Securities (Tables)

6 Months Ended

Jun. 30, 2014

Summary of Portfolio of Securities Available for Sale

The following table summarizes the Company’s portfolio of securities available for sale at June 30, 2014:


	June 30, 2014
(in thousands)	Amortized Cost			Gross Unrealized Gain			Gross Unrealized Loss			Fair Value
Mortgage-Related Securities:
GSE ⁽¹⁾ certificates		$	20,127		$	1,585		$	--		$	21,712
GSE CMOs ⁽²⁾			59,530			904			1,072			59,362
Private label CMOs			9,531			--			66			9,465

Total mortgage-related securities		$	89,188		$	2,489		$	1,138		$	90,539

Other Securities:
Municipal bonds		$	961		$	114		$	--		$	1,075
Capital trust notes			13,425			71			1,565			11,931
Preferred stock			118,205			4,960			381			122,784
Common stock			18,080			660			22			18,718

Total other securities		$	150,671		$	5,805		$	1,968		$	154,508

Total securities available for sale		$	239,859		$	8,294		$	3,106		$	245,047

(1)	Government-sponsored enterprise

(2)	Collateralized mortgage obligations

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 certificates		$	23,759		$	1,442		$	1		$	25,200
GSE CMOs			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

Summary of Portfolio of Securities Held to Maturity

The following tables summarize the Company’s portfolio of securities held to maturity at June 30, 2014 and December 31, 2013:


	June 30, 2014
(in thousands)	Amortized Cost			Carrying Amount			Gross Unrealized Gain			Gross Unrealized Loss			Fair Value
Mortgage-Related Securities:
GSE certificates		$	2,520,996		$	2,520,996		$	81,225		$	13,971		$	2,588,250
GSE CMOs			1,808,830			1,808,830			66,951			3,087			1,872,694

Total mortgage-related securities		$	4,329,826		$	4,329,826		$	148,176		$	17,058		$	4,460,944

Other Securities:
GSE debentures		$	3,009,861		$	3,009,861		$	18,718		$	82,230		$	2,946,349
Corporate bonds			73,105			73,105			12,156			--			85,261
Municipal bonds			59,577			59,577			8			1,842			57,743
Capital trust notes			84,676			75,542			4,733			7,821			72,454

Total other securities		$	3,227,219		$	3,218,085		$	35,615		$	91,893		$	3,161,807

Total securities held to maturity ⁽¹⁾		$	7,557,045		$	7,547,911		$	183,791		$	108,951		$	7,622,751

(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 June 30, 2014, the non-credit portion of OTTI recorded in AOCL was $9.1 million (before taxes).


	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).

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 six months ended June 30, 2014 and 2013:


	For the Six Months Ended June 30,
(in thousands)	2014		2013
Gross proceeds		$137,309		$414,186
Gross realized gains		5,135		5,193
Gross realized losses		--		--

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 on which OTTI occurred prior to January 1, 2014. 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 Six Months Ended June 30, 2014
Beginning credit loss amount as of December 31, 2013		$216,334
Add: Initial other-than-temporary credit losses		--
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		--

Ending credit loss amount as of June 30, 2014		$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 June 30, 2014, 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 June 30, 2014
(dollars in thousands)	Mortgage- Related Securities			Average Yield		U.S. Treasury and GSE Obligations			Average Yield		Municipal Bonds			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			--		--			60,254		4.17			1,072		2.96			--		--			67,420
Due from five to ten years			3,237,916		3.23			2,779,002		2.74			--		--			47,165		3.14			6,090,577
Due after ten years			1,091,910		3.36			170,605		3.58			58,505		2.85			101,482		5.80			1,464,754

Total debt securities held to maturity		$	4,329,826		3.27%		$	3,009,861		2.82%		$	59,577		2.86%		$	148,647		4.96%		$	7,622,751

Available-for-Sale Securities: ⁽³⁾
Due within one year		$	--		--%		$	--		--%		$	124		6.09%		$	--		--%		$	127
Due from one to five years			4,449		6.85			--		--			557		6.45			--		--			5,357
Due from five to ten years			16,255		3.74			--		--			280		6.63			--		--			17,704
Due after ten years			68,484		3.54			--		--			--		--			13,425		5.67			80,357

Total debt securities available for sale		$	89,188		3.74%		$	--		--%		$	961		6.46%		$	13,425		5.67%		$	103,545

(1)	Not presented on a tax-equivalent basis.

(2)	Consists of corporate bonds and capital trust notes. Included in capital trust notes are $208,000 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 June 30, 2014:


At June 30, 2014 (in thousands)	Less than Twelve Months				Twelve Months or Longer				Total
At June 30, 2014 (in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Held-to-Maturity Debt Securities:
GSE debentures		$ --		$ --		$2,155,070		$ 82,230		$2,155,070		$ 82,230
GSE certificates		--		--		673,205		13,971		673,205		13,971
GSE CMOs		3,302		10		148,008		3,077		151,310		3,087
Municipal bonds		--		--		56,663		1,842		56,663		1,842
Capital trust notes		--		--		38,356		7,821		38,356		7,821

Total temporarily impaired held-to-maturity debt securities		$ 3,302		$ 10		$3,071,302		$108,941		$3,074,604		$108,951

Temporarily Impaired Available-for-Sale Securities:
Debt Securities:
Private label CMOs		$ 9,464		$ 66		$ --		$ --		$ 9,464		$ 66
GSE CMOs		--		--		45,539		1,072		45,539		1,072
Capital trust notes		--		--		5,860		1,565		5,860		1,565

Total temporarily impaired available-for-sale debt securities		$ 9,464		$ 66		$ 51,399		$ 2,637		$ 60,863		$ 2,703
Equity securities		43,975		403		--		--		43,975		403

Total temporarily impaired available-for-sale securities		$53,439		$469		$ 51,399		$ 2,637		$ 104,838		$ 3,106


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 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

- 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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