SECURITIES (Tables)

3 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

Composition of securities

(in thousands)	Amortized cost (1)	Gross un- realized gains	Gross un-realized losses	Fair value
September 30, 2012
Available-for-sale
U.S. Treasury notes	$      2,495	$       250	$        -	$      2,745
U.S. Government Agency notes	7,517	238	-	7,755
Municipal bonds	45,363	2,107	(286)	47,184
Mortgage backed securities
U.S. Government Agencies	45,214	1,547	(1)	46,760
Collateralized mortgage obligations
U.S. Government Agencies	5,671	79	-	5,750
Non-agency	11,969	534	(119)	12,384
SBA bonds	2,946	87	-	3,033
Preferred Stock	20	34	-	54
Total securities available-for-sale	$  121,195	$     4,876	$   (406)	$  125,665
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
September 30, 2012
Available-for-sale
Municipal bonds	$ 592	$     5	$2,892	$    280	$3,484	$   285
Mortgage backed securities	-	-	53	1	53	1
Collateralized mortgage obligations
Non-agency	-	-	1,612	27	1,612	27
Total temporarily impaired securities	592	5	4,557	308	5,149	313
Other-than-temporarily impaired securities
Collateralized mortgage obligations
Non-agency	-	-	2,053	93	2,053	93
Total temporarily and other-than-temporarily impaired securities	$ 592	$     5	$6,610	$    401	$7,202	$   406

Activity related to credit losses recognized

Nine months ended September 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