Note 3 - Investment Securities

3 Months Ended

Mar. 31, 2013

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

Note 3:  Investment Securities

The amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of investment securities available for sale follows:

	Investment Securities Available for Sale At March 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
U.S. Treasury securities	$	3,516	$	31	$	-		$	3,547
Securities of U.S. Government sponsored entities		44,236		166		(10	)		44,392
Residential mortgage-backed securities		45,756		3,157		(3	)		48,910
Commercial mortgage-backed securities		3,827		63		-			3,890
Obligations of States and political subdivisions		195,326		13,040		(275	)		208,091
Residential collateralized mortgage obligations		268,282		2,140		(509	)		269,913
Asset-backed securities		15,686		25		(98	)		15,613
FHLMC and FNMA stock		825		4,872		(3	)		5,694
Corporate securities		365,847		3,739		(673	)		368,913
Other securities		2,058		1,227		(72	)		3,213
Total	$	945,359	$	28,460	$	(1,643	)	$	972,176

The amortized cost, unrealized gains and losses, and fair value of investment securities held to maturity follows:

	Investment Securities Held to Maturity At March 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	2,747	$	28	$	-		$	2,775
Residential mortgage-backed securities		68,417		1,774		(14	)		70,177
Obligations of States and political subdivisions		720,514		18,378		(2,913	)		735,979
Residential collateralized mortgage obligations		370,680		6,401		(371	)		376,710
Total	$	1,162,358	$	26,581	$	(3,298	)	$	1,185,641

The amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of investment securities available for sale follows:

	Investment Securities Available for Sale At December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
U.S. Treasury securities	$	3,520	$	38	$	-		$	3,558
Securities of U.S. Government sponsored entities		49,335		207		(17	)		49,525
Residential mortgage-backed securities		53,078		3,855		(1	)		56,932
Commercial mortgage-backed securities		4,076		69		-			4,145
Obligations of States and political subdivisions		200,769		14,730		(252	)		215,247
Residential collateralized mortgage obligations		219,613		1,786		(294	)		221,105
Asset-backed securities		16,130		18		(143	)		16,005
FHLMC and FNMA stock		824		2,061		(5	)		2,880
Corporate securities		250,655		3,009		(826	)		252,838
Other securities		2,091		1,370		(60	)		3,401
Total	$	800,091	$	27,143	$	(1,598	)	$	825,636

The amortized cost, unrealized gains and losses, and fair value of investment securities held to maturity follows:

	Investment Securities Held to Maturity At December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	3,232	$	43	$	-		$	3,275
Residential mortgage-backed securities		72,807		2,090		(10	)		74,887
Obligations of States and political subdivisions		680,802		23,004		(1,235	)		702,571
Residential collateralized mortgage obligations		399,200		5,185		(561	)		403,824
Total	$	1,156,041	$	30,322	$	(1,806	)	$	1,184,557

The amortized cost and fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated:

	At March 31, 2013
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturity in years:
1 year or less	$	79,377	$	80,036	$	10,458	$	10,733
Over 1 to 5 years		371,270		375,009		166,385		170,445
Over 5 to 10 years		70,880		74,190		265,198		272,601
Over 10 years		103,084		111,321		281,220		284,975
Subtotal		624,611		640,556		723,261		738,754
Mortgage-backed securities and residential collateralized mortgage obligations		317,865		322,713		439,097		446,887
Other securities		2,883		8,907		-		-
Total	$	945,359	$	972,176	$	1,162,358	$	1,185,641

	At December 31, 2012
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturity in years:
1 year or less	$	40,380	$	40,686	$	10,265	$	10,496
Over 1 to 5 years		309,293		312,480		167,162		171,769
Over 5 to 10 years		59,817		63,540		227,603		236,608
Over 10 years		110,919		120,467		279,004		286,973
Subtotal		520,409		537,173		684,034		705,846
Mortgage-backed securities and residential collateralized mortgage obligations		276,767		282,182		472,007		478,711
Other securities		2,915		6,281		-		-
Total	$	800,091	$	825,636	$	1,156,041	$	1,184,557

Expected maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. In addition, such factors as prepayments and interest rates may affect the yield on the carrying value of mortgage-backed securities. At March 31, 2013 and December 31, 2012, the Company had no high-risk collateralized mortgage obligations as defined by regulatory guidelines.

An analysis of gross unrealized losses of investment securities available for sale follows:

	Investment Securities Available for Sale At March 31, 2013
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	9,990	$	(10	)	$	-	$	-		$	9,990	$	(10	)
Residential mortgage-backed securities		64		(1	)		884		(2	)		948		(3	)
Obligations of States and political subdivisions		3,107		(23	)		9,030		(252	)		12,137		(275	)
Residential collateralized mortgage obligations		85,377		(509	)		-		-			85,377		(509	)
Asset-backed securities		-		-			5,449		(98	)		5,449		(98	)
FHLMC and FNMA stock		-		-			3		(3	)		3		(3	)
Corporate securities		68,203		(386	)		19,713		(287	)		87,916		(673	)
Other securities		-		-			1,928		(72	)		1,928		(72	)
Total	$	166,741	$	(929	)	$	37,007	$	(714	)	$	203,748	$	(1,643	)

An analysis of gross unrealized losses of investment securities held to maturity follows:

	Investment Securities Held to Maturity At March 31, 2013
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Residential mortgage-backed securities	$	255	$	-		$	7,775	$	(14	)	$	8,030	$	(14	)
Obligations of States and political subdivisions		153,086		(2,782	)		8,887		(131	)		161,973		(2,913	)
Residential collateralized mortgage obligations		10,268		(167	)		12,770		(204	)		23,038		(371	)
Total	$	163,609	$	(2,949	)	$	29,432	$	(349	)	$	193,041	$	(3,298	)

The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments.  The Company evaluates securities on a quarterly basis including changes in security ratings issued by ratings agencies, changes in the financial condition of the issuer, and, for mortgage-related and asset-backed securities, delinquency and loss information with respect to the underlying collateral, changes in the levels of subordination for the Company’s particular position within the repayment structure, and remaining credit enhancement as compared to expected credit losses of the security. Substantially all of these securities continue to be investment grade rated by one or more major rating agencies. In addition to monitoring credit rating agency evaluations, Management performs its own evaluations regarding the credit worthiness of the issuer or the securitized assets underlying asset backed securities.

The Company does not intend to sell any investments and has concluded that it is more likely than not that it will not be required to sell the investments prior to recovery of the amortized cost basis. Therefore, the Company does not consider these investments to be other-than-temporarily impaired as of March 31, 2013.

The fair values of the investment securities could decline in the future if the general economy deteriorates, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future.

As of March 31, 2013, $872,470 thousand of investment securities were pledged to secure public deposits, short-term borrowed funds, and term repurchase agreements, compared to $850,421 thousand at December 31, 2012.

An analysis of gross unrealized losses of investment securities available for sale follows:

	Investment Securities Available for Sale At December 31, 2012
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Securities of U.S. Government sponsored entities	$	9,983	$	(17	)	$	-	$	-		$	9,983	$	(17	)
Residential mortgage-backed securities		103		(1	)		11		-			114		(1	)
Residential collateralized mortgage obligations		72,803		(294	)		-		-			72,803		(294	)
Obligations of States and political subdivisions		2,080		(23	)		8,928		(229	)		11,008		(252	)
Asset-backed securities		-		-			5,828		(143	)		5,828		(143	)
FHLMC and FNMA stock		-		-			1		(5	)		1		(5	)
Corporate securities		53,570		(423	)		24,597		(403	)		78,167		(826	)
Other securities		-		-			1,940		(60	)		1,940		(60	)
Total	$	138,539	$	(758	)	$	41,305	$	(840	)	$	179,844	$	(1,598	)

An analysis of gross unrealized losses of investment securities held to maturity follows:

	Investment Securities Held to Maturity At December 31, 2012
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Residential mortgage-backed securities	$	113	$	-		$	664	$	(10	)	$	777	$	(10	)
Residential collateralized mortgage obligations		26,683		(386	)		9,353		(175	)		36,036		(561	)
Obligations of States and political subdivisions		69,839		(1,205	)		4,275		(30	)		74,114		(1,235	)
Total	$	96,635	$	(1,591	)	$	14,292	$	(215	)	$	110,927	$	(1,806	)

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	For the Three Months Ended March 31,
	2013		2012
	(In thousands)
Taxable:
Mortgage related securities	$	3,561	$	3,364
Other		1,974		1,326
Total taxable		5,535		4,690
Tax-exempt		7,531		7,952
Total interest income from investment securities	$	13,066	$	12,642