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Note 6 - Investment Securities | 6 Months Ended
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Jun. 30, 2013
Investments, Debt and Equity Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 6. Investment Securities Investment securities were $2.0 billion at June 30, 2013, compared to $2.1 billion at December 31, 2012. During the first quarter of 2013, due to the ongoing discussions regarding corporate income tax rates which could have a negative impact on the after-tax yields and fair values of the Company’s portfolio of municipal securities, the Company determined it may sell such securities in response to market conditions. As a result, the Company reclassified its municipal securities from securities held-to-maturity to securities available-for-sale. Concurrent with this reclassification, the Company also reclassified all other securities held-to-maturity, which together with the municipal securities had an amortized cost on the date of transfer of $722.5 million, to securities available-for-sale. At the reclassification date, a net unrealized gain was recorded in other comprehensive income for these securities totaling $40.5 million. The following table reflects the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment securities as of June 30, 2013, and December 31, 2012:
|  | June 30, 2013 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 409,849 |  |  | $ | 192 |  |  | $ | 6 |  |  | $ | 410,035 |
Mortgage-backed securities |  |  | 1,430,373 |  |  |  | 20,153 |  |  |  | 45,178 |  |  |  | 1,405,348 |
Collateralized mortgage obligations |  |  | 7,438 |  |  |  | 295 |  |  |  | 65 |  |  |  | 7,668 |
Asset-backed securities |  |  | 132 |  |  |  | 1 |  |  |  | - |  |  |  | 133 |
Corporate debt securities |  |  | 189,951 |  |  |  | 415 |  |  |  | 7,540 |  |  |  | 182,826 |
Mutual funds |  |  | 6,000 |  |  |  | - |  |  |  | 161 |  |  |  | 5,839 |
Preferred stock of government sponsored entities |  |  | 569 |  |  |  | 5,887 |  |  |  | - |  |  |  | 6,456 |
Total securities available-for-sale |  | $ | 2,044,312 |  |  | $ | 26,943 |  |  | $ | 52,950 |  |  | $ | 2,018,305 |
Total investment securities |  | $ | 2,044,312 |  |  | $ | 26,943 |  |  | $ | 52,950 |  |  | $ | 2,018,305 |
|  | December 31, 2012 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
Securities Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities |  | $ | 129,037 |  |  | $ | 9,268 |  |  | $ | - |  |  | $ | 138,305 |
Mortgage-backed securities |  |  | 634,757 |  |  |  | 40,801 |  |  |  | - |  |  |  | 675,558 |
Corporate debt securities |  |  | 9,974 |  |  |  | 69 |  |  |  | - |  |  |  | 10,043 |
Total securities held-to-maturity |  | $ | 773,768 |  |  | $ | 50,138 |  |  | $ | - |  |  | $ | 823,906 |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 509,748 |  |  | $ | 228 |  |  | $ | 5 |  |  | $ | 509,971 |
Mortgage-backed securities |  |  | 404,505 |  |  |  | 12,194 |  |  |  | 5 |  |  |  | 416,694 |
Collateralized mortgage obligations |  |  | 9,772 |  |  |  | 430 |  |  |  | 34 |  |  |  | 10,168 |
Asset-backed securities |  |  | 145 |  |  |  | - |  |  |  | 4 |  |  |  | 141 |
Corporate debt securities |  |  | 349,973 |  |  |  | 106 |  |  |  | 14,102 |  |  |  | 335,977 |
Mutual funds |  |  | 6,000 |  |  |  | 79 |  |  |  | - |  |  |  | 6,079 |
Preferred stock of government sponsored entities |  |  | 569 |  |  |  | 1,766 |  |  |  | - |  |  |  | 2,335 |
Trust preferred securities |  |  | 9,964 |  |  |  | 151 |  |  |  | - |  |  |  | 10,115 |
Total securities available-for-sale |  | $ | 1,290,676 |  |  | $ | 14,954 |  |  | $ | 14,150 |  |  | $ | 1,291,480 |
Total investment securities |  | $ | 2,064,444 |  |  | $ | 65,092 |  |  | $ | 14,150 |  |  | $ | 2,115,386 |
The amortized cost and fair value of investment securities at June 30, 2013, by contractual maturities, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.
|  | Securities available-for-sale |
|  | Amortized cost |  |  | Fair value |
|  | (In thousands) |  |  |  |  |
Due in one year or less |  | $ | 309,963 |  |  | $ | 310,155 |
Due after one year through five years |  |  | 185,177 |  |  |  | 183,982 |
Due after five years through ten years |  |  | 152,342 |  |  |  | 149,019 |
Due after ten years (1) |  |  | 1,396,830 |  |  |  | 1,375,149 |
Total |  | $ | 2,044,312 |  |  | $ | 2,018,305 |
(1) Equity securities are reported in this category |  |  |  |  |  |  |  |
Proceeds from sales of mortgage-backed securities were $113.6 million and repayments, maturities and calls of mortgage-backed securities were $179.0 million during the first six months of 2013 compared to proceeds from sales of $179.5 million and repayments, maturities, and calls of $178.1 million during the same period a year ago. Proceeds from sales of other investment securities were $440.1 million during the first six months of 2013 compared to $41.1 million during the same period year ago. Proceeds from maturity and calls of other investment securities were $80.1 million during the first six months of 2013 compared to $470.8 million during the same period ago. Gains of $18.5 million and no losses of were realized on sales and calls of investment securities during the first six months of 2013 compared to gains of $5.2 million and losses of $608,000 realized for the same period a year ago. The unrealized loss on investments in corporate bonds relates to the Company’s investment in 15 issues of bonds of financial institutions, all of which were investment grade at the date of acquisition and as of June 30, 2013. The unrealized losses for these now floating rate securities were primarily caused by the widening of credit spreads since the dates of acquisition. The contractual terms of those investments do not permit the issuers to settle the security at a price less than the amortized cost of the investment. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investments. Therefore, it is expected that these bonds would not be settled at a price less than the amortized cost of the investment. Because the Company does not intend to sell and would not be required to sell these investments until a recovery of fair value, which may be at maturity, it does not consider its investments in these corporate bonds to be other-than-temporarily impaired at June 30, 2013. The temporarily impaired securities represent 58.0% of the fair value of investment securities as of June 30, 2013. Unrealized losses for securities with unrealized losses for less than twelve months represent 4.3%, and securities with unrealized losses for twelve months or more represent 4.6%, of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rates or spreads subsequent to the date that these securities were purchased. At June 30, 2013, management believed the impairment was temporary and, accordingly, no impairment loss has been recognized in our condensed consolidated statements of operations. The Company expects to recover the amortized cost basis of its debt securities, and has no intent to sell and will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery. The table below shows the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of June 30, 2013, and December 31, 2012:
|  | June 30, 2013 |
|  | Temporarily impaired securities |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
|  | (Dollars in thousands) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 99,918 |  |  | $ | 6 |  |  | $ | - |  |  | $ | - |  |  | $ | 99,918 |  |  | $ | 6 |
Mortgage-backed securities |  |  | 901,227 |  |  |  | 45,174 |  |  |  | 160 |  |  |  | 2 |  |  |  | 901,387 |  |  |  | 45,176 |
Mortgage-backed securities-Non-agency |  |  | 94 |  |  |  | 2 |  |  |  | - |  |  |  | - |  |  |  | 94 |  |  |  | 2 |
Collateralized mortgage obligations |  |  | 67 |  |  |  | 2 |  |  |  | 332 |  |  |  | 63 |  |  |  | 399 |  |  |  | 65 |
Corporate debt securities |  |  | 9,758 |  |  |  | 242 |  |  |  | 152,702 |  |  |  | 7,298 |  |  |  | 162,460 |  |  |  | 7,540 |
Mutual funds |  |  | 5,839 |  |  |  | 161 |  |  |  | - |  |  |  | - |  |  |  | 5,839 |  |  |  | 161 |
Total securities available-for-sale |  | $ | 1,016,903 |  |  | $ | 45,587 |  |  | $ | 153,194 |  |  | $ | 7,363 |  |  | $ | 1,170,097 |  |  | $ | 52,950 |
Total investment securities |  | $ | 1,016,903 |  |  | $ | 45,587 |  |  | $ | 153,194 |  |  | $ | 7,363 |  |  | $ | 1,170,097 |  |  | $ | 52,950 |
|  | December 31, 2012 |
|  | Temporarily impaired securities |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
|  | (Dollars in thousands) |
Securities Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total securities held-to-maturity |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 49,969 |  |  | $ | 5 |  |  | $ | - |  |  | $ | - |  |  | $ | 49,969 |  |  | $ | 5 |
Mortgage-backed securities |  |  | 231 |  |  |  | 1 |  |  |  | 170 |  |  |  | 1 |  |  |  | 401 |  |  |  | 2 |
Mortgage-backed securities-Non-agency |  |  | - |  |  |  | - |  |  |  | 96 |  |  |  | 2 |  |  |  | 96 |  |  |  | 2 |
Collateralized mortgage obligations |  |  | - |  |  |  | - |  |  |  | 439 |  |  |  | 35 |  |  |  | 439 |  |  |  | 35 |
Asset-backed securities |  |  | - |  |  |  | - |  |  |  | 141 |  |  |  | 4 |  |  |  | 141 |  |  |  | 4 |
Corporate debt securities |  |  | 52,468 |  |  |  | 2,532 |  |  |  | 253,430 |  |  |  | 11,570 |  |  |  | 305,898 |  |  |  | 14,102 |
Total securities available-for-sale |  | $ | 102,668 |  |  | $ | 2,538 |  |  | $ | 254,276 |  |  | $ | 11,612 |  |  | $ | 356,944 |  |  | $ | 14,150 |
Total investment securities |  | $ | 102,668 |  |  | $ | 2,538 |  |  | $ | 254,276 |  |  | $ | 11,612 |  |  | $ | 356,944 |  |  | $ | 14,150 |
Investment securities having a carrying value of $1.12 billion at June 30, 2013, and $1.45 billion at December 31, 2012, were pledged to secure public deposits, other borrowings, treasury tax and loan, Federal Home Loan Bank advances, securities sold under agreements to repurchase, interest rate swaps, and foreign exchange transactions.

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