Investment Securities (Tables)

12 Months Ended

Dec. 31, 2013

Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio

The aggregate amortized cost and fair values of the available-for-sale securities portfolio are as follows:


Available-for-sale securities December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

U.S. Government agencies	$	9,383,854	$	10,627	$	(86,412	)	$	9,308,069
State and municipal obligations		27,690,034		109,280		(1,242,426	)		26,556,888
Certificates of deposits		1,736,000		9,039		—			1,745,039
Auction rate security		912,000		—		—			912,000

	$	39,721,888	$	128,946	$	(1,328,838	)	$	38,521,996


Available-for-sale securities December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value

U.S. Government agencies	$	9,411,627	$	78,178	$	(25,990	)	$	9,463,815
State and municipal obligations		23,480,871		412,759		(44,102	)		23,849,528
Certificates of deposits		1,985,000		3,271		(1,094	)		1,987,177
Auction rate security		1,400,000		—		—			1,400,000

	$	36,277,498	$	494,208	$	(71,186	)	$	36,700,520

Gross Realized Gains and Gross Realized Losses on Sales of Securities

The cost of securities sold is based on actual net cost. Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows:


	For the years ended December 31,
	2013			2012

Gross realized gains	$	285,286		$	959,588
Gross realized losses		(1,580	)		(1,828	)

Net realized gains	$	283,706		$	957,760

Aggregate proceeds	$	9,432,875		$	15,225,843

Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity

The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2013 are shown below:


	Amortized Cost		Fair Value
Due in one year or less	$	5,882,454	$	5,881,588
Due after one year through five years		15,851,356		15,785,063
Due after five through ten years		15,416,075		14,539,307
Due after ten years		2,572,003		2,316,038

	$	39,721,888	$	38,521,996

Unrealized Loss Positions

Bonds with unrealized loss positions at December 31, 2012 included three certificates of deposit, 10 municipal securities and two federal agency securities.


	Less than 12 months				12 months or more				Total
December 31, 2013	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	4,807,632	$	66,984	$	1,462,360	$	19,428	$	6,269,992	$	86,412
States and municipal obligations		14,255,426		1,120,034		2,305,821		122,392		16,561,247		1,242,426

Total temporarily impaired securities	$	19,063,058	$	1,187,018	$	3,768,181	$	141,820	$	22,831,239	$	1,328,838


	Less than 12 months				12 months or more				Total
December 31, 2012	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	1,080,438	$	25,990	$	—	$	—	$	1,080,438	$	25,990
States and municipal obligations		2,863,106		37,731		1,037,825		6,371		3,900,931		44,102
Certificates of deposits		742,906		1,094		—		—		742,906		1,094

Total temporarily impaired securities	$	4,686,450	$	64,815	$	1,037,825	$	6,371	$	5,724,275	$	71,186

Cumulative Credit Related Other-Than Temporary Impairment Losses Recognized on One Debt Security

The following table summarizes cumulative credit-related other-than temporary impairment losses recognized on the one auction rate security held by the Company (no other-than-temporary-impairment was recognized for the year ended December 31, 2012):


	For the year ended
	December 31, 2013
Balance, beginning of the period	$	—
Impairment losses recognized during the period		288,000
Realized losses from sales		—

Balance, end of period	$	288,000

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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