WSB (WSB) CORRESP Correspondence with SEC

January 14, 2011

United States Securities and Exchange Commission

100 F Street, N.E.

Washington, DC 20549

ATTN: Hugh West

Re:WSB Holdings, Inc.

Form 10-K for the Fiscal Year Ended December 31, 2009

Form 10-Q for the Quarterly Period Ended June 30, 2010

Form 10-Q for the Quarterly Period Ended September 30, 2010

File No.: 000-53003

Dear Mr. West:

We have reviewed your letter dated December 14, 2010.  The numbered responses below correspond to the numbered comments in your letter.

1.In response to your comment, we have provided a listing of all MBS, including other pass through certificates, that: details the amortized cost and fair values; includes a schedule showing the length of time each security has been in an unrealized loss position; and shows the security credit rating, for the periods ending September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009.  Please note that with respect to such listing:

·The estimated future defaults are derived by an analysis of the performance of the underlying collateral as well as obtaining models from a third party on a quarterly basis.  The model addresses each component of the net present value calculation. As per our conversation on January 11, 2011, the Bloomberg models provided that we use for our analysis cannot be Edgarized, therefore, per your instruction, we are providing this information for the quarter ending June 30, 2010 via email to you for each individual security.  This process is done for each security at each calendar quarter end.

·Pursuant to this analysis, management reviews each individual security by obtaining Bloomberg screens for each security and for our tranche within the security on a quarterly basis. The Bloomberg screens provided include the current information of the underlining performance of the collateral including the Current Default Rate (“CDR”), Loss Severity Rate (“SEV”), and Voluntary Prepayment Rate (“VPR”), which measures we defined in our previous response letter dated August 25, 2010.  Management reviews this current information to see if there are any underlying trends with the assumption that the current performance is believed to be the best indicator of future collateral performance.  The collateral performance obtained from these Bloomberg screens for each tranche within the security is reviewed to determine the likelihood there will be a credit loss based on the collateral

performance. If there has not been any loans in default for a period of time and there are no serious delinquencies, we determine that there is no current OTTI.  If however, there is some stress in the underlying collateral (evidenced by losses in the most recent periods and some level of current delinquencies), and considering management’s general knowledge of the trends in the residential mortgage markets, which takes into account current economic conditions and negative credit trends, management determines projected future CDR, SEV and VPR figures, which we then provide to our third party brokerage firm for input into their model.  Using these new assumptions, the model determines the future credit loss and the projected loss is then discounted back to the present value based on the current book yield of the investment.

Refer to email for Exhibits:

See Exhibit #1 thru Exhibit #6.  Based on information at June 30, 2010, the current performance of six securities were determined to be unlikely to suffer a credit loss.  These six securities showed no delinquencies within the tranche we own and the SEV and CDR reflected zero at June 30, 2010.

See Exhibit #7 and Exhibit #8.  At June 30, 2010, Exhibit #7, security FHASI 2006-1 and Exhibit #8, security CWALT 2005-57CB were deemed likely to suffer a credit loss, therefore, we used the following process to put into the model.   As in the prior quarters we enhanced the assumption for the CWALT 2005- 57CB to enhance the model being used to better reflect a long term scenario of slow but long term economic recovery.  As opposed to holding the CDR and the SEV constant we showed these as improving over time using the following assumption.  The CDR was held at 2.9 for six months (this was the current three month average) then improved from that point to .56 over the next 12 months. From that point it would remain at .56, which we believe to be a normal default rate for a mature pool of loans and is the average net charge off rate of 1-4 family loans between 2003 and 2009 as reported by the FDIC.  The SEV started at 60% and ramped down to 51% in the first six months.  (60% is the current six month average, which is higher than the three month average and 51% is the current 12 month average.) The SEV was then decreased to 50% and held constant after the initial six months.  (Note that as the loans in the pool continue to pay there continues to be principal reduction before a default occurs which is why the SEV was decreased to 50%.)  The results of these scenarios for the CWALT is a price of 91.1757, which is higher than price once the current OTTI is taken and the results for the FHASI is a price of 99.7654 which is less than $3,000 valuation difference.

·There are no actual deferral assumptions in the private labeled mortgage-backed securities that we currently own, therefore, no future deferrals are built into the analysis.  The unrealized losses are reported as a component of other comprehensive income and are driven by market illiquidity causing price deterioration.

2

·Please note that our primary regulator, the Office of Thrift Supervision (“OTS”) has reviewed, and not objected to, our analysis in this regard during their most recent on-site examination for the period ended June 30, 2010 and September 30, 2010. To our knowledge, the OTS analyst performed their own analysis and found our methodology to be appropriate for both 2009 and 2010.

·As of September 30, 2010, the analysis shows that the Bank would have to recognize an additional OTTI of $160,400 based on the deterioration in the collateral of the security. Subsequent September 30, 2010 but prior to filing our Form 10-Q for the period ended September 30, 2010, however, management decided to sell the security. The value as of October 31, 2010 was used to determine OTTI charge, and we wrote down the asset to $995,804, resulting in an OTTI charge of $2.9 million. This security was subsequently sold.for the $995,804.

2.As you noted, we sold a MBS classified as held-to-maturity during the period ending September 30, 2010.  The decision to sell the security was based, in part, on discussions with a broker who suggested that the expected remaining life was within the acceptable period (90 days) to sell without tainting the held to maturity portfolio.  Our subsequent research, based on the Staff’s comments, has indicated that the actual expected remaining life was June 2011, which exceeds the 90 day safe harbor. This was an isolated, non-recurring, unusual event for WSB based on short term projections and prepayment speeds based on information that existed on this one security at the time of sale. The remaining investment securities classified as held to maturity as of September 30, 2010 have all since been called and as of December 31, 2010, we have no investment securities classified as held to maturity.

WSB hereby acknowledges the following:

·WSB is responsible for the adequacy and accuracy of the disclosure of the filing;

·staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with the respect to the filing; and

·WSB may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

You may contact Carol Ramey at 240-544-2011 or Kevin Huffman, President/Chief Operating Officer at 301-352-3120 if you have additional questions regarding the information supplied.

Sincerely,

Carol A. Ramey

Chief Financial Officer

3

Cusip	Major Type	Type	Acct	Description	Par Value
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	3,085,677
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	5,300,910
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	9,710,734
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	5,391,856
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	2,862,334
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	4,834,730
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	1,943,854
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	14,403,742
as of 12/31/09				Non-Agency CMO Portfolio Totals	47,533,837
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	3,958,446
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	1,938,448
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4,521,828
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	8,537,152
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	1,757,729
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	312,683
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2	1,025,175
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2	642,072
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	2,077,126
31395XYH2	CMO	CMO	AFS	FHR 3020 VA	6,243,971
31395MW62	CMO	CMO	AFS	FHL2938 EA	1,598,518
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	2,877,119
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	6,793,509
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	3,960,594
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	7,680,999
					53,925,368
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step	2,140,000
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step	3,000,000
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	1,094,950
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	1,872,476
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1	2,091,650
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	3,418,211
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	6,517,409
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	1,241,411
3133XEX79	CMO	CMO	AFS	FHB7R18 A	6,269,189
					27,645,296
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	1,585,000
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	700,000
					2,285,000

Cusip	Major Type	Type	Acct	Description	Coupon	Maturity	Book Price	Avg Life	Book Value
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	5.270	01/25/2035	99.13	6.35	3,058,798
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	5.500	01/25/2021	99.81	2.45	5,290,829
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	5.500	09/25/2022	100.00	1.47	9,710,734
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	5.500	12/25/2022	100.38	1.54	5,412,138
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	5.000	08/25/2035	99.50	1.96	2,848,001
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	5.500	12/25/2035	99.04	6.73	4,788,492
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	5.750	05/25/2036	100.01	0.52	1,943,972
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	6.000	07/25/2037	99.76	1.44	14,369,119
as of 12/31/09				Non-Agency CMO Portfolio Totals					47,422,083
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	4.500	11/01/2015	99.36	2.16	3,932,969
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	5.000	12/01/2015	99.84	1.98	1,935,374
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4.500	04/01/2024	102.57	4.52	4,638,099
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	5.000	08/01/2028	102.99	4.75	8,792,632
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	6.500	06/20/2038	100.07	1.06	1,759,032
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	6.500	09/20/2038	100.00	1.03	312,683
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2	7.371	03/15/2010	100.00	0.07	1,025,175
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2	7.371	03/15/2010	100.00	0.07	642,072
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	6.387	10/15/2011	96.94	1.54	2,013,567
31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5.500	11/15/2014	100.10	2.35	6,250,131
31395MW62	CMO	CMO	AFS	FHL2938 EA	5.000	08/15/2021	99.95	0.81	1,597,789
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	5.750	06/15/2033	100.00	0.27	2,877,119
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	5.750	06/15/2033	100.00	0.27	6,793,509
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	6.000	02/15/2037	100.01	1.12	3,960,861
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	6.000	06/15/2037	100.01	0.38	7,681,884
									54,212,896
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step	3.250	10/14/2016	100.00	2.79	2,140,000
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step	3.000	10/13/2017	100.00	1.79	3,000,000
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.910	04/28/2015	98.52	3.16	1,078,694
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	5.250	07/28/2015	99.13	3.08	1,856,099
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1	5.140	08/18/2015	99.11	2.88	2,072,947
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	5.065	10/20/2015	99.31	3.60	3,394,590
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	5.460	11/27/2015	99.52	3.50	6,485,935
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	5.460	11/27/2015	99.51	3.50	1,235,334
3133XEX79	CMO	CMO	AFS	FHB7R18 A	5.770	03/23/2018	100.40	3.45	6,294,083
									27,557,682
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400	07/01/2021	100.64	4.00	1,595,216
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400	07/01/2021	100.65	4.00	704,518
									2,299,734

Cusip	Major Type	Type	Acct	Description	Mkt BEY	Mkt Price	Price Source	Price Date	Book Profit/Loss
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	8.454	82.81	IDC	12/31/2009	(503,405	)
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	8.983	92.75	IDC	12/31/2009	(374,235	)
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	22.384	80.75	IDC	12/31/2009	(1,869,316	)
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	12.438	90.75	IDC	12/31/2009	(519,028	)
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	7.369	95.61	IDC	12/31/2009	(111,341	)
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	15.864	63.33	IDC	12/31/2009	(1,726,664	)
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	10.885	97.17	IDC	12/31/2009	(55,218	)
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	19.692	85.40	IDC	12/31/2009	(2,068,438	)
as of 12/31/09				Non-Agency CMO Portfolio Totals					(7,227,647	)
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	2.730	103.39	IDC	12/31/2009	159,589
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	2.703	104.06	IDC	12/31/2009	81,677
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	3.759	102.89	IDC	12/31/2009	14,229
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	4.162	103.35	IDC	12/31/2009	30,856
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	1.255	105.12	IDC	12/31/2009	88,729
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	1.133	105.12	IDC	12/31/2009	16,016
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2	3.538	99.97	IDC	12/31/2009	(351	)
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2	3.538	99.97	IDC	12/31/2009	(220	)
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	2.969	104.90	IDC	12/31/2009	165,370
31395XYH2	CMO	CMO	AFS	FHR 3020 VA	2.597	106.39	IDC	12/31/2009	392,871
31395MW62	CMO	CMO	AFS	FHL2938 EA	1.226	102.84	IDC	12/31/2009	46,120
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	2.449	100.68	IDC	12/31/2009	19,532
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	2.449	100.68	IDC	12/31/2009	46,119
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	7.211	98.64	IDC	12/31/2009	(54,229	)
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	5.611	99.94	IDC	12/31/2009	(5,747	)
									1,000,560
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step	3.580	99.36	IDC	12/31/2009	(13,782	)
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step	3.838	98.56	IDC	12/31/2009	(43,110	)
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.960	100.00	S&P	12/22/2009	16,256
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	3.267	105.75	TRADER	12/22/2009	124,045
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1	2.750	106.52	IDC	12/31/2009	154,982
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	3.647	104.77	S&P	12/22/2009	186,772
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	3.718	105.67	IDC	12/31/2009	401,133
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	3.718	105.67	IDC	12/31/2009	76,489
3133XEX79	CMO	CMO	AFS	FHB7R18 A	4.454	104.12	S&P	12/22/2009	233,523
									1,136,308
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	3.414	103.23	MATRIX	12/31/2009	40,986
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	3.414	103.23	MATRIX	12/31/2009	18,095
									59,081

					RATINGS
Cusip	Major Type	Type	Acct	Description	Fitch	S & P	Moody
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	na	AA	Aa2
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	CCC	B-	NA
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	AAA	BB	NA
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	CCC	na	B3
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	A	AAA	na
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	CCC	na	na
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	AA	AA-	na
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	CCC	CCC	na
as of 12/31/09				Non-Agency CMO Portfolio Totals
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2
617059JH4	CMO	CMO	HTM	JPMC 2000-C10 A2
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3
31395XYH2	CMO	CMO	AFS	FHR 3020 VA
31395MW62	CMO	CMO	AFS	FHL2938 EA
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A
3133XEX79	CMO	CMO	AFS	FHB7R18 A
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE

OTHER THAN TEMPORARY IMPAIRMENT ANALYSIS

Price

Value

Value

Unrealized G/L

Cusip

Major Type

Type

Acct

Description

CPR

CDR

Severity

Book Yield

Book Price

Bloomberg

Difference

Book

Credit

Dec-09

MBS-private labeled

576433XG6

CMO

ARM

AFS

MARM SER 1 9A1

16.2

0.77

13

4.761

%

99.069

104.2505

5.182

3,058,798

158,492

(503,406

)

362334DS0

CMO

CMO

AFS

GSR SER 2F 7A1

13.5

0.53

50

5.525

%

99.759

99.7484

(0.011

)

5,290,829

(561

)

(374,235

)

74958VAC2

CMO

CMO

AFS

RFMSI SER S9 2A1

**

(1,869,316

)

17313VAD9

CMO

CMO

AFS

CMS07009 2A1

53.9

2.08

41

5.248

%

100.535

99.9568

(0.578

)

5,412,138

(31,293

)

(519,028

)

76111XXJ7

CMO

CMO

AFS

RFMSI 2005 S6 A1

**

(111,341

)

12668AYT6

CMO

CMO

AFS

CWA0557C 4A4

17.1

3.5

38

5.686

%

98.969

93.177

(5.792

)

4,788,492

(277,349

)*

(1,726,664

)

32051G2C8

CMO

CMO

AFS

FHASI 2006 1 1A5

**

(55,218

)

362669AV5

CMO

CMO

AFS

GSR SER 4F 6A1

22.5

3.14

31

6.053

%

99.643

99.657

0.014

14,369,119

2,012

(2,068,438

)

as of 12/31/09

Non-Agency CMO Portfolio Totals

MBS

31371MLY1

MBS

10 Year

AFS

FNMA Pool #256043

159,589

31371MLZ8

MBS

10 Year

AFS

FNMA Pool #256044

81,677

3128MMKU6

MBS

15 Year

AFS

FHLMC Pool #G18306

14,229

3128CUPT7

MBS

20 Year

AFS

FHLMC Pool #G30434

30,856

36202ETW9

MBS

30 Year

AFS

GNMA II Pool #4165

88,728

36202EV97

MBS

30 Year

AFS

GNMA II Pool #4240

16,016

617059JH4

CMO

CMO

HTM

JPMC 2000-C10 A2

(351

)

617059JH4

CMO

CMO

HTM

JPMC 2000-C10 A2

(220

)

22540VNJ7

CMO

CMO

HTM

CSF01CK6 A3

165,370

31395XYH2

CMO

CMO

AFS

FHR 3020 VA

392,871

31395MW62

CMO

CMO

AFS

FHL2938 EA

46,120

31397BXT3

CMO

CMO

AFS

FHLMC REMIC SER 3224 MG

19,532

31397BXT3

CMO

CMO

AFS

FHLMC REMIC SER 3224 MG

46,119

31397F4E9

CMO

CMO

AFS

FHLMC REMIC SER 3276 C

(54,229

)

31397RXY7

CMO

CMO

AFS

FHLMC REMIC SER 3427 HE

(5,747

)

Agency

3128X9GA2

Agency

Agency

AFS

Fed Home Ln Mtg Corp Step

(13,782

)

3133XUWG4

Agency

Agency

AFS

Fed Home Ln Bk Step

(43,110

)

3133XBRJ6

CMO

CMO

AFS

FHLB QB-2015 1

16,256

3133XCQE6

CMO

CMO

AFS

FHLB SD-2015 1

124,045

3133XCT60

CMO

CMO

AFS

FHLB SK-2015 1

154,982

3133XDDQ1

CMO

CMO

AFS

FHLB TQ-2015 A

186,772

3133XDZ20

CMO

CMO

AFS

FHLB VN-2015 A

76,489

3133XDZ20

CMO

CMO

AFS

FHLB VN-2015 A

401,133

3133XEX79

CMO

CMO

AFS

FHB7R18 A

233,523

Muni Bonds

57419NF74

Municipal

Municip

AFS

MARYLAND ST CMNTY DEV ADMIN DE

40,986

57419NF74

Municipal

Municip

AFS

MARYLAND ST CMNTY DEV ADMIN DE

18,095

* already taken a $692,779 charge

Note: no impact to future cash flows based on current performance of the collateral for each cusip (**).  Current market pricing is due to other factors then credit risk factors in each of these securities

Cusip	Major Type	Type	Acct	Description	Par Value
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	2,911,512
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	5,062,501
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	9,021,974
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	5,038,970
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	2,650,677
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	4,693,012
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	1,406,272
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	12,576,175
as of 03/31/10				Non-Agency CMO Portfolio Totals	43,361,093
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	3,667,590
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	1,780,370
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4,310,078
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	7,958,482
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	1,561,458
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	243,074
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	2,063,853
31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5,963,123
31395MW62	CMO	CMO	AFS	FHL2938 EA	1,254,256
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	1,194,093
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	2,819,516
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	1,946,907
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	7,150,108
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	4,158,297
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	415,830
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	1,808,834
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	1,418,693
83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	1,341,759
					51,056,321
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step	2,140,000
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step	3,000,000
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	1,051,200
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	1,786,057
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1	1,967,601
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	3,253,329
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	1,185,123
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	6,221,894
3133XEX79	CMO	CMO	AFS	FHB7R18 A	5,942,897
					26,548,100
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	1,585,000
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	700,000
					2,285,000

Cusip	Major Type	Type	Acct	Description	Coupon	Step Cpn	Bk Yld Worst	Book Price	Avg Life	Book Value
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	5.249		4.523	99.16	6.10	2,887,010
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	5.500		5.455	99.83	2.06	5,053,975
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	5.500		5.247	100.00	1.24	9,021,974
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	5.500		5.011	100.31	1.31	5,054,389
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	5.000		5.113	99.58	1.61	2,639,449
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	5.500		5.676	99.07	6.46	3,956,736
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	5.750		4.310	100.00	0.26	1,406,308
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	6.000		5.902	99.80	1.32	12,551,305
as of 03/31/10				Non-Agency CMO Portfolio Totals						42,571,146
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	4.500		4.689	99.43	2.03	3,646,619
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	5.000		4.937	99.86	1.85	1,777,895
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4.500		3.858	102.43	4.43	4,414,988
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	5.000		4.261	102.85	4.58	8,185,035
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	6.500		6.187	100.06	1.13	1,562,376
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	6.500		6.239	100.00	1.10	243,074
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	6.387		8.433	97.44	1.29	2,011,108
31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5.500		5.415	100.09	2.25	5,968,384
31395MW62	CMO	CMO	AFS	FHL2938 EA	5.000		4.763	99.97	0.60	1,253,904
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	5.750		3.185	100.00	0.09	1,194,093
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	5.750		3.185	100.00	0.09	2,819,516
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	6.000		5.650	100.00	0.59	1,946,992
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	6.000		4.968	100.00	0.22	7,150,337
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	5.490		4.739	105.83	10.34	4,400,903
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	5.490		4.739	105.83	10.34	440,090
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	5.370		4.702	105.32	10.64	1,905,082
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	5.370		4.672	105.57	10.64	1,497,712
83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	5.600		4.804	106.32	10.69	1,426,549
										51,844,657
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step	3.250		3.202	100.00	0.04	2,140,000
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step	3.000		2.959	100.00	0.04	3,000,000
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.910		5.483	98.64	2.98	1,036,857
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	5.250		5.613	99.20	3.04	1,771,682
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1	5.140		5.519	99.18	2.92	1,951,457
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	5.065		5.342	99.36	3.30	3,232,441
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	5.460		5.681	99.55	3.34	1,179,735
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	5.460		5.678	99.55	3.34	6,193,992
3133XEX79	CMO	CMO	AFS	FHB7R18 A	5.770		5.711	100.37	3.43	5,964,775
										26,470,939
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400		4.200	100.60	3.75	1,594,444
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400		4.200	100.60	3.75	704,176
										2,298,620

Cusip	Major Type	Type	Acct	Description	Mkt BEY	Mkt Price	Price Source	Price Date	Book Profit/Loss
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	7.645	86.08	IDC	03/31/2010	(380,710	)
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	8.844	93.95	IDC	03/31/2010	(297,598	)
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	23.955	81.95	IDC	03/31/2010	(1,628,185	)
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	12.441	91.95	IDC	03/31/2010	(420,899	)
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	7.462	96.16	IDC	03/31/2010	(90,657	)
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	15.433	65.20	IDC	03/31/2010	(897,029	)
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	13.969	97.61	IDC	03/31/2010	(33,618	)
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	20.148	86.23	IDC	03/31/2010	(1,706,895	)
as of 03/31/10				Non-Agency CMO Portfolio Totals					(5,455,591	)
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	2.444	103.74	IDC	03/31/2010	158,102
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	2.402	104.33	IDC	03/31/2010	79,565
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	3.497	103.86	IDC	03/31/2010	61,459
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	3.937	104.14	IDC	03/31/2010	103,167
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	0.361	106.54	IDC	03/31/2010	101,264
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	0.232	106.54	IDC	03/31/2010	15,907
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	2.084	105.22	IDC	03/31/2010	160,438
31395XYH2	CMO	CMO	AFS	FHR 3020 VA	2.191	107.02	IDC	03/31/2010	413,366
31395MW62	CMO	CMO	AFS	FHL2938 EA	0.492	102.50	IDC	03/31/2010	31,765
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	1.683	100.13	IDC	03/31/2010	1,539
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	1.683	100.13	IDC	03/31/2010	3,635
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	5.747	99.95	IDC	03/31/2010	(1,065	)
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	-0.275	101.15	IDC	03/31/2010	82,100
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	4.618	106.81	IDC	03/31/2010	40,699
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	4.618	106.81	IDC	03/31/2010	4,070
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	4.504	106.97	IDC	03/31/2010	29,810
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	4.504	106.97	IDC	03/31/2010	19,850
83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	4.666	107.47	IDC	03/31/2010	15,427
									1,321,098
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step	0.744	100.10	IDC	03/31/2010	2,076
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step	0.391	100.09	IDC	03/31/2010	2,820
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.960	100.00	S&P	03/24/2010	14,343
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	3.199	105.88	TRADER	03/24/2010	119,306
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1	2.394	107.63	IDC	03/31/2010	166,262
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	3.574	104.62	S&P	03/24/2010	171,257
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	3.183	107.14	IDC	03/31/2010	90,013
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A	3.183	107.14	IDC	03/31/2010	472,183
3133XEX79	CMO	CMO	AFS	FHB7R18 A	3.330	107.67	S&P	03/24/2010	434,001
									1,472,262
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	3.474	102.82	MATRIX	03/31/2010	35,261
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	3.474	102.82	MATRIX	03/31/2010	15,567
									50,828

					RATINGS
Cusip	Major Type	Type	Acct	Description	Fitch	S & P	Moody
MBS-private labeled
576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	na	BB-	B3
362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	CCC	CCC	NA
74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	AAA	CCC	NA
17313VAD9	CMO	CMO	AFS	CMS07009 2A1	CC	na	B3*-
76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	A	BBB	na
12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	CC	na	na
32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	AA	A	na
362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	CCC	CCC	na
as of 03/31/10				Non-Agency CMO Portfolio Totals
MBS
31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043
31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044
3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306
3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434
36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165
36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240
22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3
31395XYH2	CMO	CMO	AFS	FHR 3020 VA
31395MW62	CMO	CMO	AFS	FHL2938 EA
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG
31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG
31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C
31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1
83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1
83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1
83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1
Agency
3128X9GA2	Agency	Agency	AFS	Fed Home Ln Mtg Corp Step
3133XUWG4	Agency	Agency	AFS	Fed Home Ln Bk Step
3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1
3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1
3133XCT60	CMO	CMO	AFS	FHLB SK-2015 1
3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A
3133XDZ20	CMO	CMO	AFS	FHLB VN-2015 A
3133XEX79	CMO	CMO	AFS	FHB7R18 A
Muni Bonds
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE
57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE

OTHER THAN TEMPORARY IMPAIRMENT ANALYSIS

Price

Value

Value

Mar-10

Cusip

Major Type

Type

Acct

Description

CPR

CDR

Severity

Book Yield

Book Price

Bloomberg

Difference

Book

Credit

Unrealized G/L

MBS-private labeled

576433XG6

CMO

ARM

AFS

MARM SER 1 9A1

27

8.3

50

4.761

%

99.069

99.07

0.001

3,857,214

39

**

(380,710

)

362334DS0

CMO

CMO

AFS

GSR SER 2F 7A1

17.1

2.8

40

5.525

%

99.759

99.684

(0.075

)

5,776,531

(4,332

)**

(297,598

)

74958VAC2

CMO

CMO

AFS

RFMSI SER S9 2A1

**

(1,628,185

)

17313VAD9

CMO

CMO

AFS

CMS07009 2A1

15.5

4.2

50

5.248

%

100.535

97.875

(2.660

)

7,067,882

(188,006

)

(420,899

)

76111XXJ7

CMO

CMO

AFS

RFMSI 2005 S6 A1

.

**

(90,657

)

12668AYT6

CMO

CMO

AFS

CWA0557C 4A4

13

1.3

50

5.686

%

98.969

99.035

0.066

5,280,255

3,485

*

(1,589,828

)

32051G2C8

CMO

CMO

AFS

FHASI 2006 1 1A5

**

(33,618

)

362669AV5

CMO

CMO

AFS

GSR SER 4F 6A1

17.9

1

40

6.053

%

99.664

99.664

0.000

17,263,968

0

**

(1,706,895

)

as of 03/31/10

Non-Agency CMO Portfolio Totals

MBS

31371MLY1

MBS

10 Year

AFS

FNMA Pool #256043

158,102

31371MLZ8

MBS

10 Year

AFS

FNMA Pool #256044

79,565

3128MMKU6

MBS

15 Year

AFS

FHLMC Pool #G18306

61,459

3128CUPT7

MBS

20 Year

AFS

FHLMC Pool #G30434

103,166

36202ETW9

MBS

30 Year

AFS

GNMA II Pool #4165

101,264

36202EV97

MBS

30 Year

AFS

GNMA II Pool #4240

15,907

22540VNJ7

CMO

CMO

HTM

CSF01CK6 A3

516

31395XYH2

CMO

CMO

AFS

FHR 3020 VA

823

31395MW62

CMO

CMO

AFS

FHL2938 EA

160,438

31397BXT3

CMO

CMO

AFS

FHLMC REMIC SER 3224 MG

413,366

31397BXT3

CMO

CMO

AFS

FHLMC REMIC SER 3224 MG

31,765

31397F4E9

CMO

CMO

AFS

FHLMC REMIC SER 3276 C

1,539

31397RXY7

CMO

CMO

AFS

FHLMC REMIC SER 3427 HE

3,635

83162CRR6

CMO

CMO

AFS

SBAP 2008-20C 1

4,069

83162CRR6

CMO

CMO

AFS

SBAP 2008-20C 1

40,699

83162CRS4

CMO

CMO

AFS

SBAP 2008-20D1

29,810

83162CRS4

CMO

CMO

AFS

SBAP 2008-20D1

19,850

83162CSA2

CMO

CMO

AFS

SBAP 2008 20I 1

15,427

Agency

3128X9GA2

Agency

Agency

AFS

Fed Home Ln Mtg Corp Step

2,076

3133XUWG4

Agency

Agency

AFS

Fed Home Ln Bk Step

2,820

3133XBRJ6

CMO

CMO

AFS

FHLB QB-2015 1

14,343

3133XCQE6

CMO

CMO

AFS

FHLB SD-2015 1

119,306

3133XCT60

CMO

CMO

AFS

FHLB SK-2015 1

166,262

3133XDDQ1

CMO

CMO

AFS

FHLB TQ-2015 A

171,257

3133XDZ20

CMO

CMO

AFS

FHLB VN-2015 A

90,013

3133XDZ20

CMO

CMO

AFS

FHLB VN-2015 A

472,183

3133XEX79

CMO

CMO

AFS

FHB7R18 A

434,002

Muni Bonds

57419NF74

Municipal

Municip

AFS

MARYLAND ST CMNTY DEV ADMIN DE

35,261

57419NF74

Municipal

Municip

AFS

MARYLAND ST CMNTY DEV ADMIN DE

15,567

* already taken a $692,779 charge

Note: no impact to future cash flows based on current performance of the collateral for each cusip (**).  Current market pricing is due to other factors then credit risk factors in each of these securities

#	Cusip	Major Type	Type	Acct	Description	Par Value
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	2,818,533
15	362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	4,693,178
17	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	8,845,003
18	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	4,431,295
21	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	2,404,281
22	12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	4,578,058
23	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	1,095,571
26	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	11,831,360
	as of 06/30/10				Non-Agency CMO Portfolio Totals	40,697,279
	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	3,306,965
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	1,623,151
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4,123,486
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	7,517,864
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	1,354,710
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	200,942
4	22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	1,885,064
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5,678,395
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	1,042,529
7	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	875,796
16	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	370,908
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	1,744,236
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	6,208,244
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	4,158,297
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	415,830
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	1,680,977
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	1,318,414
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	1,341,759
						44,847,565
	Agency
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	3,995,000
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	983,959
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	1,664,785
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	3,120,117
10	3133XEX79	CMO	CMO	AFS	FHB7R18 A	5,284,150
12	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	5,440,000
11	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	3,300,000
14	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	5,000,000
13	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	5,000,000
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	700,000
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	1,585,000
						2,285,000

#	Cusip	Major Type	Type	Acct	Description	Coupon	Maturity	Call Date	Call Price	Step Cpn	Bk Yld Worst	Book Price	Avg Life	Book Value
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	5.258	01/25/2035				4.990	99.19	4.52	2,795,678
15	362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	5.500	01/25/2021				5.358	99.86	1.18	4,686,485
17	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	5.500	09/25/2022				4.843	100.00	0.53	8,845,003
18	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	5.500	12/25/2022				4.242	100.21	0.45	4,440,779
21	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	5.000	08/25/2035				5.049	99.67	0.72	2,396,316
22	12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	5.500	12/25/2035				5.690	99.11	5.13	4,537,181
23	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	5.750	05/25/2036				3.307	100.00	0.16	1,095,574
26	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	6.000	07/25/2037				5.467	99.86	0.44	11,814,523
	as of 06/30/10				Non-Agency CMO Portfolio Totals									40,611,539
	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	4.500	11/01/2015				4.666	99.50	1.76	3,290,397
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	5.000	12/01/2015				4.914	99.88	1.68	1,621,196
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4.500	04/01/2024				3.493	102.27	2.60	4,217,204
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	5.000	08/01/2028				4.196	102.70	3.94	7,720,675
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	6.500	06/20/2038				6.214	100.05	1.16	1,355,349
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	6.500	09/20/2038				6.259	100.00	1.16	200,942
4	22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	6.387	10/15/2011				8.341	97.96	1.04	1,846,693
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5.500	11/15/2014				5.306	100.08	1.20	5,682,758
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	5.000	08/15/2021				4.544	99.98	0.36	1,042,370
7	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	5.750	06/15/2033				3.260	100.00	0.09	875,796
16	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	5.750	06/15/2033				3.260	100.00	0.09	370,908
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	6.000	02/15/2037				5.642	100.00	0.57	1,744,280
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	6.000	06/15/2037				4.750	100.00	0.18	6,208,244
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	5.490	03/01/2028				4.752	105.72	10.34	4,396,287
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	5.490	03/01/2028				4.752	105.72	10.34	439,629
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	5.370	04/01/2028				4.699	105.21	10.31	1,768,617
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	5.370	04/01/2028				4.669	105.46	10.31	1,390,369
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	5.600	09/01/2028				4.817	106.20	10.69	1,425,005
														45,596,719
	Agency
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	2.500	04/28/2014	10/28/2010	100.00		2.489	100.00	0.33	3,995,000
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.910	04/28/2015				5.718	98.76	1.82	971,774
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	5.250	07/28/2015				5.754	99.27	1.83	1,652,612
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	5.065	10/20/2015				5.497	99.41	1.71	3,101,864
10	3133XEX79	CMO	CMO	AFS	FHB7R18 A	5.770	03/23/2018				5.628	100.34	1.79	5,301,896
12	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	3.800	04/13/2017	10/13/2010	100.00		3.820	99.88	0.29	5,433,220
11	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	3.050	04/12/2017	10/12/2010	100.00	3.50	3.180	99.77	0.28	3,292,521
14	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	4.250	04/29/2025	10/29/2010	100.00	5.50	4.255	99.98	0.33	4,998,750
13	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	4.000	04/29/2018	10/29/2010	100.00		3.973	100.00	0.33	5,000,000
														33,747,636
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400	07/01/2021	07/01/2013	100.00		6.240	100.56	3.50	703,914
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400	07/01/2021	07/01/2013	100.00		6.240	100.56	3.50	1,593,851
														2,297,766

#	Cusip	Major Type	Type	Acct	Description	Mkt BEY	Mkt Price	Price Source	Price Date	Book Profit/Loss
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	8.510	86.96	IDC	06/30/2010	(344,608	)
15	362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	9.777	95.25	IDC	06/30/2010	(216,421	)
17	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	38.138	85.71	IDC	06/30/2010	(1,264,172	)
18	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	17.740	94.64	IDC	06/30/2010	(246,807	)
21	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	8.329	97.45	IDC	06/30/2010	(53,232	)
22	12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	17.340	65.01	IDC	06/30/2010	(1,560,852	)
23	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	26.404	96.70	IDC	06/30/2010	(36,193	)
26	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	39.360	87.74	IDC	06/30/2010	(1,433,746	)
	as of 06/30/10				Non-Agency CMO Portfolio Totals					(5,156,032	)
	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	2.084	103.85	IDC	06/30/2010	143,886
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	2.137	104.35	IDC	06/30/2010	72,481
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	2.166	105.57	IDC	06/30/2010	136,083
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	3.204	106.26	IDC	06/30/2010	267,506
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	-1.085	108.60	IDC	06/30/2010	115,825
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	-1.078	108.60	IDC	06/30/2010	17,275
4	22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3	1.428	104.85	IDC	06/30/2010	129,730
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	-0.357	106.82	IDC	06/30/2010	382,979
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	-0.971	101.99	IDC	06/30/2010	20,873
7	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	3.183	100.01	IDC	06/30/2010	60
16	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG	3.183	100.01	IDC	06/30/2010	25
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	4.429	100.67	IDC	06/30/2010	11,627
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	5.419	99.88	IDC	06/30/2010	(7,333	)
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	4.343	109.09	IDC	06/30/2010	140,166
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	4.343	109.09	IDC	06/30/2010	14,017
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	4.222	109.16	IDC	06/30/2010	66,270
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	4.222	109.16	IDC	06/30/2010	48,759
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	4.391	109.81	IDC	06/30/2010	48,421
										1,608,650
	Agency
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	0.116	100.78	IDC	06/30/2010	31,201
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.960	100.00	S&P	06/23/2010	12,185
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	1.474	106.75	TRADER	06/23/2010	124,547
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	1.959	105.17	S&P	06/23/2010	179,626
10	3133XEX79	CMO	CMO	AFS	FHB7R18 A	1.181	108.06	S&P	06/23/2010	408,263
12	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	0.513	100.94	IDC	06/30/2010	57,808
11	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	0.345	100.76	IDC	06/30/2010	32,724
14	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	1.809	100.80	IDC	06/30/2010	41,150
13	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	1.704	100.75	IDC	06/30/2010	37,550
										925,052
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	3.230	103.32	MATRIX	06/30/2010	19,344
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	3.230	103.32	MATRIX	06/30/2010	43,813
										63,157

						RATINGS
#	Cusip	Major Type	Type	Acct	Description	Fitch	S & P	Moody
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	na	BB-	B3
15	362334DS0	CMO	CMO	AFS	GSR SER 2F 7A1	CCC	CCC	NA
17	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	AAA	CCC	NA
18	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	CC	na	B3
21	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	A	BBB	na
22	12668AYT6	CMO	CMO	AFS	CWA0557C 4A4	CC	na	na
23	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	AA	A	na
26	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	CCC	CCC	na
	as of 06/30/10				Non-Agency CMO Portfolio Totals
	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240
4	22540VNJ7	CMO	CMO	HTM	CSF01CK6 A3
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA
6	31395MW62	CMO	CMO	AFS	FHL2938 EA
7	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG
16	31397BXT3	CMO	CMO	AFS	FHLMC REMIC SER 3224 MG
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1
	Agency
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A
10	3133XEX79	CMO	CMO	AFS	FHB7R18 A
12	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk
11	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step
14	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step
13	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE

OTHER THAN TEMPORARY IMPAIRMENT ANALYSIS

Price

Value

Value

Jun-10

#

Cusip

Major Type

Type

Acct

Description

CPR

CDR

Severity

Book Yield

Book Price

Bloomberg

Difference

Book

Credit

Unrealized G/L

MBS-private labeled

3

576433XG6

CMO

ARM

AFS

MARM SER 1 9A1

(344,609

)

15

362334DS0

CMO

CMO

AFS

GSR SER 2F 7A1

(216,421

)

17

74958VAC2

CMO

CMO

AFS

RFMSI SER S9 2A1

1

0

0

5.734

100

99.7654

(0.235

)

1095574

(2,570

)

(1,264,172

)

18

17313VAD9

CMO

CMO

AFS

CMS07009 2A1

(246,807

)

21

76111XXJ7

CMO

CMO

AFS

RFMSI 2005 S6 A1

(53,232

)

22

12668AYT6

CMO

CMO

AFS

CWA0557C 4A4

11.7

2.9

60

5.686

%

98.969

91.1757

(7.793

)

4,537,181

(353,596

)*

(1,560,852

)

23

32051G2C8

CMO

CMO

AFS

FHASI 2006 1 1A5

(36,193

)

26

362669AV5

CMO

CMO

AFS

GSR SER 4F 6A1

(1,433,747

)

as of 06/30/10

Non-Agency CMO Portfolio Totals

MBS

27

31371MLY1

MBS

10 Year

AFS

FNMA Pool #256043

143,886

28

31371MLZ8

MBS

10 Year

AFS

FNMA Pool #256044

72,481

29

3128MMKU6

MBS

15 Year

AFS

FHLMC Pool #G18306

136,083

30

3128CUPT7

��

MBS

20 Year

AFS

FHLMC Pool #G30434

267,507

31

36202ETW9

MBS

30 Year

AFS

GNMA II Pool #4165

115,825

32

36202EV97

MBS

30 Year

AFS

GNMA II Pool #4240

17,275

4

22540VNJ7

CMO

CMO

HTM

CSF01CK6 A3

129,730

5

31395XYH2

CMO

CMO

AFS

FHR 3020 VA

382,979

6

31395MW62

CMO

CMO

AFS

FHL2938 EA

20,873

7

31397BXT3

CMO

CMO

AFS

FHLMC REMIC SER 3224 MG

25

16

31397BXT3

CMO

CMO

AFS

FHLMC REMIC SER 3224 MG

60

19

31397F4E9

CMO

CMO

AFS

FHLMC REMIC SER 3276 C

11,627

20

31397RXY7

CMO

CMO

AFS

FHLMC REMIC SER 3427 HE

(7,333

)

83162CRR6

CMO

CMO

AFS

SBAP 2008-20C 1

140,166

83162CRR6

CMO

CMO

AFS

SBAP 2008-20C 1

14,017

83162CRS4

CMO

CMO

AFS

SBAP 2008-20D1

66,270

83162CRS4

CMO

CMO

AFS

SBAP 2008-20D1

48,759

83162CSA2

CMO

CMO

AFS

SBAP 2008 20I 1

48,421

Agency

1

3133XY2A2

Agency

Agency

HTM

Fed Home Ln Bk

31,201

2

3133XBRJ6

CMO

CMO

AFS

FHLB QB-2015 1

12,185

8

3133XCQE6

CMO

CMO

AFS

FHLB SD-2015 1

124,547

9

3133XDDQ1

CMO

CMO

AFS

FHLB TQ-2015 A

179,626

10

3133XEX79

CMO

CMO

AFS

FHB7R18 A

408,263

12

3133XXVS3

Agency

Agency

HTM

Fed Home Ln Bk

32,724

11

3128X93R9

Agency

Agency

HTM

Fed Home Ln Mtg Corp Step

57,808

14

3128X96L9

Agency

Agency

HTM

Fed Home Ln Mtg Corp Step

37,550

13

3128X97L8

Agency

Agency

HTM

Fed Home Ln Mtg Corp

41,150

Muni Bonds

33

57419NF74

Municipal

Municip

AFS

MARYLAND ST CMNTY DEV ADMIN DE

43,812.00

34

57419NF74

Municipal

Municip

AFS

MARYLAND ST CMNTY DEV ADMIN DE

19,344.00

* already taken a $692,779 charge

Note: no impact to future cash flows based on current performance of the collateral for each cusip (**).  Current market pricing is due to other factors then credit risk factors in each of these securities

#	Cusip	Major Type	Type	Acct	Description	Par Value
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	2,697,799
15	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	8,095,310
17	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	4,168,073
18	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	2,051,568
21	12668AYT6*	CMO	CMO	AFS	CWA0557C 4A4	995,803
22	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	724,068
23	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	10,929,065
	as of 09/30/10				Non-Agency CMO Portfolio Totals	29,661,686

* brought cusip down to market value, full OTTI expense of 3,391,568 recognized of which 692,799 was prior year

	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	3,010,503
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	1,487,921
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	3,817,243
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	6,891,103
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	1,001,669
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	157,694
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5,389,734
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	789,703
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	1,469,825
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	2,740,305
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	384,682
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	3,846,824
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	1,680,977
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	1,318,414
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	1,256,363
						35,242,960
	Agency
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	922,463
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	1,545,781
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	2,948,790
						5,417,035
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	3,995,000
12	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	3,300,000
11	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	5,440,000
14	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	5,000,000
13	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	5,000,000
						22,735,000
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	1,585,000
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	700,000
						2,285,000

#	Cusip	Major Type	Type	Acct	Description	Coupon	Maturity	Call Date	Call Price	Step Cpn	Bk Yld Worst	Book Price	Avg Life	Book Value
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	5.258	01/25/2035				4.854	99.23	4.52	2,677,027
15	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	5.500	09/25/2022				4.707	100.00	0.45	8,095,310
17	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	5.500	12/25/2022				4.464	100.11	0.45	4,172,676
18	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	5.000	08/25/2035				4.892	99.79	0.84	2,047,350
21	12668AYT6*	CMO	CMO	AFS	CWA0557C 4A4	5.500	12/25/2035				5.675	99.14	5.47	995,803
22	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	5.750	05/25/2036				0.229	100.00	0.07	724,068
23	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	6.000	07/25/2037				5.629	99.93	0.79	10,921,375
	as of 09/30/10				Non-Agency CMO Portfolio Totals									29,633,610

* brought cusip down to market value, full OTTI expense of 3,391,568 recognized of which 692,799 was prior year

	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	4.500	11/01/2015				4.626	99.57	1.71	2,997,494
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	5.000	12/01/2015				4.901	99.90	1.65	1,486,384
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	4.500	04/01/2024				3.667	102.07	2.86	3,896,145
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	5.000	08/01/2028				3.739	102.49	2.27	7,062,394
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	6.500	06/20/2038				6.294	100.04	1.46	1,002,046
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	6.500	09/20/2038				6.321	100.00	1.45	157,694
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	5.500	11/15/2014				5.391	100.06	1.72	5,393,003
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	5.000	08/15/2021				4.551	99.99	0.39	789,662
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	6.000	02/15/2037				5.841	100.00	1.08	1,469,849
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	6.000	06/15/2037				3.373	100.00	0.09	2,740,305
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	5.490	03/01/2028				4.557	105.60	7.55	406,234
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	5.490	03/01/2028				4.557	105.60	7.55	4,062,343
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	5.370	04/01/2028				4.531	105.11	7.71	1,766,852
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	5.370	04/01/2028				4.494	105.35	7.71	1,388,912
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	5.600	09/01/2028				4.605	106.08	7.75	1,332,734
														35,952,051
	Agency
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.910	04/28/2015				5.433	98.94	2.53	912,645
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	5.250	07/28/2015				5.586	99.37	2.55	1,536,066
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	5.065	10/20/2015				5.330	99.49	2.71	2,933,827
														5,382,537
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	2.500	04/28/2014	10/28/2010	100.00		2.474	100.00	0.08	3,995,000
12	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	3.050	04/12/2017	10/12/2010	100.00	3.50	3.180	99.81	0.03	3,293,604
11	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	3.800	04/13/2017	10/13/2010	100.00		3.820	99.88	0.04	5,433,606
14	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	4.000	04/29/2018	10/29/2010	100.00		3.934	100.00	0.08	5,000,000
13	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	4.250	04/29/2025	10/29/2010	100.00	5.50	4.255	99.98	0.08	4,998,909
														22,721,119
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400	07/01/2021	07/01/2013	100.00		6.240	100.51	3.25	1,593,067
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	4.400	07/01/2021	07/01/2013	100.00		6.240	100.51	3.25	703,568
														2,296,635

#	Cusip	Major Type	Type	Acct	Description	Mkt BEY	Mkt Price	Price Source	Price Date	Book Profit/Loss
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	8.059	87.99	IDC	09/30/2010	-303,347
15	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	34.365	89.11	IDC	09/30/2010	-881,385
17	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	10.313	97.64	IDC	09/30/2010	-103,012
18	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	4.112	100.42	IDC	09/30/2010	12,839
21	12668AYT6*	CMO	CMO	AFS	CWA0557C 4A4	67.973	22.50	IDC	09/30/2010	233,000
22	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	36.250	97.72	IDC	09/30/2010	-16,523
23	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	15.552	93.20	IDC	09/30/2010	-735,902
	as of 09/30/10				Non-Agency CMO Portfolio Totals					(1,794,331	)

* brought cusip down to market value, full OTTI expense of 3,391,568 recognized of which 692,799 was prior year

	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	1.743	104.32	IDC	09/30/2010	143,063
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	1.842	104.77	IDC	09/30/2010	72,467
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	2.503	105.22	IDC	09/30/2010	120,244
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	2.400	105.40	IDC	09/30/2010	201,173
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	0.200	108.81	IDC	09/30/2010	87,840
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	0.169	108.81	IDC	09/30/2010	13,888
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	1.642	106.33	IDC	09/30/2010	337,992
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	0.617	101.52	IDC	09/30/2010	12,030
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	4.013	101.87	IDC	09/30/2010	27,526
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	0.770	100.23	IDC	09/30/2010	6,242
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	3.692	111.22	IDC	09/30/2010	21,606
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	3.692	111.22	IDC	09/30/2010	216,056
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	3.477	112.13	IDC	09/30/2010	117,944
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	3.477	112.13	IDC	09/30/2010	89,360
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	3.706	112.06	IDC	09/30/2010	75,183
										1,542,613
	Agency
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	4.960	100.00	S&P	09/23/2010	9,819
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	2.449	106.88	TRADER	09/23/2010	115,988
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	1.537	109.29	S&P	09/23/2010	288,994
										414,801
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	0.082	100.19	IDC	09/30/2010	7,511
12	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	0.522	100.08	IDC	09/30/2010	9,168
11	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	0.332	100.13	IDC	09/30/2010	13,194
14	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	1.050	100.24	IDC	09/30/2010	11,800
13	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	1.428	100.22	IDC	09/30/2010	12,341
										54,014
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	2.780	104.26	MATRIX	09/30/2010	59,468
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	2.780	104.26	MATRIX	09/30/2010	26,259
										85,726

						RATINGS
#	Cusip	Major Type	Type	Acct	Description	Fitch	S & P	Moody
	MBS-private labeled
3	576433XG6	CMO	ARM	AFS	MARM SER 1 9A1	na	BB-	B3
15	74958VAC2	CMO	CMO	AFS	RFMSI SER S9 2A1	AAA	CCC	NA
17	17313VAD9	CMO	CMO	AFS	CMS07009 2A1	CC	na	B3
18	76111XXJ7	CMO	CMO	AFS	RFMSI 2005 S6 A1	A	BBB	na
21	12668AYT6*	CMO	CMO	AFS	CWA0557C 4A4	C	na	na
22	32051G2C8	CMO	CMO	AFS	FHASI 2006 1 1A5	A	A	na
23	362669AV5	CMO	CMO	AFS	GSR SER 4F 6A1	CC	CCC	na
	as of 09/30/10				Non-Agency CMO Portfolio Totals

* brought cusip down to market value, full OTTI expense of 3,391,568 recognized of which 692,799 was prior year

	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA
6	31395MW62	CMO	CMO	AFS	FHL2938 EA
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1
	Agency
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk
12	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step
11	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk
14	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp
13	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE

OTHER THAN TEMPORARY IMPAIRMENT ANALYSIS

Price

Value

Value

Sep-10

#

Cusip

Major Type

Type

Acct

Description

CPR

CDR

Severity

Book Yield

Book Price

Bloomberg

Difference

Book

Credit

Unrealized G/L

MBS-private labeled

3

576433XG6

CMO

ARM

AFS

MARM SER 1 9A1

**

(303,347

)

15

74958VAC2

CMO

CMO

AFS

RFMSI SER S9 2A1

**

(881,385

)

17

17313VAD9

CMO

CMO

AFS

CMS07009 2A1

**

(103,012

)

18

76111XXJ7

CMO

CMO

AFS

RFMSI 2005 S6 A1

**

12,839

21

12668AYT6*

CMO

CMO

AFS

CWA0557C 4A4

6.7

3.7

53

5.686

98.969

79.5237

(19.445

)

4,387,370

(853,137

)*

(3,391,567

)

22

32051G2C8

CMO

CMO

AFS

FHASI 2006 1 1A5

9.4

4

26

5.734

100

99.6372

(0.363

)

724,068

(2,627

)**

(16,523

)

23

362669AV5

CMO

CMO

AFS

GSR SER 4F 6A1

**

(735,902

)

as of 09/30/10

Non-Agency CMO Portfolio Totals

* brought cusip down to market value, full OTTI expense of 3,391,568 recognized of which 692,799 was prior year

	MBS
27	31371MLY1	MBS	10 Year	AFS	FNMA Pool #256043	143,063
28	31371MLZ8	MBS	10 Year	AFS	FNMA Pool #256044	72,467
29	3128MMKU6	MBS	15 Year	AFS	FHLMC Pool #G18306	120,244
30	3128CUPT7	MBS	20 Year	AFS	FHLMC Pool #G30434	201,174
31	36202ETW9	MBS	30 Year	AFS	GNMA II Pool #4165	87,840
32	36202EV97	MBS	30 Year	AFS	GNMA II Pool #4240	13,888
5	31395XYH2	CMO	CMO	AFS	FHR 3020 VA	337,992
6	31395MW62	CMO	CMO	AFS	FHL2938 EA	12,030
19	31397F4E9	CMO	CMO	AFS	FHLMC REMIC SER 3276 C	27,526
20	31397RXY7	CMO	CMO	AFS	FHLMC REMIC SER 3427 HE	6,242
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	21,606
	83162CRR6	CMO	CMO	AFS	SBAP 2008-20C 1	216,056
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	117,944
	83162CRS4	CMO	CMO	AFS	SBAP 2008-20D1	89,360
	83162CSA2	CMO	CMO	AFS	SBAP 2008 20I 1	75,183
	Agency
2	3133XBRJ6	CMO	CMO	AFS	FHLB QB-2015 1	9,819
8	3133XCQE6	CMO	CMO	AFS	FHLB SD-2015 1	115,988
9	3133XDDQ1	CMO	CMO	AFS	FHLB TQ-2015 A	288,994
1	3133XY2A2	Agency	Agency	HTM	Fed Home Ln Bk	7,511
12	3128X93R9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	9,168
11	3133XXVS3	Agency	Agency	HTM	Fed Home Ln Bk	13,194
14	3128X97L8	Agency	Agency	HTM	Fed Home Ln Mtg Corp	11,800
13	3128X96L9	Agency	Agency	HTM	Fed Home Ln Mtg Corp Step	12,341
	Muni Bonds
33	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	59,468.00
34	57419NF74	Municipal	Municip	AFS	MARYLAND ST CMNTY DEV ADMIN DE	26,259.00

* already taken a $692,779 charge-addt’l charge to be effective 9/10

Note: no impact to future cash flows based on current performance of the collateral for each cusip (**). Current market pricing is due to other factors then credit risk factors in each of these securities