Securities

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

Securities

NOTE (4) – Securities

The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios at September 30, 2012 and December 31, 2011 and the corresponding amounts of unrealized gains which are recognized in accumulated other comprehensive income (loss) were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
September 30, 2012:
Residential mortgage-backed	$	13,735	$	849	$	0	$	14,584
Total available-for-sale securities	$	13,735	$	849	$	0	$	14,584
December 31, 2011:
Residential mortgage-backed	$	17,008	$	902	$	0	$	17,910
U.S. Government and federal agency		1,000		69		0		1,069
Total available-for-sale securities	$	18,008	$	971	$	0	$	18,979

At September 30, 2012, the Bank’s investment portfolio consisted of residential mortgage-backed securities with an estimated remaining life of 4.6 years. 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 pledged had a carrying amount of $1.6 million and $1.5 million, respectively, at September 30, 2012 and December 31, 2011, and were pledged to secure public deposits. At September 30, 2012 and December 31, 2011, 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 shareholders’ equity. During the nine months ended September 30, 2012, $1.0 million of U.S federal agency bonds were sold and the Company recognized a gain of $50 thousand. There were no sales of securities during the nine months ended September 30, 2011.

There were no securities with unrealized losses at September 30, 2012 and December 31, 2011. We evaluate securities for other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair value has been less than the cost, and our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.