4. INVESTMENT SECURITIES

Investment securities have been classified in the consolidated balance sheets according to management's intent and ability to hold the investment.

Investment securities at December 31, 2012 and 2011 are summarized in the following table (in thousands).

	2012
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

Available-for-Sale:
Mutual funds - mortgage securities	$	747	$	2	$	40	$	709
Mutual funds - U.S. Government securities		686		—		13		673
Equity securities		226		256		—		482
SBA securitized loan pools		3,658		10		10		3,658
Other debt securities		732		—		—		732
Mortgage-backed securities		27,159		192		101		27,250
	$	33,208	$	460	$	164	$	33,504

Held-to-Maturity:
SBA securitized loan pools	$	1,389	$	—		17	$	1,372
Other debt securities		500		9		—		509
Mortgage-backed securities		1,748		51		3		1,796
U. S. Treasury securities and obligations		250		—		—		250
	$	3,887	$	60	$	20	$	3,927

	2011
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available-for-Sale:
Mutual funds - mortgage securities	$	747	$	5	$	41	$	711
Mutual funds - U.S. Government securities		686		—		12		674
Equity securities		226		136		—		362
SBA securitized loan pools		4,947		9		35		4,921
Other debt securities		3,200		4		37		3,167
Mortgage-backed securities		13,817		49		45		13,821
	$	23,623	$	203	$	170	$	23,656

Held-to-Maturity:
SBA securitized loan pools	$	2,161	$	—		32	$	2,129
Other debt securities		1,500		12		—		1,512
Mortgage-backed securities		5,334		41		30		5,345
U. S. Treasury securities and obligations		750		—		—		750
	$	9,745	$	53	$	62	$	9,736

At December 31, 2012 and 2011, investment securities with a carrying value of $250,000 and $750,000, respectively, were pledged to secure deposits of municipalities. At December 31, 2012 and 2011, investment securities with a carrying value of $30.7 million and $25.1 million, respectively, were pledged to secure advances from the Federal Home Loan Bank of Atlanta, investment securities with a carrying value of $1.8 million and $2.5 million, respectively, were pledged to Community Bankers' Bank, and investment securities with a carrying value of $2.8 million and $3.3 million, respectively, were pledged to the Federal Reserve Bank of Richmond.

The contractual maturities of investment securities at December 31, 2012 (in thousands) are shown below. The values shown are carrying values. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	Carrying		Due Within		Due Between		Due Between		Due After
	Value		One Year		1-5 Years		5-10 Years		10 Years
Available-for-Sale:
SBA securitized loan pools	$	3,658	$	—	$	1,077	$	2,581	$	—
Other debt securities		732		—		732		—		—
Mortgage-backed securities		27,250		—		480		3,865		22,905
Held-to-Maturity:
SBA securitized loan pools		1,389		—		1,389		—		—
Other debt securities		500		—		500		—		—
Mortgage-backed securities		1,748		459		1,209		80		—
U.S. Treasury securities and obligations		250		250		—		—		—
	$	35,527	$	709	$	5,387	$	6,526	$	22,905

The contractual maturities of investment securities at December 31, 2012 (in thousands) are shown below. The values shown are fair values. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

	Carrying		Due Within		Due Between		Due Between		Due After
	Value		One Year		1-5 Years		5-10 Years		10 Years
Available-for-Sale:
SBA securitized loan pools	$	3,658	$	—	$	1,077	$	2,581	$	—
Other debt securities		732		—		732		—		—
Mortgage-backed securities		27,250		—		480		3,865		22,905
Held-to-Maturity:
SBA securitized loan pools		1,372		—		1,372		—		—
Other debt securities		509		—		509		—		—
Mortgage-backed securities		1,796		466		1,248		82		—
U.S. Treasury securities and obligations		250		250		—		—		—
	$	35,527	$	709	$	5,387	$	6,526	$	22,905

As of December 31, 2012, unrealized losses (in thousands) on securities were comprised of the following based on the length of time that the securities have been in a continuous loss position:

	Less than 12 Months				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-Sale:
Mutual funds – mortgage securities	$	—	$	—	$	136	$	40	$	136	$	40
Mutual funds – US Govt securities		—		—		673		13		673		13
SBA securitized loan pools		—		—		480		10		480		10
Mortgage-backed securities		13,554		98		95		3		13,649		101
Held-to-Maturity:
SBA securitized loan pools		275		2		1,017		15		1,292		17
Mortgage-backed securities		—		—		270		3		270		3
	$	13,829	$	100	$	2,671	$	84	$	16,500	$	184

As of December 31, 2011, unrealized losses (in thousands) on securities were comprised of the following based on the length of time that the securities have been in a continuous loss position:

	Less than 12 Months				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-Sale:
Mutual funds – mortgage securities	$	—	$	—	$	135	$	41	$	135	$	41
Mutual funds – US Govt securities		—		—		674		12		674		12
SBA securitized loan pools		3,892		35		—		—		3,892		35
Other debt securities		913		37		—		—		913		37
Mortgage-backed securities		7,141		41		203		4		7,344		45
Held-to-Maturity:
SBA securitized loan pools		2,129		32		—		—		2,129		32
Mortgage-backed securities		1,799		30		—		—		1,799		30
	$	15,874	$	175	$	1,012	$	57	$	16,886	$	232

Management has the intent to hold the securities classified as held to maturity in the table above until they mature, at which time the Company will receive full value for the securities. Furthermore, as of December 31, 2012 and 2011, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2012 and 2011, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company's consolidated income statement.

The Company did not sell any securities during the years ended December 31, 2012 and 2011.