Note 3 - Investment Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

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

NOTE 3:  INVESTMENT SECURITIES

The amortized cost and fair value of investment securities that are classified as held-to-maturity and available-for-sale are as follows:

	March 31, 2015									December 31, 2014
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
Held-to-Maturity
U.S. Government agencies	$	390,625	$	1,935	$	(1,043	)	$	391,517	$	418,914	$	929	$	(4,055	)	$	415,788
Mortgage-backed securities		28,535		276		(145	)		28,666		29,743		56		(411	)		29,388
State and political subdivisions		482,316		9,807		(210	)		491,907		328,310		7,000		(573	)		334,737
Other securities		947		-		-			947		620		-		-			620
Total HTM	$	902,423	$	12,012	$	(1,398	)	$	913,037	$	777,587	$	7,985	$	(5,039	)	$	780,533
Available-for-Sale
U.S. Treasury	$	4,000	$	8	$	-		$	4,008	$	4,000	$	1	$	(9	)	$	3,992
U.S. Government agencies		346,786		355		(826	)		346,315		275,381		15		(2,580	)		272,816
Mortgage-backed securities		308,333		3,748		(70	)		312,011		1,579		-		(7	)		1,572
State and political subdivisions		13,342		110		-			13,452		6,536		7		(3	)		6,540
Other securities		31,870		458		(731	)		31,597		19,985		386		(8	)		20,363
Total AFS	$	704,331	$	4,679	$	(1,627	)	$	707,383	$	307,481	$	409	$	(2,607	)	$	305,283

Securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are carried at cost and are reported as other available-for-sale securities in the table above.

Certain investment securities are valued at less than their historical cost.  Total fair value of these investments at March 31, 2015, was $537.2 million, which is approximately 33.4% of the Company’s combined available-for-sale and held-to-maturity investment portfolios.

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2015:

	Less Than 12 Months					12 Months or More					Total
(In thousands)	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Held-to-Maturity
U.S. Government agencies	$	131,872	$	(589	)	$	70,543	$	(454	)	$	202,415	$	(1,043	)
Mortgage-backed securities		1,902		(13	)		8,895		(132	)		10,797		(145	)
State and political subdivisions		31,294		(186	)		2,920		(24	)		34,214		(210	)
Total HTM	$	165,068	$	(788	)	$	82,358	$	(610	)	$	247,426	$	(1,398	)
Available-for-Sale
U.S. Government agencies	$	196,571	$	(500	)	$	79,311	$	(326	)	$	275,882	$	(826	)
Mortgage-backed securities		12,300		(70	)		--		--			12,300		(70	)
State and political subdivisions		--		--			--		--			--		--
Equity Securities		515		(2	)		--		--			515		(2	)
Other		1,060		(729	)		--		--			1,060		(729	)
Total AFS	$	210,446	$	(1,301	)	$	79,311	$	(326	)	$	289,757	$	(1,627	)

These declines primarily resulted from the rate for these investments yielding less than current market rates.  Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary.  Management does not have the intent to sell these securities and management believes it is more likely than not the Company will not have to sell these securities before recovery of their amortized cost basis less any current period credit losses.

Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time the Company expects to receive full value for the securities.  Furthermore, as of March 31, 2015, management also had the ability and intent to hold the securities classified as available-for-sale for a period of time sufficient for a recovery of cost.  The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased.  The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline.  Management does not believe any of the securities are impaired due to reasons of credit quality.  Accordingly, as of March 31, 2015, management believes the impairments detailed in the table above are temporary.  Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The book value of securities sold under agreements to repurchase equaled $104.4 million and $93.5 million for March 31, 2015 and December 31, 2014, respectively.

Income earned on securities for the three months ended March 31, 2015 and 2014, is as follows:

(In thousands)	2015		2014
Taxable:
Held-to-maturity	$	1,389	$	1,349
Available-for-sale		1,583		550
Non-taxable:
Held-to-maturity		2,602		2,619
Available-for-sale		305		31
Total	$	5,879	$	4,549

Maturities of investment securities at March 31, 2015, are as follows:

	Held-to-Maturity				Available-for-Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	41,310	$	41,392	$	58,762	$	58,752
After one through five years		414,115		414,863		247,200		246,659
After five through ten years		182,259		185,229		123,795		124,808
After ten years		264,739		271,553		243,476		246,322
Other securities (no maturity)		-		-		31,098		30,842
Total	$	902,423	$	913,037	$	704,331	$	707,383

The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $888.6 million at March 31, 2015 and $520.4 million at December 31, 2014.

There were $2,000 of gross realized gains and $40,000 of realized losses from the sale of available for sale securities during the three months ended March 31, 2015.  There were no realized gains or losses on investment securities for the three months ended March 31, 2014.

The state and political subdivision debt obligations are primarily non-rated bonds representing small, Arkansas, Texas, Missouri and Tennessee issues, which are evaluated on an ongoing basis.