Note 4:

Securities

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


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available-for-sale securities
June 30, 2014
U.S. Government agencies	$	10,057	$	11	$	(61	)	$	10,007
State and municipal obligations		25,143		171		(489	)		24,825
Certificates of deposits		1,984		10		—			1,994

	$	37,184	$	192	$	(550	)	$	36,826


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available-for-sale securities
December 31, 2013
U.S. Government agencies	$	9,383	$	11	$	(86	)	$	9,308
State and municipal obligations		27,690		109		(1,242	)		26,557
Certificates of deposits		1,736		9		—			1,745
Auction rate security		912		—		—			912

	$	39,721	$	129	$	(1,328	)	$	38,522

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


	For the three months ended June 30,					For the six months ended June 30,
(Dollars in thousands)	2014			2013		2014			2013

Gross realized gains	$	5		$	268	$	5		$	272
Gross realized losses		(21	)		—		(22	)		(1	)

Net realized gains (losses)	$	(16	)	$	268	$	(17	)	$	271


Aggregate proceeds	$	2,039		$	7,165	$	3,331		$	8,260

Average yields on securities were 2.36% and 2.27% for the three months ended June 30, 2014 and 2013, respectively, and 2.37% and 2.22% for the six months ended June 30, 2014 and 2013, respectively.

Securities with a market value of $13.3 million and $12.9 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of June 30, 2014 and December 31, 2013, respectively.

Securities in an unrealized loss position at June 30, 2014 and December 31, 2013, 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 agency securities, states and municipal securities and certificates of deposit are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, all amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at June 30, 2014 included 15 federal agencies and 41 municipals. Bonds with unrealized loss positions at December 31, 2013 included 50 municipals and 15 federal agencies. The tables are shown below.


	Less than 12 months				12 months or more				Total
(Dollars in thousands) June 30, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	1,903	$	8	$	4,235	$	53	$	6,138	$	61
States and municipal obligations		1,592		15		11,112		474		12,704		489

Total temporarily impaired securities	$	3,495	$	23	$	15,347	$	527	$	18,842	$	550


	Less than 12 months				12 months or more				Total
December 31, 2013	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	4,808	$	66	$	1,462	$	20	$	6,270	$	86
States and municipal obligations		14,255		1,120		2,306		122		16,561		1,242

Total temporarily impaired securities	$	19,063	$	1,186	$	3,768	$	142	$	22,831	$	1,328

The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1,421,400 and $1,079,800 at June 30, 2014 and December 31, 2013, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $382 thousand at June 30, 2014 and $382 thousand at December 31, 2013. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter, all transactions pursuant to repurchases of such stock must occur at par. Accordingly, these securities are carried at cost, and are periodically evaluated for impairment. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks, and the length of time a decline has persisted; commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank; and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of this stock.