INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2 – INVESTMENT SECURITIES

At September 30, 2015, the composition of the investment portfolio was:

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost Basis		Gains		Losses		Value
Available-for-sale securities:
U.S. Government agency mortgage-backed securities	$	23,738	$	167	$	(149)	$	23,756
U.S. Government agency collateralized mortgage obligations		9,015		191		-		9,206
Obligations of state and municipal subdivisions		20,745		278		(202)		20,821
Total available-for-sale securities	$	53,498	$	636	$	(351)	$	53,783

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost Basis		Gains		Losses		Value
Held-to-maturity securities:
U.S. Government agency mortgage-backed securities	$	10,490	$	169	$	(29)	$	10,630
Total held-to-maturity securities	$	10,490	$	169	$	(29)	$	10,630

At December 31, 2014, the composition of the investment portfolio was:

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost Basis		Gains		Losses		Value
Available-for-sale securities:
U.S. Government and agency obligations	$	5,000	$	42	$	-	$	5,042
U.S. Government agency mortgage-backed securities		51,904		1,332		(149)		53,087
U.S. Government agency collateralized mortgage obligations		12,802		378		(1)		13,179
Obligations of state and municipal subdivisions		5,920		310		-		6,230
Total available-for-sale securities	$	75,626	$	2,062	$	(150)	$	77,538

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost Basis		Gains		Losses		Value
Held-to-maturity securities:
U.S. Government agency mortgage-backed securities	$	13,441	$	212	$	(20)	$	13,633
Total held-to-maturity securities	$	13,441	$	212	$	(20)	$	13,633

For the three and nine months ended September 30, 2015 and September 30, 2014, the Company realized gross gains on sales of investment securities of $545,000, $1,034,000, $1,373,000, and $1,227,000 million, respectively.

 

The following is a summary of the fair values and related unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2015, and December 31, 2014:

At September 30, 2015 (In thousands)	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agency mortgage-backed securities	$	9,545	$	(114)	$	2,801	$	(35)	$	12,346	$	(148)
Obligations of state and municipal subdivisions		10,530		(189)		1722		(13)		12,252		(202)
Total securities in unrealized loss position	$	20,075	$	(303)	$	4,523	$	(48)	$	24,598	$	(351)

At December 31, 2014 (In thousands)	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agency collateralized mortgage obligations	$	10,804	$	(55)	$	6,300	$	(94)	$	17,104	$	(149)
U.S. Government agency mortgage-backed securities		1,351		(1)		-		-		1,351		(1)
Total securities in unrealized loss position	$	12,155	$	(56)	$	6,300	$	(94)	$	18,455	$	(150)

The amortized cost and fair value of securities at September 30, 2015 and December 31, 2014, by expected maturity, are set forth below. Actual maturities of mortgage-backed securities and collateralized mortgage obligations may differ from contractual maturities because the mortgages underlying the securities may be prepaid or called with or without call or prepayment penalties. Because these securities are not due at a single maturity date, the maturity information is not presented.

	Available-for-Sale				Held-to-Maturity
	Amortized				Amortized
At September 30, 2015	Cost		Fair Value		Cost		Fair Value
	(In thousands)
U.S. Government agency mortgage-backed securities	$	23,738	$	23,756	$	10,490	$	10,630
U.S. Government agency collateralized mortgage obligations		9,015		9,206		-		-
Subtotal		32,753		32,962		10,490		10,630
Securities with fixed maturities:
Due in one year or less		-		-		-		-
Due after one year through five years		-		-		-		-
Due after five years through ten years		8,225		8,289		-		-
Due after ten years		12,520		12,532		-		-
Subtotal		20,745		20,821		-		-
Total	$	53,498	$	53,783	$	10,490	$	10,630

	Available-for-Sale				Held-to-Maturity
	Amortized				Amortized
At December 31, 2014	Cost		Fair Value		Cost		Fair Value
	(In thousands)
U.S. Government agency mortgage-backed securities	$	51,904	$	53,087	$	13,441	$	13,633
U.S. Government agency collateralized mortgage obligations		12,802		13,179		-		-
Subtotal		64,706		66,266		13,441		13,633
Securities with fixed maturities:
Due in one year or less		-		-		-		-
Due after one year through five years		-		-		-		-
Due after five years through ten years		1,898		2,009		-		-
Due after ten years		9,022		9,263		-		-
Subtotal		10,920		11,272		-		-
Total	$	75,626	$	77,538	$	13,441	$	13,633

Pledged Securities

The following table summarizes the amortized cost and fair value of available for sale and held to maturity securities that are pledged as collateral for the following obligations:

	September 30, 2015				December 31, 2014
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value
			(In thousands)
State of Connecticut to secure public deposits	$	4,638	$	4,549	$	18,446	$	18,881
Total	$	4,638	$	4,549	$	18,446	$	18,881

Effective May 4, 2015 upon the termination of the Bank’s Formal Agreement with the OCC, the collateral requirement for public deposits with the State of Connecticut was reduced from 110% to 10% of the uninsured balance of public deposits.