Securities

6 Months Ended

Jun. 30, 2011

Securities

Securities

5. Securities

The following table summarizes the amortized cost, gross unrealized gains and losses and the resulting fair value of securities available for sale:

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2011:
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	671,342	$	22,154	($	84	)	$	693,412
State and municipal securities		250,336		12,161		(858	)		261,639
U.S. government agency securities		30,054		224		0			30,278
Other securities		4,393		77		(31	)		4,439
Total	$	956,125	$	34,616	($	973	)	$	989,768
December 31, 2010:
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	491,530	$	16,139	($	1,027	)	$	506,642
State and municipal securities		249,117		7,247		(2,383	)		253,981
Other securities		3,281		0		(38	)		3,243
Total	$	743,928	$	23,386	($	3,448	)	$	763,866

The scheduled contractual maturities of investment securities available for sale at June 30, 2011 are presented as follows:

	June 30, 2011
	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	29,452	$	29,790
Due after one year through five years		93,873		96,310
Due after five years through ten years		169,886		177,458
Due after ten years		659,633		682,942
Total investment securities available-for-sale	$	952,844	$	986,500

The following table summarizes the carrying value of securities pledged as collateral at June 30, 2011:

(in thousands)	Carrying Amount
Washington and Oregon State public deposits	$	220,540
Federal Home Loan Bank advances		92,418
Federal Reserve Bank borrowings		51,657
Repurchase agreement		27,556
Interest rate contracts		13,336
Other		1,429
Total securities pledged as collateral	$	406,936

The following tables show the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2011 and December 31, 2010:

June 30, 2011
	Less than 12 Months					12 Months or More					Total
(in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	26,028	($	83	)	$	347	($	1	)	$	26,375	($	84	)
State and municipal securities		27,944		(636	)		2,829		(222	)		30,773		(858	)
Other securities		0		0			969		(31	)		969		(31	)
Total	$	53,972	($	719	)	$	4,145	($	254	)	$	58,117	($	973	)
December 31, 2010
	Less than 12 Months					12 Months or More					Total
(in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	86,529	($	1,025	)	$	588	($	2	)	$	87,117	($	1,027	)
State and municipal securities		74,755		(2,099	)		2,792		(284	)		77,547		(2,383	)
Other securities		2,275		(6	)		968		(32	)		3,243		(38	)
Total	$	163,559	($	3,130	)	$	4,348	($	318	)	$	167,907	($	3,448	)

The unrealized losses on the above securities are primarily attributable to increases in market interest rates subsequent to their purchase by the Company. Management does not intend to sell any impaired securities nor does available evidence suggest it is more likely than not that management will be required to sell any impaired securities. The Company's securities portfolio does not include any private label mortgage backed securities or investments in trust preferred securities. Management believes the nature of securities in the Company's investment portfolio present a very high probability of collecting all contractual amounts due, as the majority of the securities held are backed by government agencies or government-sponsored enterprises. However, this recovery in value may not occur for some time, perhaps greater than the one-year time horizon or perhaps even at maturity.