NOTE (3) – Securities

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2014:	(In thousands)
Residential mortgage-backed	$	16,985	$	507	$	(42)	$	17,450
U.S. Government and federal agency	$	1,922	$	-	$	(6)	$	1,916
Total available-for-sale securities	$	18,907	$	507	$	(48)	$	19,366
December 31, 2013:
Residential mortgage-backed	$	8,917	$	480	$	-	$	9,397
Total available-for-sale securities	$	8,917	$	480	$	-	$	9,397

The amortized cost and fair value of the investment securities portfolios are shown by contractual maturity at March 31, 2014. 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, primarily residential mortgage-backed securities, are shown separately.

	Available-for-Sale
Maturity	Amortized Cost		Fair Value

	(In thousands)
Within one year	$	-	$	-
One to five years	-		-
Five to ten years	1,922		1,916
Beyond ten years	-		-
Residential mortgage-backed	16,985		17,450
Total	$	18,907	$	19,366

At March 31, 2014 and December 31, 2013, securities pledged to secure public deposits and FHLB advances had a carrying amount of $1.3 million and $9.4 million, respectively. At March 31, 2014 and December 31, 2013, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

During the three months ended March 31, 2014, $8.6 million of residential mortgage-backed securities and $1.9 million of U.S. Government and federal agency securities were purchased and were classified as available-for-sale. There were no sales of securities during the three months ended March 31, 2014 and 2013.

As of March 31, 2014, the Company’s investment securities portfolio consisted of $19.4 million of available-for-sale securities, $7.9 million of which were in an unrealized loss position for less than 12 months. The majority of unrealized losses are related to the Company’s mortgage-backed securities, which were all issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2014.