3. Securities

The amortized cost and fair value of securities classified as available for sale and held to maturity follow (in thousands):


Securitites Available for Sale
	September 30, 2012								December 31, 2011
	Amortized		Gross Unrealized		Gross Unrealized		Fair		Amortized		Gross Unrealized		Gross Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury	$	150	$	10	$	—	$	160	$	150	$	14	$	—	$	164
U.S. government agencies		18,201		47		—		18,248		248,595		1,308		—		249,903
Municipal obligations		74,967		1,168		3		76,132		294,489		15,218		42		309,665
Mortgage-backed securities		1,826,624		77,908		12		1,904,520		2,422,891		58,150		696		2,480,345
CMOs		199,792		937		33		200,696		1,426,495		21,774		2,193		1,446,076
Corporate debt securities		3,750		—		—		3,750		4,517		11		34		4,494
Other equity securities		4,529		764		10		5,283		4,208		2,086		41		6,253

	$	2,128,013	$	80,834	$	58	$	2,208,789	$	4,401,345	$	98,561	$	3,006	$	4,496,900


Securitites Held to Maturity
	September 30, 2012								December 31, 2011
			Gross		Gross						Gross		Gross
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Municipal obligations	$	174,362	$	16,510	$	5	$	190,867		—		—		—		—
Mortgage-backed securities		195,070		4,816		—		199,886		—		—		—		—
CMOs		1,475,050		25,039		1,706		1,498,383		—		—		—		—

	$	1,844,482	$	46,365	$	1,711	$	1,889,136		—		—		—		—

During the first quarter of 2012, the Company reclassified approximately $1.5 billion of securities available for sale as securities held to maturity. As a result of the acquisition of Whitney National Bank, the securities portfolio increased to such a size that the company determined that only a portion of the portfolio is needed to be held for sale for liquidity purposes. The securities reclassified consisted primarily of CMOs and in-market municipal securities. The securities were transferred at fair value, which became the cost basis for the securities held to maturity. The unrealized net holding gain on the available for sale securities on the date of transfer totaled approximately $39 million, and continued to be reported, net of tax, as a component of accumulated other comprehensive income. This net unrealized gain is being accreted to interest income over the remaining life of the securities as a yield adjustment, which serves to offset the impact of the amortization of the net premium created in the transfer. There were no gains or losses recognized as a result of this transfer.

The following table presents the amortized cost and fair value of debt securities classified as available for sale and held to maturity at September 30, 2012, by contractual maturity (in thousands). Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties.


	Amortized		Fair
	Cost		Value
Debt Securities Available for Sale
Due in one year or less	$	53,882	$	54,121
Due after one year through five years		195,876		197,715
Due after five years through ten years		338,242		351,122
Due after ten years		1,535,484		1,600,548

Total available for sale debt securities	$	2,123,484	$	2,203,506


	Amortized		Fair
	Cost		Value
Debt Securities Held to Maturity
Due in one year or less	$	16,868	$	16,996
Due after one year through five years		428,653		436,073
Due after five years through ten years		101,657		111,686
Due after ten years		1,297,304		1,324,381

Total held to maturity securities	$	1,844,482	$	1,889,136

The Company held no securities classified as trading at September 30, 2012 or December 31, 2011. The Company held no securities classified as held to maturity at December 31, 2011.

The details concerning securities classified as available for sale with unrealized losses as of September 30, 2012 follow (in thousands):


Available for sale
	Losses < 12 months				Losses 12 months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. government agencies		—		—		—		—		—		—
Municipal obligations		545		3		960		1		1,505		4
Mortgage-backed securities		1,587		2		1,348		9		2,935		11
CMOs		49,995		33		—		—		49,995		33
Corporate debt securities		—		—		—		—		—		—
Equity securities		—		—		217		10		217		10

	$	52,127	$	38	$	2,525	$	20	$	54,652	$	58

The details concerning securities classified as available for sale with unrealized losses as of December 31, 2011 follow (in thousands):


Available for sale
	Losses < 12 months				Losses 12 months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. government agencies		—		—		—		—		—		—
Municipal obligations		18,854		42		—		—		18,854		42
Mortgage-backed securities		212,900		692		337		4		213,237		696
CMOs		296,860		2,193		—		—		296,860		2,193
Corporate debt securities		398		34		—		—		398		34
Equity securities		1,685		39		2		2		1,687		41

	$	530,697	$	3,000	$	339	$	6	$	531,036	$	3,006

The details concerning securities classified as held to maturity with unrealized losses as of September 30, 2012 follow (in thousands):


Held to maturity
	Losses < 12 months				Losses 12 months or >				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Municpal obligations	$	1,862	$	5	$	—	$	—		1,862	$	5
CMOs		308,580		747		74,499		959		383,079	$	1,706

	$	310,442	$	752	$	74,499	$	959	$	384,941	$	1,711

Substantially all of the unrealized losses relate mainly to changes in market rates on fixed-rate debt securities since the respective purchase date. In all cases, the indicated impairment would be recovered no later than the security’s maturity date or possibly earlier if the market price for the security increases with a reduction in the yield required by the market. None of the unrealized losses relate to the marketability of the securities or the obligor’s ability to honor redemption of the obligations. The Company has adequate liquidity and, therefore, does not plan to sell and, more likely than not, will not be required to sell these securities before full recovery of the indicated impairment. Accordingly, the unrealized losses on these securities have been determined to be temporary.

Securities with a fair value of approximately $2.4 billion at September 30, 2012 and $3.0 billion at December 31, 2011 were pledged primarily to secure public deposits or securities sold under agreements to repurchase.