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Investment Securities
 12 Months Ended
Dec. 31, 2011
Investment Securities  
Investment Securities

(2) Investment Securities

        The amortized cost and estimated fair value by type of investment security at December 31, 2011 are as follows:

 
   Held to Maturity  
 
   Amortized
cost 		  Gross
unrealized
gains 		  Gross
unrealized
losses 		  Estimated
fair value 		  Carrying
value 		 
 
   (Dollars in Thousands)
  

Other securities

   $ 2,450   $ —   $ —   $ 2,450   $ 2,450  
                       

Total investment securities

   $ 2,450   $ —   $ —   $ 2,450   $ 2,450  
                       

 

 
   Available for Sale  
 
   Amortized cost   Gross
unrealized
gains 		  Gross
unrealized
losses 		  Estimated
fair value 		  Carrying
value(1) 		 
 
   (Dollars in Thousands)
  

Residential mortgage-backed securities

   $ 4,851,747   $ 128,196   $ (10,680 ) $ 4,969,263   $ 4,969,263  

Obligations of states and political subdivisions

     211,523     14,449     (1,211 )   224,761     224,761  

Equity securities

     18,825     1,115     (49 )   19,891     19,891  
                       

Total investment securities

   $ 5,082,095   $ 143,760   $ (11,940 ) $ 5,213,915   $ 5,213,915  
                       
(1)
Included in the carrying value of residential mortgage-backed securities are $3,008,935 of mortgage-backed securities issued by Ginnie Mae, $1,920,723 of mortgage-backed securities issued by Fannie Mae and Freddie Mac and $39,605 issued by non-government entities

        The amortized cost and estimated fair value of investment securities at December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

 
   Held to Maturity   Available for Sale  
 
   Amortized
Cost 		  Estimated
fair value 		  Amortized
Cost 		  Estimated
fair value 		 
 
   (Dollars in Thousands)
  

Due in one year or less

   $ 1,125   $ 1,125   $ —   $ —  

Due after one year through five years

     1,325     1,325     636     641  

Due after five years through ten years

     —     —     4,068     4,149  

Due after ten years

     —     —     206,819     219,971  

Residential mortgage-backed securities

     —     —     4,851,747     4,969,263  

Equity securities

     —     —     18,825     19,891  
                   

Total investment securities

   $ 2,450   $ 2,450   $ 5,082,095   $ 5,213,915  
                   

        The amortized cost and estimated fair value by type of investment security at December 31, 2010 are as follows:

 
   Held to Maturity  
 
   Amortized
cost 		  Gross
unrealized
gains 		  Gross
unrealized
losses 		  Estimated
fair value 		  Carrying
value 		 
 
   (Dollars in Thousands)
  

Other securities

   $ 2,450   $ —   $ —   $ 2,450   $ 2,450  
                       

Total investment securities

   $ 2,450   $ —   $ —   $ 2,450   $ 2,450  
                       

 

 
   Available for Sale  
 
   Amortized
cost 		  Gross
unrealized
gains 		  Gross
unrealized
losses 		  Estimated
fair value 		  Carrying
value(1) 		 
 
   (Dollars in Thousands)
  

U.S. Treasury securities

   $ 1,327   $ —   $ —   $ 1,327   $ 1,327  

Residential mortgage-backed securities

     4,876,573     77,741     (29,846 )   4,924,468     4,924,468  

Obligations of states and political subdivisions

     150,122     636     (4,761 )   145,997     145,997  

Equity securities

     13,825     864     (24 )   14,665     14,665  
                       

Total investment securities

   $ 5,041,847   $ 79,241   $ (34,631 ) $ 5,086,457   $ 5,086,457  
                       
(1)
Included in the carrying value of residential mortgage-backed securities are $2,326,378 of mortgage-backed securities issued by Ginnie Mae, $2,552,062 of mortgage-backed securities issued by Fannie Mae and Freddie Mac and $46,028 issued by non-government entities

        Residential mortgage-backed securities are securities issued by Freddie Mac, Fannie Mae, Ginnie Mae or non-government entities. Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. Investments in mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government, however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008.

        The amortized cost and fair value of available for sale investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $2,624,520,000 and $2,717,496,000, respectively, at December 31, 2011.

        Proceeds from the sale and call of securities available-for-sale were $1,102,849,000, $1,149,021,000 and $579,099,000 during 2011, 2010 and 2009, respectively, which amounts included $1,095,815,000, $1,133,610,000 and $544,305,000 of mortgage-backed securities. Gross gains of $17,318,000, $33,223,000 and $11,980,000 and gross losses of $33,000, $14,000 and $24,000 were realized on the sales in 2011, 2010 and 2009, respectively.

        Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2011 were as follows:

 
   Less than 12 months   12 months or more   Total  
 
   Fair Value   Unrealized
Losses 		  Fair Value   Unrealized
Losses 		  Fair Value   Unrealized
Losses 		 
 
   (Dollars in Thousands)
  

Available for sale:

                                      

Residential mortgage-backed securities

   $ —   $ —   $ 39,605   $ (10,680 ) $ 39,605   $ (10,680 )

Obligations of states and political subdivisions

     9,531     (315 )   3,398     (896 )   12,929     (1,211 )

Equity securities

     3,485     (16 )   42     (33 )   3,527     (49 )
                           

 

   $ 13,016   $ (331 ) $ 43,045   $ (11,609 ) $ 56,061   $ (11,940 )
                           

        Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2010 were as follows:

 
   Less than 12 months   12 months or more   Total  
 
   Fair Value   Unrealized
Losses 		  Fair Value   Unrealized
Losses 		  Fair Value   Unrealized
Losses 		 
 
   (Dollars in Thousands)
  

Available for sale:

                                      

Residential mortgage-backed securities

   $ 1,166,720   $ (19,192 ) $ 46,028   $ (10,654 ) $ 1,212,748   $ (29,846 )

Obligations of states and political subdivisions

     97,701     (4,666 )   355     (95 )   98,056     (4,761 )

Equity securities

     4,988     (12 )   63     (12 )   5,051     (24 )
                           

 

   $ 1,269,409   $ (23,870 ) $ 46,446   $ (10,761 ) $ 1,315,855   $ (34,631 )
                           

        The unrealized losses on investments in residential mortgage-backed securities are primarily caused by changes in market interest rates. Residential mortgage-backed securities are primarily securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. The contractual cash obligations of the securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. The contractual cash obligations of the securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government; however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008. The decrease in fair value on residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae is due to market interest rates. The Company has no intent to sell and will more than likely not be required to sell before a market price recovery or maturity of the securities; therefore, it is the conclusion of the Company that the investments in residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae are not considered other-than-temporarily impaired. In addition, the Company has a small investment in non-agency residential mortgage-backed securities that have strong credit backgrounds and include additional credit enhancements to protect the Company from losses arising from high foreclosure rates. These securities have additional market volatility beyond economically induced interest rate events. It is the conclusion of the Company that the investments in non-agency residential mortgage-backed securities are other-than-temporarily impaired due to both credit and other than credit issues. An impairment charge of $977,000 ($635,000, after tax), was recorded in 2011 on the non-agency residential mortgage backed securities. An impairment charge of $8,416,000 ($5,470,000, after tax), was recorded in 2010 on the non-agency residential mortgage backed securities. The impairment charges represent the credit related impairment on the securities.

        The unrealized losses on investments in other securities are caused by fluctuations in market interest rates. The underlying cash obligations of the securities are guaranteed by the entity underwriting the debt instrument. It is the belief of the Company that the entity issuing the debt will honor its interest payment schedule, as well as the full debt at maturity. The securities are purchased by the Company for their economic value. The decrease in fair value is primarily due to market interest rates and not other factors, and because the Company has no intent to sell and will more than likely not be required to sell before a market price recovery or maturity of the securities, it is the conclusion of the Company that the investments are not considered other-than-temporarily impaired.

        The following table presents a reconciliation of credit-related impairment charges on available-for-sale investments recognized in earnings for the twelve months ended December 31, 2011(in Thousands):

Balance at December 31, 2010

   $ 8,416  

Impairment charges recognized during period

     977  
       

Balance at December 31, 2011

   $ 9,393  
       

        The following table presents a reconciliation of credit-related impairment charges on available-for-sale investments recognized in earnings for the twelve months ended December 31, 2010 (in Thousands):

Balance at December 31, 2009

   $ —  

Impairment charges recognized during period

     8,416  
       

Balance at December 31, 2010

   $ 8,416