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Gross realized gains and losses on securities available for sale for the periods indicated were as <br />follows: <br />Year Ended <br />December 31, <br />(dollars in thousands) 2011 2010 <br />Realized gains $ 74,171 $ 77,468 <br />Realized losses" (40,072) (113,419) <br />Realized net gains (losses) $ 34,099 $ (35,951) <br />(1) Includes other -than -temporary impairment recognized in the income statement of $1.9 million <br />and $8.2 million for 2011 and 2010, respectively. The 2010 amount is net of a $25 million <br />recovery of OTTI. <br />The table below presents activity related to the credit component recognized in earnings on debt <br />securities held by the Bank for which a portion of the OTTI loss remains in other comprehensive income <br />for the years ending December 31, 2011 and 2010. The credit loss component represents the difference <br />between the present value of expected future cash flows and the amortized cost basis of the security prior to <br />considering credit losses, OTTI recognized in earnings for credit -impaired debt securities is presented as <br />additions in two components based upon whether the current period is the first time the debt security was <br />credit -impaired (initial credit impairment) or is not the first time the debt security was credit -impaired <br />(subsequent credit impairments). The credit loss component is reduced if we sell, intend to sell or believe <br />we will be required to sell previously credit -unpaired debt securities. Additionally, the credit loss <br />component is reduced if we receive or expect to receive cash flows in excess of what we previously <br />expected to receive over the remaining life of the credit -impaired debt security, the security matures or is <br />fully written down, <br />(dollars in thousands) 2011 2010 <br />Balance, beginning of period $ 6,478 $ 147,515 <br />Additions related to the credit component of <br />securities on which OTTI impairment losses <br />were: <br />Previously recognized <br />Not previously recognized <br />Reductions for securities sold <br />21,286 <br />845 1,979 <br />(7,323) (164,302) <br />Balance, end of period $ - $ 6,478 <br />-19- <br />2011 Bank of the West Annual Report <br />