SECURITIES (Tables)

3 Months Ended

Mar. 31, 2013

SECURITIES [Abstract]

Amortized cost and estimated fair value of securities available for sale

Amortized cost and estimated fair value of securities available for sale are as follows:

	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	139,225,086	$	3,294,760	$	22,104	$	142,497,742
Mortgage-backed securities, residential		25,488,094		1,668,233		-		27,156,327
Collateralized mortgage obligations		2,912,794		37,515		-		2,950,309
Obligations of states and political subdivisions		38,450,901		1,579,392		927		40,029,366
Corporate bonds and notes		11,409,872		201,644		-		11,611,516
SBA loan pools		1,601,918		38,541		-		1,640,459
Trust Preferred securities		2,521,276		130,561		132,200		2,519,637
Corporate stocks		734,384		6,168,863		1,969		6,901,278
Total	$	222,344,325	$	13,119,509	$	157,200	$	235,306,634

	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	138,041,393	$	3,549,821	$	-	$	141,591,214
Mortgage-backed securities, residential		29,591,883		1,923,366		-		31,515,249
Collateralized mortgage obligations		3,494,642		48,718		-		3,543,360
Obligations of states and political subdivisions		39,174,595		1,641,510		1,383		40,814,722
Corporate bonds and notes		11,412,167		239,468		-		11,651,635
SBA loan pools		1,682,736		41,404		-		1,724,140
Trust preferred securities		2,519,379		134,959		183,425		2,470,913
Corporate stocks		736,495		5,645,753		7,718		6,374,530
Total	$	226,653,290	$	13,224,999	$	192,526	$	239,685,763

Amortized cost and estimated fair value of securities held to maturity

Amortized cost and estimated fair value of securities held to maturity are as follows:

	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	7,626,274	$	679,909	$	-	$	8,306,183
Time deposits with other financial institutions		2,271,938		32,924		-		2,304,862
Total		9,898,212		712,833		-		10,611,045

	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	5,748,453	$	673,033	$	-	$	6,421,486

Amortized cost and estimated fair value of debt securities by contractual maturity

The amortized cost and estimated fair value of debt securities are shown below by expected maturity.  Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Securities not due at a single maturity date are shown separately:

	March 31, 2013
	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized			Fair
	Cost		Value		Cost			Value
Within One Year	$	26,909,544	$	27,093,364	$	4,869,367		$	4,943,587
After One, But Within Five Years		158,776,821		163,250,188		3,494,451			3,792,420
After Five, But Within Ten Years		5,291,745		5,817,884		1,534,394			1,875,038
After Ten Years		629,025		496,825		-			-
		191,607,135		196,658,261		9,898,212			10,611,045
Mortgage-backed securities, residential		25,488,094		27,156,327		-			-
Collateralized mortgage obligations		2,912,794		2,950,309		-				-
SBA loan pools		1,601,918		1,640,459			-			-
Total	$	221,609,941	$	228,405,356	$	9,898,212		$	10,611,045

Proceeds from sales and calls of securities resulting in gains or losses

The proceeds from sales and calls of securities resulting in gains or losses at March 31, 2013 and March 31, 2012 are listed below:

	2013		2012
Proceeds	$	-	$	25,679,688
Gross gains	$	-	$	297,169
Gross losses	$	-	$	-
Tax expense	$	-	$	115,666

Investment securities available for sale in an unrealized loss position

The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2013 and December 31, 2012 by aggregated major security type and length of time in a continuous unrealized loss position:

	Less than 12 months				12 months or longer				Total
March 31, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	21,733,280	$	22,104	$	-	$	-	$	21,733,280	$	22,104
Obligations of states and   political subdivisions		-		-		250,645		927		250,645		927
Trust preferred securities		-		-		496,825		132,200		496,825		132,200
Corporate stocks		-		-		1,669		1,969		1,669		1,969
Total temporarily impaired securities	$	21,733,280	$	22,104	$	749,139	$	135,096	$	22,482,419	$	157,200

	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2012
Obligations of states and political subdivisions	$	-	$	-	$	430,166	$	1,383	$	430,166	$	1,383
Trust preferred securities		-		-		445,600		183,425		445,600		183,425
Corporate stocks		-		-		45,912		7,718		45,912		7,718
Total temporarily impaired securities	$	-	$	-	$	921,678	$	192,526	$	921,678	$	192,526

Roll forward of the cumulative credit losses recognized in earnings

The tables below present a roll forward of the cumulative credit losses recognized in earnings for the three-month periods ending March 31, 2013 and 2012:

	2013		2012
Beginning balance, January 1,	$	3,506,073	$	3,506,073
Amounts related to credit loss for which an other-than-temporary  impairment was not previously recognized		-		-
Additions/Subtractions:
Amounts realized for securities sold during the period		-		-
Amounts related to securities for which the company intends to sell or that it will be more likely than not that the company will be required to sell prior to recovery of amortized cost basis		-		-
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security		-		-
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized		-		-
Ending balance, March 31,	$	3,506,073	$	3,506,073