Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2018:

	Fair Value Measurements Using:
	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	$	—	$	95,296,724	$	—	$	95,296,724
Mortgage-backed securities		—		266,029,081		—		266,029,081
State, county and municipal obligations		—		102,426,380		—		102,426,380
Total	$	—	$	463,752,185	$	—	$	463,752,185

The following table presents assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2017:

	Fair Value Measurements Using:
	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	$	—	$	176,448,558	$	—	$	176,448,558
Mortgage-backed securities		—		208,423,057		—		208,423,057
State, county and municipal obligations		—		117,100,535		—		117,100,535
Other investments		—		—		3,074,227		3,074,227
Total	$	—	$	501,972,150	$	3,074,227	$	505,046,377

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

The following table reports the activity 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 As of June 30,
	2018			2017
Beginning Balance	$	3,074,227		$	2,971,106
Sales		(2,865,294	)		—
Principal payments received		—			(5,067	)
Unrealized (loss) gains included in other comprehensive income		(208,933	)		39,303
Ending Balance	$	—		$	3,005,342

Asset Measured at Fair Value on Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis during 2018 that were still held on the Corporation’s balance sheet at June 30, 2018, the following table provides the hierarchy level and the fair value of the related assets:

	Fair Value Measurements Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	305,297	$	305,297
Total	$	—	$	—	$	305,297	$	305,297

For assets measured at fair value on a nonrecurring basis during 2017 that were still held on the Corporation’s balance sheet at December 31, 2017, the following table provides the hierarchy level and the fair value of the related assets:

	Fair Value Measurements Using:
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	544,502	$	544,502
Other real estate owned		—		—		1,307,250		1,307,250
Total	$	—	$	—	$	1,851,752	$	1,851,752

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 June 30, 2018:

			Fair Value Measurements Using:
June 30, 2018	Carrying Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
			(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and due from banks	$	12,641,231	$	12,641,231	$	—	$	—	$	12,641,231
Interest bearing deposits with banks		1,293,179		1,293,179		—		—		1,293,179
Securities available-for-sale		463,752,185		—		463,752,185		—		463,752,185
Net loans		417,589,558		—		—		413,544,127		413,544,127
Financial liabilities
Deposits	$	764,610,980	$	—	$	764,674,148	$	—	$	764,674,148
Federal Funds Purchased		12,500,000		12,500,000		—		—		12,500,000
Federal Home Loan Bank advances		20,000,000		—		20,000,000		—		20,000,000
Securities Sold under Agreement to Repurchase		74,124,947		—		74,124,947		—		74,124,947

The following represents the carrying value and estimated fair value of the Corporation’s financial instruments at December 31, 2017:

			Fair Value Measurements Using:
December 31, 2017	Carrying Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
			(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and due from banks	$	17,962,990	$	17,962,990	$	—	$	—	$	17,962,990
Interest bearing deposits with banks		1,532,420		1,532,420		—		—		1,532,420
Securities available-for-sale		505,046,377		—		501,972,150		3,074,227		505,046,377
Net loans		402,390,574		—		—		401,706,081		401,706,081
Financial liabilities
Deposits	$	720,685,499	$	543,123,284	$	—	$	177,698,280	$	720,821,564
Federal Home Loan Bank advances		30,000,000		—		—		30,005,541		30,005,541
Securities Sold under Agreement to Repurchase		142,497,938		142,497,938		—		—		142,497,938

Fair Value, Measurements, Nonrecurring [Member]

Significant Unobservable Inputs (Level 3) Used in Valuation of Assets and Liabilities Measured at Fair Value

The following table presents information as of June 30, 2018 about significant unobservable inputs (Level 3) used in the valuation of assets and liabilities measured at fair value on a nonrecurring basis:

Financial instrument	Fair Value	Valuation Technique	Significant Unobservable Inputs	Range of Inputs
Impaired loans	$305,297	Appraised value of collateral less estimated costs to sell	Estimated costs to sell	25%