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INVESTMENT SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Amortized cost, gross unrealized gains and losses, and fair value of investment securities
The amortized cost, gross unrealized gains and losses, and fair values of the Company’s investment securities at March 31, 2014 are summarized as follows:
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-Sale
 
 
 
 
 
 
 
U.S. Government agencies
$
1,000

 
$
4

 
$
—

 
$
1,004

State and municipal bonds
79,129

 
5,194

 
(188
)
 
84,135

Agency mortgage-backed securities/collateralized mortgage obligations
1,340,763

 
19,523

 
(16,369
)
 
1,343,917

Non-agency collateralized mortgage obligations
3,289

 
60

 
—

 
3,349

Corporate securities and other
4,109

 
535

 
(323
)
 
4,321

Marketable equity securities
3,583

 
1,995

 
—

 
5,578

Total
$
1,431,873

 
$
27,311

 
$
(16,880
)
 
$
1,442,304

 
 
 
 
 
 
 
 
 
Carrying
Value (c)
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Held-to-Maturity
 

 
 

 
 

 
 

State and municipal bonds
$
529,528

 
$
16,416

 
$
(161
)
 
$
545,783

Agency mortgage-backed securities/collateralized mortgage obligations
383,014

 
1,488

 
—

 
384,502

Non-agency collateralized mortgage obligations
233

 
5

 
—

 
238

Corporate securities and other
5,565

 
—

 
—

 
5,565

Total
$
918,340

 
$
17,909

 
$
(161
)
 
$
936,088

 
 
 
 
 
 
 
 
(c) The carrying value of held-to-maturity securities represents the fair value at the date of transfer for securities which were transferred from the available-for-sale category.  The carrying value of all other held-to-maturity securities represents their amortized cost.

    
At March 31, 2014, 240 available-for-sale debt securities, with an amortized cost basis of $492 million, a net unrealized loss of $4.1 million and a fair value of $488 million, were reclassified as held-to-maturity.  Transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the remaining life of the security which will offset the effect on net interest income.

The amortized cost, gross unrealized gains and losses, and fair values of the Company’s investment securities at December 31, 2013 are summarized as follows:
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-Sale
 

 
 

 
 

 
 

U.S. Government agencies
$
1,000

 
$
—

 
$
(10
)
 
$
990

State and municipal bonds
210,680

 
7,701

 
(3,670
)
 
214,711

Agency mortgage-backed securities/collateralized mortgage obligations
1,683,092

 
18,040

 
(41,952
)
 
1,659,180

Non-agency collateralized mortgage obligations
4,222

 
44

 
(8
)
 
4,258

Corporate securities and other
9,517

 
646

 
(495
)
 
9,668

Marketable equity securities
3,583

 
1,717

 
—

 
5,300

Total
$
1,912,094

 
$
28,148

 
$
(46,135
)
 
$
1,894,107

 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Held-to-Maturity
 

 
 

 
 

 
 

State and municipal bonds
$
403,344

 
$
13,028

 
$
(895
)
 
$
415,477

Agency mortgage-backed securities/collateralized mortgage obligations
34,843

 
1,624

 
—

 
36,467

Non-agency collateralized mortgage obligations
258

 
—

 
—

 
258

Total
$
438,445

 
$
14,652

 
$
(895
)
 
$
452,202
Realized Gain (Loss) on Investments
Gains and losses from sales of investment securities are as follows:
(dollars in thousands)
Three Months Ended March 31,
 
2014
 
2013
Gains
$
8

 
$
25

Losses
—

 
—

Net gains (losses) from sales of investment securities
$
8

 
$
25
Investment securities in a continuous unrealized loss position
The following tables indicate the length of time individual securities have been in a continuous unrealized loss position at March 31, 2014 and December 31, 2013, respectively.
 
March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
 
Less than 12 months
 
12 months or longer
 
Total
 
No. of Securities
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
State and municipal bonds
47
 
$
19,004

 
$
(248
)
 
$
8,741

 
$
(101
)
 
$
27,745

 
$
(349
)
Agency mortgage-backed securities/collateralized mortgage obligations
133
 
486,117

 
(9,930
)
 
139,881

 
(6,439
)
 
625,998

 
(16,369
)
Corporate securities and other
2
 
—

 
—

 
1,175

 
(323
)
 
1,175

 
(323
)
Total
182
 
$
505,121

 
$
(10,178
)
 
$
149,797

 
$
(6,863
)
 
$
654,918

 
$
(17,041
)

The table above does not include unrealized losses of $9.8 million related to 96 securities transferred to the held-to-maturity category at March 31, 2014.  The unrealized losses related to these securities are now included in their carrying value and will be amortized over their remaining lives.
December 31, 2013
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
 
Less than 12 months
 
12 months or longer
 
Total
 
No. of Securities
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
U.S. Government agencies
1
 
$
990

 
$
(10
)
 
$
—

 
$
—

 
$
990

 
$
(10
)
State and municipal bonds
145
 
76,402

 
(2,282
)
 
20,708

 
(2,283
)
 
97,110

 
(4,565
)
Agency mortgage-backed securities/collateralized mortgage obligations
241
 
953,423

 
(33,990
)
 
115,815

 
(7,962
)
 
1,069,238

 
(41,952
)
Non-agency collateralized mortgage obligations
5
 
820

 
(8
)
 
—

 
—

 
820

 
(8
)
Corporate securities and other
5
 
1,966

 
(35
)
 
2,708

 
(460
)
 
4,674

 
(495
)
Total
397
 
$
1,033,601

 
$
(36,325
)
 
$
139,231

 
$
(10,705
)
 
$
1,172,832

 
$
(47,030
)
Investment securities pledged as collateral
The fair value of investment securities pledged as collateral are presented below:
(dollars in thousands)
March 31, 2014
 
December 31, 2013
Deposits
$
897,202

 
$
966,751

Repurchase agreements
655,437

 
650,627

Other
79,486

 
81,408

Total
$
1,632,125

 
$
1,698,786
Expected maturities of investment securities
The specified values of investment securities, by contractual maturity, at March 31, 2014 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Available-for-Sale
 
Held-to-Maturity
(dollars in thousands)
Amortized
Cost
 
Fair
Value
 
Carrying
Value
 
Fair
Value
Due in one year or less
$
5,362

 
$
5,454

 
$
—

 
$
—

Due after one through five years
46,446

 
50,266

 
5,248

 
5,353

Due after five through ten years
151,296

 
156,413

 
150,620

 
154,994

Due after ten years
1,225,186

 
1,224,593

 
762,472

 
775,741

Marketable equity securities
3,583

 
5,578

 
—

 
—

Total
$
1,431,873

 
$
1,442,304

 
$
918,340

 
$
936,088