4. INVESTMENT AND MORTGAGE-BACKED SECURITIES

At December 31, 2015 and 2014, there were no holdings of investment securities of any one issuer in an amount greater than 10% of stockholders' equity.

The following is a summary of major categories of securities owned by the Company excluding trading securities at December 31, 2015:

	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")	$	15,344	$	5,242	$	2,154	$	(345	)	$	7,051
Available-for-sale securities:
Investment securities
Registered Mutual Funds		3,990		3,990		25		(259	)		3,756
MBS
Pass-through MBS issued by Government Sponsored Entities ("GSEs")		418		418		13		-			431

(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 $807 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 (excluding trading securities) at December 31, 2014:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost ⁽¹⁾		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUPS	$	15,815	$	5,367	$	1,119	$	(171	)	$	6,315
Available-for-sale securities:
Investment securities
Registered Mutual Funds		3,860		3,860		-		(124	)		3,736
Agency notes		70		70		-		-			70
MBS
Pass-through MBS issued by GSEs		24,154		24,154		1,453		-			25,607
Private issuer pass through MBS		449		449		6		-			455
Private issuer Collateralized Mortgage Obligations ("CMOs")		343		343		4		-			347

(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 $932 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 held-to-maturity TRUPS had a weighted average term to maturity of 19.3 years at December 31, 2015. At December 31, 2015, MBS available-for-sale (which included pass-through MBS issued by GSEs) possessed a weighted average contractual maturity of 12.1 years and a weighted average estimated duration of 1.0 year. There were no sales of investment securities held-to-maturity during the years ended December 31, 2015, 2014 or 2013.

During the year ended December 31, 2015, gross proceeds from the sales of investment securities available-for-sale totaled $2,070. Gross gains of $4 and gross losses of $8 were recognized on these sales. During the year ended December 31, 2014, gross proceeds from the sales of investment securities available-for-sale totaled $3,780. A gross gain of $997 was recognized on these sales and there were no gross recognized losses. During the year ended December 31, 2013, gross proceeds from the sales of investment securities available-for-sale totaled $366. A gross gain of $110 was recognized on these sales. The remaining gain/loss on securities shown in the consolidated statements of income for these periods resulted from market valuation changes on trading securities.

Proceeds from the sales of MBS available-for-sale totaled $24,307 during the year ended December 31, 2015. Gross gains of $1,395 and gross losses of $7 were recognized on these sales. There were no sales of MBS available-for-sale during the years ended December 31, 2014 and 2013.

Tax provisions related to the gains on sales of investment securities and MBS available-for-sale recognized during the years ended December 31, 2015, 2014 and 2013 are disclosed in the consolidated statements of comprehensive income.

On September 1, 2008, the Bank transferred eight TRUPS (i.e., investment securities primarily secured by the preferred debt obligations of a pool of U.S. banks with a small portion secured by debt obligations of insurance companies) with an amortized cost of $19,922 from its available-for-sale portfolio to its held-to-maturity portfolio. Based upon the lack of an orderly market for these securities, management determined that a formal election to hold them to maturity was consistent with its initial investment decision. On the date of transfer, the unrealized loss of $8,420 on these securities continued to be recognized as a component of accumulated other comprehensive loss within the Company's consolidated stockholders' equity (net of income tax benefit), and was expected to be amortized over the remaining average life of the securities, which approximated 21.1 years on a weighted average basis. Activity related to this transfer loss was as follows:

	For the Year Ended December 31,
	2015			2014
Cumulative balance at the beginning of the period	$	932		$	997
Amortization		(125	)		(65	)
Cumulative balance at end of the period	$	807		$	932

As of each reporting period through December 31, 2015, the Company has applied the protocol established by 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 December 31, 2015, five TRUPS were determined to meet the criteria for OTTI based upon this analysis. At December 31, 2015, these five securities had credit ratings ranging from "C" to "A1."

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

	At or for the Year Ended December 31, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI Charge
Cumulative pre-tax balance at the beginning of the period	$	8,945		$	569	$	9,514
Accretion (Amortization) of previously recognized OTTI		(228	)		9		(219	)
Cumulative pre-tax balance at end of the period	$	8,717		$	578	$	9,295

	At or for the Year Ended December 31, 2014								At or for the Year Ended December 31, 2013
	Credit Related OTTI Recognized in Earnings		Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI Charge			Credit Related OTTI Recognized in Earnings		Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI Charge
Cumulative pre-tax balance at the beginning of the period	$	8,945	$	601		$	9,546		$	8,945	$	634		$	9,579
Amortization of previously recognized OTTI		-		(32	)		(32	)		-		(33	)		(33	)
Cumulative pre-tax balance at end of the period	$	8,945	$	569		$	9,514		$	8,945	$	601		$	9,546

There was no activity related to OTTI charges recognized on the Company's registered mutual funds during the year ended December 31, 2015. The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's registered mutual funds for the years ended December 31, 2014 and 2013:

	At or For the Year Ended December 31,
	2014			2013
Cumulative balance at the beginning of the period	$	106		$	348
Reduction of OTTI for securities sold during the period		(106	)		(242	)
Cumulative balance at end of the period	$	-		$	106

The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2015, 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	$	-	$	-	$	2,359	$	345	$	2,359	$	345
Available-for-Sale Securities:
Registered Mutual Funds		3,026		259		-		-		3,026		259

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

At December 31, 2015, 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 as of December 31, 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	$	-	$	-	$	2,571	$	163	$	2,571	$	163
Available-for-Sale Securities:
Registered Mutual Funds		3,736		124		-		-		3,736		124