XML 28 R12.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | 5. INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities are summarized below. The majority of securities held are publicly traded, and the estimated fair values were obtained from an independent pricing service based upon market quotes.
|  | December 31, 2015 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gain |  |  | Gross Unrealized Holding Loss |  |  | Fair Value |  |  | Total Percent |
|  | (Dollars in thousands) |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSEs |  | $ | 5,752 |  |  | $ | — |  |  | $ | (7 | ) |  | $ | 5,745 |  |  |  | 0.24 | %
Residential mortgage-backed securities |  |  | 1,788,857 |  |  |  | 26,001 |  |  |  | (1,761 | ) |  |  | 1,813,097 |  |  |  | 76.55 | %
CMOs/REMICs — residential |  |  | 380,166 |  |  |  | 4,689 |  |  |  | (1,074 | ) |  |  | 383,781 |  |  |  | 16.20 | %
Municipal bonds |  |  | 157,940 |  |  |  | 3,036 |  |  |  | (3 | ) |  |  | 160,973 |  |  |  | 6.80 | %
Other securities |  |  | 5,000 |  |  |  | 50 |  |  |  | — |  |  |  | 5,050 |  |  |  | 0.21 | %
Total available-for-sale securities |  | $ | 2,337,715 |  |  | $ | 33,776 |  |  | $ | (2,845 | ) |  | $ | 2,368,646 |  |  |  | 100.00 | %
Investment securities held-to-maturity (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSEs |  | $ | 293,338 |  |  | $ | 1,176 |  |  | $ | (734 | ) |  | $ | 293,780 |  |  |  | 34.47 | %
Residential mortgage-backed securities |  |  | 232,053 |  |  |  | — |  |  |  | (1,293 | ) |  |  | 230,760 |  |  |  | 27.27 | %
CMO |  |  | 1,284 |  |  |  | 569 |  |  |  | — |  |  |  | 1,853 |  |  |  | 0.15 | %
Municipal bonds |  |  | 324,314 |  |  |  | 3,051 |  |  |  | (719 | ) |  |  | 326,646 |  |  |  | 38.11 | %
Total held-to-maturity securities |  | $ | 850,989 |  |  | $ | 4,796 |  |  | $ | (2,746) |  |  | $ | 853,039 |  |  |  | 100.00 | %
|  | December 31, 2014 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gain |  |  | Gross Unrealized Holding Loss |  |  | Fair Value |  |  | Total Percent |
|  | (Dollars in thousands) |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSEs |  | $ | 339,071 |  |  | $ | — |  |  | $ | (8,228 | ) |  | $ | 330,843 |  |  |  | 10.55 | %
Residential mortgage-backed securities |  |  | 1,884,370 |  |  |  | 36,154 |  |  |  | (3,028 | ) |  |  | 1,917,496 |  |  |  | 61.12 | %
CMOs/REMICs — residential |  |  | 297,318 |  |  |  | 7,050 |  |  |  | (277 | ) |  |  | 304,091 |  |  |  | 9.69 | %
Municipal bonds |  |  | 557,823 |  |  |  | 22,463 |  |  |  | (645 | ) |  |  | 579,641 |  |  |  | 18.48 | %
Other securities |  |  | 5,000 |  |  |  | 87 |  |  |  | — |  |  |  | 5,087 |  |  |  | 0.16 | %
Total available-for-sale securities |  | $ | 3,083,582 |  |  | $ | 65,754 |  |  | $ | (12,178 | ) |  | $ | 3,137,158 |  |  |  | 100.00 | %
Investment securities held-to-maturity (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CMO |  | $ | 1,528 |  |  | $ | 649 |  |  | $ | — |  |  | $ | 2,177 |  |  |  | 100.00 | %
Total held-to-maturity securities |  | $ | 1,528 |  |  | $ | 649 |  |  | $ | — |  |  | $ | 2,177 |  |  |  | 100.00 | %
(1) | Securities held-to-maturity are presented in the consolidated balance sheets at amortized cost.
During the quarter ended September 30, 2015, investment securities were transferred from the available-for-sale security portfolio to the held-to-maturity security portfolio. Transfers of securities into the held-to-maturity category from the available-for-sale category are transferred at fair value at the date of transfer. The fair value of these securities at the date of transfer was $898.6 million. The unrealized holding gain or loss at the date of transfer is retained in AOCI and in the carrying value of the held-to-maturity securities. The net unrealized holding gain at the date of transfer was $3.9 million after-tax and will continue to be reported in AOCI and amortized over the remaining life of the securities as a yield adjustment. The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax.
|  | For the Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | (Dollars in thousands) |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  | $ | 48,854 |  |  | $ | 47,301 |  |  | $ | 28,186 |
Tax-advantaged |  |  | 14,336 |  |  |  | 20,913 |  |  |  | 22,025 |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 4,451 |  |  |  | 164 |  |  |  | 188 |
Tax-advantaged |  |  | 4,567 |  |  |  | — |  |  |  | — |
Total interest income from investment securities |  | $ | 72,208 |  |  | $ | 68,378 |  |  | $ | 50,399 |
Approximately 85% of the total investment securities portfolio at December 31, 2015 represents securities issued by the U.S government or U.S. government-sponsored enterprises, with the implied guarantee of payment of principal and interest. All non-agency available-for-sale Collateralized Mortgage Obligations (“CMO”)/Real Estate Mortgage Investment Conduit (“REMIC”) issues held are rated investment grade or better by either Standard & Poor’s or Moody’s, as of December 31, 2015 and 2014. At December 31, 2015, the Bank had $1.5 million in CMOs backed by whole loans issued by private-label companies (non-government sponsored). There was a $22,000 realized loss for the year ended December 31, 2015, compared to zero realized gains or losses for the year ended December 31, 2014 and $2.1 million realized gains for the year ended December 31, 2013. The tables below show the Company’s investment securities’ gross unrealized losses and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and 2014. Management has reviewed individual securities to determine whether a decline in fair value below the amortized cost basis is other-than-temporary.
|  | December 31, 2015 |
|  | Less Than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |  |  | Gross Unrealized Holding Losses |
|  | (Dollars in thousands) |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSEs |  | $ | 5,745 |  |  | $ | (7 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,745 |  |  | $ | (7 | )
Residential mortgage-backed securities |  |  | 437,699 |  |  |  | (1,761 | ) |  |  | — |  |  |  | — |  |  |  | 437,699 |  |  |  | (1,761 | )
CMOs/REMICs — residential |  |  | 171,923 |  |  |  | (1,074 | ) |  |  | — |  |  |  | — |  |  |  | 171,923 |  |  |  | (1,074 | )
Municipal bonds |  |  | 398 |  |  |  | (2 | ) |  |  | 5,961 |  |  |  | (1 | ) |  |  | 6,359 |  |  |  | (3 | )
Other securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total available-for-sale securities |  | $ | 615,765 |  |  | $ | (2,844 | ) |  | $ | 5,961 |  |  | $ | (1 | ) |  | $ | 621,726 |  |  | $ | (2,845 | )
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSEs |  | $ | 84,495 |  |  | $ | (734 | ) |  | $ | — |  |  | $ | — |  |  | $ | 84,495 |  |  | $ | (734 | )
Residential mortgage-backed securities |  |  | 230,760 |  |  |  | (1,293 | ) |  |  | — |  |  |  | — |  |  |  | 230,760 |  |  |  | (1,293 | )
CMO |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Municipal bonds |  |  | 110,119 |  |  |  | (719 | ) |  |  | — |  |  |  | — |  |  |  | 110,119 |  |  |  | (719 | )
Other securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total held-to-maturity securities |  | $ | 425,374 |  |  | $ | (2,746 | ) |  | $ | — |  |  | $ | — |  |  | $ | 425,374 |  |  | $ | (2,746 | )
|  | December 31, 2014 |
|  | Less Than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |  |  | Gross Unrealized Holding Losses |
|  | (Dollars in thousands) |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSEs |  | $ | 22,224 |  |  | $ | 28 |  |  | $ | 307,873 |  |  | $ | 8,200 |  |  | $ | 330,097 |  |  | $ | 8,228 |
Residential mortgage-backed securities |  |  | 19,636 |  |  |  | 4 |  |  |  | 145,681 |  |  |  | 3,024 |  |  |  | 165,317 |  |  |  | 3,028 |
CMOs/REMICs — residential |  |  | — |  |  |  | — |  |  |  | 31,143 |  |  |  | 277 |  |  |  | 31,143 |  |  |  | 277 |
Municipal bonds |  |  | 1,953 |  |  |  | 23 |  |  |  | 24,812 |  |  |  | 622 |  |  |  | 26,765 |  |  |  | 645 |
Other securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total available-for-sale securities |  | $ | 43,813 |  |  | $ | 55 |  |  | $ | 509,509 |  |  | $ | 12,123 |  |  | $ | 553,322 |  |  | $ | 12,178 |
The following summarizes our analysis of these securities and the unrealized losses. This assessment was based on the following factors: i) the length of the time and the extent to which the fair value has been less than amortized cost; ii) adverse condition specifically related to the security, an industry, or a geographic area and whether or not the Company expects to recover the entire amortized cost, iii) historical and implied volatility of the fair value of the security; iv) the payment structure of the security and the likelihood of the issuer being able to make payments in the future; v) failure of the issuer of the security to make scheduled interest or principal payments, vi) any changes to the rating of the security by a rating agency, and vii) recoveries or additional declines in fair value subsequent to the balance sheet date. Government Agency & Government-Sponsored Enterprise (“GSE”) — The government agency bonds are backed by the full faith and credit of agencies of the U.S. Government. While the Government-Sponsored Enterprise bonds are not expressly guaranteed by the U.S. Government, they are currently being supported by the U.S. Government under a conservatorship arrangement. As of December 31, 2015, approximately $215.6 million in U.S. government agency bonds were callable. These securities are bullet securities, that is, they have a defined maturity date on which the principal is paid. The contractual term of these investments provides that the Company will receive the face value of the bond at maturity which will equal the amortized cost of the bond. Interest is received throughout the life of the security. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the bonds. Mortgage-Backed Securities (“MBS”) and CMOs/REMICs — Most of the Company’s mortgage-backed and CMOs/REMICs securities are issued by Government Agencies or Government-Sponsored Enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. These securities are collateralized or backed by the underlying residential mortgages. All mortgage-backed securities are considered to be rated investment grade with a weighted average life of approximately 4.3 years. Of the total MBS/CMO, 99.94% have the implied guarantee of U.S. Government-Sponsored Agencies and Enterprises. The remaining 0.06% are issued by banks. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the bonds. There were no credit-related OTTI recognized in earnings for the years ended December 31, 2015 and 2014. Municipal Bonds — The majority of the our municipal bonds, with maturities of approximately 8.4 years, are insured by the largest U.S. bond insurance companies. The Company diversifies its holdings by owning selections of securities from different issuers and by holding securities from geographically diversified municipal issuers, thus reducing the Company’s exposure to any single adverse event. The decline in fair value is attributable to the changes in interest rates and not credit quality. Since the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized costs. These investments are not considered other than temporarily impaired at December 31, 2015. On an ongoing basis, we monitor the quality of our municipal bond portfolio in light of the current financial problems exhibited by certain monoline insurance companies. Many of the securities that would not be rated without insurance are pre-refunded and/or are general obligation bonds. We continue to monitor municipalities, which includes a review of the respective municipalities’ audited financial statements to determine whether there are any audit or performance issues. We use outside brokers to assist us in these analyses. Based on our monitoring of the municipal marketplace, to our knowledge, none of the municipalities are exhibiting financial problems that would lead us to believe that there is an OTTI for any given security. At December 31, 2015 and 2014, investment securities having a carrying value of approximately $2.81 billion and $3.11 billion, respectively, were pledged to secure public deposits, short and long-term borrowings, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities at December 31, 2015, by contractual maturity, are shown in the table below. Although mortgage-backed securities and CMOs/REMICs have contractual maturities through 2043, expected maturities will differ from contractual maturities because borrowers may have the right to prepay such obligations without penalty. Mortgage-backed securities and CMOs/REMICs are included in maturity categories based upon estimated prepayment speeds.
|  | December 31, 2015 |
|  | Available-for-sale |  |  | Held-to-maturity |
|  | Amortized Cost |  |  | Fair Value |  |  | Amortized Cost |  |  | Fair Value |
|  | (Dollars in thousands) |
Due in one year or less |  | $ | 13,758 |  |  | $ | 13,980 |  |  | $ | — |  |  | $ | — |
Due after one year through five years |  |  | 1,967,040 |  |  |  | 1,993,960 |  |  |  | 153,226 |  |  |  | 153,004 |
Due after five years through ten years |  |  | 129,268 |  |  |  | 130,620 |  |  |  | 376,604 |  |  |  | 376,113 |
Due after ten years |  |  | 227,649 |  |  |  | 230,086 |  |  |  | 321,159 |  |  |  | 323,922 |
Total investment securities |  | $ | 2,337,715 |  |  | $ | 2,368,646 |  |  | $ | 850,989 |  |  | $ | 853,039 |
The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through December 31, 2015.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration