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Note 10 - Borrowed Funds | 12 Months Ended
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Dec. 31, 2012
Debt Disclosure [Text Block] | 10. Borrowed Funds Federal Funds Purchased. There were no Federal funds purchased at any time during 2010 or 2012. The average amount of Federal funds purchased during 2011 was $27,000 with a weighted average interest rate of 1.29%. Securities Sold under Agreements to Repurchase. Securities sold under agreements to repurchase were $1.3 billion with a weighted average rate of 3.84% at December 31, 2012, compared to $1.4 billion with a weighted average rate of 4.14% at December 31, 2011. In May 2011, the Company prepaid a security sold under an agreement to repurchase of $50 million with a rate of 4.83% and incurred a prepayment penalty of $1.7 million. In 2012, the Company modified $200.0 million of securities sold under agreements to repurchase by extending the term by an additional four years on average, reducing the rate of these agreements by an average of 168 basis points and removing the callable feature of these borrowings. In 2012, the Company prepaid three securities sold under an agreement to repurchase for the total of $150 million with a weighted average rate of 4.43% and incurred prepayment penalties of $9.4 million. Seven floating-to-fixed rate agreements totaling $400.0 million have initial floating rates for a period of time ranging from six months to one year, with floating rates ranging from the three-month LIBOR minus 200 basis points to three-month LIBOR minus 340 basis points. Thereafter, the rates are fixed for the remainder of the term, with interest rates ranging from 4.52% to 5.07%. After the initial floating rate term, the counter parties have the right to terminate the transaction at par at the fixed rate reset date and quarterly thereafter. Thirteen fixed-to-floating rate agreements totaling $650.0 million have initial fixed rates ranging from 1.00% to 3.50% with initial fixed rate terms ranging from six months to 18 months. For the remainder of the seven year term, the rates float at 8% minus the three-month LIBOR rate with a maximum rate ranging from 3.25% to 3.79% and minimum rate of 0.0%. After the initial fixed rate term, the counter parties have the right to terminate the transaction at par at the floating rate reset date and quarterly thereafter. The table below provides summary data for the $1.05 billion of callable securities sold under agreements to repurchase as of December 31, 2012:
(Dollars in millions) |  | Fixed-to-floating |  |  | Floating-to-fixed |  |  | Total |
Rate type |  | Float Rate |  |  | Fixed Rate |  |  |  |
Rate index |  | 8% minus 3 month LIBOR |  |  |  |  |  |  |  |  |  |
Maximum rate |  |  | 3.79 | % |  |  | 3.53 | % |  |  | 3.50 | % |  |  | 3.50 | % |  |  | 3.53 | % |  |  | 3.25 | % |  |  |  |  |  |  |  |  |
Minimum rate |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | % |  |  |  |  |  |  |  |  |
No. of agreements |  |  | 3 |  |  |  | 1 |  |  |  | 4 |  |  |  | 3 |  |  |  | 1 |  |  |  | 1 |  |  |  | 3 |  |  |  | 4 |  |  |  | 20 |
Amount |  | $ | 150.0 |  |  | $ | 50.0 |  |  | $ | 200.0 |  |  | $ | 150.0 |  |  | $ | 50.0 |  |  | $ | 50.0 |  |  | $ | 200.0 |  |  | $ | 200.0 |  |  | $ | 1,050.0 |
Weighted average rate |  |  | 3.78 | % |  |  | 3.53 | % |  |  | 3.50 | % |  |  | 3.50 | % |  |  | 3.53 | % |  |  | 3.25 | % |  |  | 4.69 | % |  |  | 5.00 | % |  |  | 4.04 | %
Final maturity |  |  | 2014 |  |  |  | 2014 |  |  |  | 2014 |  |  |  | 2015 |  |  |  | 2015 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2017 |  |  |  |  |
The table below provides summary data for non-callable fixed rate securities sold under agreements to repurchase as of December 31, 2012:
Maturity |  | No. of Agreements |  |  | Amount (In thousands) |  |  | Weighted Average Interest Rate |
3 years to 5 years |  |  | 2 |  |  | $ | 100,000 |  |  |  | 2.71 | %
Over 5 years |  |  | 2 |  |  |  | 100,000 |  |  |  | 2.86 | %
Total |  |  | 4 |  |  | $ | 200,000 |  |  |  | 2.78 | %
These transactions are accounted for as collateralized financing transactions and recorded at the amount at which the securities were sold. We may have to provide additional collateral for the repurchase agreements, as necessary. The underlying collateral pledged for the repurchase agreements consists of U.S. Treasury securities, U.S. government agency security debt, and mortgage-backed securities with a fair value of $1.4 billion as of December 31, 2012, and $1.6 billion as of December 31, 2011. The table below provides comparative data for securities sold under agreements to repurchase for the years indicated:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (Dollars in thousands) |
Average amount outstanding during the year (1) |  | $ | 1,361,475 |  |  | $ | 1,448,363 |  |  | $ | 1,560,215 |
Maximum amount outstanding at month-end (2) |  |  | 1,400,000 |  |  |  | 1,559,000 |  |  |  | 1,566,000 |
Balance, December 31 |  |  | 1,250,000 |  |  |  | 1,400,000 |  |  |  | 1,561,000 |
Rate, December 31 |  |  | 3.84 | % |  |  | 4.14 | % |  |  | 4.18 | %
Weighted average interest rate for the year |  |  | 4.09 | % |  |  | 4.19 | % |  |  | 4.24 | %
(1) | Average balances were computed using daily averages.
(2) | Highest month-end balances were January 2012, January 2011, and September 2010.
Advances from the Federal Home Loan Bank. Total advances from the FHLB were $146.2 million with weighted average rate of 0.44% at December 31, 2012, compared to $225.0 million with weighted average rate of 2.08% at December 31, 2011. The Company prepaid advances from the FHLB totaling $100.0 million at a rate of 4.60% and incurred prepayment penalties of $2.8 million in 2012 and prepaid advances totaling $450.0 million with a weighted rate of 4.39% and incurred prepayment penalties of $18.5 million in 2011. The following relates to the outstanding advances at December 31, 2012, and 2011:
|  | 2012 |  |  | 2011 |
Maturity |  | Amount (In thousands) |  |  | Weighted Average Interest Rate |  |  | Amount (In thousands) |  |  | Weighted Average Interest Rate |
Within 90 days |  | $ | 125,000 |  |  |  | 0.28 | % |  | $ | - |  |  |  | 0.00 | %
91 days through 365 days |  |  | - |  |  |  | 0.00 | % |  |  | 225,000 |  |  |  | 2.08 | %
4 - 5 years |  |  | 21,200 |  |  |  | 1.38 | % |  |  | - |  |  |  | - |
|  | $ | 146,200 |  |  |  | 0.44 | % |  | $ | 225,000 |  |  |  | 2.08 | %
Other borrowings from financial institutions. At December 31, 2012, there were no other borrowings from financial institutions. At December 31, 2011, other borrowings from a financial institution were $880,000 with a weighted average rate of 0.55%. Other Liabilities. On November 23, 2004, the Company entered into an agreement with its Chief Executive Officer (“CEO”) pursuant to which the CEO agreed to defer any bonus amounts in excess of $225,000 for the year ended December 31, 2005, until January 1 of the first year following such time as the CEO separates from the Company. Accordingly, an amount equal to $610,000 was deferred in 2004 and was accrued in other liabilities in the consolidated balance sheet. The Company agreed to accrue interest on the deferred portion of the bonus at 7.0% per annum compounded quarterly. The deferred amount will be increased each quarter by the amount of interest computed for that quarter. Beginning on the tenth anniversary of the agreement, the interest rate will equal 275 basis points above the prevailing interest rate on the ten-year Treasury Note. Interest of $71,000 during 2012, $67,000 during 2011, and $62,000 during 2010 was accrued on this deferred bonus. The balance was $1.1 million at December 31, 2012, and $995,000 at December 31, 2011.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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