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):



	September 30 2013		December 31 2012		September 30 2012
Interest-bearing deposits included in cash and due from banks	$	106,625	$	114,928	$	143,251
U.S. Government and agency obligations	61,473		98,617		159,885
Municipal bonds:
Taxable	36,501		31,480		26,742
Tax exempt	115,333		103,545		106,171
Total municipal bonds	151,834		135,025		132,913
Corporate bonds	46,145		48,519		40,505
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	58,616		105,770		108,830
One- to four-family residential other	1,100		1,299		1,412
Multifamily agency guaranteed	283,252		188,136		144,830
Multifamily other	10,102		10,659		—
Total mortgage-backed or related securities	353,070		305,864		255,072
Asset-backed securities:
Student Loan Marketing Association (SLMA)	15,676		32,474		32,752
Other asset-backed securities	9,573		10,042		—
Total asset-backed securities	25,249		42,516		32,752
Equity securities (excludes FHLB stock)	68		63		50
Total securities	637,839		630,604		621,177
FHLB stock	35,708		36,705		37,038
	$	780,172	$	782,237	$	801,466

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



	September 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	$	1,510	2.4	%	$	1,380	$	1,637	2.3	%
Municipal bonds:
Tax exempt	4,966		4,987		7.8		5,590		5,684		8.0
Total municipal bonds	4,966		4,987		7.8		5,590		5,684		8.0
Corporate bonds	49,507		35,095		54.9		57,807		35,741		50.2
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	11,811		12,587		19.7		16,574		17,911		25.1
Multifamily agency guaranteed	8,857		9,640		15.1		8,974		10,196		14.3
Total mortgage-backed or related securities	20,668		22,227		34.8		25,548		28,107		39.4
Equity securities	14		68		0.1		14		63		0.1
	$	76,525	$	63,887	100.0	%	$	90,339	$	71,232	100.0	%

There were 40 sales of securities—trading totaling $29.4 million with a resulting net gain of $1.5 million during the nine months ended September 30, 2013, including $1.0 million which represented recoveries on certain collateralized debt obligations that had previously been written off. There were three sales of securities—trading during the nine months ended September 30, 2012. Included in the net gain of $1.5 million was a $409,000 OTTI recovery on securities—trading related to the sale of certain equity securities issued by government-sponsored entities during the nine months ended September 30, 2013 and a $409,000 OTTI charge during the nine months ended September 30, 2012 related to these same equity securities. As of September 30, 2013 and 2012, there were no securities—trading on a nonaccrual status.

The amortized cost and estimated fair value of securities—trading at September 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.



	September 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	3,957		4,219		4,496		4,867
Due after five years through ten years	16,483		17,502		14,251		15,536
Due after ten years through twenty years	21,947		18,737		12,055		11,346
Due after twenty years	34,124		23,361		59,523		39,420
	76,511		63,819		90,325		71,169
Equity securities	14		68		14		63
	$	76,525	$	63,887	$	90,339	$	71,232

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



	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total
U.S. Government and agency obligations	$	59,217	$	173	$	(622	)	$	58,768	12.3	%
Municipal bonds:
Taxable	25,669		113		(230		)	25,552		5.4
Tax exempt	29,847		160		(244		)	29,763		6.2
Total municipal bonds	55,516		273		(474		)	55,315		11.6
Corporate bonds	9,006		13		(19		)	9,000		1.9
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	46,162		807		(940		)	46,029		9.6
One- to four-family residential other	1,025		75		—			1,100		0.2
Multifamily agency guaranteed	274,674		455		(3,285		)	271,844		57.0
Multifamily other	10,628		—		(526		)	10,102		2.1
Total mortgage-backed or related securities	332,489		1,337		(4,751		)	329,075		68.9
Asset-backed securities:
SLMA	15,576		100		—			15,676		3.3
Other asset-backed securities	10,063		—		(490		)	9,573		2.0
Total asset-backed securities	25,639		100		(490		)	25,249		5.3
	$	481,867	$	1,896	$	(6,356	)	$	477,407	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 September 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):



	September 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	$	40,637	$	(622	)	$	—	$	—		$	40,637	$	(622	)
Municipal bonds:
Taxable	17,756		(230		)	—		—			17,756		(230		)
Tax exempt	11,363		(243		)	379		(1		)	11,742		(244		)
Total municipal bonds	29,119		(473		)	379		(1		)	29,498		(474		)
Corporate bonds	4,981		(19		)	—		—			4,981		(19		)
Mortgage-backed or related securities:
One- to four-family residential agency guaranteed	4,133		(274		)	19,478		(666		)	23,611		(940		)
Multifamily agency guaranteed	194,062		(3,219		)	3,040		(66		)	197,102		(3,285		)
Multifamily other	10,102		(526		)	—		—			10,102		(526		)
Total mortgage-backed or related securities	208,297		(4,019		)	22,518		(732		)	230,815		(4,751		)
Asset-backed securities:
Other asset-backed securities	9,573		(490		)	—		—			9,573		(490		)
Total asset-backed securities	9,573		(490		)	—		—			9,573		(490		)
	$	292,607	$	(5,623	)	$	22,897	$	(733	)	$	315,504	$	(6,356	)

	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 nine months ended September 30, 2013 were $103.3 million with a resulting loss of $116,000. There were three sales of securities—available-for-sale totaling $13.3 million with a resulting gain of $38,000 during the nine months ended September 30, 2012. At September 30, 2013, there were 124 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 September 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 September 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.



	September 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	25,195	$	25,361	$	16,369	$	16,393
Due after one year through five years	301,409		298,978		205,913		207,147
Due after five years through ten years	86,050		84,906		132,372		133,407
Due after ten years through twenty years	13,219		12,856		43,386		43,414
Due after twenty years	55,994		55,306		71,610		72,559
	$	481,867	$	477,407	$	469,650	$	472,920

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



	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total Amortized Cost
U.S. Government and agency obligations	$	1,195	$	—	$	(62	)	$	1,133	1.2	%
Municipal bonds:
Taxable	10,949		237		(182		)	11,004		11.3
Tax exempt	80,583		3,080		(1,203		)	82,460		83.6
Total municipal bonds	91,532		3,317		(1,385		)	93,464		94.9
Corporate bonds	2,050		—		—			2,050		2.1
Mortgage-backed or related securities:
Multifamily agency guaranteed	1,768		—		(14		)	1,754		1.8
Total mortgage-backed or related securities	1,768		—		(14		)	1,754		1.8
	$	96,545	$	3,317	$	(1,461	)	$	98,401	100.0	%

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total Amortized Cost
Municipal bonds:
Taxable	$	10,326	$	436	$	(157	)	$	10,605	11.9	%
Tax exempt	74,076		5,757		(30		)	79,803		85.7
Total municipal bonds	84,402		6,193		(187		)	90,408		97.6
Corporate bonds	2,050		—		—			2,050		2.4
	$	86,452	$	6,193	$	(187	)	$	92,458	100.0	%

At September 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):



	September 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	$	1,133	$	(62	)	$	—	$	—	$	1,133	$	(62	)
Municipal bonds:
Taxable	5,827		(182		)	—		—		5,827		(182		)
Tax exempt	20,954		(1,203		)	—		—		20,954		(1,203		)
Total municipal bonds	26,781		(1,385		)	—		—		26,781		(1,385		)
Mortgage-backed or related securities:
Multifamily agency guaranteed	1,754		(14		)	—		—		1,754		(14		)
Total mortgage-backed or related securities	1,754		(14		)	—		—		1,754		(14		)
	$	29,668	$	(1,461	)	$	—	$	—	$	29,668	$	(1,461	)

	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		)
Total municipal bonds	$	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 nine months ended September 30, 2013 and 2012. As of September 30, 2013, there were no securities—held-to-maturity in a nonaccrual status. There were 32 securities—held-to-maturity with unrealized losses at September 30, 2013, compared to five securities at December 31, 2012. Management does not believe that any individual unrealized loss on a security as of September 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 September 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.



	September 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	3,185	$	3,201	$	3,323	$	3,410
Due after one year through five years	12,970		13,410		13,641		14,335
Due after five years through ten years	15,870		15,880		13,295		13,452
Due after ten years through twenty years	61,422		63,032		53,031		57,868
Due after twenty years	3,098		2,878		3,162		3,393
	$	96,545	$	98,401	$	86,452	$	92,458

Pledged Securities: The following table presents, as of September 30, 2013, 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	$	107,920	$	107,867	$	110,139
Interest rate swap counterparties	7,634		7,290		7,634
Retail repurchase agreements	107,307		107,366		107,307
Total pledged securities	$	222,861	$	222,523	$	225,080