Investment Securities

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 2: Investment Securities

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

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Treasury Notes	$	23,047,674	$	460,263	$	—		$	23,507,937
Government-Sponsored Enterprises		93,258,966		1,660,766		(43,210	)		94,876,522
Municipal Securities		16,405,672		517,384		—			16,923,056
Total	$	132,712,312	$	2,638,413	$	(43,210	)	$	135,307,515

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Treasury Notes	$	23,080,465	$	99,735	$	—		$	23,180,200
Government-Sponsored Enterprises		50,139,959		401,336		(43,100	)		50,498,195
Municipal Securities		26,618,375		169,640		(16,454	)		26,771,561
Total	$	99,838,799	$	670,711	$	(59,554	)	$	100,449,956

The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2020 and December 31, 2019, by contractual maturity are in the following table.

	September 30, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	25,221,775	$	25,554,095	$	9,185,615	$	9,191,226
Due in one year to five years		50,073,562		51,630,597		77,261,123		77,815,119
Due in five years to ten years		47,416,975		48,166,033		13,392,061		13,443,611
Due in ten years and over		10,000,000		9,956,790		—		—
Total	$	132,712,312	$	135,307,515	$	99,838,799	$	100,449,956

Securities pledged to secure deposits at both September 30, 2020 and December 31, 2019, had a fair value of $42.6 million and $37.6 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, 2020 and December 31, 2019. We believe that all unrealized losses have resulted from temporary changes in the interest rate market 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.

	September 30, 2020
	Less Than 12 Months							12 Months or Longer						Total
	#		Fair Value		Gross Unrealized Loss			#		Fair Value		Gross Unrealized Loss		#		Fair Value		Gross Unrealized Loss
U.S. Treasury Notes		—	$	—	$	—			—	$	—	$	—		—	$	—	$	—
Government-Sponsored Enterprises		1		9,956,790		(43,210	)		—		—		—		1		9,956,790		(43,210	)
Municipal Securities		—		—		—			—		—		—		—		—		—
Total		1	$	9,956,790	$	(43,210	)		—	$	—	$	—		1	$	9,956,790	$	(43,210	)

	December 31, 2019
	Less Than 12 Months							12 Months or Longer							Total
Available for sale	#		Fair Value		Gross Unrealized Loss			#		Fair Value		Gross Unrealized Loss			#		Fair Value		Gross Unrealized Loss
U.S. Treasury Notes		—	$	—	$	—			—	$	—	$	—			—	$	—	$	—
Government-Sponsored Enterprises		1		5,039,550		(43,100	)		—		—		—			1		5,039,550		(43,100	)
Municipal Securities		9		3,199,517		(13,335	)		1		330,880		(3,119	)		10		3,530,397		(16,454	)
Total		10	$	8,239,067	$	(56,435	)		1	$	330,880	$	(3,119	)		11	$	8,569,947	$	(59,554	)

The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses.

	Three Months Ended
	September 30,
	2020		2019
Gross proceeds	$	—	$	5,364,750
Gross realized gains		—		14
Gross realized losses		—		(14	)

	Nine Months Ended
	September 30,
	2020		2019
Gross proceeds	$	—	$	20,317,250
Gross realized gains		—		59,523
Gross realized losses		—		(30,626	)

There was no tax provision related to gains for the three and nine months ended September 30, 2020. There was no tax provision related to gains for the three months ended September 30, 2019. The tax provision related to these sales was $6,069 for the nine months ended September 30, 2019.