Securities Available-for-Sale

6 Months Ended

Jun. 30, 2011

Securities Available For Sale [Abstract]

Securities Available For Sale

Note 4. Securities Available-for-Sale

	June 30, 2011								December 31, 2010
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
							( In thousands)
U.S. Treasury	$	1,998	$	9	$	—	$	2,007	$	2,000	$	5	$	—	$	2,005
U.S. Government Sponsored Enterprises		324,771		518		288		325,001		175,842		386		565		175,663
Small Business Administration		9,165		39		—		9,204		9,735		1		4		9,732
U.S. Government Agency and Sponsored Enterprises Mortgage Backed Securities		700,549		13,221		2,030		711,740		674,481		11,842		5,425		680,898
Privately Issued Residential Mortgage Backed Securities		3,869		—		136		3,733		4,247		—		279		3,968
Privately Issued Commercial Mortgage Backed Securities		81		—		—		81		285		2		—		287
Obligations Issued by States and Political Subdivisions		23,127		97		288		22,936		34,271		98		295		34,074
Other Debt Securities		2,300		—		45		2,255		2,300		—		47		2,253
Equity Securities		395		126		—		521		395		116		—		511
Total	$	1,066,255	$	14,010	$	2,787	$	1,077,478	$	903,556	$	12,450	$	6,615	$	909,391

Included in U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $396,911,000 and $363,240,000 at June 30, 2011 and December 31, 2010, respectively. Also included in securities available-for-sale are securities pledged for borrowing at the Federal Home Loan Bank amounting to $390,480,000 and $124,189,000 at June 30, 2011 and December 31, 2010, respectively. The Company realized gross gains of $362,000 from the proceeds of $20,516,000 from the sales of available-for-sale securities for the six months ended June 30, 2011. The Company realized gross gains of $1,027,000 from the proceeds of $34,625,000 from the sales of available-for-sale securities for the six months ended June 30, 2010.

The following table shows the maturity distribution of the Company’s securities available-for-sale at June 30, 2011.

	Amortized		Fair
	Cost		Value
	( In thousands)
Within one year	$	42,434	$	43,130
After one but within five years		776,797		787,257
After five but within ten years		228,010		228,236
More than 10 years		17,119		16,879
Non-maturing		1,895		1,976
Total	$	1,066,255	$	1,077,478

The weighted average remaining life of investment securities available-for-sale at June 30, 2011 was 4.4 years. Included in the weighted average remaining life calculation at June 30, 2011 was $324,771,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. These call dates were not utilized in computing the weighted average remaining life. The contractual maturities, which were used in the table above, of mortgage-backed securities will differ from the actual maturities, due to the ability of the issuers to prepay underlying obligations.

As of June 30, 2011 and December 31, 2010, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not likely that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade.

The unrealized loss on U.S. Government Sponsored Enterprises and U.S. Government Sponsored Enterprises Mortgage Backed Securities related primarily to interest rates and not credit quality and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The change in the unrealized losses on the state and municipal securities and the nonagency mortgage-backed securities were primarily caused by changes in credit spreads and liquidity issues in the marketplace.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. In the case of marketable equity securities, the severity of the unrealized loss, the length of time the unrealized loss has existed, and the issuer’s financial performance are considered.

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at June 30, 2011. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 40 and 5 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 380 holdings at June 30, 2011.

	June 30, 2011
	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
Temporarily Impaired Investments
U.S. Government Sponsored Enterprises	$	103,547	$	288	$	—	$	—	$	103,547	$	288
U.S. Government Agency and Sponsored Enterprises Mortgage Backed Securities		122,108		2,030		—		—		122,108		2,030
Privately Issued Residential Mortgage Backed Securities		1,393		14		2,341		122		3,734		136
Obligations Issued by States and Political Subdivisions		4,108		2		4,393		286		8,501		288
Other Debt Securities		—		—		1,455		45		1,455		45
Total temporarily impaired securities	$	231,156	$	2,334	$	8,189	$	453	$	239,345	$	2,787

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2010. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 59 and 5 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 345 holdings at December 31, 2010.

	December 31, 2010
	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
Temporarily Impaired Investments
U.S. Government Sponsored Enterprises	$	74,290	$	565	$	—	$	—	$	74,290	$	565
SBA Backed Securities		2,246		4		—		—		2,246		4
U.S. Government Agency and Sponsored Enterprises Mortgage Backed Securities		191,155		5,425		—		—		191,155		5,425
Privately Issued Residential Mortgage Backed Securities		1,503		52		2,465		227		3,968		279
Obligations Issued by States and Political Subdivisions		9,257		11		4,393		284		13,650		295
Other Debt Securities		—		—		1,454		47		1,454		47
Equity Securities		—		—		—		—		—		—
Total temporarily impaired securities	$	278,451	$	6,057	$	8,312	$	558	$	286,763	$	6,615