NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2020 and December 31, 2019 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, 2020 (unaudited)
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	9,523	$	151	$	-	$	9,674
Mortgage-backed securities - residential		69		3		-		72
Total	$	9,592	$	154	$	-	$	9,746


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2019
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury	$	7,986	$	32	$	1	$	8,017
Mortgage-backed securities - residential		126		4		-		130
Collateralized mortgage obligations		27		-		-		27
Total	$	8,139	$	36	$	1	$	8,174

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at September 30, 2020 or September 30, 2019.

There were no sales of securities for the three and nine months ended September 30, 2020 and 2019.

The amortized cost and fair value of debt securities at September 30, 2020 and December 31, 2019 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, 2020					December 31, 2019
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	5,520	$	5,551	$	5,001	$	5,000
Due from one to five years		4,003		4,123		2,985		3,017
Mortgage-backed securities - residential		69		72		126		130
Collateralized mortgage obligations		-		-		27		27
Total	$	9,592	$	9,746	$	8,139	$	8,174

Fair value of securities pledged as collateral was as follows:


	September 30, 2020		December 31, 2019
	(unaudited)
Pledged as collateral for:
FHLB advances	$	2,024	$	3,074
Public deposits		3,074		2,015
Mortgage banking derivatives		3,029		1,500
Interest-rate swaps		60		77
Total	$	8,187	$	6,666

At September 30, 2020 and December 31, 2019, 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.

There were no unrealized losses at September 30, 2020.

The following table summarizes securities with unrealized losses at December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position.




December 31, 2019	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)	$	499	$	-	$	2,501	$	1	$	3,000	$	1
Total temporarily impaired	$	499	$	-	$	2,501	$	1	$	3,000	$	1

⁽¹⁾

Unrealized losses in an amount less than $1 have been rounded down to zero.

The unrealized losses in U.S. Treasuries at December 31, 2019 were related to multiple securities. Because the decline in fair value was attributable to changes in market conditions, and not credit quality, and because the Company did not have the intent to sell these securities and it was likely that it would 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, 2019.