NOTE 3 INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities available for sale at the dates indicated are presented in the following table.

	June 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollar amounts in thousands)	Cost		Gains		Losses		Value
U.S. Government Agency securities	$	2,000	$	0	$	(37)	$	1,963
State and political subdivisions		7,851		335		(1)		8,185
Mortgage-backed securities		2,678		188		0		2,866
Total securities available for sale	$	12,529	$	523	$	(38)	$	13,014

	December 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollar amounts in thousands)	Cost		Gains		Losses		Value
U.S. Government Agency securities	$	2,000	$	0	$	(60)	$	1,940
State and political subdivisions		8,424		395		0		8,819
Mortgage-backed securities		2,994		188		0		3,182
Total securities available for sale	$	13,418	$	583	$	(60)	$	13,941

The estimated fair values of investment securities at June 30, 2014, by contractual maturity are shown below. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due less than one year	$	1,127	$	1,149
Due after one year through five years		5,978		6,152
Due after five years through ten years		2,704		2,805
Due after ten years		42		42
Mortgage-backed securities		2,678		2,866
Total securities available for sale	$	12,529	$	13,014

At June 30, 2014 and December 31, 2013, securities with a carrying value of $12,439,000 and $10,371,000, respectively, were pledged to secure public deposits and other deposits and liabilities as required or permitted by law.

Gross unrealized losses on securities and the estimated fair value of the related securities aggregated by security category and length of time the individual securities have been in continuous loss positions at June 30, 2014 and December 31, 2013.

(Dollar amounts in thousands)	Less Than Twelve Months				More Than Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
June 30, 2014	Losses		Value		Losses		Value
U.S. Government Agency securities	$	0	$	0	$	(37)	$	1,963
State and political subdivisions		(1)		202		0		0
Mortgage-backed securities		0		0		0		0
Total available for sale	$	(1)	$	202	$	(37)	$	1,963

(Dollar amounts in thousands)	Less Than Twelve Months				More Than Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
December 31, 2013	Losses		Value		Losses		Value
U.S. Government Agency securities	$	(60)	$	1,940	$	0	$	0
State and political subdivisions		0		0		0		0
Mortgage-backed securities		0		0		0		0
Total available for sale	$	(60)	$	1,940	$	0	$	0

At June 30, 2014 the Corporation held one security with an estimated fair value of $1,963,000 and an unrealized loss of $37,000 in a continuous unrealized loss position for more than twelve months and one security with an estimated fair value of $202,000 with an unrealized loss of $1,000 in a continuous unrealized loss position for less than twelve months. At December 31, 2013, there were no securities in a continuous loss position for more than twelve months and one security with an estimated fair value of $1,940,000 and an unrealized loss of $60,000 in a continuous unrealized loss position for less than twelve months.

The unrealized losses that exist are primarily due to the changes in market interest rates subsequent to purchase. The Corporation does not consider these investments to be other than temporarily impaired at June 30, 2014 and December 31, 2013 since the decline in market value is primarily attributable to changes in interest rates and not credit quality. In addition, the Corporation does not intend to sell and does not believe that it is more likely than not that the Corporation will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, management does not believe that the investment securities in an unrealized loss position as of June 30, 2014, represent an other-than-temporary impairment.