SECURITIES (Tables)

12 Months Ended

Dec. 31, 2012

SECURITIES [Abstract]

Amortized cost and estimated fair value of securities available for sale

Amortized cost and estimated fair value of securities available for sale at December 31, 2012 and 2011 are as follows:

	2012				2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	138,041,393	$	141,591,214	$	149,140,715	$	152,079,770
Mortgage-backed securities, residential		29,591,883		31,515,249		48,129,271		50,766,605
Collateralized mortgage obligations		3,494,642		3,543,360		7,412,470		7,536,753
Obligations of states and political subdivisions		39,174,595		40,814,722		44,561,789		46,512,971
Corporate bonds and notes		11,412,167		11,651,635		13,461,675		13,684,198
SBA loan pools		1,682,736		1,724,140		1,915,419		1,949,606
Trust preferred securities		2,519,379		2,470,913		2,538,286		2,310,066
Corporate stocks		736,495		6,374,530		788,030		6,029,841
Total	$	226,653,290	$	239,685,763	$	267,947,655	$	280,869,810

Gross unrealized gains and losses on securities available for sale at December 31, 2012 and 2011, were as follows:

	2012				2011
	Unrealized		Unrealized		Unrealized		Unrealized
	Gains		Losses		Gains		Losses
Obligations of U.S. Government and U.S.   Government sponsored enterprises	$	3,549,821	$	-	$	3,022,726	$	83,671
Mortgage-backed securities, residential		1,923,366		-		2,637,334		-
Collateralized mortgage obligations		48,718		-		135,603		11,321
Obligations of states and political subdivisions		1,641,510		1,383		1,954,265		3,083
Corporate bonds and notes		239,468		-		418,969		196,446
SBA loan pools		41,404		-		34,187		-
Trust preferred securities		134,959		183,425		132,516		360,735
Corporate stocks		5,645,753		7,718		5,246,655		4,844
Total	$	13,224,999	$	192,526	$	13,582,255	$	660,100

Amortized cost and estimated fair value of debt securities available for sale by contractual maturity

The amortized cost and estimated fair value of debt securities available for sale are shown below by expected maturity.  Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Securities not due at a single maturity date are shown separately:

	December 31, 2012
	Amortized		Fair
	Cost		Value
Within One Year	$	46,986,281	$	47,375,648
After One, But Within Five Years		137,310,080		141,854,201
After Five, But Within Ten Years		6,222,148		6,853,035
After Ten Years		629,025		445,600
Mortgage-backed securities, residential		29,591,883		31,515,249
Collateralized mortgage obligations		3,494,642		3,543,360
SBA loan pools		1,682,736		1,724,140
Total	$	225,916,795	$	233,311,233

Proceeds from sales and calls of securities resulting in gains or losses

The proceeds from sales and calls of securities resulting in gains or losses are listed below:

		2012		2011		2010
Proceeds	$	26,210,087	$	35,741,211	$	10,520,033
Gross gains	$	300,516	$	1,108,091	$	451,094
Gross losses	$	-	$	-	$	428
Tax expense	$	115,518	$	423,191	$	174,345

Amortized cost and estimated fair value of securities held to maturity

Amortized cost and estimated fair value of securities held to maturity at December 31, 2012 and 2011 are as follows:

	2012				2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Obligations of states and political subdivisions	$	5,748,453	$	6,421,486	$	8,311,921	$	9,175,956

Contractual maturities of securities held to maturity

The contractual maturity of securities held to maturity is as follows at December 31, 2012:

	December 31, 2012
	Amortized		Fair
	Cost		Value
Within One Year	$	1,475,115	$	1,495,042
After One, But Within Five Years		2,738,944		3,033,325
After Five, But Within Ten Years		1,534,394		1,893,119
After Ten Years		-		-
Total	$	5,748,453	$	6,421,486

Investment securities available for sale in an unrealized loss position

The following table summarizes the investment securities available for sale with unrealized losses at December 31, 2012 and December 31, 2011 by aggregated major security type and length of time in a continuous unrealized position:

	Less than 12 months				12 months or longer				Total
2012	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	$	-	$	-	$	430,166	$	1,383	$	430,166	$	1,383
Trust preferred securities		-		-		445,600		183,425		445,600		183,425
Corporate stocks		-		-		45,912		7,718		45,912		7,718
Total temporarily         impaired securities	$	-	$	-	$	921,678	$	192,526	$	921,678	$	192,526

	Less than 12 months				12 months or longer				Total
2011	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	27,365,920	$	83,671	$	-	$	-	$	27,365,920	$	83,671
Collateralized mortgage obligations		2,546,461		11,321		-		-		2,546,461		11,321
Obligations of states and political subdivisions		947,203		3,083		-		-		947,203		3,083
Corporate bonds		5,261,074		196,446		-		-		5,261,074		196,446
Trust preferred securities		-		-		294,910		360,735		294,910		360,735
Corporate stocks		1,669		1,969		47,117		2,875		48,786		4,844
Total temporarily         impaired securities	$	36,122,327	$	296,490	$	342,027	$	363,610	$	36,464,354	$	660,100

Roll forward of the cumulative credit losses recognized in earnings

The table below presents a roll forward of the cumulative credit losses recognized in earnings for the periods ended December 31, 2012 and 2011:

	2012		2011
Beginning balance, January 1,	$	3,506,073	$	3,438,673
Amounts related to credit loss for which an other-than-temporary      impairment was not previously recognized		-		-
Additions/Subtractions:
Amounts realized for securities sold during the period		-		-
Amounts related to securities for which the company intends to sell      or that it will be more likely than not that the company will be required to      sell prior to recovery of amortized cost basis		-		-
Reductions for increase in cash flows expected to be collected that are      recognized over the remaining life of the security		-		-
Increases to the amount related to the credit loss for which other-than-temporary      impairment was previously recognized		-		67,400
Ending balance, December 31,	$	3,506,073	$	3,506,073

Interest and dividend income on securities

Interest and dividend income on securities for the years ended December 31, 2012, 2011 and 2010 was as follows:

Taxable:	2012		2011		2010
Obligations of U.S. Government and U.S.   Government sponsored enterprises	$	2,457,865	$	2,276,838	$	2,086,561
Mortgage-backed securities, residential		1,447,169		2,181,824		3,184,152
Collateralized mortgage obligations		137,732		188,160		-
Corporate bonds and notes		580,152		578,601		499,167
SBA Loan Pools		31,951		31,768		-
Trust preferred securities		271,699		241,626		271,500
Obligations of taxable states and political subdivisions		-		2,798		-
Corporate stocks		430,611		372,402		286,109
Exempt from Federal taxation:
Obligations of states and political subdivisions		1,268,242		1,378,753		1,188,193
Total	$	6,625,421	$	7,252,772	$	7,515,682

Securities pledged to secure securities sold under agreements to repurchase

The table below shows the securities pledged to secure securities sold under agreements to repurchase at December 31, 2012 and 2011:

	2012				2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Obligations of U.S. Government and U. S.   Government sponsored enterprises	$	31,888,493	$	32,812,885	$	33,561,553	$	34,504,015
Mortgage-backed securities, residential		16,503,983		17,575,852		25,769,793		27,242,850
Collateralized mortgage obligations		756,542		770,625		1,807,795		1,854,019
Total	$	49,149,018	$	51,159,362	$	61,139,141	$	63,600,884