(3) Securities

The following tables set forth the amortized cost and estimated fair value of securities available-for-sale and held-to-maturity at the dates indicated.

	At December 31, 2012
(In Thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs (1)		$	200,152	$	5,258	$	(583)	$	204,827
Non-GSE issuance REMICs and CMOs		11,296		9		(86)		11,219
GSE pass-through certificates		20,348		1,029		(2)		21,375
Total residential mortgage-backed securities		231,796		6,296		(671)		237,421
Obligations of GSEs		98,670		214		(5)		98,879
Fannie Mae stock		15		-		(15)		-
Total securities available-for-sale		$	330,481	$	6,510	$	(691)	$	336,300
Held-to-maturity:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs		$	1,693,437	$	27,787	$	(2,955)	$	1,718,269
Non-GSE issuance REMICs and CMOs		5,791		112		-		5,903
GSE pass-through certificates		257		6		(1)		262
Total residential mortgage-backed securities		1,699,485		27,905		(2,956)		1,724,434
Other		656		-		-		656
Total securities held-to-maturity		$	1,700,141	$	27,905	$	(2,956)	$	1,725,090

(1) Real estate mortgage investment conduits and collateralized mortgage obligations

	At December 31, 2011
(In Thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs		$	286,862	$	11,759	$	(1)	$	298,620
Non-GSE issuance REMICs and CMOs		16,092		-		(297)		15,795
GSE pass-through certificates		24,168		1,026		(2)		25,192
Total residential mortgage-backed securities		327,122		12,785		(300)		339,607
Freddie Mac and Fannie Mae stock		15		4,580		(15)		4,580
Total securities available-for-sale		$	327,137	$	17,365	$	(315)	$	344,187
Held-to-maturity:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs		$	2,054,380	$	45,929	$	(146)	$	2,100,163
Non-GSE issuance REMICs and CMOs		15,105		92		(1)		15,196
GSE pass-through certificates		475		24		-		499
Total residential mortgage-backed securities		2,069,960		46,045		(147)		2,115,858
Obligations of GSEs		57,868		140		-		58,008
Obligations of states and political subdivisions		2,976		83		-		3,059
Total securities held-to-maturity		$	2,130,804	$	46,268	$	(147)	$	2,176,925

Our securities portfolio is comprised primarily of fixed rate mortgage-backed securities guaranteed by a GSE as issuer. Substantially all of our non-GSE issuance securities are investment grade securities and they have performed similarly to our GSE issuance securities. Credit quality concerns have not significantly impacted the performance of our non-GSE securities or our ability to obtain reliable prices.

The following tables set forth the estimated fair values of securities with gross unrealized losses at the dates indicated, segregated between securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer at the dates indicated.

	At December 31, 2012
	Less Than Twelve Months						Twelve Months or Longer					Total
(In Thousands)		Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Available-for-sale:
GSE issuance REMICs and CMOs		$	67,841	$	(583	)	$	-	$	-		$	67,841	$	(583	)
Non-GSE issuance REMICs and CMOs		-		-			10,709		(86		)	10,709		(86		)
GSE pass-through certificates		57		(1		)	47		(1		)	104		(2		)
Obligations of GSEs		24,995		(5		)	-		-			24,995		(5		)
Fannie Mae stock		-		-			-		(15		)	-		(15		)
Total temporarily impaired securities available-for-sale		$	92,893	$	(589	)	$	10,756	$	(102	)	$	103,649	$	(691	)
Held-to-maturity:
GSE issuance REMICs and CMOs		$	413,651	$	(2,759	)	$	12,259	$	(196	)	$	425,910	$	(2,955	)
GSE pass-through certificates		48		(1		)	-		-			48		(1		)
Total temporarily impaired securities held-to-maturity		$	413,699	$	(2,760	)	$	12,259	$	(196	)	$	425,958	$	(2,956	)

	At December 31, 2011
	Less Than Twelve Months						Twelve Months or Longer					Total
(In Thousands)		Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Available-for-sale:
GSE issuance REMICs and CMOs		$	360	$	(1	)	$	-	$	-		$	360	$	(1	)
Non-GSE issuance REMICs and CMOs		495		(21		)	15,261		(276		)	15,756		(297		)
GSE pass-through certificates		623		(2		)	-		-			623		(2		)
Freddie Mac and Fannie Mae stock		-		-			-		(15		)	-		(15		)
Total temporarily impaired securities available-for-sale		$	1,478	$	(24	)	$	15,261	$	(291	)	$	16,739	$	(315	)
Held-to-maturity:
GSE issuance REMICs and CMOs		$	53,347	$	(146	)	$	-	$	-		$	53,347	$	(146	)
Non-GSE issuance REMICs and CMOs		1,247		(1		)	-		-			1,247		(1		)
Total temporarily impaired securities held-to-maturity		$	54,594	$	(147	)	$	-	$	-		$	54,594	$	(147	)

We held 41 securities which had an unrealized loss at December 31, 2012 and 36 at December 31, 2011. At December 31, 2012 and 2011, substantially all of the securities in an unrealized loss position had a fixed interest rate and the cause of the temporary impairment is directly related to the change in interest rates. In general, as interest rates rise, the fair value of fixed rate securities will decrease; as interest rates fall, the fair value of fixed rate securities will increase. Although, during this period of historic low interest rates, securities backed by fixed rate residential mortgage loans with above market interest rates have experienced accelerated rates of prepayments as interest rates have declined which has resulted in a decline in the estimated life of these securities and a decline in fair value. We generally view changes in fair value caused by changes in interest rates as temporary, which is consistent with our experience. None of the unrealized losses are related to credit losses. Therefore, at December 31, 2012 and 2011, the impairments are deemed temporary based on (1) the direct relationship of the decline in fair value to movements in interest rates, (2) the estimated remaining life and high credit quality of the investments and (3) the fact that we do not intend to sell these securities and it is not more likely than not that we will be required to sell these securities before their anticipated recovery of the remaining amortized cost basis and we expect to recover the entire amortized cost basis of the security.

During the year ended December 31, 2012, proceeds from sales of securities from the available-for-sale portfolio totaled $60.3 million resulting in gross realized gains of $8.5 million. There were no sales of securities from the available-for-sale portfolio during the years ended December 31, 2011 and 2010.

Available-for-sale debt securities, excluding mortgage-backed securities, had an amortized cost of $98.7 million and a fair value of $98.9 million at December 31, 2012. Held-to-maturity debt securities, excluding mortgage-backed securities, had an amortized cost and an estimated fair value of $656,000 at December 31, 2012. These securities have contractual maturities in 2020 through 2022. Actual maturities may differ from contractual maturities because issuers may have the right to prepay or call obligations with or without prepayment penalties.

The balance of accrued interest receivable for securities totaled $5.7 million at December 31, 2012 and $7.5 million at December 31, 2011.

At December 31, 2012, we held securities with an amortized cost of $98.7 million which are callable within one year and at various times thereafter.