Investment Securities

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 2: Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows:

	SEPTEMBER 30, 2017
	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED LOSSES			FAIR  VALUE
U.S. Treasury Notes	$	26,112,531	$	24,169	$	(39,199	)	$	26,097,501
Government-Sponsored Enterprises		59,497,890		179,426		(307,911	)		59,369,405
Municipal Securities		40,561,715		765,902		(297,639	)		41,029,978
Total	$	126,172,136	$	969,497	$	(644,749	)	$	126,496,884

	DECEMBER 31, 2016
	AMORTIZED COST		GROSS  UNREALIZED  GAINS		GROSS UNREALIZED LOSSES			FAIR VALUE
U.S. Treasury Notes	$	24,148,295	$	41,153	$	(250,385	)	$	23,939,063
Government-Sponsored Enterprises		51,737,930		129,482		(833,321	)		51,034,091
Municipal Securities		45,056,390		765,813		(816,413	)		45,005,790
Total	$	120,942,615	$	936,448	$	(1,900,119	)	$	119,978,944

The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2017 and December 31, 2016, by contractual maturity are as follows:

	SEPTEMBER 30, 2017				DECEMBER 31, 2016
	AMORTIZED  COST		FAIR  VALUE		AMORTIZED  COST		FAIR VALUE
Due in one year or less	$	8,561,255	$	8,586,020	$	3,343,347	$	3,350,205
Due in one year to five years		70,669,406		71,024,994		82,848,411		82,682,901
Due in five years to ten years		43,799,734		43,853,008		29,662,030		29,169,228
Due in ten years and over		3,141,741		3,032,862		5,088,827		4,776,610
Total	$	126,172,136	$	126,496,884	$	120,942,615	$	119,978,944

Investment securities pledged to secure public deposits and for other purposes required or permitted by law at September 30, 2017 and December 31, 2016, had a fair value of $54.2 million and $47.6 million, respectively.

The tables below summarize gross unrealized losses on investment securities and the fair market 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 September 30, 2017 and December 31, 2016. We believe that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. We do not intend to sell, and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost.

Less Than 12 Months								12 Months or Longer							Total
					Gross							Gross							Gross
					Unrealized							Unrealized							Unrealized
	#		Fair Value		Loss			#		Fair Value		Loss			#		Fair Value		Loss
September 30, 2017 Available for sale
U.S. Treasury notes		3	$	15,146,094	$	(39,199	)		—	$	—	$	—			3	$	15,146,094	$	(39,199	)
Government-sponsored enterprises		4		17,620,585		(129,779	)		2		5,347,950		(178,132	)		6		22,968,535		(307,911	)
Municipal securities		11		3,541,927		(50,316	)		20		8,246,598		(247,323	)		31		11,788,525		(297,639	)
Total		18	$	36,308,606	$	(219,294	)		22	$	13,594,548	$	(425,455	)		40	$	49,903,154	$	(644,749	)
December 31, 2016 Available for sale
U.S. Treasury notes		4	$	17,968,594	$	(250,385	)		—	$	—	$	—			4	$	17,968,594	$	(250,385	)
Government-sponsored enterprises		8		30,136,720		(833,321	)		—		—		—			8		30,136,720		(833,321	)
Municipal securities		54		22,606,430		(816,413	)		—		—		—			54		22,606,430		(816,413	)
Total		66	$	70,711,744	$	(1,900,119	)		—	$	—	$	—			66	$	70,711,744	$	(1,900,119	)

We received proceeds and gross realized gains and losses from sales of securities available for sale as follows:

	For the Three Months Ended September 30,
	2017		2016
Gross proceeds	$	20,231,265	$	4,902,286
Gross realized gains		154,692		97,714
Gross realized losses		108,872		—

	For the Nine Months Ended September 30,
	2017		2016
Gross proceeds	$	20,231,265	$	25,667,359
Gross realized gains		154,692		446,041
Gross realized losses		108,872		—

For the three months ended September 30, 2017 and 2016, the tax provision related to these gains was $15,578 and $36,154, respectively. For the nine months ended September 30, 2017 and 2016, the tax provision related to these gains was $15,578 and $165,035, respectively.