NOTE 2 – SECURITIES

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

June 30, 2011

Securities available for sale

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	502	$	26	$	–	$	528
U.S. agency issued residential mortgage-backed securities		16,925		1,150		–		18,075
U.S. agency issued residential collateralized mortgage obligations		41,146		1,021		–		42,167
Privately issued residential collateralized mortgage obligations		624		14		–		638
Other equity securities		51		–		–		51

Totals	$	59,248	$	2,211	$	–	$	61,459

Securities held to maturity

Obligations of states and political subdivisions	$	49,530	$	346	$	168	$	49,708
Nonrated trust preferred securities		1,478		22		260		1,240
Nonrated senior subordinated notes		403		–		3		400

Totals	$	51,411	$	368	$	431	$	51,348

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

December 31, 2010

Securities available for sale

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,003	$	38	$	–	$	1,041
U.S. agency issued residential mortgage-backed securities		16,580		1,110		–		17,690
U.S. agency issued residential collateralized mortgage obligations		34,934		652		75		35,511
Privately issued residential collateralized mortgage obligations		964		18		2		980
Other equity securities		51		–		–		51

Totals	$	53,532	$	1,818	$	77	$	55,273

Securities held to maturity

Obligations of states and political subdivisions	$	51,234	$	7	$	1,435	$	49,806
Nonrated trust preferred securities		1,468		25		37		1,456
Nonrated senior subordinated notes		404		–		4		400

Totals	$	53,106	$	32	$	1,476	$	51,662

Securities with a fair value of $49,451 and $60,111 at June 30, 2011 and December 31, 2010, respectively, were pledged to secure public deposits, other borrowings, and for other purposes required by law.