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Available-for-Sale Securities
 12 Months Ended
Dec. 31, 2011
Available-for-Sale Securities [Abstract]  
Available-for-Sale Securities

Note 3. Available-for-Sale Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of available-for-sale securities at December 31, 2011 and 2010 are as follows:

 

                                 

2011

   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair
Value		  

U. S. Government agency bonds

   $ 5,000,000     $ 37,085     $ —       $ 5,037,085  

U. S. Government agency mortgage-backed securities

     49,004,232       1,051,097       (5,900 )      50,049,429  

Corporate bonds

     12,249,064       25,338       (890,944 )      11,383,458  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 66,253,296     $ 1,113,520     $ (896,844 )    $ 66,469,972  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

                                 

2010

   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair
Value		  

U. S. Government agency mortgage-backed securities

   $ 36,572,430     $ 900,286     $ (838 )    $ 37,471,878  
   

 

 

    

 

 

    

 

 

    

 

 

  
      36,572,430       900,286       (838 )      37,471,878  

Auction rate preferred equity securities

     1,899,720       1,193,102       —         3,092,822  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 38,472,150     $ 2,093,388     $ (838 )    $ 40,564,700  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table presents the Company’s available for sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position, at December 31, 2011 and 2010:

 

                                                 
    Less Than 12 Months     12 Months or More     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  

2011

   Value     Loss     Value     Loss     Value     Loss  

U. S. Government agency mortgage-backed securities

   $ 4,941,662     $ (5,492 )    $ 68,309     $ (408 )    $ 5,009,971     $ (5,900 ) 

Corporate bonds

     8,358,120       (890,944 )      —         —         8,358,120       (890,944 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals

   $ 13,299,782     $ (896,436 )    $ 68,309     $ (408 )    $ 13,368,091     $ (896,844 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             

2010

                                    

U. S. Government agency mortgage-backed securities

   $ 86,375     $ (838 )    $ —       $ —       $ 86,375     $ (838 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals

   $ 86,375     $ (838 )    $ —       $ —       $ 86,375     $ (838 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

At December 31, 2011, nine securities had unrealized losses with aggregate depreciation of 6.3% from the amortized cost, compared to two securities at December 31, 2010 with aggregate depreciation of 1.0% from the amortized cost.

Management believes that none of the unrealized losses on available-for-sale securities noted above are other than temporary due to the fact that they relate to market interest rate changes on corporate debt and mortgage-backed securities issued by U.S. Government agencies. Management considers the issuers of the securities to be financially sound, the corporate bonds are investment grade and the Company expects to receive all contractual principal and interest related to these investments. Because the Company does not intend to sell the investments, and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2011.

At December 31, 2011 and 2010, available-for-sale securities with a carrying value of $8,041,000 and $2,811,000, respectively, were pledged to secure obligations under municipal deposits. At December 31, 2011 and 2010, available-for-sale securities with a carrying value of $10,309,000 and $9,486,000, respectively, were pledged to secure securities sold under agreements to repurchase.

The amortized cost and fair value of available-for-sale debt securities at December 31, 2011 by contractual maturity are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary.

 

                 
    Amortized     Fair  
    Cost     Value  

Maturity:

                

Over 10 years

   $ —       $ —    

Corporate bonds < 5 years

     3,249,064       3,148,563  

Corporate bonds 5 to 10 years

     9,000,000       8,234,895  

U.S. Government bonds 5 to 10 years

     5,000,000       5,037,085  

Mortgage-backed securities

     49,004,232       50,049,429  
   

 

 

    

 

 

  

Total

   $ 66,253,296     $ 66,469,972  
   

 

 

    

 

 

  

During 2011 there were ten sales of available-for-sale securities, which resulted in the Company recognizing gross proceeds from the sales of $26,349,070 and gross gains of $1,109,305. During 2010 there were no sales of available-for-sale securities. During 2009, there were six sales of available-for-sale securities, which resulted in the Company recognizing proceeds from the sales of $19,852,541 and gains of $434,334.