Investment Securities

3 Months Ended

Jun. 30, 2011

Investment Securities {1}

Investment Securities

Note 3 – Investment Securities

Debt securities available-for-sale are carried at estimated fair market value. Debt securities designated as "Held to Maturity" are carried at amortized cost based on Management's intent and ability to hold such securities to maturity.  The amortized cost and estimated fair market values of these debt securities were as follows:

	As of June 30, 2011		As of December 31, 2010
	Amortized Cost	Estimated Fair Market Value	Amortized Cost	Estimated Fair Market Value
Available-for-Sale:       Obligations of states and             political subdivisions       Corporate securities	$55,022,807 130,316 $55,153,123	$57,122,602 387,603 $57,510,205	$64,257,940 130,316 $64,388,256	$65,933,856 377,066 $66,310,922
Held to Maturity:       Obligations of states and             political subdivisions	$37,877,545	$38,206,844	$11,890,954	$12,017,592

Gross unrealized losses on investment securities totaled $143,402 and $161,889 at June 30, 2011 and December 31, 2010, respectively.  The following table provides an analysis of investment securities in an unrealized loss position for which other-than-temporary impairments have not been recognized as of June 30, 2011:

	Less than 12 Months		12 Months or Longer		Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Available for Sale:
Obligations of states and         political subdivisions	$1,597,624	$12,521	$964,416	$5,663	$2,562,040	$18,184
Held to Maturity:
Obligations of states and         political subdivisions	11,221,080	125,218	--	--	11,221,080	125,218
Overall Total	$12,818,704	$137,739	$964,416	$5,663	$13,783,120	$143,402

The table above consists of 19 investments held by the Company, the majority of which are rated “A” or higher by Standard & Poor’s.  The unrealized losses on the Company’s investments listed in the above table were primarily the result of interest rate increases.  The total impairment was less than approximately 1.04% of the fair value of the affected investments at June 30, 2011.  Based on the credit ratings of these investments, along with the consideration of whether the Company has the intent to sell or will be more likely than not required to sell the applicable investment before recovery of amortized cost basis, and the Company does not consider the impairment of any of these investments to be other-than-temporary at June 30, 2011.

The Company’s insurance subsidiaries internally designate certain investments as restricted to cover their policy reserves and loss reserves.  On June 19, 2008, the Company’s property and casualty insurance subsidiary (“Frandisco P&C”) entered into a trust agreement with Synovus Trust Company, N.A. and Voyager Indemnity Insurance Company (“Voyager”).  The trust was created to hold deposits to cover policy reserves and loss reserves of Frandisco P&C.  In July 2008, Frandisco P&C funded the trust with approximately $20.0 million of investment securities.  This amount changes as required reserves change.  All earnings on assets in the trust are remitted to Frandisco P&C.  Any charges associated with the trust are paid by Voyager.