Note 2. Investment Securities

The amortized cost and estimated fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income at December 31, 2015 and 2014 were as follows:


2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Securities available-for-sale Obligations of U.S. Government agencies	$	83,826,411	$	1,100	$	1,577,145	$	82,250,366
Mortgage-backed securities		92,602,875		467,693		1,348,603		91,721,965
State, County, Municipals		87,948,336		2,609,469		181,442		90,376,363
Other investments		2,931,134		—		15,425		2,915,709


Total	$	267,308,756	$	3,078,262	$	3,122,615	$	267,264,403


2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Securities available-for-sale Obligations of U.S. Government agencies	$	77,996,980	$	—	$	2,035,905	$	75,961,075
Mortgage-backed securities		12,501,990		824,844		—		13,326,834
State, County, Municipals		84,896,091		3,048,489		360,082		87,584,498
Other investments		2,997,401		—		124,678		2,872,723


Total	$	178,392,462	$	3,873,333	$	2,520,665	$	179,745,130

During the second quarter of 2014, the Company transferred securities with an amortized cost of $222,322,423 from the AFS classification to HTM. This transfer was completed after consideration of the Company’s ability and intent to hold these securities to maturity.

The fair value of the securities transferred as of the date of transfer was $205,260,985 with a net unrealized loss of $17,061,438. In accordance with ASC 320-10-35-16, the discount on each security that resulted from this transfer is amortized over the remaining lives of the individual securities. Any unrealized holding losses on the date of the transfer are not recognized in net income but remain in accumulated other comprehensive loss. In accordance with ASC 320-10-15-10d, the unrealized loss amounts in accumulated other comprehensive loss are amortized simultaneously against interest income as the discount is accreted on the transferred securities. There is no effect on net income as the discount accretion offsets the accumulated other comprehensive loss amortization. The unamortized unrealized loss, before deferred taxes, was $11,305,438 and $15,516,336 at December 31, 2015 and 2014, respectively.

The amortized cost and estimated fair value of HTM securities and the corresponding amounts of gross unrecognized gains and losses were as follows:


2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Securities held-to-maturity Obligations of U.S. Government agencies	$	161,043,404	$	8,002,431	$	—	$	169,045,835


Total	$	161,043,404	$	8,002,431	$	—	$	169,045,835


2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Securities held-to-maturity Obligations of U.S. Government agencies	$	206,817,169	$	9,928,269	$	—	$	216,745,438


Total	$	206,817,169	$	9,928,269	$	—	$	216,745,438

The following tables show the gross unrealized losses and fair value of the Company’s investments classified as AFS and HTM investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 and 2014.

A summary of unrealized loss information for AFS securities, categorized by security type follows (in thousands):


December 31, 2015	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Obligations of U.S.
Government agencies	$	50,915	$	716	$	26,335	$	861	$	77,250	$	1,577
Mortgage backed securities		83,001		1,349		—		—		83,001		1,349
State, County, Municipal		2,393		10		12,623		172		15,016		182
Other investments		—		—		2,916		15		2,916		15


Total	$	136,309	$	2,075	$	41,874	$	1,048	$	178,183	$	3,123


December 31, 2014	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Obligations of U.S.
Government agencies	$	—	$	—	$	75,961	$	2,036	$	75,961	$	2,036
State, County, Municipal		697		3		14,980		357		15,677		360
Other investments		—		—		2,873		125		2,873		125


Total	$	697	$	3	$	93,814	$	2,518	$	94,511	$	2,521

Investment Securities.

The Company’s unrealized losses on its Obligations of United States Government agencies, Mortgage backed securities and State, County and Municipal bonds are the result of an upward trend in interest rates, mainly in the mid-term sector. None of the unrealized losses disclosed in the previous table are related to credit deterioration. The Company has determined that none of the securities in this classification are other-than-temporarily impaired at December 31, 2015 or December 31, 2014.

Other investments.

The Company’s unrealized loss on other investments relates to an investment in a pooled trust preferred security. The decline in value of the pooled trust preferred security is related to the deterioration of the markets for these types of securities brought about by the lowered credit ratings and past deferrals and defaults of the underlying issuing financial institutions. However, due to the reductions in defaults and deferrals during the year, the unrealized losses have improved from $124,678 in 2014 to $15,425 in 2015. The Company owns a senior tranche of this security and therefore has a higher degree of which future deferrals and defaults would be required before the cash flow for the Company’s tranche is negatively impacted. The Company does not intend to sell this security and it is not more likely than not that the Company will be required to sell at a price less than amortized cost prior to maturity. Given these factors, the Company does not consider the investment to be other-than-temporarily impaired at December 31, 2015 or December 31, 2014. This security is not subject to any of the restrictions put forth under the Volcker Rule that was brought about by the passage of the Dodd-Frank Act.

The amortized cost and estimated fair value of securities at December 31, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


AFS	Amortized Cost		Fair Value
Securities AFS
Due in one year or less	$	3,008,448	$	3,028,887
Due after one year through five years		13,587,885		13,985,525
Due after five years through ten years		80,749,532		80,346,720
Due after ten years		169,962,891		169,903,271

Total	$	267,308,756	$	267,264,403


HTM	Amortized Cost		Fair Value
Securities HTM
Due after five years through ten years	$	37,052,187	$	38,528,059
Due after ten years		123,991,217		130,517,776

Total	$	161,043,404	$	169,045,835

Investment securities with fair values of $201,482,967 and $156,226,081 at December 31, 2015 and December 31, 2014, respectively, were pledged as collateral for public deposits.

Gross realized gains and losses are included in net gains on sales of securities. Total gross realized gains and gross realized losses from the sale of investment securities for each of the years ended December 31 were:


	2015		2014		2013
Gross realized gains	$	142,422	$	206,258	$	1,039,793
Gross realized losses		124,919		191,716		616,405

	$	17,503	$	14,542	$	423,388