Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Securities

4. SECURITIES

	December 31, 2020
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	347,033	$	20,615	$	-	$	367,648
Mortgage-backed securities		73,838		339		-		74,177
	$	420,871	$	20,954	$	-	$	441,825
Securities available for sale:
U.S. government and agency obligations	$	20,246,530	$	28,158	$	22,640	$	20,252,048
Mortgage-backed securities		29,161,743		629,374		15,708		29,775,409
	$	49,408,273	$	657,532	$	38,348	$	50,027,457

	December 31, 2019
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held to maturity:
State, county, and municipal obligations	$	346,806	$	15,635	$	-	$	362,441
Mortgage-backed securities		77,488		1,491		-		78,979
	$	424,294	$	17,126	$	-	$	441,420
Securities available for sale:
U.S. government and agency obligations	$	7,832,355	$	6,943	$	58,764		7,780,534
Mortgage-backed securities		30,083,739		190,318		75,969		30,198,088
	$	37,916,094	$	197,261	$	134,733	$	37,978,622

Mortgage-backed securities include securities guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac with amortized costs of $1.0 million, $9.4 million, and $13.2 million, respectively, at December 31, 2020 ($1.7 million, $19.5 million and $9.0 million, respectively, at December 31, 2019). Mortgage-backed securities also include other commercial mortgage-backed securities totaling $5.6 million at December 31, 2020. ($0 at December 31, 2019).

The following is a summary of the amortized cost and fair value of securities at December 31, 2020 and 2019, by remaining period to contractual maturity. Actual maturities may differ from these amounts because certain debt security issuers have the right to call or redeem their obligations prior to contractual maturity. In addition, mortgage backed securities that amortize monthly are listed in the period the security is legally set to pay off in full.

	December 31, 2020
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	-	$	-	$	6,499,847	$	6,499,910
After one to five years		-		-		6,100,000		6,115,567
After five to ten years		-		-		3,329,922		3,353,902
After ten years		420,871		441,825		33,478,504		34,058,078
	$	420,871	$	441,825	$	49,408,273	$	50,027,457

	December 31, 2019
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	-	$	-	$	499,851	$	499,866
After one to five years		-		-		1,297,811		1,301,605
After five to ten years		-		-		1,484,831		1,482,981
After ten years		424,294		441,420		34,633,601		34,694,170
	$	424,294	$	441,420	$	37,916,094	$	37,978,622

The following tables summarize the fair values and unrealized losses of securities with an unrealized loss at December 31, 2020 and 2019, segregated between securities that have been in an unrealized loss position for less than one year, or one year or longer, at the respective dates.

	December 31, 2020
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities available for sale:
U.S. government and agency obligations	$	6,222,465	$	22,640	$	-	$	-
Mortgage-backed securities		3,032,774		13,369		88,292		2,339
		9,255,239		36,009		88,292		2,339
Securities held to maturity:
State, county, and municipal obligations		-		-		-		-
	$	9,255,239	$	36,009	$	88,292	$	2,339

	December 31, 2019
	Under One Year				One Year or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss
Securities available for sale:
U.S. government and agency obligations	$	6,239,181	$	46,887	$	534,559	$	11,877
Mortgage-backed securities		7,382,886		45,749		8,082,496		30,220
		13,622,067		92,636		8,617,055		42,097
Securities held to maturity:
State, county, and municipal obligations		-		-		-		-
	$	13,622,067	$	92,636	$	8,617,055	$	42,097

The unrealized losses are primarily due to changes in market interest rates subsequent to purchase. At December 31, 2020, a total of 6 securities were in an unrealized loss position (30 at December 31, 2019). The Company generally purchases securities issued by Government Sponsored Enterprises (GSE). Accordingly, it is expected that the GSE securities would not be settled at a price less than the Company’s amortized cost basis. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2020 and December 31, 2019 since the decline in market value is attributable to changes in interest rates and not credit quality and the Company has the intent and ability to hold these investments until there is a full recovery of the unrealized loss, which may be at maturity.

Securities available for sale, with a carrying value of approximately $2.1 million at December 31, 2020 have been pledged to secure advances from the Federal Home Loan Bank of New York.