INVESTMENTS IN DEBT AND EQUITY SECURITIES

12 Months Ended

Dec. 31, 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 December 31, 2011 and 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)
December 31, 2011:
Carrying value:
U.S. Government               sponsored agencies	$	1,000		231,691		107,019		—		339,710	2,107	—		341,817	1.75	%
Residential mortgage-               backed		—		2,726		64,309		1,821,209		1,888,244	36,908	(232	)	1,924,920	2.27
Commercial mortgage-               backed		—		—		818		—		818	92	—		910	4.86
State and political               subdivisions		310		4,088		786		—		5,184	226	—		5,410	4.00
Corporate notes		—		122,941		65,088		5,000		193,029	—	(9,216	)	183,813	3.28
Equity investments		—		—		—		11,678		11,678	17	—		11,695	3.53
Total	$	1,310		361,446		238,020		1,837,887		2,438,663	39,350	(9,448	)	2,468,565	2.29
Fair value:
Debt securities	$	1,314		357,194		236,824		1,861,538
Equity securities		—		—		—		11,695
Total	$	1,314		357,194		236,824		1,873,233
Weighted average yield		2.93	%	2.07	%	2.56	%	2.29	%
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 December 31, 2011 and 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)
December 31, 2011:
Carrying value:
Residential mortgage-               backed	$	—		—		728		615		1,343	116	—	1,459	5.06	%
Commercial mortgage-               backed		—		6,310		—		—		6,310	447	—	6,757	5.16
State and political               subdivisions		1,372		2,004		254		1,534		5,164	44	—	5,208	4.20
Total	$	1,372		8,314		982		2,149		12,817	607	—	13,424	4.76
Fair value:
Debt securities	$	1,387		8,768		1,056		2,213
Weighted average yield		2.55	%	4.67	%	4.60	%	6.61	%
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 $283.7 million, $249.2 million and $521.8 million for the years ended December 31, 2011, 2010 and 2009, respectively. Proceeds from calls of investment securities were $56.0 million, $2.4 million and $2.9 million for the years ended December 31, 2011, 2010 and 2009, respectively. Gross realized gains and gross realized losses on investment securities for the years ended December 31, 2011, 2010 and 2009 were as follows:

	2011			2010		2009
	(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities	$	5,286		8,350		9,541
Gross realized losses on sales of available-for-sale securities		(1	)	(31	)	(653	)
Other-than-temporary impairment		(3	)	(4	)	(1,206	)
Gross realized gains on calls		53		—		15
Net realized gains	$	5,335		8,315		7,697

The impairment recorded during 2011, 2010 and 2009 represented the difference between the cost basis and fair value of the securities as of the respective impairment dates. The Company recorded other-than-temporary impairment of $1.2 million for the year ended December 31, 2009 on equity investments in the common stock of two companies in the financial services industry, which management considered to have been caused by economic events impacting the financial services industry as a whole. The Company sold these equity investments in 2010.

Investment securities with a carrying value of approximately $228.9 million and $234.9 million at December 31, 2011 and 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 December 31, 2011 and 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)
December 31, 2011:
Available for sale:
Residential mortgage-backed	$	67,395	(126	)	22,349	(106	)	89,744	(232	)
Corporate notes		173,813	(9,216	)	—	—		173,813	(9,216	)
Total	$	241,208	(9,342	)	22,349	(106	)	263,557	(9,448	)
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 December 31, 2011 and 2010 are other-than-temporarily impaired. The unrealized losses on the 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 December 31, 2011 and 2010 included 11 and nine securities, respectively.