Investment Securities

9 Months Ended

Sep. 30, 2015

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, 2015, and December 31, 2014, were as follows:

Securities Available For Sale:

September 30, 2015	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	40,069,069	$	1,093,040	$	55,670	$	41,106,439
State and municipal securities		1,962,594		0		16,105		1,946,489
Residential mortgage-backed securities		3,855,082		164,157		0		4,019,239
Corporate notes		2,496,175		9,525		1,030		2,504,670
Total debt securities AFS		48,382,920		1,266,722		72,805		49,576,837
Equity securities		12,000		0		0		12,000
Total securities AFS	$	48,394,920	$	1,266,722	$	72,805	$	49,588,837

December 31, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Government Agency securities	$	45,121,060	$	758,874	$	387,009	$	45,492,925
State and municipal securities		880,580		0		5,913		874,667
Residential mortgage-backed securities		4,757,738		215,276		1,370		4,971,644
Corporate notes		2,495,765		4,255		1,300		2,498,720
Total securities AFS	$	53,255,143	$	978,405	$	395,592	$	53,837,956

Securities Held to Maturity:

September 30, 2015	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	54,814,561	$	1,052,467	$	54,016	$	55,813,012
Residential mortgage-backed securities		6,521,995		301,545		0		6,823,540
Total securities HTM	$	61,336,556	$	1,354,012	$	54,016	$	62,636,552

December 31, 2014	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	53,058,749	$	958,434	$	87,772	$	53,929,411
Residential mortgage-backed securities		8,529,070		382,923		0		8,911,993
Total securities HTM	$	61,587,819	$	1,341,357	$	87,772	$	62,841,404

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, 2015	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	$	660	$	999,340	$	55,010	$	6,944,990
State and municipal securities		16,105		1,946,490		0		0
Residential mortgage-backed securities		0		0		0		0
Corporate notes		1,030		498,970		0		0
Total debt securities available for sale		17,795		3,444,800		55,010		6,944,990
Equity securities		0		0		0		0
Total securities available for sale	$	17,795	$	3,444,800	$	55,010	$	6,944,990
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	49,032	$	7,384,830	$	4,984	$	1,111,926
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	49,032	$	7,384,830	$	4,984	$	1,111,926

December 31, 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	$	17,172	$	2,630,919	$	369,837	$	19,667,408
State and municipal securities		0		0		5,913		874,667
Residential mortgage-backed securities		1,300		498,700		0		0
Corporate notes		0		0		1,370		594,923
Total securities available for sale	$	18,472	$	3,129,619	$	377,120	$	21,136,998
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	34,956	$	9,199,455	$	52,816	$	4,130,041
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	34,956	$	9,199,455	$	52,816	$	4,130,041

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, 2015, the debt securities with unrealized losses have depreciated 0.7% 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.