Securities (Tables)

3 Months Ended

Mar. 31, 2015

Summary of Portfolio of Securities Available for Sale

The following table summarizes the Company’s portfolio of securities available for sale at March 31, 2015:


	March 31, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE ⁽¹⁾ certificates	$	17,400	$	1,371	$	--	$	18,771
GSE CMOs ⁽²⁾		--		--		--		--
Private label CMOs		--		--		--		--

Total mortgage-related securities	$	17,400	$	1,371	$	--	$	18,771

Other Securities:
Municipal bonds	$	843	$	97	$	--	$	940
Capital trust notes		13,434		41		2,471		11,004
Preferred stock		118,205		8,098		--		126,303
Mutual funds and common stock ⁽³⁾		17,939		824		71		18,692

Total other securities	$	150,421	$	9,060	$	2,542	$	156,939

Total securities available for sale	$	167,821	$	10,431	$	2,542	$	175,710

(1)	Government-sponsored enterprise

(2)	Collateralized mortgage obligations

(3)	Primarily consists of mutual funds that are Community Reinvestment Act-qualified investments.

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2014:


	December 31, 2014
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	18,350	$	1,350	$	--	$	19,700
GSE CMOs		--		--		--		--
Private label CMOs		--		--		--		--

Total mortgage-related securities	$	18,350	$	1,350	$	--	$	19,700

Other Securities:
Municipal bonds	$	841	$	101	$	--	$	942
Capital trust notes		13,431		31		1,980		11,482
Preferred stock		118,205		5,246		440		123,011
Mutual funds and common stock		17,943		748		43		18,648

Total other securities	$	150,420	$	6,126	$	2,463	$	154,083

Total securities available for sale	$	168,770	$	7,476	$	2,463	$	173,783

Summary of Portfolio of Securities Held to Maturity

The following tables summarize the Company’s portfolio of securities held to maturity at March 31, 2015 and December 31, 2014:


	March 31, 2015
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,401,201	$	2,401,201	$	133,896	$	2,080	$	2,533,017
GSE CMOs		1,553,938		1,553,938		84,888		6		1,638,820

Total mortgage-related securities	$	3,955,139	$	3,955,139	$	218,784	$	2,086	$	4,171,837

Other Securities:
GSE debentures	$	2,632,327	$	2,632,327	$	29,242	$	9,104	$	2,652,465
Corporate bonds		73,426		73,426		12,446		--		85,872
Municipal bonds		58,376		58,376		--		352		58,024
Capital trust notes		74,419		65,615		5,316		10,928		60,003

Total other securities	$	2,838,548	$	2,829,744	$	47,004	$	20,384	$	2,856,364

Total securities held to maturity ⁽¹⁾	$	6,793,687	$	6,784,883	$	265,788	$	22,470	$	7,028,201

(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 March 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.8 million (before tax).


	December 31, 2014
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,468,791	$	2,468,791	$	106,414	$	3,838	$	2,571,367
GSE CMOs		1,610,243		1,610,243		65,075		711		1,674,607

Total mortgage-related securities	$	4,079,034	$	4,079,034	$	171,489	$	4,549	$	4,245,974

Other Securities:
GSE debentures	$	2,635,989	$	2,635,989	$	24,173	$	32,920	$	2,627,242
Corporate bonds		73,317		73,317		12,113		--		85,430
Municipal bonds		58,682		58,682		--		1,027		57,655
Capital trust notes		84,476		75,645		5,193		11,168		69,670

Total other securities	$	2,852,464	$	2,843,633	$	41,479	$	45,115	$	2,839,997

Total securities held to maturity ⁽¹⁾	$	6,931,498	$	6,922,667	$	212,968	$	49,664	$	7,085,971

(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, 2014, the non-credit portion of OTTI recorded in AOCL was $8.8 million (before tax).

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 three months ended March 31, 2015 and 2014:


	For the Three Months Ended March 31,
(in thousands)	2015		2014
Gross proceeds		$135,211		$136,747
Gross realized gains		211		4,873
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, 2015. 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 Three Months Ended March 31, 2015
Beginning credit loss amount as of December 31, 2014		$199,008
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 March 31, 2015		$199,008

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 mortgage-backed securities and debt securities, and the amortized costs and estimated fair values of available-for-sale securities, at March 31, 2015, by contractual maturity.


	At March 31, 2015
(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			--		--			60,060		4.17			756		2.96			--		--			66,125
Due from five to ten years			3,119,709		3.23			2,572,267		2.70			--		--			47,425		3.15			5,932,713
Due after ten years			835,430		3.27			--		--			57,620		2.85			91,616		5.76			1,029,363

Total securities held to maturity		$	3,955,139		3.24%		$	2,632,327		2.73%		$	58,376		2.85%		$	139,041		4.87%		$	7,028,201

Available-for-Sale Securities: ⁽³⁾
Due within one year		$	1		4.41%		$	--		--%		$	124		6.45%		$	--		--%		$	129
Due from one to five years			3,327		6.72			--		--			579		6.49			--		--			4,111
Due from five to ten years			3,112		3.78			--		--			140		6.66			--		--			3,505
Due after ten years			10,960		4.67			--		--			--		--			13,434		5.70			22,970

Total securities available for sale		$	17,400		4.90%		$	--		--%		$	843		6.51%		$	13,434		5.70%		$	30,715

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

(2)	Includes corporate bonds and capital trust notes. Included in capital trust notes are $183,000 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 securities and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2015:


At March 31, 2015 (in thousands)	Less than Twelve Months						Twelve Months or Longer						Total
At March 31, 2015 (in thousands)	Fair Value			Unrealized Loss			Fair Value			Unrealized Loss			Fair Value			Unrealized Loss
Temporarily Impaired Held-to-Maturity Mortgage-Backed Securities and Debt Securities:
GSE debentures		$	809,531		$	2,412		$	1,392,128		$	6,692		$	2,201,659		$	9,104
GSE certificates			165,674			1,882			13,233			198			178,907			2,080
GSE CMOs			--			--			20,102			6			20,102			6
Municipal bonds			58,024			352			--			--			58,024			352
Capital trust notes			--			--			25,265			10,928			25,265			10,928

Total temporarily impaired held-to-maturity mortgage-backed securities and debt securities		$	1,033,229		$	4,646		$	1,450,728		$	17,824		$	2,483,957		$	22,470

Temporarily Impaired Available-for-Sale Securities:
Capital trust notes		$	--		$	--		$	4,964		$	2,471		$	4,964		$	2,471
Equity securities			--			--			991			71			991			71

Total temporarily impaired available-for-sale securities		$	--		$	--		$	5,955		$	2,542		$	5,955		$	2,542


At December 31, 2014	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 Mortgage-Backed Securities and Debt Securities:
GSE debentures		$	--		$	--		$	2,204,399		$	32,920		$	2,204,399		$	32,920
GSE certificates			--			--			242,909			3,838			242,909			3,838
GSE CMOs			--			--			72,209			711			72,209			711
Municipal bonds			13,735			195			43,058			832			56,793			1,027
Capital trust notes			--			--			25,019			11,168			25,019			11,168

Total temporarily impaired held-to-maturity mortgage-backed securities and debt securities		$	13,735		$	195		$	2,587,594		$	49,469		$	2,601,329		$	49,664

Temporarily Impaired Available-for-Sale Securities:
Capital trust notes		$	--		$	--		$	5,451		$	1,980		$	5,451		$	1,980
Equity securities			53,721			364			15,174			119			68,895			483

Total temporarily impaired available-for-sale securities		$	53,721		$	364		$	20,625		$	2,099		$	74,346		$	2,463

- 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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