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Securities
 12 Months Ended
Dec. 31, 2011
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities [Text Block]

Note 3:      Securities

 

The amortized cost and approximate fair values of securities were as follows:

 

          Gross     Gross        
    Amortized     Unrealized     Unrealized     Approximate  
    Cost     Gains     Losses     Fair Value  
Available-for-Sale Securities:                                
December 31, 2011:                                
U.S. Treasury and Government agencies   $ 25,237,896     $ 186,420     $ (400 )   $ 25,423,916  
Mortgage-backed securities     67,055,401       760,482       (117,888 )     67,697,995  
State and political subdivisions     15,586,215       1,210,221       (3,791 )     16,792,645  
Money Market Mutual Fund     2,040,117       -       -       2,040,117  
Equity securities     23,000       -       -       23,000  
                                 
    $ 109,942,629     $ 2,157,123     $ (122,079 )   $ 111,977,673  
                                 
December 31, 2010:                                
U.S. Treasury and Government agencies   $ 43,572,741     $ 298,653     $ (220,262 )   $ 43,651,132  
Mortgage-backed securities     53,652,288       1,395,036       (419,232 )     54,628,092  
State and political subdivisions     31,552,709       895,794       (150,724 )     32,297,779  
Money Market Mutual Fund     2,162,055       -       -       2,162,055  
Equity securities     23,000       -       -       23,000  
                                 
    $ 130,962,793     $ 2,589,483     $ (790,218 )   $ 132,762,058  

  

The amortized cost and fair value of securities available for sale at December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

    Available for Sale  
    Amortized     Fair  
    Cost     Value  
             
Within one year   $ 384,320     $ 383,890  
Due after one year through five years     4,467,285       4,538,415  
Due after five years through ten years     10,452,781       10,695,235  
Due after ten years     25,519,725       26,599,021  
      40,824,111       42,216,561  
                 
Mortgage-backed securities, money market mutual fund & equity securities     69,118,518       69,761,112  
                 
Totals   $ 109,942,629     $ 111,977,673  

  

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $52,819,227 at December 31, 2011, and $30,412,621 at December 31, 2010. The securities delivered for repurchase agreements were $21,024,591 at December 31, 2011 and $58,621,708 at December 31, 2010.

 

Gross gains of $1,888,618, $451,474, and $961,013, and gross losses of $17,231, $590, and $693 resulting from sales of available-for-sale securities were realized for 2011, 2010, and 2009, respectively. The tax expense for net security gains for 2011, 2010, and 2009 was $636,272, $153,301, and $326,509, respectively.

 

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2011 and 2010, were $15,165,941 and $40,399,444 which is approximately 14% and 30% of the Company's available-for-sale investment portfolio, respectively. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. In 2002, the Company took an after-tax loss of $1.1 million on an investment in WorldCom bonds. In 2006, $889,454 of this loss was recovered, which resulted in a $587,000 after-tax gain. In 2008, an additional $197,487 of this loss was recovered, which resulted in a $130,000 after-tax gain. In 2010, an additional $73,774 of this loss was recovered, which resulted in a $49,000 after-tax gain.

 

The following tables present securities with unrealized losses at December 31, 2011 and December 31, 2010 as follows:

 

    Less than 12 Months     12 Months or Longer     Total  
December 31, 2011   Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		  
Available-for-Sale Securities:                                                
U.S. Treasury and Government agencies   $ 2,499,600     $ (400 )   $ -     $ -     $ 2,499,600     $ (400 )
Mortgage-backed securities     11,321,273       (54,484 )     843,858       (63,404 )     12,165,131       (117,888 )
State and political subdivisions     501,210       (3,791 )             -       501,210       (3,791 )
                                                 
    $ 14,322,083     $ (58,675 )   $ 843,858     $ (63,404 )   $ 15,165,941     $ (122,079 )

 

    Less than 12 Months     12 Months or Longer     Total  
December 31, 2010   Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		     Fair Value     Unrealized
Losses		  
Available-for-Sale Securities:                                                
U.S. Treasury and Government agencies   $ -     $ -     $ 11,483,130     $ (220,262 )   $ 11,483,130     $ (220,262 )
Mortgage-backed securities     1,164,431       (99,297 )     20,281,713       (319,935 )     21,446,144       (419,232 )
State and political subdivisions     349,460       (24,611 )     7,120,710       (126,113 )     7,470,170       (150,724 )
                                                 
    $ 1,513,891     $ (123,908 )   $ 38,885,553     $ (666,310 )   $ 40,399,444     $ (790,218 )

 

The total unrealized losses on the mortgage-backed securities portfolio, all of which are residential mortgage-backs, is derived mainly from three private label senior tranche residential collateralized mortgage obligation (CMO) securities with a book value of $1.1 million and a fair value of $1.0 million. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. When the Company does not intend to sell a debt security, and it is more likely than not, the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Management has determined there is no other-than-temporary-impairment on its CMO securities.