair value of investment securities that are not deemed to be other-than-temporarily impaired aggregated by investment category and length of time that the securities have been in a continuous unrealized loss position as of December 31, 2013 and 2012. The table also includes any investment securities that had both a credit-related impairment recognized in earnings and a non-credit-related impairment recognized in AOCI:

 
   Less than 12 months   12 months or greater   Total  
(in thousands)
  Fair Value   Estimated
Unrealized
Loss		   Fair Value   Estimated
Unrealized
Loss		   Fair Value   Estimated
Unrealized
Loss		  

December 31, 2013

                                      

Securities available-for-sale:

                                      

Federal agency—Debt

   $ 1,026,142   $ 7,911   $ —   $ —   $ 1,026,142   $ 7,911  

Federal agency—MBS

     17,962     85     43,492     2,703     61,454     2,788  

CMOs—Federal agency

     1,637,994     35,922     728,101     34,849     2,366,095     70,771  

CMOs—Non-agency

     10,056     319     8,483     729     18,539     1,048  

State and municipal

     16,521     39     4,266     84     20,787     123  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities available-for-sale

   $ 2,708,675   $ 44,276   $ 784,342   $ 38,365   $ 3,493,017   $ 82,641  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

Securities held-to-maturity:

                                      

Federal agency—Debt

   $ 156,290   $ 5,122   $ —   $ —   $ 156,290   $ 5,122  

Federal agency—MBS

     321,090     10,513     15,338     1,417     336,428     11,930  

CMOs—Federal agency

     1,539,464     36,435     63,276     4,186     1,602,740     40,621  

State and municipal

     347,305     14,190     41,102     4,824     388,407     19,014  

Other debt securities

     98,077     619     —     —     98,077     619  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities held-to-maturity

   $ 2,462,226   $ 66,879   $ 119,716   $ 10,427   $ 2,581,942   $ 77,306  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

December 31, 2012

                                      

Securities available-for-sale:

                                      

U.S. Treasury

   $ 5,096   $ 3   $ —   $ —   $ 5,096   $ 3  

Federal agency—Debt

     346,136     203     —     —     346,136     203  

Federal agency—MBS

     50,932     69     46     —     50,978     69  

CMOs—Federal agency

     1,413,367     5,994     13,565     44     1,426,932     6,038  

CMOs—Non-agency

     —     —     25,484     2,124     25,484     2,124  

State and municipal

     85,550     225     810     14     86,360     239  

Other debt securities

     39,877     49     16,038     5,819     55,915     5,868  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities available-for-sale

   $ 1,940,958   $ 6,543   $ 55,943   $ 8,001   $ 1,996,901   $ 14,544  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

Securities held-to-maturity:

                                      

Federal agency—MBS

   $ 31,514   $ 182   $ —   $ —   $ 31,514   $ 182  

CMOs—Federal agency

     60,998     382     —     —     60,998     382  

State and municipal

     64,344     857     —     —     64,344     857  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total securities held-to-maturity

   $ 156,856   $ 1,421   $ —   $ —   $ 156,856   $ 1,421  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           
(1)
The estimated gross unrealized loss for federal agency mortgage-backed securities classified as available-for-sale was an insignificant amount as of December 31, 2012.

        At December 31, 2013, the Company had $3.49 billion of securities available-for-sale and $2.58 billion of securities held-to-maturity in an unrealized loss position. The debt securities in an unrealized loss position totaled 809 and included 47 federal agency debt securities, 44 federal agency MBS, 182 federal agency CMOs, 4 non-agency CMOs, 520 state and municipal securities and 12 other debt securities.

        At December 31, 2012, the Company had $2.00 billion of securities available-for-sale in an unrealized loss position, consisting of $1.98 billion of temporarily impaired securities and $16.2 million of securities that had non-credit-related impairment recognized in AOCI. At December 31, 2012, the Company had $156.9 million of securities held-to-maturity in an unrealized loss position. At December 31, 2012, the Company had 231 debt securities available-for-sale and held-to-maturity in an unrealized loss position. The debt securities in an unrealized loss position include 2 U.S. Treasury note, 8 federal agency debt securities, 7 federal agency MBS, 53 federal agency CMOs, 4 non-agency CMOs, 152 state and municipal securities and 5 other debt securities.