Note 2 - Securities

12 Months Ended

Dec. 31, 2012

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2:                      SECURITIES

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities classified as available-for-sale are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2012
Equity Securities	$	102,212	$	306	$	(31,604	)	$	70,914
Debt Securities:
U. S. government agencies		38,188,554		202,213		(39,706	)		38,351,061
Municipals		10,212,376		250,269		(84,456	)		10,378,189
Corporates		1,839,976		67,889		-			1,907,865
Government sponsored mortgage-backed securities		50,366,374		1,304,242		(398,001	)		51,272,615
	$	100,709,492	$	1,824,919	$	(553,767	)	$	101,980,644

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2011
Equity Securities	$	102,212	$	-	$	(39,950	)	$	62,262
Debt Securities:
U. S. government agencies		34,668,833		122,093		(64,264	)		34,726,662
U. S. treasuries		2,037,168		5,469		-			2,042,637
Municipals		4,049,701		138,736		(44,038	)		4,144,399
Government sponsored mortgage-backed securities		38,950,955		1,148,789		(10,826	)		40,088,918
	$	79,808,869	$	1,415,087	$	(159,078	)	$	81,064,878

Maturities of available-for-sale debt securities as of December 31, 2012:

	Amortized Cost		Approximate Fair Value
Within one year	$	500,000	$	500,675
1-5 years		12,082,163		12,224,858
5-10 years		30,436,756		30,567,166
After ten years		7,221,987		7,344,416
Government sponsored mortgage-backed securities not due on a single maturity date		50,366,374		51,272,615
	$	100,607,280	$	101,909,730

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities classified as held to maturity are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Approximate Fair Value
As of December 31, 2012
Debt Securities:
Government sponsored mortgage-backed securities	$	181,042	$	12,440	$	-	$	193,482

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Approximate Fair Value
As of December 31, 2011
Debt Securities:
Government sponsored  mortgage-backed securities	$	218,571	$	17,003	$	-	$	235,574

Maturities of held-to-maturity securities as of December 31, 2012:

	Amortized Cost		Approximate Fair Value
Government sponsored mortgage-backed securities not due on a single maturity date	$	181,042	$	193,482

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $57,378,710 and $60,222,048 as of December 31, 2012 and 2011, respectively.

Gross gains of $168,306, $1,505,915 and $275,125 and gross losses of $0, $0 and $0 resulting from sale of available-for-sale securities were realized for the years ended December 31, 2012, 2011 and 2010, respectively.  The tax effect of these net gains was $62,273, $557,188 and $101,796 in 2012, 2011 and 2010, respectively.

The Company evaluates all securities quarterly to determine if any unrealized losses are deemed to be other than temporary.  Certain investment securities are valued less than their historical cost. These declines are primarily the result of the rate for these investments yielding less than current market rates, or declines in stock prices of equity securities. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. It is management’s intent to hold the debt securities to maturity or until recovery of the unrealized loss. Should the impairment of any of these debt securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified, to the extent the loss is related to credit issues, and to other comprehensive income to the extent the decline on debt securities is related to other factors and the Company does not intend to sell the security prior to recovery of the unrealized loss.

                No securities were written down for other-than-temporary impairment during the years ended December 31, 2012, 2011 and 2010.

Certain other investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost.  Total fair value of these investments at December 31, 2012 and 2011, was $30,121,495 and $29,766,876, respectively, which is approximately 29% and 37% of the Company’s investment portfolio.  These declines primarily resulted from changes in market interest rates and failure of certain investments to meet projected earnings targets.

The following table shows gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012 and 2011.

	December 31, 2012
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Equity Securities	$	-	$	-		$	39,930	$	(31,604	)	$	39,930	$	(31,604	)
U. S. government agencies		7,298,687		(39,706	)		-		-			7,298,687		(39,706	)
Municipals		2,648,047		(76,318	)		538,300		(8,138	)		3,186,347		(84,456	)
Government sponsored mortgage-backed securities		19,596,531		(398,001	)		-		-			19,596,531		(398,001	)
	$	29,543,265	$	(514,025	)	$	578,230	$	(39,742	)	$	30,121,495	$	(553,767	)

	December 31, 2011
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Equity Securities	$	26,316	$	(4,361	)	$	35,946	$	(35,589	)	$	62,262	$	(39,950	)
U. S. government agencies		21,351,961		(64,264	)		-		-			21,351,961		(64,264	)
Municipals		1,045,521		(44,038	)		-		-			1,045,521		(44,038	)
Government sponsored mortgage-backed securities		7,307,132		(10,826	)		-		-			7,307,132		(10,826	)
	$	29,730,930	$	(123,489	)	$	35,946	$	(35,589	)	$	29,766,876	$	(159,078	)