XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Securities | 6 Months Ended
--- | ---
Jun. 30, 2018
Securities | Note 4. Securities The following tables summarize the Company’s portfolio of debt securities available for sale and equity investments with readily determinable fair values at June 30, 2018 and December 31, 2017:
|  | June 30, 2018
|  |  |  | Gross |  | Gross |  |
|  | Amortized |  | Unrealized |  | Unrealized |  |
(in thousands) |  | Cost |  | Gain |  | Loss |  | Fair Value
Debt securities available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Related Debt Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  |  | $ | 1,936,949 |  |  |  | $ | 11,307 |  |  |  | $ | 24,840 |  |  |  | $ | 1,923,416 |
GSE CMOs |  |  |  | 658,435 |  |  |  |  | 5,755 |  |  |  |  | 4,418 |  |  |  |  | 659,772 |
Total mortgage-related debt securities |  |  | $ | 2,595,384 |  |  |  | $ | 17,062 |  |  |  | $ | 29,258 |  |  |  | $ | 2,583,188 |
Other Debt Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Treasury securities |  |  | $ | 199,839 |  |  |  | $ | -- |  |  |  | $ | 143 |  |  |  | $ | 199,696 |
GSE debentures |  |  |  | 562,866 |  |  |  |  | 929 |  |  |  |  | 9,146 |  |  |  |  | 554,649 |
Asset-backed securities (1) |  |  |  | 280,755 |  |  |  |  | 201 |  |  |  |  | 158 |  |  |  |  | 280,798 |
Municipal bonds |  |  |  | 69,546 |  |  |  |  | 178 |  |  |  |  | 2,119 |  |  |  |  | 67,605 |
Corporate bonds |  |  |  | 379,069 |  |  |  |  | 9,922 |  |  |  |  | 898 |  |  |  |  | 388,093 |
Capital trust notes |  |  |  | 48,252 |  |  |  |  | 6,478 |  |  |  |  | 5,876 |  |  |  |  | 48,854 |
Total other debt securities |  |  | $ | 1,540,327 |  |  |  | $ | 17,708 |  |  |  | $ | 18,340 |  |  |  | $ | 1,539,695 |
Total debt securities available for sale (2) |  |  | $ | 4,135,711 |  |  |  | $ | 34,770 |  |  |  | $ | 47,598 |  |  |  | $ | 4,122,883 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | $ | 15,292 |  |  |  | $ | -- |  |  |  | $ | 184 |  |  |  | $ | 15,108 |
Mutual funds and common stock (3) |  |  |  | 16,874 |  |  |  |  | 346 |  |  |  |  | 562 |  |  |  |  | 16,658 |
Total equity securities |  |  | $ | 32,166 |  |  |  | $ | 346 |  |  |  | $ | 746 |  |  |  | $ | 31,766 |
Total securities |  |  | $ | 4,167,877 |  |  |  | $ | 35,116 |  |  |  | $ | 48,344 |  |  |  | $ | 4,154,649 |
(1) | The underlying assets of the asset-backed securities are substantially guaranteed by the U.S. Government.
(2) | The amortized cost includes the non-credit portion of OTTI recorded in AOCL. At June 30, 2018, the non-credit portion of OTTI recorded in AOCL was $8.6 million before taxes.
(3) | Primarily consists of mutual funds that are CRA-qualified investments.
|  | December 31, 2017
|  |  |  | Gross |  | Gross |  |
|  | Amortized |  | Unrealized |  | Unrealized |  |
(in thousands) |  | Cost |  | Gain |  | Loss |  | Fair Value
Mortgage-Related Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  |  | $ | 2,023,677 |  |  |  | $ | 46,364 |  |  |  | $ | 1,199 |  |  |  | $ | 2,068,842 |
GSE CMOs |  |  |  | 536,284 |  |  |  |  | 14,446 |  |  |  |  | 826 |  |  |  |  | 549,904 |
Total mortgage-related securities |  |  | $ | 2,559,961 |  |  |  | $ | 60,810 |  |  |  | $ | 2,025 |  |  |  | $ | 2,618,746 |
Other Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Treasury obligations |  |  | $ | 199,960 |  |  |  | $ | -- |  |  |  | $ | 62 |  |  |  | $ | 199,898 |
GSE debentures |  |  |  | 473,879 |  |  |  |  | 2,044 |  |  |  |  | 2,665 |  |  |  |  | 473,258 |
Municipal bonds |  |  |  | 70,381 |  |  |  |  | 540 |  |  |  |  | 801 |  |  |  |  | 70,120 |
Corporate bonds |  |  |  | 79,702 |  |  |  |  | 11,073 |  |  |  |  | -- |  |  |  |  | 90,775 |
Capital trust notes |  |  |  | 48,230 |  |  |  |  | 6,498 |  |  |  |  | 8,632 |  |  |  |  | 46,096 |
Preferred stock |  |  |  | 15,292 |  |  |  |  | 142 |  |  |  |  | -- |  |  |  |  | 15,434 |
Mutual funds and common stock (1) |  |  |  | 16,874 |  |  |  |  | 487 |  |  |  |  | 261 |  |  |  |  | 17,100 |
Total other securities |  |  | $ | 904,318 |  |  |  | $ | 20,784 |  |  |  | $ | 12,421 |  |  |  | $ | 912,681 |
Total securities available for sale (2) |  |  | $ | 3,464,279 |  |  |  | $ | 81,594 |  |  |  | $ | 14,446 |  |  |  | $ | 3,531,427 |
(1) | Primarily consists of mutual funds that are CRA-qualified investments.
(2) | The amortized cost includes the non-credit portion of OTTI recorded in AOCL. At December 31, 2017, the non-credit portion of OTTI recorded in AOCL was $8.6 million before taxes.
At June 30, 2018 and December 31, 2017, respectively, the Company had $653.1 million and $603.8 million of FHLB-NY stock, at cost. The Company maintains an investment in FHLB-NY stock partly in conjunction with its membership in the FHLB and partly related to its access to the FHLB funding it utilizes. The following table summarizes the gross proceeds and gross realized gains from the sale of available-for-sale securities during the six months ended June 30, 2018 and 2017:
|  | For the Six Months Ended
|  | June 30,
(in thousands) |  | 2018 |  | 2017 |  |
Gross proceeds |  |  | $ | -- |  |  | $139,009 |  |
Gross realized gains |  |  |  | -- |  |  | 1,986 |  |
In the following table, the beginning balance represents the credit loss component for debt securities on which OTTI occurred prior to January 1, 2018. 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).
|  | For the
|  | Six Months Ended
(in thousands) |  | June 30, 2018
Beginning credit loss amount as of December 31, 2017 |  |  |  | $196,333 |
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 cash flows on debt securities |  |  |  | 30 |
Ending credit loss amount as of June 30, 2018 |  |  |  | $196,303 |
The following table summarizes, by contractual maturity, the amortized cost of securities at June 30, 2018:
|  | Mortgage- Related Securities |  | Average Yield |  | U.S. Government and GSE Obligations |  | Average Yield |  | State, County, and Municipal |  | Average Yield (1) |  | Other Debt Securities (2) |  | Average Yield |  | Fair Value
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-Sale Debt Securities: (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  |  | $ | -- |  |  |  |  | -- | % |  |  | $ | 199,839 |  |  |  |  | 1.70 | % |  |  | $ | 149 |  |  |  |  | 6.51 | % |  |  | $ | -- |  |  |  |  | -- | % |  |  | $ | 199,846 |
Due from one to five years |  |  |  | 1,219,407 |  |  |  |  | 3.34 |  |  |  |  | 6,950 |  |  |  |  | 3.84 |  |  |  |  | 293 |  |  |  |  | 6.63 |  |  |  |  | 48,648 |  |  |  |  | 3.86 |  |  |  |  | 1,283,154 |
Due from five to ten years |  |  |  | 557,628 |  |  |  |  | 3.39 |  |  |  |  | 471,325 |  |  |  |  | 3.11 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 330,421 |  |  |  |  | 3.98 |  |  |  |  | 1,359,372 |
Due after ten years |  |  |  | 818,349 |  |  |  |  | 2.94 |  |  |  |  | 84,591 |  |  |  |  | 3.09 |  |  |  |  | 69,104 |  |  |  |  | 2.88 |  |  |  |  | 329,007 |  |  |  |  | 3.24 |  |  |  |  | 1,280,511 |
Total debt securities available for sale |  |  | $ | 2,595,384 |  |  |  |  | 3.22 | % |  |  | $ | 762,705 |  |  |  |  | 2.74 | % |  |  | $ | 69,546 |  |  |  |  | 2.90 | % |  |  | $ | 708,076 |  |  |  |  | 3.63 | % |  |  | $ | 4,122,883 |
(1) | Not presented on a tax-equivalent basis.
(2) | Includes corporate bonds, capital trust notes, and asset-backed securities.
(3) | As equity securities have no contractual maturity, they have been excluded from this table.
The following table presents securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of June 30, 2018:
|  | 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 Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Treasury securities |  |  | $ | 199,695 |  |  |  | $ | 143 |  |  |  | $ | -- |  |  |  | $ | -- |  |  |  | $ | 199,695 |  |  |  | $ | 143 |
U. S. Government agency and GSE obligations |  |  |  | 524,847 |  |  |  |  | 9,146 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 524,847 |  |  |  |  | 9,146 |
GSE certificates |  |  |  | 959,158 |  |  |  |  | 23,556 |  |  |  |  | 19,434 |  |  |  |  | 1,284 |  |  |  |  | 978,592 |  |  |  |  | 24,840 |
GSE CMOs |  |  |  | 329,114 |  |  |  |  | 4,418 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 329,114 |  |  |  |  | 4,418 |
Asset-backed securities |  |  |  | 112,408 |  |  |  |  | 158 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 112,408 |  |  |  |  | 158 |
Municipal bonds |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 50,087 |  |  |  |  | 2,119 |  |  |  |  | 50,087 |  |  |  |  | 2,119 |
Corporate bonds |  |  |  | 293,218 |  |  |  |  | 898 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 293,218 |  |  |  |  | 898 |
Capital trust notes |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 37,883 |  |  |  |  | 5,876 |  |  |  |  | 37,883 |  |  |  |  | 5,876 |
Equity securities |  |  |  | 19,089 |  |  |  |  | 211 |  |  |  |  | 11,271 |  |  |  |  | 535 |  |  |  |  | 30,360 |  |  |  |  | 746 |
Total temporarily impaired securities |  |  | $ | 2,437,529 |  |  |  | $ | 38,530 |  |  |  | $ | 118,675 |  |  |  | $ | 9,814 |  |  |  | $ | 2,556,204 |  |  |  | $ | 48,344 |
The following table presents securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2017:
|  | 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 Available-for-Sale Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  |  | $ | 232,546 |  |  |  | $ | 535 |  |  |  | $ | 20,440 |  |  |  | $ | 664 |  |  |  | $ | 252,986 |  |  |  | $ | 1,199 |
GSE debentures |  |  |  | 333,045 |  |  |  |  | 2,665 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 333,045 |  |  |  |  | 2,665 |
GSE CMOs |  |  |  | 118,694 |  |  |  |  | 826 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 118,694 |  |  |  |  | 826 |
U. S. Treasury obligations |  |  |  | 199,898 |  |  |  |  | 62 |  |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 199,898 |  |  |  |  | 62 |
Municipal bonds |  |  |  | 11,169 |  |  |  |  | 259 |  |  |  |  | 41,054 |  |  |  |  | 542 |  |  |  |  | 52,223 |  |  |  |  | 801 |
Capital trust notes |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 35,105 |  |  |  |  | 8,632 |  |  |  |  | 35,105 |  |  |  |  | 8,632 |
Equity securities |  |  |  | -- |  |  |  |  | -- |  |  |  |  | 11,545 |  |  |  |  | 261 |  |  |  |  | 11,545 |  |  |  |  | 261 |
Total temporarily impaired available-for-sale securities |  |  | $ | 895,352 |  |  |  | $ | 4,347 |  |  |  | $ | 108,144 |  |  |  | $ | 10,099 |  |  |  | $ | 1,003,496 |  |  |  | $ | 14,446 |
An OTTI loss on impaired debt 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 June 30, 2018, the Company had unrealized losses on certain GSE obligations, U.S. Treasury obligations, municipal bonds, corporate bonds, asset-backed securities, capital trust notes, and equity securities. The unrealized losses on the Company’s GSE obligations, U.S. Treasury obligations, municipal bonds, corporate bonds, asset-backed securities and capital trust notes at June 30, 2018 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; 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 June 30, 2018 were 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 to the failure of the securities to fully recover in value as currently anticipated 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 both June 30, 2018 and December 31, 2017 consisted of six agency mortgage-related securities, five capital trust notes, three municipal bonds, and one mutual fund. At June 30, 2018, the fair value of securities having a continuous loss position for twelve months or more was 7.6% below the collective amortized cost of $128.5 million. At December 31, 2017, the fair value of such securities was 8.5% below the collective amortized cost of $118.2 million. At June 30, 2018 and December 31, 2017, the combined market value of the respective securities represented unrealized losses of $9.8 million and $10.1 million, respectively.

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