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 June 30, 2017
	Amortized Cost⁽¹⁾		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities (“TRUP CDOs”) ⁽²⁾	$	5,315	$	3,161	$	(91	)	$	8,385

Investment securities available-for-sale:
Registered Mutual Funds		3,944		186		(81	)		4,049
Pass-through MBS issued by GSEs		333		10		-			343
Agency Collateralized Mortgage Obligation (“CMO”)		3,207		-		(54	)		3,153
Total investment securities available-for-sale		7,484		196		(135	)		7,545
Total investment securities	$	12,799	$	3,357	$	(226	)	$	15,930

⁽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 $708 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).

⁽²⁾ The Company sold its TRUP CDOs in August 2017, refer to Note 16 – Subsequent Events.

	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 17.5 years at June 30, 2017. At June 30, 2017, available-for-sale pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 10.6 years and a weighted average estimated duration of 1.0 year. As of June 30, 2017, the available-for-sale agency CMO security had a weighted average term to maturity of 2.6 years. All of the pass-through MBS securities issued by GSEs possess an annual interest rate adjustment.

Gross proceeds from the sales of registered mutual funds totaled $68 and $103 for the three-month and six-month periods ended June 30, 2017, respectively. There were no gains or losses recognized on these sales. There were no sales of registered mutual funds during the three-month or six-month periods ended June 30, 2016. There were no sales of pass-through MBS issued by GSEs during the three-month or six-month periods ended June 30, 2017 or 2016.There were no sales of agency collateralized mortgage obligation securities during the three-month or six-month periods ended June 30, 2017 or 2016.

Gross proceeds from the sales of trading securities were $4,544 during the three-month and six-month periods ended June 30, 2017. Gross gains of $63 and gross losses of $25 were recognized on these sales. Gross proceeds from the sales of trading securities were $3,648 during the three-month and six-month periods ended June 30, 2016. Gross gains of $3 and gross losses of $45 were recognized on these sales.

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:

	June 30, 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	$	-	$	-	$	2,549	$	91	$	2,549	$	91

Investment securities available-for-sale:
Registered Mutual Funds		1,099		25		1,595		56		2,694		81
Agency CMO		-		-		3,153		54		3,153		54

	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

The Company sold its $5,315 of TRUP CDOs in August 2017. The disclosures below are as of, or for the periods ended June 30, 2017 and 2016.

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

At June 30, 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

At June 30, 2017, the Company did 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 June 30, 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 June 30, 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 June 30,
	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	$	8,587		$	536		$	9,123		$	8,691		$	570		$	9,261
Amortization of previously recognized OTTI		(26	)		(9	)		(35	)		(26	)		(8	)		(34	)
Cumulative pre-tax balance at end of the period	$	8,561		$	527		$	9,088		$	8,665		$	562		$	9,227

	Six Months Ended June 30,
	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		(52	)		(17	)		(69	)		(52	)		(16	)		(68	)
Cumulative pre-tax balance at end of the period	$	8,561		$	527		$	9,088		$	8,665		$	562		$	9,227