Note

Investment Securities

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

September 30, 2018

and

December 31, 2017,

are as follows:

(Dollars In Thousands)	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	11,130	$	9	$	(339	)	$	10,800
Mortgage-backed securities and CMO’s		20,279		-		(954	)		19,325
Corporate securities		6,641		21		(74	)		6,588
Municipal securities		9,120		64		(193	)		8,991
	$	47,170	$	94	$	(1,560	)	$	45,704

(Dollars In Thousands)	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U. S. Government agency securities	$	13,475	$	61	$	(101	)	$	13,435
Mortgage-backed securities and CMO’s		24,344		12		(375	)		23,981
Corporate securities		6,991		118		(42	)		7,067
Municipal securities		10,713		213		(65	)		10,861
	$	55,523	$	404	$	(583	)	$	55,344

U. S. Government agency securities:

The unrealized losses on

thirty-two

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

September 30, 2018.

Mortgage-backed securities and CMO’s:

The unrealized losses on

thirty-seven

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

September 30, 2018.

Corporate securities:

The unrealized losses on

five

of the Company’s investments in corporate securities 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, the Company does

not

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

September 30, 2018.

Municipal securities:

The unrealized losses on

ten

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

September 30, 2018.

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

September 30, 2018

and

December 31, 2017.

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

	September 30, 2018
	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	$	3,717	$	(76	)	$	6,330	$	(263	)	$	10,047	$	(339	)
Mortgage-backed securities and CMO’s		4,567		(211	)		14,758		(743	)		19,325		(954	)
Corporate securities		1,661		(38	)		1,446		(36	)		3,107		(74	)
Municipal securities		1,781		(36	)		2,670		(157	)		4,451		(193	)
	$	11,726	$	(361	)	$	25,204	$	(1,199	)	$	36,930	$	(1,560	)

	December 31, 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	$	6,859	$	(44	)	$	2,995	$	(57	)	$	9,854	$	(101	)
Mortgage-backed securities and CMO’s		15,624		(192	)		7,386		(183	)		23,010		(375	)
Corporate securities		1,438		(42	)		-		-			1,438		(42	)
Municipal securities		453		(3	)		2,332		(62	)		2,785		(65	)
	$	24,374	$	(281	)	$	12,713	$	(302	)	$	37,087	$	(583	)

There are

debt securities with fair values totaling

$36.9

million considered temporarily impaired at

September 30, 2018.

As of

September 30, 2018,

the Company does

not

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

The Company realized gains of

$69

thousand and

thousand of losses on sales of securities in the

first

nine

months of

2018.

The Company realized gains of

$165

thousand and

$105

thousand of losses during the same period last year.

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

September 30, 2018,

by contractual maturity are as follows:

(Dollars In Thousands)	Amortized Cost		Fair Value
One year or less	$	250	$	248
Over one through five years		2,462		2,401
Over five through ten years		14,010		13,797
Greater than 10 years		30,448		29,258
	$	47,170	$	45,704