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Note 2 - Investment Securities
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note
2:
Investment Securities
 
An analysis of the amortized cost, gross unrealized gains and losses accumulated in other comprehensive income, and fair value of the available for sale investment securities portfolio follows:
 
    Investment Securities Available for Sale
At December 31, 2017
    Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Fair
Value
    (In thousands)
Securities of U.S. Government sponsored entities   $
122,285
     $
1
     $
(2,967
 )   $
119,319
  
Agency residential mortgage-backed securities (MBS)    
787,679
      
522
      
(20,495
 )    
767,706
  
Non-agency residential MBS    
153
      
1
      
-
      
154
  
Agency commercial MBS    
2,244
      
-
      
(25
 )    
2,219
  
Securities of U.S. Government entities    
1,612
      
-
      
(22
 )    
1,590
  
Obligations of states and political subdivisions    
182,907
      
3,796
      
(1,482
 )    
185,221
  
Corporate securities    
1,123,671
      
1,104
      
(9,277
 )    
1,115,498
  
Other securities    
2,000
      
-
      
(200
 )    
1,800
  
Total   $
2,222,551
     $
5,424
     $
(34,468
 )   $
2,193,507
  
 
An analysis of the amortized cost, gross unrecognized gains and losses, and fair value of the held to maturity investment securities portfolio follows:
 
    Investment Securities Held to Maturity
At December 31, 2017
    Amortized
Cost		   Gross
Unrecognized
Gains		   Gross
Unrecognized
Losses		   Fair
Value
    (In thousands)
Agency residential MBS   $
545,883
     $
606
     $
(9,850
 )   $
536,639
  
Non-agency residential MBS    
4,462
      
70
      
-
      
4,532
  
Agency commercial MBS    
9,041
      
-
      
(66
 )    
8,975
  
Obligations of states and political subdivisions    
599,478
      
7,736
      
(2,018
 )    
605,196
  
Total   $
1,158,864
     $
8,412
     $
(11,934
 )   $
1,155,342
  
 
An analysis of the amortized cost, gross unrealized gains and losses accumulated in other comprehensive income, and fair value of the available for sale investment securities portfolio follows:
 
    Investment Securities Available for Sale
At December 31, 2016
    Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Value
    (In thousands)
Securities of U.S. Government sponsored entities
 
$
141,599
 
 
$
35
 
 
$
(2,974
)
 
$
138,660
 
Agency residential MBS
 
 
711,623
 
 
 
921
 
 
 
(21,045
)
 
 
691,499
 
Non-agency residential MBS
 
 
272
 
 
 
-
 
 
 
(1
)
 
 
271
 
Securities of U.S. Government entities
 
 
2,041
 
 
 
-
 
 
 
(16
)
 
 
2,025
 
Obligations of states and political subdivisions
 
 
182,230
 
 
 
5,107
 
 
 
(3,926
)
 
 
183,411
 
Asset-backed securities
 
 
696
 
 
 
-
 
 
 
(1
)
 
 
695
 
FHLMC
(1)
and FNMA
(2)
stock
 
 
749
 
 
 
10,120
 
 
 
-
 
 
 
10,869
 
Corporate securities
 
 
866,835
 
 
 
1,690
 
 
 
(7,668
)
 
 
860,857
 
Other securities
 
 
2,034
 
 
 
621
 
 
 
(184
)
 
 
2,471
 
Total   $
1,908,079
     $
18,494
     $
(35,815
 )   $
1,890,758
  
 
(
1
)
Federal Home Loan Mortgage Corporation
(
2
)
Federal National Mortgage Association
 
An analysis of the amortized cost, gross unrecognized gains and losses, and fair value of the held to maturity investment securities portfolio follows:
 
    Investment Securities Held to Maturity
At December 31, 2016
    Amortized
Cost		   Gross
Unrecognized
Gains		   Gross
Unrecognized
Losses		   Fair
Value
    (In thousands)
Securities of U.S. Government sponsored entities
 
$
581
 
 
$
1
 
 
$
-
 
 
$
582
 
Agency residential MBS
 
 
668,235
 
 
 
1,122
 
 
 
(8,602
)
 
 
660,755
 
Non-agency residential MBS
 
 
5,370
 
 
 
76
 
 
 
-
 
 
 
5,446
 
Agency commercial MBS
 
 
9,332
 
 
 
11
 
 
 
(143
)
 
 
9,200
 
Obligations of states and political subdivisions
 
 
662,794
 
 
 
6,031
 
 
 
(4,067
)
 
 
664,758
 
Total   $
1,346,312
     $
7,241
     $
(12,812
 )   $
1,340,741
  
 
During the quarter ending
December 31, 2017,
the Company sold its shares of FHLMC and FNMA stock. Total proceeds from the sale were
$8,704
thousand and the realized gain recorded in income was
$7,955
thousand.
 
The amortized cost and fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated:
 
    At December 31, 2017
    Securities Available
for Sale		   Securities Held
to Maturity
    Amortized
Cost		   Fair
Value		   Amortized
Cost		   Fair
Value
    (In thousands)
Maturity in years:                                
1 year or less   $
193,337
     $
193,385
     $
50,295
     $
51,105
  
Over 1 to 5 years    
1,031,807
      
1,023,047
      
269,050
      
269,471
  
Over 5 to 10 years    
159,266
      
160,042
      
277,170
      
281,546
  
Over 10 years    
46,065
      
45,154
      
2,963
      
3,074
  
Subtotal    
1,430,475
      
1,421,628
      
599,478
      
605,196
  
MBS    
790,076
      
770,079
      
559,386
      
550,146
  
Other securities    
2,000
      
1,800
      
-
      
-
  
Total   $
2,222,551
     $
2,193,507
     $
1,158,864
     $
1,155,342
  
 
    At December 31, 2016
    Securities Available
for Sale		   Securities Held
to Maturity
    Amortized
Cost		   Fair
Value		   Amortized
Cost		   Fair
Value
    (In thousands)
Maturity in years:                
1 year or less   $
154,693
     $
154,835
     $
14,961
     $
15,639
  
Over 1 to 5 years    
750,834
      
745,219
      
292,024
      
292,062
  
Over 5 to 10 years    
238,077
      
239,153
      
318,580
      
319,587
  
Over 10 years    
47,756
      
44,416
      
37,810
      
38,052
  
Subtotal    
1,191,360
      
1,183,623
      
663,375
      
665,340
  
MBS    
713,936
      
693,795
      
682,937
      
675,401
  
Other securities    
2,783
      
13,340
      
-
      
-
  
Total   $
1,908,079
     $
1,890,758
     $
1,346,312
     $
1,340,741
  
 
Expected maturities of mortgage-related securities can differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. In addition, such factors as prepayments and interest rates
may
affect the yield on the carrying value of mortgage-related securities. At
December 31, 2017
and
December 31, 2016,
the Company had
no
high-risk collateralized mortgage obligations as defined by regulatory guidelines.
 
An analysis of the gross unrealized losses of the available for sale investment securities portfolio follows:
 
    Investment Securities Available for Sale
    At December 31, 2017
    No. of   Less than 12 months   No. of   12 months or longer   No. of   Total
    Investment
Positions		   Fair Value   Unrealized
Losses		   Investment
Positions		   Fair Value   Unrealized
Losses		   Investment
Positions		   Fair Value   Unrealized
Losses
    ($ in thousands)
Securities of U.S. Government sponsored entities
 
 
1
 
 
$
996
 
 
$
(
2
)
 
 
8
 
 
$
117,252
 
 
$
(2,965
)
 
 
9
 
 
$
118,248
 
 
$
(
2,967
)
Agency residential MBS
 
 
7
 
 
 
238,554
 
 
 
(1,501
)
 
 
51
 
 
 
516,711
 
 
 
(18,994
)
 
 
58
 
 
 
755,265
 
 
 
(20,495
)
Non-agency residential MBS
 
 
1
 
 
 
1
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1
 
 
 
1
 
 
 
-
 
Agency commercial MBS
 
 
2
 
 
 
2,219
 
 
 
(25
)
 
 
-
 
 
 
-
 
 
 
-
 
 
 
2
 
 
 
2,219
 
 
 
(25
)
Securities of U.S. Government entities
 
 
-
 
 
 
-
 
 
 
-
 
 
 
3
 
 
 
1,590
 
 
 
(22
)
 
 
3
 
 
 
1,590
 
 
 
(22
)
Obligations of states and political subdivisions
 
 
50
 
 
 
21,453
 
 
 
(228
)
 
 
35
 
 
 
52,071
 
 
 
(1,254
)
 
 
85
 
 
 
73,524
 
 
 
(1,482
)
Corporate securities
 
 
64
 
 
 
571,112
 
 
 
(4,047
)
 
 
38
 
 
 
282,924
 
 
 
(5,230
)
 
 
102
 
 
 
854,036
 
 
 
(9,277
)
Other securities
 
 
-
 
 
 
-
 
 
 
-
 
 
 
1
 
 
 
1,800
 
 
 
(200
)
 
 
1
 
 
 
1,800
 
 
 
(200
)
Total
 
 
125
 
 
$
834,335
 
 
$
(5,803
)
 
 
136
 
 
$
972,348
 
 
$
(28,665
)
 
 
261
 
 
$
1,806,683
 
 
$
(34,468
)
 
 
An analysis of gross unrecognized losses of the held to maturity investment securities portfolio follows:
 
    Investment Securities Held to Maturity
    At December 31, 2017
    No. of   Less than 12 months   No. of   12 months or longer   No. of   Total
    Investment
Positions		   Fair Value   Unrecognized
Losses		   Investment
Positions		   Fair Value   Unrecognized
Losses		   Investment
Positions		   Fair Value   Unrecognized
Losses
    ($ in thousands)
Agency residential MBS    
15
     $
30,218
     $
(201
 )    
65
     $
479,775
     $
(9,649
 )    
80
     $
509,993
     $
(9,850
 )
Agency commercial MBS    
1
      
1,913
      
(4
 )    
1
      
7,062
      
(62
 )    
2
      
8,975
      
(66
 )
Obligations of states and political subdivisions    
146
      
131,032
      
(553
 )    
59
      
58,979
      
(1,465
 )    
205
      
190,011
      
(2,018
 )
Total    
162
     $
163,163
     $
(758
 )    
125
     $
545,816
     $
(11,176
 )    
287
     $
708,979
     $
(11,934
 )
 
The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates. The Company evaluates securities on a quarterly basis including changes in security ratings issued by rating agencies, changes in the financial condition of the issuer, and, for mortgage-backed and asset-backed securities, delinquency and loss information with respect to the underlying collateral, changes in the levels of subordination for the Company’s particular position within the repayment structure and remaining credit enhancement as compared to expected credit losses of the security. Substantially all of these securities continue to be investment grade rated by a major rating agency. In addition to monitoring credit rating agency evaluations, Management performs its own evaluations regarding the credit worthiness of the issuer or the securitized assets underlying asset backed securities.
 
The Company does
not
intend to sell any investments and has concluded that it is more likely than
not
that it will
not
be required to sell the investments prior to recovery of the amortized cost basis. Therefore, the Company does
not
consider these investments to be other-than-temporarily impaired as of
December 31, 2017.
 
The fair values of the investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments
may
occur in the future.
 
As of
December 31, 2017,
$715,774
 thousand of investment securities were pledged to secure public deposits and short-term borrowed funds. As of
December 31, 2016,
$768,845
 thousand of investment securities were pledged to secure public deposits and short-term borrowed funds.
 
An analysis of gross unrealized losses  of investment securities available for sale follows:
 
    Investment Securities Available for Sale
    At December 31, 2016
    No. of   Less than 12 months   No. of   12 months or longer   No. of   Total
    Investment   Fair   Unrealized   Investment   Fair   Unrealized   Investment   Fair   Unrealized
    Positions   Value   Losses   Positions   Value   Losses   Positions   Value   Losses
    ($ in thousands)
Securities of U.S. Government sponsored entities    
8
     $
117,227
     $
(2,974
 )    
-
     $
-
     $
-
      
8
     $
117,227
     $
(2,974
 )
Agency residential MBS    
21
      
524,269
      
(16,494
 )    
28
      
122,901
      
(4,551
 )    
49
      
647,170
      
(21,045
 )
Non-agency residential MBS    
2
      
246
      
(1
 )    
-
      
-
      
-
      
2
      
246
      
(1
 )
Securities of U.S. Government entities    
2
      
1,253
      
(9
 )    
1
      
772
      
(7
 )    
3
      
2,025
      
(16
 )
Obligations of states and political subdivisions    
43
      
57,989
      
(3,905
 )    
3
      
1,117
      
(21
 )    
46
      
59,106
      
(3,926
 )
Asset-backed securities    
-
      
-
      
-
      
1
      
695
      
(1
 )    
1
      
695
      
(1
 )
Corporate securities    
53
      
385,175
      
(6,551
 )    
27
      
96,145
      
(1,117
 )    
80
      
481,320
      
(7,668
 )
Other securities    
-
      
-
      
-
      
1
      
1,816
      
(184
 )    
1
      
1,816
      
(184
 )
Total    
129
     $
1,086,159
     $
(29,934
 )    
61
     $
223,446
     $
(5,881
 )    
190
     $
1,309,605
     $
(35,815
 )
 
An analysis of gross unrecognized losses  of investment securities held to maturity follows:
 
    Investment Securities Held to Maturity
    At December 31, 2016
    No. of   Less than 12 months   No. of   12 months or longer   No. of   Total
    Investment   Fair   Unrecognized   Investment   Fair   Unrecognized   Investment   Fair   Unrecognized
    Positions   Value   Losses   Positions   Value   Losses   Positions   Value   Losses
    ($ in thousands)
Agency residential MBS    
66
     $
569,876
     $
(8,285
 )    
3
     $
10,480
     $
(317
 )    
69
     $
580,356
     $
(8,602
 )
Agency commercial MBS    
-
      
-
      
-
      
1
      
7,214
      
(143
 )    
1
      
7,214
      
(143
 )
Obligations of states and political subdivisions    
295
      
272,496
      
(3,710
 )    
12
      
13,126
      
(357
 )    
307
      
285,622
      
(4,067
 )
Total    
361
     $
842,372
     $
(11,995
 )    
16
     $
30,820
     $
(817
 )    
377
     $
873,192
     $
(12,812
 )
 
 
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 Years Ended December 31,
    2017   2016   2015
    (In thousands)
             
Taxable   $
51,445
     $
42,718
     $
34,472
  
Tax-exempt from regular federal income tax    
20,651
      
22,194
      
23,616
  
Total interest income from investment securities   $
72,096
     $
64,912
     $
58,088