SECURITIES AVAILABLE FOR SALE

9 Months Ended

Sep. 30, 2015

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The amortized cost and fair values of securities with gross unrealized gains and losses as of the dates indicated are summarized as follows:

	September 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
U.S. government agency obligations	$	28,189,284	$	133,682	$	(24,479	)	$	28,298,487
State and municipal securities		45,029,413		1,076,180		(229,314	)		45,876,279
Other securities		3,501		-		-			3,501
Mortgage-backed: residential		30,705,080		88,836		(132,531	)		30,661,385
	$	103,927,278	$	1,298,698	$	(386,324	)	$	104,839,652

	December 31, 2014
U.S. government agency obligations	$	26,280,359	$	31,628	$	(442,381	)	$	25,869,606
State and municipal securities		44,828,579		1,025,719		(280,690	)		45,573,608
Other securities		3,501		-		-			3,501
Mortgage-backed: residential		32,800,032		176,321		(197,376	)		32,778,977
	$	103,912,471	$	1,233,668	$	(920,447	)	$	104,225,692

Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2015 and December 31, 2014, are summarized as follows:

	September 30, 2015
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. government agency obligations	$	-	$	-		$	7,491,280	$	(24,479	)	$	7,491,280	$	(24,479	)
State and municipal securities		8,569,856		(72,837	)		4,879,709		(156,477	)		13,449,565		(229,314	)
Mortgage-backed: residential		14,664,125		(81,759	)		4,449,652		(50,772	)		19,113,777		(132,531	)
	$	23,233,981	$	(154,596	)	$	16,820,641	$	(231,728	)	$	40,054,622	$	(386,324	)

	December 31, 2014
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. government agency obligations	$	6,477,461	$	(26,717	)	$	12,615,391	$	(415,664	)	$	19,092,852	$	(442,381	)
State and municipal securities		7,102,666		(43,614	)		9,369,188		(237,076	)		16,471,854		(280,690	)
Mortgage-backed: residential		1,474,590		(28,841	)		15,744,126		(168,535	)		17,218,716		(197,376	)
	$	15,054,717	$	(99,172	)	$	37,728,705	$	(821,275	)	$	52,783,422	$	(920,447	)

Management evaluates the investment portfolio on at least a quarterly basis to determine if investments have suffered an other-than-temporary decline in value. In addition, management monitors market trends, investment grades, bond defaults and other circumstances to identify trends and circumstances that might impact the carrying value of equity securities.

At September 30, 2015, the Company had 58 securities in an unrealized loss position which included: 5 agency securities, 33 state and municipal securities, and 20 mortgage-backed securities. This was a decrease from 72 securities at December 31, 2014. The unrealized losses resulted from changes in market interest rates and liquidity, as opposed to changes in the probability of contractual cash flows. The Company does not intend to sell the securities, and it is not more-likely-than-not that the Company will be required to sell the securities prior to recovery of the amortized cost. Full collection of the amounts due according to the contractual terms of the securities was expected as of September 30, 2015; therefore, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2015.

The amortized cost and fair value of the Company’s securities at September 30, 2015, by contractual maturity, are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Additionally, an item in our “other securities” category has no stated maturity. Therefore, stated maturities are not disclosed for these items.

	Amortized		Fair
	Cost		Value
Due in one year or less	$	8,746,163	$	8,767,942
Due after one year through five years		20,650,177		20,802,114
Due after five years through ten years		30,797,474		31,367,004
Due after ten years		13,024,883		13,237,706
Other securities - non-maturing		3,501		3,501
Mortgage-backed: residential		30,705,080		30,661,385
	$	103,927,278	$	104,839,652

Securities with a carrying amount of approximately $67,724,000 and $66,600,000 were pledged to secure deposits, as required or permitted by law, at September 30, 2015 and December 31, 2014, respectively.

At September 30, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The Company received proceeds of $1,630,421 from the sale of securities during the three and nine months ended September 30, 2015, resulting in gross realized gains of $30,860 and gross realized losses of $20,039. The Company received proceeds of $2,759,787 from the sale of securities during the three and nine months ended September 30, 2014, resulting in gross realized gains of $90,838 and gross realized losses of $2,749.