California Bank of Commerce NOTES TO FINANCIAL STATEMENTS 3.  INVESTMENT SECURITIES  (Continued) 4. LOANS Salaries and employee benefits totaling $1,120,130 and $1,039,003 were deferred as loan origination  costs for the years ended December 31, 2011 and 2010, respectively. Loans with carrying values totaling approximately $165,412,000 were pledged to secure borrowing  arrangements at December 31, 2011 (see Note 9). 31 December 31,  2011 2010 Commercial & Industrial  $  94,412,665 $  74,546,021 Real estate - Construction & Land  3,761,769 6,837,451 Real Estate - Other  101,323,177 86,901,318 Real Estate - HELOC  4,067,094 4,598,076 Installment and Other  3,584,941 999,865 207,149,646 173,882,731 Deferred loan origination costs, net  597,450 517,802 Allowance for loan losses  (4,175,000)  (4,327,000) $ 203,572,096 $ 170,073,533 At December 31, 2011, the Bank held 28 mortgage-backed securities, of which 10 were in a loss  position at year end, all of which had been in a continuous loss position for less than twelve months.  At December 31, 2010, the Bank held 1 U.S. Government agency security and 20 mortgage-backed  securities, of which 2 were in a loss position at year end, all of which had been in a continuous loss  position for less than twelve months Management believes that changes in the market value of its mortgage-backed securities are primarily  attributable to changes in interest rates, underlying pool characteristics and relative illiquidity and  not credit quality, and because the Bank has the ability and intent to hold those investments until a  recovery of fair value, which may be maturity, the Bank does not consider those investments to be  other-than-temporarily impaired at December 31, 2011. At December 31, 2011, investment securities were comprised of U.S. Government agency  collateralized mortgage-backed securities with no single maturity dates. Expected maturities will  differ from contractual maturities because the issuers of the securities may have the right to call or  prepay obligations with or without call or prepayment penalties. At December 31, 2011, most investment securities were pledged to secure State Treasury funds on  deposit and borrowing arrangements in place at the Federal Reserve Bank of San Francisco. (See  Note 9) Available-for-Sale (Continued) Outstanding loans are summarized below: