Investment Securities

6 Months Ended

Jun. 30, 2022

Investment Securities

Note 4. Investment Securities

Note 4.  Investment Securities

Debt securities AFS as of the balance sheet dates consisted of the following:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
June 30, 2022
U.S. GSE debt securities	$	12,000,634	$	0	$	1,107,701	$	10,892,933
U.S. Government securities		41,450,075		0		2,334,482		39,115,593
Taxable Municipal securities		300,000		0		44,577		255,423
Tax-Exempt Municipal securities		7,883,149		13,850		736,794		7,160,205
Agency MBS		134,470,203		1,147		15,068,674		119,402,676
ABS and OAS		3,401,782		0		146,881		3,254,901
CMO		4,413,009		0		128,775		4,284,234
Other investments		4,453,000		21,641		46,762		4,427,879
Total	$	208,371,852	$	36,638	$	19,614,646	$	188,793,844

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2021
U.S. GSE debt securities	$	12,001,978	$	36,024	$	209,504	$	11,828,498
U.S. Government securities		32,374,935		0		333,894		32,041,041
Taxable Municipal securities		300,000		0		1,267		298,733
Tax-Exempt Municipal securities		830,279		1,167		67		831,379
Agency MBS		128,291,487		184,002		1,342,968		127,132,521
ABS and OAS		2,131,610		82,414		0		2,214,024
CMO		1,451,349		0		30,891		1,420,458
Other investments		6,438,000		142,199		4,394		6,575,805
Total	$	183,819,638	$	445,806	$	1,922,985	$	182,342,459

Investments pledged as collateral for repurchase agreements consisted of U.S. GSE debt securities, Agency MBS, ABS and OAS, and CMO.  These repurchase agreements mature daily.  These pledged investments as of the balance sheet dates were as follows:

	Amortized		Fair
	Cost		Value
June 30, 2022	$	58,941,063	$	51,906,145
December 31, 2021		63,045,599		62,256,702

There were no sales of debt securities during the first six months of 2022 or 2021.

The scheduled maturities of debt securities as of the balance sheet dates were as follows:

	Amortized		Fair
	Cost		Value
June 30, 2022
Due in one year or less	$	2,719,000	$	2,729,538
Due from one to five years		49,672,996		47,002,889
Due from five to ten years		10,771,129		9,863,949
Due after ten years		10,738,524		9,794,792
Agency MBS		134,470,203		119,402,676
Total	$	208,371,852	$	188,793,844
December 31, 2021
Due in one year or less	$	3,470,000	$	3,508,582
Due from one to five years		36,860,731		36,619,130
Due from five to ten years		13,065,163		12,942,726
Due after ten years		2,132,257		2,139,500
Agency MBS		128,291,487		127,132,521
Total	$	183,819,638	$	182,342,459

Agency MBS are not due at a single maturity date and have not been allocated to maturity groupings for purposes of the maturity table.

Debt securities with unrealized losses as of the balance sheet dates are presented in the table below. 

	Less than 12 months				12 months or more				Totals
	Fair		Unrealized		Fair		Unrealized		Number of		Fair		Unrealized
	Value		Loss		Value		Loss		Securities		Value		Loss
June 30, 2022
U.S. GSE debt securities	$	6,510,319	$	490,315	$	4,382,614	$	617,386		11	$	10,892,933	$	1,107,701
U.S. Government securities		39,115,593		2,334,482		0		0		54		39,115,593		2,334,482
Taxable Municipal securities		255,423		44,577		0		0		1		255,423		44,577
Tax-Exempt Municipal securities		6,173,358		736,794		0		0		13		6,173,358		736,794
Agency MBS		92,251,657		10,630,897		26,698,638		4,437,777		115		118,950,295		15,068,674
ABS and OAS		3,254,901		146,881		0		0		4		3,254,901		146,881
CMO		3,433,918		55,004		850,316		73,771		5		4,284,234		128,775
Other investments		696,238		46,762		0		0		3		696,238		46,762
Total	$	151,691,407	$	14,485,712	$	31,931,568	$	5,128,934		206	$	183,622,975	$	19,614,646

	Less than 12 months				12 months or more				Totals
	Fair		Unrealized		Fair		Unrealized		Number of		Fair		Unrealized
	Value		Loss		Value		Loss		Securities		Value		Loss
December 31, 2021
U.S. GSE debt securities	$	5,869,117	$	130,883	$	1,921,379	$	78,621		7	$	7,790,496	$	209,504
U.S. Government securities		32,041,041		333,894		0		0		46		32,041,041		333,894
Taxable Municipal securities		298,733		1,267		0		0		1		298,733		1,267
Tax-Exempt Municipal securities		330,212		67		0		0		1		330,212		67
Agency MBS		107,061,452		1,128,587		8,809,493		214,381		84		115,870,945		1,342,968
CMO		1,420,458		30,891		0		0		3		1,420,458		30,891
Other investments		491,606		4,394		0		0		2		491,606		4,394
Total	$	147,512,619	$	1,629,983	$	10,730,872	$	293,002		144	$	158,243,491	$	1,922,985

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 its debt securities for OTTI 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 June 30, 2022 and December 31, 2021, 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 OTTI.