Note 3 - Available-for-sale Securities

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE

3

– AVAILABLE-FOR-SALE SECURITIES

Available-for-sale securities have been classified in the consolidated balance sheets according to management’s intent at

June 30, 2019

and

December 31, 2018.

The amortized cost of such securities and their approximate fair values were as follows:

	Gross		Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
June 30, 2019
Available-for-sale securities
Mortgage-backed securities	$	26,467,688	$	429,033	$	(197,730	)	$	26,698,991
U.S. Government agencies		1,291,408		4,090		(20,332	)		1,275,166
Municipal obligations		6,454,203		241,771		-			6,695,974
Total	$	34,213,299	$	674,894	$	(218,062	)	$	34,670,131
December 31, 2018
Available-for-sale securities
Mortgage-backed securities	$	28,799,904	$	115,824	$	(605,370	)	$	28,310,358
U.S. Government agencies		1,487,917		-		(42,885	)		1,445,032
Municipal obligations		3,672,023		2,363		(1,118	)		3,673,268
Total	$	33,959,844	$	118,187	$	(649,373	)	$	33,428,658

There were

no

sales of available-for-sale securities during the

six

months ended

June 30, 2019

or

2018.

Amortized cost and fair value of securities by contractual maturity as of

June 30, 2019

and

December 31, 2018

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, 2019

and

December 31, 2018

were as follows:

	June 30, 2019				December 31, 2018
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	-	$	-	$	403,612	$	402,924
Due after one to five years		23,546,233		23,794,584		23,040,618		22,482,300
Due after five to ten years		7,488,721		7,563,485		10,515,614		10,543,434
Due after ten years		3,178,345		3,312,062		-		-
Totals	$	34,213,299	$	34,670,131	$	33,959,844	$	33,428,658

At

June 30, 2019

and

December 31, 2018,

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, 2019

and

December 31, 2018,

mortgage-backed securities included collateralized mortgage obligations of

$13.0

million and

$13.8

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, 2019
	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	$	-	$	-	$	13,244,444	$	(197,730	)	$	13,244,444	$	(197,730	)
U.S. Government agencies		-		-		997,341		(20,332	)		997,341		(20,332	)
Total temporarily impaired securities	$	-	$	-	$	14,241,785	$	(218,062	)	$	14,241,785	$	(218,062	)

	December 31, 2018
	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	$	8,605,742	$	(200,190	)	$	10,740,671	$	(405,180	)	$	19,346,413	$	(605,370	)
U.S. Government agencies		302,219		(885	)		1,142,814		(42,000	)		1,445,033		(42,885	)
Municipal obligations		1,747,571		(430	)		402,924		(688	)		2,150,495		(1,118	)
Total temporarily impaired securities	$	10,655,532	$	(201,505	)	$	12,286,409	$	(447,868	)	$	22,941,941	$	(649,373	)

At

June 30, 2019

and

December 31, 2018,

all of the government agencies 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 does

not

consider these securities to be other-than-temporarily impaired at

June 30, 2019.

Loans and securities with a carrying value of approximately

$151.3

million at

June 30, 2019

were pledged to secure Federal Home Loan Bank (“FHLB”) advances. In addition, securities with a carrying value of approximately

$3.6

million at

June 30, 2019

were pledged to secure public deposits.