Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2012:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Totals
	(Level 1)		(Level 2)		(Level 3)
Securities available for sale
Obligations of U. S. Government Agencies	$	—	$	230,111,488	$	—	$	230,111,488
Mortgage-backed Securities		—		42,787,673		—		42,787,673
State, county and municipal obligations		—		118,719,401		—		118,719,401
Other investments		—		—		2,849,684		2,849,684
Total	$	—	$	391,618,562	$	2,849,684	$	394,468,246

The following table presents assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2011:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Securities available for sale
Obligations of U. S. Government Agencies	$	—	$	234,938,488	$	—	$	234,938,488
Mortgage-backed Securities		—		35,117,858		—		35,117,858
State, county and municipal obligations		—		102,422,164		—		102,422,164
Other investments		—		—		2,029,295		2,029,295
Total	$	—	$	372,478,510	$	2,029,295	$	374,507,805

Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table reports the activity for 2012 in assets measured at fair value on a recurring basis using significant unobservable inputs.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Structured Financial Product
Balance at January 1, 2012	$	2,029,295
Unrealized gains included in other comprehensive income		820,389
Balance at September 30, 2012	$	2,849,684

Asset Measured at Fair Value on Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis during 2012 that were still held in the balance sheet at September 30, 2012, the following table provides the hierarchy level and the fair value of the related assets:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	4,100,152	$	4,100,152
Other real estate owned		—		—		688,091		688,091
Total	$	—	$	—	$	4,788,243	$	4,788,243

For assets measured at fair value on a nonrecurring basis during 2011 that were still held in the balance sheet at December 31, 2011, the following table provides the hierarchy level and the fair value of the related assets:

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	505,585	$	505,585
Other real estate owned		—		—		3,056,902		3,056,902
Total	$	—	$	—	$	3,562,487	$	3,562,487

Carrying Value and Estimated Fair Value of Financial Instruments

The following represents the carrying value and estimated fair value of the Corporation’s financial instruments at September 30, 2012, and December 31, 2011:

	September 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and due from banks	$	20,130,091	$	20,130,091	$	35,407,715	$	35,407,715
Interest bearing deposits with banks		2,151,946		2,151,946		3,990,521		3,990,521
Securities available-for-sale		398,200,446		398,200,446		374,507,805		374,507,805
Net loans		370,750,748		371,139,705		382,580,529		382,174,094
Financial liabilities
Deposits	$	617,022,279	$	617,282,935	$	572,338,135	$	572,388,706
Federal Home Loan Bank advances		68,500,000		71,353,147		68,500,000		71,950,022
Securities Sold under agreement to repurchase		61,357,699		61,357,699		120,220,433		120,220,433