Securities Available for Sale and Held to Maturity

3 Months Ended

Mar. 31, 2013

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, 2013	Cost		Gains		(Losses)			Value		Cost		Gains		(Losses)			Value
U.S. Treasury securities	$	506	$	-	$	-		$	506	$	-	$	-	$	-		$	-
U.S. Government agency obligations
Issued by U.S. Government agencies		138,449		2,896		(119	)		141,226		-		-		-			-
Issued by U.S. Government sponsored agencies		185,541		938		(186	)		186,293		-		-		-			-
Obligations of states and political subdivisions		206,189		12,295		(17	)		218,467		33,071		4,058		-			37,129
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		50,560		768		(190	)		51,138		2,932		207		-			3,139
Issued by FNMA and FHLMC		234,806		6,577		(18	)		241,365		569		49		-			618
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		2,059,567		31,724		(775	)		2,090,516		-		-		-			-
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		359,650		17,701		(281	)		377,070		37,094		208		(92	)		37,210
Asset-backed securities		236,016		3,486		-			239,502		-		-		-			-
Total	$	3,471,284	$	76,385	$	(1,586	)	$	3,546,083	$	73,666	$	4,522	$	(92	)	$	78,096
December 31, 2012
U.S. Government agency obligations
Issued by U.S. Government agencies	$	10	$	-	$	-		$	10	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		105,396		339		-			105,735		-		-		-			-
Obligations of states and political subdivisions		202,877		12,900		(16	)		215,761		36,206		4,184		-			40,390
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		18,981		921		-			19,902		3,245		227		-			3,472
Issued by FNMA and FHLMC		201,493		7,071		-			208,564		572		52		-			624
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,436,812		29,574		(20	)		1,466,366		-		-		-			-
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		380,514		19,420		(154	)		399,780		2,165		237		-			2,402
Asset-backed securities		238,893		2,755		(21	)		241,627		-		-		-			-
Total	$	2,584,976	$	72,980	$	(211	)	$	2,657,745	$	42,188	$	4,700	$	-		$	46,888

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, 2013	Fair Value		(Losses)			Fair Value		(Losses)			Fair Value		(Losses)
U.S. Government agency obligations
Issued by U.S. Government agencies	$	11,007	$	(119	)	$	-	$	-		$	11,007	$	(119	)
Issued by U.S. Government sponsored agencies		39,920		(186	)		-		-			39,920		(186	)
Obligations of states and political subdivisions		3,689		(16	)		573		(1	)		4,262		(17	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		30,062		(190	)		-		-			30,062		(190	)
Issued by FNMA and FHLMC		39,551		(18	)		-		-			39,551		(18	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		263,436		(775	)		-		-			263,436		(775	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		64,343		(373	)		-		-			64,343		(373	)
Total	$	452,008	$	(1,677	)	$	573	$	(1	)	$	452,581	$	(1,678	)
December 31, 2012
Obligations of states and political subdivisions	$	5,878	$	(16	)	$	-	$	-		$	5,878	$	(16	)
Mortgage-backed securities
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		3,055		(20	)		-		-			3,055		(20	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		-		-			16,339		(154	)		16,339		(154	)
Asset-backed securities		16,412		(21	)		-		-			16,412		(21	)
Total	$	25,345	$	(57	)	$	16,339	$	(154	)	$	41,684	$	(211	)

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 (loss). 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, 2013. There were no other-than-temporary impairments for the three months ended March 31, 2013 and 2012.

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	2013		2012
Proceeds from calls and sales of securities	$	35,748	$	-
Gross realized gains		204		1,050

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, 2013, 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	$	12,298	$	12,349	$	1,622	$	1,634
Due after one year through five years		106,600		110,902		15,450		16,744
Due after five years through ten years		389,757		399,690		14,772		17,456
Due after ten years		258,046		263,053		1,227		1,295
		766,701		785,994		33,071		37,129
Mortgage-backed securities		2,704,583		2,760,089		40,595		40,967
Total	$	3,471,284	$	3,546,083	$	73,666	$	78,096