Note 3. 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 at December 31 follow:


2011 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
*Available for sale*
Government sponsored enterprises	$	1,933	$	21	$	2	$	1,952
State and municipal securities		5,226		267		—		5,493
Mortgage-backed securities		46,293		755		120		46,928
Other securities		2,957		18		243		2,732

	$	56,409	$	1,061	$	365	$	57,105

*Held to maturity*
State and municipal securities	$	12,925	$	712	$	—	$	13,637
Mortgage-backed securities		25		—		—		25

	$	12,950	$	712	$	—	$	13,662

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 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 $6.3 million and $7.1 million at December 31, 2011 and 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 years ended December 31 are as follows:


(In thousands)	2011			2010
Realized gains, available for sale securities	$	124		$	94
Realized losses, available for sale securities		(9	)		—
Realized gains, held to maturity securities		—			4

	$	115		$	98

The scheduled maturities of debt securities available for sale and held to maturity at December 31, 2011 were as follows:


(In thousands)	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	414	$	422	$	528	$	536
Due after one year through five years		1,780		1,706		4,614		4,773
Due after five years through ten years		2,983		3,194		3,207		3,431
Due after ten years		51,232		51,783		4,601		4,922

	$	56,409	$	57,105	$	12,950	$	13,662

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

The following table shows 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 December 31, 2011 and 2010.


	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2011 (In thousands)
Government sponsored enterprises	$	948	$	2	$	—	$	—	$	948	$	2
State and municipal securities		275		—		—		—		275		—
Mortgage- backed securities		9,936		47		4,652		73		14,588		120
Other Securities		866		151		908		92		1,774		243

Total temporarily impaired securities	$	12,025	$	200	$	5,560	$	165	$	17,585	$	365

December 31, 2010 (In thousands)
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 December 31, 2011, the Company had one government-sponsored security with an aggregate unrealized loss of approximately $2 thousand, one state and municipal securities with no aggregate unrealized loss, 27 mortgaged-backed securities with an aggregate unrealized loss of approximately $120 thousand and five other securities with an aggregate unrealized loss of approximated $243 thousand. Management does not believe that gross unrealized losses, which totals 2.1% 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.