NOTE 2 –SECURITIES

Amortized cost and fair value of investment securities, by category, at March 31, 2015 are summarized as follows:

2015	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	58,377	$	1,165	$	(4	)	$	59,538
U. S. sponsored agency CMO’s - residential		134,321		2,526		(499	)		136,348
Total mortgage-backed securities of government sponsored agencies		192,698		3,691		(503	)		195,886
U. S. government sponsored agency securities		18,494		106		-			18,600
Obligations of states and political subdivisions		10,374		277		-			10,651
Total available for sale	$	221,566	$	4,074	$	(503	)	$	225,137

Amortized cost and fair value of investment securities, by category, at December 31, 2014 are summarized as follows:

2014	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	52,006	$	774	$	-		$	52,780
U. S. sponsored agency CMO’s - residential		142,932		2,167		(911	)		144,188
Total mortgage-backed securities of government sponsored agencies		194,938		2,941		(911	)		196,968
U. S. government sponsored agency securities		22,553		30		(57	)		22,506
Obligations of states and political subdivisions		10,015		261		-			10,276
Total available for sale	$	227,486	$	3,232	$	(968	)	$	229,750

The amortized cost and fair value of securities at March 31, 2015 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Available for sale
Due in one year or less	$	3,795	$	3,822
Due after one year through five years		20,574		20,816
Due after five years through ten years		3,833		3,918
Due after ten years		666		695
Mortgage-backed securities of government sponsored agencies		192,698		195,886
Total available for sale	$	221,566	$	225,137

There were no sales of securities during the first three months of 2015 nor the first three months of 2014.

Securities with unrealized losses at March 31, 2015 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:

	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S government sponsored agency MBS – residential	$	1,805	$	(4	)	$	-	$	-		$	1,805	$	(4	)
U.S government sponsored agency CMO – residential		4,932		(27	)		21,092		(472	)		26,024		(499	)
Total temporarily impaired	$	6,737	$	(31	)	$	21,092	$	(472	)	$	27,829	$	(503	)

Securities with unrealized losses at December 31, 2014 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows:

	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S government sponsored agency securities	$	9,971	$	(57	)	$	-	$	-		$	9,971	$	(57	)
U.S government sponsored agency CMO’s – residential		5,194		(52	)		26,471		(859	)		31,665		(911	)
Total temporarily impaired	$	15,165	$	(109	)	$	26,471	$	(859	)	$	41,636	$	(968	)

The investment portfolio is predominately high credit quality interest-bearing bonds with defined maturity dates backed by the U.S. Government or Government sponsored entities. The unrealized losses at March 31, 2015 and December 31, 2014 are price changes resulting from changes in the interest rate environment and are considered to be temporary declines in the value of the securities. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery. Their fair value is expected to recover as the bonds approach their maturity date and/or market conditions improve.