NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2016 and December 31, 2015 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
September 30, 2016 (unaudited)
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	8,548	$	61	$	-	$	8,609
Mortgage-backed securities - residential		375		17		-		392
Collateralized mortgage obligations		217		8		-		225
Total	$	9,140	$	86	$	-	$	9,226


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2015
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	8,575	$	4	$	43	$	8,536
Mortgage-backed securities - residential		463		18		-		481
Collateralized mortgage obligations		339		12		-		351
Total	$	9,377	$	34	$	43	$	9,368

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at September 30, 2016 or September 30, 2015.

There were no sales of securities for the three and nine months ended September 30, 2016 or September 30, 2015; however, there was an early redemption of a municipal security during the first quarter of 2015 which is reflected in net gain (loss) on sales of securities.

The amortized cost and fair value of debt securities at September 30, 2016 and December 31, 2015 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, 2016					December 31, 2015
	(unaudited)
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	3,014	$	3,015	$	1,002	$	1,000
Due from one to five years		5,534		5,594		7,573		7,536
Mortgage-backed securities - residential		375		392		463		481
Collateralized mortgage obligations		217		225		339		351
Total	$	9,140	$	9,226	$	9,377	$	9,368

Fair value of securities pledged was as follows:


	September 30, 2016		December 31, 2015
	(unaudited)
Pledged as collateral for:
FHLB advances	$	3,390	$	3,530
Public deposits		2,053		2,055
Interest-rate swaps		214		261
Total	$	5,657	$	5,846

At September 30, 2016 and December 31, 2015, 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, 2016 and December 31, 2015 aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 2016 (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 (1)	$	1,512	$	-	$	-	$	-	$	1,512	$	-
Mortgage-backed securities - residential		-		-		-		-		-		-
Collateralized mortgage obligations		-		-		-		-		-		-
Total temporarily impaired	$	1,512	$	-	$	-	$	-	$	1,512	$	-

(1)

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




December 31, 2015	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	$	6,541	$	43	$	-	$	-	$	6,541	$	43
Mortgage-backed securities - residential		-		-		-		-		-		-
Collateralized mortgage obligations		-		-		-		-		-		-
Total temporarily impaired	$	6,541	$	43	$	-	$	-	$	6,541	$	43

The unrealized losses in U.S. Treasuries at September 30, 2016 and December 31, 2015 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 December 31, 2015.