NOTE 2 – AVAILABLE-FOR-SALE SECURITIES

Available-for-sale securities have been classified in the consolidated balance sheets according to management’s intent at June 30, 2017 and December 31, 2016. The carrying amount of such securities and their approximate fair values were as follows:

	Gross		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
June 30, 2017
Available-for-sale securities
Mortgage-backed securities	$	24,637,634	$	25,350	$	(353,590)	$	24,309,394
U.S. Government agencies		2,249,132		3,319		(56,429)		2,196,022
Municipal obligations		1,814,071		1,597		(1,329)		1,814,339

Total	$	28,700,837	$	30,266	$	(411,348)	$	28,319,755

December 31, 2016
Available-for-sale securities
Mortgage-backed securities	$	27,524,834	$	45,866	$	(442,303)	$	27,128,397
U.S. Government agencies		2,588,843		-		(63,107)		2,525,736
Municipal obligations		1,837,337		7,823		(161)		1,844,999

Total	$	31,951,014	$	53,689	$	(505,571)	$	31,499,132

There were no sales of available-for-sale securities during the six months ended June 30, 2017 or 2016.

Amortized cost and fair value of securities by contractual maturity as of June 30, 2017 are shown below. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the actual contractual maturities of underlying collateral. Expected maturities may differ from contractual maturities because borrowers may call or prepay obligations.

The scheduled maturities of available-for-sale securities at June 30, 2017 were as follows:

	June 30, 2017
	Amortized		Fair
	Cost		Value

Due in one year or less	$	376,655	$	377,300
Due after one to five years		26,480,763		26,107,602
Due after five to ten years		1,843,419		1,834,853
Due after ten years		-		-

Total	$	28,700,837	$	28,319,755

At June 30, 2017 and December 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.

At June 30, 2017 and December 31, 2016, mortgage-backed securities included collateralized mortgage obligations of $9.0 million and $9.5 million, respectively, which are backed by single-family mortgage loans. The Company does not hold any securities backed by commercial real estate loans.

Gross Unrealized Losses and Fair Value – The following tables show the gross unrealized losses and fair values of securities by length of time that individual securities in each category have been in a continuous loss position.

	June 30, 2017
	Less Than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

Available-for-sale securities:
Mortgage-backed securities	$	13,742,625	$	(193,733)	$	7,675,428	$	(159,857)	$	21,418,053	$	(353,590)
U.S. Government agencies		1,713,007		(56,429)		-		-		1,713,007		(56,429)
Municipal obligations		1,011,087		(1,329)		-		-		1,011,087		(1,329)

Total temporarily impaired securities	$	16,466,719	$	(251,491)	$	7,675,428	$	(159,857)	$	24,142,147	$	(411,348)

	December 31, 2016
	Less Than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses

Available-for-sale securities:
Mortgage-backed securities	$	17,377,335	$	(337,092)	$	5,351,384	$	(105,211)	$	22,728,719	$	(442,303)
U.S. Government agencies		2,525,737		(63,107)		-		-		2,525,737		(63,107)
Municipal obligations		20,054		(161)		-		-		20,054		(161)

Total temporarily impaired securities	$	19,923,126	$	(400,360)	$	5,351,384	$	(105,211)	$	25,274,510	$	(505,571)

At June 30, 2017, all of the government agency and mortgage-backed securities held by the Company were issued by U.S. Government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at June 30, 2017 or December 31, 2016.

Loans and securities carried at approximately $136.9 million at June 30, 2017 were pledged to secure Federal Home Loan Bank (“FHLB”) advances. In addition, securities carried at approximately $4.9 million at June 30, 2017 were pledged to secure public deposits.