XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Securities | 12 Months Ended
--- | ---
Dec. 31, 2015
Securities | NOTE 4: SECURITIES The following tables summarize the Company’s portfolio of securities available for sale at December 31, 2015 and 2014:
|  | December 31, 2015 |
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE(1) certificates |  | $ | 53,820 |  |  | $ | 33 |  |  | $ | 1 |  |  | $ | 53,852 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds |  | $ | 725 |  |  | $ | 70 |  |  | $ | — |  |  | $ | 795 |
Capital trust notes |  |  | 9,444 |  |  |  | — |  |  |  | 2,480 |  |  |  | 6,964 |
Preferred stock |  |  | 118,205 |  |  |  | 7,415 |  |  |  | 248 |  |  |  | 125,372 |
Mutual funds and common stock(2) |  |  | 16,877 |  |  |  | 470 |  |  |  | 75 |  |  |  | 17,272 |
Total other securities |  | $ | 145,251 |  |  | $ | 7,955 |  |  | $ | 2,803 |  |  | $ | 150,403 |
Total securities available for sale |  | $ | 199,071 |  |  | $ | 7,988 |  |  | $ | 2,804 |  |  | $ | 204,255 |
(1) | Government-sponsored enterprise.
(2) | Primarily consists of mutual funds that are Community Reinvestment Act-qualified investments.
|  | December 31, 2014 |
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | 18,350 |  |  | $ | 1,350 |  |  | $ | — |  |  | $ | 19,700 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds |  | $ | 841 |  |  | $ | 101 |  |  | $ | — |  |  | $ | 942 |
Capital trust notes |  |  | 13,431 |  |  |  | 31 |  |  |  | 1,980 |  |  |  | 11,482 |
Preferred stock |  |  | 118,205 |  |  |  | 5,246 |  |  |  | 440 |  |  |  | 123,011 |
Common stock |  |  | 17,943 |  |  |  | 748 |  |  |  | 43 |  |  |  | 18,648 |
Total other securities |  | $ | 150,420 |  |  | $ | 6,126 |  |  | $ | 2,463 |  |  | $ | 154,083 |
Total securities available for sale |  | $ | 168,770 |  |  | $ | 7,476 |  |  | $ | 2,463 |  |  | $ | 173,783 |
The following tables summarize the Company’s portfolio of securities held to maturity at December 31, 2015 and 2014:
|  | December 31, 2015 |
(in thousands) |  | Amortized Cost |  |  | Carrying Amount |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | 2,269,828 |  |  | $ | 2,269,828 |  |  | $ | 76,827 |  |  | $ | 4,722 |  |  | $ | 2,341,933 |
GSE CMOs (1) |  |  | 1,325,033 |  |  |  | 1,325,033 |  |  |  | 53,236 |  |  |  | 57 |  |  |  | 1,378,212 |
Total mortgage-related securities |  | $ | 3,594,861 |  |  | $ | 3,594,861 |  |  | $ | 130,063 |  |  | $ | 4,779 |  |  | $ | 3,720,145 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE debentures |  | $ | 2,159,856 |  |  | $ | 2,159,856 |  |  | $ | 23,892 |  |  | $ | 7,568 |  |  | $ | 2,176,180 |
Corporate bonds |  |  | 73,756 |  |  |  | 73,756 |  |  |  | 10,503 |  |  |  | — |  |  |  | 84,259 |
Municipal bonds |  |  | 75,317 |  |  |  | 75,317 |  |  |  | 262 |  |  |  | 1,084 |  |  |  | 74,495 |
Capital trust notes |  |  | 74,317 |  |  |  | 65,600 |  |  |  | 3,750 |  |  |  | 15,900 |  |  |  | 53,450 |
Total other securities |  | $ | 2,383,246 |  |  | $ | 2,374,529 |  |  | $ | 38,407 |  |  | $ | 24,552 |  |  | $ | 2,388,384 |
Total securities held to maturity (2) |  | $ | 5,978,107 |  |  | $ | 5,969,390 |  |  | $ | 168,470 |  |  | $ | 29,331 |  |  | $ | 6,108,529 |
(1) | Collateralized mortgage obligations.
(2) | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2015, the non-credit portion of OTTI recorded in AOCL was $8.7 million (before taxes).
|  | December 31, 2014 |
(in thousands) |  | Amortized Cost |  |  | Carrying Amount |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | 2,468,791 |  |  | $ | 2,468,791 |  |  | $ | 106,414 |  |  | $ | 3,838 |  |  | $ | 2,571,367 |
GSE CMOs |  |  | 1,610,243 |  |  |  | 1,610,243 |  |  |  | 65,075 |  |  |  | 711 |  |  |  | 1,674,607 |
Total mortgage-related securities |  | $ | 4,079,034 |  |  | $ | 4,079,034 |  |  | $ | 171,489 |  |  | $ | 4,549 |  |  | $ | 4,245,974 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE debentures |  | $ | 2,635,989 |  |  | $ | 2,635,989 |  |  | $ | 24,173 |  |  | $ | 32,920 |  |  | $ | 2,627,242 |
Corporate bonds |  |  | 73,317 |  |  |  | 73,317 |  |  |  | 12,113 |  |  |  | — |  |  |  | 85,430 |
Municipal bonds |  |  | 58,682 |  |  |  | 58,682 |  |  |  | — |  |  |  | 1,027 |  |  |  | 57,655 |
Capital trust notes |  |  | 84,476 |  |  |  | 75,645 |  |  |  | 5,193 |  |  |  | 11,168 |  |  |  | 69,670 |
Total other securities |  | $ | 2,852,464 |  |  | $ | 2,843,633 |  |  | $ | 41,479 |  |  | $ | 45,115 |  |  | $ | 2,839,997 |
Total securities held to maturity (1) |  | $ | 6,931,498 |  |  | $ | 6,922,667 |  |  | $ | 212,968 |  |  | $ | 49,664 |  |  | $ | 7,085,971 |
(1) | Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2014, the non-credit portion of OTTI recorded in AOCL was $8.8 million (before taxes).
At December 31, 2015 and 2014, respectively, the Company had $664.0 million and $515.3 million of FHLB stock, at cost, with the year-end 2015 amount consisting entirely of stock in the FHLB-NY. The Company is required to maintain an investment in FHLB-NY stock in order to have access to the funding it provides. 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, 2015, 2014 and 2013:
|  | December 31, |
(in thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Gross proceeds |  | $ | 278,689 |  |  | $ | 333,725 |  |  | $ | 631,802 |
Gross realized gains |  |  | 1,159 |  |  |  | 6,186 |  |  |  | 9,529 |
Gross realized losses |  |  | 4 |  |  |  | — |  |  |  | 45 |
In addition, during the twelve months ended December 31, 2015, the Company sold held-to-maturity securities with gross proceeds of $44.1 million and realized gains of $2.9 million. During the twelve months ended December 31, 2014, the Company sold held-to-maturity securities with gross proceeds of $139.3 million and realized gains of $7.8 million. All of the held-to-maturity securities sold in 2015 and 2014 were securities on which the Company had collected a substantial portion (at least 85%) of the initial principal balance. In the following table, the beginning balance represents the credit loss component for debt securities on which OTTI occurred prior to January 1, 2015. For credit-impaired debt securities, OTTI recognized in earnings after that date is presented as an addition in two components, based upon whether the current period is the first time a debt security was credit-impaired (initial credit impairment) or is not the first time a debt security was credit-impaired (subsequent credit impairment).
(in thousands) |  | For the Twelve Months Ended December 31, 2015 |
Beginning credit loss amount as of December 31, 2014 |  | $ | 199,008 |
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 expected cash flows on debt securities |  |  | 242 |
Ending credit loss amount as of December 31, 2015 |  | $ | 198,766 |
The following table summarizes the carrying amounts and estimated fair values of held-to-maturity mortgage-backed securities and debt securities, and the amortized costs and estimated fair values of available-for-sale securities, at December 31, 2015, by contractual maturity.
|  | At December 31, 2015 |  |  |  |
(dollars in thousands) |  | Mortgage- Related Securities |  |  | Average Yield |  |  | U.S. Treasury and GSE Obligations |  |  | Average Yield |  |  | State, County, and Municipal |  |  | Average Yield (1) |  |  | Other Debt Securities (2) |  |  | Average Yield |  |  | Fair Value |
Held-to-Maturity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 435 |  |  |  | 2.96 | % |  | $ | — |  |  |  | — | % |  | $ | 436 |
Due from one to five years |  |  | 307,108 |  |  |  | 3.71 |  |  |  | 59,860 |  |  |  | 4.17 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 389,464 |
Due from five to ten years |  |  | 2,857,493 |  |  |  | 3.21 |  |  |  | 2,099,996 |  |  |  | 2.74 |  |  |  | — |  |  |  | — |  |  |  | 64,109 |  |  |  | 4.70 |  |  |  | 5,140,090 |
Due after ten years |  |  | 430,260 |  |  |  | 2.97 |  |  |  | — |  |  |  | — |  |  |  | 74,882 |  |  |  | 2.90 |  |  |  | 75,247 |  |  |  | 5.07 |  |  |  | 578,539 |
Total securities held to maturity |  | $ | 3,594,861 |  |  |  | 3.22 | % |  | $ | 2,159,856 |  |  |  | 2.78 | % |  | $ | 75,317 |  |  |  | 2.90 | % |  | $ | 139,356 |  |  |  | 4.90 | % |  | $ | 6,108,529 |
Available-for-Sale Securities: (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 149 |  |  |  | 6.39 | % |  | $ | — |  |  |  | — | % |  | $ | 154 |
Due from one to five years |  |  | 1,860 |  |  |  | 7.45 |  |  |  | — |  |  |  | — |  |  |  | 576 |  |  |  | 6.56 |  |  |  | — |  |  |  | — |  |  |  | 2,533 |
Due from five to ten years |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Due after ten years |  |  | 51,960 |  |  |  | 4.98 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,444 |  |  |  | 4.30 |  |  |  | 58,924 |
Total securities available for sale |  | $ | 53,820 |  |  |  | 5.06 | % |  | $ | — |  |  |  | — | % |  | $ | 725 |  |  |  | 6.52 | % |  | $ | 9,444 |  |  |  | 4.30 | % |  | $ | 61,611 |
(1) | Not presented on a tax-equivalent basis.
(2) | Includes corporate bonds and capital trust notes. Included in capital trust notes are $62,000 of pooled trust preferred securities held to maturity, all of which are due after ten years. The remaining capital trust notes consist of single-issue trust preferred securities.
(3) | As equity securities have no contractual maturity, they have been excluded from this table.
The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2015:
At December 31, 2015 |  | 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 Held-to-Maturity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE debentures |  | $ | 547,484 |  |  | $ | 728 |  |  | $ | 1,176,949 |  |  | $ | 6,840 |  |  | $ | 1,724,433 |  |  | $ | 7,568 |
GSE certificates |  |  | 299,019 |  |  |  | 4,608 |  |  |  | 3,899 |  |  |  | 114 |  |  |  | 302,918 |  |  |  | 4,722 |
GSE CMOs |  |  | 9,943 |  |  |  | 57 |  |  |  | — |  |  |  | — |  |  |  | 9,943 |  |  |  | 57 |
Municipal bonds |  |  | 42,083 |  |  |  | 1,084 |  |  |  | — |  |  |  | — |  |  |  | 42,083 |  |  |  | 1,084 |
Capital trust notes |  |  | 24,601 |  |  |  | 399 |  |  |  | 20,710 |  |  |  | 15,501 |  |  |  | 45,311 |  |  |  | 15,900 |
Total temporarily impaired held-to-maturity securities |  | $ | 923,130 |  |  | $ | 6,876 |  |  | $ | 1,201,558 |  |  | $ | 22,455 |  |  | $ | 2,124,688 |  |  | $ | 29,331 |
Temporarily Impaired Available-for-Sale Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | 51,959 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 51,959 |  |  | $ | 1 |
Capital trust notes |  |  | 1,968 |  |  |  | 32 |  |  |  | 4,997 |  |  |  | 2,448 |  |  |  | 6,965 |  |  |  | 2,480 |
Equity securities |  |  | 51,775 |  |  |  | 323 |  |  |  | — |  |  |  | — |  |  |  | 51,775 |  |  |  | 323 |
Total temporarily impaired available-for-sale securities |  | $ | 105,702 |  |  | $ | 356 |  |  | $ | 4,997 |  |  | $ | 2,448 |  |  | $ | 110,699 |  |  | $ | 2,804 |
The following table presents held-to-maturity and available-for-sale securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2014:
At December 31, 2014 |  | 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 Held-to-Maturity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE debentures |  | $ | — |  |  | $ | — |  |  | $ | 2,204,399 |  |  | $ | 32,920 |  |  | $ | 2,204,399 |  |  | $ | 32,920 |
GSE certificates |  |  | — |  |  |  | — |  |  |  | 242,909 |  |  |  | 3,838 |  |  |  | 242,909 |  |  |  | 3,838 |
GSE CMOs |  |  | — |  |  |  | — |  |  |  | 72,209 |  |  |  | 711 |  |  |  | 72,209 |  |  |  | 711 |
Municipal bonds |  |  | 13,735 |  |  |  | 195 |  |  |  | 43,058 |  |  |  | 832 |  |  |  | 56,793 |  |  |  | 1,027 |
Capital trust notes |  |  | — |  |  |  | — |  |  |  | 25,019 |  |  |  | 11,168 |  |  |  | 25,019 |  |  |  | 11,168 |
Total temporarily impaired held-to-maturity securities |  | $ | 13,735 |  |  | $ | 195 |  |  | $ | 2,587,594 |  |  | $ | 49,469 |  |  | $ | 2,601,329 |  |  | $ | 49,664 |
Temporarily Impaired Available-for-Sale Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital trust notes |  | $ | — |  |  | $ | — |  |  | $ | 5,451 |  |  | $ | 1,980 |  |  | $ | 5,451 |  |  | $ | 1,980 |
Equity securities |  |  | 53,721 |  |  |  | 364 |  |  |  | 15,174 |  |  |  | 119 |  |  |  | 68,895 |  |  |  | 483 |
Total temporarily impaired available-for-sale securities |  | $ | 53,721 |  |  | $ | 364 |  |  | $ | 20,625 |  |  | $ | 2,099 |  |  | $ | 74,346 |  |  | $ | 2,463 |
An OTTI loss on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security, or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does not expect to sell a debt security, it must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss occurs, only the amount of impairment associated with the credit loss is recognized in earnings. Amounts of impairment relating to factors other than credit losses are recorded in AOCL. Securities in unrealized loss positions are analyzed as part of the Company’s ongoing assessment of OTTI. When the Company intends to sell such securities, the Company recognizes an impairment loss equal to the full difference between the amortized cost basis and the fair value of those securities. When the Company does not intend to sell equity or debt securities in an unrealized loss position, potential OTTI is considered based on a variety of factors, including the length of time and extent to which the fair value has been less than the cost; adverse conditions specifically related to the industry, the geographic area, or financial condition of the issuer, or the underlying collateral of a security; the payment structure of the security; changes to the rating of the security by a rating agency; the volatility of the fair value changes; and changes in the fair value of the security after the balance sheet date. For debt securities, the Company estimates cash flows over the remaining life of the underlying collateral to assess whether credit losses exist and, where applicable, to determine if any adverse changes in cash flows have occurred. The Company’s cash flow estimates take into account expectations of relevant market and economic data as of the end of the reporting period. As of December 31, 2015, the Company did not intend to sell its securities with an unrealized loss position, and it was more likely than not that the Company would not be required to sell these securities before recovery of their amortized cost basis. The Company believes that the securities with an unrealized loss position were not other-than-temporarily impaired as of December 31, 2015. Other factors considered in determining whether or not an impairment is temporary include the severity of the impairment; the cause of the impairment; the near-term prospects of the issuer; and the forecasted recovery period using current estimates of volatility in market interest rates, including liquidity and risk premiums. Management’s assertion regarding its intent not to sell, or that it is not more likely than not that the Company will be required to sell a security before its anticipated recovery, is based on a number of factors, including a quantitative estimate of the expected recovery period (which may extend to maturity), and management’s intended strategy with respect to the identified security or portfolio. If management does have the intent to sell, or believes it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the unrealized loss is charged directly to earnings in the Consolidated Statement of Operations and Comprehensive (Loss) Income. The unrealized losses on the Company’s GSE mortgage-related securities, GSE municipal bonds, and GSE debentures at December 31, 2015 were primarily caused by movements in market interest rates and spread volatility, rather than credit risk. These securities are not expected to be settled at a price that is less than the amortized cost of the Company’s investment. The Company reviews quarterly financial information related to its investments in municipal bonds and capital trust notes, as well as other information that is released by each of the issuers of such bonds and notes, to determine their continued creditworthiness. The contractual terms of these investments do not permit settling the securities at prices that are less than the amortized costs of the investments. The Company continues to monitor these investments and currently estimates that the present value of expected cash flows is not less than the amortized cost of the securities. It is possible that these securities will perform worse than is currently expected, which could lead to adverse changes in cash flows from these securities and potential OTTI losses in the future. Future events that could trigger material unrecoverable declines in the fair values of the Company’s investments, and thus result in potential OTTI losses, include, but are not limited to: government intervention; deteriorating asset quality and credit metrics; significantly higher levels of default and loan loss provisions; losses in value on the underlying collateral; deteriorating credit enhancement; net operating losses; and illiquidity in the financial markets. At December 31, 2015, the Company’s equity securities portfolio consisted of perpetual preferred stock, common stock, and mutual funds. The Company considers a decline in the fair value of available-for-sale equity securities to be other than temporary if the Company does not expect to recover the entire amortized cost basis of the security. The unrealized losses on the Company’s equity securities at December 31, 2015, were primarily caused by market volatility. The Company evaluated the near-term prospects of recovering the fair value of these securities, together with the severity and duration of impairment to date, and determined that they were not other than temporarily impaired. Nonetheless, it is possible that these equity securities will perform worse than is currently expected, which could lead to adverse changes in their fair value, or the failure of the securities to fully recover in value as presently forecasted by management. Either event could cause the Company to record an OTTI loss in a future period. Events that could trigger a material decline in the fair value of these securities include, but are not limited to, deterioration in the equity markets; a decline in the quality of the loan portfolio of the issuer in which the Company has invested; and the recording of higher loan loss provisions and net operating losses by such issuer. The investment securities designated as having a continuous loss position for twelve months or more at December 31, 2015 consisted of seven agency debt securities, five capital trust notes, and two agency mortgage-backed securities. At December 31, 2014, the investment securities designated as having a continuous loss position for twelve months or more consisted of 16 agency mortgage-backed securities, 17 GSE debt securities, three GSE CMOs, five capital trust notes, two GSE municipal bonds, and one preferred stock security. At December 31, 2015 and 2014, the combined market value of the respective securities represented unrealized losses of $24.9 million and $51.6 million. At December 31, 2015, the fair value of securities having a continuous loss position for twelve months or more was 2.0% below the collective amortized cost of $1.2 billion. At December 31, 2014, the fair value of such securities was 1.9% below the collective amortized cost of $2.7 billion.

X
- Definition The entire disclosure for investments, including all tables. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 6 -Section 10 -Paragraph (c) -Subparagraph (1) + Details
Name: | invest_InvestmentTextBlock
Namespace Prefix: | invest_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration