Note 4:

Securities

The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows:


Available-for-sale securities June 30, 2013 (unaudited)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

U.S. Government agencies	$	9,690,312	$	15,727	$	(43,701	)	$	9,662,338
State and municipal obligations		28,339,387		113,600		(1,086,313	)		27,366,674
Certificates of deposits		1,985,000		7,440		(3,039	)		1,989,401
Auction rate securities		1,080,000		—		(48,000	)		1,032,000

	$	41,094,699	$	136,767	$	(1,181,053	)	$	40,050,413


Available-for-sale securities December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

U.S. Government agencies	$	9,411,627	$	78,178	$	(25,990	)	$	9,463,815
State and municipal obligations		23,480,871		412,759		(44,102	)		23,849,528
Certificates of deposits		1,985,000		3,271		(1,094	)		1,987,177
Auction rate securities		1,400,000		—		—			1,400,000

	$	36,277,498	$	494,208	$	(71,186	)	$	36,700,520

Gross realized gains and gross realized losses on sales of securities were as follows:


	For the three months ended June 30,				For the six months ended June 30,
	2013		2012		2013			2012
Gross realized gains	$	267,773	$	493,955	$	272,295		$	504,644
Gross realized losses		—		—		(1,581	)		(1,828	)

Net realized gains (losses)	$	267,773	$	493,955	$	270,714		$	502,816

Average yields on securities were 2.27% and 2.83% for the three months ended June 30, 2013 and 2012, respectively; and 2.22% and 2.90% for the six months ended June 30, 2013 and 2012, respectively.

The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at June 30, 2013 are show below:


	Amortized Cost		Fair Value
Due one year or less	$	4,007,574	$	4,013,758
Due after one year through five years		18,430,486		18,415,158
Due after five years through ten years		13,291,387		12,629,823
Due after ten years		5,365,252		4,991,674

	$	41,094,699	$	40,050,413

Securities with a market value of $12.3 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of June 30, 2013. The market value of pledged securities at December 31, 2012 was $8.1 million.

Securities in an unrealized loss position at June 30, 2013 and December 31, 2012, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All securities are investment grade or better and all losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, we do expect to recover the entire amortized cost basis. Bonds with unrealized loss positions at June 30, 2013 included two certificates of deposit, 39 municipals and 12 federal agencies. Bonds with unrealized loss positions at December 31, 2012 included three certificates of deposit, 10 municipals and two federal agencies. The tables are shown below.


	Less than 12 months				12 months or more				Total
June 30, 2013 (unaudited)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	5,367,622	$	43,701	$	—	$	—	$	5,367,622	$	43,701
States and municipal obligations		13,379,481		1,077,115		1,026,974		9,198		14,406,455		1,086,313
Certificates of deposits		492,961		3,039		—		—		492,961		3,039
Auction rate securities		1,032,000		48,000		—		—		1,032,000		48,000

Total temporarily impaired securities	$	20,272,064	$	1,171,855	$	1,026,974	$	9,198	$	21,299,038	$	1,181,053


	Less than 12 months				12 months or more				Total
December 31, 2012	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	1,080,438	$	25,990	$	—	$	—	$	1,080,438	$	25,990
States and municipal obligations		2,863,106		37,731		1,037,825		6,371		3,900,931		44,102
Certificates of deposits		742,906		1,094		—		—		742,906		1,094
Auction rate securities		—		—		—		—		—		—

Total temporarily impaired securities	$	4,686,450	$	64,815	$	1,037,825	$	6,371	$	5,724,275	$	71,186

The following table summarized cumulative credit related other-than-temporary impairment losses recognized on one debt security held by the Company:


	For the three and six months ended June 30, 2013
Balance, beginning of the period	$	—
Impairment losses recognized during the period		120,000
Realized losses from sales		—

Balance, end of period	$	120,000

The Company holds $1.2 million face amount South Carolina Student Loan Corporation auction rate securities. During the second quarter of 2013, the South Carolina Student Loan Corporation made a tender and exchange offer with regards to these auction rate securities with the provision that 50% of the security holders were required for the tender offer to be consummated. The tender offer was not accepted by the required 50% of security holders. As a result of the tender and exchange offer, the Company determined that the value of the auction rate securities were other-than-temporarily-impaired. The market value of the securities was estimated based on Level 3 inputs (refer to Note 11). The Company recognized an other-than-temporary impairment charge of $120 thousand in income, plus a $48 thousand unrealized loss component with $31,680 in accumulated other comprehensive income related to this security in the second quarter of 2013.

The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.1 million at June 30, 2013 and $1.1 million at December 31, 2012. The investment in FHLB stock is a required investment related to the Company’s membership with FHLB. This investment is carried at cost since there is no ready market and historically redemption has been made at par. The Company does not consider this investment to be other-than-temporarily impaired at June 30, 2013 and no impairment has been recognized. FHLB stock is shown in the restricted securities line item on the consolidated balance sheets and is not a part of the available for sale securities portfolio.