Investment Securities

The following table summarizes Synovus' available for sale investment securities as of June 30, 2012 and December 31, 2011.



	June 30, 2012
(in thousands)	Amortized Cost⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	307	—	—		307
U.S. Government agency securities	37,238		2,442	—		39,680
Securities issued by U.S. Government sponsored enterprises	559,306		5,248	(28	)	564,526
Mortgage-backed securities issued by U.S. Government agencies	272,813		7,303	(71	)	280,045
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,006,398		50,229	—		2,056,627
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	602,109		2,785	(4,728	)	600,166
State and municipal securities	20,378		739	(20	)	21,097
Equity securities	3,647		39	—		3,686
Other investments	5,000		2	(790	)	4,212
Total	$	3,507,196	68,787	(5,637	)	3,570,346

	December 31, 2011
(in thousands)	Amortized Cost⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	426	—	—		426
U.S. Government agency securities	37,489		3,004	—		40,493
Securities issued by U.S. Government sponsored enterprises	667,707		8,333	(619	)	675,421
Mortgage-backed securities issued by U.S. Government agencies	266,682		19,071	—		285,753
Mortgage-backed securities issued by U.S. Government sponsored enterprises	1,955,988		46,275	(257	)	2,002,006
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	651,379		1,646	(1,525	)	651,500
State and municipal securities	24,530		808	(20	)	25,318
Equity securities	4,147		—	(388	)	3,759
Other investments	5,449		—	—		5,449
Total	$	3,613,797	79,137	(2,809	)	3,690,125

⁽¹⁾ Amortized cost is adjusted for other-than-temporary impairment charges in 2012 and 2011, which have been recognized on the consolidated statements of operations in the applicable period, and were considered inconsequential.

At June 30, 2012 and December 31, 2011, investment securities with a market value of $2.16 billion and $2.48 billion, respectively, were pledged to secure certain deposits, securities sold under repurchase agreements, and payment network arrangements as required by law and contractual agreements.

Synovus has reviewed investment securities that are in an unrealized loss position as of June 30, 2012 and December 31, 2011 for OTTI and does not consider any securities in an unrealized loss position to be other-than-temporarily impaired. If Synovus intended to sell a security in an unrealized loss position, the entire unrealized loss would be reflected in income. Synovus does not intend to sell any of these investment securities prior to the recovery of the unrealized loss, which may be until maturity; and has the ability and intent to hold those securities for that period of time. Additionally, Synovus is not currently aware of any circumstances which will require it to sell any of the securities that are in an unrealized loss position.

Declines in the fair value of available-for-sale securities below their cost that are deemed to have OTTI are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. Currently, unrealized losses on debt securities are attributable to increases in interest rates on comparable securities from the date of purchase. Synovus regularly evaluates its investment securities portfolio to ensure that there are no conditions that would indicate that unrealized losses represent other-than-temporary impairment. These factors include length of time that the security has been in a loss position, the extent that the fair value has been below amortized cost, and the credit standing of the issuer.

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2012 and December 31, 2011 are presented below.



	June 30, 2012
	Less than 12 Months					12 Months or Longer					Total Fair Value
(in thousands)	Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
Securities issued by U.S. Government sponsored enterprises	2	$	56,641	(28	)	—	$	—	—		2	$	56,641	(28	)
Mortgage-backed securities issued by U.S. Government agencies	6	14,227		(71	)	—	—		—		6	14,227		(71	)
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	5	319,735		(4,728	)	—	—		—		5	319,735		(4,728	)
State and municipal securities	1	34		(2	)	1	883		(18	)	2	917		(20	)
Other investments	2	2,210		(790	)	—	—		—		2	2,210		(790	)
Total	16	$	392,847	(5,619	)	1	$	883	(18	)	17	$	393,730	(5,637	)

		December 31, 2011
	Less than 12 Months					12 Months or Longer					Total Fair Value
(in thousands)	Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
Securities issued by U.S. Government sponsored enterprises	5	$	349,370	(619	)	—	$	—	—		5	$	349,370	(619	)
Mortgage-backed securities issued by U.S. Government sponsored enterprises	3	148,283		(257	)	—	—		—		3	148,283		(257	)
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	5	337,060		(1,521	)	1	297		(4	)	6	337,357		(1,525	)
State and municipal securities.	1	32		(3	)	1	883		(17	)	2	915		(20	)
Equity securities	2	2,367		(388	)	—	—		—		2	2,367		(388	)
Total	16	$	837,112	(2,788	)	2	$	1,180	(21	)	18	$	838,292	(2,809	)

The amortized cost and fair value by contractual maturity of investment securities available for sale at June 30, 2012 are shown below. The expected life of mortgage-backed securities or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, mortgage-backed securities and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.



	Distribution of Maturities at June 30, 2012
(in thousands)	Within One Year		1 to 5 Years	5 to 10 Years	More Than 10 Years	No Stated Maturity	Total
Amortized Cost
U.S. Treasury securities	$	200	107	—	—	—	307
U.S. Government agency securities	—		272	29,969	6,997	—	37,238
Securities issued by U.S. Government sponsored enterprises	37,444		521,862	—	—	—	559,306
Mortgage-backed securities issued by U.S. Government agencies	—		198	182	272,433	—	272,813
Mortgage-backed securities issued by U.S. Government sponsored enterprises	643		14,551	1,089,339	901,865	—	2,006,398
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		53	—	602,056	—	602,109
State and municipal securities	2,800		8,739	4,526	4,313	—	20,378
Other investments	1,000		—	—	4,000	—	5,000
Securities with no stated maturity (equity securities)	—		—	—	—	3,647	3,647
Total	$	42,087	545,782	1,124,016	1,791,664	3,647	3,507,196
Fair Value
U.S. Treasury securities	$	200	107	—	—	—	307
U.S. Government agency securities	—		272	31,504	7,904	—	39,680
Securities issued by U.S. Government sponsored enterprises	39,206		525,320	—	—	—	564,526
Mortgage-backed securities issued by U.S. Government agencies	—		208	195	279,642	—	280,045
Mortgage-backed securities issued by U.S. Government sponsored enterprises	676		15,180	1,100,429	940,342	—	2,056,627
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		53	—	600,113	—	600,166
State and municipal securities	2,833		9,025	4,665	4,574	—	21,097
Other investments	1,002		—	—	3,210	—	4,212
Securities with no stated maturity (equity securities)	—		—	—	—	3,686	3,686
Total	$	43,917	550,165	1,136,793	1,835,785	3,686	3,570,346

Proceeds from sales, gross gains, and gross losses on sales of securities available for sale during the six and three months ended June 30, 2012 and 2011 are presented below.



	Six Months Ended June 30,					Three Months Ended June 30,
(in thousands)	2012			2011		2012	2011
Proceeds	$	733,621		17,044		258,846	9,001
Gross realized gains	24,703			1,801		4,170	381
Gross realized losses	(450		)	(4	)	—	(4	)
Investment securities gains, net	$	24,253		1,797		4,170	377