Securities Available for Sale

6 Months Ended

Jun. 30, 2012

Securities Available for Sale [Abstract]

SECURITIES AVAILABLE FOR SALE

NOTE 5—SECURITIES AVAILABLE FOR SALE

The fair value of securities available for sale at June 30, 2012 and December 31, 2011 are as follows:

	June 30, 2012
	Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
U. S. government agencies	$	14,553	$	58	$	—
State and political subdivisions		11,494		687		—
Mortgage-backed securities – Government sponsored entities (GSE) residential		25,849		319		(6	)
Preferred stock		33		18		—
SBA guaranteed		246		1		(1	)
	$	52,175	$	1,083	$	(7	)

	December 31, 2011
	Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
U. S. government agencies	$	9,041	$	42	$	—
State and political subdivisions		12,926		482		(3	)
Mortgage-backed securities – GSE residential		21,665		477		(1	)
Preferred stock		25		10		—
SBA guaranteed		274		1		(1	)
	$	43,931	$	1,012	$	(5	)

Securities classified as U. S. government agencies include notes issued by government-sponsored enterprises such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Home Loan Bank. The SBA-guaranteed securities are pools of loans guaranteed by the Small Business Administration.

The following tables show 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 June 30, 2012 and December 31, 2011:

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Mortgage-backed securities – GSE residential	$	1,983	$	(6	)	$	69	$	—		$	2,052	$	(6	)
SBA guaranteed		—		—			99		(1	)		99		(1	)
Total temporarily impaired securities	$	1,983	$	(6	)	$	168	$	(1	)	$	2,151	$	(7	)

	December 31, 2011
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
State and political subdivisions	$	—	$	—		$	476	$	(3	)	$	476	$	(3	)
Mortgage-backed securities – GSE residential		109		(1	)		—		—			109		(1	)
Preferred stock		—		—			229		(1	)		229		(1	)
Total temporarily impaired securities	$	109	$	(1	)	$	705	$	(4	)	$	814	$	(5	)

Unrealized gains and losses within the investment portfolio are determined to be temporary. The Company has performed an evaluation of its investments for other than temporary impairment and there was no impairment identified during the six months ended June 30, 2012. The entire portfolio is classified as available for sale, however, management has no specific intent to sell any securities, and it is more likely than not that the Company will not have to sell any security before recovery of its amortized cost basis.

The fair values of securities available for sale at June 30, 2012, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately.

	Amortized Cost		Fair Value
Due in one year or less	$	62	$	63
Due after one year through five years		951		981
Due after five years through ten years		2,658		2,666
Due after ten years		21,632		22,337
Mortgage-backed securities		25,535		25,849
Preferred stock		15		33
SBA guaranteed		246		246
	$	51,099	$	52,175

Securities with a carrying value of approximately $31.0 million at June 30, 2012 were pledged to secure public deposits and Federal Home Loan Bank advances as well as for other purposes as required or permitted by law.

Sales activities for securities for the three and six months ended June 30, 2012 and 2011 is shown in the following table:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Sales proceeds	$	4,392	$	—	$	4,392	$	2,526
Gross gains on sales		141		—		141		104