Securities

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

Note 3:          Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale Securities
December 31, 2015:
U.S. Government and federal agencies	$	15,979,475	$	44,972	$	(85,750	)	$	15,938,697
Mortgage-backed securities (Government-sponsored enterprises - residential)		23,067,200		211,987		(100,792	)		23,178,395
Municipal bonds		47,229,171		1,306,328		(179,259	)		48,356,240
	$	86,275,846	$	1,563,287	$	(365,801	)	$	87,473,332
December 31, 2014:
U.S. Government and federal agencies	$	10,031,683	$	65,328	$	(138,738	)	$	9,958,273
Mortgage-backed securities (Government-sponsored enterprises - residential)		41,196,695		433,757		(210,531	)		41,419,921
Municipal bonds		44,378,515		1,457,977		(529,789	)		45,306,703
	$	95,606,893	$	1,957,062	$	(879,058	)	$	96,684,897

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

		Available-for-sale
		Amortized Cost		Fair  Value
Within one year	$	1,526,439	$	1,528,936
One to five years		11,435,457		11,703,893
Five to ten years		34,788,426		35,343,736
After ten years		15,458,324		15,718,372
		63,208,646		64,294,937
Mortgage-backed securities		23,067,200		23,178,395
Totals	$	86,275,846	$	87,473,332

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $25,681,115 at December 31, 2015 and $21,121,613 at December 31, 2014.

The carrying value of securities sold under agreement to repurchase amounted to $7,591,475 at December 31, 2015 and $9,165,462 at December 31, 2014.

Gross gains of $352,983 and $429,105 and gross losses of $(32,398) and $(20,352) resulting from sales of available-for-sale securities were realized for 2015 and 2014, respectively. The tax provision applicable to these net realized gains amounted to $108,999 and $138,976, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2015 and 2014, was $30,676,768 and $40,587,408, which is approximately 35% and 42%, respectively, of the Company’s available-for-sale investment portfolio. The declines primarily resulted from recent changes in market interest rates.

Management believes the declines in fair value for these securities are temporary.

The following table shows the Company’s investments’ gross unrealized losses and fair value of the Company’s 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:

	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
Available-for-sale Securities
U.S. Government agencies	$	8,591,014	$	(49,205	)	$	1,809,745	$	(36,545	)	$	10,400,759	$	(85,750	)
Mortgage-backed securities (Government-sponsored enterprises - residential)		5,843,754		(45,886	)		2,257,674		(54,906	)		8,101,428		(100,792	)
Municipal bonds		5,440,291		(48,383	)		6,734,290		(130,876	)		12,174,581		(179,259	)
Total temporarily impaired securities	$	19,875,059	$	(143,474	)	$	10,801,709	$	(222,327	)	$	30,676,768	$	(365,801	)

	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
Available-for-sale Securities
U.S. Government agencies	$	2,955,829	$	(28,208	)	$	3,949,940	$	(110,530	)	$	6,905,769	$	(138,738	)
Mortgage-backed securities (Government-sponsored enterprises - residential)		2,061,203		(13,358	)		13,725,099		(197,173	)		15,786,302		(210,531	)
Municipal bonds		3,953,168		(44,654	)		13,942,169		(485,135	)		17,895,337		(529,789	)
Total temporarily impaired securities	$	8,970,200	$	(86,220	)	$	31,617,208	$	(792,838	)	$	40,587,408	$	(879,058	)

U.S. Government Agencies

The unrealized losses on the Company’s investments in direct obligations of U.S. government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2015.

Residential Mortgage-backed Securities

The unrealized losses on the Company’s investment in residential mortgage-backed securities were caused by interest rate increases. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2015.

Municipal Bonds

The unrealized losses on the Company’s investments in securities of municipal bonds were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2015.