Securities (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Portfolio of Securities Available for Sale

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

	September 30, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates (1)	$	7,824	$	3	$	—	$	7,827
Other Securities:
Municipal bonds	$	731	$	68	$	—	$	799
Capital trust notes		9,455		2		2,481		6,976
Preferred stock		118,205		9,782		8		127,979
Mutual funds and common stock (2)		16,877		687		—		17,564
Total other securities	$	145,268	$	10,539	$	2,489	$	153,318
Total securities available for sale	$	153,092	$	10,542	$	2,489	$	161,145

(1) Government-sponsored enterprise.

(2) 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	$	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

Summary of Portfolio of Securities Held to Maturity

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

	September 30, 2016
(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,231,754	$	2,231,754	$	156,154	$	—	$	2,387,908
GSE CMOs (1)		1,119,704		1,119,704		75,607		—		1,195,311
Total mortgage-related securities	$	3,351,458	$	3,351,458	$	231,761	$		$	3,583,219
Other Securities:
GSE debentures	$	88,527	$	88,527	$	6,084	$	—	$	94,611
Municipal bonds		72,187		72,187		2,698		—		74,885
Corporate bonds		74,101		74,101		10,753		—		84,854
Capital trust notes		74,277		65,652		3,918		14,053		55,517
Total other securities	$	309,092	$	300,467	$	23,453	$	14,053	$	309,867
Total securities held to maturity (2)	$	3,660,550	$	3,651,925	$	255,214	$	14,053	$	3,893,086

(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 September 30, 2016, the non-credit portion of OTTI recorded in AOCL was $8.6 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 nine months ended September 30, 2016 and 2015:

	For the Nine Months Ended September 30,
(in thousands)	2016		2015
Gross proceeds	$	264,413	$	256,900
Gross realized gains		413		400

Credit Loss Component of Other Than Temporary Impairment on Debt Securities

In 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 Nine Months Ended September 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 cash flows on debt securities		135
Ending credit loss amount as of September 30, 2016		$	198,631

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 September 30, 2016, by contractual maturity.

	At September 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	$	—		—	%	$	—		—	%	$	109		2.96	%	$	—		—	%	$	109
Due from one to five years		655,716		3.73			66,604		4.14			—		—			47,970		3.32			830,343
Due from five to ten years		2,338,989		3.09			21,923		3.52			—		—			16,447		9.05			2,550,076
Due after ten years		356,753		2.97			—		—			72,078		2.88			75,336		5.25			512,558
Total securities held to maturity	$	3,351,458		3.20	%	$	88,527		3.99	%	$	72,187		2.88	%	$	139,753		5.03	%	$	3,893,086
Available-for-Sale Securities: (3)
Due within one year	$	—		—	%	$	—		—	%	$	150		6.39	%	$	—		—	%	$	151
Due from one to five years		—		—			—		—			581		6.56			—		—			648
Due from five to ten years		7,824		1.90			—		—			—		—			—		—			7,827
Due after ten years		—		—			—		—			—		—			9,455		4.52			6,976
Total securities available for sale	$	7,824		1.90	%	$	—		—	%	$	731		6.53	%	$	9,455		4.52	%	$	15,602

(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 September 30, 2016:

At September 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:
Capital trust notes	$	—	$	—	$	22,177	$	14,053	$	22,177	$	14,053
Total temporarily impaired held-to-maturity securities	$	—	$	—	$	22,177	$	14,053	$	22,177	$	14,053
Temporarily Impaired Available-for-Sale Securities:
Capital trust notes	$	—	$	—	$	4,974	$	2,481	$	4,974	$	2,481
Equity securities		15,285		8		—		—		15,285		8
Total temporarily impaired available-for-sale securities	$	15,285	$	8	$	4,974	$	2,481	$	20,259	$	2,489

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