Securities

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

Securities

Note 2: Securities

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available-for-sale securities
September 30, 2012 (unaudited)
U.S. Government agencies	$	8,219,454	$	82,746	$	(20,010	)	$	8,282,190
State and municipal obligations		22,538,721		462,866		(21,757	)		22,979,830
	$	30,758,175	$	545,612	$	(41,767	)	$	31,262,020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Available-for-sale securities
December 31, 2011
U.S. Government agencies	$	8,698,771	$	100,951	$	(4,656	)	$	8,795,066
State and municipal obligations		31,947,729		1,066,585		(10,259	)		33,004,055
	$	40,646,500	$	1,167,536	$	(14,915	)	$	41,799,121

Securities with a market value of $7.5 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of September 30, 2012. The market value of pledged securities at December 31, 2011 was $9.3 million.

Securities in an unrealized loss position at September 30, 2012 and December 31, 2011, 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 September 30, 2012 included six municipals and two federal agencies. Bonds with unrealized loss positions at December 31, 2011 included two municipals and one federal agency. The tables are shown below.

	Less than 12 months				12 months or more				Total
September 30, 2012 (unaudited)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	544,367	$	17,143	$	215,186	$	2,867	$	759,553	$	20,010
States and municipal obligations		1,664,025		20,976		543,447		781		2,207,472		21,757
Total temporarily impaired securities	$	2,208,392	$	38,119	$	758,633	$	3,648	$	2,967,025	$	41,767
	Less than 12 months				12 months or more				Total
December 31, 2011	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	311,122	$	4,656	$	—	$	—	$	311,122	$	4,656
States and municipal obligations		819,809		10,259		—		—		819,809		10,259
Total temporarily impaired securities	$	1,130,931	$	14,915	$	—	$	—	$	1,130,931	$	14,915

The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.1 million at September 30, 2012 and $1.6 million at December 31, 2011. 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 September 30, 2012 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.