13. CONCENTRATIONS

Loans

The following table presents the Company’s loan portfolio disaggregated by class of loan at December 31, 2013 and each class’s percentage of total loans and total assets (dollars in thousands):

At December 31,	2013		% of total loans			% of total assets
Commercial and industrial	$	171,199		16.0	%		10.1	%
Commercial real estate		469,357		43.9			27.6
Multifamily		184,624		17.3			10.9
Real estate construction		6,565		0.6			0.4
Residential mortgages		169,552		15.9			10.0
Home equity		57,112		5.3			3.4
Consumer		10,439		1.0			0.6
Total loans	$	1,068,848		100.0	%		63.0	%

Commercial and industrial loans, unsecured or secured by collateral other than real estate, present significantly greater risk than other types of loans. The Company obtains, whenever possible, both the personal guarantees of the principal and cross-guarantees among the principal’s business enterprises. Commercial real estate loans (exclusive of multifamily loans) present greater risk than residential mortgages. The Company has attempted to minimize the risks of these loans by considering several factors, including the creditworthiness of the borrower, location, condition, value and the business prospects for the security property. A majority of the Company’s consumer loans are indirect dealer-generated loans secured by automobiles. Most of these loans are made to residents of the Company’s primary lending area. Each loan is small in amount.

Investment Securities

The following presents the Company’s investment portfolio disaggregated by category of security at December 31, 2013 and each category’s percentage of total investment securities and total assets (dollars in thousands):

At December 31,	2013		% of total investment securities			% of total assets
U.S. Government agency securities	$	100,095		24.3	%		5.9	%
Corporate bonds		15,651		3.8			0.9
Collateralized mortgage obligations		30,104		7.3			1.8
Mortgage-backed securities		97,767		23.7			5.8
Obligations of states and political subdivisions		168,829		40.9			9.9
Total investment securities	$	412,446		100.0	%		24.3	%

Obligations of states and political subdivisions present slightly greater risk than securities backed by the U.S. Government, but significantly less risk than loans as they are backed by the full faith and taxing power of the issuer, most of which are located in the state of New York. MBS and CMOs are both backed by pools of mortgages. However, CMOs provide more predictable cash flows since payments are assigned to specific tranches of securities in the order in which they are received. The Company invests in senior tranches, some of which provide for prioritized receipt of cash flows.