NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at March 31, 2014 and December 31, 2013 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
March 31, 2014
Corporate debt	$	4,343	$	13	$	5	$	4,351
State and municipal		1,918		-		29		1,889
Issued by U.S. government-sponsored entities and agencies:
Mortgage-backed securities - residential		840		42		-		882
Collateralized mortgage obligations		1,899		53		-		1,952
Total	$	9,000	$	108	$	34	$	9,074


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2013
Corporate debt	$	4,360	$	11	$	8	$	4,363
State and municipal		1,926		-		7		1,919
Issued by U.S. government-sponsored entities and agencies:								-
Mortgage-backed securities - residential		934		49		-		983
Collateralized mortgage obligations		2,354		53		-		2,407

Total	$	9,574	$	113	$	15	$	9,672

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at March 31, 2014 or March 31, 2013.

There were no sales of securities for the three months ended March 31, 2014 or March 31, 2013.

The amortized cost and fair value of debt securities at March 31, 2014 are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



		March 31, 2014				December 31, 2013
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value
Due in one year or less	$	2,379	$	2,373	$	2,386	$	2,379
Due from one to five years		3,882		3,867		3,900		3,903
Mortgage-backed securities		840		882		934		983
Collateralized mortgage obligations		1,899		1,952		2,354		2,407

Total	$	9,000	$	9,074	$	9,574	$	9,672

Fair value of securities pledged was as follows:


	March 31,		December 31,
	2014		2013
Pledged as collateral for:
FHLB advances	$	1,789	$	2,024
Public deposits		604		905
Interest-rate swaps		422		443
Total	$	2,815	$	3,372

At March 31, 2014 and December 31, 2013, there were no holdings of securities of any one issuer, other than U.S. government-sponsored entities and agencies, in an amount greater than 10% of stockholders’ equity.

The following table summarizes securities with unrealized losses at March 31, 2014 and December 31, 2013 aggregated by major security type and length of time in a continuous unrealized loss position.



March 31, 2014	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Corporate debt	$	238	$	-	$	1,001	$	5	$	1,239	$	5
State and municipal		1,011		1		878		28		1,889		29
Total temporarily impaired	$	1,249	$	1	$	1,879	$	33	$	3,128	$	34




December 31, 2013	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Corporate debt	$	239	$	1	$	1,002	$	7	$	1,241	$	8
State and municipal		1,015		1		904		6		1,919		7
Total temporarily impaired	$	1,254	$	2	$	1,906	$	13	$	3,160	$	15

The unrealized losses in Corporate debt and State and municipal securities at March 31, 2014 and December 31, 2013, are related to multiple securities. Because the decline in fair value is attributable to changes in market conditions, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell these securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at March 31, 2014 and December 31, 2013.

There was no unrealized loss in Collateralized mortgage obligations at March 31, 2014 and December 31, 2013.