Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Securities [Abstract]

Investment Securities

Note 4.  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
March 31, 2012
U.S. Government sponsored enterprise (GSE) debt securities	$	65,701,558	$	258,785	$	59,195	$	65,901,148
U.S. Government securities		7,035,625		21,730		6,625		7,050,730
U.S. GSE preferred stock		42,360		41,700		0		84,060
	$	72,779,543	$	322,215	$	65,820	$	73,035,938
December 31, 2011
U.S. GSE debt securities	$	60,846,954	$	215,595	$	99,310	$	60,963,239
U.S. Government securities		5,006,979		37,424		848		5,043,555
U.S. GSE preferred stock		42,360		49,763		0		92,123
	$	65,896,293	$	302,782	$	100,158	$	66,098,917
March 31, 2011
U.S. GSE debt securities	$	23,277,044	$	57,776	$	71,815	$	23,263,005
U.S. Government securities		5,027,492		28,152		0		5,055,644
U.S. GSE preferred stock		42,360		99,679		0		142,039
	$	28,346,896	$	185,607	$	71,815	$	28,460,688

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities HTM	Cost		Gains		Losses		Value*
March 31, 2012
States and political subdivisions	$	33,562,606	$	605,394	$	0	$	34,168,000
December 31, 2011
States and political subdivisions	$	29,702,159	$	586,841	$	0	$	30,289,000
March 31, 2011
States and political subdivisions	$	37,948,665	$	493,335	$	0	$	38,442,000

The scheduled maturities of debt securities AFS were as follows:

	Amortized		Fair
	Cost		Value
March 31, 2012
Due in one year or less	$	7,020,449	$	7,050,344
Due from one to five years		64,716,734		64,896,400
Due from five to ten years		1,000,000		1,005,134
	$	72,737,183	$	72,951,878
December 31, 2011
Due in one year or less	$	5,018,549	$	5,035,711
Due from one to five years		58,835,384		58,970,925
Due from five to ten years		2,000,000		2,000,158
	$	65,853,933	$	66,006,794
March 31, 2011
Due in one year or less	$	12,137,321	$	12,200,055
Due from one to five years		16,167,215		16,118,594
	$	28,304,536	$	28,318,649

The scheduled maturities of debt securities HTM were as follows:

	Amortized		Fair
	Cost		Value*
March 31, 2012
Due in one year or less	$	24,784,042	$	24,784,000
Due from one to five years		4,236,531		4,388,000
Due from five to ten years		804,472		956,000
Due after ten years		3,737,561		4,040,000
	$	33,562,606	$	34,168,000
December 31, 2011
Due in one year or less	$	20,589,247	$	20,589,000
Due from one to five years		4,534,944		4,682,000
Due from five to ten years		822,735		969,000
Due after ten years		3,755,233		4,049,000
	$	29,702,159	$	30,289,000
March 31, 2011
Due in one year or less	$	28,814,724	$	28,815,000
Due from one to five years		4,439,601		4,563,000
Due from five to ten years		782,407		906,000
Due after ten years		3,911,933		4,158,000
	$	37,948,665	$	38,442,000

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

Debt securities with unrealized losses are presented in the table below.  There were no debt securities in an unrealized loss position of 12 months or more as of the dates presented.

	Less than 12 months
	Fair		Unrealized
	Value		Loss
March 31, 2012
U.S. GSE debt securities	$	23,532,511	$	59,195
U.S. Government securities		3,008,279		6,625
	$	26,540,790	$	65,820
December 31, 2011
U.S. GSE debt securities	$	29,940,644	$	99,310
U.S. Government securities		999,766		848
	$	30,940,410	$	100,158
March 31, 2011
U.S. GSE debt securities	$	10,089,293	$	71,815

Debt securities represented consisted of 17 U.S. GSE debt securities and three U.S. Government securities at March 31, 2012 and 21 U.S. GSE debt securities and one U.S. Government security at December 31, 2011, and seven U.S. GSE debt securities as of March 31, 2011 in an unrealized loss position.  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 March 31, 2012 and 2011 and December 31, 2011, the Company’s AFS portfolio included two classes of Fannie Mae preferred stock with an aggregate cost basis of $42,360, which reflects an other-than-temporary impairment write down in the fourth quarter of 2010 of $25,804 and two other-than-temporary impairment write downs 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 bond 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.