Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 5,510,917 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 8,187,758 | $ 8,486,025 |
Interest-bearing deposits at the Federal Reserve | 21,573,263 | 24,034,194 |
Investment securities available for sale | 118,603,201 | 139,250,250 |
Mortgage loans to be sold | 2,861,227 | 2,093,723 |
Loans | 274,627,803 | 270,180,640 |
Less: Allowance for loan losses | (4,105,930) | (3,875,398) |
Net loans | 270,521,873 | 266,305,242 |
Premises, and equipment and leasehold improvements, net | 2,314,004 | 2,244,525 |
Other real estate owned | 435,479 | |
Accrued interest receivable | 1,471,368 | 1,720,920 |
Other assets | 2,844,688 | 1,996,140 |
Total assets | 428,377,382 | 446,566,498 |
Deposits: | ||
Non-interest bearing demand | 131,015,152 | 139,256,748 |
Interest bearing demand | 96,573,047 | 108,967,196 |
Money market accounts | 78,552,052 | 77,833,728 |
Time deposits over $250,000 | 21,861,748 | 18,624,924 |
Other time deposits | 21,460,316 | 23,295,492 |
Other savings deposits | 33,578,943 | 34,910,212 |
Total deposits | 383,041,258 | 402,888,300 |
Accrued interest payable and other liabilities | 2,036,590 | 913,563 |
Total liabilities | 385,077,848 | 403,801,863 |
Shareholders' equity | ||
Common stock - no par 12,000,000 shares authorized; Issued 5,776,869 shares at September 30, 2018 and 5,753,743 shares at December 31, 2017. Shares outstanding 5,510,312 and 5,488,207 at September 30, 2018 and December 31, 2017, respectively | ||
Additional paid in capital | 46,838,852 | 37,236,566 |
Retained earnings | 1,295,509 | 8,471,780 |
Treasury stock: 266,557 shares as of September 30, 2018 and 265,536 shares as of December 31, 2017 | (2,268,264) | (2,247,415) |
Accumulated other comprehensive loss, net of income taxes | (2,566,563) | (696,296) |
Total shareholders' equity | 43,299,534 | 42,764,635 |
Total liabilities and shareholders' equity | $ 428,377,382 | $ 446,566,498 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 12,000,000 | 12,000,000 |
Common stock, issued | 5,776,869 | 5,753,743 |
Common stock, outstanding | 5,510,312 | 5,488,207 |
Treasury stock, shares | 266,557 | 265,536 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and fee income | ||||
Loans, including fees | $ 3,905,954 | $ 3,364,293 | $ 11,169,692 | $ 9,727,886 |
Taxable securites | 465,180 | 409,055 | 1,406,094 | 1,147,811 |
Tax-exempt securities | 171,916 | 251,172 | 575,657 | 778,259 |
Other | 122,536 | 92,512 | 258,019 | 187,782 |
Total interest and fee income | 4,665,586 | 4,117,032 | 13,409,462 | 11,841,738 |
Interest expense | ||||
Deposits | 195,434 | 110,625 | 444,961 | 313,929 |
Total interest expense | 195,434 | 110,625 | 444,961 | 313,929 |
Net interest income | 4,470,152 | 4,006,407 | 12,964,501 | 11,527,809 |
Provision for loan losses | 100,000 | 20,000 | 230,000 | 52,500 |
Net interest income after provision for loan losses | 4,370,152 | 3,986,407 | 12,734,501 | 11,475,309 |
Other income | ||||
Service charges and fees | 284,046 | 278,204 | 875,709 | 835,643 |
Mortgage banking income | 168,004 | 149,379 | 558,473 | 825,003 |
Gain on sales of securities | 45,820 | 4,735 | 45,820 | |
Other non-interest income | 6,643 | 8,479 | 22,817 | 23,769 |
Total other income | 458,693 | 481,882 | 1,461,734 | 1,730,235 |
Other expense | ||||
Salaries and employee benefits | 1,595,706 | 1,487,207 | 4,744,878 | 4,457,778 |
Net occupancy expense | 389,973 | 399,534 | 1,195,364 | 1,157,442 |
Other operating expenses | 797,319 | 597,797 | 2,111,968 | 1,884,928 |
Net other real estate owned expenses | 33,476 | 57,613 | 46,143 | |
Total other expense | 2,816,474 | 2,484,538 | 8,109,823 | 7,546,291 |
Income before income tax expense | 2,012,371 | 1,983,751 | 6,086,412 | 5,659,253 |
Income tax expense | 234,218 | 543,098 | 969,672 | 1,606,127 |
Net Income | $ 1,778,153 | $ 1,440,653 | $ 5,116,740 | $ 4,053,126 |
Weighted average shares outstanding | ||||
Basic (in shares) | 5,506,649 | 5,475,504 | 5,496,346 | 5,459,006 |
Diluted (in shares) | 5,589,549 | 5,588,410 | 5,579,989 | 5,568,799 |
Basic income per common share (in dollars per share) | $ 0.32 | $ 0.26 | $ 0.93 | $ 0.74 |
Diluted income per common share (in dollars per share) | $ 0.32 | $ 0.26 | $ 0.92 | $ 0.73 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 1,778,153 | $ 1,440,653 | $ 5,116,740 | $ 4,053,126 |
Other comprehensive loss | ||||
Unrealized loss on securities arising during the period | (548,497) | (339,956) | (2,362,691) | 1,242,599 |
Reclassification adjustment for securities gains realized in net income | 45,820 | (4,735) | 45,820 | |
Other comprehensive loss before tax | (548,497) | (294,136) | (2,367,426) | 1,288,419 |
Income tax effect related to items of other comprehensive loss before tax | 115,052 | 100,006 | 497,159 | (455,637) |
Other comprehensive loss after tax | (433,445) | (194,130) | (1,870,267) | 832,782 |
Total comprehensive income | $ 1,344,708 | $ 1,246,523 | $ 3,246,473 | $ 4,885,908 |
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 (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2016 | $ 36,824,022 | $ 6,643,476 | $ (2,247,415) | $ (607,109) | $ 40,612,974 |
Net income | 4,053,126 | 4,053,126 | |||
Other comprehensive loss | 832,782 | 832,782 | |||
Stock option exercises | 294,342 | 294,342 | |||
Stock-based comp expense | 54,404 | 54,404 | |||
Cash dividends ($0.45 per common share) | (2,138,160) | (2,138,160) | |||
Ending balance at Sep. 30, 2017 | 37,172,768 | 8,558,442 | (2,247,415) | 225,673 | 43,709,468 |
Beginning Balance at Dec. 31, 2017 | 37,236,566 | 8,471,780 | (2,247,415) | (696,296) | 42,764,635 |
Net income | 5,116,740 | 5,116,740 | |||
Other comprehensive loss | (1,870,267) | (1,870,267) | |||
Stock option exercises | 214,418 | (20,849) | 193,569 | ||
Stock-based comp expense | 53,526 | 53,526 | |||
Cash dividends ($0.45 per common share) | (2,958,669) | (2,958,669) | |||
Common stock dividend, 10% | 9,334,342 | (9,334,342) | |||
Ending balance at Sep. 30, 2018 | $ 46,838,852 | $ 1,295,509 | $ (2,268,264) | $ (2,566,563) | $ 43,299,534 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (per share) | $ 0.45 | $ 0.43 |
Common stock dividend (percent) | 10.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 5,116,740 | $ 4,053,126 |
Adjustments to reconcile net income net cash provided by operating activities: | ||
Depreciation | 144,158 | 142,859 |
Gain on sale of investment securities | (4,735) | (45,820) |
Loss on sale of other real estate owned | 33,476 | |
Loss on disposal of premises, equipment, and leasehouse improvements, net | 428 | |
Valuation and other adjustments to other real estate owned | 23,637 | 46,143 |
Provision for loan losses | 230,000 | 52,500 |
Stock-based compensation expense | 53,526 | 54,404 |
Deferred income taxes | (351,389) | (567,272) |
Net amortization of unearned discounts on investment securities available for sale | 227,847 | 293,080 |
Origination of mortgage loans held for sale | (43,444,865) | (43,420,076) |
Proceeds from sale of mortgage loans held for sale | 42,677,361 | 44,688,456 |
Decrease in accrued interest receivable and other assets | 249,552 | 285,460 |
Increase in accrued interest payable and other liabilities | 486,474 | 350,649 |
Net cash provided by operating activities | 5,442,210 | 5,933,509 |
Cash flows from investing activities: | ||
Proceeds from calls and maturities of investment securities available for sale | 6,599,927 | 4,380,870 |
Proceeds from sale of investment securities available for sale | 21,434,634 | 20,231,265 |
Purchase of investment securities available for sale | (9,978,050) | (30,088,916) |
Proceeds from sale of other real estate owned | 378,366 | |
Net decrease in loans | (4,446,631) | (8,664,506) |
Purchase of premises, equipment, and leasehold improvements, net | (214,065) | (99,067) |
Net cash provided by (used in) investing activities | 13,774,181 | (14,240,354) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposit accounts | (19,847,042) | 14,024,187 |
Dividends paid | (2,322,116) | (2,084,817) |
Stock options exercised | 193,569 | 294,342 |
Net cash (used in) provided by financing activities | (21,975,589) | 12,233,712 |
Net (decrease) increase in cash and cash equivalents | (2,759,198) | 3,926,867 |
Cash and cash equivalents at the beginning of the period | 32,520,219 | 26,242,330 |
Cash and cash equivalents at the end of the period | 29,761,021 | 30,169,197 |
Supplemental disclosure of cash flow data: | ||
Interest | 391,972 | 365,558 |
Income Taxes | 963,571 | 2,055,063 |
Supplemental disclosures for non-cash investing and financing activity: | ||
Change in unrealized gain on securities available for sale, net of income taxes | 1,870,267 | 832,782 |
Change in dividends payable | $ 636,553 | 53,343 |
Transfer of loans to other real estate owned | $ 90,832 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [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 the Company and its wholly-owned subsidiary, 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 (“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 Securities and Exchange Commission (“SEC”) on March 3, 2018. 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, deferred tax assets, the fair value of financial instruments 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 period’s presentation. Such reclassifications had no effect on shareholders’ equity or the net income as previously reported. Income per share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Dilutive income 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. Retroactive recognition has been given for the effects of all stock dividends. On March 22, 2018, the Company approved a 10% stock dividend payable May 31, 2018 to shareholders of record as of April 30, 2018. Shares and share data have been adjusted retroactively to reflect the stock dividend. In recognition of the Company's 2018 performance to-date, on September 27, 2018, we declared a special cash dividend of $0.10 per share to shareholders of record October 9, 2018, payable October 31, 2018, to reward our shareholders. 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 Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, Topic 606. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10); Recognition and Measurement of Financial Instruments and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow- Scope Improvements and Practical Expedients In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Revenue from Contracts with Customers In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs Premium Amortization of Purchased Callable Debt Securities In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall Recognition and Measurement of Financial Assets and Financial Liabilities In March 2018, the FASB issued ASU 2018-4, Investments—Debt Securities and Regulated Operations Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 In March 2018, the FASB issued ASU 2018-05, Income Taxes Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In May 2018, the FASB amended the Financial Services – Depository and Lending Topic of the ASC to remove outdated guidance related to Circular 202. The amendments were effective upon issuance and did not have a material effect on the financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 – Leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, In August 2018, the FASB amended the Fair Value Measurement Topic of the ASC. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the ASC to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2: Investment Securities The amortized cost, gross unrealized gains and losses, and estimated fair value of investment securities available for sale are summarized as follows: September 30, 2018 Amortized Gross Gross Estimated U.S. Treasury Notes $ 32,967,828 $ — $ (1,128,095 ) $ 31,839,733 Government-Sponsored Enterprises 60,727,011 — (2,156,361 ) 58,570,650 Municipal Securities 28,632,346 115,836 (555,364 ) 28,192,818 Total $ 122,327,185 $ 115,836 $ (3,839,820 ) $ 118,603,201 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 35,970,990 $ — $ (411,145 ) $ 35,559,845 Government-Sponsored Enterprises 64,444,315 — (887,811 ) 63,556,504 Municipal Securities 40,191,502 487,545 (545,146 ) 40,133,901 Total $ 140,606,807 $ 487,545 $ (1,844,102 ) $ 139,250,250 The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2018 and December 31, 2017, by contractual maturity are as follows: September 30, 2018 December 31, 2017 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 4,251,445 $ 4,259,579 $ 11,554,040 $ 11,546,968 Due in one year to five years 99,801,938 96,746,338 72,622,056 72,124,395 Due in five years to ten years 17,858,947 17,228,111 53,290,088 52,576,036 Due in ten years and over 414,855 369,173 3,140,623 3,002,851 Total $ 122,327,185 $ 118,603,201 $ 140,606,807 $ 139,250,250 Investment securities pledged to secure deposits had a fair value of $40.5 million and $49.4 million as of September 30, 2018 and December 31, 2017, 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, as of September 30, 2018 and December 31, 2017. We believe that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions 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 # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss September 30, 2018 U.S. Treasury Notes 7 $ 31,839,733 $ (1,128,095 ) — $ — $ — 7 $ 31,839,733 $ (1,128,095 ) Government-Sponsored Enterprises 9 43,775,540 (1,322,126 ) 4 14,795,110 (834,235 ) 13 58,570,650 (2,156,361 ) Municipal Securities 19 8,143,784 (200,329 ) 19 7,387,750 (355,035 ) 38 15,531,534 (555,364 ) Total 35 $ 83,759,057 $ (2,650,550 ) 23 $ 22,182,860 $ (1,189,270 ) 58 $ 105,941,917 $ (3,839,820 ) December 31, 2017 U.S. Treasury Notes 8 $ 35,559,845 $ (411,145 ) — $ — $ — 8 $ 35,559,845 $ (411,145 ) Government-Sponsored Enterprises 12 53,275,064 (462,174 ) 3 10,281,440 (425,637 ) 15 63,556,504 (887,811 ) Municipal Securities 20 7,815,221 (134,998 ) 29 11,056,185 (410,148 ) 49 18,871,406 (545,146 ) Total 40 $ 96,650,130 $ (1,008,317 ) 32 $ 21,337,625 $ (835,785 ) 72 $ 117,987,755 $ (1,844,102 ) We received proceeds from sales of securities available for sale and gross realized gains and losses as follows: Three Months Ended September 30, 2018 2017 Gross proceeds $ — $ 20,231,265 Gross realized gains — 154,692 Gross realized losses — (108,872 ) Nine Months Ended September 30, 2018 2017 Gross proceeds $ 21,434,634 $ 20,231,265 Gross realized gains 104,634 154,692 Gross realized losses (99,899 ) ( 108,872 ) For the nine months ended September 30, 2018, the tax provision related to these gains was $994. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
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 $159,418 as of September 30, 2018 and $152,047 as of December 31, 2017) are as follows: September 30, 2018 December 31, 2017 Commercial loans $ 55,372,741 $ 51,723,237 Commercial real estate: Construction 4,997,437 2,317,857 Other 140,978,428 140,186,324 Consumer: Real estate 68,179,290 70,797,973 Other 5,099,907 5,155,249 274,627,803 270,180,640 Allowance for loan losses (4,105,930 ) (3,875,398 ) Loans, net $ 270,521,873 $ 266,305,242 We had $99.9 million and $113.4 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window as of September 30, 2018 and as of December 31, 2017, 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 portfolio is graded in its entirety. Our internally assigned grades pursuant to the Board-approved lending policy are as follows: ● Excellent ● Good ● Satisfactory ● Watch ● OAEM ● Substandard ● Doubtful ● Loss The following tables illustrate credit quality by class and internally assigned grades as of September 30, 2018 and December 31, 2017. “Pass” includes loans internally graded as excellent, good and satisfactory. September 30, 2018 Commercial Commercial Construction Commercial Other Consumer Consumer Total Pass $ 52,477,930 $ 4,997,437 $ 136,098,726 $ 65,689,519 $ 4,796,814 $ 264,060,426 Watch 1,047,571 — 2,907,641 1,610,019 212,117 5,777,348 OAEM — — 593,359 — — 593,359 Substandard 1,847,240 — 1,378,702 879,752 90,976 4,196,670 Doubtful — — — — — — Loss — — — — — — Total $ 55,372,741 $ 4,997,437 $ 140,978,428 $ 68,179,290 $ 5,099,907 $ 274,627,803 December 31, 2017 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Pass $ 47,456,205 $ 1,936,335 $ 134,401,977 $ 68,570,298 $ 4,933,696 $ 257,298,511 Watch 2,403,978 381,522 3,605,621 1,934,802 185,746 8,511,669 OAEM — — 610,806 — — 610,806 Substandard 1,863,054 — 1,567,920 292,873 35,807 3,759,654 Doubtful — — — — — — Loss — — — — — — Total $ 51,723,237 $ 2,317,857 $ 140,186,324 $ 70,797,973 $ 5,155,249 $ 270,180,640 The following tables include an aging analysis of the recorded investment in loans segregated by class: September 30, 2018 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 284,995 $ 229,396 $ — $ 514,391 $ 54,858,350 $ 55,372,741 $ — Commercial Real Estate - Construction — — — — 4,997,437 4,997,437 — Commercial Real Estate - Other 209,806 — 571,292 781,098 140,197,330 140,978,428 — Consumer Real Estate — — — — 68,179,290 68,179,290 — Consumer Other 13,622 — — 13,622 5,086,285 5,099,907 — Total $ 508,423 $ 229,396 $ 571,292 $ 1,309,111 $ 273,318,692 $ 274,627,803 $ — December 31, 2017 30-59 Days 60-89 Days Greater Than 90 Days Total Current Total Recorded Commercial $ 3,531 $ 192,846 $ — $ 196,377 $ 51,526,860 $ 51,723,237 $ — Commercial Real Estate - Construction — — — — 2,317,857 2,317,857 — Commercial Real Estate - Other — — 651,578 651,578 139,534,746 140,186,324 — Consumer Real Estate — — — — 70,797,973 70,797,973 — Consumer Other 10,302 — 34,107 44,409 5,110,840 5,155,249 34,107 Total $ 13,833 $ 192,846 $ 685,685 $ 892,364 $ 269,288,276 $ 270,180,640 $ 34,107 There were no loans as of September 30, 2018 and two loans as of December 31, 2017 over 90 days past due and still accruing. The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual September 30, 2018 December 31, 2017 Commercial $ 27,230 $ 41,651 Commercial Real Estate - Construction — — Commercial Real Estate - Other 571,292 790,208 Consumer Real Estate — — Consumer Other 3,405 — Total $ 601,927 $ 831,859 The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and nine months ended September 30, 2018 and September 30, 2017. The allowance for loan losses 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. Three Months Ended September 30, 2018 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,343,760 $ 29,091 $ 972,038 $ 589,051 $ 1,073,524 $ 4,007,464 Charge-offs — — — — (12,794 ) (12,794 ) Recoveries 11,000 — — — 260 11,260 Provisions 146,752 4,404 10,334 (84,365 ) 22,875 100,000 Ending Balance $ 1,501,512 $ 33,495 $ 982,372 $ 504,686 $ 1,083,865 $ 4,105,930 Nine Months Ended September 30, 2018 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,403,588 $ 23,638 $ 1,549,755 $ 796,918 $ 101,499 $ 3,875,398 Charge-offs (31,250 ) — — — (84,637 ) (115,887 ) Recoveries 13,500 — 56,827 45,412 680 116,419 Provisions 115,674 9,857 (624,210 ) (337,644 ) 1,066,323 230,000 Ending Balance $ 1,501,512 $ 33,495 $ 982,372 $ 504,686 $ 1,083,865 $ 4,105,930 Three Months Ended September 30, 2017 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Charge-offs — — — (80,787 ) (2,489 ) (83,276 ) Recoveries — — — 21,000 1,720 22,720 Provisions 403,920 (7,235 ) (209,108 ) (150,697 ) (16,880 ) 20,000 Ending Balance $ 2,032,592 $ 45,528 $ 1,173,811 $ 561,369 $ 73,659 $ 3,886,959 Nine Months Ended September 30, 2017 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,545,188 $ 51,469 $ 1,374,706 $ 726,391 $ 153,863 $ 3,851,617 Charge-offs — — — (80,786 ) (4,863 ) (85,649 ) Recoveries — — — 63,000 5,491 68,491 Provisions 487,404 (5,941 ) (200,895 ) (147,236 ) (80,832 ) 52,500 Ending Balance $ 2,032,592 $ 45,528 $ 1,173,811 $ 561,369 $ 73,659 $ 3,886,959 The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: September 30, 2018 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses Individually evaluated for impairment $ 918,694 $ — $ 40,614 $ — $ 23,046 $ 982,354 Collectively evaluated for impairment 582,818 33,495 941,758 504,686 1,060,819 3,123,576 Total Allowance for Loan Losses $ 1,501,512 $ 33,495 $ 982,372 $ 504,686 $ 1,083,865 $ 4,105,930 Loans Receivable Individually evaluated for impairment $ 1,807,958 $ — $ 1,390,661 $ 879,753 $ 23,046 $ 4,101,418 Collectively evaluated for impairment 53,564,783 4,997,437 139,587,767 67,299,537 5,076,861 270,526,385 Total Loans Receivable $ 55,372,741 $ 4,997,437 $ 140,978,428 $ 68,179,290 $ 5,099,907 $ 274,627,803 December 31, 2017 Commercial Commercial Commercial Real Estate - Consumer Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 832,571 $ — $ 99,523 $ 43,042 $ 34,107 $ 1,009,243 Collectively evaluated for impairment 571,017 23,638 1,450,232 753,876 67,392 2,866,155 Total Allowance for Losses $ 1,403,588 $ 23,638 $ 1,549,755 $ 796,918 $ 101,499 $ 3,875,398 Loans Receivable Individually evaluated for impairment $ 1,812,461 $ — $ 1,584,821 $ 292,873 $ 34,107 $ 3,724,262 Collectively evaluated for impairment 49,910,776 2,317,857 138,601,503 70,505,100 5,121,142 266,456,378 Total Loans Receivable $ 51,723,237 $ 2,317,857 $ 140,186,324 $ 70,797,973 $ 5,155,249 $ 270,180,640 As of September 30, 2018 and December 31, 2017, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table: Impaired and Restructured Loans As of September 30, 2018 December 31, 2017 Unpaid Principal Balance Recorded Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 124,983 $ 124,983 — $ 152,490 $ 152,490 $ — Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 981,021 981,021 — 1,058,601 1,058,601 — Consumer Real Estate 879,753 879,753 — 249,754 249,754 — Consumer Other — — — — — — Total 1,985,757 1,985,757 — 1,460,845 1,460,845 — With an allowance recorded: Commercial 1,682,975 1,682,975 918,694 1,659,971 1,659,971 832,571 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 409,640 309,839 40,614 626,021 526,220 99,523 Consumer Real Estate — — — 43,119 43,119 43,042 Consumer Other 23,046 23,046 23,046 34,107 34,107 34,107 Total 2,115,661 2,015,860 982,354 2,363,218 2,263,417 1,009,243 Total Commercial 1,807,958 1,807,958 918,694 1,812,461 1,812,461 832,571 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 1,390,661 1,290,860 40,614 1,684,622 1,584,821 99,523 Consumer Real Estate 879,753 879,753 — 292,873 292,873 43,042 Consumer Other 23,046 23,046 23,046 34,107 34,107 34,107 Total $ 4,101,418 $ 4,001,617 $ 982,354 $ 3,824,063 $ 3,724,262 $ 1,009,243 The following table presents average impaired loans and interest income recognized on those impaired loans, by class, for the periods indicated: Three Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 128,953 $ 2,178 $ 165,274 $ 2,429 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 984,499 10,378 1,276,906 9,999 Consumer Real Estate 879,753 8,562 451,318 5,972 Consumer Other — — — — Total 1,993,205 21,118 1,893,498 18,400 With an allowance recorded: Commercial 1,702,976 26,195 1,685,930 26,484 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 411,107 2,739 933,243 2,792 Consumer Real Estate — — 43,119 462 Consumer Other 24,518 329 34,579 463 Total 2,138,601 29,263 2,696,871 30,201 Commercial 1,831,929 28,373 1,851,204 28,913 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,395,606 13,117 2,210,149 12,791 Consumer Real Estate 879,753 8,562 494,437 6,434 Consumer Other 24,518 329 34,579 463 Total $ 4,131,806 $ 50,381 $ 4,590,369 $ 48,601 Nine Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 137,445 $ 6,551 $ 173,964 $ 7,416 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 983,516 29,724 1,275,402 23,084 Consumer Real Estate 879,753 37,847 451,025 16,938 Consumer Other — — — — Total 2,000,714 74,122 1,900,391 47,438 With an allowance recorded: Commercial 1,742,743 81,553 1,711,259 76,544 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 419,231 8,209 930,420 5,367 Consumer Real Estate — — 43,119 1,296 Consumer Other 27,469 1,084 36,056 1,419 Total 2,189,443 90,846 2,720,854 84,626 Commercial 1,880,188 88,104 1,885,223 83,960 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,402,747 37,933 2,205,822 28,451 Consumer Real Estate 879,753 37,847 494,144 18,234 Consumer Other 27,469 1,084 36,056 1,419 Total $ 4,190,157 $ 164,968 $ 4,621,245 $ 132,064 In general, the modification or restructuring of a debt is considered a troubled debt restructuring (“TDR”) if we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise consider. As of September 30, 2018, there was one TDR with a balance of $23,046, compared to one TDR with a total balance of $33,300 as of December 31, 2017. These TDRs were granted extended payment terms with no principal reduction. All TDRs were performing as agreed as of September 30, 2018 and December 31, 2017, respectively. No TDRs defaulted during the nine months ended September 30, 2018 and 2017, which were modified within the previous twelve months. |
Disclosure Regarding Fair Value
Disclosure Regarding Fair Value of Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
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 the 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. GAAP 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 paragraphs describe the valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Investment Securities Available for Sale Investment Securities 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. 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 September 30, 2018 and December 31, 2017. Assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 are as follows: Balance as of September 30, 2018 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 31,839,733 $ — $ — $ 31,839,733 Government-Sponsored Enterprises — 58,570,650 — 58,570,650 Municipal Securities — 21,649,135 6,543,683 28,192,818 Total $ 31,839,733 $ 80,219,785 $ 6,543,683 $ 118,603,201 Balance as of December 31, 2017 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 35,559,845 $ — $ — $ 35,559,845 Government-Sponsored Enterprises — 63,556,504 — 63,556,504 Municipal Securities — 28,675,012 11,458,889 40,133,901 Total $ 35,559,845 $ 92,231,516 $ 11,458,889 $ 139,250,250 There were no liabilities recorded at fair value on a recurring basis as of September 30, 2018 or December 31, 2017. 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 and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Beginning Balance $ 7,096,356 $ 12,488,995 $ 11,458,889 $ 13,977,857 Total realized/unrealized gains (losses) Included in earnings — — — — Included in other comprehensive income 52,254 13,852 119,721 254,940 Purchases, issuances, and settlements net of maturities (604,927 ) (593,719 ) (5,034,927 ) (2,323,719 ) Transfers in and/or out of Level 3 — — — — Ending Balance $ 6,543,683 $ 11,909,128 $ 6,543,683 $ 11,909,078 There were no transfers between fair value levels during the nine months ended September 30, 2018 or September 30, 2017. The following paragraphs describe the 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. 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 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. 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. Mortgage Loans to be Sold Mortgage loans to be sold are carried at the lower of cost or market value. The fair values of mortgage loans to be sold 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 tables present information about certain assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2018 and December 31, 2017: September 30, 2018 Quoted Market Price in active markets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total Impaired loans $ — $ — $ 2,229,800 $ 2,229,800 Other real estate owned — — — — Loans held for sale — 2,861,227 — 2,861,227 Total $ — $ 2,861,227 $ 2,229,800 $ 5,091,027 December 31, 2017 Quoted Market Price in active markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 1,735,051 $ 1,735,051 Other real estate owned — — 435,479 435,479 Loans held for sale — 2,093,723 — 2,093,723 Total $ — $ 2,093,723 $ 2,170,530 $ 4,264,253 There were no liabilities measured at fair value on a nonrecurring basis as of September 30, 2018 or December 31, 2017. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements as of September 30, 2018 and 2017: Inputs Valuation Technique Unobservable Input General Range of Inputs Impaired Loans 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 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. 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 paragraphs describe the methods and assumptions we use in estimating the fair values of financial instruments: a. Cash and due from banks, interest-bearing deposits at the Federal Reserve The carrying value approximates fair value. All mature within 90 days and do not present unanticipated credit concerns. b. Investment securities available for sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are 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. c. Loans, net During the first quarter of 2018, the Company adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities As of September 30, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. As of December 31, 2017, the fair value of the Company’s loan portfolio included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption was intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price as of December 31, 2017. 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). 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 tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of September 30, 2018 and December 31, 2017. Fair Value Measurements at September 30, 2018 Carrying Estimated Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,187,758 $ 8,187,758 $ 8,187,758 $ — $ — Interest-bearing deposits at the Federal Reserve 21,573,263 21,573,263 21,573,263 — — Investment securities available for sale 118,603,201 118,603,201 31,839,733 80,219,785 6,543,683 Mortgage loans to be sold 2,861,227 2,861,227 — 2,861,227 — Loans, net 270,521,873 264,323,028 — — 264,323,028 Accrued interest receivable 1,471,368 1,471,368 — 1,471,368 — Financial Liabilities: Demand deposits 339,719,194 339,719,194 — 339,719,194 — Time deposits 43,322,064 44,653,911 — 44,653,911 — Accrued interest payable 149,179 149,179 — 149,179 — Fair Value Measurements at December 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,486,025 $ 8,486,025 $ 8,486,025 $ — $ — Interest-bearing deposits at the Federal Reserve 24,034,194 24,034,194 24,034,194 — — Investment securities available for sale 139,250,250 139,250,250 35,559,845 92,231,516 11,458,889 Mortgage loans to be sold 2,093,723 2,093,723 — 2,093,723 — Loans, net 266,305,242 265,277,204 — — 265,277,204 Accrued interest receivable 1,720,920 1,720,920 — 1,720,920 — Financial Liabilities: Demand deposits 360,967,884 360,967,884 — 360,967,884 — Time deposits 41,920,416 40,722,870 — 40,722,870 — Accrued interest payable 96,190 96,190 — 96,190 — |
Income Per Common Share
Income Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
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, after giving retroactive effect to a stock dividend paid on May 31, 2018. 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. The following table is a summary of the reconciliation of average shares outstanding for the three months ended September 30: 2018 2017 Net income $ 1,778,153 $ 1,440,653 Weighted average shares outstanding 5,506,649 5,475,504 Effect of dilutive shares 82,900 112,906 Weighted average shares outstanding - diluted 5,589,549 5,588,410 Earnings per share - basic $ 0.32 $ 0.26 Earnings per share - diluted $ 0.32 $ 0.26 The following table is a summary of the reconciliation of average shares outstanding for the nine months ended September 30: 2018 2017 Net income $ 5,116,740 $ 4,053,126 Weighted average shares outstanding 5,496,346 5,459,006 Effect of dilutive shares 83,643 109,793 Weighted average shares outstanding - diluted 5,579,989 5,568,799 Earnings per share - basic $ 0.93 $ 0.74 Earnings per share - diluted $ 0.92 $ 0.73 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, 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 | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“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 Securities and Exchange Commission (“SEC”) on March 3, 2018. 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 | 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, deferred tax assets, the fair value of financial instruments 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 period’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 is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Dilutive income 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. Retroactive recognition has been given for the effects of all stock dividends. On March 22, 2018, the Company approved a 10% stock dividend payable May 31, 2018 to shareholders of record as of April 30, 2018. Shares and share data have been adjusted retroactively to reflect the stock dividend. In recognition of the Company's 2018 performance to-date, on September 27, 2018, we declared a special cash dividend of $0.10 per share to shareholders of record October 9, 2018, payable October 31, 2018, to reward our shareholders. |
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 Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, Topic 606. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10); Recognition and Measurement of Financial Instruments and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow- Scope Improvements and Practical Expedients In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Revenue from Contracts with Customers In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs Premium Amortization of Purchased Callable Debt Securities In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall Recognition and Measurement of Financial Assets and Financial Liabilities In March 2018, the FASB issued ASU 2018-4, Investments—Debt Securities and Regulated Operations Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 In March 2018, the FASB issued ASU 2018-05, Income Taxes Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In May 2018, the FASB amended the Financial Services – Depository and Lending Topic of the ASC to remove outdated guidance related to Circular 202. The amendments were effective upon issuance and did not have a material effect on the financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 – Leases. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, In August 2018, the FASB amended the Fair Value Measurement Topic of the ASC. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the ASC to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. 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) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost fair value of investment securities available for sale | The amortized cost, gross unrealized gains and losses, and estimated fair value of investment securities available for sale are summarized as follows: September 30, 2018 Amortized Gross Gross Estimated U.S. Treasury Notes $ 32,967,828 $ — $ (1,128,095 ) $ 31,839,733 Government-Sponsored Enterprises 60,727,011 — (2,156,361 ) 58,570,650 Municipal Securities 28,632,346 115,836 (555,364 ) 28,192,818 Total $ 122,327,185 $ 115,836 $ (3,839,820 ) $ 118,603,201 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 35,970,990 $ — $ (411,145 ) $ 35,559,845 Government-Sponsored Enterprises 64,444,315 — (887,811 ) 63,556,504 Municipal Securities 40,191,502 487,545 (545,146 ) 40,133,901 Total $ 140,606,807 $ 487,545 $ (1,844,102 ) $ 139,250,250 |
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2018 and December 31, 2017, by contractual maturity are as follows: September 30, 2018 December 31, 2017 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 4,251,445 $ 4,259,579 $ 11,554,040 $ 11,546,968 Due in one year to five years 99,801,938 96,746,338 72,622,056 72,124,395 Due in five years to ten years 17,858,947 17,228,111 53,290,088 52,576,036 Due in ten years and over 414,855 369,173 3,140,623 3,002,851 Total $ 122,327,185 $ 118,603,201 $ 140,606,807 $ 139,250,250 |
Schedule of investment securities gross unrealized losses on investment securities and the fair market value of the related securities | 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, as of September 30, 2018 and December 31, 2017. We believe that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions 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 # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss September 30, 2018 U.S. Treasury Notes 7 $ 31,839,733 $ (1,128,095 ) — $ — $ — 7 $ 31,839,733 $ (1,128,095 ) Government-Sponsored Enterprises 9 43,775,540 (1,322,126 ) 4 14,795,110 (834,235 ) 13 58,570,650 (2,156,361 ) Municipal Securities 19 8,143,784 (200,329 ) 19 7,387,750 (355,035 ) 38 15,531,534 (555,364 ) Total 35 $ 83,759,057 $ (2,650,550 ) 23 $ 22,182,860 $ (1,189,270 ) 58 $ 105,941,917 $ (3,839,820 ) December 31, 2017 U.S. Treasury Notes 8 $ 35,559,845 $ (411,145 ) — $ — $ — 8 $ 35,559,845 $ (411,145 ) Government-Sponsored Enterprises 12 53,275,064 (462,174 ) 3 10,281,440 (425,637 ) 15 63,556,504 (887,811 ) Municipal Securities 20 7,815,221 (134,998 ) 29 11,056,185 (410,148 ) 49 18,871,406 (545,146 ) Total 40 $ 96,650,130 $ (1,008,317 ) 32 $ 21,337,625 $ (835,785 ) 72 $ 117,987,755 $ (1,844,102 ) |
Schedule of proceeds from sales of securities available for sale and gross realized gains and losses | We received proceeds from sales of securities available for sale and gross realized gains and losses as follows: Three Months Ended September 30, 2018 2017 Gross proceeds $ — $ 20,231,265 Gross realized gains — 154,692 Gross realized losses — (108,872 ) Nine Months Ended September 30, 2018 2017 Gross proceeds $ 21,434,634 $ 20,231,265 Gross realized gains 104,634 154,692 Gross realized losses (99,899 ) ( 108,872 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of major classifications of loans | Major classifications of loans (net of deferred loan fees of $159,418 as of September 30, 2018 and $152,047 as of December 31, 2017) are as follows: September 30, 2018 December 31, 2017 Commercial loans $ 55,372,741 $ 51,723,237 Commercial real estate: Construction 4,997,437 2,317,857 Other 140,978,428 140,186,324 Consumer: Real estate 68,179,290 70,797,973 Other 5,099,907 5,155,249 274,627,803 270,180,640 Allowance for loan losses (4,105,930 ) (3,875,398 ) Loans, net $ 270,521,873 $ 266,305,242 |
Schedule of credit quality by class and internally assigned grades | The following tables illustrate credit quality by class and internally assigned grades as of September 30, 2018 and December 31, 2017. “Pass” includes loans internally graded as excellent, good and satisfactory. September 30, 2018 Commercial Commercial Construction Commercial Other Consumer Consumer Total Pass $ 52,477,930 $ 4,997,437 $ 136,098,726 $ 65,689,519 $ 4,796,814 $ 264,060,426 Watch 1,047,571 — 2,907,641 1,610,019 212,117 5,777,348 OAEM — — 593,359 — — 593,359 Substandard 1,847,240 — 1,378,702 879,752 90,976 4,196,670 Doubtful — — — — — — Loss — — — — — — Total $ 55,372,741 $ 4,997,437 $ 140,978,428 $ 68,179,290 $ 5,099,907 $ 274,627,803 December 31, 2017 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Pass $ 47,456,205 $ 1,936,335 $ 134,401,977 $ 68,570,298 $ 4,933,696 $ 257,298,511 Watch 2,403,978 381,522 3,605,621 1,934,802 185,746 8,511,669 OAEM — — 610,806 — — 610,806 Substandard 1,863,054 — 1,567,920 292,873 35,807 3,759,654 Doubtful — — — — — — Loss — — — — — — Total $ 51,723,237 $ 2,317,857 $ 140,186,324 $ 70,797,973 $ 5,155,249 $ 270,180,640 |
Schedule of aging analysis of the recorded investment in loans segregated by class | The following tables include an aging analysis of the recorded investment in loans segregated by class: September 30, 2018 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 284,995 $ 229,396 $ — $ 514,391 $ 54,858,350 $ 55,372,741 $ — Commercial Real Estate - Construction — — — — 4,997,437 4,997,437 — Commercial Real Estate - Other 209,806 — 571,292 781,098 140,197,330 140,978,428 — Consumer Real Estate — — — — 68,179,290 68,179,290 — Consumer Other 13,622 — — 13,622 5,086,285 5,099,907 — Total $ 508,423 $ 229,396 $ 571,292 $ 1,309,111 $ 273,318,692 $ 274,627,803 $ — December 31, 2017 30-59 Days 60-89 Days Greater Than 90 Days Total Current Total Recorded Commercial $ 3,531 $ 192,846 $ — $ 196,377 $ 51,526,860 $ 51,723,237 $ — Commercial Real Estate - Construction — — — — 2,317,857 2,317,857 — Commercial Real Estate - Other — — 651,578 651,578 139,534,746 140,186,324 — Consumer Real Estate — — — — 70,797,973 70,797,973 — Consumer Other 10,302 — 34,107 44,409 5,110,840 5,155,249 34,107 Total $ 13,833 $ 192,846 $ 685,685 $ 892,364 $ 269,288,276 $ 270,180,640 $ 34,107 |
Schedule of non-accrual loans | The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual September 30, 2018 December 31, 2017 Commercial $ 27,230 $ 41,651 Commercial Real Estate - Construction — — Commercial Real Estate - Other 571,292 790,208 Consumer Real Estate — — Consumer Other 3,405 — Total $ 601,927 $ 831,859 |
Schedule of change in allowance and an allocation of the allowance by loan categery | The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and nine months ended September 30, 2018 and September 30, 2017. The allowance for loan losses 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. Three Months Ended September 30, 2018 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,343,760 $ 29,091 $ 972,038 $ 589,051 $ 1,073,524 $ 4,007,464 Charge-offs — — — — (12,794 ) (12,794 ) Recoveries 11,000 — — — 260 11,260 Provisions 146,752 4,404 10,334 (84,365 ) 22,875 100,000 Ending Balance $ 1,501,512 $ 33,495 $ 982,372 $ 504,686 $ 1,083,865 $ 4,105,930 Nine Months Ended September 30, 2018 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,403,588 $ 23,638 $ 1,549,755 $ 796,918 $ 101,499 $ 3,875,398 Charge-offs (31,250 ) — — — (84,637 ) (115,887 ) Recoveries 13,500 — 56,827 45,412 680 116,419 Provisions 115,674 9,857 (624,210 ) (337,644 ) 1,066,323 230,000 Ending Balance $ 1,501,512 $ 33,495 $ 982,372 $ 504,686 $ 1,083,865 $ 4,105,930 Three Months Ended September 30, 2017 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Charge-offs — — — (80,787 ) (2,489 ) (83,276 ) Recoveries — — — 21,000 1,720 22,720 Provisions 403,920 (7,235 ) (209,108 ) (150,697 ) (16,880 ) 20,000 Ending Balance $ 2,032,592 $ 45,528 $ 1,173,811 $ 561,369 $ 73,659 $ 3,886,959 Nine Months Ended September 30, 2017 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses: Beginning Balance $ 1,545,188 $ 51,469 $ 1,374,706 $ 726,391 $ 153,863 $ 3,851,617 Charge-offs — — — (80,786 ) (4,863 ) (85,649 ) Recoveries — — — 63,000 5,491 68,491 Provisions 487,404 (5,941 ) (200,895 ) (147,236 ) (80,832 ) 52,500 Ending Balance $ 2,032,592 $ 45,528 $ 1,173,811 $ 561,369 $ 73,659 $ 3,886,959 |
Schedule of allocation of the allowance for loan losses and the gross investment in loans | The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: September 30, 2018 Commercial Commercial Commercial Consumer Consumer Total Allowance for Loan Losses Individually evaluated for impairment $ 918,694 $ — $ 40,614 $ — $ 23,046 $ 982,354 Collectively evaluated for impairment 582,818 33,495 941,758 504,686 1,060,819 3,123,576 Total Allowance for Loan Losses $ 1,501,512 $ 33,495 $ 982,372 $ 504,686 $ 1,083,865 $ 4,105,930 Loans Receivable Individually evaluated for impairment $ 1,807,958 $ — $ 1,390,661 $ 879,753 $ 23,046 $ 4,101,418 Collectively evaluated for impairment 53,564,783 4,997,437 139,587,767 67,299,537 5,076,861 270,526,385 Total Loans Receivable $ 55,372,741 $ 4,997,437 $ 140,978,428 $ 68,179,290 $ 5,099,907 $ 274,627,803 December 31, 2017 Commercial Commercial Commercial Real Estate - Consumer Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 832,571 $ — $ 99,523 $ 43,042 $ 34,107 $ 1,009,243 Collectively evaluated for impairment 571,017 23,638 1,450,232 753,876 67,392 2,866,155 Total Allowance for Losses $ 1,403,588 $ 23,638 $ 1,549,755 $ 796,918 $ 101,499 $ 3,875,398 Loans Receivable Individually evaluated for impairment $ 1,812,461 $ — $ 1,584,821 $ 292,873 $ 34,107 $ 3,724,262 Collectively evaluated for impairment 49,910,776 2,317,857 138,601,503 70,505,100 5,121,142 266,456,378 Total Loans Receivable $ 51,723,237 $ 2,317,857 $ 140,186,324 $ 70,797,973 $ 5,155,249 $ 270,180,640 |
Schedule of loans individually evaluated for impairment and the corresponding allowance for loan losses | As of September 30, 2018 and December 31, 2017, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table: Impaired and Restructured Loans As of September 30, 2018 December 31, 2017 Unpaid Principal Balance Recorded Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 124,983 $ 124,983 — $ 152,490 $ 152,490 $ — Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 981,021 981,021 — 1,058,601 1,058,601 — Consumer Real Estate 879,753 879,753 — 249,754 249,754 — Consumer Other — — — — — — Total 1,985,757 1,985,757 — 1,460,845 1,460,845 — With an allowance recorded: Commercial 1,682,975 1,682,975 918,694 1,659,971 1,659,971 832,571 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 409,640 309,839 40,614 626,021 526,220 99,523 Consumer Real Estate — — — 43,119 43,119 43,042 Consumer Other 23,046 23,046 23,046 34,107 34,107 34,107 Total 2,115,661 2,015,860 982,354 2,363,218 2,263,417 1,009,243 Total Commercial 1,807,958 1,807,958 918,694 1,812,461 1,812,461 832,571 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 1,390,661 1,290,860 40,614 1,684,622 1,584,821 99,523 Consumer Real Estate 879,753 879,753 — 292,873 292,873 43,042 Consumer Other 23,046 23,046 23,046 34,107 34,107 34,107 Total $ 4,101,418 $ 4,001,617 $ 982,354 $ 3,824,063 $ 3,724,262 $ 1,009,243 |
Schedule of average impaired loans and interest income recognized on those impaired loans by class | The following table presents average impaired loans and interest income recognized on those impaired loans, by class, for the periods indicated: Three Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 128,953 $ 2,178 $ 165,274 $ 2,429 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 984,499 10,378 1,276,906 9,999 Consumer Real Estate 879,753 8,562 451,318 5,972 Consumer Other — — — — Total 1,993,205 21,118 1,893,498 18,400 With an allowance recorded: Commercial 1,702,976 26,195 1,685,930 26,484 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 411,107 2,739 933,243 2,792 Consumer Real Estate — — 43,119 462 Consumer Other 24,518 329 34,579 463 Total 2,138,601 29,263 2,696,871 30,201 Commercial 1,831,929 28,373 1,851,204 28,913 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,395,606 13,117 2,210,149 12,791 Consumer Real Estate 879,753 8,562 494,437 6,434 Consumer Other 24,518 329 34,579 463 Total $ 4,131,806 $ 50,381 $ 4,590,369 $ 48,601 Nine Months Ended September 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 137,445 $ 6,551 $ 173,964 $ 7,416 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 983,516 29,724 1,275,402 23,084 Consumer Real Estate 879,753 37,847 451,025 16,938 Consumer Other — — — — Total 2,000,714 74,122 1,900,391 47,438 With an allowance recorded: Commercial 1,742,743 81,553 1,711,259 76,544 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 419,231 8,209 930,420 5,367 Consumer Real Estate — — 43,119 1,296 Consumer Other 27,469 1,084 36,056 1,419 Total 2,189,443 90,846 2,720,854 84,626 Commercial 1,880,188 88,104 1,885,223 83,960 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,402,747 37,933 2,205,822 28,451 Consumer Real Estate 879,753 37,847 494,144 18,234 Consumer Other 27,469 1,084 36,056 1,419 Total $ 4,190,157 $ 164,968 $ 4,621,245 $ 132,064 |
Disclosure Regarding Fair Val_2
Disclosure Regarding Fair Value of Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 as of September 30, 2018 and December 31, 2017 are as follows: Balance as of September 30, 2018 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 31,839,733 $ — $ — $ 31,839,733 Government-Sponsored Enterprises — 58,570,650 — 58,570,650 Municipal Securities — 21,649,135 6,543,683 28,192,818 Total $ 31,839,733 $ 80,219,785 $ 6,543,683 $ 118,603,201 Balance as of December 31, 2017 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 35,559,845 $ — $ — $ 35,559,845 Government-Sponsored Enterprises — 63,556,504 — 63,556,504 Municipal Securities — 28,675,012 11,458,889 40,133,901 Total $ 35,559,845 $ 92,231,516 $ 11,458,889 $ 139,250,250 |
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 and nine months ended September 30, 2018 and 2017: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Beginning Balance $ 7,096,356 $ 12,488,995 $ 11,458,889 $ 13,977,857 Total realized/unrealized gains (losses) Included in earnings — — — — Included in other comprehensive income 52,254 13,852 119,721 254,940 Purchases, issuances, and settlements net of maturities (604,927 ) (593,719 ) (5,034,927 ) (2,323,719 ) Transfers in and/or out of Level 3 — — — — Ending Balance $ 6,543,683 $ 11,909,128 $ 6,543,683 $ 11,909,078 |
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | The following tables present information about certain assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2018 and December 31, 2017: September 30, 2018 Quoted Market Price in active markets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total Impaired loans $ — $ — $ 2,229,800 $ 2,229,800 Other real estate owned — — — — Loans held for sale — 2,861,227 — 2,861,227 Total $ — $ 2,861,227 $ 2,229,800 $ 5,091,027 December 31, 2017 Quoted Market Price in active markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 1,735,051 $ 1,735,051 Other real estate owned — — 435,479 435,479 Loans held for sale — 2,093,723 — 2,093,723 Total $ — $ 2,093,723 $ 2,170,530 $ 4,264,253 |
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 as of September 30, 2018 and 2017: Inputs Valuation Technique Unobservable Input General Range of Inputs Impaired Loans 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 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, fair value, and placement in the fair value hierarchy of financial instruments | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of September 30, 2018 and December 31, 2017. Fair Value Measurements at September 30, 2018 Carrying Estimated Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,187,758 $ 8,187,758 $ 8,187,758 $ — $ — Interest-bearing deposits at the Federal Reserve 21,573,263 21,573,263 21,573,263 — — Investment securities available for sale 118,603,201 118,603,201 31,839,733 80,219,785 6,543,683 Mortgage loans to be sold 2,861,227 2,861,227 — 2,861,227 — Loans, net 270,521,873 264,323,028 — — 264,323,028 Accrued interest receivable 1,471,368 1,471,368 — 1,471,368 — Financial Liabilities: Demand deposits 339,719,194 339,719,194 — 339,719,194 — Time deposits 43,322,064 44,653,911 — 44,653,911 — Accrued interest payable 149,179 149,179 — 149,179 — Fair Value Measurements at December 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,486,025 $ 8,486,025 $ 8,486,025 $ — $ — Interest-bearing deposits at the Federal Reserve 24,034,194 24,034,194 24,034,194 — — Investment securities available for sale 139,250,250 139,250,250 35,559,845 92,231,516 11,458,889 Mortgage loans to be sold 2,093,723 2,093,723 — 2,093,723 — Loans, net 266,305,242 265,277,204 — — 265,277,204 Accrued interest receivable 1,720,920 1,720,920 — 1,720,920 — Financial Liabilities: Demand deposits 360,967,884 360,967,884 — 360,967,884 — Time deposits 41,920,416 40,722,870 — 40,722,870 — Accrued interest payable 96,190 96,190 — 96,190 — |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of average shares outstanding | The following table is a summary of the reconciliation of average shares outstanding for the three months ended September 30: 2018 2017 Net income $ 1,778,153 $ 1,440,653 Weighted average shares outstanding 5,506,649 5,475,504 Effect of dilutive shares 82,900 112,906 Weighted average shares outstanding - diluted 5,589,549 5,588,410 Earnings per share - basic $ 0.32 $ 0.26 Earnings per share - diluted $ 0.32 $ 0.26 The following table is a summary of the reconciliation of average shares outstanding for the nine months ended September 30: 2018 2017 Net income $ 5,116,740 $ 4,053,126 Weighted average shares outstanding 5,496,346 5,459,006 Effect of dilutive shares 83,643 109,793 Weighted average shares outstanding - diluted 5,579,989 5,568,799 Earnings per share - basic $ 0.93 $ 0.74 Earnings per share - diluted $ 0.92 $ 0.73 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Details Narrative) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 27, 2018 | |
Common stock dividend (percent) | 10.00% | |
Dividend Declared [Member] | ||
Cash dividends declared (per share) | $ 0.10 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | $ 122,327,185 | $ 140,606,807 |
Gross Unrealized Gains | 115,836 | 487,545 |
Gross Unrealized Losses | (3,839,820) | (1,844,102) |
Estimated Fair Value | 118,603,201 | 139,250,250 |
U.S. Treasury Notes [Member] | ||
Amortized Cost | 32,967,828 | 35,970,990 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1,128,095) | (411,145) |
Estimated Fair Value | 31,839,733 | 35,559,845 |
Government-Sponsored Enterprises [Member] | ||
Amortized Cost | 60,727,011 | 64,444,315 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (2,156,361) | (887,811) |
Estimated Fair Value | 58,570,650 | 63,556,504 |
Municipal Securities [Member] | ||
Amortized Cost | 28,632,346 | 40,191,502 |
Gross Unrealized Gains | 115,836 | 487,545 |
Gross Unrealized Losses | (555,364) | (545,146) |
Estimated Fair Value | $ 28,192,818 | $ 40,133,901 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 4,251,445 | $ 11,554,040 |
Due in one year to five years | 99,801,938 | 72,622,056 |
Due in five years to ten years | 17,858,947 | 53,290,088 |
Due in ten years and over | 414,855 | 3,140,623 |
Total | 122,327,185 | 140,606,807 |
Estimated Fair Value | ||
Due in one year or less | 4,259,579 | 11,546,968 |
Due in one year to five years | 96,746,338 | 72,124,395 |
Due in five years to ten years | 17,228,111 | 52,576,036 |
Due in ten years and over | 369,173 | 3,002,851 |
Total | $ 118,603,201 | $ 139,250,250 |
Investment Securities (Detail_2
Investment Securities (Details 2) | Sep. 30, 2018USD ($)Number | Dec. 31, 2017USD ($)Number |
Less than 12 Months | ||
Number of positions | Number | 35 | 40 |
Fair Value | $ 83,759,057 | $ 96,650,130 |
Gross Unrealized Loss | $ (2,650,550) | $ (1,008,317) |
12 months or Longer | ||
Number of positions | Number | 23 | 32 |
Fair value | $ 22,182,860 | $ 21,337,625 |
Gross Unrealized Losses | $ (1,189,270) | $ (835,785) |
Total | ||
Number of positions | Number | 58 | 72 |
Fair value | $ 105,941,917 | $ 117,987,755 |
Gross Unrealized Loss | $ (3,839,820) | $ (1,844,102) |
U.S. Treasury Notes [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 7 | 8 |
Fair Value | $ 31,839,733 | $ 35,559,845 |
Gross Unrealized Loss | $ (1,128,095) | $ (411,145) |
Total | ||
Number of positions | Number | 7 | 8 |
Fair value | $ 31,839,733 | $ 35,559,845 |
Gross Unrealized Loss | $ (1,128,095) | $ (411,145) |
Government-Sponsored Enterprises [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 9 | 12 |
Fair Value | $ 43,775,540 | $ 53,275,064 |
Gross Unrealized Loss | $ (1,322,126) | $ (462,174) |
12 months or Longer | ||
Number of positions | Number | 4 | 3 |
Fair value | $ 14,795,110 | $ 10,281,440 |
Gross Unrealized Losses | $ (834,235) | $ (425,637) |
Total | ||
Number of positions | Number | 13 | 15 |
Fair value | $ 58,570,650 | $ 63,556,504 |
Gross Unrealized Loss | $ (2,156,361) | $ (887,811) |
Municipal Securities [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 19 | 20 |
Fair Value | $ 8,143,784 | $ 7,815,221 |
Gross Unrealized Loss | $ (200,329) | $ (134,998) |
12 months or Longer | ||
Number of positions | Number | 19 | 29 |
Fair value | $ 7,387,750 | $ 11,056,185 |
Gross Unrealized Losses | $ (355,035) | $ (410,148) |
Total | ||
Number of positions | Number | 38 | 49 |
Fair value | $ 15,531,534 | $ 18,871,406 |
Gross Unrealized Loss | $ (555,364) | $ (545,146) |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross proceeds | $ 20,231,265 | $ 21,434,634 | $ 20,231,265 | |
Gross realized gains | 154,692 | 104,634 | 154,692 | |
Gross realized losses | $ (108,872) | $ (99,899) | $ (108,872) |
Investment Securities (Detail_4
Investment Securities (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Investment securities pledged to secure deposits, fair value | $ 40,500,000 | $ 49,400,000 |
Gross realized gains (losses) on sale of investments, tax | $ 994 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Loans | $ 274,627,803 | $ 270,180,640 |
Allowance for loan losses | (4,105,930) | (3,875,398) |
Loans, net | 270,521,873 | 266,305,242 |
Commercial Loans [Member] | ||
Loans | 55,372,741 | 51,723,237 |
Commercial Real Estate Construction [Member] | ||
Loans | 4,997,437 | 2,317,857 |
Commercial Real Estate Other [Member] | ||
Loans | 140,978,428 | 140,186,324 |
Consumer Real Estate [Member] | ||
Loans | 68,179,290 | 70,797,973 |
Consumer Other [Member] | ||
Loans | $ 5,099,907 | $ 5,155,249 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 1) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Credit risks by category and internally assigned grades | ||
Loans | $ 274,627,803 | $ 270,180,640 |
Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 264,060,426 | 257,298,511 |
Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,777,348 | 8,511,669 |
OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 593,359 | 610,806 |
Substandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,196,670 | 3,759,654 |
Commercial Loans [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 55,372,741 | 51,723,237 |
Commercial Loans [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 52,477,930 | 47,456,205 |
Commercial Loans [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,047,571 | 2,403,978 |
Commercial Loans [Member] | Substandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,847,240 | 1,863,054 |
Commercial Real Estate Construction [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,997,437 | 2,317,857 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,997,437 | 1,936,335 |
Commercial Real Estate Construction [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 381,522 | |
Commercial Real Estate Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 140,978,428 | 140,186,324 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 136,098,726 | 134,401,977 |
Commercial Real Estate Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 2,907,641 | 3,605,621 |
Commercial Real Estate Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 593,359 | 610,806 |
Commercial Real Estate Other [Member] | Substandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,378,702 | 1,567,920 |
Consumer Real Estate [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 68,179,290 | 70,797,973 |
Consumer Real Estate [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 65,689,519 | 68,570,298 |
Consumer Real Estate [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,610,019 | 1,934,802 |
Consumer Real Estate [Member] | Substandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 879,752 | 292,873 |
Consumer Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,099,907 | 5,155,249 |
Consumer Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,796,814 | 4,933,696 |
Consumer Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 212,117 | 185,746 |
Consumer Other [Member] | Substandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | $ 90,976 | $ 35,807 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 2) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,309,111 | $ 892,364 |
Current | 273,318,692 | 269,288,276 |
Total Loans Receivable | 274,627,803 | 270,180,640 |
Recorded Investment > 90 Days and Accuring Interest | 34,107 | |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 508,423 | 13,833 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 229,396 | 192,846 |
Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 571,292 | 685,685 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 514,391 | 196,377 |
Current | 54,858,350 | 51,526,860 |
Total Loans Receivable | 55,372,741 | 51,723,237 |
Commercial Loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 284,995 | 3,531 |
Commercial Loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 229,396 | 192,846 |
Commercial Real Estate Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,997,437 | 2,317,857 |
Total Loans Receivable | 4,997,437 | 2,317,857 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 781,098 | 651,578 |
Current | 140,197,330 | 139,534,746 |
Total Loans Receivable | 140,978,428 | 140,186,324 |
Commercial Real Estate Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 209,806 | |
Commercial Real Estate Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 571,292 | 651,578 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 68,179,290 | 70,797,973 |
Total Loans Receivable | 68,179,290 | 70,797,973 |
Consumer Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,622 | 44,409 |
Current | 5,086,285 | 5,110,840 |
Total Loans Receivable | 5,099,907 | 5,155,249 |
Recorded Investment > 90 Days and Accuring Interest | 34,107 | |
Consumer Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 13,622 | 10,302 |
Consumer Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 34,107 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 3) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 601,927 | $ 831,859 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | 27,230 | 41,651 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | 571,292 | $ 790,208 |
Consumer Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 3,405 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 4) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | $ 4,007,464 | $ 3,927,515 | $ 3,875,398 | $ 3,851,617 |
Charge-offs | (12,794) | (83,276) | (115,887) | (85,649) |
Recoveries | 11,260 | 22,720 | 116,339 | 68,491 |
Provisions | 100,000 | 20,000 | 230,000 | 52,500 |
Ending Balance | 4,105,930 | 3,886,959 | 4,105,930 | 3,886,959 |
Commercial Loans [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 1,343,760 | 1,628,672 | 1,403,588 | 1,545,188 |
Charge-offs | (31,250) | |||
Recoveries | 11,000 | 13,500 | ||
Provisions | 146,752 | 403,920 | 115,674 | 487,404 |
Ending Balance | 1,501,512 | 2,032,592 | 1,501,512 | 2,032,592 |
Commercial Real Estate Construction [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 29,091 | 52,763 | 23,638 | 51,469 |
Provisions | 4,404 | (7,235) | 9,857 | (5,941) |
Ending Balance | 33,495 | 45,528 | 33,495 | 45,528 |
Commercial Real Estate Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 972,038 | 1,382,919 | 1,549,755 | 1,374,706 |
Recoveries | 56,827 | |||
Provisions | 10,334 | (209,108) | (624,210) | (200,895) |
Ending Balance | 982,372 | 1,173,811 | 982,372 | 1,173,811 |
Consumer Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 589,051 | 771,853 | 796,918 | 726,391 |
Charge-offs | (80,787) | (80,786) | ||
Recoveries | 21,000 | 45,412 | 63,000 | |
Provisions | (84,365) | (150,697) | (337,644) | (147,236) |
Ending Balance | 504,686 | 561,369 | 504,686 | 561,369 |
Consumer Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 1,073,524 | 91,308 | 101,499 | 153,863 |
Charge-offs | (12,794) | (2,489) | (84,637) | (4,863) |
Recoveries | 260 | 1,720 | 680 | 5,491 |
Provisions | 22,875 | (16,880) | 1,066,323 | (80,832) |
Ending Balance | $ 1,083,865 | $ 73,659 | $ 1,083,865 | $ 73,659 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details 5) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | $ 982,354 | $ 1,009,243 | ||||
Collectively evaluated for impairment | 3,123,576 | 2,866,155 | ||||
Total Allowance for Loan Losses | 4,105,930 | $ 4,007,464 | 3,875,398 | $ 3,886,959 | $ 3,927,515 | $ 3,851,617 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 4,101,418 | 3,724,262 | ||||
Collectively evaluated for impairment | 270,526,385 | 266,456,378 | ||||
Total Loans Receivable | 274,627,803 | 270,180,640 | ||||
Commercial Loans [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 918,694 | 832,571 | ||||
Collectively evaluated for impairment | 582,818 | 571,017 | ||||
Total Allowance for Loan Losses | 1,501,512 | 1,343,760 | 1,403,588 | 2,032,592 | 1,628,672 | 1,545,188 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 1,807,958 | 1,812,461 | ||||
Collectively evaluated for impairment | 53,564,783 | 49,910,776 | ||||
Total Loans Receivable | 55,372,741 | 51,723,237 | ||||
Commercial Real Estate Construction [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Collectively evaluated for impairment | 33,495 | 23,638 | ||||
Total Allowance for Loan Losses | 33,495 | 29,091 | 23,638 | 45,528 | 52,763 | 51,469 |
Loans Receivable: | ||||||
Collectively evaluated for impairment | 4,997,437 | 2,317,857 | ||||
Total Loans Receivable | 4,997,437 | 2,317,857 | ||||
Commercial Real Estate Other [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 40,614 | 99,523 | ||||
Collectively evaluated for impairment | 941,758 | 1,450,232 | ||||
Total Allowance for Loan Losses | 982,372 | 972,038 | 1,549,755 | 1,173,811 | 1,382,919 | 1,374,706 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 1,390,661 | 1,584,821 | ||||
Collectively evaluated for impairment | 139,587,767 | 138,601,503 | ||||
Total Loans Receivable | 140,978,428 | 140,186,324 | ||||
Consumer Real Estate [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 43,042 | |||||
Collectively evaluated for impairment | 504,686 | 753,876 | ||||
Total Allowance for Loan Losses | 504,686 | 589,051 | 796,918 | 561,369 | 771,853 | 726,391 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 879,753 | 292,873 | ||||
Collectively evaluated for impairment | 67,299,537 | 70,505,100 | ||||
Total Loans Receivable | 68,179,290 | 70,797,973 | ||||
Consumer Other [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 23,046 | 34,107 | ||||
Collectively evaluated for impairment | 1,060,819 | 67,392 | ||||
Total Allowance for Loan Losses | 1,083,865 | $ 1,073,524 | 101,499 | $ 73,659 | $ 91,308 | $ 153,863 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 23,046 | 34,107 | ||||
Collectively evaluated for impairment | 5,076,861 | 5,121,142 | ||||
Total Loans Receivable | $ 5,099,907 | $ 5,155,249 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details 6) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired and Restructured Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | $ 1,985,757 | $ 1,460,845 |
Recorded Investment with no related allowance recorded | 1,985,757 | 1,460,845 |
Impaired and Restructured Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 2,115,661 | 2,363,218 |
Recorded Investment with an allowance recorded | 2,015,860 | 2,263,417 |
Related Allowance | 982,354 | 1,009,243 |
Total of Impaired and Restructured Loans | ||
Unpaid Principal balance | 4,101,418 | 3,824,063 |
Recorded Investment | 4,001,617 | 3,724,262 |
Related Allowance | 982,354 | 1,009,243 |
Commercial Loans [Member] | ||
Impaired and Restructured Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 124,983 | 152,490 |
Recorded Investment with no related allowance recorded | 124,983 | 152,490 |
Impaired and Restructured Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 1,682,975 | 1,659,971 |
Recorded Investment with an allowance recorded | 1,682,975 | 1,659,971 |
Related Allowance | 918,694 | 832,571 |
Total of Impaired and Restructured Loans | ||
Unpaid Principal balance | 1,807,958 | 1,812,461 |
Recorded Investment | 1,807,958 | 1,812,461 |
Related Allowance | 918,694 | 832,571 |
Commercial Real Estate Other [Member] | ||
Impaired and Restructured Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 981,021 | 1,058,601 |
Recorded Investment with no related allowance recorded | 981,021 | 1,058,601 |
Impaired and Restructured Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 409,640 | 626,021 |
Recorded Investment with an allowance recorded | 309,839 | 526,220 |
Related Allowance | 40,614 | 99,523 |
Total of Impaired and Restructured Loans | ||
Unpaid Principal balance | 1,390,661 | 1,684,622 |
Recorded Investment | 1,290,860 | 1,584,821 |
Related Allowance | 40,614 | 99,523 |
Consumer Real Estate [Member] | ||
Impaired and Restructured Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 879,753 | 249,754 |
Recorded Investment with no related allowance recorded | 879,753 | 249,754 |
Impaired and Restructured Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 43,119 | |
Recorded Investment with an allowance recorded | 43,119 | |
Related Allowance | 43,042 | |
Total of Impaired and Restructured Loans | ||
Unpaid Principal balance | 879,753 | 292,873 |
Recorded Investment | 879,753 | 292,873 |
Related Allowance | 43,042 | |
Consumer Other [Member] | ||
Impaired and Restructured Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 23,046 | 34,107 |
Recorded Investment with an allowance recorded | 23,046 | 34,107 |
Related Allowance | 23,046 | 34,107 |
Total of Impaired and Restructured Loans | ||
Unpaid Principal balance | 23,046 | 34,107 |
Recorded Investment | 23,046 | 34,107 |
Related Allowance | $ 23,046 | $ 34,107 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Details 7) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | $ 1,993,205 | $ 1,893,498 | $ 2,000,714 | $ 1,900,391 |
Interest Income Recognized With no related allowance recorded | 21,118 | 18,400 | 74,122 | 47,438 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 2,138,601 | 2,696,871 | 2,189,443 | 2,720,854 |
Interest Income Recognized With an allowance recorded | 29,263 | 30,201 | 90,846 | 84,626 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 4,131,806 | 4,590,369 | 4,109,157 | 4,621,245 |
Interest Income Recognized | 50,381 | 48,601 | 164,968 | 132,064 |
Commercial Loans [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | 128,953 | 165,274 | 137,445 | 173,964 |
Interest Income Recognized With no related allowance recorded | 2,178 | 2,429 | 6,551 | 7,416 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 1,702,976 | 1,685,930 | 1,742,743 | 1,711,259 |
Interest Income Recognized With an allowance recorded | 26,195 | 26,484 | 81,553 | 76,544 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 1,831,929 | 1,851,204 | 1,880,188 | 1,885,223 |
Interest Income Recognized | 28,373 | 28,913 | 88,104 | 83,960 |
Commercial Real Estate Other [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | 984,499 | 1,276,906 | 983,516 | 1,275,402 |
Interest Income Recognized With no related allowance recorded | 10,378 | 9,999 | 29,724 | 23,084 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 411,107 | 933,243 | 419,231 | 930,420 |
Interest Income Recognized With an allowance recorded | 2,739 | 2,792 | 8,209 | 5,367 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 1,395,606 | 2,210,149 | 1,402,747 | 2,205,822 |
Interest Income Recognized | 13,117 | 12,791 | 37,933 | 28,451 |
Consumer Real Estate [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | 879,753 | 451,318 | 879,753 | 451,025 |
Interest Income Recognized With no related allowance recorded | 8,562 | 5,972 | 37,847 | 16,938 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 43,119 | 43,119 | ||
Interest Income Recognized With an allowance recorded | 462 | 1,296 | ||
Total Average Impaired Loans | ||||
Average Recorded Investment | 879,753 | 494,437 | 879,753 | 494,144 |
Interest Income Recognized | 8,562 | 6,434 | 37,847 | 18,234 |
Consumer Other [Member] | ||||
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 24,518 | 34,579 | 27,469 | 36,056 |
Interest Income Recognized With an allowance recorded | 329 | 463 | 1,084 | 1,419 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 24,518 | 34,579 | 27,469 | 36,056 |
Interest Income Recognized | $ 329 | $ 463 | $ 1,084 | $ 1,419 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Details Narrative) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($)Number |
Receivables [Abstract] | ||
Deferred loan fees | $ 159,418 | $ 152,047 |
Loans pledged as collateral to secure funding with the Federal Reserve Bank | 99,900,000 | $ 113,400,000 |
Number of loans over 90 days past due and still accruing | Number | 2 | |
Restructured loans | $ 23,046 | $ 33,300 |
Disclosure Regarding Fair Val_3
Disclosure Regarding Fair Value of Financial Statements (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Investment securities available for sale | $ 118,603,201 | $ 139,250,250 |
Level 1 [Member] | ||
Investment securities available for sale | 31,839,733 | 35,559,845 |
Level 2 [Member] | ||
Investment securities available for sale | 80,219,785 | 92,231,516 |
Level 3 [Member] | ||
Investment securities available for sale | 6,543,683 | 11,458,889 |
U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 31,839,733 | 35,559,845 |
Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 58,570,650 | 63,556,504 |
Municipal Securities [Member] | ||
Investment securities available for sale | 28,192,818 | 40,133,901 |
Recurring Basis [Member] | ||
Investment securities available for sale | 118,603,201 | |
Total fair value | 139,250,250 | |
Recurring Basis [Member] | Level 1 [Member] | ||
Investment securities available for sale | 31,839,733 | |
Total fair value | 35,559,845 | |
Recurring Basis [Member] | Level 2 [Member] | ||
Investment securities available for sale | 80,219,785 | |
Total fair value | 92,231,516 | |
Recurring Basis [Member] | Level 3 [Member] | ||
Investment securities available for sale | 6,543,683 | |
Total fair value | 11,458,889 | |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 31,839,733 | 35,559,845 |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | Level 1 [Member] | ||
Investment securities available for sale | 31,839,733 | 35,559,845 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 58,570,650 | 63,556,504 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | Level 2 [Member] | ||
Investment securities available for sale | 58,570,650 | 63,556,504 |
Recurring Basis [Member] | Municipal Securities [Member] | ||
Investment securities available for sale | 28,192,818 | 40,133,901 |
Recurring Basis [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
Investment securities available for sale | 21,649,135 | 28,675,012 |
Recurring Basis [Member] | Municipal Securities [Member] | Level 3 [Member] | ||
Investment securities available for sale | $ 6,543,683 | $ 11,458,889 |
Disclosure Regarding Fair Val_4
Disclosure Regarding Fair Value of Financial Statements (Details 1) - Level 3 [Member] - Municipal Securities [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Beginning Balance | $ 7,096,356 | $ 12,488,995 | $ 11,458,889 | $ 13,977,857 |
Total realized/unrealized gains (losses) | ||||
Included in other comprehensive income | 52,254 | 13,852 | 119,721 | 254,940 |
Purchases, issuances and settlements, net of maturities | (604,927) | (593,719) | (5,034,927) | (2,323,719) |
Ending balance | $ 6,543,683 | $ 11,909,128 | $ 6,543,683 | $ 11,909,128 |
Disclosure Regarding Fair Val_5
Disclosure Regarding Fair Value of Financial Statements (Details 2) - Nonrecurring Basis [Member] - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired loans | $ 2,229,800 | $ 1,735,051 |
Other real estate owned | 435,479 | |
Loans held for sale | 2,861,227 | 2,093,723 |
Total | 5,091,027 | 4,264,253 |
Level 2 [Member] | ||
Loans held for sale | 2,861,227 | 2,093,723 |
Total | 2,861,227 | 2,093,723 |
Level 3 [Member] | ||
Impaired loans | 2,229,800 | 1,735,051 |
Other real estate owned | 435,479 | |
Total | $ 2,229,800 | $ 2,170,530 |
Disclosure Regarding Fair Val_6
Disclosure Regarding Fair Value of Financial Statements (Details 3) - Discount Rate [Member] - Number | Sep. 30, 2018 | Sep. 30, 2017 |
Collateral Discounts [Member] | Lower Range [Member] | ||
Impaired loans | 0.10 | 0.10 |
Other real estate owned | 0.10 | .10 |
Collateral Discounts [Member] | Maximum [Member] | ||
Impaired loans | 0.20 | .20 |
Other real estate owned | 0.20 | .20 |
Appraisals and/or Sales [Member] | Lower Range [Member] | ||
Impaired loans | 0.10 | .10 |
Other real estate owned | 0.10 | .10 |
Appraisals and/or Sales [Member] | Maximum [Member] | ||
Impaired loans | 0.20 | .20 |
Other real estate owned | 0.20 | .20 |
Disclosure Regarding Fair Val_7
Disclosure Regarding Fair Value of Financial Statements (Details 4) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Investment securities available for sale | $ 118,603,201 | $ 139,250,250 |
Level 1 [Member] | ||
Financial Assets: | ||
Cash and due from banks | 8,187,758 | 8,486,025 |
Interest-bearing deposits at the Federal Reserve | 21,573,263 | 24,034,194 |
Investment securities available for sale | 31,839,733 | 35,559,845 |
Level 2 [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 80,219,785 | 92,231,516 |
Mortgage loans to be sold | 2,861,227 | 2,093,723 |
Accrued interest receivable | 1,471,368 | 1,720,920 |
Financial Liabilities: | ||
Demand deposits | 339,719,194 | 360,967,884 |
Time deposits | 44,653,911 | 40,722,870 |
Accrued interest payable | 149,179 | 96,190 |
Level 3 [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 6,543,683 | 11,458,889 |
Loans, net | 264,323,028 | 265,277,204 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and due from banks | 8,187,758 | 8,486,025 |
Interest-bearing deposits at the Federal Reserve | 21,573,263 | 24,034,194 |
Investment securities available for sale | 118,603,201 | 139,250,250 |
Mortgage loans to be sold | 2,861,227 | 2,093,723 |
Loans, net | 270,521,873 | 266,305,242 |
Accrued interest receivable | 1,471,368 | 1,720,920 |
Financial Liabilities: | ||
Demand deposits | 339,719,194 | 360,967,884 |
Time deposits | 43,322,064 | 41,920,416 |
Accrued interest payable | 149,179 | 96,190 |
Estimated Fair Value [Member] | ||
Financial Assets: | ||
Cash and due from banks | 8,187,758 | 8,486,025 |
Interest-bearing deposits at the Federal Reserve | 21,573,263 | 24,034,194 |
Investment securities available for sale | 118,603,201 | 139,250,250 |
Mortgage loans to be sold | 2,861,227 | 2,093,723 |
Loans, net | 264,323,028 | 265,277,204 |
Accrued interest receivable | 1,471,368 | 1,720,920 |
Financial Liabilities: | ||
Demand deposits | 339,719,194 | 360,967,884 |
Time deposits | 44,653,911 | 40,722,870 |
Accrued interest payable | $ 149,179 | $ 96,190 |
Income Per Common Share (Detail
Income Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,778,153 | $ 1,440,653 | $ 5,116,740 | $ 4,053,126 |
Weighted average shares outstanding | 5,506,649 | 5,475,504 | 5,496,346 | 5,459,006 |
Effect of dilutive shares | 82,900 | 112,906 | 83,643 | 109,793 |
Weighted average shares outstanding - diluted | 5,589,549 | 5,588,410 | 5,579,989 | 5,568,799 |
Earnings per share - basic | $ 0.32 | $ 0.26 | $ 0.93 | $ 0.74 |
Earnings per share - diluted | $ 0.32 | $ 0.26 | $ 0.92 | $ 0.73 |