Note 3 - Investment Securities

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

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

(

3

)

Investment

Securities

Investment

securities as of

December 31, 2017

are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale
U.S. Government Agencies
Mortgage-Backed	$	354,931,318	$	258,049	$	(8,465,948	)	$	346,723,419
State, County and Municipal		4,493,085		22,835		(23,094	)		4,492,826
Corporate		2,047,517		12,483		-			2,060,000
Asset-Backed		992,641		-		(21,982	)		970,659
	$	362,464,561	$	293,367	$	(8,511,024	)	$	354,246,904

The

amortized cost and fair value of investment securities as of

December 31, 2017,

by contractual maturity, are shown hereafter. Expected maturities

may

differ from contractual maturities for certain investments because issuers

may

have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.

	Securities Available for Sale
	Amortized Cost		Fair Value
Due in One Year or Less	$	301,299	$	301,605
Due After One Year Through Five Years		4,668,954		4,658,344
Due After Five Years Through Ten Years		877,788		894,743
Due After Ten Years		1,685,202		1,668,793
	$	7,533,243	$	7,523,485
Mortgage-Backed Securities		354,931,318		346,723,419
	$	362,464,561	$	354,246,904

Investment

securities as of

December 31, 2016

are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale
U.S. Government Agencies
Mortgage-Backed	$	326,694,417	$	75,743	$	(7,672,786	)	$	319,097,374
State, County and Municipal		4,572,756		18,350		(30,610	)		4,560,496
	$	331,267,173	$	94,093	$	(7,703,396	)	$	323,657,870

Proceeds

from sales of investments available for sale were

$0

in

2017,

$25,209,851

in

2016

and

$28,273,634

in

2015.

Gross realized gains totaled

$0

in

2017,

$391,976

in

2016

and

$207,896

in

2015.

Gross realized losses totaled

$0

in

2017,

$6,753

in

2016

and

$196,316

in

2015.

Investment

securities having a carrying value totaling

$175,484,021

and

$144,853,885

as of

December 31, 2017

and

2016,

respectively, were pledged to secure public deposits and for other purposes.

Information

pertaining to securities with gross unrealized losses at

December 31, 2017

and

2016

aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
December 31, 2017
U.S. Government Agencies
Mortgage-Backed	$	120,139,340	$	(1,655,223	)	$	190,196,101	$	(6,810,725	)	$	310,335,441	$	(8,465,948	)
State, County and Municipal		2,598,344		(23,094	)		-		-			2,598,344		(23,094	)
Asset – Backed		970,659		(21,982	)		-		-			970,659		(21,982	)
	$	123,708,343	$	(1,700,299	)	$	190,196,101	$	(6,810,725	)	$	313,904,444	$	(8,511,024	)
December 31, 201 6
U.S. Government Agencies
Mortgage-Backed	$	174,200,881	$	(3,459,564	)	$	107,481,698	$	(4,213,222	)	$	281,682,579	$	(7,672,786	)
State, County and Municipal		3,487,647		(30,610	)		-		-			3,487,647		(30,610	)
	$	177,688,528	$	(3,490,174	)	$	107,481,698	$	(4,213,222	)	$	285,170,226	$	(7,703,396	)

Management

evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (

1

) the length of time and the extent to which the fair value has been less than cost, (

2

) the financial condition and near-term prospects of the issuer and (

3

) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At

December 31, 2017,

130

securities have unrealized losses which have depreciated

2.64

percent from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale,

no

declines are deemed to be other than temporary. However, the Company did own

one

asset-backed security at

December 31, 2017

which was completely written off during prior years. This investment is comprised of

one

issuance of a trust preferred security and has

no

book value.