INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2012

INVESTMENT SECURITIES

INVESTMENT SECURITIES

4. INVESTMENT SECURITIES

Investment securities consist of the following:

	December 31, 2012
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
AVAILABLE FOR SALE:
FHLB Agencies	$	12,401,830	$	68,247	$	22,474	$	12,447,603
Farmer Mac	6,997,553		2,550		3,793		6,996,310
FNMA Agencies	33,613,844		45,714		47,618		33,611,940
FHLMC Agencies	6,065,936		6,584		10,500		6,062,020
	$	59,079,163	$	123,095	$	84,385	$	59,117,873

	December 31, 2011
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
AVAILABLE FOR SALE:
FHLB Agencies	$	32,139,478	$	505,954	$	—	$	32,645,432
Farmer Mac	5,000,000		14,350		—		5,014,350
Corporate Bonds	5,000,000		—		53,160		4,946,840
Municipal Bonds	2,291,578		38,985		—		2,330,563
	$	44,431,056	$	559,289	$	53,160	$	44,937,185

Proceeds from the sales and calls of investment securities available-for-sale were as follows for the respective twelve month periods ending December 31, 2012 and 2011:

	December 31, 2012
					Gross Realized
	Carrying				Gain
	Value		Proceeds		on sales
Farmer Mac Agency called - AFS	$	5,000,000	$	5,000,000	$	—
FHLB Agencies- called - AFS	38,542,640		38,550,000		7,360
FHLB Agencies -sales -AFS	2,597,652		2,801,737		204,085
Corporate Bonds - sales - AFS	5,000,000		5,202,500		202,500
Municipal Bonds - sales - AFS	2,287,493		2,319,275		31,782
	$	48,427,785	$	48,873,512	$	445,727

	December 31, 2011
					Gross Realized
	Carrying				Gain
	Value		Proceeds		on sales
FHLB Agencies- called - AFS	$	31,966,865	$	32,000,000	$	33,135
FHLB Agencies -sales -AFS	9,995,134		10,123,438		128,304
	$	41,961,999	$	42,123,438	$	161,439

Approximately $43.5 million short term callable agency investments were called during the year ending December 31, 2012.  Also, during the year ending December 31, 2012, we sold approximately $2.6 million in short term callable agencies, $5.0 million in corporate bonds and $2.3 million in municipal bonds.

In evaluating whether a security was other than temporarily impaired, we considered the severity and length of time impaired for each security in a loss position. Other qualitative data was also considered including recent developments specific to the organization issuing the security and the overall environment of the financial markets.

Gross unrealized losses and fair value by length of time that the individual available-for-sale investment securities have been in a continuous unrealized loss position are as follows:

	December 31, 2012				December 31, 2011
			Continuous				Continuous
	Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses
Less than 12 months:
FHLB Agencies	$	24,043,600	$	84,384	$	—	$	—
Farmer Mac Callable	—		—		—		—
Corporte Bond	—		—		5,000,000		53,160
More than 12 months	—		—		—		—
Total	$	24,043,600	$	84,384	$	5,000,000	$	53,160

All of our temporarily impaired securities are defined as impaired due to declines in fair values resulting from increases in interest rates compared to the time they were purchased.  None of these securities have exhibited a decline in value due to changes in credit risk.  Furthermore, we have the ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in fair value and do not expect to realize losses on any of these holdings.  As such, management does not consider the impairments to be other than temporary.

Maturities for the investment securities are as follows:

	2012
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	—	$	—
Due after one year through five years	5,397,154		5,425,043
Due after five years through ten years	48,682,009		48,675,130
Due after ten years	5,000,000		5,017,700
Total debt securities	$	59,079,163	$	59,117,873