10.	INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following tables summarize the major categories of securities owned by the Company (excluding trading securities) for the periods indicated:

	September 30, 2016
	Amortized Cost⁽¹⁾		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities (“TRUPS”)	$	5,356	$	1,931	$	(429	)	$	6,858

Investment securities available-for-sale:
Registered Mutual Funds		3,992		63		(122	)		3,933
Pass-through MBS issued by GSEs		3,640		13		(6	)		3,647
Total investment securities available-for-sale		7,632		76		(128	)		7,580
Total investment securities	$	12,988	$	2,007	$	(557	)	$	14,438

⁽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 $760 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).

	December 31, 2015
	Amortized Cost⁽¹⁾		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUPS	$	5,242	$	2,154	$	(345	)	$	7,051

Investment securities available-for-sale:
Registered Mutual Funds		3,990		25		(259	)		3,756
Pass-through MBS issued by GSEs		418		13		-			431
Total investment securities available-for-sale		4,408		38		(259	)		4,187
Total investment securities	$	9,650	$	2,192	$	(604	)	$	11,238

⁽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 18.3 years at September 30, 2016. At September 30, 2016, the pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 4.1 years. All of the pass-through MBS issued by GSEs possess an annual interest rate adjustment.

There were no sales of registered mutual funds available-for-sale during the three-month periods ended September 30, 2016 or 2015, or nine-month period ended September 30, 2016. Proceeds from the sale of registered mutual funds available-for-sale totaled $2,070 during the nine months ended September 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales. There were no sales of MBS available-for-sale during the three-month periods ended September 30, 2016 or 2015, or nine-month period ended September 30, 2016. Proceeds from the sale of MBS available-for-sale totaled $24,307 during the nine months ended September 30, 2015. Gross gains of $1,395 and gross losses of $7 were recognized on these sales.

There were no sales of trading securities during the three-month periods ended September 30, 2016 or 2015, or the nine month period ended September 30, 2015. The entire gain/loss on securities shown in the unaudited condensed consolidated statements of income during those periods resulted from market valuation changes or sales of trading securities. Proceeds from the sale of trading securities were $3,648 during nine-month period ended September 30, 2016. Gross gains of $3 and gross losses of $45 were recognized on these sales.

Tax provisions related to the gains on sales of registered mutual funds and MBS available-for-sale recognized during the three-month and nine-month periods ended September 30, 2015 are disclosed in the condensed consolidated statements of comprehensive income.

The following table summarizes the gross unrealized losses and fair value of investment securities aggregated by investment category and the length of time the securities were in a continuous unrealized loss position for the periods indicated:

	September 30, 2016
	Less than 12 Consecutive Months				12 Consecutive Months or Longer				Total

	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Investment securities held-to-maturity:
TRUPS	$	-	$	-	$	2,306	$	429	$	2,306	$	429

Investment securities available-for-sale:
Registered Mutual Funds		-		-		1,823		122		1,823		122
Pass-through MBS issued by GSEs		3,262		6		-		-		3,262		6

	December 31, 2015
	Less than 12 Consecutive Months				12 Consecutive Months or Longer				Total

	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Investment securities held-to-maturity:
TRUPS	$	-	$	-	$	2,359	$	345	$	2,359	$	345

Investment securities available-for-sale:
Registered Mutual Funds		3,026		259		-		-		3,026		259

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

At September 30, 2016, there were two TRUPS with unrealized holding losses for 12 or more consecutive months. The impairment of one of those 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 unrealized loss on the second TRUP with unrealized holding losses for 12 or more consecutive months was considered to be other than temporary. See below for a discussion of other than temporary impairment.

TRUPS with Other than Temporary Impairment

As of each reporting period through September 30, 2016, the Company 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 were determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI. As of September 30, 2016, five TRUPS were determined to meet the criteria for OTTI based upon this analysis, and no additional OTTI charges were recognized.

The following tables provide a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS, for which a portion of the impairment loss (non-credit factors) was recognized in other comprehensive income for the period ended:

	Three Months Ended September 30,
	2016									2015
	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	$	8,665		$	562		$	9,227		$	8,769		$	596		$	9,365
Amortization of previously recognized OTTI		(26	)		(9	)		(35	)		(26	)		(9	)		(35	)
Cumulative pre-tax balance at end of the period	$	8,639		$	553		$	9,192		$	8,743		$	587		$	9,330

	Nine Months Ended September 30,
	2016									2015
	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	$	8,717		$	578		$	9,295		$	8,945		$	569	$	9,514
Accretion (Amortization) of previously recognized OTTI		(78	)		(25	)		(103	)		(202	)		18		(184	)
Cumulative pre-tax balance at end of the period	$	8,639		$	553		$	9,192		$	8,743		$	587	$	9,330