SECURITIES

6 Months Ended

Jun. 30, 2011

Investments, Debt and Equity Securities [Abstract]

SECURITIES

NOTE 5 - SECURITIES

During the second quarter of 2011, the Company determined that it no longer had the intent to hold until maturity all securities that were previously classified as held-to-maturity.  As a result of this determination, all securities were classified as available-for-sale and recorded at fair value as of June 30, 2011.  The Company reclassed held-to-maturity securities with amortized cost of $1.6 billion and fair value of $1.7 billion to available-for-sale resulting in an increase in other comprehensive income of $19.7 million during the second quarter of 2011.  Amortized cost and estimated fair values of held-to-maturity securities as of December 31, 2010 follow:

	December 31, 2010
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
U.S. Government agencies	$	1,246,649	$	27,082	$	4,320	$	1,269,411
Obligations of states and political subdivisions		366,370		4,286		7,376		363,280
Total	$	1,613,019	$	31,368	$	11,696	$	1,632,691

Gross gains of approximately $37,000 and no gross losses were recognized on held-to-maturity securities during the first six months of 2011 prior to the reclassification of held-to-maturity securities to available-for-sale securities.  Gross gains of approximately $45,000 and no gross losses were recognized during the first six months of 2010.  These gains and losses were a result of held-to-maturity securities being called prior to maturity.

A comparison of amortized cost and estimated fair values of available-for-sale securities as of June 30, 2011 and December 31, 2010 follows:

	June 30, 2011
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
U.S. Government agencies	$	1,565,900	$	33,475	$	144	$	1,599,231
Government agency issued residential
mortgage-backed securities		425,416		6,847		1,861		430,402
Government agency issued commercial
mortgage-backed securities		30,420		1,325		118		31,627
Obligations of states and political subdivisions		472,860		14,727		934		486,653
Other		12,161		750		-		12,911
Total	$	2,506,757	$	57,124	$	3,057	$	2,560,824

	December 31, 2010
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
U.S. Government agencies	$	416,005	$	17,153	$	-	$	433,158
Government agency issued residential
mortgage-backed securities		498,874		5,954		1,599		503,229
Government agency issued commercial
mortgage-backed securities		29,582		676		264		29,994
Obligations of states and political subdivisions		110,946		965		1,746		110,165
Other		18,943		573		-		19,516
Total	$	1,074,350	$	25,321	$	3,609	$	1,096,062

Gross gains of $10.3 million and gross losses of approximately $260,000 were recognized on available-for-sale securities during the first six months of 2011, while gross gains of $2.0 million and gross losses of $1.3 million were recognized during the first six months of 2010.

The amortized cost and estimated fair value of available-for-sale securities at June 30, 2011 by contractual maturity are shown below.  Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Equity securities are considered as maturing after ten years.

	June 30, 2011
			Estimated		Weighted
	Amortized		Fair		Average
	Cost		Value		Yield
	(Dollars in thousands)
Maturing in one year or less	$	330,416	$	337,666		5.09	%
Maturing after one year through five years		1,443,567		1,468,183		2.00
Maturing after five years through ten years		266,506		273,532		3.48
Maturing after ten years		466,268		481,443		5.61
Total	$	2,506,757	$	2,560,824

The following tables summarize information pertaining to temporarily impaired available-for-sale securities with continuous unrealized loss positions at June 30, 2011 and December 31, 2010:

	June 30, 2011
	Continuous Unrealized Loss Position
	Less Than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
Available-for-sale securities:
U.S. Government agencies	$	79,782	$	(144	)	$	-	$	-		$	79,782	$	(144	)
Government agency issued residential
mortgage-backed securities		140,877		(1,861	)		-		-			140,877		(1,861	)
Government agency issued commercial
mortgage-backed securities		2,097		(35	)		3,963		(83	)		6,060		(118	)
Obligations of states and														-
political subdivisions		35,576		(814	)		1,248		(120	)		36,824		(934	)
Other		-		-			-		-			-		-
Total	$	258,332	$	(2,854	)	$	5,211	$	(203	)	$	263,543	$	(3,057	)

	December 31, 2010
	Continuous Unrealized Loss Position
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Held-to-maturity securities:
U.S. Government agencies	$	-	$	-	$	-	$	-	$	-	$	-
Obligations of states and
political subdivisions		20,322		332		9,327		338		29,649		670
Total	$	20,322	$	332	$	9,327	$	338	$	29,649	$	670
Available-for-sale securities:
U.S. Government agencies	$	48,881	$	207	$	-	$	-	$	48,881	$	207
Government agency issued residential
mortgage-backed securities		6,320		122		-		-		6,320		122
Government agency issued commercial
mortgage-backed securities		1,384		19		2,598		66		3,982		85
Obligations of states and												-
political subdivisions		36,704		297		2,459		205		39,163		502
Collateralized debt obligations		-		-		5		1		5		1
Other		-		-		-		-		-		-
Total	$	93,289	$	645	$	5,062	$	272	$	98,351	$	917

Based upon a review of the credit quality of these securities, and considering that the issuers were in compliance with the terms of the securities, management had no intent to sell these securities, and it was more likely than not that the Company would not be required to sell the securities prior to recovery of costs. Therefore, the impairments related to these securities were determined to be temporary.  No other-than-temporary impairment has been recorded during 2011.