Note 2.

Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at March 31, 2012 and December 31, 2011 were as follows:

		000000000		000000000		000000000			000000000
	(in thousands) March 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. agency and mortgage-backed securities	$	72,893	$	1,328	$	(102	)	$	74,119
Obligations of states and political subdivisions		9,780		620		(12	)		10,388
Corporate equity securities		26		94		—			120

	$	82,699	$	2,042	$	(114	)	$	84,627

		000000000		000000000		000000000			000000000
	(in thousands) December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. agency and mortgage-backed securities	$	76,549	$	2,343	$	(16	)	$	78,876
Obligations of states and political subdivisions		11,895		781		—			12,676
Corporate equity securities		26		87		—			113

	$	88,470	$	3,211	$	(16	)	$	91,665

At March 31, 2012 and December 31, 2011, investments in an unrealized loss position that were temporarily impaired were as follows:


	(in thousands) March 31, 2012
	Less than 12 months					12 months or more				Total
	Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)		Fair Value		Unrealized (Loss)
U.S. agency and mortgage-backed securities	$	10,802	$	(102	)	$	—	$	—	$	10,802	$	(102	)
Obligations of states and political subdivisions		550		(12	)		—		—		550		(12	)

	$	11,352	$	(114	)	$	—	$	—	$	11,352	$	(114	)


	(in thousands) December 31, 2011
	Less than 12 months					12 months or more				Total
	Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)		Fair Value		Unrealized (Loss)
U.S. agency and mortgage-backed securities	$	3,955	$	(16	)	$	—	$	—	$	3,955	$	(16	)

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security's entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

At March 31, 2012, there were six U.S. agency and mortgage-backed securities and one obligation of state and political subdivisions in an unrealized loss position. One hundred percent of the Company's investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 3.7 years at March 31, 2012.

The Company's investment in Federal Home Loan Bank (FHLB) stock totaled $1.9 million at March 31, 2012. FHLB stock is generally viewed as a long-term investment and as a restricted security, which is carried at cost, because there is a minimal market for the stock. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be other-than-temporarily impaired at March 31, 2012, and no impairment has been recognized. FHLB stock is shown in restricted securities on the balance sheet and is not part of the available for sale securities portfolio.