4. Investment Securities

Investment Securities. The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment securities as of December 31, 2011, and December 31, 2010:


	At December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
U.S. government sponsored entities	$	99,966	$	1,406	$	—	$	101,372
State and municipal securities		129,577		7,053		—		136,630
Mortgage-backed securities		913,990		42,351		—		956,341
Corporate debt securities		9,971		—		337		9,634

Total securities held-to-maturity	$	1,153,504	$	50,810	$	337	$	1,203,977

Securities Available-for-Sale
U.S. government sponsored entities	$	500,007	$	1,226	$	7	$	501,226
State and municipal securities		1,869		59		—		1,928
Mortgage-backed securities		325,706		12,361		436		337,631
Collateralized mortgage obligations		16,184		540		238		16,486
Asset-backed securities		172		—		6		166
Corporate debt securities		412,045		113		31,729		380,429
Mutual funds		6,000		48		13		6,035
Preferred stock of government sponsored entities		569		1,085		—		1,654
Trust preferred securities		45,501		486		24		45,963
Other equity securities		1,468		1,492		—		2,960

Total securities available-for-sale	$	1,309,521	$	17,410	$	32,453	$	1,294,478

Total investment securities..	$	2,463,025	$	68,220	$	32,790	$	2,498,455


	At December 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
U.S. government sponsored entities	$	99,921	$	2,639	$	—	$	102,560
State and municipal securities		130,107		—		8,946		121,161
Mortgage-backed securities		600,107		5,230		1,653		603,684
Corporate debt securities		9,967		—		13		9,954

Total securities held-to-maturity	$	840,102	$	7,869	$	10,612	$	837,359

Securities Available-for-Sale
U.S. treasury securities	$	125,573	$	—	$	6,745	$	118,828
U.S. government sponsored entities		830,269		1,653		6,840		825,082
State and municipal securities		1,875		—		157		1,718
Mortgage-backed securities		627,574		14,854		123		642,305
Collateralized mortgage obligations		24,719		590		115		25,194
Asset-backed securities		245		—		5		240
Corporate debt securities		374,489		1,374		6,438		369,425
Mutual funds		4,000		—		73		3,927
Preferred stock of government sponsored entities		569		150		—		719
Trust preferred securities		14,549		58		170		14,437
Other equity securities		1,468		224		—		1,692

Total securities available-for-sale	$	2,005,330	$	18,903	$	20,666	$	2,003,567

Total investment securities	$	2,845,432	$	26,772	$	31,278	$	2,840,926

The amortized cost and fair value of investment securities at December 31, 2011, by contractual maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.


	Securities Available-for-Sale				Securities Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	17,983	$	17,915	$	99,966	$	101,372
Due after one year through five years		125,416		123,651		—		—
Due after five years through ten years		858,217		835,179		29,709		30,943
Due after ten years (1)		307,905		317,733		1,023,829		1,071,662

Total	$	1,309,521	$	1,294,478	$	1,153,504	$	1,203,977

(1)	Equity securities are reported in this category

Proceeds from sales of mortgage-backed securities were $759.7 million and repayments of mortgage-backed securities were $108.4 million during 2011 compared to proceeds from sales of $1.04 billion and repayment of $308.2 million during 2010, and proceeds from sales of $2.44 billion and repayment of $313.2 million during 2009. Proceeds from sales and repayments of other investment securities were $525.0 million during 2011 compared to $65.1 million during 2010 and $51.7 million during 2009. Proceeds from maturity and calls of investment securities were $435.0 million during 2011 compared to $2.88 billion during 2010 and $1.43 billion in 2009. In 2011, gains of $21.1 million and no losses were realized on sales and calls of investment securities compared with $19.3 million in gains and $67,000 in losses realized in 2010, and $56.5 million in gains and $9,000 in losses realized in 2009.

At December 31, 2011, all of the Company's mortgage-backed securities were rated as investment grade except for three non-agency issues. Two issues not rated investment grade had a par amount of $430,000 and an unrealized loss of $182,000. The other issue was rated below investment grade by one rating agency and investment grade by another rating agency had a par amount of $7.0 million and an unrealized loss of $428,000. The unrealized losses resulted from increases in credit spreads subsequent to the date that these securities were purchased. Based on the Company's analysis at December 31, 2011, there was no "other-than-temporary" impairment in these securities due to the low loan to value ratio for the loans underlying these securities and the credit support provided by junior tranches of these securitizations. The Company has the ability and intent to hold the securities for a period of time sufficient for a recovery of cost for those three non-agency mortgage-backed securities issues.

The Company's unrealized loss on investments in corporate bonds relates to a number of investments in bonds of financial institutions, all of which were investment grade at the date of acquisition and as of December 31, 2011, except for one issue, of which the Company owns $5 million of par value, by a regional bank which was downgraded to below investment grade during the fourth quarter of 2010. The unrealized losses were primarily caused by the widening of credit spreads since the dates of acquisition. The contractual terms of those investments do not permit the issuers to settle the security at a price less than the amortized cost of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that these bonds would not be settled at a price less than the amortized cost of the investment. Because the Company has the ability and intent to hold this investments until a recovery of fair value, which may be maturity, it does not consider its investments in these corporate bonds to be other-than-temporarily impaired at December 31, 2011.

The temporarily impaired securities represent 18.7% of the fair value of investment securities as of December 31, 2011. Unrealized losses for securities with unrealized losses for less than twelve months represent 5.4%, and securities with unrealized losses for twelve months or more represent 9.2%, of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rate spreads subsequent to the date that these securities were purchased. All of these securities were investment grade as of December 31, 2011, except the four issues mentioned above. At December 31, 2011, 28 issues of securities had unrealized losses for 12 months or longer and 30 issues of securities had unrealized losses of less than 12 months.

At December 31, 2011, management believed the impairment was temporary and, accordingly, no impairment loss has been recognized in our consolidated statements of operations. We expect to recover the amortized cost basis of our debt securities, and have no intent to sell and will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery. The table below shows the fair value, unrealized losses, and number of issuances of the temporarily impaired securities in our investment securities portfolio as of December 31, 2011, and December 31, 2010:


	As of December 31, 2011
	Temporarily Impaired Securities

	Less than 12 months						12 months or longer						Total
	Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances
	Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances
	(Dollars in thousands)
Securities Held-to-Maturity
Corporate debt securities	$	9,635	$	337		1	$	—	$	—		—	$	9,635	$	337		1

Total securities held-to- maturity	$	9,635	$	337		1	$	—	$	—		—	$	9,635	$	337		1

Securities Available-for-Sale
U.S. government sponsored entities	$	49,993	$	7		1	$	—	$	—		—	$	49,993	$	7		1
Mortgage-backed securities		564		4		8		35		1		2		599		5		10
Mortgage-backed securities-Non- agency		—		—		—		6,719		431		2		6,719		431		2
Collateralized mortgage obligations		—		—		—		570		238		4		570		238		4
Asset-backed securities		—		—		—		166		6		1		166		6		1
Corporate debt securities		185,577		14,201		17		172,857		17,528		19		358,434		31,729		36
Mutual funds		1,987		13		1		—		—		—		1,987		13		1
Trust preferred securities		5,674		24		2		—		—		—		5,674		24		2

Total securities available- for-sale	$	243,795	$	14,249		29	$	180,347	$	18,204		28	$	424,142	$	32,453		57

Total investment securities	$	253,430	$	14,586		30	$	180,347	$	18,204		28	$	433,777	$	32,790		58


	As of December 31, 2010
	Temporarily Impaired Securities

	Less than 12 months						12 months or longer						Total
	Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances
	Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances		Fair Value		Unrealized Losses		No. of Issuances
	(Dollars in thousands)
Securities Held-to-Maturity
State and municipal securities	$	121,161	$	8,946		122		—		—		—	$	121,161	$	8,946		122
Mortgage-backed securities		89,439		1,653		2		—		—		—		89,439		1,653		2
Corporate debt securities		9,954		13		1		—		—		—		9,954		13		1

Total securities held-to- maturity	$	220,554	$	10,612		125	$	—	$	—		—	$	220,554	$	10,612		125

Securities Available-for-Sale
U.S. Treasury securities	$	118,828	$	6,745		5	$	—	$	—		—	$	118,828	$	6,745		5
U.S. government sponsored entities		578,118		6,840		12		—		—		—		578,118		6,840		12
State and municipal securities		1,718		157		2		—		—		—		1,718		157		2
Mortgage-backed securities		354		4		7		32		1		1		386		5		8
Mortgage-backed securities-Non- agency		—		—		—		10,127		118		3		10,127		118		3
Collateralized mortgage obligations		—		—		—		887		115		4		887		115		4
Asset-backed securities		—		—		—		240		5		1		240		5		1
Corporate debt securities		310,630		6,438		30		—		—		—		310,630		6,438		30
Mutual funds		3,927		73		1		—		—		—		3,927		73		1
Trust preferred securities		10,384		170		2		—		—		—		10,384		170		2

Total securities available- for-sale	$	1,023,959	$	20,427		59	$	11,286	$	239		9	$	1,035,245	$	20,666		68

Total investment securities	$	1,244,513	$	31,039		184	$	11,286	$	239		9	$	1,255,799	$	31,278		193

Investment securities having a carrying value of $1.68 billion at December 31, 2011, and $1.80 billion at December 31, 2010, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, and foreign exchange transactions.