Securities

3 Months Ended

Mar. 31, 2012

Securities [Abstract]

Securities

4. Securities

The amortized cost and estimated fair market value of investment securities and mortgage-backed securities available-for-sale at March 31, 2012 and December 31, 2011 are as follows:

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair Market
	Cost		Gains		Losses			Value
	(In thousands)
March 31, 2012
Investment Securities:
Corporate debt	$	307,620	$	3,588	$	—		$	311,208
Equity securities		6,813		587		—			7,400
Total investment securities available for sale	$	314,433	$	4,175	$	—		$	318,608
Mortgage-backed securities:
GNMA pass-through certificates	$	1,117,983	$	30,420	$	(71	)	$	1,148,332
FNMA pass-through certificates		4,285,217		70,876		(303	)		4,355,790
FHLMC pass-through certificates		3,389,925		68,329		(172	)		3,458,082
FHLMC and FNMA - REMICs		75,186		2,372		—			77,558
Total mortgage-backed securities available for sale	$	8,868,311	$	171,997	$	(546	)	$	9,039,762
December 31, 2011
Investment securities:
Equity securities	$	6,767	$	601	$	—		$	7,368
Total investment securities available for sale		6,767		601		—			7,368
Mortgage-backed securities:
GNMA pass-through certificates	$	1,139,894	$	26,353	$	(19	)	$	1,166,228
FNMA pass-through certificates		4,407,970		60,059		—			4,468,029
FHLMC pass-through certificates		3,390,467		61,689		—			3,452,156
FHLMC and FNMA - REMICs		81,768		2,209		—			83,977
Total mortgage-backed securities available for sale	$	9,020,099	$	150,310	$	(19	)	$	9,170,390

The amortized cost and estimated fair market value of investment securities and mortgage-backed securities held to maturity at March 31, 2012 and December 31, 2011 are as follows:

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair Market
	Cost		Gains		Losses			Value
	(In thousands)
March 31, 2012
Investment securities:
United States government-sponsored enterprises debt	$	39,011	$	6,301	$	—		$	45,312
Total investment securities held to maturity	$	39,011	$	6,301	$	—		$	45,312
Mortgage-backed securities:
GNMA pass-through certificates	$	80,987	$	2,784	$	—		$	83,771
FNMA pass-through certificates		1,082,570		79,020		(3	)		1,161,587
FHLMC pass-through certificates		2,018,619		127,813		—			2,146,432
FHLMC and FNMA - REMICs		671,557		44,940		—			716,497
Total mortgage-backed securities held to maturity	$	3,853,733	$	254,557	$	(3	)	$	4,108,287
December 31, 2011
Investment securities:
United States government-sponsored enterprises debt	$	539,011	$	6,750	$	—		$	545,761
Total investment securities held to maturity	$	539,011	$	6,750	$	—		$	545,761
Mortgage-backed securities:
GNMA pass-through certificates	$	83,587	$	2,602	$	—		$	86,189
FNMA pass-through certificates		1,154,638		78,603		(4	)		1,233,237
FHLMC pass-through certificates		2,132,408		125,364		—			2,257,772
FHLMC and FNMA - REMICs		744,890		46,335		—			791,225
Total mortgage-backed securities held to maturity	$	4,115,523	$	252,904	$	(4	)	$	4,368,423

The following tables summarize the fair values and unrealized losses of mortgage-backed securities with an unrealized loss at March 31, 2012 and December 31, 2011, segregated between securities that had been in a continuous unrealized loss position for less than twelve months or longer than twelve months at the respective dates.

	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
March 31, 2012
Held to maturity:
FNMA pass-through certificates	$	209	$	(3	)	$	—	$	—	$	209	$	(3	)
Total temporarily impaired securities held to maturity		209		(3	)		—		—		209		(3	)
Available for sale:
GNMA pass-through certificates		19,490		(71	)		—		—		19,490		(71	)
FNMA pass-through certificates		140,250		(303	)		—		—		140,250		(303	)
FHLMC pass-through certificates		51,500		(172	)		—		—		51,500		(172	)
Total temporarily impaired securities available for sale		211,240		(546	)		—		—		211,240		(546	)
Total	$	211,449	$	(549	)	$	—	$	—	$	211,449	$	(549	)
December 31, 2011
Held to maturity:
FNMA pass-through certificates	$	210	$	(4	)	$	—	$	—	$	210	$	(4	)
Total temporarily impaired securities held to maturity		210		(4	)		—		—		210		(4	)
Available for sale:
GNMA pass-through certificates		12,891		(19	)		—		—		12,891		(19	)
Total temporarily impaired securities available for sale		12,891		(19	)		—		—		12,891		(19	)
Total	$	13,101	$	(23	)	$	—	$	—	$	13,101	$	(23	)

The unrealized losses are primarily due to the changes in market interest rates subsequent to purchase. We do not consider these investments to be other-than-temporarily impaired at March 31, 2012 and December 31, 2011 since the decline in market value is attributable to changes in interest rates and not credit quality. In addition, the Company does not intend to sell and does not believe that it is more likely than not that we will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result no impairment loss was recognized during the three months ended March 31, 2012 or for the year ended December 31, 2011.

The amortized cost and estimated fair market value of our securities held to maturity and available-for-sale at March 31, 2012, by contractual maturity, are shown below. The table does not include the effect of prepayments or scheduled principal amortization. The expected maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations. Equity securities have been excluded from this table.

	Amortized Cost				Estimated Fair Market Value
	Mortgage-backed		Investment
	securities		securities
	(In thousands)
March 31, 2012
Held to Maturity:
Due in one year or less	$	—	$	—	$	—
Due after one year through five years		2,344		—		2,475
Due after five years through ten years		7,876		—		8,420
Due after ten years		3,843,513		39,011		4,142,704
Total held to maturity	$	3,853,733	$	39,011	$	4,153,599
Available for Sale:
Due after one year through five years	$	—	$	307,620	$	311,208
Due after ten years		8,868,311		—		9,039,762
Total available for sale	$	8,868,311	$	307,620	$	9,350,970

There were no sales of mortgage-backed securities available-for-sale for the three months ended March 31, 2012. Sales of mortgage-backed securities available-for-sale amounted to $8.96 billion for the three months ended March 31, 2011, resulting in realized gains of $100.0 million. There were no sales of investment securities available-for-sale during the three months ended March 31, 2012, as compared to sales of $80.0 million for the same period in 2011. Gross realized gains on sales and calls of investment securities available-for-sale were $2.5 million during the first three months of 2011. Gains and losses on the sale of all securities are determined using the specific identification method.