Investment Securities

3 Months Ended

Mar. 31, 2019

Schedule of Investments [Abstract]

Investment Securities

NOTE 3

Investment Securities

Debt 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 March 31, 2019, and December 31, 2018, were as follows:

Securities Available For Sale:

March 31, 2019	Amortized Cost	Unrealized Gains	Unrealized Losses	Estimated Fair Value
U.S. government treasury securities	$  3,963,014	$       9,560	$       6,904	$  3,965,670
U.S. government agency securities	46,786,921	563,946	466,017	46,884,850
State and municipal securities	7,371,821	123,149	16,313	7,478,657
Residential mortgage-backed securities	4,587,762	48,726	3,586	4,632,902
Total debt securities AFS	$62,709,518	$   745,381	$   492,820	$62,962,079

December 31, 2018	Amortized Cost	Unrealized Gains	Unrealized Losses	Estimated Fair Value
U.S. government treasury securities	$      982,044	$              0	$      27,474	$      954,570
U.S. government agency securities	45,823,595	264,567	881,157	45,207,005
State and municipal securities	7,394,278	30,579	46,922	7,377,935
Residential mortgage-backed securities	4,769,668	21,579	17,180	4,774,067
Total debt securities AFS	$ 58,969,585	$   316,725	$    972,733	$ 58,313,577

Securities Held to Maturity:

March 31, 2019	Amortized Cost	Unrealized Gains	Unrealized Losses	Estimated Fair Value
State and municipal securities	$29,216,837	$ 391,743	$   26,272	$29,582,308
Residential mortgage-backed securities	5,968,046	124,896	883	6,092,059
Total securities HTM	$35,184,883	$ 516,639	$   27,155	$35,674,367

December 31, 2018	Amortized Cost	Unrealized Gains	Unrealized Losses	Estimated Fair Value
State and municipal securities	$ 30,582,785	$ 208,480	$   67,434	$ 30,723,831
Residential mortgage-backed securities	6,244,288	49,490	7,282	6,286,496
Total securities HTM	$ 36,827,073	$ 257,970	$   74,716	$ 37,010,327

The amortized cost and estimated fair value of securities at March 31, 2019, and December 31, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

March 31, 2019
Available for Sale:	Amortized Cost	Estimated Fair Value
Amounts maturing in:
One year or less	$  3,140,872	$  3,125,810
After one through five years	34,952,755	35,257,684
After five through ten years	19,183,448	19,097,610
After ten years	5,432,443	5,480,975
Total debt securities AFS	$62,709,518	$62,962,079
Held to Maturity:	Amortized Cost	Estimated Fair Value
Amounts maturing in:
One year or less	$ 6,480,829	$ 6,489,447
After one through five years	11,885,478	12,001,454
After five through ten years	11,125,453	11,354,541
After ten years	5,693,123	5,828,925
Total securities HTM	$35,184,883	$35,674,367

December 31, 2018
Available for Sale:	Amortized Cost	Estimated Fair Value
Amounts maturing in:
One year or less	$   2,147,059	$   2,124,645
After one through five years	29,691,474	29,674,236
After five through ten years	21,585,776	20,968,318
After ten years	5,545,276	5,546,378
	5
Total debt securities AFS	$ 58,969,585	$ 58,313,577
Held to Maturity:	Amortized Cost	Estimated Fair Value
Amounts maturing in:
One year or less	$   6,483,464	$   6,497,910
After one through five years	12,885,021	12,961,209
After five through ten years	11,035,146	11,097,382
After ten years	6,423,442	6,453,826
Total securities HTM	$ 36,827,073	$ 37,010,327

The following tables summarize the activity of security sales by intention and year for the three months ended March 31, 2019, and 2018.

Securities Available For Sale:

	March 31, 2019	March 31, 2018
Proceeds of sales	$               0	$               0
Gross gains	$               0	$               0
Gross losses	0	0
Net gains (losses) on sales of  available for sale securities	$               0	$               0

Securities Held to Maturity:

	March 31, 2019	March 31, 2018
Amortized cost of securities sold	$               0	$                0
Proceeds from sales	0	0
Net gains on sales of  held to maturity securities	$               0	$                0

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:

March 31, 2019		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 treasury securities	$	0	$	0	$	6,904	$	975,660
U.S. government agency securities		0		0		466,017		22,346,327
State and municipal securities		0		0		16,313		1,831,683
Residential mortgage-backed securities		0		0		3,586		122,791
Total debt securities available for sale	$	0	$	0	$	492,820	$	25,276,461
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	0	$	0	$	26,272	$	2,515,563
Residential mortgage-backed securities		0		0		883		304,019
Total securities held to maturity	$	0	$	0	$	27,155	$	2,819,582

December 31, 2018		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 treasury securities	$	0	$	0	$	27,474	$	954,570
U.S. government agency securities		33,077		6,073,337		848,080		20,015,052
State and municipal securities		3,209		306,792		43,713		1,813,173
Residential mortgage-backed securities		14,199		3,032,237		2,981		129,410
Total debt securities available for sale	$	50,485	$	9,412,366	$	922,248	$	22,912,205
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	20,209	$	7,359,536	$	47,225	$	2,782,627
Residential mortgage-backed securities		5,671		879,487		1,611		89,464
Total securities held to maturity	$	25,880	$	8,239,023	$	48,836	$	2,872,091

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 March 31, 2019, thirty-four 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.