Securities

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Securities

The amortized cost and fair value of securities available-for-sale and held to maturity at June 30, 2015 and December 31, 2014 are summarized as follows:

	June 30, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Debt securities available-for-sale:
U.S. Government agencies	$	521,020	$	5,423	$	-	$	526,443
State and municipal securities		4,365,290		112,960		(13,223)		4,465,027
Mortgage-backed securities:
Residential mortgage guaranteed by GNMA or FNMA		15,149,059		21,400		(52,476)		15,117,983
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		54,265,213		259,146		(152,376)		54,371,983
	$	74,300,582	$	398,929	$	(218,075)	$	74,481,436
Debt securities held to maturity:
Mortgage-backed securities:
Residential mortgage guaranteed by GNMA or FNMA	$	22,131	$	285	$	(6)	$	22,410

	December 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Debt securities available-for-sale:
U.S. Government agencies	$	560,183	$	2,840	$	-	$	563,023
State and municipal securities		7,028,388		302,697		-		7,331,085
Mortgage-backed securities:
Residential mortgage guaranteed by GNMA or FNMA		16,852,496		44,954		(9,179)		16,888,271
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		62,278,948		273,571		(141,989)		62,410,530
	$	86,720,015	$	624,062	$	(151,168)	$	87,192,909
Debt securities held to maturity:
Mortgage-backed securities:
Residential mortgage guaranteed by GNMA or FNMA	$	25,428	$	274	$	-	$	25,702

At June 30, 2015, securities with a fair value totaling approximately $ 64 million were pledged to secure public funds, securities sold under agreements to repurchase, as collateral for federal funds purchased from other financial institutions and serve as collateral for borrowings at the Federal Reserve Discount Window and Federal Home Loan Bank.

For the six months ended June 30, 2015 and 2014, there were available-for-sale securities sold with proceeds totaling $4,559,000 and $9,229,167, respectively, which resulted in gross gains realized of $113,296 and $402,473, respectively.

The amortized cost and estimated market value of securities at June 30, 2015, 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 call or prepayment penalties.

	Securities Available-for-Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	-	$	-	$	-	$	-
Due from one year to five years		605,826		633,798		-		-
Due from five years to ten years		2,062,233		2,095,353		-		-
Due after ten years		2,218,251		2,262,319		-		-
		4,886,310		4,991,470		-		-
Mortgage-backed securities		69,414,272		69,489,966		22,131		22,410
	$	74,300,582	$	74,481,436	$	22,131	$	22,410

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of June 30, 2015 and as of December 31, 2014:

	As of June 30, 2015
	Less than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
State and municipal securities	$	623,094	$	(6,722)	$	545,635	$	(6,501)	$	1,168,729	$	(13,223)
Mortgage-backed securities:
Residential mortgage guaranteed by GNMA or FNMA		11,531,175		(47,716)		1,281,475		(4,760)		12,812,650		(52,476)
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		13,892,803		(99,823)		11,134,700		(52,553)		25,027,503		(152,376)
	$	26,047,072	$	(154,261)	$	12,961,810	$	(63,814)	$	39,008,882	$	(218,075)

	As of December 31, 2014
	Less than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Mortgage-backed securities:
Residential mortgage guaranteed by GNMA or FNMA	$	7,018,137	$	(9,179)	$	-	$	-	$	7,018,137	$	(9,179)
Collateralized mortgage obligations issued or guaranteed by U.S. Government agencies or sponsored agencies		9,504,525		(52,831)		17,546,169		(89,158)		27,050,694		(141,989)
	$	16,522,662	$	(62,010)	$	17,546,169	$	(89,158)	$	34,068,831	$	(151,168)

Upon acquisition of a security, the Bank determines the appropriate impairment model that is applicable.  If the security is a beneficial interest in securitized financial assets, the Bank uses the beneficial interests in securitized financial assets impairment model.  If the security is not a beneficial interest in securitized financial assets, the Bank uses the debt and equity securities impairment model.  The Bank conducts periodic reviews to evaluate each security to determine whether an other-than-temporary impairment has occurred.  The Bank does not have any securities that have been classified as other-than-temporarily-impaired at June 30, 2015 or December 31, 2014.

At June 30, 2015, the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows:

State and municipal securities: At June 30, 2015, two investments in obligations of state and municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank has the intent and ability to hold those investments for a time necessary to recover their amortized cost bases, which may be until maturity, the Bank does not consider those investments to be other-than-temporarily impaired at June 30, 2015.

Mortgage-backed securities: At June 30, 2015, sixteen investments in residential mortgage-backed securities had unrealized losses.  This impairment is believed to be caused by the current interest rate environment.  The contractual cash flows of those investments are guaranteed or issued by an agency of the U.S. Government.  Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem those investments to be other-than-temporarily impaired at June 30, 2015.