NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 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
September 30, 2014
Corporate debt	$	4,308	$	14	$	1	$	4,321
State and municipal		1,902		1		19		1,884
Issued by U.S. government-sponsored entities and agencies:
Mortgage-backed securities - residential		728		40		-		768
Collateralized mortgage obligations		1,138		32		-		1,170
Total	$	8,076	$	87	$	20	$	8,143


			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 September 30, 2014 or December 31, 2013.

There were no sales of securities for the three and nine months ended September 30, 2014 or September 30, 2013.

The amortized cost and fair value of debt securities at September 30, 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.



		September 30, 2014				December 31, 2013
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value
Due in one year or less	$	4,272	$	4,280	$	2,386	$	2,379
Due from one to five years		1,938		1,925		3,900		3,903
Mortgage-backed securities		728		768		934		983
Collateralized mortgage obligations		1,138		1,170		2,354		2,407
Total	$	8,076	$	8,143	$	9,574	$	9,672

Fair value of securities pledged was as follows:


	September 30,		December 31,
	2014		2013
Pledged as collateral for:
FHLB advances	$	1,384	$	2,024
Public deposits		2,057		905
Interest-rate swaps		365		443
Total	$	3,806	$	3,372

At September 30, 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 September 30, 2014 and December 31, 2013 aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 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	$	232	$	1	$	-	$	-	$	232	$	1
State and municipal		-		-		881		19		881		19
Total temporarily impaired	$	232	$	1	$	881	$	19	$	1,113	$	20




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 September 30, 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 maturity, the Company did not consider these securities to be other-than-temporarily impaired at September 30, 2014 and December 31, 2013.

There was no unrealized loss in Collateralized mortgage obligations at September 30, 2014 and December 31, 2013.