Note 3 - Securities

3 Months Ended

Mar. 31, 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 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 March 31, 2015
Equity Securities	$	102,212	$	16,247	$	(13,114	)	$	105,345
Debt Securities:
U. S. government agencies		8,532,280		-		(80,050	)		8,452,230
Municipals		16,147,060		222,372		(45,703	)		16,323,729
Corporates		3,940,947		-		(60,947	)		3,880,000
Government sponsored mortgage-backed securities and SBA loan pools		58,464,508		416,508		(386,580	)		58,494,436
	$	87,187,007	$	655,127	$	(586,394	)	$	87,255,740

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2014
Equity Securities	$	102,212	$	16,121	$	(13,310	)	$	105,023
Debt Securities:
U. S. government agencies		10,528,055		-		(271,282	)		10,256,773
Municipals		15,474,316		185,747		(70,173	)		15,589,890
Government sponsored mortgage-backed securities and SBA loan pools		61,075,181		235,977		(794,859	)		60,516,299
	$	87,179,764	$	437,845	$	(1,149,624	)	$	86,467,985

Maturities of available-for-sale debt securities as of March 31, 2015:

	Amortized Cost		Approximate Fair Value
< 1 year		285,000		285,379
1-5 years		4,728,525		4,710,730
6-10 years		10,897,302		10,869,772
After 10 years		12,709,460		12,790,078
Government sponsored mortgage-backed securities not due on a single maturity date		58,464,508		58,494,436
	$	87,084,795	$	87,150,395

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 March 31, 2015
Debt Securities:
Government sponsored mortgage-backed securities	$	56,523	$	1,485	$	-	$	58,008

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Approximate Fair Value
As of December 31, 2014
Debt Securities:
Government sponsored mortgage-backed securities	$	60,993	$	1,626	$	-	$	62,619

Maturities of held-to-maturity securities as of March 31, 2015:

	Amortized Cost		Approximate Fair Value
Government sponsored mortgage-backed securities not due on a single maturity date	$	56,523	$	58,008

The book value of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $70,600,904 and $53,355,716 as of March 31, 2015 and December 31, 2014, respectively. The approximate fair value of pledged securities amounted to $70,644,189 and $52,907,065 as of March 31, 2015 and December 31, 2014, 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 $6,797 and $3,088 as of March 31, 2015 and March 31, 2014, respectively, were realized from the sale of available-for-sale securities. The tax effect of these net gains was $2,515 and $1,142 as of March 31, 2015 and March 31, 2014, 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 March 31, 2015 and December 31, 2014, was $45,713,465 and $60,733,191, respectively, which is approximately 52% and 70% 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 March 31, 2015 and December 31, 2014.

	March 31, 2015
	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	$	-	$	-		$	34,813	$	(13,114	)	$	34,813	$	(13,114	)
U. S. government agencies		2,955,390		(26,890	)		5,496,840		(53,160	)		8,452,230		(80,050	)
Municipals		4,670,544		(20,668	)		712,000		(25,035	)		5,382,544		(45,703	)
Corporates		3,880,000		(60,947	)		-		-			3,880,000		(60,947	)
Government sponsored mortgage-backed securities and SBA loan pools		7,441,808		(52,211	)		20,522,070		(334,369	)		27,963,878		(386,580	)
	$	18,947,742	$	(160,716	)	$	26,765,723	$	(425,678	)	$	45,713,465	$	(586,394	)

	December 31, 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	$	-	$	-		$	34,618	$	(13,310	)	$	34,618	$	(13,310	)
U. S. government agencies		-		-			10,256,773		(271,282	)		10,256,773		(271,282	)
Municipals		2,677,626		(7,692	)		5,859,560		(62,481	)		8,537,186		(70,173	)
Government sponsored mortgage-backed securities and SBA loan pools		12,703,301		(70,049	)		29,201,313		(724,810	)		41,904,614		(794,859	)
	$	15,380,927	$	(77,741	)	$	45,352,264	$	(1,071,883	)	$	60,733,191	$	(1,149,624	)