NOTE 6 – IMPAIRED INVESTMENT SECURITIES

The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more, and are not other than temporarily impaired, were as follows:

	As of June 30, 2011 (dollars in thousands)
	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
Obligations of states and municipalities	$	2,431	$	(18	)	$	- -	$	-		$	2,431	$	(18	)
Corporate debt securities		498		(1	)		-		-			498		(1	)
Mortgage-backed securities		525		(1	)		634		(88	)		1,159		(89	)
Total temporarily impaired securities	$	3,454	$	(20	)	$	634	$	(88	)	$	4,088	$	(108	)

The investments in the Company’s investment portfolio that were temporarily impaired as of June 30, 2011 consisted of debt issued by states and municipalities, corporations and U.S. government agencies and sponsored enterprises. The Company’s management anticipates that the fair value of securities that are currently impaired will recover to cost basis. As the Company has the ability and intent to hold securities for the foreseeable future, no declines are deemed to be other than temporary.