Note 4 - Securities

At March 31, 2012 and December 31, 2011, the Company had the following securities in its investment portfolio:

			Gross Unrealized
March 31, 2012 ($000's)	Fair Value		Gain		Loss

States and political subdivisions	$	2,984	$	102	$	(8	)
Mortgage-backed securities		77,995		1,698		0
Equity securities		4,253		150		0

Total securities available for sale	$	85,232	$	1,950	$	(8	)

			Gross Unrealized
December 31, 2011 ($000's)	Fair Value		Gains		Losses

States and political subdivisions	$	3,117	$	112	$	(10	)
Mortgage-backed securities		79,762		1,533		0
Equity securities		4,261		157		0

Total securities available for sale	$	87,140	$	1,802	$	(10	)

At March 31, 2012, the Company had pledged securities of $51.2 million as compared to $57.0 million at December 31, 2011. Securities are pledged to secure public deposits, repurchase agreements and for other purposes as required or permitted by law.

Contractual maturities of securities available for sale at March 31, 2012 are set forth below. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately:

	Fair
March 31, 2012 ($000's)	Value

Due in one year or less	$	124
Due after one year through five years		544
Due after five years through ten years		1,167
Due after ten years		1,149
		2,984
Mortgage-backed securities		77,995
Equity securities		4,253

Total securities available for sale	$	85,232

During the quarter ended March 31, 2012, the Company did not recognize any other than temporary impairment loss as compared with $163,000 recognized during the quarter ended March 31, 2011. For the quarter ended March 31, 2011, the Company recognized $134,000 of impairment losses on Collateralized Debt Obligations ("CDOs") classified as other bonds based on cash flow analyses pursuant to guidelines on recognition of impairment losses and wrote off the remaining carrying value of these securities. The Company also recognized $29,000 of other than temporary impairment loss on its FNMA and FHLMC preferred stocks, writing off the remaining carrying value of these securities during the first quarter of 2011.

At March 31, 2012 and December 31, 2011, the Company had six and seven individual securities, respectively in an unrealized loss position. The securities with unrealized losses at March 31, 2012 and December 31, 2011, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:

	Less than 12 Months					12 Months or More				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
March 31, 2012 ($000's)	Value		Losses			Value		Losses		Value		Losses

States and political subdivisions	$	817	$	(8	)	$	0	$	0	$	817	$	(8	)
Total temporarily impaired	$	817	$	(8	)	$	0	$	0	$	817	$	(8	)

	Less than 12 Months					12 Months or More				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
December 31, 2011 ($000's)	Value		Losses			Value		Losses		Value		Losses

States and political subdivisions	$	941	$	(10	)	$	0	$	0	$	941	$	(10	)
Total temporarily impaired	$	941	$	(10	)	$	0	$	0	$	941	$	(10	)

Management has the intent and ability to hold these securities in an unrealized loss position for the foreseeable future. Management believes that it is unlikely that the Company will be required to sell the securities while they are in an unrealized loss position.