Securities Available for Sale

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

Note 4. Securities Available for Sale

	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Residential mortgage-backed agencies	$	22,356	$	96	$	(71	)	$	22,381
SBA pools		2,645		4		(3	)		2,646
Obligations of states and political subdivisions		10,201		162		(20	)		10,343
Government-sponsored enterprise equity		40		85		-			125
	$	35,242	$	347	$	(94	)	$	35,495

	December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
Residential mortgage-backed agencies	$	22,677	$	60	$	(192	)	$	22,545
SBA pools		1,835		6		(9	)		1,832
Obligations of states and political subdivisions		9,474		250		(26	)		9,698
Government-sponsored enterprise equity		40		62		-			102
	$	34,026	$	378	$	(227	)	$	34,177

Contractual maturities: The amortized cost and fair value of securities available for sale as of September 30, 2015, by contractual maturity are shown below. Maturities may differ from contractual maturities in residential mortgage-backed securities and Small Business Administration (SBA) pools because the mortgages underlying the securities may be called or repaid without any penalties. In addition, government-sponsored enterprise equity securities have no maturity. Therefore, these securities are not included in the maturity categories in the following maturity summary.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	872	$	873
Due in one to five years		3,695		3,739
Due after five through 10 years		3,890		3,951
Due after 10 years		1,744		1,780
		10,201		10,343
Residential mortgage-backed agencies		22,356		22,381
SBA pools		2,645		2,646
Government-sponsored enterprise equity		40		125
	$	35,242	$	35,495

Pledged securities: Securities with a carrying value of $30,556 and $20,961 at September 30, 2015 and December 31, 2014, respectively, were pledged to secure borrowed funds and for other purposes as required or permitted by law.

Changes in other comprehensive income—unrealized gains on securities available for sale:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning	$	41		$	80		$	93		$	(264	)
Unrealized gains  during the year		208			-			119			417
Deferred tax effect relating to unrealized gain		(79	)		(1	)		(42	)		(74	)
Balance, ending	$	170		$	79		$	170		$	79

Temporarily impaired securities:

	September 30, 2015
	Continuous Unrealized				Continuous Unrealized
	Losses Existing				Losses Existing
	12 Months or Less				Greater Than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Residential mortgage- backed agencies	$	4,197	$	9	$	8,575	$	62	$	12,772	$	71
SBA Pools		1,049		3		-		-		1,049		3
Obligations of states and political subdivisions		490		4		920		16		1,410		20
	$	5,737	$	16	$	9,495	$	78	$	15,232	$	94

	December 31, 2014
	Continuous Unrealized				Continuous Unrealized
	Losses Existing				Losses Existing
	12 Months or Less				Greater Than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Residential mortgage-backed agencies	$	5,679	$	20	$	10,566	$	172	$	16,245	$	192
SBA pools		-		-		1,250		9		1,250		9
Obligations of states and political subdivisions		1,495		6		1,180		20		2,675		26
	$	7,174	$	26	$	12,996	$	201	$	20,170	$	227

There were 25 and 37 securities in unrealized loss positions as of September 30, 2015 and December 31, 2014, respectively.

Unrealized losses are deemed to be temporary. Most of these underlying securities consist of mortgage-backed securities. Market fluctuations are caused primarily by changes in interest rates and prepayments of underlying mortgages. Volatility in economic conditions influences the prices of these securities. There were no sales of available-for-sale securities during the nine months ended September 30, 2015 and 2014.