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Investment Securities
 3 Months Ended
Mar. 31, 2012
Investment Securities [Abstract]  
Investment Securities

(4)   Investment Securities

A summary of investment securities by major category, at fair value, consisted of the following at March 31, 2012 and December 31, 2011.

 

                 
    March 31,     December 31,  
    2012     2011  

U.S. treasury

   $ 2,045,977     $ 2,054,102  

Government sponsored enterprises

     80,322,445       70,313,978  

Asset-backed securities

     112,776,110       107,328,618  

Obligations of states and political subdivisions

     34,009,731       34,109,303  
   

 

 

    

 

 

  

Total available for sale securities

   $ 229,154,263     $ 213,806,001  
   

 

 

    

 

 

  

 

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 agencies such as the FHLMC, FNMA and GNMA. Our Company does not invest in subprime originated mortgage-backed or collateralized debt obligation instruments.

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 $4,331,950 and $4,384,850, as of March 31, 2012 and December 31, 2011 respectively.

 

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2012 and December 31, 2011 are as follows:

 

                                 
          Gross     Gross        
    Amortized     unrealized     unrealized        
    cost     gains     losses     Fair value  

March 31, 2012

                                
         

U.S. Treasury

   $ 1,999,684     $ 46,293     $ —       $ 2,045,977  

Government sponsored enterprises

     79,739,871       602,170       19,596       80,322,445  

Asset-backed securities

     109,167,396       3,651,554       42,840       112,776,110  

Obligations of states and political subdivisions

     32,794,163       1,253,374       37,806       34,009,731  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 223,701,114     $ 5,553,391     $ 100,242     $ 229,154,263  
   

 

 

    

 

 

    

 

 

    

 

 

  
         
          Gross     Gross        
    Amortized     unrealized     unrealized        
    cost     gains     losses     Fair value  

December 31, 2011

                                
         

U.S. Treasury

   $ 1,999,643     $ 54,459     $ —       $ 2,054,102  

Government sponsored enterprises

     69,703,105       628,888       18,015       70,313,978  

Asset-backed securities

     103,805,717       3,546,712       23,811       107,328,618  

Obligations of states and political subdivisions

     32,716,023       1,393,874       594       34,109,303  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 208,224,488     $ 5,623,933     $ 42,420     $ 213,806,001  
   

 

 

    

 

 

    

 

 

    

 

 

  

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2012, 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

   $ 2,489,790     $ 2,519,042  

Due after one year through five years

     90,867,607       91,852,808  

Due after five years through ten years

     20,085,279       20,861,897  

Due after ten years

     1,091,042       1,144,406  
   

 

 

    

 

 

  
      114,533,718       116,378,153  

Asset-backed securities

     109,167,396       112,776,110  
   

 

 

    

 

 

  

Total

   $ 223,701,114     $ 229,154,263  
   

 

 

    

 

 

  

Debt securities with carrying values aggregating approximately $177,966,000 and $172,447,000 at March 31, 2012 and December 31, 2011, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, 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 March 31, 2012 and December 31, 2011, were as follows:

 

                                                         
    Less than 12 months     12 months or more     Number of     Total  
    Fair     Unrealized     Fair     Unrealized     Investment     Fair     Unrealized  

At March 31, 2012

   Value     Losses     Value     Losses     Positions     Value     Losses  

Government sponsored enterprises

   $ 13,676,369     $ (19,596 )    $ —       $ —         12     $ 13,676,369       (19,596 ) 

Asset-backed securities

     9,313,686       (42,840 )      —         —         10       9,313,686     $ (42,840 ) 

Obligations of states and political subdivisions

     2,736,659       (37,534 )      150,269       (272 )      9       2,886,928       (37,806 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 25,726,714     $ (99,970 )    $ 150,269     $ (272 )      31     $ 25,876,983     $ (100,242 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
    Less than 12 months     12 months or more     Number of     Total  
    Fair     Unrealized     Fair     Unrealized     Investment     Fair     Unrealized  

At December 31, 2011

   Value     Losses     Value     Losses     Positions     Value     Losses  

Government sponsored enterprises

   $ 13,250,239     $ (18,015 )    $ —       $ —         13     $ 13,250,239       (18,015 ) 

Asset-backed securities

     4,591,075       (23,811 )      —         —         5       4,591,075     $ (23,811 ) 

Obligations of states and political subdivisions

     229,089       (300 )      150,279       (294 )      2       379,368       (594 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 18,070,403     $ (42,126 )    $ 150,279     $ (294 )      20     $ 18,220,682     $ (42,420 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Our Company’s available for sale portfolio consisted of approximately 385 securities at March 31, 2012. One of these securities with an unrealized loss of $272 had been in the loss position for 12 months or longer. The $100,000 unrealized loss included in other comprehensive income at March 31, 2012 was caused by interest rate fluctuations. Our Company’s available for sale portfolio consisted of approximately 365 securities at December 31, 2011. One of these securities with an unrealized loss of $294 had been in the loss position for 12 months or longer. The $42,000 unrealized loss included in other comprehensive income at December 31, 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 at March 31, 2012 and December 31, 2011, respectively.

During the three months ended March 31, 2012 and 2011, there were no proceeds from sales of securities and no components of investment securities gains and losses which have been recognized in earnings.