AVAILABLE-FOR-SALE SECURITIES

12 Months Ended

Dec. 31, 2012

AVAILABLE-FOR-SALE SECURITIES

AVAILABLE-FOR-SALE SECURITIES

(4) AVAILABLE-FOR-SALE SECURITIES

A comparison of amortized cost and estimated fair values of available-for-sale securities as of December 31, 2012 and 2011 follows:

	2012
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
U.S. Government agencies	$	1,380,979	$	21,081	$	64	$	1,401,996
Government agency issued residential  mortgage-backed securities		358,677		8,457		259		366,875
Government agency issued commercial  mortgage-backed securities		87,314		4,266		135		91,445
Obligations of states and political subdivisions		531,940		34,049		116		565,873
Other		7,052		791		-		7,843
Total	$	2,365,962	$	68,644	$	574	$	2,434,032

	2011
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
U.S. Government agencies	$	1,471,920	$	29,347	$	24	$	1,501,243
Government agency issued residential  mortgage-backed securities		394,894		9,786		70		404,610
Government agency issued commercial  mortgage-backed securities		31,161		3,438		-		34,599
Obligations of states and political subdivisions		541,138		22,705		323		563,520
Other		8,938		608		-		9,546
Total	$	2,448,051	$	65,884	$	417	$	2,513,518

At December 31, 2012, the Company's available-for-sale securities included FHLB stock with a carrying value of $6.8 million compared to a required investment of $6.6 million.  FHLB stock is carried at amortized cost in the financial statements.

Gross gains of approximately $480,000 and gross losses of approximately $38,000 were recognized in 2012, gross gains of $12.4 million and gross losses of approximately $327,000 were recognized in 2011 and gross gains of  $4.5 million and gross losses of $2.1 million were recognized in 2010 on available-for-sale securities.  The gross losses of $2.1 million in 2010 were the result of the other-than-temporary impairment charge related to credit losses on the Company's investment in pooled trust preferred securities.  The fair value of these securities was negatively impacted by market conditions.  Subsequent to the other-than-temporary charges in 2010, the securities had no remaining book value.  No other-than-temporary impairment was recorded in 2011 and 2012.

Available-for-sale securities with a carrying value of $1.7 billion at December 31, 2012 were pledged to secure public and trust funds on deposit and for other purposes.  Included in available-for-sale securities at December 31, 2012, were securities with a carrying value of $273.6 million issued by a political subdivision within the State of Mississippi and securities with a carrying value of $141.5 million issued by a political subdivision within the State of Arkansas.

The amortized cost and estimated fair value of available-for-sale securities at December 31, 2012 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Equity securities are considered as maturing after ten years.

			Estimated		Weighted
	Amortized		Fair		Average
	Cost		Value		Yield
	(Dollars in thousands)
Maturing in one year or less	$	450,236	$	453.843		1.77	%
Maturing after one year through five years		1,055,838		1,077,403		1.61
Maturing after five years through ten years		341,992		357,489		4.00
Maturing after ten years		517,896		545,297		4.25
Total	$	2,365,962	$	2,434,032

A summary of temporarily impaired available-for-sale investments with continuous unrealized loss positions at December 31, 2012 and 2011 follows:

	2012
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
U.S. Government agencies	$	47,395	$	64	$	-	$	-	$	47,395	$	64
Government agency issued residential mortgage-backed securities		55,939		145		2,839		114		58,778		259
Government agency issued commercial  mortgage-backed securities		26,239		135		-		-		26,239		135
Obligations of states and political subdivisions		9,247		73		313		43		9,560		116
Other		-		-		-		-		-		-
Total	$	138,820	$	417	$	3,152	$	157	$	141,972	$	574

	2011
	Less Than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
U.S. Government agencies	$	34,850	$	24	$	-	$	-	$	34,850	$	24
Government agency issued residential  mortgage-backed securities		-		-		3,751		70		3,751		70
Government agency issued commercial  mortgage-backed securities		-		-		-		-		-		-
Obligations of states and political subdivisions		20,820		144		9,214		179		30,034		323
Other		-		-		-		-		-		-
Total	$	55,670	$	168	$	12,965	$	249	$	68,635	$	417

Based upon a review of the credit quality of these securities, and considering that the issuers were in compliance with the terms of the securities, management had no intent to sell these securities, and it was more likely than not that the Company would not be required to sell the securities prior to recovery of costs.  Therefore, the impairments related to these securities were determined to be temporary.  No other-than-temporary impairment was recorded in 2012.