4. Investment Securities

3 Months Ended

Mar. 31, 2016

Investment Securities

Note 4. Investment Securities

Securities available-for-sale (AFS) and held-to-maturity (HTM) as of the balance sheet dates consisted of the following:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities AFS	Cost		Gains		Losses		Value
March 31, 2016
U.S. Government sponsored enterprise (GSE) debt securities	$	12,817,362	$	115,533	$	0	$	12,932,895
Agency mortgage-backed securities (Agency MBS)		13,515,656		105,722		15,674		13,605,704
Other investments		2,973,000		60,522		0		3,033,522
	$	29,306,018	$	281,777	$	15,674	$	29,572,121
December 31, 2015
U.S. GSE debt securities	$	12,832,059	$	22,523	$	22,139	$	12,832,443
Agency MBS		10,734,121		0		69,637		10,664,484
Other investments		2,973,000		5,046		4,573		2,973,473
	$	26,539,180	$	27,569	$	96,349	$	26,470,400
March 31, 2015
U.S. GSE debt securities	$	18,904,234	$	102,297	$	2,553	$	19,003,978
U.S. Government securities		3,994,362		14,115		0		4,008,477
Agency MBS		8,716,244		77,867		0		8,794,111
	$	31,614,840	$	194,279	$	2,553	$	31,806,566
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities HTM	Cost		Gains		Losses		Value*
March 31, 2016
States and political subdivisions	$	45,551,714	$	683,286	$	0	$	46,235,000
December 31, 2015
States and political subdivisions	$	43,354,419	$	788,581	$	0	$	44,143,000
March 31, 2015
States and political subdivisions	$	42,831,982	$	350,018	$	0	$	43,182,000

*Method used to determine fair value of HTM securities rounds values to nearest thousand.

U.S. GSE debt securities, Agency MBS securities and certificates of deposit (CDs) held for investment with a book value of $27,172,084 and a fair value of $27,450,798 collateralized repurchase agreements at March 31, 2016.  These repurchase agreements mature daily.

The scheduled maturities of debt securities AFS were as follows:

	Amortized		Fair
	Cost		Value
March 31, 2016
Due in one year or less	$	3,063,730	$	3,071,337
Due from one to five years		12,481,632		12,650,080
Due from five to ten years		245,000		245,000
Agency MBS		13,515,656		13,605,704
	$	29,306,018	$	29,572,121
December 31, 2015
Due in one year or less	$	3,077,544	$	3,086,317
Due from one to five years		12,482,515		12,474,599
Due from five to ten years		245,000		245,000
Agency MBS		10,734,121		10,664,484
	$	26,539,180	$	26,470,400
March 31, 2015
Due in one year or less	$	4,016,828	$	4,021,755
Due from one to five years		18,881,768		18,990,700
Agency MBS		8,716,244		8,794,111
	$	31,614,840	$	31,806,566

Because the actual maturities of Agency MBS usually differ from their contractual maturities due to the right of borrowers to prepay the underlying mortgage loans, usually without penalty, those securities are not presented in the table by contractual maturity date.

The scheduled maturities of debt securities HTM were as follows:

	Amortized		Fair
	Cost		Value*
March 31, 2016
Due in one year or less	$	30,042,445	$	30,042,000
Due from one to five years		3,864,268		4,035,000
Due from five to ten years		3,235,317		3,407,000
Due after ten years		8,409,684		8,751,000
	$	45,551,714	$	46,235,000
December 31, 2015
Due in one year or less	$	27,731,133	$	27,731,000
Due from one to five years		4,015,553		4,213,000
Due from five to ten years		3,149,531		3,347,000
Due after ten years		8,458,202		8,852,000
	$	43,354,419	$	44,143,000
March 31, 2015
Due in one year or less	$	29,485,512	$	29,486,000
Due from one to five years		4,419,264		4,506,000
Due from five to ten years		2,246,370		2,334,000
Due after ten years		6,680,836		6,856,000
	$	42,831,982	$	43,182,000

*Method used to determine fair value of HTM securities rounds values to nearest thousand.

 There were no debt securities HTM in an unrealized loss position as of the balance sheet dates.  Debt securities AFS with unrealized losses as of the balance sheet dates are presented in the table below.

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
March 31, 2016
Agency MBS	$	3,064,237	$	15,674	$	0	$	0	$	3,064,237	$	15,674
December 31, 2015
U.S. GSE debt securities	$	6,243,373	$	22,139	$	0	$	0	$	6,243,373	$	22,139
Agency MBS		10,664,484		69,637		0		0		10,664,484		69,637
Other investments		1,483,427		4,573		0		0		1,483,427		4,573
	$	18,391,284	$	96,349	$	0	$	0	$	18,391,284	$	96,349
March 31, 2015
U.S. GSE debt securities	$	0	$	0	$	997,447	$	2,553	$	997,447	$	2,553

Debt securities in the table above consisted of five Agency MBS securities at March 31, 2016, six U.S. GSE debt securities, twelve Agency MBS and six certificates of deposit (CDs) held for investment at December 31, 2015, and one U.S. GSE debt security at March 31, 2015.  The unrealized losses for all periods presented were principally attributable to changes in prevailing interest rates for similar types of securities and not deterioration in the creditworthiness of the issuer.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions, or adverse developments relating to the issuer, warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than the carrying value, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value.  In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer's financial condition.  As of March 31, 2016, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be other than temporary.