Note 5. Held to Maturity Securities

3 Months Ended

Sep. 30, 2011

Held-to-maturity Securities [Table Text Block]

5.    Held to Maturity Securities

Amortized costs and fair values of held to maturity securities as of September 30, 2011 and December 31, 2010 are summarized as follows:

	September 30, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Obligations of:
States and political subdivisions	$	61,295,996	$	1,662,693	$	(18,961	)	$	62,939,728
U.S. government-sponsored entities		216,127,456		879,899		(12,000	)		216,995,355
Other		75,000		-		-			75,000
Totals	$	277,498,452	$	2,542,592	$	(30,961	)	$	280,010,083

	December 31, 2010
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Obligations of:
States and political subdivisions	$	51,315,102	$	843,803	$	(119,745	)	$	52,039,160
U.S. government-sponsored entities		176,388,730		704,904		(1,956,222	)		175,137,412
Other		100,000		-		-			100,000
Totals	$	227,803,832	$	1,548,707	$	(2,075,967	)	$	227,276,572

Obligations of U.S. government-sponsored entities consist of securities issued by the Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

The amortized cost and fair value of held-to-maturity securities at September 30, 2011 by contractual maturity are shown below.  Expected maturities differ from contractual maturities because borrowers or issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Due in one year or less	$	23,526,707	$	23,589,280
Due after one year less than 5 years		58,724,807		60,181,250
Due after 5 years less than 10 years		161,373,519		162,081,798
Due in more than 10 years		33,873,419		34,157,755
Totals	$	277,498,452	$	280,010,083

The following table summarizes the portion of the Bank’s held to maturity securities portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at September 30, 2011 and December 31, 2010.

	September 30, 2011
	Continuous unrealized losses existing for less than 12 months					Continuous unrealized losses existing for 12 months or more				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of:
States and political subdivisions	$	2,400,931	$	(18,961	)	$	-	$	-	$	2,400,931	$	(18,961	)
U.S. government-sponsored entities and corporations		19,988,000		(12,000	)		-		-		19,888,000		(12,000	)
Totals	$	22,388,931	$	(30,961	)	$	-	$	-	$	22,388,931	$	(30,961	)

	December 31, 2010
	Continuous unrealized losses existing for less than 12 months					Continuous unrealized losses existing for 12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Obligations of:
States and political subdivisions	$	13,884,930	$	(115,639	)	$	508,550	$	(4,106	)	$	14,393,480	$	(119,745	)
U.S. government-sponsored entities and corporations		119,139,262		(1,956,222	)		-		-			119,139,262		(1,956,222	)
Totals	$	133,024,192	$	(2,071,861	)	$	508,550	$	(4,106	)	$	133,532,742	$	(2,075,967	)

Management does not believe any individual unrealized loss as of September 30, 2011 or December 31, 2010 represents other than temporary impairment.  At September 30, 2011, the Bank held no investment securities that had unrealized losses existing for greater than 12 months and at December 31, 2010 the Bank held one state and political subdivision investment security that had unrealized losses existing for greater than 12 months.   Management believes the temporary impairment in fair value was caused by market fluctuations in interest rates and not by a deterioration in credit quality of the underlying portfolio of securities.  Since securities are held to maturity, management does not believe that the Bank will experience any losses on these investments.