Investment Securities

6 Months Ended

Jun. 30, 2011

Investment Securities

Investment Securities

Note 7 Investment Securities

Below is an analysis of the amortized cost and fair values of securities available for sale at:

	June 30, 2011									December 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
								(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage Backed Securities – Residential	$	33,695	$	3,996	$	0		$	37,691	$	36,719	$	3,874	$	0		$	40,593
Obligations of U.S. Government – Sponsored Enterprises:
Mortgage Backed Securities – Residential		657,193		28,221		(323	)		685,091		618,454		26,513		(2,986	)		641,981
Mortgage Backed Securities – Commercial		212		1		(1	)		212		233		1		(1	)		233
Other Government- Sponsored Enterprises		242,818		728		(290	)		243,256		184,531		225		(869	)		183,887
Obligations of States and Political Subdivisions		1,029		28		0			1,057		47,175		644		0			47,819
Corporate Securities		11,827		228		(90	)		11,965		21,226		494		(344	)		21,376
Pooled Trust Preferred Collateralized Debt Obligations		56,393		39		(29,448	)		26,984		58,780		16		(32,444	)		26,352
Total Debt Securities		1,003,167		33,241		(30,152	)		1,006,256		967,118		31,767		(36,644	)		962,241
Equity Securities		3,074		2		0			3,076		5,137		337		0			5,474
Total Securities Available for Sale	$	1,006,241	$	33,243	$	(30,152	)	$	1,009,332	$	972,255	$	32,104	$	(36,644	)	$	967,715

The amortized cost and fair value of debt securities available for sale at June 30, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or repay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
	(dollars in thousands)
Due within one year	$	7,110	$	7,125
Due after one but within five years		235,792		236,224
Due after five but within ten years		945		964
Due after ten years		68,220		38,949
		312,067		283,262
Mortgage Backed Securities (a)		691,100		722,994
Total Debt Securities	$	1,003,167	$	1,006,256

(a) Mortgage Backed Securities include an amortized cost of $34 million and a fair value of $38 million for Obligations of U.S. Government Agencies issued by Ginnie Mae. Obligations of U.S. Government-Sponsored Enterprises includes obligations issued by Fannie Mae and Freddie Mac which had an amortized cost of $657 million and a fair value of $685 million.

For the six months ended June 30, 2011, the Company realized proceeds of $69.9 million from the sale of available for sale securities which included $2.4 million in gross gains and $0.2 million in gross losses. For the six months ended June 30, 2010, the Company realized proceeds of $70.0 million from the sale of available for sale securities which included $1.7 million in gross gains and $0.8 million in gross losses.

During the first quarter of 2011, $5.2 million in single issue trust preferred securities and $1.2 million in corporate debentures owned by a non-bank subsidiary of the Company were sold in order to reinvest the proceeds in more liquid assets for that subsidiary. The amounts sold represent the entire portfolio of single issue trust preferred securities and corporate debentures owned by that subsidiary and resulted in a net gain of $0.3 million. During the second quarter of 2011, $3.0 million in single issue trust preferred securities were called resulting in a gain of $0.1 million. Additionally, in the first half of 2011, the Company continued its strategy to liquidate its obligations of states and political subdivisions portfolio in order to mitigate future credit risk and improve our tax position. Investments in obligations of states and political subdivisions totaled $1.1 million and $47.2 million as of June 30, 2011 and December 31, 2010, respectively. This decline is a result of $3.6 million in maturities and $42.5 million in sales which provided $0.3 million in recognized gains. As of June 30, 2011, none of the remaining investments in obligations of states and political subdivisions were in an unrealized loss position. All of these securities were classified as available for sale.

Securities available for sale with a fair value of $675 million and $660 million were pledged as of June 30, 2011 and December 31, 2010, respectively, to secure public deposits and for other purposes required or permitted by law.

As of June 30, 2011 and December 31, 2010, there were no securities classified as held to maturity.

For the six months ended June 30, 2010, net securities gains included $50 thousand in gains and no losses for debt securities held to maturity.