5. Securities

Securities Available for Sale

This table provides detailed information about securities available for sale at September 30, 2012 and December 31, 2011 (in thousands):


September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury	$	117,064	$	1,489	$	(36	)	$	118,517
U.S. Agencies		809,490		8,047		(13	)		817,524
Mortgage-backed		3,344,828		91,997		(202	)		3,436,623
State and political subdivisions		1,827,424		56,572		(269	)		1,883,727
Corporates		227,954		2,811		(32	)		230,733

Total	$	6,326,760	$	160,916	$	(552	)	$	6,487,124


December 31, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury	$	184,523	$	4,802	$	—		$	189,325
U.S. Agencies		1,615,637		16,434		(62	)		1,632,009
Mortgage-backed		2,437,282		55,985		(919	)		2,492,348
State and political subdivisions		1,642,844		51,336		(144	)		1,694,036
Corporates		99,620		566		(22	)		100,164

Total	$	5,979,906	$	129,123	$	(1,147	)	$	6,107,882

The following table presents contractual maturity information for securities available for sale at September 30, 2012 (in thousands):


	Amortized Cost		Fair Value
Due in 1 year or less	$	503,011	$	505,373
Due after 1 year through 5 years		1,679,302		1,714,184
Due after 5 years through 10 years		677,475		705,935
Due after 10 years		122,144		125,009

Total		2,981,932		3,050,501
Mortgage-backed securities		3,344,828		3,436,623

Total securities available for sale	$	6,326,760	$	6,487,124

Securities may be disposed of before contractual maturities due to sales by the Company or because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

For the nine months ended September 30, 2012, proceeds from the sales of securities available for sale were $991.8 million compared to $991.0 million for the same period in 2011. Securities transactions resulted in gross realized gains of $20.3 million and $16.0 million for the nine months ended September 30, 2012 and 2011. The gross realized losses for the nine months ended September 30, 2012 and 2011 were $342.0 thousand and $70.0 thousand, respectively.

Trading Securities

The net unrealized gains on trading securities at September 30, 2012 and September 30, 2011 were $416.7 thousand and $193.5 thousand, respectively, and were included in trading and investment banking income in the consolidated statements of income.

Securities Held to Maturity

The table below provides detailed information for securities held to maturity at September 30, 2012 and December 31, 2011 (in thousands):


September 30, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	98,479	$	14,742	$	—	$	113,221

December 31, 2011
State and political subdivisions	$	89,246	$	13,041	$	—	$	102,287

The following table presents contractual maturity information for securities held to maturity at September 30, 2012 (in thousands):


	Amortized Cost		Fair Value
Due in 1 year or less	$	2,042	$	2,348
Due after 1 year through 5 years		24,846		28,565
Due after 5 years through 10 years		23,724		27,275
Due after 10 years		47,867		55,033

Total securities held to maturity	$	98,479	$	113,221

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of securities held to maturity during the first nine months of 2012 or 2011.

Securities available for sale and held to maturity with a market value of $4.5 billion at September 30, 2012, and $5.4 billion at December 31, 2011, were pledged to secure U.S. Government deposits, other public deposits and certain trust deposits as required by law.

The following table shows the Company’s available for sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2012 and December 31, 2011 (in thousands).


September 30, 2012	Less than 12 months					12 months or more					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury	$	10,141	$	(36	)	$	—	$	—		$	10,141	$	(36	)
U.S. Agencies		35,284		(13	)		—		—			35,284		(13	)
Mortgage-backed		57,372		(202	)		—		—			57,372		(202	)
State and political subdivisions		58,622		(268	)		1,917		(1	)		60,539		(269	)
Corporates		27,711		(32	)		—		—			27,711		(32	)

Total temporarily- impaired debt securities available for sale	$	189,130	$	(551	)	$	1,917	$	(1	)	$	191,047	$	(552	)


December 31, 2011	Less than 12 months					12 months or more					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury	$	—	$	—		$	—	$	—		$	—	$	—
U.S. Agencies		66,992		(62	)		—		—			66,992		(62	)
Mortgage-backed		226,081		(919	)		—		—			226,081		(919	)
State and political subdivisions		45,918		(139	)		2,571		(5	)		48,489		(144	)
Corporates		12,471		(22	)		—		—			12,471		(22	)

Total temporarily- impaired debt securities available for sale	$	351,462	$	(1,142	)	$	2,571	$	(5	)	$	354,033	$	(1,147	)

The unrealized losses in the Company’s investments in direct obligations of U.S. treasury obligations, U.S. government agencies, federal agency mortgage-backed securities, and municipal securities were caused by changes in interest rates. Because the Company does not have the intent to sell these securities, it is more likely than not that the Company will not be required to sell these securities before a recovery of fair value. The Company expects to recover its cost basis in the securities and does not consider these investments to be other-than-temporarily impaired at September 30, 2012.