Securities

3 Months Ended

Mar. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Securities

The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2013 and December 31, 2012 are summarized as follows:

	March 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities available-for-sale:
U.S. Government agencies	$	3,912,202	$	54,799	$	-		$	3,967,001
State and municipal securities		21,512,100		1,850,863		-			23,362,963
Mortgage-backed securities:
Residential mortgage loans guaranteed by GNMA or FNMA		8,532,585		168,643		-			8,701,228
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		55,168,704		66,220		(140,287	)		55,094,637
	$	89,125,591	$	2,140,525	$	(140,287	)	$	91,125,829
Debt securities held to maturity:
Mortgage-backed securities:
Residential mortgage loans guaranteed by GNMA or FNMA	$	42,579	$	1,051	$	-		$	43,630

	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities available-for-sale:
U.S. Government agencies	$	3,961,956	$	56,195	$	-		$	4,018,151
State and municipal securities		21,531,727		2,101,590		-			23,633,317
Mortgage-backed securities:
Residential mortgage loans guaranteed by GNMA or FNMA		9,092,205		132,038		(1,824	)		9,222,419
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		39,151,568		86,099		(14,908	)		39,222,759
	$	73,737,456	$	2,375,922	$	(16,732	)	$	76,096,646
Debt securities held to maturity:
Mortgage-backed securities:
Residential mortgage loans guaranteed by GNMA or FNMA	$	45,086	$	1,341	$	(8	)	$	46,212

At March 31, 2013, securities with a fair value totaling approximately $ 53 millionwere pledged to secure public funds, securities sold under agreements to repurchase, as collateral for federal funds purchased from other financial institutions and serve as collateral for borrowings at the Federal Reserve Discount Window.

The amortized cost and estimated market value of securities at March 31, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available-for-Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	-	$	-	$	-	$	-
Due from one year to five years		1,091,942		1,166,169		-		-
Due from five years to ten years		5,499,656		6,056,232		-		-
Due after ten years		18,832,704		20,107,563		-		-
	$	25,424,302	$	27,329,964		-		-
Mortgage-backed securities		63,701,289		63,795,865		42,579		43,630
	$	89,125,591	$	91,125,829	$	42,579	$	43,630

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available for sale have been in a continuous unrealized loss position, as of March 31, 2013 and as of December 31, 2012:

	As of March 31, 2013
	Less than 12 Months					12 Months or Greater				Total
			Gross					Gross				Gross
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
Mortgage-backed Securities:
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies	$	33,814,587	$	(140,287	)	$	-	$	-	$	33,814,587	$	(140,287	)
	$	33,814,587	$	(140,287	)	$	-	$	-	$	33,814,587	$	(140,287	)

	As of December 31, 2012
	Less than 12 Months					12 Months or Greater				Total
			Gross					Gross				Gross
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
Mortgage-backed securities:
Residential mortgage loans guaranteed by GNMA or FNMA	$	667,325	$	(1,824	)	$	-	$	-	$	667,325	$	(1,824	)
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		22,514,641		(14,908	)		-		-		22,514,641		(14,908	)
	$	23,181,966	$	(16,732	)	$	-	$	-	$	23,181,966	$	(16,732	)

Upon acquisition of a security, the Bank determines the appropriate impairment model that is applicable.  If the security is a beneficial interest in securitized financial assets, the Bank uses the beneficial interests in securitized financial assets impairment model.  If the security is not a beneficial interest in securitized financial assets, the Bank uses the debt and equity securities impairment model.  The Bank conducts periodic reviews to evaluate each security to determine whether an other-than-temporary impairment has occurred.  The Bank does not have any securities that have been classified as other-than-temporarily-impaired at March 31, 2013 or December 31, 2012.

At March 31, 2013 and December 31, 2012, the significant categories of temporarily impaired securities, and management’s evaluation of those securities are as follows:

Mortgage-backed securities: At March 31, 2013, seven investments in residential mortgage-backed securities had unrealized losses.  This impairment is believed to be caused by the current interest rate environment.  The contractual cash flows of those investments are guaranteed or issued by an agency of the U.S. Government.  Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem those investments to be other-than-temporarily impaired at March 31, 2013.