Note 3 - Available-for-sale Securities

3 Months Ended

Mar. 31, 2020

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

March 31, 2020

and

December 31, 2019.

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
March 31, 2020
Available-for-sale securities
Mortgage-backed securities	$	33,484,461	$	1,054,762	$	(14,660	)	$	34,524,563
U.S. Government agencies		961,651		4,123		(12,652	)		953,122
Municipal obligations		25,416,937		496,604		(16,426	)		25,897,115
Total	$	59,863,049	$	1,555,489	$	(43,738	)	$	61,374,800
December 31, 2019
Available-for-sale securities
Mortgage-backed securities	$	30,722,958	$	415,564	$	(119,774	)	$	31,018,748
U.S. Government agencies		1,102,532		1,739		(24,824	)		1,079,447
Municipal obligations		12,279,341		254,521		(114,879	)		12,418,983
Total	$	44,104,831	$	671,824	$	(259,477	)	$	44,517,178

There were

no

sales of available-for-sale securities during the

three

months ended

March 31, 2020

or

2019.

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

March 31, 2020

and

December 31, 2019

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

March 31, 2020

and

December 31, 2019

were as follows:

	March 31, 2020				December 31, 2019
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	10,079,265	$	10,083,100	$	-	$	-
Due after one to five years		30,524,131		31,550,267		27,151,751		27,510,536
Due after five to ten years		16,355,991		16,811,943		14,048,273		14,163,270
Due after ten years		2,903,662		2,929,490		2,904,807		2,843,372
Totals	$	59,863,049	$	61,374,800	$	44,104,831	$	44,517,178

At

March 31, 2020

and

December 31, 2019,

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

March 31, 2020

and

December 31, 2019,

mortgage-backed securities included collateralized mortgage obligations of

$13.2

 million and

$13.4

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.

	March 31, 2020
	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	$	437,108	$	(2,756	)	$	1,242,786	$	(11,904	)	$	1,679,894	$	(14,660	)
U.S. Government agencies		-		-			746,879		(12,652	)		746,879		(12,652	)
Municipal obligations		2,975,852		(16,426	)		-		-			2,975,852		(16,426	)
Total temporarily impaired securities	$	3,412,960	$	(19,182	)	$	1,989,665	$	(24,556	)	$	5,402,625	$	(43,738	)

	December 31, 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	$	10,201,840	$	(64,195	)	$	6,459,069	$	(55,579	)	$	16,660,909	$	(119,774	)
U.S. Government agencies		-		-			843,719		(24,824	)		843,719		(24,824	)
Municipal obligations		4,676,851		(114,879	)		-		-			4,676,851		(114,879	)
Total temporarily impaired securities	$	14,878,691	$	(179,074	)	$	7,302,788	$	(80,403	)	$	22,181,479	$	(259,477	)

At

March 31, 2020

and

December 31, 2019,

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

March 31, 2020.

Loans and securities with a carrying value of approximately

$149.6

 million at

March 31, 2020

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

$4.0

 million at

March 31, 2020

were pledged to secure public deposits.