NOTE

– INVESTMENT SECURITIES

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

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
March 31, 201 9 :
Securities Available for Sale
State and municipal securities	$	12,569,484	$	184,283	$	2,780	$	12,750,987
Residential mortgage-backed securities		11,776,371		74,257		131,616	$	11,719,012
	$	24,345,855	$	258,540	$	134,396	$	24,469,999
December 31, 2018:
Securities Available for Sale
State and municipal securities	$	13,092,077	$	116,127	$	21,416	$	13,186,788
Residential mortgage-backed securities		12,485,167		59,282		197,470		12,346,979
	$	25,577,244	$	175,409	$	218,886	$	25,533,767

The amortized cost and fair value at

March 31, 2019,

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 prepaid without 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	$	150,268	$	150,515
Due after three months through one year		475,244		477,929
Due after one year through five years		4,896,781		4,956,310
Due after five years through ten years		4,113,562		4,186,789
Due after ten years		2,933,629		2,979,444
Residential mortgage-backed securities		11,776,371		11,719,012
	$	24,345,855	$	24,469,999

The following table reflects securities with gross unrealized losses for less than

months and for

months or more at

March 31, 2019

and

December 31, 2018:

	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
March 31, 201 9
Securities Available for Sale
State and municipal securities	$	-	$	-	$	534,227	$	2,780	$	534,227	$	2,780
Residential mortgage-backed securities		690,547		6,817		6,172,041		124,799		6,862,588		131,616
	$	690,547	$	6,817	$	6,706,268	$	127,579	$	7,396,815	$	134,396

December 31, 2018
Securities Available for Sale
State and municipal securities	$	1,831,305	$	9,610	$	1,345,990	$	11,806	$	3,177,295	$	21,416
Residential mortgage-backed securities		2,865,546		25,266		6,034,053		172,204		8,899,599		197,470
	$	4,696,851	$	34,876	$	7,380,043	$	184,010	$	12,076,894	$	218,886

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.

March 31, 2019,

securities had unrealized losses with an aggregate depreciation of

1.78%

from the Company’s amortized cost basis. The Company does

not

consider these investments to be other than temporarily impaired at

March 31, 2019

due to the following:

●

Decline in value is attributable to interest rates.

●

The value did

not

decline due to credit quality.

●

The Company does

not

intend to sell these securities.

●

The Company has adequate liquidity such that it will

not

more likely than

not

have to sell these securities before recovery of the amortized cost basis, which

may

be at maturity.

There were

proceeds from the sales of securities for the

three

months ended

March 31, 2019

and

March 31, 2018.