10.	INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at June 30, 2014:

					Unrealized Gains or Losses Recognized in Accumulated Other Comprehensive Loss
	Purchase Amortized / Historical Cost		Recorded Amortized/ Historical Cost⁽¹⁾		Non-Credit OTTI			Unrealized Gains		Unrealized Losses			Book Value		Other Unrecognized Losses		Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$	$15,819	$	$6,874	$	(585	)		-	$	(959	)⁽²⁾	$	5,330	$	795	$	6,125
Available for sale securities:
Investment securities
Registered Mutual Funds		2,883		2,777		-			925		(6	)		3,696		-		3,696
Agency notes		70		70		-			0		-			70		-		70
MBS
Pass-through MBS issued by GSEs		26,473		26,473		-			1,529		-			28,002		-		28,002
Collateralized mortgage obligations ("CMOs") issued by GSEs		17		17		-			0		-			17		-		17
Private issuer pass through MBS		535		535		-			7		-			542		-		542
Private issuer CMOs		447		447		-			7		-			454		-		454

(1)	Amount represents the purchase amortized / historical cost less any credit-related OTTI charges recognized through earnings.

(2)	Amount represents the unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The following is a summary of major categories of securities owned by the Company at December 31, 2013:

					Unrealized Gains or Losses Recognized in Accumulated Other Comprehensive Loss
	Purchase Amortized / Historical Cost		Recorded Amortized/ Historical Cost ⁽¹⁾		Non-Credit OTTI			Unrealized Gains		Unrealized Losses			Book Value		Other Unrecognized Gains			Fair Value
Investment securities held-to-maturity:
TRUPS	$	15,885	$	6,939	$	(601	)		-	$	(997	)⁽²⁾	$	5,341	$	(178	)	$	5,163
Available for sale securities:
Investment securities
Registered Mutual Funds		2,866		2,760		-			815		(17	)		3,558		-			3,558
Agency notes		15,070		15,070		-			21		-			15,091		-			15,091
MBS
Pass-through MBS issued by GSEs		28,407		28,407		-			1,552		-			29,959		-			29,959
CMOs issued by GSEs		319		319		-			2		-			321		-			321
Private issuer pass through MBS		662		662		-			18		-			680		-			680
Private issuer CMOs		574		574		-			9		-			583		-			583

(1)	Amount represents the purchase amortized / historical cost less any credit-related OTTI charges recognized through earnings.

(2)	Amount represents the unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

At June 30, 2014, the agency note investments in the table above had contractual maturities as follows::

	Amortized Cost		Estimated Fair Value
Due after three years through five years		70		70
TOTAL	$	70	$	70

The held-to-maturity TRUPS had a weighted average term to maturity of 20.5 years at June 30, 2014. At June 30, 2014, MBS available-for-sale (which included pass-through MBS issued by GSEs, CMOs issued by GSEs, one private issuer pass through MBS and one private issuer CMO) possessed a weighted average contractual maturity of 16.7 years and a weighted average estimated duration of 1.3 years. There were no sales of either investment securities held-to-maturity or MBS available-for-sale during the six months ended June 30, 2014 or 2013.

There were no sales of investment securities available-for-sale during the six months ended June 30, 2014 and the three months ended June 30, 2013. Proceeds from the sales of investment securities available-for-sale totaled $366 during the six months ended June 30, 2013. A net gain of $110 was recognized on these sales.

As of each reporting period through June 30, 2014, the Company has applied the protocol established by ASC 320-10-65 ("ASC 320-10-65") in order to determine whether OTTI existed for its TRUPS and/or to measure, for TRUPS that have been determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI. As of June 30, 2014, five TRUPS were determined to meet the criteria for OTTI based upon this analysis. At June 30, 2014, these five securities had credit ratings ranging from "C" to "Caa3."

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended June 30, 2014								At or for the Three Months Ended June 30, 2013
	Credit Related OTTI Recognized in Earnings		Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI			Credit Related OTTI Recognized in Earnings		Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI
Cumulative balance at the beginning of the period	$	8,945	$	593		$	9,538		$	8,946	$	625		$	9,571
Amortization of previously recognized OTTI		-		(8	)		(8	)		1		(8	)		(7	)
Cumulative balance at end of the period	$	8,945	$	585		$	9,530		$	8,947	$	617		$	9,564

	At or for the Six Months Ended June 30, 2014									At or for the Six Months Ended June 30, 2013
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI			Credit Related OTTI Recognized in Earnings		Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI
Cumulative balance at the beginning of the period	$	9,571		$	601		$	9,546		$	8,945	$	634		$	9,579
Amortization of previously recognized OTTI		(7	)		(16	)		(16	)		2		(17	)		(15	)
Cumulative balance at end of the period	$	9,564		$	585		$	9,530		$	8,947	$	617		$	9,564

The following table summarizes the gross unrealized losses and fair value of investment securities as of June 30, 2014, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS ⁽¹⁾	$	-	$	-	$	3,672	$	1,096	$	3,672	$	1,096
Available for Sale Securities
Registered Mutual Funds		-		-		550		6		550		6

(1) At June 30, 2014, the recorded balance of these securities was $3,804. This balance reflected the remaining unrealized loss of $959 that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day these securities were transferred from available-for-sale to held-to-maturity). In accordance with both ASC 320-10-35-17 and 320-10-65, this unrealized loss is currently being amortized over the remaining estimated life of these securities.

TRUPS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months

At June 30, 2014, impairment of three of the TRUPS, with an amortized cost of $4,768, was deemed temporary. These securities remained in an unrealized loss position for 12 or more consecutive months, and their cumulative unrealized loss was $1,096 at June 30, 2014, reflecting both illiquidity in the marketplace and concerns over future bank failures. At June 30, 2014, these securities had ratings ranging from "BB-" to "A." Despite both the significant decline in market value and the duration of their impairment, management believed that the unrealized losses on these securities at

June 30, 2014 were temporary, and that the full value of the investments would be realized once the market dislocations have been removed, or as the securities continued to make their contractual payments of principal and interest. In making this determination, management considered the following:

·	Based upon an internal review of the collateral backing the TRUPS portfolio, which accounted for current and prospective deferrals, the securities could reasonably be expected to continue making all contractual payments

·	The Company does not intend to sell these securities prior to full recovery of their impairment

·	There were no cash or working capital requirements nor contractual or regulatory obligations that would compel the Company to sell these securities prior to their forecasted recovery or maturity

·	The securities have a pool of underlying issuers comprised primarily of banks

·	None of the securities have exposure to real estate investment trust issued debt (which has experienced high default rates)

·	The securities feature either a mandatory auction or a de-leveraging mechanism that could result in principal repayments to the Bank prior to the stated maturity of the security

·	The securities are adequately collateralized

The following table summarizes the gross unrealized losses and fair value of investment securities and MBS as of December 31, 2013, aggregated by investment category and the length of time that the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS ⁽¹⁾	$	$-	$	$-	$	$5,163	$	$1,775	$	$5,163	$	$1,775
Available-for-Sale Securities:
Registered Mutual Funds	$	$536	$	$17	$	$ -	$	$ -	$	$536	$	$17

(1) At December 31, 2013, the recorded balance of these securities was $3,551. This balance reflected the remaining unrealized loss of $997 that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day these securities were transferred from available-for-sale to held-to-maturity). In accordance with both ASC 320-10-35-17 and 320-10-65, this unrealized loss is currently being amortized over the remaining estimated life of these securities.