Investment Securities

9 Months Ended

Sep. 30, 2011

Investment Securities [Abstract]

Investment Securities

Note 2: Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of available-for-sale securities at September 30, 2011 and December 31, 2010 are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
U. S. Government agency mortgage-backed securities	$	70,131,473	$	1,519,219	$	(5,694	)	$	71,644,998
U. S. Government agency bonds		5,000,000		36,100		—			5,036,100
Corporate bonds		12,272,271		212,749		(637,068	)		11,847,952
	$	87,403,744	$	1,768,068	$	(642,762	)	$	88,529,050
December 31, 2010:
U. S. Government agency mortgage-backed securities	$	36,572,430	$	900,286	$	(838	)	$	37,471,878
Auction rate preferred equity securities		1,899,720		1,193,102		—			3,092,822
	$	38,472,150	$	2,093,388	$	(838	)	$	40,564,700

The following table presents the gross unrealized loss and fair value of Bancorp’s available-for-sale securities, aggregated by the length of time the individual securities have been in a continuous loss position, at September 30, 2011 and December 31, 2010:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
September 30, 2011:
Corporate bonds	$	5,362,932	$	(637,068	)	$	—	$	—		$	5,362,932	$	(637,068	)
U. S. Government mortgage - backed securities	$	4,662,632	$	(5,040	)	$	68,702	$	(654	)	$	4,731,334	$	(5,694	)
Totals	$	10,025,564	$	(642,108	)	$	68,702	$	(654	)	$	10,094,266	$	(642,762	)
December 31, 2010:
U. S. Government mortgage - backed securities	$	86,375	$	(838	)	$	—	$	—		$	86,375	$	(838	)
Totals	$	86,375	$	(838	)	$	—	$	—		$	86,375	$	(838	)

At September 30, 2011, 7 securities had unrealized holding losses with aggregate depreciation of 5.99% from the amortized cost. There was one security with unrealized losses greater than 5% of amortized cost. At December 31, 2010, two securities had unrealized losses with aggregate depreciation of 1.0% from the amortized cost. There were no securities with unrealized losses greater than 5% of amortized cost.

Bancorp performs a quarterly analysis of those securities that are in an unrealized loss position to determine if those losses qualify as other-than-temporary impairments. This analysis considers the following criteria in its determination: the ability of the issuer to meet its obligations, an impairment due to a deterioration in credit, management’s plans and ability to maintain its investment in the security, the length of time and the amount by which the security has been in a loss position, the interest rate environment, the general economic environment and prospects or projections for improvement or deterioration.

Management believes that none of the unrealized losses on available-for-sale securities noted above are other than temporary due to the fact that they relate to interest rate changes on mortgage-backed securities issued by U.S. Government agencies, and generally weak economic news and global concerns regarding the financial services industry that is impacting the corporate bonds. Management considers the issuers of the mortgage-backed securities, as well as the corporate bonds, to be financially sound, and the Company expects to receive all contractual principal and interest related to these investments. Because the Company does not intend to sell the investments, and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2011.

The amortized cost and fair value of available-for-sale debt securities at September 30, 2011, by contractual maturity, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary:

	Amortized Cost		Fair Value
Maturity:
> 10 years	$	—	$	—
Corporate bonds < 5 years		3,272,271		3,465,040
Corporate bonds 5 to 10 years		9,000,000		8,382,912
U. S. Government bonds 5 to 10 years		5,000,000		5,036,100
Mortgage-backed securities		70,131,473		71,644,998
Total	$	87,403,744	$	88,529,050