| Category | Amount | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| TAX PREPARATION FEE (NON-ALLOC | 500 | 500 |
| Name of Bond | End of Year Book Value | End of Year Fair Market Value |
|---|---|---|
| GE CAPITAL CORP SERIES MTNA 6% | ||
| PPG INDUSTRIES 5.75% 3/15/2013 | 100,204 | 101,036 |
| ALCOA 6% 07/15/2013 | 99,954 | 102,652 |
| UNITED HEALTH GROUP 6% 6/15/17 | 99,854 | 119,940 |
| AMERICAN EXPRESS 7% 3/19/2018 | 200,603 | 252,686 |
| GOLDMAN SACHS 6.15% 4/1/2018 | 43,783 | 58,739 |
| VERIZON COMM 8.75% 11/01/2018 | 17,194 | 23,604 |
| ALTRIA GROUP 9.7% 11/10/2018 | 53,900 | 69,997 |
| AUTOZONE INC 6.95% 6/15/2016 | 51,121 | 58,829 |
| BANK OF NY MELLON 5.125% | 50,427 | 51,547 |
| BERKSHIRE HATHAWAY 5% 8/15/13 | 50,795 | 51,422 |
| BIOGEN IDEC 6% 03/01/2013 | 50,132 | 50,431 |
| CRH AMERICA 6% 09/30/2016 | 76,229 | 84,272 |
| COMPUTER SCIENCES CORP 6.5% | 49,268 | 58,323 |
| FEDEX CORP 7.375% 01/15/2014 | 50,679 | 53,430 |
| JEFFERIES GROUP 8.5% 7/15/2019 | 105,390 | 119,500 |
| KRAFT FOODS 6.125% 2/1/2018 | 103,846 | 121,677 |
| MEDCO HEALTH SOLUTIONS 6.125% | 50,080 | 50,565 |
| PPL ENERGY SUPPLY 6.5% 5/1/18 | 88,465 | 119,744 |
| STARBUCKS CORP 6.25% 8/15/2017 | 48,123 | 60,143 |
| 3M COMPANY | ||
| VIACOM 6.25% 4/30/2016 | 51,624 | 57,964 |
| WESTERN UNION COMPANY 6.5% | 50,987 | 53,068 |
| WYETH 5.5% 2/15/2016 | 51,582 | 57,109 |
| BLACKROCK INC 6.25% 9/15/2017 | 107,112 | 122,209 |
| BROADRIDGE FINANCIAL SOLUTIONS | 78,187 | 84,375 |
| DIRECTV HOLDINGS 7.625% | ||
| MBNA (BAC) 5% 6/15/2015 | 103,060 | 108,134 |
| VALERO ENERGY 6.125% 6/15/17 | 76,855 | 89,357 |
| WILLIS N AMERICA 5.625% 7/15/1 | 52,547 | 54,627 |
| VERIZON MARYLAND 7.15% 5/1/13 | 79,960 | 76,247 |
| CLOROX COMPANY 5.95% 10/15/17 | 54,146 | 59,478 |
| NATIONAL OILWELL VARCO 6.125% | 50,873 | 50,498 |
| QUEST DIAGNOSTICS 5.45% 11/1/1 | 53,000 | 55,519 |
| ENTERGY CORP 4.7% 1/15/2017 | 105,335 | 108,326 |
| Name of Stock | End of Year Book Value | End of Year Fair Market Value |
|---|---|---|
| BRITISH AMERICAN TOBACCO COMPA | 29,840 | 67,635 |
| CHEVRON CORPORATION | 32,877 | 53,529 |
| GLAXO SMITHKLINE SPONSORED PLC | 59,499 | 50,990 |
| MICROSOFT CORP | 46,667 | 47,250 |
| TRI-STATE FIRST BANC INC | 270,120 | 171,076 |
| VODAFONE GROUP PLC - SP ADR | 44,317 | 52,395 |
| JOHNSON AND JOHNSON | 51,868 | 59,865 |
| SANOFI-AVENTIS ADR | 58,507 | 62,210 |
| KIMBERLY-CLARK CORP | 44,160 | 60,030 |
| PHILIP MORRIS INTL | 38,218 | 78,120 |
| ANNALY CAPITAL MGMT | ||
| ASTRAZENECA PLC | 57,302 | 59,560 |
| RPM INC | 42,854 | 64,357 |
| SIEMANS AG | ||
| AT&T | 38,532 | 51,340 |
| CONOCOPHILLIPS | 40,064 | 58,512 |
| DUKE ENERGY CORP | 40,851 | 57,803 |
| EMERSON ELECTRIC CO | 38,364 | 62,440 |
| EXELON CORPORATION | ||
| HONEYWELL INTERNATIONAL INC | 34,990 | 70,833 |
| PEPSICO INC | 44,438 | 54,197 |
| TRI-STATE 1ST BANK INC - SER B | 500,000 | 500,000 |
| ACCENTURE PLC | 34,670 | 49,742 |
| FRANCE TELECOM | 52,881 | 31,150 |
| GOVERNMENT PROPERTIES INC TR | 56,129 | 52,566 |
| HEALTH CARE REIT INC | 40,539 | 55,774 |
| INTEL | 48,532 | 51,035 |
| JP MORGAN CHASE ALERIAN ML IND | ||
| PROCTER & GAMBLE | 50,747 | 57,503 |
| ROYAL DUTCH SHELL PLC | 36,256 | 49,339 |
| TAIWAN SEMICONDUCTOR MANUFACTU | 49,707 | 85,749 |
| TOTAL FINA SA SPON ADR | 48,926 | 53,258 |
| SEADRILL LTD CP | 49,052 | 84,787 |
| LEGGETT & PLATT INC | 66,948 | 83,103 |
| PAYCHEX INC | 59,089 | 61,765 |
| POWERSHARES S&P 500 LOW VOLATI | ||
| AIRCASTLE LTD | 56,948 | 54,950 |
| WESTPAC BANKING CORP | 53,024 | 65,369 |
| ZURICH INSURANCE GROUP AG | 59,857 | 62,122 |
| CA INC | 60,724 | 51,477 |
| NEW YORK COMMUNITY BANCORP INC | 53,560 | 54,273 |
| 3M COMPANY | 49,853 | 53,574 |
| ETRACS ALERIAN MLP INFRASTRUCT | 118,282 | 116,200 |
| Category/ Item | Listed at Cost or FMV | Book Value | End of Year Fair Market Value |
|---|---|---|---|
| SUNTRUST BANK CD 4% 5/28/14 | AT COST | 98,500 | 98,500 |
| Description | Beginning of Year - Book Value | End of Year - Book Value | End of Year - Fair Market Value |
|---|---|---|---|
| VANGUARD EUROPEAN ETF | 80,848 | 0 | 0 |
| Description | Revenue and Expenses per Books | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| OTHER NON-ALLOCABLE EXPENSE - | 10 | 10 | 0 | |
| OTHER NON-ALLOCABLE EXPENSE - | 349 | 349 | 0 | |
| FEDERAL ESTIMATES - PRINCIPAL | 2,304 | 0 | 0 | |
| FOREIGN TAXES ON QUALIFIED FOR | 42 | 42 | 0 | |
| FOREIGN TAXES ON NONQUALIFIED | 5 | 5 | 0 |
| Category | Amount | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| INVESTMENT MGMT FEES-NOT SUBJE | 56,595 | 56,595 |
| Category | Amount | Net Investment Income | Adjusted Net Income | Disbursements for Charitable Purposes |
|---|---|---|---|---|
| FOREIGN TAXES | 3,109 | 3,109 | 0 |