Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Securities [Abstract]

Investment Securities [Text Block]

Note C – Investment Securities

Investments in Federal Home Loan Bank and Federal Reserve Bank stock are combined and classified separately from investment securities in the condensed consolidated balance sheet, are restricted and may only be resold to, or redeemed by, the issuer.

Investment securities consisted of the following (in $1,000s):

	March 31, 2012				December 31, 2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Available for sale:
United States treasury	$	3,499	$	3,503	$	4,004	$	4,013
United States government agency		9,028		9,035		9,805		9,819
Mortgage-backed		10,365		10,443		10,894		10,972
Municipalities		103		108		275		278
		22,995		23,089		24,978		25,082
Held for long-term investment:
Capitol Development Bancorp Limited III		958		958		973		973
Other equity investments		1,764		1,764		1,764		1,764
		2,722		2,722		2,737		2,737
	$	25,717	$	25,811	$	27,715	$	27,819

Securities held for long-term investment are not subject to the classification and accounting rules relating to most typical investments.  In addition, Capitol's other equity investments consist mostly of equity-method investments in non-public enterprises which, accordingly, are outside of the scope of accounting rules for most typical investments which often require use of estimated fair value.  Those entities, which are primarily involved in making equity investments in or financing small businesses, use the fair value method of accounting in valuing their investment portfolios.  Notwithstanding that those investments are outside the scope of such accounting rules, they are included in Capitol's investment securities for financial reporting purposes to summarize all such investment securities together for reporting purposes.

Gross unrealized gains and losses on investment securities available for sale were as follows (in $1,000s):

	March 31, 2012				December 31, 2011
	Gains		Losses		Gains		Losses
United States treasury	$	6	$	1	$	9
United States government agency		11		4		16	$	2
Mortgage-backed		95		17		93		16
Municipalities		4				4
	$	116	$	22	$	122	$	18

The age of gross unrealized losses and carrying value (at estimated fair value) of securities available for sale are summarized below (in $1,000s):

	March 31, 2012				December 31, 2011
	Unrealized Loss		Carrying Value		Unrealized Loss		Carrying Value
One year or less:
United States treasury	$	1	$	1,498
United States government agency		4		996	$	2	$	3,247
Mortgage-backed		17		6,226		16		6,680
	$	22	$	8,720	$	18	$	9,927

Gross realized gains and losses from sales and maturities of investment securities were insignificant for each of the periods presented.

Scheduled maturities of investment securities held as of March 31, 2012 were as follows (in $1,000s):

	Amortized Cost		Estimated Fair Value
Due in one year or less	$	8,278	$	8,290
After one year, through five years		4,370		4,374
After five years, through ten years		310		329
After ten years		10,037		10,096
Securities held for long-term investment
without stated maturities		2,722		2,722
	$	25,717	$	25,811