INVESTMENT SECURITIES AVAILABLE FOR SALE

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES AVAILABLE FOR SALE

2. INVESTMENT SECURITIES AVAILABLE FOR SALE

   The amortized cost and fair value of investment securities available for sale are summarized as follows:

	DECEMBER 31, 2014
	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		ESTIMATED FAIR VALUE
U.S. Treasury Notes	$	29,162,412	$	105,627	$	19,758	$	29,248,281
Government-Sponsored Enterprises		50,194,951		95,961		148,263		50,142,649
Municipal Securities		32,663,698		1,973,743		34,259		34,603,182
Total	$	112,021,061	$	2,175,331	$	202,280	$	113,994,112

	DECEMBER 31, 2013
	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES		ESTIMATED FAIR VALUE
U.S. Treasury Notes	$	15,841,901	$	58,429	$	67,929	$	15,832,401
Government-Sponsored Enterprises		43,582,119		363,981		311,062		43,635,038
Municipal Securities		33,706,898		1,599,638		125,754		35,180,782
Total	$	93,130,918	$	2,022,048	$	504,745	$	94,648,221

The amortized cost and estimated fair value of investment securities available for sale at December 31, 2014 and December 31, 2013, by contractual maturity are as follows:

	DECEMBER 31, 2014
		AMORTIZED COST		ESTIMATED FAIR VALUE
Due in one year or less		$	8,324,400	$	8,362,398
Due in one year to five years			43,301,670		43,851,426
Due in five years to ten years			52,566,597		53,671,067
Due in ten years and over			7,828,394		8,109,221
Total		$	112,021,061	$	113,994,112

	DECEMBER 31, 2013
		AMORTIZED COST		ESTIMATED FAIR VALUE
Due in one year or less		$	11,048,145	$	11,147,251
Due in one year to five years			39,310,800		39,914,350
Due in five years to ten years			31,907,109		32,503,090
Due in ten years and over			10,864,864		11,083,530
Total		$	93,130,918	$	94,648,221

During the year ended December 31, 2014, we realized a gain of $312,577 on the sale of ten investment securities with an aggregate amortized cost of $36,846,786. There were no securities sold during the year ended December 31, 2013.

Investment securities with an aggregate amortized cost of $48,268,706 and estimated fair value of $50,212,002 at December 31, 2014, were pledged to secure deposits and other balances, as required or permitted by law.

At December 31, 2014, we had two US Treasury Notes with an unrealized loss of $19,758, seven Agency Notes with an unrealized loss of $148,263, and three Municipal Securities with an unrealized loss of $34,259, compared to three US Treasury Notes with an unrealized loss of $67,929, five Agency Notes with an unrealized loss of $311,062, and six Municipal Securities with an unrealized loss of $125,754 at December 31, 2013. The unrealized losses on investments were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Therefore, these investments are not considered other-than-temporarily impaired. We have the ability to hold these investments until market price recovery or maturity. Gross unrealized losses and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014 and December 31, 2013 are as follows:

	DECEMBER 31, 2014
		Less than 12 months				12 months or longer				Total
Descriptions of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury Notes			4,948,438		19,758						4,948,438		19,758
Government-Sponsored Enterprises			28,850,132		148,263						28,850,132		148,263
Municipal Securities			931,428		27,182		1,557,833		7,077		2,489,261		34,259
Total			34,729,998		195,203		1,557,833		7,077		36,287,831		202,280

	DECEMBER 31, 2013
		Less than 12 months				12 months or longer				Total
Descriptions of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury Notes			9,713,619		67,929						9,713,619		67,929
Government-Sponsored Enterprises			20,027,016		311,062						20,027,016		311,062
Municipal Securities			2,496,742		125,652		401,624		102		2,898,366		125,754
Total			32,237,377		504,643		401,624		102		32,639,001		504,745

The following table reconciles the changes in Level 3 financial instruments for the year ended December 31, 2014 and 2013.

Level 3 Municipal Securities December 31,
	2014			2013
Beginning Balance	$	1,525,337		$	1,740,341
Total gains or (losses) (realized/unrealized)
Included in earnings		—			—
Included in other comprehensive income		16,752			(55,004	)
Purchases, issuances and settlements		(165,000	)		(160,000	)
Transfers in and/or out of level 3		—			—
Ending Balance	$	1,377,089		$	1,525,337