INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2011

Investment securities available-for-sale portfolio

An analysis of the investment securities available-for-sale portfolio is presented as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
As of June 30, 2011
Investment securities available-for-sale:
U.S. Treasury securities	$	19,870	$	755	$	-		$	20,625
U.S. Government agency and U.S. Government sponsored enterprise debt securities		1,206,670		2,744		(3,794	)		1,205,620
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities		23,709		625		-			24,334
Residential mortgage-backed securities		746,942		18,660		(304	)		765,298
Municipal securities		32,145		822		(87	)		32,880
Other residential mortgage-backed securities:
Investment grade		-		-		-			-
Non-investment grade		-		-		-			-
Corporate debt securities:
Investment grade		1,125,985		8,390		(12,540	)		1,121,835
Non-investment grade(1)		26,181		-		(9,684	)		16,497
Other securities		18,685		346		(12	)		19,019
Total investment securities available-for-sale	$	3,200,187	$	32,342	$	(26,421	)	$	3,206,108

As of December 31, 2010
Investment securities available-for-sale:
U.S. Treasury securities	$	19,847	$	607	$	-		$	20,454
U.S. Government agency and U.S. Government sponsored enterprise debt securities		1,349,289		2,297		(18,121	)		1,333,465
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities		18,620		512		-			19,132
Residential mortgage-backed securities		295,140		11,574		-			306,714
Municipal securities		-		-		-			-
Other residential mortgage-backed securities:
Investment grade		-		-		-			-
Non-investment grade		14,996		-		(8,742	)		6,254
Corporate debt securities:
Investment grade		1,056,537		9,095		(8,765	)		1,056,867
Non-investment grade		50,015		31		(11,316	)		38,730
Other securities		95,966		267		(1,908	)		94,325
Total investment securities available-for-sale	$	2,900,410	$	24,383	$	(48,852	)	$	2,875,941

_______________________

(1)

For the six months ended June 30, 2011, the Company recorded $464 thousand, on a pre-tax basis, of the credit portion of OTTI through earnings and $5.1 million of the non-credit portion of OTTI for pooled trust preferred securities in other comprehensive income. The Company recorded $16.7 million, on a pre-tax basis, of the credit portion of OTTI through earnings and $15.4 million of the non-credit portion of OTTI for pooled trust preferred securities and other mortgage-backed securities in other comprehensive income for the year ended December 31, 2010.

Schedule of other than temporary impairment, credit losses recognized in earnings

The following table shows the Company's rollforward of the amount related to OTTI credit losses for the periods shown:

	Three Months Ended June 30,
	2011			2010
	(In thousands)

Beginning balance, April 1	$	115,243		$	112,470
Addition of other-than-temporary impairment that was not previously recognized		-			-
Additional increases to the amount related to the credit loss for which an other-than-temporary impairment was previously recognized		-			2,421
Reduction for securities sold		-			-
Ending balance	$	115,243		$	114,891


	Six Months Ended June 30,
	2011			2010
	(In thousands)

Beginning balance, January 1	$	124,340		$	107,671
Addition of other-than-temporary impairment that was not previously recognized		-			-
Additional increases to the amount related to the credit loss for which an other-than-temporary impairment was previously recognized		464			7,220
Reduction for securities sold		(9,561	)		-
Ending balance	$	115,243		$	114,891

Gross unrealized losses and related fair values of investment securities available-for-sale

The following tables show the Company's investment portfolio's gross unrealized losses and related fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2011 and December 31, 2010:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
As of June 30, 2011
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	-		$	-	$	-		$	-	$	-
U.S. Government agency and U.S. Government sponsored enterprise debt securities		428,712		(3,794	)		-		-			428,712		(3,794	)
U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:
Commercial mortage-backed securities		-		-			-		-			-		-
Residential mortage-backed securities		101,766		(304	)		-		-			101,766		(304	)
Municipal securities		5,479		(87	)		-		-			5,479		(87	)
Other residential mortgage-backed securities:
Investment grade		-		-			-		-			-		-
Non-investment grade		-		-			-		-			-		-
Corporate debt securities:
Investment grade		650,004		(12,088	)		39,531		(452	)		689,535		(12,540	)
Non-investment grade		5,786		(178	)		10,710		(9,506	)		16,496		(9,684	)
Other securities		1,960		(12	)		-		-			1,960		(12	)
Total investment securities available-for-sale	$	1,193,707	$	(16,463	)	$	50,241	$	(9,958	)	$	1,243,948	$	(26,421	)

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
As of December 31, 2010
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	-		$	-	$	-		$	-	$	-
U.S. Government agency and U.S. Government sponsored enterprise debt securities		935,654		(18,121)								935,645		(18,121)
U.S. Government agency and U.S. Government sponsored enterprise mortgage backed securities:
Commercial mortage-backed securities		-		-			-		-			-		-
Residential mortage-backed securities		-		-			-		-			-		-
Municipal securities		-		-			-		-			-		-
Other residential mortgage-backed securities:
Investment grade		-		-			-		-			-		-
Non-investment grade		-		-			6,254		(8,742	)		6,254		(8,742	)
Corporate debt securities:
Investment grade		656,434		(8,765	)		-		-			656,434		(8,765	)
Non-investment grade		24,105		(623	)		9,926		(10,693	)		34,031		(11,316	)
Other securities		76,692		(1,908	)		-		-			76,692		(1,908	)
Total investment securities available-for-sale	$	1,692,885	$	(29,417	)	$	16,180	$	(19,435	)	$	1,709,065	$	(48,852	)

Schedule maturities of investment securities

The scheduled maturities of investment securities at June 30, 2011 are presented as follows:

	Amortized Cost		Estimated Fair Value

	(In thousands)

Due within one year	$	1,313,357	$	1,309,062
Due after one year through five years		350,888		353,157
Due after five years through ten years		767,516		761,926
Due after ten years		768,426		781,963
Total investment securities available-for-sale	$	3,200,187	$	3,206,108

- Definition

Tabular disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

+ Details

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

+ References+ Details