INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2011

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

NOTE 3 – INVESTMENT SECURITIES

Investment securities classified as “Available for Sale” are carried at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity (net of estimated tax effects). Realized gains or losses on the sale of investments are based on the specific identification method. The amortized costs and fair values of investment securities available for sale are as follows:

	September 30, 2011
			Gross Unrealized
	Amortized Cost		Gains		Losses		Fair Value
Government-sponsored enterprises	$	3,000,000	$	5,277	$	—	$	3,005,277
Mortgage-backed securities		5,482,129		209,569		—		5,691,698
Municipals, taxable		372,977		25,465		—		398,442
Total investment securities	$	8,855,106	$	240,311	$	—	$	9,095,417

	December 31, 2010
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Government-sponsored enterprises	$	5,000,000	$	12,723	$	(37,007	)	$	4,975,716
Mortgage-backed securities		5,226,829		87,186		(24,588	)		5,289,427
Municipals, taxable		373,291		14,299		—			387,590
Total investment securities	$	10,600,120	$	114,208	$	(61,595	)	$	10,652,733

     At September 30, 2011, the investment portfolio included an unrealized gain of $240,311. At September 30, 2011, the investment portfolio included no securities in a loss position. At December 31, 2010, the investment portfolio included five securities with a fair value of $4,978,136 and an amortized cost of $5,039,731 that had been in an unrealized loss position for less than twelve months and no securities in a loss position for more than twelve months. The Company believes, based on industry analyst reports and credit ratings, that the deterioration in the fair value of these investment securities available for sale is attributed to changes in market interest rates and not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary. The Company has the ability and intent to hold these securities until such time as the value recovers or the securities mature.