FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2013

FAIR VALUE [Abstract]

Summary of assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

			Fair Value Measurement at June 30, 2013 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Obligations of U.S. Government and U.S.   Government sponsored enterprises	$	144,450,370	$	31,526,000	$	112,924,370	$	-
Mortgage-backed securities, residential		22,979,392		-		22,979,392		-
Obligations of states and political subdivisions		37,003,563		-		37,003,563		-
Collateralized mortgage obligations		2,188,975		-		2,188,975		-
Corporate bonds and notes		7,515,573		-		7,515,573		-
SBA loan pools		1,591,911		-		1,591,911		-
Trust Preferred securities		2,515,706		-		2,001,406		514,300
Corporate stocks		7,116,462		6,473,329		643,133		-
Total available for sale securities	$	225,361,952	$	37,999,329	$	186,848,323	$	514,300
Trading assets	$	388,714	$	388,714	$	-	$	-

			Fair Value Measurement at December 31, 2012 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Obligations of U.S. Government and U.S.   Government sponsored enterprises	$	141,591,214	$	37,698,000	$	103,893,214	$	-
Mortgage-backed securities, residential		31,515,249		-		31,515,249		-
Obligations of states and political subdivisions		40,814,722		-		40,814,722		-
Collateralized mortgage obligations		3,543,360		-		3,543,360		-
Corporate bonds and notes		11,651,635		-		11,651,635		-
SBA loan pools		1,724,140		-		1,724,140		-
Trust Preferred securities		2,470,913		-		2,025,313		445,600
Corporate stocks		6,374,530		5,720,533		653,997		-
Total available for sale securities	$	239,685,763	$	43,418,533	$	195,821,630	$	445,600
Trading assets	$	348,241	$	348,241	$	-	$	-

Changes in unrealized gains and losses recorded in earnings

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six-month periods ending June 30, 2013 and 2012:

	Fair Value Measurement for  Six-Months Ended June 30, 2013 Using Significant Unobservable Inputs (Level 3)		Fair Value Measurement for Six-Months Ended June 30, 2012 Using Significant Unobservable Inputs (Level 3)
Trust Preferred Securities Available for Sale
Beginning balance	$	445,600	$	294,910
Total gains/losses (realized/unrealized):
Included in earnings:
Income on securities		-		-
Impairment charge on investment securities		-		-
Included in other comprehensive income		68,700		48,125
Transfers in and/or out of Level 3		-		-
Ending balance June 30	$	514,300	$	343,035

	Fair Value Measurement for Three-Months Ended June 30, 2013 Using Significant Unobservable Inputs (Level 3)		Fair Value Measurement for Three-Months Ended June 30, 2012 Using Significant Unobservable Inputs (Level 3)
Trust Preferred Securities Available for Sale
Beginning balance	$	496,825	$	346,210
Total gains/losses (realized/unrealized):
Included in earnings:
Income on securities		-		-
Impairment charge on investment securities		-		-
Included in other comprehensive income		17,475		(3,175)
Transfers in and/or out of Level 3		-		-
Ending balance March 31	$	514,300	$	343,035

Summary of assets and liabilities measured at fair value on a non-recurring basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurement at June 30, 2013 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial and agricultural:
Commercial &industrial	$	257,146	$	-	$	-	$	257,146
Commercial mortgages:				-		-
Other		680,723		-		-		680,723
Consumer loans:
Home equity lines & loans		53,856		-		-		53,856
Total Impaired Loans	$	991,725	$	-	$	-	$	991,725
Other real estate owned:
Commercial and agricultural:
Commercial and industrial	$	101,200	$	-	$	-	$	101,200
Commercial mortgages:
Other		257,702		-		-		257,702
Residential mortgages		161,950		-		-		161,950
Consumer loans:
Home equity lines & loans		66,959		-		-		66,959
Total Other real estate owned, net	$	587,811	$	-	$	-	$	587,811

			Fair Value Measurement at December 31, 2012 Using
Financial Assets:	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Impaired Loans:
Commercial and agricultural:
Commercial & industrial	$	235,501	$	-	$	-	$	235,501
Commercial mortgages:				-		-
Other		305,222		-		-		305,222
Total Impaired Loans	$	540,723	$	-	$	-	$	540,723
Other real estate owned:
Commercial and agricultural:
Commercial and industrial	$	101,200	$	-	$	-	$	101,200
Commercial mortgages:
Other		257,702		-		-		257,702
Residential mortgages		201,679		-		-		201,679
Consumer loans:
Home equity lines & loans		4,000		-		-		4,000
Total Other real estate owned, net	$	564,581	$	-	$	-	$	564,581

Nonrecurring fair value measurement, valuation techniques

The following table presents information related to Level 3 non-recurring fair value measurement at June 30, 2013 and December 31, 2012:

Description	Fair Value at June 30, 2013		Technique	Unobservable Inputs
Impaired loans	$	991,725	Third party real estate and a 100% discount of personal property	1	Management discount based on underlying collateral characteristics and market conditions
Other real estate owned	$	587,811	Third party appraisals	1	Estimated holding  period
				2	Estimated closing costs

Description	Fair Value at December 31, 2012		Technique	Unobservable Inputs
Impaired loans	$	540,723	Third party real estate and a 100% discount of personal property	1	Management discount based on underlying collateral characteristics and market conditions
Other real estate owned	$	564,581	Third party appraisals	1	Estimated holding  period
				2	Estimated closing costs

Carrying value and estimated fair value of financial instruments

The carrying amounts and estimated fair values of other financial instruments, at June 30, 2013 and December 31, 2012, are as follows (dollars in thousands):

	Fair Value Measurements at June 30, 2013 Using
Financial assets:	Carrying Amount		Quoted Prices  in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Estimated Fair Value (1)
Cash and due from financial   institutions	$	23,812	$	23,812	$	-	$	-	$	23,812
Interest-bearing deposits in other    financial institutions		945		945		-		-		945
Trading assets		389		389		-		-		389
Securities available for sale		225,362		37,999		186,849		514		225,362
Securities held to maturity		6,570		-		7,064		-		7,064
Federal Home Loan and Federal   Reserve Bank stock		4,579		-		-		-		N/A
Net loans		922,719		-		-		952,305		952,305
Loans held for sale		947		-		947		-		947
Accrued interest receivable		3,742		143		1,234		2,365		3,742
Financial liabilities:
Deposits:
Demand, savings, and insured   money market accounts		830,003		830,003		-		-		830,003
Time deposits		224,965		-		226,038		-		226,038
Securities sold under agreements   to repurchase		30,568		-		32,014		-		32,014
Federal Home Loan Bank   advances		26,101		-		27,476		-		27,476
Accrued interest payable		405		16		224		165		405

		Fair Value Measurements at December 31, 2012
Financial Assets:		Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Estimated Fair Value (1)
Cash and due from financial institutions	$	29,239	$	29,239	$	-		-	$	29,239
Interest-bearing deposits in other   financial institutions		11,002		8,645		2,357		-		11,002
Trading assets		348		348		-		-		348
Securities available for sale		239,686		43,419		195,822		445		239,686
Securities held to maturity		5,748		-		6,421		-		6,421
Federal Home Loan and Federal   Reserve Bank stock		4,710		-		-		-		N/A
Net loans		883,084		-		-		916,289		916,289
Loans held for sale		1,057		-		1,057		-		1,057
Accrued interest receivable		3,788		175		1,257		2,356		3,788
Financial liabilities:
Deposits:
Demand, savings, and insured money market accounts	$	808,044	$	808,044	$	-	$	-	$	808,044
Time deposits		236,690		-		238,245		-		238,245
Securities sold under agreements   to repurchase		32,711		-		35,260		-		35,260
Federal Home Loan Bank   advances		27,225		-		29,688		-		29,688
Accrued interest payable		453		12		279		162		453
(1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.