Note 9 - Securities Sold Under Agreements to Repurchase

9 Months Ended

Sep. 30, 2012

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

9. Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase were $1.4 billion with a weighted average rate of 3.89% at September 30, 2012, compared to $1.4 billion with a weighted average rate of 4.14% at December 31, 2011.  In May 2011, the Company prepaid a security sold under an agreement to repurchase of $50 million with a rate of 4.83% and incurred a prepayment penalty of $1.7 million.  In the second quarter of 2012, the Company modified $100.0 million of securities sold under agreements to repurchase by extending the term by an additional four years, reducing the rate of these agreements by an average of 150 basis points and removing the callable feature of these borrowings.  In July 2012, the Company prepaid a security sold under an agreement to repurchase of $50 million with a rate of 4.43% and incurred a prepayment penalty of $3.5 million.  In the third quarter of 2012, the Company modified two separate $50.0 million of securities sold under agreements to repurchase by extending the term by an additional two and an additional three years, respectively, reducing the rate by an average of 185 basis points and removing the callable feature of these borrowings.  Nine floating-to-fixed rate agreements totaling $500.0 million have initial floating rates for a period of time ranging from six months to one year, with floating rates ranging from the three-month LIBOR minus 100 basis points to three-month LIBOR minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.35% to 5.07%.  After the initial floating rate term, the counter parties have the right to terminate the transaction at par at the fixed rate reset date and quarterly thereafter. Thirteen fixed-to-floating rate agreements totaling $650.0 million have initial fixed rates ranging from 1.00% to 3.50% with initial fixed rate terms ranging from six months to 18 months.  For the remainder of the seven year term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.25% to 3.79% and minimum rate of 0.0%.  After the initial fixed rate term, the counter parties have the right to terminate the transaction at par at the floating rate reset date and quarterly thereafter.The table below provides summary data for the $1.15 billion of callable securities sold under agreements to repurchase as of September 30, 2012:

(Dollars in million)	Fixed-to-floating																		Floating-to-fixed						Total
Rate type	Float Rate																		Fixed Rate
Rate index	8% minus 3 month LIBOR
Maximum rate		3.79	%		3.53	%		3.50	%		3.50	%		3.53	%		3.25	%
Minimum rate		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
No. of agreements		3			1			4			3			1			1			5			4			22
Amount	$	150.0		$	50.0		$	200.0		$	150.0		$	50.0		$	50.0		$	300.0		$	200.0		$	1,150.0
Weighted average rate		3.78	%		3.53	%		3.50	%		3.50	%		3.53	%		3.25	%		4.61	%		5.00	%		4.08	%
Final maturity		2014			2014			2014			2015			2015			2015			2014			2017

The table below provides summary data for non-callable fixed rate securities sold under agreements to repurchase as of September 30, 2012:

Maturity (years)	No. of Agreements		Amount (In thousands)		Weighted Average Interest Rate
3  to 5		2	$	100,000		2.71	%
Over 5		2		100,000		2.86	%
Total		4	$	200,000		2.79	%

These transactions are accounted for as collateralized financing transactions and recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral for the repurchase agreements, as necessary.  The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities, U.S. government agency security debt, and mortgage-backed securities with a fair value of $1.5 billion as of September 30, 2012, and $1.6 billion as of December 31, 2011.