10.	INVESTMENT AND MORTGAGE-BACKED SECURITIES

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

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost ⁽¹⁾		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$	15,823	$	5,352		1,148	$	(163	)	$	6,337
Available-for-sale securities:
Investment securities
Registered Mutual Funds		2,889		2,783		862		(8	)		3,637
Agency notes		70		70		1		-			71
MBS
Pass-through MBS issued by GSEs		25,297		25,297		1,543		(2	)		26,838
Private issuer pass through MBS		479		479		6		-			485
Private issuer collateralized mortgage obligations ("CMOs")		393		393		5		-			398

(1) Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUPS, amount is also net the $946 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:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost ⁽¹⁾		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUPS	$	15,885	$	5,341		118	$	(296	)	$	5,163
Available-for-sale securities:
Investment securities
Registered Mutual Funds		2,866		2,760		815		(17	)		3,558
Agency notes		15,070		15,070		21		-			15,091
MBS
Pass-through MBS issued by GSEs		28,407		28,407		1,552		-			29,959
CMOs issued by GSEs		319		319		2		-			321
Private issuer pass through MBS		662		662		18		-			680
Private issuer CMOs		574		574		9		-			583

(1) Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUPS, amount is also net of the $997 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 September 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		71
TOTAL	$	70	$	71

The held-to-maturity TRUPS had a weighted average term to maturity of 20.3 years at September 30, 2014. At September 30, 2014, MBS available-for-sale (which included pass-through MBS issued by GSEs, one private issuer pass through MBS and one private issuer CMO) possessed a weighted average contractual maturity of 16.8 years and a weighted average estimated duration of 1.2 years. There were no sales of either investment securities held-to-maturity or MBS available-for-sale during the nine months ended September 30, 2014 or 2013.

There were no sales of investment securities available-for-sale during the nine months ended September 30, 2014 and the three months ended September 30, 2013. Proceeds from the sales of investment securities available-for-sale totaled $366 during the nine months ended September 30, 2013. Gross gains of $110 were recognized on these sales.

As of each reporting period through September 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 September 30, 2014, five TRUPS were determined to meet the criteria for OTTI based upon this analysis. At September 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 September 30, 2014						At or for the Three Months Ended September 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	$	585	$	9,530	$	8,947	$	617	$	9,564
Amortization of previously recognized OTTI		-		(8)		(8)		-		(8)		(8)
Cumulative balance at end of the period	$	8,945	$	577	$	9,522	$	8,947	$	609	$	9,556

	At or for the Nine Months Ended September 30, 2014						At or for the Nine Months Ended September 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	$	601	$	9,546	$	8,945	$	634	$	9,579
Amortization of previously recognized OTTI		-		(24)		(24)		2		(25)		(23)
Cumulative balance at end of the period	$	8,945	$	577	$	9,522	$	8,947	$	609	$	9,556

The following table summarizes the gross unrealized losses and fair value of investment securities as of September 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	$	-	$	-	$	2,560	$	163	$	2,560	$	163
Available for Sale Securities
Registered Mutual Funds		-		-		550		8		550		8
Pass-through MBS issued by GSEs		844		2		-		-		844		2

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

At September 30, 2014, impairment of two TRUPS was deemed temporary, as management believed that the full recorded balance of the investments would be realized. 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	$	$-	$	$-	$	3,654	$	296	$	3,654	$	296
Available-for-Sale Securities:
Registered Mutual Funds	$	536	$	$17	$	-	$	-	$	536	$	17