NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2017 and December 31, 2016 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2017 (unaudited)
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	11,499	$	4	$	23	$	11,480
Mortgage-backed securities - residential		258		10		-		268
Collateralized mortgage obligations		127		3		-		130
Total	$	11,884	$	17	$	23	$	11,878


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2016
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	13,521	$	11	$	27	$	13,505
Mortgage-backed securities - residential		345		12		-		357
Collateralized mortgage obligations		189		7		-		196
Total	$	14,055	$	30	$	27	$	14,058

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at September 30, 2017 or September 30, 2016.

There were no sales of securities for the three and nine months ended September 30, 2017 and 2016.

The amortized cost and fair value of debt securities at September 30, 2017 and December 31, 2016 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, 2017					December 31, 2016
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,509	$	2,505	$	2,518	$	2,518
Due from one to five years		8,990		8,975		11,003		10,987
Mortgage-backed securities - residential		258		268		345		357
Collateralized mortgage obligations		127		130		189		196
Total	$	11,884	$	11,878	$	14,055	$	14,058

Fair value of securities pledged was as follows:


	September 30, 2017		December 31, 2016
	(unaudited)
Pledged as collateral for:
FHLB advances	$	4,702	$	2,327
Public deposits		2,031		2,043
Interest-rate swaps		163		195
Total	$	6,896	$	4,565

At September 30, 2017 and December 31, 2016, 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, 2017 and December 31, 2016 aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 2017 (unaudited)	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	8,484	$	23	$	-	$	-	$	8,484	$	23
Total temporarily impaired	$	8,484	$	23	$	-	$	-	$	8,484	$	23




December 31, 2016	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	10,492	$	27	$	-	$	-	$	10,492	$	27
Mortgage-backed securities - residential (1)		1		-		-		-		1		-
Total temporarily impaired	$	10,493	$	27	$	-	$	-	$	10,493	$	27

(1)

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

The unrealized losses in U.S. Treasuries at September 30, 2017 and December 31, 2016 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, 2017 and December 31, 2016.