Investment Securities

9 Months Ended

Sep. 30, 2011

Investment Securities [Abstract]

Investment Securities

Note 5.  Investment Securities

Securities available-for-sale (AFS) and held-to-maturity (HTM) consisted of the following:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities AFS	Cost		Gains		Losses		Value
September 30, 2011
U.S. Government sponsored enterprise (GSE) debt securities	$	26,224,330	$	187,825	$	52,705	$	26,359,450
U.S. Government securities		5,010,100		35,350		0		5,045,450
U.S. GSE preferred stock		42,360		86,015		0		128,375
	$	31,276,790	$	309,190	$	52,705	$	31,533,275
December 31, 2010
U.S. GSE debt securities	$	16,234,676	$	88,091	$	9,377	$	16,313,390
U.S. Government securities		5,037,252		37,666		232		5,074,686
U.S. GSE preferred stock		42,360		0		0		42,360
	$	21,314,288	$	125,757	$	9,609	$	21,430,436
September 30, 2010
U.S. GSE debt securities	$	17,270,721	$	127,199	$	0	$	17,397,920
U.S. Government securities		5,038,309		41,491		0		5,079,800
U.S. GSE preferred stock		68,164		0		31,866		36,298
	$	22,377,194	$	168,690	$	31,866	$	22,514,018

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities HTM	Cost		Gains		Losses		Value*
September 30, 2011
States and political subdivisions	$	36,898,097	$	498,903	$	0	$	37,397,000
December 31, 2010
States and political subdivisions	$	37,440,714	$	716,286	$	0	$	38,157,000
September 30, 2010
States and political subdivisions	$	53,146,028	$	587,972	$	0	$	53,734,000

The scheduled maturities of debt securities available-for-sale were as follows:

	Amortized		Fair
	Cost		Value
September 30, 2011
Due in one year or less	$	8,031,513	$	8,060,834
Due from one to five years		22,202,917		22,352,436
Due from five to ten years		1,000,000		991,630
	$	31,234,430	$	31,404,900
December 31, 2010
Due in one year or less	$	14,172,100	$	14,248,432
Due from one to five years		7,099,828		7,139,644
	$	21,271,928	$	21,388,076
September 30, 2010
Due in one year or less	$	13,141,244	$	13,222,390
Due from one to five years		9,167,786		9,255,330
	$	22,309,030	$	22,477,720

The scheduled maturities of debt securities held-to-maturity were as follows:

	Amortized		Fair
	Cost		Value*
September 30, 2011
Due in one year or less	$	27,402,959	$	27,403,000
Due from one to five years		4,902,641		5,027,000
Due from five to ten years		749,063		874,000
Due after ten years		3,843,434		4,093,000
	$	36,898,097	$	37,397,000
December 31, 2010
Due in one year or less	$	28,468,783	$	28,469,000
Due from one to five years		4,253,527		4,433,000
Due from five to ten years		789,962		969,000
Due after ten years		3,928,442		4,286,000
	$	37,440,714	$	38,157,000
September 30, 2010
Due in one year or less	$	44,048,956	$	44,049,000
Due from one to five years		3,965,459		4,112,000
Due from five to ten years		1,308,094		1,455,000
Due after ten years		3,823,519		4,118,000
	$	53,146,028	$	53,734,000

*Method used to determine fair value on HTM securities rounds values to nearest thousand.

     Debt securities with unrealized losses at September 30, 2011 and December 31, 2010 are presented in the table below, all of which were in an unrealized loss position less than 12 months as of such date.  As of September 30, 2010, the Company had no debt securities with an unrealized loss.

	Less than 12 months
	Fair		Unrealized
	Value		Loss
September 30, 2011
U.S. GSE debt securities	$	7,046,617	$	52,705
December 31, 2010
U.S. GSE debt securities	$	2,037,894	$	9,377
U.S. Government securities		1,007,225		232
	$	3,045,119	$	9,609

     Debt securities represented consisted of four U.S. GSE debt securities at September 30, 2011 and two U.S. GSE debt securities and one U.S. Government security at December 31, 2010.  These unrealized losses were principally attributable to changes in prevailing interest rates for similar types of securities, and not deterioration in the creditworthiness of the issuer.

     At September 30, 2011 and 2010 and December 31, 2010, the Company’s available-for-sale portfolio included two classes of Fannie Mae preferred stock with an aggregate cost basis of $42,360 as of September 30, 2011 and December 31, 2010, and an aggregate cost basis of $68,164 as of September 30, 2010.  The cost basis of those shares reflects an other-than-temporary impairment write down of $25,804 recorded by the Company in the fourth quarter of 2010 and two other-than-temporary impairment write downs recorded in prior periods.

     Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions, or adverse developments relating to the issuer, warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than the carrying value, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value.  In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by rating agencies or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer's financial condition.