INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2011

Investment securities available-for-sale portfolio

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

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
As of September 30, 2011
Investment securities available-for-sale:
U.S. Treasury securities	$	19,881	$	880	$	-		$	20,761
U.S. Government agency and U.S. Government sponsored enterprise debt securities		641,698		1,961		(708	)		642,951
U.S. Government agency and U.S. Government sponsored enterprise
mortgage-backed securities:
Commercial mortgage-backed securities		16,335		488		-			16,823
Residential mortgage-backed securities		1,058,168		36,728		(1,067	)		1,093,829
Municipal securities		74,557		3,042		(133	)		77,466
Other residential mortgage-backed securities:
Investment grade		-		-		-			-
Non-investment grade		-		-		-			-
Corporate debt securities:
Investment grade		1,471,569		6,140		(74,277	)		1,403,432
Non-investment grade (1)		26,175		-		(11,980	)		14,195
Other securities		9,918		218		(1	)		10,135
Total investment securities available-for-sale	$	3,318,301	$	49,457	$	(88,166	)	$	3,279,592
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 (1)		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 nine months ended September 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				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011			2010
	(In thousands)
Beginning balance	$	115,243	$	114,891	$	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		-		888		464			8,108
Reduction for securities sold		-		-		(9,561	)		-
Ending balance	$	115,243	$	115,779	$	115,243		$	115,779

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 September 30, 2011 and December 31, 2010:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
As of September 30, 2011
Investment securities available-for-sale:
U.S. Treasury securities	$	-	$	-		$	-	$	-		$	-	$	-
U.S. Government agency and U.S. Government sponsored enterprise debt securities		177,715		(708	)		-		-			177,715		(708	)
U.S. Government agency and U.S. Government
sponsored enterprise mortgage-backed securities:
Commercial mortage-backed securities		-		-			-		-			-		-
Residential mortage-backed securities		195,248		(1,067	)		-		-			195,248		(1,067	)
Municipal securities		9,715		(133	)		-		-			9,715		(133	)
Other residential mortgage-backed securities:
Investment grade		-		-			-		-			-		-
Non-investment grade		-		-			-		-			-		-
Corporate debt securities:
Investment grade		944,337		(61,314	)		247,020		(12,963	)		1,191,357		(74,277	)
Non-investment grade		5,580		(387	)		8,616		(11,593	)		14,196		(11,980	)
Other securities		4,490		(1	)		-		-			4,490		(1	)
Total investment securities available-for-sale	$	1,337,085	$	(63,610	)	$	255,636	$	(24,556	)	$	1,592,721	$	(88,166	)

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		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	)		-		-			935,654		(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	)

Scheduled maturities of investment securities available-for sale, fair value [Abstract]

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

	Amortized		Estimated
	Cost		Fair Value
	(In thousands)
Due within one year	$	801,503	$	795,333
Due after one year through five years		360,252		351,417
Due after five years through ten years		1,030,845		978,194
Due after ten years		1,125,701		1,154,648
Total investment securities available-for-sale	$	3,318,301	$	3,279,592

- 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

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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

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-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

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-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.

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