Note 2 – Securities Available for Sale and Held to Maturity

The following tables are 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
June 30, 2015	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	$	74,258	$	808	$	(657	)	$	74,409	$	-	$	-	$	-		$	-
Issued by U.S. Government sponsored agencies		32,748		261		-			33,009		101,374		3,278		-			104,652
Obligations of states and political subdivisions		146,711		4,668		(57	)		151,322		56,978		2,972		-			59,950
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		20,349		508		(206	)		20,651		18,265		335		(82	)		18,518
Issued by FNMA and FHLMC		181,658		4,150		(157	)		185,651		10,965		320		-			11,285
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,658,085		14,991		(10,600	)		1,662,476		838,989		5,496		(3,390	)		841,095
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		286,496		5,056		(1,154	)		290,398		163,590		1,952		(825	)		164,717
Asset-backed securities and structured financial products		27,678		789		-			28,467		-		-		-			-
Total	$	2,427,983	$	31,231	$	(12,831	)	$	2,446,383	$	1,190,161	$	14,353	$	(4,297	)	$	1,200,217

December 31, 2014
U.S. Treasury securities	$	100	$	-	$	-		$	100	$	-	$	-	$	-		$	-
U.S. Government agency obligations
Issued by U.S. Government agencies		79,788		694		(826	)		79,656		-		-		-			-
Issued by U.S. Government sponsored agencies		32,725		170		(77	)		32,818		100,971		2,631		-			103,602
Obligations of states and political subdivisions		157,001		5,325		(68	)		162,258		63,505		3,398		-			66,903
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		11,897		544		(14	)		12,427		19,115		466		(16	)		19,565
Issued by FNMA and FHLMC		199,599		4,842		-			204,441		11,437		471		-			11,908
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		1,655,733		16,664		(10,564	)		1,661,833		834,176		6,440		(1,916	)		838,700
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		184,394		4,968		(28	)		189,334		141,481		1,750		(1,063	)		142,168
Asset-backed securities and structured financial products		30,776		924		-			31,700		-		-		-			-
Total	$	2,352,013	$	34,131	$	(11,577	)	$	2,374,567	$	1,170,685	$	15,156	$	(2,995	)	$	1,182,846

During the fourth quarter of 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax). The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. There were no gains or losses recognized as a result of the transfer. At June 30, 2015, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss in the accompanying balance sheet totaled approximately $37.3 million ($23.0 million, net of tax).

Temporarily Impaired Securities

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

	Less than 12 Months					12 Months or More					Total
June 30, 2015	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Government agency obligations
Issued by U.S. Government agencies	$	-	$	-		$	33,386	$	(657	)	$	33,386	$	(657	)
Obligations of states and political subdivisions		6,046		(30	)		2,849		(27	)		8,895		(57	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		19,542		(288	)		-		-			19,542		(288	)
Issued by FNMA and FHLMC		34,188		(157	)		-		-			34,188		(157	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		846,185		(6,470	)		271,538		(7,520	)		1,117,723		(13,990	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		171,582		(1,821	)		26,241		(158	)		197,823		(1,979	)
Total	$	1,077,543	$	(8,766	)	$	334,014	$	(8,362	)	$	1,411,557	$	(17,128	)

December 31, 2014
U.S. Government agency obligations
Issued by U.S. Government agencies	$	19,220	$	(115	)	$	32,656	$	(711	)	$	51,876	$	(826	)
Issued by U.S. Government sponsored agencies		9,948		(52	)		9,956		(25	)		19,904		(77	)
Obligations of states and political subdivisions		8,431		(22	)		3,800		(46	)		12,231		(68	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		7,199		(22	)		647		(8	)		7,846		(30	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		537,033		(2,449	)		395,342		(10,031	)		932,375		(12,480	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		9,134		(3	)		79,829		(1,088	)		88,963		(1,091	)
Total	$	590,965	$	(2,663	)	$	522,230	$	(11,909	)	$	1,113,195	$	(14,572	)

The unrealized losses shown above are 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, 2015. There were no other-than-temporary impairments for the six months ended June 30, 2015 and 2014.

Security Gains and Losses

Gains and losses as a result of calls and dispositions of securities, as well as any associated proceeds, were as follows for the periods presented ($ in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Available for Sale	2015		2014		2015		2014
Proceeds from calls and sales of securities	$	-	$	-	$	-	$	26,274
Gross realized gains		-		-		-		389

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

Contractual Maturities

The amortized cost and estimated fair value of securities available for sale and held to maturity at June 30, 2015, 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 Available for Sale				Securities Held to Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	17,167	$	17,315	$	956	$	966
Due after one year through five years		154,905		159,763		9,751		10,195
Due after five years through ten years		32,638		33,349		135,818		140,986
Due after ten years		76,685		76,780		11,827		12,455
		281,395		287,207		158,352		164,602
Mortgage-backed securities		2,146,588		2,159,176		1,031,809		1,035,615
Total	$	2,427,983	$	2,446,383	$	1,190,161	$	1,200,217