Securities

6 Months Ended

Jun. 30, 2011

Securities

Securities

Note 6. Securities

Debt and equity securities have been classified in the consolidated balance sheets according to management's intent. The carrying amount of securities and their approximate fair values follow:

June 30, 2011 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Available for sale
Government sponsored enterprises	$	3,980	$	9	$	46	$	3,943
State and municipal securities		2,994		133		—		3,127
Mortgage-backed securities		38,146		592		114		38,624
Other securities		2,254		15		15		2,254
	$	47,374	$	749	$	175	$	47,948
Held to maturity
State and municipal securities	$	13,997	$	422	$	37	$	14,382
Mortgage-backed securities		25		1		—		26
	$	14,022	$	423	$	37	$	14,408
December 31, 2010 (In thousands)
Available for sale
Government sponsored enterprises	$	2,853	$	30	$	17	$	2,866
State and municipal securities		2,994		66		11		3,049
Mortgage-backed securities		32,483		454		104		32,833
Other securities		4,063		15		182		3,896
	$	42,393	$	565	$	314	$	42,644
Held to maturity
State and municipal securities	$	14,672	$	279	$	198	$	14,753
Mortgage-backed securities		26		1		—		27
	$	14,698	$	280	$	198	$	14,780

Restricted equity securities, carried at cost, consist of investments in stock of the Federal Home Loan Bank of Atlanta ("FHLB") and The Federal Reserve Bank of Richmond (Federal Reserve), which are upstream correspondents of the Bank. The FHLB requires financial institutions to make equity investments in the FHLB in order to borrow from it. The Bank is required to hold that stock so long as it borrows from the FHLB. The Federal Reserve requires banks to purchase stock as a condition of membership in the Federal Reserve system.

Investment securities with amortized cost of approximately $6.6 million and $7.1 million at June 30, 2011 and December 31, 2010, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

Gross realized gains and losses for the three-month period ended June 30, 2011 and 2010:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
(In thousands)
Realized gains, available for sale securities	$	43	$	93	$	43	$	94
Realized gains, held to maturity securities		—		—		—		4
	$	43	$	93	$	43	$	98

The scheduled maturities of debt securities available for sale and held to maturity at June 30, 2011 were as follows:

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
(In thousands)
Due in one year or less	$	—	$	—	$	1,012	$	1,021
Due after one year through five years		1,416		1,383		4,813		4,993
Due after five years through ten years		2,994		3,110		3,592		3,727
Due after ten years		42,964		43,455		4,605		4,667
	$	47,374	$	47,948	$	14,022	$	14,408

For mortgage-backed securities, the Company reports maturities based on anticipated lives. Actual results may differ due to interest rate fluctuations.

The following tables show the unrealized losses and related fair values in the Company's held to maturity and available for sale investment securities portfolios. This information is aggregated by investment category and by the length of time that individual securities have been in a continuous unrealized loss position at June 30, 2011 and December 31, 2010 respectively.

	Less Than 12 Months				12 Months or More				Total
June 30, 2011 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government sponsored enterprises	$	—	$	—	$	954	$	46	$	954	$	46
State and municipal securities		267		10		411		27		678		37
Mortgage- backed securities		10,393		77		1,843		37		12,236		114
Other Securities		1,000		15		—		—		1,000		15
Total temporarily impaired securities	$	11,660	$	102	$	3,208	$	110	$	14,868	$	212
	Less Than 12 Months				12 Months or More				Total
December 31, 2010 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government sponsored enterprises	$	982	$	17	$	—	$	—	$	982	$	17
State and municipal securities		5,559		158		387		51		5,946		209
Mortgage- backed securities		12,054		100		668		4		12,722		104
Other Securities		1,016		8		1,327		174		2,343		182
Total temporarily impaired securities	$	19,611	$	283	$	2,382	$	229	$	21,993	$	512

Management considers the nature of the investment, the underlying causes of the decline in market or fair value, the severity and duration of the decline and other evidence, on a security-by-security basis, in determining if the decline in fair value is other than temporary.

At June 30, 2011 the Company had 2 government-sponsored securities with an aggregate unrealized loss of approximately $46 thousand, 2 state and municipal securities with an aggregate unrealized loss of approximately $37 thousand, 30 mortgaged-backed securities with an aggregate unrealized loss of approximately $114 thousand and other securities with an aggregate unrealized loss of approximately $15 thousand. Management does not believe that gross unrealized losses, which totals 1.4% of the amortized costs of the related investment securities, represent an other-than-temporary impairment. The Company has both the ability and the intent to hold all of these securities for a period of time necessary to recover the amortized cost.

At December 31, 2010, the Company had one government-sponsored securities with an aggregate unrealized loss of approximately $17 thousand, 21 state and municipal securities with an aggregate unrealized loss of approximately $209 thousand, 24 mortgaged-backed securities with an aggregate unrealized loss of approximately $104 thousand and six other securities with an aggregate unrealized loss of approximately $182 thousand. Management does not believe that gross unrealized losses, which totals 2.3% of the amortized costs of the related investment securities, represent an other-than-temporary impairment.