Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 15, 2020 | |
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, 2020 | |
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 Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,526,408 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 6,886,753 | $ 9,773,893 |
Interest-bearing deposits at the Federal Reserve | 89,344,677 | 39,320,526 |
Investment securities available for sale | 108,906,662 | 100,449,956 |
Mortgage loans to be sold | 11,624,188 | 5,062,398 |
Loans | 309,907,305 | 274,072,560 |
Less: Allowance for loan losses | (4,110,630) | (4,003,758) |
Net loans | 305,796,675 | 270,068,802 |
Premises, equipment and leasehold improvements, net | 4,161,381 | 4,290,435 |
Right of use asset | 12,971,774 | 13,209,217 |
Accrued interest receivable | 1,332,528 | 1,309,772 |
Other assets | 1,596,912 | 1,527,521 |
Total assets | 542,621,550 | 445,012,520 |
Deposits: | ||
Non-interest bearing demand | 177,061,501 | 125,621,031 |
Interest bearing demand | 141,000,259 | 125,175,935 |
Money market accounts | 90,750,383 | 68,964,879 |
Time deposits over $250,000 | 4,199,914 | 5,967,559 |
Other time deposits | 17,045,826 | 16,215,228 |
Other savings deposits | 43,639,294 | 37,247,023 |
Total deposits | 473,697,177 | 379,191,655 |
Accrued interest payable and other liabilities | 1,991,744 | 1,443,616 |
Lease liability | 12,971,774 | 13,209,217 |
Total liabilities | 488,660,695 | 393,844,488 |
Shareholders' equity | ||
Common stock - no par 12,000,000 shares authorized; Issued 5,812,038 shares at June 30, 2020 and 5,799,637 shares at December 31, 2019. Shares outstanding 5,530,682 and 5,530,001 at June 30, 2020 and December 31, 2019, respectively. | ||
Additional paid in capital | 47,290,003 | 47,131,034 |
Retained earnings | 7,131,796 | 5,879,409 |
Treasury stock: 281,356 and 269,636 shares at June 30, 2020 and December 31, 2019, respectively. | (2,515,472) | (2,325,225) |
Accumulated other comprehensive income, net of income taxes | 2,054,528 | 482,814 |
Total shareholders' equity | 53,960,855 | 51,168,032 |
Total liabilities and shareholders' equity | $ 542,621,550 | $ 445,012,520 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
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 | 5,812,038 | 5,799,637 |
Common stock, outstanding | 5,530,682 | 5,530,001 |
Treasury stock, shares | 281,356 | 269,636 |
Time deposits | $ 250,000 | $ 250,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest and fee income | ||||
Loans, including fees | $ 3,721,184 | $ 4,090,423 | $ 7,392,166 | $ 8,042,142 |
Taxable securities | 382,993 | 423,211 | 746,432 | 886,665 |
Tax-exempt securities | 82,783 | 137,115 | 207,408 | 298,836 |
Other | 16,251 | 162,596 | 158,631 | 278,535 |
Total interest and fee income | 4,203,211 | 4,813,345 | 8,504,637 | 9,506,178 |
Interest expense | ||||
Deposits | 76,005 | 245,226 | 170,077 | 488,984 |
Total interest expense | 76,005 | 245,226 | 170,077 | 488,984 |
Net interest income | 4,127,206 | 4,568,119 | 8,334,560 | 9,017,194 |
Provision for loan losses | 135,000 | 145,000 | ||
Net interest income after provision for loan losses | 4,127,206 | 4,433,119 | 8,334,560 | 8,872,194 |
Other income | ||||
Service charges and fees | 250,337 | 300,553 | 525,927 | 580,486 |
Mortgage banking income | 446,119 | 256,379 | 792,202 | 380,041 |
Gain on sales of securities | 28,900 | 28,900 | ||
Other non-interest income | 7,166 | 6,907 | 13,124 | 12,095 |
Total other income | 703,622 | 592,739 | 1,331,253 | 1,001,522 |
Other expense | ||||
Salaries and employee benefits | 1,812,832 | 1,664,436 | 3,584,613 | 3,320,960 |
Net occupancy expense | 554,534 | 427,247 | 1,079,841 | 814,379 |
Other operating expenses | 334,199 | 394,178 | 734,248 | 864,227 |
Data processing fees | 168,658 | 148,921 | 328,042 | 294,577 |
Total other expense | 2,870,223 | 2,634,782 | 5,726,744 | 5,294,143 |
Income before income tax expense | 1,960,605 | 2,391,076 | 3,939,069 | 4,579,573 |
Income tax expense | 459,582 | 550,229 | 916,915 | 1,049,462 |
Net income | $ 1,501,023 | $ 1,840,847 | $ 3,022,154 | $ 3,530,111 |
Weighted average shares outstanding | ||||
Basic (in shares) | 5,529,632 | 5,517,236 | 5,529,944 | 5,515,832 |
Diluted (in shares) | 5,714,121 | 5,587,985 | 5,708,718 | 5,586,813 |
Basic income per common share (in dollars per share) | $ 0.27 | $ 0.33 | $ 0.55 | $ 0.64 |
Diluted income per common share (in dollars per share) | $ 0.26 | $ 0.33 | $ 0.53 | $ 0.63 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,501,023 | $ 1,840,847 | $ 3,022,154 | $ 3,530,111 |
Other comprehensive income | ||||
Unrealized gain on securities arising during the period | 1,228,734 | 1,343,539 | 1,989,513 | 2,599,154 |
Reclassification adjustment for securities gains realized in net income | (28,900) | (28,900) | ||
Other comprehensive income before tax | 1,228,734 | 1,314,639 | 1,989,513 | 2,570,254 |
Income tax effect related to items of other comprehensive income before tax | (258,036) | (276,074) | (417,799) | (539,753) |
Other comprehensive income after tax | 970,698 | 1,038,565 | 1,571,714 | 2,030,501 |
Total comprehensive income | $ 2,471,721 | $ 2,879,412 | $ 4,593,868 | $ 5,560,612 |
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, 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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,689,264 | 1,689,264 | ||||
Other comprehensive income | 991,936 | 991,936 | ||||
Stock option exercises | 51,265 | 51,265 | ||||
Stock option exercises (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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,530,111 | |||||
Other comprehensive income | 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 | |||||
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 | 1,038,565 | 1,038,565 | ||||
Stock option exercises | 94,977 | (45,843) | 49,134 | |||
Stock option exercises (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 | |||||
Beginning Balance at Dec. 31, 2019 | 47,131,034 | 5,879,409 | (2,325,225) | 482,814 | $ 51,168,032 | |
Beginning Balance (in shares) at Dec. 31, 2019 | 5,530,001 | 5,530,001 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,521,131 | $ 1,521,131 | ||||
Other comprehensive income | 601,016 | 601,016 | ||||
Stock option exercises | 4,489 | 4,489 | ||||
Stock option exercises (in shares) | 362 | |||||
Stock-based compensation expense | 16,418 | 16,418 | ||||
Cash dividends | (884,859) | (884,859) | ||||
Ending Balance at Mar. 31, 2020 | 47,151,941 | 6,515,681 | (2,325,225) | 1,083,830 | 52,426,227 | |
Ending Balance (in shares) at Mar. 31, 2020 | 5,530,363 | |||||
Beginning Balance at Dec. 31, 2019 | 47,131,034 | 5,879,409 | (2,325,225) | 482,814 | $ 51,168,032 | |
Beginning Balance (in shares) at Dec. 31, 2019 | 5,530,001 | 5,530,001 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 3,022,154 | |||||
Other comprehensive income | 1,571,714 | |||||
Ending Balance at Jun. 30, 2020 | 47,290,003 | 7,131,796 | (2,515,472) | 2,054,528 | $ 53,960,855 | |
Ending Balance (in shares) at Jun. 30, 2020 | 5,530,682 | 5,530,682 | ||||
Beginning Balance at Mar. 31, 2020 | 47,151,941 | 6,515,681 | (2,325,225) | 1,083,830 | $ 52,426,227 | |
Beginning Balance (in shares) at Mar. 31, 2020 | 5,530,363 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,501,023 | 1,501,023 | ||||
Other comprehensive income | 970,698 | 970,698 | ||||
Stock option exercises | 108,757 | (41,697) | 67,060 | |||
Stock option exercises (in shares) | 9,619 | |||||
Stock-based compensation expense | 29,305 | 29,305 | ||||
Cash dividends | $ (9,300) | (148,550) | (148,550) | |||
Ending Balance at Jun. 30, 2020 | $ 47,290,003 | $ 7,131,796 | $ (2,515,472) | $ 2,054,528 | $ 53,960,855 | |
Ending Balance (in shares) at Jun. 30, 2020 | 5,530,682 | 5,530,682 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 3,022,154 | $ 3,530,111 |
Adjustments to reconcile net income net cash (used in) provided by operating activities: | ||
Depreciation expense | 210,774 | 109,132 |
Gain on sale of investment securities | (28,900) | |
Provision for loan losses | 145,000 | |
Stock-based compensation expense | 45,723 | 37,763 |
Deferred income taxes | (487,188) | (21,966) |
Net amortization of unearned discounts on investment securities available for sale | 94,805 | 140,730 |
Origination of mortgage loans held for sale | (69,441,770) | (27,140,026) |
Proceeds from sale of mortgage loans held for sale | 62,879,980 | 25,464,482 |
Increase in accrued interest receivable and other assets | (22,756) | (215,254) |
Increase in accrued interest payable and other liabilities | 548,019 | 599,626 |
Net cash (used in) provided by operating activities | (3,150,259) | 2,620,698 |
Cash flows from investing activities: | ||
Proceeds from calls and maturities of investment securities available for sale | 10,088,000 | 5,743,835 |
Proceeds from sale of investment securities available for sale | 14,952,500 | |
Purchase of investment securities available for sale | (16,650,000) | |
Net increase in loans | (35,727,873) | (9,412,146) |
Purchase of premises, equipment, and leasehold improvements, net | (81,720) | (463,239) |
Net cash (used in) provided by investing activities | (42,371,593) | 10,820,950 |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 94,505,522 | 1,431,517 |
Dividends paid | (1,769,658) | (1,709,314) |
Stock options exercised | 71,549 | 100,399 |
Share repurchases | (148,550) | |
Net cash provided by (used in) financing activities | 92,658,863 | (177,398) |
Net increase in cash and cash equivalents | 47,137,011 | 13,264,250 |
Cash and cash equivalents at the beginning of the period | 49,094,419 | 31,832,241 |
Cash and cash equivalents at the end of the period | 96,231,430 | 45,096,491 |
Cash paid during the period for: | ||
Interest | 207,880 | 589,058 |
Income taxes | 627,642 | |
Supplemental disclosures for non-cash investing and financing activity: | ||
Change in unrealized gain on securities available for sale, net of income taxes | (1,571,714) | (2,030,501) |
Change in dividends payable | 109 | 57,406 |
Right of use assets obtained in exchange for lease obligations | 7,334,079 | |
Change in right of use assets and lease liabilities | $ (237,443) | $ (115,435) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
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 6, 2020. 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 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 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 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 2018-17, 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 became effective for the Company on January 1, 2020 and did not have a material effect on the financial statements. In July 2019, the FASB updated various Topics of the ASC to align the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The amendments were effective upon issuance and did not have a material effect on the financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In January 2020, the FASB issued guidance to address accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. In February 2020, the FASB issued guidance to add and amend SEC paragraphs in the Accounting Standards Codification to reflect the issuance of SEC Staff Accounting Bulletin No. 119 related to the new credit losses standard and comments by the SEC staff related to the revised effective date of the new leases standard. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In March 2020, the FASB issued guidance that makes narrow-scope improvements to various aspects of the financial instrument guidance, including the current expected credit losses (CECL) guidance issued in 2016. The amendments related to conforming amendments. For public business entities, the amendments are effective upon issuance of this final ASU. The effective date of the amendments to ASU 2016-01 is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For the amendments related to ASU 2016-13, public business entities that meet the definition of an SEC filer, excluding eligible smaller reporting companies (SRCs) as defined by the SEC, should adopt the amendments in ASU 2016-13 during 2020. Early adoption will continue to be permitted. For entities that have not yet adopted the guidance in ASU 2016-13, the effective dates and the transition requirements for these amendments are the same as the effective date and transition requirements in ASU 2016-13. The Company does not expect these amendments to have a material effect on its financial statements. In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. 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, 2020 | |
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, 2020 Amortized Gross Gross Estimated U.S. Treasury Notes $ 23,058,684 $ 542,757 $ — $ 23,601,441 Government-Sponsored Enterprises 66,754,370 1,593,682 (9,967 ) 68,338,085 Municipal Securities 16,492,938 474,198 — 16,967,136 Total $ 106,305,992 $ 2,610,637 $ (9,967 ) $ 108,906,662 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 23,080,465 $ 99,735 $ — $ 23,180,200 Government-Sponsored Enterprises 50,139,959 401,336 (43,100 ) 50,498,195 Municipal Securities 26,618,375 169,640 (16,454 ) 26,771,561 Total $ 99,838,799 $ 670,711 $ (59,554 ) $ 100,449,956 The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2020 and December 31, 2019, by contractual maturity are in the following table. June 30, 2020 December 31, 2019 Amortized Estimated Amortized Estimated Due in one year or less $ 10,189,841 $ 10,320,371 $ 9,185,615 $ 9,191,226 Due in one year to five years 69,550,840 71,471,655 77,261,123 77,815,119 Due in five years to ten years 26,565,311 27,114,636 13,392,061 13,443,611 Due in ten years and over — — — — Total $ 106,305,992 $ 108,906,662 $ 99,838,799 $ 100,449,956 Securities pledged to secure deposits at both June 30, 2020 and December 31, 2019, had a fair value of $41.2 million and $37.6 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, 2020 and December 31, 2019. 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. June 30, 2020 Less Than 12 Months 12 Months or Longer Total # Fair Value Gross # Fair Value Gross # Fair Value Gross U.S. Treasury Notes — $ — $ — — $ — $ — — $ — $ — Government-Sponsored Enterprises 1 11,624,020 (9,967 ) — — — 1 11,624,020 (9,967 ) Municipal Securities — — — — — — — — — Total 1 $ 11,624,020 $ (9,967 ) — $ — $ — 1 $ 11,624,020 $ (9,967 ) December 31, 2019 Less Than 12 Months 12 Months or Longer Total Available for sale # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes — $ — $ — — $ — $ — — $ — $ — Government-Sponsored Enterprises 1 5,039,550 (43,100 ) — — — 1 5,039,550 (43,100 ) Municipal Securities 9 3,199,517 (13,335 ) 1 330,880 (3,119 ) 10 3,530,397 (16,454 ) Total 10 $ 8,239,067 $ (56,435 ) 1 $ 330,880 $ (3,119 ) 11 $ 8,569,947 $ (59,554 ) The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. Three Months Ended June 30, 2020 2019 Gross proceeds $ — $ 14,952,500 Gross realized gains — 59,512 Gross realized losses — (30,612 ) Six Months Ended June 30, 2020 2019 Gross proceeds $ — $ 14,952,500 Gross realized gains — 59,512 Gross realized losses — (30,612 ) There was no tax provision related to gains for the three and six months ended June 30, 2020. The tax provision related to these sales was $6,069 for the three and six months ended June 30, 2019. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2020 | |
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 and costs of $1,128,775 at June 30, 2020 and $155,697 at December 31, 2019, respectively) are as follows: June 30, 2020 December 31, 2019 Commercial $ 42,680,070 $ 52,848,455 Commercial Real Estate: Construction 14,301,901 12,491,078 Other 140,469,962 143,821,990 Consumer: Real Estate 71,183,544 59,533,045 Other 4,728,864 5,377,992 Paycheck Protection Program 36,542,964 — 309,907,305 274,072,560 Allowance for loan losses (4,110,630 ) (4,003,758 ) Loans, net $ 305,796,675 $ 270,068,802 We had $68.7 million and $85.2 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2020 and at December 31, 2019, respectively. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, which established the Paycheck Protection Program (“PPP”) and allocated $349.0 billion of loans to be issued by financial institutions. Under the program, the Small Business Administration (“SBA”) will forgive loans, in whole or in part, made by approved lenders to eligible borrowers for Paycheck and other permitted purposes in accordance with the requirements of the program. These loans carry a fixed rate of 1.00% and a term of two years, if not forgiven, in whole or in part. The loans are 100% guaranteed by the SBA and payments are deferred for the first six months of the loan. The Bank receives a processing fee ranging from 1% to 5% based on the size of the loan from the SBA. The Paycheck Protection Program and Health Care Enhancement Act (“PPP/ HCEA Act”) was signed into law on April 24, 2020. The PPP/HCEA Act authorized additional funding under the CARES Act of $310.0 billion for PPP loans to be issued by financial institutions through the SBA. The Bank has provided $36.5 million in funding to 266 customers through the PPP as of June 30, 2020. Because these loans are 100% guaranteed by the SBA and did not undergo the Bank’s typical underwriting process, they are not graded and do not have an associated reserve. 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, with the exception of the PPP loans. 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, 2020 and December 31, 2019. “Pass” includes loans internally graded as excellent, good and satisfactory. June 30, 2020 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 35,665,736 $ 13,461,039 $ 118,080,815 $ 68,776,698 $ 4,430,294 $ — $ 240,414,582 Watch 4,701,530 840,862 20,069,519 869,152 219,765 — 26,700,828 OAEM 388,727 — 238,227 622,731 36,909 — 1,286,594 Substandard 1,924,077 — 2,081,401 914,963 41,896 — 4,962,337 Doubtful — — — — — — — Loss — — — — — — — Unrated — — — — — 36,542,964 36,542,964 Total $ 42,680,070 $ 14,301,901 $ 140,469,962 $ 71,183,544 $ 4,728,864 $ 36,542,964 $ 309,907,305 December 31, 2019 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 48,098,936 $ 12,005,834 $ 137,641,011 $ 56,034,247 $ 4,966,615 $ — $ 258,746,643 Watch 2,303,568 485,244 3,758,220 2,096,445 315,375 — 8,958,852 OAEM 460,551 — 649,039 522,600 44,232 — 1,676,422 Substandard 1,985,400 — 1,773,720 879,753 51,770 — 4,690,643 Doubtful — — — — — — — Loss — — — — — — — Unrated — — — — — — — Total $ 52,848,455 $ 12,491,078 $ 143,821,990 $ 59,533,045 $ 5,377,992 $ — $ 274,072,560 The following tables include an aging analysis of the recorded investment in loans segregated by class. June 30, 2020 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ — $ 210,121 $ — $ 210,121 $ 42,469,949 $ 42,680,070 $ — Commercial Real Estate Construction — — — — 14,301,901 14,301,901 — Commercial Real Estate Other 335,448 423,170 638,139 1,396,757 139,073,205 140,469,962 — Consumer Real Estate — — 665,114 665,114 70,518,430 71,183,544 — Consumer Other — 2,560 — 2,560 4,726,304 4,728,864 — Paycheck Protection Program — — — — 36,542,964 36,542,964 — Total $ 335,448 $ 635,851 $ 1,303,253 $ 2,274,552 $ 307,632,753 $ 309,907,305 $ — December 31, 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 $ 39,329 $ — $ 178,975 $ 218,304 $ 52,630,151 $ 52,848,455 $ — Commercial Real Estate Construction — — — — 12,491,078 12,491,078 — Commercial Real Estate Other 620,837 300,240 582,419 1,503,496 142,318,494 143,821,990 — Consumer Real Estate — 2,965 629,999 632,964 58,900,081 59,533,045 — Consumer Other 32,842 — — 32,842 5,345,150 5,377,992 — Paycheck Protection Program — — — — — — — Total $ 693,008 $ 303,205 $ 1,391,393 $ 2,387,606 $ 271,684,954 $ 274,072,560 $ — There were no loans over 90 days past due and still accruing as of June 30, 2020 and December 31, 2019. The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual June 30, 2020 December 31, 2019 Commercial $ 190,751 $ 178,975 Commercial Real Estate Construction — — Commercial Real Estate Other 912,067 857,327 Consumer Real Estate 665,114 629,999 Consumer Other 13,450 — Paycheck Protection Program — — Total $ 1,781,382 $ 1,666,301 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, 2020 and 2019. 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, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 1,416,267 $ 123,069 $ 1,212,647 $ 562,000 $ 700,230 $ — $ 4,014,213 Charge-offs — — — — (76,410 ) — (76,410 ) Recoveries 71,511 — 99,801 — 1,515 — 172,827 Provisions (469,228 ) 27,738 164,571 321,300 (44,381 ) — — Ending balance $ 1,018,550 $ 150,807 $ 1,477,019 $ 883,300 $ 580,954 $ — $ 4,110,630 Six Months Ended June 30, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 1,429,917 $ 109,235 $ 1,270,445 $ 496,221 $ 697,940 $ — $ 4,003,758 Charge-offs — — — — (116,002 ) — (116,002 ) Recoveries 87,011 — 99,801 — 36,062 — 222,874 Provisions (498,378 ) 41,572 106,773 387,079 (37,046 ) — — Ending balance $ 1,018,550 $ 150,807 $ 1,477,019 $ 883,300 $ 580,954 $ — $ 4,110,630 Three Months Ended June 30, 2019 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program 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 Paycheck Protection Program 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 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, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 466,463 $ — $ 29,199 $ 170,794 $ — $ — $ 666,456 Collectively evaluated for impairment 552,087 150,807 1,447,820 712,506 580,954 — 3,444,174 Total Allowance for Loan Losses $ 1,018,550 $ 150,807 $ 1,477,019 $ 883,300 $ 580,954 $ — $ 4,110,630 Loans Receivable Individually evaluated for impairment $ 1,924,077 $ — $ 2,084,973 $ 914,964 $ 41,896 $ — $ 4,965,910 Collectively evaluated for impairment 40,755,993 14,301,901 138,384,989 70,268,580 4,686,968 36,542,964 304,941,395 Total Loans Receivable $ 42,680,070 $ 14,301,901 $ 140,469,962 $ 71,183,544 $ 4,728,864 $ 36,542,964 $ 309,907,305 December 31, 2019 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 683,278 $ — $ 1,782 $ — $ 90 $ — $ 685,150 Collectively evaluated for impairment 746,639 109,235 1,268,663 496,221 697,850 — 3,318,608 Total Allowance for Loan Losses $ 1,429,917 $ 109,235 $ 1,270,445 $ 496,221 $ 697,940 $ — $ 4,003,758 Loans Receivable Individually evaluated for impairment $ 2,065,732 $ — $ 1,679,872 $ 879,753 $ 51,770 $ — $ 4,677,127 Collectively evaluated for impairment 50,782,723 12,491,078 142,142,118 58,653,292 5,326,222 — 269,395,433 Total Loans Receivable $ 52,848,455 $ 12,491,078 $ 143,821,990 $ 59,533,045 $ 5,377,992 $ — $ 274,072,560 As of June 30, 2020 and December 31, 2019, loans individually evaluated and considered impaired are presented in the following table. Impaired Loans as of June 30, 2020 December 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 956,102 $ 956,102 $ — $ 1,355,875 $ 1,355,875 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,749,438 1,749,438 — 1,432,988 1,432,988 — Consumer Real Estate 249,850 249,850 — 879,753 879,753 — Consumer Other 41,896 41,896 — — — — Paycheck Protection Program — — — — — — Total 2,997,286 2,997,286 — 3,668,616 3,668,616 — With an allowance recorded: Commercial 967,975 967,975 466,463 709,857 709,857 683,278 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 435,336 335,535 29,199 346,685 246,884 1,782 Consumer Real Estate 665,114 665,114 170,794 — — — Consumer Other — — — 51,770 51,770 90 Paycheck Protection Program — — — — — — Total 2,068,425 1,968,624 666,456 1,108,312 1,008,511 685,150 Commercial 1,924,077 1,924,077 466,463 2,065,732 2,065,732 683,278 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 2,184,774 2,084,973 29,199 1,779,673 1,679,872 1,782 Consumer Real Estate 914,964 914,964 170,794 879,753 879,753 — Consumer Other 41,896 41,896 — 51,770 51,770 90 Paycheck Protection Program — — — — — — Total $ 5,065,711 $ 4,965,910 $ 666,456 $ 4,776,928 $ 4,677,127 $ 685,150 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, 2020 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 960,398 $ 14,480 $ 117,741 $ 2,071 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,752,669 21,646 863,351 10,354 Consumer Real Estate 249,800 2,647 879,753 14,257 Consumer Other 42,163 683 — — Paycheck Protection Program — — — — 3,005,030 39,456 1,860,845 26,682 With an allowance recorded: Commercial 1,052,358 11,434 1,582,324 25,869 Commercial Real Estate Construction — — — — Commercial Real Estate Other 235,734 — 501,279 2,735 Consumer Real Estate 665,058 — — — Consumer Other — — 17,108 224 Paycheck Protection Program — — — — 1,953,150 11,434 2,100,711 28,828 Total Commercial 2,012,756 25,914 1,700,065 27,940 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,988,403 21,646 1,364,630 13,089 Consumer Real Estate 914,858 2,647 879,753 14,257 Consumer Other 42,163 683 17,108 224 Paycheck Protection Program — — — — $ 4,958,180 $ 50,890 $ 3,961,556 $ 55,510 Six Months Ended June 30, 2020 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 1,024,907 $ 29,570 $ 123,509 $ 4,334 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,772,945 37,824 967,076 20,700 Consumer Real Estate 249,754 6,472 879,753 28,357 Consumer Other 43,903 1,342 — — Paycheck Protection Program — — — — 3,091,509 75,208 1,970,338 53,391 With an allowance recorded: Commercial 1,184,428 26,662 1,597,013 51,983 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 229,149 — 403,001 5,498 Consumer Real Estate 664,701 — — — Consumer Other — — 18,279 478 Paycheck Protection Program — — — — 2,078,278 26,662 2,018,293 57,959 Total Commercial 2,209,335 56,232 1,720,522 56,317 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 2,002,094 37,824 1,370,077 26,198 Consumer Real Estate 914,455 6,472 879,753 28,357 Consumer Other 43,903 1,342 18,279 478 Paycheck Protection Program — — — — $ 5,169,787 $ 101,870 $ 3,988,631 $ 111,350 In general, the modification or restructuring of a loan is considered a troubled debt restructuring (“TDR”) if we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise consider. As of June 30, 2020, there were 6 TDRs with a balance of $1.7 million compared to 3 TDRs with a balance of $573,473 as of December 31, 2019. These TDRs were granted extended payment terms with no principal reduction. The structure of two of the loans changed to interest only. All TDRs were performing as agreed as of June 30, 2020. No TDRs defaulted during the three and six months ended June 30, 2020 and 2019, which were modified within the previous twelve months. Regulatory agencies, as set forth in the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (initially issued on March 22, 2020 and revised on April 7, 2020), have encouraged financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of the effects of COVID-19. In this statement, the regulatory agencies expressed their view of loan modification programs as positive actions that may mitigate adverse effects on borrowers due to COVID-19 and that the agencies will not criticize institutions for working with borrowers in a safe and sound manner. Moreover, the revised statement provides that eligible loan modifications related to COVID-19 may be accounted for under section 4013 of the CARES Act or in accordance with ASC 310-40. Under Section 4013 of the CARES Act, banks may elect not to categorize loan modifications as TDRs if the modifications are related to COVID-19, executed on a loan that was not more than 30 days past due as of December 31, 2019, and executed between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the date of termination of the National Emergency. All short term loan modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not considered TDRs. Beginning in March 2020, the Bank provided payment accommodations to customers, consisting of 60-day principal deferral to borrowers negatively impacted by COVID-19. The Bank processed approximately $0.6 million in principal deferments to 80 customers during the six months ended June 30, 2020. This represents 0.18% of our total loan portfolio as of June 30, 2020. The Bank has examined the payment accommodations granted to borrowers in response to COVID-19 and found that all borrowers were current prior to relief and were not experiencing financial difficulty prior to COVID-19. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 4: Leases As of June 30, 2020 and December 31, 2019, the Company had operating right of use (“ROU”) assets of $13.0 million and $13.2 million, respectively, and operating lease liabilities of $13.0 million and $13.2 million, respectively. The Company maintains operating leases on land, branch facilities, and parking. Most of the leases include one or more options to renew, with renewal terms extending up to 20 years. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized in lease expense. The weighted average remaining lease term is 17.56 years. The weighted average incremental borrowing rate is 4.34%. The table below shows lease expense components for the three months ended June 30, 2020. Lease Expense Components Operating lease expense $ 250,121 Short-term lease expense — Total lease expense $ 250,121 The table below shows lease expense components for the six months ended June 30, 2020. Lease Expense Components Operating lease expense $ 484,080 Short-term lease expense — Total lease expense $ 484,080 Total rental expense was $250,121 and $161,867 for the three months ended June 30, 2020 and 2019, respectively, and $484,080 and $317,859 for the six months ended June 30, 2020 and 2019, respectively, and was included in net occupancy expense within the consolidated statements of income. As of June 30, 2020 and December 31, 2019, we did not maintain any finance leases and we determined that the number and dollar amount of equipment leases was immaterial. As of June 30, 2020 and December 31, 2019, we have no additional operating leases that have not yet commenced. |
Disclosure Regarding Fair Value
Disclosure Regarding Fair Value of Financial Statements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Disclosure Regarding Fair Value of Financial Statements | Note 5: 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, 2020 and December 31, 2019. Assets and liabilities measured at fair value on a recurring basis at June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 23,601,441 $ — $ — $ 23,601,441 Government-Sponsored Enterprises — 68,338,085 — 68,338,085 Municipal Securities — 10,880,794 6,086,342 16,967,136 Total $ 23,601,441 $ 79,218,879 $ 6,086,342 $ 108,906,662 December 31, 2019 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 23,180,200 $ — $ — $ 23,180,200 Government-Sponsored Enterprises — 50,498,195 — 50,498,195 Municipal Securities — 14,817,110 11,954,451 26,771,561 Total $ 23,180,200 $ 65,315,305 $ 11,954,451 $ 100,449,956 There were no liabilities recorded at fair value on a recurring basis as of June 30, 2020 or December 31, 2019. 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, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Beginning balance $ 6,403,720 $ 5,738,618 $ 11,954,451 $ 6,241,955 Total gains or (losses) (realized/unrealized) Included in other comprehensive income 81,622 44,734 109,891 101,397 Purchases, issuances, and settlements net of maturities (399,000 ) (1,248,835 ) (5,978,000 ) (1,808,835 ) Ending balance $ 6,086,342 $ 4,534,517 $ 6,086,342 $ 4,534,517 There were no transfers between fair value levels during the three and six months ended June 30, 2020 or 2019. 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. The Bank does not have any OREO as of June 30, 2020 or December 31, 2019. 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 measured at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019: June 30, 2020 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,799,944 $ 2,799,944 Mortgage loans to be sold — 11,624,188 — 11,624,188 Total $ — $ 11,624,188 $ 2,799,944 $ 14,424,132 December 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,657,644 $ 2,657,644 Mortgage loans to be sold — 5,062,398 — 5,062,398 Total $ — $ 5,062,398 $ 2,657,644 $ 7,720,042 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2020 or December 31, 2019. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2020 and December 31, 2019: 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 Accounting standards require disclosure of fair value information for all of our assets and liabilities that are considered financial instruments, whether or not recognized on the balance sheet, for which it is practicable to estimate fair value. Under the accounting standard, fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of the assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts of existing financial instruments do not represent the underlying value of those instruments on our books. The following paragraphs describe the methods and assumptions we use in estimating the fair values of financial instruments: a. Cash and due from banks, interest-bearing deposits at the Federal Reserve The carrying value approximates fair value. All mature within 90 days and do not present unanticipated credit concerns. b. Investment securities available for sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. c. Loans, net 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 three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. f. Loan commitments Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of June 30, 2020 and December 31, 2019. Fair Value Measurements at June 30, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 6,886,753 $ 6,886,753 $ 6,886,753 $ — $ — Interest-bearing deposits at the Federal Reserve 89,344,677 89,344,677 89,344,677 — — Investment securities available for sale 108,906,662 108,906,662 23,601,441 79,218,879 6,086,342 Mortgage loans to be sold 11,624,188 11,624,188 — 11,624,188 — Loans, net 305,796,675 298,879,296 — — 298,879,296 Accrued interest receivable 1,332,528 1,332,528 — 1,332,528 — Financial Liabilities: Demand deposits 452,451,437 452,451,437 — 452,451,437 — Time deposits 21,245,740 23,478,635 — 23,478,635 — Accrued interest payable 29,492 29,492 — 29,492 — Fair Value Measurements at December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,773,893 $ 9,773,893 $ 9,773,893 $ — $ — Interest-bearing deposits at the Federal Reserve 39,320,526 39,320,526 39,320,526 — — Investment securities available for sale 100,449,956 100,449,956 23,180,200 65,315,305 11,954,451 Mortgage loans to be sold 5,062,398 5,062,398 — 5,062,398 — Loans, net 270,068,802 271,736,572 — — 271,736,572 Accrued interest receivable 1,309,772 1,309,772 — 1,309,772 — Financial Liabilities: Demand deposits 357,008,868 357,008,868 — 357,008,868 — Time deposits 22,182,787 21,962,039 — 21,962,039 — Accrued interest payable 38,748 38,748 — 38,748 — |
Income Per Common Share
Income Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | Note 6: Income Per Common Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. The following table is a summary of the reconciliation of weighted average shares outstanding for the three months ended June 30: 2020 2019 Net income $ 1,501,023 $ 1,840,847 Weighted average shares outstanding 5,529,632 5,517,236 Effect of dilutive shares 184,489 70,749 Weighted average shares outstanding - diluted 5,714,121 5,587,985 Earnings per share - basic $ 0.27 $ 0.33 Earnings per share - diluted $ 0.26 $ 0.33 The following table is a summary of the reconciliation of weighted average shares outstanding for the six months ended June 30: 2020 2019 Net income $ 3,022,154 $ 3,530,111 Weighted average shares outstanding 5,529,944 5,515,832 Effect of dilutive shares 178,774 70,981 Weighted average shares outstanding - diluted 5,708,718 5,586,813 Earnings per share - basic $ 0.55 $ 0.64 Earnings per share - diluted $ 0.53 $ 0.63 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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 6, 2020. 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 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 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 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 2018-17, 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 became effective for the Company on January 1, 2020 and did not have a material effect on the financial statements. In July 2019, the FASB updated various Topics of the ASC to align the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. The amendments were effective upon issuance and did not have a material effect on the financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In January 2020, the FASB issued guidance to address accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. In February 2020, the FASB issued guidance to add and amend SEC paragraphs in the Accounting Standards Codification to reflect the issuance of SEC Staff Accounting Bulletin No. 119 related to the new credit losses standard and comments by the SEC staff related to the revised effective date of the new leases standard. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In March 2020, the FASB issued guidance that makes narrow-scope improvements to various aspects of the financial instrument guidance, including the current expected credit losses (CECL) guidance issued in 2016. The amendments related to conforming amendments. For public business entities, the amendments are effective upon issuance of this final ASU. The effective date of the amendments to ASU 2016-01 is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For the amendments related to ASU 2016-13, public business entities that meet the definition of an SEC filer, excluding eligible smaller reporting companies (SRCs) as defined by the SEC, should adopt the amendments in ASU 2016-13 during 2020. Early adoption will continue to be permitted. For entities that have not yet adopted the guidance in ASU 2016-13, the effective dates and the transition requirements for these amendments are the same as the effective date and transition requirements in ASU 2016-13. The Company does not expect these amendments to have a material effect on its financial statements. In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. 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, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and 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, 2020 Amortized Gross Gross Estimated U.S. Treasury Notes $ 23,058,684 $ 542,757 $ — $ 23,601,441 Government-Sponsored Enterprises 66,754,370 1,593,682 (9,967 ) 68,338,085 Municipal Securities 16,492,938 474,198 — 16,967,136 Total $ 106,305,992 $ 2,610,637 $ (9,967 ) $ 108,906,662 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 23,080,465 $ 99,735 $ — $ 23,180,200 Government-Sponsored Enterprises 50,139,959 401,336 (43,100 ) 50,498,195 Municipal Securities 26,618,375 169,640 (16,454 ) 26,771,561 Total $ 99,838,799 $ 670,711 $ (59,554 ) $ 100,449,956 |
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, 2020 and December 31, 2019, by contractual maturity are in the following table. June 30, 2020 December 31, 2019 Amortized Estimated Amortized Estimated Due in one year or less $ 10,189,841 $ 10,320,371 $ 9,185,615 $ 9,191,226 Due in one year to five years 69,550,840 71,471,655 77,261,123 77,815,119 Due in five years to ten years 26,565,311 27,114,636 13,392,061 13,443,611 Due in ten years and over — — — — Total $ 106,305,992 $ 108,906,662 $ 99,838,799 $ 100,449,956 |
Schedule of investment securities gross unrealized losses on investment securities and the fair market value of the related securities | 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. June 30, 2020 Less Than 12 Months 12 Months or Longer Total # Fair Value Gross # Fair Value Gross # Fair Value Gross U.S. Treasury Notes — $ — $ — — $ — $ — — $ — $ — Government-Sponsored Enterprises 1 11,624,020 (9,967 ) — — — 1 11,624,020 (9,967 ) Municipal Securities — — — — — — — — — Total 1 $ 11,624,020 $ (9,967 ) — $ — $ — 1 $ 11,624,020 $ (9,967 ) December 31, 2019 Less Than 12 Months 12 Months or Longer Total Available for sale # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes — $ — $ — — $ — $ — — $ — $ — Government-Sponsored Enterprises 1 5,039,550 (43,100 ) — — — 1 5,039,550 (43,100 ) Municipal Securities 9 3,199,517 (13,335 ) 1 330,880 (3,119 ) 10 3,530,397 (16,454 ) Total 10 $ 8,239,067 $ (56,435 ) 1 $ 330,880 $ (3,119 ) 11 $ 8,569,947 $ (59,554 ) |
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, 2020 2019 Gross proceeds $ — $ 14,952,500 Gross realized gains — 59,512 Gross realized losses — (30,612 ) Six Months Ended June 30, 2020 2019 Gross proceeds $ — $ 14,952,500 Gross realized gains — 59,512 Gross realized losses — (30,612 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of major classifications of loans | Major classifications of loans (net of deferred loan fees and costs of $1,128,775 at June 30, 2020 and $155,697 at December 31, 2019, respectively) are as follows: June 30, 2020 December 31, 2019 Commercial $ 42,680,070 $ 52,848,455 Commercial Real Estate: Construction 14,301,901 12,491,078 Other 140,469,962 143,821,990 Consumer: Real Estate 71,183,544 59,533,045 Other 4,728,864 5,377,992 Paycheck Protection Program 36,542,964 — 309,907,305 274,072,560 Allowance for loan losses (4,110,630 ) (4,003,758 ) Loans, net $ 305,796,675 $ 270,068,802 |
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, 2020 and December 31, 2019. “Pass” includes loans internally graded as excellent, good and satisfactory. June 30, 2020 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 35,665,736 $ 13,461,039 $ 118,080,815 $ 68,776,698 $ 4,430,294 $ — $ 240,414,582 Watch 4,701,530 840,862 20,069,519 869,152 219,765 — 26,700,828 OAEM 388,727 — 238,227 622,731 36,909 — 1,286,594 Substandard 1,924,077 — 2,081,401 914,963 41,896 — 4,962,337 Doubtful — — — — — — — Loss — — — — — — — Unrated — — — — — 36,542,964 36,542,964 Total $ 42,680,070 $ 14,301,901 $ 140,469,962 $ 71,183,544 $ 4,728,864 $ 36,542,964 $ 309,907,305 December 31, 2019 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 48,098,936 $ 12,005,834 $ 137,641,011 $ 56,034,247 $ 4,966,615 $ — $ 258,746,643 Watch 2,303,568 485,244 3,758,220 2,096,445 315,375 — 8,958,852 OAEM 460,551 — 649,039 522,600 44,232 — 1,676,422 Substandard 1,985,400 — 1,773,720 879,753 51,770 — 4,690,643 Doubtful — — — — — — — Loss — — — — — — — Unrated — — — — — — — Total $ 52,848,455 $ 12,491,078 $ 143,821,990 $ 59,533,045 $ 5,377,992 $ — $ 274,072,560 |
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, 2020 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ — $ 210,121 $ — $ 210,121 $ 42,469,949 $ 42,680,070 $ — Commercial Real Estate Construction — — — — 14,301,901 14,301,901 — Commercial Real Estate Other 335,448 423,170 638,139 1,396,757 139,073,205 140,469,962 — Consumer Real Estate — — 665,114 665,114 70,518,430 71,183,544 — Consumer Other — 2,560 — 2,560 4,726,304 4,728,864 — Paycheck Protection Program — — — — 36,542,964 36,542,964 — Total $ 335,448 $ 635,851 $ 1,303,253 $ 2,274,552 $ 307,632,753 $ 309,907,305 $ — December 31, 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 $ 39,329 $ — $ 178,975 $ 218,304 $ 52,630,151 $ 52,848,455 $ — Commercial Real Estate Construction — — — — 12,491,078 12,491,078 — Commercial Real Estate Other 620,837 300,240 582,419 1,503,496 142,318,494 143,821,990 — Consumer Real Estate — 2,965 629,999 632,964 58,900,081 59,533,045 — Consumer Other 32,842 — — 32,842 5,345,150 5,377,992 — Paycheck Protection Program — — — — — — — Total $ 693,008 $ 303,205 $ 1,391,393 $ 2,387,606 $ 271,684,954 $ 274,072,560 $ — |
Schedule of non-accrual loans | The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual June 30, 2020 December 31, 2019 Commercial $ 190,751 $ 178,975 Commercial Real Estate Construction — — Commercial Real Estate Other 912,067 857,327 Consumer Real Estate 665,114 629,999 Consumer Other 13,450 — Paycheck Protection Program — — Total $ 1,781,382 $ 1,666,301 |
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, 2020 and 2019. 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, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 1,416,267 $ 123,069 $ 1,212,647 $ 562,000 $ 700,230 $ — $ 4,014,213 Charge-offs — — — — (76,410 ) — (76,410 ) Recoveries 71,511 — 99,801 — 1,515 — 172,827 Provisions (469,228 ) 27,738 164,571 321,300 (44,381 ) — — Ending balance $ 1,018,550 $ 150,807 $ 1,477,019 $ 883,300 $ 580,954 $ — $ 4,110,630 Six Months Ended June 30, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 1,429,917 $ 109,235 $ 1,270,445 $ 496,221 $ 697,940 $ — $ 4,003,758 Charge-offs — — — — (116,002 ) — (116,002 ) Recoveries 87,011 — 99,801 — 36,062 — 222,874 Provisions (498,378 ) 41,572 106,773 387,079 (37,046 ) — — Ending balance $ 1,018,550 $ 150,807 $ 1,477,019 $ 883,300 $ 580,954 $ — $ 4,110,630 Three Months Ended June 30, 2019 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program 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 Paycheck Protection Program 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 |
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, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 466,463 $ — $ 29,199 $ 170,794 $ — $ — $ 666,456 Collectively evaluated for impairment 552,087 150,807 1,447,820 712,506 580,954 — 3,444,174 Total Allowance for Loan Losses $ 1,018,550 $ 150,807 $ 1,477,019 $ 883,300 $ 580,954 $ — $ 4,110,630 Loans Receivable Individually evaluated for impairment $ 1,924,077 $ — $ 2,084,973 $ 914,964 $ 41,896 $ — $ 4,965,910 Collectively evaluated for impairment 40,755,993 14,301,901 138,384,989 70,268,580 4,686,968 36,542,964 304,941,395 Total Loans Receivable $ 42,680,070 $ 14,301,901 $ 140,469,962 $ 71,183,544 $ 4,728,864 $ 36,542,964 $ 309,907,305 December 31, 2019 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 683,278 $ — $ 1,782 $ — $ 90 $ — $ 685,150 Collectively evaluated for impairment 746,639 109,235 1,268,663 496,221 697,850 — 3,318,608 Total Allowance for Loan Losses $ 1,429,917 $ 109,235 $ 1,270,445 $ 496,221 $ 697,940 $ — $ 4,003,758 Loans Receivable Individually evaluated for impairment $ 2,065,732 $ — $ 1,679,872 $ 879,753 $ 51,770 $ — $ 4,677,127 Collectively evaluated for impairment 50,782,723 12,491,078 142,142,118 58,653,292 5,326,222 — 269,395,433 Total Loans Receivable $ 52,848,455 $ 12,491,078 $ 143,821,990 $ 59,533,045 $ 5,377,992 $ — $ 274,072,560 |
Schedule of loans individually evaluated for impairment and the corresponding allowance for loan losses | As of June 30, 2020 and December 31, 2019, loans individually evaluated and considered impaired are presented in the following table. Impaired Loans as of June 30, 2020 December 31, 2019 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 956,102 $ 956,102 $ — $ 1,355,875 $ 1,355,875 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,749,438 1,749,438 — 1,432,988 1,432,988 — Consumer Real Estate 249,850 249,850 — 879,753 879,753 — Consumer Other 41,896 41,896 — — — — Paycheck Protection Program — — — — — — Total 2,997,286 2,997,286 — 3,668,616 3,668,616 — With an allowance recorded: Commercial 967,975 967,975 466,463 709,857 709,857 683,278 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 435,336 335,535 29,199 346,685 246,884 1,782 Consumer Real Estate 665,114 665,114 170,794 — — — Consumer Other — — — 51,770 51,770 90 Paycheck Protection Program — — — — — — Total 2,068,425 1,968,624 666,456 1,108,312 1,008,511 685,150 Commercial 1,924,077 1,924,077 466,463 2,065,732 2,065,732 683,278 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 2,184,774 2,084,973 29,199 1,779,673 1,679,872 1,782 Consumer Real Estate 914,964 914,964 170,794 879,753 879,753 — Consumer Other 41,896 41,896 — 51,770 51,770 90 Paycheck Protection Program — — — — — — Total $ 5,065,711 $ 4,965,910 $ 666,456 $ 4,776,928 $ 4,677,127 $ 685,150 |
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, 2020 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 960,398 $ 14,480 $ 117,741 $ 2,071 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,752,669 21,646 863,351 10,354 Consumer Real Estate 249,800 2,647 879,753 14,257 Consumer Other 42,163 683 — — Paycheck Protection Program — — — — 3,005,030 39,456 1,860,845 26,682 With an allowance recorded: Commercial 1,052,358 11,434 1,582,324 25,869 Commercial Real Estate Construction — — — — Commercial Real Estate Other 235,734 — 501,279 2,735 Consumer Real Estate 665,058 — — — Consumer Other — — 17,108 224 Paycheck Protection Program — — — — 1,953,150 11,434 2,100,711 28,828 Total Commercial 2,012,756 25,914 1,700,065 27,940 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,988,403 21,646 1,364,630 13,089 Consumer Real Estate 914,858 2,647 879,753 14,257 Consumer Other 42,163 683 17,108 224 Paycheck Protection Program — — — — $ 4,958,180 $ 50,890 $ 3,961,556 $ 55,510 Six Months Ended June 30, 2020 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 1,024,907 $ 29,570 $ 123,509 $ 4,334 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 1,772,945 37,824 967,076 20,700 Consumer Real Estate 249,754 6,472 879,753 28,357 Consumer Other 43,903 1,342 — — Paycheck Protection Program — — — — 3,091,509 75,208 1,970,338 53,391 With an allowance recorded: Commercial 1,184,428 26,662 1,597,013 51,983 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 229,149 — 403,001 5,498 Consumer Real Estate 664,701 — — — Consumer Other — — 18,279 478 Paycheck Protection Program — — — — 2,078,278 26,662 2,018,293 57,959 Total Commercial 2,209,335 56,232 1,720,522 56,317 Commercial Real Estate - Construction — — — — Commercial Real Estate - Other 2,002,094 37,824 1,370,077 26,198 Consumer Real Estate 914,455 6,472 879,753 28,357 Consumer Other 43,903 1,342 18,279 478 Paycheck Protection Program — — — — $ 5,169,787 $ 101,870 $ 3,988,631 $ 111,350 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of lease expense components | The table below shows lease expense components for the three months ended June 30, 2020. Lease Expense Components Operating lease expense $ 250,121 Short-term lease expense — Total lease expense $ 250,121 The table below shows lease expense components for the six months ended June 30, 2020. Lease Expense Components Operating lease expense $ 484,080 Short-term lease expense — Total lease expense $ 484,080 |
Disclosure Regarding Fair Val_2
Disclosure Regarding Fair Value of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 and December 31, 2019 are as follows: June 30, 2020 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 23,601,441 $ — $ — $ 23,601,441 Government-Sponsored Enterprises — 68,338,085 — 68,338,085 Municipal Securities — 10,880,794 6,086,342 16,967,136 Total $ 23,601,441 $ 79,218,879 $ 6,086,342 $ 108,906,662 December 31, 2019 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 23,180,200 $ — $ — $ 23,180,200 Government-Sponsored Enterprises — 50,498,195 — 50,498,195 Municipal Securities — 14,817,110 11,954,451 26,771,561 Total $ 23,180,200 $ 65,315,305 $ 11,954,451 $ 100,449,956 |
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, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Beginning balance $ 6,403,720 $ 5,738,618 $ 11,954,451 $ 6,241,955 Total gains or (losses) (realized/unrealized) Included in other comprehensive income 81,622 44,734 109,891 101,397 Purchases, issuances, and settlements net of maturities (399,000 ) (1,248,835 ) (5,978,000 ) (1,808,835 ) Ending balance $ 6,086,342 $ 4,534,517 $ 6,086,342 $ 4,534,517 |
Schedule of certain assets measured at fair value on a nonrecurring basis | The following table presents information about certain assets measured at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019: June 30, 2020 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,799,944 $ 2,799,944 Mortgage loans to be sold — 11,624,188 — 11,624,188 Total $ — $ 11,624,188 $ 2,799,944 $ 14,424,132 December 31, 2019 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 2,657,644 $ 2,657,644 Mortgage loans to be sold — 5,062,398 — 5,062,398 Total $ — $ 5,062,398 $ 2,657,644 $ 7,720,042 |
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, 2020 and December 31, 2019: 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 |
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, 2020 and December 31, 2019. Fair Value Measurements at June 30, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 6,886,753 $ 6,886,753 $ 6,886,753 $ — $ — Interest-bearing deposits at the Federal Reserve 89,344,677 89,344,677 89,344,677 — — Investment securities available for sale 108,906,662 108,906,662 23,601,441 79,218,879 6,086,342 Mortgage loans to be sold 11,624,188 11,624,188 — 11,624,188 — Loans, net 305,796,675 298,879,296 — — 298,879,296 Accrued interest receivable 1,332,528 1,332,528 — 1,332,528 — Financial Liabilities: Demand deposits 452,451,437 452,451,437 — 452,451,437 — Time deposits 21,245,740 23,478,635 — 23,478,635 — Accrued interest payable 29,492 29,492 — 29,492 — Fair Value Measurements at December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,773,893 $ 9,773,893 $ 9,773,893 $ — $ — Interest-bearing deposits at the Federal Reserve 39,320,526 39,320,526 39,320,526 — — Investment securities available for sale 100,449,956 100,449,956 23,180,200 65,315,305 11,954,451 Mortgage loans to be sold 5,062,398 5,062,398 — 5,062,398 — Loans, net 270,068,802 271,736,572 — — 271,736,572 Accrued interest receivable 1,309,772 1,309,772 — 1,309,772 — Financial Liabilities: Demand deposits 357,008,868 357,008,868 — 357,008,868 — Time deposits 22,182,787 21,962,039 — 21,962,039 — Accrued interest payable 38,748 38,748 — 38,748 — |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of average shares outstanding | The following table is a summary of the reconciliation of weighted average shares outstanding for the three months ended June 30: 2020 2019 Net income $ 1,501,023 $ 1,840,847 Weighted average shares outstanding 5,529,632 5,517,236 Effect of dilutive shares 184,489 70,749 Weighted average shares outstanding - diluted 5,714,121 5,587,985 Earnings per share - basic $ 0.27 $ 0.33 Earnings per share - diluted $ 0.26 $ 0.33 The following table is a summary of the reconciliation of weighted average shares outstanding for the six months ended June 30: 2020 2019 Net income $ 3,022,154 $ 3,530,111 Weighted average shares outstanding 5,529,944 5,515,832 Effect of dilutive shares 178,774 70,981 Weighted average shares outstanding - diluted 5,708,718 5,586,813 Earnings per share - basic $ 0.55 $ 0.64 Earnings per share - diluted $ 0.53 $ 0.63 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | $ 106,305,992 | $ 99,838,799 |
Gross Unrealized Gains | 2,610,637 | 670,711 |
Gross Unrealized Losses | (9,967) | (59,554) |
Estimated Fair Value | 108,906,662 | 100,449,956 |
U.S. Treasury Notes [Member] | ||
Amortized Cost | 23,058,684 | 23,080,465 |
Gross Unrealized Gains | 542,757 | 99,735 |
Estimated Fair Value | 23,601,441 | 23,180,200 |
Government-Sponsored Enterprises [Member] | ||
Amortized Cost | 66,754,370 | 50,139,959 |
Gross Unrealized Gains | 1,593,682 | 401,336 |
Gross Unrealized Losses | (9,967) | (43,100) |
Estimated Fair Value | 68,338,085 | 50,498,195 |
Municipal Securities [Member] | ||
Amortized Cost | 16,492,938 | 26,618,375 |
Gross Unrealized Gains | 474,198 | 169,640 |
Gross Unrealized Losses | (16,454) | |
Estimated Fair Value | $ 16,967,136 | $ 26,771,561 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 10,189,841 | $ 9,185,615 |
Due in one year to five years | 69,550,840 | 77,261,123 |
Due in five years to ten years | 26,565,311 | 13,392,061 |
Total | 106,305,992 | 99,838,799 |
Estimated Fair Value | ||
Due in one year or less | 10,320,371 | 9,191,226 |
Due in one year to five years | 71,471,655 | 77,815,119 |
Due in five years to ten years | 27,114,636 | 13,443,611 |
Total | $ 108,906,662 | $ 100,449,956 |
Investment Securities (Detail_2
Investment Securities (Details 2) | Jun. 30, 2020USD ($)Number | Dec. 31, 2019USD ($)Number |
Less than 12 Months | ||
Number of positions | Number | 1 | 10 |
Fair Value | $ 11,624,020 | $ 8,239,067 |
Gross Unrealized Losses | $ (9,967) | $ (56,435) |
12 months or Longer | ||
Number of positions | Number | 1 | |
Fair value | $ 330,880 | |
Gross Unrealized Losses | $ (3,119) | |
Total | ||
Number of positions | Number | 1 | 11 |
Fair value | $ 11,624,020 | $ 8,569,947 |
Gross Unrealized Losses | $ (9,967) | $ (59,554) |
Government-Sponsored Enterprises [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 1 | 1 |
Fair Value | $ 11,624,020 | $ 5,039,550 |
Gross Unrealized Losses | $ (9,967) | $ (43,100) |
Total | ||
Number of positions | Number | 1 | 1 |
Fair value | $ 11,624,020 | $ 5,039,550 |
Gross Unrealized Losses | $ (9,967) | $ (43,100) |
Municipal Securities [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 9 | |
Fair Value | $ 3,199,517 | |
Gross Unrealized Losses | $ (13,335) | |
12 months or Longer | ||
Number of positions | Number | 1 | |
Fair value | $ 330,880 | |
Gross Unrealized Losses | $ (3,119) | |
Total | ||
Number of positions | Number | 10 | |
Fair value | $ 3,530,397 | |
Gross Unrealized Losses | $ (16,454) |
Investment Securities (Detail_3
Investment Securities (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross proceeds | $ 14,952,500 | $ 14,952,500 |
Gross realized gains | 59,512 | 59,512 |
Gross realized losses | $ (30,612) | $ (30,612) |
Investment Securities (Detail_4
Investment Securities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Investment securities pledged to secure deposits, fair value | $ 41,200,000 | $ 37,600,000 | ||
Gross realized gains (losses) on sale of investments, tax | $ 6,069 | $ 6,069 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Loans | $ 309,907,305 | $ 274,072,560 |
Allowance for loan losses | (4,110,630) | (4,003,758) |
Loans, net | 305,796,675 | 270,068,802 |
Commercial [Member] | ||
Loans | 42,680,070 | 52,848,455 |
Commercial Real Estate Construction [Member] | ||
Loans | 14,301,901 | 12,491,078 |
Commercial Real Estate Other [Member] | ||
Loans | 140,469,962 | 143,821,990 |
Consumer Real Estate [Member] | ||
Loans | 71,183,544 | 59,533,045 |
Consumer Other [Member] | ||
Loans | 4,728,864 | $ 5,377,992 |
Paycheck Protection Program [Member] | ||
Loans | $ 36,542,964 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details 1) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Credit risks by category and internally assigned grades | ||
Loans | $ 309,907,305 | $ 274,072,560 |
Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 240,414,582 | 258,746,643 |
Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 26,700,828 | 8,958,852 |
OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,286,594 | 1,676,422 |
SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,962,337 | 4,690,643 |
Unrated [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 36,542,964 | |
Commercial [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 42,680,070 | 52,848,455 |
Commercial [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 35,665,736 | 48,098,936 |
Commercial [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,701,530 | 2,303,568 |
Commercial [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 388,727 | 460,551 |
Commercial [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,924,077 | 1,985,400 |
Commercial Real Estate Construction [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 14,301,901 | 12,491,078 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 13,461,039 | 12,005,834 |
Commercial Real Estate Construction [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 840,862 | 485,244 |
Commercial Real Estate Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 140,469,962 | 143,821,990 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 118,080,815 | 137,641,011 |
Commercial Real Estate Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 20,069,519 | 3,758,220 |
Commercial Real Estate Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 238,227 | 649,039 |
Commercial Real Estate Other [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 2,081,401 | 1,773,720 |
Consumer Real Estate [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 71,183,544 | 59,533,045 |
Consumer Real Estate [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 68,776,698 | 56,034,247 |
Consumer Real Estate [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 869,152 | 2,096,445 |
Consumer Real Estate [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 622,731 | 522,600 |
Consumer Real Estate [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 914,963 | 879,753 |
Consumer Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,728,864 | 5,377,992 |
Consumer Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,430,294 | 4,966,615 |
Consumer Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 219,765 | 315,375 |
Consumer Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 36,909 | 44,232 |
Consumer Other [Member] | SubStandard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 41,896 | $ 51,770 |
Paycheck Protection Program [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 36,542,964 | |
Paycheck Protection Program [Member] | Unrated [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | $ 36,542,964 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details 2) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 2,274,552 | $ 2,387,606 |
Current | 307,632,753 | 271,684,954 |
Total Loans Receivable | 309,907,305 | 274,072,560 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 335,448 | 693,008 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 635,851 | 303,205 |
Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,303,253 | 1,391,393 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 210,121 | 218,304 |
Current | 42,469,949 | 52,630,151 |
Total Loans Receivable | 42,680,070 | 52,848,455 |
Commercial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 39,329 | |
Commercial [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 210,121 | |
Commercial [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 178,975 | |
Commercial Real Estate Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 14,301,901 | 12,491,078 |
Total Loans Receivable | 14,301,901 | 12,491,078 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,396,757 | 1,503,496 |
Current | 139,073,205 | 142,318,494 |
Total Loans Receivable | 140,469,962 | 143,821,990 |
Commercial Real Estate Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 335,448 | 620,837 |
Commercial Real Estate Other [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 423,170 | 300,240 |
Commercial Real Estate Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 638,139 | 582,419 |
Consumer Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 665,114 | 632,964 |
Current | 70,518,430 | 58,900,081 |
Total Loans Receivable | 71,183,544 | 59,533,045 |
Consumer Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,965 | |
Consumer Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 665,114 | 629,999 |
Consumer Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,560 | 32,842 |
Current | 4,726,304 | 5,345,150 |
Total Loans Receivable | 4,728,864 | 5,377,992 |
Consumer Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 32,842 | |
Consumer Other [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,560 | |
Paycheck Protection Program [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 36,542,964 | |
Total Loans Receivable | $ 36,542,964 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details 3) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 1,781,382 | $ 1,666,301 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | 190,751 | 178,975 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | 912,067 | 857,327 |
Consumer Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | 665,114 | $ 629,999 |
Consumer Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 13,450 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | $ 4,014,213 | $ 3,989,422 | $ 4,003,758 | $ 4,214,331 |
Charge-offs | (76,410) | (2,009) | (116,002) | (237,737) |
Recoveries | 172,827 | 8,135 | 222,874 | 8,954 |
Provisions | 135,000 | 145,000 | ||
Ending balance | 4,110,630 | 4,130,548 | 4,110,630 | 4,130,548 |
Commercial [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 1,416,267 | 1,528,577 | 1,429,917 | 1,665,413 |
Charge-offs | (229,395) | |||
Recoveries | 71,511 | 5,500 | 87,011 | 6,000 |
Provisions | (469,228) | 5,575 | (498,378) | 97,634 |
Ending balance | 1,018,550 | 1,539,652 | 1,018,550 | 1,539,652 |
Commercial Real Estate Construction [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 123,069 | 81,047 | 109,235 | 63,876 |
Provisions | 27,738 | 16,940 | 41,572 | 34,111 |
Ending balance | 150,807 | 97,987 | 150,807 | 97,987 |
Commercial Real Estate Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 1,212,647 | 1,318,918 | 1,270,445 | 1,292,346 |
Recoveries | 99,801 | 99,801 | ||
Provisions | 164,571 | 13,885 | 106,773 | 40,457 |
Ending balance | 1,477,019 | 1,332,803 | 1,477,019 | 1,332,803 |
Consumer Real Estate [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 562,000 | 377,641 | 496,221 | 386,585 |
Provisions | 321,300 | 150,888 | 387,079 | 141,944 |
Ending balance | 883,300 | 528,529 | 883,300 | 528,529 |
Consumer Other [Member] | ||||
Activity in the allowance for loan losses by portfolio segment | ||||
Beginning balance | 700,230 | 683,239 | 697,940 | 806,111 |
Charge-offs | (76,410) | (2,009) | (116,002) | (8,342) |
Recoveries | 1,515 | 2,635 | 36,062 | 2,954 |
Provisions | (44,381) | (52,288) | (37,046) | (169,146) |
Ending balance | $ 580,954 | $ 631,577 | $ 580,954 | $ 631,577 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details 5) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for Loan Losses | ||||||
Individually evaluated for impairment | $ 666,456 | $ 685,150 | ||||
Collectively evaluated for impairment | 3,444,174 | 3,318,608 | ||||
Total Allowance for Loan Losses | 4,110,630 | $ 4,014,213 | 4,003,758 | $ 4,130,548 | $ 3,989,422 | $ 4,214,331 |
Loans Receivable | ||||||
Individually evaluated for impairment | 4,965,910 | 4,677,127 | ||||
Collectively evaluated for impairment | 304,941,395 | 269,395,433 | ||||
Total Loans Receivable | 309,907,305 | 274,072,560 | ||||
Commercial [Member] | ||||||
Allowance for Loan Losses | ||||||
Individually evaluated for impairment | 466,463 | 683,278 | ||||
Collectively evaluated for impairment | 552,087 | 746,639 | ||||
Total Allowance for Loan Losses | 1,018,550 | 1,416,267 | 1,429,917 | 1,539,652 | 1,528,577 | 1,665,413 |
Loans Receivable | ||||||
Individually evaluated for impairment | 1,924,077 | 2,065,732 | ||||
Collectively evaluated for impairment | 40,755,993 | 50,782,723 | ||||
Total Loans Receivable | 42,680,070 | 52,848,455 | ||||
Commercial Real Estate Construction [Member] | ||||||
Allowance for Loan Losses | ||||||
Collectively evaluated for impairment | 150,807 | 109,235 | ||||
Total Allowance for Loan Losses | 150,807 | 123,069 | 109,235 | 97,987 | 81,047 | 63,876 |
Loans Receivable | ||||||
Collectively evaluated for impairment | 14,301,901 | 12,491,078 | ||||
Total Loans Receivable | 14,301,901 | 12,491,078 | ||||
Commercial Real Estate Other [Member] | ||||||
Allowance for Loan Losses | ||||||
Individually evaluated for impairment | 29,199 | 1,782 | ||||
Collectively evaluated for impairment | 1,447,820 | 1,268,663 | ||||
Total Allowance for Loan Losses | 1,477,019 | 1,212,647 | 1,270,445 | 1,332,803 | 1,318,918 | 1,292,346 |
Loans Receivable | ||||||
Individually evaluated for impairment | 2,084,973 | 1,679,872 | ||||
Collectively evaluated for impairment | 138,384,989 | 142,142,118 | ||||
Total Loans Receivable | 140,469,962 | 143,821,990 | ||||
Consumer Real Estate [Member] | ||||||
Allowance for Loan Losses | ||||||
Individually evaluated for impairment | 170,794 | |||||
Collectively evaluated for impairment | 712,506 | 496,221 | ||||
Total Allowance for Loan Losses | 883,300 | 562,000 | 496,221 | 528,529 | 377,641 | 386,585 |
Loans Receivable | ||||||
Individually evaluated for impairment | 914,964 | 879,753 | ||||
Collectively evaluated for impairment | 70,268,580 | 58,653,292 | ||||
Total Loans Receivable | 71,183,544 | 59,533,045 | ||||
Consumer Other [Member] | ||||||
Allowance for Loan Losses | ||||||
Individually evaluated for impairment | 90 | |||||
Collectively evaluated for impairment | 580,954 | 697,850 | ||||
Total Allowance for Loan Losses | 580,954 | $ 700,230 | 697,940 | $ 631,577 | $ 683,239 | $ 806,111 |
Loans Receivable | ||||||
Individually evaluated for impairment | 41,896 | 51,770 | ||||
Collectively evaluated for impairment | 4,686,968 | 5,326,222 | ||||
Total Loans Receivable | 4,728,864 | $ 5,377,992 | ||||
Paycheck Protection Program [Member] | ||||||
Loans Receivable | ||||||
Collectively evaluated for impairment | 36,542,964 | |||||
Total Loans Receivable | $ 36,542,964 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details 6) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | $ 2,997,286 | $ 3,668,616 |
Recorded Investment with no related allowance recorded | 2,997,286 | 3,668,616 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 2,068,425 | 1,108,312 |
Recorded Investment with an allowance recorded | 1,968,624 | 1,008,511 |
Related Allowance | 666,456 | 685,150 |
Total Impaired Loans | ||
Unpaid Principal balance | 5,065,711 | 4,776,928 |
Recorded Investment | 4,965,910 | 4,677,127 |
Related Allowance | 666,456 | 685,150 |
Commercial [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 956,102 | 1,355,875 |
Recorded Investment with no related allowance recorded | 956,102 | 1,355,875 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 967,975 | 709,857 |
Recorded Investment with an allowance recorded | 967,975 | 709,857 |
Related Allowance | 466,463 | 683,278 |
Total Impaired Loans | ||
Unpaid Principal balance | 1,924,077 | 2,065,732 |
Recorded Investment | 1,924,077 | 2,065,732 |
Related Allowance | 466,463 | 683,278 |
Commercial Real Estate Other [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 1,749,438 | 1,432,988 |
Recorded Investment with no related allowance recorded | 1,749,438 | 1,432,988 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 435,336 | 346,685 |
Recorded Investment with an allowance recorded | 335,535 | 246,884 |
Related Allowance | 29,199 | 1,782 |
Total Impaired Loans | ||
Unpaid Principal balance | 2,184,774 | 1,779,673 |
Recorded Investment | 2,084,973 | 1,679,872 |
Related Allowance | 29,199 | 1,782 |
Consumer Real Estate [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 249,850 | 879,753 |
Recorded Investment with no related allowance recorded | 249,850 | 879,753 |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 665,114 | |
Recorded Investment with an allowance recorded | 665,114 | |
Related Allowance | 170,794 | |
Total Impaired Loans | ||
Unpaid Principal balance | 914,964 | 879,753 |
Recorded Investment | 914,964 | 879,753 |
Related Allowance | 170,794 | |
Consumer Other [Member] | ||
Impaired Loans with no related allowance recorded | ||
Unpaid Principal Balance with no related allowance recorded | 41,896 | |
Recorded Investment with no related allowance recorded | 41,896 | |
Impaired Loans with an allowance recorded | ||
Unpaid Principal Balance with an allowance recorded | 51,770 | |
Recorded Investment with an allowance recorded | 51,770 | |
Related Allowance | 90 | |
Total Impaired Loans | ||
Unpaid Principal balance | 41,896 | 51,770 |
Recorded Investment | $ 41,896 | 51,770 |
Related Allowance | $ 90 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Details 7) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment with no related allowance recorded | $ 3,005,030 | $ 1,860,845 | $ 3,091,509 | $ 1,970,338 |
Interest Income Recognized with no related allowance recorded | 39,456 | 26,682 | 75,208 | 53,391 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment with an allowance recorded | 1,953,150 | 2,100,711 | 2,078,278 | 2,018,293 |
Interest Income Recognized with an allowance recorded | 11,434 | 28,828 | 26,662 | 57,959 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 4,958,180 | 3,961,556 | 5,169,787 | 3,988,631 |
Interest Income Recognized | 50,890 | 55,510 | 101,870 | 111,350 |
Commercial [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment with no related allowance recorded | 960,398 | 117,741 | 1,024,907 | 123,509 |
Interest Income Recognized with no related allowance recorded | 14,480 | 2,071 | 29,570 | 4,334 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment with an allowance recorded | 1,052,358 | 1,582,324 | 1,184,428 | 1,597,013 |
Interest Income Recognized with an allowance recorded | 11,434 | 25,869 | 26,662 | 51,983 |
Total Average Impaired Loans | ||||
Average Recorded Investment | 2,012,756 | 1,700,065 | 2,209,335 | 1,720,522 |
Interest Income Recognized | 25,914 | 27,940 | 56,232 | 56,317 |
Commercial Real Estate Other [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment with no related allowance recorded | 1,752,669 | 863,351 | 1,772,945 | 967,076 |
Interest Income Recognized with no related allowance recorded | 21,646 | 10,354 | 37,824 | 20,700 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment with an allowance recorded | 235,734 | 501,279 | 229,149 | 403,001 |
Interest Income Recognized with an allowance recorded | 2,735 | 5,498 | ||
Total Average Impaired Loans | ||||
Average Recorded Investment | 1,988,403 | 1,364,630 | 2,002,094 | 1,370,077 |
Interest Income Recognized | 21,646 | 13,089 | 37,824 | 26,198 |
Consumer Real Estate [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment with no related allowance recorded | 249,800 | 879,753 | 249,754 | 879,753 |
Interest Income Recognized with no related allowance recorded | 2,647 | 14,257 | 6,472 | 28,357 |
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment with an allowance recorded | 665,058 | 664,701 | ||
Total Average Impaired Loans | ||||
Average Recorded Investment | 914,858 | 879,753 | 914,455 | 879,753 |
Interest Income Recognized | 2,647 | 14,257 | 6,472 | 28,357 |
Consumer Other [Member] | ||||
Average Impaired Loans with no related allowance recorded | ||||
Average Recorded Investment with no related allowance recorded | 42,163 | 43,903 | ||
Interest Income Recognized with no related allowance recorded | 683 | 1,342 | ||
Average Impaired Loans with an allowance recorded | ||||
Average Recorded Investment with an allowance recorded | 17,108 | 18,279 | ||
Interest Income Recognized with an allowance recorded | 224 | 478 | ||
Total Average Impaired Loans | ||||
Average Recorded Investment | 42,163 | 17,108 | 43,903 | 18,279 |
Interest Income Recognized | $ 683 | $ 224 | $ 1,342 | $ 478 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Details Narrative) | Mar. 27, 2020USD ($) | Jun. 30, 2020USD ($)NumberCustomer | Dec. 31, 2019USD ($)Number |
Financing Receivable, Impaired [Line Items] | |||
Principal amount | $ 305,796,675 | $ 270,068,802 | |
Deferred loan fees | 1,128,775 | 155,697 | |
Loans pledged as collateral to secure funding with the Federal Reserve Bank | $ 68,700,000 | $ 85,200,000 | |
Number of loans over 90 days past due and still accruing | Number | 6 | 3 | |
Restructured loan | $ 1,700,000 | $ 573,473 | |
Number of bank funding customer | Customer | 80 | ||
Percentage of portfolio rate | 0.18% | ||
Paycheck Protection Program [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans carry a fixed rate | 1.00% | ||
Term loan | 2 years | ||
Guarantee of loan by SBA (percent) | 100.00% | ||
Loans to be issued under Cares Act | $ 349,000,000,000 | ||
Additional funding of loans to be issued under Cares Act | $ 310,000,000,000 | ||
Bank funding | $ 36,500,000 | ||
Principal deferments | $ 600,000 | ||
Number of bank funding customer | Customer | 266 | ||
Paycheck Protection Program [Member] | Minimum [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Processing fee of SBA loans (percent) | 1.00% | ||
Paycheck Protection Program [Member] | Maximum [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Processing fee of SBA loans (percent) | 5.00% |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Lease Expense Components | ||
Operating lease expense | $ 250,121 | $ 484,080 |
Total lease expense | $ 250,121 | $ 484,080 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating Lease, Right-of-Use Asset | $ 12,971,774 | $ 12,971,774 | $ 13,209,217 | ||
Operating Lease, Liability | $ 12,971,774 | $ 12,971,774 | $ 13,209,217 | ||
Weighted average remaining lease term | 17 years 6 months 22 days | 17 years 6 months 22 days | |||
Weighted average rate | 4.34% | 4.34% | |||
Rent expense | $ 250,121 | $ 161,867 | $ 484,080 | $ 317,859 | |
Renewal terms | 20 years | 20 years |
Disclosure Regarding Fair Val_3
Disclosure Regarding Fair Value of Financial Statements (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Investment securities available for sale | $ 108,906,662 | $ 100,449,956 |
Level 1 [Member] | ||
Investment securities available for sale | 23,601,441 | 23,180,200 |
Level 2 [Member] | ||
Investment securities available for sale | 79,218,879 | 65,315,305 |
Level 3 [Member] | ||
Investment securities available for sale | 6,086,342 | 11,954,451 |
U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 23,601,441 | 23,180,200 |
Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 68,338,085 | 50,498,195 |
Municipal Securities [Member] | ||
Investment securities available for sale | 16,967,136 | 26,771,561 |
Recurring Basis [Member] | ||
Investment securities available for sale | 108,906,662 | 100,449,956 |
Recurring Basis [Member] | Level 1 [Member] | ||
Investment securities available for sale | 23,601,441 | 23,180,200 |
Recurring Basis [Member] | Level 2 [Member] | ||
Investment securities available for sale | 79,218,879 | 65,315,305 |
Recurring Basis [Member] | Level 3 [Member] | ||
Investment securities available for sale | 6,086,342 | 11,954,451 |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 23,601,441 | 23,180,200 |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | Level 1 [Member] | ||
Investment securities available for sale | 23,601,441 | 23,180,200 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 68,338,085 | 50,498,195 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | Level 2 [Member] | ||
Investment securities available for sale | 68,338,085 | 50,498,195 |
Recurring Basis [Member] | Municipal Securities [Member] | ||
Investment securities available for sale | 16,967,136 | 26,771,561 |
Recurring Basis [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
Investment securities available for sale | 10,880,794 | 14,817,110 |
Recurring Basis [Member] | Municipal Securities [Member] | Level 3 [Member] | ||
Investment securities available for sale | $ 6,086,342 | $ 11,954,451 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Beginning Balance | $ 6,403,720 | $ 5,738,618 | $ 11,954,451 | $ 6,241,955 |
Total gains or (losses) (realized/unrealized) | ||||
Included in other comprehensive income | 81,622 | 44,734 | 109,891 | 101,397 |
Purchases, issuances, and settlements net of maturities | (399,000) | (1,248,835) | (5,978,000) | (1,808,835) |
Ending balance | $ 6,086,342 | $ 4,534,517 | $ 6,086,342 | $ 4,534,517 |
Disclosure Regarding Fair Val_5
Disclosure Regarding Fair Value of Financial Statements (Details 2) - Nonrecurring Basis [Member] - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Impaired loans | $ 2,799,944 | $ 2,657,644 |
Mortgage loans to be sold | 11,624,188 | 5,062,398 |
Total | 14,424,132 | 7,720,042 |
Level 2 [Member] | ||
Mortgage loans to be sold | 11,624,188 | 5,062,398 |
Total | 11,624,188 | 5,062,398 |
Level 3 [Member] | ||
Impaired loans | 2,799,944 | 2,657,644 |
Total | $ 2,799,944 | $ 2,657,644 |
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, 2020 | Dec. 31, 2019 |
Minimum [Member] | ||
Impaired loans | 0.10 | 0.10 |
Maximum [Member] | ||
Impaired loans | 0.20 | 0.20 |
Disclosure Regarding Fair Val_7
Disclosure Regarding Fair Value of Financial Statements (Details 4) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Investment securities available for sale | $ 108,906,662 | $ 100,449,956 |
Level 1 [Member] | ||
Financial Assets: | ||
Cash and due from banks | 6,886,753 | 9,773,893 |
Interest-bearing deposits at the Federal Reserve | 89,344,677 | 39,320,526 |
Investment securities available for sale | 23,601,441 | 23,180,200 |
Level 2 [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 79,218,879 | 65,315,305 |
Mortgage loans to be sold | 11,624,188 | 5,062,398 |
Accrued interest receivable | 1,332,528 | 1,309,772 |
Financial Liabilities: | ||
Demand deposits | 452,451,437 | 357,008,868 |
Time deposits | 23,478,635 | 21,962,039 |
Accrued interest payable | 29,492 | 38,748 |
Level 3 [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 6,086,342 | 11,954,451 |
Loans, net | 298,879,296 | 271,736,572 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and due from banks | 6,886,753 | 9,773,893 |
Interest-bearing deposits at the Federal Reserve | 89,344,677 | 39,320,526 |
Investment securities available for sale | 108,906,662 | 100,449,956 |
Mortgage loans to be sold | 11,624,188 | 5,062,398 |
Loans, net | 305,796,675 | 270,068,802 |
Accrued interest receivable | 1,332,528 | 1,309,772 |
Financial Liabilities: | ||
Demand deposits | 452,451,437 | 357,008,868 |
Time deposits | 21,245,740 | 22,182,787 |
Accrued interest payable | 29,492 | 38,748 |
Estimated Fair Value [Member] | ||
Financial Assets: | ||
Cash and due from banks | 6,886,753 | 9,773,893 |
Interest-bearing deposits at the Federal Reserve | 89,344,677 | 39,320,526 |
Investment securities available for sale | 108,906,662 | 100,449,956 |
Mortgage loans to be sold | 11,624,188 | 5,062,398 |
Loans, net | 298,879,296 | 271,736,572 |
Accrued interest receivable | 1,332,528 | 1,309,772 |
Financial Liabilities: | ||
Demand deposits | 452,451,437 | 357,008,868 |
Time deposits | 23,478,635 | 21,962,039 |
Accrued interest payable | $ 29,492 | $ 38,748 |
Income Per Common Share (Detail
Income Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 1,501,023 | $ 1,521,131 | $ 1,840,847 | $ 1,689,264 | $ 3,022,154 | $ 3,530,111 |
Weighted average shares outstanding | 5,529,632 | 5,517,236 | 5,529,944 | 5,515,832 | ||
Effect of dilutive shares | 184,489 | 70,749 | 178,774 | 70,981 | ||
Weighted average shares outstanding - diluted | 5,714,121 | 5,587,985 | 5,708,718 | 5,586,813 | ||
Earnings per share - basic (in dollars per share) | $ 0.27 | $ 0.33 | $ 0.55 | $ 0.64 | ||
Earnings per share - diluted (in dollars per share) | $ 0.26 | $ 0.33 | $ 0.53 | $ 0.63 |