Note 6 - Investment Securities

3 Months Ended

Mar. 31, 2012

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

6. Investment  Securities

The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment securities as of March 31, 2012, and December 31, 2011:

	March 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
U.S. government sponsored entities	$	99,978	$	945	$	-	$	100,923
State and municipal securities		129,444		6,057		-		135,501
Mortgage-backed securities		845,314		39,860		-		885,174
Corporate debt securities		9,972		-		46		9,926
Total securities held-to-maturity	$	1,084,708	$	46,862	$	46	$	1,131,524
Securities Available-for-Sale
U.S. treasury securities	$	99,904	$	-	$	49	$	99,855
U.S. government sponsored entities		300,000		270		106		300,164
Mortgage-backed securities		493,043		9,889		537		502,395
Collateralized mortgage obligations		14,234		519		90		14,663
Asset-backed securities		164		-		5		159
Corporate debt securities		410,195		552		23,397		387,350
Mutual funds		6,000		40		16		6,024
Preferred stock of government sponsored entities		569		1,056		-		1,625
Trust preferred securities		35,993		853		-		36,846
Other equity securities		1,469		3,192		-		4,661
Total securities available-for-sale	$	1,361,571	$	16,371	$	24,200	$	1,353,742
Total investment securities	$	2,446,279	$	63,233	$	24,246	$	2,485,266

	December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		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

The amortized cost and fair value of investment securities at March 31, 2012, 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	$	34,890	$	34,950	$	99,978	$	100,923
Due after one year through five years		225,252		224,709		-		-
Due after five years through ten years		631,327		614,458		39,105		40,722
Due after ten years (1)		470,102		479,625		945,625		989,879
Total	$	1,361,571	$	1,353,742	$	1,084,708	$	1,131,524

(1) Equity securities are reported in this category

Proceeds from sales of mortgage-backed securities were $117.6 million and repayments of mortgage-backed securities were $94.2 million during the first quarter of 2012 compared to proceeds from sales of $315.3 million and repayment of $41.6 million during the same quarter a year ago.  Proceeds from sales of other investment securities were $30.6 million during the first quarter of 2012 compared to $217.3 million during the same quarter a year ago.  Proceeds from maturity and calls of investment securities were $200.0 million during the first quarter of 2012 compared to $27.0 million during the same quarter a year ago.  Gains of $2.8 million and losses of $595,000 were realized on sales and calls of investment securities during the first quarter of 2012 compared to gains of $6.2 million  and no losses realized for the same quarter a year ago.

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 March 31, 2012.  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 does not intend to sell and would not be required to sell these 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 March 31, 2012.

The temporarily impaired securities represent 25.1% of the fair value of investment securities as of March 31, 2012.  Unrealized losses for securities with unrealized losses for less than twelve months represent 2.1%, and securities with unrealized losses for twelve months or more represent 8.1%, 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.

At March 31, 2012, management believed the impairment was temporary and, accordingly, no impairment loss has been recognized in our condensed consolidated statements of operations.  The Company expects to recover the amortized cost basis of its debt securities, and has 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 March 31, 2012, and December 31, 2011:

	As of March 31, 2012
	Temporarily Impaired Securities
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(Dollars in thousands)
Securities Held-to-Maturity
Corporate debt securities	$	9,925	$	46		-		-	$	9,925	$	46
Total securities held-to-maturity	$	9,925	$	46	$	-	$	-	$	9,925	$	46
Securities Available-for-Sale
U.S. treasury securities	$	99,855	$	49	$	-	$	-	$	99,855	$	49
U.S. government sponsored entities		49,894		106		-		-		49,894		106
Mortgage-backed securities		154,114		532		535		3		154,649		535
Mortgage-backed securities-Non-agency		-		-		99		2		99		2
Collateralized mortgage obligations		-		-		503		90		503		90
Asset-backed securities		-		-		158		5		158		5
Corporate debt securities		145,771		9,180		160,783		14,217		306,554		23,397
Mutual funds		1,983		16		-		-		1,983		16
Total securities available-for-sale	$	451,617	$	9,883	$	162,078	$	14,317	$	613,695	$	24,200
Total investment securities	$	461,542	$	9,929	$	162,078	$	14,317	$	623,620	$	24,246

	As of December 31, 2011
	Temporarily Impaired Securities
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(Dollars in thousands)
Securities Held-to-Maturity
Corporate debt securities	$	9,635	$	337	$	-	$	-	$	9,635	$	337
Total securities held-to-maturity	$	9,635	$	337	$	-	$	-	$	9,635	$	337
Securities Available-for-Sale
U.S. government sponsored entities	$	49,993	$	7	$	-	$	-	$	49,993	$	7
Mortgage-backed securities		564		4		35		1		599		5
Mortgage-backed securities-Non-agency		-		-		6,719		431		6,719		431
Collateralized mortgage obligations		-		-		570		238		570		238
Asset-backed securities		-		-		166		6		166		6
Corporate debt securities		185,577		14,201		172,857		17,528		358,434		31,729
Mutual funds		1,987		13		-		-		1,987		13
Trust preferred securities		5,674		24		-		-		5,674		24
Total securities available-for-sale	$	243,795	$	14,249	$	180,347	$	18,204	$	424,142	$	32,453
Total investment securities	$	253,430	$	14,586	$	180,347	$	18,204	$	433,777	$	32,790

Investment securities having a carrying value of $1.52 billion at March 31, 2012, and $1.68 billion at December 31, 2011, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, interest rate swaps, and foreign exchange transactions.