Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Amortized cost and estimated fair value by type of investment security

The amortized cost and estimated fair value by type of investment security at September 30, 2013 are as follows:

	Held to Maturity
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Carrying value
	(Dollars in Thousands)
Other securities	$	2,400	$	—	$	—	$	2,400	$	2,400
Total investment securities	$	2,400	$	—	$	—	$	2,400	$	2,400

	Available for Sale
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value		Carrying value (1)
	(Dollars in Thousands)
Residential mortgage-backed securities	$	5,197,331	$	70,436	$	(95,581	)	$	5,172,186	$	5,172,186
Obligations of states and political subdivisions	244,697		9,758		(6,724		)	247,731		247,731
Equity securities	28,075		1,041		(283		)	28,833		28,833
Total investment securities	$	5,470,103	$	81,235	$	(102,588	)	$	5,448,750	$	5,448,750

(1) Included in the carrying value of residential mortgage-backed securities are $1,894,858 of mortgage-backed securities issued by Ginnie Mae, $3,248,329 of mortgage-backed securities issued by Fannie Mae and Freddie Mac and $28,999 issued by non-government entities

The amortized cost and estimated fair value by type of investment security at December 31, 2012 are as follows:

	Held to Maturity
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value		Carrying value
	(Dollars in Thousands)
Other securities	$	2,400	$	—	$	—	$	2,400	$	2,400
Total investment securities	$	2,400	$	—	$	—	$	2,400	$	2,400

	Available for Sale
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value		Carrying value (1)
	(Dollars in Thousands)
Residential mortgage-backed securities	$	5,186,652	$	94,585	$	(16,033	)	$	5,265,204	$	5,265,204
Obligations of states and political subdivisions	216,962		23,504		(1,791		)	238,675		238,675
Equity securities	19,575		1,581		(20		)	21,136		21,136
Total investment securities	$	5,423,189	$	119,670	$	(17,844	)	$	5,525,015	$	5,525,015

(1) Included in the carrying value of residential mortgage-backed securities are $2,035,742 of mortgage-backed securities issued by Ginnie Mae, $3,196,602 of mortgage-backed securities issued by Fannie Mae and Freddie Mac and $32,860 issued by non-government entities

Amortized cost and fair value of investment securities, by contractual maturity

The amortized cost and estimated fair value of investment securities at September 30, 2013, 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	$	1,325	$	1,325	$	—	$	—
Due after one year through five years	1,075		1,075		—		—
Due after five years through ten years	—		—		697		744
Due after ten years	—		—		244,000		246,987
Residential mortgage-backed securities	—		—		5,197,331		5,172,186
Equity securities	—		—		28,075		28,833
Total investment securities	$	2,400	$	2,400	$	5,470,103	$	5,448,750

Gross unrealized losses on investment securities and the related fair value

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 September 30, 2013 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	$	2,599,415	$	(84,205	)	$	94,376	$	(11,376	)	$	2,693,791	$	(95,581	)
Obligations of states and political subdivisions	51,800		(2,859		)	12,044		(3,865		)	63,844		(6,724		)
Other equity securities	10,470		(279		)	71		(4		)	10,541		(283		)
	$	2,661,685	$	(87,343	)	$	106,491	$	(15,245	)	$	2,768,176	$	(102,588	)

	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	$	738,492	$	(5,476	)	$	32,860	$	(10,557	)	$	771,352	$	(16,033	)
Obligations of states and political subdivisions	5,117		(114		)	10,437		(1,677		)	15,554		(1,791		)
Equity securities	—		—			56		(20		)	56		(20		)
	$	743,609	$	(5,590	)	$	43,353	$	(12,254	)	$	786,962	$	(17,844	)

Reconciliation of credit-related impairment charges on available-for-sale investment

The following table presents a reconciliation of credit-related impairment charges on available-for-sale investments recognized in earnings for the three months ended September 30, 2013 (Dollars in Thousands):

Balance at June 30, 2013	$	11,159
Impairment charges recognized during period	573
Balance at September 30, 2013	$	11,732

The following table presents a reconciliation of credit-related impairment charges on available-for-sale investments recognized in earnings for the nine months ended September 30, 2013 (Dollars in Thousands):

Balance at December 31, 2012	$	10,432
Impairment charges recognized during period	1,300
Balance at September 30, 2013	$	11,732

The following table presents a reconciliation of credit-related impairment charges on available-for-sale investment recognized in earnings for the three months ended September 30, 2012 (Dollars in Thousands):

Balance at June 30, 2012	$	9,801
Impairment charges recognized during period	239
Balance at September 30, 2012	$	10,040

The following table presents a reconciliation of credit-related impairment charges on available-for-sale investment recognized in earnings for the nine months ended September 30, 2012 (Dollars in Thousands):

Balance at December 31, 2011	$	9,393
Impairment charges recognized during period	647
Balance at September 30, 2012	$	10,040

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

+ References+ Details