Bank of South Carolina (BKSC) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 06, 2016
Document And Entity Information
Entity Registrant Name	BANK OF SOUTH CAROLINA CORP
Entity Central Index Key	1,007,273
Document Type	10-Q
Trading Symbol	BKSC
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,928,507
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets:
Cash and due from banks	$ 7,622,989	$ 5,295,924
Interest-bearing deposits in other bank	30,503,030	23,898,862
Investment securities available for sale	107,353,804	119,997,585
Mortgage loans to be sold	3,929,539	5,820,239
Loans	253,325,633	242,622,705
Less: Allowance for loan losses	(3,436,762)	(3,417,827)
Net loans	249,888,871	239,204,878
Premises, equipment and leasehold improvements, net	2,265,079	2,289,228
Other real estate owned	521,943	620,394
Accrued interest receivable	1,040,677	1,284,063
Other assets	568,060	761,339
Total assets	403,693,992	399,172,512
Deposits:
Non-interest-bearing demand	119,022,680	122,073,396
Interest-bearing demand	96,992,732	84,977,640
Money market accounts	63,935,267	70,233,422
Time deposits over $250,000	24,095,180	25,896,768
Other time deposits	28,657,047	28,871,044
Other savings deposits	28,966,396	26,666,342
Total deposits	361,669,302	358,718,612
Accrued interest payable and other liabilities	1,694,180	1,302,188
Total Liabilities	$ 363,363,482	$ 360,020,800
Shareholders' Equity
Common Stock-No par value: 12,000,000 shares authorized; shares issued 5,158,903 at March 31, 2016 and 5,157,996 at December 31, 2015; shares outstanding 4,917,507 at March 31, 2016 and 4,916,600 at December 31, 2015
Additional paid in capital	$ 36,372,788	$ 36,341,744
Retained earnings	4,621,294	4,064,834
Treasury stock; 241,396 shares at March 31, 2016 and December 31, 2015	(2,247,415)	(2,247,415)
Accumulated other comprehensive income, net of income taxes	1,583,843	992,549
Total shareholders' equity	40,330,510	39,151,712
Total liabilities and shareholders' equity	$ 403,693,992	$ 399,172,512

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common Stock, shares authorized	12,000,000	12,000,000
Common Stock, shares issued	5,158,903	5,157,996
Common Stock, shares outstanding	4,917,507	4,916,600
Treasury stock, shares	241,396	241,396

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest and fee income
Loans, including fees	$ 3,034,043	$ 2,864,766
Taxable securities	323,133	339,781
Tax-exempt securities	239,314	263,181
Other	35,575	6,874
Total interest and fee income	3,632,065	3,474,602
Interest expense
Deposits	$ 94,139	92,734
Short-term borrowings		737
Total interest expense	$ 94,139	93,471
Net interest income	3,537,926	3,381,131
Provision for loan losses	45,000	5,000
Net interest income after provisions for loan losses	3,492,926	3,376,131
Other income
Service charges, fees and commissions	260,531	237,285
Mortgage banking income	351,873	377,146
Other non-interest income	5,689	$ 4,914
Loss on sale of other real estate	(13,450)
Gain on sale of securities	187,936	$ 111,313
Total other income	792,579	730,658
Other expense
Salaries and employee benefits	1,515,027	1,416,173
Net occupancy expense	376,399	363,599
Other operating expenses	631,272	559,282
Total other expense	2,522,698	2,339,054
Income before income tax expense	1,762,807	1,767,735
Income tax expense	567,071	562,775
Net income	$ 1,195,736	$ 1,204,960
Weighted average shares outstanding
Basic (in shares)	4,917,334	4,907,223
Diluted (in shares)	5,067,563	5,054,687
Earnings per common share
Basic income per common share (in dollars per share)	$ 0.24	$ 0.25
Diluted income per common share (in dollars per share)	$ 0.24	$ 0.24

CONSOLIDATED STATEMENTS OF INC5

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	Aug. 27, 2015
Income Statement [Abstract]
Stock dividend, percent	10.00%

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 1,195,736	$ 1,204,960
Other comprehensive income:
Unrealized gain on securities arising during the period (net of tax)	709,731	682,022
Reclassification adjustment for securities gains realized in net income	(187,936)	(111,313)
Other comprehensive income, before tax	521,795	570,709
Income tax effect related to items of other comprehensive income	69,499	41,186
Other comprehensive income, after tax	591,294	611,895
Total comprehensive income	$ 1,787,030	$ 1,816,855

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($)	ADDITIONAL PAID IN CAPITAL [Member]	RETAINED EARNINGS [Member]	TREASURY STOCK [Member]	ACCUMULATED OTHER COMPREHENSIVE INCOME [Member]	Total
Balance beginning at Dec. 31, 2014	$ 28,779,108	$ 8,640,291	$ (1,902,439)	$ 1,243,022	$ 36,759,982
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,204,960			1,204,960
Other comprehensive income				611,895	611,895
Stock-based compensation expense	19,192				19,192
Cash dividends ($0.13 per common share)		(579,981)			(579,981)
Balance ending at Mar. 31, 2015	28,798,300	9,265,270	(1,902,439)	1,854,917	38,016,048
Balance beginning at Dec. 31, 2015	36,341,744	4,064,834	(2,247,415)	992,549	39,151,712
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		1,195,736			1,195,736
Other comprehensive income				591,294	591,294
Exercise of stock options	12,462				12,462
Stock-based compensation expense	18,582				18,582
Cash dividends ($0.13 per common share)		(639,276)			(639,276)
Balance ending at Mar. 31, 2016	$ 36,372,788	$ 4,621,294	$ (2,247,415)	$ 1,583,843	$ 40,330,510

CONSOLIDATED STATEMENTS OF SHA8

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Stockholders' Equity [Abstract]
Cash dividends	$ 0.13	$ 0.13

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 1,195,736	$ 1,204,960
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	48,807	48,128
Gain on sale of securities	(187,936)	$ (111,313)
Loss on sale of other real estate	13,450
Provision for loan losses	45,000	$ 5,000
Stock-based compensation expense	18,582	19,192
Net amortization of unearned discounts on investments	44,680	25,813
Origination of mortgage loans held for sale	(15,696,295)	(18,927,142)
Proceeds from sale of mortgage loans held for sale	17,586,995	22,046,921
Decrease in accrued interest receivable and other assets	277,334	138,244
Increase in accrued interest payable and other liabilities	391,874	570,085
Net cash provided by operating activities	3,738,227	5,019,888
Cash flows from investing activities:
Proceeds from maturities of investment securities available for sale	2,000,000	1,400,000
Proceeds from sale of investment securities available for sale	15,629,464	10,845,887
Purchase of investment securities available for sale	(4,091,802)	$ (5,111,800)
Proceeds from sale of other real estate owned	85,001
Net increase in loans	(10,728,993)	$ (3,575,680)
Purchase of premises, equipment, and leasehold improvements	(24,658)	(85,607)
Net cash provided by investing activities	2,869,012	3,472,800
Cash flows from financing activities:
Net increase in deposit accounts	$ 2,950,690	10,535,019
Net decrease in short-term borrowings		(2,999,664)
Dividends paid	$ (639,158)	$ (579,981)
Stock options exercised	12,462
Net cash provided by financing activities	2,323,994	$ 6,955,374
Net increase in cash and cash equivalents	8,931,233	15,448,062
Cash and cash equivalents at beginning of period	29,194,786	10,379,048
Cash and cash equivalents at end of period	38,126,019	25,827,110
Cash paid during the period for:
Interest	$ 100,926	$ 98,961
Income taxes
Supplemental disclosure for non-cash investing and financing activity:
Change in unrealized gain on available for sale securities, net of tax	$ 591,294	$ 611,895
Change in dividends payable	$ 118

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Note 1: Nature of Business and Basis of Presentation Organization The Bank of South Carolina (the “Bank”) was organized on October 22, 1986 and opened for business as a state-chartered financial institution on February 26, 1987, in Charleston, South Carolina. The Bank was reorganized into a wholly-owned subsidiary of Bank of South Carolina Corporation (the “Company”), effective April 17, 1995. At the time of the reorganization, each outstanding share of the Bank was exchanged for two shares of Bank of South Carolina Corporation Stock. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Bank of South Carolina Corporation (the “Company”) and its wholly-owned subsidiary, The Bank of South Carolina (the “Bank”). In consolidation, all significant intercompany balances and transactions have been eliminated. References to “we”, “us”, “our”, “the Bank”, or “the Company” refer to the parent and its subsidiary that are consolidated for financial purposes. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for the interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the SEC on March 4, 2016. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. Accounting Estimates and Assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ significantly from these estimates and assumptions. Material estimates generally susceptible to significant change are related to the determination of the allowance for loan losses, impaired loans, other real estate owned, asset prepayment rates and other-than-temporary impairment of investment securities. Reclassification Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. Such reclassifications had no effect on shareholders’ equity or the net income as previously reported. Income per share Basic income per share represents income available to shareholders divided by the weighted-average number of common shares outstanding during the period. Dilutive income per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. The only potential common share equivalents are those related to stock options. Stock options which are anti-dilutive are excluded from the calculation of diluted net income per share. The dilutive effect of options outstanding under our stock compensation plan is reflected in diluted earnings per share by the application of the treasury stock method. Retroactive recognition has been given for the effects of all stock dividends. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. We have reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure. Recent Accounting Pronouncements The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting and/or disclosure of financial information by the Company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for reporting periods beginning after December 15, 2017. We will apply this guidance using a modified retrospective approach. We do not expect this amendment to have a material effect on our consolidated financial statements. In August 2015, the FASB deferred the effective date of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for reporting periods beginning after December 15, 2017. We will apply this guidance using the modified retrospective approach. We do not expect this amendment to have a material effect on our financial statements. In June 2014, the FASB issued guidance which makes limited amendments to the guidance on accounting for certain repurchase agreements. The guidance (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. The amendments became effective for the Company for the first interim or annual period beginning after December 31, 2014. We applied the guidance by making a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This adjustment did not have a material effect on our financial statements. In August 2014, the FASB issued guidance that is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements, management will need to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the organization’s ability to continue as a going concern within one year after the date that the financial statements are issued. This amendment will be effective for annual periods ending after December 31, 2016, and for annual and interim periods thereafter. We do not expect this amendment to have any effect on our financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendment will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We will apply the guidance prospectively. We do not expect this amendment to have a material effect on our financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendment will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. We do not expect this amendment to have a material effect on our financial statements. In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. The amendment will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 , In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (ASC), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not expect these amendments to have a material effect on our financial statements. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. We do not expect these amendments to have a material effect on our financial statements. In January 2016, the FASB amended the Financial Instruments topic of Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. We do not expect this amendment to have a material effect on our financial statements. In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the effect that implementation of the new standard will have on our financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. . In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods . Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Note 2: Investment Securities The amortized cost and fair value of investment securities available for sale are summarized as follows: March 31, 2016 AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES ESTIMATED FAIR VALUE U.S. Treasury Notes $ 23,989,841 $ 252,503 $ — $ 24,242,344 Government-Sponsored Enterprises 46,018,755 897,653 — 46,916,408 Municipal Securities 34,831,179 1,367,484 3,611 36,195,052 Total $ 104,839,775 $ 2,517,640 $ 3,611 $ 107,353,804 December 31, 2015 AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES ESTIMATED FAIR VALUE U.S. Treasury Notes $ 34,517,996 $ 161,037 $ 45,360 $ 34,633,673 Government-Sponsored Enterprises 51,136,426 281,650 133,744 51,284,332 Municipal Securities 32,767,694 1,340,610 28,724 34,079,580 Total $ 118,422,116 $ 1,783,297 $ 207,828 $ 119,997,585 The following table presents the amortized cost and estimated fair value of investment securities available for sale by contractual maturity for the periods indicated: March 31, 2016 December 31, 2015 AMORTIZED COST ESTIMATED FAIR VALUE AMORTIZED COST ESTIMATED FAIR VALUE Due in one year or less $ 1,857,755 $ 1,870,311 $ 3,311,346 $ 3,326,249 Due in one year to five years 65,340,811 66,667,079 69,870,930 70,584,179 Due in five years to ten years 34,889,466 36,018,411 41,930,801 42,670,986 Due in ten years and over 2,751,743 2,798,003 3,309,039 3,416,171 Total $ 104,839,775 $ 107,353,804 $ 118,422,116 $ 119,997,585 Securities pledged to secure deposits and repurchase agreements at March 31, 2016 and December 31, 2015, had a carrying amount of $46.5 million and $48.0 million, respectively. The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2016 and December 31, 2015. We believe that all unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. Less Than 12 months 12 months or longer Total Available for sale # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses As of March 31, 2016 U.S. Treasury Notes — $ — $ — — $ — $ — — $ — $ — Government Sponsored Enterprises — — — — — — — — — Municipal Securities 2 785,389 3,611 — — — 2 785,389 3,611 Total 2 $ 785,389 $ 3,611 — $ — $ — 2 $ 785,389 $ 3,611 As of December 31, 2015 U.S. Treasury Notes 2 $ 10,064,063 $ 45,360 — $ — $ — 2 $ 10,064,063 $ 45,360 Government Sponsored Enterprises 2 7,475,445 38,538 1 5,002,335 95,206 3 12,477,780 133,744 Municipal Securities 6 4,361,149 28,724 — — — 6 4,361,149 28,724 Total 10 $ 21,900,657 $ 112,622 1 $ 5,002,335 $ 95,206 11 $ 26,902,992 $ 207,828 We received proceeds from sales of securities available for sale and gross realized gains and losses as follows: For the Three Months Ended March 31, 2016 2015 Gross proceeds $ 15,629,464 $ 10,845,887 Gross realized gains 187,936 111,313 Gross realized losses — — The tax provision related to these gains was $69,499 and $41,186 for the three months ended March 31, 2016 and 2015, respectively.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Loans and Allowance for Loan Losses	Note 3: Loans and Allowance for Loan Losses Major classifications of loans (net of deferred loan fees of $123,970 at March 31, 2016, and $118,188 at December 31, 2015) are as follows: March 31, 2016 December 31, 2015 Commercial Loans $ 52,101,572 $ 50,938,265 Commercial real estate: Commercial real estate construction 1,160,893 1,005,118 Commercial real estate other 121,300,195 115,736,034 Consumer Consumer real estate 73,239,469 69,777,307 Consumer other 5,523,504 5,165,981 253,325,633 242,622,705 Allowance for Loan losses (3,436,762 ) (3,417,827 ) Loans, net $ 249,888,871 $ 239,204,878 We had $104.1 million and $102.1 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at March 31, 2016 and at December 31, 2015, respectively. Our portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Our internal credit risk grading system is based on experience with similarly graded loans, industry best practices, and regulatory guidance. Our internally assigned grades pursuant to the Board-approved lending policy are as follows: ● Excellent ● Good ● Satisfactory ● Watch ● OAEM ● Substandard ● Doubtful ● Loss The following table illustrates credit risks by category and internally assigned grades at March 31, 2016 and December 31, 2015. “Pass” includes loans internally graded as excellent, good and satisfactory. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 48,126,073 $ 730,876 $ 115,601,053 $ 69,362,054 $ 5,262,539 $ 239,082,595 Watch 1,010,043 430,017 926,678 2,471,241 133,234 4,971,213 OAEM 1,191,770 — 1,154,784 733,461 24,574 3,104,589 Substandard 1,773,686 — 3,617,680 672,713 103,157 6,167,236 Doubtful — — — — — — Loss — — — — — — Total $ 52,101,572 $ 1,160,893 $ 121,300,195 $ 73,239,469 $ 5,523,504 $ 253,325,633 December 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 46,865,088 $ 572,101 $ 110,040,948 $ 65,941,806 $ 4,857,576 $ 228,277,519 Watch 1,096,200 433,017 940,073 2,490,339 175,489 5,135,118 OAEM 1,337,002 — 1,203,518 99,743 26,961 2,667,224 Substandard 1,639,975 — 3,551,495 1,245,419 105,955 6,542,844 Doubtful — — — — — — Loss — — — — — — Total $ 50,938,265 $ 1,005,118 $ 115,736,034 $ 69,777,307 $ 5,165,981 $ 242,622,705 The following tables include an aging analysis of the recorded investment of past-due financing receivable by class: March 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days and Accuring Interest Commercial Loans $ 39,664 $ 1,054,310 — $ 1,093,974 $ 51,007,598 $ 52,101,572 $ — Commercial real estate: Commercial real estate construction — — — — 1,160,893 1,160,893 — Commercial real estate other — 986,887 1,817,056 2,803,943 118,496,252 121,300,195 — Consumer Consumer real estate — — 150,255 150,255 73,089,214 73,239,469 — Consumer other — 12,176 2,448 14,624 5,508,880 5,523,504 — Total $ 39,664 $ 2,053,373 $ 1,969,759 $ 4,062,796 $ 249,262,837 $ 253,325,633 $ — December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days and Accuring Interest Commercial Loans $ 1,162,676 $ 250,370 $ 4,317 $ 1,417,363 $ 49,520,902 $ 50,938,265 $ — Commercial real estate: Commercial real estate construction — — — — 1,005,118 1,005,118 — Commercial real estate other 91,607 1,215,473 1,152,774 2,459,854 113,276,180 115,736,034 — Consumer Consumer real estate 68,240 249,754 82,015 400,009 69,377,298 69,777,307 — Consumer other 69,333 58,116 6,056 133,505 5,032,476 5,165,981 1,606 Total $ 1,391,856 $ 1,773,713 $ 1,245,162 $ 4,410,731 $ 238,211,974 $ 242,622,705 $ 1,606 There were no loans at March 31, 2016 and one loan at December 31, 2015, over 90 days past due and still accruing interest. The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual For the Period Ending March 31, 2016 December 31, 2015 Commercial Loans $ 3,862 $ 4,317 Commercial real estate: Commercial real estate construction — — Commercial real estate other 2,453,166 1,970,306 Consumer Consumer real estate 150,255 82,015 Consumer other 4,857 4,450 Total $ 2,612,140 $ 2,061,088 The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance by loan category for the three months ended March 31, 2016 and March 31, 2015. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Beginning Balance $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Charge-offs (33,045 ) — — — (1,050 ) (34,095 ) Recoveries 1,284 — 6,000 — 746 8,030 Provision 635,557 (15,593 ) (242,391 ) (328,228 (4,345 ) 45,000 Ending Balance $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 March 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Beginning Balance $ 1,211,130 $ 42,904 $ 1,112,387 $ 863,351 $ 105,076 $ 3,334,848 Charge-offs — — (21,000 ) — — (21,000 ) Recoveries — — 15,000 — 240 15,240 Provision (110,328 ) 1,792 85,335 (12,093 ) 40,294 5,000 Ending Balance $ 1,100,802 $ 44,696 $ 1,191,722 $ 851,258 $ 145,610 $ 3,334,088 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Esate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,103,564 $ — $ 338,142 $ 150,545 $ 103,157 $ 1,695,408 Collectively evaluated for impairment 397,086 44,268 770,561 462,697 66,742 1,741,354 Total Allowance for Losses $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 Loan Receivable Individually evaluated for impairment $ 1,773,687 $ — $ 4,020,095 $ 604,472 $ 171,397 $ 6,569,651 Collectively evaluated for impairment 50,327,885 1,160,893 117,280,100 72,634,997 5,352,107 246,755,982 Total Loans Receivable $ 52,101,572 $ 1,160,893 $ 121,300,195 $ 73,239,469 $ 5,523,504 $ 253,325,633 December 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Esate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 387,979 $ — $ 253,105 $ 342,320 $ 100,103 $ 1,083,507 Collectively evaluated for impairment 508,875 59,861 1,091,989 599,150 74,445 2,334,320 Total Allowance for Losses $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Loan Receivable Individually evaluated for impairment $ 1,639,974 $ — $ 3,551,495 $ 1,245,419 $ 105,819 $ 6,542,707 Collectively evaluated for impairment 49,298,291 1,005,118 112,184,539 68,531,888 5,060,162 236,079,998 Total Loans Receivable $ 50,938,265 $ 1,005,118 $ 115,736,034 $ 69,777,307 $ 5,165,981 $ 242,622,705 As of March 31, 2016 and December 31, 2015, loans individually evaluated and considered impaired are presented in the following table: Impaired and Restructured Loans As of March 31, 2016 December 31, 2015 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 670,123 $ 670,123 $ — $ 692,831 $ 692,831 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 2,686,274 2,686,274 — 2,476,018 2,476,018 — Consumer Real Estate 450,402 450,402 — 450,402 450,402 — Consumer Other 68,240 68,240 — 5,715 5,715 — $ 3,875,039 $ 3,875,039 $ — $ 3,624,966 $ 3,624,966 $ — With an allowance recorded: Commercial $ 1,103,564 $ 1,103,564 $ 1,103,564 $ 947,143 $ 947,143 $ 387,979 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,333,821 1,333,821 338,142 1,075,477 1,075,477 253,105 Consumer Real Estate 154,070 154,070 150,545 795,017 795,017 342,320 Consumer Other 103,157 103,157 103,157 100,104 100,104 100,103 $ 2,694,612 $ 2,694,612 $ 1,695,408 $ 2,917,741 $ 2,917,741 $ 1,083,507 Total Commercial $ 1,773,687 $ 1,773,687 $ 1,103,564 $ 1,639,974 $ 1,639,974 $ 387,979 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 4,020,095 4,020,095 338,142 3,551,495 3,551,495 253,105 Consumer Real Estate 604,472 604,472 150,545 1,245,419 1,245,419 342,320 Consumer Other 171,397 171,397 103,157 105,819 105,819 100,103 $ 6,569,651 $ 6,569,651 $ 1,695,408 $ 6,542,707 $ 6,542,707 $ 1,083,507 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. Three Months Ended March 31, 2016 March 31, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 1,106,771 $ 16,647 $ 784,435 $ 11,992 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,334,158 6,705 3,290,380 42,894 Consumer Real Estate 154,105 1,119 522,468 5,385 Consumer Other 106,011 2,374 — — $ 2,701,045 $ 26,845 $ 4,597,283 $ 60,271 With an allowance recorded: Commercial $ 682,992 $ 11,033 $ 1,176,492 $ 13,207 Commercial Real Estate Construction — — — — Commercial Real Estate Other 2,650,492 29,127 1,111,464 12,938 Consumer Real Estate 450,403 6,742 748,701 5,431 Consumer Other 68,240 — 88,346 1,400 $ 3,852,127 $ 46,902 $ 3,125,003 $ 32,976 Total Commercial $ 1,789,763 $ 27,680 $ 1,960,927 $ 25,199 Commercial Real Estate Construction — — — — Commercial Real Estate Other 3,984,650 35,832 4,401,844 55,832 Consumer Real Estate 604,508 7,861 1,271,169 10,816 Consumer Other 174,251 2,374 88,346 1,400 $ 6,553,172 $ 73,747 $ 7,722,286 $ 93,247 Restructured loans (loans, still accruing interest, which have been renegotiated at below-market interest rates or for which other concessions have been granted) were $451,264 (3 loans) and $458,268 (3 loans) at March 31, 2016 and December 31, 2015, respectively. Restructured loans were granted extended payment terms with no principal reduction. All restructured loans were performing as agreed as of March 31, 2016 and December 31, 2015, respectively. There were no additional loans identified as a troubled debt restructuring (“TDR”) during the three months ended March 31, 2016 or 2015. No TDRs defaulted during the three months ended March 31, 2016 and 2015, which were modified within the previous twelve months.

Disclosure Regarding Fair Value

Disclosure Regarding Fair Value of Financial Statements	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Disclosure Regarding Fair Value of Financial Statements	Note 4: Disclosure Regarding Fair Value of Financial Statements Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs, which are developed based on market data we have obtained from independent sources, are ones that market participants would use in pricing an asset or liability. Unobservable inputs, which are developed based on the best information available in the circumstances, reflect our estimate of assumptions that market participants would use in pricing an asset or liability. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. ● Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. ● Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. Fair value estimates are made at a specific point of time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale our entire holdings of a particular financial instrument. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based on judgements regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore cannot be determined with precision. Changes in any of these assumptions used in calculating fair value also would affect significantly the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Investment Securities Available for Sale Securities available for sale are recorded at fair value on a recurring basis and are based upon quoted prices if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange such as the New York Stock Exchange, or by dealers or brokers in active over-the counter markets. Level 2 securities include mortgage backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Derivative Instruments Derivative instruments include interest rate lock commitments and forward sale commitments. These instruments are valued based on the change in the value of the underlying loan between the commitment date and the end of the period. We classify these instruments as Level 3. The fair value of these commitments was not significant at March 31, 2016 or December 31, 2015. We had no embedded derivative instruments requiring separate accounting treatment. We had freestanding derivative instruments consisting of fixed rate conforming loan commitments as interest rate locks and commitments to sell fixed rate conforming loans on a best efforts basis. We do not currently engage in hedging activities. Based on short term fair value of the mortgage loans held for sale (derivative contract), our derivative instruments were immaterial to our consolidated financial statements as of March 31, 2016 and December 31, 2015. Assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Quoted Market Price in Significant Other Observable Inputs Significant Unobservable Inputs Total U.S. Treasury Notes $ 24,242,344 $ — $ — $ 24,242,344 Government-Sponsored Enterprises — 46,916,408 — 46,916,408 Municipal Securities — 30,945,701 5,249,351 36,195,052 Total $ 24,242,344 $ 77,862,109 $ 5,249,351 $ 107,353,804 December 31, 2015 Quoted Market Price in Significant Other Observable Inputs Significant Unobservable Inputs Total U.S. Treasury Notes $ 34,633,673 $ — $ — $ 34,633,673 Government-Sponsored Enterprises — 51,284,332 — 51,284,332 Municipal Securities — 28,861,902 5,217,678 34,079,580 Total $ 34,633,673 $ 80,146,234 $ 5,217,678 $ 119,997,585 There were no liabilities recorded at fair value on a recurring basis as of March 31, 2016 or December 31, 2015. The following table reconciles the changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2016 and the three months ended March 31, 2015: March 31, 2016 March 31, 2015 Beginning Balance $ 5,217,678 $ 1,377,089 Total gains or (losses) (realized/unrealized) included in earnings — — Included in other comprehensive income 31,673 (8,646 ) Purchases, issuances and settlements — — Transfers in and/or out of level 3 — — Ending balance $ 5,249,351 $ 1,368,443 There were no transfers between fair value levels during the three months ended March 31, 2016 or March 31, 2015. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Other Real Estate Owned (OREO) Loans, secured by real estate, are adjusted to the lower of the recorded investment in the loan or the fair value of the real estate upon transfer to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or our estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraisal, we record the asset as nonrecurring Level 2. When an appraised value is not available or we determine the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the asset as nonrecurring Level 3. Impaired Loans Impaired loans are carried at the lower of recorded investment or fair value. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, we review the most recent appraisal and if it is over 12 to 18 months old we may request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, we may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. Specifically as an example, in situations where the collateral on a nonperforming commercial real estate loan is out of our primary market area, we would typically order an independent appraisal immediately, at the earlier of the date the loan becomes nonperforming or immediately following the determination that the loan is impaired. However, as a second example, on a nonperforming commercial real estate loan where we are familiar with the property and surrounding areas and where the original appraisal value far exceeds the recorded investment in the loan, we may perform an internal analysis whereby the previous appraisal value would be reviewed considering recent current conditions, and known recent sales or listings of similar properties in the area, and any other relevant economic trends. This analysis may result in the call for a new appraisal. These valuations are reviewed and updated on a quarterly basis. In accordance with Accounting Standards Codification (“ASC”) 820 “Fair Value Measurement”, impaired loans, where an allowance is established based on the fair value of collateral, require classification in the fair value hierarchy. At March 31, 2016 and December 31, 2015, substantially all of the impaired loans were evaluated based on the fair value of the collateral. These impaired loans are classified as Level 3. Impaired loans measured using discounted future cash flows are not deemed to be measured at fair value. Loans Held for Sale Loans held for sale include mortgage loans and are carried at the lower of cost or market value. The fair values of mortgage loans held for sale are based on current market rates from investors within the secondary market for loans with similar characteristics. Carrying value approximates fair value. These loans are classified as Level 2. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents information about certain assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2016, and December 31, 2015: March 31, 2016 Quoted Market Price in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Impaired loans $ — $ — $ 4,874,243 $ 4,874,243 Other real estate owned — — 521,943 521,943 Loans held for sale — 3,929,539 — 3,929,539 Total $ — $ 3,929,539 $ 5,396,186 $ 9,325,725 December 31, 2015 Quoted Market Price in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Impaired loans $ — $ — $ 5,459,200 $ 5,459,200 Other real estate owned — — 620,394 620,394 Loans held for sale — 5,820,239 — 5,820,239 Total $ — $ 5,820,239 $ 6,079,594 $ 11,899,833 There were no liabilities measured at fair value on a nonrecurring basis as of March 31, 2016 or December 31, 2015. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2016: Inputs Valuation Technique Unobservable Input General Range of Inputs Impaired Loans Discounted Appraisals Collateral Discounts 0 – 35% Other Real Estate Owned Appraisal Value/ Comparison Sales/Other Estimates Appraisals and/or Sales of Comparable Properties Appraisals Discounted 10% to 20% for Sales Commissions and Other Holding Costs Accounting standards require disclosure of fair value information for all of our assets and liabilities that are considered financial instruments, whether or not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value estimates are made as of a specific point in time based on the characteristics of the financial instruments and the relevant market information. When available, quoted market prices are used. In other cases, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties and are significantly affected by the assumptions used and the judgments made regarding risk characteristics of various financial instruments, discount rates, prepayments, and estimates of future cash flows, future expected loss experience and other factors. Changes in assumptions could significantly affect these estimates. Derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may or may not be realized in an immediate sale of the instrument. Under the accounting standard, fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of the assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts of existing financial instruments do not represent the underlying value of those instruments on our books. The following describes the methods and assumptions we use in estimating the fair values of financial instruments: a. Cash and due from banks, interest-bearing deposits in other banks The carrying value approximates fair value. All mature within 90 days and do not present unanticipated credit concerns. b. Investment securities available for sale The fair value of investment securities is derived from quoted market prices. c. Loans The carrying values of variable rate consumer and commercial loans and consumer and commercial loans with remaining maturities of three months or less, approximate fair value. The fair values of fixed rate consumer and commercial loans with maturities greater than three months are determined using a discounted cash flow analysis and assume the rate being offered on these types of loans at March 31, 2016 and December 31, 2015, approximate market. The carrying value of mortgage loans held for sale approximates fair value. For lines of credit, the carrying value approximates fair value. d. Deposits The estimated fair value of deposits with no stated maturity is equal to the carrying amount. The fair value of time deposits is estimated by discounting contractual cash flows, using interest rates currently being offered on the deposit products. The fair value estimates for deposits do not include the benefit that results from the low cost funding provided by the deposit liabilities as compared to the cost of alternative forms of funding (deposit base intangibles). d. Short-term borrowings The carrying amount approximates fair value due to the short-term nature of these instruments. e. Accrued interest receivable and payable Since these financial instruments will typically be received or paid within three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. f. Loan commitments Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of March 31, 2016 and December 31, 2015. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. March 31, 2016 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 7,622,989 $ 7,622,989 $ 7,622,989 $ $ Interest-bearing deposits in other banks 30,503,030 30,503,030 30,503,030 Investments available for sale 107,353,804 107,353,804 24,242,344 77,862,109 5,249,351 Mortgage loans to be sold 3,929,539 3,929,539 3,929,539 Loans 253,325,633 253,194,574 253,194,574 Accrued interest receivable 1,040,677 1,040,677 1,040,677 Financial Liabilities: Demand deposits 308,917,075 308,917,075 308,917,075 Time deposits 52,752,227 52,764,119 52,764,119 Accrued interest payable 66,634 66,634 66,634 December 31, 2015 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,295,924 $ 5,295,924 $ 5,295,924 $ $ Interest-bearing deposits in other banks 23,898,862 23,898,862 23,898,862 Investments available for sale 119,997,585 119,997,585 34,633,673 80,146,234 5,217,678 Mortgage loans to be sold 5,820,239 5,820,239 5,820,239 Loans 242,622,705 242,581,154 242,581,154 Accrued interest receivable 1,284,063 1,284,063 1,284,063 Financial Liabilities: Demand deposits 303,950,800 303,950,800 303,950,800 Time deposits 54,767,812 54,780,915 54,780,915 Accrued interest payable 73,421 73,421 73,421

Income Per Common Share

Income Per Common Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Income Per Common Share	Note 5: Income Per Common Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. March 31, 2016 March 31, 2015 Numerator: Net Income $ 1,195,736 $ 1,204,960 Denominator: Weighted average shares outstanding 4,917,334 4,907,223 Effect of dilutive shares 150,229 147,464 Weighted average shares outstanding-diluted 5,067,563 5,054,687 Earnings per share Basic $ 0.24 $ 0.25 Diluted $ 0.24 $ 0.24 On August 27, 2015, the Company’s Board of Directors declared a ten percent stock dividend to our shareholders. The record date was September 8, 2015 and the distribution date was September 28, 2015. Earnings per share and average shares outstanding have been adjusted to reflect the stock dividend in our consolidated financial statements.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Accumulated Other Comprehensive Income	Note 6: Accumulated Other Comprehensive Income The following table summarizes the components of accumulated other comprehensive income and changes in those components as of and for the three months March 31, 2016 and 2015: Available for sale securities Beginning Balance December 31, 2015 $ 992,549 Change in net unrealized gains on securities available for sale, net of income taxes 709,731 Reclasssification adjustment for net securities gains included in net income (187,936 ) Income tax expense 69,499 Balance at March 31, 2016 $ 1,583,843 Beginning Balance December 31, 2014 $ 1,243,022 Change in net unrealized gains on securities available for sale, net of income taxes 682,022 Reclasssification adjustment for net securities gains included in net income (111,313 ) Income tax expense 41,186 Balance at March 31, 2015 $ 1,854,917 The following table shows the line items in the consolidated Statements of Income affected by amounts reclassified from accumulated other comprehensive income: March 31, 2016 March 31, 2015 Gain on sale of investments, net $ 187,936 $ 111,313 Tax effect — — Total reclassification, net of tax $ 187,936 $ 111,313

Nature of Business and Basis 16

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Bank of South Carolina Corporation (the “Company”) and its wholly-owned subsidiary, The Bank of South Carolina (the “Bank”). In consolidation, all significant intercompany balances and transactions have been eliminated. References to “we”, “us”, “our”, “the Bank”, or “the Company” refer to the parent and its subsidiary that are consolidated for financial purposes.
Accounting Estimates and Assumptions	Accounting Estimates and Assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ significantly from these estimates and assumptions. Material estimates generally susceptible to significant change are related to the determination of the allowance for loan losses, impaired loans, other real estate owned, asset prepayment rates and other-than-temporary impairment of investment securities.
Reclassification	Reclassification Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. Such reclassifications had no effect on shareholders’ equity or the net income as previously reported.
Income per share	Income per share Basic income per share represents income available to shareholders divided by the weighted-average number of common shares outstanding during the period. Dilutive income per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. The only potential common share equivalents are those related to stock options. Stock options which are anti-dilutive are excluded from the calculation of diluted net income per share. The dilutive effect of options outstanding under our stock compensation plan is reflected in diluted earnings per share by the application of the treasury stock method. Retroactive recognition has been given for the effects of all stock dividends.
Subsequent Events	Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. We have reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting and/or disclosure of financial information by the Company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for reporting periods beginning after December 15, 2017. We will apply this guidance using a modified retrospective approach. We do not expect this amendment to have a material effect on our consolidated financial statements. In August 2015, the FASB deferred the effective date of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for reporting periods beginning after December 15, 2017. We will apply this guidance using the modified retrospective approach. We do not expect this amendment to have a material effect on our financial statements. In June 2014, the FASB issued guidance which makes limited amendments to the guidance on accounting for certain repurchase agreements. The guidance (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. The amendments became effective for the Company for the first interim or annual period beginning after December 31, 2014. We applied the guidance by making a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. This adjustment did not have a material effect on our financial statements. In August 2014, the FASB issued guidance that is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. In connection with preparing financial statements, management will need to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the organization’s ability to continue as a going concern within one year after the date that the financial statements are issued. This amendment will be effective for annual periods ending after December 31, 2016, and for annual and interim periods thereafter. We do not expect this amendment to have any effect on our financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendment will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We will apply the guidance prospectively. We do not expect this amendment to have a material effect on our financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendment will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. We do not expect this amendment to have a material effect on our financial statements. In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. The amendment will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 , In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (ASC), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We do not expect these amendments to have a material effect on our financial statements. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. We do not expect these amendments to have a material effect on our financial statements. In January 2016, the FASB amended the Financial Instruments topic of Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. We do not expect this amendment to have a material effect on our financial statements. In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the effect that implementation of the new standard will have on our financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. . In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods . Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of investment securities available for sale	The amortized cost and fair value of investment securities available for sale are summarized as follows: March 31, 2016 AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES ESTIMATED FAIR VALUE U.S. Treasury Notes $ 23,989,841 $ 252,503 $ — $ 24,242,344 Government-Sponsored Enterprises 46,018,755 897,653 — 46,916,408 Municipal Securities 34,831,179 1,367,484 3,611 36,195,052 Total $ 104,839,775 $ 2,517,640 $ 3,611 $ 107,353,804 December 31, 2015 AMORTIZED COST GROSS UNREALIZED GAINS GROSS UNREALIZED LOSSES ESTIMATED FAIR VALUE U.S. Treasury Notes $ 34,517,996 $ 161,037 $ 45,360 $ 34,633,673 Government-Sponsored Enterprises 51,136,426 281,650 133,744 51,284,332 Municipal Securities 32,767,694 1,340,610 28,724 34,079,580 Total $ 118,422,116 $ 1,783,297 $ 207,828 $ 119,997,585
Schedule of contractual maturity of investment securities available for sale	The following table presents the amortized cost and estimated fair value of investment securities available for sale by contractual maturity for the periods indicated: March 31, 2016 December 31, 2015 AMORTIZED COST ESTIMATED FAIR VALUE AMORTIZED COST ESTIMATED FAIR VALUE Due in one year or less $ 1,857,755 $ 1,870,311 $ 3,311,346 $ 3,326,249 Due in one year to five years 65,340,811 66,667,079 69,870,930 70,584,179 Due in five years to ten years 34,889,466 36,018,411 41,930,801 42,670,986 Due in ten years and over 2,751,743 2,798,003 3,309,039 3,416,171 Total $ 104,839,775 $ 107,353,804 $ 118,422,116 $ 119,997,585
Schedule of investment securities available for sale in a continuous unrealized loss position	We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. Less Than 12 months 12 months or longer Total Available for sale # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses As of March 31, 2016 U.S. Treasury Notes — $ — $ — — $ — $ — — $ — $ — Government Sponsored Enterprises — — — — — — — — — Municipal Securities 2 785,389 3,611 — — — 2 785,389 3,611 Total 2 $ 785,389 $ 3,611 — $ — $ — 2 $ 785,389 $ 3,611 As of December 31, 2015 U.S. Treasury Notes 2 $ 10,064,063 $ 45,360 — $ — $ — 2 $ 10,064,063 $ 45,360 Government Sponsored Enterprises 2 7,475,445 38,538 1 5,002,335 95,206 3 12,477,780 133,744 Municipal Securities 6 4,361,149 28,724 — — — 6 4,361,149 28,724 Total 10 $ 21,900,657 $ 112,622 1 $ 5,002,335 $ 95,206 11 $ 26,902,992 $ 207,828
Schedule of realized gains and losses	We received proceeds from sales of securities available for sale and gross realized gains and losses as follows: For the Three Months Ended March 31, 2016 2015 Gross proceeds $ 15,629,464 $ 10,845,887 Gross realized gains 187,936 111,313 Gross realized losses — —

Loans and Allowance for Loan 18

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Schedule of major classifications of loans	Major classifications of loans (net of deferred loan fees of $123,970 at March 31, 2016, and $118,188 at December 31, 2015) are as follows: March 31, 2016 December 31, 2015 Commercial Loans $ 52,101,572 $ 50,938,265 Commercial real estate: Commercial real estate construction 1,160,893 1,005,118 Commercial real estate other 121,300,195 115,736,034 Consumer Consumer real estate 73,239,469 69,777,307 Consumer other 5,523,504 5,165,981 253,325,633 242,622,705 Allowance for Loan losses (3,436,762 ) (3,417,827 ) Loans, net $ 249,888,871 $ 239,204,878
Schedule of credit risks by category and internally assigned grades	The following table illustrates credit risks by category and internally assigned grades at March 31, 2016 and December 31, 2015. “Pass” includes loans internally graded as excellent, good and satisfactory. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 48,126,073 $ 730,876 $ 115,601,053 $ 69,362,054 $ 5,262,539 $ 239,082,595 Watch 1,010,043 430,017 926,678 2,471,241 133,234 4,971,213 OAEM 1,191,770 — 1,154,784 733,461 24,574 3,104,589 Substandard 1,773,686 — 3,617,680 672,713 103,157 6,167,236 Doubtful — — — — — — Loss — — — — — — Total $ 52,101,572 $ 1,160,893 $ 121,300,195 $ 73,239,469 $ 5,523,504 $ 253,325,633 December 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 46,865,088 $ 572,101 $ 110,040,948 $ 65,941,806 $ 4,857,576 $ 228,277,519 Watch 1,096,200 433,017 940,073 2,490,339 175,489 5,135,118 OAEM 1,337,002 — 1,203,518 99,743 26,961 2,667,224 Substandard 1,639,975 — 3,551,495 1,245,419 105,955 6,542,844 Doubtful — — — — — — Loss — — — — — — Total $ 50,938,265 $ 1,005,118 $ 115,736,034 $ 69,777,307 $ 5,165,981 $ 242,622,705
Schedule of delinquent loans, excluding mortgage loans held for sale	The following tables include an aging analysis of the recorded investment of past-due financing receivable by class: March 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days and Accuring Interest Commercial Loans $ 39,664 $ 1,054,310 — $ 1,093,974 $ 51,007,598 $ 52,101,572 $ — Commercial real estate: Commercial real estate construction — — — — 1,160,893 1,160,893 — Commercial real estate other — 986,887 1,817,056 2,803,943 118,496,252 121,300,195 — Consumer Consumer real estate — — 150,255 150,255 73,089,214 73,239,469 — Consumer other — 12,176 2,448 14,624 5,508,880 5,523,504 — Total $ 39,664 $ 2,053,373 $ 1,969,759 $ 4,062,796 $ 249,262,837 $ 253,325,633 $ — December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days and Accuring Interest Commercial Loans $ 1,162,676 $ 250,370 $ 4,317 $ 1,417,363 $ 49,520,902 $ 50,938,265 $ — Commercial real estate: Commercial real estate construction — — — — 1,005,118 1,005,118 — Commercial real estate other 91,607 1,215,473 1,152,774 2,459,854 113,276,180 115,736,034 — Consumer Consumer real estate 68,240 249,754 82,015 400,009 69,377,298 69,777,307 — Consumer other 69,333 58,116 6,056 133,505 5,032,476 5,165,981 1,606 Total $ 1,391,856 $ 1,773,713 $ 1,245,162 $ 4,410,731 $ 238,211,974 $ 242,622,705 $ 1,606
Schedule of non-accrual loans	There were no loans at March 31, 2016 and one loan at December 31, 2015, over 90 days past due and still accruing interest. The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual For the Period Ending March 31, 2016 December 31, 2015 Commercial Loans $ 3,862 $ 4,317 Commercial real estate: Commercial real estate construction — — Commercial real estate other 2,453,166 1,970,306 Consumer Consumer real estate 150,255 82,015 Consumer other 4,857 4,450 Total $ 2,612,140 $ 2,061,088
Schedule of changes in the allowance and an allocation of the allowance by loan category	The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Beginning Balance $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Charge-offs (33,045 ) — — — (1,050 ) (34,095 ) Recoveries 1,284 — 6,000 — 746 8,030 Provision 635,557 (15,593 ) (242,391 ) ( 328,228 ) (4,345 ) 45,000 Ending Balance $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 March 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Beginning Balance $ 1,211,130 $ 42,904 $ 1,112,387 $ 863,351 $ 105,076 $ 3,334,848 Charge-offs — — (21,000 ) — — (21,000 ) Recoveries — — 15,000 — 240 15,240 Provision (110,328 ) 1,792 85,335 (12,093 ) 40,294 5,000 Ending Balance $ 1,100,802 $ 44,696 $ 1,191,722 $ 851,258 $ 145,610 $ 3,334,088 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Esate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,103,564 $ — $ 338,142 $ 150,545 $ 103,157 $ 1,695,408 Collectively evaluated for impairment 397,086 44,268 770,561 462,697 66,742 1,741,354 Total Allowance for Losses $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 Loan Receivable Individually evaluated for impairment $ 1,773,687 $ — $ 4,020,095 $ 604,472 $ 171,397 $ 6,569,651 Collectively evaluated for impairment 50,327,885 1,160,893 117,280,100 72,634,997 5,352,107 246,755,982 Total Loans Receivable $ 52,101,572 $ 1,160,893 $ 121,300,195 $ 73,239,469 $ 5,523,504 $ 253,325,633 December 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Esate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 387,979 $ — $ 253,105 $ 342,320 $ 100,103 $ 1,083,507 Collectively evaluated for impairment 508,875 59,861 1,091,989 599,150 74,445 2,334,320 Total Allowance for Losses $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Loan Receivable Individually evaluated for impairment $ 1,639,974 $ — $ 3,551,495 $ 1,245,419 $ 105,819 $ 6,542,707 Collectively evaluated for impairment 49,298,291 1,005,118 112,184,539 68,531,888 5,060,162 236,079,998 Total Loans Receivable $ 50,938,265 $ 1,005,118 $ 115,736,034 $ 69,777,307 $ 5,165,981 $ 242,622,705
Schedule of impaired loans and average recorded investment and interest income recognized on impaired loans	The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance by loan category for the three months ended March 31, 2016 and March 31, 2015. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. March 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Beginning Balance $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Charge-offs (33,045 ) — — — (1,050 ) (34,095 ) Recoveries 1,284 — 6,000 — 746 8,030 Provision 635,557 (15,593 ) (242,391 ) (328,228 (4,345 ) 45,000 Ending Balance $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 March 31, 2015 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Beginning Balance $ 1,211,130 $ 42,904 $ 1,112,387 $ 863,351 $ 105,076 $ 3,334,848 Charge-offs — — (21,000 ) — — (21,000 ) Recoveries — — 15,000 — 240 15,240 Provision (110,328 ) 1,792 85,335 (12,093 ) 40,294 5,000 Ending Balance $ 1,100,802 $ 44,696 $ 1,191,722 $ 851,258 $ 145,610 $ 3,334,088 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. Three Months Ended March 31, 2016 March 31, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 1,106,771 $ 16,647 $ 784,435 $ 11,992 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,334,158 6,705 3,290,380 42,894 Consumer Real Estate 154,105 1,119 522,468 5,385 Consumer Other 106,011 2,374 — — $ 2,701,045 $ 26,845 $ 4,597,283 $ 60,271 With an allowance recorded: Commercial $ 682,992 $ 11,033 $ 1,176,492 $ 13,207 Commercial Real Estate Construction — — — — Commercial Real Estate Other 2,650,492 29,127 1,111,464 12,938 Consumer Real Estate 450,403 6,742 748,701 5,431 Consumer Other 68,240 — 88,346 1,400 $ 3,852,127 $ 46,902 $ 3,125,003 $ 32,976 Total Commercial $ 1,789,763 $ 27,680 $ 1,960,927 $ 25,199 Commercial Real Estate Construction — — — — Commercial Real Estate Other 3,984,650 35,832 4,401,844 55,832 Consumer Real Estate 604,508 7,861 1,271,169 10,816 Consumer Other 174,251 2,374 88,346 1,400 $ 6,553,172 $ 73,747 $ 7,722,286 $ 93,247

Disclosure Regarding Fair Val19

Disclosure Regarding Fair Value of Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Quoted Market Price in Significant Other Observable Inputs Significant Unobservable Inputs Total U.S. Treasury Notes $ 24,242,344 $ — $ — $ 24,242,344 Government-Sponsored Enterprises — 46,916,408 — 46,916,408 Municipal Securities — 30,945,701 5,249,351 36,195,052 Total $ 24,242,344 $ 77,862,109 $ 5,249,351 $ 107,353,804 December 31, 2015 Quoted Market Price in Significant Other Observable Inputs Significant Unobservable Inputs Total U.S. Treasury Notes $ 34,633,673 $ — $ — $ 34,633,673 Government-Sponsored Enterprises — 51,284,332 — 51,284,332 Municipal Securities — 28,861,902 5,217,678 34,079,580 Total $ 34,633,673 $ 80,146,234 $ 5,217,678 $ 119,997,585
Schedule of changes in Level 3 instruments	The following table reconciles the changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2016 and the three months ended March 31, 2015: March 31, 2016 March 31, 2015 Beginning Balance $ 5,217,678 $ 1,377,089 Total gains or (losses) (realized/unrealized) included in earnings — — Included in other comprehensive income 31,673 (8,646 ) Purchases, issuances and settlements — — Transfers in and/or out of level 3 — — Ending balance $ 5,249,351 $ 1,368,443
Schedule of assets and liabilities measured at fair value measured on a nonrecurring basis	The following table presents information about certain assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2016, and December 31, 2015: March 31, 2016 Quoted Market Price in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Impaired loans $ — $ — $ 4,874,243 $ 4,874,243 Other real estate owned — — 521,943 521,943 Loans held for sale — 3,929,539 — 3,929,539 Total $ — $ 3,929,539 $ 5,396,186 $ 9,325,725 December 31, 2015 Quoted Market Price in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Impaired loans $ — $ — $ 5,459,200 $ 5,459,200 Other real estate owned — — 620,394 620,394 Loans held for sale — 5,820,239 — 5,820,239 Total $ — $ 5,820,239 $ 6,079,594 $ 11,899,833
Schedule of unobservable inputs used in Level 3 fair value measurement	The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2016: Inputs Valuation Technique Unobservable Input General Range of Inputs Impaired Loans Discounted Appraisals Collateral Discounts 0 – 35% Other Real Estate Owned Appraisal Value/ Comparison Sales/Other Estimates Appraisals and/or Sales of Comparable Properties Appraisals Discounted 10% to 20% for Sales Commissions and Other Holding Costs
Schedule of carrying amount,estimated fair value and the financial hierarchy of entity's financial instruments	This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. March 31, 2016 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 7,622,989 $ 7,622,989 $ 7,622,989 $ $ Interest-bearing deposits in other banks 30,503,030 30,503,030 30,503,030 Investments available for sale 107,353,804 107,353,804 24,242,344 77,862,109 5,249,351 Mortgage loans to be sold 3,929,539 3,929,539 3,929,539 Loans 253,325,633 253,194,574 253,194,574 Accrued interest receivable 1,040,677 1,040,677 1,040,677 Financial Liabilities: Demand deposits 308,917,075 308,917,075 308,917,075 Time deposits 52,752,227 52,764,119 52,764,119 Accrued interest payable 66,634 66,634 66,634 December 31, 2015 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,295,924 $ 5,295,924 $ 5,295,924 $ $ Interest-bearing deposits in other banks 23,898,862 23,898,862 23,898,862 Investments available for sale 119,997,585 119,997,585 34,633,673 80,146,234 5,217,678 Mortgage loans to be sold 5,820,239 5,820,239 5,820,239 Loans 242,622,705 242,581,154 242,581,154 Accrued interest receivable 1,284,063 1,284,063 1,284,063 Financial Liabilities: Demand deposits 303,950,800 303,950,800 303,950,800 Time deposits 54,767,812 54,780,915 54,780,915 Accrued interest payable 73,421 73,421 73,421

Income Per Common Share (Tables

Income Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of income per common share	Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. March 31, 2016 March 31, 2015 Numerator: Net Income $ 1,195,736 $ 1,204,960 Denominator: Weighted average shares outstanding 4,917,334 4,907,223 Effect of dilutive shares 150,229 147,464 Weighted average shares outstanding-diluted 5,067,563 5,054,687 Earnings per share Basic $ 0.24 $ 0.25 Diluted $ 0.24 $ 0.24

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of components of accumulated other comprehensive income	The following table summarizes the components of accumulated other comprehensive income and changes in those components as of and for the three months March 31, 2016 and 2015: Available for sale securities Beginning Balance December 31, 2015 $ 992,549 Change in net unrealized gains on securities available for sale, net of income taxes 709,731 Reclasssification adjustment for net securities gains included in net income (187,936 ) Income tax expense 69,499 Balance at March 31, 2016 $ 1,583,843 Beginning Balance December 31, 2014 $ 1,243,022 Change in net unrealized gains on securities available for sale, net of income taxes 682,022 Reclasssification adjustment for net securities gains included in net income (111,313 ) Income tax expense 41,186 Balance at March 31, 2015 $ 1,854,917
Schedule of items in the consolidated Statements of Income affected by amounts reclassified from accumulated other comprehensive income	The following table shows the line items in the consolidated Statements of Income affected by amounts reclassified from accumulated other comprehensive income: March 31, 2016 March 31, 2015 Gain on sale of investments, net $ 187,936 $ 111,313 Tax effect — — Total reclassification, net of tax $ 187,936 $ 111,313

Investment Securities (Details)

Investment Securities (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 104,839,775	$ 118,422,116
Gross Unrealized Gains	2,517,640	1,783,297
Gross Unrealized Losses	3,611	207,828
Estimated Fair Value	107,353,804	119,997,585
U.S. Treasury Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	23,989,841	34,517,996
Gross Unrealized Gains	$ 252,503	161,037
Gross Unrealized Losses		45,360
Estimated Fair Value	$ 24,242,344	34,633,673
Government-Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	46,018,755	51,136,426
Gross Unrealized Gains	$ 897,653	281,650
Gross Unrealized Losses		133,744
Estimated Fair Value	$ 46,916,408	51,284,332
Municipal Securties [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,831,179	32,767,694
Gross Unrealized Gains	1,367,484	1,340,610
Gross Unrealized Losses	3,611	28,724
Estimated Fair Value	$ 36,195,052	$ 34,079,580

Investment Securities (Details

Investment Securities (Details 1) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Amortized Cost
Due in one year or less	$ 1,857,755	$ 3,311,346
Due in one year to five years	65,340,811	69,870,930
Due in five years to ten years	34,889,466	41,930,801
Due in ten years and over	2,751,743	3,309,039
Total	104,839,775	118,422,116
Estimated Fair Value
Due in one year or less	1,870,311	3,326,249
Due in one year to five years	66,667,079	70,584,179
Due in five years to ten years	36,018,411	42,670,986
Due in ten years and over	2,798,003	3,416,171
Total	$ 107,353,804	$ 119,997,585

Investment Securities (Detail24

Investment Securities (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Less than 12 Months
Fair Value	$ 785,389	$ 21,900,657
Unrealized Losses	3,611	112,622
12 months or Longer
Fair value		5,002,335
Unrealized Losses		95,206
Total
Fair value	785,389	26,902,992
Unrealized Losses	3,611	207,828
U.S. Treasury Notes [Member]
Less than 12 Months
Fair Value		10,064,063
Unrealized Losses		45,360
Total
Fair value		10,064,063
Unrealized Losses		45,360
Government-Sponsored Enterprises [Member]
Less than 12 Months
Fair Value		7,475,445
Unrealized Losses		38,538
12 months or Longer
Fair value		5,002,335
Unrealized Losses		95,206
Total
Fair value		12,477,780
Unrealized Losses		133,744
Municipal Securties [Member]
Less than 12 Months
Fair Value	785,389	4,361,149
Unrealized Losses	3,611	28,724
Total
Fair value	785,389	4,361,149
Unrealized Losses	$ 3,611	$ 28,724

Investment Securities (Detail25

Investment Securities (Details 3) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Gross proceeds	$ 15,629,464	$ 10,845,887
Gross realized gains	$ 187,936	$ 111,313

Investment Securities (Detail26

Investment Securities (Details Narrative) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Carrying amount of securities pledged to secure deposits and repurchase agreements	$ 46,500,000	$ 48,000,000
Tax provision	$ 69,499	$ 41,186

Loans and Allowance for Loan 27

Loans and Allowance for Loan Losses (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 253,325,633	$ 242,622,705
Allowance for loan losses	(3,436,762)	(3,417,827)
Net loans	249,888,871	239,204,878
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	52,101,572	50,938,265
Commercial Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	1,160,893	1,005,118
Commercial Real Estate Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	121,300,195	115,736,034
Consumer Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	73,239,469	69,777,307
Consumer Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans	$ 5,523,504	$ 5,165,981

Loans and Allowance for Loan 28

Loans and Allowance for Loan Losses (Details 1) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Credit risks by category and internally assigned grades
Loans	$ 253,325,633	$ 242,622,705
Pass [Member]
Credit risks by category and internally assigned grades
Loans	239,082,595	228,277,519
Watch [Member]
Credit risks by category and internally assigned grades
Loans	4,971,213	5,135,118
OAEM [Member]
Credit risks by category and internally assigned grades
Loans	3,104,589	2,667,224
Substandard [Member]
Credit risks by category and internally assigned grades
Loans	6,167,236	6,542,844
Commercial [Member]
Credit risks by category and internally assigned grades
Loans	52,101,572	50,938,265
Commercial [Member] | Pass [Member]
Credit risks by category and internally assigned grades
Loans	48,126,073	46,865,088
Commercial [Member] | Watch [Member]
Credit risks by category and internally assigned grades
Loans	1,010,043	1,096,200
Commercial [Member] | OAEM [Member]
Credit risks by category and internally assigned grades
Loans	1,191,770	1,337,002
Commercial [Member] | Substandard [Member]
Credit risks by category and internally assigned grades
Loans	1,773,686	1,639,975
Commercial Real Estate Construction [Member]
Credit risks by category and internally assigned grades
Loans	1,160,893	1,005,118
Commercial Real Estate Construction [Member] | Pass [Member]
Credit risks by category and internally assigned grades
Loans	730,876	572,101
Commercial Real Estate Construction [Member] | Watch [Member]
Credit risks by category and internally assigned grades
Loans	430,017	433,017
Commercial Real Estate Other [Member]
Credit risks by category and internally assigned grades
Loans	121,300,195	115,736,034
Commercial Real Estate Other [Member] | Pass [Member]
Credit risks by category and internally assigned grades
Loans	115,601,053	110,040,948
Commercial Real Estate Other [Member] | Watch [Member]
Credit risks by category and internally assigned grades
Loans	926,678	940,073
Commercial Real Estate Other [Member] | OAEM [Member]
Credit risks by category and internally assigned grades
Loans	1,154,784	1,203,518
Commercial Real Estate Other [Member] | Substandard [Member]
Credit risks by category and internally assigned grades
Loans	3,617,680	3,551,495
Consumer Real Estate [Member]
Credit risks by category and internally assigned grades
Loans	73,239,469	69,777,307
Consumer Real Estate [Member] | Pass [Member]
Credit risks by category and internally assigned grades
Loans	69,362,054	65,941,806
Consumer Real Estate [Member] | Watch [Member]
Credit risks by category and internally assigned grades
Loans	2,471,241	2,490,339
Consumer Real Estate [Member] | OAEM [Member]
Credit risks by category and internally assigned grades
Loans	733,461	99,743
Consumer Real Estate [Member] | Substandard [Member]
Credit risks by category and internally assigned grades
Loans	672,713	1,245,419
Consumer Other [Member]
Credit risks by category and internally assigned grades
Loans	5,523,504	5,165,981
Consumer Other [Member] | Pass [Member]
Credit risks by category and internally assigned grades
Loans	5,262,539	4,857,576
Consumer Other [Member] | Watch [Member]
Credit risks by category and internally assigned grades
Loans	133,234	175,489
Consumer Other [Member] | OAEM [Member]
Credit risks by category and internally assigned grades
Loans	24,574	26,961
Consumer Other [Member] | Substandard [Member]
Credit risks by category and internally assigned grades
Loans	$ 103,157	$ 105,955

Loans and Allowance for Loan 29

Loans and Allowance for Loan Losses (Details 2) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	$ 4,062,796	$ 4,410,731
Current	249,262,837	238,211,974
Total Loans Receivable	253,325,633	242,622,705
Recorded Investment > 90 Days and Accruing		1,606
30-59 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	39,664	1,391,856
60-89 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	2,053,373	1,773,713
Greater Than 90 Days [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	1,969,759	1,245,162
Commercial [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	1,093,974	1,417,363
Current	51,007,598	49,520,902
Total Loans Receivable	52,101,572	50,938,265
Commercial [Member] | 30-59 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	39,664	1,162,676
Commercial [Member] | 60-89 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	1,054,310	250,370
Commercial [Member] | Greater Than 90 Days [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due		4,317
Commercial Real Estate Construction [Member]
Delinquent loans, excluding mortgage loans held for sale
Current	1,160,893	1,005,118
Total Loans Receivable	1,160,893	1,005,118
Commercial Real Estate Other [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	2,803,943	2,459,854
Current	118,496,252	113,276,180
Total Loans Receivable	121,300,195	115,736,034
Commercial Real Estate Other [Member] | 30-59 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due		91,607
Commercial Real Estate Other [Member] | 60-89 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	986,887	1,215,473
Commercial Real Estate Other [Member] | Greater Than 90 Days [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	1,817,056	1,152,774
Consumer Real Estate [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	150,255	400,008
Current	73,089,214	69,377,299
Total Loans Receivable	73,239,469	69,777,307
Consumer Real Estate [Member] | 30-59 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due		68,240
Consumer Real Estate [Member] | 60-89 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due		249,754
Consumer Real Estate [Member] | Greater Than 90 Days [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	150,255	82,015
Consumer Other [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	14,624	133,505
Current	5,508,880	5,032,476
Total Loans Receivable	5,523,504	5,165,981
Recorded Investment > 90 Days and Accruing		1,606
Consumer Other [Member] | 30-59 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due		69,333
Consumer Other [Member] | 60-89 Days Past Due [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	12,176	58,116
Consumer Other [Member] | Greater Than 90 Days [Member]
Delinquent loans, excluding mortgage loans held for sale
Total Past Due	$ 2,448	$ 6,056

Loans and Allowance for Loan 30

Loans and Allowance for Loan Losses (Details 3) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Receivable on Non-Accrual	$ 2,612,140	$ 2,061,088
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Receivable on Non-Accrual	3,862	4,317
Commercial Real Estate Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Receivable on Non-Accrual	2,453,166	1,970,306
Consumer Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Receivable on Non-Accrual	150,255	82,015
Consumer Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans Receivable on Non-Accrual	$ 4,857	$ 4,450

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses (Details 4) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Activity in the allowance for loan losses by portfolio segment
Beginning Balance	$ 3,417,827	$ 3,334,848
Charge-offs	(34,095)	(21,000)
Recoveries	8,030	15,240
Provisions	45,000	5,000
Ending Balance	3,436,762	3,334,088
Allowance for Loan Losses Ending Balances:
Individually evaluated for impairment	1,695,408		$ 1,083,507
Collectively evaluated for impairment	1,741,354		2,334,320
Individually evaluated for impairment	6,569,651		6,542,707
Collectively evaluated for impairment	246,755,982		236,079,998
Total Loans Receivable	253,325,633		242,622,705
Commercial [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning Balance	896,854	1,211,130
Charge-offs	(33,045)
Recoveries	1,284
Provisions	635,557	(110,328)
Ending Balance	1,500,650	1,100,802
Allowance for Loan Losses Ending Balances:
Individually evaluated for impairment	1,103,564		387,979
Collectively evaluated for impairment	397,086		508,875
Individually evaluated for impairment	1,773,687		1,639,974
Collectively evaluated for impairment	50,327,885		49,298,291
Total Loans Receivable	52,101,572		50,938,265
Commercial Real Estate Construction [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning Balance	59,861	42,904
Provisions	(15,593)	1,792
Ending Balance	44,268	44,696
Allowance for Loan Losses Ending Balances:
Collectively evaluated for impairment	44,268		59,861
Collectively evaluated for impairment	1,160,893		1,005,118
Total Loans Receivable	1,160,893		1,005,118
Commercial Real Estate Other [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning Balance	1,345,094	1,112,387
Charge-offs		(21,000)
Recoveries	6,000	15,000
Provisions	(242,391)	85,335
Ending Balance	1,108,703	1,191,722
Allowance for Loan Losses Ending Balances:
Individually evaluated for impairment	338,142		253,105
Collectively evaluated for impairment	770,561		1,091,989
Individually evaluated for impairment	4,020,095		3,551,495
Collectively evaluated for impairment	117,280,100		112,184,539
Total Loans Receivable	121,300,195		115,736,034
Consumer Real Estate [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning Balance	941,470	863,351
Provisions	(328,228)	(12,093)
Ending Balance	613,242	851,258
Allowance for Loan Losses Ending Balances:
Individually evaluated for impairment	150,545		342,320
Collectively evaluated for impairment	462,697		599,150
Individually evaluated for impairment	604,472		1,245,419
Collectively evaluated for impairment	72,634,997		68,531,888
Total Loans Receivable	73,239,469		69,777,307
Consumer Other [Member]
Activity in the allowance for loan losses by portfolio segment
Beginning Balance	174,548	105,076
Charge-offs	(1,050)
Recoveries	746	240
Provisions	(4,345)	40,294
Ending Balance	169,899	$ 145,610
Allowance for Loan Losses Ending Balances:
Individually evaluated for impairment	103,157		100,103
Collectively evaluated for impairment	66,742		74,445
Individually evaluated for impairment	171,397		105,819
Collectively evaluated for impairment	5,352,107		5,060,162
Total Loans Receivable	$ 5,523,504		$ 5,165,981

Loans and Allowance for Loan 32

Loans and Allowance for Loan Losses (Details 5) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Impaired and Restructured Loans with no related allowance recorded
Unpaid Principal Balance With no related allowance recorded	$ 3,875,039		$ 3,624,966
Recorded Investment With no related allowance recorded	3,875,039		3,624,966
Average Recorded Investment With no related allowance recorded	2,701,045	$ 4,597,283
Interest Income Recognized With no related allowance recorded	26,845	60,271
Impaired and Restructured Loans with an allowance recorded
Unpaid Principal Balance With an allowance recorded	2,694,612		2,917,741
Recorded Investment With an allowance recorded	2,694,612		2,917,741
Related Allowance	1,695,408		1,083,507
Average Recorded Investment With an allowance recorded	3,852,127	3,125,003
Interest Income Recognized With an allowance recorded	46,902	32,976
Grand Total of Impaired and Restructured Loans
Unpaid Principal balance	6,569,651		6,542,707
Recorded Investment	6,569,651		6,542,707
Average Recorded Investment	6,553,172	7,722,286
Interest Income Recognized	73,747	93,247
Commercial [Member]
Impaired and Restructured Loans with no related allowance recorded
Unpaid Principal Balance With no related allowance recorded	670,123		692,831
Recorded Investment With no related allowance recorded	670,123		692,831
Average Recorded Investment With no related allowance recorded	1,106,771	784,435
Interest Income Recognized With no related allowance recorded	16,647	11,992
Impaired and Restructured Loans with an allowance recorded
Unpaid Principal Balance With an allowance recorded	1,103,564		947,143
Recorded Investment With an allowance recorded	1,103,564		947,143
Related Allowance	1,103,564		387,979
Average Recorded Investment With an allowance recorded	682,992	1,176,492
Interest Income Recognized With an allowance recorded	11,033	13,207
Grand Total of Impaired and Restructured Loans
Unpaid Principal balance	1,773,687		1,639,974
Recorded Investment	1,773,687		1,639,974
Average Recorded Investment	1,789,763	1,960,927
Interest Income Recognized	27,680	25,199
Commercial Real Estate Other [Member]
Impaired and Restructured Loans with no related allowance recorded
Unpaid Principal Balance With no related allowance recorded	2,686,274		2,476,018
Recorded Investment With no related allowance recorded	2,686,274		2,476,018
Average Recorded Investment With no related allowance recorded	1,334,158	3,290,380
Interest Income Recognized With no related allowance recorded	6,705	42,894
Impaired and Restructured Loans with an allowance recorded
Unpaid Principal Balance With an allowance recorded	1,333,821		1,075,477
Recorded Investment With an allowance recorded	1,333,821		1,075,477
Related Allowance	338,142		253,105
Average Recorded Investment With an allowance recorded	2,650,492	1,111,464
Interest Income Recognized With an allowance recorded	29,127	12,938
Grand Total of Impaired and Restructured Loans
Unpaid Principal balance	4,020,095		3,551,495
Recorded Investment	4,020,095		3,551,495
Average Recorded Investment	3,984,650	4,401,844
Interest Income Recognized	35,832	55,832
Consumer Real Estate [Member]
Impaired and Restructured Loans with no related allowance recorded
Unpaid Principal Balance With no related allowance recorded	450,402		450,402
Recorded Investment With no related allowance recorded	450,402		450,402
Average Recorded Investment With no related allowance recorded	154,105	522,468
Interest Income Recognized With no related allowance recorded	1,119	5,385
Impaired and Restructured Loans with an allowance recorded
Unpaid Principal Balance With an allowance recorded	154,070		795,017
Recorded Investment With an allowance recorded	154,070		795,017
Related Allowance	150,545		342,320
Average Recorded Investment With an allowance recorded	450,403	748,701
Interest Income Recognized With an allowance recorded	6,742	5,431
Grand Total of Impaired and Restructured Loans
Unpaid Principal balance	604,472		1,245,419
Recorded Investment	604,472		1,245,419
Average Recorded Investment	604,508	1,271,169
Interest Income Recognized	7,861	10,816
Consumer Other [Member]
Impaired and Restructured Loans with no related allowance recorded
Unpaid Principal Balance With no related allowance recorded	68,240		5,715
Recorded Investment With no related allowance recorded	68,240		5,715
Average Recorded Investment With no related allowance recorded	106,011
Interest Income Recognized With no related allowance recorded	2,374
Impaired and Restructured Loans with an allowance recorded
Unpaid Principal Balance With an allowance recorded	103,157		100,104
Recorded Investment With an allowance recorded	103,157		100,104
Related Allowance	103,157		100,103
Average Recorded Investment With an allowance recorded	68,240	88,346
Interest Income Recognized With an allowance recorded		1,400
Grand Total of Impaired and Restructured Loans
Unpaid Principal balance	171,397		105,819
Recorded Investment	171,397		$ 105,819
Average Recorded Investment	174,251	88,346
Interest Income Recognized	$ 2,374	$ 1,400

Loans and Allowance for Loan 33

Loans and Allowance for Loan Losses (Details Narrative) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Deferred loan fees	$ 123,970	$ 118,188
Loans pledged as collateral to secure funding with the Federal Reserve Bank	104,100,000	102,100,000
Restructured loans	$ 451,264	$ 458,268

Disclosure Regarding Fair Val34

Disclosure Regarding Fair Value of Financial Statements (Details) - Recurring Basis [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 107,353,804	$ 119,997,585
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	24,242,344	34,633,673
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	77,862,109	80,146,234
Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,249,351	5,217,678
U.S. Treasury Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	24,242,344	34,633,673
U.S. Treasury Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	24,242,344	34,633,673
Government-Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	46,916,408	51,284,332
Government-Sponsored Enterprises [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	46,916,408	51,284,332
Municipal Securties [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	36,195,052	34,079,580
Municipal Securties [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	30,945,701	28,861,902
Municipal Securties [Member] | Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 5,249,351	$ 5,217,678

Disclosure Regarding Fair Val35

Disclosure Regarding Fair Value of Financial Statements (Details 1) - Fair Value Inputs Level 3 [Member] - Municipal Securties [Member] - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Beginning Balance	$ 5,217,678	$ 1,377,089
Included in other comprehensive income	31,673	(8,646)
Ending balance	$ 5,249,351	$ 1,368,443

Disclosure Regarding Fair Val36

Disclosure Regarding Fair Value of Financial Statements (Details 2) - Nonrecurring Basis [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 9,325,725	$ 11,899,833
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,929,539	5,820,239
Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	5,396,186	6,079,594
Loans Held For Sale [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	3,929,539	5,820,239
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	4,874,243	5,459,200
Impaired Loans [Member] | Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	4,874,243	5,459,200
Other real estate owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	521,943	620,394
Other real estate owned [Member] | Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 521,943	$ 620,394

Disclosure Regarding Fair Val37

Disclosure Regarding Fair Value of Financial Statements (Details 3) - Nonrecurring Basis [Member]	3 Months Ended
	Mar. 31, 2016
Impaired Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Valuation technique	Discounted Appraisals
Unobservable Input	Collateral Discounts
Description of general range of inputs	0 – 35%
Impaired Loans [Member] | Lower Range [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate (in percent)	0.00%
Impaired Loans [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate (in percent)	35.00%
Other real estate owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Valuation technique	Appraisal Value/ Comparison Sales/Other Estimates
Unobservable Input	Appraisals and/or Sales of Comparable Properties
Description of general range of inputs	Appraisals Discounted 10% to 20% for Sales Commissions and Other Holding Costs
Other real estate owned [Member] | Lower Range [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate (in percent)	10.00%
Other real estate owned [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Discount rate (in percent)	20.00%

Disclosure Regarding Fair Val38

Disclosure Regarding Fair Value of Financial Statements (Details 4) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Financial Assets:
Cash and due from banks	$ 7,622,989	$ 5,295,924
Interest bearing deposits in other banks	30,503,030	23,898,862
Investments available for sale	107,353,804	119,997,585
Mortgage loans to be sold	3,929,539	5,820,239
Accrued interest receivable	1,040,677	1,284,063
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets:
Cash and due from banks	7,622,989	5,295,924
Interest bearing deposits in other banks	30,503,030	23,898,862
Investments available for sale	24,242,344	34,633,673
Significant Other Observable Inputs (Level 2) [Member]
Financial Assets:
Investments available for sale	77,862,109	80,146,234
Mortgage loans to be sold	3,929,539	5,820,239
Accrued interest receivable	1,040,677	1,284,063
Financial Liabilities:
Demand Deposits	308,917,075	303,950,800
Time Deposits	52,764,119	54,780,915
Accrued interest payable	66,634	73,421
Fair Value Inputs Level 3 [Member]
Financial Assets:
Investments available for sale	5,249,351	5,217,678
Loans	253,194,574	242,581,154
Carrying Amount [Member]
Financial Assets:
Cash and due from banks	7,622,989	5,295,924
Interest bearing deposits in other banks	30,503,030	23,898,862
Investments available for sale	107,353,804	119,997,585
Mortgage loans to be sold	3,929,539	5,820,239
Loans	253,325,633	242,622,705
Accrued interest receivable	1,040,677	1,284,063
Financial Liabilities:
Demand Deposits	308,917,075	303,950,800
Time Deposits	52,752,227	54,767,812
Accrued interest payable	66,634	73,421
Fair Value [Member]
Financial Assets:
Cash and due from banks	7,622,989	5,295,924
Interest bearing deposits in other banks	30,503,030	23,898,862
Investments available for sale	107,353,804	119,997,585
Mortgage loans to be sold	3,929,539	5,820,239
Loans	253,194,574	242,581,154
Accrued interest receivable	1,040,677	1,284,063
Financial Liabilities:
Demand Deposits	308,917,075	303,950,800
Time Deposits	52,764,119	54,780,915
Accrued interest payable	$ 66,634	$ 73,421

Income Per Common Share (Detail

Income Per Common Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income	$ 1,195,736	$ 1,204,960
Denominator:
Weighted average shares outstanding	4,917,334	4,907,223
Effect of dilutive shares	150,229	147,464
Weighted average shares outstanding-diluted	5,067,563	5,054,687
Earnings per share
Basic	$ 0.24	$ 0.25
Diluted	$ 0.24	$ 0.24

Accumulated Other Comprehensi40

Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Equity [Abstract]
Beginning Balance	$ 992,549	$ 1,243,022
Change in net unrealized gains on securities available for sale, net of income taxes	709,731	682,022
Reclasssification adjustment for net securities gains included in net income	(187,936)	(111,313)
Income tax expense	69,499	41,186
Balance Ending	$ 1,583,843	$ 1,854,917

Accumulated Other Comprehensi41

Accumulated Other Comprehensive Income (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification out of Accumulated Other Comprehensive Income [Member]
Gain on sale of investments, net	$ 187,936	$ 111,313