Note 4 - Investment Securities

12 Months Ended

Dec. 31, 2012

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

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, 2012, and December 31, 2011:

	At December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Securities Held-to-Maturity
State and municipal securities	$	129,037	$	9,268	$	-	$	138,305
Mortgage-backed securities		634,757		40,801		-		675,558
Corporate debt securities		9,974		69		-		10,043
Total securities held-to-maturity	$	773,768	$	50,138	$	-	$	823,906
Securities Available-for-Sale
U.S. treasury securities	$	509,748	$	228	$	5	$	509,971
Mortgage-backed securities		404,505		12,194		5		416,694
Collateralized mortgage obligations		9,772		430		34		10,168
Asset-backed securities		145		-		4		141
Corporate debt securities		349,973		106		14,102		335,977
Mutual funds		6,000		79		-		6,079
Preferred stock of government sponsored entities		569		1,766		-		2,335
Trust preferred securities		9,964		151		-		10,115
Total securities available-for-sale	$	1,290,676	$	14,954	$	14,150	$	1,291,480
Total investment securities	$	2,064,444	$	65,092	$	14,150	$	2,115,386

	At December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held-to-Maturity	(In thousands)
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 December 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	$	349,899	$	349,940	$	-	$	-
Due after one year through five years		375,041		370,241		-		-
Due after five years through ten years		194,901		190,047		62,235		66,523
Due after ten years (1)		370,835		381,252		711,533		757,383
Total	$	1,290,676	$	1,291,480	$	773,768	$	823,906

(1) Equity securities are reported in this category

Proceeds from sales of mortgage-backed securities were $501.1 million and repayments, maturities and calls of mortgage-backed securities were $118.1 million during 2012 compared to proceeds from sales of $759.7 million and repayments, maturities and calls of $108.4 million during 2011, and proceeds from sales of $1.04 billion and repayments, maturities and calls of $308.2 million during 2010.  Proceeds from sales of other investment securities were $61.0 million during 2012 compared to $525.0 million during 2011 and $65.1 million during 2010.  Proceeds from maturity and calls of investment securities were $552.1 million during 2012 compared to $435.0 million during 2011 and $2.88 billion in 2010.  In 2012, gains of $18.6 million and losses of $607,000 were realized on sales and calls of investment securities compared with $21.1 million in gains and no losses realized in 2011, and $19.3 million in gains and $67,000 in losses realized in 2010.

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, 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 December 31, 2012.

The temporarily impaired securities represent 16.9% of the fair value of investment securities as of December 31, 2012.  Unrealized losses for securities with unrealized losses for less than twelve months represent 2.4%, and securities with unrealized losses for twelve months or more represent 4.4%, 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 December 31, 2012, 34 issues of securities had unrealized losses for 12 months or longer and 7 issues of securities had unrealized losses of less than 12 months.

At December 31, 2012, 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, 2012, and December 31, 2011:

	As of December 31, 2012
	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
	(Dollars in thousands)
Securities Held-to-Maturity
Total securities held-to-maturity	$	-	$	-		-	$	-	$	-		-	$	-	$	-		-
Securities Available-for-Sale
U.S. treasury securities	$	49,969	$	5		1	$	-	$	-		-	$	49,969	$	5		1
Mortgage-backed securities		231		1		2		170		1		6		401		2		8
Mortgage-backed securities-Non-agency		-		-		-		96		2		1		96		2		1
Collateralized mortgage obligations		-		-		-		439		35		4		439		35		4
Asset-backed securities		-		-		-		141		4		1		141		4		1
Corporate debt securities		52,468		2,532		4		253,430		11,570		22		305,898		14,102		26
Total securities available-for-sale	$	102,668	$	2,538		7	$	254,276	$	11,612		34	$	356,944	$	14,150		41
Total investment securities	$	102,668	$	2,538		7	$	254,276	$	11,612		34	$	356,944	$	14,150		41

	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
	(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

Investment securities having a carrying value of $1.45 billion at December 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, and foreign exchange transactions.