Securities (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Portfolio of Securities Available for Sale

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

	December 31, 2018
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE certificates	$	1,705,336	$	18,146	$	15,961	$	1,707,521
GSE CMOs		1,248,621		8,380		4,240		1,252,761
Total mortgage-related debt securities	$	2,953,957	$	26,526	$	20,201	$	2,960,282
Other Debt Securities:
GSE debentures	$	1,334,549	$	3,366	$	8,988	$	1,328,927
Asset-backed securities (1)		386,768		784		430		387,122
Municipal bonds		68,551		195		2,563		66,183
Corporate bonds		836,153		8,667		23,105		821,715
Capital trust notes		48,278		6,435		5,422		49,291
Total other debt securities	$	2,674,299	$	19,447	$	40,508	$	2,653,238
Total other securities available for sale (2)	$	5,628,256	$	45,973	$	60,709	$	5,613,520
Equity securities:
Preferred stock		15,292		—		1,446		13,846
Mutual funds and common stock (3)		16,870		366		531		16,705
Total equity securities	$	32,162	$	366	$	1,977	$	30,551
Total securities	$	5,660,418	$	46,339	$	62,686	$	5,644,071

(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 December 31, 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. 

Summary of Portfolio of Securities Held to Maturity

	December 31, 2017
(in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized 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 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, 2018, 2017, and 2016:

	December 31,
(in thousands)	2018		2017		2016
Gross proceeds	$	278,539	$	453,878	$	322,038
Gross realized gains		967		3,848		3,128
Gross realized losses		981		860		—

Credit Loss Component of Other Than Temporary Impairment on Debt Securities

(in thousands)	For the Twelve Months Ended December 31, 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		146
Ending credit loss amount as of December 31, 2018	$	196,187

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

The following table summarizes, by contractual maturity, the amortized cost of securities at December 31, 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:
Due within one year	$	—		—	%	$	—		—	%	$	148		6.59	%	$	—		—	%	$	153
Due from one to five years		1,093,265		3.31			32,874		3.48			146		6.66			92,830		3.75			1,233,880
Due from five to ten years		328,455		3.41			1,148,695		3.41			10,981		3.78			743,323		4.34			2,213,968
Due after ten years		1,532,237		3.20			152,980		3.63			57,276		2.71			435,046		3.24			2,165,519
Total debt securities available for sale	$	2,953,957		3.26	%	$	1,334,549		3.44	%	$	68,551		2.90	%	$	1,271,199		3.92	%	$	5,613,520

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

(2) Includes corporate bonds, capital trust notes, and asset-backed securities.

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 December 31, 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. Government agency and GSE obligations	$	276,113	$	2,629	$	329,372	$	6,359	$	605,485	$	8,988
GSE certificates		576,970		10,598		232,969		5,363		809,939		15,961
GSE CMOs		465,779		1,892		99,050		2,348		564,829		4,240
Asset-backed securities		69,166		430		—		—		69,166		430
Municipal bonds		5,876		21		48,837		2,542		54,713		2,563
Corporate bonds		642,843		23,105		—		—		642,843		23,105
Capital trust notes		—		—		38,360		5,422		38,360		5,422
Equity securities		17,836		1,464		11,293		513		29,129		1,977
Total temporarily impaired securities	$	2,054,583	$	40,139	$	759,881	$	22,547	$	2,814,464	$	62,686

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