INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2014

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

NOTE D:  INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of September 30, 2014 and December 31, 2013 are as follows:

	September 30, 2014				December 31, 2013
		Gross	Gross			Gross	Gross
	Amortized	Unrealized	Unrealized	Fair	Amortized	Unrealized	Unrealized	Fair
(000's omitted)	Cost	Gains	Losses	Value	Cost	Gains	Losses	Value
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	$1,476,678	$17,210	$7,261	$1,486,627	$1,252,332	$1,119	$41,304	$1,212,147
Obligations of state and political subdivisions	662,742	26,621	1,029	688,334	665,441	15,919	12,378	668,982
Government agency mortgage-backed securities	236,819	9,088	1,785	244,122	250,431	8,660	4,113	254,978
Corporate debt securities	26,835	539	87	27,287	26,932	873	218	27,587
Government agency collateralized mortgage obligations	18,394	736	0	19,130	21,779	362	93	22,048
Marketable equity securities	250	181	0	431	250	171	0	421
Total available-for-sale portfolio	$2,421,718	$54,375	$10,162	$2,465,931	$2,217,165	$27,104	$58,106	$2,186,163
Other Securities:
Federal Home Loan Bank common stock	$19,814			$19,814	$12,053			$12,053
Federal Reserve Bank common stock	16,050			16,050	16,050			16,050
Other equity securities	4,447			4,447	4,459			4,459
Total other securities	$40,311			$40,311	$32,562			$32,562

A summary of investment securities that have been in a continuous unrealized loss position for less than, or greater than, twelve months is as follows:

As of September 30, 2014

	Less than 12 Months			12 Months or Longer			Total
			Gross			Gross			Gross
		Fair	Unrealized		Fair	Unrealized		Fair	Unrealized
(000's omitted)	#	Value	Losses	#	Value	Losses	#	Value	Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency obligations	7	$158,289	$859	10	$230,998	$6,402	17	$389,287	$7,261
Obligations of state and political subdivisions	31	16,009	78	78	49,434	951	109	65,443	1,029
Government agency mortgage-backed securities	8	12,807	47	24	48,830	1,738	32	61,637	1,785
Corporate debt securities	0	0	0	1	2,756	87	1	2,756	87
Government agency collateralized mortgage obligations	1	0	0	1	5	0	2	5	0
Total available-for-sale/investment portfolio	47	$187,105	$984	114	$332,023	$9,178	161	$519,128	$10,162

As of December 31, 2013

	Less than 12 Months			12 Months or Longer			Total
			Gross			Gross			Gross
		Fair	Unrealized		Fair	Unrealized		Fair	Unrealized
(000's omitted)	#	Value	Losses	#	Value	Losses	#	Value	Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency obligations	43	$1,181,214	$41,304	0	$0	$0	43	$1,181,214	$41,304
Obligations of state and political subdivisions	302	195,526	11,774	9	4,974	604	311	200,500	12,378
Government agency mortgage-backed securities	43	68,917	3,262	6	8,713	851	49	77,630	4,113
Corporate debt securities	1	3,026	31	1	2,703	187	2	5,729	218
Government agency collateralized mortgage obligations	1	2,601	93	1	7	0	2	2,608	93
Total available-for-sale/investment portfolio	390	$1,451,284	$56,464	17	$16,397	$1,642	407	$1,467,681	$58,106

The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities, include treasuries, agencies, and mortgage-backed securities issued by GNMA, FNMA and FHLMC which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better.  Additionally, a majority of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. The unrealized losses in the portfolios are primarily attributable to changes in interest rates.  As such, management does not believe any individual unrealized loss as of September 30, 2014 represents OTTI.

The amortized cost and estimated fair value of debt securities at September 30, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Securities not due at a single maturity date are shown separately.

	Available-for-Sale
	Amortized	Fair
(000's omitted)	Cost	Value
Due in one year or less	$49,520	$50,144
Due after one through five years	156,732	161,940
Due after five years through ten years	1,691,095	1,710,084
Due after ten years	268,908	280,080
Subtotal	2,166,255	2,202,248
Government agency mortgage-backed securities	236,819	244,122
Government agency collateralized mortgage obligations	18,394	19,130
Total	$2,421,468	$2,465,500