Securities (Notes)

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

SECURITIES

The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2016
Certificates of deposit	$	76,901	$	—	$	—		$	76,901
Equity mutual fund	500		15		—			515
Mortgage-backed securities - residential	15,796		756		—			16,552
Collateralized mortgage obligations - residential	5,917		16		(20		)	5,913
SBA-guaranteed loan participation certificates	18		—		—			18
	$	99,132	$	787	$	(20	)	$	99,899
December 31, 2015
Certificates of deposit	$	87,901	$	—	$	—		$	87,901
Equity mutual fund	500		7		—			507
Mortgage-backed securities - residential	18,330		880		(30		)	19,180
Collateralized mortgage obligations - residential	7,111		41		(10		)	7,142
SBA-guaranteed loan participation certificates	23		—		—			23
	$	113,865	$	928	$	(40	)	$	114,753

The mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at September 30, 2016 and December 31, 2015.

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2016
	Amortized Cost		Fair Value
Due in one year or less	$	76,901	$	76,901
Equity mutual fund	500		515
Mortgage-backed securities - residential	15,796		16,552
Collateralized mortgage obligations - residential	5,917		5,913
SBA-guaranteed loan participation certificates	18		18
	$	99,132	$	99,899

Sales of securities were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Proceeds	$	—	$	—	$	46	$	—
Gross gains	—		—		46		—
Gross losses	—		—		—		—

Securities with unrealized losses not recognized in income are as follows:

	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2016
Collateralized mortgage obligations - residential	$	3,030	$	(12	)	$	1,095	$	(8	)	$	4,125	$	(20	)
December 31, 2015
Mortgage-backed securities - residential	$	—	$	—		$	1,724	$	(30	)	$	1,724	$	(30	)
Collateralized mortgage obligations - residential	—		—			1,299		(10		)	1,299		(10		)
	$	—	$	—		$	3,023	$	(40	)	$	3,023	$	(40	)

The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary.

Certain collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at September 30, 2016, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs.