FAIR VALUES (Tables)

12 Months Ended

Dec. 31, 2013

FAIR VALUES [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 December 31, 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	$	188,106,208	$	31,261,500	$	156,844,708	$	-
Mortgage-backed securities, residential		104,356,521		-		104,356,521		-
Obligations of states and political subdivisions		38,376,222		-		38,376,222		-
Collateralized mortgage obligations		1,014,876		-		1,014,876		-
Corporate bonds and notes		2,945,807		-		2,945,807		-
SBA loan pools		1,487,579		-		1,487,579		-
Trust Preferred securities		2,033,594		-		2,033,594		-
Corporate stocks		7,695,099		7,279,075		416,024		-
Total available for sale securities	$	346,015,906	$	38,540,575	$	307,475,331	$	-
Trading assets	$	366,255	$	366,255	$	-	$	-

			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 years ended December 31, 2013 and 2012:

Trust Preferred Securities Available for Sale	Fair Value Measurement twelve-months ended December 31, 2013 Using Significant Unobservable Inputs (Level 3)			Fair Value Measurement twelve-months ended December 31, 2012 Using Significant Unobservable Inputs (Level 3)
Beginning balance	$	445,600		$	294,910
Total gains/losses (realized/unrealized):
Included in earnings:
Loss on securities		-			-
Impairment charge on investment securities		(29,025	)		-
Included in other comprehensive income		183,425			150,690
Transfers in and/or out of Level 3		(600,000	)		-
Ending balance, December 31	$	-		$	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 December 31, 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 and industrial	$	460,386	$	-	$	-	$	460,386
Commercial mortgages:				-		-
Commercial mortgages other		485,186		-		-		485,186
Consumer loans:
Home equity lines and loans		53,856						53,856
Total Impaired Loans	$	999,428	$	-	$	-	$	999,428
Other real estate owned:
Commercial and agricultural:
Commercial and industrial	$	101,200	$	-	$	-	$	101,200
Commercial mortgages:
Commercial mortgages other		265,702		-		-		265,702
Residential mortgages		106,270		-		-		106,270
Consumer loans:
Home equity lines and loans		64,859		-		-		64,859
Total Other real estate owned, net	$	538,031	$	-	$	-	$	538,031

			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 and industrial	$	311,801	$	-	$	-	$	311,801
Commercial mortgages:				-		-
Commercial mortgages other		303,821		-		-		303,821
Total Impaired Loans	$	615,622	$	-	$	-	$	615,622
Other real estate owned:
Commercial and agricultural:
Commercial and industrial	$	101,200	$	-	$	-	$	101,200
Commercial mortgages:
Commercial mortgages other		257,702		-		-		257,702
Residential mortgages		201,679		-		-		201,679
Consumer loans:
Home equity lines and 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 December 31, 2013 and December 31, 2012:

Description	Fair Value at December 31, 2013		Technique	Unobservable Inputs
Impaired loans	$	999,428	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	$	538,031	Third party appraisals	1	Estimated holding  period
				2	Estimated closing costs

Description	Fair Value at December 31, 2012		Technique	Unobservable Inputs
Impaired loans	$	615,622	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 December 31, 2013 and December 31, 2012, are as follows (dollars in thousands):

		Fair Value Measurements at December 31, 2013
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	$	31,600,112	$		31,600,112		$	-		$	-	$		31,600,112
Interest-bearing deposits in other   financial institutions		20,009,352			20,009,352			-			-			20,009,352
Trading assets		366,255			366,255			-			-			366,255
Securities available for sale		346,015,906			38,540,575			307,475,331			-			346,015,906
Securities held to maturity		6,494,924			-			6,929,549			-			6,929,549
Federal Home Loan and Federal   Reserve Bank stock		4,481,750			-			-			-			N/A
Loans, net		983,090,196			-			-			1,008,826,162			1,008,826,162
Loans held for sale		694,840			-			694,840			-			694,840
Accrued interest receivable		4,166,423			145,166			1,468,186			2,553,071			4,166,423
Financial liabilities:
Deposits:
Demand, savings, and insured   money market accounts	$	1,018,878,175	$		1,018,878,175		$	-		$	-	$		1,018,878,175
Time deposits		244,491,486			-			245,481,933			-			245,481,933
Securities sold under agreements   to repurchase		32,701,223			-			33,636,052			-			33,636,052
Federal Home Loan Bank advances		25,242,628			-			26,063,973			-			26,063,973
Accrued interest payable		335,818			14,445			170,328			151,045			335,818
(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	$	29,239,309	$		29,239,309		$	-		$	-	$		29,239,309
Interest-bearing deposits in other   financial institutions		11,001,912			8,444,188			2,557,724			-			11,001,912
Trading assets		348,241			348,241			-			-			348,241
Securities available for sale		239,685,763			43,418,533			195,821,630			445,600			239,685,763
Securities held to maturity		5,748,453			-			6,421,486			-			6,421,486
Federal Home Loan and Federal   Reserve Bank stock		4,710,300			-			-			-			N/A
Loans, net		883,084,291			-			-			916,289,444			916,289,444
Loans held for sale		1,057,309			-			1,057,309			-			1,057,309
Accrued interest receivable		3,787,923			174,827			1,257,260			2,355,836			3,787,923
Financial liabilities:
Deposits:
Demand, savings, and insured   money market accounts	$	808,043,960	$		808,043,960		$	-		$	-	$		808,043,960
Time deposits		236,690,054			-			238,245,225			-			238,245,225
Securities sold under agreements   to repurchase		32,710,650			-			35,259,782			-			35,259,782
Federal Home Loan Bank advances		27,225,363			-			29,688,198			-			29,688,198
Accrued interest payable		452,629			11,793			278,988			161,848			452,629
(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.