NOTE 2 –SECURITIES

Amortized cost and fair value of investment securities, by category, at June 30, 2017 are summarized as follows:

2017	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	203,134	$	1,042	$	(652	)	$	203,524
U. S. sponsored agency CMO’s - residential		61,844		649		(375	)		62,118
Total mortgage-backed securities of government sponsored agencies		264,978		1,691		(1,027	)		265,642
U. S. government sponsored agency securities		21,374		9		(68	)		21,315
Obligations of states and political subdivisions		14,105		174		(12	)		14,267
Total available for sale	$	300,457	$	1,874	$	(1,107	)	$	301,224

Amortized cost and fair value of investment securities, by category, at December 31, 2016 are summarized as follows:

2016	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	177,105	$	245	$	(3,173	)	$	174,177
U. S. sponsored agency CMO’s - residential		73,163		761		(657	)		73,267
Total mortgage-backed securities of government sponsored agencies		250,268		1,006		(3,830	)		247,444
U. S. government sponsored agency securities		24,652		23		(174	)		24,501
Obligations of states and political subdivisions		16,645		111		(94	)		16,662
Total available for sale	$	291,565	$	1,140	$	(4,098	)	$	288,607

The amortized cost and fair value of securities at June 30, 2017 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	$	10,606	$	10,632
Due after one year through five years		18,929		18,929
Due after five years through ten years		5,386		5,463
Due after ten years		558		558
Mortgage-backed securities of government sponsored agencies		264,978		265,642
Total available for sale	$	300,457	$	301,224

Securities with unrealized losses at June 30, 2017 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	$	15,007	$	(68	)	$	-	$	-		$	15,007	$	(68	)
U.S government sponsored agency MBS – residential		75,722		(652	)		-		-			75,722		(652	)
U.S government sponsored agency CMO – residential		15,097		(183	)		7,860		(192	)		22,957		(375	)
Obligations of states and political subdivisions		2,028		(6	)		599		(6	)		2,627		(12	)
Total temporarily impaired	$	107,854	$	(909	)	$	8,459	$	(198	)	$	116,313	$	(1,107	)

Securities with unrealized losses at December 31, 2016 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	$	17,207	$	(174	)	$	-	$	-		$	17,207	$	(174	)
U.S government sponsored agency MBS – residential		157,022		(3,173	)		-		-			157,022		(3,173	)
U.S government sponsored agency CMO’s – residential		18,374		(373	)		8,750		(284	)		27,124		(657	)
Obligations of states and political subdivisions		7,961		(94	)		-		-			7,961		(94	)
Total temporarily impaired	$	200,564	$	(3,814	)	$	8,750	$	(284	)	$	209,314	$	(4,098	)

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 June 30, 2017 and December 31, 2016 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.