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:


March 31, 2012 (In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

*Available for sale*
Government sponsored enterprises	$	3,943	$	1	$	40	$	3,904
State and municipal securities		4,959		326		4		5,281
Mortgage-backed securities		58,774		768		179		59,363
Other securities		2,958		16		93		2,881

	$	70,634	$	1,111	$	316	$	71,429


*Held to maturity*
State and municipal securities	$	12,805	$	680	$	4	$	13,481
Mortgage-backed securities		24		—		—		24

	$	12,829	$	680	$	4	$	13,505


December 31, 2011 (In thousands)

*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

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 $5.9 million and $6.3 million at March 31, 2012 and December 31, 2011, 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 March 31, 2012 and 2011:


	Three Months Ended March 31,
	2012		2011

(In thousands)
Realized gains, available for sale securities	$	16	$	—
Realized gains, held to maturity securities		—		—

	$	16	$	—

The scheduled maturities of debt securities available for sale and held to maturity at March 31, 2012 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	$	415	$	421	$	315	$	320
Due after one year through five years		1,749		1,732		5,076		5,255
Due after five years through ten years		2,715		2,951		2,468		2,634
Due after ten years		65,755		66,325		4,970		5,296

	$	70,634	$	71,429	$	12,829	$	13,505

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 March 31, 2012 and December 31, 2011 respectively.


	Less Than 12 Months				12 Months or More				Total
March 31, 2012 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Government sponsored enterprises	$	2,910	$	40	$	—	$	—	$	2,910	$	40
State and municipal securities		611		8		—		—		611		8
Mortgage-backed securities		20,836		124		4,146		55		24,982		179
Other Securities		963		54		963		39		1,926		93

Total temporarily impaired securities	$	25,320	$	226	$	5,109	$	94	$	30,429	$	320


	Less Than 12 Months				12 Months or More				Total
December 31, 2011 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

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

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 March 31, 2012, the Company had 3 government-sponsored securities with an aggregate unrealized loss of approximately $40 thousand, 2 state and municipal securities with an aggregate unrealized loss of approximately $8 thousand, 30 mortgaged-backed securities with an aggregate unrealized loss of approximately $179 thousand and 5 other securities with an aggregate unrealized loss of approximately $93 thousand. Management does not believe that gross unrealized losses, which totals 1.1% 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.

At December 31, 2011, the Company had one government-sponsored securities 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 approximately $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.