SECURITIES

The amortized cost and fair value of securities are as follows:

Securities Available For Sale:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2012
U.S. Treasury and other U.S. government agencies and corporations	$	366,075	$	406	$	(632	)	$	365,849
Residential mortgage-backed securities:
Agency mortgage-backed securities		337,045		5,675		(66	)		342,654
Agency collateralized mortgage obligations		299,109		3,221		—			302,330
Non-agency collateralized mortgage obligations		3,866		1		(25	)		3,842
States of the U.S. and political subdivisions		33,359		1,532		—			34,891
Collateralized debt obligations		36,161		418		(13,774	)		22,805
Other debt securities		23,853		567		(1,398	)		23,022

Total debt securities		1,099,468		11,820		(15,895	)		1,095,393
Equity securities		2,055		369		(16	)		2,408

	$	1,101,523	$	12,189	$	(15,911	)	$	1,097,801


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2011
U.S. Treasury and other U.S. government agencies and corporations	$	231,187	$	642	$	—		$	231,829
Residential mortgage-backed securities:
Agency mortgage-backed securities		166,758		4,853		—			171,611
Agency collateralized mortgage obligations		181,493		2,236		—			183,729
Non-agency collateralized mortgage obligations		31		—		(1	)		30
States of the U.S. and political subdivisions		38,509		1,841		—			40,350
Collateralized debt obligations		19,224		—		(13,226	)		5,998
Other debt securities		6,863		—		(1,666	)		5,197

Total debt securities		644,065		9,572		(14,893	)		638,744
Equity securities		1,593		257		(23	)		1,827

	$	645,658	$	9,829	$	(14,916	)	$	640,571

Securities Held To Maturity:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2012
U.S. Treasury and other U.S. government agencies and corporations	$	4,441	$	340	$	—		$	4,781
Residential mortgage-backed securities:
Agency mortgage-backed securities		888,484		29,006		(471	)		917,019
Agency collateralized mortgage obligations		115,104		731		(88	)		115,747
Non-agency collateralized mortgage obligations		19,652		107		(1,313	)		18,446
States of the U.S. and political subdivisions		147,990		6,236		(81	)		154,145
Collateralized debt obligations		1,563		—		(176	)		1,387
Other debt securities		1,324		—		(23	)		1,301

	$	1,178,558	$	36,420	$	(2,152	)	$	1,212,826


December 31, 2011
U.S. Treasury and other U.S. government agencies and corporations	$	4,523	$	360	$	—		$	4,883
Residential mortgage-backed securities:
Agency mortgage-backed securities		683,100		28,722		—			711,822
Agency collateralized mortgage obligations		54,319		573		(11	)		54,881
Non-agency collateralized mortgage obligations		24,348		143		(1,373	)		23,118
States of the U.S. and political subdivisions		147,748		6,877		—			154,625
Collateralized debt obligations		1,592		—		(314	)		1,278
Other debt securities		1,582		25		(181	)		1,426

	$	917,212	$	36,700	$	(1,879	)	$	952,033

The Corporation classifies securities as trading securities when management intends to sell such securities in the near term. Such securities are carried at fair value, with unrealized gains (losses) reflected through the consolidated statement of income. The Corporation classified certain securities acquired in conjunction with the Parkvale and CBI acquisitions as trading securities. The Corporation both acquired and sold these trading securities during the quarters in which each of these acquisitions occurred. As of March 31, 2012 and December 31, 2011, the Corporation did not hold any trading securities.

Gross gains and gross losses were realized on securities as follows:


	Three Months Ended
	March 31,
	2012			2011
Gross gains	$	349		$	250
Gross losses		(241	)		(196	)

	$	108		$	54

As of March 31, 2012, the amortized cost and fair value of securities, by contractual maturities, were as follows:


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	27,164	$	27,213	$	7,731	$	7,826
Due from one to five years		346,262		346,200		12,313		12,873
Due from five to ten years		21,405		22,401		43,678		45,470
Due after ten years		64,617		50,753		91,596		95,445

		459,448		446,567		155,318		161,614
Residential mortgage-backed securities:
Agency mortgage-backed securities		337,045		342,654		888,484		917,019
Agency collateralized mortgage obligations		299,109		302,330		115,104		115,747
Non-agency collateralized mortgage obligations		3,866		3,842		19,652		18,446
Equity securities		2,055		2,408		—		—

	$	1,101,523	$	1,097,801	$	1,178,558	$	1,212,826

Maturities may differ from contractual terms because borrowers may have the right to call or prepay obligations with or without penalties. Periodic payments are received on mortgage-backed securities based on the payment patterns of the underlying collateral.

At March 31, 2012 and December 31, 2011, securities with a carrying value of $587,865 and $547,727, respectively, were pledged to secure public deposits, trust deposits and for other purposes as required by law. Securities with a carrying value of $747,289 and $680,212 at March 31, 2012 and December 31, 2011, respectively, were pledged as collateral for short-term borrowings.

Following are summaries of the fair values and unrealized losses of securities, segregated by length of impairment:

Securities available for sale:


	Less than 12 Months					Greater than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2012
U.S. Treasury and other U.S. government agencies and corporations	$	169,327	$	(632	)	$	—	$	—		$	169,327	$	(632	)
Residential mortgage-backed securities:
Agency mortgage-backed securities		76,778		(66	)		—		—			76,778		(66	)
Non-agency collateralized mortgage obligations		3,812		(25	)		—		—			3,812		(25	)
Collateralized debt obligations		8,453		(544	)		6,042		(13,230	)		14,495		(13,774	)
Other debt securities		—		—			5,467		(1,398	)		5,467		(1,398	)
Equity securities		729		(16	)		—		—			729		(16	)

	$	259,099	$	(1,283	)	$	11,509	$	(14,628	)	$	270,608	$	(15,911	)


	Less than 12 Months					Greater than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2011
Residential mortgage-backed securities:
Non-agency collateralized mortgage obligations	$	30	$	(1	)	$	—	$	—		$	30	$	(1	)
Collateralized debt obligations		—		—			5,998		(13,226	)		5,998		(13,226	)
Other debt securities		—		—			5,197		(1,666	)		5,197		(1,666	)
Equity securities		100		(9	)		659		(14	)		759		(23	)

	$	130	$	(10	)	$	11,854	$	(14,906	)	$	11,984	$	(14,916	)

Securities held to maturity:
	Less than 12 Months					Greater than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2012
Residential mortgage-backed securities:
Agency mortgage-backed securities	$	143,873	$	(471	)	$	—	$	—		$	143,873	$	(471	)
Agency collateralized mortgage obligations		19,943		(88	)		—		—			19,943		(88	)
Non-agency collateralized mortgage obligations		5,202		(114	)		4,322		(1,199	)		9,524		(1,313	)
States of the U.S. and political subdivisions		4,455		(81	)		—		—			4,455		(81	)
Collateralized debt obligations		—		—			1,387		(176	)		1,387		(176	)
Other debt securities		—		—			1,301		(23	)		1,301		(23	)

	$	173,473	$	(754	)	$	7,010	$	(1,398	)	$	180,483	$	(2,152	)

December 31, 2011
Residential mortgage-backed securities:
Agency collateralized mortgage obligations	$	12,911	$	(11	)	$	—	$	—		$	12,911	$	(11	)
Non-agency collateralized mortgage obligations		5,374		(64	)		4,351		(1,309	)		9,725		(1,373	)
Collateralized debt obligations		—		—			1,278		(314	)		1,278		(314	)
Other debt securities		—		—			1,144		(181	)		1,144		(181	)

	$	18,285	$	(75	)	$	6,773	$	(1,804	)	$	25,058	$	(1,879	)

As of March 31, 2012, securities with unrealized losses for less than 12 months include 10 investments in U.S. Treasury and other U.S. government agencies and corporations, 15 investments in residential mortgage-backed securities (10 investments in agency mortgage-backed securities, 1 investment in an agency collateralized mortgage obligation (CMO) and 4 investments in non-agency CMOs), 3 investments in states of the U.S. and political subdivisions, 8 investments in collateralized debt obligations (CDOs) and 2 investments in equity securities. Securities with unrealized losses of greater than 12 months include 1 investment in a residential mortgage-backed security (non-agency CMO), 13 investments in CDOs, and 5 investments in other debt securities as of March 31, 2012. The Corporation does not intend to sell the debt securities and it is not more likely than not the Corporation will be required to sell the securities before recovery of their amortized cost basis.

The Corporation's unrealized losses on CDOs relate to investments in trust preferred securities (TPS). The Corporation's portfolio of TPS consists of single-issuer and pooled securities. The single-issuer securities are primarily from money-center and large regional banks. The pooled securities consist of securities issued primarily by banks and thrifts, with some of the pools including a limited number of insurance companies. Investments in pooled securities are all in mezzanine tranches except for one investment in a senior tranche, and are secured by over-collateralization or default protection provided by subordinated tranches. The non-credit portion of unrealized losses on investments in TPS is attributable to temporary illiquidity and the uncertainty affecting these markets, as well as changes in interest rates.

Other-Than-Temporary Impairment

The Corporation evaluates its investment securities portfolio for other-than-temporary impairment (OTTI) on a quarterly basis. Impairment is assessed at the individual security level. The Corporation considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis.

When impairment of an equity security is considered to be other-than-temporary, the security is written down to its fair value and an impairment loss is recorded as a loss within non-interest income in the consolidated statement of income. When impairment of a debt security is considered to be other-than-temporary, the amount of the OTTI recorded as a loss within non-interest income and thereby recognized in earnings depends on whether the Corporation intends to sell the security or whether it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis.

If the Corporation intends to sell the debt security or more likely than not will be required to sell the security before recovery of its amortized cost basis, OTTI shall be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value.

If the Corporation does not intend to sell the debt security and it is not more likely than not the Corporation will be required to sell the security before recovery of its amortized cost basis, OTTI shall be separated into the amount representing credit loss and the amount related to all other market factors. The amount related to credit loss shall be recognized in earnings. The amount related to other market factors shall be recognized in other comprehensive income, net of applicable taxes.

The Corporation performs its OTTI evaluation process in a consistent and systematic manner and includes an evaluation of all available evidence. Documentation of the process is as extensive as necessary to support a conclusion as to whether a decline in fair value below cost or amortized cost is temporary or other-than-temporary and includes documentation supporting both observable and unobservable inputs and a rationale for conclusions reached. In making these determinations for pooled TPS, the Corporation consults with third-party advisory firms to provide additional valuation assistance.

This process considers factors such as the severity, length of time and anticipated recovery period of the impairment, recoveries or additional declines in fair value subsequent to the balance sheet date, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions in its industry, and the issuer's financial condition, repayment capacity, capital strength and near-term prospects.

For debt securities, the Corporation also considers the payment structure of the debt security, the likelihood of the issuer being able to make future payments, failure of the issuer of the security to make scheduled interest and principal payments, whether the Corporation has made a decision to sell the security and whether the Corporation's cash or working capital requirements or contractual or regulatory obligations indicate that the debt security will be required to be sold before a forecasted recovery occurs. For equity securities, the Corporation also considers its intent and ability to retain the security for a period of time sufficient to allow for a recovery in fair value. Among the factors that the Corporation considers in determining its intent and ability to retain the security is a review of its capital adequacy, interest rate risk position and liquidity. The assessment of a security's ability to recover any decline in fair value, the ability of the issuer to meet contractual obligations, the Corporation's intent and ability to retain the security, and whether it is more likely than not the Corporation will be required to sell the security before recovery of its amortized cost basis require considerable judgment.

Debt securities with credit ratings below AA at the time of purchase that are repayment-sensitive securities are evaluated using the guidance of ASC 325, Investments - Other. All other securities are required to be evaluated under ASC 320, Investments – Debt Securities.

The Corporation invested in TPS issued by special purpose vehicles (SPVs) which hold pools of collateral consisting of trust preferred and subordinated debt securities issued by banks, bank holding companies, thrifts and insurance companies. The securities issued by the SPVs are generally segregated into several classes known as tranches. Typically, the structure includes senior, mezzanine and equity tranches. The equity tranche represents the first loss position. The Corporation generally holds interests in mezzanine tranches. Interest and principal collected from the collateral held by the SPVs are distributed with a priority that provides the highest level of protection to the senior-most tranches. In order to provide a high level of protection to the senior tranches, cash flows are diverted to higher-level tranches if the principal and interest coverage tests are not met.

The Corporation prices its holdings of TPS using Level 3 inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, and guidance issued by the SEC. In this regard, the Corporation evaluates current available information in estimating the future cash flows of these securities and determines whether there have been favorable or adverse changes in estimated cash flows from the cash flows previously projected. The Corporation considers the structure and term of the pool and the financial condition of the underlying issuers. Specifically, the evaluation incorporates factors such as over-collateralization and interest coverage tests, interest rates and appropriate risk premiums, the timing and amount of interest and principal payments and the allocation of payments to the various tranches. Current estimates of cash flows are based on the most recent trustee reports, announcements of deferrals or defaults, and assumptions regarding expected future default rates, prepayment and recovery rates and other relevant information. In constructing these assumptions, the Corporation considers the following:

•

that current defaults would have no recovery;

•

that some individually analyzed deferrals will cure at rates varying from 10% to 90% after the deferral period ends;

•

recent historical performance metrics, including profitability, capital ratios, loan charge-offs and loan reserve ratios, for the underlying institutions that would indicate a higher probability of default by the institution;

•

that institutions identified as possessing a higher probability of default would recover at a rate of 10% for banks and 15% for insurance companies;

•

that financial performance of the financial sector continues to be affected by the economic environment resulting in an expectation of additional deferrals and defaults in the future;

•

whether the security is currently deferring interest; and

•

the external rating of the security and recent changes to its external rating.

The primary evidence utilized by the Corporation is the level of current deferrals and defaults, the level of excess subordination that allows for receipt of full principal and interest, the credit rating for each security and the likelihood that future deferrals and defaults will occur at a level that will fully erode the excess subordination based on an assessment of the underlying collateral. The Corporation combines the results of these factors considered in estimating the future cash flows of these securities to determine whether there has been an adverse change in estimated cash flows from the cash flows previously projected.

The Corporation's portfolio of trust preferred CDOs consists of 29 pooled issues and six single issue securities. Two of the pooled issues are senior tranches; the remaining 27 are mezzanine tranches. At March 31, 2012, the 29 pooled TPS had an estimated fair value of $24,192 while the single-issuer TPS had an estimated fair value of $7,786. The Corporation has concluded from the analysis performed at March 31, 2012 that it is probable that the Corporation will collect all contractual principal and interest payments on all of its single-issuer and pooled TPS sufficient to recover the amortized cost basis of the securities.

The Corporation did not recognize any impairment losses on securities for the three months ended March 31, 2012 and 2011.

At March 31, 2012, nine of the 12 pooled TPS on which OTTI has been previously recognized were classified as non-performing investments. The other three of the 12 investments on which OTTI was taken in prior years have returned to performing status due to improvements in expected cash flows with income of $133 accreted beginning in the first quarter of 2012.

The following table presents a summary of the cumulative credit-related OTTI charges recognized as components of earnings for securities for which a portion of an OTTI is recognized in other comprehensive income:


	March 31, 2012			December 31, 2011
Beginning balance of the amount related to credit loss for which a portion of OTTI was recognized in other comprehensive income	$	(18,398	)	$	(18,332	)
Additions related to credit loss for securities with previously recognized OTTI		—			(37	)
Additions related to credit loss for securities with initial OTTI		—			(29	)

Ending balance of the amount related to credit loss for which a portion of OTTI was recognized in other comprehensive income	$	(18,398	)	$	(18,398	)

TPS continue to experience price volatility as the secondary market for such securities remains limited. Write-downs, when required, are based on an individual security's credit performance and its ability to make its contractual principal and interest payments. Should credit quality deteriorate to a greater extent than projected, it is possible that additional write-downs may be required. The Corporation monitors actual deferrals and defaults as well as expected future deferrals and defaults to determine if there is a high probability for expected losses and contractual shortfalls of interest or principal, which could warrant further impairment. The Corporation evaluates its entire TPS portfolio each quarter to determine if additional write-downs are warranted.

The following table provides information relating to the Corporation's TPS as of March 31, 2012:

	$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)
Deal Name	Class	Current Par Value		Amortized Cost		Fair Value		Unrealized Loss			Lowest Credit Ratings	Number of Issuers Currently Performing		Actual Defaults (as a percent of original collateral)		Actual Deferrals (as a percent of original collateral)		Projected Recovery Rates on Current Deferrals (1)		Expected Defaults (%) (2)		Excess Subordination (as a percent of current collateral) (3)
Pooled TPS:
P1	C1	$	5,500	$	2,312	$	958	$	(1,354	)	C		43		21		13		41		11		0.00
P2	C1		4,889		2,794		785		(2,009	)	C		44		16		14		30		12		0.00
P3	C1		5,561		4,218		1,145		(3,073	)	C		46		13		10		33		13		0.00
P4	C1		3,994		2,891		822		(2,069	)	C		51		15		9		38		13		0.00
P5	MEZ		474		297		215		(82	)	C		14		19		7		75		10		0.00
P6	MEZ		1,909		999		571		(428	)	C		14		21		15		39		11		0.00
P7	B3		2,000		726		319		(407	)	C		19		29		13		47		10		0.00
P8	B1		3,028		2,386		682		(1,704	)	C		49		14		21		41		12		0.00
P9	C		5,048		756		238		(518	)	C		33		14		31		42		11		0.00
P10	C		507		461		63		(398	)	C		47		13		19		31		11		0.00
P11	C		2,010		788		112		(676	)	C		39		16		17		42		13		0.00
P12	A4L		2,000		645		132		(513	)	C		22		16		26		53		12		0.00

Total OTTI			36,920		19,273		6,042		(13,231	)			421		17		16		40		12

P13	SNR		1,506		1,564		1,387		(177	)	BBB		11		15		14		43		10		77.27
P14	C1		5,219		866		909		43		C		43		21		13		41		11		0.00
P15	A2A		5,000		1,995		1,948		(47	)	CCC		44		16		14		30		12		43.23
P16	C1		4,781		1,064		985		(79	)	C		46		13		10		33		13		0.00
P17	C1		5,260		1,010		1,083		73		C		51		15		9		38		13		0.00
P18	C1		5,190		837		706		(131	)	C		56		14		18		33		14		0.00
P19	C1		3,206		320		173		(147	)	C		42		19		15		37		14		0.00
P20	C		3,339		504		618		114		C		35		15		19		33		15		0.00
P21	B		2,069		559		549		(10	)	C		34		12		25		33		16		20.04
P22	B2		5,000		2,145		2,176		31		CCC		21		0		8		10		10		41.76
P23	MEZ		1,894		567		566		(1	)	C		14		21		15		39		11		0.00
P24	B2		1,000		268		270		2		C		47		13		15		27		14		3.30
P25	B		4,008		895		933		38		C		39		16		17		42		13		10.49
P26	SNR		4,344		2,534		2,511		(23	)	CCC		50		21		7		40		12		48.61
P27	B		5,000		1,195		1,202		7		C		17		16		8		32		11		0.00
P28	C1		5,531		1,120		1,015		(105	)	C		27		15		13		41		10		0.00
P29	C1		5,606		1,008		1,119		111		C		26		16		13		48		11		0.00

Total Not OTTI			67,953		18,451		18,150		(301	)			603		15		13		35		13

Total Pooled TPS		$	104,873	$	37,724	$	24,192	$	(13,532	)			1,024		16		14		38		12

Following is information about the Corporation's PCI loans:

	$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)		$(13,532)	$(13,532)	$(13,532)	$(13,532)	$(13,532)	$(13,532)
Deal Name	Class	Current Par Value		Amortized Cost		Fair Value		Unrealized Loss			Lowest Credit Ratings	Number of Issuers Currently Performing		Actual Defaults (as a percent of original collateral)	Actual Deferrals (as a percent of original collateral)	Projected Recovery Rates on Current Deferrals (1)	Expected Defaults (%) (2)	Excess Subordination (as a percent of current collateral) (3)
Single Issuer TPS:
S1		$	2,000	$	1,950	$	1,400	$	(550	)	BB		1
S2			2,000		1,916		1,522		(394	)	BBB		1
S3			1,000		954		1,018		64		BB-		1
S4			2,000		2,000		1,840		(160	)	BB		1
S5			1,000		999		705		(294	)	BB		1
S6			1,300		1,324		1,301		(23	)	BB		1

Total Single Issuer TPS		$	9,300	$	9,143	$	7,786	$	(1,357	)			6

Total TPS		$	114,173	$	46,867	$	31,978	$	(14,889	)			1,030

(1)	Some current deferrals will cure at rates varying from 10% to 90% after five years.

(2)	Expected future defaults as a percent of remaining performing collateral.

(3)	Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment.

States of the U.S. and Political Subdivisions

The Corporation's municipal bond portfolio of $182,881 as of March 31, 2012 is highly rated with an average rating of AA and 99.8% of the portfolio rated A or better. General obligation bonds comprise 99.5% of the portfolio. Geographically, the municipal bonds support the Corporation's footprint as 76.8% of the securities are from municipalities located throughout Pennsylvania. The average holding size of the securities in the municipal bond portfolio is $1,010. This portfolio is also supported by underlying insurance as 77.4% of the securities have credit support.

Non-Agency CMOs

The Corporation purchased $161,151 of non-agency CMOs from 2003 through 2005. At the time of purchase, these securities were all rated AAA, with an original average loan-to-value (LTV) ratio of 66.1% and original credit score of 724. At origination, the credit support, or the amount of loss the collateral pool could absorb before the AAA securities would incur a credit loss, ranged from 2.0% to 7.0%. Since the time of these original purchases, all of which are classified as held to maturity, two holdings have been sold and one holding has paid off. The Corporation acquired an additional $42,870 of non-agency CMOs from acquisitions, retaining $4,298 and selling $38,572. These acquired securities are classified as available for sale. Non-agency CMOs have a book value of $23,518 at March 31, 2012. Paydowns during the first three months of 2012 amounted to $2,704, an annualized paydown rate of 37.7%. The credit support range at March 31, 2012 was 4.0% to 20.5%, due to paydowns, continued good credit performance and the sale of one non-agency CMO having a book value of $2,848 during the first quarter of 2012. National delinquencies, an early warning sign of potential default, have been increasing for the past five years. The slight upward trend of the rate of delinquencies throughout 2011 has continued through the first quarter of 2012. All non-agency CMO holdings are current with regards to principal and interest.

The rating agencies monitor the underlying collateral performance of these non-agency CMOs for delinquencies, foreclosures and defaults. They also factor in trends in bankruptcies and housing values to ultimately arrive at an expected loss for a given piece of defaulted collateral. Based on deteriorating performance of the collateral, many of these types of securities have been downgraded by the rating agencies. For the Corporation's portfolio, six of the eleven non-agency CMOs have been downgraded since the original purchase date.

The Corporation determines its credit-related losses by running scenario analysis on the underlying collateral. This analysis applies default assumptions to delinquencies already in the pipeline, projects future defaults based in part on the historical trends for the collateral, applies a rate of severity and estimates prepayment rates. Because of the limited historical trends for the collateral, multiple default scenarios were analyzed including scenarios that significantly elevate defaults over the next 12—18 months. Based on the results of the analysis, the Corporation's management has concluded that there are currently no credit-related losses in its non-agency CMO portfolio. The one non-agency CMO that incurred a credit-related loss in 2011 was sold in March 2012 as a result of further credit deterioration and resulted in a net loss on sale of $226, which was recognized in first quarter 2012 earnings.

The following table provides information relating to the Corporation's non-agency CMOs as of March 31, 2012:


													Subordination Data
					Credit Rating				Credit Support %				Delinquency %												%		Original		Original
Security	Original Year		Book Value (1)		S&P		Moody's		Original		Current		. 30 Day		60 Day		90 Day		% Foreclosure		% OREO		% Bankruptcy		Total Delinquency		% LTV		Credit Score
1		2003	$	2,368		AAA		n/a		2.5		6.3		1.1		0.4		0.8		0.9		0.0		1.6		4.9		51.3		736
2		2003		1,759		AAA		n/a		4.3		17.0		2.2		1.2		3.6		3.3		0.7		1.3		12.2		55.3		709
3		2003		1,075		AAA		n/a		2.0		7.0		0.5		0.6		0.3		3.6		0.0		0.5		5.5		46.4		740
4		2003		1,081		AAA		n/a		2.7		19.3		2.3		0.0		0.2		3.1		0.6		2.2		8.4		48.9		n/a
5		2003		3,838		AAA		n/a		2.5		5.0		1.0		0.2		0.9		1.6		0.0		0.6		4.4		50.5		731
6		2004		3,269		AAA		Baa2		7.0		20.5		2.2		0.8		2.7		10.0		0.7		0.9		17.3		54.6		690
7		2004		2,087		AA+		n/a		5.3		10.4		0.3		0.0		3.1		4.0		0.0		1.1		8.5		45.8		732
8		2004		971		n/a		A1		2.5		9.3		1.2		0.0		1.2		5.9		0.0		0.0		8.4		54.6		733
9		2004		1,522		AAA		Baa2		4.4		9.4		1.5		0.9		0.6		2.8		0.4		1.3		7.4		54.5		733
10		2005		5,520		CCC		Caa1		5.1		4.0		4.5		0.8		6.8		11.6		2.0		2.6		28.3		65.1		705

			$	23,490						4.0		9.6																54.7		718

(1)	One acquired available for sale non-agency CMO with a March 31, 2012 book value of $28 is not included in the above table. The bond rating at acquisition was AAA and is now Baa2. This non-agency CMO is current with regards to principal and interest.