Note

Investment Securities

The amortized cost and fair value of available-for-sale securities as of

June 30, 2017

and

December 31, 2016,

are as follows:

(Dollars In Thousands)	June 30 , 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	11,140	$	136	$	(31	)	$	11,245
Mortgage-backed securities and CMO ’s		19,811		64		(131	)		19,744
Corporate securities		4,500		105		–			4,605
Municipal securities		12,832		324		(85	)		13,071
	$	48,283	$	629	$	(247	)	$	48,665

(Dollars In Thousands)	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	12,422	$	118	$	(96	)	$	12,444
Mortgage-backed securities and CMO ’s		19,979		54		(265	)		19,768
Corporate securities		5,000		66		-			5,066
Municipal securities		15,659		266		(228	)		15,697
	$	53,060	$	504	$	(589	)	$	52,975

U. S. Government agency securities:

The unrealized losses on

ten

of the Company’s investments in obligations of the U. S. government were caused by increases in market interest rates over the yields available at the time the securities were purchased. The contractual terms of those investments do

not

permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does

not

intend to sell the investments before recovery of their amortized cost basis which

may

be maturity, the Company does

not

consider those investments to be other-than-temporarily impaired at

June 30, 2017.

Mortgage-backed securities and CMO

’s:

The unrealized losses on

twenty-four

of the Company’s investments in government-sponsored entity mortgage-backed securities and collateralized mortgage obligations (“CMOs”) were caused by increases in market interest rates over the yields available at the time the securities were purchased. Because the decline in market value is attributable to changes in interest rates and

not

credit quality, and because the Company does

not

intend to sell the investments before recovery of their amortized cost basis, which

may

be maturity, the Company does

not

consider those investments to be other-than-temporarily impaired at

June 30, 2017.

Corporate securities

The unrealized loss on

one

of the Company’s investments in corporate securities was caused by increases in market interest rates over the yield at the time the security was purchased. Because the decline in market value is attributable to changes in interest rates and

not

credit quality, the Company does

not

consider this investment to be other-than-temporarily impaired at

June 30, 2017.

Municipal securities:

The unrealized losses on

eight

of the Company’s investments in municipal securities were caused by increases in market interest rates over the yields available at the time the securities were purchased. All municipal securities are investment grade. Because the decline in market value is attributable to changes in interest rates, credit spreads, and

not

credit quality, and because the Company does

not

intend to sell the investments before recovery of their amortized cost basis, which

may

be maturity, the Company does

not

consider those investments to be other-than-temporarily impaired at

June 30, 2017.

The following tables demonstrate the unrealized loss position of available-for-sale securities at

June 30, 2017

and

December 31, 2016.

This information summarizes the amount of time individual securities have been in a continuous, unrealized loss position.

	June 30 , 2017
	Less than 12 months					12 months or more					Total
(Dollars In Thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U. S. Government agency securities	$	1,466	$	(10	)	$	1,866	$	(21	)	$	3,332	$	(31	)
Mortgage-backed securities and CMO ’s		12,793		(112	)		1,504		(19	)		14,297		(131	)
Corporate securities		250		-			-		-			250		-
Municipal securities		2,756		(73	)		763		(12	)		3,519		(85	)
	$	17,265	$	(195	)	$	4,133	$	(52	)	$	21,398	$	(247	)

	December 31, 2016
	Less than 12 months					12 months or more					Total
(Dollars In Thousands)	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Government agency securities	$	3,492	$	(32	)	$	3,491	$	(64	)	$	6,983	$	(96	)
Mortgage-backed securities and CMO ’s		14,232		(235	)		1,474		(30	)		15,706		(265	)
Corporate securities		500		-			-		-			500		-
Municipal securities		6,967		(223	)		262		(5	)		7,229		(228	)
	$	25,191	$	(490	)	$	5,227	$	(99	)	$	30,418	$	(589	)

There are

forty-three

debt securities with fair values totaling

$21.4

million considered temporarily impaired at

June 30, 2017.

As of

June 30, 2017,

the Company does

not

consider any bond in an unrealized loss position to be other-than-temporarily impaired.

The Company realized gains of $

102

thousand and

$60

thousand of losses on sales of securities in the

first

six

months of

2017.

The Company realized gains of

$219

thousand and

thousand of losses during the same period last year.

The amortized cost and fair values of investment securities available for sale at

June 30, 2017,

by contractual maturity are as follows:

(Dollars In Thousands)	Amortized Cost		Fair Value
One year or less	$	246	$	247
Over one through five years		2,376		2,392
Over five through ten years		14,048		14,229
Greater than 10 years		31,613		31,797
	$	48,283	$	48,665