NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2015 and December 31, 2014 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
September 30, 2015
Corporate debt	$	1,000	$	-	$	-	$	1,000
State and municipal		-		-		-		-
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		9,585		43		-		9,628
Mortgage-backed securities - residential		503		21		-		524
Collateralized mortgage obligations		406		15		-		421
Total	$	11,494	$	79	$	-	$	11,573


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2014
Corporate debt	$	2,932	$	5	$	1	$	2,936
State and municipal		897		-		11		886
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		5,018		-		7		5,011
Mortgage-backed securities - residential		687		40		-		727
Collateralized mortgage obligations		860		25		-		885
Total	$	10,394	$	70	$	19	$	10,445

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at September 30, 2015 or September 30, 2014.

There were no sales of securities for the three and nine months ended September 30, 2015 or September 30, 2014; however, there was an early redemption of a municipal security during the first quarter of 2015 which is reflected in net gain (loss) on sales of securities.

The amortized cost and fair value of debt securities at September 30, 2015 are shown in the table below 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, 2015				December 31, 2014
		Amortized		Fair		Amortized		Fair
		Cost		Value		Cost		Value
Due in one year or less	$	2,000	$	2,001	$	4,829	$	4,821
Due from one to five years		8,585		8,627		4,018		4,012
Mortgage-backed securities		503		524		687		727
Collateralized mortgage obligations		406		421		860		885
Total	$	11,494	$	11,573	$	10,394	$	10,445

Fair value of securities pledged was as follows:


	September 30,		December 31,
	2015		2014
Pledged as collateral for:
FHLB advances	$	3,643	$	4,208
Public deposits		2,052		2,476
Interest-rate swaps		289		353
Total	$	5,984	$	7,037

At September 30, 2015 and December 31, 2014, 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, 2015 and December 31, 2014 aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 2015	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 (1)	$	1,000	$	-	$	-	$	-	$	1,000	$	-
State and municipal		-		-		-		-		-		-
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury (1)		501		-		-		-		501		-
Total temporarily impaired	$	1,501	$	-	$	-	$	-	$	1,501	$	-

(1)

Securities with an unrealized loss were less than $1 resulting in rounding to zero.




December 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	$	1,259	$	1	$	-	$	-	$	1,259	$	1
State and municipal		-		-		886		11		886		11
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		5,011		7		-		-		5,011		7
Total temporarily impaired	$	6,270	$	8	$	886	$	11	$	7,156	$	19

The unrealized losses in Corporate debt and U.S Treasuries at September 30, 2015 are related to two securities. The unrealized losses in Corporate debt, State and municipal securities and U.S. Treasuries at December 31, 2014 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 September 30, 2015 and December 31, 2014.