SECURITIES AVAILABLE FOR SALE

3 Months Ended

Mar. 31, 2016

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:

	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
U.S. government agency obligations	$	30,637,131	$	291,482	$	-		$	30,928,613
State and municipal securities		43,360,933		1,384,348		(70,189	)		44,675,092
Other securities		3,501		-		-			3,501
Mortgage-backed: residential		31,162,379		143,625		(61,364	)		31,244,640
	$	105,163,944	$	1,819,455	$	(131,553	)	$	106,851,846

	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
U.S. government agency obligations	$	29,183,789	$	26,006	$	(161,693	)	$	29,048,102
State and municipal securities		44,746,083		1,156,547		(168,391	)		45,734,239
Other securities		3,501		-		-			3,501
Mortgage-backed: residential		29,170,791		60,300		(260,319	)		28,970,772
	$	103,104,164	$	1,242,853	$	(590,403	)	$	103,756,614

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 March 31, 2016 and December 31, 2015, are summarized as follows:

	March 31, 2016
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
State and municipal securities	$	1,205,729	$	(10,653	)	$	4,927,928	$	(59,536	)	$	6,133,657	$	(70,189	)
Mortgage-backed: residential		4,560,610		(7,753	)		6,707,497		(53,611	)		11,268,107		(61,364	)
	$	5,766,339	$	(18,406	)	$	11,635,425	$	(113,147	)	$	17,401,764	$	(131,553	)

	December 31, 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	$	15,928,702	$	(82,008	)	$	5,934,944	$	(79,685	)	$	21,863,646	$	(161,693	)
State and municipal securities		7,666,691		(66,224	)		4,927,928		(102,167	)		12,594,619		(168,391	)
Mortgage-backed: residential		18,251,546		(183,188	)		4,227,473		(77,131	)		22,479,019		(260,319	)
	$	41,846,939	$	(331,420	)	$	15,090,345	$	(258,983	)	$	56,937,284	$	(590,403	)

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 March 31, 2016, the Company had 18 securities in an unrealized loss position which included: seven state and municipal securities and 11 mortgage-backed securities. This was a decrease from 67 securities at December 31, 2015. 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 March 31, 2016; therefore, the Company did not consider these investments to be other-than-temporarily impaired at March 31, 2016.

The amortized cost and fair value of the Company’s securities at March 31, 2016 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	$	7,019,566	$	7,059,994
Due after one year through five years		24,628,793		24,964,795
Due after five years through ten years		31,929,138		32,857,989
Due after ten years		10,420,567		10,720,927
Other securities - non-maturing		3,501		3,501
Mortgage-backed: residential		31,162,379		31,244,640
	$	105,163,944	$	106,851,846

Securities with a carrying amount of approximately $84,723,000 and $66,882,000 were pledged to secure deposits, as required or permitted by law, at March 31, 2016 and December 31, 2015, respectively.

At March 31, 2016 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 $3,686,240 from the sale of securities during the three months ended March 31, 2016, resulting in gross realized gains of $29,489 and gross realized losses of $308. For the same time period last year, there were no sales of securities.