Investment Securities

6 Months Ended

Jun. 30, 2011

Investment Securities [Abstract]

Investment Securities

(4) Investment Securities

     A summary of investment securities by major category, at fair value, consisted of the following at June 30, 2011 and December 31, 2010.

	June 30,		December 31,
	2011		2010
U.S. treasury	$	2,048,203	$	1,027,891
Government sponsored enterprises		67,212,769		53,341,551
Asset-backed securities		118,939,994		90,176,241
Obligations of states and political subdivisions		31,496,317		34,431,867
Total available for sale securities	$	219,697,283	$	178,977,550

     All of our Company’s investment securities are classified as available for sale, as discussed in more detail below. Asset backed securities include agency mortgage-backed securities, which are guaranteed by government sponsored entities and government agencies such as the FHLMC, FNMA and GNMA.

     Investment securities which are classified as restricted equity securities primarily consist of Federal Home Loan Bank Stock and our Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $5,064,850 and $6,141,950, as of June 30, 2011 and December 31, 2010, respectively.

     The amortized cost and fair value of debt securities classified as available-for-sale at June 30, 2011 and December 31, 2010 are as follows:

			Gross		Gross
	Amortized		unrealized		unrealized
	cost		gains		losses		Fair value
June 30, 2011
U.S Treasury	$	1,999,561	$	48,642	$	—	$	2,048,203
Government sponsored enterprises		66,792,397		524,211		103,839		67,212,769
Asset-backed securities		115,927,700		3,093,068		80,775		118,939,993
Obligations of states and political subdivisions		30,609,854		907,160		20,696		31,496,318
Total available for sale securities	$	215,329,512	$	4,573,081	$	205,310	$	219,697,283
December 31, 2010
U.S Treasury	$	999,823	$	28,068	$	—	$	1,027,891
Government sponsored enterprises		53,516,545		327,051		502,045		53,341,551
Asset-backed securities		88,634,760		1,905,377		363,896		90,176,241
Obligations of states and political subdivisions		34,146,782		555,240		270,155		34,431,867
Total available for sale securities	$	177,297,910	$	2,815,736	$	1,136,096	$	178,977,550

     The amortized cost and fair value of debt securities classified as available-for-sale at June 30, 2011, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.

	Amortized		Fair
	cost		value
Due in one year or less	$	3,794,942	$	3,832,846
Due after one year through five years		75,790,661		76,597,778
Due after five years through ten years		17,310,704		17,771,625
Due after ten years		2,505,505		2,555,041
		99,401,812		100,757,290
Asset-backed securities		115,927,700		118,939,993
Total	$	215,329,512	$	219,697,283

     Debt securities with carrying values aggregating approximately $170,372,000 and $148,099,000 at June 30, 2011 and December 31, 2010, respectively, were pledged to secure public fund deposits, federal funds purchased lines, securities sold under agreements to repurchase, borrowing capacity at the Federal Reserve, and for other purposes as required or permitted by law.

     Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2011 and December 31, 2010, were as follows:

	Less than 12 months					12 months or more						Total
										Number of
	Fair		Unrealized			Fair		Unrealized		Investment		Fair		Unrealized
At June 30, 2011	Value		Losses			Value		Losses		Positions		Value		Losses
Government sponsored enterprises	$	13,295,901	$	(103,839	)	$	—	$	—		12	$	13,295,901		(103,839	)
Asset-backed securities		10,382,348		(80,775	)		—		—		10		10,382,348	$	(80,775	)
Obligations of states and political subdivisions		1,122,000		(20,696	)		—		—		6		1,122,000		(20,696	)
	$	24,800,249	$	(205,310	)	$	—	$	—		28	$	24,800,249	$	(205,310	)

	Less than 12 months					12 months or more						Total
										Number of
	Fair		Unrealized			Fair		Unrealized		Investment		Fair		Unrealized
At December 31, 2010	Value		Losses			Value		Losses		Positions		Value		Losses
Government sponsored enterprises	$	20,504,526	$	(502,045	)	$	—	$	—		19	$	20,504,526		(502,045	)
Asset-backed securities		21,177,793		(363,896	)		—		—		20		21,177,793	$	(363,896	)
Obligations of states and political subdivisions		8,038,946		(270,155	)		—		—		29		8,038,946		(270,155	)
	$	49,721,265	$	(1,136,096	)	$	—	$	—		68	$	49,721,265	$	(1,136,096	)

     Our Company’s available for sale portfolio consisted of approximately 358 securities at June 30, 2011. None of these securities had been in the loss position for 12 months or longer. The $205,000 unrealized loss included in other comprehensive income at June 30, 2011 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality these investments were not considered other-than-temporarily impaired.

     Our Company’s available for sale portfolio consisted of approximately 333 securities at December 31, 2010. None of these securities had been in the loss position for 12 months or longer. The $1,136,000 unrealized loss included in other comprehensive income at December 31, 2010 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality these investments were not considered other-than-temporarily impaired.

     During the six months ended June 30, 2011 and 2010, there were no proceeds from sales of securities and no components of investment securities gains and losses which have been recognized in earnings.