Securities (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Portfolio of Securities Available for Sale

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2013:


	December 31, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE⁽¹⁾ certificates	$	23,759	$	1,442	$	1	$	25,200
GSE CMOs⁽²⁾		62,082		598		1,861		60,819
Private label CMOs		10,214		—		12		10,202

Total mortgage-related securities	$	96,055	$	2,040	$	1,874	$	96,221

Other Securities:
Municipal bonds	$	957	$	69	$	—	$	1,026
Capital trust notes		13,419		60		1,681		11,798
Preferred stock		118,205		1,936		3,902		116,239
Common stock		51,654		4,093		293		55,454

Total other securities	$	184,235	$	6,158	$	5,876	$	184,517

Total securities available for sale	$	280,290	$	8,198	$	7,750	$	280,738

(1)

Government-sponsored enterprise

(2)

Collateralized mortgage obligations

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2012:


	December 31, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	85,488	$	7,197	$	6	$	92,679
GSE CMOs		62,236		4,924		—		67,160
Private label CMOs		17,276		140		—		17,416

Total mortgage-related securities	$	165,000	$	12,261	$	6	$	177,255

Other Securities:
Municipal bonds	$	46,288	$	128	$	120	$	46,296
Capital trust notes		35,231		7,363		4,159		38,435
Preferred stock		118,205		6,843		30		125,018
Common stock		43,984		1,191		2,913		42,262

Total other securities	$	243,708	$	15,525	$	7,222	$	252,011

Total securities available for sale ⁽¹⁾	$	408,708	$	27,786	$	7,228	$	429,266

(1)

At December 31, 2012, the non-credit portion of OTTI recorded in AOCL was $570,000 (before taxes).

Summary of Portfolio of Securities Held to Maturity

The following tables summarize the Company’s portfolio of securities held to maturity at December 31, 2013 and 2012:


	December 31, 2013
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,529,102	$	2,529,102	$	30,145	$	61,280	$	2,497,967
GSE CMOs		1,878,885		1,878,885		29,330		22,520		1,885,695

Total mortgage-related securities	$	4,407,987	$	4,407,987	$	59,475	$	83,800	$	4,383,662

Other Securities:
GSE debentures	$	3,053,253	$	3,053,253	$	6,512	$	208,506	$	2,851,259
Corporate bonds		72,899		72,899		11,063		—		83,962
Municipal bonds		60,462		60,462		19		3,849		56,632
Capital trust notes		84,871		75,681		3,134		9,086		69,729

Total other securities	$	3,271,485	$	3,262,295	$	20,728	$	221,441	$	3,061,582

Total securities held to maturity ⁽¹⁾	$	7,679,472	$	7,670,282	$	80,203	$	305,241	$	7,445,244

(1)

Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2013, the non-credit portion of OTTI recorded in AOCL was $9.2 million (before taxes).


	December 31, 2012
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	1,253,769	$	1,253,769	$	87,860	$	5	$	1,341,624
GSE CMOs		1,898,228		1,898,228		104,764		—		2,002,992
Other mortgage-related securities		3,220		3,220		—		—		3,220

Total mortgage-related securities	$	3,155,217	$	3,155,217	$	192,624	$	5	$	3,347,836

Other Securities:
GSE debentures	$	1,129,618	$	1,129,618	$	15,739	$	—	$	1,145,357
Corporate bonds		72,501		72,501		12,504		—		85,005
Municipal bonds		16,982		16,982		245		—		17,227
Capital trust notes		131,513		109,944		14,588		13,997		110,535

Total other securities	$	1,350,614	$	1,329,045	$	43,076	$	13,997	$	1,358,124

Total securities held to maturity ⁽¹⁾	$	4,505,831	$	4,484,262	$	235,700	$	14,002	$	4,705,960

(1)

At December 31, 2012, the non-credit portion of OTTI recorded in AOCL was $21.6 million (before taxes).

Summary of Gross Proceeds, Gross Realized Gains, and Gross Realized Losses from Sale of Available-for-Sale Securities

The following table summarizes the gross proceeds, gross realized gains, and gross realized losses from the sale of available-for-sale securities during the years ended December 31, 2013, 2012 and 2011:


	December 31,
(in thousands)	2013		2012		2011
Gross proceeds	$	631,802	$	822,618	$	862,755
Gross realized gains		9,529		2,041		28,116
Gross realized losses		45		—		11

Credit Loss Component of Other Than Temporary Impairment on Debt Securities

In the following table, the beginning balance represents the credit loss component for debt securities for which OTTI occurred prior to January 1, 2013. For credit-impaired debt securities, OTTI recognized in earnings after that date is presented as an addition in two components, based upon whether the current period is the first time a debt security was credit-impaired (initial credit impairment) or is not the first time a debt security was credit-impaired (subsequent credit impairment).


(in thousands)	For the Twelve Months Ended December 31, 2013
Beginning credit loss amount as of December 31, 2012	$	219,978
Add: Initial other-than-temporary credit losses		612
Subsequent other-than-temporary credit losses		—
Amount previously recognized in AOCL		—
Less: Realized losses for securities sold		—
Securities intended or required to be sold		—
Increases in expected cash flows on debt securities		4,256

Ending credit loss amount as of December 31, 2013	$	216,334

Summary of Carrying Amount and Estimated Fair Value of Held-to-Maturity Debt Securities and Amortized Cost and Estimated Fair Value of Available-for-Sale Debt Securities by Contractual Maturity

The following table summarizes the carrying amounts and estimated fair values of held-to-maturity debt securities, and the amortized costs and estimated fair values of available-for-sale debt securities, at December 31, 2013, by contractual maturity. Mortgage-related securities held to maturity and available for sale, all of which have prepayment provisions, are distributed to a maturity category based on the ends of the estimated average lives of such securities. Principal and amortization prepayments are not shown in maturity categories as they occur, but are considered in the determination of estimated average life.


	At December 31, 2013
(dollars in thousands)	Mortgage- Related Securities		Average Yield			U.S. Treasury and GSE Obligations		Average Yield			State, County, and Municipal		Average Yield ⁽¹⁾			Other Debt Securities ⁽²⁾		Average Yield			Fair Value
Held-to-Maturity Securities:
Due within one year	$	—		—	%	$	—		—	%	$	—		—	%	$	—		—	%	$	—
Due from one to five years		—		—			60,379		4.17			1,280		2.96			—		—			67,940
Due from five to ten years		3,222,498		3.24			2,632,125		2.72			—		—			46,996		3.14			5,679,202
Due after ten years		1,185,489		3.34			360,749		3.48			59,182		2.86			101,584		5.80			1,698,102

Total debt securities held to maturity	$	4,407,987		3.27	%	$	3,053,253		2.84	%	$	60,462		2.86	%	$	148,580		4.96	%	$	7,445,244

Available-for-Sale Securities: ⁽³⁾
Due within one year	$	5		1.20	%	$	—		—	%	$	124		6.09	%	$	—		—	%	$	134
Due from one to five years		6,418		6.88			—		—			554		6.45			—		—			7,455
Due from five to ten years		18,961		3.72			—		—			279		6.63			—		—			20,018
Due after ten years		70,671		3.87			—		—			—		—			13,419		5.70			81,438

Total debt securities available for sale	$	96,055		4.04	%	$	—		—	%	$	957		6.46	%	$	13,419		5.70	%	$	109,045

(1)

Not presented on a tax-equivalent basis.

(2)

Includes corporate bonds and capital trust notes. Included in capital trust notes are $410,000 of pooled trust preferred securities held to maturity, all of which are due after ten years. The remaining capital trust notes consist of single-issue trust preferred securities.

(3)

As equity securities have no contractual maturity, they have been excluded from this table.

Summary of Held-to-Maturity and Available-for-Sale Securities having Continuous Unrealized Loss Position

The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2013:


At December 31, 2013	Less than Twelve Months				Twelve Months or Longer				Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Held-to-Maturity Debt Securities:
GSE debentures	$	2,777,417	$	208,506	$	—	$	—	$	2,777,417	$	208,506
GSE Certificates		1,684,793		61,280		—		—		1,684,793		61,280
GSE CMOs		936,691		22,520		—		—		936,691		22,520
Municipal notes/bonds		55,333		3,849		—		—		55,333		3,849
Capital trust notes		24,900		100		37,181		8,986		62,081		9,086

Total temporarily impaired held-to-maturity debt securities	$	5,479,134	$	296,255	$	37,181	$	8,986	$	5,516,315	$	305,241

Temporarily Impaired Available-for-Sale Securities:
Debt Securities:
GSE certificates	$	—	$	—	$	110	$	1	$	110	$	1
Private label CMOs		10,202		12		—		—		10,202		12
GSE CMOs		44,725		1,861		—		—		44,725		1,861
Capital trust notes		1,992		8		5,746		1,673		7,738		1,681

Total temporarily impaired available-for-sale debt securities	$	56,919	$	1,881	$	5,856	$	1,674	$	62,775	$	3,555
Equity securities		75,886		4,195		—		—		75,886		4,195

Total temporarily impaired available-for-sale securities	$	132,805	$	6,076	$	5,856	$	1,674	$	138,661	$	7,750


At December 31, 2012	Less than Twelve Months				Twelve Months or Longer					Total
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Temporarily Impaired Held-to-Maturity Debt Securities:
GSE debentures	$	—	$	—	$	—	$	—		$	—	$	—
GSE certificates		2,238		5		—		—			2,238		5
Capital trust notes		—		—		32,148		13,997			32,148		13,997

Total temporarily impaired held-to-maturity debt securities	$	2,238	$	5	$	32,148	$	13,997		$	34,386	$	14,002

Temporarily Impaired Available-for-Sale Securities:
Debt Securities:
GSE certificates	$	297	$	5	$	53	$	1		$	350	$	6
State, county, and municipal		45,096		120		—		—			45,096		120
Capital trust notes		—		—		4,371		4,159			4,371		4,159

Total temporarily impaired available-for-sale debt securities	$	45,393	$	125	$	4,424	$	4,160		$	49,817	$	4,285
Equity securities		15,262		30		28,989		2,913	⁽¹⁾		44,251		2,943

Total temporarily impaired available-for-sale securities	$	60,655	$	155	$	33,413	$	7,073		$	94,068	$	7,228

(1)

The twelve months or longer unrealized losses on equity securities of $2.9 million at December 31, 2012 relate to available-for-sale equity securities that consisted of a large cap equity fund and investments in certain financial institutions. The principal balance of the large cap equity fund was $30.2 million and the twelve months or longer unrealized loss was $2.2 million at that date. The principal balance of investments in financial institutions totaled $1.7 million and the twelve months or longer unrealized loss was $709,000 at that date.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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