NOTE 4 - INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair value of securities available for sale and held to maturity at September 30, 2017 and December 31, 2016, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:

			Gross		Gross
(dollars in thousands)	Amortized		Unrealized		Unrealized			Fair
September 30, 2017	Cost		Gains		Losses			Value
Available for sale
Government agency securities	$	5,057	$	—	$	(100	)	$	4,957
Mortgage-backed securities
Government sponsored agencies		33,530		44		(318	)		33,256
Corporate debt securities		17,341		203		(60	)		17,484
	$	55,928	$	247	$	(478	)	$	55,697

Held to maturity
Municipal taxable securities	$	4,296	$	278	$	—		$	4,574
Municipal securities		895		16		—			911
	$	5,191	$	294	$	—		$	5,485

December 31, 2016
Available for sale
Government agency securities	$	5,453	$	—	$	(136	)	$	5,317
Mortgage-backed securities
Government sponsored agencies		23,913		38		(311	)		23,640
Corporate debt securities		10,364		21		(65	)		10,320
	$	39,730	$	59	$	(512	)	$	39,277

Held to maturity
Municipal taxable securities	$	5,301	$	328	$	—		$	5,629
Municipal securities		913		11		—			924
	$	6,214	$	339	$	—		$	6,553

One security with a fair value of $840,000 and $933,000 was pledged to secure a local agency deposit at September 30, 2017 and December 31, 2016, respectively.

The amortized cost and fair value of the investment securities portfolio at September 30, 2017 are shown by expected maturity below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(dollars in thousands)	Cost		Value		Cost		Value
Due from one to five years	$	31,323	$	31,214	$	2,781	$	2,930
Due from five to ten years		20,556		20,473		2,410		2,555
Due from ten years and greater		4,049		4,010		—		—
	$	55,928	$	55,697	$	5,191	$	5,485

The following table summarizes available for sale securities with unrealized losses at September 30, 2017 and December 31, 2016, aggregated by major security type and length of time in a continuous unrealized loss position. There were no held to maturity securities in a continuous unrealized loss position at September 30, 2017 and December 31, 2016:

	Less than Twelve Months					Twelve Months or More					Total
	Unrealized			Estimated		Unrealized			Estimated		Unrealized			Estimated
(dollars in thousands)	Losses			Fair Value		Losses			Fair Value		Losses			Fair Value
September 30, 2017
Government agency securities	$	(100	)	$	4,957	$	—		$	—	$	(100	)	$	4,957
Mortgage-backed securities
Government sponsored agencies		(255	)		26,916		(63	)		2,105		(318	)		29,021
Corporate debt securities		(60	)		5,994		—			—		(60	)		5,994
Total available for sale	$	(415	)	$	37,867	$	(63	)	$	2,105	$	(478	)	$	39,972

December 31, 2016
Government agency securities	$	(136	)	$	5,317	$	—		$	—	$	(136	)	$	5,317
Mortgage-backed securities
Government sponsored agencies		(221	)		16,231		(90	)		2,504		(311	)		18,735
Corporate debt securities		(65	)		5,147		—			—		(65	)		5,147
Total available for sale	$	(422	)	$	26,695	$	(90	)	$	2,504	$	(512	)	$	29,199

Unrealized losses have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach maturity.

Management evaluates securities for other-than-temporary impairment ("OTTI") on at least a semi-annual basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings.