Note 3 - 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 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 June 30, 2015
Equity Securities	$	102,212	$	20,365	$	(12,012	)	$	110,565
Debt Securities:
U. S. government agencies		8,532,812		-		(153,513	)		8,379,299
Municipals		15,919,342		83,883		(184,754	)		15,818,471
Corporates		3,950,889		13,996		(66,135	)		3,898,750
Government sponsored mortgage-backed securities and SBA loan pools		56,014,245		98,797		(911,332	)		55,201,710
	$	84,519,500	$	217,041	$	(1,327,746	)	$	83,408,795

	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 June 30, 2015:

	Amortized Cost		Approximate Fair Value
< 1 year	$	285,000	$	285,382
1-5 years		4,727,836		4,702,048
6-10 years		11,415,094		11,267,064
After 10 years		11,975,113		11,842,026
Government sponsored mortgage-backed securities and SBA loans not due on a single maturity date		56,014,245		55,201,710
	$	84,417,288	$	83,298,230

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 June 30, 2015
Debt Securities:
Government sponsored mortgage-backed securities	$	51,341	$	1,379	$	-	$	52,720

	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 June 30, 2015:

	Amortized Cost		Approximate Fair Value
Government sponsored mortgage-backed securities not due on a single maturity date	$	51,341	$	52,720

The book value of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $60,804,064 and $53,355,716 as of June 30, 2015 and December 31, 2014, respectively. The approximate fair value of pledged securities amounted to $59,966,322 and $52,907,065 as of June 30, 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 $155,313 and $10,691 as of June 30, 2015 and June 30, 2014, respectively, were realized from the sale of available-for-sale securities. The tax effect of these net gains was $57,466 and $3,956 as of June 30, 2015 and June 30, 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 June 30, 2015 and December 31, 2014, was $64,533,448 and $60,733,191, respectively, which is approximately 77% 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 June 30, 2015 and December 31, 2014. 

	June 30, 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	$	-	$	-		$	35,915	$	(12,012	)	$	35,915	$	(12,012	)
U. S. government agencies		2,911,150		(71,662	)		5,468,149		(81,851	)		8,379,299		(153,513	)
Municipals		10,042,716		(152,045	)		702,305		(32,709	)		10,745,021		(184,754	)
Corporates		3,008,750		(66,135	)		-		-			3,008,750		(66,135	)
Government sponsored mortgage-backed securities and SBA loan pools		24,796,548		(341,405	)		17,567,915		(569,927	)		42,364,463		(911,332	)
	$	40,759,164	$	(631,247	)	$	23,774,284	$	(696,499	)	$	64,533,448	$	(1,327,746	)

	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	)