NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at June 30, 2017 and December 31, 2016 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
June 30, 2017 (unaudited)
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	12,506	$	7	$	23	$	12,490
Mortgage-backed securities - residential		274		10		-		284
Collateralized mortgage obligations		146		5		-		151
Total	$	12,926	$	22	$	23	$	12,925


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2016
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	13,521	$	11	$	27	$	13,505
Mortgage-backed securities - residential		345		12		-		357
Collateralized mortgage obligations		189		7		-		196
Total	$	14,055	$	30	$	27	$	14,058

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at June 30, 2017 or June 30, 2016.

There were no sales of securities for the three and six months ended June 30, 2017 and 2016.

The amortized cost and fair value of debt securities at June 30, 2017 and December 31, 2016 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.



	June 30, 2017					December 31, 2016
	(unaudited)
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	3,014	$	3,010	$	2,518	$	2,518
Due from one to five years		9,492		9,480		11,003		10,987
Mortgage-backed securities - residential		274		284		345		357
Collateralized mortgage obligations		146		151		189		196
Total	$	12,926	$	12,925	$	14,055	$	14,058

Fair value of securities pledged was as follows:


	June 30, 2017		December 31, 2016
	(unaudited)
Pledged as collateral for:
FHLB advances	$	4,731	$	2,327
Public deposits		2,036		2,043
Interest-rate swaps		173		195
Total	$	6,940	$	4,565

At June 30, 2017 and December 31, 2016, 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 June 30, 2017 and December 31, 2016 aggregated by major security type and length of time in a continuous unrealized loss position.



June 30, 2017 (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	$	8,496	$	23	$	-	$	-	$	8,496	$	23
Mortgage-backed securities - residential (1)		1		-		-		-		1		-
Total temporarily impaired	$	8,497	$	23	$	-	$	-	$	8,497	$	23

(1)

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




December 31, 2016	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	$	10,492	$	27	$	-	$	-	$	10,492	$	27
Mortgage-backed securities - residential (1)		1		-		-		-		1		-
Total temporarily impaired	$	10,493	$	27	$	-	$	-	$	10,493	$	27

(1)

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

The unrealized losses in U.S. Treasuries at June 30, 2017 and December 31, 2016 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 June 30, 2017 and December 31, 2016.