NOTE 2 –SECURITIES

Amortized cost and fair value of investment securities, by category, at September 30, 2019 are summarized as follows:

2019	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	243,344	$	3,455	$	(277	)	$	246,522
U. S. sponsored agency CMO’s - residential		66,774		1,104		(71	)		67,807
Total mortgage-backed securities of government sponsored agencies		310,118		4,559		(348	)		314,329
U. S. government sponsored agency securities		17,967		383		(12	)		18,338
Obligations of states and political subdivisions		12,112		472		-			12,584
Other securities		2,448		112		-			2,560
Total available for sale	$	342,645	$	5,526	$	(360	)	$	347,811

Amortized cost and fair value of investment securities, by category, at December 31, 2018 are summarized as follows:

2018	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Available for sale
Mortgage-backed securities
U. S. sponsored agency MBS - residential	$	259,575	$	513	$	(4,846	)	$	255,242
U. S. sponsored agency CMO’s - residential		69,231		94		(782	)		68,543
Total mortgage-backed securities of government sponsored agencies		328,806		607		(5,628	)		323,785
U. S. government sponsored agency securities		24,154		196		(180	)		24,170
Obligations of states and political subdivisions		14,194		176		(43	)		14,327
Other securities		3,453		6		(10	)		3,449
Total available for sale	$	370,607	$	985	$	(5,861	)	$	365,731

The amortized cost and fair value of securities at September 30, 2019 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	$	7,115	$	7,123
Due after one year through five years		17,036		17,449
Due after five years through ten years		3,967		4,156
Due after ten years		4,409		4,754
Mortgage-backed securities of government sponsored agencies		310,118		314,329
Total available for sale	$	342,645	$	347,811

Securities with unrealized losses at September 30, 2019 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	$	-	$	-		$	6,205	$	(12	)	$	6,205	$	(12	)
U.S government sponsored agency MBS – residential		31,976		(141	)		13,629		(136	)		45,605		(277	)
U.S government sponsored agency CMO – residential		-		-			9,826		(71	)		9,826		(71	)
Total temporarily impaired	$	31,976	$	(141	)	$	29,660	$	(219	)	$	61,636	$	(360	)

Securities with unrealized losses at December 31, 2018 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	$	999	$	-		$	11,057	$	(180	)	$	12,056	$	(180	)
U.S government sponsored agency MBS – residential		50,923		(243	)		158,791		(4,603	)		209,714		(4,846	)
U.S government sponsored agency CMO’s – residential		16,359		(41	)		26,386		(741	)		42,745		(782	)
Obligations of states and political subdivisions		679		(6	)		3,454		(37	)		4,133		(43	)
Other securities		1,712		(10	)		-		-			1,712		(10	)
Total temporarily impaired	$	70,672	$	(300	)	$	199,688	$	(5,561	)	$	270,360	$	(5,861	)

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 September 30, 2019 and December 31, 2018 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.