2.	INVESTMENT SECURITIES

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

	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available-for-sale	(in thousands)
U.S. government agency notes	$	14,525	$	54	$	(42	)	$	14,537
U.S. government agency collateralized mortgage obligations ("CMO")		15,217		78		(51	)		15,244
Equity securities: Farmer Mac class A stock		66		80		—			146
Total	$	29,808	$	212	$	(93	)	$	29,927

Securities held-to-maturity
U.S. government agency mortgage backed securities ("MBS")	$	8,190	$	280	$	(86	)	$	8,384
Total	$	8,190	$	280	$	(86	)	$	8,384

	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available-for-sale	(in thousands)
U.S. government agency notes	$	5,634	$	—	$	(62	)	$	5,572
U.S. government agency collateralized mortgage obligations ("CMO")		17,031		48		(85	)		16,994
Equity securities: Farmer Mac class A stock		66		49		—			115
Total	$	22,731	$	97	$	(147	)	$	22,681

Securities held-to-maturity
U.S. government agency mortgage backed securities ("MBS")	$	9,002	$	298	$	(151	)	$	9,149
Total	$	9,002	$	298	$	(151	)	$	9,149

At September 30, 2017 and December 31, 2016, $38.0 million and $31.7 million of securities at carrying value, respectively, were pledged to the Federal Home Loan Bank (“FHLB”), as collateral for current and future advances.

The maturity periods and weighted average yields of investment securities at the period ends indicated were as follows:

	September 30, 2017
	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	$	1,995		2.6	%	$	1,864		1.6	%	$	10,678		2.0	%	$	—		—		$	14,537		2.0	%
U.S. government agency CMO		—		—			3,571		1.8	%		8,694		1.7	%		2,979		2.1	%		15,244		1.8	%
Farmer Mac class A stock		—		—			—		—			—		—			—		—			146		—
Total	$	1,995		2.6	%	$	5,435		1.7	%	$	19,372		1.9	%	$	2,979		2.1	%	$	29,927		1.9	%

Securities held-to-maturity
U.S. government agency MBS	$	—		—		$	2,086		3.7	%	$	6,104		3.1	%	$	—		—		$	8,190		3.2	%
Total	$	—		—		$	2,086		3.7	%	$	6,104		3.1	%	$	—		—		$	8,190		3.2	%

	December 31, 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	$	1,973		2.6	%	$	1,963		0.8	%	$	1,636		1.3	%	$	—		—		$	5,572		1.6	%
U.S. government agency CMO		—		—			2,063		1.9	%		11,827		1.1	%		3,104		1.5	%		16,994		1.2	%
Farmer Mac class A stock		—		—			—		—			—		—			—		—			115		—
Total	$	1,973		2.6	%	$	4,026		1.4	%	$	13,463		1.1	%	$	3,104		1.5	%	$	22,681		1.3	%

Securities held-to-maturity
U.S. government agency MBS	$	—		—		$	797		5.0	%	$	5,531		3.2	%	$	2,674		2.5	%	$	9,002		3.2	%
Total	$	—		—		$	797		5.0	%	$	5,531		3.2	%	$	2,674		2.5	%	$	9,002		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, 2017				December 31, 2016
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Securities available-for-sale
Due in one year or less	$	1,996	$	1,995	$	1,995	$	1,973
After one year through five years		5,447		5,435		4,027		4,026
After five years through ten years		19,304		19,372		13,508		13,463
After ten years		2,995		2,979		3,135		3,104
Farmer Mac class A stock		66		146		66		115
	$	29,808	$	29,927	$	22,731	$	22,681
Securities held-to-maturity
Due in one year or less	$	-	$	-	$	-	$	-
After one year through five years		2,086		2,221		797		864
After five years through ten years		6,104		6,163		5,531		5,762
After ten years		-		-		2,674		2,523
	$	8,190	$	8,384	$	9,002	$	9,149

Actual maturities may differ from contractual maturities as borrowers or issuers have the right to prepay or call the investment securities. Changes in interest rates may also impact prepayments.

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

	September 30, 2017
	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		$	35	$	8,452	$	7	$	1,384	$	42	$	9,836
U.S. government agency CMO			—		—		51		3,562		51		3,562
Equity securities: Farmer Mac class A stock			—		—		—		—		—		—
		$	35	$	8,452	$	58	$	4,946	$	93	$	13,398
Securities held-to-maturity
U.S. Government-agency MBS		$	—	$	—	$	86	$	2,538	$	86	$	2,538
Total		$	—	$	—	$	86	$	2,538	$	86	$	2,538

	December 31, 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		$	29	$	3,936	$	33	$	1,636	$	62	$	5,572
U.S. government agency CMO			35		7,930		50		1,601		85		9,531
Equity securities: Farmer Mac class A stock			—		—		—		—		—		—
		$	64	$	11,866	$	83	$	3,237	$	147	$	15,103
Securities held-to-maturity
U.S. Government-agency MBS		$	151	$	3,312	$	—	$	—	$	151	$	3,312
Total		$	151	$	3,312	$	—	$	—	$	151	$	3,312

As of September 30, 2017 and December 31, 2016, there were 12 and 17 securities, respectively, in an unrealized loss position. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost (ii) the financial condition and near-term prospects of the issuer and (iii) the Company’s intent to sell an impaired security and if it is not more likely than not it will be required to sell the security before the recovery of its amortized basis.

The unrealized losses are primarily due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date, repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2017 and December 31, 2016, management believes the impairments detailed in the table above are temporary and no other-than-temporary impairment loss has been realized in the Company’s consolidated income statements.