SECURITIES (Tables)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Composition of securities

(in thousands)	Amortized cost (1)		Gross un- realized gains		Gross un-realized losses			Fair value
March 31, 2013
Available-for-sale
U.S. Treasury notes	$	2,496	$	223	$	—		$	2,719
U.S. Government Agency notes		7,514		183		—			7,697
Municipal bonds		44,235		1,883		(262	)		45,856
Mortgage backed securities
U.S. Government Agencies		42,782		1,204		(28	)		43,958
Collateralized mortgage obligations
U.S. Government Agencies		4,689		63		—			4,752
Non-agency		10,292		462		(64	)		10,690
SBA bonds		2,589		92		—			2,681
Preferred Stock		20		291		—			311
Total securities available-for-sale	$	114,617	$	4,401	$	(354	)	$	118,664
Non-marketable securities
Federal Home Loan Bank of Boston stock	$	5,340	$	—	$	—		$	5,340

(in thousands)	Amortized cost (1)		Gross un- realized gains		Gross un-realized losses			Fair value
December 31, 2012
Available-for-sale
U.S. Treasury notes	$	2,496	$	237	$	—		$	2,733
U.S. Government Agency notes		7,515		211		—			7,726
Municipal bonds		45,395		2,138		(168	)		47,365
Mortgage backed securities
U.S. Government Agencies		47,465		1,284		(20	)		48,729
Collateralized mortgage obligations
U.S. Government Agencies		5,131		66		—			5,197
Non-agency		11,081		494		(68	)		11,507
SBA bonds		2,781		82		—			2,863
Preferred Stock		20		147		—			167
Total securities available-for-sale	$	121,884	$	4,659	$	(256	)	$	126,287
Non-marketable securities
Federal Home Loan Bank of Boston stock	$	5,747	$	—	$	—		$	5,747

(1) Net of other-than-temporary impairment write-down recognized in earnings.

Securities in an unrealized loss position

	Less than 12 Months				12 Months or Longer				Total
(in thousands)	Fair Value		Unrealized  losses		Fair value		Unrealized  losses		Fair value		Unrealized losses
March 31, 2013
Available-for-sale
Municipal Bonds	$	1,325	$	56	$	2,316	$	206	$	3,641	$	262
Mortgage backed securities		2,735		27		43		1		2,778		28
Collateralized mortgage obligations
Non-agency		597		2		847		17		1,444		19
Total temporarily impaired securities		4,657		85		3,206		224		7,863		309
Other-than-temporarily impaired securities
Collateralized mortgage obligations
Non-agency		459		6		1,817		39		2,276		45
Total temporarily and other-than-temporarily impaired securities	$	5,116	$	91	$	5,023	$	263	$	10,139	$	354

Activity related to credit losses recognized in earnings

Three months ended March 31 (in thousands)	2013	2012
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