INVESTMENT SECURITIES AVAILABLE FOR SALE

12 Months Ended

Dec. 31, 2011

Investment Securities Available For Sale

INVESTMENT SECURITIES AVAILABLE FOR SALE

2.	INVESTMENT SECURITIES AVAILABLE FOR SALE
	The amortized cost and fair value of investment securities available for sale are summarized as follows:

	DECEMBER 31, 2011
	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		ESTIMATED FAIR VALUE
U.S. Treasury Notes	$	6,153,299	$	157,483	$	-	$	6,310,782
Government-Sponsored Enterprises		18,100,730		333,387		-		18,434,117
Municipal Securities		32,101,781		2,706,597		1,117		34,807,261
Total	$	56,355,810	$	3,197,467	$	1,117	$	59,552,160

	DECEMBER 31, 2010
	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		ESTIMATED FAIR VALUE
U.S. Treasury Notes	$	9,055,078	$	8,784	$	40,425	$	9,023,437
Government-Sponsored Enterprises		6,013,897		86,648		-		6,100,545
Municipal Securities		23,913,091		577,462		234,922		24,255,631
Total	$	38,982,066	$	672,894	$	275,347	$	39,379,613

The amortized cost and estimated fair value of investment securities available for sale at December 31, 2011, by contractual maturity are as follows:

	AMORTIZED COST		ESTIMATED FAIR VALUE
Due in one year or less	$	3,745,464	$	3,752,060
Due in one year to five years		30,306,215		31,159,444
Due in five years to ten years		11,110,227		12,350,591
Due in ten years and over		11,193,904		12,290,065
Total	$	56,355,810	$	59,552,160

The Company recognized a gain of $124,672 on the sale of $18,000,000 in US Treasury Notes in 2011. There were no securities sold during the year ended December 31, 2010.

Investment securities with an aggregate amortized cost of $39,660,266 and estimated fair value of $42,245,117 at December 31, 2011, were pledged to secure deposits and other balances, as required or permitted by law.

At December 31, 2011 there were three Municipal Securities with an unrealized loss of $1,117 as compared to two US Treasury Notes with an unrealized loss of $40,425 and fourteen Municipal Securities with an unrealized loss of $234,922 at December 31, 2010. These investments are not considered other-than-temporarily impaired. Gross unrealized losses and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2011 and December 31, 2010 are as follows:

DECMBER 31, 2011
	Less than 12 months				12 months or longer				Total
Descriptions of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury Notes	$	-		-	$	-		-	$	-	$	-
Government-Sponsored Enterprises		-		-		-		-		-		-
Municipal Securities		243,884		1,117		-		-		243,884		1,117
Total	$	243,884		1,117	$	-		-	$	243,884	$	1,117

DECMBER 31, 2010
	Less than 12 months				12 months or longer				Total
Descriptions of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury Notes	$	6,015,469		40,425	$	-		-	$	6,015,469	$	40,425
Government-Sponsored Enterprises		-		-		-		-		-		-
Municipal Securities		8,468,976		234,922		-		-		8,468,976		234,922
Total	$	14,484,445		275,347	$	-		-	$	14,484,445	$	275,347

The unrealized losses on investments were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less the amortized cost of the investment. Because the Company has the ability and intent to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.