Securities (Notes)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

SECURITIES

he fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income is as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2013
Certificates of deposit	$	15,639	$	—	$	—		$	15,639
Municipal securities	350		12		—			362
Equity mutual fund	500		7		—			507
Mortgage-backed securities - residential	29,954		1,439		(127		)	31,266
Collateralized mortgage obligations - residential	5,175		33		(7		)	5,201
SBA-guaranteed loan participation certificates	39		—		—			39
	$	51,657	$	1,491	$	(134	)	$	53,014
December 31, 2012
Certificates of deposit	$	33,456	$	—	$	—		$	33,456
Municipal securities	350		19		—			369
Equity mutual fund	500		28		—			528
Mortgage-backed securities - residential	32,572		1,661		—			34,233
Collateralized mortgage obligations - residential	9,111		95		(2		)	9,204
SBA-guaranteed loan participation certificates	42		—		—			42
	$	76,031	$	1,803	$	(2	)	$	77,832

Mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at June 30, 2013 and December 31, 2012.

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2013
	Amortized Cost		Fair Value
Due in one year or less	$	15,809	$	15,811
Due after one year through five years	180		190
	15,989		16,001
Equity mutual fund	500		507
Mortgage-backed securities - residential	29,954		31,266
Collateralized mortgage obligations - residential	5,175		5,201
SBA-guaranteed loan participation certificates	39		39
	$	51,657	$	53,014

Securities with unrealized losses not recognized in income are as follows:

	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
June 30, 2013
Mortgage-backed securities - residential	$	2,488	$	(127	)	$	—	$	—		$	2,488	$	(127	)
Collateralized mortgage obligations - residential	—		—			364		(7		)	364		(7		)
	$	2,488	$	(127	)	$	364	$	(7	)	$	2,852	$	(134	)
December 31, 2012
Collateralized mortgage obligations - residential	$	—	$	—		$	1,956	$	(2	)	$	1,956	$	(2	)

The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary.

Certain residential mortgage-backed securities and a collateralized mortgage obligation that the Company holds in its investment portfolio remained in an unrealized loss position at June 30, 2013, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs.

There were no sales of securities during the six months ended June 30, 2013 or 2012.