Investment Securities

9 Months Ended

Sep. 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 September 30, 2014, and December 31, 2013, were as follows:

Securities Available For Sale:

September 30, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	41,476,551	$	411,140	$	477,936	$	41,409,755
State and municipal securities		882,133		0		15,711		866,422
Residential mortgage-backed securities		5,110,980		215,740		13,772		5,312,948
Corporate notes		2,495,647		14,113		2,085		2,507,675
Total securities AFS	$	49,965,311	$	640,993	$	509,504	$	50,096,800

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:

September 30, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	49,665,676	$	1,057,457	$	41,890	$	50,681,243
Residential mortgage-backed securities		9,071,609		367,037		0		9,438,646
Total securities HTM	$	58,737,285	$	1,424,494	$	41,890	$	60,119,889

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:

September 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	$	3,118	$	1,016,930	$	474,818	$	19,569,831
State and municipal securities		0		0		15,711		866,422
Residential mortgage-backed securities		0		0		13,772		617,645
Corporate notes		0		0		2,085		497,915
Total securities available for sale	$	3,118	$	1,016,930	$	506,386	$	21,551,813
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	2,840	$	3,865,176	$	39,050	$	4,158,372
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	2,840	$	3,865,176	$	39,050	$	4,158,372

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 September 30, 2014, the debt securities with unrealized losses have depreciated 1.8% 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.