SECURITIES

12 Months Ended

Dec. 31, 2011

SECURITIES

SECURITIES

2. SECURITIES

A summary of the amortized cost, gross unrealized gains and losses and fair value of securities is as follows:

December 31,	2011									2010
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. GSE securities	$	130,708	$	968	$	(2	)	$	131,674	$	41,463	$	213	$	(343	)	$	41,333
State and municipal obligations	52,861		1,366		(8		)	54,219		47,175		1,173		(283		)	48,065
U.S. GSE Residential mortgage-backed securities	67,317		3,667		—			70,984		76,814		3,481		(124		)	80,171
U.S. GSE Commercial collateralized mortgage obligations	5,167		70		—			5,237		—		—		—			—
U.S. GSE Residential collateralized mortgage obligations	175,878		3,493		(46		)	179,325		152,202		2,618		(850		)	153,970
Total available for sale	431,931		9,564		(56		)	441,439		317,654		7,485		(1,600		)	323,539
Held to maturity:
U.S. GSE securities	—		—		—			—		24,973		118		(199		)	24,892
State and municipal obligations	104,314		2,048		(5		)	106,357		64,728		439		(922		)	64,245
U.S. GSE Residential collateralized mortgage obligations	42,081		1,104		(21		)	43,164		40,264		954		(53		)	41,165
Corporate bonds	22,758		3		(1,330		)	21,431		18,000		—		(158		)	17,842
Total held to maturity	169,153		3,155		(1,356		)	170,952		147,965		1,511		(1,332		)	148,144
Total securities	$	601,084	$	12,719	$	(1,412	)	$	612,391	$	465,619	$	8,996	$	(2,932	)	$	471,683

All of the residential mortgage-backed securities, residential collateralized mortgage obligations and commercial collateralized mortgage obligations were backed by U.S. Government Sponsored Entities as of December 31, 2011 and 2010.

Securities with unrealized losses at year-end 2011 and 2010, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

December 31,	2011								2010
(In thousands)	Less than 12 months				Greater than 12 months				Less than 12 months				Greater than 12 months
	Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses
Available for sale:
U.S. GSE securities	$	7,196	$	2	$	—	$	—	$	25,145	$	343	$	—	$	—
State and municipal obligations	4,283		8		—		—		11,927		283		—		—
U.S. GSE Residential mortgage-backed securities	—		—		—		—		7,591		124		—		—
U.S. GSE Residential collateralized mortgage obligations	7,672		46		—		—		55,906		850		—		—
Total available for sale	$	19,151	$	56	$	—	$	—	$	100,569	$	1,600	$	—	$	—
Held to maturity:
U.S. GSE securities	$	—	$	—	$	—	$	—	$	9,800	$	199	$	—	$	—
State and municipal obligations	7,011		5		—		—		27,416		922		—		—
U.S. GSE Residential collateralized mortgage obligations	4,810		21		—		—		4,952		53		—		—
Corporate Bonds	4,664		336		12,006		994		17,842		158		—		—
Total held to maturity	$	16,485	$	362	$	12,006	$	994	$	60,010	$	1,332	$	—	$	—

Unrealized losses on securities have not been recognized into income, as the losses on these securities would be expected to dissipate as they approach their maturity dates. The Company evaluates securities for other-than-temporary impairment periodically and with increased frequency when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions, and whether the Company has the intent to sell the security or more than likely than not will be required to sell the security before its anticipated recovery. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its entities, whether downgrades by bond rating agencies have occurred, and the issuer’s financial condition.

The following table sets forth the fair value, amortized cost and maturities of the securities at December 31, 2011. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

December 31, 2011	Within One Year				After One But Within Five Years				After Five But Within Ten Years				After Ten Years				Total
(In thousands)	Fair Value Amount		Amortized Cost Amount		Fair Value Amount		Amortized Cost Amount		Fair Value Amount		Amortized Cost Amount		Fair Value Amount		Amortized Cost Amount		Fair Value Amount		Amortized Cost Amount
Available for sale:
U.S. GSE securities	$	—	$	—	$	35,321	$	34,915	$	96,353	$	95,793	$	—	$	—	$	131,674	$	130,708
State and municipal obligations	14,191		14,141		31,408		30,619		8,154		7,644		466		457		54,219		52,861
U.S. GSE residential mortgage-backed securities	—		—		977		915		16,855		16,027		53,152		50,375		70,984		67,317
U.S. GSE residential collateralized mortgage obligations	—		—		—		—		16,912		16,787		162,413		159,091		179,325		175,878
U.S. GSE commercial collateralized mortgage obligations (1)	—		—		—		—		—		—		5,237		5,167		5,237		5,167
Total available for sale	14,191		14,141		67,706		66,449		138,274		136,251		221,268		215,090		441,439		431,931
Held to maturity:
State and municipal obligations	60,285		60,209		21,363		20,789		4,007		3,769		20,702		19,547		106,357		104,314
U.S. GSE residential collateralized mortgage obligations	—		—		—		—		—		—		43,164		42,081		43,164		42,081
Corporate Bonds	—		—		11,012		11,758		10,419		11,000		—		—		21,431		22,758
Total held to maturity	60,285		60,209		32,375		32,547		14,426		14,769		63,866		61,628		170,952		169,153
Total securities	$	74,476	$	74,350	$	100,081	$	98,996	$	152,700	$	151,020	$	285,134	$	276,718	$	612,391	$	601,084

(1)    U.S. GSE commercial collateralized mortgage obligations represent securities with multi-family mortgage loans as collateral.

There were $14.1 million of proceeds on sales of available for sale securities with gross gains of approximately $0.1 million and gross losses of approximately $0.01 realized in 2011.  There were $31.4 million of proceeds on sales of available for sale securities and gross gains of approximately $1.3 million realized, in 2010.  No securities were sold at a loss in 2010.  There were $13.1 million of proceeds on sales of available for sale securities and gross gains of approximately $0.5 million realized, in 2009. No securities were sold at a loss in 2009.

Securities having a fair value of approximately $287.8 million and $277.9 million at December 31, 2011 and 2010, respectively, were pledged to secure public deposits and Federal Home Loan Bank and Federal Reserve Bank overnight borrowings. The Company did not hold any trading securities during the years ended December 31, 2011, 2010 and 2009.

There were no investment holdings of any one issuer that exceeded 10% of stockholders’ equity at December 31, 2011, other than U.S. Government and its Sponsored Entities.  As of December 31, 2010, there was one issuer where the Bank had invested holdings that exceeded 10% of stockholder’s equity and represented 14% of stockholder’s equity. The majority of these holdings matured in the first quarter of 2011.