NOTE 4—SECURITIES

As of June 30, 2013 and 2012, the amortized cost and fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:


	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trust preferred securities	$	19,329,262	$	974,357	$	(89,420	)	$	20,214,199
Mortgage-backed GSE securities		29,119,910		88,615		(272,185	)		28,936,340

Total	$	48,449,172	$	1,062,972	$	(361,605	)	$	49,150,539


	June 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
FNMA structured notes	$	2,000,000	$	9,320	$	—		$	2,009,320
Trust preferred securities		20,964,197		344,230		(46,665	)		21,261,762
Mortgage-backed GSE securities		15,093,864		293,098		—			15,386,962

Total	$	38,058,061	$	646,648	$	(46,665	)	$	38,658,044

Management performs a quarterly evaluation of investment securities for other-than-temporary impairment. At June 30, 2013 and June 30, 2012, respectively, the gross unrealized losses were in a loss position for less than twelve months on all but the trust preferred securities. The unrealized losses in trust preferred securities relate primarily to the changes in market interest rates and spreads since the securities were purchased. Management does not believe that any of these losses at June 30, 2013 or June 30, 2012 represent an other-than-temporary impairment. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized within net income in the period the other-then-temporary impairment is identified.

The amortized cost and fair value of securities available for sale, by contractual maturity, are shown below:


	June 30, 2013
	Amortized Cost		Fair Value
One to five years	$	982,621	$	982,970
Five to ten years		5,018,184		5,002,480
Greater than 10 years		13,328,457		14,228,749
Mortgage-backed GSE securities		29,119,910		28,936,340

Total	$	48,449,172	$	49,150,539

These mortgage-backed securities are backed by residential mortgage loans and do not mature on a single maturity date. Securities pledged as collateral for contingent funding at the Federal Home Loan Bank of Cincinnati were approximately $10.8 million.

Gross unrealized losses on mortgage backed securities at June 30, 2013 were at a loss position for less than 12 months. There were no gross unrealized losses on mortgage-backed securities at June 30, 2012. All of the Company’s holdings of mortgage-backed securities at year end 2013 and 2012 were issued by U.S. government sponsored enterprises. Unrealized gains and losses on mortgage-backed securities have not been recognized into income, because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to be other than temporarily impaired at June 30, 2013 and 2012.

In June of 2011, the Company sold a mortgaged-backed security with an amortized cost of $29,871,145. The Company realized a gross gain of $1,232,112.

There were no sales of securities in 2013 and 2012.