The following tables show the Bank’ s securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2013 and 2012 ( in thousands):  The 2013 unrealized losses relate principally to changes in interest rates and prepayment assumptions subsequent to the acquisition of specific securities. In management’ s opinion, credit risk for these securities is minimal. As management has the intent and ability to hold debt securities until recovery and does not believe it will have to sell the securities prior to recovery,  no declines are deemed to be other -  than - temporary. At December 31,  2013, the Bank had two securities in an unrealized loss position for 12 months or more and thirty -two securities in an unrealized loss position less than 12 months, none of which exceeded $^{10. 63% }$of the security’ s carrying amount.  The Bank’ s loan portfolio is segmented to an appropriate level of disaggregation to allow management to monitor the performance of the borrowers and measure credit risk. Segments are based on the underlying collateral types. For purposes of ASU 2010 -20, " Disclosures About the Credit Quality of Financing Receivables and the Allowance for Loan Losses ",  the Bank does not differentiate between segments and classes.  Loans secured by real estate may be made for commercial or consumer purposes.  Commercial loans may be secured or unsecured. Collateral often includes accounts receivable,  inventory and equipment.  Repayment is dependent on the successful operation of the borrower’ s business and is often susceptible to higher risk during an economic downturn.  Commercial loans generally have greater credit risk compared to residential real estate and consumer loans,  as they typically involve larger loan balances concentrated with single borrowers or groups of related borrowers.  19 The loans receivable portfolio is segmented into the following:  3. Loans Receivable Less than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized December 31, 2013 Fair Value Losses Fair Value Losses Fair Value Losses U. S. agency securities $ - $ - $ - $ - $ - $ -  State and municipal securities 5, 464 ( 258)  218 ( 15)  5, 682 ( 273)  Mortgage- backed securities 10, 670 ( 313)  839 ( 7)  11, 509 ( 320)  Collateralized mortgage obligations 1, 278 ( 20) - -  1, 278 ( 20)  17, 412 $ ( 591) $  1, 057 $ ( 22) $  18, 469 $ ( 613)  Less than 12 Months 12 Months or Longer Total Unrealized Unrealized Unrealized December 31, 2012 Fair Value Losses Fair Value Losses Fair Value Losses U. S. agency securities $ - $ - $ $ $ - $ -  State and municipal securities 1, 280 ( 19)  1, 280 ( 19)  Mortgage- backed securities 2, 895 ( 28)  2, 895 ( 28)  Collateralized mortgage obligations 253 ( 1)  253 ( 1)  4,428 $ ( 48) $ $ $  4,428 $ ( 48) 