3. SECURITIES


Securities available-for-sale as of June 30, 2011 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		(Losses)			Fair Value

Debt securities:
State and local obligations	$	9,060,630	$	114,299	$	(255,325	)	$	8,919,604
Mortgage-backed securities(1)		20,143,818		417,638		(49,399	)		20,512,057
Collateralized mortgage obligations (1)		29,430,129		551,769		(13,833	)		29,968,065
Corporate bonds		3,366,739		35,077		(338	)		3,401,478
U.S. Government agencies		8,637,055		98,891		-			8,735,946
Total	$	70,638,371	$	1,217,674	$	(318,895	)	$	71,537,150


Securities available-for-sale as of December 31, 2010 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		(Losses)			Fair Value

Debt securities:
State and local obligations	$	5,103,472	$	25,888	$	(139,697	)	$	4,989,663
Mortgage-backed securities (1)		13,735,714		290,895		(163,780	)		13,862,829
Collateralized mortgage obligations (1)		19,469,375		59,302		(240,553	)		19,288,124
Corporate bonds		1,622,912		-		(21,676	)		1,601,236
U.S. Government agencies		8,646,763		93,659		(46,503	)		8,693,919
Total	$	48,578,236	$	469,744	$	(612,209	)	$	48,435,771

(1) All mortgage backed securities and collateralized mortgage obligations consist of securities issued by FNMA, FHLMC or GNMA and are backed by residential mortgage loans.

Gross unrealized losses and estimated fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2011 and December 31, 2010, are summarized as follows:



	June 30, 2011
	Less than 12 Months					12 Months or More				Total
			Unrealized					Unrealized				Unrealized
	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
Debt securities:
State and local obligations	$	5,254,837	$	(255,325	)	$	-	$	-	$	5,254,837	$	(255,325	)
Mortgage-backed securities		3,624,464		(49,399	)		-		-		3,624,464		(49,399	)
Collateralized mortgage obligations		1,810,800		(13,833	)		-		-		1,810,800		(13,833	)
Corporate bonds		764,228		(338	)		-		-		764,228		(338	)
Total	$	11,454,329	$	(318,895	)	$	-	$	-	$	11,454,329	$	(318,895	)


	December 31, 2010
	Less than 12 Months					12 Months or More				Total
			Unrealized					Unrealized				Unrealized
	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
Debt securities:
State and local obligations	$	3,096,965	$	(139,697	)	$	-	$	-	$	3,096,965	$	(139,697	)
Mortgage-backed securities		5,810,547		(163,780	)		-		-		5,810,547		(163,780	)
Collateralized mortgage obligations		12,776,228		(240,553	)		-		-		12,776,228		(240,553	)
Corporate bonds		1,601,236		(21,676	)		-		-		1,601,236		(21,676	)
U.S. Government agencies		1,577,870		(46,503	)		-		-		1,577,870		(46,503	)
Total	$	24,862,846	$	(612,209	)	$	-	$	-	$	24,862,846	$	(612,209	)

The total number of securities in the investment portfolio in an unrealized loss position at June 30, 2011 was 33 compared to 35 at December 31, 2010. The Company conducts quarterly reviews to identify and evaluate each investment that has an unrealized loss. The unrealized losses for the above investment securities are generally due to changes in interest rates and, as such, are considered to be temporary by the Company. The review takes into consideration the intent of the Company to not sell the security or whether it is more-likely-than-not that the Company will be required to sell the security before its anticipated recovery, as well as other qualitative factors.

The amortized cost and fair value of debt securities as of June 30, 2011 by contractual maturity is shown below. Certain securities have call features, which allow the issuer to call the security prior to maturity. Maturities may differ from contractual maturities in mortgage-backed securities and collateralized mortgage obligations because the mortgage underlying the securities may be called or repaid without any penalties. Therefore, these securities are not included in the maturity categories in the following maturity summary:


	Debt Securities Available-for-Sale
	June 30, 2011
	Amortized
	Cost		Fair Value

Due in one year or less	$	95,000	$	93,637
Due from one to five years		10,894,033		10,996,444
Due from five to ten years		5,247,132		5,271,416
Due after ten years		4,828,259		4,695,531
Mortgage-backed securities and
collateralized mortgage obligations		49,573,947		50,480,122
	$	70,638,371	$	71,537,150

Gross security gains from the sale of securities was $30,041 for the three and six months ended June 30, 2011 compared to gross security gains from the sale of securities of none and $7,652 for the three and six months ended June 30, 2010. There were no losses on the sales of securities during the reporting periods.