Investment Securities

3 Months Ended

Jun. 30, 2011

Investment Securities [Abstract]

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

NOTE 7: INVESTMENT SECURITIES

	June 30, 2011
		Gross	Gross		Tax
	Amortized	Unrealized	Unrealized	Fair	Equivalent
	Cost	Gains	Losses	Value	Yield
	(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
U.S. government agencies	$23,948	$131	$—	$24,079	2.56%
Collateralized mortgage obligations	5,233	135	454	4,914	7.66
Mortgage-backed securities	627,229	13,509	897	639,841	3.19
Small Business Administration
loan pools	58,647	596	46	59,197	1.86
States and political subdivisions	101,304	1,326	2,215	100,415	6.15
Corporate bonds	49	321	—	370	38.57
Equity securities	1,230	1,013	—	2,243	—
	$817,640	$17,031	$3,612	$831,059	3.47%
HELD-TO-MATURITY SECURITIES:
States and political subdivisions	$1,865	$272	$—	$2,137	4.34%

	December 31, 2010
		Gross	Gross		Tax
	Amortized	Unrealized	Unrealized	Fair	Equivalent
	Cost	Gains	Losses	Value	Yield
	(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
U.S. government agencies	$4,000	$—	$20	$3,980	2.35%
Collateralized mortgage obligations	8,311	183	814	7,680	6.48
Mortgage-backed securities	590,085	10,879	1,753	599,211	3.30
Small Business Administration loan
pools	60,063	851	—	60,914	1.93
States and political subdivisions	99,314	378	4,075	95,617	6.16
Corporate bonds	49	—	28	21	74.97
Equity securities	1,230	893	—	2,123	0.18
	$763,052	$13,184	$6,690	$769,546	3.59%
HELD-TO-MATURITY SECURITIES:
States and political subdivisions	$1,125	$175	$—	$1,300	7.31%

The amortized cost and fair value of available-for-sale securities at June 30, 2011, by contractual maturity, are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized	Fair
	Cost	Value
	(In Thousands)
One year or less	$                      681	$                      683
After one through five years	6,229	6,299
After five through ten years	9,452	9,648
After ten years	167,586	167,431
Securities not due on a single maturity date	632,462	644,755
Equity securities	1,230	2,243
	$               817,640	$               831,059

The held-to-maturity securities at June 30, 2011, by contractual maturity, are shown below.  Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized	Fair
	Cost	Value
	(In Thousands)
One year or less	$                      840	$                      959
After five through ten years	1,025	1,178
	$                   1,865	$                   2,137

Certain investments in debt and marketable equity securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2011 and December 31, 2010, respectively, was approximately $174,209,000 and $298,813,000, which is approximately 20.92% and 38.77% of the Company’s available-for-sale and held-to-maturity investment portfolio, respectively.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary at June 30, 2011.

During the three and six months ended June 30, 2011, the Company determined that the impairment of a non-agency collateralized mortgage obligation with a book value of $1.8 million had become other than temporary.  Consequently, the Company recorded a $400,000 pre-tax charge to income.  Based on evaluations of investment securities during the three and six months ended June 30, 2010, none were determined to be other-than-temporarily impaired.

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2011 and December 31, 2010:

	June 30, 2011
	Less than 12 Months		12 Months or More		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Description of Securities	Value	Losses	Value	Losses	Value	Losses
	(In Thousands)
U.S. government agencies	$19,637	$46	$—	$—	$19,637	$46
Collateralized mortgage
obligations	67	—	1,880	454	1,947	454
Mortgage-backed securities	117,860	897	—	—	117,860	897
States and political
subdivisions	27,616	739	7,149	1,476	34,765	2,215
	$165,180	$1,682	$9,029	$1,930	$174,209	$3,612

	December 31, 2010
	Less than 12 Months		12 Months or More		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Description of Securities	Value	Losses	Value	Losses	Value	Losses
	(In Thousands)
U.S. government agencies	$3,980	$20	$—	$—	$3,980	$20
Collateralized mortgage
obligations	—	—	1,809	814	1,809	814
Mortgage-backed securities	231,524	1,753	—	—	231,524	1,753
States and political
subdivisions	56,221	2,328	5,257	1,747	61,478	4,075
Corporate bonds	8	24	14	4	22	28
	$291,733	$4,125	$7,080	$2,565	$298,813	$6,690

No securities were sold during the three and six months ended June 30, 2011, and therefore, no gains or losses on sales were realized.  Gross gains of $3.5 million and gross losses of $0 resulting from sales of available-for-sale securities were realized for the three and six months ended June 30, 2010.  Gains and losses on sales of securities are determined on the specific-identification method.

Other-than-temporary Impairment.  Upon acquisition of a security, the Company decides whether it is within the scope of the accounting guidance for beneficial interests in securitized financial assets or will be evaluated for impairment under the accounting guidance for investments in debt and equity securities.

The accounting guidance for beneficial interests in securitized financial assets provides incremental impairment guidance for a subset of the debt securities within the scope of the guidance for investments in debt and equity securities.  For securities where the security is a beneficial interest in securitized financial assets, the Company uses the beneficial interests in securitized financial asset impairment model.  For securities where the security is not a beneficial interest in securitized financial assets, the Company uses the debt and equity securities impairment model.  The Company does not currently have securities within the scope of this guidance for beneficial interests in securitized financial assets.

The Company routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred.  The Company considers the length of time a security has been in an unrealized loss position, the relative amount of the unrealized loss compared to the carrying value of the security, the type of security and other factors.  If certain criteria are met, the Company performs additional review and evaluation using observable market values or various inputs in economic models to determine if an unrealized loss is other-than-temporary.  The Company uses quoted market prices for marketable equity securities and uses broker pricing quotes based on observable inputs for equity investments that are not traded on a stock exchange.  For non-agency collateralized mortgage obligations, to determine if the unrealized loss is other-than-temporary, the Company projects total estimated defaults of the underlying assets (mortgages) and multiplies that calculated amount by an estimate of realizable value upon sale in the marketplace (severity) in order to determine the projected collateral loss.  The Company also evaluates any current credit enhancement underlying these securities to determine the impact on cash flows.  If the Company determines that a given security position will be subject to a write-down or loss, the Company records the expected credit loss as a charge to earnings.

Credit Losses Recognized on Investments.  Certain debt securities have experienced fair value deterioration due to credit losses. 

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income.

	Accumulated
	Credit Losses
	(In Thousands)
Credit losses on debt securities held
April 1, 2011	$                                 2,983
Additions related to other-than-temporary losses not previously recognized	—
Additions related to increases in credit losses on debt securities for which
other-than-temporary impairment losses were previously recognized	400
Reductions due to sales	—
June 30, 2011	$                                 3,383

	Accumulated
	Credit Losses
	(In Thousands)
Credit losses on debt securities held
April 1, 2010	$                                 2,983
Additions related to other-than-temporary losses not previously recognized	—
Reductions due to sales	—
June 30, 2010	$                                 2,983

	Accumulated
	Credit Losses
	(In Thousands)
Credit losses on debt securities held
January 1, 2011	$                                 2,983
Additions related to other-than-temporary losses not previously recognized	—
Additions related to increases in credit losses on debt securities for which
other-than-temporary impairment losses were previously recognized	400
Reductions due to sales	—
June 30, 2011	$                                 3,383

	Accumulated
	Credit Losses
	(In Thousands)
Credit losses on debt securities held
January 1, 2010	$                                 2,983
Additions related to other-than-temporary losses not previously recognized	—
Reductions due to sales	—
June 30, 2010	$                                 2,983