Securities

12 Months Ended

Dec. 31, 2011

Securities [Abstract]

Securities

Note 3. Securities

The amortized cost and estimated fair value of securities classified as available for sale and held to maturity at December 31, 2011 and December 31, 2010, are as follows:

		September 30,		September 30,		September 30,			September 30,
	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
Securities of U.S. Government agencies and corporations	$	19,495,082	$	237,896	$	—		$	19,732,978
Mortgage-backed and related securities (1)		8,863,892		405,581		(58	)		9,269,415
State and municipal securities		4,994,750		284,322		—			5,279,072
	$	33,353,724	$	927,799	$	(58	)	$	34,281,465

		September 30,		September 30,		September 30,			September 30,
	December 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
Securities of U.S. Government agencies and corporations	$	29,389,077	$	206,789	$	(257,160	)	$	29,338,706
Mortgage-backed and related securities (1)		6,269,479		402,284		(624	)		6,671,139
State and municipal securities		5,674,233		443		(146,935	)		5,527,741
	$	41,332,789	$	609,516	$	(404,719	)	$	41,537,586
Securities Held to Maturity:
Mortgage-backed and related securities (1)	$	25	$	1	$	—		$	26

(1) Collateralized by residential mortgages and guaranteed by U.S. Government sponsored entities.

The amortized cost and estimated fair value of securities at December 31, 2011, 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.

		September 30,		September 30,
	December 31, 2011
	Securities Available for Sale
	Amortized Cost		Fair Value
Due in one year or less	$	9,055,524	$	9,133,113
Due after one year through five years		9,900,638		10,069,736
Due five years to ten years		1,491,823		1,571,662
Due after ten years		4,041,847		4,237,539
Mortgage-backed securities		8,863,892		9,269,415
Total	$	33,353,724	$	34,281,465

The Company recognized $1,633 in realized gains for the year ended December 31, 2011, and no gains or losses for the year ended December 31, 2010.

The Company has pledged securities with carrying values of approximately $18,056,000 and $18,177,000 (which approximates market values) to secure deposits of public and private funds as of December 31, 2011 and December 31, 2010.

Securities with gross unrealized losses at December 31, 2011 and 2010, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows:

September 30,

September 30,

September 30,

September 30,

September 30,

September 30,

December 31, 2011

Less than 12 Months

12 Months or Greater

Total

Fair Value

Gross Unrealized Losses

Fair Value

Gross Unrealized Losses

Fair Value

Gross Unrealized Losses

(dollars in thousands)

Securities Available for Sale:

Mortgage-backed and related securities

$

6

$

—

$

19

$

—

$

25

$

—

		September 30,		September 30,			September 30,		September 30,			September 30,		September 30,
	December 31, 2010
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Securities Available for Sale:
Securities of U.S. Government agencies and corporations	$	12,803	$	(257	)	$	—	$	—		$	12,803	$	(257	)
Mortgage-backed and related securities		46		(1	)		53		—			99		(1	)
State and municipal securities		4,896		(102	)		332		(45	)		5,228		(147	)
	$	17,745	$	(360	)	$	385	$	(45	)	$	18,130	$	(405	)

Management performs periodic reviews for impairment in accordance with ASC Topic 320, Investment—Debt and Equity Securities.

At December 31, 2011, the two securities with unrealized losses had depreciated 0.23 percent from the Company’s amortized cost basis. At December 31, 2010, the 19 securities with unrealized losses had depreciated 2.19 percent from the Company’s amortized cost basis. Most of these securities are guaranteed by either U.S. government corporations or agencies or had investment grade ratings upon purchase. Further, the issuers of these securities have not established any cause for default. The unrealized losses associated with these investment securities are primarily driven by changes in interest rates and are not due to the credit quality of the securities. These securities will continue to be monitored as a part of the Company’s ongoing impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond insurers. Management evaluates the financial performance of each issuer on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments.

ASC Topic 320 requires an entity to assess whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. Management does not intend to sell these securities and it is not more likely than not that management will be required to sell the investments before the recovery of its amortized cost bases. In making this determination, management has considered its cash flow and liquidity requirements, capital requirements, economic factors, and contractual or regulatory obligations for indication that these securities will be required to be sold before a forecasted recovery occurs. Therefore, in management’s opinion, all securities that have been in a continuous unrealized loss position for the past 12 months or longer as of December 31, 2011, are not other-than-temporarily impaired, and therefore, no impairment charges as of December 31, 2011 are warranted.