NOTE

– SECURITIES

The following table summarizes the amortized cost and fair value of securities available for sale and securities held to maturity at

March

31,

2017

and

December

31,

2016

and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

Securities Available for Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2017
U.S. Government sponsored entity securities	$	10,622	$	----	$	(46	)	$	10,576
Agency mortgage-backed securities, residential		93,357		607		(1,368	)		92,596
Total securities	$	103,979	$	607	$	(1,414	)	$	103,172

December 31, 2016
U.S. Government sponsored entity securities	$	10,624	$	----	$	(80	)	$	10,544
Agency mortgage-backed securities, residential		87,367		495		(1,916	)		85,946
Total securities	$	97,991	$	495	$	(1,996	)	$	96,490

Securities Held to Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Estimated Fair Value
March 31, 2017
Obligations of states and political subdivisions	$	18,822	$	654	$	(105	)	$	19,371
Agency mortgage-backed securities, residential		5		----		----			5
Total securities	$	18,827	$	654	$	(105	)	$	19,376

December 31, 2016
Obligations of states and political subdivisions	$	18,661	$	654	$	(148	)	$	19,167
Agency mortgage-backed securities, residential		4		----		----			4
Total securities	$	18,665	$	654	$	(148	)	$	19,171

The amortized cost and estimated fair value of debt securities at

March

31,

2017,

by contractual maturity, are shown below. Actual maturities

may

differ from contractual maturities because certain issuers

may

have the right to call or prepay the debt obligations prior to their contractual maturities. Securities not due at a single maturity are shown separately.

	Available for Sale				Held to Maturity
Debt Securities:	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value

Due in one year or less	$	4,000	$	3,999	$	271	$	272
Due in over one to five years		6,621		6,576		6,850		7,109
Due in over five to ten years		----		----		8,442		8,815
Due after ten years		----		----		3,259		3,175
Agency mortgage-backed securities, residential		93,358		92,597		5		5
Total debt securities	$	103,979	$	103,172	$	18,827	$	19,376

The following table summarizes securities with unrealized losses at

March

31,

2017

and

December

31,

2016,

aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More				Total
March 31, 2017	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Securities Available for Sale
U.S. Government sponsored entity securities	$	10,576	$	(46	)	$	----	$	----	$	10,576	$	(46	)
Agency mortgage-backed securities, residential		66,917		(1,368	)		----		----		66,917		(1,368	)
Total available for sale	$	77,493	$	(1,414	)	$	----	$	----	$	77,493	$	(1,414	)

	Less Than 12 Months					12 Months or More				Total
	Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss
Securities Held to Maturity
Obligations of states and political subdivisions	$	1,878	$	(105	)	$	----	$	----	$	1,878	$	(105	)
Total held to maturity	$	1,878	$	(105	)	$	----	$	----	$	1,878	$	(105	)

	Less Than 12 Months					12 Months or More				Total
December 31, 2016	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Securities Available for Sale
U.S. Government sponsored entity securities	$	10,544	$	(80	)	$	----	$	----	$	10,544	$	(80	)
Agency mortgage-backed securities, residential		64,043		(1,916	)		----		----		64,043		(1,916	)
Total available for sale	$	74,587	$	(1,996	)	$	----	$	----	$	74,587	$	(1,996	)

	Less Than 12 Months					12 Months or More				Total
	Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss
Securities Held to Maturity
Obligations of states and political subdivisions	$	3,813	$	(148	)	$	----	$	----	$	3,813	$	(148	)
Total held to maturity	$	3,813	$	(148	)	$	----	$	----	$	3,813	$	(148	)

There were

sales of investment securities during the

three

months ended

March

31,

2017

and

2016.

Unrealized losses on the Company’s debt securities have not been recognized into income because the issuers’ securities are of high credit quality as of

March

31,

2017,

and management does not intend to sell, and it is likely that management will not be required to sell, the securities prior to their anticipated recovery. Management does not believe any individual unrealized loss at

March

31,

2017

and

December

31,

2016

represents an other-than-temporary impairment.