Note

. Investment Securities

The amortized cost and fair values of investment securities, with gross unrealized gains and losses, follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2017:
Available for Sale
State and municipal securities	$	13,756,573	$	221,320	$	7,460	$	13,970,433
Residential mortgage-backed securities		12,075,689		121,840		122,287		12,075,242
	$	25,832,262	$	343,160	$	129,747	$	26,045,675

December 31, 2016:
Available for Sale
State and municipal securities	$	18,019,050	$	200,924	$	63,836	$	18,156,138
Residential mortgage-backed securities		26,427,933		242,541		265,932		26,404,542
	$	44,446,983	$	443,465	$	329,768	$	44,560,680

December 31, 2017

and

December 31, 2016,

there were

pledged securities.

The amortized cost and fair value at

December 31, 2017,

by contractual maturity, are shown below. Maturities

may

differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities

may

be called or repaid without any penalties. Therefore, stated maturities of residential mortgage-backed securities are

not

disclosed.

	Securities Available for Sale
	Amortized		Fair
	Cost		Value

Due in three months or less	$	55,000	$	55,004
Due after three months through one year		714,379		716,817
Due after one year through five years		4,430,045		4,477,805
Due after five years through ten years		4,212,871		4,312,268
Due after ten years		4,344,278		4,408,539
Residential mortgage-backed securities		12,075,689		12,075,242
	$	25,832,262	$	26,045,675

There were proceeds of

$13.7

million from the sale of securities for the

twelve

months ended

December 31, 2017

and proceeds of

$1.2

million from the sale of securities for the

twelve

months ended

December 31, 2016

resulting in gross realized gains of

$98,230

and

$8,418,

respectively and gross realized losses of

$127,343

and

$3,261,

respectively, for net realized (losses) gains of (

$29,113

) and

$5,157,

respectively. The tax (benefit) provision applicable to the realized (losses) gains amounted to (

$11,115

) and

$2,002,

respectively for the years ended

December 31, 2017

and

2016.

Information pertaining to securities with gross unrealized losses at

December 31,

and

2016

aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
December 31, 2017
Securities Available for Sale
State and municipal securities	$	1,435,888	$	7,460	$	-	$	-	$	1,435,888	$	7,460
Residential mortgage-backed securities		2,035,206		12,564		6,209,019		109,723		8,244,225		122,287
	$	3,471,094	$	20,024	$	6,209,019	$	109,723	$	9,680,113	$	129,747

December 31, 2016
Securities Available for Sale
State and municipal securities	$	4,734,681	$	63,836	$	-	$	-	$	4,734,681	$	63,836
Residential mortgage-backed securities		13,364,755		187,191		4,422,865		78,741		17,787,620		265,932
	$	18,099,436	$	251,027	$	4,422,865	$	78,741	$	22,522,301	$	329,768

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (

) the length of time and the extent to which the fair value has been less than cost, (

) the financial condition and near-term prospects of the issuer, and (

) the intent

and ability to retain and whether it is

not

more likely than

not

the Company will be required to sell its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports.

December 31, 2017,

securities had unrealized losses with aggregate depreciation of

1.32%

from their amortized cost basis. 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 these securities and it is

not

more likely than

not

the Company will be required to sell these securities before recovery of the amortized cost basis, which

may

be maturity, the Company did

not

consider these investments to be other than temporarily impaired at

December 31, 2017.