Note 3 - Securities

9 Months Ended

Sep. 30, 2013

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 approximate fair values of securities classified as available-for-sale are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of September 30, 2013
Equity Securities	$	102,212	$	6,640	$	(21,207	)	$	87,645
Debt Securities:
U. S. government agencies		38,811,258		6,082		(1,238,748	)		37,578,592
Municipals		13,908,184		21,746		(570,508	)		13,359,422
Corporates		989,707		-		(4,680	)		985,027
Government sponsored mortgage-backed securities		55,138,807		446,536		(1,725,107	)		53,860,236
	$	108,950,168	$	481,004	$	(3,560,250	)	$	105,870,922

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2012
Equity Securities	$	102,212	$	306	$	(31,604	)	$	70,914
Debt Securities:
U. S. government agencies		38,188,554		202,213		(39,706	)		38,351,061
Municipals		10,212,376		250,269		(84,456	)		10,378,189
Corporates		1,839,976		67,889		-			1,907,865
Government sponsored mortgage-backed securities		50,366,374		1,304,242		(398,001	)		51,272,615
	$	100,709,492	$	1,824,919	$	(553,767	)	$	101,980,644

Maturities of available-for-sale debt securities as of September 30, 2013:

	Amortized Cost		Approximate Fair Value
1-5 years	$	14,794,810	$	14,626,622
6-10 years		30,073,248		28,849,588
Over 10 years		8,841,091		8,446,831
Government sponsored mortgage-backed securities not due on a single maturity date		55,138,807		53,860,236
	$	108,847,956	$	105,783,277

The amortized cost and approximate fair values of securities classified as held to maturity are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized  (Losses)		Approximate Fair Value
As of September 30, 2013
Debt Securities:
Government sponsored mortgage-backed securities	$	84,188	$	3,875	$	-	$	88,063
	$	84,188	$	3,875	$	-	$	88,063

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Approximate Fair Value
As of December 31, 2012
Debt Securities:
Government sponsored mortgage-backed securities	$	181,042	$	12,440	$	-	$	193,482

Maturities of held-to-maturity securities as of September 30, 2013:

	Amortized Cost		Approximate Fair Value
Government sponsored mortgage-backed securities not due on a single maturity date	$	84,188	$	88,063
	$	84,188	$	88,063

The book value of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $49,095,490 and $56,022,882 as of September 30, 2013 and December 31, 2012, respectively. The approximate fair value of pledged securities amounted to $47,751,211 and $57,384,685 as of September 30, 2013 and December 31, 2012, respectively.

Realized gains and losses are recorded as net securities gains. Gains on sales of securities are determined on the specific identification method. Gross gains of $219,132 and $137,715 as of September 30, 2013 and September 30, 2012, respectively, were realized from the sale of available-for-sale securities. The tax effect of these net gains was $81,079 and $50,955 as of September 30, 2013 and September 30, 2012, respectively.

The Company evaluates all securities quarterly to determine if any unrealized losses are deemed to be other than temporary. Certain investment securities are valued at less than their historical cost. These declines are primarily the result of the rate for these investments yielding less than current market rates, or declines in stock prices of equity securities. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. It is management’s intent to hold the debt securities to maturity or until recovery of the unrealized loss. Should the impairment of any of these debt securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified, to the extent the loss is related to credit issues, and to other comprehensive income to the extent the decline on debt securities is related to other factors and the Company does not intend to sell the security prior to recovery of the unrealized loss.

          Certain other investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at September 30, 2013 and December 31, 2012, was $86,897,001 and $30,121,495, respectively, which is approximately 82% and 29% of the Company’s investment portfolio. These declines primarily resulted from changes in market interest rates and failure of certain investments to meet projected earnings targets.

The following tables show gross unrealized losses and approximate fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012.

	September 30, 2013
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized  Losses
Equity Securities	$	-	$	-		$	26,720	$	(21,207	)	$	26,720	$	(21,207	)
U. S. government agencies		35,825,183		(1,238,747	)		-		-			35,825,183		(1,238,747	)
Municipals		10,303,846		(536,812	)		516,704		(33,696	)		10,820,550		(570,508	)
Corporates		985,026		(4,680	)		-		-			985,026		(4,680	)
Government sponsored mortgage-backed securities		32,685,494		(1,470,320	)		6,554,028		(254,788	)		39,239,522		(1,725,108	)
	$	79,799,549	$	(3,250,559	)	$	7,097,452	$	(309,691	)	$	86,897,001	$	(3,560,250	)

	December 31, 2012
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Equity Securities	$	-	$	-		$	39,930	$	(31,604	)	$	39,930	$	(31,604	)
U. S. government agencies		7,298,687		(39,706	)		-		-			7,298,687		(39,706	)
Municipals		2,648,047		(76,318	)		538,300		(8,138	)		3,186,347		(84,456	)
Government sponsored mortgage-backed securities		19,596,531		(398,001	)		-		-			19,596,531		(398,001	)
	$	29,543,265	$	(514,025	)	$	578,230	$	(39,742	)	$	30,121,495	$	(553,767	)