Note 3. Securities

The following table summarizes the amortized cost, fair value, and the corresponding amounts of gross unrealized gains and losses for available for sale securities at September 30, 2018 and December 31, 2017:

As of September 30, 2018:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. Government sponsored agency securities	$	6,992,706	$	—	$	(125,777	)	$	6,866,929
Mortgage-backed securities: residential		15,161,985		—		(448,856	)		14,713,129
Collateralized mortgage obligations		25,636,076		—		(891,976	)		24,744,100
Total available for sale	$	47,790,767	$	—	$	(1,466,609	)	$	46,324,158

As of December 31, 2017:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. Government sponsored agency securities	$	6,988,681	$	2,001	$	(58,674	)	$	6,932,008
Mortgage-backed securities: residential		14,109,433		—		(168,908	)		13,940,525
Collateralized mortgage obligations		18,458,814		—		(345,316	)		18,113,498
Other securities		2,518,498		—		(32,818	)		2,485,680
Total available for sale	$	42,075,426	$	2,001	$	(605,716	)	$	41,471,711

There were no sales of securities available for sale in the three or nine months ended September 30, 2018 or 2017. The amortized cost and estimated fair value of securities available for sale at September 30, 2018, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately.

As of September 30, 2018:	Amortized Cost		Fair Value
Available for sale:
Within one year	$	999,656	$	990,105
One to five years		5,993,050		5,876,824
Mortgage-backed securities: residential		15,161,985		14,713,129
Collateralized mortgage obligations		25,636,076		24,744,100
Total available for sale	$	47,790,767	$	46,324,158

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2018 and December 31, 2017, 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 shareholders’ equity.

The following table summarizes securities with unrealized losses at September 30, 2018 and December 31, 2017, aggregated by length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
As of September 30, 2018:	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available for sale:
U.S. Government sponsored agency securities	$	1,972,553	$	(21,048	)	$	4,894,376	$	(104,729	)	$	6,866,929	$	(125,777	)
Mortgage-backed securities: residential		—		—			14,713,129		(448,856	)		14,713,129		(448,856	)
Collateralized mortgage obligations		9,689,390		(112,087	)		15,054,710		(779,889	)		24,744,100		(891,976	)
Total available for sale	$	11,661,943	$	(133,135	)	$	34,662,215	$	(1,333,474	)	$	46,324,158	$	(1,466,609	)

	Less Than 12 Months					12 Months or Longer					Total
As of December 31, 2017:	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available for sale:
U.S. Government sponsored agency securities	$	3,957,340	$	(33,620	)	$	1,974,139	$	(25,054	)	$	5,931,479	$	(58,674	)
Mortgage-backed securities: residential		7,954,428		(70,965	)		5,986,097		(97,943	)		13,940,525		(168,908	)
Collateralized mortgage obligations		9,642,028		(138,243	)		8,471,469		(207,073	)		18,113,497		(345,316	)
Other securities		2,485,680		(32,818	)		—		—			2,485,680		(32,818	)
Total available for sale	$	24,039,476	$	(275,646	)	$	16,431,705	$	(330,070	)	$	40,471,181	$	(605,716	)

The Company believes that the unrealized losses are temporary, arising mainly from fluctuations in interest rates and do not reflect a deterioration of credit quality of the issuers. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The fair value is expected to recover as the securities approach maturity. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery.

There were no securities pledged as collateral at September 30, 2018 or December 31, 2017.

Other investments at September 30, 2018 and December 31, 2017, consisted of the following:

	September 30, 2018		December 31, 2017
FHLB stock	$	4,581,700	$	4,096,500
PCBB stock		190,000		190,000
Mutual fund - CRA qualified		2,449,180		—
Total other investments	$	7,220,880	$	4,286,500

Effective January 2018, the Company adopted ASU 2016-01 and reclassified a $2.5 million of a mutual fund that the Company invested to satisfy the CRA requirements from securities available for sale to other investments, which is reported at fair value. Unrealized holding losses on this investment were $111,041 as of September 30, 2018. This loss is included in other income in the Statements of Income and Comprehensive Income.