(4)	SECURITIES

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2013, the Company has 87 securities with unrealized losses. The carrying amount of securities and their estimated fair values at June 30, 2013, were as follows:


	June 30, 2013
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428


Unrestricted:
U.S. government and agency securities:
Agency debt securities	$	119,837		3,007		(1,427	)		121,417
Corporate bonds		2,000		—		(16	)		1,984
Taxable municipal bonds		19,395		339		(334	)		19,400
Tax free municipal bonds		65,395		2,550		(772	)		67,173
Trust preferred securities		2,000		—		(511	)		1,489
Mortgage-backed securities:
GNMA		20,167		768		(117	)		20,818
FNMA		77,307		927		(1,369	)		76,865
FHLMC		3,441		88		—			3,529
NON-AGENCY CMOs		13,931		—		(487	)		13,444
AGENCY CMOs		12,795		189		(167	)		12,817


	$	336,268		7,868		(5,200	)		338,936

The carrying amount of securities and their estimated fair values at December 31, 2012, was as follows:


	December 31, 2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428


Unrestricted:
U.S. government and agency securities:
Agency debt securities	$	147,659		5,202		(83	)		152,778
Taxable municipal bonds		12,535		1,209		(8	)		13,736
Tax free municipal bonds		68,331		5,756		(40	)		74,047
Trust preferred securities		2,000		—		(511	)		1,489
Mortgage-backed securities:
GNMA		19,172		1,244		(19	)		20,397
FNMA		64,805		2,558		(58	)		67,305
FHLMC		4,519		153		—			4,672
SLMA CMO		5,412		80		—			5,492
AGENCY CMOs		16,055		426		(52	)		16,429


	$	340,488		16,628		(771	)		356,345

The scheduled maturities of debt securities available for sale at June 30, 2013, were as follows:


			Estimated
	Amortized		Fair
	Cost		Value

Due within one year	$	951	$	925
Due in one to five years		14,375		14,586
Due in five to ten years		35,929		35,566
Due after ten years		51,913		52,526

		103,168		103,603
Amortizing agency bonds		105,459		107,860
Mortgage-backed securities		127,641		127,473

Total unrestricted securities available for sale	$	336,268	$	338,936

The scheduled maturities of debt securities available for sale at December 31, 2012, were as follows:


			Estimated
	Amortized		Fair
	Cost		Value

Due within one year	$	345	$	346
Due in one to five years		11,499		11,682
Due in five to ten years		30,007		32,316
Due in more than ten years		53,222		57,290

		95,073		101,634
Amortizing agency bonds		135,452		140,416
Mortgage-backed securities		109,963		114,295

Total unrestricted securities available for sale	$	340,488	$	356,345

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of June 30, 2013, are as follows:


	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in Thousands)
Available for sale
U.S. government and agency securities:
Agency debt securities	$	30,007		(1,427	)		—		—			30,007		(1,427	)
Corporate bonds		1,984		(16	)		—		—			1,984		(16	)
Taxable municipals		8,451		(334	)		—		—			8,451		(334	)
Tax free municipals		13,329		(772	)		—		—			13,329		(772	)
Trust preferred securities		—		—			1,489		(511	)		1,489		(511	)
Mortgage-backed securities:
GNMA		4,513		(93	)		1,005		(24	)		5,518		(117	)
FNMA		44,606		(1,369	)		—		—			44,606		(1,369	)
FHLMC		—		—			—		—			—		—
NON-AGENCY CMOs		5,304		(459	)		5,166		(28	)		10,470		(487	)
AGENCY CMOs		1,878		(167	)		—		—			1,878		(167	)

Total Available for Sale	$	110,072		(4,637	)		7,660		(563	)		117,732		(5,200	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2012, were as follows:


	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in Thousands)
Available for sale
U.S. government and agency securities:
Agency debt securities	$	12,317		(83	)		—		—			12,317		(83	)
Taxable municipal bonds		885		(8	)		—		—			885		(8	)
Tax free municipal bonds		5,315		(40	)		—		—			5,315		(40	)
Trust preferred securities		—		—			1,489		(511	)		1,489		(511	)
Mortgage-backed securities:
GNMA		—		—			1,415		(19	)		1,415		(19	)
FNMA		7,077		(58	)		—		—			7,077		(58	)
FHLMC		—		—			—		—			—		—
NON-AGENCY CMOs		—		—			—		—			—		—
AGENCY CMOs		3,691		(52	)		—		—			3,691		(52	)

Total Available for Sale	$	29,285		(241	)		2,904		(530	)		32,189		(771	)

At June 30, 2013, securities with a book value of approximately $151.6 million and a market value of approximately $152.0 million were pledged to various municipalities for deposits in excess of FDIC limits as required by law. The Federal Home Loan Bank of Cincinnati has issued letters of credit in the Bank’s name totaling $13.5 million secured by the Bank’s loan portfolio to secure additional municipal deposits.

At June 30, 2013, securities with a book and market value of $31.1 million were sold under agreements to repurchase from various customers. Furthermore, the Company has two wholesale repurchase agreements with third parties secured by investments with a combined book value of $16.9 million and a market value of $16.6 million. One repurchase agreement is in the amount of $6.0 million and has a maturity of September 18, 2016 and is currently callable on a quarterly basis and has a fixed rate of interest of 4.36%. The second repurchase agreement, in the amount of $10.0 million, has a maturity of September 5, 2014, is currently callable quarterly and has a fixed rate of interest of 4.28%.