SECURITIES (Tables)

3 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Composition of securities

The composition of securities is as follows:

(in thousands)	Amortized cost (1)		Gross un- realized gains		Gross un-realized losses			Fair value
September 30, 2013
Available-for-sale
U.S. Treasury notes	$	2,496	$	174	$	-		$	2,670
U.S. Government Agency notes		2,509		110		-			2,619
Municipal bonds		43,850		842		(2,119	)		42,573
Mortgage backed securities
U.S. Government Agencies		35,720		654		(60	)		36,314
Collateralized mortgage obligations
U.S. Government Agencies		3,807		41		-			3,848
Non-agency		8,492		423		(20	)		8,895
SBA bonds		2,260		101		-			2,361
Preferred Stock		20		516		-			536
Total securities available-for-sale	$	99,154	$	2,861	$	(2,199	)	$	99,816
Non-marketable securities
Federal Home Loan Bank of Boston stock	$	5,340	$	-	$	-		$	5,340

8

(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.

Aggregate fair value and gross unrealized loss of securities

	Less than 12 Months				12 Months or Longer				Total
(in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
September 30, 2013
Available-for-sale
Municipal bonds	$	20,617	$	1,497	$	1,926	$	622	$	22,543	$	2,119
Mortgage backed securities		4,689		59		42		1		4,731		60
Collateralized mortgage obligations
Non-agency		432		1		824		12		1,256		13
Total temporarily impaired securities		25,738		1,557		2,792		635		28,530		2,192
Other-than-temporarily impaired securities
Collateralized mortgage obligations
Non-agency		339		7		-		-		339		7
Total temporarily and other-than-temporarily impaired securities	$	26,077	$	1,564	$	2,792	$	635	$	28,869	$	2,199

Activity related to credit losses recognized in earnings

Nine months ended September 30 (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