Investment Securities

6 Months Ended

Jun. 30, 2014

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 June 30, 2014, and December 31, 2013, were as follows:

Securities Available For Sale:

June 30, 2014		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	41,480,003	$	504,049	$	419,640	$	41,564,412
State and municipal securities		883,677		0		25,254		858,423
Residential mortgage-backed securities		7,373,772		406,216		10,157		7,769,831
Corporate notes		2,495,520		2,860		375		2,498,005
Total securities AFS	$	52,232,972	$	913,125	$	455,426	$	52,690,671

December 31, 2013		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	24,544,975	$	0	$	964,741	$	23,580,234
State and municipal securities		1,531,693		2,219		93,533		1,440,379
Residential mortgage-backed securities		8,459,377		378,150		42,036		8,795,491
Corporate notes		2,495,294		0		25,779		2,469,515
Total debt securities AFS		37,031,339		380,369		1,126,089		36,285,619
Equity securities		43,749		131,400		0		175,149
Total securities AFS	$	37,075,088	$	511,769	$	1,126,089	$	36,460,768

Securities Held to Maturity:

June 30, 2014		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	48,715,867	$	973,975	$	57,037	$	49,632,805
Residential mortgage-backed securities		9,712,835		422,255		0		10,135,090
Total securities HTM	$	58,428,702	$	1,396,230	$	57,037	$	59,767,895

December 31, 2013		Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	48,701,733	$	491,808	$	433,078	$	48,760,463
Residential mortgage-backed securities		10,922,306		348,198		11,821		11,258,683
Total securities HTM	$	59,624,039	$	840,006	$	444,899	$	60,019,146

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:

June 30, 2014	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	$	0	$	0	$	419,640	$	19,632,303
State and municipal securities		0		0		25,254		858,423
Residential mortgage-backed securities		0		0		10,157		660,930
Corporate notes		0		0		375		499,625
Total securities available for sale	$	0	$	0	$	455,426	$	21,651,281
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	2,604	$	2,284,718	$	54,433	$	6,285,373
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	2,604	$	2,284,718	$	54,433	$	6,285,373

December 31, 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	$	902,051	$	22,642,924	$	62,690	$	937,310
State and municipal securities		0		0		93,533		793,161
Residential mortgage-backed securities		42,036		690,106		0		0
Corporate notes		25,779		2,469,515		0		0
Total debt securities AFS		969,866		25,802,545		156,223		1,730,471
Temporarily impaired equity securities		0		0		0		0
Other-than-temporarily impaired equity securities		0		0		0		0
Total securities available for sale	$	969,866	$	25,802,545	$	156,223	$	1,730,471
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	412,787	$	22,496,117	$	20,291	$	2,359,232
Residential mortgage-backed securities		11,821		1,368,200		0		0
Total securities held to maturity	$	424,608	$	23,864,317	$	20,291	$	2,359,232

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 June 30, 2014, the debt securities with unrealized losses have depreciated 1.6% 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.