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Investment Securities
9 Months Ended
Sep. 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 September 30, 2011 and December 31, 2010.

 

                 
    September 30,
2011		     December 31,
2010		  

U.S. treasury

   $ 2,057,657     $ 1,027,891  

Government sponsored enterprises

     56,173,402       53,341,551  

Asset-backed securities

     115,235,218       90,176,241  

Obligations of states and political subdivisions

     31,980,177       34,431,867  
   

 

 

    

 

 

  

Total available for sale securities

   $ 205,446,454     $ 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 $4,388,950 and $6,141,950, as of September 30, 2011 and December 31, 2010, respectively.

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

 

                                 
    Amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
losses		     Fair value  

September 30, 2011

                                

U.S Treasury

   $ 1,999,602     $ 58,055     $ —       $ 2,057,657  

Government sponsored enterprises

     55,467,203       714,482       8,283       56,173,402  

Asset-backed securities

     111,149,446       4,097,313       11,541       115,235,218  

Obligations of states and political subdivisions

     30,819,243       1,165,587       4,653       31,980,177  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 199,435,494     $ 6,035,437     $ 24,477     $ 205,446,454  
   

 

 

    

 

 

    

 

 

    

 

 

  

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 September 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
cost		     Fair
value		  

Due in one year or less

   $ 2,573,320     $ 2,596,977  

Due after one year through five years

     65,424,714       66,494,907  

Due after five years through ten years

     17,783,892       18,495,325  

Due after ten years

     2,504,122       2,624,027  
   

 

 

    

 

 

  
      88,286,048       90,211,236  

Asset-backed securities

     111,149,446       115,235,218  
   

 

 

    

 

 

  

Total

   $ 199,435,494     $ 205,446,454  
   

 

 

    

 

 

  

Debt securities with carrying values aggregating approximately $160,007,000 and $148,099,000 at September 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 September 30, 2011 and December 31, 2010, were as follows:

 

                                                         
    Less than 12 months     12 months or more     Total  

At September 30, 2011

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Number of
Investment
Positions		     Fair
Value		     Unrealized
Losses		  

Government sponsored enterprises

   $ 1,801,717     $ (8,283 )    $ —       $ —         2     $ 1,801,717       (8,283 ) 

Asset-backed securities

     1,010,039       (11,541 )      —         —         1       1,010,039     $ (11,541 ) 

Obligations of states and political subdivisions

     998,512       (4,653 )      —         —         3       998,512       (4,653 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 3,810,268     $ (24,477 )    $ —       $ —         6     $ 3,810,268     $ (24,477 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
       
    Less than 12 months     12 months or more     Total  

At December 31, 2010

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Number of
Investment
Positions		     Fair
Value		     Unrealized
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 349 securities at September 30, 2011. None of these securities had been in the loss position for 12 months or longer. The $24,000 unrealized loss included in other comprehensive income at September 30, 2011 was caused by interest rate fluctuations. At September 30, 2011, our Company did not have the intent to sell any of its securities in an unrealized loss position and believed that it is more likely than not that our Company will not have to sell any such securities before a full recovery of the amortized cost. 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 nine months ended September 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.