Securities Available for Sale

9 Months Ended

Jun. 30, 2012

Investments, Debt and Equity Securities [Abstract]

SECURITIES AVAILABLE FOR SALE

NOTE 5 – SECURITIES AVAILABLE FOR SALE

During the nine months ended June 30, 2012, the Company sold or redeemed securities with a cost of $17,747,856 and recognized a gain on sale of $5,677,783.  The Company also made purchases of $17,343,831 in securities available for sale.  Of this amount, the Company made total purchases of 102,281 common shares of UMH Properties, Inc (UMH), a related REIT, through UMH’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $1,022,244 or an average cost of $9.99 per share.  The Company owned a total of 740,923 UMH common shares as of June 30, 2012 at a total cost of $6,959,460 and a fair value of $7,950,109.   The Company also owns 200,000 shares of UMH 8.25% Series A preferred stock at a total cost of $5,000,000 and a fair value of $5,230,000.

The Company held six securities that were temporarily impaired investments as of June 30, 2012.  The Company considers many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment.  The following is a summary of temporarily impaired securities at June 30, 2012:

	Less than 12 Months					12 Months or Longer
			Unrealized					Unrealized
Description of Securities	Fair Value		Losses			Fair Value		Losses
Preferred stock	$	1,009,638	$	(30,444	)	$	144,500	$	(25,505	)
Common stock		9,324,586		(553,629	)		-0-		-0-
Total	$	10,334,224	$	(584,073	)	$	144,500	$	(25,505	)

The following is a summary of the range of losses:

Number of Individual Securities		Fair Value		Unrealized Losses			Range of Loss
	3	$	5,735,188	$	(218,193	)		0-5%
	1		4,594,536		(355,380	)		6-10%
	1		144,500		(25,505	)		11-25%
	1		4,500		(10,500	)		70%
	6	$	10,478,724	$	(609,578	)

The Company has determined that these securities are temporarily impaired as of June 30, 2012.  The Company normally holds REIT securities long term and has the ability and intent to hold these securities to recovery.  The Company had total net unrealized gains on its securities portfolio of $4,851,092 as of June 30, 2012.