INTEREST-BEARING DEPOSITS AND SECURITIES

The following table sets forth additional detail regarding our interest-bearing deposits and securities at the dates indicated (includes securities—trading, available-for-sale and held-to-maturity, all at carrying value) (in thousands):



	March 31 2014		December 31 2013		March 31 2013
Interest-bearing deposits included in cash and due from banks	$	71,459	$	67,638	$	96,300
U.S. Government and agency obligations	61,438		61,327		79,959
Municipal bonds:
Taxable	30,372		34,216		43,921
Tax exempt	124,692		119,588		110,062
Total municipal bonds	155,064		153,804		153,983
Corporate bonds	42,097		44,154		47,233
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	57,263		58,117		89,036
One- to four-family residential other	1,003		1,051		1,282
Multifamily agency guaranteed	279,912		281,319		200,012
Multifamily other	10,415		10,234		10,787
Total mortgage-backed or related securities	348,593		350,721		301,117
Asset-backed securities:
Student Loan Marketing Association (SLMA)	15,749		15,681		32,239
Other asset-backed securities	9,608		9,510		18,261
Total asset-backed securities	25,357		25,191		50,500
Equity securities (excludes FHLB stock)	62		68		60
Total securities	632,611		635,265		632,852
FHLB stock (see Note 6)	33,288		35,390		36,373
	$	737,358	$	738,293	$	765,525

Securities—Trading: The amortized cost and estimated fair value of securities—trading at March 31, 2014 and December 31, 2013 are summarized as follows (dollars in thousands):



	March 31, 2014						December 31, 2013
	Amortized Cost		Fair Value		Percent of Total		Amortized Cost		Fair Value		Percent of Total
U.S. Government and agency obligations	$	1,370	$	1,511	2.6	%	$	1,370	$	1,481	2.4	%
Municipal bonds:
Tax exempt	1,666		1,719		2.9		4,969		5,023		8.0
Corporate bonds	49,464		35,062		60.1		49,498		35,140		56.2
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	9,822		10,545		18.1		10,483		11,230		18.0
Multifamily agency guaranteed	8,774		9,488		16.2		8,816		9,530		15.3
Total mortgage-backed or related securities	18,596		20,033		34.3		19,299		20,760		33.3
Equity securities	14		62		0.1		14		68		0.1
	$	71,110	$	58,387	100.0	%	$	75,150	$	62,472	100.0	%

There were three sales of securities—trading totaling $2.4 million with a resulting net gain of $1,000 during the three months ended March 31, 2014. There were 21 sales of securities—trading totaling $6.1 million with a resulting net gain of $1.1 million during the three months ended March 31, 2013, including $1.0 million which represented recoveries on certain collateralized debt obligations that had previously been written off. In addition to the $1.1 million net gain, the Company also recognized a $409,000 OTTI recovery on sales of securities—trading during the three months ended March 31, 2013, which was related to the sale of certain equity securities issued by government-sponsored entities. The Company recognized no OTTI charges or recoveries on securities—trading during the three months ended March 31, 2014. There were no securities—trading on nonaccrual status at March 31, 2014 and 2013.

The amortized cost and estimated fair value of securities—trading at March 31, 2014 and December 31, 2013, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.



	March 31, 2014				December 31, 2013
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing in one year or less	$	260	$	261	$	260	$	263
Maturing after one year through five years	5,803		6,147		7,056		7,298
Maturing after five years through ten years	10,181		11,063		12,602		13,572
Maturing after ten years through twenty years	33,005		26,608		33,335		27,472
Maturing after twenty years	21,847		14,246		21,883		13,799
	71,096		58,325		75,136		62,404
Equity securities	14		62		14		68
	$	71,110	$	58,387	$	75,150	$	62,472

Securities—Available-for-Sale: The amortized cost and estimated fair value of securities—available-for-sale at March 31, 2014 and December 31, 2013 are summarized as follows (dollars in thousands):



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	59,139	$	83	$	(471	)	$	58,751	12.6	%
Municipal bonds:
Taxable	19,774		125		(78		)	19,821		4.2
Tax exempt	30,505		173		(165		)	30,513		6.6
Total municipal bonds	50,279		298		(243		)	50,334		10.8
Corporate bonds	5,000		—		(15		)	4,985		1.1
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	46,234		971		(487		)	46,718		10.1
One- to four-family residential other	945		58		—			1,003		0.2
Multifamily agency guaranteed	269,103		457		(2,466		)	267,094		57.5
Multifamily other	10,580		—		(165		)	10,415		2.2
Total mortgage-backed or related securities	326,862		1,486		(3,118		)	325,230		70.0
Asset-backed securities:
SLMA	15,528		221		—			15,749		3.4
Other asset-backed securities	10,058		—		(450		)	9,608		2.1
Total asset-backed securities	25,586		221		(450		)	25,357		5.5
	$	466,866	$	2,088	$	(4,297	)	$	464,657	100.0	%

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	59,178	$	117	$	(635	)	$	58,660	12.5	%
Municipal bonds:
Taxable	23,842		100		(278		)	23,664		5.0
Tax exempt	29,229		170		(208		)	29,191		6.2
Total municipal bonds	53,071		270		(486		)	52,855		11.2
Corporate bonds	7,001		2		(39		)	6,964		1.5
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	47,077		648		(838		)	46,887		10.0
One- to four-family residential other	988		63		—			1,051		0.2
Multifamily agency guaranteed	271,428		402		(3,392		)	268,438		57.1
Multifamily other	10,604		—		(370		)	10,234		2.2
Total mortgage-backed or related securities	330,097		1,113		(4,600		)	326,610		69.5
Asset-backed securities:
SLMA	15,553		128		—			15,681		3.3
Other asset-backed securities	10,060		—		(550		)	9,510		2.0
Total asset-backed securities	25,613		128		(550		)	25,191		5.3
	$	474,960	$	1,630	$	(6,310	)	$	470,280	100.0	%

At March 31, 2014 and December 31, 2013, an aging of unrealized losses and fair value of related securities—available-for-sale was as follows (in thousands):



	March 31, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	29,777	$	(471	)	$	—	$	—		$	29,777	$	(471	)
Municipal bonds:
Taxable	7,413		(73		)	425		(5		)	7,838		(78		)
Tax exempt	8,863		(58		)	1,626		(107		)	10,489		(165		)
Total municipal bonds	16,276		(131		)	2,051		(112		)	18,327		(243		)
Corporate bonds	4,986		(15		)	—		—			4,986		(15		)
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	3,514		(44		)	12,297		(443		)	15,811		(487		)
Multifamily agency guaranteed	170,998		(2,143		)	23,891		(323		)	194,889		(2,466		)
Multifamily other	10,415		(165		)	—		—			10,415		(165		)
Total mortgage-backed or related securities	184,927		(2,352		)	36,188		(766		)	221,115		(3,118		)
Asset-backed securities:
Other asset-backed securities	—		—			9,608		(450		)	9,608		(450		)
	$	235,966	$	(2,969	)	$	47,847	$	(1,328	)	$	283,813	$	(4,297	)

	December 31, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	39,621	$	(633	)	$	998	$	(2	)	$	40,619	$	(635	)
Municipal bonds:
Taxable	15,580		(261		)	413		(17		)	15,993		(278		)
Tax exempt	8,217		(205		)	487		(3		)	8,704		(208		)
Total municipal bonds	23,797		(466		)	900		(20		)	24,697		(486		)
Corporate bonds	4,961		(39		)	—		—			4,961		(39		)
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	14,972		(133		)	22,560		(705		)	37,532		(838		)
Multifamily agency guaranteed	199,407		(3,162		)	10,096		(230		)	209,503		(3,392		)
Multifamily other	10,234		(370		)	—		—			10,234		(370		)
Total mortgage-backed or related securities	224,613		(3,665		)	32,656		(935		)	257,269		(4,600		)
Asset-backed securities:
Other asset-backed securities	—		—			9,510		(550		)	9,510		(550		)
	$	292,992	$	(4,803	)	$	44,064	$	(1,507	)	$	337,056	$	(6,310	)

There were six sales of securities—available-for-sale totaling $28.2 million with a resulting net gain of $34,000 during the three months ended March 31, 2014. There were four sales of securities—available-for-sale totaling $13.9 million with a resulting net loss of $117,000 during the three months ended March 31, 2013. At March 31, 2014, there were 94 securities—available for sale with unrealized losses, compared to 114 securities at December 31, 2013. Management does not believe that any individual unrealized loss as of March 31, 2014 represents OTTI. The decline in fair market values of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no securities—available-for-sale on nonaccrual status at March 31, 2014 and 2013.

The amortized cost and estimated fair value of securities—available-for-sale at March 31, 2014 and December 31, 2013, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.



	March 31, 2014				December 31, 2013
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing in one year or less	$	22,596	$	22,669	$	25,136	$	25,256
Maturing after one year through five years	320,498		318,483		322,493		319,489
Maturing after five years through ten years	56,619		56,325		58,468		57,782
Maturing after ten years through twenty years	5,220		5,045		15,535		15,135
Maturing after twenty years	61,933		62,135		53,328		52,618
	$	466,866	$	464,657	$	474,960	$	470,280

Securities—Held-to-Maturity: The amortized cost and estimated fair value of securities—held-to-maturity at March 31, 2014 and December 31, 2013 are summarized as follows (dollars in thousands):



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total Amortized Cost
U.S. Government and agency obligations	$	1,176	$	—	$	(59	)	$	1,117	1.1	%
Municipal bonds:
Taxable	10,551		208		(80		)	10,679		9.6
Tax exempt	92,460		3,523		(723		)	95,260		84.4
Total municipal bonds	103,011		3,731		(803		)	105,939		94.0
Corporate bonds	2,050		—		—			2,050		1.9
Mortgage-backed or related securities:
Multifamily agency guaranteed	3,330		3		(30		)	3,303		3.0
	$	109,567	$	3,734	$	(892	)	$	112,409	100.0	%

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total Amortized Cost
U.S. Government and agency obligations	$	1,186	$	—	$	(80	)	$	1,106	1.2	%
Municipal bonds:
Taxable	10,552		193		(204		)	10,541		10.3
Tax exempt	85,374		2,545		(1,299		)	86,620		83.3
Total municipal bonds	95,926		2,738		(1,503		)	97,161		93.6
Corporate bonds	2,050		—		—			2,050		2.0
Mortgage-backed or related securities:
Multifamily agency guaranteed	3,351		—		(58		)	3,293		3.2
	$	102,513	$	2,738	$	(1,641	)	$	103,610	100.0	%

At March 31, 2014 and December 31, 2013, an age analysis of unrealized losses and fair value of related securities—held-to-maturity was as follows (in thousands):



	March 31, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	1,117	$	(59	)	$	—	$	—		$	1,117	$	(59	)
Municipal bonds:
Taxable	1,593		(25		)	3,002		(55		)	4,595		(80		)
Tax exempt	22,129		(708		)	306		(15		)	22,435		(723		)
Total municipal bonds	23,722		(733		)	3,308		(70		)	27,030		(803		)
Mortgage-backed or related securities:
Multifamily agency guaranteed	2,231		(30		)	—		—			2,231		(30		)
	$	27,070	$	(822	)	$	3,308	$	(70	)	$	30,378	$	(892	)

	December 31, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	1,106	$	(80	)	$	—	$	—		$	1,106	$	(80	)
Municipal bonds:
Taxable	3,344		(110		)	2,964		(94		)	6,308		(204		)
Tax exempt	31,234		(1,282		)	303		(17		)	31,537		(1,299		)
Total municipal bonds	34,578		(1,392		)	3,267		(111		)	37,845		(1,503		)
Mortgage-backed or related securities:
Multifamily agency guaranteed	3,293		(58		)	—		—			3,293		(58		)
	$	38,977	$	(1,530	)	$	3,267	$	(111	)	$	42,244	$	(1,641	)

There were no sales of securities—held-to-maturity during the three months ended March 31, 2014 and 2013. At March 31, 2014, there were 31 securities—held-to-maturity with unrealized losses, compared to 36 securities at December 31, 2013. Management does not believe that any individual unrealized loss as of March 31, 2014 represents OTTI. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no securities—held-to-maturity on nonaccrual status at March 31, 2014 and 2013.

The amortized cost and estimated fair value of securities—held-to-maturity at March 31, 2014 and December 31, 2013, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.



	March 31, 2014				December 31, 2013
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing in one year or less	$	1,270	$	1,277	$	1,270	$	1,281
Maturing after one year through five years	10,824		11,170		10,834		11,206
Maturing after five years through ten years	21,001		21,059		17,948		17,908
Maturing after ten years through twenty years	60,268		62,598		59,643		60,791
Maturing after twenty years	16,204		16,305		12,818		12,424
	$	109,567	$	112,409	$	102,513	$	103,610

Pledged Securities: The following table presents, as of March 31, 2014, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):



	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	128,207	$	127,997	$	130,975
Interest rate swap counterparties	8,850		8,527		8,850
Retail repurchase agreements	103,394		103,120		103,394
Total pledged securities	$	240,451	$	239,644	$	243,219