2.	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 June 30, 2011
(In Thousands)	Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses				Estimated Fair Value
Available-for-sale:
Residential mortgage-backed securities:
GSE (1) issuance REMICs and CMOs (2)		$	376,143		$	16,099		$	-			$	392,242
Non-GSE issuance REMICs and CMOs			18,611			1			(324	)			18,288
GSE pass-through certificates			26,231			1,024			(5	)			27,250
Total residential mortgage-backed securities			420,985			17,124			(329	)			437,780
Freddie Mac and Fannie Mae stock			15			10,760			(15	)			10,760
Total securities available-for-sale		$	421,000		$	27,884		$	(344	)		$	448,540
Held-to-maturity:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs		$	1,887,220		$	47,271		$	(392	)		$	1,934,099
Non-GSE issuance REMICs and CMOs			22,991			184			-				23,175
GSE pass-through certificates			611			43			-				654
Total residential mortgage-backed securities			1,910,822			47,498			(392	)			1,957,928
Obligations of GSEs			52,866			210			(68	)			53,008
Obligations of states and political subdivisions			3,148			67			-				3,215
Total securities held-to-maturity		$	1,966,836		$	47,775		$	(460	)		$	2,014,151

(1)	Government-sponsored enterprise

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

	At December 31, 2010
(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		$	490,302		$	18,931		$	-			$	509,233
Non-GSE issuance REMICs and CMOs			21,023			3			(362	)			20,664
GSE pass-through certificates			28,784			1,114			(2	)			29,896
Total residential mortgage-backed securities			540,109			20,048			(364	)			559,793
Freddie Mac and Fannie Mae stock			15			2,160			(15	)			2,160
Total securities available-for-sale		$	540,124		$	22,208		$	(379	)		$	561,953
Held-to-maturity:
Residential mortgage-backed securities:
GSE issuance REMICs and CMOs		$	1,933,650		$	47,191		$	(8,734	)		$	1,972,107
Non-GSE issuance REMICs and CMOs			40,363			352			(66	)			40,649
GSE pass-through certificates			772			51			-				823
Total residential mortgage-backed securities			1,974,785			47,594			(8,800	)			2,013,579
Obligations of GSEs			25,000			-			(468	)			24,532
Obligations of states and political subdivisions			3,999			-			-				3,999
Total securities held-to-maturity		$	2,003,784		$	47,594		$	(9,268	)		$	2,042,110

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 June 30, 2011
	Less Than Twelve Months							Twelve Months or Longer							Total
				Gross							Gross							Gross
	Estimated			Unrealized				Estimated			Unrealized				Estimated			Unrealized
(In Thousands)	Fair Value			Losses				Fair Value			Losses				Fair Value			Losses
Available-for-sale:
Non-GSE issuance REMICs and CMOs		$	534		$	(7	)		$	17,651		$	(317	)		$	18,185		$	(324	)
GSE pass-through certificates			824			(5	)			-			-				824			(5	)
Freddie Mac and Fannie Mae stock			-			-				-			(15	)			-			(15	)
Total temporarily impaired securities available-for-sale		$	1,358		$	(12	)		$	17,651		$	(332	)		$	19,009		$	(344	)
Held-to-maturity:
GSE issuance REMICs and CMOs		$	196,263		$	(392	)		$	-		$	-			$	196,263		$	(392	)
Obligations of GSEs			24,932			(68	)			-			-				24,932			(68	)
Total temporarily impaired securities held-to-maturity		$	221,195		$	(460	)		$	-		$	-			$	221,195		$	(460	)

	At December 31, 2010
	Less Than Twelve Months							Twelve Months or Longer							Total
				Gross							Gross							Gross
	Estimated			Unrealized				Estimated			Unrealized				Estimated			Unrealized
(In Thousands)	Fair Value			Losses				Fair Value			Losses				Fair Value			Losses
Available-for-sale:
Non-GSE issuance REMICs and CMOs		$	276		$	(2	)		$	19,991		$	(360	)		$	20,267		$	(362	)
GSE pass-through certificates			1,775			(2	)			-			-				1,775			(2	)
Freddie Mac and Fannie Mae stock			-			-				-			(15	)			-			(15	)
Total temporarily impaired securities available-for-sale		$	2,051		$	(4	)		$	19,991		$	(375	)		$	22,042		$	(379	)
Held-to-maturity:
GSE issuance REMICs and CMOs		$	484,366		$	(8,734	)		$	-		$	-			$	484,366		$	(8,734	)
Non-GSE issuance REMICs and CMOs			-			-				1,744			(66	)			1,744			(66	)
Obligations of GSEs			24,532			(468	)			-			-				24,532			(468	)
Total temporarily impaired securities held-to-maturity		$	508,898		$	(9,202	)		$	1,744		$	(66	)		$	510,642		$	(9,268	)

We held 41 securities which had an unrealized loss at June 30, 2011 and 59 at December 31, 2010. At June 30, 2011 and December 31, 2010, 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. 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 June 30, 2011 and December 31, 2010, 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.

Held-to-maturity debt securities, excluding mortgage-backed securities, had an amortized cost of $56.0 million and a fair value of $56.2 million at June 30, 2011. These securities have

contractual maturities in 2017 and 2018. Actual maturities will 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 $7.9 million at June 30, 2011 and $8.3 million at December 31, 2010.

At June 30, 2011, we held securities with an amortized cost of $52.9 million which are callable within one year and at various times thereafter.