Assets Measured at Fair Value

6 Months Ended

Jun. 30, 2012

Assets Measured at Fair Value [Abstract]

Assets Measured at Fair Value on a Recurring Basis

5.  Assets Measured at Fair Value

The Company values investment securities classified as available for sale on a recurring basis.  The fair value hierarchy established in the Financial Accounting Standards Board accounting standards codification topic titled Fair Value Measurements defines three input levels for fair value measurement.  Level 1 is based on quoted market prices in active markets for identical assets.  Level 2 is based on significant observable inputs other than those in Level 1.  Level 3 is based on significant unobservable inputs.  The Company values US Treasury securities, government agency securities, and an equity investment in an actively traded public utility under Level 1.  Municipal debt securities and equity investments in community banks are valued under Level 2.  The Company has no assets measured at fair value on a recurring basis that are valued under Level 3 criteria. 

 At June 30, 2012, values for available for sale investment securities measured at fair value on a recurring basis were established as follows:

	Total		Level 1 Inputs		Level 2 Inputs
Measured on a recurring basis
U.S. Treasury	$	43,142,889	$	43,142,889	$	-
State and municipal		403,886		-		403,886
Equity		1,685,979		422,224		1,263,755
Total assets measured on a recurring basis	$	45,232,754	$	43,565,113	$	1,667,641

The Company values impaired loans and other real estate acquired through foreclosure at fair value on a non-recurring basis under Level 2.  The Company has no assets measured at fair value on a non-recurring basis that are valued under Level 1 or Level 3 criteria. 

 At June 30, 2012, values for impaired loans and other real estate owned measured at fair value on a non-recurring basis were established as follows:

	Total		Level 1 Inputs		Level 2 Inputs
Measured on a non-recurring basis
Impaired loans	$	3,379,021	$	-	$	3,379,021
Other real estate owned		1,659,260		-		1,659,260
Total assets measured on a non-recurring basis	$	5,038,281	$	-	$	5,038,281

The fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, and the valuation methods used in estimating the fair value of financial instruments is disclosed in the Company's Annual Report on Form 10-K.  It is not practicable to report quarterly the fair value of financial assets and liabilities measured on a non-recurring basis.