Securities

6 Months Ended

Jun. 30, 2011

Securities

Securities

NOTE 2 - SECURITIES

The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):

				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
		Cost		Gains		Losses		Market Value
June 30, 2011
Available-for-sale securities:
U.S. Treasury	$	-	$	-	$	-	$	-
U.S. government agency obligations		1,108		94		-		1,202
Mortgage-backed securities		3,259		144				3,403
Obligations of states and
political subdivisions		5,536		269		-		5,805
Total available-for-sale securities	$	9,903	$	507	$	-	$	10,410
Held-to-maturity securities:
Municipal securities	$	-	$	-	$	-	$	-
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
		Cost		Gains		Losses		Market Value
December 31, 2010
Available-for-sale securities:
U.S. Treasury	$	-	$	-	$	-	$	-
U.S. government agency obligations		1,619		63		-		1,682
Mortgage-backed securities		3,914		110		-		4,024
Obligations of states and
political subdivisions		5,543		217		-		5,760
Total available-for-sale securities	$	11,076	$	390	$	-	$	11,466
Held-to-maturity securities:
Municipal securities	$	10	$	-	$	-	$	10

Proceeds from sales of securities available for sale were $0 and $1.6 million for the six months ended June 30, 2011 and 2010, respectively. Gross gains of $0 and $37,000 were realized on these sales during 2011 and 2010, respectively.

The amortized cost and fair value of securities available for sale at June 30, 2011 by contractual maturity follow (dollars in thousands).

The actual maturity may differ from the contractual maturity because issuers may have a right to call or prepay obligations.

			June 30, 2011
	Held to Maturity Securities				Available for Sale Securities
	Amortized		Fair	Amortized			Fair
	Cost		Value		Cost		Value
			(Dollars in Thousands)
Due in one year or less	$	- $		- $	791	$	807
Due from one to five years		-		-	5,167		5,473
Due from five to ten years		-		-	686		727
Due after ten years		-		-	-		-
Total	$	- $		-	6,644		7,007
Mortgage-backed securities					3,259		3,403
Total available-for-sale securities				$	9,903	$	10,410

There were no securities with unrealized losses at June 30, 2011

Other-Than Temporary-Impairment

Our portfolio of available for sale securities is reviewed quarterly for other-than-temporary-impairment (OTTI) in value. In performing this review many factors are considered including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospect of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether management intends to sell the security, or it is more likely than not that management will be required to sell the security at a loss before anticipated recovery.

Management determined that there were no securities with OTTI at June 30, 2011.