Note 4 - Securities

A summary of the amortized cost and fair value of securities, with gross unrealized gains and losses, follows:


	December 31, 2015
	Amortized	Gross Unrealized		Fair
	Cost	Gains	Losses	Value
Held-to-maturity
U.S. agency obligations	$2,519	$130	$ -	$2,649

Available-for-sale
U.S. agency obligations	$19,606	$3	$(799)	$18,810
Mortgage-backed securities	10,778	4	(135)	10,647
Municipals	4,984	84	(34)	5,034
Corporates	1,521	-	(16)	1,505

	$36,889	$91	$(984)	$35,996



	December 31, 2014
	Amortized	Gross Unrealized		Fair
	Cost	Gains	Losses	Value
Held-to-maturity
U.S. agency obligations	$2,528	$171	$ -	$2,699

Available-for-sale
U.S. agency obligations	$14,090	$ -	$(592)	$13,498
Mortgage-backed securities	2,042	-	(60)	1,982
Municipals	7,832	114	(47)	7,899
Corporates	1,020	-	(4)	1,016

	$24,984	$114	$(703)	$24,395

Temporarily Impaired Securities

The following tables show the gross unrealized losses and fair value of the Bank’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 and 2014:

Note 4 –Securities (continued)


December 31, 2015	Less than 12 months		More than 12 months		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Losses	Value	Losses	Value	Losses

U.S. agency obligations	$7,160	$353	$10,650	$446	$17,810	$799
Mortgage-backed securities	6,726	77	1,979	58	8,705	135
Corporates	1,505	16	-	-	1,505	16
Municipals	2,341	25	503	9	2,844	34

Total temporarily impaired securities	$17,732	$471	$13,132	$513	$30,864	$984


December 31, 2014	Less than 12 months		More than 12 months		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Losses	Value	Losses	Value	Losses

U.S. agency obligations	$999	$1	$11,502	$591	$12,501	$592
Mortgage-backed securities	-	-	1,982	60	1,982	60
Corporates	-	-	1,016	4	1,016	4
Municipals	771	9	3,192	38	3,963	47

Total temporarily impaired securities	$1,770	$10	$17,692	$693	$19,462	$703

U.S. agency obligations. The unrealized losses on the 16 investments in U.S. agency obligations at December 31, 2015 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2015. Each of these 16 investments carries an S&P investment grade rating of AA.

Note 4 –Securities (continued)

Mortgage-backed securities. The unrealized loss on the four investments in U.S. government agency mortgage-backed securities at December 31, 2015 was caused by an increase in interest rates. The contractual terms of those investments does not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2015. Each of these four investments carries an S&P investment grade rating of AA.

Municipals. The unrealized losses on the six investments in municipal obligations at December 31, 2015 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2015. Each of these six investments carries an S&P investment grade rating of AA or above.

Corporates. The unrealized losses on the three investments in domestic corporate issued securities at December 31, 2015 were caused by an increase in interest rates. The contractual terms of those investments does not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2015. Each of these three investments carries an S&P investment grade rating of AA.

The amortized costs and fair values of securities at December 31, 2015, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Held-to-Maturity		Available-for-Sale
	Amortized	Fair	Amortized	Fair
	Cost	Values	Cost	Values

Due in one year or less	$ -	$ -	$ -	$ -
Due after one year through five years	2,519	2,649	479	496
Due after five years through ten years	-	-	13,171	12,853
Due after ten years	-	-	23,239	22,647

	$2,519	$2,649	$36,889	$35,996

The Bank received $13,440 in proceeds from sales of securities available-for-sale in 2015. Gross realized gains amounted to $52 and gross realized losses amounted to $3. The Bank received $27,708 in proceeds from sales of securities available-for-sale in 2014. Gross realized gains amounted to $160 and gross realized losses amounted to $17.

Note 4 –Securities (continued)

The amortized costs of securities pledged as collateral for public deposits and other short term borrowings were approximately $11,795 and $11,828 (fair value of $11,706 and $11,828) at December 31, 2015 and 2014, respectively.