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AVAILABLE-FOR-SALE INVESTMENT SECURITIES | 9 Months Ended
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Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract] |
AVAILABLE-FOR-SALE INVESTMENT SECURITIES | NOTE 7 — AVAILABLE-FOR-SALE INVESTMENT SECURITIES The following table presents the amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of available-for-sale investment securities:
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 750,032 |  |  | $ | 2,581 |  |  | $ | (8 | ) |  | $ | 752,605 |
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 701,919 |  |  | 1,544 |  |  | (1,619 | ) |  | 701,844 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 271,171 |  |  | 2,584 |  |  | (405 | ) |  | 273,350 |
Residential mortgage-backed securities |  | 746,632 |  |  | 10,081 |  |  | (1,815 | ) |  | 754,898 |
Municipal securities |  | 203,832 |  |  | 4,604 |  |  | (1,611 | ) |  | 206,825 |
Other residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 65,706 |  |  | 947 |  |  | (116 | ) |  | 66,537 |
Corporate debt securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 142,216 |  |  | 22 |  |  | (1,112 | ) |  | 141,126 |
Non-investment grade (1) |  | 11,525 |  |  | — |  |  | (1,001 | ) |  | 10,524 |
Other securities |  | 44,280 |  |  | 693 |  |  | (405 | ) |  | 44,568 |
Total available-for-sale investment securities |  | $ | 2,937,313 |  |  | $ | 23,056 |  |  | $ | (8,092 | ) |  | $ | 2,952,277 |
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 873,101 |  |  | $ | 1,971 |  |  | $ | (1,637 | ) |  | $ | 873,435 |
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 311,927 |  |  | 490 |  |  | (1,393 | ) |  | 311,024 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 140,957 |  |  | 1,056 |  |  | (593 | ) |  | 141,420 |
Residential mortgage-backed securities |  | 785,412 |  |  | 9,754 |  |  | (4,078 | ) |  | 791,088 |
Municipal securities |  | 245,408 |  |  | 6,202 |  |  | (1,162 | ) |  | 250,448 |
Other residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 52,694 |  |  | 1,359 |  |  | (135 | ) |  | 53,918 |
Other commercial mortgage-backed securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 34,000 |  |  | 53 |  |  | — |  |  | 34,053 |
Corporate debt securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 116,236 |  |  | — |  |  | (1,054 | ) |  | 115,182 |
Non-investment grade (1) |  | 17,881 |  |  | — |  |  | (3,200 | ) |  | 14,681 |
Other securities |  | 41,691 |  |  | 393 |  |  | (716 | ) |  | 41,368 |
Total available-for-sale investment securities |  | $ | 2,619,307 |  |  | $ | 21,278 |  |  | $ | (13,968 | ) |  | $ | 2,626,617 |
(1) | Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade.
Realized Gains and Losses The following table presents the proceeds, gross realized gains, and gross realized losses related to the sales of available-for-sale investment securities for the three and nine months ended September 30, 2015 and 2014:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
($ in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
Proceeds from sales |  | $ | 855,425 |  |  | $ | 43,788 |  |  | $ | 1,328,487 |  |  | $ | 395,630 |  |
Gross realized gains |  | $ | 17,036 |  |  | $ | 2,514 |  |  | $ | 26,994 |  |  | $ | 6,730 |  |
Gross realized losses |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 127 |  | (1)
Related tax expense |  | $ | 7,155 |  |  | $ | 1,056 |  |  | $ | 11,337 |  |  | $ | 2,773 |  |
(1) | The gross $127 thousand of losses resulted from the available-for-sale investment securities acquired from MetroCorp which were sold immediately after the acquisition closed.
Declines in the fair value of securities below their cost that are deemed to be an other-than-temporary impairment (“OTTI”) are recognized in earnings to the extent the impairment is related to credit losses. The following table presents a rollforward of the amounts related to the OTTI credit losses recognized in earnings for the three and nine months ended September 30, 2015 and 2014:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
($ in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014 |
Beginning balance |  | $ | 106,688 |  |  | $ | 115,511 |  |  | $ | 112,338 |  |  | $ | 115,511 |  |
Addition of OTTI previously not recognized |  | — |  |  | — |  |  | — |  |  | — |  |
Additional increases to the amount related to the credit loss for which an OTTI was previously recognized |  | — |  |  | — |  |  | — |  |  | — |  |
Reduction for securities sold |  | (74,765 | ) |  | — |  |  | (80,415 | ) |  | — |  |
Ending balance |  | $ | 31,923 |  |  | $ | 115,511 |  |  | $ | 31,923 |  |  | $ | 115,511 |  |
No OTTI credit losses were recognized for the three and nine months ended September 30, 2015 and 2014. For the three months ended September 30, 2015, the Company realized a gain of $10.9 million from the sale of non-investment grade corporate debt securities with previously recognized OTTI credit losses of $74.8 million. For the nine months ended September 30, 2015, the Company realized a gain of $11.9 million from the sale of non-investment grade corporate debt securities with previously recognized OTTI credit losses of $80.4 million. There were no sales of investment securities with previously recognized OTTI credit losses for the three and nine months ended September 30, 2014. Unrealized Losses The following tables present the Company’s investment portfolio’s gross unrealized losses and related fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of September 30, 2015 and December 31, 2014:
|  | Less Than 12 Months |  | 12 Months or More |  | Total
($ in thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 10,332 |  |  | $ | (1 | ) |  | $ | 20,479 |  |  | $ | (7 | ) |  | $ | 30,811 |  |  | $ | (8 | )
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 180,594 |  |  | (1,619 | ) |  | — |  |  | — |  |  | 180,594 |  |  | (1,619 | )
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 13,279 |  |  | (63 | ) |  | 21,500 |  |  | (342 | ) |  | 34,779 |  |  | (405 | )
Residential mortgage-backed securities |  | 122,716 |  |  | (520 | ) |  | 69,189 |  |  | (1,295 | ) |  | 191,905 |  |  | (1,815 | )
Municipal securities |  | 47,613 |  |  | (1,028 | ) |  | 14,536 |  |  | (583 | ) |  | 62,149 |  |  | (1,611 | )
Other residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 7,289 |  |  | (25 | ) |  | 6,576 |  |  | (91 | ) |  | 13,865 |  |  | (116 | )
Corporate debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 45,013 |  |  | (87 | ) |  | 90,114 |  |  | (1,025 | ) |  | 135,127 |  |  | (1,112 | )
Non-investment grade |  | — |  |  | — |  |  | 10,524 |  |  | (1,001 | ) |  | 10,524 |  |  | (1,001 | )
Other securities |  | 7,202 |  |  | (6 | ) |  | 8,601 |  |  | (399 | ) |  | 15,803 |  |  | (405 | )
Total available-for-sale investment securities |  | $ | 434,038 |  |  | $ | (3,349 | ) |  | $ | 241,519 |  |  | $ | (4,743 | ) |  | $ | 675,557 |  |  | $ | (8,092 | )
|  | Less Than 12 Months |  | 12 Months or More |  | Total
($ in thousands) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 170,260 |  |  | $ | (266 | ) |  | $ | 163,800 |  |  | $ | (1,371 | ) |  | $ | 334,060 |  |  | $ | (1,637 | )
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 69,438 |  |  | (504 | ) |  | 124,104 |  |  | (889 | ) |  | 193,542 |  |  | (1,393 | )
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 45,405 |  |  | (257 | ) |  | 16,169 |  |  | (336 | ) |  | 61,574 |  |  | (593 | )
Residential mortgage-backed securities |  | 81,927 |  |  | (270 | ) |  | 241,047 |  |  | (3,808 | ) |  | 322,974 |  |  | (4,078 | )
Municipal securities |  | 6,391 |  |  | (26 | ) |  | 61,107 |  |  | (1,136 | ) |  | 67,498 |  |  | (1,162 | )
Other residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | — |  |  | — |  |  | 7,217 |  |  | (135 | ) |  | 7,217 |  |  | (135 | )
Corporate debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 25,084 |  |  | (12 | ) |  | 90,098 |  |  | (1,042 | ) |  | 115,182 |  |  | (1,054 | )
Non-investment grade |  | — |  |  | — |  |  | 14,681 |  |  | (3,200 | ) |  | 14,681 |  |  | (3,200 | )
Other securities |  | 15,885 |  |  | (716 | ) |  | — |  |  | — |  |  | 15,885 |  |  | (716 | )
Total available-for-sale investment securities |  | $ | 414,390 |  |  | $ | (2,051 | ) |  | $ | 718,223 |  |  | $ | (11,917 | ) |  | $ | 1,132,613 |  |  | $ | (13,968 | )
For each reporting period, the Company examines all individual securities that are in an unrealized loss position for OTTI. Specific investment related factors, such as the nature of the investments, the severity and duration of the loss, the probability of collecting all amounts due, the analysis of the issuers of the securities and whether there has been any cause for default on the securities and any change in the rating of the securities by various rating agencies, are examined to assess impairment. Additionally, the Company evaluates whether the creditworthiness of the issuer calls the realization of contractual cash flows into question. The Company takes into consideration the financial resources, intent and its overall ability to hold the securities and not be required to sell them until their fair values recover. The majority of the total unrealized losses related to securities are related to corporate debt securities, residential mortgage-backed securities, and U.S. government agency and U.S. government sponsored enterprise debt securities. As of September 30, 2015, corporate debt securities, residential mortgage-backed securities, and U.S. government agency and U.S. government sponsored enterprise debt securities represented 5%, 26%, and 24%, respectively, of the total available-for-sale investment securities portfolio. As of December 31, 2014, corporate debt securities, residential agency mortgage-backed securities, and U.S. government agency and U.S. government sponsored enterprise debt securities represented 5%, 30%, and 12%, respectively, of the total available-for-sale investment securities portfolio. The unrealized losses on these securities were primarily attributed to yield curve movement, together with the widened liquidity spread and credit spread. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. Management believes the impairments detailed in the tables of gross unrealized losses above are temporary and are not impaired due to reasons of credit quality. Accordingly, no impairment loss has been recorded in the Company’s Consolidated Statements of Income for the three and nine months ended September 30, 2015 and 2014. Available-for-Sale Investment Securities Maturities The following table presents the scheduled maturities of available-for-sale investment securities as of September 30, 2015:
($ in thousands) |  | Amortized Cost |  | Fair Value
Due within one year |  | $ | 672,392 |  |  | $ | 672,656 |
Due after one year through five years |  | 994,971 |  |  | 1,000,431 |
Due after five years through ten years |  | 339,821 |  |  | 339,094 |
Due after ten years |  | 930,129 |  |  | 940,096 |
Total available-for-sale investment securities |  | $ | 2,937,313 |  |  | $ | 2,952,277 |
Actual maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to prepay obligations. In addition, such factors as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities. Available-for-sale investment securities with a par value of $974.7 million and $1.93 billion were pledged to secure public deposits, repurchase agreements, the Federal Reserve Bank’s discount window, or for other purposes required or permitted by law as of September 30, 2015 and December 31, 2014, respectively.

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