Securities Available for Sale and Held to Maturity

9 Months Ended

Sep. 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
September 30, 2011	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
U.S. Government agency obligations
Issued by U.S. Government agencies	$	5	$	-	$	-		$	5	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		61,599		309		(38	)		61,870		-		-		-			-
Obligations of states and political subdivisions		198,860		8,962		(41	)		207,781		43,246		4,097		(4	)		47,339
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		13,650		987		-			14,637		5,291		353		-			5,644
Issued by FNMA and FHLMC		392,598		7,991		-			400,589		753		34		-			787
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,524,422		55,276		-			1,579,698		19,534		307		-			19,841
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		204,990		7,335		-			212,325		2,222		174		-			2,396
Total	$	2,396,124	$	80,860	$	(79	)	$	2,476,905	$	71,046	$	4,965	$	(4	)	$	76,007
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		763		6		-			769
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		2,254		-		(2	)		2,252
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
September 30, 2011	Fair Value		(Losses)			Fair Value		(Losses)			Fair Value		(Losses)
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	9,957	$	(38	)	$	-	$	-		$	9,957	$	(38	)
Obligations of states and political subdivisions		3,475		(34	)		300		(11	)		3,775		(45	)
Total	$	13,432	$	(72	)	$	300	$	(11	)	$	13,732	$	(83	)
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 September 30, 2011.  There were no other-than-temporary impairments for the nine months ended September 30, 2011 and 2010.

Management has evaluated Trustmark's investment portfolio and has determined that neither the S&P downgrade of U.S. long-term sovereign debt nor the resulting market volatility has created a significant decline in the fair value of Trustmark's investment portfolio.  Management will continue to monitor market activity and other events to determine if additional action will be necessary.

Security Gains and Losses

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Available for Sale	2011		2010		2011		2010
Proceeds from calls and sales of securities	$	1,175	$	-	$	24,171	$	65,074
Gross realized gains		5		-		57		2,216
Held to Maturity
Proceeds from calls of securities	$	2,355	$	1,210	$	3,645	$	4,960
Gross realized gains		28		4		34		12

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 September 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	$	45,283	$	45,322	$	2,653	$	2,680
Due after one year through five years		50,639		52,721		12,919		13,498
Due after five years through ten years		153,247		159,940		19,809		21,992
Due after ten years		11,295		11,673		7,865		9,169
		260,464		269,656		43,246		47,339
Mortgage-backed securities		2,135,660		2,207,249		27,800		28,668
Total	$	2,396,124	$	2,476,905	$	71,046	$	76,007