Investment Securities

3 Months Ended

Mar. 31, 2012

Note 7 – Investment Securities

The amortized cost and estimated fair values of securities available for sale were:


	Amortized Cost		Gross Unrealized				Estimated Fair Value
				Gains		Losses
March 31, 2012
U.S. Government agency securities	$	17,221,730	$	13,532	$	35,655	$	17,199,607
Mortgage-backed securities		18,947,031		138,894		65,623		19,020,302

Total	$	36,168,761	$	152,426	$	101,278	$	36,219,909


December 31, 2011
U.S. Government agency securities	$	14,459,782	$	15,842	$	27,925	$	14,447,699
Mortgage-backed securities		22,072,375		98,033		34,211		22,136,197

Total	$	36,532,157	$	113,875	$	62,136	$	36,583,896

The following is a summary of maturities of securities available for sale as of March 31, 2012. The amortized cost and estimated fair values are based on the contractual maturity dates. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty.


	Securities Available-for-Sale
	Amortized Cost		Estimated Fair Value
Due in one year or less	$	130,537	$	130,917
Due after one year but within five years		9,767,705		9,784,908
Due after five years but within ten years		12,570,432		12,589,464
Due after ten years		13,700,087		13,714,620

	$	36,168,761	$	36,219,909

The following table shows 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 at March 31, 2012 and December 31, 2011.


	Less than twelve months					Twelve months or more				Total
	Fair Value		Unrealized losses			Fair Value		Unrealized losses		Fair Value		Unrealized losses
March 31, 2012
U.S. Government agency securities	$	7,919,493	$	35,655		$	—	$	—	$	7,919,493	$35,655
Mortgage-backed securities		5,820,281		60,752			550,137		4,871		6,370,418	65,623
					60
Total	$	13,739,774	$	96,407		$	550,137	$	4,871	$	14,289,911	$101,278


	Less than twelve months				Twelve months or more				Total
	Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses
December 31, 2011
U.S. Government agency securities	$	6,364,844	$	27,925	$	240,914	$	2,241	$	6,605,758	$	30,166
Mortgage-backed securities		5,204,043		31,970		—		—		5,204,043		31,970

Total	$	11,568,887	$	59,895	$	240,914	$	2,241	$	11,809,801	$	62,136

Proceeds from available for sale securities totaled $4,176,265 for the three months ended March 31, 2012, resulting in gross gains of $38,841. Proceeds from available for sale securities totaled $514,943 for the three months ended March 31, 2011.

Securities classified as available-for-sale are recorded at fair market value. Securities in a continuous loss position for twelve months or more at March 31, 2012, consisted of two securities. Of the securities in an unrealized loss position as of March 31, 2012, the Company does not intend to sell the securities and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. The Company believes, based on industry analyst reports and credit ratings, that the deterioration in value is attributable to changes in market interest rates and is not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary.

- Definition

The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts).

+ References+ Details

AB&T Financial CORP 10-Q