Securities (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Portfolio of Securities Available for Sale

The following tables summarize the Company’s portfolio of securities available for sale at December 31, 2017 and 2016:


	December 31, 2017
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE ⁽¹⁾ certificates	$	2,023,677	$	46,364	$	1,199	$	2,068,842
GSE CMOs ⁽²⁾		536,284		14,446		826		549,904

Total mortgage-related securities	$	2,559,961	$	60,810	$	2,025	$	2,618,746

Other Securities:
U. S. Treasury obligations	$	199,960	$	—	$	62	$	199,898
GSE debentures		473,879		2,044		2,665		473,258
Corporate bonds		79,702		11,073		—		90,775
Municipal bonds		70,381		540		801		70,120
Capital trust notes		48,230		6,498		8,632		46,096
Preferred stock		15,292		142		—		15,434
Mutual funds and common stock ⁽³⁾		16,874		487		261		17,100

Total other securities	$	904,318	$	20,784	$	12,421	$	912,681

Total securities available for sale ⁽⁴⁾	$	3,464,279	$	81,594	$	14,446	$	3,531,427

(1)	Government-sponsored enterprise.

(2)

Collateralized mortgage obligations.

(3)

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

(4)

The amortized cost includes the non-credit portion of OTTI recorded in AOCL. At December 31, 2017, the non-credit portion of OTTI recorded in AOCL was $8.6 million (before taxes).


	December 31, 2016
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	7,786	$	—	$	460	$	7,326

Other Securities:
Municipal bonds	$	583	$	48	$	—	$	631
Capital trust notes		9,458		2		2,217		7,243
Preferred stock		70,866		1,446		328		71,984
Mutual funds and common stock		16,874		484		261		17,097

Total other securities	$	97,781	$	1,980	$	2,806	$	96,955

Total securities available for sale	$	105,567	$	1,980	$	3,266	$	104,281

Summary of Portfolio of Securities Held to Maturity

The following table summarizes the Company’s portfolio of securities held to maturity at December 31, 2016:


(in thousands)	Amortized Cost		Carrying Amount		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Mortgage-Related Securities:
GSE certificates	$	2,193,489	$	2,193,489	$	64,431	$	2,399	$	2,255,521
GSE CMOs		1,019,074		1,019,074		36,895		57		1,055,912

Total mortgage-related securities	$	3,212,563	$	3,212,563	$	101,326	$	2,456	$	3,311,433

Other Securities:
U. S. Treasury obligations	$	200,293	$	200,293	$	—	$	73	$	200,220
GSE debentures		88,457		88,457		3,836		—		92,293
Corporate bonds		74,217		74,217		9,549		—		83,766
Municipal bonds		71,554		71,554		—		1,789		69,765
Capital trust notes		74,284		65,692		2,662		11,872		56,482

Total other securities	$	508,805	$	500,213	$	16,047	$	13,734	$	502,526

Total securities held to maturity ⁽¹⁾	$	3,721,368	$	3,712,776	$	117,373	$	16,190	$	3,813,959

(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, 2016, the non-credit portion of OTTI recorded in AOCL was $8.6 million (before taxes).

Summary of Gross Proceeds and Gross Realized Gains and 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, 2017, 2016, and 2015:


	December 31,
(in thousands)	2017		2016		2015
Gross proceeds	$	453,878	$	322,038	$	278,689
Gross realized gains		3,848		3,128		1,159
Gross realized losses		860		—		4

Credit Loss Component of Other Than Temporary Impairment on Debt Securities


(in thousands)	For the Twelve Months Ended December 31, 2017
Beginning credit loss amount as of December 31, 2016		$197,552
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		1,219

Ending credit loss amount as of December 31, 2017		$196,333

Summary of Amortized Cost of Available-for-Sale Securities by Contractual Maturity

The following table summarizes, by contractual maturity, the amortized cost of available-for-sale securities at December 31, 2017:


	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
(dollars in thousands)
Available-for-Sale Securities: ⁽³⁾
Due within one year	$	—		—	%	$	259,256		1.82	%	$	148		6.51	%	$	—		—	%	$	259,617
Due from one to five years		883,138		3.32			6,950		3.84			291		6.63			48,449		3.57			963,589
Due from five to ten years		1,002,205		3.44			283,883		3.08			—		—			31,253		8.37			1,361,457
Due after ten years		674,618		3.09			123,750		3.23			69,942		2.88			48,230		3.77			914,230

Total securities available for sale	$	2,559,961		3.30	%	$	673,839		3.22	%	$	70,381		2.90	%	$	127,932		4.82	%	$	3,498,893

(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 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, 2017:


	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 Available-for-Sale Securities:
GSE certificates	$	232,546	$	535	$	20,440	$	664	$	252,986	$	1,199
GSE debentures		333,045		2,665		—		—		333,045		2,665
GSE CMOs		118,694		826		—		—		118,694		826
U. S. Treasury obligations		199,898		62		—		—		199,898		62
Municipal bonds		11,169		259		41,054		542		52,223		801
Capital trust notes		—		—		35,105		8,632		35,105		8,632
Equity securities		—		—		11,545		261		11,545		261

Total temporarily impaired available-for-sale securities	$	895,352	$	4,347	$	108,144	$	10,099	$	1,003,496	$	14,446

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, 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	$	268,891	$	2,399	$	—	$	—	$	268,891	$	2,399
GSE CMOs		42,980		57		—		—		42,980		57
U. S. Treasury obligations		200,220		73		—		—		200,220		73
Municipal bonds		69,765		1,789		—		—		69,765		1,789
Capital trust notes		—		—		24,364		11,872		24,364		11,872

Total temporarily impaired held-to-maturity securities	$	581,856	$	4,318	$	24,364	$	11,872	$	606,220	$	16,190

Temporarily Impaired Available-for-Sale Securities:
GSE certificates	$	7,326	$	460	$	—	$	—	$	7,326	$	460
Capital trust notes		—		—		5,241		2,217		5,241		2,217
Equity securities		29,059		589		—		—		29,059		589

Total temporarily impaired available-for-sale securities	$	36,385	$	1,049	$	5,241	$	2,217	$	41,626	$	3,266

- 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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