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

Note 2: Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of available-for-sale securities at March 31, 2012 and December 31, 2011 are as follows:

 

                                 
          Gross     Gross        
    Amortized     Unrealized     Unrealized     Fair  
    Cost     Gains     Losses     Value  

March 31, 2012:

                                
         

U. S. Government agency bonds

   $ 5,000,000     $ 25,780     $ —       $ 5,025,780  

U. S. Government agency mortgage-backed securities

     41,048,592       966,105       (2,976 )      42,011,721  

Corporate bonds

     12,225,941       38,098       (709,686 )      11,554,353  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 58,274,533     $ 1,029,983     $ (712,662 )    $ 58,591,854  
   

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2011:

                                
         

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  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table presents the gross unrealized loss and fair value of Bancorp’s available-for-sale securities, aggregated by the length of time the individual securities have been in a continuous loss position, at March 31, 2012 and December 31, 2011:

 

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

March 31, 2012:

                                                
             

U. S. Government mortgage-backed securities

   $ 53,609     $ (152 )    $ 247,777     $ (2,824 )    $ 301,386     $ (2,976 ) 

Corporate bonds

     5,290,314       (709,686 )      —         —         5,290,314       (709,686 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Totals

   $ 5,343,923     $ (709,838 )    $ 247,777     $ (2,824 )    $ 5,591,700     $ (712,662 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2011:

                                                
             

U. S. Government 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 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

At March 31, 2012, six securities had unrealized holding losses with aggregate depreciation of 11.3% from the amortized cost. At December 31, 2011, nine securities had unrealized losses with aggregate depreciation of 6.3% from the amortized cost.

Bancorp performs a quarterly analysis of those securities that are in an unrealized loss position to determine if those losses qualify as other-than-temporary impairments. This analysis considers the following criteria in its determination: the ability of the issuer to meet its obligations, an impairment due to a deterioration in credit, management’s plans and ability to maintain its investment in the security, the length of time and the amount by which the security has been in a loss position, the interest rate environment, the general economic environment and prospects or projections for improvement or deterioration.

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 March 31, 2012.

The amortized cost and fair value of available-for-sale debt securities at March 31, 2012 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 prepaid 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 Cost     Fair Value  

Maturity:

                

Over 10 years

   $ —       $ —    

Corporate bonds < 5 years

     3,225,941       3,255,009  

Corporate bonds 5 to 10 years

     9,000,000       8,299,344  

U.S. Government bonds 5 to 10 years

     5,000,000       5,025,780  

Mortgage-backed securities

     41,048,592       42,011,721  
   

 

 

    

 

 

  

Total

   $ 58,274,533     $ 58,591,854