Investment Securities (Tables)

9 Months Ended

Sep. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Available For Sale And Held For Maturity Securities [Table Text Block]

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at September 30, 2012 and December 31, 2011 were as follows (in thousands):



September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	174,089	$	1,414	$	(28	)	$	175,475
Obligations of states and political subdivisions	51,327		3,305		(21		)	54,611
Mortgage-backed securities: GSE residential	276,889		8,552		(29		)	285,412
Trust preferred securities	4,974		—		(4,524		)	450
Other securities	9,637		171		(4		)	9,804
Total available-for-sale	$	516,916	$	13,442	$	(4,606	)	$	525,752

December 31, 2011
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	164,812	$	1,294	$	(40	)	$	166,066
Obligations of states and political subdivisions	38,828		2,374		—			41,202
Mortgage-backed securities: GSE residential	254,930		6,940		(37		)	261,833
Trust preferred securities	5,625		—		(4,906		)	719
Other securities	9,561		—		(465		)	9,096
Total available-for-sale	$	473,756	$	10,608	$	(5,448	)	$	478,916
Held-to-maturity:
Obligations of states and political subdivisions	$	51	$	—	$	—		$	51

The trust preferred securities are three trust preferred pooled securities issued by First Tennessee Financial (“FTN”). The unrealized losses of these securities, which have maturities ranging from eighteen years to twenty-six years, are primarily due to their long-term nature, a lack of demand or inactive market for these securities, and concerns regarding the underlying financial institutions that have issued the trust preferred securities. See the heading “Trust Preferred Securities” for further information regarding these securities.

Realized Gains and Losses From Sale of Securities

Realized gains and losses resulting from sales of securities were as follows during the nine months ended September 30, 2012 and 2011 (in thousands):



	September 30, 2012		September 30, 2011
Gross gains	$	933	$	412
Gross losses	—		—

Investments Classified by Contractual Maturity Date

The following table indicates the expected maturities of investment securities classified as available-for-sale and held-to-maturity, presented at fair value, at September 30, 2012 and the weighted average yield for each range of maturities (dollars in thousands):



	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	91,083		$	82,440		$	1,952		$	—		$	175,475
Obligations of state and political subdivisions	826			22,976			29,853			956			54,611
Mortgage-backed securities: GSE residential	10,004			227,349			48,059			—			285,412
Trust preferred securities	—			—			—			450			450
Other securities	—			9,755			—			49			9,804
Total investments	$	101,913		$	342,520		$	79,864		$	1,455		$	525,752
Weighted average yield	2.07		%	2.59		%	2.77		%	3.50		%	2.53		%
Full tax-equivalent yield	2.09		%	2.71		%	3.38		%	3.76		%	2.70		%

The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 34% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at September 30, 2012.

Fair value of investments with sustained gross unrealized losses

The following table presents the aging of gross unrealized losses and fair value by investment category as of September 30, 2012 and December 31, 2011 (in thousands):



	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2012
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	10,971	$	(28	)	$	—	$	—		$	10,971	$	(28	)
Obligations of states and political subdivisions	2,113		(21		)	—		—			2,113		(21		)
Mortgage-backed securities: GSE residential	15,561		(29		)	—		—			15,561		(29		)
Trust preferred securities	—		—			450		(4,524		)	450		(4,524		)
Other securities	—		—			1,843		(4		)	1,843		(4		)
Total	$	28,645	$	(78	)	$	2,293	$	(4,528	)	$	30,938	$	(4,606	)
December 31, 2011
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	19,960	$	(40	)	$	—	$	—		$	19,960	$	(40	)
Obligations of states and political subdivisions	690		—			—		—			690		—
Mortgage-backed securities: GSE residential	15,231		(37		)	—		—			15,231		(37		)
Trust preferred securities	—		—			719		(4,906		)	719		(4,906		)
Other securities	7,190		(372		)	1,907		(93		)	9,096		(465		)
Total	$	43,071	$	(449	)	$	2,626	$	(4,999	)	$	45,696	$	(5,448	)

Trust Preferred Securities [Table Text Block]

Following are the details for each of the three currently impaired trust preferred securities (in thousands):



	Book Value		Market Value		Unrealized Gains (Losses)			Other-than- temporary Impairment Recorded To-date
PreTSL I	$	513	$	209	$	(304	)	$	691
PreTSL II	809		213		(596		)	2,187
PreTSL XXVIII	3,652		28		(3,624		)	1,111
Total	$	4,974	$	450	$	(4,524	)	$	3,989

Credit Losses Recognized on Investments

Credit Losses Recognized on Investments. As described above, some of the Company’s investments in trust preferred securities have experienced fair value deterioration due to credit losses but are not otherwise other-than-temporarily impaired. The following table provides information about those trust preferred securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the nine months ended September 30, 2012 and 2011 (in thousands).



	Accumulated Credit Losses
	September 30, 2012			September 30, 2011
Credit losses on trust preferred securities held
Beginning of period	$	4,116		$	3,230
Additions related to OTTI losses not previously recognized	—			—
Reductions due to sales / (recoveries)	(127		)	—
Reductions due to change in intent or likelihood of sale	—			—
Additions related to increases in previously recognized OTTI losses	—			584
Reductions due to increases in expected cash flows	—			—
End of period	$	3,989		$	3,814

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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