NOTE 5 – SECURITIES

During the second quarter of 2011, the Company determined that it no longer had the intent to hold until maturity all securities that were previously classified as held-to-maturity. As a result of this determination, all securities were classified as available-for-sale and recorded at fair value as of June 30, 2011. The Company reclassified held-to-maturity securities with amortized cost of $1.6 billion and fair value of $1.7 billion to available-for-sale resulting in an increase in other comprehensive income of $19.7 million during the second quarter of 2011. A comparison of amortized cost and estimated fair values of available-for-sale securities as of September 30, 2012 and December 31, 2011 follows:

	September 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
U.S. Government agencies	$	1,448,179	$	24,612	$	44	$	1,472,747
Government agency issued residential mortgage-backed securities		327,757		10,647		174		338,230
Government agency issued commercial mortgage-backed securities		86,455		3,986		135		90,306
Obligations of states and political subdivisions		538,473		36,174		88		574,559
Other		7,046		718		-		7,764
Total	$	2,407,910	$	76,137	$	441	$	2,483,606

	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
U.S. Government agencies	$	1,471,920	$	29,347	$	24	$	1,501,243
Government agency issued residential mortgage-backed securities		394,894		9,786		70		404,610
Government agency issued commercial mortgage-backed securities		31,161		3,438		-		34,599
Obligations of states and political subdivisions		541,138		22,705		323		563,520
Other		8,938		608		-		9,546
Total	$	2,448,051	$	65,884	$	417	$	2,513,518

Gross gains of approximately $329,000 and gross losses of approximately $39,000 were recognized on available-for-sale securities during the first nine months of 2012, while gross gains of $12.4 million and gross losses of approximately $327,000 were recognized during the first nine months of 2011.

The amortized cost and estimated fair value of available-for-sale securities at September 30, 2012 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Equity securities are considered as maturing after ten years.

	September 30, 2012
	Amortized Cost		Estimated Fair Value		Weighted Average Yield
	(Dollars in thousands)
Maturing in one year or less	$	483,074	$	487,503		2.06	%
Maturing after one year through five years		1,351,410		1,382,562		1.75
Maturing after five years through ten years		139,123		143,655		3.39
Maturing after ten years		434,303		469,886		5.62
Total	$	2,407,910	$	2,483,606

The following tables summarize information pertaining to temporarily impaired available-for-sale securities with continuous unrealized loss positions at September 30, 2012 and December 31, 2011:

	September 30, 2012
	Continuous Unrealized Loss Position
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
U.S. Government agencies	$	47,417	$	44	$	-	$	-	$	47,417	$	44
Government agency issued residential mortgage-backed securities		6,484		68		3,118		106		9,602		174
Government agency issued commercial mortgage-backed securities		20,065		135		-		-		20,065		135
Obligations of states and political subdivisions		2,336		29		314		59		2,650		88
Other		-		-		-		-		-		-
Total	$	76,302	$	276	$	3,432	$	165	$	79,734	$	441

	December 31, 2011
	Continuous Unrealized Loss Position
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
U.S. Government agencies	$	34,850	$	24	$	-	$	-	$	34,850	$	24
Government agency issued residential mortgage-backed securities		-		-		3,751		70		3,751		70
Government agency issued commercial mortgage-backed securities		-		-		-		-		-		-
Obligations of states and political subdivisions		20,820		144		9,214		179		30,034		323
Other		-		-		-		-		-		-
Total	$	55,670	$	168	$	12,965	$	249	$	68,635	$	417

Based upon a review of the credit quality of these securities, and considering that the issuers were in compliance with the terms of the securities, management had no intent to sell these securities, and it was more likely than not that the Company would not be required to sell the securities prior to recovery of costs. Therefore, the impairments related to these securities were determined to be temporary. No other-than-temporary impairment was recorded during the first nine months of 2012.