NON-MARKETABLE EQUITY SECURITIES

The aggregate cost of the Company’s cost method investments totaled $8,771,278 at December 31, 2011 and $12,463,510 at December 31, 2010. Cost method investments at December 31, 2011 include $6,130,000 in FHLB stock and $2,641,278 of investments in various trust and financial companies, which are included in other assets. All equity investments were evaluated for impairment at December 31, 2011. The following factors have been considered in determining the carrying amount of FHLB stock; 1) the recoverability of the par value, 2) the Company has sufficient liquidity to meet all operational needs in the foreseeable future and would not need to dispose of the stock below recorded amounts, 3) redemptions and purchases of the stock are at the discretion of the FHLB, 4) the Company feels the FHLB has the ability to absorb economic losses given the expectation that the various FHLBs’ have a high degree of government support, and 5) the unrealized losses related to securities owned by the FHLB are manageable given the capital levels of the organization. The Company estimated that the fair value equaled or exceeded the cost of each of these investments (that is, the investments were not impaired) on the basis of the redemption provisions of the issuing entities with the following exceptions. The Company wrote off $116,000 of an investment in a financial services company that was considered to be OTTI in 2011. The Company’s investment in a financial services company was considered to be OTTI and approximately $86,000 was charged-off in 2010. The Company’s investment of $151,722 in Silverton Financial was considered to be other than temporarily impaired and all of the investment was written off in 2009. On May 1, 2009 the OCC closed Silverton Bank, National Association, a wholly owned subsidiary of SFS. The OCC appointed the FDIC as receiver, and the FDIC created a bridge bank, Silverton Bridge Bank, National Association, to take over the operations until July 29, 2009 to allow customers to transfer their account relationships in an orderly fashion. Additionally, the Company’s investments in two financial services companies were considered to be OTTI and $220,371 was charged off in 2009. In addition, the Company sold one of its investments in a financial services company resulting in a loss of $79,910 in 2011. There were no sales of non-marketable equity securities in 2010 or 2009.

The following tables present non-marketable securities at December 31, 2011 and December 31, 2010:



December 31, 2011
Investment	Investment Type	Original Cost		Cumulative OTTI Charge		Current Balance
Federal Home Loan Bank of Atlanta	Common stock	$	6,130,000	—		$	6,130,000
Yadkin Valley Statutory Trust I	Common stock	774,000		—		774,000
American Community Capital Trust II	Common stock	310,000		—		310,000
Limited partnerships providing lending
services to middle-market companies	Limited Partner	1,420,412		—		1,420,412
Other	Common stock	638,793		501,927		136,866
Total		$	9,273,205	$	501,927	$	8,771,278



December 31, 2010
Investment	Investment Type	Original Cost		Cumulative OTTI Charge		Current Balance
Federal Home Loan Bank of Atlanta	Common stock	$	9,416,400	—		$	9,416,400
Yadkin Valley Statutory Trust I	Common stock	774,000		—		774,000
American Community Capital Trust II	Common stock	310,000		—		310,000
Limited partnerships providing lending
services to middle-market companies	Limited Partner	1,796,551		86,309		1,710,242
Other	Common stock	638,792		385,924		252,868
Total		$	12,935,743	$	472,233	$	12,463,510