Fair Value Measures (Tables)

12 Months Ended

Dec. 31, 2012

Available for sale investment securities measured at fair value on a recurring basis

The Company values investment securities classified as available for sale on a recurring basis. U.S. Treasury securities, government agency securities, and an equity investment in an actively traded public utility are valued utilizing Level 1 inputs. Municipal debt securities and equity investments in community banks are valued using Level 2 inputs. The Company has no assets measured at fair value on a recurring basis that are valued with Level 3 inputs. At December 31, 2012, values for available for sale investment securities measured at fair value on a recurring basis were established as follows:

	Total Fair Value		Level 1 Inputs		Level 2 Inputs
Decemer 31, 2012
Securities available for sale:
U.S. Treasury	$	72,173,340	$	72,173,340	$	-
State and municipal		403,437		-		403,437
Equity		1,706,150		401,632		1,304,518
Total assets measured on a recurring basis	$	74,282,927	$	72,574,972	$	1,707,955

Decemer 31, 2011
Securities available for sale:
U.S. Treasury	$	47,158,939		47,158,939	$	-
State and municipal		292,405		-		292,405
Equity		1,645,531		398,992		1,246,539
Total assets measured on a recurring basis	$	49,096,875	$	47,557,931	$	1,538,944

Decemer 31, 2010
Securities available for sale:
U.S. Treasury	$	57,099,491	$	57,099,491	$	-
State and municipal		366,094		-		366,094
Equity		2,336,335		359,832		1,976,503
Total assets measured on a recurring basis	$	59,801,920	$	57,459,323	$	2,342,597

Impaired loans and other real estate owned measured at fair value on a non-recurring basis

The Company values impaired loans and other real estate acquired through foreclosure at fair value on a non-recurring basis using Level 2 inputs. The Company has no assets measured at fair value on a non-recurring basis that are valued utilizing Level 1 or Level 3 inputs. At December 31, 2012, values for impaired loans and other real estate owned measured at fair value on a non-recurring basis were established as follows:

	Total Fair Value		Level 1 Inputs		Level 2 Inputs
December 31, 2012
Impaired loans	$	11,301,555	$	-	$	11,301,555
Other real estate owned		1,440,900		-		1,440,900
Total assets measured on a non-recurring basis	$	12,742,455	$	-	$	12,742,455

December 31, 2011
Impaired loans	$	13,508,334	$	-	$	13,508,334
Other real estate owned		1,715,138		-		1,715,138
Total assets measured on a non-recurring basis	$	15,223,472	$	-	$	15,223,472

December 31, 2010
Impaired loans	$	12,924,345	$	-	$	12,924,345
Other real estate owned		779,500		-		779,500
Total assets measured on a non-recurring basis	$	13,703,845	$	-	$	13,703,845

Calculations of estimated fair values based on market conditions

The estimated fair values of the Company's financial assets and liabilities, including those asset and liabilities that are not measured and reported at fair value on a recurring or non-recurring basis are summarized below. The fair value of cash and due from banks, federal funds sold, accrued interest receivable, bank owned life insurance, noninterest-bearing deposits, securities sold under agreements to repurchase, and accrued interest payable approximates their carrying value. These financial instruments are excluded from the table below. The fair values of a significant portion of these financial instruments are estimates derived using present value techniques prescribed by the Financial Accounting Standards Board and may not be indicative of the net realizable or liquidation values. The calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values.

	December 31, 2012				December 31, 2011				December 31, 2010
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	amount		value		amount		value		amount		value
Financial assets
Level 2 inputs
Interest-bearing deposits		13,587,889		13,603,933		10,548,467		10,564,858		11,650,849		11,652,846
Investment securities		140,075,209		140,214,202		109,721,114		109,963,178		92,105,492		92,293,739
Level 3 inputs
Loans, net		227,346,558		227,337,397		227,534,139		227,579,218		237,001,219		236,918,959
Financial liabilities
Level 2 inputs
Interest-bearing deposits		263,857,994		263,972,110		252,920,179		253,150,103		250,014,068		250,225,814

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13467-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

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-Publisher FASB

-Name Accounting Standards Codification

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13476-108611

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-Publisher FASB

-Name Accounting Standards Codification

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