NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2019 and December 31, 2018 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2019 (unaudited)
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	8,982	$	33	$	8	$	9,007
Mortgage-backed securities - residential		134		4		-		138
Collateralized mortgage obligations		37		1		-		38
Total	$	9,153	$	38	$	8	$	9,183


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2018
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	9,978	$	2	$	99	$	9,881
Mortgage-backed securities - residential		167		3		-		170
Collateralized mortgage obligations		62		1		-		63
Total	$	10,207	$	6	$	99	$	10,114

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at September 30, 2019 or September 30, 2018.

There were no sales of securities for the three and nine months ended September 30, 2019 and 2018.

The amortized cost and fair value of debt securities at September 30, 2019 and December 31, 2018 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, 2019					December 31, 2018
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	5,000	$	4,994	$	3,495	$	3,472
Due from one to five years		3,982		4,013		6,483		6,409
Mortgage-backed securities - residential		134		138		167		170
Collateralized mortgage obligations		37		38		62		63
Total	$	9,153	$	9,183	$	10,207	$	10,114

Fair value of securities pledged as collateral was as follows:


	September 30, 2019		December 31, 2018
	(unaudited)
Pledged as collateral for:
FHLB advances	$	3,580	$	4,058
Public deposits		2,015		1,997
Mortgage banking derivatives		1,498		-
Interest-rate swaps		82		104
Total	$	7,175	$	6,159

At September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018, aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 2019 (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	$	500		1	$	3,993	$	7	$	4,493	$	8
Total temporarily impaired	$	500	$	1	$	3,993	$	7	$	4,493	$	8




December 31, 2018	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	$	499	$	1	$	8,401	$	98	$	8,900	$	99
Total temporarily impaired	$	499	$	1	$	8,401	$	98	$	8,900	$	99

The unrealized losses in U.S. Treasuries at September 30, 2019 and December 31, 2018 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 September 30, 2019 and December 31, 2018.