SECURITIES (Tables)

3 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Composition of securities

(in thousands)	Amortized cost (1)	Gross un- realized gains	Gross un-realized losses	Fair value
June 30, 2012
Available-for-sale
U.S. Treasury notes	$             2,495	$                252	$                     -	$             2,747
U.S. Government Agency notes	12,519	282	-	12,801
Municipal bonds	45,902	1,774	(512)	47,164
Mortgage backed securities
U.S. Government Agencies	49,072	1,412	(1)	50,483
Collateralized mortgage obligations
U.S. Government Agencies	6,134	53	-	6,187
Non-agency	12,776	377	(282)	12,871
SBA bonds	3,195	71	-	3,266
Preferred Stock	20	123	-	143
Total securities available-for-sale	$         132,113	$             4,344	$              (795)	$         135,662
Non-marketable securities
Federal Home Loan Bank of Boston stock	$             5,747	$                    -	$                     -	$             5,747

(in thousands)	Amortized cost (1)	Gross un- realized gains	Gross un-realized losses	Fair value
December 31, 2011
Available-for-sale
U.S. Treasury notes	$             5,000	$                528	$                     -	$             5,528
U.S. Government Agency notes	14,544	380	-	14,924
Municipal bonds	50,881	1,067	(1,152)	50,796
Mortgage backed securities
U.S. Government Agencies	57,193	1,126	(19)	58,300
Collateralized mortgage obligations
U.S. Government Agencies	7,077	76	-	7,153
Non-agency	14,300	355	(488)	14,167
SBA bonds	3,629	77	-	3,706
Corporate bonds	1,100	4	-	1,104
Preferred Stock	20	96	-	116
Total securities available-for-sale	$         153,744	$             3,709	$           (1,659)	$         155,794
Held-to-maturity
Mortgage backed security	$                  50	$                    2	$                     -	$                  52
Non-marketable securities
Federal Home Loan Bank of Boston stock	$             6,032	$                    -	$                     -	$             6,032

Aggregate fair value and gross unrealized loss of securities

(in thousands)	Less than 12 Months		12 Months or Longer		Total
	Fair Value	Unrealized  losses	Fair value	Unrealized  losses	Fair Value	Unrealized losses
June 30, 2012
Available-for-sale
Municipal bonds	$          -	$            -	$  5,483	$          512	$  5,483	$         512
Mortgage backed securities	-	-	54	1	54	1
Collateralized mortgage obligations
Non-agency	-	-	1,864	84	1,864	84
Total temporarily impaired securities	-	-	7,401	597	7,401	597
Other-than-temporarily impaired securities
Collateralized mortgage obligations
Non-agency	-	-	3,551	198	3,551	198
Total temporarily and other-than-temporarily impaired securities	$          -	$            -	$ 10,952	$          795	$ 10,952	$         795

Activity related to credit losses recognized

Six months ended June 30 (in thousands)	2012	2011
Balance, beginning of period	$            1,128	$             1,128
Credit component on debt securities in which OTTI was not previously recognized	-	-
Balance, end of period	$            1,128	$             1,128