Securities

12 Months Ended

Dec. 31, 2013

Trading Securities [Abstract]

Securities

Note 3: Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Approximate
	Cost		Gains		Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2013:
U.S. government agencies	$	21,000	$	––	$	(849)	$	20,151
State and political subdivisions		6,196		191		––		6,387
Equity securities		4		22		––		26
	$	27,200	$	213	$	(849)	$	26,564
Available-for-sale Securities:
December 31, 2012:
U.S. government agencies	$	23,980	$	93	$	(3)	$	24,070
State and political subdivisions		10,345		414		––		10,759
Equity securities		4		20		––		24
	$	34,329	$	527	$	(3)	$	34,853

			Gross		Gross
	Amortized		Unrealized		Unrealized		Approximate
	Cost		Gains		Losses		Fair Value
	(In thousands)
Held-to-maturity Securities:
December 31, 2013:
State and political subdivisions	$	955	$	15	$	––	$	970
December 31, 2012:
State and political subdivisions	$	2,768	$	72	$	––	$	2,840

The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at December 31, 2013, by contractual maturity, are shown below. 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. Maturities for mortgage-backed securities are presented in the table below based on their projected maturities.

	Available-for-sale				Held-to-maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Within one year	$	––	$	––	$	386	$	399
One to five years		6,402		6,418		569		571
Five to ten years		14,794		14,520		––		––
After ten years		6,000		5,600		––		––
		27,196		26,538		955		970
Equity securities		4		26		––		––
Totals	$	27,200	$	26,564	$	955	$	970

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $19.6 million and $25.5 million at December 31, 2013 and 2012, respectively.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2013 and 2012, was $20.2 million and $3.0 million, which represented approximately 73.2% and 8.0%, respectively, of the Company’s available-for-sale and held-to-maturity investment portfolio.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary.

The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2013 and 2012:

	December 31, 2013
	Less than 12 Months				12 Months or More				Total
Description of	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Securities	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
US Government agencies	$	20,151	$	(849)	$	––	$	––	$	20,151	$	(849)
Total temporarily impaired securities	$	20,151	$	(849)	$	––	$	––	$	20,151	$	(849)

U. S. Government Agencies

The unrealized losses on the Company’s investments in direct obligations of U. S. government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2013.

	December 31, 2012
	Less than 12 Months				12 Months or More				Total
Description of	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Securities	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
US Government agencies	$	2,997	$	(3)	$	––	$	––	$	2,997	$	(3)
Total temporarily impaired securities	$	2,997	$	(3)	$	––	$	––	$	2,997	$	(3)

The contractual terms of those investments in an unrealized loss position do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2013.