Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2014:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Securities available for sale
Obligations of U. S. Government Agencies	$	—	$	89,951,490	$	—	$	89,951,490
Mortgage-backed securities		—		14,835,392		—		14,835,392
State, county and municipal obligations		—		92,753,399		—		92,753,399
Other investments		—		—		2,849,475		2,849,475
Total	$	—	$	197,540,281	$	2,849,475	$	200,389,756

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2013:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Securities available for sale
Obligations of U. S. Government Agencies	$	—	$	282,816,400	$	—	$	282,816,400
Mortgage-backed securities		—		17,166,394		—		17,166,394
State, county and municipal obligations		—		95,427,405		—		95,427,405
Other investments		—		—		2,766,203		2,766,203
Total	$	—	$	395,410,199	$	2,766,203	$	398,176,402

Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table reports the activity for 2014 in assets measured at fair value on a recurring basis using significant unobservable inputs.

	Fair Value Measurements Using
	Significant Unobservable Inputs
	(Level 3)
	Structured Financial Product
Balance at January 1, 2014	$	2,766,203
Unrealized losses included in other comprehensive income		83,272
Balance at September 30, 2014	$	2,849,475

Asset Measured at Fair Value on Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis during 2014 that were still held in the balance sheet at September 30, 2014, the following table provides the hierarchy level and the fair value of the related assets:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	6,637,917	$	6,637,917
Other real estate owned		—		—		1,252,823		1,252,823
Total	$	—	$	—	$	7,890,740	$	7,890,740

For assets measured at fair value on a nonrecurring basis during 2013 that were still held in the balance sheet at December 31, 2013, the following table provides the hierarchy level and the fair value of the related assets:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	8,782,923	$	8,782,923
Other real estate owned		—		—		645,468		645,468
Total	$	—	$	—	$	9,428,391	$	9,428,391

Carrying Value and Estimated Fair Value of Financial Instruments

The following represents the carrying value and estimated fair value of the Corporation’s financial instruments at September 30, 2014, and December 31, 2013:

			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant		Total
	Carrying		Identical		Observable		Unobservable		Fair
September 30, 2014	Value		Assets		Inputs		Inputs		Value
			(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and due from banks	$	19,112,785	$	19,112,785	$	—	$	—	$	19,112,785
Interest bearing deposits with banks		14,868,718		14,868,718		—		—		14,868,718
Securities held-to-maturity		206,261,065				210,736,949				210,736,949
Securities available-for-sale		200,389,756		—		197,540,281		2,849,475		200,389,756
Net loans		381,992,340		—		—		382,242,913		382,242,913
Financial liabilities
Deposits	$	695,291,209	$	470,963,425	$	—	$	224,476,684	$	695,440,109
Federal Home Loan Bank advances		23,500,000		—		—		24,346,302		24,346,302
Securities Sold under Agreement to Repurchase		82,318,447		82,318,447		—		—		82,318,447

			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant		Total
	Carrying		Identical		Observable		Unobservable		Fair
December 31, 2013	Value		Assets		Inputs		Inputs		Value
			(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and due from banks	$	16,040,195	$	16,040,195	$	—	$	—	$	16,040,195
Interest bearing deposits with banks		684,100		684,100		—		—		684,100
Securities available-for-sale		432,065,590		—		395,410,199		2,766,203		398,176,402
Net loans		384,104,766		—		—		385,646,132		385,646,132
Financial liabilities
Deposits	$	654,629,796	$	422,186,092	$	—	$	232,602,224	$	654,788,316
Federal Home Loan Bank advances		33,500,000		—		—		34,622,359		34,622,359
Securities Sold under Agreement to Repurchase		82,420,781		82,420,781		—		—		82,420,781