Investments Securities

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note 2: Investments Securities

The amortized cost and estimated fair values of investments available for sale are as follows:

	September 30, - Unaudited								December 31,
(in thousands)	2012								2011
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated		Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
U.S. Federal agencies	$	35,536	$	10	$	2	$	35,544	$	12,774	$	1	$	2	$	12,773
Mortgage-backed		380		28		-		408		568		35		-		603
	$	35,916	$	38	$	2	$	35,952	$	13,342	$	36	$	2	$	13,376

There have not been any individual securities with an unrealized loss position for a period greater than one year as of either September 30, 2012 or December 31, 2011. Gross unrealized losses and fair value by investment category and length of time the individual securities have been in a continuous unrealized loss position at September 30, 2012 and December 31, 2011 are presented below:

September 30, 2012 -Unaudited
(in thousands)	Less than 12 months				12 months or more				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Federal
agencies	$	12,999	$	2	$	-	$	-	$	12,999	$	2
Mortgage-backed		-		-		-		-		-		-
	$	12,999	$	2	$	-	$	-	$	12,999	$	2

December 31, 2011
(in thousands)	Less than 12 months				12 months or more				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Federal agencies	$	9,722	$	2	$	-	$	-	$	9,722	$	2
Mortgage-backed		-		-		-		-		-		-
	$	9,722	$	2	$	-	$	-	$	9,722	$	2

The unrealized losses that existed were a result of market changes in interest rates since the original purchase. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) structure of the security.

An impairment loss is recognized in earnings if any of the following are true: (1) the Company intends to sell the debt security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In situations where the Company intends to sell or when it is more likely than not that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders’ equity as a component of other comprehensive income, net of deferred tax.

The amortized cost and estimated fair values of investments available for sale by contractual maturity are shown below:

	September 30, - Unaudited				December 31,
(in thousands)	2012				2011
	Amortized		Estimated Fair		Amortized		Estimated Fair
	Cost		Value		Cost		Value
Amounts maturing:
One year or less	$	30,566	$	30,567	$	6,000	$	6,000
After one through five years		5,144		5,163		7,021		7,036
After five through ten years		109		117		168		177
After ten years		97		105		153		163
	$	35,916	$	35,952	$	13,342	$	13,376

There were no sales of investment securities during the nine months ended September 30, 2012 or in 2011. At September 30, 2012 and December 31, 2011, $16.2 million and $5.8 million fair value of securities was pledged as collateral for repurchase agreements, respectively. The outstanding balance of no single issuer, except for U. S. Government and U. S. Government agency securities, exceeded ten percent of shareholders’ equity at either period.