Securities Available for Sale

The following is a summary of securities available for sale as of the dates indicated:


	At March 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	300	$	0	$	0		$	300
GSE collateralized mortgage obligations*		206,679		4,717		0			211,396
GSE mortgage-backed securities*		453,091		9,537		(130	)		462,498
Trust preferred security		4,491		0		(793	)		3,698
Municipal bonds		4,507		511		0			5,018

Total debt securities		669,068		14,765		(923	)		682,910
Mutual funds - GSE mortgage related securities		14,709		217		(28	)		14,898

	$	683,777	$	14,982	$	(951	)	$	697,808


	At December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Treasury	$	300	$	0	$	0		$	300
GSE collateralized mortgage obligations*		222,400		5,480		(44	)		227,836
GSE mortgage-backed securities*		477,555		10,322		(123	)		487,754
Trust preferred securities		5,532		0		(1,184	)		4,348
Municipal bonds		5,257		507		0			5,764

Total debt securities		711,044		16,309		(1,351	)		726,002
Mutual funds - GSE mortgage related securities		14,710		227		(19	)		14,918

	$	725,754	$	16,536	$	(1,370	)	$	740,920

*	As of March 31, 2012 and December 31, 2011, Government Sponsored Enterprises (GSE) included GNMA, FHLB, FNMA, FHLMC, and FFCB, and are all residential based investments.

As of March 31, 2012 and December 31, 2011, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.

The proceeds from sales of securities and the associated gains are listed below:


	For the three months ended March 31,
	2012		2011
	(In thousands)
Proceeds	$	1,883	$	0
Gross gains		816		0
Gross losses		0		0

The amortized cost and estimated fair value of debt securities at March 31, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	Amortized Cost		Estimated Fair Value
	(In thousands)
Available for sale:
Due within one year	$	300	$	300
Due after one year through five years		340		359
Due after five years through ten years		2,480		2,770
Due after ten years		6,178		5,587
GSE collaterized mortgage obligations		206,679		211,396
GSE mortgage-backed securities		453,091		462,498
Mutual funds - GSE mortgage related securities		14,709		14,898

	$	683,777	$	697,808

Securities with carrying values of approximately $398.1 million and $425.5 million at March 31, 2012 and December 31, 2011, respectively, were pledged to secure public deposits, various borrowings and for other purposes as required or permitted by law.

The following table shows our investments' gross unrealized losses and estimated fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.


At March 31, 2012	Less than 12 months							12 months or longer							Total
Description of Securities	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations		0	$	0	$	0			0	$	0	$	0			0	$	0	$	0
GSE mortgage-backed securities		6		28,148		(129	)		0		0		0			6		28,148		(129	)
Trust preferred security		0		0		0			1		3,698		(793	)		1		3,698		(793	)
Mutual funds - GSE mortgage related securities		1		5,219		(28	)		0		0		0			1		5,219		(28	)

		7	$	33,367	$	(157	)		1	$	3,698	$	(793	)		8	$	37,065	$	(950	)


At December 31, 2011	Less than 12 months							12 months or longer							Total
Description of Securities	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
	(In thousands)
GSE collaterized mortgage obligations		2	$	3,305	$	(28	)		1	$	14,007	$	(16	)		3	$	17,312	$	(44	)
GSE mortgage-backed securities		5		38,082		(123	)		0		0		0			5		38,082		(123	)
Trust preferred securities		0		0		0			1		3,303		(1,184	)		1		3,303		(1,184	)
Mutual funds - GSE mortgage related securities		1		5,229		(19	)		0		0		0			1		5,229		(19	)

		8	$	46,616	$	(170	)		2	$	17,310	$	(1,200	)		10	$	63,926	$	(1,370	)

We evaluate securities for other-than-temporary-impairment, ("OTTI") on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value of the securities has been less than our cost for the securities, and our intention to sell, or whether it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer's financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer's financial condition.

The trust preferred security at March 31, 2012 has an amortized cost of $4.5 million and an unrealized loss of $793 thousand. The trust preferred security is scheduled to mature in May 2047, with a first call date option in May 2012. Management determined this unrealized loss did not represent OTTI at March 31, 2012 as the investment is rated investment grade and there are no credit quality concerns with the obligor. The market value decline is deemed to be due to the current market volatility and is not reflective of management's expectations of our ability to fully recover this investment, which may be at maturity. Interest on the trust preferred security has been paid as agreed and management believes this will continue in the future and the trust preferred security will be repaid in full as scheduled. For these reasons, no OTTI was recognized on the trust preferred security at March 31, 2012.

We consider the losses on our investments in an unrealized loss position at March 31, 2012 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company's intention not to sell, and our determination that it is more likely than not that we will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis.