15.	DISCLOSURES REGARDING FAIR VALUE OF FINANCIAL INSTRUMENTS

	The following table is a summary of the carrying value and estimated fair value of the Company’s financial instruments as of December 31, 2011 and 2010:

	2011
	Carrying Amount		Estimated Fair Value
Financial Assets:
Cash and due from banks	$	4,559,194		$	4,559,194
Interest bearing deposits in other banks		47,504,282			47,504,282
Federal funds sold		-			-
Investments available for sale		59,552,160			59,552,160
Mortgage loans to be sold		7,578,587			7,578,587
Loans		213,709,112			214,294,224
Financial Liabilities:
Deposits		301,127,515			301,830,957
Short-term borrowings		-			-

	Notional Amount		Fair Value
Off Balance Sheet Financial Instruments:

Commitments to extend credit	$	47,629,822	$	-
Standby letters of credit		875,679		-

	2010
	Carrying Amount		Estimated Fair Value

Financial Assets:
Cash and due from banks	$	4,697,450	$	4,697,450
Interest bearing deposits in other banks		715,231		715,231
Federal funds sold		19,018,104		19,018,104
Investment securities available for sale		39,379,613		39,379,613
Mortgage loans to be sold		5,908,316		5,908,316
Loans		208,025,664		215,700,695
Financial Liabilities
Deposits		250,436,975		250,750,331
Short-term borrowings		767,497		767,497

	Notional Amount		Fair Value
Off Balance Sheet Financial Instruments:

Commitments to extend credit	$	44,016,496	$	-
Standby letters of credit		532,613		-

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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