Note 9 - Securities Sold Under Agreements to Repurchase

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

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 $800 million with a weighted average rate of 3.87% at September 30, 2013, compared to $1.3 billion with a weighted average rate of 3.84% at December 31, 2012. In 2012, the Company modified $200.0 million of securities sold under agreements to repurchase by extending the term by an additional four years on average, reducing the rate by an average of 168 basis points, and removing the callable feature. In 2012, the Company prepaid securities sold under agreements to repurchase totaling $150 million with a weighted average rate of 4.43% and incurred prepayment penalties of $9.4 million. In the first nine months of 2013, the Company prepaid securities sold under agreements to repurchase totaling $450 million with a weighted average rate of 3.79% and incurred prepayment penalties of $22.6 million. Five floating-to-fixed rate agreements totaling $300.0 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 200 basis points to the three-month LIBOR rate minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.78% 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. Six fixed-to-floating rate agreements totaling $300.0 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 remaining term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.50% to 3.75% 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 $600 million of callable securities sold under agreements to repurchase as of September 30, 2013:

(Dollars in millions)	Fixed-to-floating									Floating-to-fixed						Total
Rate type	Float Rate									Fixed Rate
Rate index	8% minus 3 month LIBOR
Maximum rate		3.75	%		3.50	%		3.50	%
Minimum rate		0.0	%		0.0	%		0.0	%
No. of agreements		1			2			3			1			4			11
Amount	$	50.0		$	100.0		$	150.0		$	100.0		$	200.0		$	600.0
Weighted average rate		3.75	%		3.50	%		3.50	%		4.78	%		5.00	%		4.24	%
Final maturity	2014			2014			2015			2014			2017

The table below provides summary data for non-callable fixed rate securities sold under agreements to repurchase as of September 30, 2013:

Maturity	No. of Agreements		Amount (In thousands)		Weighted Average Interest Rate
1 year to 3 years		1	$	50,000		2.69	%
3 years to 5 years		3	$	150,000		2.81	%
Total		4	$	200,000		2.78	%

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 securities, and mortgage-backed securities with a fair value of $920.1 million as of September 30, 2013, and $1.4 billion as of December 31, 2012.