Securities Available for Sale and Held to Maturity

6 Months Ended

Jun. 30, 2011

Securities Available for Sale and Held to Maturity [Abstract]

Securities Available for Sale and Held to Maturity

Note 3 – Securities Available for Sale and Held to Maturity

The following table is a summary of the amortized cost and estimated fair value of securities available for sale and held to maturity ($ in thousands):

	Securities Available for Sale									Securities Held to Maturity
			Gross		Gross			Estimated				Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
June 30, 2011	Cost		Gains		(Losses)			Value		Cost		Gains		(Losses)			Value
U.S. Government agency obligations
Issued by U.S. Government agencies	$	7	$	-	$	-		$	7	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		103,302		323		(685	)		102,940		-		-		-			-
Obligations of states and political subdivisions		180,413		5,814		(193	)		186,034		46,931		3,325		(3	)		50,253
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		14,125		865		-			14,990		5,547		261		-			5,808
Issued by FNMA and FHLMC		413,754		2,851		(3,112	)		413,493		-		-		-			-
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,509,675		47,127		(126	)		1,556,676		32,456		594		-			33,050
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		121,577		3,516		(191	)		124,902		2,989		49		-			3,038
Total	$	2,342,853	$	60,496	$	(4,307	)	$	2,399,042	$	87,923	$	4,229	$	(3	)	$	92,149

December 31, 2010
U.S. Government agency obligations
Issued by U.S. Government agencies	$	12	$	-	$	-		$	12	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		124,093		114		(2,184	)		122,023		-		-		-			-
Obligations of states and political subdivisions		159,418		2,259		(2,040	)		159,637		53,246		2,628		(10	)		55,864
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		11,719		723		-			12,442		6,058		171		-			6,229
Issued by FNMA and FHLMC		432,162		1,188		(6,846	)		426,504		-		-		-			-
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,361,339		43,788		(4,311	)		1,400,816		78,526		1,503		-			80,029
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		54,331		2,007		(523	)		55,815		3,017		6		(2	)		3,021
Total	$	2,143,074	$	50,079	$	(15,904	)	$	2,177,249	$	140,847	$	4,308	$	(12	)	$	145,143

Temporarily Impaired Securities

The table below includes securities with gross unrealized losses segregated by length of impairment ($ in thousands):

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
June 30, 2011	Fair Value		(Losses)			Fair Value		(Losses)			Fair Value		(Losses)
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	64,790	$	(685	)	$	-	$	-		$	64,790	$	(685	)
Obligations of states and political subdivisions		16,616		(188	)		303		(8	)		16,919		(196	)
Mortgage-backed securities
Residential mortgage pass-through securities
Issued by FNMA and FHLMC		282,872		(3,112	)		-		-			282,872		(3,112	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		19,341		(126	)		-		-			19,341		(126	)
Commercial mortgage-backed securities
Issued by FNMA and FHLMC		16,297		(191	)		-		-			16,297		(191	)
Total	$	399,916	$	(4,302	)	$	303	$	(8	)	$	400,219	$	(4,310	)

December 31, 2010
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	86,917	$	(2,184	)	$	-	$	-		$	86,917	$	(2,184	)
Obligations of states and political subdivisions		65,523		(2,045	)		307		(5	)		65,830		(2,050	)
Mortgage-backed securities
Residential mortgage pass-through securities
Issued by FNMA and FHLMC		312,787		(6,846	)		-		-			312,787		(6,846	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		232,279		(4,311	)		-		-			232,279		(4,311	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		21,073		(525	)		-		-			21,073		(525	)
Total	$	718,579	$	(15,911	)	$	307	$	(5	)	$	718,886	$	(15,916	)

Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, Management considers, among other things, the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of Trustmark to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.  The unrealized losses shown above are primarily due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality.  Because Trustmark does not intend to sell these securities and it is more likely than not that Trustmark will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, Trustmark does not consider these investments to be other-than-temporarily impaired at June 30, 2011.  There were no other-than-temporary impairments for the six months ended June 30, 2011 and 2010.

Security Gains and Losses

Gains and losses as a result of calls and dispositions of securities were as follows ($ in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Available for Sale	2011		2010		2011		2010
Proceeds from sales of securities	$	22,996	$	52,621	$	22,996	$	65,074
Gross realized gains		51		1,852		51		2,216
Held to Maturity
Proceeds from calls of securities	$	-	$	2,045	$	1,290	$	3,750
Gross realized gains		-		3		7		8

Realized gains and losses are determined using the specific identification method and are included in noninterest income as securities gains, net.

Contractual Maturities

The amortized cost and estimated fair value of securities available for sale and held to maturity at June 30, 2011, by contractual maturity, are shown below ($ in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities				Securities
	Available for Sale				Held to Maturity
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	35,726	$	35,785	$	3,162	$	3,189
Due after one year through five years		47,562		49,201		15,640		16,211
Due after five years through ten years		188,751		192,264		20,273		22,062
Due after ten years		11,683		11,731		7,856		8,791
		283,722		288,981		46,931		50,253
Mortgage-backed securities		2,059,131		2,110,061		40,992		41,896
Total	$	2,342,853	$	2,399,042	$	87,923	$	92,149