Securities (Tables)

6 Months Ended

Jun. 30, 2016

Summary of Portfolio of Securities Available for Sale

The following tables summarize the Company’s portfolio of securities available for sale at June 30, 2016 and December 31, 2015:

	June 30, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Municipal bonds	$	729	$	82	$	—	$	811
Capital trust notes		9,451		—		2,658		6,793
Preferred stock		118,205		10,869		31		129,043
Mutual funds and common stock (1)		16,877		746		—		17,623
Total securities available for sale	$	145,262	$	11,697	$	2,689	$	154,270

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

	December 31, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates (1)	$	53,820	$	33	$	1	$	53,852
Other Securities:
Municipal bonds	$	725	$	70	$	—	$	795
Capital trust notes		9,444		—		2,480		6,964
Preferred stock		118,205		7,415		248		125,372
Common stock		16,877		470		75		17,272
Total other securities	$	145,251	$	7,955	$	2,803	$	150,403
Total securities available for sale	$	199,071	$	7,988	$	2,804	$	204,255

(1) Government-sponsored enterprise.

Summary of Portfolio of Securities Held to Maturity

The following tables summarize the Company’s portfolio of securities held to maturity at June 30, 2016 and December 31, 2015:

	June 30, 2016
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,239,688	$	2.239,688	$	169,049	$	—	$	2,408,737
GSE CMOs (1)		1,190,119		1,190,119		86,810		—		1,276,929
Total mortgage-related securities	$	3,429,807	$	3,429,807	$	255,859	$	—	$	3,685,666
Other Securities:
GSE debentures	$	179,366	$	179,366	$	14,326	$	—	$	193,692
Municipal bonds		73,792		73,792		2,984		—		76,776
Corporate bonds		73,983		73,983		10,706		—		84,689
Capital trust notes		74,269		65,613		3,320		16,022		52,911
Total other securities	$	401,410	$	392,754	$	31,336	$	16,022	$	408,068
Total securities held to maturity (2)	$	3,831,217	$	3,822,561	$	287,195	$	16,022	$	4,093,734

(1) Collateralized mortgage obligations.

(2) Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in Accumulated Other Comprehensive Loss (“AOCL”). At June 30, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax.

	December 31, 2015
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,269,828	$	2,269,828	$	76,827	$	4,722	$	2,341,933
GSE CMOs		1,325,033		1,325,033		53,236		57		1,378,212
Total mortgage-related securities	$	3,594,861	$	3,594,861	$	130,063	$	4,779	$	3,720,145
Other Securities:
GSE debentures	$	2,159,856	$	2,159,856	$	23,892	$	7,568	$	2,176,180
Municipal bonds		75,317		75,317		262		1,084		74,495
Corporate bonds		73,756		73,756		10,503		—		84,259
Capital trust notes		74,317		65,600		3,750		15,900		53,450
Total other securities	$	2,383,246	$	2,374,529	$	38,407	$	24,552	$	2,388,384
Total securities held to maturity (1)	$	5,978,107	$	5,969,390	$	168,470	$	29,331	$	6,108,529

(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, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax.

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

The following table summarizes the gross proceeds and gross realized gains from the sale of available-for-sale securities during the six months ended June 30, 2016 and 2015:

	For the Six Months Ended June 30,
(in thousands)	2016		2015
Gross proceeds	$	112,676	$	166,760
Gross realized gains		176		260

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, 2016. 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, 2016
Beginning credit loss amount as of January 1, 2016	$	198,766
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		—
Increase in expected cash flows on debt securities		—
Ending credit loss amount as of June 30, 2016	$	198,766

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 June 30, 2016, by contractual maturity.

	At June 30, 2016
(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	$	—		—	%	$	—		—	%	$	219		2.96	%	$	—		—	%	$	219
Due from one to five years		555,797		3.76			66,673		4.14			—		—			—		—			676,824
Due from five to ten years		2,482,830		3.11			112,693		3.45			—		—			64,313		4.75			2,867,505
Due after ten years		391,180		2.98			—		—			73,573		2.89			75,283		5.20			549,186
Total securities held to maturity	$	3,429,807		3.20	%	$	179,366		3.71	%	$	73,792		2.89	%	$	139,596		4.99	%	$	4,093,734
Available-for-Sale Securities: (3)
Due within one year	$	—		—	%	$	—		—	%	$	149		6.39	%	$	—		—	%	$	153
Due from one to five years		—		—			—		—			580		6.56			—		—			658
Due from five to ten years		—		—			—		—			—		—			—		—			—
Due after ten years		—		—			—		—			—		—			9,451		4.48			6,793
Total securities available for sale	$	—		—	%	$	—		—	%	$	729		6.52	%	$	9,451		4.48	%	$	7,604

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

(2) Includes corporate bonds and capital trust notes

(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, 2016:

At June 30, 2016	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 Securities:
GSE certificates	$	—	$	—	$	—	$	—	$	—	$	—
GSE CMOs		—		—		—		—		—		—
Municipal bonds		—		—		—		—		—		—
Capital trust notes		—		—		45,201		16,022		45,201		16,022
Total temporarily impaired held-to-maturity securities	$	—	$	—	$	45,201	$	16,022	$	45,201	$	16,022
Temporarily Impaired Available-for-Sale Securities:
Capital trust notes	$	—	$	—	$	6,793	$	2,658	$	6,793	$	2,658
Equity securities		15,262		31		—		—		15,262		31
Total temporarily impaired available-for-sale securities	$	15,262	$	31	$	6,793	$	2,658	$	22,055	$	2,689

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, 2015:

At December 31, 2015	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 Securities:
GSE debentures	$	547,484	$	728	$	1,176,949	$	6,840	$	1,724,433	$	7,568
GSE certificates		299,019		4,608		3,899		114		302,918		4,722
GSE CMOs		9,943		57		—		—		9,943		57
Municipal bonds		42,083		1,084		—		—		42,083		1,084
Capital trust notes		24,601		399		20,710		15,501		45,311		15,900
Total temporarily impaired held-to-maturity securities	$	923,130	$	6,876	$	1,201,558	$	22,455	$	2,124,688	$	29,331
Temporarily Impaired Available-for-Sale Securities:
GSE certificates	$	51,959	$	1	$	—	$	—	$	51,959	$	1
Capital trust notes		1,968		32		4,997		2,448		6,965		2,480
Equity securities		51,775		323		—		—		51,775		323
Total temporarily impaired available-for-sale securities	$	105,702	$	356	$	4,997	$	2,448	$	110,699	$	2,804