Note 5 - 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, 2013 and 2012 are summarized below.



	December 31, 2013
(in thousands)	Amortized Cost ⁽¹⁾		Gross Unrealized Gains	Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	17,791	—	—		17,791
U.S. Government agency securities	33,480		1,161	—		34,641
Securities issued by U.S. Government sponsored enterprises	112,305		1,440	—		113,745
Mortgage-backed securities issued by U.S. Government agencies	196,521		2,257	(3,661	)	195,117
Mortgage-backed securities issued by U.S. Government sponsored enterprises	2,443,282		9,718	(31,640	)	2,421,360
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	406,717		698	(8,875	)	398,540
State and municipal securities	6,723		168	(2	)	6,889
Equity securities	3,856		3,728	—		7,584
Other investments	4,074		—	(383	)	3,691
Total investment securities available for sale	$	3,224,749	19,170	(44,561	)	3,199,358

	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 agencies or 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 investment securities available for sale	$	2,931,630	54,116	(4,634	)	2,981,112


⁽¹⁾	Amortized cost is adjusted for other-than-temporary impairment charges in 2013 and 2012, which have been recognized in the consolidated statements of income in the applicable year, and were considered inconsequential.

At December 31, 2013 and 2012, investment securities with a carrying value of $2.38 billion and $2.28 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, 2013 and 2012 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 investment securities in an unrealized loss position 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 OTTI. These factors include the length of time the security has been in a loss position, the extent that the fair value is below amortized cost, and the credit standing of the issuer. As of December 31, 2013 there were 80 securities in a loss position for less than twelve months and 5 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, 2013 and December 31, 2012 are presented below.



	December 31, 2013
	Less than 12 Months			12 Months or Longer		Total
(in thousands)	Fair Value		Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross 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	121,607		3,363	2,951	298	124,558	3,661
Mortgage-backed securities issued by U.S. Government sponsored enterprises	1,885,521		31,640	—	—	1,885,521	31,640
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	282,898		8,875	—	—	282,898	8,875
State and municipal securities	—		—	40	2	40	2
Equity securities	—		—	—	—	—	—
Other investments	1,969		105	1,722	278	3,691	383
Total	$	2,291,995	43,983	4,713	578	2,296,708	44,561

	December 31, 2012
	Less than 12 Months			12 Months or Longer		Total
(in thousands)	Fair Value		Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross 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 agencies or 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

The amortized cost and fair value by contractual maturity of investment securities available for sale at December 31, 2013 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 December 31, 2013
(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	$	17,791	—	—	—	—	17,791
U.S. Government agency securities	114		9,157	24,209	—	—	33,480
Securities issued by U.S. Government sponsored enterprises	30,109		82,196	—	—	—	112,305
Mortgage-backed securities issued by U.S. Government agencies	40		1	729	195,751	—	196,521
Mortgage-backed securities issued by U.S. Government sponsored enterprises	782		3,450	2,024,280	414,770	—	2,443,282
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	84	406,633	—	406,717
State and municipal securities	1,054		2,828	—	2,841	—	6,723
Equity securities	—		—	—	—	3,856	3,856
Other investments	—		—	—	2,000	2,074	4,074
Total amortized cost	$	49,890	97,632	2,049,302	1,021,995	5,930	3,224,749
Fair Value
U.S. Treasury securities	$	17,791	—	—	—	—	17,791
U.S. Government agency securities	114		9,501	25,026	—	—	34,641
Securities issued by U.S. Government sponsored enterprises	30,642		83,103	—	—	—	113,745
Mortgage-backed securities issued by U.S. Government agencies	41		1	753	194,322	—	195,117
Mortgage-backed securities issued by U.S. Government sponsored enterprises	829		3,684	2,000,297	416,550	—	2,421,360
Collateralized mortgage obligations issued by U.S. Government agencies or sponsored enterprises	—		—	84	398,456	—	398,540
State and municipal securities	1,066		2,886	—	2,937	—	6,889
Equity securities	—		—	—	—	7,584	7,584
Other investments	—		—	—	1,722	1,969	3,691
Total fair value	$	50,483	99,175	2,026,160	1,013,987	9,553	3,199,358

Proceeds from sales, gross gains, and gross losses on sales of securities available for sale for the years ended December 31, 2013, 2012 and 2011 are presented below. Other-than-temporary impairment charges of $264 thousand, $450 thousand, and $1.6 million respectively, are included in gross realized losses for the years ended December 31, 2013, 2012 and 2011. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.



(in thousands)	2013			2012			2011
Proceeds from sales of investment securities available for sale	$	407,718		1,139,558			2,002,922
Gross realized gains	$	3,822		$	39,592		$	76,654
Gross realized losses	(877		)	(450		)	(1,647		)
Investment securities gains, net	$	2,945		39,142			75,007