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## NOTE 4: RESTRICTED CASH BALANCES 

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. 

## NOTE 5: SECURITIES 

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. 

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(a) Includes securities issued by U.S. government agencies or government sponsored entities. 

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(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. 

