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Securities (Tables)
 6 Months Ended
Jun. 30, 2019
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 June 30, 2019 and December 31, 2018:
                                 
 
June 30, 2019
 
(in thousands)
 
Amortized
Cost
   
Gross
Unrealized
Gain
   
Gross
Unrealized
Loss
   
Fair Value
 
Debt securities
available-for-sale:
    
     
     
     
 
Mortgage-related Debt Securities:
   
     
     
     
 
GSE certificates
  $
1,284,885
    $
31,356
    $
405
    $
1,315,836
 
GSE CMOs
   
1,438,165
     
22,222
     
1,069
     
1,459,318
 
                                 
Total mortgage-related debt securities
  $
2,723,050
    $
53,578
    $
1,474
    $
2,775,154
 
                                 
Other Debt Securities:
   
     
     
     
 
U. S. Treasury obligations
  $
29,840
    $
23
    $
—  
    $
29,863
 
GSE debentures
   
1,602,270
     
7,160
     
1,067
     
1,608,363
 
Asset-backed securities
(1)
    
385,554
     
—  
     
2,972
     
382,582
 
Municipal bonds
   
27,383
     
578
     
485
     
27,476
 
Corporate bonds
   
859,812
     
11,737
     
6,592
     
864,957
 
Capital trust notes
   
48,304
     
6,608
     
5,161
     
49,751
 
                                 
Total other debt securities
  $
2,953,163
    $
26,106
    $
16,277
    $
2,962,992
 
                                 
Total debt securities available for sale
(2)
   $
5,676,213
    $
79,684
    $
17,751
    $
5,738,146
 
                                 
Equity
Securities:
    
     
     
     
 
Preferred stock
   
15,292
     
61
     
—  
     
15,353
 
Mutual funds and common stock
(3)
    
16,871
     
567
     
206
     
17,232
 
                                 
Total equity securities
  $
32,163
    $
628
    $
206
    $
32,585
 
                                 
Total securities
  $   
5,708,376
    $   
80,312
    $   
17,957
    $   
5,770,731
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2019, 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, 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 debt 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 Gross Proceeds and Gross Realized Gains and Losses 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, 2019 and 2018:
                 
 
For the Six Months Ended
June 30,
 
(in thousands)
 
2019
   
2018
 
Gross proceeds
  $
361,311
     
—  
  
Gross realized gains
   
5,445
     
—  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Loss Component of Other Than Temporary Impairment on Debt Securities
             
(in thousands)
 
For the
Six Months Ended

June 30, 2019
   
Beginning credit loss amount as of December 31, 2018
  $
196,187
   
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
   
31
 
             
Ending credit loss amount as of June 30, 2019
  $
196,156
   
           
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 June 30, 2019:
                                                                         
 
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
  $
—  
     
—  
 %   $
29,840
     
2.45
 %   $
149
     
6.59
 %   $
13,963
     
3.79
 %   $
44,042
 
Due from one to five years
   
768,275
     
3.30
     
32,874
     
3.48
     
147
     
6.66
     
154,338
     
3.62
     
977,601
 
Due from five to ten years
   
343,552
     
3.41
     
1,405,546
     
3.41
     
10,966
     
3.79
     
711,760
     
4.38
     
2,495,243
 
Due after ten years
   
1,611,223
     
3.22
     
163,850
     
3.66
     
16,121
     
3.22
     
413,609
     
3.22
     
2,221,260
 
                                                                         
Total debt securities available for sale
  $ 
2,723,050
     
3.26
 %   $ 
1,632,110
     
3.42
 %   $
27,383
     
3.49
 %   $ 
1,293,670
     
3.91
 %   $ 
5,738,146
 
                                                                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 June 30, 2019:
                                                 
 
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
  $
115,529
    $
362
    $
68,707
    $
705
    $
184,236
    $
1,067
 
GSE certificates
   
—  
     
—  
     
228,788
     
405
     
228,788
     
405
 
GSE CMOs
   
127,725
     
263
     
138,221
     
806
     
265,946
     
1,069
 
Asset-backed securities
   
382,583
     
2,972
     
—  
     
—  
     
382,583
     
2,972
 
Municipal bonds
   
—  
     
—  
     
9,745
     
485
     
9,745
     
485
 
Corporate bonds
   
538,772
     
6,548
     
24,647
     
44
     
563,419
     
6,592
 
Capital trust notes
   
—  
     
—  
     
38,645
     
5,161
     
38,645
     
5,161
 
Equity securities
   
—  
     
—  
     
11,600
     
206
     
11,600
     
206
 
                                                 
Total temporarily impaired securities
  $ 
1,164,609
    $
10,145
    $ 
520,353
    $
7,812
    $ 
1,684,962
    $
17,957
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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