XML 27 R9.htm IDEA: XBRL DOCUMENT

Investment Securities

3 Months Ended

Mar. 31, 2013

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, 2013 and December 31, 2012 are as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
March 31, 2013:
U. S. Government agency bonds	$	7,500,000	$	17,280	$	(1,512	)	$	7,515,768
U. S. Government agency mortgage-backed securities		25,167,949		—		(175,006	)		24,992,943
Corporate bonds		9,000,000		—		(403,581	)		8,596,419

	$	41,667,949	$	17,280	$	(580,099	)	$	41,105,130

December 31, 2012:
U. S. Government agency bonds	$	7,500,000	$	26,170	$	—		$	7,526,170
U. S. Government agency mortgage-backed securities		25,837,100		—		(130,209	)		25,706,891
Corporate bonds		9,000,000		—		(513,741	)		8,486,259

	$	42,337,100	$	26,170	$	(643,950	)	$	41,719,320

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, 2013 and December 31, 2012:


	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss			Value		Loss
March 31, 2013:
U. S. Government agency bonds	$	2,498,488	$	(1,512	)	$	—	$	—		$	2,498,488	$	(1,512	)
U. S. Government agency mortgage—backed securities		24,984,401		(175,006	)		—		—			24,984,401		(175,006	)
Corporate bonds		2,803,191		(196,809	)		5,793,228		(206,772	)		8,596,419		(403,581	)

Totals	$	30,286,080	$	(373,327	)	$	5,793,228	$	(206,772	)	$	36,079,308	$	(580,099	)

December 31, 2012:
U. S. Government agency mortgage—backed securities	$	25,670,832	$	(130,209	)	$	—	$	—		$	25,670,832	$	(130,209	)
Corporate bonds		2,842,368		(157,632	)		5,643,891		(356,109	)		8,486,259		(513,741	)

Totals	$	28,513,200	$	(287,841	)	$	5,643,891	$	(356,109	)	$	34,157,091	$	(643,950	)

At March 31, 2013, ten securities had unrealized holding losses with aggregate depreciation of 1.6% from the amortized cost. At December 31, 2012, nine securities had unrealized losses with aggregate depreciation of 1.9% 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, when the loss position is due to a deterioration in credit quality, 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 bonds 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. 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 at maturity. The Company therefore does not consider those investments to be other-than-temporarily impaired at March 31, 2013.

The amortized cost and fair value of available-for-sale debt securities at March 31, 2013 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 summary:


	Amortized Cost		Fair Value
Maturity:
Corporate bonds 5 to 10 years	$	9,000,000	$	8,596,419
U.S. Government agency bonds 5 to 10 years		7,500,000		7,515,768
U.S. Government agency mortgage-backed securities		25,167,949		24,992,943

Total	$	41,667,949	$	41,105,130