Village Bank & Trust Financial Corp. - 10-Q filing on 2012-08-15

Investment securities available for sale

6 Months Ended

Jun. 30, 2012

Note 4 - Investment securities available for sale

At June 30, 2012 and December 31, 2011, all of our securities were classified as available-for-sale. The following table presents the composition of our investment portfolio at the dates indicated (dollars in thousands).

					Gross		Gross			Estimated
	Par		Amortized		Unrealized		Unrealized			Fair		Average
	Value		Cost		Gains		Losses			Value		Yield
June 30, 2012

US Government Agencies
More than ten years	$	15,300	$	18,264	$	472	$	-		$	18,736		3.27	%
		15,300		18,264		472		-			18,736		3.27	%
Mortgage-backed securities
One to five years		3		3		-		-			3		0.01	%
More than ten years		11,363		11,961		64		(10	)		12,016		1.51	%
Total		11,366		11,964		64		(10	)		12,019		1.51	%

Municipals
Five to ten years		3,500		4,137		5		-			4,142		2.56	%
More than ten years		1,550		1,784		15		-			1,799		3.52	%
Total		5,050		5,921		20		-			5,941		2.85	%

Total investment securities	$	31,716	$	36,149	$	557	$	(10	)	$	36,696		2.63	%

December 31, 2011

US Government Agencies
More than ten years	$	2,000	$	2,000	$	1	$	-		$	2,001		3.81	%

Mortgage-backed securities
One to five years		11		11		-		-			11		0.01	%
More than ten years		19,870		20,621		220		(49	)		20,792		1.83	%
Total		19,881		20,632		220		(49	)		20,803		1.83	%

Other investments
More than ten years		7,356		7,386		-		(27	)		7,359		0.55	%

Total investment securities	$	29,237	$	30,018	$	221	$	(76	)	$	30,163		1.65	%

Investment securities available for sale that have an unrealized loss position at June 30, 2012 and December 31, 2011 are detailed below (dollars in thousands).

	Securities in a loss					Securities in a loss
	Position for less than					Position for more than
	12 Months					12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2012	(in Thousands)
Mortgage-backed securities	$	2,331	$	(10	)	$	3	$	-		$	2,334	$	(10	)

Total	$	2,331	$	(10	)	$	3	$	-		$	2,334	$	(10	)

December 31, 2011
US Treasuries	$	7,358	$	(27	)	$	-	$	-		$	7,358	$	(27	)
Mortgage-backed securities		10,221		(47	)		205		(2	)		10,426		(49	)

Total	$	17,579	$	(74	)	$	205	$	(2	)	$	17,784	$	(76	)

Management does not believe that any individual unrealized loss as of June 30, 2012 and December 31, 2011 is other than a temporary impairment. These unrealized losses are primarily attributable to changes in interest rates. As of June 30, 2012, management does not have the intent to sell any of the securities classified as available for sale and management believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.