Securities

6 Months Ended

Jun. 30, 2011

Securities

Securities

Note 2: Securities

The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows:

Available-for-sale securities June 30, 2011 (unaudited)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Government agencies	$	6,723,872	$	68,976	$	(3,134	)	$	6,789,714
State and municipal obligations		23,613,852		794,722		(23,776	)		24,384,798
	$	30,337,724	$	863,698	$	(26,910	)	$	31,174,512
Available-for-sale securities December 31, 2010	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Government agencies	$	8,738,339	$	43,318	$	(27,800	)	$	8,753,857
State and municipal obligations		24,884,217		502,878		(67,224	)		25,319,871
	$	33,622,556	$	546,196	$	(95,024	)	$	34,073,728

Securities with a market value of $9.0 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of June 30, 2011. The market value of pledged securities at December 31, 2010 was $9.9 million.

Securities in an unrealized loss position at June 30, 2011 and December 31, 2010, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All securities are investment grade or better and all losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, we do expect to recover the entire amortized cost basis. Bonds with unrealized loss positions at June 30, 2011 included 1 mortgage backed security, 1 federal agency and 5 municipal bonds. Bonds with unrealized loss positions at December 31, 2010 included 16 municipals and 4 federal agencies. The tables are shown below.

	Less than 12 months				12 months or more				Total
June 30, 2011 (unaudited)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	860,694	$	3,134	$	—	$	—	$	860,694	$	3,134
States and municipal obligations		2,018,056		23,776		—		—		2,018,056		23,776
Total temporarily impaired securities	$	2,878,750	$	26,910	$	—	$	—	$	2,878,750	$	26,910
	Less than 12 months				12 months or more				Total
December 31, 2010	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	1,964,436	$	27,800	$	—	$	—	$	1,964,436	$	27,800
States and municipal obligations		6,679,896		67,224		—		—		6,679,896		67,224
Total temporarily impaired securities	$	8,644,332	$	95,024	$	—	$	—	$	8,644,332	$	95,024

The Company's investment in Federal Home Loan Bank of Atlanta ("FHLB") stock totaled $1.8 million at June 30, 2011 and December 31, 2010. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock, other than the FHLBs or its member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Despite the FHLB's temporary suspension of repurchases of excess capital stock in 2010, the Company does not consider this investment to be other-than-temporarily impaired at June 30, 2011 and no impairment has been recognized. FHLB stock is shown in the restricted securities line item on the consolidated balance sheets and is not a part of the available-for-sale securities portfolio.