Investment Securities

9 Months Ended

Sep. 30, 2020

Investment Securities

Note 5. Investment Securities

Note 5. Investment Securities

Debt securities as of the balance sheet dates consisted of the following:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
September 30, 2020
U.S. GSE debt securities	$	10,002,586	$	201,114	$	0	$	10,203,700
Agency MBS		21,298,090		547,242		36,044		21,809,288
ABS and OAS		2,509,172		147,847		0		2,657,019
Other investments		10,148,000		369,964		0		10,517,964
Total	$	43,957,848	$	1,266,167	$	36,044	$	45,187,971
December 31, 2019
U.S. GSE debt securities	$	18,002,549	$	99,743	$	40,672	$	18,061,620
Agency MBS		16,169,819		86,874		51,318		16,205,375
ABS and OAS		2,799,657		55,418		2,166		2,852,909
Other investments		8,665,000		181,846		0		8,846,846
Total	$	45,637,025	$	423,881	$	94,156	$	45,966,750

Investments pledged as collateral for repurchase agreements consisted of U.S. GSE debt securities, Agency MBS, ABS and OAS, and CDs.  These repurchase agreements mature daily.  These investments as of the balance sheet dates were as follows:

	Amortized		Fair
	Cost		Value
September 30, 2020	$	43,957,848	$	45,187,971
December 31, 2019		45,637,025		45,966,750

Proceeds from sales of debt securities were $884,137 for the first nine months of 2020 and $1,517,091 for the same period in 2019, with gains of $39,086 and $331, respectively.

The scheduled maturities of debt securities as of the balance sheet dates were as follows:

	Amortized		Fair
	Cost		Value
September 30, 2020
Due in one year or less	$	4,709,546	$	4,735,438
Due from one to five years		7,438,000		7,785,822
Due from five to ten years		9,506,876		9,809,923
Due after ten years		1,005,336		1,047,500
Agency MBS		21,298,090		21,809,288
Total	$	43,957,848	$	45,187,971
December 31, 2019
Due in one year or less	$	2,760,515	$	2,766,254
Due from one to five years		9,674,948		9,862,450
Due from five to ten years		15,042,170		15,147,201
Due after ten years		1,989,573		1,985,470
Agency MBS		16,169,819		16,205,375
Total	$	45,637,025	$	45,966,750

Agency MBS are not due at a single maturity date and have not been allocated to maturity groupings for purposes of the maturity table.

Debt securities with unrealized losses as of the balance sheet dates are presented in the table below. 

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Number of		Fair		Unrealized
	Value		Loss		Value		Loss		Securities		Value		Loss
September 30, 2020
Agency MBS	$	1,998,026	$	25,301	$	1,751,166	$	10,743		8	$	3,749,192	$	36,044
December 31, 2019
U.S. GSE debt securities	$	7,964,192	$	40,672	$	0	$	0		7	$	7,964,192	$	40,672
Agency MBS		5,273,683		24,648		2,920,091		26,670		13		8,193,774		51,318
ABS and OAS		1,000,490		2,166		0		0		1		1,000,490		2,166
Total	$	14,238,365	$	67,486	$	2,920,091	$	26,670		21	$	17,158,456	$	94,156

The unrealized losses for all periods presented were principally attributable to changes in prevailing interest rates for similar types of securities and not deterioration in the creditworthiness of the issuer.

Management evaluates its debt securities for OTTI at least on a quarterly basis, and more frequently when economic or market conditions, or adverse developments relating to the issuer, warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than the carrying value, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value.  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 or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer's financial condition.  As of September 30, 2020 and December 31, 2019, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be OTTI.