Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Securities

Note 5 – Investment Securities

The amortized cost and fair value of investment securities at March 31, 2012 are as follows:

				Gross		Gross
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
Securities available for sale:
Municipal bonds	$	743,433	$	46,755	$	-	$	790,188
Mortgage-backed securities		1,820,160		82,685		-		1,902,845
	$	2,563,593	$	129,440	$	-	$	2,693,033
Securities held to maturity:
Municipal bonds	$	431,108	$	2,231	$	-	$	433,339
Federal agency		2,500,000		4,283		-		2,504,283
Mortgage-backed securities		6,039,099		197,436		-		6,236,535
Corporate		30,383		524		-		30,907
	$	9,000,590	$	204,474	$	-	$	9,205,064

The amortized cost and fair value of investment securities as of March 31, 2012 by contractual maturity are shown below:

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within 1 year	$	-	$	-	$	30,383	$	30,907
After 1 year through 5 years		-		-		-		-
After 5 years through 10 years		-		-		2,931,108		2,937,622
After 10 years through 17 years		743,433		790,188		-		-
Mortgage-backed securities		1,820,160		1,902,845		6,039,099		6,236,535
	$	2,563,593	$	2,693,033	$	9,000,590	$	9,205,064

There are no securities with gross unrealized losses at March 31, 2012.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

In the recent past, unrealized losses were related to mortgage-backed securities issued by federally sponsored agencies, which are fully secured by conforming residential loans. Since the Company has the ability to hold these securities until estimated maturity, no declines are deemed to be other than temporary.