Investment Securities

9 Months Ended

Sep. 30, 2013

Schedule of Investments [Abstract]

Investment Securities

 NOTE 3

Investment Securities

Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost of securities as shown in the consolidated balance sheets and their estimated fair values at September 30, 2013, and December 31, 2012, were as follows:

Securities Available For Sale:

September 30, 2013	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	20,073,762	$	0	$	695,582	$	19,378,180
State and municipal securities		1,533,198		9,327		138,524		1,404,001
Residential mortgage-backed securities		9,108,574		427,155		37,222		9,498,507
Corporate notes		2,495,195		0		30,970		2,464,225
Total debt securities AFS		33,210,729		436,482		902,298		32,744,913
Equity securities		174,549		292,651		0		467,200
Total securities AFS	$	33,385,278	$	729,133	$	902,298	$	33,212,113

December 31, 2012	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	8,953,767	$	13,125	$	22,880	$	8,944,012
State and municipal securities		2,141,634		58,291		19,897		2,180,028
Residential mortgage-backed securities		9,737,393		677,007		0		10,414,400
Total debt securities AFS		20,832,794		748,423		42,777		21,538,440
Equity securities		174,549		0		40,949		133,600
Total securities AFS	$	21,007,343	$	748,423	$	83,726	$	21,672,040

Securities Held to Maturity:

September 30, 2013	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	48,842,479	$	595,818	$	453,181	$	48,985,116
Residential mortgage-backed securities		11,548,366		415,411		0		11,963,777
Total securities HTM	$	60,390,845	$	1,011,229	$	453,181	$	60,948,893

December 31, 2012	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	44,173,630	$	1,511,179	$	38,955	$	45,645,854
Residential mortgage-backed securities		15,689,859		748,606		0		16,438,465
Total securities HTM	$	59,863,489	$	2,259,785	$	38,955	$	62,084,319

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position, follows:

September 30, 2013	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities Available for Sale
Temporarily impaired debt securities:
U.S. Government Agency securities	$	695,582	$	19,378,180	$	0	$	0
State and municipal securities		0		0		138,524		749,674
Residential mortgage-backed securities		37,222		728,980		0		0
Corporate notes		30,970		2,464,225		0		0
Total debt securities AFS		763,774		22,571,385		138,524		749,674
Temporarily impaired equity securities		0		0		0		0
Other-than-temporarily impaired equity securities		0		0		0		0
Total securities available for sale	$	763,774	$	22,571,385	$	138,524	$	749,674
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	448,814	$	24,296,695	$	4,367	$	945,389
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	448,814	$	24,296,695	$	4,367	$	945,389

December 31, 2012	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities Available for Sale
Temporarily impaired debt securities:
U.S. Government Agency securities	$	22,880	$	5,977,120	$	0	$	0
State and municipal securities		19,897		872,738		0		0
Residential mortgage-backed securities		0		0		0		0
Total debt securities AFS		42,777		6,849,858		0		0
Temporarily impaired equity securities		0		0		40,949		133,600
Other-than-temporarily impaired equity securities		0		0		0		0
Total securities available for sale	$	42,777	$	6,849,858	$	40,949	$	133,600
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	38,955	$	7,908,608	$	0	$	0
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	38,955	$	7,908,608	$	0	$	0

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 (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2013, the debt securities with unrealized losses have depreciated 2.7% from the Corporation’s amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. Management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale. Also, no declines in debt securities are deemed to be other-than-temporary.