Chart 7. The title is "Realized and Unrealized Securities Gains Subsided in Late 2003".

Aggregate realized securities gains-to-net income and net portfolio appreciation-to-amortized cost are shown quarterly for the periods fourth quarter 2000 through fourth quarter 2003. Realized and unrealized securities gains fluctuated greatly between 2000 and 2003, generally peaking during late 2002 and early 2003. During fourth quarter 2000, the aggregate ratio of unrealized securities gains-to-amortized cost was 0.2% and the aggregate ratio of realized gains-to-net income was 1.3%. During first quarter 2001, the aggregate ratio of unrealized securities gains-to-amortized cost improved to 1.0% and the aggregate ratio of realized gains-to-net income increased sharply to 6.0%. During second quarter 2001, the aggregate ratio of unrealized securities gains-to-amortized cost moderated slightly to 0.7% and the aggregate ratio of realized gains-to-net income declined to 4.5%. During third quarter 2001, the aggregate ratio of unrealized securities gains-to-amortized cost accelerated to 2.1% and the aggregate ratio of realized gains-to-net income increased again to 6.0%. Over the next two quarters, the aggregate ratio of unrealized securities gains-to-amortized cost dropped sharply to 0.4% and the aggregate ratio of realized gains-to-net income dropped in half to 3.2%. During the next five quarters (mid 2002 through mid 2003), both the aggregate ratio of unrealized securities gains-to-amortized cost and realized gains-to-net income rose sharply, averaging 2.1% and 8.8%, respectively. In the second half of 2003, the aggregate ratio of unrealized securities gains-to-amortized cost decreased sharply, ending the year at 0.9% and the aggregate ratio of realized gains-to-net income likewise plummeted to 1.5%.