Securities Available for Sale

3 Months Ended

Dec. 31, 2013

Securities Available for Sale [Abstract]

SECURITIES AVAILABLE FOR SALE

NOTE 5 – SECURITIES AVAILABLE FOR SALE

During the three months ended December 31, 2013, the Company sold or redeemed securities with a cost of $1,845,637 and recognized a Gain on Sale of Securities Transactions of $150,725.  The Company also made purchases of $11,539,599 in Securities Available for Sale at Fair Value.  Of this amount, the Company made total purchases of 16,030 common shares of UMH Properties, Inc. (UMH), a related REIT, through UMH’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $140,261 or a weighted average cost of $8.75 per share.  The Company owned a total of 795,258 UMH common shares as of December 31, 2013 at a total cost of $7,465,404 and a fair value of $7,491,333.  The Company also owns 200,000 shares of UMH’s 8.25% Series A Cumulative Redeemable Preferred Stock at a total cost of $5,000,000 and a fair value of $5,040,000.

The Company held thirty-two securities that had unrealized losses as of December 31, 2013.  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 December 31, 2013:

	Less than 12 Months					12 Months or Longer
			Unrealized					Unrealized
Description of Securities	Fair Value		Losses			Fair Value		Losses
Preferred stock	$	19,665,921	$	(1,542,827	)	$	619,836	$	(85,164	)
Common stock		3,933,200		(326,998	)		-0-		-0-
Total	$	23,599,121	$	(1,869,825	)	$	619,836	$	(85,164	)

The following is a summary of the range of losses:

Number of Individual Securities	Fair Value		Unrealized Losses			Range of Loss
13	$	6,347,041	$	(186,855	)		0-5	%
13		14,420,285		(1,248,847	)		6-10	%
4		3,128,136		(422,777	)		11-15	%
1		206,600		(43,400	)		16-20	%
1		116,895		(53,110	)		31	%
32	$	24,218,957	$	(1,954,989	)

The Company has determined that these securities are temporarily impaired as of December 31, 2013.  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 Holding Gains on its securities portfolio of $439,163 as of December 31, 2013.