Note 3 - Investment Securities

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

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

Note 3:  Investment Securities

An analysis of 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, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
U.S. Treasury securities	$	3,499	$	9	$	-		$	3,508
Securities of U.S. Government sponsored entities		329,589		108		(1,387	)		328,310
Residential mortgage-backed securities		30,154		1,791		(18	)		31,927
Commercial mortgage-backed securities		3,216		10		(5	)		3,221
Obligations of states and political subdivisions		180,011		7,635		(222	)		187,424
Residential collateralized mortgage obligations		259,615		674		(12,460	)		247,829
Asset-backed securities		9,322		5		(56	)		9,271
FHLMC and FNMA stock		804		16,241		-			17,045
Corporate securities		406,526		3,180		(609	)		409,097
Other securities		2,039		767		(150	)		2,656
Total	$	1,224,775	$	30,420	$	(14,907	)	$	1,240,288

An analysis of 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, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	1,428	$	-	$	(4	)	$	1,424
Residential mortgage-backed securities		63,048		855		(388	)		63,515
Obligations of states and political subdivisions		748,520		7,414		(11,409	)		744,525
Residential collateralized mortgage obligations		297,333		1,622		(4,592	)		294,363
Total	$	1,110,329	$	9,891	$	(16,393	)	$	1,103,827

An analysis of 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, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
U.S. Treasury securities	$	3,500	$	9	$	(3	)	$	3,506
Securities of U.S. Government sponsored entities		131,080		75		(663	)		130,492
Residential mortgage-backed securities		32,428		1,763		(15	)		34,176
Commercial mortgage-backed securities		3,411		19		(5	)		3,425
Obligations of states and political subdivisions		186,082		5,627		(323	)		191,386
Residential collateralized mortgage obligations		266,890		730		(14,724	)		252,896
Asset-backed securities		14,653		3		(101	)		14,555
FHLMC and FNMA stock		804		12,568		-			13,372
Corporate securities		430,794		2,901		(1,264	)		432,431
Other securities		2,049		1,251		(158	)		3,142
Total	$	1,071,691	$	24,946	$	(17,256	)	$	1,079,381

An analysis of 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, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Securities of U.S. Government sponsored entities	$	1,601	$	-	$	(4	)	$	1,597
Residential mortgage-backed securities		65,076		854		(624	)		65,306
Obligations of states and political subdivisions		756,707		6,211		(21,667	)		741,251
Residential collateralized mortgage obligations		308,915		1,209		(5,602	)		304,522
Total	$	1,132,299	$	8,274	$	(27,897	)	$	1,112,676

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, 2014
	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	$	35,521	$	35,862	$	8,947	$	9,215
Over 1 to 5 years		726,407		728,374		206,687		209,237
Over 5 to 10 years		84,231		86,679		299,437		298,232
Over 10 years		82,788		86,695		234,877		229,265
Subtotal		928,947		937,610		749,948		745,949
Mortgage-backed securities and residential collateralized mortgage obligations		292,985		282,977		360,381		357,878
Other securities		2,843		19,701		-		-
Total	$	1,224,775	$	1,240,288	$	1,110,329	$	1,103,827

	At December 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	$	75,385	$	75,609	$	9,639	$	9,900
Over 1 to 5 years		536,333		538,111		187,051		189,827
Over 5 to 10 years		66,669		68,166		314,630		310,104
Over 10 years		87,722		90,484		246,988		233,017
Subtotal		766,109		772,370		758,308		742,848
Mortgage-backed securities and residential collateralized mortgage obligations		302,729		290,497		373,991		369,828
Other securities		2,853		16,514		-		-
Total	$	1,071,691	$	1,079,381	$	1,132,299	$	1,112,676

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, 2014 and December 31, 2013, 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, 2014
	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	$	239,558	$	(1,360	)	$	8,968	$	(27	)	$	248,526	$	(1,387	)
Residential mortgage-backed securities		-		-			848		(18	)		848		(18	)
Commercial mortgage-backed securities		960		(5	)		-		-			960		(5	)
Obligations of states and political subdivisions		11,098		(123	)		3,683		(99	)		14,781		(222	)
Residential collateralized mortgage obligations		154,576		(9,107	)		68,889		(3,353	)		223,465		(12,460	)
Asset-backed securities		-		-			4,205		(56	)		4,205		(56	)
Corporate securities		38,415		(123	)		50,693		(486	)		89,108		(609	)
Other securities		-		-			1,850		(150	)		1,850		(150	)
Total	$	444,607	$	(10,718	)	$	139,136	$	(4,189	)	$	583,743	$	(14,907	)

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

	Investment Securities Held to Maturity At March 31, 2014
	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	$	1,424	$	(4	)	$	-	$	-		$	1,424	$	(4	)
Residential mortgage-backed securities		29,321		(276	)		7,235		(112	)		36,556		(388	)
Obligations of states and political subdivisions		201,958		(3,292	)		150,776		(8,117	)		352,734		(11,409	)
Residential collateralized mortgage obligations		202,785		(4,572	)		1,655		(20	)		204,440		(4,592	)
Total	$	435,488	$	(8,144	)	$	159,666	$	(8,249	)	$	595,154	$	(16,393	)

The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates. 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 a major rating agency. 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, 2014.

The fair values of the investment securities could decline in the future if the general economy deteriorates, inflation increases, 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, 2014, $876,491 thousand of investment securities were pledged to secure public deposits, short-term borrowed funds, and term repurchase agreements, compared to $778,588 thousand at December 31, 2013.

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

	Investment Securities Available for Sale At December 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)
U.S. Treasury securities	$	2,994	$	(3	)	$	-	$	-		$	2,994	$	(3	)
Securities of U.S. Government sponsored entities		91,669		(663	)		-		-			91,669		(663	)
Residential mortgage-backed securities		864		(15	)		-		-			864		(15	)
Commercial mortgage-backed securities		1,072		(5	)		-		-			1,072		(5	)
Obligations of states and political subdivisions		17,516		(222	)		3,214		(101	)		20,730		(323	)
Residential collateralized mortgage obligations		187,848		(12,326	)		40,575		(2,398	)		228,423		(14,724	)
Asset-backed securities		5,002		(1	)		4,475		(100	)		9,477		(101	)
Corporate securities		117,751		(1,087	)		9,824		(177	)		127,575		(1,264	)
Other securities		-		-			1,842		(158	)		1,842		(158	)
Total	$	424,716	$	(14,322	)	$	59,930	$	(2,934	)	$	484,646	$	(17,256	)

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

	Investment Securities Held to Maturity At December 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	$	1,597	$	(4	)	$	-	$	-		$	1,597	$	(4	)
Residential mortgage-backed securities		38,396		(616	)		392		(8	)		38,788		(624	)
Obligations of states and political subdivisions		355,797		(14,893	)		64,427		(6,774	)		420,224		(21,667	)
Residential collateralized mortgage obligations		214,981		(5,175	)		14,120		(427	)		229,101		(5,602	)
Total	$	610,771	$	(20,688	)	$	78,939	$	(7,209	)	$	689,710	$	(27,897	)

The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments, particularly rising risk-free interest rates causing bond prices to decline.

The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax:

	For the Three Months Ended March 31,
	2014		2013
	(In thousands)
Taxable:
Mortgage related securities	$	3,053	$	3,561
Other		2,630		1,974
Total taxable		5,683		5,535
Tax-exempt		6,980		7,531
Total interest income from investment securities	$	12,663	$	13,066