INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 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:

	June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Securities available for sale:
Residential mortgage-backed securities – GSE	$	39,507,593	$	535,016	$	30,973	$	40,011,636
Commercial mortgage-backed securities – private		6,848,630		-		23,449		6,825,181
Collateralized mortgage obligations – GSE		50,398,217		161,268		101,739		50,457,746
Municipals – non-taxable		15,527,164		464,054		50,872		15,940,346
Municipals – taxable		1,635,000		12,508		-		1,647,508
Corporate bonds		35,042,978		850,529		64,804		35,828,703
Marketable equity securities		545,963		172,512		-		718,475
	$	149,505,545	$	2,195,887	$	271,837	$	151,429,595

	December 31, 2011
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Securities available for sale:
Residential mortgage-backed securities – GSE	$	19,451,556	$	19,641	$	106,853	$	19,364,344
Collateralized mortgage obligations – GSE		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 securities		519,458		49,575		4,391		564,642
	$	143,486,123	$	525,130	$	507,405	$	143,503,848

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 June 30, 2012 and December 31, 2011:

	June 30, 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:
Residential mortgage-backed securities – GSE	$	9,075,923	$	30,973	$	-	$	-	$	9,075,923	$	30,973
Commercial mortgage-backed securities – private		6,825,180		23,449		-		-		6,825,180		23,449
Collateralized mortgage obligations – GSE		22,222,330		101,739		-		-		22,222,330		101,739
Municipals –non- taxable		3,931,967		50,872		-		-		3,931,967		50,872
Corporate bonds		9,244,690		64,804		-		-		9,244,690		64,804
Total temporarily impaired securities	$	51,300,090	$	271,837	$	-	$	-	$	51,300,090	$	271,837

	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:
Residential mortgage-backed Securities – GSE	$	9,153,058	$	106,854	$	-	$	-	$	9,153,058	$	106,853
Collateralized mortgage Obligations – GSE		67,359,625		251,413		-		-		67,359,625		251,414
Municipals – non-taxable		2,637,330		30,194		-		-		2,637,330		30,194
Corporate bonds		15,818,502		114,553		-		-		15,818,502		114,553
Marketable equity securities		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 June 30, 2012 related to three residential mortgage-backed securities issued by government sponsored enterprises (“GSEs”), two triple-A rated commercial mortgage-backed securities, five GSE collateralized mortgage obligations, four tax-exempt municipal bonds, and six investment grade corporate bonds. Unrealized losses on investment securities at December 31, 2011 related to eleven GSE collateralized mortgage obligations, four GSE residential mortgage-backed securities, three tax-exempt municipal securities, seven investment grade corporate bonds and one marketable equity security. At June 30, 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 June 30, 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 June 30, 2012.

At June 30, 2012, the Company held no individual investment securities with an aggregate book value greater than 10% of stockholders’ equity. At June 30, 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 June 30, 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.

	Less Than		One to		Five to		Over		Equity
	One Year		Five Years		Ten Years		Ten Years		Securities
Residential mortgage backed securities – GSE
Amortized cost	$	4,949,527	$	12,259,467	$	14,164,888	$	8,133,711	$	-
Fair value		5,005,411		12,432,324		14,280,322		8,293,579		-
Commercial mortgage backed securities – private
Amortized cost		-		-		6,848,630		-		-
Fair value		-		-		6,825,181		-		-
Collateralized mortgage obligations – GSE
Amortized cost		8,343,056		31,984,871		9,287,858		782,432		-
Fair value		8,359,576		32,014,146		9,301,559		782,465		-
Municipals – non-taxable
Amortized cost		-		4,130,690		6,867,768		4,528,706		-
Fair value		-		4,266,228		7,043,703		4,630,415		-
Municipals – taxable
Amortized cost		-		-		-		1,635,000		-
Fair value		-		-		-		1,647,508		-
Corporate bonds
Amortized cost		-		35,042,978		-		-		-
Fair value		-		35,828,703		-		-		-
Marketable equity securities
Amortized cost		-		-		-		-		545,963
Fair value		-		-		-		-		718,475
Total
Amortized cost	$	13,292,583	$	83,418,006	$	37,169,144	$	15,079,849	$	545,963
Fair value	$	13,364,987	$	83,418,006	$	37,169,144	$	15,353,967	$	718,475