2. Investment Securities

3 Months Ended

Mar. 31, 2014

Investment Securities

2. Investment Securities

Note 2. Investment Securities

Investment securities available for sale are carried in the consolidated balance sheets at their approximate market value, amortized cost and unrealized gains and losses at March 31, 2014 and December 31, 2013 are reflected in the table below.  The amortized costs of investment securities held to maturity are carried in the consolidated balance sheets and their approximate market values at March 31, 2014 and December 31, 2013 are as follows:

	2014				2013
			Market				Market
	Cost		Value		Cost		Value
Securities held to maturity
U. S. Treasury and agency obligations	$	106	$	106	$	106	$	106
Total	$	106	$	106	$	106	$	106

	March 31, 2014
			Unrealized				Market
	Cost		Gains		Losses		Value
Securities available for sale
Government sponsored enterprises	$	10,080	$	19	$	24	$	10,075
Mortgage-backed securities		1,161		5		-		1,166
Total	$	11,241	$	24	$	24	$	11,241

	December 31, 2013
			Unrealized				Market
	Cost		Gains		Losses		Value
Securities available for sale
Government sponsored enterprises	$	29,076	$	11	$	22	$	29,065
Mortgage-backed securities		1,209		-		8		1,201
Total	$	30,285	$	11	$	30	$	30,266

The amortized cost and fair value of securities at March 31, 2014, by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Held to Maturity				Securities Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	106	$	106	$	2,002	$	1,999
Due after one year through five years		-		-		8,078		8,076
Due after five years		-		-		1,161		1,166
Total	$	106	$	106	$	11,241	$	11,241

There were no gains and losses on sales of securities in the first quarter of 2014 or 2013.  There were also no securities with an Other than temporary impairment.

The fair value and gross unrealized losses for securities, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at March 31, 2014 and December 31, 2013 were as follows (dollars in thousands):

	Less than 12 Months					More than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2014
Government sponsored Enterprises	$	5,985	$	(24	)	$	-	$	-	$	5,985	$	(24	)
Total	$	5,985	$	(24	)	$	-	$	-	$	5,985	$	(24	)
December 31, 2013
Government sponsored Enterprises	$	4,984	$	(22	)	$	-	$	-	$	4,984	$	(22	)
Mortgage backed obligations		1,191		(8	)		-		-		1,191		(8	)
Total	$	6,175	$	(30	)	$	-	$	-	$	6,175	$	(30	)

Other investments, which consist of stock of correspondent banks and investments in low income housing projects, decreased since December 31, 2013.  This decrease is due to FHLB stock repurchases during the first quarter which were partially offset with an increase in the Federal Reserve Bank Stock holding requirement.