INVESTMENTS IN DEBT AND EQUITY SECURITIES

9 Months Ended

Sep. 30, 2011

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 3–INVESTMENTS IN DEBT AND EQUITY SECURITIES

Securities Available for Sale. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities available for sale at September 30, 2011 and December 31, 2010 were as follows:

	Maturity									Total	Gross				Weighted
	1 Year			1-5		5-10		After		Amortized	Unrealized			Fair	Average
	or Less			Years		Years		10 Years		Cost	Gains	Losses		Value	Yield
	(dollars expressed in thousands)
September 30, 2011:
Carrying value:
U.S. Government
sponsored agencies	$	1,000		221,962		147,066		—		370,028	2,709	(9	)	372,728	1.78	%
Residential mortgage-
backed		—		3,082		10,956		1,782,414		1,796,452	42,620	(442	)	1,838,630	2.40
Commercial mortgage-
backed		—		—		821		—		821	108	—		929	5.03
State and political
subdivisions		936		3,948		1,103		—		5,987	264	—		6,251	4.02
Corporate notes		—		106,051		74,459		5,000		185,510	64	(5,615	)	179,959	3.15
Equity investments		—		—		—		11,678		11,678	23	—		11,701	3.41
Total	$	1,936		335,043		234,405		1,799,092		2,370,476	45,788	(6,066	)	2,410,198	2.37
Fair value:
Debt securities	$	1,950		333,720		233,381		1,829,446
Equity securities		—		—		—		11,701
Total	$	1,950		333,720		233,381		1,841,147
Weighted average yield		3.35	%	1.94	%	2.62	%	2.42	%
December 31, 2010:
Carrying value:
U.S. Treasury		$ —		101,478		—		—		101,478	4	(280	)	101,202	0.73	%
U.S. Government
sponsored agencies		—		20,220		—		—		20,220	199	(87	)	20,332	1.70
Residential mortgage-
backed		262		5,646		15,152		1,320,364		1,341,424	9,447	(9,293	)	1,341,578	2.48
Commercial mortgage-
backed		—		—		966		—		966	42	—		1,008	4.19
State and political
subdivisions		2,507		4,031		1,540		—		8,078	309	—		8,387	3.96
Equity investments		—		—		—		10,678		10,678	—	—		10,678	3.41
Total	$	2,769		131,375		17,658		1,331,042		1,482,844	10,001	(9,660	)	1,483,185	2.37
Fair value:
Debt securities	$	2,832		131,600		17,912		1,320,163
Equity securities		—		—		—		10,678
Total	$	2,832		131,600		17,912		1,330,841
Weighted average yield		4.01	%	1.12	%	2.09	%	2.49	%

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at September 30, 2011 and December 31, 2010 were as follows:

	Maturity									Total	Gross			Weighted
	1 Year			1-5		5-10		After		Amortized	Unrealized		Fair	Average
	or Less			Years		Years		10 Years		Cost	Gains	Losses	Value	Yield
	(dollars expressed in thousands)
September 30, 2011:
Carrying value:
Residential mortgage-
backed	$	—		—		763		619		1,382	122	—	1,504	5.05	%
Commercial mortgage-
backed		—		6,343		—		—		6,343	492	—	6,835	5.34
State and political
subdivisions		1,050		3,376		255		1,534		6,215	51	—	6,266	3.72
Total	$	1,050		9,719		1,018		2,153		13,940	665	—	14,605	4.59
Fair value:
Debt securities	$	1,050		10,239		1,101		2,215
Weighted average yield		1.35	%	4.49	%	4.59	%	6.60	%
December 31, 2010:
Carrying value:
Residential mortgage-
backed	$	—		—		962		912		1,874	132	—	2,006	5.15	%
Commercial mortgage-
backed		—		6,437		—		—		6,437	440	—	6,877	5.16
State and political
subdivisions		—		733		574		1,534		2,841	266	—	3,107	5.66
Total	$	—		7,170		1,536		2,446		11,152	838	—	11,990	5.29
Fair value:
Debt securities	$	—		7,645		1,635		2,710
Weighted average yield		—	%	4.99	%	4.71	%	6.51	%

Proceeds from sales of available-for-sale investment securities were $156.2 million and $283.7 million for the three and nine months ended September 30, 2011, respectively, compared to zero and $20.1 million for the three and nine months ended September 30, 2010. Gross realized gains and gross realized losses on investment securities for the three and nine months ended September 30, 2011 and 2010 were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities	$	4,165	—		5,285		556
Gross realized losses on sales of available-for-sale securities		—	—		(1	)	—
Other-than-temporary impairment		—	(2	)	(2	)	(3	)
Net realized gains	$	4,165	(2	)	5,282		553

Investment securities with a carrying value of $263.6 million and $234.9 million at September 30, 2011 and December 31, 2010, respectively, were pledged in connection with deposits of public and trust funds, securities sold under agreements to repurchase and for other purposes as required by law.

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, 2011 and December 31, 2010 were as follows:

	Less than 12 months				12 months or more			Total
			Unrealized			Unrealized			Unrealized
	Fair Value		Losses		Fair Value	Losses		Fair Value	Losses
	(dollars expressed in thousands)
September 30, 2011:
Available for sale:
U.S. Government sponsored agencies	$	20,058	(9	)	—	—		20,058	(9	)
Residential mortgage-backed		161,002	(350	)	305	(92	)	161,307	(442	)
Corporate notes		142,128	(5,615	)	—	—		142,128	(5,615	)
Total	$	323,188	(5,974	)	305	(92	)	323,493	(6,066	)
December 31, 2010:
Available for sale:
U.S. Treasury	$	91,193	(280	)	—	—		91,193	(280	)
U.S. Government sponsored agencies		8,731	(87	)	—	—		8,731	(87	)
Residential mortgage-backed		544,657	(9,218	)	341	(75	)	544,998	(9,293	)
Total	$	644,581	(9,585	)	341	(75	)	644,922	(9,660	)

The Company does not believe that the investment securities that were in an unrealized loss position at September 30, 2011 and December 31, 2010 represent other-than-temporary impairment. The unrealized losses on these investment securities were primarily attributable to fluctuations in interest rates. It is expected that the securities would not be settled at a price less than the amortized cost. Because the decline in fair value is attributable to changes in interest rates and not credit loss, and because the Company does not intend to sell these investments and it is more likely than not that First Bank will not be required to sell these securities before the anticipated recovery of the remaining amortized cost basis or maturity, these investments are not considered other-than-temporarily impaired. The unrealized losses for residential mortgage-backed securities for 12 months or more at September 30, 2011 and December 31, 2010 included ten and nine securities, respectively.