FAIR VALUE (Tables)

9 Months Ended

Sep. 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 September 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	$	164,629,876	$	31,593,500	$	133,036,376	$	-
Mortgage-backed securities, residential		39,032,987		-		39,032,987		-
Obligations of states and political subdivisions		35,234,537		-		35,234,537		-
Collateralized mortgage obligations		1,500,701		-		1,500,701		-
Corporate bonds and notes		7,484,333		-		7,484,333		-
SBA loan pools		1,540,274		-		1,540,274		-
Trust Preferred securities		2,551,800		-		2,037,500		514,300
Corporate stocks		7,300,609		6,657,475		643,134		-
Total available for sale securities	$	259,275,117	$	38,250,975	$	220,509,842	$	514,300
Trading assets	$	313,021	$	313,021	$	-	$	-

			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 nine-month periods ending September 30, 2013

and 2012:

	Fair Value Measurement for  Nine-Months Ended September 30, 2013 Using Significant Unobservable Inputs (Level 3)		Fair Value Measurement for Nine-Months Ended September 30, 2012 Using Significant Unobservable Inputs (Level 3)
Trust Preferred Securities Available for Sale
Beginning balance December 31	$	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		150,690
Transfers in and/or out of Level 3		-		-
Ending balance September 30	$	514,300	$	445,600

	Fair Value Measurement for Three-Months Ended September 30, 2013 Using Significant Unobservable Inputs (Level 3)		Fair Value Measurement for Three-Months Ended September 30, 2012 Using Significant Unobservable Inputs (Level 3)
Trust Preferred Securities Available for Sale
Beginning balance June 30	$	514,300	$	343,035
Total gains/losses (realized/unrealized):
Included in earnings:
Income on securities		-		-
Impairment charge on investment securities		-		-
Included in other comprehensive income		-		102,565
Transfers in and/or out of Level 3		-		-
Ending balance September 30	$	514,300	$	445,600

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 September 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	$	471,954	$	-	$	-	$	471,954
Commercial mortgages:				-		-
Other		1,071,283		-		-		1,071,283
Consumer loans:
Home equity lines & loans		53,856		-		-		53,856
Total Impaired Loans	$	1,597,093	$	-	$	-	$	1,597,093
Other real estate owned:
Commercial and agricultural:
Commercial and industrial	$	101,200	$	-	$	-	$	101,200
Commercial mortgages:
Other		265,702		-		-		265,702
Residential mortgages		129,939		-		-		129,939
Consumer loans:
Home equity lines & loans		66,959		-		-		66,959
Total Other real estate owned, net	$	563,800	$	-	$	-	$	563,800

			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 September

30, 2013 and December 31, 2012:

Description	Fair Value at September 30, 2013		Technique	Unobservable Inputs
Impaired loans	$	1,597,093	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	$	563,800	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 September 30, 2013 and

December 31, 2012, are as follows (dollars in thousands):

	Fair Value Measurements at September 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	$	37,491	$	37,491	$	-	$	-	$	37,491
Interest-bearing deposits in other    financial institutions		2,438		2,438		-		-		2,438
Trading assets		313		313		-		-		313
Securities available for sale		259,275		38,251		220,510		514		259,275
Securities held to maturity		6,544		-		7,047		-		7,047
Federal Home Loan and Federal   Reserve Bank stock		6,725		-		-		-		N/A
Net loans		955,778		-		-		985,182		985,182
Loans held for sale		866		-		866		-		-
Accrued interest receivable		4,142		360		1,549		2,233		4,142
Financial liabilities:
Deposits:
Demand, savings, and insured   money market accounts	$	866,507	$	866,507	$	-	$	-	$	866,507
Time deposits		221,938		-		222,944		-		222,944
Securities sold under agreements   to repurchase		30,499		-		31,757		-		31,757
Federal Home Loan Bank   term advances		26,046		-		27,207		-		27,207
Federal Home Loan Bank   overnight advances		49,100		-		49,103		-		49,103
Accrued interest payable		339		13		174		152		339
(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.

		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.