5. Securities

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


	June 30, 2012
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$2,000	$7	$(2)	$2,005
States and political subdivisions	54,163	2,648	(42)	56,769
Corporate obligations	8,635	215	(5)	8,845
Mortgage-backed securities- government sponsored entities	74,944	1,970	(25)	76,889
	139,742	4,840	(74)	144,508
Equity securities-financial services	189	23	-	212
	$139,931	$4,863	$(74)	$144,720
Held to Maturity:
States and political subdivisions	$172	$5	$-	$177


	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):


	June 30, 2012
	Less than 12 Months 12 Months or More __Total__ ___
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Government Agencies	$998	$(2)	$-	$-	$998	$(2)
States and political subdivisions	3,254	(42)	-	-	3,254	(42)
Corporate obligations	1,457	(5)	-	-	1,457	(5)
Mortgage-backed securities-government sponsored agencies	6,563	(25)	-	-	6,563	(25)
	$12,272	$(74)	$-	$-	$12,272	$(74)


	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 June 30, 2012, the Company has 14 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. As of June 30, 2012, there were no unrealized losses on equity securities. 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 June 30, 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	$10,209	$10,313	$-	$-
Due after one year through five years
Due after five years through ten years	7,466	7,690	172	177
Due after ten years	17,363	18,255	-	-
	29,760	31,361	-	-
Mortgage-backed securities-government sponsored agencies	74,944	76,889	-	-
	$139,742	$144,508	$172	$177

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


	Three Months Six Months
	Ended June 30, Ended June 30,
	2012	2011	2012	2011
Gross realized gains	$285	$15	$687	$228
Gross realized losses	___-	__(3)	___-	_(4)
Net realized gain	$285	$12	$687	$224
Proceeds from sales of securities	$7,716	$4,157	$18,349	$10,344