Securities

9 Months Ended

Sep. 30, 2011

Note 4 — Securities

The amortized cost and estimated fair value of securities available-for-sale were as follows:


	As of September 30, 2011
			Gross		Gross
			unrealized		unrealized			Estimated
	Amortized cost		holding gains		holding losses			fair value
	(In Thousands)
Municipal obligations	$	626	$	11	$	—		$	637
Collateralized mortgage obligations — government agencies		163,773		3,782		(62	)		167,493
Collateralized mortgage obligations — government-sponsored enterprises		175		2		—			177

	$	164,574	$	3,795	$	(62	)	$	168,307


	As of December 31, 2010
			Gross		Gross
			unrealized		unrealized			Estimated
	Amortized cost		holding gains		holding losses			fair value
	(In Thousands)
Collateralized mortgage obligations — government agencies	$	149,948	$	3,255	$	(427	)	$	152,776
Collateralized mortgage obligations — government-sponsored enterprises		591		12		—			603

	$	150,539	$	3,267	$	(427	)	$	153,379

Collateralized mortgage obligations — government agencies represent securities guaranteed by the Government National Mortgage Association. Collateralized mortgage obligations — government-sponsored enterprises include securities guaranteed by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. Municipal obligations include securities issued by various municipalities located within the State of Wisconsin and are tax-exempt general obligation bonds.

The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at September 30, 2011 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations without call or prepayment penalties.


			Estimated
	Amortized Cost		Fair Value
	(In Thousands)

Due in one year or less	$	—	$	—
Due in one year through five years		421		432
Due in five through ten years		1,934		1,994
Due in over ten years		162,219		165,881

	$	164,574	$	168,307

The table below shows the Corporation’s gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual investments were in a continuous unrealized loss position at September 30, 2011 and December 31, 2010. At September 30, 2011 and December 31, 2010, the Corporation had four out of 148 securities and 17 out of 133 securities that were in an unrealized loss position, respectively. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At September 30, 2011, the Corporation did not hold any securities that had been in a continuous loss position for twelve months or greater. The Corporation also has not specifically identified securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. It is expected that the Corporation will recover the entire amortized cost basis of each security based upon an evaluation of the present value of the expected future cash flows. Accordingly, no other than temporary impairment was recorded in the consolidated results of operations for the three and nine months ended September 30, 2011 and 2010.

A summary of unrealized loss information for available-for-sale securities, categorized by security type follows:


	As of September 30, 2011
	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized				Unrealized
	Fair value		losses		Fair value		losses		Fair value		losses
	(In Thousands)
Collateralized mortgage obligations — government agencies	$	8,467	$	62	$	—	$	—	$	8,467	$	62

	$	8,467	$	62	$	—	$	—	$	8,467	$	62


	As of December 31, 2010
	Less than 12 months				12 months or longer				Total
			Unrealized				Unrealized				Unrealized
	Fair value		losses		Fair value		losses		Fair value		losses
	(In Thousands)
Collateralized mortgage obligations — government agencies	$	31,862	$	427	$	—	$	—	$	31,862	$	427

	$	31,862	$	427	$	—	$	—	$	31,862	$	427

There were no sales of securities available for sale in the three and nine month periods ended September 30, 2011 and 2010.

At September 30, 2011 and December 31, 2010, securities with a fair value of $22.5 million and $30.8 million, respectively, were pledged to secure interest rate swap contracts and outstanding Federal Home Loan Bank (FHLB) advances. Securities pledged also provide for future availability for additional advances from the FHLB.