Securities (Tables)

12 Months Ended

Dec. 31, 2014

The fair value and net unrealized gain (loss) included in trading securities is as follows (in thousands):



	December 31, 2014					December 31, 2013
	Fair Value		Net Unrealized Gain (Loss)			Fair Value		Net Unrealized Gain (Loss)
U.S. government agency debentures	$	85,092	$	(62	)	$	34,120	$	77
U.S. government agency residential mortgage-backed securities	31,199		269			21,011		123
Municipal and other tax-exempt securities	38,951		18			27,350		(182		)
Other trading securities	33,458		(38		)	9,135		(7		)
Total	$	188,700	$	187		$	91,616	$	11

Investment Securities (Held-to-Maturity) [Table Text Block]

The amortized cost and fair values of investment securities are as follows (in thousands):



	December 31, 2014
	Amortized		Carrying		Fair		Gross Unrealized²
	Cost		Value¹		Value		Gain		Loss
Municipal and other tax-exempt securities	$	405,090	$	405,090	$	408,344	$	4,205	$	(951	)
U.S. government agency residential mortgage-backed securities – Other	35,135		35,750		37,463		1,713		—
Other debt securities	211,520		211,520		227,819		16,956		(657		)
Total	$	651,745	$	652,360	$	673,626	$	22,874	$	(1,608	)


¹	Carrying value includes $615 thousand of net unrealized gain which remains in Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheets related to certain securities transferred from the Available for Sale securities portfolio to the Investment securities portfolio as discussed in greater detail following.


²	Gross unrealized gains and losses are not recognized in AOCI in the Consolidated Balance Sheets.



	December 31, 2013
	Amortized		Carrying		Fair		Gross Unrealized²
	Cost		Value¹		Value		Gain		Loss
Municipal and other tax-exempt securities	$	440,187	$	440,187	$	439,870	$	2,452	$	(2,769	)
U.S. government agency residential mortgage-backed securities – Other	48,351		50,182		51,864		1,738		(56		)
Other debt securities	187,509		187,509		195,393		8,497		(613		)
Total	$	676,047	$	677,878	$	687,127	$	12,687	$	(3,438	)


¹	Carrying value includes $1.8 million of net unrealized gain which remains in AOCI in the Consolidated Balance Sheets related to certain securities transferred from the Available for Sale securities portfolio to the Investment securities portfolio as discussed in greater detail following.


²	Gross unrealized gains and losses are not recognized in AOCI in the Consolidated Balance Sheets.

In 2011, the Company transferred certain U.S. government agency residential mortgage-backed securities from the available for sale portfolio to the investment securities (held-to-maturity) portfolio as the Company has the positive intent and ability to hold these securities to maturity. No gains or losses were recognized in the Consolidated Statement of Earnings at the time of the transfer. Transfers of debt securities into the investment securities portfolio (held-to-maturity) are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in Accumulated Other Comprehensive Income and in the carrying value of the investment securities portfolio. Such amounts are amortized over the estimated remaining life of the security as an adjustment to yield, offsetting the related amortization of the premium or accretion of the discount on the transferred securities. At the time of transfer, the fair value totaled $131 million, amortized cost totaled $118 million and the pretax unrealized gain totaled $13 million.

The amortized cost and fair values of investment securities at December 31, 2014, by contractual maturity, are as shown in the following table (dollars in thousands):



	Less than One Year			One to Five Years			Six to Ten Years			Over Ten Years			Total			Weighted Average Maturity²
Municipal and other tax-exempt securities:
Carrying value	$	44,255		$	299,934		$	22,429		$	38,472		$	405,090		3.80
Fair value	44,381			300,434			22,666			40,863			408,344
Nominal yield¹	1.71		%	1.74		%	3.91		%	5.37		%	2.20		%
Other debt securities:
Carrying value	$	15,918		$	37,726		$	58,338		$	99,538		$	211,520		9.18
Fair value	15,925			38,509			61,430			111,955			227,819
Nominal yield	3.32		%	4.96		%	5.19		%	6.12		%	5.45		%
Total fixed maturity securities:
Carrying value	$	60,173		$	337,660		$	80,767		$	138,010		$	616,610		5.65
Fair value	60,306			338,943			84,096			152,818			636,163
Nominal yield	2.14		%	2.10		%	4.83		%	5.91		%	3.31		%
Residential mortgage-backed securities:
Carrying value													$	35,750		³
Fair value													37,463
Nominal yield⁴													2.74		%
Total investment securities:
Carrying value													$	652,360
Fair value													673,626
Nominal yield													3.28		%


¹	Calculated on a taxable equivalent basis using a 39% effective tax rate.


²	Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty.


³	The average expected lives of residential mortgage-backed securities were 2.8 years based upon current prepayment assumptions.


⁴	The nominal yield on residential mortgage-backed securities is based upon prepayment assumptions at the purchase date. Actual yields earned may differ significantly based upon actual prepayments. See Quarterly Financial Summary - Unaudited for current yields on the investment securities portfolio.

Available For Sale Securities [Table Text Block]

The amortized cost and fair value of available for sale securities are as follows (in thousands):



	December 31, 2014
	Amortized		Fair		Gross Unrealized¹
	Cost		Value		Gain		Loss			OTTI²
U.S. Treasury securities	$	1,005	$	1,005	$	—	$	—		$	—
Municipal and other tax-exempt securities	63,018		63,557		1,280		(741		)	—
Residential mortgage-backed securities:
U. S. government agencies:
FNMA	3,932,200		3,997,428		71,200		(5,972		)	—
FHLMC	1,810,476		1,836,870		29,043		(2,649		)	—
GNMA	801,820		807,443		8,240		(2,617		)	—
Other	4,808		5,143		335		—			—
Total U.S. government agencies	6,549,304		6,646,884		108,818		(11,238		)	—
Private issue:
Alt-A loans	65,582		71,952		6,677		—			(307		)
Jumbo-A loans	88,778		94,005		5,584		—			(357		)
Total private issue	154,360		165,957		12,261		—			(664		)
Total residential mortgage-backed securities	6,703,664		6,812,841		121,079		(11,238		)	(664		)
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,064,091		2,048,609		4,437		(19,919		)	—
Other debt securities	9,438		9,212		26		(252		)	—
Perpetual preferred stock	22,171		24,277		2,183		(77		)	—
Equity securities and mutual funds	18,603		19,444		871		(30		)	—
Total	$	8,881,990	$	8,978,945	$	129,876	$	(32,257	)	$	(664	)


¹	Gross unrealized gain/loss recognized in AOCI in the consolidated balance sheet.


²	Amounts represent unrealized loss that remains in AOCI after an other-than-temporary credit loss has been recognized in income.



	December 31, 2013
	Amortized		Fair		Gross Unrealized¹
	Cost		Value		Gain		Loss			OTTI²
U.S. Treasury securities	$	1,042	$	1,042	$	—	$	—		$	—
Municipal and other tax-exempt securities	73,232		73,775		1,606		(1,063		)	—
Residential mortgage-backed securities:
U. S. government agencies:
FNMA	4,224,327		4,232,332		68,154		(60,149		)	—
FHLMC	2,308,341		2,293,943		25,813		(40,211		)	—
GNMA	1,151,225		1,152,128		9,435		(8,532		)	—
Other	36,296		37,607		1,311		—			—
Total U.S. government agencies	7,720,189		7,716,010		104,713		(108,892		)	—
Private issue:
Alt-A loans	104,559		107,212		4,386		—			(1,733		)
Jumbo-A loans	109,622		113,887		4,974		—			(709		)
Total private issue	214,181		221,099		9,360		—			(2,442		)
Total residential mortgage-backed securities	7,934,370		7,937,109		114,073		(108,892		)	(2,442		)
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,100,146		2,055,804		1,042		(45,384		)	—
Other debt securities	35,061		35,241		368		(188		)	—
Perpetual preferred stock	22,171		22,863		705		(13		)	—
Equity securities and mutual funds	19,069		21,328		2,326		(67		)	—
Total	$	10,185,091	$	10,147,162	$	120,120	$	(155,607	)	$	(2,442	)


¹	Gross unrealized gain/loss recognized in AOCI in the consolidated balance sheet.


²	Amounts represent unrealized loss that remains in AOCI after an other-than-temporary credit loss has been recognized in income.

The amortized cost and fair values of available for sale securities at December 31, 2014, by contractual maturity, are as shown in the following table (dollars in thousands):



	Less than One Year			One to Five Years			Six to Ten Years			Over Ten Years⁶			Total			Weighted Average Maturity⁵
U.S. Treasury securities:
Amortized cost	$	1,005		$	—		$	—		$	—		$	1,005		0.13
Fair value	1,005			—			—			—			1,005
Nominal yield	0.24		%	—		%	—		%	—		%	0.24		%
Municipal and other tax-exempt securities:
Amortized cost	7,134			29,750			2,288			23,846			63,018			8.27
Fair value	7,197			30,603			2,496			23,261			63,557
Nominal yield¹	3.68		%	4.05		%	6.48		%	1.92		%	3.29		%
Commercial mortgage-backed securities:
Amortized cost	—			912,178			808,792			343,121			2,064,091			8.56
Fair value	—			906,081			803,324			339,204			2,048,609
Nominal yield	—		%	1.43		%	1.68		%	1.33		%	1.51		%
Other debt securities:
Amortized cost	5,038			—			—			4,400			9,438			15.38
Fair value	5,065			—			—			4,147			9,212
Nominal yield	2.12		%	—		%	—		%	1.71		%	1.93		%
Total fixed maturity securities:
Amortized cost	$	13,177		$	941,928		$	811,080		$	371,367		$	2,137,552		8.58
Fair value	13,267			936,684			805,820			366,612			2,122,383
Nominal yield	2.82		%	1.52		%	1.69		%	1.38		%	1.57		%
Residential mortgage-backed securities:
Amortized cost													$	6,703,664		²
Fair value													6,812,841
Nominal yield⁴													1.95		%
Perpetual preferred stock. equity securities and mutual funds:
Amortized cost													$	40,774		³
Fair value													43,721
Nominal yield													1.28		%
Total available-for-sale securities:
Amortized cost													$	8,881,990
Fair value													8,978,945
Nominal yield													1.85		%


¹	Calculated on a taxable equivalent basis using a 39% effective tax rate.


²	The average expected lives of mortgage-backed securities were 3.4 years based upon current prepayment assumptions.


³	Primarily common stock and preferred stock of corporate issuers with no stated maturity.


⁴	The nominal yield on mortgage-backed securities is based upon prepayment assumptions at the purchase date. Actual yields earned may differ significantly based upon actual prepayments. See Quarterly Financial Summary –– Unaudited following for current yields on available for sale securities portfolio.


⁵	Expected maturities may differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without penalty.


⁶	Nominal yield on municipal and other tax-exempt securities and other debt securities with contractual maturity dates over ten years are based on variable rates which generally are reset within 35 days.

Sales of available for sale securities resulted in gains and losses as follows (in thousands):



	Year Ended December 31,
	2014			2013			2012
Proceeds	$	2,664,740		$	2,436,093		1,744,662
Gross realized gains	24,923			25,711			41,191
Gross realized losses	(23,384		)	(14,991		)	(7,346	)
Related federal and state income tax expense	599			4,170			13,166

Securities Pledged As Collateral [Table Text Block]

A summary of investment and available for sale securities that have been pledged as collateral for repurchase agreements, public trust funds on deposit and for other purposes, as required by law was as follows (in thousands):



	December 31,
	2014		2013
Investment:
Carrying value	$	63,495	$	89,087
Fair value	65,855		91,804

Available for sale:
Amortized cost	5,855,220		5,171,782
Fair value	5,893,972		5,133,530

Schedule of Unrealized Loss on Investments [Table Text Block]

Temporarily Impaired Securities as of December 31, 2014

(In thousands)



	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Investment:
Municipal and other tax-exempt securities	78	$	112,677	$	426	$	60,076	$	525	$	172,753	$	951
Other debt securities	84	31,274		637		761		20		32,035		657
Total investment securities	162	$	143,951	$	1,063	$	60,837	$	545	$	204,788	$	1,608



	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for sale:
Municipal and other tax-exempt securities	22	$	10,838	$	12	$	12,176	$	729	$	23,014	$	741
Residential mortgage-backed securities:
U. S. government agencies:
FNMA	24	257,854		547		454,394		5,425		712,248		5,972
FHLMC	16	62,950		37		310,834		2,612		373,784		2,649
GNMA	5	8,550		12		128,896		2,605		137,446		2,617
Total U.S. agencies	45	329,354		596		894,124		10,642		1,223,478		11,238
Private issue¹:
Alt-A loans	4	11,277		307		—		—		11,277		307
Jumbo-A loans	8	—		—		10,020		357		10,020		357
Total private issue	12	11,277		307		10,020		357		21,297		664
Total residential mortgage-backed securities	57	340,631		903		904,144		10,999		1,244,775		11,902
Commercial mortgage-backed securities guaranteed by U.S. government agencies	104	223,106		454		1,238,376		19,465		1,461,482		19,919
Other debt securities	2	—		—		4,150		252		4,150		252
Perpetual preferred stock	2	2,898		77		—		—		2,898		77
Equity securities and mutual funds	68	—		—		1,205		30		1,205		30
Total available for sale securities	255	$	577,473	$	1,446	$	2,160,051	$	31,475	$	2,737,524	$	32,921


¹	Includes securities for which an unrealized loss remains in AOCI after an other-than-temporary credit loss has been recognized in income.

Temporarily Impaired Securities as of December 31, 2013

(In thousands)



	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Investment:
Municipal and other tax- exempt securities	107	$	166,382	$	1,921	$	53,073	$	848	$	219,455	$	2,769
U.S. Agency residential mortgage-backed securities – Other	2	15,224		56		—		—		15,224		56
Other debt securities	30	10,932		549		777		64		11,709		613
Total investment securities	139	$	192,538	$	2,526	$	53,850	$	912	$	246,388	$	3,438



	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for sale:
Municipal and other tax-exempt securities	27	$	13,286	$	245	$	17,805	$	818	$	31,091	$	1,063
Residential mortgage-backed securities:
U. S. government agencies:
FNMA	81	2,281,491		60,149		—		—		2,281,491		60,149
FHLMC	50	1,450,588		40,211		—		—		1,450,588		40,211
GNMA	27	647,058		8,532		—		—		647,058		8,532
Total U.S. agencies	158	4,379,137		108,892		—		—		4,379,137		108,892
Private issue¹:
Alt-A loans	7	11,043		756		30,774		977		41,817		1,733
Jumbo-A loans	9	14,642		709		—		—		14,642		709
Total private issue	16	25,685		1,465		30,774		977		56,459		2,442
Total residential mortgage-backed securities	174	4,404,822		110,357		30,774		977		4,435,596		111,334
Commercial mortgage-backed securities guaranteed by U.S. government agencies	123	1,800,717		45,302		2,286		82		1,803,003		45,384
Other debt securities	3	4,712		188		—		—		4,712		188
Perpetual preferred stock	1	4,988		13		—		—		4,988		13
Equity securities and mutual funds	118	2,070		67		—		—		2,070		67
Total available for sale securities	446	$	6,230,595	$	156,172	$	50,865	$	1,877	$	6,281,460	$	158,049


¹	Includes securities for which an unrealized loss remains in AOCI after an other-than-temporary credit loss has been recognized in income.

Schedule of Investments by Lowest Current Credit Rating [Table Text Block]

At December 31, 2014, the composition of the Company’s investment and available for sale securities portfolios by the lowest current credit rating assigned by any of the three nationally-recognized rating agencies is as follows (in thousands):



	U.S. Govt/GSE ¹				AAA - AA				A - BBB				Below Investment Grade				Not Rated				Total
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Investment:
Municipal and other tax-exempt	$	—	$	—	$	264,326	$	264,651	$	13,676	$	13,806	$	—	$	—	$	127,088	$	129,887	$	405,090	$	408,344
U.S. government agency mortgage-backed securities -- Other	35,750		37,463		—		—		—		—		—		—		—		—		35,750		37,463
Other debt securities	—		—		160,353		176,915		—		—		—		—		51,167		50,904		211,520		227,819
Total investment securities	$	35,750	$	37,463	$	424,679	$	441,566	$	13,676	$	13,806	$	—	$	—	$	178,255	$	180,791	$	652,360	$	673,626



	U.S. Govt / GSE ¹				AAA - AA				A - BBB				Below Investment Grade				Not Rated				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for Sale:
U.S. Treasury	$	1,005	$	1,005	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,005	$	1,005
Municipal and other tax-exempt	—		—		40,511		41,579		11,053		10,516		—		—		11,454		11,462		63,018		63,557
Residential mortgage-backed securities:
U. S. government agencies:
FNMA	3,932,200		3,997,428		—		—		—		—		—		—		—		—		3,932,200		3,997,428
FHLMC	1,810,476		1,836,870		—		—		—		—		—		—		—		—		1,810,476		1,836,870
GNMA	801,820		807,443		—		—		—		—		—		—		—		—		801,820		807,443
Other	4,808		5,143		—		—		—		—		—		—		—		—		4,808		5,143
Total U.S. government agencies	6,549,304		6,646,884		—		—		—		—		—		—		—		—		6,549,304		6,646,884
Private issue:
Alt-A loans	—		—		—		—		—		—		65,582		71,952		—		—		65,582		71,952
Jumbo-A loans	—		—		—		—		—		—		88,778		94,005		—		—		88,778		94,005
Total private issue	—		—		—		—		—		—		154,360		165,957		—		—		154,360		165,957
Total residential mortgage-backed securities	6,549,304		6,646,884		—		—		—		—		154,360		165,957		—		—		6,703,664		6,812,841
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,064,091		2,048,609		—		—		—		—		—		—		—		—		2,064,091		2,048,609
Other debt securities	—		—		4,400		4,149		5,038		5,063		—		—		—		—		9,438		9,212
Perpetual preferred stock	—		—		—		—		11,406		12,508		10,765		11,769		—		—		22,171		24,277
Equity securities and mutual funds	—		—		4		517		—		—		—		—		18,599		18,927		18,603		19,444
Total available for sale securities	$	8,614,400	$	8,696,498	$	44,915	$	46,245	$	27,497	$	28,087	$	165,125	$	177,726	$	30,053	$	30,389	$	8,881,990	$	8,978,945


¹	U.S. government and government sponsored enterprises are not rated by the nationally-recognized rating agencies as these securities are guaranteed by agencies of the U.S. government or government-sponsored enterprises.

Schedule of Primary Assumptions Used in Other-Than-Temporary Impairment Evaluation [Table Text Block]



	December 31,
	2014	2013

Unemployment rate	Held constant at 5.6% over the next 12 months and remain at 5.6% thereafter.	Increasing to 7.3% over the next 12 months and remain at 7.3% thereafter
Housing price appreciation/depreciation	Starting with current depreciated housing prices based on information derived from the FHFA¹, appreciating 3.2% over the next 12 months, then flat for the following 12 months and then appreciating at 2% per year thereafter.	Starting with current depreciated housing prices based on information derived from the FHFA¹, appreciating 4% over the next 12 months, then flat for the following 12 months and then appreciating at 2% per year thereafter.
Estimated liquidation costs	Reflect actual historical liquidations costs observed on Jumbo and Alt-A residential mortgage loans in securities owned by the Company.	Reflect actual historical liquidations costs observed on Jumbo and Alt-A residential mortgage loans in securities owned by the Company.
Discount rates	Estimated cash flows were discounted at rates that range from 2.00% to 6.25% based on our current expected yields.	Estimated cash flows were discounted at rates that range from 2.00% to 6.25% based on our current expected yields.

Schedule of Privately Issued Residential Mortgage-backed Securities [Table Text Block]



						Credit Losses Recognized
						Year Ended
						December 31, 2014			Life-to-date
	Number of Securities	Amortized Cost		Fair Value		Number of Securities	Amount		Number of Securities	Amount
Alt-A	14	$	65,582	$	71,952	—	$	—	14	$	36,127
Jumbo-A	30	88,778		94,005		—	—		29	18,220
Total	44	$	154,360	$	165,957	—	$	—	43	$	54,347

Rollforward Other-than-temporary Impairment Credit Losses Recognized in Earnings [Table Text Block]



	Year Ended December 31,
	2014			2013			2012
Balance of credit-related OTTI recognized on available for sale debt, beginning of period	$	67,346		$	75,228		$	76,131
Additions for credit-related OTTI not previously recognized	—			618			113
Additions for increases in credit-related OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost	—			320			6,780
Reductions for change in intent to hold before recovery	—			(3,589		)	—
Sales	(12,999		)	(5,231		)	(7,796		)
Balance of credit-related OTTI recognized on available for sale debt securities, end of period	$	54,347		$	67,346		$	75,228

Schedule of Fair Value Option Securities [Table Text Block]

The fair value and net unrealized gain (loss) included in Fair value option securities is as follows (in thousands):



	December 31, 2014				December 31, 2013
	Fair Value		Net Unrealized Gain (Loss)		Fair Value		Net Unrealized Gain (Loss)
U.S. agency residential mortgage-backed securities	$	311,597	$	1,624	$	157,431	$	(8,378	)
Other securities	—		—		9,694		209
Total	$	311,597	$	1,624	$	167,125	$	(8,169	)

Schedule of Cost Method Investments [Table Text Block]



	December 31,
	2014		2013
Federal Reserve Bank stock	$	35,018	$	33,742
Federal Home Loan Bank stock	106,476		51,498
Total	$	141,494	$	85,240