Note 2 - Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Holdings [Text Block]

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of March 31, 2012 and December 31, 2011 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2012:
Securities held to maturity, other bonds	$	200,000	$	-	$	-		$	200,000
Securities available for sale:
U.S. govt. sponsored agency securities	$	431,920,359	$	1,625,404	$	(1,376,270	)	$	432,169,493
Residential mortgage-backed and related securities		125,034,762		3,561,180		(63,353	)		128,532,589
Municipal securities		52,549,973		1,630,825		(368,975	)		53,811,823
Trust preferred securities		86,200		17,800		-			104,000
Other securities		1,364,286		246,616		(38,292	)		1,572,610
	$	610,955,580	$	7,081,825	$	(1,846,890	)	$	616,190,515
December 31, 2011:
Securities held to maturity, other bonds	$	200,000	$	-	$	-		$	200,000
Securities available for sale:
U.S. govt. sponsored agency securities	$	426,581,913	$	2,428,994	$	(55,687	)	$	428,955,220
Residential mortgage-backed and related securities		105,373,614		3,488,350		(8,215	)		108,853,749
Municipal securities		23,937,118		1,752,246		-			25,689,364
Trust preferred securities		86,200		-		(5,400	)		80,800
Other securities		1,354,940		140,022		(44,804	)		1,450,158
	$	557,333,785	$	7,809,612	$	(114,106	)	$	565,029,291

The Company’s residential mortgage backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities.  The Company currently has no commercial mortgage-backed securities or pooled trust preferred investments.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2012 and December 31, 2011, are summarized as follows:

	Less than 12 Months					12 Months or More					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
March 31, 2012:
Securities available for sale:
U.S. govt. sponsored agency securities	$	187,572,041	$	(1,376,270	)	$	-	$	-		$	187,572,041	$	(1,376,270	)
Residential mortgage-backed and related securities		13,484,869		(63,353	)		-		-			13,484,869		(63,353	)
Municipal securities		21,942,002		(368,975	)		-		-			21,942,002		(368,975	)
Other securities		201,875		(38,292	)		-		-			201,875		(38,292	)
	$	223,200,787	$	(1,846,890	)	$	-	$	-		$	223,200,787	$	(1,846,890	)
December 31, 2011:
Securities available for sale:
U.S. govt. sponsored agency securities	$	59,979,620	$	(55,687	)	$	-	$	-		$	59,979,620	$	(55,687	)
Residential mortgage-backed and related securities		4,906,398		(8,215	)		-		-			4,906,398		(8,215	)
Trust preferred securities		-		-			80,800		(5,400	)		80,800		(5,400	)
Other securities		251,957		(44,332	)		2,778		(472	)		254,735		(44,804	)
	$	65,137,975	$	(108,234	)	$	83,578	$	(5,872	)	$	65,221,553	$	(114,106	)

At March 31, 2012, the investment portfolio included 360 securities.  Of this number, 99 securities had current unrealized losses with aggregate depreciation less than 1% from the amortized cost basis.  Of these 99, none had unrealized losses for twelve months or more.  All of the debt securities in unrealized loss positions are considered acceptable credit risks.  Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary.  In addition, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery.  At March 31, 2012 and December 31, 2011, equity securities represented less than 1% of the total portfolio.

The Company did not recognize other-than-temporary impairment on any debt or equity securities for the three months ended March 31, 2012 and 2011.

All sales of securities, as applicable, for the three months ended March 31, 2012 and 2011, respectively, were from securities identified as available for sale.  Information on proceeds received, as well as pre-tax gross gains from sales of those securities is as follows:

	Three Months Ended
	March 31, 2012		March 31, 2011
Proceeds from sales of securities	$	-	$	37,394,079
Pre-tax gross gains from sales of securities		-		880,312

The amortized cost and fair value of securities as of March 31, 2012 by contractual maturity are shown below.  A portion of the Company’s U.S. government sponsored agency securities contain call options which allow the issuer, at its discretion, to call the security at predetermined dates prior to the contractual maturity date.Expected maturities of residential mortgage-backed and related securities may differ from contractual maturities because the residential mortgages underlying the residential mortgage-backed and related securities may be called or prepaid without any penalties.  Therefore, these securities are not included in the maturity categories in the following table.  “Other securities” are excluded from the maturity categories as there is no fixed maturity date.

	Amortized Cost		Fair Value
Securities held to maturity:
Due in one year or less	$	50,000	$	50,000
Due after one year through five years		100,000		100,000
Due after five years		50,000		50,000
	$	200,000	$	200,000
Securities available for sale:
Due in one year or less	$	2,195,161	$	2,218,532
Due after one year through five years		63,858,017		64,143,310
Due after five years		418,503,354		419,723,474
	$	484,556,532	$	486,085,316
Residential mortgage-backed and related securities		125,034,762		128,532,589
Other securities		1,364,286		1,572,610
	$	610,955,580	$	616,190,515