Investment Securities

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Investment Securities

The amortized cost and estimated fair values of securities available for sale were:

			Gross Unrealized
	Amortized Cost		Gains		Losses		Estimated Fair Value
June 30, 2011
Mortgage-backed securities	$	23,522,356	$	57,121	$	60,290	$	23,519,187
Total	$	23,522,356	$	57,121	$	60,290	$	23,519,187
December 31, 2010
Mortgage-backed securities	$	17,857,784	$	40,753	$	141,921	$	17,756,616
Total	$	17,857,784	$	40,753	$	141,921	$	17,756,616

The following is a summary of maturities of securities available for sale as of June 30, 2011.  The amortized cost and estimated fair values are based on the contractual maturity dates.  Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty.

	Securities Available-for-Sale
	Amortized Cost		Estimated Fair Value
Due in one year or less	$	857,300	$	859,789
Due after one year but within five years		4,156,281		4,171,909
Due after five years but within ten years		8,525,034		8,505,766
Due after ten years		9,983,741		9,981,723
	$	23,522,356	$	23,519,187

The following table shows gross unrealized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2011 and December 31, 2010.

	Less than twelve months				Twelve months or more				Total
	Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses
June 30, 2011
Mortgage-backed securities	$	8,997,424	$	59,994	$	140,726	$	296	$	9,138,149	$	60,290
Total	$	8,997,424	$	59,994	$	140,726	$	296	$	9,138,149	$	60,290

	Less than twelve months				Twelve months or more				Total
	Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses
December 31, 2010
Mortgage-backed securities	$	12,247,383	$	141,921	$	-	$	-	$	12,247,383	$	141,921
Total	$	12,247,383	$	141,921	$	-	$	-	$	12,247,383	$	141,921

Proceeds from available for sale securities totaled $5,013,753 through the six months ended June 30, 2011, resulting in gross gains of $29,117.  Proceeds from available for sale securities totaled $3,371,637 during the six months ended June 30, 2010 resulting in gross gains or $275,212.

Securities classified as available-for-sale are recorded at fair market value.  Securities in a continuous loss position for twelve months or more at June 30, 2011, consisted of one security.  Of the securities in an unrealized loss position as of June 30, 2011, the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost.  The Company believes, based on industry analyst reports and credit ratings, that the deterioration in value is attributable to changes in market interest rates and is not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary.