Note 6 - Investment Securities

6 Months Ended

Jun. 30, 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 June 30, 2012, and December 31, 2011:

	June 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
U.S. government sponsored entities	$	99,988	$	445	$	-	$	100,433
State and municipal securities		129,307		7,490		-		136,797
Mortgage-backed securities		780,709		45,449		-		826,158
Corporate debt securities		9,973		-		284		9,689
Total securities held-to-maturity	$	1,019,977	$	53,384	$	284	$	1,073,077
Securities Available-for-Sale
U.S. treasury securities	$	159,871	$	-	$	36	$	159,835
U.S. government sponsored entities		50,000		182		-		50,182
Mortgage-backed securities		527,100		17,373		5		544,468
Collateralized mortgage obligations		12,785		521		90		13,216
Asset-backed securities		157		-		5		152
Corporate debt securities		397,795		339		30,224		367,910
Mutual funds		6,000		122		-		6,122
Preferred stock of government sponsored entities		569		1,607		-		2,176
Trust preferred securities		17,401		379		31		17,749
Other equity securities		1,468		3,505		-		4,973
Total securities available-for-sale	$	1,173,146	$	24,028	$	30,391	$	1,166,783
Total investment securities	$	2,193,123	$	77,412	$	30,675	$	2,239,860

	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

The amortized cost and fair value of investment securities at June 30, 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	$	32,843	$	32,873	$	99,988	$	100,433
Due after one year through five years		255,162		254,378		-		-
Due after five years through ten years		393,762		369,662		50,183		52,556
Due after ten years (1)		491,379		509,870		869,806		920,088
Total	$	1,173,146	$	1,166,783	$	1,019,977	$	1,073,077

(1) Equity securities are reported in this category

Proceeds from sales of mortgage-backed securities were $179.5 million and repayments, maturities and calls of mortgage-backed securities were $178.1 million during the first six months of 2012 compared to proceeds from sales of $470.4 million and repayments, maturities, and calls of $108.2 million during the same period a year ago.  Proceeds from sales of other investment securities were $41.1 million during the first six months of 2012 compared to $367.5 million during the same period a year ago.  Proceeds from maturity and calls of investment securities were $470.8 million during the first six months of 2012 compared to $275.0 million during the same period a year ago.  Gains of $5.2 million and losses of $608,000 were realized on sales and calls of investment securities during the first six months of 2012 compared to gains of $11.4 million  and no losses realized for the same period 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 June 30, 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 June 30, 2012.

The temporarily impaired securities represent 22.2% of the fair value of investment securities as of June 30, 2012.  Unrealized losses for securities with unrealized losses for less than twelve months represent 2.2%, 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.

At June 30, 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 and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of June 30, 2012, and December 31, 2011:

	As of June 30, 2012
	Temporarily Impaired Securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities Held-to-Maturity
Corporate debt securities	$	9,688	$	284	$	-	$	-	$	9,688	$	284
Total securities held-to-maturity	$	9,688	$	284	$	-	$	-	$	9,688	$	284
Securities Available-for-Sale
U.S. treasury securities	$	159,835	$	36	$	-	$	-	$	159,835	$	36
Mortgage-backed securities		69		1		194		2		263		3
Mortgage-backed securities-Non-agency		-		-		97		2		97		2
Collateralized mortgage obligations		-		-		498		90		498		90
Asset-backed securities		-		-		152		5		152		5
Corporate debt securities		72,765		5,063		249,819		25,161		322,584		30,224
Trust preferred securities		3,154		31		-		-		3,154		31
Total securities available-for-sale	$	235,823	$	5,131	$	250,760	$	25,260	$	486,583	$	30,391
Total investment securities	$	245,511	$	5,415	$	250,760	$	25,260	$	496,271	$	30,675

	As of December 31, 2011
	Temporarily Impaired Securities
	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized 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 $1.54 billion at June 30, 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.