Securities have been classified in the consolidated balance sheets according to management’s intent and ability as available-for-sale. The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities available-for-sale at December 31, 2012 and 2011, are summarized as follows:

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. Treasury notes/bills	$	8,009	$	2	$	—		$	8,011
U.S. government agency notes		32,570		62		(24	)		32,608
U.S. government agency mortgage-backed securities		166,133		740		(124	)		166,749
U.S. government agency collateralized mortgage obligations		162,632		768		(346	)		163,054
Municipal securities		7,887		86		(81	)		7,892
Other domestic debt securities		4,367		—		(1,640	)		2,727
Securities available-for-sale	$	381,598	$	1,658	$	(2,215	)	$	381,041

	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
U.S. Treasury notes/bills	$	45,151	$	14	$	(4	)	$	45,161
U.S. government agency notes		59,212		257		(23	)		59,446
U.S. government agency mortgage-backed securities		132,141		1,616		(82	)		133,675
U.S. government agency collateralized mortgage obligations		168,158		384		(368	)		168,174
Private label collateralized mortgage obligations		15,853		—		(2,811	)		13,042
Municipal securities		28,572		813		(60	)		29,325
Other domestic debt securities		7,151		—		(2,239	)		4,912
Securities available-for-sale	$	456,238	$	3,084	$	(5,587	)	$	453,735

The following table shows the gross unrealized losses and amortized cost of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012 and 2011. In the opinion of management, these securities are considered only temporarily impaired due to the fluctuation in market interest rates since purchase and temporary disruption in the credit markets as well as the Company’s intent and ability to hold them until fair values recover.

	At December 31, 2012
	Less Than 12 Months							Greater Than 12 Months							Total
	Amortized Cost			Unrealized Losses				Amortized Cost			Unrealized Losses				Amortized Cost			Unrealized Losses
	(in thousands)
U.S. government agency notes		$	7,572		$	(24	)		$	—		$	—			$	7,572		$	(24	)
U.S. government agency mortgage-backed securities			25,756			(124	)			—			—				25,756			(124	)
U.S. government agency collateralized mortgage obligations			67,055			(336	)			5,820			(10	)			72,875			(346	)
Municipal securities			4,953			(81	)			—			—				4,953			(81	)
Other domestic debt securities			—			—				4,367			(1,640	)			4,367			(1,640	)
		$	105,336		$	(565	)		$	10,187		$	(1,650	)		$	115,523		$	(2,215	)

	At December 31, 2011
	Less Than 12 Months					Greater Than 12 Months					Total
	Amortized Cost		Unrealized Losses			Amortized Cost		Unrealized Losses			Amortized Cost		Unrealized Losses
	(in thousands)
U.S. Treasury notes/bills	$	10,029	$	(4	)	$	—	$	—		$	10,029	$	(4	)
U.S. government agency notes		10,000		(23	)		—		—			10,000		(23	)
U.S. government agency mortgage-backed securities		40,889		(82	)		—		—			40,889		(82	)
U.S. government agency collateralized mortgage obligations		99,894		(368	)		—		—			99,894		(368	)
Private-label collateralized mortgage obligations		—		—			15,853		(2,811	)		15,853		(2,811	)
Municipal securities		4,039		(60	)		—		—			4,039		(60	)
Other domestic debt securities		—		—			7,151		(2,239	)		7,151		(2,239	)
	$	164,851	$	(537	)	$	23,004	$	(5,050	)	$	187,855	$	(5,587	)

At December 31, 2012, there were four securities that have been in a continuous unrealized loss position for 12 months or more and thirty-five securities that have been in a continuous unrealized loss position for less than 12 months. At December 31, 2011, there were five securities that have been in a continuous unrealized loss position for 12 months or more and forty-two securities that have been in a continuous unrealized loss position for less than 12 months.

On a quarterly basis, the Company evaluates its individual available-for-sale securities in an unrealized loss position for OTTI. As part of this evaluation, the Company considers whether it intends to sell each security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery of the amortized cost basis. If either of these conditions is met, the Company recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities in an unrealized loss position that meet neither of these conditions, the Company considers whether it expects to recover the entire amortized cost basis of the security by comparing its best estimate of the present value of the cash flows expected to be collected from the security with the amortized cost basis of the security. If the Company’s best estimate of the present value of the cash flows expected to be collected is less than the amortized cost basis, the difference is considered the credit loss.

For all the securities in its available-for-sale portfolio, the Company does not intend to sell any security and it is not more likely than not that the Company will be required to sell any security before its anticipated recovery of the remaining amortized cost basis.

The Company has determined that, as of December 31, 2012, all of the gross unrealized losses on its U.S. Treasury notes/bills, U.S. government agency notes, U.S. government agency mortgage-backed securities, U.S. government collateralized mortgage obligations and municipal securities are temporary because the gross unrealized losses were caused mainly by movements in interest rates and not by the deterioration of the issuers’ creditworthiness. These securities were all with credit agency ratings of at least A+ at December 31, 2012. For its U.S. Treasury notes/bills, U.S. government agency notes, U.S. government agency mortgage-backed securities and U.S. government collateralized mortgage obligations the Company expects to recover the entire amortized cost basis of these securities because it determined that the strength of the issuers’ guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses based upon current expectations. As a result, the Company expects to recover the entire amortized cost basis of these securities.

The Company owns one pooled trust preferred security, rated triple-A at purchase, with an amortized cost basis of $4.4 million and an unrealized loss of $1.6 million at December 31, 2012. The gross unrealized loss is mainly due to extraordinarily high investor yield requirements resulting from an illiquid market, causing this security to be valued at a discount to its acquisition cost. One credit rating agency has now rated the security Baa3 while another has rated the security B. The senior tranche owned by the Company has a collateral balance well in excess of the amortized cost basis of the tranche at December 31, 2012. Seventeen of the fifty-six issuers in the security have deferred or defaulted on their interest payments as of December 31, 2012. The Company’s analysis determined that approximately half of the issuers would need to default on their interest payments before the senior tranche owned by the Company would be at risk of loss. As the Company’s estimated present value of expected cash flows to be collected is in excess of the amortized cost basis, the Company considers the gross unrealized loss on this security to be temporary.

At December 31, 2012, we no longer owned any private-label CMOs. For the year ended December 31, 2012, we recognized other-than-temporary impairment charges of $689,000 on these securities. For the year ended December 31, 2011, we recognized other-than-temporary impairment charges of $1.4 million on our private-label CMOs.

The Company has committed to contribute capital of $1.0 million to participate in a community development-related investment fund whose purpose is to develop and revitalize economically depressed areas. As of December 31, 2012 and 2011, the Company had contributed capital, net of distributions, of $819,000 and $816,000, respectively. During 2012, the fund recognized impairment losses on certain investments within the fund and the Company recognized its proportionate share of those impairment losses of $39,000. The Company also recognized an impairment loss of $41,000 on this equity investment in 2010. The Company will continue to monitor the investment values within the fund at each reporting date and can provide no assurance there will not be additional impairment in future periods.

	For the Years Ended December 31,
	2012				2011			2010
	(in thousands)
Beginning balance		$	3,643			$	2,256		$	1,507
Addition of other-than-temporary impairment that was not previously recognized			—				—			120
Additional increases to the amount related to the credit loss for which an other-than-temporary impairment was previously recognized			728				1,387			664
Reduction for securities sold during the period			(2,922	)			—			(35	)
Ending balance		$	1,449			$	3,643		$	2,256

Proceeds from the sale of securities for the year ended December 31, 2012 amounted to $286.0 million resulting in gross realized gains of $6.2 million and gross realized losses of $0.5 million, respectively. Proceeds from sale of securities for the year ended December 31, 2011 were $39.0 million resulting in gross realized gains of $1.1 million and gross realized losses of $0.1 million, respectively. Proceeds from the sale of securities for the year ended December 31, 2010 were $238.0 million and resulted in gross realized gains of $2.4 million and gross realized losses of $0.4 million, respectively.

The amortized cost and estimated fair value of securities by contractual maturities are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities may mature earlier than their contractual maturities because of principal prepayments.

	At December 31, 2012
	Amortized Cost		Fair Value
	(in thousands)
Due in one year or less	$	8,009	$	8,011
Due after one year through five years		32,570		32,608
Due after five years through ten years		98,694		99,089
Due after ten years		242,325		241,333
	$	381,598	$	381,041