Investment Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investment securities, at fair value, consisted of the following at December 31, 2013 and 2012.



(In thousands)	2013		2012
Available for sale:
U.S. government and federal agency obligations	$	505,696	$	438,759
Government-sponsored enterprise obligations	741,766		471,574
State and municipal obligations	1,619,171		1,615,707
Agency mortgage-backed securities	2,772,338		3,380,955
Non-agency mortgage-backed securities	246,983		237,011
Asset-backed securities	2,844,071		3,167,394
Other debt securities	141,757		177,752
Equity securities	43,898		33,096
Total available for sale	8,915,680		9,522,248
Trading	19,993		28,837
Non-marketable	107,324		118,650
Total investment securities	$	9,042,997	$	9,669,735

Summary Of Available For Sale Investment Securities By Maturity Groupings



(Dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield
U.S. government and federal agency obligations:
After 1 but within 5 years	$	274,859	$	293,742	1.71	*%
After 5 but within 10 years	150,790		152,277		.51*
After 10 years	72,577		59,677		(.31)*
Total U.S. government and federal agency obligations	498,226		505,696		1.05*
Government-sponsored enterprise obligations:
Within 1 year	30,159		30,437		1.58
After 1 but within 5 years	446,124		444,504		1.57
After 5 but within 10 years	143,535		132,930		1.59
After 10 years	146,984		133,895		1.97
Total government-sponsored enterprise obligations	766,802		741,766		1.65
State and municipal obligations:
Within 1 year	141,912		143,357		2.70
After 1 but within 5 years	734,238		756,570		2.64
After 5 but within 10 years	562,959		543,749		2.21
After 10 years	185,086		175,495		1.94
Total state and municipal obligations	1,624,195		1,619,171		2.42
Mortgage and asset-backed securities:
Agency mortgage-backed securities	2,743,803		2,772,338		2.74
Non-agency mortgage-backed securities	236,595		246,983		4.51
Asset-backed securities	2,847,368		2,844,071		.88
Total mortgage and asset-backed securities	5,827,766		5,863,392		1.90
Other debt securities:
Within 1 year	7,695		7,719
After 1 but within 5 years	49,697		50,125
After 5 but within 10 years	90,189		83,913
Total other debt securities	147,581		141,757
Equity securities	9,970		43,898
Total available for sale investment securities	$	8,874,540	$	8,915,680

Available For Sale Securities Unrealized Gains And Losses By Security Type

For securities classified as available for sale, the following table shows the unrealized gains and losses (pre-tax) in accumulated other comprehensive income, by security type.



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2013
U.S. government and federal agency obligations	$	498,226	$	20,614	$	(13,144	)	$	505,696
Government-sponsored enterprise obligations	766,802		2,245		(27,281		)	741,766
State and municipal obligations	1,624,195		28,321		(33,345		)	1,619,171
Mortgage and asset-backed securities:
Agency mortgage-backed securities	2,743,803		54,659		(26,124		)	2,772,338
Non-agency mortgage-backed securities	236,595		12,008		(1,620		)	246,983
Asset-backed securities	2,847,368		6,872		(10,169		)	2,844,071
Total mortgage and asset-backed securities	5,827,766		73,539		(37,913		)	5,863,392
Other debt securities	147,581		671		(6,495		)	141,757
Equity securities	9,970		33,928		—			43,898
Total	$	8,874,540	$	159,318	$	(118,178	)	$	8,915,680
December 31, 2012
U.S. government and federal agency obligations	$	399,971	$	40,395	$	(1,607	)	$	438,759
Government-sponsored enterprise obligations	467,063		5,188		(677		)	471,574
State and municipal obligations	1,585,926		46,076		(16,295		)	1,615,707
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,248,007		132,953		(5		)	3,380,955
Non-agency mortgage-backed securities	224,223		12,906		(118		)	237,011
Asset-backed securities	3,152,913		15,848		(1,367		)	3,167,394
Total mortgage and asset-backed securities	6,625,143		161,707		(1,490		)	6,785,360
Other debt securities	174,727		3,127		(102		)	177,752
Equity securities	5,695		27,401		—			33,096
Total	$	9,258,525	$	283,894	$	(20,171	)	$	9,522,248

Cash Flow Model Inputs Used To Calculate Credit Losses

Significant inputs to the cash flow models used to calculate the credit losses on these securities included the following:



Significant Inputs	Range
Prepayment CPR	0%	-	25%
Projected cumulative default	16%	-	52%
Credit support	0%	-	14%
Loss severity	18%	-	81%

Changes In Recorded Credit Losses

The following table shows changes in the credit losses recorded in current earnings, for which a portion of an OTTI was recognized in other comprehensive income.



(In thousands)	2013			2012			2011
Balance at January 1	$	11,306		$	9,931		$	7,542
Credit losses on debt securities for which impairment was not previously recognized	—			—			170
Credit losses on debt securities for which impairment was previously recognized	1,284			1,490			2,368
Increase in expected cash flows that are recognized over remaining life of security	(91		)	(115		)	(149		)
Balance at December 31	$	12,499		$	11,306		$	9,931

Securities With Unrealized Losses And Length Of Impairment Period

Securities with unrealized losses recorded in accumulated other comprehensive income are shown in the table below, along with the length of the impairment period. The table includes securities for which a portion of an OTTI has been recognized in other comprehensive income.



	Less than 12 months				12 months or longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2013
U.S. government and federal agency obligations	$	96,172	$	243	$	59,677	$	12,901	$	155,849	$	13,144
Government-sponsored enterprise obligations	487,317		18,155		93,654		9,126		580,971		27,281
State and municipal obligations	478,818		15,520		178,150		17,825		656,968		33,345
Mortgage and asset-backed securities:
Agency mortgage-backed securities	717,778		26,124		—		—		717,778		26,124
Non-agency mortgage-backed securities	53,454		918		22,289		702		75,743		1,620
Asset-backed securities	1,088,556		9,072		58,398		1,097		1,146,954		10,169
Total mortgage and asset-backed securities	1,859,788		36,114		80,687		1,799		1,940,475		37,913
Other debt securities	90,028		5,604		9,034		891		99,062		6,495
Total	$	3,012,123	$	75,636	$	421,202	$	42,542	$	3,433,325	$	118,178
December 31, 2012
U.S. government and federal agency obligations	$	71,464	$	1,607	$	—	$	—	$	71,464	$	1,607
Government-sponsored enterprise obligations	102,082		677		—		—		102,082		677
State and municipal obligations	173,600		2,107		80,530		14,188		254,130		16,295
Mortgage and asset-backed securities:
Agency mortgage-backed securities	5,874		5		—		—		5,874		5
Non-agency mortgage-backed securities	—		—		12,609		118		12,609		118
Asset-backed securities	338,007		976		78,684		391		416,691		1,367
Total mortgage and asset-backed securities	343,881		981		91,293		509		435,174		1,490
Other debt securities	39,032		102		—		—		39,032		102
Total	$	730,059	$	5,474	$	171,823	$	14,697	$	901,882	$	20,171

State And Municipal Obligations, By State And Economic Sector

The Company does not have exposure to obligations of municipalities which have filed for Chapter 9 bankruptcy. The Company has processes and procedures in place to monitor its holdings, identify signs of financial distress and, if necessary, exit its positions in a timely manner. The portfolio is diversified in order to reduce risk, and information about the top five largest holdings, by state and economic sector, is shown in the following table.



	% of Portfolio		Average Life (in years)	Average Rating (Moody’s)
At December 31, 2013
Texas	9.9	%	4.1	Aa1
Florida	9.3		4.6	Aa3
Ohio	6.0		4.9	Aa2
New York	5.5		6.3	Aa2
Washington	5.4		5.0	Aa2
General obligation	30.6	%	4.6	Aa2
Lease	16.2		4.6	Aa2
Housing	15.4		4.4	Aa1
Transportation	13.9		4.2	A1
Limited tax	5.6		5.4	Aa1

Credit Ratings In State And Municipal Bond Portfolio

The credit ratings (Moody’s rating or equivalent) at December 31, 2013 in the state and municipal bond portfolio (excluding auction rate securities) are shown in the following table. The average credit quality of the portfolio is Aa2 as rated by Moody’s.



	% of Portfolio
Aaa	11.3	%
Aa	67.5
A	19.1
Baa	1.3
Not rated	.8
	100.0	%

Proceeds From Sales Of Securities And Components Of Investment Securities Gains And Losses

The following table presents proceeds from sales of securities and the components of investment securities gains and losses which have been recognized in earnings.



(In thousands)	2013			2012			2011
Proceeds from sales of available for sale securities	$	7,076		$	5,231		$	11,202
Proceeds from sales of non-marketable securities	9,223			11,644			8,631
Total proceeds	$	16,299		$	16,875		$	19,833
Available for sale:
Gains realized on sales	$	126		$	358		$	177
Gain realized on donation	1,375			—			—
Other-than-temporary impairment recognized on debt securities	(1,284		)	(1,490		)	(2,537		)
Non-marketable:
Gains realized on sales	1,808			1,655			2,388
Losses realized on sales	(2,979		)	(200		)	—
Fair value adjustments, net	(3,471		)	4,505			10,784
Investment securities gains (losses), net	$	(4,425	)	$	4,828		$	10,812