Investment Securities

6 Months Ended

Jun. 30, 2012

Investment Securities [Abstract]

Investment Securities

2. Investment Securities

Investment securities are summarized as follows:

	Amortized		Unrealized		Unrealized		Fair
	cost		gains		losses		value
June 30, 2012
Available for sale
U.S. Treasury	$	42,009,625	$	1,139,879	$	6,615	$	43,142,889
State and municipal		402,925		4,131		3,170		403,886
Equity		1,598,817		552,888		465,726		1,685,979
	$	44,011,367	$	1,696,898	$	475,511	$	45,232,754
Held to maturity
U.S. Treasury	$	52,979,905	$	154,744	$	7,088	$	53,127,561
U.S. Government agency		7,000,000		1,400		1,700		6,999,700
State and municipal		5,918,268		11,737		1,487		5,928,518
	$	65,898,173	$	167,881	$	10,275	$	66,055,779
December 31, 2011
Available for sale
U.S. Treasury	$	46,013,913	$	1,149,257	$	4,231	$	47,158,939
State and municipal		289,515		2,890		-		292,405
Equity		1,602,843		557,360		514,672		1,645,531
	$	47,906,271	$	1,709,507	$	518,903	$	49,096,875
Held to maturity
U.S. Treasury	$	44,993,821	$	246,352	$	5,402	$	45,234,771
U.S. Government agency		9,500,004		1,556		16,310		9,485,250
State and municipal		6,130,414		18,079		2,211		6,146,282
	$	60,624,239	$	265,987	$	23,923	$	60,866,303

The table below shows the gross unrealized losses and fair value of securities that are in an unrealized loss position as of June 30, 2012, aggregated by length of time that individual securities have been in a continuous unrealized loss position.

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
U.S. Treasury	$	30,968,800	$	13,703	$	-	$	-	$	30,968,800	$	13,703
U. S. Government Agency		1,998,300		1,700		-		-		1,998,300		1,700
State and municipal		1,381,391		4,657		-		-		1,381,391		4,657
Equity securities		349,214		54,786		347,057		410,940		696,271		465,726
Total	$	34,697,705	$	74,846	$	347,057	$	410,940	$	35,044,762	$	485,786

The debt securities for which an unrealized loss is recorded are issues of the Federal Home Loan Bank (a U. S. government agency), and general and highly rated revenue obligations of states and municipalities. The Company has the ability and the intent to hold these securities until they are called or mature at face value.  Equity securities for which an unrealized loss is recorded are issued by local community banks and bank holding companies.  Management believes that these fluctuations in fair value reflect market conditions, and are not indicative of other-than-temporary impairment of the investments.

In the second quarter of 2011, the Company recorded expense of $178,325 related to the other than temporary impairment (OTTI) of value of two equity investments.  In the current quarter, one of the two equity investments ceased business operations and as a result the remaining carrying value of $4,026 was recorded as a loss.  The OTTI related to the failed investment was $110,994, recorded in the second and third quarters of 2011.  OTTI of $78,000 remains, associated with another equity holding.

The amortized cost and estimated fair value of debt securities, by contractual maturity and the amount of pledged securities, follow.  Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2012				December 31, 2011
	Amortized		Fair		Amortized		Fair
	cost		value		cost		value
Available for sale Within one year	$	23,004,906	$	23,014,789	$	32,099,999	$	32,167,588
After one year through five years		17,410,569		17,462,386		12,206,498		12,288,356
After ten years		1,997,075		3,069,600		1,996,931		2,995,400
	$	42,412,550	$	43,546,775	$	46,303,428	$	47,451,344
Held to maturity Within one year	$	29,229,182	$	29,276,201	$	27,304,678	$	27,382,951
After one year through five years		36,668,991		36,779,578		33,319,561		33,483,352
	$	65,898,173	$	66,055,779	$	60,624,239	$	60,866,303
Pledged securities	$	20,591,268	$	20,696,491	$	22,739,753	$	22,905,072

Investments are pledged to secure deposits of federal and local governments.  Pledged securities also serve as collateral for securities sold under agreements to repurchase.