NOTE 2 – SECURITIES

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

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

September 30, 2011

Securities available for sale

U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	502	$	21	$	–	$	523
U.S. agency issued residential mortgage-backed securities		19,033		1,227		–		20,260
U.S. agency issued residential collateralized mortgage obligations		38,698		913		–		39,611
Privately issued residential collateralized mortgage obligations		530		12		–		542
Other equity securities		51		–		–		51

Totals	$	58,814	$	2,173	$	–	$	60,987

Securities held to maturity

Obligations of states and political subdivisions	$	48,911	$	1,354	$	–	$	50,265
Nonrated trust preferred securities		1,482		40		267		1,255
Nonrated senior subordinated notes		403		6		–		409

Totals	$	50,796	$	1,400	$	267	$	51,929

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		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 $47,833 and $60,111 at September 30, 2011 and December 31, 2010, respectively, were pledged to secure public deposits, other borrowings, and for other purposes required by law.