Investment Securities

6 Months Ended

Jun. 30, 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 June 30, 2019, and December 31, 2018, were as follows:

Securities Available For Sale:

June 30, 2019	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. government treasury securities	$	3,966,170	$	55,360	$	0	$	4,021,530
U.S. government agency securities		46,764,074		1,007,002		93,047		47,678,029
State and municipal securities		7,349,504		180,457		1,866		7,528,095
Residential mortgage-backed securities		14,360,334		126,359		1,713		14,484,980
Total debt securities AFS	$	72,440,082	$	1,369,178	$	96,626	$	73,712,634

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:

June 30, 2019	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
State and municipal securities	$	26,893,531	$	492,712	$	11,212	$	27,375,031
Residential mortgage-backed securities		5,652,541		182,407		0		5,834,948
Total securities HTM	$	32,546,072	$	675,119	$	11,212	$	33,209,979

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 June 30, 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.

June 30, 2019
Available for Sale:	Amortized Cost		Estimated Fair Value
Amounts maturing in:
One year or less	$	4,003,638	$	4,001,488
After one through five years		35,076,017		35,858,294
After five through ten years		18,933,752		19,302,368
After ten years		14,426,675		14,550,484
Total debt securities AFS	$	72,440,082	$	73,712,634
Held to Maturity:		Amortized Cost		Estimated Fair Value
Amounts maturing in:
One year or less	$	4,687,048	$	4,698,641
After one through five years		12,284,059		12,493,184
After five through ten years		10,638,493		10,894,566
After ten years		4,936,472		5,123,588
Total securities HTM	$	32,546,072	$	33,209,979

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
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

There were no securities sold during the three and six months ended June 30, 2019, and 2018.

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, 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	$	0	$	0
U.S. government agency securities		0		0		93,047		9,207,406
State and municipal securities		0		0		1,866		870,691
Residential mortgage-backed securities		0		0		1,713		116,796
Total debt securities available for sale	$	0	$	0	$	96,626	$	10,194,893
Securities Held to Maturity
Temporarily impaired debt securities:
State and municipal securities	$	0	$	0	$	11,212	$	1,488,615
Residential mortgage-backed securities		0		0		0		0
Total securities held to maturity	$	0	$	0	$	11,212	$	1,488,615

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 June 30, 2019, thirteen debt securities with unrealized losses have depreciated 0.9% 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.