3.	Investment Securities

Investment securities are summarized as follows:

	Amortized		Unrealized		Unrealized		Fair
December 31, 2019	cost		gains		losses		value
Available for sale
State and municipal	$	508,134	$	4,536	$	-	$	512,670
SBA pools		2,203,834		-		52,037		2,151,797
Mortgage-backed securities		33,760,999		255,843		149,535		33,867,307
	$	36,472,967	$	260,379	$	201,572	$	36,531,774
Held to maturity
State and municipal	$	19,510,018	$	588,393	$	480	$	20,097,931

December 31, 2018
Available for sale
State and municipal	$	1,506,011	$	11,161	$	10,667	$	1,506,505
SBA pools		2,779,411		-		60,039		2,719,372
Mortgage-backed securities		23,090,618		33,594		758,098		22,366,114
	$	27,376,040	$	44,755	$	828,804	$	26,591,991
Held to maturity
State and municipal	$	18,127,067	$	115,220	$	209,194	$	18,033,093

Contractual maturities, shown below, will differ from actual maturities because borrowers and issuers

may

have the right to call or prepay obligations with or without call or prepayment penalties.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
December 31, 2019	cost		value		cost		value
Within one year	$	-	$	-	$	257,150	$	261,204
Over one to five years		258,134		258,838		562,587		565,140
Over five to ten years		250,000		253,832		2,717,125		2,782,474
Over ten years		-		-		15,973,156		16,489,113
		508,134		512,670		19,510,018		20,097,931
Mortgage-backed securities and SBA pools, due in monthly installments		35,964,833		36,019,104		-		-
	$	36,472,967	$	36,531,774	$	19,510,018	$	20,097,931

December 31, 2018
Within one year	$	375,000	$	375,653	$	1,009,284	$	1,011,165
Over one to five years		260,587		249,920		590,522		598,528
Over five to ten years		870,424		880,932		1,858,695		1,876,364
Over ten years		-		-		14,668,566		14,547,036
		1,506,011		1,506,505		18,127,067		18,033,093
Mortgage-backed securities and SBA pools, due in monthly installments		25,870,029		25,085,486		-		-
	$	27,376,040	$	26,591,991	$	18,127,067	$	18,033,093

Securities with a carrying value of

$11,441,474

and

$11,706,765

as of

December 31, 2019

and

2018,

respectively, were pledged as collateral for securities sold under repurchase agreements.

The following table sets forth the Company's gross unrealized losses on a continuous basis for investment securities, by category and length of time.

December 31, 2019	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
Description of investments	Fair value		losses		Fair value		losses		Fair value		losses
State and municipal	$	251,618	$	480	$	-	$	-	$	251,618	$	480
SBA pools		-		-		2,151,797		52,037		2,151,797		52,037
Mortgage-backed securities		10,643,624		58,063		7,295,788		91,472		17,939,412		149,535
Total	$	10,895,242	$	58,543	$	9,447,585	$	143,509	$	20,342,827	$	202,052

December 31, 2018	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
Description of investments	Fair value		losses		Fair value		losses		Fair value		losses
State and municipal	$	3,435,052	$	42,080	$	3,740,467	$	177,781	$	7,175,519	$	219,861
SBA pools		443,288		6,707		2,276,084		53,332		2,719,372		60,039
Mortgage-backed securities		596,002		6,631		17,770,790		751,467		18,366,792		758,098
Total	$	4,474,342	$	55,418	$	23,787,341	$	982,580	$	28,261,683	$	1,037,998

Management has the ability and intent to hold securities classified as held to maturity until they mature, at which time the Company should receive full value for the securities. As of

December 31, 2019,

management did

not

have the intent to sell any of the securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased as well as other market conditions for each particular security based upon the structure and remaining principal balance. The fair values of the investment securities are expected to recover as the securities approach their maturity dates or repricing dates or if market yields for such investments decline. Based on the these factors, as of

December 31, 2019,

management believes the unrealized losses detailed in the table above are temporary and, accordingly,

none

of these unrealized losses have been recognized in the Company’s consolidated statement of income.

2019

and

2018,

the Company had

security sales.