(5) Securities

A summary of securities is as follows.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)

At September 30, 2013

Securities available for sale

State and municipal	$	2,516	$	2	$	(118	)	$	2,400

Residential mortgage-backed securities	16,915		94		(380		)	16,629

Total securities available for sale	$	19,431	$	96	$	(498	)	$	19,029

Securities held to maturity

Residential mortgage-backed securities	$	1,169	$	94	$	—		$	1,263

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)

At December 31, 2012

Securities available for sale

Residential mortgage-backed securities	$	7,900	$	284	$	—	$	8,184

Securities held to maturity

Residential mortgage-backed securities	$	1,594	$	137	$	—	$	1,731

All residential mortgage-backed securities have been issued by government-sponsored enterprises.

The amortized cost and estimated fair value of debt securities by contractual maturity at September 30, 2013 is as follows. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)

Over ten years	$	2,516	$	2,400	$	—	$	—

Residential mortgage-backed securities	16,915		16,629		1,169		1,263

	$	19,431	$	19,029	$	1,169	$	1,263

There were no sales of securities for the three and nine-months ended September 30, 2013 and 2012.

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous loss position, is as follows.

	Less Than Twelve Months				Greater Than Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In thousands)
At September 30, 2013:

Securities available for sale

State and municipal	$	118	$	1,832	$	—	$	—

Residential mortgage-backed securities	380		10,727		—		—

Total securities available for sale	$	498	$	12,559	$	—	$	—

Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”).

At September 30, 2013 twelve securities classified as available for sale had an unrealized loss with aggregate depreciation of 3.82% from the securities amortized cost basis. The unrealized losses on the Company’s investments in state and municipal bonds and residential mortgage backed securities were primarily caused by changes in interest rates and not by credit quality. Many of these investments are guaranteed by the U.S. Government or its agencies and as management has not decided to sell these securities, nor is it likely that the Company will be required to sell these securities, no declines are deemed to be other than temporary.

There were no securities with gross unrealized losses at December 31, 2012.