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## Note 3. Investment Securities (Continued): 

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concems warrant such evaluation. 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 ofthe issuer, and (3) the intent and ability ofthe Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. 

At December 31, 2012, the Company had securities which have depreciated .7% in value from the amortized cost. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal govemment or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews ofthe issuer’s financial condition. As management has the ability and intent to hold debt securities until maturity, or for the foreseeable fiiture if classified as available-for-sale, no declines are deemed to be other-than-temporary. 

## Note 4. Loans Receivable and Related Allowance for Loan Losses 

The following table summarizes the primary segments ofthe loan portfolio as of December 31, 2012 and 2011 (in thousands): 

<img src='content_image/143139.jpg'>

Uneamed income on loans at December 31, 2012 is the result of deferred loan fees of $487,046 and deferred loan costs of $170,227. 

