NOTE 3 – SECURITIES

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


			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


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2013
Corporate debt	$	4,360	$	11	$	8	$	4,363
State and municipal		1,926		-		7		1,919
Issued by U.S. government-sponsored entities and agencies:								-
Mortgage-backed securities - residential		934		49		-		983
Collateralized mortgage obligations		2,354		53		-		2,407
Total	$	9,574	$	113	$	15	$	9,672

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at December 31, 2014 or December 31, 2013.

The proceeds from the sales of securities and the associated gains in 2014, 2013 and 2012 are listed below.


	2014		2013		2012
Proceeds	$	-	$	-	$	2,144
Gross gains		-		-		143
Gross losses		-		-		-

Tax effect-expense	$	-	$	-	$	-

The amortized cost and fair value of debt securities at December 31, 2014 are shown 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.



	December 31, 2014				December 31, 2013
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	4,829	$	4,821	$	2,386	$	2,379
Due from one to five years		4,018		4,012		3,900		3,903
Mortgage-backed securities		687		727		934		983
Collateralized mortgage obligations		860		885		2,354		2,407
Total	$	10,394	$	10,445	$	9,574	$	9,672

Fair value of securities pledged was as follows:


	2014		2013			2012
Pledged as collateral for:
FHLB advances	$	4,208	$	2,024	$	4,707
Public deposits		2,476		905		2,199
Interest-rate swaps		353		443		1,511
Total	$	7,037	$	3,372	$	8,417

At year-end 2014 and 2013, 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 December 31, 2014 and December 31, 2013 aggregated by major security type and length of time in a continuous unrealized loss position.


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
Collateralized mortgage obligations		-		-		-		-		-		-
Total temporarily impaired	$	6,270	$	8	$	886	$	11	$	7,156	$	19




December 31, 2013	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	$	239	$	1	$	1,002	$	7	$	1,241	$	8
State and municipal		1,015		1		904		6		1,919		7
Total temporarily impaired	$	1,254	$	2	$	1,906	$	13	$	3,160	$	15

The unrealized losses in Corporate debt, State and municipal securities and U.S. Treasuries at December 31, 2014 and December 31, 2013, 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 will unlikely be required to sell these securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at December 31, 2014 and December 31, 2013.

There was no unrealized loss in Collateralized mortgage obligations at December 31, 2014 and December 31, 2013.