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 2013		December 31 2012		March 31 2012
Interest-bearing deposits included in cash and due from banks	$	96,300	$	114,928	$	143,885
U.S. Government and agency obligations	79,959		98,617		238,866
Municipal bonds:
Taxable	43,921		31,480		18,071
Tax exempt	110,062		103,545		90,965
Total municipal bonds	153,983		135,025		109,036
Corporate bonds	47,233		48,519		43,674
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	89,036		105,770		112,328
One- to four-family residential other	1,282		1,299		1,808
Multifamily agency guaranteed	200,012		188,136		35,156
Multifamily other	10,787		10,659		—
Total mortgage-backed or related securities	301,117		305,864		149,292
Asset-backed securities:
Student Loan Marketing Association (SLMA)	32,239		32,474		—
Other asset-backed securities	18,261		10,042		—
Total asset-backed securities	50,500		42,516		—
Equity securities (excludes FHLB stock)	60		63		407
Total securities	632,852		630,604		541,275
FHLB stock	36,373		36,705		37,371
	$	765,525	$	782,237	$	722,531

Securities—Trading: The amortized cost and estimated fair value of securities—trading at March 31, 2013 and December 31, 2012 are summarized as follows (dollars in thousands):



	March 31, 2013						December 31, 2012
	Amortized Cost		Fair Value		Percent of Total		Amortized Cost		Fair Value		Percent of Total
U.S. Government and agency obligations	$	1,370	$	1,617	2.4	%	$	1,380	$	1,637	2.3	%
Municipal bonds:
Tax exempt	5,245		5,347		7.9		5,590		5,684		8.0
Corporate bonds	49,678		34,520		50.9		57,807		35,741		50.2
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	14,952		16,166		23.9		16,574		17,911		25.1
Multifamily agency guaranteed	8,934		10,051		14.8		8,974		10,196		14.3
Total mortgage-backed or related securities	23,886		26,217		38.7		25,548		28,107		39.4
Equity securities	14		60		0.1		14		63		0.1
	$	80,193	$	67,761	100.0	%	$	90,339	$	71,232	100.0	%

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. There were no sales of securities—trading during the three months ended March 31, 2012. The Company recognized a $409,000 OTTI recovery on securities—trading related to the sale of certain equity securities issued by government sponsored entities during the three months ended March 31, 2013 and no OTTI charges or recoveries during the three months ended March 31, 2012. As of March 31, 2013 and 2012, there were no securities—trading in a nonaccrual status.

The amortized cost and estimated fair value of securities—trading at March 31, 2013 and December 31, 2012, 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, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	4,390		4,732		4,496		4,867
Due after five years through ten years	13,830		15,021		14,251		15,536
Due after ten years through twenty years	11,882		10,945		12,055		11,346
Due after twenty years	50,077		37,003		59,523		39,420
	80,179		67,701		90,325		71,169
Equity securities	14		60		14		63
	$	80,193	$	67,761	$	90,339	$	71,232

Securities—Available-for-Sale: The amortized cost and estimated fair value of securities—available-for-sale at March 31, 2013 and December 31, 2012 are summarized as follows (dollars in thousands):



	March 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	78,085	$	295	$	(38	)	$	78,342	16.4	%
Municipal bonds:
Taxable	32,613		232		(39		)	32,806		6.9
Tax exempt	29,272		254		(54		)	29,472		6.2
Total municipal bonds	61,885		486		(93		)	62,278		13.1
Corporate bonds	10,629		35		(1		)	10,663		2.2
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	72,468		954		(552		)	72,870		15.3
One- to four-family residential other	1,195		87		—			1,282		0.3
Multifamily agency guaranteed	188,553		1,691		(283		)	189,961		39.8
Multifamily other	10,677		110		—			10,787		2.3
Total mortgage-backed or related securities	272,893		2,842		(835		)	274,900		57.7
Asset-backed securities:
SLMA	32,083		173		(17		)	32,239		6.8
Other asset-backed securities	18,333		—		(72		)	18,261		3.8
Total asset-backed securities	50,416		173		(89		)	50,500		10.6
	$	473,908	$	3,831	$	(1,056	)	$	476,683	100.0	%

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	96,666	$	367	$	(53	)	$	96,980	20.5	%
Municipal bonds:
Taxable	20,987		233		(67		)	21,153		4.5
Tax exempt	23,575		221		(11		)	23,785		5.0
Total municipal bonds	44,562		454		(78		)	44,938		9.5
Corporate bonds	10,701		37		(9		)	10,729		2.3
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	87,392		1,051		(584		)	87,859		18.6
One- to four-family residential other	1,223		76		—			1,299		0.3
Multifamily agency guaranteed	176,026		2,140		(226		)	177,940		37.6
Multifamily other	10,700		4		(45		)	10,659		2.2
Total mortgage-backed or related securities	275,341		3,271		(855		)	277,757		58.7
Asset-backed securities:
SLMA	32,309		210		(45		)	32,474		6.9
Other asset-backed securities	10,071		—		(29		)	10,042		2.1
Total asset-backed securities	42,380		210		(74		)	42,516		9.0
	$	469,650	$	4,339	$	(1,069	)	$	472,920	100.0	%

At March 31, 2013 and December 31, 2012, an aging of unrealized losses and fair value of related securities—available-for-sale was as follows (in thousands):



	March 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	$	15,964	$	(38	)	$	—	$	—		$	15,964	$	(38	)
Municipal bonds:
Taxable	11,776		(39		)	—		—			11,776		(39		)
Tax exempt	10,574		(53		)	382		(1		)	10,956		(54		)
Total municipal bonds	22,350		(92		)	382		(1		)	22,732		(93		)
Corporate bonds	3,179		(1		)	—		—			3,179		(1		)
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	23,923		(309		)	10,798		(243		)	34,721		(552		)
Multifamily agency guaranteed	49,007		(283		)	—		—			49,007		(283		)
Total mortgage-backed or related securities	72,930		(592		)	10,798		(243		)	83,728		(835		)
Asset-backed securities:
SLMA	16,451		(17		)	—		—			16,451		(17		)
Other asset-backed securities	18,261		(72		)	—		—			18,261		(72		)
Total asset-backed securities	34,712		(89		)	—		—			34,712		(89		)
	$	149,135	$	(812	)	$	11,180	$	(244	)	$	160,315	$	(1,056	)

	December 31, 2012
	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	$	22,955	$	(53	)	$	—	$	—		$	22,955	$	(53	)
Municipal bonds:
Taxable	11,009		(67		)	—		—			11,009		(67		)
Tax exempt	4,619		(11		)	—		—			4,619		(11		)
Total municipal bonds	15,628		(78		)	—		—			15,628		(78		)
Corporate bonds	6,670		(9		)	—		—			6,670		(9		)
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	32,459		(503		)	5,746		(81		)	38,205		(584		)
Multifamily agency guaranteed	32,170		(226		)	—		—			32,170		(226		)
Multifamily other	7,279		(45		)	—		—			7,279		(45		)
Total mortgage-backed or related securities	71,908		(774		)	5,746		(81		)	77,654		(855		)
Asset-backed securities:
SLMA	9,674		(45		)	—		—			9,674		(45		)
Other asset-backed securities	10,042		(29		)	—		—			10,042		(29		)
Total asset-backed securities	19,716		(74		)	—		—			19,716		(74		)
	$	136,877	$	(988	)	$	5,746	$	(81	)	$	142,623	$	(1,069	)

Proceeds from the sale of four securities—available-for-sale during the three months ended March 31, 2013 were $13.9 million with a resulting loss of $117,000. There were no sales of securities—available-for-sale during the three months ended March 31, 2012. At March 31, 2013, there were 59 securities—available for sale with unrealized losses, compared to 52 securities at December 31, 2012. Management does not believe that any individual unrealized loss as of March 31, 2013 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.

The amortized cost and estimated fair value of securities—available-for-sale at March 31, 2013 and December 31, 2012, 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, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	9,539	$	9,576	$	16,369	$	16,393
Due after one year through five years	250,405		251,532		205,913		207,147
Due after five years through ten years	115,019		115,980		132,372		133,407
Due after ten years through twenty years	39,877		39,892		43,386		43,414
Due after twenty years	59,068		59,703		71,610		72,559
	$	473,908	$	476,683	$	469,650	$	472,920

Securities—Held-to-Maturity: The amortized cost and estimated fair value of securities—held-to-maturity at March 31, 2013 and December 31, 2012 are summarized as follows (dollars in thousands):



	March 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
Municipal bonds:
Taxable	$	11,115	$	461	$	(18	)	$	11,558	12.3	%
Tax exempt	75,243		5,008		(74		)	80,177		85.5
Total municipal bonds	86,358		5,469		(92		)	91,735		97.8
Corporate bonds	2,050		—		—			2,050		2.2
	$	88,408	$	5,469	$	(92	)	$	93,785	100.0	%

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
Municipal bonds:
Taxable	$	10,326	$	436	$	(157	)	$	10,605	11.5	%
Tax exempt	74,076		5,757		(30		)	79,803		86.3
Total municipal bonds	84,402		6,193		(187		)	90,408		97.8
Corporate bonds	2,050		—		—			2,050		2.2
	$	86,452	$	6,193	$	(187	)	$	92,458	100.0	%

At March 31, 2013 and December 31, 2012, an age analysis of unrealized losses and fair value of related securities—held-to-maturity was as follows (in thousands):



	March 31, 2013
	Less Than 12 Months					12 Months or More				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Municipal bonds:
Taxable	$	3,313	$	(18	)	$	—	$	—	$	3,313	$	(18	)
Tax exempt	5,354		(74		)	—		—		5,354		(74		)
	$	8,667	$	(92	)	$	—	$	—	$	8,667	$	(92	)

	December 31, 2012
	Less Than 12 Months					12 Months or More				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Municipal bonds:
Taxable	$	4,137	$	(157	)	$	—	$	—	$	4,137	$	(157	)
Tax exempt	910		(30		)	—		—		910		(30		)
	$	5,047	$	(187	)	$	—	$	—	$	5,047	$	(187	)

There were no sales of securities—held-to-maturity and the Company recognized no OTTI charges on securities—held-to-maturity during the three months ended March 31, 2013 and 2012. As of March 31, 2013, there were no securities—held-to-maturity in a nonaccrual status. There were seven securities—held-to-maturity with unrealized losses at March 31, 2013, compared to five securities at December 31, 2012. Management does not believe that any individual unrealized loss as of March 31, 2013 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.

The amortized cost and estimated fair value of securities—held-to-maturity at March 31, 2013 and December 31, 2012, 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, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,322	$	3,383	$	3,323	$	3,410
Due after one year through five years	13,634		14,261		13,641		14,335
Due after five years through ten years	13,230		13,475		13,295		13,452
Due after ten years through twenty years	55,097		59,403		53,031		57,868
Due after twenty years	3,125		3,263		3,162		3,393
	$	88,408	$	93,785	$	86,452	$	92,458

Pledged Securities: The following table presents, as of March 31, 2013, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):



	Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	116,343	$	121,720
Interest rate swap counterparties	10,967		11,152
Retail repurchase agreements	104,594		106,562
Total pledged securities	$	231,904	$	239,434

The carrying value of investment securities pledged to secure borrowings as of March 31, 2013 was $235 million.