Investment Securities

12 Months Ended

Dec. 31, 2011

Investment Securities

Investment Securities

Note 3.    Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company's investment securities as of December 31, 2011, 2010, and 2009 were as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2011
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	1,220,282	$	11,204	$	(468	)	$	1,231,018
Debt Securities Issued by States and Political Subdivisions		391,276		15,783		-			407,059
Debt Securities Issued by Corporations		97,917		607		(2,137	)		96,387
Mortgage-Backed Securities Issued by Government Agencies		1,618,913		38,066		(1,107	)		1,655,872
U.S. Government-Sponsored Enterprises		58,548		3,001		-			61,549
Total Mortgage-Backed Securities		1,677,461		41,067		(1,107	)		1,717,421
Total	$	3,386,936	$	68,661	$	(3,712	)	$	3,451,885
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	179,474	$	6,704	$	-		$	186,178
Mortgage-Backed Securities Issued by Government Agencies		3,429,038		89,801		(2,918	)		3,515,921
U.S. Government-Sponsored Enterprises		49,284		2,823		-			52,107
Total Mortgage-Backed Securities		3,478,322		92,624		(2,918	)		3,568,028
Total	$	3,657,796	$	99,328	$	(2,918	)	$	3,754,206
December 31, 2010
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	536,770	$	19,131	$	(45	)	$	555,856
Debt Securities Issued by States and Political Subdivisions		113,715		1,477		(1,583	)		113,609
Debt Securities Issued by U.S. Government-Sponsored Enterprises		500		5		-			505
Mortgage-Backed Securities Issued by Government Agencies		5,696,907		84,008		(30,887	)		5,750,028
U.S. Government-Sponsored Enterprises		109,259		4,617		-			113,876
Total Mortgage-Backed Securities		5,806,166		88,625		(30,887	)		5,863,904
Total	$	6,457,151	$	109,238	$	(32,515	)	$	6,533,874
Held-to-Maturity:
Mortgage-Backed Securities Issued by Government Agencies	$	47,368	$	2,959	$	-		$	50,327
U.S. Government-Sponsored Enterprises		79,881		3,820		-			83,701
Total	$	127,249	$	6,779	$	-		$	134,028
December 31, 2009
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	711,223	$	11,248	$	(1,679	)	$	720,792
Debt Securities Issued by States and Political Subdivisions		52,742		1,391		(17	)		54,116
Debt Securities Issued by U.S. Government-Sponsored Enterprises		751		41		-			792
Mortgage-Backed Securities Issued by Government Agencies		4,015,816		26,900		(20,029	)		4,022,687
U.S. Government-Sponsored Enterprises		509,225		23,276		(54	)		532,447
Total Mortgage-Backed Securities		4,525,041		50,176		(20,083	)		4,555,134
Total	$	5,289,757	$	62,856	$	(21,779	)	$	5,330,834
Held-to-Maturity:
Mortgage-Backed Securities Issued by Government Agencies	$	59,542	$	1,879	$	-		$	61,421
U.S. Government-Sponsored Enterprises		121,476		3,771		-			125,247
Total	$	181,018	$	5,650	$	-		$	186,668

During the year ended December 31, 2011, the Company reclassified at fair value approximately $3.2 billion in available-for-sale investment securities to the held-to-maturity category. The related unrealized after-tax gains of approximately $27.9 million remained in accumulated other comprehensive income to be amortized over the estimated remaining life of the securities as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount on the transferred securities. No gains or losses were recognized at the time of reclassification. Management considers the held-to-maturity classification of these investment securities to be appropriate as the Company has the positive intent and ability to hold these securities to maturity.

The table below presents an analysis of the contractual maturities of the Company's investment securities as of December 31, 2011. Mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

(dollars in thousands)	Amortized Cost		Fair Value
Available-for-Sale:
Due in One Year or Less	$	352,504	$	353,696
Due After One Year Through Five Years		610,737		617,966
Due After Five Years Through Ten Years		168,304		175,800
Due After Ten Years		577,930		587,002
		1,709,475		1,734,464
Mortgage-Backed Securities Issued by Government Agencies		1,618,913		1,655,872
U.S. Government-Sponsored Enterprises		58,548		61,549
Total Mortgage-Backed Securities		1,677,461		1,717,421
Total	$	3,386,936	$	3,451,885
Held-to-Maturity:
Due After One Year Through Five Years	$	179,474	$	186,178
Mortgage-Backed Securities Issued by Government Agencies		3,429,038		3,515,921
U.S. Government-Sponsored Enterprises		49,284		52,107
Total Mortgage-Backed Securities		3,478,322		3,568,028
Total	$	3,657,796	$	3,754,206

Investment securities with carrying values of $3.6 billion, $3.2 billion, and $2.7 billion as of December 31, 2011, 2010, and 2009, respectively, were pledged to secure deposits of governmental entities and securities sold under agreements to repurchase. As of December 31, 2011, 2010, and 2009, the Company did not pledge any investment securities where the secured party had the right to sell or repledge the collateral.

Gross gains and losses from the sales of investment securities for the years ended December 31, 2011, 2010, and 2009 were as follows:

(dollars in thousands)	2011			2010			2009
Gross Gains on Sales of Investment Securities	$	10,874		$	42,867		$	37,541
Gross Losses on Sales of Investment Securities		(4,508	)		(19	)		(11,771	)
Net Gains on Sales of Investment Securities	$	6,366		$	42,848		$	25,770

The Company's sales of investment securities for the year ended December 31, 2011 were from our available-for-sale portfolio due to management's ongoing evaluation of the portfolio in response to established asset/liability management objectives.

The Company's investment securities in an unrealized loss position, segregated by continuous length of impairment, were as follows:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
December 31, 2011
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	127,644	$	(464	)	$	920	$	(4	)	$	128,564	$	(468	)
Debt Securities Issued by Corporations		38,059		(2,137	)		-		-			38,059		(2,137	)
Mortgage-Backed Securities Issued by Government Agencies		727,726		(3,751	)		34,824		(274	)		762,550		(4,025	)
Total	$	893,429	$	(6,352	)	$	35,744	$	(278	)	$	929,173	$	(6,630	)
December 31, 2010
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	1,366	$	(36	)	$	1,204	$	(9	)	$	2,570	$	(45	)
Debt Securities Issued by States and Political Subdivisions		67,754		(1,583	)		-		-			67,754		(1,583	)
Mortgage-Backed Securities Issued by Government Agencies		1,662,897		(30,887	)		-		-			1,662,897		(30,887	)
Total	$	1,732,017	$	(32,506	)	$	1,204	$	(9	)	$	1,733,221	$	(32,515	)

The Company does not believe that the investment securities that were in an unrealized loss position as of December 31, 2011, which was comprised of 80 securities, represent an other-than-temporary impairment. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. As of December 31, 2011, the gross unrealized losses reported for mortgage-backed securities were related to investment securities issued by the Government National Mortgage Association. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost bases, which may be at maturity.

Substantially all of the Company's interest income on investment securities for the years ended December 31, 2011, 2010, and 2009, was comprised of taxable interest income. Income tax expense related to the Company's net realized gains on the sales of investment securities was $2.5 million, $16.7 million, and $10.1 million for the years ended December 31, 2011, 2010, and 2009, respectively. Net unrealized gains on the Company's available-for-sale investment securities, net of tax, were $39.4 million, $46.5 million, and $26.3 million as of December 31, 2011, 2010, and 2009, respectively. Net unrealized gains on the Company's held-to-maturity investment securities, net of tax, were $23.5 million as of December 31, 2011 and were related to the transfers of securities from the available-for-sale portfolio. These net unrealized gains, net of tax, were recorded as a component of accumulated other comprehensive income.