Securities Available for Sale

9 Months Ended

Jun. 30, 2014

Securities Available for Sale [Abstract]

SECURITIES AVAILABLE FOR SALE

NOTE 5 – SECURITIES AVAILABLE FOR SALE

During the nine months ended June 30, 2014, the Company sold or redeemed securities with a cost of $9,644,786 and recognized a Gain on Sale of Securities Transactions of $1,483,245. The Company also made purchases of $22,887,701 in Securities Available for Sale at Fair Value. Of this amount, the Company made total purchases of 47,287 common shares of UMH Properties, Inc. (UMH), a related REIT, through UMH’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $429,378 or a weighted average cost of $9.08 per share. The Company owned a total of 826,516 UMH common shares as of June 30, 2014 at a total cost of $7,754,520 and a fair value of $8,289,952. 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 $5,266,000.

The Company had total net Unrealized Holding Gains on its securities portfolio of $3,936,766 as of June 30, 2014. The Company held seven securities that had unrealized losses as of June 30, 2014 totaling $400,718. 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, 2014:

	Less than 12 Months		12 Months or Longer
		Unrealized		Unrealized
Description of Securities	Fair Value	Losses	Fair Value	Losses
Preferred stock	$994,000	$(6,000)	$946,064	$(103,941)
Common stock	3,746,400	(290,777)	-0-	-0-
Total	$4,740,400	$(296,777)	$946,064	$(103,941)

The following is a summary of the range of losses:

Number of Individual Securities	Fair Value	Unrealized Losses	Range of Loss
5	$2,800,734	$(76,898)	0-5%
1	2,792,400	(247,145)	8%
1	93,330	(76,675)	45%
7	$5,686,464	$(400,718)

The Company has determined that these securities are temporarily impaired as of June 30, 2014. The Company normally holds REIT securities long term and has the ability and intent to hold these securities to recovery.