Audited Financial Statements NOTE 4: RESTRICTED CASH BALANCES NOTE 5: SECURITIES  (a) Includes securities issued by U.S. government agencies or government sponsored entities. Securities with aggregate fair values of $161.5 million and $171.1 million at December 31, 2011 and 2010,  respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, Federal Home Loan  Bank (“FHLB”) advances, and for other purposes required or permitted by law. Included in other assets on the Consolidated Balance Sheets are cost-method investments. The carrying amounts of  cost-method investments were $5.0 and $5.8 million at December 31, 2011 and 2010, respectively. Cost-method investments  primarily include non-marketable equity investments, such as FHLB of Atlanta stock and Federal Reserve Bank (“FRB”)  stock. page 45 Regulation D of the Federal Reserve Act requires that banks maintain reserve balances with the Federal Reserve Bank  based principally on the type and amount of their deposits. As of December 31, 2011 and 2010, the Bank did not have a  required reserve balance at the Federal Reserve Bank. At December 31, 2011 and 2010, respectively, all securities within the scope of FASB ASC 320,  Investments – Debt  and Equity Securities  were classified as available-for-sale. The fair value and amortized cost for securities available-for-sale  by contractual maturity at December 31, 2011 and 2010, respectively, are presented below. (a) Includes securities issued by U.S. government agencies or government sponsored entities. December 31, 2011 1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized  Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost Available-for-sale: Agency obligations (a) $ — — 5,013 46,072 51,085 182 1 $ 50,904 Agency RMBS (a) 14,935 149,863 164,798 2,534 129 162,393 State and political subdivisions — 414 17,761 63,538 81,713 4,339 48 77,422 Trust preferred securities: Pooled — — — 100 100 — 130 230 Individual issuer 1,886 1,886 186 243 1,943 Total available-for-sale $ — 414 37,709 261,459 299,582 7,241 551 $ 292,892 December 31, 2010 1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized  Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost Available-for-sale: Agency obligations (a) $ — — 37,821 52,650 90,471 95 1,017 $ 91,393 Agency RMBS (a) 9,976 133,168 143,144 1,566 1,441 143,019 State and political subdivisions 21 856 13,547 62,342 76,766 472 2,801 79,095 Trust preferred securities: Pooled — — — 20 20 — 210 230 Individual issuer 2,129 2,129 153 2,282 Corporate debt — 2,690 — — 2,690 — — 2,690 Total available-for-sale $ 21 3,546 61,344 250,309 315,220 2,133 5,622 $ 318,709