INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2016

The amortized cost and estimated fair value of investment securities are as follows:

	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available-for-sale	(in thousands)
U.S. government agency notes	$	3,762	$	8	$	(31	)	$	3,739
U.S. government agency collateralized mortgage obligations ("CMO")		18,175		65		(76	)		18,164
Equity securities: Farmer Mac class A stock		66		13		-			79
Total	$	22,003	$	86	$	(107	)	$	21,982

Securities held-to-maturity
U.S. government agency mortgage backed securities ("MBS")	$	9,218	$	402	$	(10	)	$	9,610
Total	$	9,218	$	402	$	(10	)	$	9,610

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available-for-sale	(in thousands)
U.S. government agency notes	$	11,257	$	5	$	(115	)	$	11,147
U.S. government agency CMO		12,235		54		(58	)		12,231
Equity securities: Farmer Mac class A stock		66		-		(3	)		63
Total	$	23,558	$	59	$	(176	)	$	23,441

Securities held-to-maturity
U.S. government agency MBS	$	7,025	$	374	$	-		$	7,399
Total	$	7,025	$	374	$	-		$	7,399

The maturity periods and weighted average yields of investment securities at September 30, 2016 and December 31, 2015 were as follows:

	September 30, 2016
	Less than One Year					One to Five Years					Five to Ten Years					Over Ten Years					Total
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Securities available-for-sale	(dollars in thousands)
U.S. government agency notes	$	2,001		2.6	%	$	-		-		$	1,738		1.3	%	$	-		-		$	3,739		2.0	%
U.S. government agency CMO		-		-			8,316		1.2	%		8,423		1.1	%		1,425		1.3	%		18,164		1.2	%
Farmer Mac class A stock		-		-			-		-			-		-			-		-			79		-
Total	$	2,001		2.6	%	$	8,316		1.2	%	$	10,161		1.1	%	$	1,425		1.3	%	$	21,982		1.3	%

Securities held-to-maturity
U.S. government agency MBS	$	-		-		$	3,548		3.7	%	$	5,670		2.6	%	$	-		-		$	9,218		3.0	%
Total	$	-		-		$	3,548		3.7	%	$	5,670		2.6	%	$	-		-		$	9,218		3.0	%

	December 31, 2015
	Less than One Year					One to Five Years					Five to Ten Years					Over Ten Years					Total
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Securities available-for-sale	(dollars in thousands)
U.S. government agency notes	$	8,957		2.9	%	$	-		-		$	2,190		0.9	%	$	-		-		$	11,147		2.5	%
U.S. government agency CMO		-		-			4,337		1.3	%		4,527		0.7	%		3,367		1.2	%		12,231		1.0	%
Farmer Mac class A stock		-		-			-		-			-		-			-		-			63		-
Total	$	8,957		2.9	%	$	4,337		1.3	%	$	6,717		0.8	%	$	3,367		1.2	%	$	23,441		1.7	%

Securities held-to-maturity
U.S. government agency MBS	$	-		-		$	1,746		3.6	%	$	5,279		3.1	%	$	-		-		$	7,025		3.2	%
Total	$	-		-		$	1,746		3.6	%	$	5,279		3.1	%	$	-		-		$	7,025		3.2	%

The amortized cost and fair value of investment securities by contractual maturities as of the periods presented were as shown below:

	September 30,				December 31,
	2016				2015
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Securities available-for-sale	(in thousands)
Due in one year or less	$	1,993	$	2,001	$	9,053	$	8,957
After one year through five years		8,292		8,316		4,335		4,337
After five years through ten years		10,178		10,161		6,713		6,717
After ten years		1,474		1,425		3,391		3,367
Farmer Mac class A stock		66		79		66		63
	$	22,003	$	21,982	$	23,558	$	23,441
Securities held-to-maturity
Due in one year or less	$	-	$	-	$	-	$	-
After one year through five years		3,548		3,803		1,746		1,888
After five years through ten years		5,670		5,807		5,279		5,511
After ten years		-		-		-		-
	$	9,218	$	9,610	$	7,025	$	7,399

The following tables show all securities that are in an unrealized loss position:

	September 30, 2016
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities available-for-sale	(in thousands)
U.S. government agency notes	$	-	$	-	$	31	$	1,738	$	31	$	1,738
U.S. government agency CMO		25		8,325		51		1,749		76		10,074
Equity securities: Farmer Mac class A stock		-		-		-				-		-
	$	25	$	8,325	$	82	$	3,487	$	107	$	11,812
Securities held-to-maturity
U.S. Government-agency MBS	$	10	$	2,682	$	-	$	-	$	10	$	2,682
Total	$	10	$	2,682	$	-	$	-	$	10	$	2,682

	December 31, 2015
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities available-for-sale	(in thousands)
U.S. government agency notes	$	48	$	7,224	$	67	$	1,924	$	115	$	9,148
U.S. government agency CMO		9		1,654		49		1,945		58		3,599
Equity securities: Farmer Mac class A stock		-		-		3		63		3		63
	$	57	$	8,878	$	119	$	3,932	$	176	$	12,810
Securities held-to-maturity
U.S. Government-agency MBS	$	-	$	-	$	-	$	-	$	-	$	-
Total	$	-	$	-	$	-	$	-	$	-	$	-