Note 3 - Securities

9 Months Ended

Sep. 30, 2014

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 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of September 30, 2014
Equity Securities	$	102,212	$	13,977	$	(15,298	)	$	100,891
Debt Securities:
U. S. government agencies		16,860,032		-		(593,261	)		16,266,771
Municipals		14,348,081		148,064		(129,926	)		14,366,219
Government sponsored mortgage-backed securities		66,965,907		252,102		(1,236,401	)		65,981,608
	$	98,276,232	$	414,143	$	(1,974,886	)	$	96,715,489

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2013
Equity Securities	$	102,212	$	16,007	$	(18,913	)	$	99,306
Debt Securities:
U. S. government agencies		33,198,865		-		(1,437,478	)		31,761,387
Municipals		14,133,821		18,827		(660,021	)		13,492,627
Corporates		990,663		3,609		-			994,272
Government sponsored mortgage-backed securities		53,245,297		265,038		(2,165,242	)		51,345,093
	$	101,670,858	$	303,481	$	(4,281,654	)	$	97,692,685

Maturities of available-for-sale debt securities as of September 30, 2014:

	Amortized Cost		Approximate Fair Value
1-5 years	$	8,513,565	$	8,322,947
6-10 years		14,973,074		14,533,744
After 10 years		7,721,474		7,776,299
Government sponsored mortgage-backed securities not due on a single maturity date		66,965,907		65,981,608
	$	98,174,020	$	96,614,598

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, 2014
Debt Securities:
Government sponsored mortgage-backed securities	$	65,352	$	1,742	$	-	$	67,094

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Approximate Fair Value
As of December 31, 2013
Debt Securities:
Government sponsored mortgage-backed securities	$	79,162	$	1,927	$	-	$	81,089

Maturities of held-to-maturity securities as of September 30, 2014:

	Amortized Cost		Approximate Fair Value
Government sponsored mortgage-backed securities not due on a single maturity date	$	65,352	$	67,094

The book value of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $45,982,867 and $44,717,470 as of September 30, 2014 and December 31, 2013, respectively. The approximate fair value of pledged securities amounted to $44,912,238 and $42,807,840 as of September 30, 2014 and December 31, 2013, 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 $9,137 and $219,132 as of September 30, 2014 and September 30, 2013, respectively, were realized from the sale of available-for-sale securities. The tax effect of these net gains was $3,381 and $81,079 as of September 30, 2014 and September 30, 2013, 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, 2014 and December 31, 2013, was $69,329,238 and $85,712,067, respectively, which is approximately 72% and 88% 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 table shows gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2014 and December 31, 2013.

	September 30, 2014
	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	$	-	$	-		$	32,629	$	(15,298	)	$	32,629	$	(15,298	)
U. S. government agencies		-		-			16,266,771		(593,261	)		16,266,771		(593,261	)
Municipals		1,560,280		(3,087	)		6,485,567		(126,839	)		8,045,847		(129,926	)
Government sponsored mortgage-backed securities		11,213,100		(66,485	)		33,770,891		(1,169,916	)		44,983,991		(1,236,401	)
	$	12,773,380	$	(69,572	)	$	56,555,858	$	(1,905,314	)	$	69,329,238	$	(1,974,886	)

	December 31, 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	$	-	$	-		$	29,014	$	(18,913	)	$	29,014	$	(18,913	)
U. S. government agencies		24,731,730		(916,208	)		7,029,657		(521,270	)		31,761,387		(1,437,478	)
Municipals		10,460,662		(534,440	)		1,701,215		(125,581	)		12,161,877		(660,021	)
Government sponsored mortgage-backed securities		32,074,646		(1,655,296	)		9,685,143		(509,946	)		41,759,789		(2,165,242	)
	$	67,267,038	$	(3,105,944	)	$	18,445,029	$	(1,175,710	)	$	85,712,067	$	(4,281,654	)