Note 4 - Securities

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

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

Note

4:

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, 2018
Debt Securities:
Agencies	$	5,537,396	$	10,914	$	(176	)	$	5,548,134
Municipals		32,746,933		6,975		(883,396	)		31,870,512
Corporates		3,000,000		22,500		(166	)		3,022,334
Government sponsored mortgage-backed securities and SBA loan pools		50,429,427		18,016		(1,571,430	)		48,876,013
	$	91,713,756	$	58,405	$	(2,455,168	)	$	89,316,993

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2017
Debt Securities:
Municipals	$	33,908,207	$	253,872	$	(263,621	)	$	33,898,458
Corporates		3,000,000		65,000		-			3,065,000
Government sponsored mortgage-backed securities and SBA loan pools		45,414,845		9,283		(908,913	)		44,515,215
	$	82,323,052	$	328,155	$	(1,172,534	)	$	81,478,673

Maturities of available-for-sale debt securities as of

June 30, 2018:

	Amortized Cost		Approximate Fair Value
Less than 1 year		1,754,116		1,755,289
1-5 years		4,216,085		4,226,191
6-10 years		11,951,057		11,712,349
After 10 years		23,363,071		22,747,151
Government sponsored mortgage-backed securities and SBA loan pools not due on a single maturity date		50,429,427		48,876,013
	$	91,713,756	$	89,316,993

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, 2018
Debt Securities:
Government sponsored mortgage-backed securities	$	14,111	$	264	$	(90	)	$	14,285

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Approximate Fair Value
As of December 31, 2017
Debt Securities:
Government sponsored mortgage-backed securities	$	16,457	$	327	$	(55	)	$	16,729

Maturities of held-to-maturity securities as of

June 30, 2018:

	Amortized Cost		Approximate Fair Value
Government sponsored mortgage-backed securities not due on a single maturity date	$	14,111	$	14,285

The book value of securities pledged as collateral, to secure public deposits and for other purposes, amounted to

$37,201,699

and

$35,774,863

as of

June 30, 2018

and

December 31, 2017,

respectively. The approximate fair value of pledged securities amounted to

$36,104,346

and

$35,355,969

as of

June 30, 2018

and

December 31, 2017,

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 (losses) of (

$7,205

) and

$62,274

as of

June 30, 2018

and

June 30, 2017,

respectively, were realized from the sale of available-for-sale securities. The tax effect of these net gains (losses) was (

$1,837

) and

$23,041

 as of

June 30, 2018

and

June 30, 2017,

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, 2018

and

December 31, 2017,

was

$72,896,278

and

$62,107,660,

respectively, which is approximately

82%

and

76%

of the Company’s investment portfolio.

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, 2018

and

December 31, 2017.

	June 30, 2018
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U. S. government agencies	$	1,015,035	$	(176	)	$	-	$	-		$	1,015,035	$	(176	)
Corporates		999,834		(166	)		-		-			999,834		(166	)
Municipals		21,278,029		(515,479	)		8,539,798		(367,917	)		29,817,827		(883,396	)
Government sponsored mortgage-backed securities and SBA loan pools		21,537,912		(625,003	)		19,525,670		(946,517	)		41,063,582		(1,571,520	)
	$	44,830,810	$	(1,140,824	)	$	28,065,468	$	(1,314,434	)	$	72,896,278	$	(2,455,258	)

	December 31, 2017
	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Municipals	$	11,024,593	$	(103,747	)	$	8,802,796	$	(159,874	)	$	19,827,389	$	(263,621	)
Government sponsored mortgage-backed securities and SBA loan pools		20,088,694		(253,907	)		22,191,577		(655,006	)		42,280,271		(908,913	)
	$	31,113,287	$	(357,654	)	$	30,994,373	$	(814,880	)	$	62,107,660	$	(1,172,534	)