XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Securities | 3 Months Ended
--- | ---
Mar. 31, 2016
Securities | Note 4. Securities The following tables summarize the Company’s portfolio of securities available for sale at March 31, 2016 and December 31, 2015:
|  | March 31, 2016 |
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Municipal bonds |  | $ | 727 |  |  | $ | 73 |  |  | $ | — |  |  | $ | 800 |
Capital trust notes |  |  | 9,448 |  |  |  | — |  |  |  | 2,607 |  |  |  | 6,841 |
Preferred stock |  |  | 118,205 |  |  |  | 9,184 |  |  |  | 275 |  |  |  | 127,114 |
Mutual funds and common stock (1) |  |  | 16,876 |  |  |  | 618 |  |  |  | — |  |  |  | 17,494 |
Total securities available for sale |  | $ | 145,256 |  |  | $ | 9,875 |  |  | $ | 2,882 |  |  | $ | 152,249 |
(1) | Primarily consists of mutual funds that are Community Reinvestment Act-qualified investments.
|  | December 31, 2015 |
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates (1) |  | $ | 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 |
Common stock |  |  | 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.
The following tables summarize the Company’s portfolio of securities held to maturity at March 31, 2016 and December 31, 2015:
|  | March 31, 2016 |
(in thousands) |  | Amortized Cost |  |  | Carrying Amount |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Fair Value |
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | 2,256,996 |  |  | $ | 2,256,996 |  |  | $ | 140,529 |  |  | $ | 54 |  |  | $ | 2,397,471 |
GSE CMOs (1) |  |  | 1,229,105 |  |  |  | 1,229,105 |  |  |  | 76,401 |  |  |  | — |  |  |  | 1,305,506 |
Total mortgage-related securities |  | $ | 3,486,101 |  |  | $ | 3,486,101 |  |  | $ | 216,930 |  |  | $ | 54 |  |  | $ | 3,702,977 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE debentures |  | $ | 368,784 |  |  | $ | 368,784 |  |  | $ | 19,461 |  |  | $ | — |  |  | $ | 388,245 |
Municipal bonds |  |  | 74,419 |  |  |  | 74,419 |  |  |  | 1,661 |  |  |  | — |  |  |  | 76,080 |
Corporate bonds |  |  | 73,871 |  |  |  | 73,871 |  |  |  | 11,049 |  |  |  | — |  |  |  | 84,920 |
Capital trust notes |  |  | 74,262 |  |  |  | 65,575 |  |  |  | 3,058 |  |  |  | 16,694 |  |  |  | 51,939 |
Total other securities |  | $ | 591,336 |  |  | $ | 582,649 |  |  | $ | 35,229 |  |  | $ | 16,694 |  |  | $ | 601,184 |
Total securities held to maturity (2) |  | $ | 4,077,437 |  |  | $ | 4,068,750 |  |  | $ | 252,159 |  |  | $ | 16,748 |  |  | $ | 4,304,161 |
(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 Accumulated Other Comprehensive Loss (“AOCL”). At March 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.7 million, pre-tax.
|  | 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 |
Municipal bonds |  |  | 75,317 |  |  |  | 75,317 |  |  |  | 262 |  |  |  | 1,084 |  |  |  | 74,495 |
Corporate bonds |  |  | 73,756 |  |  |  | 73,756 |  |  |  | 10,503 |  |  |  | — |  |  |  | 84,259 |
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, pre-tax.
At March 31, 2016 and December 31, 2015, respectively, the Company had $551.2 million and $664.0 million of Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost. In order to have access to the funding provided by the FHLB-NY, the Company is required to maintain an investment in FHLB-NY stock. The following table summarizes the gross proceeds and gross realized gains from the sale of available-for-sale securities during the three months ended March 31, 2016 and 2015:
|  | For the Three Months Ended March 31, |
(in thousands) |  | 2016 |  |  | 2015 |
Gross proceeds |  | $ | 104,663 |  |  | $ | 135,211 |
Gross realized gains |  |  | 163 |  |  |  | 211 |
There were no gross realized losses from the sale of available-for-sale securities during the three months ended March 31, 2016 or 2015. In the following table, the beginning balance represents the credit loss component for debt securities on which OTTI occurred prior to January 1, 2016. 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 Three Months Ended March 31, 2016 |
Beginning credit loss amount as of January 1, 2016 |  | $ | 198,766 |
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 |  |  | — |
Ending credit loss amount as of March 31, 2016 |  | $ | 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 March 31, 2016, by contractual maturity.
|  | At March 31, 2016 |  |  |  |
(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 |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 327 |  |  |  | 2.96 | % |  | $ | — |  |  |  | — | % |  | $ | 328 |
Due from one to five years |  |  | 358,897 |  |  |  | 3.74 |  |  |  | 59,792 |  |  |  | 4.17 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 452,138 |
Due from five to ten years |  |  | 2,709,236 |  |  |  | 3.23 |  |  |  | 308,992 |  |  |  | 3.14 |  |  |  | — |  |  |  | — |  |  |  | 64,211 |  |  |  | 4.74 |  |  |  | 3,279,755 |
Due after ten years |  |  | 417,968 |  |  |  | 2.93 |  |  |  | — |  |  |  | — |  |  |  | 74,092 |  |  |  | 2.89 |  |  |  | 75,235 |  |  |  | 5.14 |  |  |  | 571,940 |
Total securities held to maturity |  | $ | 3,486,101 |  |  |  | 3.25 | % |  | $ | 368,784 |  |  |  | 3.31 | % |  | $ | 74,419 |  |  |  | 2.89 | % |  | $ | 139,446 |  |  |  | 4.96 | % |  | $ | 4,304,161 |
Available-for-Sale Securities: (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 149 |  |  |  | 6.39 | % |  | $ | — |  |  |  | — | % |  | $ | 154 |
Due from one to five years |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 578 |  |  |  | 6.56 |  |  |  | — |  |  |  | — |  |  |  | 646 |
Due from five to ten years |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Due after ten years |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,448 |  |  |  | 4.46 |  |  |  | 6,841 |
Total securities available for sale |  | $ | — |  |  |  | — | % |  | $ | — |  |  |  | — | % |  | $ | 727 |  |  |  | 6.52 | % |  | $ | 9,448 |  |  |  | 4.46 | % |  | $ | 7,641 |
(1) | Not presented on a tax-equivalent basis.
(2) | Includes corporate bonds and capital trust notes
(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 March 31, 2016:
At March 31, 2016 |  | 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 certificates |  | $ | 7,769 |  |  | $ | 14 |  |  | $ | 5,069 |  |  | $ | 40 |  |  | $ | 12,838 |  |  | $ | 54 |
GSE CMOs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Municipal bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Capital trust notes |  |  | 24,753 |  |  |  | 247 |  |  |  | 19,770 |  |  |  | 16,447 |  |  |  | 44,523 |  |  |  | 16,694 |
Total temporarily impaired held-to-maturity securities |  | $ | 32,522 |  |  | $ | 261 |  |  | $ | 24,839 |  |  | $ | 16,487 |  |  | $ | 57,361 |  |  | $ | 16,748 |
Temporarily Impaired Available-for-Sale Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital trust notes |  |  | 1,980 |  |  |  | 20 |  |  |  | 4,861 |  |  |  | 2,587 |  |  |  | 6,841 |  |  |  | 2,607 |
Equity securities |  |  | 15,017 |  |  |  | 275 |  |  |  | — |  |  |  | — |  |  |  | 15,017 |  |  |  | 275 |
Total temporarily impaired available-for-sale securities |  | $ | 16,997 |  |  | $ | 295 |  |  | $ | 4,861 |  |  | $ | 2,587 |  |  | $ | 21,858 |  |  | $ | 2,882 |
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 |
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. At March 31, 2016, the Company had unrealized losses on certain GSE mortgage-related securities, capital trust notes, and equity securities. The unrealized losses on the Company’s GSE mortgage-related securities 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 capital trust notes, as well as other information that is released by each of the issuers of such notes, to determine their continued creditworthiness. 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. The Company considers a decline in the fair value of 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 March 31, 2016 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 currently 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 March 31, 2016 consisted of five capital trust notes and three agency mortgage-backed securities. At December 31, 2015, the investment securities designated as having a continuous loss position for twelve months or more consisted of seven agency debt securities, five capital trust notes, and two agency mortgage-backed securities. At March 31, 2016 and December 31, 2015, the combined market value of the respective securities represented unrealized losses of $19.1 million and $24.9 million. At March 31, 2016, the fair value of securities having a continuous loss position for twelve months or more was 39.1% below the collective amortized cost of $48.8 million. At December 31, 2015, the fair value of such securities was 2.0% below the collective amortized cost of $1.2 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