Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 15, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | BANK OF SOUTH CAROLINA CORP | |
Entity Central Index Key | 0001007273 | |
Document Type | 10-Q | |
Entity File Number | 0-27702 | |
Entity State Incorporation | SC | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,525,278 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 9,843,665 | $ 6,325,457 |
Interest-bearing deposits at the Federal Reserve | 35,252,826 | 25,506,784 |
Investment securities available for sale | 101,430,963 | 119,668,874 |
Mortgage loans to be sold | 2,874,982 | 1,199,438 |
Loans | 283,847,630 | 274,664,267 |
Less: Allowance for loan losses | (4,130,548) | (4,214,331) |
Net loans | 279,717,082 | 270,449,936 |
Premises, equipment and leasehold improvements, net | 2,689,314 | 2,335,207 |
Right of use asset | 7,218,644 | |
Accrued interest receivable | 1,565,145 | 1,561,915 |
Other assets | 1,781,824 | 2,087,587 |
Total assets | 442,374,445 | 429,135,198 |
Deposits: | ||
Non-interest bearing demand | 138,577,128 | 130,940,138 |
Interest bearing demand | 102,905,495 | 94,207,731 |
Money market accounts | 85,539,479 | 87,300,433 |
Time deposits over $250,000 | 8,176,688 | 15,909,991 |
Other time deposits | 17,841,257 | 18,558,734 |
Other savings deposits | 30,769,858 | 35,461,361 |
Total deposits | 383,809,905 | 382,378,388 |
Accrued interest payable and other liabilities | 1,951,281 | 1,294,249 |
Lease liability | 7,218,644 | |
Total liabilities | 392,979,830 | 383,672,637 |
Shareholders' equity | ||
Common stock - no par 12,000,000 shares authorized; Issued 5,794,313 shares at June 30, 2019 and 5,777,474 shares at December 31, 2018. Shares outstanding 5,525,278 and 5,510,917 at June 30, 2019 and December 31, 2018, respectively. | 0 | 0 |
Additional paid in capital | 47,041,739 | 46,857,734 |
Retained earnings | 4,413,687 | 2,650,296 |
Treasury stock: 269,035 shares at June 30, 2019 and 266,557 at December 31, 2018 | (2,314,107) | (2,268,264) |
Accumulated other comprehensive income (loss), net of income taxes | 253,296 | (1,777,205) |
Total shareholders' equity | 49,394,615 | 45,462,561 |
Total liabilities and shareholders' equity | $ 442,374,445 | $ 429,135,198 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 5,794,313 | 5,777,474 |
Common stock, outstanding | 5,525,278 | 5,510,917 |
Treasury stock, shares | 269,035 | 266,557 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and fee income | ||||
Loans, including fees | $ 4,090,423 | $ 3,704,752 | $ 8,042,142 | $ 7,263,738 |
Taxable securities | 423,211 | 470,411 | 886,665 | 940,914 |
Tax-exempt securities | 137,115 | 175,674 | 298,836 | 403,741 |
Other | 162,596 | 73,030 | 278,535 | 135,483 |
Total interest and fee income | 4,813,345 | 4,423,867 | 9,506,178 | 8,743,876 |
Interest expense | ||||
Deposits | 245,226 | 139,697 | 488,984 | 249,527 |
Total interest expense | 245,226 | 139,697 | 488,984 | 249,527 |
Net interest income | 4,568,119 | 4,284,170 | 9,017,194 | 8,494,349 |
Provision for loan losses | 135,000 | 75,000 | 145,000 | 130,000 |
Net interest income after provision for loan losses | 4,433,119 | 4,209,170 | 8,872,194 | 8,364,349 |
Other income | ||||
Service charges and fees | 300,553 | 296,372 | 580,486 | 591,663 |
Mortgage banking income | 256,379 | 250,554 | 380,041 | 390,469 |
Gain on sales of securities | 28,900 | 387 | 28,900 | 4,735 |
Other non-interest income | 6,907 | 7,783 | 12,095 | 16,174 |
Total other income | 592,739 | 555,096 | 1,001,522 | 1,003,041 |
Other expense | ||||
Salaries and employee benefits | 1,664,436 | 1,576,452 | 3,320,960 | 3,149,172 |
Net occupancy expense | 427,247 | 422,059 | 814,379 | 805,391 |
Other operating expenses | 543,099 | 628,867 | 1,158,804 | 1,314,649 |
Net other real estate owned expenses | 24,137 | 24,137 | ||
Total other expense | 2,634,782 | 2,651,515 | 5,294,143 | 5,293,349 |
Income before income tax expense | 2,391,076 | 2,112,751 | 4,579,573 | 4,074,041 |
Income tax expense | 550,229 | 386,394 | 1,049,462 | 735,454 |
Net income | $ 1,840,847 | $ 1,726,357 | $ 3,530,111 | $ 3,338,587 |
Weighted average shares outstanding | ||||
Basic (in shares) | 5,517,236 | 5,492,896 | 5,515,832 | 5,339,187 |
Diluted (in shares) | 5,587,985 | 5,586,585 | 5,586,813 | 5,433,360 |
Basic income per common share (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.64 | $ 0.63 |
Diluted income per common share (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.63 | $ 0.61 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,840,847 | $ 1,726,357 | $ 3,530,111 | $ 3,338,587 |
Other comprehensive income | ||||
Unrealized gain (loss) on securities arising during the period | 1,343,539 | (477,253) | 2,599,154 | (1,814,824) |
Reclassification adjustment for securities gains realized in net income | (28,900) | (387) | (28,900) | (4,735) |
Other comprehensive income (loss) before tax | 1,314,639 | (477,640) | 2,570,254 | (1,819,559) |
Income tax effect related to items of other comprehensive income before tax | (276,074) | 88,186 | (539,753) | 382,107 |
Other comprehensive income (loss) after tax | 1,038,565 | (389,454) | 2,030,501 | (1,437,452) |
Total comprehensive income | $ 2,879,412 | $ 1,336,903 | $ 5,560,612 | $ 1,901,135 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2017 | $ 37,236,566 | $ 8,847,164 | $ (2,247,415) | $ (1,071,680) | $ 42,764,635 | |
Beginning Balance (in shares) at Dec. 31, 2017 | 4,989,279 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,612,230 | 1,612,230 | ||||
Other comprehensive income (loss) | (1,047,998) | (1,047,998) | ||||
Exercise of stock options | 18,768 | 18,768 | ||||
Exercise of stock options (in shares) | 1,600 | |||||
Stock-based compensation expense | 18,882 | 18,882 | ||||
Cash dividends | (749,668) | (749,668) | ||||
Common stock dividend, 10% | 9,334,342 | (9,334,342) | ||||
Common stock dividend, 10% (in shares) | 499,088 | |||||
Ending balance at Mar. 31, 2018 | 46,608,558 | 375,384 | (2,247,415) | (2,119,678) | 42,616,849 | |
Ending Balance (in shares) at Mar. 31, 2018 | 5,489,967 | |||||
Beginning Balance at Dec. 31, 2017 | 37,236,566 | 8,847,164 | (2,247,415) | (1,071,680) | 42,764,635 | |
Beginning Balance (in shares) at Dec. 31, 2017 | 4,989,279 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,338,587 | |||||
Other comprehensive income (loss) | (1,437,452) | |||||
Ending balance at Jun. 30, 2018 | 46,731,967 | 1,270,163 | (2,268,264) | (2,509,132) | 43,224,734 | |
Ending Balance (in shares) at Jun. 30, 2018 | 5,500,616 | |||||
Beginning Balance at Mar. 31, 2018 | 46,608,558 | 375,384 | (2,247,415) | (2,119,678) | 42,616,849 | |
Beginning Balance (in shares) at Mar. 31, 2018 | 5,489,967 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,726,357 | 1,726,357 | ||||
Other comprehensive income (loss) | (389,454) | (389,454) | ||||
Exercise of stock options | 104,528 | (20,849) | 83,679 | |||
Exercise of stock options (in shares) | 10,649 | |||||
Stock-based compensation expense | 18,881 | 18,881 | ||||
Cash dividends | (831,578) | (831,578) | ||||
Ending balance at Jun. 30, 2018 | 46,731,967 | 1,270,163 | (2,268,264) | (2,509,132) | 43,224,734 | |
Ending Balance (in shares) at Jun. 30, 2018 | 5,500,616 | |||||
Beginning Balance at Dec. 31, 2018 | 46,857,734 | 2,650,296 | (2,268,264) | (1,777,205) | $ 45,462,561 | |
Beginning Balance (in shares) at Dec. 31, 2018 | 5,510,917 | 5,510,917 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,689,264 | $ 1,689,264 | ||||
Other comprehensive income (loss) | 991,936 | 991,936 | ||||
Exercise of stock options | 51,265 | 51,265 | ||||
Exercise of stock options (in shares) | 5,808 | |||||
Stock-based compensation expense | 18,881 | 18,881 | ||||
Cash dividends | (882,676) | (882,676) | ||||
Ending balance at Mar. 31, 2019 | 46,927,880 | 3,456,884 | (2,268,264) | (785,269) | 47,331,231 | |
Ending Balance (in shares) at Mar. 31, 2019 | 5,516,725 | |||||
Beginning Balance at Dec. 31, 2018 | 46,857,734 | 2,650,296 | (2,268,264) | (1,777,205) | $ 45,462,561 | |
Beginning Balance (in shares) at Dec. 31, 2018 | 5,510,917 | 5,510,917 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 3,530,111 | |||||
Other comprehensive income (loss) | 2,030,501 | |||||
Ending balance at Jun. 30, 2019 | 47,041,739 | 4,413,687 | (2,314,107) | 253,296 | $ 49,394,615 | |
Ending Balance (in shares) at Jun. 30, 2019 | 5,525,278 | 5,525,278 | ||||
Beginning Balance at Mar. 31, 2019 | 46,927,880 | 3,456,884 | (2,268,264) | (785,269) | $ 47,331,231 | |
Beginning Balance (in shares) at Mar. 31, 2019 | 5,516,725 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,840,847 | 1,840,847 | ||||
Other comprehensive income (loss) | 1,038,565 | 1,038,565 | ||||
Exercise of stock options | 94,977 | (45,843) | 49,134 | |||
Exercise of stock options (in shares) | 8,553 | |||||
Stock-based compensation expense | 18,882 | 18,882 | ||||
Cash dividends | (884,044) | (884,044) | ||||
Ending balance at Jun. 30, 2019 | $ 47,041,739 | $ 4,413,687 | $ (2,314,107) | $ 253,296 | $ 49,394,615 | |
Ending Balance (in shares) at Jun. 30, 2019 | 5,525,278 | 5,525,278 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (per share) | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.14 |
Common stock dividend (percent) | 10.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 3,530,111 | $ 3,338,587 |
Adjustments to reconcile net income net cash provided by operating activities: | ||
Depreciation expense | 109,132 | 94,347 |
Gain on sale of investment securities | (28,900) | (4,735) |
Valuation and other adjustments to other real estate owned | 23,637 | |
Provision for loan losses | 145,000 | 130,000 |
Stock-based compensation expense | 37,763 | 37,763 |
Deferred income taxes | (21,966) | (289,099) |
Net amortization of unearned discounts on investment securities available for sale | 140,730 | 152,517 |
Origination of mortgage loans held for sale | (27,140,026) | (29,065,349) |
Proceeds from sale of mortgage loans held for sale | 25,464,482 | 27,507,922 |
(Increase) decrease in accrued interest receivable and other assets | (215,254) | 152,106 |
Increase in accrued interest payable and other liabilities | 599,626 | 208,777 |
Net cash provided by operating activities | 2,620,698 | 2,286,473 |
Cash flows from investing activities: | ||
Proceeds from calls and maturities of investment securities available for sale | 5,743,835 | 5,995,000 |
Proceeds from sale of investment securities available for sale | 14,952,500 | 21,434,634 |
Purchase of investment securities available for sale | (9,978,050) | |
Net increase in loans | (9,412,146) | (7,921,831) |
Purchase of premises, equipment, and leasehold improvements, net | (463,239) | (128,838) |
Net cash provided by investing activities | 10,820,950 | 9,400,915 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposit accounts | 1,431,517 | (20,548,691) |
Dividends paid | (1,709,314) | (1,497,024) |
Stock options exercised | 100,399 | 102,447 |
Net cash used in financing activities | (177,398) | (21,943,268) |
Net increase (decrease) in cash and cash equivalents | 13,264,250 | (10,255,880) |
Cash and cash equivalents at the beginning of the period | 31,832,241 | 32,520,219 |
Cash and cash equivalents at the end of the period | 45,096,491 | 22,264,339 |
Cash paid during the period for: | ||
Interest | 589,058 | 210,971 |
Income taxes | 627,642 | 636,760 |
Supplemental disclosures for non-cash investing and financing activity: | ||
Change in unrealized gain on securities available for sale, net of income taxes | (2,030,501) | 1,437,452 |
Change in dividends payable | 57,406 | $ 84,222 |
Right of use assets obtained in exchange for lease obligations | 7,334,079 | |
Change in right of use assets and lease liabilities | $ (115,435) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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, or GAAP, for the interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 4, 2019. 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 consolidated financial statements are prepared in conformity with GAAP, which require 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. 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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Codification Improvements to Topic 842 – Leases , Leases (Topic 842): Targeted Improvements Leases (Topic 842): Narrow-Scope Improvements for Lessors, In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Measurement of Credit Losses on Financial Instruments. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs Premium Amortization of Purchased Callable Debt Securities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles and Goodwill and Other-Internal Use Software (Subtopic 350-40):Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract), In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes In October 2018, the FASB issued ASU 2018-07, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. The amendments related to credit losses will be effective for the Company for the reporting period beginning after December 15, 2019. The amendments related to hedging became effective January 1, 2019. The amendments related to recognition and measurement of financial instruments will be effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2: Investment Securities The amortized cost and fair value of investment securities available for sale are summarized as follows: June 30, 2019 Amortized Gross Gross Estimated U.S. Treasury Notes $ 28,054,029 $ 101,804 $ (9,430 ) $ 28,146,403 Government-Sponsored Enterprises 50,582,908 248,635 (114,198 ) 50,717,345 Municipal Securities 22,473,399 166,156 (72,340 ) 22,567,215 Total $ 101,110,336 $ 516,595 $ (195,968 ) $ 101,430,963 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 32,965,693 $ — $ (609,059 ) $ 32,356,634 Government-Sponsored Enterprises 60,684,878 — (1,315,598 ) 59,369,280 Municipal Securities 28,267,930 112,971 (437,941 ) 27,942,960 Total $ 121,918,501 $ 112,971 $ (2,362,598 ) $ 119,668,874 The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2019 and December 31, 2018, by contractual maturity are in the following table. June 30, 2019 December 31, 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 3,314,449 $ 3,318,732 $ 4,246,325 $ 4,249,570 Due in one year to five years 82,244,256 82,503,885 99,753,174 97,915,185 Due in five years to ten years 15,551,630 15,608,346 17,504,456 17,128,425 Due in ten years and over — — 414,546 375,694 Total $ 101,110,335 $ 101,430,963 $ 121,918,501 $ 119,668,874 Securities pledged to secure deposits at both June 30, 2019 and December 31, 2018, had a fair value of $37.7 million and $41.5 million, respectively. The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2019 and December 31, 2018. We believe that all unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. Less Than 12 Months 12 Months or Longer Total June 30, 2019 Available for sale # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes 1 $ 5,048,240 $ (702 ) 2 $ 8,025,118 $ (8,728 ) 3 $ 13,073,358 $ (9,430 ) Government-Sponsored Enterprises — — — 3 10,397,565 (114,198 ) 3 10,397,565 (114,198 ) Municipal Securities — — — 25 9,267,063 (72,340 ) 25 9,267,063 (72,340 ) Total 1 $ 5,048,240 $ (702 ) 30 $ 27,689,746 $ (195,266 ) 31 $ 32,737,986 $ (195,968 ) Less Than 12 Months 12 Months or Longer Total December 31, 2018 Available for sale # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes — $ — $ — 7 $ 32,356,634 $ (609,059 ) 7 $ 32,356,634 $ (609,059 ) Government-Sponsored Enterprises 2 9,967,000 (14,302 ) 11 49,402,280 (1,301,296 ) 13 59,369,280 (1,315,598 ) Municipal Securities 2 1,362,286 (7,547 ) 31 11,840,912 (430,394 ) 33 13,203,198 (437,941 ) Total 4 $ 11,329,286 $ (21,849 ) 49 $ 93,599,826 $ (2,340,749 ) 53 $ 104,929,112 $ (2,362,598 ) The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. Three Months Ended June 30, 2019 2018 Gross proceeds $ 14,952,500 $ 11,970,378 Gross realized gains 59,512 25,490 Gross realized losses $ (30,612 ) $ (25,103 ) Six Months Ended June 30, 2019 2018 Gross proceeds $ 14,952,500 $ 21,434,634 Gross realized gains 59,512 104,634 Gross realized losses $ (30,612 ) $ (99,899 ) For the three months ended June 30, 2019 and 2018, the tax provision related to these gains was $6,069 and $81, respectively. For the six months ended June 30, 2019 and 2018, the tax provision related to these gains was $6,069 and $994, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
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 $165,854 at June 30, 2019 and $156,309 at December 31, 2018) are as follows: June 30, December 31, 2018 Commercial $ 56,270,330 $ 54,829,078 Commercial real estate: Construction 11,204,997 7,304,300 Other 148,569,431 143,703,401 Consumer: Real estate 62,167,172 63,787,411 Other 5,635,700 5,040,077 283,847,630 274,664,267 Allowance for loan losses (4,130,548 ) (4,214,331 ) Loans, net $ 279,717,082 $ 270,449,936 We had $94.0 million and $101.9 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2019 and at December 31, 2018, 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 at June 30, 2019 and December 31, 2018. “Pass” includes loans internally graded as excellent, good and satisfactory. June 30, 2019 Commercial Commercial Commercial Consumer Consumer Total Pass $ 51,732,759 $ 11,204,997 $ 141,999,065 $ 58,154,814 $ 5,147,378 $ 268,239,013 Watch 2,533,865 — 4,557,264 2,615,352 394,714 10,101,195 OAEM 322,858 — 660,784 517,254 77,780 1,578,676 Sub-standard 1,680,848 — 1,352,318 879,752 15,828 3,928,746 Doubtful — — — — — — Loss — — — — — — Total $ 56,270,330 $ 11,204,997 $ 148,569,431 $ 62,167,172 $ 5,635,700 $ 283,847,630 December 31, 2018 Commercial Commercial Commercial Consumer Consumer Total Pass $ 50,663,356 $ 7,304,300 $ 136,804,420 $ 60,480,317 $ 4,726,494 $ 259,978,887 Watch 1,973,675 — 4,938,711 2,077,341 226,117 9,215,844 OAEM 157,300 — 590,294 350,000 — 1,097,594 Sub-standard 2,034,747 — 1,369,976 879,753 87,466 4,371,942 Doubtful — — — — — — Loss — — — — — — Total $ 54,829,078 $ 7,304,300 $ 143,703,401 $ 63,787,411 $ 5,040,077 $ 274,664,267 The following tables include an aging analysis of the recorded investment in loans segregated by class. June 30, 2019 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 49,948 $ 194,058 $ — $ 244,006 $ 56,026,324 $ 56,270,330 $ — Commercial Real Estate - Construction — — — — 11,204,997 11,204,997 — Commercial Real Estate - Other 409,860 273,190 571,292 1,254,342 147,315,089 148,569,431 — Consumer Real Estate 271,691 — — 271,691 61,895,481 62,167,172 — Consumer Other 25,603 — 678 26,281 5,609,419 5,635,700 — Total $ 757,102 $ 467,248 $ 571,970 $ 1,796,320 $ 282,051,310 $ 283,847,630 $ — December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable Recorded Commercial $ 266,567 $ 17,492 $ 229,395 $ 513,454 $ 54,315,624 $ 54,829,078 $ — Commercial Real Estate - Construction — — — — 7,304,300 7,304,300 — Commercial Real Estate - Other 35,000 215,049 571,292 821,341 142,882,060 143,703,401 — Consumer Real Estate — — — — 63,787,411 63,787,411 — Consumer Other 24,621 — — 24,621 5,015,456 5,040,077 — Total $ 326,188 $ 232,541 $ 800,687 $ 1,359,416 $ 273,304,851 $ 274,664,267 $ — There were no loans as of June 30, 2019 and December 31, 2018 over 90 days past due and still accruing. The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual June 30, 2019 December 31, 2018 Commercial $ 13,210 $ 251,219 Commercial Real Estate - Construction — — Commercial Real Estate - Other 571,292 571,292 Consumer Real Estate — — Consumer Other 678 1,023 Total $ 585,180 $ 823,534 The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by loan category for the three and six months ended June 30, 2019 and 2018. 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 June 30, 2019 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses: Beginning Balance $ 1,528,577 $ 81,047 $ 1,318,918 $ 377,641 $ 683,239 $ 3,989,422 Charge-offs — — — — (2,009 ) (2,009 ) Recoveries 5,500 — — — 2,635 8,135 Provisions 5,575 16,940 13,885 150,888 (52,288 ) 135,000 Ending Balance $ 1,539,652 $ 97,987 $ 1,332,803 $ 528,529 $ 631,577 $ 4,130,548 Six Months Ended June 30, 2019 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses: Beginning Balance $ 1,665,413 $ 63,876 $ 1,292,346 $ 386,585 $ 806,111 $ 4,214,331 Charge-offs (229,395 ) — — — (8,342 ) (237,737 ) Recoveries 6,000 — — — 2,954 8,954 Provisions 97,634 34,111 40,457 141,944 (169,146 ) 145,000 Ending Balance $ 1,539,652 $ 97,987 $ 1,332,803 $ 528,529 $ 631,577 $ 4,130,548 Three Months Ended June 30, 2018 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses: Beginning Balance $ 1,326,246 $ 11,136 $ 1,041,088 $ 567,075 $ 884,975 $ 3,830,520 Charge-offs — — — — — — Recoveries 1,000 — 55,252 45,412 280 101,944 Provisions 16,514 17,955 (124,302 ) (23,436 ) 188,269 75,000 Ending Balance $ 1,343,760 $ 29,091 $ 972,038 $ 589,051 $ 1,073,524 $ 4,007,464 Six Months Ended June 30, 2018 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other 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 ) — — — (71,843 ) (103,093 ) Recoveries 2,500 — 56,827 45,412 420 105,159 Provisions (31,078 ) 5,453 (634,544 ) (253,279 ) 1,043,448 130,000 Ending Balance $ 1,343,760 $ 29,091 $ 972,038 $ 589,051 $ 1,073,524 $ 4,007,464 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated. June 30, 2019 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 870,073 $ — $ 31,082 $ — $ 7,510 $ 908,665 Collectively evaluated for impairment 669,579 97,987 1,301,721 528,529 624,067 3,221,883 Total Allowance for Loan Losses $ 1,539,652 $ 97,987 $ 1,332,803 $ 528,529 $ 631,577 $ 4,130,548 Loans Receivable Individually evaluated for impairment $ 1,680,847 $ — $ 1,360,884 $ 879,753 $ 15,828 $ 3,937,312 Collectively evaluated for impairment 54,589,483 11,204,997 147,208,547 61,287,419 5,619,872 279,910,318 Total Loans Receivable $ 56,270,330 $ 11,204,997 $ 148,569,431 $ 62,167,172 $ 5,635,700 $ 283,847,630 December 31, 2018 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,132,805 $ — $ 37,416 $ — $ 21,324 $ 1,191,545 Collectively evaluated for impairment 532,608 63,876 1,254,930 386,585 784,787 3,022,786 Total Allowance for Loan Losses $ 1,665,413 $ 63,876 $ 1,292,346 $ 386,585 $ 806,111 $ 4,214,331 Loans Receivable Individually evaluated for impairment $ 1,996,579 $ — $ 1,280,890 $ 879,753 $ 21,324 $ 4,178,546 Collectively evaluated for impairment 52,832,499 7,304,300 142,422,511 62,907,658 5,018,753 270,485,721 Total Loans Receivable $ 54,829,078 $ 7,304,300 $ 143,703,401 $ 63,787,411 $ 5,040,077 $ 274,664,267 Impaired Loans As of June 30, 2019 December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 111,591 $ 111,591 $ — $ 115,983 $ 115,983 $ — Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 860,975 860,975 — 974,249 974,249 — Consumer Real Estate 879,753 879,753 — 879,753 879,753 — Consumer Other — — — — — — Total 1,852,319 1,852,319 — 1,969,985 1,969,985 — With an allowance recorded: Commercial 1,569,256 1,569,256 870,073 1,880,596 1,880,596 1,132,805 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 499,909 400,108 31,082 406,442 306,641 37,416 Consumer Real Estate — — — — — — Consumer Other 15,828 15,828 7,510 21,324 21,324 21,324 Total 2,084,993 1,985,192 908,665 2,308,362 2,208,561 1,191,545 Commercial 1,680,847 1,680,847 870,073 1,996,579 1,996,579 1,132,805 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 1,360,884 1,261,083 31,082 1,380,691 1,280,890 37,416 Consumer Real Estate 879,753 879,753 — 879,753 879,753 — Consumer Other 15,828 15,828 7,510 21,324 21,324 21,324 Total $ 3,937,312 $ 3,837,511 $ 908,665 $ 4,278,347 $ 4,178,546 $ 1,191,545 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. Three Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 117,741 $ 2,071 $ 137,684 $ 2,227 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 863,351 10,354 916,094 10,518 Consumer Real Estate 879,753 14,257 249,754 3,548 Consumer Other — — — — 1,960,646 26,682 1,303,532 16,293 With an allowance recorded: Commercial 1,582,324 25,869 1,563,849 19,438 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 501,279 2,735 517,936 1,840 Consumer Real Estate — — — — Consumer Other 17,108 224 39,396 483 2,100,711 28,828 2,121,181 21,761 Total Commercial 1,700,065 27,940 1,701,533 21,665 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,364,630 13,089 1,434,030 12,358 Consumer Real Estate 879,753 14,257 249,754 3,548 Consumer Other 17,108 224 39,396 483 $ 4,061,357 $ 55,510 $ 3,424,713 $ 38,054 Six Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 123,509 $ 4,334 $ 141,909 $ 4,430 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 967,076 20,700 917,140 14,233 Consumer Real Estate 879,753 28,357 249,754 7,007 Consumer Other — — — — 1,970,338 53,391 1,308,803 25,670 With an allowance recorded: Commercial 1,597,013 51,983 1,584,430 48,660 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 403,001 5,498 523,141 5,507 Consumer Real Estate — — — — Consumer Other 18,279 478 41,823 1,131 2,018,293 57,959 2,149,394 55,298 Total Commercial 1,720,522 56,317 1,726,339 53,090 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,370,077 26,198 1,440,281 19,740 Consumer Real Estate 879,753 28,357 249,754 7,007 Consumer Other 18,279 478 41,823 1,131 $ 3,988,631 $ 111,350 $ 3,458,197 $ 80,968 |
Disclosure Regarding Fair Value
Disclosure Regarding Fair Value of Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Disclosure Regarding Fair Value of Financial Statements | Note 4: Disclosure Regarding Fair Value of Financial Statements Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs, which are developed based on market data we have obtained from independent sources, are ones that market participants would use in pricing an asset or liability. Unobservable inputs, which are developed based on the best information available in the circumstances, reflect our estimate of assumptions that market participants would use in pricing an asset or liability. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. ● Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. ● Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. Fair value estimates are made at a specific point of time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale our entire holdings of a particular financial instrument. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based on judgements regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore cannot be determined with precision. Changes in any of these assumptions used in calculating fair value also would affect significantly the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The following 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 June 30, 2019 and December 31, 2018. Assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are as follows: Balance as of June 30, 2019 Quoted Market Price in active markets Significant Other Observable Inputs Significant Unobservable Inputs Total U.S. Treasury Notes $ 28,146,403 $ — $ — $ 28,146,403 Government-Sponsored Enterprises — 50,717,345 — 50,717,345 Municipal Securities — 18,032,698 4,534,517 22,567,215 Total $ 28,146,403 $ 68,750,043 $ 4,534,517 $ 101,430,963 Balance as of December 31, 2018 Quoted Market Price in active markets (Level 1) Significant (Level 2) Significant Unobservable Inputs Total U.S. Treasury Notes $ 32,356,634 $ — $ — $ 32,356,634 Government-Sponsored Enterprises — 59,369,280 — 59,369,280 Municipal Securities — 21,701,005 6,241,955 27,942,960 Total $ 32,356,634 $ 81,070,285 $ 6,241,955 $ 119,668,874 There were no liabilities recorded at fair value on a recurring basis as of June 30, 2019 or December 31, 2018. 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 and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Beginning balance $ 5,738,618 $ 7,483,696 $ 6,241,955 $ 11,458,889 Total gains or (losses) (realized/unrealized) Included in net income — — — — Included in other comprehensive income (loss) 44,734 2,660 101,397 67,467 Purchases, issuances, and settlements net of maturities (1,248,835 ) (390,000 ) (1,808,835 ) (4,430,000 ) Transfers in and/or out of level 3 — — — — Ending balance $ 4,534,517 $ 7,096,356 $ 4,534,517 $ 7,096,356 There were no transfers between fair value levels during the six months ended June 30, 2019 or 2018. 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. Typically, we review the most recent appraisal and if it is over 12 to 18 months old we may request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, we may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. Specifically as an example, in situations where the collateral on a nonperforming commercial real estate loan is out of our primary market area, we would typically order an independent appraisal immediately, at the earlier of the date the loan becomes nonperforming or immediately following the determination that the loan is impaired. However, as a second example, on a nonperforming commercial real estate loan where we are familiar with the property and surrounding areas and where the original appraisal value far exceeds the recorded investment in the loan, we may perform an internal analysis whereby the previous appraisal value would be reviewed considering recent current conditions, and known recent sales or listings of similar properties in the area, and any other relevant economic trends. This analysis may result in the call for a new appraisal. These valuations are reviewed and updated on a quarterly basis. In accordance with ASC 820, Fair Value Measurement 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 table presents information about certain assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018: June 30, 2019 Quoted Market Price in active markets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total Impaired loans $ — $ — $ 2,209,555 $ 2,209,555 Other real estate owned — — — — Loans held for sale — 2,874,982 — 2,874,982 Total $ — $ 2,874,982 $ 2,209,555 $ 5,084,537 December 31, 2018 Quoted Market Price in active markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 2,223,028 $ 2,223,028 Other real estate owned — — — — Loans held for sale — 1,199,438 — 1,199,438 Total $ — $ 1,199,438 $ 2,223,028 $ 3,422,466 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2019 or December 31, 2018. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2019 and December 31, 2018: 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 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 The fair value of the Company’s loan portfolio includes 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. Additionally, in accordance with ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities 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 based on the fair value of the underlying collateral. Impaired loans measured using discounted future cash flows are not deemed to be measured at fair value. d. Deposits The estimated fair value of deposits with no stated maturity is equal to the carrying amount. The fair value of time deposits is estimated by discounting contractual cash flows, using interest rates currently being offered on the deposit products. The fair value estimates for deposits do not include the benefit that results from the low cost funding provided by the deposit liabilities as compared to the cost of alternative forms of funding (deposit base intangibles). e. Accrued interest receivable and payable Since these financial instruments will typically be received or paid within six 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 June 30, 2019 and December 31, 2018. Fair Value Measurements at June 30, 2019 Carrying Estimated Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,843,665 $ 9,843,665 $ 9,843,665 $ — $ — Interest-bearing deposits at the Federal Reserve 35,252,826 35,252,826 35,252,826 — — Investment securities available for sale 101,430,963 101,430,963 28,146,403 68,750,043 4,534,517 Mortgage loans to be sold 2,874,982 2,874,982 — 2,874,982 — Loans, net 279,717,082 275,600,697 — — 275,600,697 Accrued interest receivable 1,565,145 1,565,145 — 1,565,145 — Financial Liabilities: Demand deposits 357,791,960 357,791,960 — 357,791,960 — Time deposits 26,017,945 29,473,494 — 29,473,494 — Accrued interest payable 63,802 63,802 — 63,802 — Fair Value Measurements at December 31, 2018 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 6,325,457 $ 6,325,457 $ 6,325,457 — $ — Interest-bearing deposits at the Federal Reserve 25,506,784 25,506,784 25,506,784 — — Investment securities available for sale 119,668,874 119,668,874 32,356,634 81,070,285 6,241,955 Mortgage loans to be sold 1,199,438 1,199,438 — 1,199,438 — Loans, net 270,449,936 263,780,751 — — 263,780,751 Accrued interest receivable 1,561,915 1,561,915 — 1,561,915 — Financial Liabilities: Demand deposits 347,909,663 347,909,663 — 347,909,663 — Time deposits 34,468,725 38,747,898 — 38,747,898 — Accrued interest payable 163,876 163,876 — 163,876 — |
Income Per Common Share
Income Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
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 payable 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 June 30: 2019 2018 Net income $ 1,840,847 $ 1,726,357 Weighted average shares outstanding 5,517,236 5,492,896 Effect of dilutive shares 70,749 93,689 Weighted average shares outstanding - diluted 5,587,985 5,586,585 Earnings per share - basic $ 0.33 $ 0.31 Earnings per share - diluted $ 0.33 $ 0.31 The following table is a summary of the reconciliation of average shares outstanding for the six months ended June 30: 2019 2018 Net income $ 3,530,111 $ 3,338,587 Weighted average shares outstanding 5,515,832 5,339,187 Effect of dilutive shares 70,981 94,173 Weighted average shares outstanding - diluted 5,586,813 5,433,360 Earnings per share - basic $ 0.64 $ 0.63 Earnings per share - diluted $ 0.63 $ 0.61 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, or GAAP, for the interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 4, 2019. 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 consolidated financial statements are prepared in conformity with GAAP, which require 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. |
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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Codification Improvements to Topic 842 – Leases , Leases (Topic 842): Targeted Improvements Leases (Topic 842): Narrow-Scope Improvements for Lessors, In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, Measurement of Credit Losses on Financial Instruments. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs Premium Amortization of Purchased Callable Debt Securities In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles and Goodwill and Other-Internal Use Software (Subtopic 350-40):Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract), In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes In October 2018, the FASB issued ASU 2018-07, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. The amendments related to credit losses will be effective for the Company for the reporting period beginning after December 15, 2019. The amendments related to hedging became effective January 1, 2019. The amendments related to recognition and measurement of financial instruments will be effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. 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) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost fair value of investment securities available for sale | The amortized cost and fair value of investment securities available for sale are summarized as follows: June 30, 2019 Amortized Gross Gross Estimated U.S. Treasury Notes $ 28,054,029 $ 101,804 $ (9,430 ) $ 28,146,403 Government-Sponsored Enterprises 50,582,908 248,635 (114,198 ) 50,717,345 Municipal Securities 22,473,399 166,156 (72,340 ) 22,567,215 Total $ 101,110,336 $ 516,595 $ (195,968 ) $ 101,430,963 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 32,965,693 $ — $ (609,059 ) $ 32,356,634 Government-Sponsored Enterprises 60,684,878 — (1,315,598 ) 59,369,280 Municipal Securities 28,267,930 112,971 (437,941 ) 27,942,960 Total $ 121,918,501 $ 112,971 $ (2,362,598 ) $ 119,668,874 |
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 June 30, 2019 and December 31, 2018, by contractual maturity are in the following table. June 30, 2019 December 31, 2018 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 3,314,449 $ 3,318,732 $ 4,246,325 $ 4,249,570 Due in one year to five years 82,244,256 82,503,885 99,753,174 97,915,185 Due in five years to ten years 15,551,630 15,608,346 17,504,456 17,128,425 Due in ten years and over — — 414,546 375,694 Total $ 101,110,335 $ 101,430,963 $ 121,918,501 $ 119,668,874 |
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, at June 30, 2019 and December 31, 2018. We believe that all unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. Less Than 12 Months 12 Months or Longer Total June 30, 2019 Available for sale # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes 1 $ 5,048,240 $ (702 ) 2 $ 8,025,118 $ (8,728 ) 3 $ 13,073,358 $ (9,430 ) Government-Sponsored Enterprises — — — 3 10,397,565 (114,198 ) 3 10,397,565 (114,198 ) Municipal Securities — — — 25 9,267,063 (72,340 ) 25 9,267,063 (72,340 ) Total 1 $ 5,048,240 $ (702 ) 30 $ 27,689,746 $ (195,266 ) 31 $ 32,737,986 $ (195,968 ) Less Than 12 Months 12 Months or Longer Total December 31, 2018 Available for sale # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes — $ — $ — 7 $ 32,356,634 $ (609,059 ) 7 $ 32,356,634 $ (609,059 ) Government-Sponsored Enterprises 2 9,967,000 (14,302 ) 11 49,402,280 (1,301,296 ) 13 59,369,280 (1,315,598 ) Municipal Securities 2 1,362,286 (7,547 ) 31 11,840,912 (430,394 ) 33 13,203,198 (437,941 ) Total 4 $ 11,329,286 $ (21,849 ) 49 $ 93,599,826 $ (2,340,749 ) 53 $ 104,929,112 $ (2,362,598 ) |
Schedule of proceeds from sales of securities available for sale and gross realized gains and losses | The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. Three Months Ended June 30, 2019 2018 Gross proceeds $ 14,952,500 $ 11,970,378 Gross realized gains 59,512 25,490 Gross realized losses $ (30,612 ) $ (25,103 ) Six Months Ended June 30, 2019 2018 Gross proceeds $ 14,952,500 $ 21,434,634 Gross realized gains 59,512 104,634 Gross realized losses $ (30,612 ) $ (99,899 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of major classifications of loans | Major classifications of loans (net of deferred loan fees of $165,854 at June 30, 2019 and $156,309 at December 31, 2018) are as follows: June 30, December 31, 2018 Commercial $ 56,270,330 $ 54,829,078 Commercial real estate: Construction 11,204,997 7,304,300 Other 148,569,431 143,703,401 Consumer: Real estate 62,167,172 63,787,411 Other 5,635,700 5,040,077 283,847,630 274,664,267 Allowance for loan losses (4,130,548 ) (4,214,331 ) Loans, net $ 279,717,082 $ 270,449,936 |
Schedule of credit risks by category and internally assigned grades | The following tables illustrate credit quality by class and internally assigned grades at June 30, 2019 and December 31, 2018. “Pass” includes loans internally graded as excellent, good and satisfactory. June 30, 2019 Commercial Commercial Commercial Consumer Consumer Total Pass $ 51,732,759 $ 11,204,997 $ 141,999,065 $ 58,154,814 $ 5,147,378 $ 268,239,013 Watch 2,533,865 — 4,557,264 2,615,352 394,714 10,101,195 OAEM 322,858 — 660,784 517,254 77,780 1,578,676 Sub-standard 1,680,848 — 1,352,318 879,752 15,828 3,928,746 Doubtful — — — — — — Loss — — — — — — Total $ 56,270,330 $ 11,204,997 $ 148,569,431 $ 62,167,172 $ 5,635,700 $ 283,847,630 December 31, 2018 Commercial Commercial Commercial Consumer Consumer Total Pass $ 50,663,356 $ 7,304,300 $ 136,804,420 $ 60,480,317 $ 4,726,494 $ 259,978,887 Watch 1,973,675 — 4,938,711 2,077,341 226,117 9,215,844 OAEM 157,300 — 590,294 350,000 — 1,097,594 Sub-standard 2,034,747 — 1,369,976 879,753 87,466 4,371,942 Doubtful — — — — — — Loss — — — — — — Total $ 54,829,078 $ 7,304,300 $ 143,703,401 $ 63,787,411 $ 5,040,077 $ 274,664,267 |
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. June 30, 2019 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 49,948 $ 194,058 $ — $ 244,006 $ 56,026,324 $ 56,270,330 $ — Commercial Real Estate - Construction — — — — 11,204,997 11,204,997 — Commercial Real Estate - Other 409,860 273,190 571,292 1,254,342 147,315,089 148,569,431 — Consumer Real Estate 271,691 — — 271,691 61,895,481 62,167,172 — Consumer Other 25,603 — 678 26,281 5,609,419 5,635,700 — Total $ 757,102 $ 467,248 $ 571,970 $ 1,796,320 $ 282,051,310 $ 283,847,630 $ — December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable Recorded Commercial $ 266,567 $ 17,492 $ 229,395 $ 513,454 $ 54,315,624 $ 54,829,078 $ — Commercial Real Estate - Construction — — — — 7,304,300 7,304,300 — Commercial Real Estate - Other 35,000 215,049 571,292 821,341 142,882,060 143,703,401 — Consumer Real Estate — — — — 63,787,411 63,787,411 — Consumer Other 24,621 — — 24,621 5,015,456 5,040,077 — Total $ 326,188 $ 232,541 $ 800,687 $ 1,359,416 $ 273,304,851 $ 274,664,267 $ — |
Schedule of non-accrual loans | The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual June 30, 2019 December 31, 2018 Commercial $ 13,210 $ 251,219 Commercial Real Estate - Construction — — Commercial Real Estate - Other 571,292 571,292 Consumer Real Estate — — Consumer Other 678 1,023 Total $ 585,180 $ 823,534 |
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 loan category for the three and six months ended June 30, 2019 and 2018. 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 June 30, 2019 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses: Beginning Balance $ 1,528,577 $ 81,047 $ 1,318,918 $ 377,641 $ 683,239 $ 3,989,422 Charge-offs — — — — (2,009 ) (2,009 ) Recoveries 5,500 — — — 2,635 8,135 Provisions 5,575 16,940 13,885 150,888 (52,288 ) 135,000 Ending Balance $ 1,539,652 $ 97,987 $ 1,332,803 $ 528,529 $ 631,577 $ 4,130,548 Six Months Ended June 30, 2019 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses: Beginning Balance $ 1,665,413 $ 63,876 $ 1,292,346 $ 386,585 $ 806,111 $ 4,214,331 Charge-offs (229,395 ) — — — (8,342 ) (237,737 ) Recoveries 6,000 — — — 2,954 8,954 Provisions 97,634 34,111 40,457 141,944 (169,146 ) 145,000 Ending Balance $ 1,539,652 $ 97,987 $ 1,332,803 $ 528,529 $ 631,577 $ 4,130,548 Three Months Ended June 30, 2018 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses: Beginning Balance $ 1,326,246 $ 11,136 $ 1,041,088 $ 567,075 $ 884,975 $ 3,830,520 Charge-offs — — — — — — Recoveries 1,000 — 55,252 45,412 280 101,944 Provisions 16,514 17,955 (124,302 ) (23,436 ) 188,269 75,000 Ending Balance $ 1,343,760 $ 29,091 $ 972,038 $ 589,051 $ 1,073,524 $ 4,007,464 Six Months Ended June 30, 2018 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other 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 ) — — — (71,843 ) (103,093 ) Recoveries 2,500 — 56,827 45,412 420 105,159 Provisions (31,078 ) 5,453 (634,544 ) (253,279 ) 1,043,448 130,000 Ending Balance $ 1,343,760 $ 29,091 $ 972,038 $ 589,051 $ 1,073,524 $ 4,007,464 |
Schedule of allocation of the allowance for loan losses and the gross investment in loans by class and reserving methodology | The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated. June 30, 2019 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 870,073 $ — $ 31,082 $ — $ 7,510 $ 908,665 Collectively evaluated for impairment 669,579 97,987 1,301,721 528,529 624,067 3,221,883 Total Allowance for Loan Losses $ 1,539,652 $ 97,987 $ 1,332,803 $ 528,529 $ 631,577 $ 4,130,548 Loans Receivable Individually evaluated for impairment $ 1,680,847 $ — $ 1,360,884 $ 879,753 $ 15,828 $ 3,937,312 Collectively evaluated for impairment 54,589,483 11,204,997 147,208,547 61,287,419 5,619,872 279,910,318 Total Loans Receivable $ 56,270,330 $ 11,204,997 $ 148,569,431 $ 62,167,172 $ 5,635,700 $ 283,847,630 December 31, 2018 Commercial Commercial Real Estate - Construction Commercial Real Estate - Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,132,805 $ — $ 37,416 $ — $ 21,324 $ 1,191,545 Collectively evaluated for impairment 532,608 63,876 1,254,930 386,585 784,787 3,022,786 Total Allowance for Loan Losses $ 1,665,413 $ 63,876 $ 1,292,346 $ 386,585 $ 806,111 $ 4,214,331 Loans Receivable Individually evaluated for impairment $ 1,996,579 $ — $ 1,280,890 $ 879,753 $ 21,324 $ 4,178,546 Collectively evaluated for impairment 52,832,499 7,304,300 142,422,511 62,907,658 5,018,753 270,485,721 Total Loans Receivable $ 54,829,078 $ 7,304,300 $ 143,703,401 $ 63,787,411 $ 5,040,077 $ 274,664,267 |
Schedule of loans individually evaluated for impairment and the corresponding allowance for loan losses | As of June 30, 2019 and December 31, 2018, loans individually evaluated and considered impaired are presented in the following table. Impaired Loans As of June 30, 2019 December 31, 2018 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 111,591 $ 111,591 $ — $ 115,983 $ 115,983 $ — Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 860,975 860,975 — 974,249 974,249 — Consumer Real Estate 879,753 879,753 — 879,753 879,753 — Consumer Other — — — — — — Total 1,852,319 1,852,319 — 1,969,985 1,969,985 — With an allowance recorded: Commercial 1,569,256 1,569,256 870,073 1,880,596 1,880,596 1,132,805 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 499,909 400,108 31,082 406,442 306,641 37,416 Consumer Real Estate — — — — — — Consumer Other 15,828 15,828 7,510 21,324 21,324 21,324 Total 2,084,993 1,985,192 908,665 2,308,362 2,208,561 1,191,545 Commercial 1,680,847 1,680,847 870,073 1,996,579 1,996,579 1,132,805 Commercial Real Estate - Construction — — — — — — Commercial Real Estate - Other 1,360,884 1,261,083 31,082 1,380,691 1,280,890 37,416 Consumer Real Estate 879,753 879,753 — 879,753 879,753 — Consumer Other 15,828 15,828 7,510 21,324 21,324 21,324 Total $ 3,937,312 $ 3,837,511 $ 908,665 $ 4,278,347 $ 4,178,546 $ 1,191,545 |
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 segment, for the periods indicated. Three Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 117,741 $ 2,071 $ 137,684 $ 2,227 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 863,351 10,354 916,094 10,518 Consumer Real Estate 879,753 14,257 249,754 3,548 Consumer Other — — — — 1,960,646 26,682 1,303,532 16,293 With an allowance recorded: Commercial 1,582,324 25,869 1,563,849 19,438 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 501,279 2,735 517,936 1,840 Consumer Real Estate — — — — Consumer Other 17,108 224 39,396 483 2,100,711 28,828 2,121,181 21,761 Total Commercial 1,700,065 27,940 1,701,533 21,665 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,364,630 13,089 1,434,030 12,358 Consumer Real Estate 879,753 14,257 249,754 3,548 Consumer Other 17,108 224 39,396 483 $ 4,061,357 $ 55,510 $ 3,424,713 $ 38,054 Six Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 123,509 $ 4,334 $ 141,909 $ 4,430 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 967,076 20,700 917,140 14,233 Consumer Real Estate 879,753 28,357 249,754 7,007 Consumer Other — — — — 1,970,338 53,391 1,308,803 25,670 With an allowance recorded: Commercial 1,597,013 51,983 1,584,430 48,660 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 403,001 5,498 523,141 5,507 Consumer Real Estate — — — — Consumer Other 18,279 478 41,823 1,131 2,018,293 57,959 2,149,394 55,298 Total Commercial 1,720,522 56,317 1,726,339 53,090 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,370,077 26,198 1,440,281 19,740 Consumer Real Estate 879,753 28,357 249,754 7,007 Consumer Other 18,279 478 41,823 1,131 $ 3,988,631 $ 111,350 $ 3,458,197 $ 80,968 |
Disclosure Regarding Fair Val_2
Disclosure Regarding Fair Value of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are as follows: Balance as of June 30, 2019 Quoted Market Price in active markets Significant Other Observable Inputs Significant Unobservable Inputs Total U.S. Treasury Notes $ 28,146,403 $ — $ — $ 28,146,403 Government-Sponsored Enterprises — 50,717,345 — 50,717,345 Municipal Securities — 18,032,698 4,534,517 22,567,215 Total $ 28,146,403 $ 68,750,043 $ 4,534,517 $ 101,430,963 Balance as of December 31, 2018 Quoted Market Price in active markets (Level 1) Significant (Level 2) Significant Unobservable Inputs Total U.S. Treasury Notes $ 32,356,634 $ — $ — $ 32,356,634 Government-Sponsored Enterprises — 59,369,280 — 59,369,280 Municipal Securities — 21,701,005 6,241,955 27,942,960 Total $ 32,356,634 $ 81,070,285 $ 6,241,955 $ 119,668,874 |
Schedule of changes in assets measured at fair value on a recurring basis using significant unobservable inputs | 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 and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Beginning balance $ 5,738,618 $ 7,483,696 $ 6,241,955 $ 11,458,889 Total gains or (losses) (realized/unrealized) Included in net income — — — — Included in other comprehensive income (loss) 44,734 2,660 101,397 67,467 Purchases, issuances, and settlements net of maturities (1,248,835 ) (390,000 ) (1,808,835 ) (4,430,000 ) Transfers in and/or out of level 3 — — — — Ending balance $ 4,534,517 $ 7,096,356 $ 4,534,517 $ 7,096,356 |
Schedule of certain assets and liabilities measured at fair value on a nonrecurring basis | The following table presents information about certain assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018: June 30, 2019 Quoted Market Price in active markets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total Impaired loans $ — $ — $ 2,209,555 $ 2,209,555 Other real estate owned — — — — Loans held for sale — 2,874,982 — 2,874,982 Total $ — $ 2,874,982 $ 2,209,555 $ 5,084,537 December 31, 2018 Quoted Market Price in active markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 2,223,028 $ 2,223,028 Other real estate owned — — — — Loans held for sale — 1,199,438 — 1,199,438 Total $ — $ 1,199,438 $ 2,223,028 $ 3,422,466 |
Schedule of unobservable inputs used in Level 3 fair value measurement | The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2019 and December 31, 2018: 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 June 30, 2019 and December 31, 2018. Fair Value Measurements at June 30, 2019 Carrying Estimated Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,843,665 $ 9,843,665 $ 9,843,665 $ — $ — Interest-bearing deposits at the Federal Reserve 35,252,826 35,252,826 35,252,826 — — Investment securities available for sale 101,430,963 101,430,963 28,146,403 68,750,043 4,534,517 Mortgage loans to be sold 2,874,982 2,874,982 — 2,874,982 — Loans, net 279,717,082 275,600,697 — — 275,600,697 Accrued interest receivable 1,565,145 1,565,145 — 1,565,145 — Financial Liabilities: Demand deposits 357,791,960 357,791,960 — 357,791,960 — Time deposits 26,017,945 29,473,494 — 29,473,494 — Accrued interest payable 63,802 63,802 — 63,802 — Fair Value Measurements at December 31, 2018 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 6,325,457 $ 6,325,457 $ 6,325,457 $ — $ — Interest-bearing deposits at the Federal Reserve 25,506,784 25,506,784 25,506,784 — — Investment securities available for sale 119,668,874 119,668,874 32,356,634 81,070,285 6,241,955 Mortgage loans to be sold 1,199,438 1,199,438 — 1,199,438 — Loans, net 270,449,936 263,780,751 — — 263,780,751 Accrued interest receivable 1,561,915 1,561,915 — 1,561,915 — Financial Liabilities: Demand deposits 347,909,663 347,909,663 — 347,909,663 — Time deposits 34,468,725 38,747,898 — 38,747,898 — Accrued interest payable 163,876 163,876 — 163,876 — |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30: 2019 2018 Net income $ 1,840,847 $ 1,726,357 Weighted average shares outstanding 5,517,236 5,492,896 Effect of dilutive shares 70,749 93,689 Weighted average shares outstanding - diluted 5,587,985 5,586,585 Earnings per share - basic $ 0.33 $ 0.31 Earnings per share - diluted $ 0.33 $ 0.31 The following table is a summary of the reconciliation of average shares outstanding for the six months ended June 30: 2019 2018 Net income $ 3,530,111 $ 3,338,587 Weighted average shares outstanding 5,515,832 5,339,187 Effect of dilutive shares 70,981 94,173 Weighted average shares outstanding - diluted 5,586,813 5,433,360 Earnings per share - basic $ 0.64 $ 0.63 Earnings per share - diluted $ 0.63 $ 0.61 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jan. 02, 2019 | |
Accounting Policies [Abstract] | ||
Weighted average remaining lease term | 18 years 1 month 6 days | |
Incremental borrowing rate | 5.50% | |
Total lease expense | $ 317,859 | |
Short term lease | 30,840 | |
Operating leases right of use assets | 7,218,644 | $ 7,300,000 |
Operating leases liabilities | $ 7,218,644 | $ 7,300,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | $ 101,110,336 | $ 121,918,501 |
Gross Unrealized Gains | 516,595 | 112,971 |
Gross Unrealized Losses | (195,968) | (2,362,598) |
Estimated Fair Value | 101,430,963 | 119,668,874 |
U.S. Treasury Notes [Member] | ||
Amortized Cost | 28,054,029 | 32,965,693 |
Gross Unrealized Gains | 101,804 | |
Gross Unrealized Losses | (9,430) | (609,059) |
Estimated Fair Value | 28,146,403 | 32,356,634 |
Government-Sponsored Enterprises [Member] | ||
Amortized Cost | 50,582,908 | 60,684,878 |
Gross Unrealized Gains | 248,635 | |
Gross Unrealized Losses | (114,198) | (1,315,598) |
Estimated Fair Value | 50,717,345 | 59,369,280 |
Municipal Securities [Member] | ||
Amortized Cost | 22,473,399 | 28,267,930 |
Gross Unrealized Gains | 166,156 | 112,971 |
Gross Unrealized Losses | (72,340) | (437,941) |
Estimated Fair Value | $ 22,567,215 | $ 27,942,960 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 3,314,449 | $ 4,246,325 |
Due in one year to five years | 82,244,256 | 99,753,174 |
Due in five years to ten years | 15,551,630 | 17,504,456 |
Due in ten years and over | 414,546 | |
Total | 101,110,336 | 121,918,501 |
Estimated Fair Value | ||
Due in one year or less | 3,318,732 | 4,249,570 |
Due in one year to five years | 82,503,885 | 97,915,185 |
Due in five years to ten years | 15,608,346 | 17,128,425 |
Due in ten years and over | 375,694 | |
Total | $ 101,430,963 | $ 119,668,874 |
Investment Securities (Detail_2
Investment Securities (Details 2) | Jun. 30, 2019USD ($)Number | Dec. 31, 2018USD ($)Number |
Less than 12 Months | ||
Number of positions | Number | 1 | 4 |
Fair Value | $ 5,048,240 | $ 11,329,286 |
Gross Unrealized Losses | $ (702) | $ (21,849) |
12 months or Longer | ||
Number of positions | Number | 30 | 49 |
Fair value | $ 27,689,746 | $ 93,599,826 |
Gross Unrealized Losses | $ (195,266) | $ (2,340,749) |
Total | ||
Number of positions | Number | 31 | 53 |
Fair value | $ 32,737,986 | $ 104,929,112 |
Gross Unrealized Losses | $ (195,968) | $ (2,362,598) |
U.S. Treasury Notes [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 1 | |
Fair Value | $ 5,048,240 | |
Gross Unrealized Losses | $ (702) | |
12 months or Longer | ||
Number of positions | Number | 2 | 7 |
Fair value | $ 8,025,118 | $ 32,356,634 |
Gross Unrealized Losses | $ (8,728) | $ (609,059) |
Total | ||
Number of positions | Number | 3 | 7 |
Fair value | $ 13,073,358 | $ 32,356,634 |
Gross Unrealized Losses | $ (9,430) | $ (609,059) |
Government-Sponsored Enterprises [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 2 | |
Fair Value | $ 9,967,000 | |
Gross Unrealized Losses | $ (14,302) | |
12 months or Longer | ||
Number of positions | Number | 3 | 11 |
Fair value | $ 10,397,565 | $ 49,402,280 |
Gross Unrealized Losses | $ (114,198) | $ (1,301,296) |
Total | ||
Number of positions | Number | 3 | 13 |
Fair value | $ 10,397,565 | $ 59,369,280 |
Gross Unrealized Losses | $ (114,198) | $ (1,315,598) |
Municipal Securities [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 2 | |
Fair Value | $ 1,362,286 | |
Gross Unrealized Losses | $ (7,547) | |
12 months or Longer | ||
Number of positions | Number | 25 | 31 |
Fair value | $ 9,267,063 | $ 11,840,912 |
Gross Unrealized Losses | $ (72,340) | $ (430,394) |
Total | ||
Number of positions | Number | 25 | 33 |
Fair value | $ 9,267,063 | $ 13,203,198 |
Gross Unrealized Losses | $ (72,340) | $ (437,941) |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross proceeds | $ 14,952,500 | $ 11,970,378 | $ 14,952,500 | $ 21,434,634 |
Gross realized gains | 59,512 | 25,490 | 59,512 | 104,634 |
Gross realized losses | $ (30,612) | $ (25,103) | $ (30,612) | $ (99,899) |
Investment Securities (Detail_4
Investment Securities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investment securities pledged to secure deposits, fair value | $ 37,700,000 | $ 37,700,000 | $ 41,500,000 | ||
Gross realized gains (losses) on sale of investments, tax | $ 6,069 | $ 81 | $ 6,069 | $ 994 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Loans | $ 283,847,630 | $ 274,664,267 |
Allowance for loan losses | (4,130,548) | (4,214,331) |
Loans, net | 279,717,082 | 270,449,936 |
Commercial [Member] | ||
Loans | 56,270,330 | 54,829,078 |
Commercial Real Estate Construction [Member] | ||
Loans | 11,204,997 | 7,304,300 |
Commercial Real Estate Other [Member] | ||
Loans | 148,569,431 | 143,703,401 |
Consumer Real Estate [Member] | ||
Loans | 62,167,172 | 63,787,411 |
Consumer Other [Member] | ||
Loans | $ 5,635,700 | $ 5,040,077 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Credit risks by category and internally assigned grades | ||
Loans | $ 283,847,630 | $ 274,664,267 |
Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 268,239,013 | 259,978,887 |
Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 10,101,195 | 9,215,844 |
OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,578,676 | 1,097,594 |
SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 3,928,746 | 4,371,942 |
Commercial [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 56,270,330 | 54,829,078 |
Commercial [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 51,732,759 | 50,663,356 |
Commercial [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 2,533,865 | 1,973,675 |
Commercial [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 322,858 | 157,300 |
Commercial [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,680,848 | 2,034,747 |
Commercial Real Estate Construction [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 11,204,997 | 7,304,300 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 11,204,997 | 7,304,300 |
Commercial Real Estate Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 148,569,431 | 143,703,401 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 141,999,065 | 136,804,420 |
Commercial Real Estate Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,557,264 | 4,938,711 |
Commercial Real Estate Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 660,784 | 590,294 |
Commercial Real Estate Other [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,352,318 | 1,369,976 |
Consumer Real Estate [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 62,167,172 | 63,787,411 |
Consumer Real Estate [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 58,154,814 | 60,480,317 |
Consumer Real Estate [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 2,615,352 | 2,077,341 |
Consumer Real Estate [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 517,254 | 350,000 |
Consumer Real Estate [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 879,752 | 879,753 |
Consumer Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,635,700 | 5,040,077 |
Consumer Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,147,378 | 4,726,494 |
Consumer Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 394,714 | 226,117 |
Consumer Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 77,780 | |
Consumer Other [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | $ 15,828 | $ 87,466 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 2) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 1,796,320 | $ 1,359,416 |
Current | 282,051,310 | 273,304,851 |
Total Loans Receivable | 283,847,630 | 274,664,267 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 757,102 | 326,188 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 467,248 | 232,541 |
Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 571,970 | 800,687 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 244,006 | 513,454 |
Current | 56,026,324 | 54,315,624 |
Total Loans Receivable | 56,270,330 | 54,829,078 |
Commercial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 49,948 | 266,567 |
Commercial [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 194,058 | 17,492 |
Commercial [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 229,395 | |
Commercial Real Estate Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 11,204,997 | 7,304,300 |
Total Loans Receivable | 11,204,997 | 7,304,300 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,254,342 | 821,341 |
Current | 147,315,089 | 142,882,060 |
Total Loans Receivable | 148,569,431 | 143,703,401 |
Commercial Real Estate Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 409,860 | 35,000 |
Commercial Real Estate Other [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 273,190 | 215,049 |
Commercial Real Estate Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 571,292 | 571,292 |
Consumer Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 271,691 | |
Current | 61,895,481 | 63,787,411 |
Total Loans Receivable | 62,167,172 | 63,787,411 |
Consumer Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 271,691 | |
Consumer Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 26,281 | 24,621 |
Current | 5,609,419 | 5,015,456 |
Total Loans Receivable | 5,635,700 | 5,040,077 |
Consumer Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 25,603 | $ 24,621 |
Consumer Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 678 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 3) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 585,180 | $ 823,534 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | 13,210 | 251,219 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | 571,292 | 571,292 |
Consumer Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 678 | $ 1,023 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | $ 3,989,422 | $ 3,830,520 | $ 4,214,331 | $ 3,875,398 |
Charge-offs | (2,009) | (237,737) | (103,093) | |
Recoveries | 8,135 | 101,944 | 8,954 | 105,159 |
Provisions | 135,000 | 75,000 | 145,000 | 130,000 |
Ending Balance | 4,130,548 | 4,007,464 | 4,130,548 | 4,007,464 |
Commercial [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 1,528,577 | 1,326,246 | 1,665,413 | 1,403,588 |
Charge-offs | (229,395) | (31,250) | ||
Recoveries | 5,500 | 1,000 | 6,000 | 2,500 |
Provisions | 5,575 | 16,514 | 97,634 | (31,078) |
Ending Balance | 1,539,652 | 1,343,760 | 1,539,652 | 1,343,760 |
Commercial Real Estate Construction [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 81,047 | 11,136 | 63,876 | 23,638 |
Provisions | 16,940 | 17,955 | 34,111 | 5,453 |
Ending Balance | 97,987 | 29,091 | 97,987 | 29,091 |
Commercial Real Estate Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 1,318,918 | 1,041,088 | 1,292,346 | 1,549,755 |
Recoveries | 55,252 | 56,827 | ||
Provisions | 13,885 | (124,302) | 40,457 | (634,544) |
Ending Balance | 1,332,803 | 972,038 | 1,332,803 | 972,038 |
Consumer Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 377,641 | 567,075 | 386,585 | 796,918 |
Recoveries | 45,412 | 45,412 | ||
Provisions | 150,888 | (23,436) | 141,944 | (253,279) |
Ending Balance | 528,529 | 589,051 | 528,529 | 589,051 |
Consumer Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning Balance | 683,239 | 884,975 | 806,111 | 101,499 |
Charge-offs | (2,009) | (8,342) | (71,843) | |
Recoveries | 2,635 | 280 | 2,954 | 420 |
Provisions | (52,288) | 188,269 | (169,146) | 1,043,448 |
Ending Balance | $ 631,577 | $ 1,073,524 | $ 631,577 | $ 1,073,524 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details 5) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | $ 908,665 | $ 1,191,545 | ||||
Collectively evaluated for impairment | 3,221,883 | 3,022,786 | ||||
Total Allowance for Loan Losses | 4,130,548 | $ 3,989,422 | 4,214,331 | $ 4,007,464 | $ 3,830,520 | $ 3,875,398 |
Loans Receivable | ||||||
Individually evaluated for impairment | 3,937,312 | 4,178,546 | ||||
Collectively evaluated for impairment | 279,910,318 | 270,485,721 | ||||
Total Loans Receivable | 283,847,630 | 274,664,267 | ||||
Commercial [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 870,073 | 1,132,805 | ||||
Collectively evaluated for impairment | 669,579 | 532,608 | ||||
Total Allowance for Loan Losses | 1,539,652 | 1,528,577 | 1,665,413 | 1,343,760 | 1,326,246 | 1,403,588 |
Loans Receivable | ||||||
Individually evaluated for impairment | 1,680,847 | 1,996,579 | ||||
Collectively evaluated for impairment | 54,589,483 | 52,832,499 | ||||
Total Loans Receivable | 56,270,330 | 54,829,078 | ||||
Commercial Real Estate Construction [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Collectively evaluated for impairment | 97,987 | 63,876 | ||||
Total Allowance for Loan Losses | 97,987 | 81,047 | 63,876 | 29,091 | 11,136 | 23,638 |
Loans Receivable | ||||||
Collectively evaluated for impairment | 11,204,997 | 7,304,300 | ||||
Total Loans Receivable | 11,204,997 | 7,304,300 | ||||
Commercial Real Estate Other [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 31,082 | 37,416 | ||||
Collectively evaluated for impairment | 1,301,721 | 1,254,930 | ||||
Total Allowance for Loan Losses | 1,332,803 | 1,318,918 | 1,292,346 | 972,038 | 1,041,088 | 1,549,755 |
Loans Receivable | ||||||
Individually evaluated for impairment | 1,360,884 | 1,280,890 | ||||
Collectively evaluated for impairment | 147,208,547 | 142,422,511 | ||||
Total Loans Receivable | 148,569,431 | 143,703,401 | ||||
Consumer Real Estate [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Collectively evaluated for impairment | 528,529 | 386,585 | ||||
Total Allowance for Loan Losses | 528,529 | 377,641 | 386,585 | 589,051 | 567,075 | 796,918 |
Loans Receivable | ||||||
Individually evaluated for impairment | 879,753 | 879,753 | ||||
Collectively evaluated for impairment | 61,287,419 | 62,907,658 | ||||
Total Loans Receivable | 62,167,172 | 63,787,411 | ||||
Consumer Other [Member] | ||||||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 7,510 | 21,324 | ||||
Collectively evaluated for impairment | 624,067 | 784,787 | ||||
Total Allowance for Loan Losses | 631,577 | $ 683,239 | 806,111 | $ 1,073,524 | $ 884,975 | $ 101,499 |
Loans Receivable | ||||||
Individually evaluated for impairment | 15,828 | 21,324 | ||||
Collectively evaluated for impairment | 5,619,872 | 5,018,753 | ||||
Total Loans Receivable | $ 5,635,700 | $ 5,040,077 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details 6) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | $ 1,852,319 | $ 1,969,985 |
Recorded Investment with no related allowance recorded | 1,852,319 | 1,969,985 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 2,084,993 | 2,308,362 |
Recorded Investment with an allowance recorded | 1,985,192 | 2,208,561 |
Related Allowance | 908,665 | 1,191,545 |
Total of Impaired Loans | ||
Unpaid Principal balance | 3,937,312 | 4,278,347 |
Recorded Investment | 3,837,511 | 4,178,546 |
Commercial [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 111,591 | 115,983 |
Recorded Investment with no related allowance recorded | 111,591 | 115,983 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 1,569,256 | 1,880,596 |
Recorded Investment with an allowance recorded | 1,569,256 | 1,880,596 |
Related Allowance | 870,073 | 1,132,805 |
Total of Impaired Loans | ||
Unpaid Principal balance | 1,680,847 | 1,996,579 |
Recorded Investment | 1,680,847 | 1,996,579 |
Commercial Real Estate Other [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 860,975 | 974,249 |
Recorded Investment with no related allowance recorded | 860,975 | 974,249 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 499,909 | 406,442 |
Recorded Investment with an allowance recorded | 400,108 | 306,641 |
Related Allowance | 31,082 | 37,416 |
Total of Impaired Loans | ||
Unpaid Principal balance | 1,360,884 | 1,380,691 |
Recorded Investment | 1,261,083 | 1,280,890 |
Consumer Real Estate [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 879,753 | 879,753 |
Recorded Investment with no related allowance recorded | 879,753 | 879,753 |
Total of Impaired Loans | ||
Unpaid Principal balance | 879,753 | 879,753 |
Recorded Investment | 879,753 | 879,753 |
Consumer Other [Member] | ||
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 15,828 | 21,324 |
Recorded Investment with an allowance recorded | 15,828 | 21,324 |
Related Allowance | 7,510 | 21,324 |
Total of Impaired Loans | ||
Unpaid Principal balance | 15,828 | 21,324 |
Recorded Investment | $ 15,828 | $ 21,324 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Details 7) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | $ 1,960,646 | $ 1,303,532 | $ 1,970,338 | $ 1,308,803 |
Interest Income Recognized With no related allowance recorded | 26,682 | 16,293 | 53,391 | 25,670 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 2,100,711 | 2,121,181 | 2,018,293 | 2,149,394 |
Interest Income Recognized With an allowance recorded | 28,828 | 21,761 | 57,959 | 55,298 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 4,061,357 | 3,424,713 | 3,988,631 | 3,458,197 |
Interest Income Recognized | 55,510 | 38,054 | 111,350 | 80,968 |
Commercial [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | 117,741 | 137,684 | 123,509 | 141,909 |
Interest Income Recognized With no related allowance recorded | 2,071 | 2,227 | 4,334 | 4,430 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 1,582,324 | 1,563,849 | 1,597,013 | 1,584,430 |
Interest Income Recognized With an allowance recorded | 25,869 | 19,438 | 51,983 | 48,660 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 1,700,065 | 1,701,533 | 1,720,522 | 1,726,339 |
Interest Income Recognized | 27,940 | 21,665 | 56,317 | 53,090 |
Commercial Real Estate Other [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | 863,351 | 916,094 | 967,076 | 917,140 |
Interest Income Recognized With no related allowance recorded | 10,354 | 10,518 | 20,700 | 14,233 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 501,279 | 517,936 | 403,001 | 523,141 |
Interest Income Recognized With an allowance recorded | 2,735 | 1,840 | 5,498 | 5,507 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 1,364,630 | 1,434,030 | 1,370,077 | 1,440,281 |
Interest Income Recognized | 13,089 | 12,358 | 26,198 | 19,740 |
Consumer Real Estate [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment With no related allowance recorded | 879,753 | 249,754 | 879,753 | 249,754 |
Interest Income Recognized With no related allowance recorded | 14,257 | 3,548 | 28,357 | 7,007 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 879,753 | 249,754 | 879,753 | 249,754 |
Interest Income Recognized | 14,257 | 3,548 | 28,357 | 7,007 |
Consumer Other [Member] | ||||
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment With an allowance recorded | 17,108 | 39,396 | 18,279 | 41,823 |
Interest Income Recognized With an allowance recorded | 224 | 483 | 478 | 1,131 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 17,108 | 39,396 | 18,279 | 41,823 |
Interest Income Recognized | $ 224 | $ 483 | $ 478 | $ 1,131 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Details Narrative) | 3 Months Ended | ||
Jun. 30, 2019USD ($)Number | Mar. 31, 2019USD ($)Number | Dec. 31, 2018USD ($)Number | |
Receivables [Abstract] | |||
Deferred loan fees | $ 165,854 | $ 156,309 | |
Loans pledged as collateral to secure funding with the Federal Reserve Bank | $ 94,000,000 | $ 101,900,000 | |
Number of loans over 90 days past due and still accruing | Number | 0 | 0 | |
Restructured loan | $ 2,185 | ||
Number of loans restructured | Number | 0 | 1 | 0 |
Loan charged-off | $ 2,008 | ||
Recovery loan | $ 439 |
Disclosure Regarding Fair Val_3
Disclosure Regarding Fair Value of Financial Statements (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Investment securities available for sale | $ 101,430,963 | $ 119,668,874 |
Level 1 [Member] | ||
Investment securities available for sale | 28,146,403 | 32,356,634 |
Level 2 [Member] | ||
Investment securities available for sale | 68,750,043 | 81,070,285 |
Level 3 [Member] | ||
Investment securities available for sale | 4,534,517 | 6,241,955 |
U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 28,146,403 | 32,356,634 |
Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 50,717,345 | 59,369,280 |
Municipal Securities [Member] | ||
Investment securities available for sale | 22,567,215 | 27,942,960 |
Recurring Basis [Member] | ||
Investment securities available for sale | 101,430,963 | 119,668,874 |
Recurring Basis [Member] | Level 1 [Member] | ||
Investment securities available for sale | 28,146,403 | 32,356,634 |
Recurring Basis [Member] | Level 2 [Member] | ||
Investment securities available for sale | 68,750,043 | 81,070,285 |
Recurring Basis [Member] | Level 3 [Member] | ||
Investment securities available for sale | 4,534,517 | 6,241,955 |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 28,146,403 | 32,356,634 |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | Level 1 [Member] | ||
Investment securities available for sale | 28,146,403 | 32,356,634 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 50,717,345 | 59,369,280 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | Level 2 [Member] | ||
Investment securities available for sale | 50,717,345 | 59,369,280 |
Recurring Basis [Member] | Municipal Securities [Member] | ||
Investment securities available for sale | 22,567,215 | 27,942,960 |
Recurring Basis [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
Investment securities available for sale | 18,032,698 | 21,701,005 |
Recurring Basis [Member] | Municipal Securities [Member] | Level 3 [Member] | ||
Investment securities available for sale | $ 4,534,517 | $ 6,241,955 |
Disclosure Regarding Fair Val_4
Disclosure Regarding Fair Value of Financial Statements (Details 1) - Level 3 [Member] - Municipal Securities [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Beginning Balance | $ 5,738,618 | $ 7,483,696 | $ 6,241,955 | $ 11,458,889 |
Total gains or (losses) (realized/unrealized) | ||||
Included in other comprehensive income (loss) | 44,734 | 2,660 | 101,397 | 67,467 |
Purchases, issuances, and settlements net of maturities | (1,248,835) | (390,000) | (1,808,835) | (4,430,000) |
Ending balance | $ 4,534,517 | $ 7,096,356 | $ 4,534,517 | $ 7,096,356 |
Disclosure Regarding Fair Val_5
Disclosure Regarding Fair Value of Financial Statements (Details 2) - Nonrecurring Basis [Member] - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans | $ 2,209,555 | $ 2,223,028 |
Loans held for sale | 2,874,982 | 1,199,438 |
Total | 5,084,537 | 3,422,466 |
Level 2 [Member] | ||
Loans held for sale | 2,874,982 | 1,199,438 |
Total | 2,874,982 | 1,199,438 |
Level 3 [Member] | ||
Impaired loans | 2,209,555 | 2,223,028 |
Total | $ 2,209,555 | $ 2,223,028 |
Disclosure Regarding Fair Val_6
Disclosure Regarding Fair Value of Financial Statements (Details 3) - Appraisals and/or Sales [Member] - Discount Rate [Member] - Number | Jun. 30, 2019 | Dec. 31, 2018 |
Minimum [Member] | ||
Impaired loans | 0.10 | 0.10 |
Other real estate owned | 0.10 | 0.10 |
Maximum [Member] | ||
Impaired loans | 0.20 | 0.20 |
Other real estate owned | 0.20 | 0.20 |
Disclosure Regarding Fair Val_7
Disclosure Regarding Fair Value of Financial Statements (Details 4) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Investment securities available for sale | $ 101,430,963 | $ 119,668,874 |
Level 1 [Member] | ||
Financial Assets: | ||
Cash and due from banks | 9,843,665 | 6,325,457 |
Interest-bearing deposits at the Federal Reserve | 35,252,826 | 25,506,784 |
Investment securities available for sale | 28,146,403 | 32,356,634 |
Level 2 [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 68,750,043 | 81,070,285 |
Mortgage loans to be sold | 2,874,982 | 1,199,438 |
Accrued interest receivable | 1,565,145 | 1,561,915 |
Financial Liabilities: | ||
Demand deposits | 357,791,960 | 347,909,663 |
Time deposits | 29,473,494 | 38,747,898 |
Accrued interest payable | 63,802 | 163,876 |
Level 3 [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 4,534,517 | 6,241,955 |
Loans, net | 275,600,697 | 263,780,751 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and due from banks | 9,843,665 | 6,325,457 |
Interest-bearing deposits at the Federal Reserve | 35,252,826 | 25,506,784 |
Investment securities available for sale | 101,430,963 | 119,668,874 |
Mortgage loans to be sold | 2,874,982 | 1,199,438 |
Loans, net | 279,717,082 | 270,449,936 |
Accrued interest receivable | 1,565,145 | 1,561,915 |
Financial Liabilities: | ||
Demand deposits | 357,791,960 | 347,909,663 |
Time deposits | 26,017,945 | 34,468,725 |
Accrued interest payable | 63,802 | 163,876 |
Estimated Fair Value [Member] | ||
Financial Assets: | ||
Cash and due from banks | 9,843,665 | 6,325,457 |
Interest-bearing deposits at the Federal Reserve | 35,252,826 | 25,506,784 |
Investment securities available for sale | 101,430,963 | 119,668,874 |
Mortgage loans to be sold | 2,874,982 | 1,199,438 |
Loans, net | 275,600,697 | 263,780,751 |
Accrued interest receivable | 1,565,145 | 1,561,915 |
Financial Liabilities: | ||
Demand deposits | 357,791,960 | 347,909,663 |
Time deposits | 29,473,494 | 38,747,898 |
Accrued interest payable | $ 63,802 | $ 163,876 |
Income Per Common Share (Detail
Income Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 1,840,847 | $ 1,689,264 | $ 1,726,357 | $ 1,612,230 | $ 3,530,111 | $ 3,338,587 |
Weighted average shares outstanding | 5,517,236 | 5,492,896 | 5,515,832 | 5,339,187 | ||
Effect of dilutive shares | 70,749 | 93,689 | 70,981 | 94,173 | ||
Weighted average shares outstanding - diluted | 5,587,985 | 5,586,585 | 5,586,813 | 5,433,360 | ||
Earnings per share - basic | $ 0.33 | $ 0.31 | $ 0.64 | $ 0.63 | ||
Earnings per share - diluted | $ 0.33 | $ 0.31 | $ 0.63 | $ 0.61 |