SECURITIES (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of U.S. Government and U.S.   Government sponsored enterprises	$	162,811,654	$	2,249,365	$	431,143	$	164,629,876
Mortgage-backed securities, residential		37,566,626		1,466,571		210		39,032,987
Collateralized mortgage obligations		1,475,620		25,081		-		1,500,701
Obligations of states and political subdivisions		34,172,574		1,066,825		4,862		35,234,537
Corporate bonds and notes		7,389,928		105,671		11,266		7,484,333
SBA loan pools		1,512,692		27,582		-		1,540,274
Trust Preferred securities		2,525,133		141,392		114,725		2,551,800
Corporate stocks		690,354		6,612,224		1,969		7,300,609
Total	$	248,144,581	$	11,694,711	$	564,175	$	259,275,117

	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:

	September 30, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	5,523,105	$	484,520	$	-	$	6,007,625
Time deposits with other financial institutions		1,020,680		18,995		-		1,039,675
Total	$	6,543,785	$	503,515	$	-	$	7,047,300

	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:

	September 30, 2013
	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within One Year	$	32,358,309	$	32,675,479	$	2,086,483	$	2,124,736
After One, But Within Five Years		157,176,957		159,943,408		3,069,714		3,305,202
After Five, But Within Ten Years		16,734,998		16,767,359		1,387,588		1,617,362
After Ten Years		629,025		514,300		-		-
		206,899,289		209,900,546		6,543,785		7,047,300
Mortgage-backed securities, residential		37,566,626		39,032,987
Collateralized mortgage obligations		1,475,620		1,500,701
SBA loan pools		1,512,692		1,540,274
Total	$	247,454,227	$	251,974,508	$	6,543,785	$	7,047,300

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 September 30, 2013 and September 30, 2012 are listed below:

		2013		2012
Proceeds	$	10,533,633	$	70,370,086
Gross gains	$	1,228	$	300,516
Gross losses	$	-	$	-
Tax expense	$	472	$	115,518

Investment securities available for sale in an unrealized loss position

The following tables summarize the investment securities available for sale with unrealized losses at September 30, 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
September 30, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S.   Government and U.S.   Government sponsored   Enterprises	$	61,924,270	$	431,143	$	-	$	-	$	61,924,270	$	431,143
Mortgage-backed securities,    residential		113,804		210		-		-		113,804		210
Obligations of states and   political subdivisions		1,003,268		4,579		250,635		283		1,253,903		4,862
Corporate bonds		2,735,068		11,266		-		-		2,735,068		11,266
Trust preferred securities		-		-		514,300		114,725		514,300		114,725
Corporate stocks		-		-		1,668		1,969		1,668		1,969
Total temporarily         impaired securities	$	65,776,410	$	447,198	$	766,603	$	116,977	$	66,543,013	$	564,175

	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 and nine-month periods ending September 30, 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, September 30,	$	3,506,073	$	3,506,073

Beginning balance, July 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, September 30,	$	3,506,073	$	3,506,073