INVESTMENTS IN DEBT AND EQUITY SECURITIES

3 Months Ended

Mar. 31, 2012

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 March 31, 2012 and December 31, 2011 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)
March 31, 2012:
Carrying value:
U.S. Government
sponsored agencies	$	—		205,524		130,337		63,603		399,464	1,647	(435	)	400,676	1.78	%
Residential mortgage-
backed		—		25,287		90,447		1,882,927		1,998,661	42,034	(450	)	2,040,245	2.28
Commercial mortgage-
backed		—		—		815		—		815	90	—		905	4.69
State and political
subdivisions		170		3,915		786		—		4,871	225	—		5,096	4.03
Corporate notes		—		134,168		54,099		5,000		193,267	1,132	(4,539	)	189,860	3.29
Equity investments		—		—		—		1,000		1,000	13	—		1,013	2.67
Total	$	170		368,894		276,484		1,952,530		2,598,078	45,141	(5,424	)	2,637,795	2.28
Fair value:
Debt securities	$	174		370,172		275,107		1,991,329
Equity securities		—		—		—		1,013
Total	$	174		370,172		275,107		1,992,342
Weighted average yield		3.72	%	2.14	%	2.34	%	2.30	%
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		—		—		—		1,000		1,000	17	—		1,017	2.83
Total	$	1,310		361,446		238,020		1,827,209		2,427,985	39,350	(9,448	)	2,457,887	2.28
Fair value:
Debt securities	$	1,314		357,194		236,824		1,861,538
Equity securities		—		—		—		1,017
Total	$	1,314		357,194		236,824		1,862,555
Weighted average yield		2.93	%	2.07	%	2.56	%	2.28	%

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at March 31, 2012 and December 31, 2011 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)
March 31, 2012:
Carrying value:
Residential mortgage-
backed	$	—		—		692		610		1,302	118	—		1,420	5.09	%
Commercial mortgage-
backed		—		6,277		—		—		6,277	407	—		6,684	4.99
State and political
subdivisions		1,371		2,003		254		1,535		5,163	52	(63	)	5,152	4.19
Total	$	1,371		8,280		946		2,145		12,742	577	(63	)	13,256	4.68
Fair value:
Debt securities	$	1,381		8,711		1,017		2,147
Weighted average yield		2.54	%	4.54	%	4.60	%	6.62	%
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	%

Proceeds from sales of available-for-sale investment securities were $54.4 million and $25.6 million for the three months ended March 31, 2012 and 2011, respectively. Gross realized gains and gross realized losses on investment securities for the three months ended March 31, 2012 and 2011 were as follows:

	Three Months Ended
	March 31,
	2012		2011
	(dollars expressed in thousands)
Gross realized gains on sales of available-for-sale securities	$	522	529
Gross realized losses on sales of available-for-sale securities		—	(1	)
Other-than-temporary impairment		—	(1	)
Net realized gains	$	522	527

Investment securities with a carrying value of $224.2 million and $228.9 million at March 31, 2012 and December 31, 2011, 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 March 31, 2012 and December 31, 2011 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)
March 31, 2012:
Available for sale:
U.S. Government sponsored agencies	$	74,399	(435	)	—	—		74,399	(435	)
Residential mortgage-backed		179,991	(343	)	21,718	(107	)	201,709	(450	)
Corporate notes		101,644	(3,711	)	4,172	(828	)	105,816	(4,539	)
Total	$	356,034	(4,489	)	25,890	(935	)	381,924	(5,424	)
Held to maturity:
State and political subdivisions	$	2,242	(63	)	—	—		2,242	(63	)
Total	$	2,242	(63	)	—	—		2,242	(63	)
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	)

The Company does not believe that the investment securities that were in an unrealized loss position at March 31, 2012 and December 31, 2011 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 March 31, 2012 and December 31, 2011 included 11 securities. The unrealized losses for corporate notes for 12 months or more at March 31, 2012 included one security.