NOTE 3 – SECURITIES AVAILABLE-FOR-SALE

The amortized costs and fair values of securities available-for-sale were as follows:


	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions	$	11,482	$	17	$	(298	)	$	11,201
Government-sponsored mortgage-backed securities		53,543		3		(2,410	)		51,136
Corporate collateralized mortgage obligations		437		2		—			439
Asset-backed securities		3,844		9		—			3,853
Corporate bonds		—		—		—			—
Certificates of deposit		249		—		(3	)		246

Total	$	69,555	$	31	$	(2,711	)	$	66,875


	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions	$	20,545	$	243	$	(158	)	$	20,630
Government-sponsored mortgage-backed securities		61,218		41		(1,235	)		60,024
Corporate collateralized mortgage obligations		696		6		—			702
Asset-backed securities		4,835		9		(12	)		4,832
Corporate bonds		1,246		5		—			1,251
Certificates of deposit		1,495		21		—			1,516

Total	$	90,035	$	325	$	(1,405	)	$	88,955

The amortized costs and fair values of securities available-for-sale, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, expected maturities will differ from contractual maturities for mortgage-backed securities, as the expected repayment terms may be less than the underlying mortgage pool contractual maturities. Therefore, these securities are not included in the maturity categories in the maturity summary below.


	September 30, 2018
	Amortized Cost		Fair Value
	(in thousands)
Debt and other securities:
Due within one year	$	1,927	$	1,925
Due within one year through five years		6,319		6,150
Due within five years through ten years		3,485		3,372
Due after ten years		—		—
Mortgage-related securities		53,980		51,575
Asset-backed securities		3,844		3,853

Total	$	69,555	$	66,875

Gross unrealized losses on securities available-for-sale and the fair values of the related securities, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position were as follows:


	September 30, 2018
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Obligations of states and political subdivisions	$	2,112	$	(16	)	$	6,289	$	(282	)	$	8,401	$	(298	)
Government-sponsored mortgage-backed securities		11,801		(358	)		39,145		(2,052	)		50,946		(2,410	)
Corporate collateralized mortgage obligations		160		—			1		—			161		—
Asset-backed securities		833		—			—		—			833		—
Certificates of deposit		246		(3	)		—		—			246		(3	)

Total	$	15,152	$	(377	)	$	45,435	$	(2,334	)	$	60,587	$	(2,711	)


	December 31, 2017
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Obligations of states and political subdivisions	$	1,435	$	(18	)	$	5,866	$	(140	)	$	7,301	$	(158	)
Government-sponsored mortgage-backed securities		18,507		(131	)		36,176		(1,104	)		54,683		(1,235	)
Corporate collateralized mortgage obligations		8		—			—		—			8		—
Asset-backed securities		—		—			936		(12	)		936		(12	)
Certificates of deposit		249		—			—		—			249		—

Total	$	20,199	$	(149	)	$	42,978	$	(1,256	)	$	63,177	$	(1,405	)

At September 30, 2018 and December 31, 2017, respectively, the Bank had 56 and 48 debt securities with unrealized losses representing aggregate depreciation of approximately 4% and 2% from their respective amortized cost bases. These unrealized losses relate principally to changes in interest rates and were not caused by changes in the financial condition of the issuers, the quality of any underlying assets or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other-than-temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer and the quality of any underlying assets or credit enhancements. As management has the intent and ability to hold these debt securities to projected recovery, none of these declines are deemed to be other-than-temporary.

The following table provides a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for the periods presented:


	Three Months ended September 30,				Nine Months ended September 30,
	2018		2017		2018			2017
	(in thousands)
Proceeds from sales of securities available-for-sale	$	—	$	—	$	14,392		$	—
Gross realized gains		—		—		137			—
Gross realized losses		—		—		(70	)		—