INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2012

Investments Debt and Equity Securities [Abstract]

Available For Sale Securities Disclosure [Text Block]

NOTE E - INVESTMENT SECURITIES

The following is a summary of the securities portfolio by major classification:

	March 31, 2012
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
Securities available for sale:
Mortgage-backed securities	$	26,695,109	$	105,063	$	8,206	$	26,791,966
Collateralized mortgage obligations		79,000,586		290,442		277,437		79,013,591
Municipals, non-taxable		13,259,418		348,328		-		13,607,746
Corporate bonds		24,071,729		836,802		-		24,908,531
Marketable equity		532,548		88,852		-		621,400
	$	143,559,390	$	1,669,487	$	285,643	$	144,943,234

	December 31, 2011
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
Securities available for sale:
Mortgage-backed securities	$	19,451,556	$	19,641	$	106,853	$	19,364,344
Collateralized mortgage obligations		82,192,471		153,812		251,414		82,094,869
Municipals, non-taxable		13,280,926		263,159		30,194		13,513,891
Corporate bonds		28,041,712		38,943		114,553		27,966,102
Marketable equity		519,458		49,575		4,391		564,642
	$	143,486,123	$	525,130	$	507,405	$	143,503,848

All mortgage-backed securities and collateralized mortgage obligations in the Company’s portfolio at March 31, 2012 and December 31, 2011 were backed by government sponsored enterprises (“GSEs”).

The following tables summarize gross unrealized losses and fair values, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2012 and December 31, 2011:

	March 31, 2012
	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
Securities available for sale:
Mortgage-backed	$	7,509,277	$	8,206	$	-	$	-	$	7,509,277	$	8,206
Collateralized mortgage obligations		50,460,144		277,437		-		-		50,460,144		277,437
Total temporarily impaired  securities	$	57,969,421	$	285,643	$	-	$	-	$	57,969,421	$	285,643

	December 31, 2011
	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
Securities available for sale:
Mortgage-backed	$	9,153,058	$	106,854	$	-	$	-	$	9,153,058	$	106,854
Collateralized mortgage  obligations		67,359,625		251,413		-		-		67,359,625		251,413
Municipals		2,637,330		30,194		-		-		2,637,330		30,194
Corporate bonds		15,818,502		114,553		-		-		15,818,502		114,553
Marketable equity		32,131		4,391		-		-		32,131		4,391
Total temporarily impaired  securities	$	95,000,646	$	507,405	$	-	$	-	$	95,000,646	$	507,405

Unrealized losses on investment securities at March 31, 2012 related to five GSE collateralized mortgage obligations and two GSE mortgage-backed securities. Unrealized losses on investment securities at December 31, 2011 related to eleven GSE collateralized mortgage obligations, four GSE mortgage-backed securities, three municipal securities, seven investment grade corporate bonds and one marketable equity security. At March 31, 2012 and December 31, 2011, none of the securities had been in an unrealized loss position for more than a twelve month period.

The securities in an unrealized loss position at March 31, 2012 have continued to perform and are expected to perform through maturity, and the issuers have not experienced significant adverse events that would call into question their ability to repay these debt obligations according to contractual terms. Further, because the Company does not intend to sell these investments and does not believe that it will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, unrealized losses on such securities are not considered to represent other-than-temporary impairment at March 31, 2012.

At March 31, 2012 and December 31, 2011, investment securities with a carrying value of $32.5 million and $43.9 million respectively, were pledged to secure public deposits, borrowings and for other purposes required or permitted by law.

The amortized cost and fair values of securities available for sale at March 31, 2012, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

			Due after one		Due after five				Other
	Due within		year through		years through		Due after		equity
	one year		five years		ten years		ten years		securities
Mortgage backed:
Amortized cost	$	3,918,107	$	10,043,343	$	6,735,485	$	5,998,174	$	-
Fair value		3,926,840		10,074,122		6,763,659		6,027,346		-
Collateralized mortgage obligations
Amortized cost		11,606,365		47,518,158		17,764,238		2,111,825		-
Fair value		11,650,169		47,535,677		17,727,123		2,100,621		-
Municipals
Amortized cost		455,000		3,627,918		7,039,439		2,137,059		-
Fair value		455,000		3,698,219		7,208,737		2,245,790		-
Corporate bonds
Amortized cost		-		24,071,729		-		-		-
Fair value		-		24,908,531		-		-		-
Marketable equity
Amortized cost		-		-		-		-		532,548
Fair value		-		-		-		-		621,400
Total
Amortized cost	$	15,979,472	$	85,261,148	$	31,539,162	$	10,247,058	$	532,548
Fair value	$	16,032,009	$	86,216,549	$	31,699,519	$	10,373,757	$	621,400