Securities Available for Sale and Held to Maturity

3 Months Ended

Mar. 31, 2012

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
March 31, 2012	Cost		Gains		(Losses)			Value		Cost		Gains		(Losses)			Value
U.S. Government agency obligations
Issued by U.S. Government agencies	$	31	$	-	$	-		$	31	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		102,489		140		(688	)		101,941		-		-		-			-
Obligations of states and political subdivisions		197,312		11,079		(157	)		208,234		40,393		4,133		(2	)		44,524
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		19,108		956		-			20,064		4,089		295		-			4,384
Issued by FNMA and FHLMC		279,597		6,595		(23	)		286,169		586		29		-			615
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,576,899		43,021		-			1,619,920		4,743		83		-			4,826
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		321,687		10,013		(1,382	)		330,318		2,199		165		-			2,364
Asset-backed securities / structured financial products		23,670		23		-			23,693		-		-		-			-
Corporate debt securities		5,292		30		(28	)		5,294		-		-		-			-
Total	$	2,526,085	$	71,857	$	(2,278	)	$	2,595,664	$	52,010	$	4,705	$	(2	)	$	56,713

December 31, 2011
U.S. Government agency obligations
Issued by U.S. Government agencies	$	3	$	-	$	-		$	3	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		64,573		229		-			64,802		-		-		-			-
Obligations of states and political subdivisions		190,868		11,971		(12	)		202,827		42,619		4,131		(2	)		46,748
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		11,500		945		-			12,445		4,538		336		-			4,874
Issued by FNMA and FHLMC		340,839		7,093		-			347,932		588		28		-			616
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,570,782		44,183		-			1,614,965		7,749		133		(1	)		7,881
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		216,698		9,497		(176	)		226,019		2,211		185		-			2,396
Total	$	2,395,263	$	73,918	$	(188	)	$	2,468,993	$	57,705	$	4,813	$	(3	)	$	62,515

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
March 31, 2012	Fair Value		(Losses)			Fair Value		(Losses)			Fair Value		(Losses)
U.S. Government agency obligations
Issued by U.S. Government sponsored agencies	$	71,545	$	(688	)	$	-	$	-		$	71,545	$	(688	)
Obligations of states and political subdivisions		10,871		(158	)		203		(1	)		11,074		(159	)
Mortgage-backed securities
Residential mortgage pass-through securities
Issued by FNMA and FHLMC		1,916		(23	)		-		-			1,916		(23	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		118,848		(1,382	)		-		-			118,848		(1,382	)
Corporate debt securities		2,491		(28	)		-		-			2,491		(28	)
Total	$	205,671	$	(2,279	)	$	203	$	(1	)	$	205,874	$	(2,280	)
December 31, 2011
Obligations of states and political subdivisions	$	3,368	$	(12	)	$	202	$	(2	)	$	3,570	$	(14	)
Mortgage-backed securities
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,069		(1	)		-		-			1,069		(1	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		46,890		(176	)		-		-			46,890		(176	)
Total	$	51,327	$	(189	)	$	202	$	(2	)	$	51,529	$	(191	)

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 March 31, 2012.  There were no other-than-temporary impairments for the three months ended March 31, 2012 and 2011.

Security Gains and Losses

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

	Three Months Ended March 31,
Available for Sale	2012		2011
Proceeds from calls and sales of securities	$	-	$	-
Gross realized gains		1,050		-
Held to Maturity
Proceeds from calls of securities	$	-	$	1,290
Gross realized gains		-		7

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 March 31, 2012, 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	$	10,880	$	10,941	$	2,942	$	2,969
Due after one year through five years		63,795		66,501		17,725		19,290
Due after five years through ten years		216,903		224,063		18,230		20,679
Due after ten years		37,216		37,688		1,496		1,586
		328,794		339,193		40,393		44,524
Mortgage-backed securities		2,197,291		2,256,471		11,617		12,189
Total	$	2,526,085	$	2,595,664	$	52,010	$	56,713