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Investment Securities
 12 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
Our investment securities portfolio consists of: (i) an available-for-sale securities portfolio and a held-to-maturity securities portfolio, both of which represent interest-earning investment securities; and (ii) a non-marketable and other securities portfolio, which primarily represents investments managed as part of our funds management business.

Available-for-Sale Securities
The major components of our available-for-sale investment securities portfolio at December 31, 2016 and 2015 are as follows:
 
 
December 31, 2016
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Carrying
Value
Available-for-sale securities, at fair value:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
8,880,358

 
$
30,323

 
$
(1,190
)
 
$
8,909,491

U.S. agency debentures
 
2,065,535

 
14,443

 
(1,603
)
 
2,078,375

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
1,163,017

 
3,046

 
(13,398
)
 
1,152,665

Agency-issued collateralized mortgage obligations—variable rate
 
474,238

 
685

 
(640
)
 
474,283

Equity securities
 
5,635

 
748

 
(786
)
 
5,597

Total available-for-sale securities
 
$
12,588,783

 
$
49,245

 
$
(17,617
)
 
$
12,620,411

 
 
December 31, 2015
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Carrying
Value
Available-for-sale securities, at fair value:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
11,679,450

 
$
19,134

 
$
(20,549
)
 
$
11,678,035

U.S. agency debentures
 
2,677,453

 
17,684

 
(5,108
)
 
2,690,029

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
1,408,206

 
6,591

 
(15,518
)
 
1,399,279

Agency-issued collateralized mortgage obligations—variable rate
 
604,236

 
3,709

 
(9
)
 
607,936

Equity securities
 
6,596

 
460

 
(1,587
)
 
5,469

Total available-for-sale securities
 
$
16,375,941

 
$
47,578

 
$
(42,771
)
 
$
16,380,748


The following tables summarize our unrealized losses on our AFS securities portfolio into categories of less than 12 months, or 12 months or longer as of December 31, 2016 and 2015:
 
 
December 31, 2016
 
 
Less than 12 months
 
12 months or longer
 
Total
(Dollars in thousands)
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
879,255

 
$
(1,190
)
 
$
—

 
$
—

 
$
879,255

 
$
(1,190
)
U.S. agency debentures
 
513,198

 
(1,603
)
 
—

 
—

 
513,198

 
(1,603
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
635,566

 
(6,704
)
 
227,480

 
(6,694
)
 
863,046

 
(13,398
)
Agency-issued collateralized mortgage obligations—variable rate
 
258,325

 
(613
)
 
6,068

 
(27
)
 
264,393

 
(640
)
Equity securities
 
3,693

 
(786
)
 
—

 
—

 
3,693

 
(786
)
Total temporarily impaired securities (1)
 
$
2,290,037

 
$
(10,896
)
 
$
233,548

 
$
(6,721
)
 
$
2,523,585

 
$
(17,617
)
 
 
(1)
As of December 31, 2016, we identified a total of 174 investments that were in unrealized loss positions, of which 20 investments totaling $233.5 million with unrealized losses of $6.7 million have been in an impaired position for a period of time greater than 12 months. As of December 31, 2016, we do not intend to sell any impaired debt securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis. Based on our analysis as of December 31, 2016, we deem all impairments to be temporary, and therefore changes in value for our temporarily impaired securities as of the same date are included in other comprehensive income. Market valuations and impairment analyses on assets in the AFS securities portfolio are reviewed and monitored on a quarterly basis.
 
 
December 31, 2015
 
 
Less than 12 months
 
12 months or longer
 
Total
(Dollars in thousands)
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
7,467,519

 
$
(20,549
)
 
$
—

 
$
—

 
$
7,467,519

 
$
(20,549
)
U.S. agency debentures
 
760,071

 
(5,108
)
 
—

 
—

 
760,071

 
(5,108
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations—fixed rate
 
545,404

 
(4,681
)
 
373,284

 
(10,837
)
 
918,688

 
(15,518
)
Agency-issued collateralized mortgage obligations—variable rate
 
7,776

 
(9
)
 
—

 
—

 
7,776

 
(9
)
Equity securities
 
2,955

 
(1,587
)
 
—

 
—

 
2,955

 
(1,587
)
Total temporarily impaired securities (1)
 
$
8,783,725

 
$
(31,934
)
 
$
373,284

 
$
(10,837
)
 
$
9,157,009

 
$
(42,771
)
 
 
(1)
As of December 31, 2015, we identified a total of 243 investments that were in unrealized loss positions, of which 18 investments totaling $373.3 million with unrealized losses of $10.8 million have been in an impaired position for a period of time greater than 12 months.
The following table summarizes the fixed income securities, carried at fair value, classified as available-for-sale as of December 31, 2016 by the remaining contractual principal maturities. For U.S. Treasury securities and U.S. agency debentures, the expected maturity is the actual contractual maturity of the notes. Expected maturities for mortgage-backed securities may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. Mortgage-backed securities classified as available-for-sale typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure and prepayments in lower rate environments.
 
 
December 31, 2016
(Dollars in thousands)
 
Total
 
One Year
or Less
 
After One
Year to
Five Years
 
After Five
Years to
Ten Years
 
After
Ten Years
U.S. Treasury securities
 
$
8,909,491

 
$
2,224,538

 
$
6,684,953

 
$
—

 
$
—

U.S. agency debentures
 
2,078,375

 
500,520

 
1,577,855

 
—

 
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
Agency-issued collateralized mortgage obligations - fixed rate
 
1,152,665

 
—

 
—

 
680,688

 
471,977

Agency-issued collateralized mortgage obligations - variable rate
 
474,283

 
—

 
—

 
—

 
474,283

Total
 
$
12,614,814

 
$
2,725,058

 
$
8,262,808

 
$
680,688

 
$
946,260

Held-to-Maturity Securities
The components of our held-to-maturity investment securities portfolio at December 31, 2016 and 2015 are as follows:
 
 
December 31, 2016
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Held-to-maturity securities, at cost:
 
 
 
 
 
 
 
 
U.S. agency debentures (1)
 
$
622,445

 
$
7,840

 
$
(1,198
)
 
$
629,087

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,896,179

 
6,919

 
(24,526
)
 
2,878,572

Agency-issued collateralized mortgage obligations—fixed rate
 
3,362,598

 
788

 
(31,274
)
 
3,332,112

Agency-issued collateralized mortgage obligations—variable rate
 
312,665

 
176

 
(1,339
)
 
311,502

Agency-issued commercial mortgage-backed securities
 
1,151,363

 
1,237

 
(7,638
)
 
1,144,962

Municipal bonds and notes
 
81,748

 
8

 
(1,853
)
 
79,903

Total held-to-maturity securities
 
$
8,426,998

 
$
16,968

 
$
(67,828
)
 
$
8,376,138

 
 
(1)
Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
 
 
December 31, 2015
(Dollars in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
Held-to-maturity securities, at cost:
 
 
 
 
 
 
 
 
U.S. agency debentures (1)
 
$
545,473

 
$
8,876

 
$
—

 
$
554,349

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,366,627

 
546

 
(11,698
)
 
2,355,475

Agency-issued collateralized mortgage obligations—fixed rate
 
4,225,781

 
3,054

 
(32,999
)
 
4,195,836

Agency-issued collateralized mortgage obligations—variable rate
 
370,779

 
758

 
(33
)
 
371,504

Agency-issued commercial mortgage-backed securities
 
1,214,716

 
3,405

 
(3,475
)
 
1,214,646

Municipal bonds and notes
 
67,587

 
55

 
(830
)
 
66,812

Total held-to-maturity securities
 
$
8,790,963

 
$
16,694

 
$
(49,035
)
 
$
8,758,622

 
 
(1)
Consists of pools of Small Business Investment Company debentures issued and guaranteed by the U.S. Small Business Administration, an independent agency of the United States.
 
The following tables summarize our unrealized losses on our held-to-maturity securities portfolio into categories of less than 12 months and 12 months or longer as of December 31, 2016 and 2015:
 
 
December 31, 2016
 
 
Less than 12 months
 
12 months or longer (1)
 
Total
(Dollars in thousands)
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agency debentures
 
$
118,721

 
$
(1,198
)
 
$
—

 
$
—

 
$
118,721

 
$
(1,198
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
1,801,861

 
(23,558
)
 
21,917

 
(968
)
 
1,823,778

 
(24,526
)
Agency-issued collateralized mortgage
    obligations—fixed rate
 
2,729,889

 
(25,723
)
 
228,220

 
(5,551
)
 
2,958,109

 
(31,274
)
Agency-issued collateralized mortgage
    obligations—variable rate
 
251,012

 
(1,339
)
 
—

 
—

 
251,012

 
(1,339
)
Agency-issued commercial mortgage-backed
    securities
 
999,440

 
(7,494
)
 
14,934

 
(144
)
 
1,014,374

 
(7,638
)
Municipal bonds and notes
 
42,267

 
(877
)
 
30,586

 
(976
)
 
72,853

 
(1,853
)
Total temporarily impaired securities (1)
 
$
5,943,190

 
$
(60,189
)
 
$
295,657

 
$
(7,639
)
 
$
6,238,847

 
$
(67,828
)
 
 
(1)
As of December 31, 2016, we identified a total of 462 investments that were in unrealized loss positions, of which 85 investments totaling $295.7 million with unrealized losses of $7.6 million have been in an impaired position for a period of time greater than 12 months. As of December 31, 2016, we do not intend to sell any impaired fixed income investment securities prior to recovery of our adjusted cost basis, and it is more likely than not that we will not be required to sell any of our securities prior to recovery of our adjusted cost basis, which is consistent with our classification of these securities. Based on our analysis as of December 31, 2016, we deem all impairments to be temporary. Market valuations and impairment analyses on assets in the HTM securities portfolio are reviewed and monitored on a quarterly basis.
 
 
December 31, 2015
 
 
Less than 12 months
 
12 months or longer (1)
 
Total
(Dollars in thousands)
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
 
Fair Value of
Investments
 
Unrealized
Losses
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
$
2,121,258

 
$
(10,860
)
 
$
22,507

 
$
(838
)
 
$
2,143,765

 
$
(11,698
)
Agency-issued collateralized mortgage obligations—fixed rate
 
3,153,483

 
(30,230
)
 
150,058

 
(2,769
)
 
3,303,541

 
(32,999
)
Agency-issued collateralized mortgage
  obligations—variable rate
 
170,350

 
(33
)
 
—

 
—

 
170,350

 
(33
)
Agency-issued commercial mortgage-backed securities
 
823,414

 
(2,994
)
 
40,276

 
(481
)
 
863,690

 
(3,475
)
Municipal bonds and notes
 
34,278

 
(274
)
 
25,509

 
(556
)
 
59,787

 
(830
)
Total temporarily impaired securities (1)
 
$
6,302,783

 
$
(44,391
)
 
$
238,350

 
$
(4,644
)
 
$
6,541,133

 
$
(49,035
)
 
 
(1)
As of December 31, 2015, we identified a total of 384 investments that were in unrealized loss positions, of which 58 investments totaling $238.4 million with unrealized losses of $4.6 million have been in an impaired position for a period of time greater than 12 months.
The following table summarizes the remaining contractual principal maturities on fixed income investment securities classified as held-to-maturity as of December 31, 2016. For U.S. agency debentures, the expected maturity is the actual contractual maturity of the notes. Expected maturities for mortgage-backed securities may differ significantly from their contractual maturities because mortgage borrowers have the right to prepay outstanding loan obligations with or without penalties. Mortgage-backed securities classified as held-to-maturity typically have original contractual maturities from 10 to 30 years whereas expected average lives of these securities tend to be significantly shorter and vary based upon structure and prepayments in lower rate environments.
 
 
December 31, 2016
 
 
Total
 
One Year
or Less
 
After One Year to
Five Years
 
After Five Years to
Ten Years
 
After
Ten Years
(Dollars in thousands)
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
U.S. agency debentures
 
$
622,445

 
$
629,087

 
$
—

 
$
—

 
$
47,357

 
$
47,943

 
$
575,088

 
$
581,144

 
$
—

 
$
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency-issued mortgage-backed securities
 
2,896,179

 
2,878,572

 
—

 
—

 
264,607

 
263,759

 
172,472

 
171,290

 
2,459,100

 
2,443,523

Agency-issued collateralized mortgage obligations - fixed rate
 
3,362,598

 
3,332,112

 
—

 
—

 
—

 
—

 
71,260

 
70,227

 
3,291,338

 
3,261,885

Agency-issued collateralized mortgage obligations - variable rate
 
312,665

 
311,502

 
—

 
—

 
—

 
—

 
—

 
—

 
312,665

 
311,502

Agency-issued commercial mortgage-backed securities
 
1,151,363

 
1,144,962

 
—

 
—

 
—

 
—

 
—

 
—

 
1,151,363

 
1,144,962

Municipal bonds and notes
 
81,748

 
79,903

 
4,509

 
4,498

 
33,148

 
32,562

 
34,810

 
33,878

 
9,281

 
8,965

Total
 
$
8,426,998

 
$
8,376,138

 
$
4,509

 
$
4,498

 
$
345,112

 
$
344,264

 
$
853,630

 
$
856,539

 
$
7,223,747

 
$
7,170,837

Non-marketable and Other Securities
The major components of our non-marketable and other investment securities portfolio at December 31, 2016 and 2015 are as follows:
(Dollars in thousands)
 
December 31, 2016
 
December 31, 2015
Non-marketable and other securities:
 
 
 
 
Non-marketable securities (fair value accounting):
 
 
 
 
Venture capital and private equity fund investments (1)
 
$
141,649

 
$
152,237

Other venture capital investments (2)
 
2,040

 
2,040

Other securities (fair value accounting) (3)
 
753

 
548

Non-marketable securities (equity method accounting) (4):
 
 
 
 
Venture capital and private equity fund investments
 
82,823

 
85,705

Debt funds
 
17,020

 
21,970

Other investments
 
123,514

 
118,532

Non-marketable securities (cost method accounting):
 
 
 
 
Venture capital and private equity fund investments (5)
 
114,606

 
120,676

Other investments
 
27,700

 
18,882

Investments in qualified affordable housing projects, net (6)
 
112,447

 
154,356

Total non-marketable and other securities
 
$
622,552

 
$
674,946

 
 
(1)
The following table shows the amounts of venture capital and private equity fund investments held by the following consolidated funds and our ownership percentage of each fund at December 31, 2016 and 2015 (fair value accounting):
 
 
December 31, 2016
 
December 31, 2015
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Strategic Investors Fund, LP
 
$
18,459

 
12.6
%
 
$
20,794

 
12.6
%
Capital Preferred Return Fund, LP
 
57,627

 
20.0

 
60,619

 
20.0

Growth Partners, LP
 
59,718

 
33.0

 
62,983

 
33.0

Other private equity fund (i)
 
5,845

 
58.2

 
7,841

 
58.2

Total venture capital and private equity fund investments
 
$
141,649

 
 
 
$
152,237

 
 
 
 
(i)
Our ownership includes direct ownership interest of 41.5 percent in other private equity funds and an indirect ownership interest of 12.6 percent through our ownership interest of Growth Partners, LP and an indirect ownership interest of 4.1 percent through our ownership interest of Capital Preferred Return Fund, LP.
(2)
The following table shows the amounts of other venture capital investments held by the following consolidated funds and our ownership percentage of each fund at December 31, 2016 and 2015 (fair value accounting):
 
 
December 31, 2016
 
December 31, 2015
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
CP I, LP
 
$
2,040

 
10.7
%
 
$
2,040

 
10.7
%
Total other venture capital investments
 
$
2,040

 
 
 
$
2,040

 
 


(3)
Investments classified as other securities (fair value accounting) represent direct equity investments in public companies held by our consolidated funds.
(4)
The following table shows the carrying value and our ownership percentage of each investment at December 31, 2016 and December 31, 2015 (equity method accounting):
 
 
December 31, 2016
 
December 31, 2015
(Dollars in thousands)
 
Amount
 
Ownership %
 
Amount
 
Ownership %
Venture capital and private equity fund investments:
 
 
 
 
 
 
 
 
Strategic Investors Fund II, LP
 
$
7,720

 
8.6
%
 
$
10,035

 
8.6
%
Strategic Investors Fund III, LP
 
20,449

 
5.9

 
23,926

 
5.9

Strategic Investors Fund IV, LP
 
24,530

 
5.0

 
26,411

 
5.0

Strategic Investors Fund V funds
 
12,029

 
Various

 
10,470

 
Various

Other venture capital and private equity fund investments
 
18,095

 
Various

 
14,863

 
Various

 Total venture capital and private equity fund investments
 
$
82,823

 


 
$
85,705

 
 
Debt funds:
 
 
 
 
 
 
 
 
Gold Hill Capital 2008, LP (i)
 
$
13,557

 
15.5
%
 
$
17,453

 
15.5
%
Other debt funds
 
3,463

 
Various

 
4,517

 
Various

Total debt funds
 
$
17,020

 
 
 
$
21,970

 
 
Other investments:



 
 
 
 
 
 
China Joint Venture investment

$
75,296

 
50.0
%
 
$
78,799

 
50.0
%
Other investments

48,218

 
Various

 
39,733

 
Various

Total other investments

$
123,514

 
 
 
$
118,532

 
 
 
 
(i)
Our ownership includes direct ownership interest of 11.5 percent in the fund and an indirect interest in the fund through our investment in Gold Hill Capital 2008, LLC of 4.0 percent.

(5)
Represents investments in 252 and 267 funds (primarily venture capital funds) at December 31, 2016 and 2015, respectively, where our ownership interest is less than 5% of the voting interests of each such fund and in which we do not have the ability to exercise significant influence over the partnerships operating activities and financial policies. The carrying value, and estimated fair value, of these venture capital and private equity fund investments (cost method accounting) was $115 million, and $222 million, respectively, as of December 31, 2016. The carrying value, and estimated fair value, of the venture capital and private equity fund investments (cost method accounting) was $121 million, and $233 million, respectively, as of December 31, 2015.
(6)
The following table presents the balances of our investments in qualified affordable housing projects and related unfunded commitments at December 31, 2016 and 2015:
(Dollars in thousands)
 
December 31, 2016
 
December 31, 2015
Investments in qualified affordable housing projects, net
 
$
112,447

 
$
154,356

Accrued expenses and other liabilities
 
58,095

 
90,978


The following table presents other information relating to our investments in qualified affordable housing projects for the year ended December 31, 2016, 2015 and 2014:
 
 
Year ended December 31,
(Dollars in thousands)
 
2016
 
2015
 
2014
Tax credits and other tax benefits recognized
 
$
15,404

 
$
14,375

 
$
12,109

Amortization expense included in provision for income taxes (i)
 
12,145

 
10,389

 
9,340

 
 
(i)
All investments are amortized using the proportional amortization method and amortization expense is included in the provision for income taxes.
The following table presents the components of gains and losses (realized and unrealized) on investment securities in 2016, 2015 and 2014:
 
 
Year ended December 31,
(Dollars in thousands)
 
2016
 
2015
 
2014
Gross gains on investment securities:
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
$
15,051

 
$
2,971

 
$
657

Non-marketable securities (fair value accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
25,041

 
32,399

 
349,747

Other venture capital investments
 
17

 
1,512

 
17,309

Other securities (fair value accounting)
 
691

 
9,180

 
151,007

Non-marketable securities (equity method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
10,834

 
26,415

 
1,661

Debt funds
 
1,406

 
4,111

 
4,749

Other investments
 
15,739

 
2,791

 
4,755

Non-marketable securities (cost method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
18,428

 
25,908

 
16,001

Other investments
 
293

 
2,599

 
5,795

Total gross gains on investment securities
 
87,500

 
107,886

 
551,681

Gross losses on investment securities:
 
 
 
 
 
 
Available-for-sale securities, at fair value (1)
 
(2,856
)
 
(1,770
)
 
(19,255
)
Non-marketable securities (fair value accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(19,077
)
 
(9,210
)
 
(86,263
)
Other venture capital investments
 
(38
)
 
(320
)
 
(4,516
)
Other securities (fair value accounting)
 
(781
)
 
(1,559
)
 
(170,890
)
Non-marketable securities (equity method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments
 
(6,764
)
 
(909
)
 
(231
)
Debt funds
 
(458
)
 
(774
)
 
(1,558
)
Other investments
 
(4,857
)
 
(3,146
)
 
(759
)
Non-marketable securities (cost method accounting):
 
 
 
 
 
 
Venture capital and private equity fund investments (2)
 
(591
)
 
(729
)
 
(827
)
Other investments (3)
 
(338
)
 
(24
)
 
(359
)
Total gross losses on investment securities
 
(35,760
)
 
(18,441
)
 
(284,658
)
Gains on investment securities, net
 
$
51,740

 
$
89,445

 
$
267,023

 
 
(1)
Includes realized gains (losses) on sales of AFS securities that are recognized in the income statement. Unrealized gains (losses) on AFS securities are recognized in other comprehensive income. The cost basis of AFS securities sold is determined on a specific identification basis.
(2)
Includes OTTI of $0.6 million from the declines in value for 26 of the 252 investments held at December 31, 2016, $0.6 million from the declines in value for 22 of the 267 investments held at December 31, 2015 and $0.8 million from the declines in value for 27 of the 281 investments held at December 31, 2014. We concluded that any declines in value for the remaining investments were temporary, and as such, no OTTI was required to be recognized.
(3)
No OTTI was recognized for the years ended December 31, 2016, 2015, and 2014, respectively. We concluded that any declines in value for the investments were temporary, and as such, no OTTI was required to be recognized.