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, 2016:

	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")	$	15,326	$	5,319	$	1,955	$	(469	)	$	6,805
Available-for-sale securities:
Investment securities
Registered Mutual Funds		4,011		4,011		20		(194	)		3,837
MBS
Pass-through MBS issued by GSEs		392		392		14		-			406

(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 $781 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, 2015:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost ⁽¹⁾		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
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 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 held-to-maturity TRUPS had a weighted average term to maturity of 18.5 years at June 30, 2016. At June 30, 2016, the pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 11.5 years. All of the pass-through MBS issued by GSEs possess an annual interest rate adjustment.

There were no sales of investment securities during the three-month and six-month periods ended June 30, 2016. The entire gain/loss on securities shown in the unaudited condensed consolidated statements of income for this period resulted from market valuation changes or sales of trading securities. Proceeds from the sale of trading securities were $3.6 million during the three and six month periods ended June 30, 2016. Gross gains of $3 and gross losses of $45 were recognized on these sales. Proceeds from the sales of investment securities available-for-sale totaled $2 million during the three months ended June 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales. Proceeds from the sales of investment securities available-for-sale totaled $2,070 during the six months ended June 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales.

Tax provisions related to the gains on sales of investment securities and MBS available-for-sale recognized during the three-month and six-month periods ended June 30, 2015 are disclosed in the condensed consolidated statements of comprehensive income.

As of each reporting period through June 30, 2016, 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 June 30, 2016, five TRUPS were determined to meet the criteria for OTTI based upon this analysis. At June 30, 2016, 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, 2016								At or for the Three Months Ended June 30, 2015
	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 pre-tax balance at the beginning of the period	$	8,691		$	570		$	9,261	$	8,795		$	561	$	9,356
Accretion (Amortization) of previously recognized OTTI		(26	)		(8	)		(34)		(26	)		35		9
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

	At or for the Six Months Ended June 30, 2016								At or for the Six Months Ended June 30, 2015
	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 pre-tax balance at the beginning of the period	$	8,717		$	578		$	9,295	$	8,945		$	569	$	9,514
Accretion (Amortization) of previously recognized OTTI		(52	)		(16	)		(68)		(176	)		27		(149	)
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

The following table summarizes the gross unrealized losses and fair value of investment securities as of June 30, 2016, 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	$	-	$	-	$	2,255	$	469	$	2,255	$	469
Available-for-Sale Securities:
Registered Mutual Funds		371		8		3,121		186		3,492		194

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

At June 30, 2016, 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, 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