Note 3 – Securities Available For Sale

At June 30, 2018 and December 31, 2017, respectively, the amortized cost and approximate fair values of securities available-for-sale were as follows:



			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In Thousands)
June 30, 2018
U.S. Government agency obligations	$	8,018	$	-	$	(36)	$	7,982
Municipal bonds		36,239		686		(1,006)		35,919
U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential		49,754		46		(1,665)		48,135
Total	$	94,011	$	732	$	(2,707)	$	92,036

December 31, 2017
U.S. Government agency obligations	$	10,039	$	-	$	(51)	$	9,988
Municipal bonds		37,701		1,089		(469)		38,321
U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential		42,532		80		(625)		41,987
Total	$	90,272	$	1,169	$	(1,145)	$	90,296

The amortized cost and fair value of securities as of June 30, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without any penalties.



		Amortized		Fair
		Cost		Value

	(In Thousands)
Due in one year or less	$	9,557	$	9,557
Due after one year through five years		5,464		5,567
Due after five years through ten years		8,577		8,267
Due after ten years		20,659		20,510
		44,257		43,901
U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential		49,754		48,135
	$	94,011	$	92,036

There were no sales of securities for the three and six months ended June 30, 2018 and 2017.

Securities with a carrying value of $85.5 million and $87.3 million at June 30, 2018 and December 31, 2017, respectively, were subject to agreements to repurchase, pledged to secure public deposits, or pledged for other purposes required or permitted by law.

The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2018 and December 31, 2017, respectively:



		Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
		(In Thousands)
June 30, 2018
U.S. Government agency obligations	$	1,999	$	(2)	$	5,983	$	(34)	$	7,982	$	(36)
Municipal bonds		6,460		(293)		5,912		(713)		12,372		(1,006)
U.S. Government Sponsored Enterprise
(GSE) - Mortgage -backed securities -
residential		37,023		(1,128)		10,534		(537)		47,557		(1,665)
Total Temporarily Impaired Securities	$	45,482	$	(1,423)	$	22,429	$	(1,284)	$	67,911	$	(2,707)
		.
December 31, 2017
U.S. Government agency obligations	$	7,003	$	(24)	$	2,985	$	(27)	$	9,988	$	(51)
Municipal bonds		2,415		(77)		6,235		(392)		8,650		(469)
U.S. Government Sponsored Enterprise
(GSE) - Mortgage -backed securities -
residential		25,295		(305)		11,502		(320)		36,797		(625)
Total Temporarily Impaired Securities	$	34,713	$	(406)	$	20,722	$	(739)	$	55,435	$	(1,145)

The Company had forty-nine (49) securities in an unrealized loss position at June 30, 2018. The unrealized losses are due only to market rate fluctuations. As of June 30, 2018, the Company either has the intent and ability to hold the securities until maturity or market price recovery, or believes that it is more likely than not that it will not be required to sell such securities. Management believes that the unrealized loss only represents temporary impairment of the securities.