9.	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:

	At March 31, 2017
	Amortized Cost⁽¹⁾		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities (“TRUP CDOs”)	$	5,332	$	2,873	$	(157	)	$	8,048

Investment securities available-for-sale:
Registered Mutual Funds		3,992		139		(130	)		4,001
Pass-through MBS issued by GSEs		346		11		-			357
Agency Collateralized Mortgage Obligation (“CMO”)		3,228		-		(65	)		3,163
Total investment securities available-for-sale		7,566		150		(195	)		7,521
Total investment securities	$	12,898	$	3,023	$	(352	)	$	15,569

⁽¹⁾ Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUP CDOs, amount is also net of the $729 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 December 31, 2016
	Amortized Cost⁽¹⁾		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUP CDOs	$	5,378	$	2,221	$	(303	)	$	7,296

Investment securities available-for-sale:
Registered Mutual Funds		4,011		62		(178	)		3,895
Pass-through MBS issued by GSEs		360		12		-			372
CMO		3,247		-		(61	)		3,186
Total investment securities available-for-sale		7,618		74		(239	)		7,453
Total investment securities	$	12,996	$	2,295	$	(542	)	$	14,749

⁽¹⁾ Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUP CDOs, amount is also net of the $755 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 TRUP CDOs had a weighted average term to maturity of 17.8 years at March 31, 2017. At March 31, 2017, available-for-sale pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 10.8 years and a weighted average estimated duration of 1.0 year. As of March 31, 2017, the available-for-sale agency CMO security had a weighted average term to maturity of 2.8 years. All of the pass-through MBS securities issued by GSEs possess an annual interest rate adjustment.

During the three-month period ended March 31, 2017, gross proceeds from the sales of registered mutual funds totaled $35. There were no gains or losses recognized on these sales. There were no sales of registered mutual funds or pass-through MBS issued by GSEs during the three-month period ended March 31, 2016.

There were no sales of trading securities during the three-month periods ended March 31, 2017 or 2016. 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.

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:

	March 31, 2017
	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:
TRUP CDOs	$	-	$	-	$	2,511	$	157	$	2,511	$	157

Investment securities available-for-sale:
Registered Mutual Funds		1,104		33		1,773		97		2,877		130
Agency CMO		3,163		65		-		-		3,163		65

	December 31, 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:
TRUP CDOs	$	-	$	-	$	2,439	$	303	$	2,439	$	303

Investment securities available-for-sale:
Registered Mutual Funds		1,308		47		1,747		131		3,055		178
Agency CMO		3,186		61		-		-		3,186		61

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

At March 31, 2017 there were two TRUP CDOs with unrealized holding losses for 12 or more consecutive months. The impairment of one of those TRUP CDOs 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 TRUP CDOs 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.

TRUP CDOs with Other than Temporary Impairment

As of each reporting period through March 31, 2017, 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 TRUP CDOs that were determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI. As of March 31, 2017, five TRUP CDOs were determined to meet the criteria for OTTI based upon this analysis, and no additional OTTI charges were recognized.

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

	Three Months Ended March 31,
	2017									2016
	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	$	8,613		$	544		$	9,157		$	8,717		$	578		$	9,295
Amortization of previously recognized OTTI		(26	)		(8	)		(34	)		(26	)		(8	)		(34	)
Cumulative pre-tax balance at end of the period	$	8,587		$	536		$	9,123		$	8,691		$	570		$	9,261