5. Securities

The amortized cost and fair value of securities were as follows:

	March 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$	9,000	$	16	$	-		$	9,016
States and political subdivisions		51,667		2,439		(12	)		54,094
Corporate obligations		9,150		234		-			9,384
Mortgage-backed securities-government sponsored entities		73,700		2,100		(13	)		75,787
		143,517		4,789		(25	)		148,281
Equity securities-financial services		189		20		(1	)		208
	$	143,706	$	4,809	$	(26	)	$	148,489
Held to Maturity:
States and political subdivisions	$	171	$	4	$	-		$	175

	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$	13,268	$	130	$	-		$	13,398
States and political subdivisions		54,106		2,640		-			56,746
Corporate obligations		8,733		130		(54	)		8,809
Mortgage-backed securities-government sponsored entities		68,886		2,081		(2	)		70,965
		144,993		4,981		(56	)		149,918
Equity securities-financial services		239		109		(3	)		345
	$	145,232	$	5,090	$	(59	)	$	150,263
Held to Maturity:
States and political subdivisions	$	171	$	6	$	-		$	177

The following tables show the Company's investments' gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	March 31, 2012
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
States and political subdivisions	$	1,082	$	(12	)	$	-	$	-		$	1,082	$	(12	)
Mortgage-backed securities-government sponsored agencies		6,627		(13	)		-		-			6,627		(13	)
Equity securities-financial services		-		-			15		(1	)		15		(1	)
	$	7,709	$	(25	)	$	15	$	(1	)	$	7,724	$	(26	)

	December 31, 2011
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Corporate obligations	$	4,152	$	(54	)	$	-	$	-		$	4,152	$	(54	)

Mortgage-backed securities-government sponsored agencies		2,495		(2	)		-		-			2,495		(2	)
Equity securities-financial services		34		(2	)		15		(1	)		49		(3	)
	$	6,681	$	(58	)	$	15	$	(1	)	$	6,696	$	(59	)

At March 31, 2012, the Company has 6 debt securities in an unrealized loss position in the less than twelve months category and no debt securities in the twelve months or more category. In Management's opinion the unrealized losses less than twelve months principally reflect changes in interest rates subsequent to the acquisition of specific securities. The Company holds a small amount of equity securities in other financial institutions. The value of these equity securities has been impacted by the overall weakness in the financial sector, one of which has been in a loss position for greater than one year. Management believes that the other unrealized loss represents temporary impairment of the security as the Company does not have the intent to sell the security and it is more likely than not that it will not have to sell the security before recovery of its cost basis.

The amortized cost and fair value of debt securities as of March 31, 2012 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)

Due in one year or less	$	1,471	$	1,474	$	-	$	-
Due after one year through five years		17,753		18,028		171		175
Due after five years through ten years		18,944		19,873		-		-
Due after ten years		31,649		33,119		-		-

Mortgage-backed securities-government sponsored agencies		73,700		75,787		-		-
	$	143,517	$	148,281	$	171	$	175

Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands):

	Three Months
	Ended March 31,
	2012		2011
Gross realized gains	$	402	$	212
Gross realized losses	___-		___-
Net realized gain	$	402	$	212
Proceeds from sales of securities	$	10,633	$	6,187