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Investment Securities
 6 Months Ended
Jun. 30, 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 June 30, 2012 and December 31, 2011.

 

                 
    June 30,
2012		     December 31,
2011		  

U.S. treasury

   $ 2,040,781     $ 2,054,102  

Government sponsored enterprises

     71,048,653       70,313,978  

Asset-backed securities

     120,889,297       107,328,618  

Obligations of states and political subdivisions

     34,291,010       34,109,303  
   

 

 

    

 

 

  
     

Total available for sale securities

   $ 228,269,741     $ 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 $4,287,850 and $4,384,850, as of June 30, 2012 and December 31, 2011 respectively.

 

The amortized cost and fair value of debt securities classified as available-for-sale at June 30, 2012 and December 31, 2011 are as follows:

 

                                 
    Amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
losses		     Fair value  

June 30, 2012

                                
         

U.S. Treasury

   $ 1,999,725     $ 41,056     $ —       $ 2,040,781  

Government sponsored enterprises

     70,281,580       768,340       1,267       71,048,653  

Asset-backed securities

     117,286,545       3,652,551       49,799       120,889,297  

Obligations of states and political subdivisions

     33,030,619       1,279,639       19,248       34,291,010  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Total available for sale securities

   $ 222,598,469     $ 5,741,586     $ 70,314     $ 228,269,741  
   

 

 

    

 

 

    

 

 

    

 

 

  
         
    Amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
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 June 30, 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
cost		     Fair
value		  

Due in one year or less

   $ 1,938,269     $ 1,957,432  

Due after one year through five years

     80,295,955       81,442,563  

Due after five years through ten years

     22,326,908       23,169,861  

Due after ten years

     750,792       810,588  
   

 

 

    

 

 

  
      105,311,924       107,380,444  

Asset-backed securities

     117,286,545       120,889,297  
   

 

 

    

 

 

  

Total

   $ 222,598,469     $ 228,269,741  
   

 

 

    

 

 

  

Debt securities with carrying values aggregating approximately $166,160,000 and $172,447,000 at June 30, 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 June 30, 2012 and December 31, 2011, were as follows:

 

                                                         
    Less than 12 months     12 months or more           Total  

At June 30, 2012

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

Government sponsored enterprises

   $ 2,998,733     $ (1,267 )    $ —       $ —         3     $ 2,998,733       (1,267 ) 

Asset-backed securities

     14,487,776       (49,799 )      —         —         15       14,487,776     $ (49,799 ) 

Obligations of states and political subdivisions

     2,701,689       (19,029 )      150,290       (219 )      9       2,851,979       (19,248 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 20,188,198     $ (70,095 )    $ 150,290     $ (219 )      27     $ 20,338,488     $ (70,314 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                                         
    Less than 12 months     12 months or more           Total  

At December 31, 2011

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Number of
Investment
Positions		     Fair
Value		     Unrealized
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 393 securities at June 30, 2012. One of these securities with an unrealized loss of $219 had been in the loss position for 12 months or longer. The unrealized loss included in other comprehensive income at June 30, 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 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 June 30, 2012 and December 31, 2011, respectively.

During the three and six months ended June 30, 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.