NOTE 2—SECURITIES

As of June 30, 2012 and 2011, the amortized cost and fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:


	2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
FNMA structured notes	$	2,000,000	$	9,320	$	—		$	2,009,320
Trust preferred and corporate securities		20,964,197		344,230		(46,665	)		21,261,762

Total	$	22,964,197	$	353,550	$	(46,665	)	$	23,271,082


	2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
FHLMC structured notes	$	3,000,000	$	—	$	(6,000	)	$	2,994,000
FNMA structured notes		5,950,000		2,674		—			5,952,674

Total	$	8,950,000	$	2,674	$	(6,000	)	$	8,946,674

The amortized cost and fair value of securities available-for-sale, by contractual maturity, are shown below.


	June 30, 2012
	Amortized Cost		Fair Value
One to five years	$	2,000,000	$	2,009,320
Five to ten years		2,092,755		2,085,500
Over ten years		18,871,442		19,176,262

Total	$	22,964,197	$	23,271,082

The Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”) structured notes are callable quarterly, and have multiple coupon resets and maturities ranging up to 10 years. At June 30, 2012, gross unrealized losses have been in a loss position for less than 12 months and no other than temporary impairment has been taken as the investments are believed to be of high credit quality with the decline in fair value largely due to changes in market interest rates and not credit quality.

The fair value of mortgage-backed securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at June 30, 2012 and 2011 are summarized as follows:


	2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
FNMA mortgage-backed securities	$	5,249,277	$	89,171	$	—	$	5,338,448
FHLMC mortgage-backed securities		9,844,587		203,927		—		10,048,514

Total	$	15,093,864	$	293,098	$	—	$	15,386,962


	2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
FHLMC mortgage-backed securities	$	5,012,927	$	4,537	$	(45,343	)	$	4,972,121

These mortgage-backed securities are backed by residential mortgage loans and do not mature on a single maturity date.

At June 30, 2012, there are no gross unrealized losses on mortgage-backed securities. Gross unrealized losses on mortgage backed securities at June 30, 2011 were at a loss position for less than 12 months. All of the Company’s holdings of mortgage-backed securities at year end 2012 and 2011 were issued by U.S. government sponsored enterprises. Unrealized gains and losses on mortgage-backed securities have not been recognized into income, because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to be other than temporarily impaired at June 30, 2012 and 2011.

In June of 2011, the Company sold a mortgaged-backed security with an amortized cost of $29,871,145. The Company realized a gross gain of $1,232,112.

There were no sales of mortgaged-backed securities in 2010 and 2012.