Securities (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Portfolio of Securities Available for Sale and Equity Investments with Readily Determinable Fair Values

The following tables summarize the Company’s portfolio of debt securities available for sale and equity investments with readily determinable fair values at June 30, 2018 and December 31, 2017:


	June 30, 2018
				Gross			Gross
	Amortized			Unrealized			Unrealized
(in thousands)	Cost			Gain			Loss			Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE certificates		$	1,936,949		$	11,307		$	24,840		$	1,923,416
GSE CMOs			658,435			5,755			4,418			659,772

Total mortgage-related debt securities		$	2,595,384		$	17,062		$	29,258		$	2,583,188

Other Debt Securities:
U. S. Treasury securities		$	199,839		$	--		$	143		$	199,696
GSE debentures			562,866			929			9,146			554,649
Asset-backed securities ⁽¹⁾			280,755			201			158			280,798
Municipal bonds			69,546			178			2,119			67,605
Corporate bonds			379,069			9,922			898			388,093
Capital trust notes			48,252			6,478			5,876			48,854

Total other debt securities		$	1,540,327		$	17,708		$	18,340		$	1,539,695

Total debt securities available for sale ⁽²⁾		$	4,135,711		$	34,770		$	47,598		$	4,122,883

Equity securities:
Preferred stock		$	15,292		$	--		$	184		$	15,108
Mutual funds and common stock ⁽³⁾			16,874			346			562			16,658

Total equity securities		$	32,166		$	346		$	746		$	31,766

Total securities		$	4,167,877		$	35,116		$	48,344		$	4,154,649

(1)	The underlying assets of the asset-backed securities are substantially guaranteed by the U.S. Government.

(2)	The amortized cost includes the non-credit portion of OTTI recorded in AOCL. At June 30, 2018, the non-credit portion of OTTI recorded in AOCL was $8.6 million before taxes.

(3)	Primarily consists of mutual funds that are CRA-qualified investments.


	December 31, 2017
				Gross			Gross
	Amortized			Unrealized			Unrealized
(in thousands)	Cost			Gain			Loss			Fair Value
Mortgage-Related Securities:
GSE certificates		$	2,023,677		$	46,364		$	1,199		$	2,068,842
GSE CMOs			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
Municipal bonds			70,381			540			801			70,120
Corporate bonds			79,702			11,073			--			90,775
Capital trust notes			48,230			6,498			8,632			46,096
Preferred stock			15,292			142			--			15,434
Mutual funds and common stock ⁽¹⁾			16,874			487			261			17,100

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

Total securities available for sale ⁽²⁾		$	3,464,279		$	81,594		$	14,446		$	3,531,427

(1)	Primarily consists of mutual funds that are CRA-qualified investments.

(2)	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.

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, 2018 and 2017:


	For the Six Months Ended
	June 30,
(in thousands)	2018			2017
Gross proceeds		$	--	$139,009
Gross realized gains			--	1,986

Credit Loss Component of Other Than Temporary Impairment on Debt Securities

	For the
	Six Months Ended
(in thousands)	June 30, 2018
Beginning credit loss amount as of December 31, 2017		$196,333
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		30

Ending credit loss amount as of June 30, 2018		$196,303

Summary of Amortized Cost of Securities by Contractual Maturity

The following table summarizes, by contractual maturity, the amortized cost of securities at June 30, 2018:


	Mortgage- Related Securities			Average Yield			U.S. Government 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 Debt Securities: ⁽³⁾
Due within one year		$	--		--	%		$	199,839		1.70	%		$	149		6.51	%		$	--		--	%		$	199,846
Due from one to five years			1,219,407		3.34				6,950		3.84				293		6.63				48,648		3.86				1,283,154
Due from five to ten years			557,628		3.39				471,325		3.11				--		--				330,421		3.98				1,359,372
Due after ten years			818,349		2.94				84,591		3.09				69,104		2.88				329,007		3.24				1,280,511

Total debt securities available for sale		$	2,595,384		3.22	%		$	762,705		2.74	%		$	69,546		2.90	%		$	708,076		3.63	%		$	4,122,883

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

(2)	Includes corporate bonds, capital trust notes, and asset-backed 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 securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of June 30, 2018:


	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 Securities:
U. S. Treasury securities		$	199,695		$	143		$	--		$	--		$	199,695		$	143
U. S. Government agency and GSE obligations			524,847			9,146			--			--			524,847			9,146
GSE certificates			959,158			23,556			19,434			1,284			978,592			24,840
GSE CMOs			329,114			4,418			--			--			329,114			4,418
Asset-backed securities			112,408			158			--			--			112,408			158
Municipal bonds			--			--			50,087			2,119			50,087			2,119
Corporate bonds			293,218			898			--			--			293,218			898
Capital trust notes			--			--			37,883			5,876			37,883			5,876
Equity securities			19,089			211			11,271			535			30,360			746

Total temporarily impaired securities		$	2,437,529		$	38,530		$	118,675		$	9,814		$	2,556,204		$	48,344

The following table presents 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