Securities

9 Months Ended

Sep. 30, 2011

NOTE 2 - SECURITIES

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

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value

September 30, 2011
Available-for-sale securities:
Collateralized Mortgage obligations	$ 4,832	$ 14	$ -	$ 4,846
U.S. government agency obligations	-	-	-	-
Mortgage-backed securities	1,014	67		1,081
Obligations of states and
political subdivisions	478	7	-	485
Total available-for-sale securities	$ 6,324	$ 88	$ -	$ 6,412
Held-to-maturity securities:
Municipal securities	$ -	$ -	$ -	$ -

	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value

December 31, 2010
Available-for-sale securities:
Collateralized Mortgage obligations	$ -	$ -	$ -	$ -
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 $8.6 and $4.8 million for the nine months ended September 30, 2011 and 2010, respectively. Gross gains of $469,000 and $76,000 were realized on these sales during 2011 and 2010, respectively.

The amortized cost and fair value of securities available for sale at September 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.

	September 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	$ -	$ -	$ 400	$ 401
Due from one to five years	-	-	78	84
Due from five to ten years	-	-	-	-
Due after ten years	-	-	-	-
Total	$ -	$ -	478	485
Mortgage-backed securities			1,014	1,081
CMO securities			4,832	4,846
Total available-for-sale securities			$ 6,324	$ 6,412

	December 31, 2010
	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	$ 10	$ 10	$ 900	$ 910
Due from one to five years	-	-	4,974	5,183
Due from five to ten years		-	1,288	1,349
Due after ten years	-	-	-	-
Total	$ 10	$ 10	7,162	7,442
Mortgage-backed securities			3,914	4,024
CMO securities			-	-
Total available-for-sale securities			$ 11,076	$ 11,466

There were no securities with unrealized losses at September 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 September 30, 2011.