Note C

Investments

The aggregate values of investment securities at June 30, 2011 December 31, 2010, and June 30, 2010 along with unrealized gains and losses determined on an individual security basis are as follows:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investment securities available for sale
June 30, 2011
U. S. Treasury	$	1,286,978	$	2,309	$	5	$	1,289,282
Government agency		1,904,135		1,846		1,140		1,904,843
Corporate bonds		461,756		5,258		43		466,971
Residential mortgage-backed securities		327,531		6,403		451		333,483
Equity securities		965		17,644		—		18,609
State, county and municipal		1,037		19		3		1,053

Total investment securities available for sale	$	3,982,402	$	33,481	$	1,642	$	4,014,241

December 31, 2010
U. S. Treasury	$	1,935,666	$	4,041	$	307	$	1,939,400
Government agency		1,930,469		361		10,844		1,919,986
Corporate bonds		479,160		7,498		—		486,658
Residential mortgage-backed securities		139,291		4,522		268		143,545
Equity securities		1,055		18,176		—		19,231
State, county and municipal		1,240		20		4		1,256

Total investment securities available for sale	$	4,486,881	$	34,618	$	11,423	$	4,510,076

June 30, 2010
U. S. Treasury	$	2,173,759	$	9,219	$	—	$	2,182,978
Government agency		899,375		2,387		23		901,739
Corporate bonds		480,738		8,845		—		489,583
Residential mortgage-backed securities		168,307		6,313		104		174,516
Equity securities		1,358		17,333		—		18,691
State, county and municipal		1,242		30		2		1,270

Total investment securities available for sale	$	3,724,779	$	44,127	$	129	$	3,768,777


Investment securities held to maturity
June 30, 2011
Residential mortgage-backed securities	$	2,098	$	206	$	26	$	2,278

December 31, 2010
Residential mortgage-backed securities	$	2,532	$	235	$	26	$	2,741

June 30, 2010
Residential mortgage-backed securities	$	2,933	$	276	$	26	$	3,183
State, county and municipal		151		—		—		151

Total investment securities held to maturity	$	3,084	$	276	$	26	$	3,334

Investments in residential mortgage-backed securities represent primarily securities issued by the Government National Mortgage Association, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation.

Investments in corporate bonds represent debt securities that were issued by various financial institutions under the Temporary Liquidity Guarantee Program. These debt obligations were issued with the full faith and credit of the United States of America. The guarantee for these securities is triggered when an issuer defaults on a scheduled payment.

The following table provides maturity information for investment securities as of the dates indicated. Callable securities are assumed to mature on their earliest call date.


	June 30, 2011				December 31, 2010				June 30, 2010
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
Investment securities available for sale
Maturing in:
One year or less	$	3,133,236	$	3,140,002	$	3,441,185	$	3,436,818	$	2,342,011	$	2,351,171
One through five years		549,912		551,647		916,101		921,536		1,220,914		1,232,535
Five through 10 years		99,834		100,387		1,683		1,710		1,912		1,946
Over 10 years		198,456		203,596		126,857		130,781		158,584		164,434
Equity securities		965		18,609		1,055		19,231		1,358		18,691

Total investment securities available for sale	$	3,982,402	$	4,014,241	$	4,486,881	$	4,510,076	$	3,724,779	$	3,768,777


Investment securities held to maturity
Maturing in:
One through five years	$	8	$	6	$	—	$	—	$	151	$	151
Five through 10 years		1,973		2,110		2,404		2,570		2,797		3,005
Over 10 years		117		162		128		171		136		178

Total investment securities held to maturity	$	2,098	$	2,278	$	2,532	$	2,741	$	3,084	$	3,334

For each period presented, securities gains (losses) include the following:


	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Gross gains on sales of investment securities available for sale	$	—		$	—		$	156		$	2,860
Gross losses on sales of investment securities available for sale		(96	)		—			(701	)		(1,729	)
Other that temporary impairment loss on equity securities		—			(186	)		—			(186	)

Total securities gains (losses)	$	(96	)	$	(186	)	$	(545	)	$	945

The following table provides information regarding securities with unrealized losses as of June 30, 2011 and June 30, 2010:


	Less than 12 months				12 months or more				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2011
Investment securities available for sale:

U. S. Treasury	$	50,307	$	5	$	—	$	—	$	50,307	$	5
Government agency		507,210		1,140		—		—		507,210		1,140
Corporate bonds		9,957		43		—		—		9,957		43
Residential mortgage-backed securities		80,866		401		2,016		50		82,882		451
State, county and municipal		529		3		10		—		539		3

Total	$	648,869	$	1,592	$	2,026	$	50	$	650,895	$	1,642

Investment securities held to maturity:
Residential mortgage-backed securities	$	—	$	—	$	24	$	26	$	24	$	26

June 30, 2010
Investment securities available for sale:
Government agency	$	4,005	$	23	$	—	$	—	$	4,005	$	23
Residential mortgage-backed securities		5,151		81		1,152		23		6,303		104
State, county and municipal		—		—		439		2		439		2

Total	$	9,156	$	104	$	1,591	$	25	$	10,747	$	129

Investment securities held to maturity:
Residential mortgage-backed securities	$	—	$	—	$	29	$	26	$	29	$	26

Investment securities with an aggregate fair value of $2,050 have had continuous unrealized losses for more than twelve months as of June 30, 2011 with an aggregate unrealized loss of $76. These 18 investments include residential mortgage-backed and state, county and municipal securities. None of the unrealized losses identified as of June 30, 2011 relate to the marketability of the securities or the issuer's ability to honor redemption obligations. For all periods presented, BancShares had the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Therefore, none of the securities were deemed to be other than temporarily impaired.

Investment securities having an aggregate carrying value of $2,684,107 at June 30, 2011, $2,096,850 at December 31, 2010 and $1,694,084 at June 30, 2010 were pledged as collateral to secure public funds on deposit, to secure certain short-term borrowings and for other purposes as required by law.