Investment Securities

9 Months Ended

Sep. 30, 2011

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

				Gross Unrealized
		Amortized Cost		Gains		Losses		Estimated Fair Value
September 30, 2011
Mortgage-backed securities	$	29,221,660	$	178,303	$	18,719	$	29,381,244
Total	$	29,221,660	$	178,303	$	18,719	$	29,381,244

December 31, 2010
Mortgage-backed securities	$	17,857,784	$	40,753	$	141,921	$	17,756,616
Total	$	17,857,784	$	40,753	$	141,921	$	17,756,616

The following is a summary of maturities of securities available for sale as of September 30, 2011. 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	$	27,553	$	28,617
Due after one year but within five years		6,944,757		6,972,187
Due after five years but within ten years		9,871,929		9,923,976
Due after ten years		12,377,421		12,456,464
	$	29,221,660	$	29,381,244

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 September 30, 2011 and December 31, 2010.

	Less than twelve months				Twelve months or more				Total
	Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses
September 30, 2011
Mortgage-backed securities	$	4,464,932	$	12,540	$	2,169,941	$	6,179	$	6,634,873	$	18,719

Total	$	4,464,932	$	12,540	$	2,169,941	$	6,179	$	6,634,873	$	18,719

	Less than twelve months				Twelve months or more				Total
	Fair Value		Unrealized losses		Fair Value		Unrealized losses		Fair Value		Unrealized losses
December 31, 2010
Mortgage-backed securities	$	12,247,383	$	141,921	$	—	$	—	$	12,247,383	$	141,921

Total	$	12,247,383	$	141,921	$	—	$	—	$	12,247,383	$	141,921

Proceeds from available for sale securities totaled $5,013,753 for the nine months ended September 30, 2011, resulting in gross gains of $29,117. The were no sales of securities for the three months ended September 30,2011.

Securities classified as available-for-sale are recorded at fair market value. Securities in a continuous loss position for twelve months or more at September 30, 2011, consisted of two securities. Of the securities in an unrealized loss position as of September 30, 2011, 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.

AB&T Financial CORP 10-Q