Investments

9 Months Ended

Sep. 30, 2011

4. Investments:

The amortized cost and fair value of securities at September 30, 2011 and December 31, 2010, are as follows:


			Gross		Gross
			Unrealized		Unrealized
September 30, 2011	Amortized Cost		Gains		Losses			Fair Value

Available for sale securities:

Debt securities:

U.S. Treasuries	$	98,975,014	$	313,330	$	(16,973	)	$	99,271,371

U.S. Government agencies		158,317,839		2,298,114		(16,885	)		160,599,068

Mortgage-backed securities		4,810,771		248,224					5,058,995

States and political subdivisions		36,555,109		2,126,000					38,681,109


Total debt securities		298,658,733		4,985,668		(33,858	)		303,610,543

Equity securities		649,983							649,983


Total available for sale securities	$	299,308,716	$	4,985,668	$	(33,858	)	$	304,260,526


Held to maturity securities:

States and political subdivisions	$	1,917,039	$	86,653	$			$	2,003,692


Total held to maturity securities	$	1,917,039	$	86,653	$			$	2,003,692


			Gross		Gross
			Unrealized		Unrealized
December 31, 2010	Amortized Cost		Gains		Losses			Fair Value

Available for sale securities:

Debt securities:

U.S. Treasuries	$	26,957,061	$	51,729	$	(499,819	)	$	26,508,971

U.S. Government agencies		221,639,699		1,055,500		(4,099,256	)		218,595,943

States and political subdivisions		40,578,877		1,114,322		(369,633	)		41,323,566


Total debt securities		289,175,637		2,221,551		(4,968,708	)		286,428,480

Equity securities		649,983							649,983


Total available for sale securities	$	289,825,620	$	2,221,551	$	(4,968,708	)	$	287,078,463


Held to maturity securities:

States and political subdivisions	$	1,914,879	$	95,551	$			$	2,010,430


Total held to maturity securities	$	1,914,879	$	95,551	$			$	2,010,430

The amortized cost and fair value of debt securities at September 30, 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.


	Amortized Cost		Fair Value

Available for sale securities:
Due in one year or less	$	86,928,621	$	86,958,763
Due after one year through five years		75,380,778		76,255,402
Due after five years through ten years		85,655,717		88,317,101
Due after ten years		45,882,846		47,020,282
Mortgage-backed securities		4,810,771		5,058,995

Totals	$	298,658,733	$	303,610,543


Held to maturity securities:
Due after one year through five years	$	1,452,596	$	1,520,497
Due after five years through ten years		464,443		483,195

Totals	$	1,917,039	$	2,003,692

Securities with gross unrealized losses at September 30, 2011 and December 31, 2010, aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows:


	Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
September 30, 2011:	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

U.S. Treasuries	$	41,975,940	$	16,973	$		$		$	41,975,940	$	16,973

U.S. Government agencies		9,995,500		16,885						9,995,500		16,885


TOTAL	$	51,971,440	$	33,858	$		$		$	51,971,440	$	33,858


December 31, 2010:

U.S. Treasuries	$	15,457,980	$	499,819	$		$		$	15,457,980	$	499,819

U.S. Government agencies		138,075,993		4,099,256						138,075,993		4,099,256

States and political subdivisions		5,295,359		172,435		2,028,616		197,198		7,323,975		369,633


TOTAL	$	158,829,332	$	4,771,510	$	2,028,616	$	197,198	$	160,857,948	$	4,968,708

Management evaluates securities for other-than-temporary impairment on a monthly basis. In performing this evaluation, the length of time and the extent to which the fair value has been less than cost, the fact that the Company’s securities are primarily issued by U.S. Treasury and U.S. Government Agencies and the cause of the decline in value are considered. In addition, the Company does not intend to sell and it is not more likely than not that it will be required to sell these securities before maturity. While some available for sale securities have been sold for liquidity purposes or for gains, the Company has traditionally held its securities, including those classified as available for sale, until maturity. As a result of the evaluation of these securities, the Company has determined that the unrealized losses summarized in the tables above are not deemed to be other-than-temporary.