NOTE 3 – SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2012 and December 31, 2011 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, 2012
Issued by U.S. government-sponsored entities and agencies:
Mortgage-backed securities—residential	$	1,564	$	107	$	—	$	1,671
Collateralized mortgage obligations		12,404		225		—		12,629

Total	$	13,968	$	332	$	—	$	14,300


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2011
Issued by U.S. government-sponsored entities and agencies:
Mortgage-backed securities—residential	$	1,475	$	198	$	—	$	1,673
Collateralized mortgage obligations		16,655		204		16		16,843

Total	$	18,130	$	402	$	16	$	18,516

There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at September 30, 2012 or December 31, 2011.

The proceeds from the sales of securities for the three and nine months ended September 30, 2012 and 2011 are listed below.


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Proceeds	$	—	$	8,036	$	2,144	$	8,036
Gross gains		—		232		143		232
Gross losses		—		—		—		—

Tax effect—expense	$	—	$	—	$	—	$	—

At September 30, 2012 and December 31, 2011, there were no debt securities contractually due at a single maturity date. The amortized cost and fair value of mortgage-backed securities and collateralized mortgage obligations which are not due at a single maturity date, totaled $13,968 and $14,300 at September 30, 2012, respectively, and $18,130 and $18,516 at December 31, 2011, respectively.

Fair value of securities pledged was as follows:


	September 30, 2012		December 31, 2011
Pledged as collateral for:
FHLB advances	$	6,691	$	9,336
Public deposits		1,610		2,820
Customer repurchase agreements		—		3,557
Interest-rate swaps		1,480		1,464

Total	$	9,781	$	17,177

At September 30, 2012 and December 31, 2011, 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 securities with unrealized losses at September 30, 2012. The following table summarizes securities with unrealized losses at December 31, 2011 aggregated by major security type and length of time in a continuous unrealized loss position.


	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:
Collateralized mortgage obligations	$	2,882	$	16	$	—	$	—	$	2,882	$	16

Total temporarily impaired	$	2,882	$	16	$	—	$	—	$	2,882	$	16

The unrealized loss at December 31, 2011 is related to two Ginnie Mae collateralized mortgage obligations. These securities carry the full faith and credit guarantee of the U.S. government. 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, 2011.