Investment Securities Available for Sale

The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities available for sale at December 31, 2012 and 2011 are summarized below.



	December 31, 2012
(in thousands)	Amortized Cost ⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	356	—	—		356
U.S. Government agency securities	35,791		2,255	—		38,046
Securities issued by U.S. Government sponsored enterprises	289,523		3,787	—		293,310
Mortgage-backed securities issued by U.S. Government agencies	238,381		7,220	(8	)	245,593
Mortgage-backed securities issued by U.S. Government sponsored enterprises	1,832,076		37,646	(2,229	)	1,867,493
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	513,637		2,534	(1,682	)	514,489
State and municipal securities	15,218		582	(2	)	15,798
Equity securities	3,648		92	—		3,740
Other investments	3,000		—	(713	)	2,287
Total	$	2,931,630	54,116	(4,634	)	2,981,112

	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 in the consolidated statements of operations in the applicable year, and were considered inconsequential.

At December 31, 2012 and 2011, investment securities with a carrying value of $2.28 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 December 31, 2012 and 2011 for other-than-temporary impairment and does not consider any securities in an unrealized loss position to be other-than-temporarily impaired. Synovus does not intend to sell any of the investment securities prior to the recovery of the unrealized loss, which may not be until maturity, and it is not more likely than not that Synovus will be required to sell any of the securities in an unrealized loss position. The unrealized losses are related 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. As of December 31, 2012 there are 9 securities in a loss position for less than twelve months and 6 securities in a loss position for more than 12 months.

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 December 31, 2012 are presented below.



	December 31, 2012
	Less than 12 Months				12 Months or Longer			Total Fair Value
(in thousands)	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
U.S. Treasury securities	$	—	—		—	—		—	—
U.S. Government agency securities	—		—		—	—		—	—
Securities issued by U.S. Government sponsored enterprises	—		—		—	—		—	—
Mortgage-backed securities issued by U.S. Government agencies	3,314		(8	)	2	—		3,316	(8	)
Mortgage-backed securities issued by U.S. Government sponsored enterprises	286,452		(2,229	)	—	—		286,452	(2,229	)
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	42,036		(325	)	168,906	(1,357	)	210,942	(1,682	)
State and municipal securities	—		—		35	(2	)	35	(2	)
Equity securities	—		—		—	—		—	—
Other investments	2,287		(713	)	—	—		2,287	(713	)
Total	$	334,089	(3,275	)	168,943	(1,359	)	503,032	(4,634	)

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

The amortized cost and fair value by contractual maturity of investment securities available for sale at December 31, 2012 are shown below. The expected life of mortgage-backed securities 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, which are not due at a single maturity date, have been classified based on the final contractual payment date.



	Distribution of Maturities at December 31, 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	$	356	—	—	—	—	356
U.S. Government agency securities	—		1,265	32,498	2,028	—	35,791
Securities issued by U.S. Government sponsored enterprises	4,499		285,024	—	—	—	289,523
Mortgage-backed securities issued by U.S. Government agencies	3		271	1	238,106	—	238,381
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,077		9,922	1,432,263	387,814	—	1,832,076
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		—	532	513,105	—	513,637
State and municipal securities	3,273		6,436	1,965	3,544	—	15,218
Equity securities	—		—	—	—	3,648	3,648
Other investments	—		—	—	3,000	—	3,000
Total	$	10,208	302,918	1,467,259	1,147,597	3,648	2,931,630
Fair Value
U.S. Treasury securities	$	356	—	—	—	—	356
U.S. Government agency securities	—		1,433	34,185	2,428	—	38,046
Securities issued by U.S. Government sponsored enterprises	4,582		288,728	—	—	—	293,310
Mortgage-backed securities issued by U.S. Government agencies	3		286	1	245,303	—	245,593
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,158		10,532	1,443,976	410,827	—	1,867,493
Collateralized mortgage obligations issued by U.S. Government sponsored enterprises	—		—	541	513,948	—	514,489
State and municipal securities	3,308		6,661	2,051	3,778	—	15,798
Equity securities	—		—	—	—	3,740	3,740
Other investments	—		—	—	2,287	—	2,287
Total	$	10,407	307,640	1,480,754	1,178,571	3,740	2,981,112

Proceeds from sales, gross gains, and gross losses on sales of securities available for sale at December 31, 2012, 2011 and 2010 are presented below. Other-than-temporary impairment charges of $0.5 million, $1.6 million, and $2.2 million respectively, are included in gross realized losses for the years ended December 31, 2012, 2011 and 2010. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.



(in thousands)	2012			2011		2010
Proceeds from sales of investment securities available for sale	$	1,139,558		2,002,922		20,704
Gross realized gains	39,592			76,654		927
Gross realized losses	(450		)	(1,647	)	(2,198	)
Investment securities gains (losses), net	$	39,142		75,007		(1,271	)