XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.5.0.2

INVESTMENT SECURITIES | 9 Months Ended
--- | ---
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | NOTE 5 — INVESTMENT SECURITIES The following table presents the amortized cost, gross unrealized gains and losses and fair value by major categories of available-for-sale investment securities, which are carried at fair value, and a held-to-maturity investment security, which is carried at amortized cost:
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 455,019 |  |  | $ | 1,440 |  |  | $ | (11 | ) |  | $ | 456,448 |
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 381,986 |  |  | 1,386 |  |  | (41 | ) |  | 383,331 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 325,486 |  |  | 2,791 |  |  | (1,459 | ) |  | 326,818 |
Residential mortgage-backed securities |  | 1,188,753 |  |  | 8,538 |  |  | (2,453 | ) |  | 1,194,838 |
Municipal securities |  | 149,008 |  |  | 3,423 |  |  | (138 | ) |  | 152,293 |
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 51,396 |  |  | 1,578 |  |  | (17 | ) |  | 52,957 |
Corporate debt securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 282,106 |  |  | 533 |  |  | (652 | ) |  | 281,987 |
Non-investment grade (1) |  | 10,191 |  |  | — |  |  | (1,413 | ) |  | 8,778 |
Foreign bonds: |  |  |  |  |  |  |  |  |
Investment grade (1) (2) |  | 340,474 |  |  | 419 |  |  | (3,459 | ) |  | 337,434 |
Other securities |  | 40,388 |  |  | 1,355 |  |  | (3 | ) |  | 41,740 |
Total available-for-sale investment securities |  | 3,224,807 |  |  | 21,463 |  |  | (9,646 | ) |  | 3,236,624 |
Held-to-maturity investment security: |  |  |  |  |  |  |  |
Non-agency commercial mortgage-backed security |  | 154,461 |  |  | — |  |  | (165 | ) |  | 154,296 |
Total investment securities |  | $ | 3,379,268 |  |  | $ | 21,463 |  |  | $ | (9,811 | ) |  | $ | 3,390,920 |
As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 1,002,874 |  |  | $ | 33 |  |  | $ | (4,392 | ) |  | $ | 998,515 |
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 771,288 |  |  | 555 |  |  | (2,994 | ) |  | 768,849 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 354,418 |  |  | 268 |  |  | (3,024 | ) |  | 351,662 |
Residential mortgage-backed securities |  | 996,255 |  |  | 7,542 |  |  | (6,401 | ) |  | 997,396 |
Municipal securities |  | 173,785 |  |  | 2,657 |  |  | (793 | ) |  | 175,649 |
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 62,133 |  |  | 433 |  |  | (173 | ) |  | 62,393 |
Corporate debt securities: |  |  |  |  |  |  |  |  |
Investment grade (1) |  | 280,850 |  |  | 129 |  |  | (1,547 | ) |  | 279,432 |
Non-investment grade (1) |  | 11,491 |  |  | — |  |  | (1,849 | ) |  | 9,642 |
Foreign bonds: |  |  |  |  |  |  |  |
Investment grade (1) (2) |  | 90,586 |  |  | 3 |  |  | (794 | ) |  | 89,795 |
Other securities |  | 40,149 |  |  | 124 |  |  | (380 | ) |  | 39,893 |
Total available-for-sale investment securities |  | $ | 3,783,829 |  |  | $ | 11,744 |  |  | $ | (22,347 | ) |  | $ | 3,773,226 |
(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. Classifications are based on the lower of the credit ratings by S&P or Moody’s.
(2) | Fair values of foreign bonds include $296.8 million and $49.7 million of multilateral development bank bonds as of September 30, 2016 and December 31, 2015, respectively.
Unrealized Losses The following table presents the Company’s investment portfolio’s gross unrealized losses and related fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
($ in thousands) |  | Less Than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 30,375 |  |  | $ | (11 | ) |  | $ | — |  |  | $ | — |  |  | $ | 30,375 |  |  | $ | (11 | )
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 35,019 |  |  | (41 | ) |  | — |  |  | — |  |  | 35,019 |  |  | (41 | )
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 61,708 |  |  | (716 | ) |  | 59,680 |  |  | (743 | ) |  | 121,388 |  |  | (1,459 | )
Residential mortgage-backed securities |  | 304,826 |  |  | (1,658 | ) |  | 70,557 |  |  | (795 | ) |  | 375,383 |  |  | (2,453 | )
Municipal securities |  | 5,334 |  |  | (111 | ) |  | 2,870 |  |  | (27 | ) |  | 8,204 |  |  | (138 | )
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 7,027 |  |  | (17 | ) |  | — |  |  | — |  |  | 7,027 |  |  | (17 | )
Corporate debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 49,377 |  |  | (178 | ) |  | 81,935 |  |  | (474 | ) |  | 131,312 |  |  | (652 | )
Non-investment grade |  | — |  |  | — |  |  | 8,778 |  |  | (1,413 | ) |  | 8,778 |  |  | (1,413 | )
Foreign bonds: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 276,313 |  |  | (3,109 | ) |  | 9,650 |  |  | (350 | ) |  | 285,963 |  |  | (3,459 | )
Other securities |  | 2,690 |  |  | (3 | ) |  | — |  |  | — |  |  | 2,690 |  |  | (3 | )
Total available-for-sale investment securities |  | 772,669 |  |  | (5,844 | ) |  | 233,470 |  |  | (3,802 | ) |  | 1,006,139 |  |  | (9,646 | )
Held-to-maturity investment security: |  |  |  |  |  |  |  |  |  |  |  |
Non-agency commercial mortgage-backed security |  | 154,296 |  |  | (165 | ) |  | — |  |  | — |  |  | 154,296 |  |  | (165 | )
Total investment securities |  | $ | 926,965 |  |  | $ | (6,009 | ) |  | $ | 233,470 |  |  | $ | (3,802 | ) |  | $ | 1,160,435 |  |  | $ | (9,811 | )
As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 907,400 |  |  | $ | (4,250 | ) |  | $ | 20,282 |  |  | $ | (142 | ) |  | $ | 927,682 |  |  | $ | (4,392 | )
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 541,385 |  |  | (2,994 | ) |  | — |  |  | — |  |  | 541,385 |  |  | (2,994 | )
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 252,340 |  |  | (2,562 | ) |  | 20,793 |  |  | (462 | ) |  | 273,133 |  |  | (3,024 | )
Residential mortgage-backed securities |  | 535,842 |  |  | (4,530 | ) |  | 58,315 |  |  | (1,871 | ) |  | 594,157 |  |  | (6,401 | )
Municipal securities |  | 48,495 |  |  | (437 | ) |  | 14,739 |  |  | (356 | ) |  | 63,234 |  |  | (793 | )
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 5,123 |  |  | (1 | ) |  | 6,242 |  |  | (172 | ) |  | 11,365 |  |  | (173 | )
Corporate debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 149,358 |  |  | (683 | ) |  | 80,276 |  |  | (864 | ) |  | 229,634 |  |  | (1,547 | )
Non-investment grade |  | — |  |  | — |  |  | 9,642 |  |  | (1,849 | ) |  | 9,642 |  |  | (1,849 | )
Foreign bonds: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 74,101 |  |  | (506 | ) |  | 9,713 |  |  | (288 | ) |  | 83,814 |  |  | (794 | )
Other securities |  | 13,475 |  |  | (112 | ) |  | 8,731 |  |  | (268 | ) |  | 22,206 |  |  | (380 | )
Total available-for-sale investment securities |  | $ | 2,527,519 |  |  | $ | (16,075 | ) |  | $ | 228,733 |  |  | $ | (6,272 | ) |  | $ | 2,756,252 |  |  | $ | (22,347 | )
For each reporting period, the Company examines all individual securities that are in an unrealized loss position for OTTI. For discussion of the factors and criteria the Company uses in analyzing securities for OTTI, please see Note 1 — Summary of Significant Accounting Policies t o the Consolidated Financial Statements of the Company’s 2015 Form 10-K. The unrealized losses were primarily attributed to the yield curve movement, in addition to 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. The Company believes the gross unrealized losses detailed in the previous tables are temporary and are not due to reasons of credit quality. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, no impairment loss has been recorded in the Company’s Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015. During the first quarter of 2016, the Company obtained a non-agency mortgage-backed investment security, through the securitization of multifamily real estate loans, which was classified as held-to-maturity and is measured at amortized cost. The Company has the intent and ability to hold the security to maturity. For detailed discussion, please see to Note 7 — Loans Receivable And Allowance For Credit Losses to the Consolidated Financial Statements. OTTI 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, 2016 and 2015:
($ in thousands) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Beginning balance |  | $ | — |  |  | $ | 106,688 |  |  | $ | — |  |  | $ | 112,338 |
Addition of OTTI previously not recognized |  | — |  |  | — |  |  | — |  |  | — |
Additional increase 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 |  |  | $ | — |  |  | $ | 31,923 |
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 $80.4 million. Realized Gains and Losses The following table presents the proceeds, gross realized gains and losses related to the sales of available-for-sale investment securities for the three and nine months ended September 30, 2016 and 2015:
($ in thousands) |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Proceeds from sales |  | $ | 143,513 |  |  | $ | 855,425 |  |  | $ | 1,008,256 |  |  | $ | 1,328,487 |
Gross realized gains |  | $ | 1,790 |  |  | $ | 17,036 |  |  | $ | 8,593 |  |  | $ | 26,994 |
Gross realized losses |  | $ | — |  |  | $ | — |  |  | $ | 125 |  |  | $ | — |
Related tax expense |  | $ | 752 |  |  | $ | 7,155 |  |  | $ | 3,560 |  |  | $ | 11,337 |
Scheduled Maturities of Investment Securities The following table presents the scheduled maturities of available-for-sale investment securities as of September 30, 2016:
($ in thousands) |  | Amortized Cost |  | Estimated Fair Value
Due within one year |  | $ | 664,482 |  |  | $ | 661,989 |
Due after one year through five years |  | 587,483 |  |  | 592,032 |
Due after five years through ten years |  | 362,297 |  |  | 363,709 |
Due after ten years |  | 1,610,545 |  |  | 1,618,894 |
Total available-for-sale investment securities |  | $ | 3,224,807 |  |  | $ | 3,236,624 |
The following table presents the scheduled maturity of the held-to-maturity investment security as of September 30, 2016:
($ in thousands) |  | Amortized Cost |  | Estimated Fair Value
Due after ten years |  | $ | 154,461 |  |  | $ | 154,296 |
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 fair values of $955.7 million and $873.0 million as of September 30, 2016 and December 31, 2015, respectively, were pledged to secure public deposits, repurchase agreements, the Federal Reserve Bank’s discount window, and for other purposes required or permitted by law.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration