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):



	June 30 2013		December 31 2012		June 30 2012
Interest-bearing deposits included in cash and due from banks	$	67,080	$	114,928	$	132,536
U.S. Government and agency obligations	60,638		98,617		229,669
Municipal bonds:
Taxable	36,690		31,480		19,225
Tax exempt	115,142		103,545		102,139
Total municipal bonds	151,832		135,025		121,364
Corporate bonds	46,150		48,519		42,923
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	48,249		105,770		114,284
One- to four-family residential other	1,128		1,299		1,780
Multifamily agency guaranteed	285,928		188,136		53,844
Multifamily other	10,059		10,659		—
Total mortgage-backed or related securities	345,364		305,864		169,908
Asset-backed securities:
Student Loan Marketing Association (SLMA)	15,497		32,474		32,492
Other asset-backed securities	9,460		10,042		—
Total asset-backed securities	24,957		42,516		32,492
Equity securities (excludes FHLB stock)	56		63		454
Total securities	628,997		630,604		596,810
FHLB stock	36,040		36,705		37,371
	$	732,117	$	782,237	$	766,717

Securities—Trading: The amortized cost and estimated fair value of securities—trading at June 30, 2013 and December 31, 2012 are summarized as follows (dollars in thousands):



	June 30, 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	$	1,534	2.3	%	$	1,380	$	1,637	2.3	%
Municipal bonds:
Tax exempt	4,963		4,990		7.6		5,590		5,684		8.0
Total municipal bonds	4,963		4,990		7.6		5,590		5,684		8.0
Corporate bonds	49,518		35,105		53.6		57,807		35,741		50.2
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	13,213		14,110		21.5		16,574		17,911		25.1
Multifamily agency guaranteed	8,896		9,729		14.9		8,974		10,196		14.3
Total mortgage-backed or related securities	22,109		23,839		36.4		25,548		28,107		39.4
Equity securities	14		56		0.1		14		63		0.1
	$	77,974	$	65,524	100.0	%	$	90,339	$	71,232	100.0	%

There were 37 sales of securities—trading totaling $25.3 million with a resulting net gain of $1.1 million during the six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 2013 and no OTTI charges or recoveries during the six months ended June 30, 2012. As of June 30, 2013 and 2012, there were no securities—trading on a nonaccrual status.

The amortized cost and estimated fair value of securities—trading at June 30, 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.



	June 30, 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	4,095		4,373		4,496		4,867
Due after five years through ten years	14,339		15,186		14,251		15,536
Due after ten years through twenty years	21,017		17,913		12,055		11,346
Due after twenty years	38,509		27,996		59,523		39,420
	77,960		65,468		90,325		71,169
Equity securities	14		56		14		63
	$	77,974	$	65,524	$	90,339	$	71,232

Securities—Available-for-Sale: The amortized cost and estimated fair value of securities—available-for-sale at June 30, 2013 and December 31, 2012 are summarized as follows (dollars in thousands):



	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	58,548	$	202	$	(851	)	$	57,899	12.3	%
Municipal bonds:
Taxable	25,837		125		(231		)	25,731		5.5
Tax exempt	30,174		150		(294		)	30,030		6.4
Total municipal bonds	56,011		275		(525		)	55,761		11.9
Corporate bonds	9,011		22		(39		)	8,994		1.9
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	34,496		720		(1,077		)	34,139		7.3
One- to four-family residential other	1,052		77		—			1,129		0.2
Multifamily agency guaranteed	279,410		429		(3,639		)	276,200		58.9
Multifamily other	10,653		—		(594		)	10,059		2.2
Total mortgage-backed or related securities	325,611		1,226		(5,310		)	321,527		68.5
Asset-backed securities:
SLMA	15,591		—		(94		)	15,497		3.3
Other asset-backed securities	10,065		—		(606		)	9,459		2.0
Total asset-backed securities	25,656		—		(700		)	24,956		5.3
	$	474,837	$	1,725	$	(7,425	)	$	469,137	99.9	%

	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		58.8
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	100.1	%

At June 30, 2013 and December 31, 2012, an aging of unrealized losses and fair value of related securities—available-for-sale was as follows (in thousands):



	June 30, 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	$	41,901	$	(851	)	$	—	$	—		$	41,901	$	(851	)
Municipal bonds:
Taxable	18,244		(231		)	—		—			18,244		(231		)
Tax exempt	13,509		(293		)	381		(1		)	13,890		(294		)
Total municipal bonds	31,753		(524		)	381		(1		)	32,134		(525		)
Corporate bonds	4,961		(39		)	—		—			4,961		(39		)
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	13,489		(821		)	10,530		(256		)	24,019		(1,077		)
Multifamily agency guaranteed	215,156		(3,639		)	—		—			215,156		(3,639		)
Multifamily other	10,059		(594		)	—		—			10,059		(594		)
Total mortgage-backed or related securities	238,704		(5,054		)	10,530		(256		)	249,234		(5,310		)
Asset-backed securities:
SLMA	15,497		(94		)	—		—			15,497		(94		)
Other asset-backed securities	9,460		(606		)	—		—			9,460		(606		)
Total asset-backed securities	24,957		(700		)	—		—			24,957		(700		)
	$	342,276	$	(7,168	)	$	10,911	$	(257	)	$	353,187	$	(7,425	)

	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 35 securities—available-for-sale during the six months ended June 30, 2013 were $103.3 million with a resulting loss of $116,000. There were two sales of securities—available-for-sale totaling $11.8 million with a resulting gain of $29,000 during the six months ended June 30, 2012. At June 30, 2013, there were 131 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 June 30, 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 June 30, 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.



	June 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	11,930	$	12,031	$	16,369	$	16,393
Due after one year through five years	301,551		298,992		205,913		207,147
Due after five years through ten years	85,648		83,758		132,372		133,407
Due after ten years through twenty years	30,115		29,665		43,386		43,414
Due after twenty years	45,593		44,691		71,610		72,559
	$	474,837	$	469,137	$	469,650	$	472,920

Securities—Held-to-Maturity: The amortized cost and estimated fair value of securities—held-to-maturity at June 30, 2013 and December 31, 2012 are summarized as follows (dollars in thousands):



	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	1,205	$	—	$	(48	)	$	1,157	1.2	%
Municipal bonds:
Taxable	10,959		296		(141		)	11,114		11.5	%
Tax exempt	80,122		3,188		(1,074		)	82,236		85.2
Total municipal bonds	91,081		3,484		(1,215		)	93,350		96.7
Corporate bonds	2,050		—		—			2,050		2.1
	$	94,336	$	3,484	$	(1,263	)	$	96,557	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 June 30, 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):



	June 30, 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	$	1,157	$	(48	)	$	—	$	—	$	1,157	$	(48	)
Municipal bonds:
Taxable	4,757		(141		)	—		—		4,757		(141		)
Tax exempt	20,158		(1,074		)	—		—		20,158		(1,074		)
	$	26,072	$	(1,263	)	$	—	$	—	$	26,072	$	(1,263	)

	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 did not recognize any OTTI charges on securities—held-to-maturity during the six months ended June 30, 2013 and 2012. As of June 30, 2013, there were no securities—held-to-maturity in a nonaccrual status. There were 29 securities—held-to-maturity with unrealized losses at June 30, 2013, compared to five securities at December 31, 2012. Management does not believe that any individual unrealized loss on a security as of June 30, 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 June 30, 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.



	June 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,321	$	3,360	$	3,323	$	3,410
Due after one year through five years	13,469		13,950		13,641		14,335
Due after five years through ten years	14,782		14,813		13,295		13,452
Due after ten years through twenty years	59,653		61,443		53,031		57,868
Due after twenty years	3,111		2,991		3,162		3,393
	$	94,336	$	96,557	$	86,452	$	92,458

Pledged Securities: The following table presents, as of June 30, 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	$	116,770	$	114,301
Interest rate swap counterparties	6,782		6,402
Retail repurchase agreements	105,167		105,412
Other	2,745		2,712
Total pledged securities	$	231,464	$	228,827

The carrying value of investment securities pledged to secure borrowings, public deposits or other obligations as of June 30, 2013 was $229.0 million.