Securities Available-for-Sale

The following is a comparative summary of mortgage-backed securities and other securities available-for-sale at June 30, 2015, and December 31, 2014 (in thousands).



	June 30, 2015
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
Mortgage-backed securities:
Pass-through certificates:
Government sponsored enterprises (GSE)	$	259,523	$	6,710	$	1,417	$	264,816
Real estate mortgage investment conduits (REMICs):
GSE	348,813		1,081		8,378		341,516
Non-GSE	844		—		33		811
	609,180		7,791		9,828		607,143
Other securities:
Equity investments-mutual funds	329		—		—		329
Corporate bonds	32,717		25		2		32,740
	33,046		25		2		33,069
Total securities available-for-sale	$	642,226	$	7,816	$	9,830	$	640,212



	December 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	292,162	$	8,309	$	1,131	$	299,340
REMICs:
GSE	408,328		1,314		9,192		400,450
Non-GSE	1,060		—		34		1,026
	701,550		9,623		10,357		700,816
Other securities:
Equity investments-mutual funds	410		—		—		410
Corporate bonds	69,975		40		2		70,013
	70,385		40		2		70,423
Total securities available-for-sale	$	771,935	$	9,663	$	10,359	$	771,239

The following is a summary of the expected maturity distribution of debt securities available-for-sale, other than mortgage-backed securities, at June 30, 2015 (in thousands).



Available-for-sale	Amortized cost		Estimated fair value
Due in one year or less	$	27,627	$	27,639
Due after one year through five years	5,090		5,101
	$	32,717	$	32,740

Contractual maturities for mortgage-backed securities are not included above, as expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.

For the three and six months ended June 30, 2015, the Company had gross proceeds of $39.2 million on sales of securities available-for-sale, with gross realized gains of approximately $46,000 and gross realized losses of approximately $3,000. For the three and six months ended June 30, 2014, the Company had gross proceeds of $6.4 million and $7.3 million, respectively, on sales of securities available-for-sale, with gross realized gains of approximately $144,000 and $199,000, respectively, and no gross realized losses for the three and six months ended June 30, 2014. The Company recognized net losses of $50,000, and net gains of $11,000, on its trading securities portfolio during the three and six months ended June 30, 2015. The Company recognized $175,000 and $244,000, respectively, in net gains on its trading securities portfolio during the three and six months ended June 30, 2014. The Company did not recognize any other-than-temporary impairment charges during the three and six months ended June 30, 2015, or June 30, 2014.

Gross unrealized losses on mortgage-backed securities and corporate bonds available-for-sale, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2015, and December 31, 2014, were as follows (in thousands).



	June 30, 2015
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	84	$	15,157	$	1,333	$	56,575	$	1,417	$	71,732
REMICs:
GSE	18		16,860		8,360		187,705		8,378		204,565
Non-GSE	—		—		33		811		33		811
Other securities:
Corporate bonds	2		11,605		—		—		2		11,605
Total	$	104	$	43,622	$	9,726	$	245,091	$	9,830	$	288,713



	December 31, 2014
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	1	$	181	$	1,130	$	61,526	$	1,131	$	61,707
REMICs:
GSE	30		3,179		9,162		229,896		9,192		233,075
Non-GSE	—		—		34		1,026		34		1,026
Other Securities:
Corporate Bonds	2		9,996		—		—		2		9,996
Total	$	33	$	13,356	$	10,326	$	292,448	$	10,359	$	305,804

The Company held 11 pass-through mortgage-backed securities issued or guaranteed by GSEs, 12 REMIC mortgage-backed securities issued or guaranteed by GSEs, and two REMIC mortgage-backed securities not issued or guaranteed by GSEs that were in a continuous unrealized loss position of greater than twelve months at June 30, 2015. There were three pass-through mortgage-backed securities issued or guaranteed by GSEs, one REMIC mortgage-backed security issued or guaranteed by a GSE, three corporate bonds that were in an unrealized loss position of less than twelve months at June 30, 2015. All securities referred to above were rated investment grade at June 30, 2015. The declines in value relate to the general interest rate environment and are considered temporary. The securities cannot be prepaid in a manner that would result in the Company not receiving substantially all of its amortized cost. The Company neither has an intent to sell, nor is it more likely than not that the Company will be required to sell, the securities before the recovery of their amortized cost basis or, if necessary, maturity.

The fair values of our investment securities could decline in the future if the underlying performance of the collateral for the collateralized mortgage obligations or other securities deteriorates and our credit enhancement levels do not provide sufficient protections to our contractual principal and interest, which may result in other-than-temporary impairment in the future.