Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Oak Valley Bancorp | ' |
Entity Central Index Key | '0001431567 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 7,929,730 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and due from banks | $84,312,827 | $130,799,998 |
Federal funds sold | 15,495,000 | 10,535,000 |
Cash and cash equivalents | 99,807,827 | 141,334,998 |
Securities available for sale | 117,142,396 | 103,865,881 |
Loans, net of allowance for loan loss of $7,669,305 and $7,974,975 at September 30, 2013 and December 31, 2012, respectively | 405,544,603 | 382,411,361 |
Bank premises and equipment, net | 12,607,621 | 13,182,451 |
Other real estate owned | 916,205 | 0 |
Interest receivable and other assets | 23,173,299 | 19,786,065 |
Total Assets | 659,191,951 | 660,580,756 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Deposits | 591,642,194 | 586,992,650 |
Interest payable and other liabilities | 4,170,838 | 3,619,382 |
Total liabilities | 595,813,032 | 590,612,032 |
Commitments and contingencies | ' | ' |
Shareholders' equity | ' | ' |
Common stock, no par value; 50,000,000 shares authorized, 7,929,730 and 7,907,780 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 23,758,210 | 23,673,210 |
Additional paid-in capital | 2,483,466 | 2,341,814 |
Retained earnings | 38,070,279 | 33,958,737 |
Accumulated other comprehensive (loss) income, net of tax | -933,036 | 3,244,963 |
Total shareholders' equity | 63,378,919 | 69,968,724 |
Total liabilities and shareholders' equity | 659,191,951 | 660,580,756 |
Series B Preferred stock | ' | ' |
Shareholders' equity | ' | ' |
Series B Preferred stock, no par value; $1,000 per share liquidation preference, 10,000,000 shares authorized, 6,750 shares issued and outstanding at December 31, 2012 | $0 | $6,750,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for loan loss (in dollars) | $7,669,305 | $7,974,975 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 7,929,730 | 7,907,780 |
Common stock, shares outstanding | 7,929,730 | 7,907,780 |
Series B Preferred stock | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' |
Preferred stock, liquidation preference (in dollars per share) | ' | $1,000 |
Preferred stock, shares authorized | ' | 10,000,000 |
Preferred stock, shares issued | ' | 6,750 |
Preferred stock, shares outstanding | 0 | 6,750 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
INTEREST INCOME | ' | ' | ' | ' |
Interest and fees on loans | $5,275,934 | $5,633,389 | $15,818,856 | $16,934,021 |
Interest on securities available for sale | 893,472 | 860,565 | 2,550,412 | 2,572,096 |
Interest on federal funds sold | 5,315 | 6,568 | 17,012 | 16,192 |
Interest on deposits with banks | 49,268 | 28,327 | 160,809 | 83,114 |
Total interest income | 6,223,989 | 6,528,849 | 18,547,089 | 19,605,423 |
INTEREST EXPENSE | ' | ' | ' | ' |
Deposits | 193,547 | 274,963 | 643,319 | 870,925 |
FHLB advances | ' | ' | ' | 4,707 |
Total interest expense | 193,547 | 274,963 | 643,319 | 875,632 |
Net interest income | 6,030,442 | 6,253,886 | 17,903,770 | 18,729,791 |
PROVISION FOR LOAN LOSSES | 100,000 | 300,000 | 300,000 | 900,000 |
Net interest income after provision for loan losses | 5,930,442 | 5,953,886 | 17,603,770 | 17,829,791 |
OTHER INCOME | ' | ' | ' | ' |
Service charges on deposits | 318,064 | 287,101 | 903,599 | 868,677 |
Earnings on cash surrender value of life insurance | 100,660 | 105,000 | 306,207 | 315,000 |
Mortgage commissions | 59,944 | 63,792 | 196,646 | 171,579 |
Gains on called securities | 18,091 | 35,406 | 52,656 | 70,410 |
Other | 368,807 | 299,150 | 1,008,802 | 868,169 |
Total non-interest income | 865,566 | 790,449 | 2,467,910 | 2,293,835 |
OTHER EXPENSES | ' | ' | ' | ' |
Salaries and employee benefits | 2,451,037 | 2,462,468 | 7,590,178 | 7,552,214 |
Occupancy expenses | 738,937 | 766,401 | 2,220,320 | 2,260,483 |
Data processing fees | 330,603 | 282,347 | 938,206 | 838,211 |
OREO expenses | 1,409 | ' | 2,193 | 18,358 |
Regulatory assessments (FDIC & DFI) | 120,000 | 114,000 | 360,000 | 347,000 |
Other operating expenses | 976,444 | 901,973 | 2,880,486 | 2,719,706 |
Total non-interest expense | 4,618,430 | 4,527,189 | 13,991,383 | 13,735,972 |
Net income before provision for income taxes | 2,177,578 | 2,217,146 | 6,080,297 | 6,387,654 |
PROVISION FOR INCOME TAXES | 672,358 | 738,315 | 1,901,255 | 2,095,958 |
NET INCOME | 1,505,220 | 1,478,831 | 4,179,042 | 4,291,696 |
Preferred stock dividends | ' | 84,375 | 67,500 | 367,500 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $1,505,220 | $1,394,456 | $4,111,542 | $3,924,196 |
NET INCOME PER COMMON SHARE (in dollars per share) | $0.19 | $0.18 | $0.53 | $0.51 |
NET INCOME PER DILUTED COMMON SHARE (in dollars per share) | $0.19 | $0.18 | $0.52 | $0.51 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' | ' | ' |
Net income | $1,505,220 | $1,478,831 | $4,179,042 | $4,291,696 |
Available for sale securities: | ' | ' | ' | ' |
Gross unrealized (loss) gain arising during the period | -2,762,108 | 671,119 | -7,046,747 | 1,537,797 |
Reclassification adjustment for gains realized in net income (net of income tax of $7,444 and $21,668 for the three and nine months ended September 30, 2013, respectively and $14,570 and $28,974 for the comparable 2012 periods) | -10,647 | -20,836 | -30,988 | -41,436 |
Income tax benefit (expense) related to unrealized gains/losses | 1,136,608 | -276,166 | 2,899,736 | -632,804 |
Other comprehensive (loss) gain | -1,636,147 | 374,117 | -4,177,999 | 863,557 |
Comprehensive (loss) income | ($130,927) | $1,852,948 | $1,043 | $5,155,253 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' | ' | ' |
Reclassification adjustment for gains realized in net income, income tax | $7,444 | $14,570 | $21,668 | $28,974 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Series B Preferred stock | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Series B Preferred stock | |||||||
Balances at Dec. 31, 2011 | $70,402,006 | ' | $23,453,443 | $13,500,000 | $2,128,700 | $28,629,757 | $2,690,106 |
Balances (in shares) at Dec. 31, 2011 | ' | ' | 7,718,469 | 13,500 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | 219,767 | ' | 219,767 | ' | ' | ' | ' |
Stock options exercised (in shares) | ' | ' | 54,436 | ' | ' | ' | ' |
Tax benefit on stock options exercised | 37,218 | ' | ' | ' | 37,218 | ' | ' |
Restricted stock issued (in shares) | ' | ' | 134,875 | ' | ' | ' | ' |
Repurchase of Series B preferred stock | -6,750,000 | ' | ' | -6,750,000 | ' | ' | ' |
Repurchase of Series B preferred stock (in shares) | ' | ' | ' | -6,750 | ' | ' | ' |
Preferred stock dividend payments | -451,875 | ' | ' | ' | ' | -451,875 | ' |
Stock based compensation | 175,896 | ' | ' | ' | 175,896 | ' | ' |
Other comprehensive income (loss) | 554,857 | ' | ' | ' | ' | ' | 554,857 |
Net income | 5,780,855 | ' | ' | ' | ' | 5,780,855 | ' |
Balances at Dec. 31, 2012 | 69,968,724 | ' | 23,673,210 | 6,750,000 | 2,341,814 | 33,958,737 | 3,244,963 |
Balances (in shares) at Dec. 31, 2012 | ' | ' | 7,907,780 | 6,750 | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | 85,000 | ' | 85,000 | ' | ' | ' | ' |
Stock options exercised (in shares) | ' | ' | 11,250 | ' | ' | ' | ' |
Restricted stock issued (in shares) | ' | ' | 15,000 | ' | ' | ' | ' |
Restricted stock cancelled (in shares) | ' | ' | -4,300 | ' | ' | ' | ' |
Repurchase of Series B preferred stock | -6,750,000 | ' | ' | -6,750,000 | ' | ' | ' |
Repurchase of Series B preferred stock (in shares) | ' | ' | ' | -6,750 | ' | ' | ' |
Preferred stock dividend payments | -67,500 | ' | ' | ' | ' | -67,500 | ' |
Stock based compensation | 141,652 | ' | ' | ' | 141,652 | ' | ' |
Other comprehensive income (loss) | -4,177,999 | ' | ' | ' | ' | ' | -4,177,999 |
Net income | 4,179,042 | ' | ' | ' | ' | 4,179,042 | ' |
Balances at Sep. 30, 2013 | $63,378,919 | ' | $23,758,210 | $0 | $2,483,466 | $38,070,279 | ($933,036) |
Balances (in shares) at Sep. 30, 2013 | ' | ' | 7,929,730 | 0 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $4,179,042 | $4,291,696 |
Adjustments to reconcile net earnings to net cash from operating activities: | ' | ' |
Provision for loan losses | 300,000 | 900,000 |
Increase (decrease) in deferred fees/costs, net | 42,674 | -81,575 |
Depreciation | 860,624 | 848,181 |
Amortization of investment securities, net | 194,852 | 166,228 |
Stock based compensation | 141,652 | 128,036 |
Excess tax benefits from stock-based payment arrangements | 0 | -37,218 |
Loss (gain) on sale of premises and equipment | 31,650 | -22,498 |
Gain on sale of OREO | -16,629 | -3,548 |
Gain on called available for sale securities | -52,656 | -70,410 |
Earnings on cash surrender value of life insurance | -306,207 | -315,000 |
Increase in interest payable and other liabilities | 551,456 | 3,092,985 |
Increase in interest receivable | -100,634 | -76,105 |
Increase in other assets | -58,989 | -644,782 |
Net cash from operating activities | 5,766,835 | 8,175,990 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of available for sale securities | -34,186,448 | -40,439,977 |
Proceeds from maturities, calls, and principal paydowns of securities available for sale | 13,668,334 | 25,174,459 |
Net (increase) decrease in loans | -25,357,546 | 5,931,726 |
Purchase of FRB Stock | 0 | -1,450 |
Redemption of FHLB stock | 0 | 400,500 |
Proceeds from sale of OREO | 982,054 | 247,923 |
Proceeds from sales of premises and equipment | 5,625 | 22,498 |
Net purchases of premises and equipment | -323,069 | -453,125 |
Net cash used in investing activities | -45,211,050 | -9,117,446 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
FHLB payments | 0 | -3,000,000 |
Preferred stock dividend payment | -67,500 | -367,500 |
Net decrease in demand deposits and savings accounts | 9,768,849 | 19,164,074 |
Net decrease in time deposits | -5,119,305 | -2,034,616 |
Excess tax benefits from stock-based payment arrangements | 0 | 37,218 |
Proceeds from sale of common stock and exercise of stock options | 85,000 | 219,767 |
Net cash (used in) from financing activities | -2,082,956 | 7,268,943 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -41,527,171 | 6,327,487 |
CASH AND CASH EQUIVALENTS, beginning of period | 141,334,998 | 101,084,775 |
CASH AND CASH EQUIVALENTS, end of period | 99,807,827 | 107,412,262 |
Cash paid during the period for: | ' | ' |
Interest | 653,682 | 931,745 |
Income taxes | 1,520,000 | 965,000 |
NON-CASH INVESTING ACTIVITIES: | ' | ' |
Real estate acquired through foreclosure | 1,881,630 | 0 |
Change in unrealized (loss)/gain on available-for-sale securities | -7,099,403 | 1,467,387 |
Series B Preferred stock | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repurchase of Series B preferred stock | ($6,750,000) | ($6,750,000) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
NOTE 1 — BASIS OF PRESENTATION | |
On July 3, 2008 (the “Effective Date”), a bank holding company reorganization was completed whereby Oak Valley Bancorp (the “Company”) became the parent holding company for Oak Valley Community Bank ( the “Bank”). On the Effective Date, each outstanding share of the Bank was converted into one share of Oak Valley Bancorp and the Bank became a wholly-owned subsidiary of the holding company. | |
The accounting principles followed by the Company and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (GAAP) and with general practices within the banking industry. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, fair values of financial instruments, the estimation of compensation expense related to stock options granted to employees and directors, and valuation allowances associated with deferred tax assets, the recognition of which are based on future taxable income. | |
The interim consolidated financial statements included in this report are unaudited but reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results of a full year’s operations. Certain prior year amounts have been reclassified to conform to the current year presentation. There was no effect on net income or shareholders’ equity. For further information, refer to the audited consolidated financial statements and footnotes included in the Company’s Form 10-K for the year ended December 31, 2012. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS | |
In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update requires an entity to offset, and present as a single net amount, a recognized eligible asset and a recognized eligible liability when it has an unconditional and legally enforceable right of setoff and intends either to settle the asset and liability on a net basis or to realize the asset and settle the liability simultaneously. The ASU requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The amendments are effective for annual and interim reporting periods beginning on or after January 1, 2013 and did not have a material impact on the Company’s consolidated financial statements. | |
In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The Update clarifies that ASU. 2011-11 applies only to derivatives, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement are no longer subject to the disclosure requirements in ASU. 2011-11. The amendments are effective for annual and interim reporting periods beginning on or after January 1, 2013 and did not have a material impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The Update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present either on the face of the statement where net income is presented, or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. The amendments are effective for annual and interim reporting periods beginning on or after December 15, 2012 and did not have a material impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The Update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: 1) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and 2) Any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and are applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the Update’s scope that exist at the beginning of an entity’s fiscal year of adoption. The adoption of ASU No. 2013-04 is not expected to have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. ASU No. 2013-10 permits the use of the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge account purposes. The amendment is effective prospectively for qualifying new or redesiginated hedging relationships entered into on or after July 17, 2013. The adoption of ASU No. 2013-10 is not expected to have a material impact on the Company’s consolidated financial statements | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. No new recurring disclosures are required. The amendments are effective for annual and interim reporting periods beginning on or after December 15, 2013 and are to be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of ASU No. 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements. |
PREFERRED_STOCK_REPURCHASE_AND
PREFERRED STOCK REPURCHASE AND WARRANT REDEMPTION | 9 Months Ended |
Sep. 30, 2013 | |
PREFERRED STOCK REPURCHASE AND WARRANT REDEMPTION | ' |
PREFERRED STOCK REPURCHASE AND WARRANT REDEMPTION | ' |
NOTE 3 — PREFERRED STOCK REPURCHASE AND WARRANT REDEMPTION | |
In August 2011, the Company repurchased the $13,500,000 of Series A Preferred Stock originally issued to the U.S. Treasury in December 2008 in connection with the Company’s participation in the Capital Purchase Program (“CPP”). The Company simultaneously issued $13,500,000 in Series B Preferred Stock to the U.S. Treasury under the Small Business Lending Funding (“SBLF”) program. Subsequently, the Company fully redeemed a warrant to purchase 350,346 shares of its Common Stock, at the exercise price of $5.78 per share that the Company had granted to the U.S. Treasury pursuant to the CPP, for a purchase price of $560,000, which settled in September 2011. | |
In May 2012, the Company repurchased from the U.S. Treasury 6,750 shares of Series B Preferred Stock for aggregate consideration of $6.75 million. In March 2013, the Company repurchased the remaining 6,750 shares of Series B Preferred Stock for aggregate consideration of $6.75 million plus $67,500 for accrued interest. As of September 30, 2013, there are no outstanding shares of Series B Preferred Stock. |
SECURITIES
SECURITIES | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
NOTE 4 — SECURITIES | ||||||||||||||||||||
The amortized cost and estimated fair values of debt securities as of September 30, 2013 are as follows: | ||||||||||||||||||||
Amortized Cost | Gross | Gross | Fair Value | |||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
U.S. agencies | $ | 52,622,388 | $ | 1,953,129 | $ | (1,264,298 | ) | $ | 53,311,218 | |||||||||||
Collateralized mortgage obligations | 10,195,441 | 301,335 | (68,859 | ) | 10,427,918 | |||||||||||||||
Municipalities | 41,318,794 | 898,084 | (3,379,578 | ) | 38,837,299 | |||||||||||||||
SBA Pools | 1,102,217 | 0 | (4,730 | ) | 1,097,487 | |||||||||||||||
Corporate debt | 4,690,201 | 107,445 | 0 | 4,797,646 | ||||||||||||||||
Asset Backed Securities | 5,849,203 | 18,872 | (19,555 | ) | 5,848,520 | |||||||||||||||
Mutual Fund | 2,949,126 | 0 | (126,819 | ) | 2,822,308 | |||||||||||||||
$ | 118,727,370 | $ | 3,278,865 | $ | (4,863,839 | ) | $ | 117,142,396 | ||||||||||||
The following tables detail the gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013. | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Description of Securities | Fair Value | Unrealized | Fair | Unrealized | Fair Value | Unrealized | ||||||||||||||
Loss | Value | Loss | Loss | |||||||||||||||||
U.S. agencies | $ | 20,097,272 | $ | (1,015,959 | ) | $ | 1,747,229 | $ | (248,339 | ) | $ | 21,844,501 | $ | (1,264,298 | ) | |||||
Collateralized mortgage obligations | 1,672,944 | (68,859 | ) | 0 | 0 | 1,672,944 | (68,859 | ) | ||||||||||||
Municipalities | 26,848,775 | (3,254,021 | ) | 1,024,109 | (125,557 | ) | 27,872,884 | (3,379,578 | ) | |||||||||||
SBA Pools | 847,113 | (3,598 | ) | 250,376 | (1,132 | ) | 1,097,489 | (4,730 | ) | |||||||||||
Corporate debt | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Asset Backed Securities | 3,899,340 | (19,555 | ) | 0 | 0 | 3,899,340 | (19,555 | ) | ||||||||||||
Mutual Fund | 2,822,308 | (126,819 | ) | 0 | 0 | 2,822,308 | (126,819 | ) | ||||||||||||
Total temporarily impaired securities | $ | 56,187,752 | $ | (4,488,811 | ) | $ | 3,021,714 | $ | (375,028 | ) | $ | 59,209,466 | $ | (4,863,839 | ) | |||||
At September 30, 2013, there were two municipalities, one agency, and one SBA pool that comprised the total securities in an unrealized loss position for greater than 12 months and 12 agencies, 34 municipalities, 2 asset backed securities, one collateralized mortgage obligation, one mutual fund and one SBA pools that make up the total securities in a loss position for less than 12 months. Management periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other than temporary. This evaluation encompasses various factors including, the nature of the investment, the cause of the impairment, the severity and duration of the impairment, credit ratings and other credit related factors such as third party guarantees and volatility of the security’s fair value. Management has determined that no investment security is other than temporarily impaired. All of the temporarily impaired securities are credit rated as investment grade. The unrealized losses are due primarily to interest rate changes and the Company does not intend to sell the securities and it is not likely that we will be required to sell the securities before the earlier of the forecasted recovery or the maturity of the underlying investment security. | ||||||||||||||||||||
The amortized cost and estimated fair value of debt securities at September 30, 2013, by contractual maturity or call date, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Due in one year or less | $ | 14,884,900 | $ | 13,835,637 | ||||||||||||||||
Due after one year through five years | 20,467,867 | 21,497,654 | ||||||||||||||||||
Due after five years through ten years | 43,203,072 | 41,259,614 | ||||||||||||||||||
Due after ten years | 40,171,531 | 40,549,491 | ||||||||||||||||||
$ | 118,727,370 | $ | 117,142,396 | |||||||||||||||||
The amortized cost and estimated fair values of debt securities as of December 31, 2012, are as follows: | ||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
U.S. agencies | $ | 52,607,537 | $ | 2,949,355 | $ | (39,833 | ) | $ | 55,517,059 | |||||||||||
Collateralized mortgage obligations | 11,698,399 | 905,985 | — | 12,604,384 | ||||||||||||||||
Municipalities | 25,323,157 | 1,727,206 | (58,075 | ) | 26,992,288 | |||||||||||||||
SBA Pools | 1,178,242 | 86 | (20 | ) | 1,178,308 | |||||||||||||||
Corporate debt | 4,669,390 | 37,048 | (836 | ) | 4,705,602 | |||||||||||||||
Mutual Fund | 2,874,727 | — | (6,487 | ) | 2,868,240 | |||||||||||||||
$ | 98,351,452 | $ | 5,619,680 | $ | (105,251 | ) | $ | 103,865,881 | ||||||||||||
The following tables detail the gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012. | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Description of Securities | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
U.S. agencies | $ | 1,954,005 | $ | (39,833 | ) | $ | — | $ | — | $ | 1,954,005 | $ | (39,833 | ) | ||||||
Collateralized mortgage obligations | — | — | — | — | — | — | ||||||||||||||
Municipalities | 3,088,970 | (58,075 | ) | — | — | 3,088,970 | (58,075 | ) | ||||||||||||
SBA Pools | — | — | 294,889 | (20 | ) | 294,889 | (20 | ) | ||||||||||||
Corporate debt | 749,164 | (836 | ) | — | — | 749,164 | (836 | ) | ||||||||||||
Mutual Fund | 2,493,512 | (6,487 | ) | — | — | 2,493,512 | (6,487 | ) | ||||||||||||
Total temporarily impaired securities | $ | 8,285,651 | $ | (105,231 | ) | $ | 294,889 | $ | (20 | ) | $ | 8,580,540 | $ | (105,251 | ) | |||||
We recognized gross realized gains of approximately $18,000 and $53,000 for the three and nine month periods ended September 30, 2013, respectively, on certain available-for-sale securities that were partially called, which compares to approximately $35,000 and $70,000 in the same periods of 2012. There were no realized losses during 2013 and 2012 periods. There were no sales of available-for-sale securities during the first nine months of 2013 and 2012. | ||||||||||||||||||||
Securities carried at $75,240,000 and $56,484,000 at September 30, 2013 and December 31, 2012, respectively, were pledged to secure deposits of public funds. |
LOANS
LOANS | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
NOTE 5 — LOANS | |||||||||||||||||||||||||||||
Our customers are primarily located in Stanislaus, San Joaquin, Tuolumne, Inyo, and Mono Counties. As of September 30, 2013, approximately 81% of the Company’s loans are commercial real estate loans which include construction loans. Approximately 11% of the Company’s loans are for general commercial uses including professional, retail, and small business. Additionally, 5% of the Company’s loans are for residential real estate and other consumer loans. The remaining 3% are agriculture loans. Loan totals were as follows: | |||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate- construction | $ | 14,294,985 | $ | 6,581,854 | |||||||||||||||||||||||||
Commercial real estate- mortgages | 287,586,666 | 278,766,279 | |||||||||||||||||||||||||||
Land | 11,027,837 | 14,269,477 | |||||||||||||||||||||||||||
Farmland | 20,764,811 | 16,456,921 | |||||||||||||||||||||||||||
Commercial and industrial | 44,994,021 | 36,528,505 | |||||||||||||||||||||||||||
Consumer | 884,357 | 1,095,801 | |||||||||||||||||||||||||||
Consumer residential | 23,212,516 | 25,659,090 | |||||||||||||||||||||||||||
Agriculture | 11,091,240 | 11,628,260 | |||||||||||||||||||||||||||
Total loans | 413,856,433 | 390,986,187 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Deferred loan fees and costs, net | (642,525 | ) | (599,851 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (7,669,305 | ) | (7,974,975 | ) | |||||||||||||||||||||||||
Net loans | $ | 405,544,603 | $ | 382,411,361 | |||||||||||||||||||||||||
Loan Origination/Risk Management. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentration of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. | |||||||||||||||||||||||||||||
Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, our management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | |||||||||||||||||||||||||||||
Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. At September 30, 2013, commercial real estate loans equal to approximately 34.5% of the outstanding principal balance of our commercial real estate loans were secured by owner-occupied properties. | |||||||||||||||||||||||||||||
With respect to loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. | |||||||||||||||||||||||||||||
The Company originates consumer loans utilizing a computer-based credit scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by line and staff personnel. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans follow bank policy, which include, but are not limited to, a maximum loan-to-value percentage of 80%, a maximum housing and total debt ratio of 36% and 42%, respectively and other specified credit and documentation requirements. | |||||||||||||||||||||||||||||
The Company maintains an independent loan review department that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. | |||||||||||||||||||||||||||||
Non-Accrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||||||||||||||||||||
Non-accrual loans, segregated by class of loans, were as follows: | |||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate- construction | $ | 0 | $ | 126,427 | |||||||||||||||||||||||||
Commercial real estate- mortgages | 2,273,961 | 3,345,098 | |||||||||||||||||||||||||||
Land | 1,188,002 | 2,419,223 | |||||||||||||||||||||||||||
Farmland | 97,433 | 0 | |||||||||||||||||||||||||||
Commercial and industrial | 18,919 | 21,311 | |||||||||||||||||||||||||||
Consumer | 0 | 0 | |||||||||||||||||||||||||||
Consumer residential | 0 | 1,010,998 | |||||||||||||||||||||||||||
Agriculture | 0 | 0 | |||||||||||||||||||||||||||
Total non-accrual loans | $ | 3,578,315 | $ | 6,923,057 | |||||||||||||||||||||||||
Had non-accrual loans performed in accordance with their original contract terms, we would have recognized additional interest income of approximately $172,000 and $487,000 in three and nine month periods ended September 30, 2013, respectively, as compared to $178,000 and $514,000 in the same periods of 2012. | |||||||||||||||||||||||||||||
The following table analyzes past due loans including the non-accrual loans in the above table, segregated by class of loans, as of September 30, 2013: | |||||||||||||||||||||||||||||
September 30, 2013 | 30-59 | 60-89 | Greater | Total Past | Current | Total | Greater | ||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Than 90 | |||||||||||||||||||||||||
Due | Due | Days Past | Days Past | ||||||||||||||||||||||||||
Due | Due and | ||||||||||||||||||||||||||||
Still | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 14,294,985 | $ | 14,294,985 | $ | 0 | |||||||||||||||
Commercial R.E. - mortgages | 0 | 1,227,478 | 1,046,483 | 2,273,961 | 285,312,705 | 287,586,666 | 0 | ||||||||||||||||||||||
Land | 0 | 2,735,626 | 658,232 | 3,393,858 | 7,633,979 | 11,027,837 | 0 | ||||||||||||||||||||||
Farmland | 0 | 0 | 97,433 | 97,433 | 20,667,378 | 20,764,811 | 0 | ||||||||||||||||||||||
Commercial and industrial | 0 | 337,151 | 0 | 337,151 | 44,656,870 | 44,994,021 | 0 | ||||||||||||||||||||||
Consumer | 120 | 0 | 0 | 120 | 884,237 | 884,357 | 0 | ||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | 23,212,516 | 23,212,516 | 0 | ||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 11,091,240 | 11,091,240 | 0 | ||||||||||||||||||||||
Total | $ | 120 | $ | 4,300,255 | $ | 1,802,148 | $ | 6,102,523 | $ | 407,753,910 | $ | 413,856,433 | $ | 0 | |||||||||||||||
The following table analyzes past due loans including the non-accrual loans in the above table, segregated by class of loans, as of December 31, 2012: | |||||||||||||||||||||||||||||
December 31, 2012 | 30-59 | 60-89 | Greater | Total Past | Current | Total | Greater | ||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Than 90 | |||||||||||||||||||||||||
Due | Due | Days Past | Days Past | ||||||||||||||||||||||||||
Due | Due and | ||||||||||||||||||||||||||||
Still | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 0 | $ | 0 | $ | 126,427 | $ | 126,427 | $ | 6,455,427 | $ | 6,581,854 | $ | 0 | |||||||||||||||
Commercial R.E. - mortgages | 55,089 | 623,118 | 2,386,688 | 3,064,895 | 275,701,384 | 278,766,279 | 0 | ||||||||||||||||||||||
Land | 0 | 54,427 | 2,364,797 | 2,419,224 | 11,850,253 | 14,269,477 | 0 | ||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | 16,456,921 | 16,456,921 | 0 | ||||||||||||||||||||||
Commercial and industrial | 16,138 | 0 | 0 | 16,138 | 36,512,367 | 36,528,505 | 0 | ||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 1,095,801 | 1,095,801 | 0 | ||||||||||||||||||||||
Consumer residential | 0 | 0 | 1,010,998 | 1,010,998 | 24,648,092 | 25,659,090 | 0 | ||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 11,628,260 | 11,628,260 | 0 | ||||||||||||||||||||||
Total | $ | 71,227 | $ | 677,545 | $ | 5,888,910 | $ | 6,637,682 | $ | 384,348,505 | $ | 390,986,187 | $ | 0 | |||||||||||||||
Impaired Loans. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. There was no interest income realized on impaired loans for the three and nine months ended September 30, 2013 and 2012. Average recorded investment in impaired loans was $2,970,000 and $4,484,000 for the three and nine months ended September 30, 2013, respectively, as compared to $6,898,000 and $6,727,000 for the same periods of 2012. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||||||||||||||||||||
Impaired loans as of September 30, 2013 and December 31, 2012 are set forth in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired. | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||||||||
Principal | With No | With | Investment | Investment | |||||||||||||||||||||||||
Balance | Allowance | Allowance | |||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 68,603 | |||||||||||||||||
Commercial R.E. - mortgages | 4,636,774 | 2,273,961 | 0 | 2,273,961 | 0 | 2,086,389 | |||||||||||||||||||||||
Land | 1,319,519 | 0 | 1,188,002 | 1,188,002 | 397,530 | 1,785,764 | |||||||||||||||||||||||
Farmland | 98,913 | 97,433 | 0 | 97,433 | 0 | 50,409 | |||||||||||||||||||||||
Commercial and Industrial | 27,305 | 18,919 | 0 | 18,919 | 0 | 20,199 | |||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | 0 | 472,166 | |||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total | $ | 6,082,511 | $ | 2,390,313 | $ | 1,188,002 | $ | 3,578,315 | $ | 397,530 | $ | 4,483,530 | |||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||||||||
Principal | With No | With | Investment | Investment | |||||||||||||||||||||||||
Balance | Allowance | Allowance | |||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 193,027 | $ | 0 | $ | 126,427 | $ | 126,427 | $ | 2,872 | $ | 222,757 | |||||||||||||||||
Commercial R.E. - mortgages | 5,728,716 | 1,875,320 | 1,469,777 | 3,345,097 | 136,015 | 3,093,523 | |||||||||||||||||||||||
Land | 6,866,869 | 663,232 | 1,755,991 | 2,419,223 | 409,656 | 2,833,250 | |||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Commercial and Industrial | 27,812 | 21,311 | 0 | 21,311 | 0 | 52,822 | |||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Consumer residential | 1,034,884 | 1,010,999 | 0 | 1,010,999 | 0 | 534,578 | |||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | $ | 13,851,308 | $ | 3,570,862 | $ | 3,352,195 | $ | 6,923,057 | $ | 548,543 | $ | 6,736,930 | |||||||||||||||||
Troubled Debt Restructurings — In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. | |||||||||||||||||||||||||||||
At September 30, 2013, there were 3 loans and leases that were considered to be troubled debt restructurings, all of which are considered non-accrual totaling $1,207,000. At December 31, 2012, there were 6 loans and leases that were considered to be troubled debt restructurings, all of which are considered non-accrual totaling $2,567,000. The decrease of three TDR loans during the first nine months of 2013 is due in part to a foreclosure on a loan totaling $54,000 that was subsequently sold. At December 31, 2012 there were unfunded commitments of $1,697,000, respectively, on one loan classified as a troubled debt restructure because of an agreement with a borrower to continue advancing funds and covering overhead costs on a residential development project. This loan and one other loan made to the same borrower totaling $1,303,000 were paid off during the second quarter of 2013. There were no unfunded commitments on TDR loans at September 30, 2013. We have allocated $398,000 and $413,000 of specific reserves to loans whose terms have been modified in troubled debt restructurings as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||
During the three month periods ended September 30, 2013 and 2012, there were no loans modified as troubled debt restructuring. During the nine month period ended September 30, 2013, the terms of one loan were modified as troubled debt restructurings, and there were two loans modified as troubled debt restructuring in the comparable period of 2012. The modification of the terms of such loans typically includes one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date; or a temporary payment modification in which the payment amount allocated towards principal was reduced. In some cases, a permanent reduction of the accrued interest on the loan is conceded. | |||||||||||||||||||||||||||||
The following table presents loans by class modified as troubled debt restructurings that occurred during the nine month period ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||||||||||
of | Modification | Modification | of | Modification | Modification | ||||||||||||||||||||||||
Loans | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | 0 | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | |||||||||||||||||||
Commercial R.E. - mortgages | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Land | 1 | 541,594 | 541,594 | 1 | 58,261 | 58,261 | |||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Commercial and Industrial | 0 | 0 | 0 | 1 | 28,180 | 28,180 | |||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | 1 | $ | 541,594 | $ | 541,594 | 2 | $ | 86,441 | $ | 86,441 | |||||||||||||||||||
The troubled debt restructuring during the nine months ended September 30, 2013 did not increase the allowance for loan losses as a result of loan modifications because the loans are evaluated as an impaired loan and a specific valuation allowance would have already been allocated, if necessary, prior to the loan modification. There were no charge-offs as a result of loan modifications, as the contractual balances outstanding were determined to be collectible. | |||||||||||||||||||||||||||||
The following table presents loans by class modified as troubled debt restructurings within the previous twelve months and for which there was a payment default during the nine month periods ended September 30, 2013 and 2012. None of these modified loans had a payment default during the three month periods ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||
of Loans | Investment | of Loans | Investment | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | 0 | 0 | 1 | $ | 113,552 | ||||||||||||||||||||||||
Commercial R.E. - mortgages | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Land | 1 | 54,427 | 1 | 1,197,418 | |||||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Commercial and Industrial | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Total | 1 | $ | 54,427 | 2 | $ | 1,310,970 | |||||||||||||||||||||||
A loan is considered to be in payment default once it is ninety days contractually past due under the modified terms. | |||||||||||||||||||||||||||||
Quality ratings (Risk Grades) are assigned to all commitments and stand-alone notes. Risk grades define the basic characteristics of commitments or stand-alone note in relation to their risk. All loans are graded using a system that maximizes the loan quality information contained in loan review grades, while ensuring that the system is compatible with the grades used by bank examiners. | |||||||||||||||||||||||||||||
We grade loans using the following letter system: | |||||||||||||||||||||||||||||
1 Exceptional Loan | |||||||||||||||||||||||||||||
2 Quality Loan | |||||||||||||||||||||||||||||
3A Better Than Acceptable Loan | |||||||||||||||||||||||||||||
3B Acceptable Loan | |||||||||||||||||||||||||||||
3C Marginally Acceptable Loan | |||||||||||||||||||||||||||||
4 (W) Watch Acceptable Loan | |||||||||||||||||||||||||||||
5 Other Loans Especially Mentioned | |||||||||||||||||||||||||||||
6 Substandard Loan | |||||||||||||||||||||||||||||
7 Doubtful Loan | |||||||||||||||||||||||||||||
8 Loss | |||||||||||||||||||||||||||||
1. Exceptional Loan - Loans with A+ credits that contain very little, if any, risk. Grade 1 loans are considered Pass. To qualify for this rating, the following characteristics must be present: | |||||||||||||||||||||||||||||
·A high level of liquidity and whose debt-servicing capacity exceeds expected obligations by a substantial margin. | |||||||||||||||||||||||||||||
·Where leverage is below average for the industry and earnings are consistent or growing without severe vulnerability to economic cycles. | |||||||||||||||||||||||||||||
·Also included in this rating (but not mandatory unless one or more of the preceding characteristics are missing) are loans that are fully secured and properly margined by our own time instruments or U.S. blue chip securities. To be properly margined cash collateral must be equal to, or greater than, 110% of the loan amount. | |||||||||||||||||||||||||||||
2. Quality Loan - Loans with excellent sources of repayment that conform in all respects to bank policy and regulatory requirements. These are also loans for which little repayment risk has been identified. No credit or collateral exceptions. Grade 2 loans are considered Pass. Other factors include: | |||||||||||||||||||||||||||||
·Unquestionable debt-servicing capacity to cover all obligations in the ordinary course of business from well-defined primary and secondary sources. | |||||||||||||||||||||||||||||
·Consistent strong earnings. | |||||||||||||||||||||||||||||
·A solid equity base. | |||||||||||||||||||||||||||||
3A. Better than Acceptable Loan - In the interest of better delineating the loan portfolio’s true credit risk for reserve allocation, further granularity has been sought by splitting the grade 3 category into three classifications. The distinction between the three are bank-defined guidelines and represent a further refinement of the regulatory definition of a pass, or grade 3 loan. Grade 3A is the stronger third of the pass category, but is not strong enough to be a grade 2 and is characterized by: | |||||||||||||||||||||||||||||
·Strong earnings with no loss in last three years and ample cash flow to service all debt well above policy guidelines. | |||||||||||||||||||||||||||||
·Long term experienced management with depth and defined management succession. | |||||||||||||||||||||||||||||
·The loan has no exceptions to policy. | |||||||||||||||||||||||||||||
·Loan-to-value on real estate secured transactions is 10% to 20% less than policy guidelines. | |||||||||||||||||||||||||||||
·Very liquid balance sheet that may have cash available to pay off our loan completely. | |||||||||||||||||||||||||||||
·Little to no debt on balance sheet. | |||||||||||||||||||||||||||||
3B. Acceptable Loan - 3B loans are simply defined as all loans that are less qualified than 3A loans and are stronger than 3C loans. These loans are characterized by acceptable sources of repayment that conform to bank policy and regulatory requirements. Repayment risks are acceptable for these loans. Credit or collateral exceptions are minimal, are in the process of correction, and do not represent repayment risk. These loans: | |||||||||||||||||||||||||||||
·Are those where the borrower has average financial strengths, a history of profitable operations and experienced management. | |||||||||||||||||||||||||||||
·Are those where the borrower can be expected to handle normal credit needs in a satisfactory manner. | |||||||||||||||||||||||||||||
3C. Marginally Acceptable - 3C loans have similar characteristics as that of 3Bs with the following additional characteristics: | |||||||||||||||||||||||||||||
Requires collateral. A credit facility where the borrower has average financial strengths, but usually lacks reliable secondary sources of repayment other than the subject collateral. Other common characteristics can include some or all of the following: minimal background experience of management, lacking continuity of management, a start-up operation, erratic historical profitability (acceptable reasons-well identified), lack of or marginal sponsorship of guarantor, and government guaranteed loans. | |||||||||||||||||||||||||||||
4W Watch Acceptable - Watch grade will be assigned to any credit that is adequately secured and performing but monitored for a number of indicators. These characteristics may include any unexpected short-term adverse financial performance from budgeted projections or prior period’s results (i.e., declining profits, sales, margins, cash flow, or increased reliance on leverage, including adverse balance sheet ratios, trade debt issues, etc.). Additionally, any managerial or personal problems of company management, decline in the entire industry or local economic conditions failure to provide financial information or other documentation as requested; issues regarding delinquency, overdrafts, or renewals; and any other issues that cause concern for the company. Loans to individuals or loans supported by guarantors with marginal net worth and/or marginal collateral. Weakness identified in a Watch credit is short-term in nature. Loans in this category are usually accounts the Bank would want to retain providing a positive turnaround can be expected within a reasonable time frame. Grade 4 loans are considered Pass. | |||||||||||||||||||||||||||||
5 Other Loans Especially Mentioned (Special Mention) - A special mention extension of credit is defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date result in the deterioration of the repayment prospects for the credit or the institution’s credit position. Extensions of credit that might be detailed in this category include the following: | |||||||||||||||||||||||||||||
·The lending officer may be unable to properly supervise the credit because of an inadequate loan or credit agreement. | |||||||||||||||||||||||||||||
·Questions exist regarding the condition of and/or control over collateral. | |||||||||||||||||||||||||||||
·Economic or market conditions may unfavorably affect the obligor in the future. | |||||||||||||||||||||||||||||
·A declining trend in the obligor’s operations or an imbalanced position in the balance sheet exists, but not to the point that repayment is jeopardized. | |||||||||||||||||||||||||||||
6 Substandard Loan - A “substandard” extension of credit is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Extensions of credit so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard credits, does not have to exist in individual extensions of credit classified substandard. | |||||||||||||||||||||||||||||
7 Doubtful Loan - An extension of credit classified “doubtful” has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high but because of certain important and reasonably specific pending factors that may work to the advantage of and strengthen the credit, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceedings, capital injection, perfecting liens on additional collateral or refinancing plans. The entire loan need not be classified doubtful when collection of a specific portion appears highly probable. An example of proper use of the doubtful category is the case of a company being liquidated, with the trustee-in-bankruptcy indicating a minimum disbursement of 40 percent and a maximum of 65 percent to unsecured creditors, including the Bank. In this situation, estimates are based on liquidation value appraisals with actual values yet to be realized. By definition, the only portion of the credit that is doubtful is the 25 percent difference between 40 and 65 percent. | |||||||||||||||||||||||||||||
A proper classification of such a credit would show 40 percent substandard, 25 percent doubtful, and 35 percent loss. A credit classified as doubtful should be resolved within a ‘reasonable’ period of time. Reasonable is generally defined as the period between examinations. In other words, a credit classified doubtful at an examination should be cleared up before the next exam. However, there may be situations that warrant continuation of the doubtful classification a while longer. | |||||||||||||||||||||||||||||
8. Loss - Extensions of credit classified “loss” are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the credit has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off, even though partial recovery may be affected in the future. It should not be the Company’s practice to attempt long-term recoveries while the credit remains on the books. Losses should be taken in the period in which they surface as uncollectible. | |||||||||||||||||||||||||||||
As of September 30, 2013, there are no loans that are classified with a risk grade of 8- Loss. | |||||||||||||||||||||||||||||
The following table presents weighted average risk grades of our loan portfolio: | |||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||||||||||
Risk Grade | Risk Grade | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate - construction | 3.64 | 3.23 | |||||||||||||||||||||||||||
Commercial real estate - mortgages | 3.15 | 3.22 | |||||||||||||||||||||||||||
Land | 4.55 | 4.56 | |||||||||||||||||||||||||||
Farmland | 3.01 | 3.04 | |||||||||||||||||||||||||||
Commercial and Industrial | 3 | 3.09 | |||||||||||||||||||||||||||
Consumer | 2.35 | 2.55 | |||||||||||||||||||||||||||
Consumer residential | 3.02 | 3.17 | |||||||||||||||||||||||||||
Agriculture | 3.28 | 3.5 | |||||||||||||||||||||||||||
Total gross loans | 3.18 | 3.25 | |||||||||||||||||||||||||||
The following table presents risk grade totals by class of loans as of September 30, 2013 and December 31, 2012. Risk grades 1 through 4 have been aggregated in the “Pass” line. | |||||||||||||||||||||||||||||
Dollars in thousands | Commercial R.E. | Commercial R.E. | Land | Farmland | Commercial and | Consumer | Consumer | Agriculture | Total | ||||||||||||||||||||
Construction | Mortgages | Industrial | Residential | ||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Pass | $ | 14,294,985 | $ | 278,632,256 | $ | 7,104,209 | $ | 20,667,378 | $ | 43,961,408 | $ | 867,858 | $ | 23,092,516 | $ | 11,091,240 | $ | 399,711,850 | |||||||||||
Special mention | — | 3,799,906 | — | — | 265,272 | — | — | — | 4,065,178 | ||||||||||||||||||||
Substandard | — | 5,154,504 | 3,923,628 | 97,433 | 767,341 | 16,499 | 120,000 | — | 10,079,405 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total loans | $ | 14,294,985 | $ | 287,586,666 | $ | 11,027,837 | $ | 20,764,811 | $ | 44,994,021 | $ | 884,357 | $ | 23,212,516 | $ | 11,091,240 | $ | 413,856,433 | |||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Pass | $ | 6,455,427 | $ | 263,567,665 | $ | 8,974,864 | $ | 16,456,921 | $ | 35,435,491 | $ | 1,079,583 | $ | 24,257,465 | $ | 10,291,678 | $ | 366,519,094 | |||||||||||
Special mention | — | 7,832,840 | — | — | 280,631 | — | — | 1,336,582 | 9,450,053 | ||||||||||||||||||||
Substandard | 126,427 | 7,365,774 | 5,294,613 | — | 812,383 | 16,218 | 1,401,625 | — | 15,017,040 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total loans | $ | 6,581,854 | $ | 278,766,279 | $ | 14,269,477 | $ | 16,456,921 | $ | 36,528,505 | $ | 1,095,801 | $ | 25,659,090 | $ | 11,628,260 | $ | 390,986,187 | |||||||||||
Allowance for Loan Losses. The allowance for loan losses is a reserve established by the Company through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The allowance for loan loss methodology includes allowance allocations calculated in accordance with ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to non-accrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for loan losses also reflects the totality of actions taken on all loans for a particular period. In other words, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowances for specific loans or loan pools. | |||||||||||||||||||||||||||||
The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including, among other things, the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. | |||||||||||||||||||||||||||||
The Company’s allowance for loan losses consists of three elements: (i) specific valuation allowances determined in accordance with ASC Topic 310 based on probable losses on specific loans; (ii) historical valuation allowances determined in accordance with ASC Topic 450 based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted, as necessary, to reflect the impact of current conditions; and (iii) general valuation allowances determined in accordance with ASC Topic 450 based on general economic conditions and other qualitative risk factors both internal and external to the Bank and the Company. | |||||||||||||||||||||||||||||
The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial loans. When a loan has a calculated grade of 5 or higher, a special assets officer analyzes the loan to determine whether the loan is impaired and, if impaired, the need to specifically allocate a portion of the allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. | |||||||||||||||||||||||||||||
Historical valuation allowances are calculated based on the historical loss experience of specific types of loans and the internal risk grade of such loans at the time they were charged-off. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical loss ratios are periodically updated based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and the total dollar amount of the loans in the pool. The Company’s pools of similar loans include similarly risk-graded groups of commercial and industrial loans, commercial real estate loans, consumer real estate loans and consumer and other loans. | |||||||||||||||||||||||||||||
General valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Bank and the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) the experience, ability and effectiveness of the Bank’s lending management and staff; (ii) the effectiveness of the Bank’s loan policies, procedures and internal controls; (iii) changes in asset quality; (iv) changes in loan portfolio volume; (v) the composition and concentrations of credit; (vi) the impact of competition on loan structuring and pricing; (vii) the effectiveness of the internal loan review function; (viii) the impact of environmental risks on portfolio risks; and (ix) the impact of rising interest rates on portfolio risk. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to have either a high, moderate or low degree of risk. The results are then input into a “general allocation matrix” to determine an appropriate general valuation allowance. | |||||||||||||||||||||||||||||
Included in the general valuation allowances are allocations for groups of similar loans with risk characteristics that exceed certain concentration limits established by management. Concentration risk limits have been established, among other things, for certain industry concentrations, large balance and highly leveraged credit relationships that exceed specified risk grades, and loans originated with policy exceptions that exceed specified risk grades. | |||||||||||||||||||||||||||||
Loans identified as losses by management, internal loan review and/or bank examiners are charged-off. Furthermore, consumer loan accounts are charged-off automatically based on regulatory requirements. | |||||||||||||||||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. | |||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
For the Three and Nine Months Ended September 30, 2013 and 2012 | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||
Real Estate | and Industrial | Consumer | Residential | Agriculture | Unallocated | Total | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,375,872 | $ | 485,268 | $ | 42,443 | $ | 380,155 | $ | 186,120 | $ | 100,452 | $ | 7,570,310 | |||||||||||||||
Charge-offs | 0 | 0 | (3,595 | ) | 0 | 0 | 0 | (3,595 | ) | ||||||||||||||||||||
Recoveries | 500 | 0 | 348 | 1,742 | 0 | 0 | 2,590 | ||||||||||||||||||||||
Provision | 32,237 | 70,121 | 2,143 | (45,537 | ) | 25,436 | 15,600 | 100,000 | |||||||||||||||||||||
Ending balance | $ | 6,408,609 | $ | 555,389 | $ | 41,339 | $ | 336,360 | $ | 211,556 | $ | 116,052 | $ | 7,669,305 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,571,290 | $ | 473,727 | $ | 50,062 | $ | 383,653 | $ | 285,734 | $ | 210,509 | $ | 7,974,975 | |||||||||||||||
Charge-offs | (436,036 | ) | 0 | (9,198 | ) | (178,090 | ) | 0 | 0 | (623,324 | ) | ||||||||||||||||||
Recoveries | 8,235 | 0 | 2,827 | 6,592 | 0 | 0 | 17,654 | ||||||||||||||||||||||
Provision | 265,120 | 81,662 | (2,352 | ) | 124,205 | (74,178 | ) | (94,457 | ) | 300,000 | |||||||||||||||||||
Ending balance | $ | 6,408,609 | $ | 555,389 | $ | 41,339 | $ | 336,360 | $ | 211,556 | $ | 116,052 | $ | 7,669,305 | |||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,657,657 | $ | 409,740 | $ | 52,872 | $ | 506,991 | $ | 225,235 | $ | 155,453 | $ | 8,007,948 | |||||||||||||||
Charge-offs | (218,373 | ) | 0 | (3,721 | ) | (149,897 | ) | 0 | 0 | (371,991 | ) | ||||||||||||||||||
Recoveries | 6,207 | 0 | 1,071 | 10,242 | 0 | 0 | 17,520 | ||||||||||||||||||||||
Provision | 70,979 | 75,526 | 1,070 | 38,452 | 23,142 | 90,831 | 300,000 | ||||||||||||||||||||||
Ending balance | $ | 6,516,470 | $ | 485,266 | $ | 51,292 | $ | 405,788 | $ | 248,377 | $ | 246,284 | $ | 7,953,477 | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,969,004 | $ | 606,307 | $ | 65,060 | $ | 347,905 | $ | 363,174 | $ | 257,724 | $ | 8,609,174 | |||||||||||||||
Charge-offs | (1,428,713 | ) | 0 | (24,372 | ) | (149,897 | ) | 0 | 0 | (1,602,982 | ) | ||||||||||||||||||
Recoveries | 29,200 | 926 | 3,311 | 13,848 | 0 | 0 | 47,285 | ||||||||||||||||||||||
Provision | 946,979 | (121,967 | ) | 7,293 | 193,932 | (114,797 | ) | (11,440 | ) | 900,000 | |||||||||||||||||||
Ending balance | $ | 6,516,470 | $ | 485,266 | $ | 51,292 | $ | 405,788 | $ | 248,377 | $ | 246,284 | $ | 7,953,477 | |||||||||||||||
The following table details the allowance for loan losses and ending gross loan balances as of September 30, 2013 and December 31, 2012, summarized by collective and individual evaluation methods of impairment. | |||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||
Real Estate | and Industrial | Consumer | Residential | Agriculture | Unallocated | Total | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for loan losses for loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 397,530 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 397,530 | |||||||||||||||
Collectively evaluated for impairment | 6,011,079 | 555,389 | 41,339 | 336,360 | 211,556 | 116,052 | 7,271,775 | ||||||||||||||||||||||
$ | 6,408,609 | $ | 555,389 | $ | 41,339 | $ | 336,360 | $ | 211,556 | $ | 116,052 | $ | 7,669,305 | ||||||||||||||||
Ending gross loan balances: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,559,396 | $ | 18,919 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,578,315 | |||||||||||||||
Collectively evaluated for impairment | 330,114,903 | 44,975,102 | 884,357 | 23,212,516 | 11,091,240 | 0 | 410,278,118 | ||||||||||||||||||||||
$ | 333,674,299 | $ | 44,994,021 | $ | 884,357 | $ | 23,212,516 | $ | 11,091,240 | $ | 0 | $ | 413,856,433 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Allowance for loan losses for loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 548,543 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 548,543 | |||||||||||||||
Collectively evaluated for impairment | 6,022,747 | 473,727 | 50,062 | 383,653 | 285,734 | 210,509 | 7,426,432 | ||||||||||||||||||||||
$ | 6,571,290 | $ | 473,727 | $ | 50,062 | $ | 383,653 | $ | 285,734 | $ | 210,509 | $ | 7,974,975 | ||||||||||||||||
Ending gross loan balances: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,890,748 | $ | 21,311 | $ | 0 | $ | 1,010,998 | $ | 0 | $ | 0 | $ | 6,923,057 | |||||||||||||||
Collectively evaluated for impairment | 310,183,783 | 36,507,194 | 1,095,801 | 24,648,092 | 11,628,260 | 0 | 384,063,130 | ||||||||||||||||||||||
$ | 316,074,531 | $ | 36,528,505 | $ | 1,095,801 | $ | 25,659,090 | $ | 11,628,260 | $ | 0 | $ | 390,986,187 | ||||||||||||||||
Changes in the reserve for off-balance-sheet commitments were as follows: | |||||||||||||||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Balance, beginning of period | $ | 121,524 | $ | 116,002 | $ | 108,209 | $ | 119,202 | |||||||||||||||||||||
Provision (Recovery) to Operations for Off Balance Sheet Commitments | 18,214 | (11,127 | ) | 31,529 | (14,327 | ) | |||||||||||||||||||||||
Balance, end of period | $ | 139,738 | $ | 104,875 | $ | 139,738 | $ | 104,875 | |||||||||||||||||||||
The method for calculating the reserve for off-balance-sheet loan commitments is based on a reserve percentage which is less than other outstanding loan types because they are at a lower risk level. This reserve percentage, based on many factors including historical losses and existing economic conditions, is evaluated by management periodically and is applied to the total undisbursed loan commitment balance to calculate the reserve for off-balance-sheet commitments. Reserves for off-balance-sheet commitments are recorded in interest payable and other liabilities on the condensed consolidated balance sheets. | |||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, loans carried at $413,856,433 and $390,986,187, respectively, were pledged as collateral on advances from the Federal Home Loan Bank. |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2013 | |
OTHER REAL ESTATE OWNED | ' |
OTHER REAL ESTATE OWNED | ' |
NOTE 6 — OTHER REAL ESTATE OWNED | |
As of September 30, 2013, the Company owned three properties with outstanding balances of approximately $916,000, as compared to one property consisting of residential land that was written down to a zero balance that was classified as other real estate as of December 31, 2012. Each of these properties was acquired through loan foreclosure. The residential land property the Company owned at September 30, 2013 and December 31, 2012, was written down to a zero balance because the public utilities have not been obtainable rendering these land lots unmarketable at this time. There were two sales liquidating 8 OREO properties during the nine months ended September 30, 2013 resulting in a gain on sale of approximately $17,000, as compared to one sale recorded in the first nine months of 2012 that resulted in a gain on sale of approximately $4,000. | |
Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at the lower of carrying amount of the loan or fair value of the property at the date of foreclosure less selling costs. Subsequent to foreclosure, valuations are periodically performed and any subject revisions in the estimate of fair value are reported as adjustment to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Revenues and expenses from operations and changes in the valuation allowance are included in other operating expenses. |
OTHER_POSTRETIREMENT_BENEFIT_P
OTHER POST-RETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2013 | |
OTHER POST-RETIREMENT BENEFIT PLANS | ' |
OTHER POST-RETIREMENT BENEFIT PLANS | ' |
NOTE 7 — OTHER POST-RETIREMENT BENEFIT PLANS | |
During January 2008, the Bank awarded certain officers a salary continuation plan (the “Plan”). Under the Plan, the participants will be provided with a fixed annual retirement benefit for twenty years after retirement. The Bank is also responsible for certain pre-retirement death benefits under the Plan. In connection with the implementation of the Plan, the Bank purchased single premium life insurance policies on the life of each of the officers covered under the Plan. The Bank is the owner and partial beneficiary of these life insurance policies. The assets of the Plan, under Internal Revenue Service regulations, are owned by the Bank and are available to satisfy the Company’s general creditors. | |
During January 2008 the Bank awarded two of its directors a director retirement plan (“DRP”). Under the DRP, the participants will be provided with a fixed annual retirement benefit for ten years after retirement. The Bank is also responsible for certain pre-retirement death benefits under the DRP. In connection with the implementation of the DRP, the Bank purchased single premium life insurance policies on the life of each director covered under the DRP. The Bank is the owner and partial beneficiary of these life insurance policies. The assets of the DRP, under Internal Revenue Service regulations, are the property of the Bank and are available to satisfy the Bank’s general creditors. | |
Future compensation under both plans is earned for services rendered through retirement. The Bank accrues for the salary continuation liability based on anticipated years of service and vesting schedules provided under the plans. The Bank’s current benefit liability is determined based on vesting and the present value of the benefits at a corresponding discount rate. The discount rate used is an equivalent rate for investment-grade bonds with lives matching those of the service periods remaining for the salary continuation contracts, which average approximately 20 years. The salary continuation liability as of September 30, 2013 and December 31, 2012 was $1,973,000 and $1,800,000, respectively, and is reported in interest payable and other liabilities on the condensed consolidated balance sheets. | |
During January 2008, the Bank purchased $4.7 million in bank owned life insurance policies and entered into split-dollar life insurance agreements with certain officers and directors. In connection with the implementation of the split-dollar agreements, the Bank purchased single premium life insurance policies on the life of each of the officers and directors covered by the split-dollar life insurance agreements. The Bank is the owner of the policies and the partial beneficiary in an amount equal to the cash surrender value of the policies. | |
The combined cash surrender value of all Bank-owned life insurance policies recorded in other assets on the condensed consolidated balance sheet was $11,986,000 and $11,680,000 at September 30, 2013 and December 31, 2012, respectively. |
FINANCIAL_INSTRUMENTS_AND_FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ' | |||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ' | |||||||||||||
NOTE 8 — FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ||||||||||||||
Fair values of financial instruments — The consolidated financial statements include various estimated fair value information as of September 30, 2013 and December 31, 2012. Such information, which pertains to the Company’s financial instruments, does not purport to represent the aggregate net fair value of the Company. Further, the fair value estimates are based on various assumptions, methodologies, and subjective considerations, which vary widely among different financial institutions and which are subject to change. | ||||||||||||||
Fair value measurements defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follow: | ||||||||||||||
Level 1: Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||
Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstance that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. | ||||||||||||||
Following is a description of valuation methodologies used for assets and liabilities in the tables below: | ||||||||||||||
Cash and cash equivalents — The carrying amounts of cash and cash equivalents approximate their fair value and are considered a level 1 valuation. | ||||||||||||||
Restricted Equity Securities- The carrying amounts of the stock the Company’s owns in FRB and FHLB approximate their fair value and are considered a level 2 valuation. | ||||||||||||||
Loans receivable — For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair values for other loans (e.g., real estate construction and mortgage, commercial, and installment loans) are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The allowance for loan losses is considered to be a reasonable estimate of loan discount due to credit risks. The Company’s fair value model takes into account many inputs including current market rates on new loans, the U.S. treasury yield curve, LIBOR yield curve, rate floors, rate ceilings, remaining maturity, and average life based on specific loan type. Net loans are considered to be a level 3 valuation. | ||||||||||||||
Deposit liabilities — The fair values estimated for demand deposits (interest and non-interest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amounts). The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of the aggregate expected monthly maturities on time deposits. The fair value of deposits is determined by the Company’s internal assets and liabilities modeling system that accounts for various inputs such as decay rates, rate floors, FHLB yield curve, maturities and current rates offered on new accounts. Fair value on deposits is considered a level 3 valuation. | ||||||||||||||
Interest receivable and payable - The carrying amounts of accrued interest approximate their fair value and are considered to be a level 2 valuation. | ||||||||||||||
Off-balance-sheet instruments — Fair values for the Bank’s off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit standing of the counterparties. The Company considers the Bank’s off balance sheet instruments to be a level 3 valuation. | ||||||||||||||
The estimated fair values of the Company’s financial instruments at September 30, 2013 were as follows: | ||||||||||||||
Hierarchy | ||||||||||||||
Carrying | Fair | Valuation | ||||||||||||
Amount | Value | Level | ||||||||||||
Financial assets: | ||||||||||||||
Cash and cash equivalents | $ | 99,807,827 | $ | 99,807,827 | 1 | |||||||||
Restricted equity securities | 3,170,250 | 3,170,250 | 2 | |||||||||||
Loans, net | 405,544,603 | 420,202,001 | 3 | |||||||||||
Interest receivable | 1,755,110 | 1,755,110 | 2 | |||||||||||
Financial liabilities: | ||||||||||||||
Deposits | (591,642,194 | ) | (578,619,845 | ) | 3 | |||||||||
Interest payable | (57,595 | ) | (57,595 | ) | 2 | |||||||||
Off-balance-sheet assets (liabilities): | ||||||||||||||
Commitments and standby letters of credit | (550,057 | ) | 3 | |||||||||||
The estimated fair values of the Company’s financial instruments at December 31, 2012 were as follows: | ||||||||||||||
Hierarchy | ||||||||||||||
Carrying | Fair | Valuation | ||||||||||||
Amount | Value | Level | ||||||||||||
Financial assets: | ||||||||||||||
Cash and cash equivalents | $ | 141,334,998 | $ | 141,334,998 | 1 | |||||||||
Restricted equity securities | 3,129,750 | 3,129,750 | 2 | |||||||||||
Loans, net | 382,411,361 | 398,029,908 | 3 | |||||||||||
Interest receivable | 1,654,474 | 1,654,474 | 2 | |||||||||||
Financial liabilities: | ||||||||||||||
Deposits | (586,992,650 | ) | (587,430,712 | ) | 3 | |||||||||
Interest payable | (67,958 | ) | (67,958 | ) | 2 | |||||||||
Off-balance-sheet assets (liabilities): | ||||||||||||||
Commitments and standby letters of credit | (422,036 | ) | 3 | |||||||||||
The following table presents the carrying value of recurring and nonrecurring financial instruments that were measured at fair value and that were still held in the statements of condition at each respective period end, by level within the fair value hierarchy as of September 30, 2013 and December 31, 2012. | ||||||||||||||
Fair Value Measurements at September 30, 2013 Using | ||||||||||||||
September 30, | Quoted Prices | Significant | Significant | |||||||||||
2013 | in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets and liabilities measured on a recurring basis: | ||||||||||||||
Available-for-sale securities: | ||||||||||||||
U.S. agencies | $ | 53,311,218 | $ | 0 | $ | 53,311,218 | $ | 0 | ||||||
Collateralized mortgage obligations | 10,427,918 | 0 | 10,427,918 | 0 | ||||||||||
Municipalities | 38,837,299 | 0 | 38,837,299 | 0 | ||||||||||
SBA Pools | 1,097,487 | 0 | 1,097,487 | 0 | ||||||||||
Corporate Debt | 4,797,646 | 0 | 4,797,646 | 0 | ||||||||||
Asset backed securities | 5,848,520 | 0 | 5,848,520 | |||||||||||
Mutual Fund | 2,822,308 | 2,822,308 | 0 | 0 | ||||||||||
Assets and liabilities measured on a non-recurring basis: | ||||||||||||||
Impaired loans: | ||||||||||||||
Land | $ | 1,188,002 | 0 | 0 | $ | 1,188,002 | ||||||||
Other real estate owned | $ | 916,205 | $ | 0 | $ | 0 | $ | 916,205 | ||||||
Fair Value Measurements at December 31, 2012 Using | ||||||||||||||
December 31, | Quoted Prices | Significant | Significant | |||||||||||
2012 | in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets and liabilities measured on a recurring basis: | ||||||||||||||
Available-for-sale securities | ||||||||||||||
U.S. agencies | $ | 55,517,059 | $ | 0 | $ | 55,517,059 | $ | 0 | ||||||
Collateralized mortgage obligations | 12,604,384 | 0 | 12,604,384 | 0 | ||||||||||
Municipalities | 26,992,288 | 0 | 26,992,288 | 0 | ||||||||||
SBA Pools | 1,178,308 | 0 | 1,178,308 | 0 | ||||||||||
Corporate debt | 4,705,602 | 0 | 4,705,602 | 0 | ||||||||||
Mutual Fund | 2,868,240 | 2,868,240 | 0 | 0 | ||||||||||
Assets and liabilities measured on a non-recurring basis: | ||||||||||||||
Impaired Loans: | ||||||||||||||
Commercial real estate- construction | 126,427 | $ | 0 | $ | 0 | $ | 426,427 | |||||||
Commercial real estate- mortgages | 3,097,923 | $ | 0 | $ | 0 | $ | 3,097,923 | |||||||
Land | 1,755,991 | $ | 0 | $ | 0 | $ | 1,755,991 | |||||||
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. | ||||||||||||||
Available-for-sale securities- Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, if available. If quoted market 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. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. 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 where significant inputs are unobservable. | ||||||||||||||
Impaired loans - ASC Topic 820 applies to loans measured for impairment using the practical expedients permitted by ASC Topic 310, Accounting by Creditors for Impairment of a Loan. The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Impaired loans where an allowance is established based on the fair value of collateral less the cost related to liquidation of the collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as non-recurring Level 3. Likewise, when an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as non-recurring Level 3. | ||||||||||||||
Other Real Estate Owned - Other real estate assets (“OREO”) acquired through, or in lieu of, foreclosure are held-for-sale and are initially recorded at the lower of cost or fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for loan losses, subsequent to foreclosure. Appraisals or evaluations are then done periodically thereafter charging any additional write-downs or valuation allowances to the appropriate expense accounts. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. OREO is classified within Level 3 of the hierarchy. | ||||||||||||||
Net realizable value of the underlying collateral is the fair value of the collateral less estimated selling costs and any prior liens. Appraisals, recent comparable sales, offers and listing prices are factored in when valuing the collateral. We review and verify the qualifications and licenses of the certified general appraisers used for appraising commercial properties or certified residential appraisers for residential properties. Real estate appraisals may utilize a combination of approaches including replacement cost, sales comparison and the income approach. Comparable sales and income data are analyzed by the appraisers and adjusted to reflect differences between them and the subject property such as type, leasing status and physical condition. When the appraisals are received, Management reviews the assumptions and methodology utilized in the appraisal, as well as the overall resulting value in conjunction with independent data sources such as recent market data and industry-wide statistics. We generally use a 6% discount for selling costs which is applied to all properties, regardless of size. Appraised values may be adjusted to reflect changes in market conditions that have occurred subsequent to the appraisal date, or for revised estimates regarding the timing or cost of the property sale. These adjustments are based on qualitative judgments made by management on a case-by-case basis. | ||||||||||||||
There have been no significant changes in the valuation techniques during the periods ended September 30, 2013. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
NOTE 9 — EARNINGS PER SHARE | ||||||||
Earnings per share (“EPS”) are based upon the weighted average number of common shares outstanding during each year. The following table shows: (1) weighted average basic shares, (2) effect of dilutive securities related to stock options and non-vested restricted stock, and (3) weighted average shares of common stock and common stock equivalents. Net income available to common stockholders is calculated as net income reduced by dividends accumulated on preferred stock. Basic EPS are calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average diluted shares, which reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive shares included in year-to-date diluted EPS is a weighted average of the dilutive shares included in each quarterly diluted EPS computation under the treasury stock method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of restricted stock awards receive non-forfeitable dividends at the same rate as common stockholders and they both share equally in undistributed earnings. | ||||||||
The Company’s calculation of basic and diluted earnings per share (“EPS”) for the three and nine month periods ended September 30, 2013 and 2012 are reflected in the table below. | ||||||||
THREE MONTHS ENDED | ||||||||
SEPTEMBER 30, | ||||||||
In thousands (except share and per share amounts) | 2013 | 2012 | ||||||
BASIC EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 1,505,220 | $ | 1,394,456 | ||||
Weighted average shares outstanding | 7,802,705 | 7,750,727 | ||||||
Net income per common share | $ | 0.19 | $ | 0.18 | ||||
DILUTED EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 1,505,220 | $ | 1,394,456 | ||||
Weighted average shares outstanding | 7,802,705 | 7,750,727 | ||||||
Effect of dilutive stock options | 8,397 | 6,917 | ||||||
Effect of dilutive non-vested restricted shares | 40,055 | 20,502 | ||||||
Weighted average shares of common stock and common stock equivalents | 7,851,157 | 7,778,146 | ||||||
Net income per diluted common share | $ | 0.19 | $ | 0.18 | ||||
NINE MONTHS ENDED | ||||||||
SEPTEMBER 30, | ||||||||
In thousands (except share and per share amounts) | 2013 | 2012 | ||||||
BASIC EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 4,111,542 | $ | 3,924,196 | ||||
Weighted average shares outstanding | 7,794,439 | 7,733,848 | ||||||
Net income per common share | $ | 0.53 | $ | 0.51 | ||||
DILUTED EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 4,111,542 | $ | 3,924,196 | ||||
Weighted average shares outstanding | 7,794,439 | 7,733,848 | ||||||
Effect of dilutive stock options | 10,428 | 11,934 | ||||||
Effect of dilutive non-vested restricted shares | 36,729 | 11,972 | ||||||
Weighted average shares of common stock and common stock equivalents | 7,841,596 | 7,757,754 | ||||||
Net income per diluted common share | $ | 0.52 | $ | 0.51 | ||||
During the three and nine month periods ended September 30, 2013, anti-dilutive weighted average options to purchase 69,500 and 71,313 shares of common stock, respectively, were outstanding with prices ranging from $8.25 to $15.67. Anti-dilutive weighted average stock options of 202,750 and 208,375 were outstanding during the three and nine month periods of 2012, respectively, with prices ranging from $7.04 to $15.67. These options were not included in the computation of diluted EPS because the options’ exercise price was greater than the average market price of the common shares. These options begin to expire in 2015. | ||||||||
There were no anti-dilutive non-vested restricted stock grants for the three and nine months ended September 30, 2013 and 2012. |
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
Schedule of the amortized cost and estimated fair values of debt securities | ' | |||||||||||||||||||
The amortized cost and estimated fair values of debt securities as of September 30, 2013 are as follows: | ||||||||||||||||||||
Amortized Cost | Gross | Gross | Fair Value | |||||||||||||||||
Unrealized | Unrealized | |||||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
U.S. agencies | $ | 52,622,388 | $ | 1,953,129 | $ | (1,264,298 | ) | $ | 53,311,218 | |||||||||||
Collateralized mortgage obligations | 10,195,441 | 301,335 | (68,859 | ) | 10,427,918 | |||||||||||||||
Municipalities | 41,318,794 | 898,084 | (3,379,578 | ) | 38,837,299 | |||||||||||||||
SBA Pools | 1,102,217 | 0 | (4,730 | ) | 1,097,487 | |||||||||||||||
Corporate debt | 4,690,201 | 107,445 | 0 | 4,797,646 | ||||||||||||||||
Asset Backed Securities | 5,849,203 | 18,872 | (19,555 | ) | 5,848,520 | |||||||||||||||
Mutual Fund | 2,949,126 | 0 | (126,819 | ) | 2,822,308 | |||||||||||||||
$ | 118,727,370 | $ | 3,278,865 | $ | (4,863,839 | ) | $ | 117,142,396 | ||||||||||||
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | |||||||||||||||||||
The following tables detail the gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013. | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Description of Securities | Fair Value | Unrealized | Fair | Unrealized | Fair Value | Unrealized | ||||||||||||||
Loss | Value | Loss | Loss | |||||||||||||||||
U.S. agencies | $ | 20,097,272 | $ | (1,015,959 | ) | $ | 1,747,229 | $ | (248,339 | ) | $ | 21,844,501 | $ | (1,264,298 | ) | |||||
Collateralized mortgage obligations | 1,672,944 | (68,859 | ) | 0 | 0 | 1,672,944 | (68,859 | ) | ||||||||||||
Municipalities | 26,848,775 | (3,254,021 | ) | 1,024,109 | (125,557 | ) | 27,872,884 | (3,379,578 | ) | |||||||||||
SBA Pools | 847,113 | (3,598 | ) | 250,376 | (1,132 | ) | 1,097,489 | (4,730 | ) | |||||||||||
Corporate debt | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Asset Backed Securities | 3,899,340 | (19,555 | ) | 0 | 0 | 3,899,340 | (19,555 | ) | ||||||||||||
Mutual Fund | 2,822,308 | (126,819 | ) | 0 | 0 | 2,822,308 | (126,819 | ) | ||||||||||||
Total temporarily impaired securities | $ | 56,187,752 | $ | (4,488,811 | ) | $ | 3,021,714 | $ | (375,028 | ) | $ | 59,209,466 | $ | (4,863,839 | ) | |||||
The following tables detail the gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2012. | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Description of Securities | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
U.S. agencies | $ | 1,954,005 | $ | (39,833 | ) | $ | — | $ | — | $ | 1,954,005 | $ | (39,833 | ) | ||||||
Collateralized mortgage obligations | — | — | — | — | — | — | ||||||||||||||
Municipalities | 3,088,970 | (58,075 | ) | — | — | 3,088,970 | (58,075 | ) | ||||||||||||
SBA Pools | — | — | 294,889 | (20 | ) | 294,889 | (20 | ) | ||||||||||||
Corporate debt | 749,164 | (836 | ) | — | — | 749,164 | (836 | ) | ||||||||||||
Mutual Fund | 2,493,512 | (6,487 | ) | — | — | 2,493,512 | (6,487 | ) | ||||||||||||
Total temporarily impaired securities | $ | 8,285,651 | $ | (105,231 | ) | $ | 294,889 | $ | (20 | ) | $ | 8,580,540 | $ | (105,251 | ) | |||||
Schedule of the amortized cost and estimated fair value of debt securities by contractual maturity or call date | ' | |||||||||||||||||||
The amortized cost and estimated fair value of debt securities at September 30, 2013, by contractual maturity or call date, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Due in one year or less | $ | 14,884,900 | $ | 13,835,637 | ||||||||||||||||
Due after one year through five years | 20,467,867 | 21,497,654 | ||||||||||||||||||
Due after five years through ten years | 43,203,072 | 41,259,614 | ||||||||||||||||||
Due after ten years | 40,171,531 | 40,549,491 | ||||||||||||||||||
$ | 118,727,370 | $ | 117,142,396 | |||||||||||||||||
The amortized cost and estimated fair values of debt securities as of December 31, 2012, are as follows: | ||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
U.S. agencies | $ | 52,607,537 | $ | 2,949,355 | $ | (39,833 | ) | $ | 55,517,059 | |||||||||||
Collateralized mortgage obligations | 11,698,399 | 905,985 | — | 12,604,384 | ||||||||||||||||
Municipalities | 25,323,157 | 1,727,206 | (58,075 | ) | 26,992,288 | |||||||||||||||
SBA Pools | 1,178,242 | 86 | (20 | ) | 1,178,308 | |||||||||||||||
Corporate debt | 4,669,390 | 37,048 | (836 | ) | 4,705,602 | |||||||||||||||
Mutual Fund | 2,874,727 | — | (6,487 | ) | 2,868,240 | |||||||||||||||
$ | 98,351,452 | $ | 5,619,680 | $ | (105,251 | ) | $ | 103,865,881 |
LOANS_Tables
LOANS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
Schedule of net loans, by loan type | ' | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate- construction | $ | 14,294,985 | $ | 6,581,854 | |||||||||||||||||||||||||
Commercial real estate- mortgages | 287,586,666 | 278,766,279 | |||||||||||||||||||||||||||
Land | 11,027,837 | 14,269,477 | |||||||||||||||||||||||||||
Farmland | 20,764,811 | 16,456,921 | |||||||||||||||||||||||||||
Commercial and industrial | 44,994,021 | 36,528,505 | |||||||||||||||||||||||||||
Consumer | 884,357 | 1,095,801 | |||||||||||||||||||||||||||
Consumer residential | 23,212,516 | 25,659,090 | |||||||||||||||||||||||||||
Agriculture | 11,091,240 | 11,628,260 | |||||||||||||||||||||||||||
Total loans | 413,856,433 | 390,986,187 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Deferred loan fees and costs, net | (642,525 | ) | (599,851 | ) | |||||||||||||||||||||||||
Allowance for loan losses | (7,669,305 | ) | (7,974,975 | ) | |||||||||||||||||||||||||
Net loans | $ | 405,544,603 | $ | 382,411,361 | |||||||||||||||||||||||||
Schedule of non-accrual loans, segregated by class of loans | ' | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate- construction | $ | 0 | $ | 126,427 | |||||||||||||||||||||||||
Commercial real estate- mortgages | 2,273,961 | 3,345,098 | |||||||||||||||||||||||||||
Land | 1,188,002 | 2,419,223 | |||||||||||||||||||||||||||
Farmland | 97,433 | 0 | |||||||||||||||||||||||||||
Commercial and industrial | 18,919 | 21,311 | |||||||||||||||||||||||||||
Consumer | 0 | 0 | |||||||||||||||||||||||||||
Consumer residential | 0 | 1,010,998 | |||||||||||||||||||||||||||
Agriculture | 0 | 0 | |||||||||||||||||||||||||||
Total non-accrual loans | $ | 3,578,315 | $ | 6,923,057 | |||||||||||||||||||||||||
Schedule analyzing past due loans including the non-accrual loans, segregated by class of loans | ' | ||||||||||||||||||||||||||||
September 30, 2013 | 30-59 | 60-89 | Greater | Total Past | Current | Total | Greater | ||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Than 90 | |||||||||||||||||||||||||
Due | Due | Days Past | Days Past | ||||||||||||||||||||||||||
Due | Due and | ||||||||||||||||||||||||||||
Still | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 14,294,985 | $ | 14,294,985 | $ | 0 | |||||||||||||||
Commercial R.E. - mortgages | 0 | 1,227,478 | 1,046,483 | 2,273,961 | 285,312,705 | 287,586,666 | 0 | ||||||||||||||||||||||
Land | 0 | 2,735,626 | 658,232 | 3,393,858 | 7,633,979 | 11,027,837 | 0 | ||||||||||||||||||||||
Farmland | 0 | 0 | 97,433 | 97,433 | 20,667,378 | 20,764,811 | 0 | ||||||||||||||||||||||
Commercial and industrial | 0 | 337,151 | 0 | 337,151 | 44,656,870 | 44,994,021 | 0 | ||||||||||||||||||||||
Consumer | 120 | 0 | 0 | 120 | 884,237 | 884,357 | 0 | ||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | 23,212,516 | 23,212,516 | 0 | ||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 11,091,240 | 11,091,240 | 0 | ||||||||||||||||||||||
Total | $ | 120 | $ | 4,300,255 | $ | 1,802,148 | $ | 6,102,523 | $ | 407,753,910 | $ | 413,856,433 | $ | 0 | |||||||||||||||
December 31, 2012 | 30-59 | 60-89 | Greater | Total Past | Current | Total | Greater | ||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Than 90 | |||||||||||||||||||||||||
Due | Due | Days Past | Days Past | ||||||||||||||||||||||||||
Due | Due and | ||||||||||||||||||||||||||||
Still | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 0 | $ | 0 | $ | 126,427 | $ | 126,427 | $ | 6,455,427 | $ | 6,581,854 | $ | 0 | |||||||||||||||
Commercial R.E. - mortgages | 55,089 | 623,118 | 2,386,688 | 3,064,895 | 275,701,384 | 278,766,279 | 0 | ||||||||||||||||||||||
Land | 0 | 54,427 | 2,364,797 | 2,419,224 | 11,850,253 | 14,269,477 | 0 | ||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | 16,456,921 | 16,456,921 | 0 | ||||||||||||||||||||||
Commercial and industrial | 16,138 | 0 | 0 | 16,138 | 36,512,367 | 36,528,505 | 0 | ||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 1,095,801 | 1,095,801 | 0 | ||||||||||||||||||||||
Consumer residential | 0 | 0 | 1,010,998 | 1,010,998 | 24,648,092 | 25,659,090 | 0 | ||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 11,628,260 | 11,628,260 | 0 | ||||||||||||||||||||||
Total | $ | 71,227 | $ | 677,545 | $ | 5,888,910 | $ | 6,637,682 | $ | 384,348,505 | $ | 390,986,187 | $ | 0 | |||||||||||||||
Schedule of impaired loans | ' | ||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||||||||
Principal | With No | With | Investment | Investment | |||||||||||||||||||||||||
Balance | Allowance | Allowance | |||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 68,603 | |||||||||||||||||
Commercial R.E. - mortgages | 4,636,774 | 2,273,961 | 0 | 2,273,961 | 0 | 2,086,389 | |||||||||||||||||||||||
Land | 1,319,519 | 0 | 1,188,002 | 1,188,002 | 397,530 | 1,785,764 | |||||||||||||||||||||||
Farmland | 98,913 | 97,433 | 0 | 97,433 | 0 | 50,409 | |||||||||||||||||||||||
Commercial and Industrial | 27,305 | 18,919 | 0 | 18,919 | 0 | 20,199 | |||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | 0 | 472,166 | |||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Total | $ | 6,082,511 | $ | 2,390,313 | $ | 1,188,002 | $ | 3,578,315 | $ | 397,530 | $ | 4,483,530 | |||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||||||||
Principal | With No | With | Investment | Investment | |||||||||||||||||||||||||
Balance | Allowance | Allowance | |||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | $ | 193,027 | $ | 0 | $ | 126,427 | $ | 126,427 | $ | 2,872 | $ | 222,757 | |||||||||||||||||
Commercial R.E. - mortgages | 5,728,716 | 1,875,320 | 1,469,777 | 3,345,097 | 136,015 | 3,093,523 | |||||||||||||||||||||||
Land | 6,866,869 | 663,232 | 1,755,991 | 2,419,223 | 409,656 | 2,833,250 | |||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Commercial and Industrial | 27,812 | 21,311 | 0 | 21,311 | 0 | 52,822 | |||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Consumer residential | 1,034,884 | 1,010,999 | 0 | 1,010,999 | 0 | 534,578 | |||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | $ | 13,851,308 | $ | 3,570,862 | $ | 3,352,195 | $ | 6,923,057 | $ | 548,543 | $ | 6,736,930 | |||||||||||||||||
Schedule of loans by class modified as troubled debt restructurings | ' | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
Number | Pre- | Post- | Number | Pre- | Post- | ||||||||||||||||||||||||
of | Modification | Modification | of | Modification | Modification | ||||||||||||||||||||||||
Loans | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | 0 | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | |||||||||||||||||||
Commercial R.E. - mortgages | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Land | 1 | 541,594 | 541,594 | 1 | 58,261 | 58,261 | |||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Commercial and Industrial | 0 | 0 | 0 | 1 | 28,180 | 28,180 | |||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Total | 1 | $ | 541,594 | $ | 541,594 | 2 | $ | 86,441 | $ | 86,441 | |||||||||||||||||||
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months and for which there was a payment default | ' | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||
of Loans | Investment | of Loans | Investment | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial R.E. - construction | 0 | 0 | 1 | $ | 113,552 | ||||||||||||||||||||||||
Commercial R.E. - mortgages | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Land | 1 | 54,427 | 1 | 1,197,418 | |||||||||||||||||||||||||
Farmland | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Commercial and Industrial | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Consumer residential | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Agriculture | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Total | 1 | $ | 54,427 | 2 | $ | 1,310,970 | |||||||||||||||||||||||
Schedule of weighted average risk grades of the loan portfolio | ' | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Weighted Average | Weighted Average | ||||||||||||||||||||||||||||
Risk Grade | Risk Grade | ||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Commercial real estate - construction | 3.64 | 3.23 | |||||||||||||||||||||||||||
Commercial real estate - mortgages | 3.15 | 3.22 | |||||||||||||||||||||||||||
Land | 4.55 | 4.56 | |||||||||||||||||||||||||||
Farmland | 3.01 | 3.04 | |||||||||||||||||||||||||||
Commercial and Industrial | 3 | 3.09 | |||||||||||||||||||||||||||
Consumer | 2.35 | 2.55 | |||||||||||||||||||||||||||
Consumer residential | 3.02 | 3.17 | |||||||||||||||||||||||||||
Agriculture | 3.28 | 3.5 | |||||||||||||||||||||||||||
Total gross loans | 3.18 | 3.25 | |||||||||||||||||||||||||||
Schedule of loans by class categorized by internally assigned risk grades | ' | ||||||||||||||||||||||||||||
Dollars in thousands | Commercial R.E. | Commercial R.E. | Land | Farmland | Commercial and | Consumer | Consumer | Agriculture | Total | ||||||||||||||||||||
Construction | Mortgages | Industrial | Residential | ||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Pass | $ | 14,294,985 | $ | 278,632,256 | $ | 7,104,209 | $ | 20,667,378 | $ | 43,961,408 | $ | 867,858 | $ | 23,092,516 | $ | 11,091,240 | $ | 399,711,850 | |||||||||||
Special mention | — | 3,799,906 | — | — | 265,272 | — | — | — | 4,065,178 | ||||||||||||||||||||
Substandard | — | 5,154,504 | 3,923,628 | 97,433 | 767,341 | 16,499 | 120,000 | — | 10,079,405 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total loans | $ | 14,294,985 | $ | 287,586,666 | $ | 11,027,837 | $ | 20,764,811 | $ | 44,994,021 | $ | 884,357 | $ | 23,212,516 | $ | 11,091,240 | $ | 413,856,433 | |||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Pass | $ | 6,455,427 | $ | 263,567,665 | $ | 8,974,864 | $ | 16,456,921 | $ | 35,435,491 | $ | 1,079,583 | $ | 24,257,465 | $ | 10,291,678 | $ | 366,519,094 | |||||||||||
Special mention | — | 7,832,840 | — | — | 280,631 | — | — | 1,336,582 | 9,450,053 | ||||||||||||||||||||
Substandard | 126,427 | 7,365,774 | 5,294,613 | — | 812,383 | 16,218 | 1,401,625 | — | 15,017,040 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total loans | $ | 6,581,854 | $ | 278,766,279 | $ | 14,269,477 | $ | 16,456,921 | $ | 36,528,505 | $ | 1,095,801 | $ | 25,659,090 | $ | 11,628,260 | $ | 390,986,187 | |||||||||||
Schedule of activity in the allowance for loan losses by portfolio segment | ' | ||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||
Real Estate | and Industrial | Consumer | Residential | Agriculture | Unallocated | Total | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,375,872 | $ | 485,268 | $ | 42,443 | $ | 380,155 | $ | 186,120 | $ | 100,452 | $ | 7,570,310 | |||||||||||||||
Charge-offs | 0 | 0 | (3,595 | ) | 0 | 0 | 0 | (3,595 | ) | ||||||||||||||||||||
Recoveries | 500 | 0 | 348 | 1,742 | 0 | 0 | 2,590 | ||||||||||||||||||||||
Provision | 32,237 | 70,121 | 2,143 | (45,537 | ) | 25,436 | 15,600 | 100,000 | |||||||||||||||||||||
Ending balance | $ | 6,408,609 | $ | 555,389 | $ | 41,339 | $ | 336,360 | $ | 211,556 | $ | 116,052 | $ | 7,669,305 | |||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,571,290 | $ | 473,727 | $ | 50,062 | $ | 383,653 | $ | 285,734 | $ | 210,509 | $ | 7,974,975 | |||||||||||||||
Charge-offs | (436,036 | ) | 0 | (9,198 | ) | (178,090 | ) | 0 | 0 | (623,324 | ) | ||||||||||||||||||
Recoveries | 8,235 | 0 | 2,827 | 6,592 | 0 | 0 | 17,654 | ||||||||||||||||||||||
Provision | 265,120 | 81,662 | (2,352 | ) | 124,205 | (74,178 | ) | (94,457 | ) | 300,000 | |||||||||||||||||||
Ending balance | $ | 6,408,609 | $ | 555,389 | $ | 41,339 | $ | 336,360 | $ | 211,556 | $ | 116,052 | $ | 7,669,305 | |||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,657,657 | $ | 409,740 | $ | 52,872 | $ | 506,991 | $ | 225,235 | $ | 155,453 | $ | 8,007,948 | |||||||||||||||
Charge-offs | (218,373 | ) | 0 | (3,721 | ) | (149,897 | ) | 0 | 0 | (371,991 | ) | ||||||||||||||||||
Recoveries | 6,207 | 0 | 1,071 | 10,242 | 0 | 0 | 17,520 | ||||||||||||||||||||||
Provision | 70,979 | 75,526 | 1,070 | 38,452 | 23,142 | 90,831 | 300,000 | ||||||||||||||||||||||
Ending balance | $ | 6,516,470 | $ | 485,266 | $ | 51,292 | $ | 405,788 | $ | 248,377 | $ | 246,284 | $ | 7,953,477 | |||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Beginning balance | $ | 6,969,004 | $ | 606,307 | $ | 65,060 | $ | 347,905 | $ | 363,174 | $ | 257,724 | $ | 8,609,174 | |||||||||||||||
Charge-offs | (1,428,713 | ) | 0 | (24,372 | ) | (149,897 | ) | 0 | 0 | (1,602,982 | ) | ||||||||||||||||||
Recoveries | 29,200 | 926 | 3,311 | 13,848 | 0 | 0 | 47,285 | ||||||||||||||||||||||
Provision | 946,979 | (121,967 | ) | 7,293 | 193,932 | (114,797 | ) | (11,440 | ) | 900,000 | |||||||||||||||||||
Ending balance | $ | 6,516,470 | $ | 485,266 | $ | 51,292 | $ | 405,788 | $ | 248,377 | $ | 246,284 | $ | 7,953,477 | |||||||||||||||
Schedule of the allowance for loan losses and ending gross loan balances summarized by collective and individual evaluation methods of impairment | ' | ||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | |||||||||||||||||||||||||||
Real Estate | and Industrial | Consumer | Residential | Agriculture | Unallocated | Total | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for loan losses for loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 397,530 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 397,530 | |||||||||||||||
Collectively evaluated for impairment | 6,011,079 | 555,389 | 41,339 | 336,360 | 211,556 | 116,052 | 7,271,775 | ||||||||||||||||||||||
$ | 6,408,609 | $ | 555,389 | $ | 41,339 | $ | 336,360 | $ | 211,556 | $ | 116,052 | $ | 7,669,305 | ||||||||||||||||
Ending gross loan balances: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,559,396 | $ | 18,919 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,578,315 | |||||||||||||||
Collectively evaluated for impairment | 330,114,903 | 44,975,102 | 884,357 | 23,212,516 | 11,091,240 | 0 | 410,278,118 | ||||||||||||||||||||||
$ | 333,674,299 | $ | 44,994,021 | $ | 884,357 | $ | 23,212,516 | $ | 11,091,240 | $ | 0 | $ | 413,856,433 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Allowance for loan losses for loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 548,543 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 548,543 | |||||||||||||||
Collectively evaluated for impairment | 6,022,747 | 473,727 | 50,062 | 383,653 | 285,734 | 210,509 | 7,426,432 | ||||||||||||||||||||||
$ | 6,571,290 | $ | 473,727 | $ | 50,062 | $ | 383,653 | $ | 285,734 | $ | 210,509 | $ | 7,974,975 | ||||||||||||||||
Ending gross loan balances: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,890,748 | $ | 21,311 | $ | 0 | $ | 1,010,998 | $ | 0 | $ | 0 | $ | 6,923,057 | |||||||||||||||
Collectively evaluated for impairment | 310,183,783 | 36,507,194 | 1,095,801 | 24,648,092 | 11,628,260 | 0 | 384,063,130 | ||||||||||||||||||||||
$ | 316,074,531 | $ | 36,528,505 | $ | 1,095,801 | $ | 25,659,090 | $ | 11,628,260 | $ | 0 | $ | 390,986,187 | ||||||||||||||||
Schedule of changes in the reserve for off-balance-sheet commitments | ' | ||||||||||||||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||||||||||||||
SEPTEMBER 30, | SEPTEMBER 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Balance, beginning of period | $ | 121,524 | $ | 116,002 | $ | 108,209 | $ | 119,202 | |||||||||||||||||||||
Provision (Recovery) to Operations for Off Balance Sheet Commitments | 18,214 | (11,127 | ) | 31,529 | (14,327 | ) | |||||||||||||||||||||||
Balance, end of period | $ | 139,738 | $ | 104,875 | $ | 139,738 | $ | 104,875 |
FINANCIAL_INSTRUMENTS_AND_FAIR1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ' | |||||||||||||
Summary of fair value estimates for financial instruments and their carrying values | ' | |||||||||||||
The estimated fair values of the Company’s financial instruments at September 30, 2013 were as follows: | ||||||||||||||
Hierarchy | ||||||||||||||
Carrying | Fair | Valuation | ||||||||||||
Amount | Value | Level | ||||||||||||
Financial assets: | ||||||||||||||
Cash and cash equivalents | $ | 99,807,827 | $ | 99,807,827 | 1 | |||||||||
Restricted equity securities | 3,170,250 | 3,170,250 | 2 | |||||||||||
Loans, net | 405,544,603 | 420,202,001 | 3 | |||||||||||
Interest receivable | 1,755,110 | 1,755,110 | 2 | |||||||||||
Financial liabilities: | ||||||||||||||
Deposits | (591,642,194 | ) | (578,619,845 | ) | 3 | |||||||||
Interest payable | (57,595 | ) | (57,595 | ) | 2 | |||||||||
Off-balance-sheet assets (liabilities): | ||||||||||||||
Commitments and standby letters of credit | (550,057 | ) | 3 | |||||||||||
The estimated fair values of the Company’s financial instruments at December 31, 2012 were as follows: | ||||||||||||||
Hierarchy | ||||||||||||||
Carrying | Fair | Valuation | ||||||||||||
Amount | Value | Level | ||||||||||||
Financial assets: | ||||||||||||||
Cash and cash equivalents | $ | 141,334,998 | $ | 141,334,998 | 1 | |||||||||
Restricted equity securities | 3,129,750 | 3,129,750 | 2 | |||||||||||
Loans, net | 382,411,361 | 398,029,908 | 3 | |||||||||||
Interest receivable | 1,654,474 | 1,654,474 | 2 | |||||||||||
Financial liabilities: | ||||||||||||||
Deposits | (586,992,650 | ) | (587,430,712 | ) | 3 | |||||||||
Interest payable | (67,958 | ) | (67,958 | ) | 2 | |||||||||
Off-balance-sheet assets (liabilities): | ||||||||||||||
Commitments and standby letters of credit | (422,036 | ) | 3 | |||||||||||
Schedule of carrying value of recurring and nonrecurring financial instruments measured at fair value | ' | |||||||||||||
Fair Value Measurements at September 30, 2013 Using | ||||||||||||||
September 30, | Quoted Prices | Significant | Significant | |||||||||||
2013 | in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets and liabilities measured on a recurring basis: | ||||||||||||||
Available-for-sale securities: | ||||||||||||||
U.S. agencies | $ | 53,311,218 | $ | 0 | $ | 53,311,218 | $ | 0 | ||||||
Collateralized mortgage obligations | 10,427,918 | 0 | 10,427,918 | 0 | ||||||||||
Municipalities | 38,837,299 | 0 | 38,837,299 | 0 | ||||||||||
SBA Pools | 1,097,487 | 0 | 1,097,487 | 0 | ||||||||||
Corporate Debt | 4,797,646 | 0 | 4,797,646 | 0 | ||||||||||
Asset backed securities | 5,848,520 | 0 | 5,848,520 | |||||||||||
Mutual Fund | 2,822,308 | 2,822,308 | 0 | 0 | ||||||||||
Assets and liabilities measured on a non-recurring basis: | ||||||||||||||
Impaired loans: | ||||||||||||||
Land | $ | 1,188,002 | 0 | 0 | $ | 1,188,002 | ||||||||
Other real estate owned | $ | 916,205 | $ | 0 | $ | 0 | $ | 916,205 | ||||||
Fair Value Measurements at December 31, 2012 Using | ||||||||||||||
December 31, | Quoted Prices | Significant | Significant | |||||||||||
2012 | in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets and liabilities measured on a recurring basis: | ||||||||||||||
Available-for-sale securities | ||||||||||||||
U.S. agencies | $ | 55,517,059 | $ | 0 | $ | 55,517,059 | $ | 0 | ||||||
Collateralized mortgage obligations | 12,604,384 | 0 | 12,604,384 | 0 | ||||||||||
Municipalities | 26,992,288 | 0 | 26,992,288 | 0 | ||||||||||
SBA Pools | 1,178,308 | 0 | 1,178,308 | 0 | ||||||||||
Corporate debt | 4,705,602 | 0 | 4,705,602 | 0 | ||||||||||
Mutual Fund | 2,868,240 | 2,868,240 | 0 | 0 | ||||||||||
Assets and liabilities measured on a non-recurring basis: | ||||||||||||||
Impaired Loans: | ||||||||||||||
Commercial real estate- construction | 126,427 | $ | 0 | $ | 0 | $ | 426,427 | |||||||
Commercial real estate- mortgages | 3,097,923 | $ | 0 | $ | 0 | $ | 3,097,923 | |||||||
Land | 1,755,991 | $ | 0 | $ | 0 | $ | 1,755,991 | |||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
EARNINGS PER SHARE | ' | |||||||
Schedule of calculation of basic and diluted earnings per share | ' | |||||||
THREE MONTHS ENDED | ||||||||
SEPTEMBER 30, | ||||||||
In thousands (except share and per share amounts) | 2013 | 2012 | ||||||
BASIC EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 1,505,220 | $ | 1,394,456 | ||||
Weighted average shares outstanding | 7,802,705 | 7,750,727 | ||||||
Net income per common share | $ | 0.19 | $ | 0.18 | ||||
DILUTED EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 1,505,220 | $ | 1,394,456 | ||||
Weighted average shares outstanding | 7,802,705 | 7,750,727 | ||||||
Effect of dilutive stock options | 8,397 | 6,917 | ||||||
Effect of dilutive non-vested restricted shares | 40,055 | 20,502 | ||||||
Weighted average shares of common stock and common stock equivalents | 7,851,157 | 7,778,146 | ||||||
Net income per diluted common share | $ | 0.19 | $ | 0.18 | ||||
NINE MONTHS ENDED | ||||||||
SEPTEMBER 30, | ||||||||
In thousands (except share and per share amounts) | 2013 | 2012 | ||||||
BASIC EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 4,111,542 | $ | 3,924,196 | ||||
Weighted average shares outstanding | 7,794,439 | 7,733,848 | ||||||
Net income per common share | $ | 0.53 | $ | 0.51 | ||||
DILUTED EARNINGS PER SHARE | ||||||||
Net income available to common shareholders | $ | 4,111,542 | $ | 3,924,196 | ||||
Weighted average shares outstanding | 7,794,439 | 7,733,848 | ||||||
Effect of dilutive stock options | 10,428 | 11,934 | ||||||
Effect of dilutive non-vested restricted shares | 36,729 | 11,972 | ||||||
Weighted average shares of common stock and common stock equivalents | 7,841,596 | 7,757,754 | ||||||
Net income per diluted common share | $ | 0.52 | $ | 0.51 |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) | 0 Months Ended |
Jul. 03, 2008 | |
BASIS OF PRESENTATION | ' |
Shares of the entity converted for each outstanding share of Oak Valley Community Bank as a result of which the Bank became a wholly-owned subsidiary of the entity | 1 |
PREFERRED_STOCK_REPURCHASE_AND1
PREFERRED STOCK REPURCHASE AND WARRANT REDEMPTION (Details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||
Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | Mar. 31, 2013 | 31-May-12 | Aug. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2011 | |
Series A Preferred stock | Series B Preferred stock | Series B Preferred stock | Series B Preferred stock | Series B Preferred stock | Series B Preferred stock | Common Stock | |||
PREFERRED STOCK REPURCHASE AND WARRANT REDEMPTION | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of stock originally issued to the U.S. Treasury | $6,750,000 | $6,750,000 | $13,500,000 | $6,750,000 | $6,750,000 | ' | ' | ' | ' |
Preferred stock issued to the U.S. Treasury under the SBLF program | ' | ' | ' | ' | ' | 13,500,000 | ' | ' | ' |
Warrant redeemed to purchase stock granted to the U.S. Treasury pursuant to participation in CPP (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 350,346 |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $5.78 |
Purchase price for redemption of warrant | ' | ' | ' | ' | ' | ' | ' | ' | 560,000 |
Repurchase of Series B preferred stock (in shares) | ' | ' | ' | 6,750 | 6,750 | ' | ' | ' | ' |
Outstanding shares of preferred stock | ' | ' | ' | ' | ' | ' | 0 | 6,750 | ' |
Accrued interest | ' | ' | ' | $67,500 | ' | ' | ' | ' | ' |
SECURITIES_Details
SECURITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | $118,727,370 | $98,351,452 |
Gross Unrealized Gains | 3,278,865 | 5,619,680 |
Gross Unrealized Losses | -4,863,839 | -105,251 |
Estimated Fair Value | 117,142,396 | 103,865,881 |
U.S. agencies | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 52,622,388 | 52,607,537 |
Gross Unrealized Gains | 1,953,129 | 2,949,355 |
Gross Unrealized Losses | -1,264,298 | -39,833 |
Estimated Fair Value | 53,311,218 | 55,517,059 |
Collateralized mortgage obligations | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 10,195,441 | 11,698,399 |
Gross Unrealized Gains | 301,335 | 905,985 |
Gross Unrealized Losses | -68,859 | ' |
Estimated Fair Value | 10,427,918 | 12,604,384 |
Municipalities | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 41,318,794 | 25,323,157 |
Gross Unrealized Gains | 898,084 | 1,727,206 |
Gross Unrealized Losses | -3,379,578 | -58,075 |
Estimated Fair Value | 38,837,299 | 26,992,288 |
SBA Pools | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 1,102,217 | 1,178,242 |
Gross Unrealized Gains | 0 | 86 |
Gross Unrealized Losses | -4,730 | -20 |
Estimated Fair Value | 1,097,487 | 1,178,308 |
Corporate debt | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 4,690,201 | 4,669,390 |
Gross Unrealized Gains | 107,445 | 37,048 |
Gross Unrealized Losses | 0 | -836 |
Estimated Fair Value | 4,797,646 | 4,705,602 |
Asset Backed Securities | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 5,849,203 | ' |
Gross Unrealized Gains | 18,872 | ' |
Gross Unrealized Losses | -19,555 | ' |
Estimated Fair Value | 5,848,520 | ' |
Mutual Fund | ' | ' |
Amortized cost and estimated fair values of debt securities | ' | ' |
Amortized Cost | 2,949,126 | 2,874,727 |
Gross Unrealized Gains | 0 | ' |
Gross Unrealized Losses | -126,819 | -6,487 |
Estimated Fair Value | $2,822,308 | $2,868,240 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | $56,187,752 | $8,285,651 |
Less than 12 months, Unrealized Loss | -4,488,811 | -105,231 |
12 months or more, Fair Value | 3,021,714 | 294,889 |
12 months or more, Unrealized Loss | -375,028 | -20 |
Total temporarily impaired securities, Fair Value | 59,209,466 | 8,580,540 |
Total temporarily impaired securities, Unrealized Loss | -4,863,839 | -105,251 |
U.S. agencies | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 20,097,272 | 1,954,005 |
Less than 12 months, Unrealized Loss | -1,015,959 | -39,833 |
12 months or more, Fair Value | 1,747,229 | ' |
12 months or more, Unrealized Loss | -248,339 | ' |
Total temporarily impaired securities, Fair Value | 21,844,501 | 1,954,005 |
Total temporarily impaired securities, Unrealized Loss | -1,264,298 | -39,833 |
Number of securities in an unrealized loss position for greater than 12 months | 1 | ' |
Number of securities in an unrealized loss position for less than 12 months | 12 | ' |
Collateralized mortgage obligations | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 1,672,944 | ' |
Less than 12 months, Unrealized Loss | -68,859 | ' |
12 months or more, Fair Value | 0 | ' |
12 months or more, Unrealized Loss | 0 | ' |
Total temporarily impaired securities, Fair Value | 1,672,944 | ' |
Total temporarily impaired securities, Unrealized Loss | -68,859 | ' |
Number of securities in an unrealized loss position for less than 12 months | 1 | ' |
Municipalities | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 26,848,775 | 3,088,970 |
Less than 12 months, Unrealized Loss | -3,254,021 | -58,075 |
12 months or more, Fair Value | 1,024,109 | ' |
12 months or more, Unrealized Loss | -125,557 | ' |
Total temporarily impaired securities, Fair Value | 27,872,884 | 3,088,970 |
Total temporarily impaired securities, Unrealized Loss | -3,379,578 | -58,075 |
Number of securities in an unrealized loss position for greater than 12 months | 2 | ' |
Number of securities in an unrealized loss position for less than 12 months | 34 | ' |
SBA Pools | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 847,113 | ' |
Less than 12 months, Unrealized Loss | -3,598 | ' |
12 months or more, Fair Value | 250,376 | 294,889 |
12 months or more, Unrealized Loss | -1,132 | -20 |
Total temporarily impaired securities, Fair Value | 1,097,489 | 294,889 |
Total temporarily impaired securities, Unrealized Loss | -4,730 | -20 |
Number of securities in an unrealized loss position for greater than 12 months | 1 | ' |
Number of securities in an unrealized loss position for less than 12 months | 1 | ' |
Corporate debt | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 0 | 749,164 |
Less than 12 months, Unrealized Loss | 0 | -836 |
12 months or more, Fair Value | 0 | ' |
12 months or more, Unrealized Loss | 0 | ' |
Total temporarily impaired securities, Fair Value | 0 | 749,164 |
Total temporarily impaired securities, Unrealized Loss | 0 | -836 |
Asset Backed Securities | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 3,899,340 | ' |
Less than 12 months, Unrealized Loss | -19,555 | ' |
12 months or more, Fair Value | 0 | ' |
12 months or more, Unrealized Loss | 0 | ' |
Total temporarily impaired securities, Fair Value | 3,899,340 | ' |
Total temporarily impaired securities, Unrealized Loss | -19,555 | ' |
Number of securities in an unrealized loss position for less than 12 months | 2 | ' |
Mutual Fund | ' | ' |
Gross unrealized losses and fair values of securities that have been in a continuous unrealized loss position | ' | ' |
Less than 12 months, Fair Value | 2,822,308 | 2,493,512 |
Less than 12 months, Unrealized Loss | -126,819 | -6,487 |
12 months or more, Fair Value | 0 | ' |
12 months or more, Unrealized Loss | 0 | ' |
Total temporarily impaired securities, Fair Value | 2,822,308 | 2,493,512 |
Total temporarily impaired securities, Unrealized Loss | ($126,819) | ($6,487) |
Number of securities in an unrealized loss position for less than 12 months | 1 | ' |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Available-for-sale securities, Amortized Cost | ' | ' | ' | ' | ' |
Due in one year or less | $14,884,900 | ' | $14,884,900 | ' | ' |
Due after one year through five years | 20,467,867 | ' | 20,467,867 | ' | ' |
Due after five years through ten years | 43,203,072 | ' | 43,203,072 | ' | ' |
Due after ten years | 40,171,531 | ' | 40,171,531 | ' | ' |
Amortized Cost | 118,727,370 | ' | 118,727,370 | ' | ' |
Available-for-sale securities, Estimated Fair Value | ' | ' | ' | ' | ' |
Due in one year or less | 13,835,637 | ' | 13,835,637 | ' | ' |
Due after one year through five years | 21,497,654 | ' | 21,497,654 | ' | ' |
Due after five years through ten years | 41,259,614 | ' | 41,259,614 | ' | ' |
Due after ten years | 40,549,491 | ' | 40,549,491 | ' | ' |
Estimated Fair Value | 117,142,396 | ' | 117,142,396 | ' | 103,865,881 |
Available-for-sale securities, other disclosure | ' | ' | ' | ' | ' |
Gain on partially called available-for-sale securities | 18,091 | 35,406 | 52,656 | 70,410 | ' |
Sales of available-for-sale securities | ' | ' | 0 | 0 | ' |
Securities pledged to secure deposits of public funds | $75,240,000 | ' | $75,240,000 | ' | $56,484,000 |
LOANS_Details
LOANS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | $413,856,433 | ' | $413,856,433 | ' | ' | $390,986,187 | ' | ' |
Deferred loan fees and costs, net | -642,525 | ' | -642,525 | ' | ' | -599,851 | ' | ' |
Allowance for loan losses | -7,669,305 | -7,953,477 | -7,669,305 | -7,953,477 | -7,570,310 | -7,974,975 | -8,007,948 | -8,609,174 |
Net loans | 405,544,603 | ' | 405,544,603 | ' | ' | 382,411,361 | ' | ' |
Non-accrual loans | 3,578,315 | ' | 3,578,315 | ' | ' | 6,923,057 | ' | ' |
Additional interest income that would have been recognized had non-accrual loans performed in accordance with their original contract terms | 172,000 | 178,000 | 487,000 | 514,000 | ' | ' | ' | ' |
Commercial real estate loans | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount as a percentage of total loans | 81.00% | ' | 81.00% | ' | ' | ' | ' | ' |
Total loans | 333,674,299 | ' | 333,674,299 | ' | ' | 316,074,531 | ' | ' |
Allowance for loan losses | -6,408,609 | -6,516,470 | -6,408,609 | -6,516,470 | -6,375,872 | -6,571,290 | -6,657,657 | -6,969,004 |
Percentage of outstanding principal balance of loans secured by owner-occupied properties | 34.50% | ' | 34.50% | ' | ' | ' | ' | ' |
Commercial real estate- construction | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | 14,294,985 | ' | 14,294,985 | ' | ' | 6,581,854 | ' | ' |
Non-accrual loans | 0 | ' | 0 | ' | ' | 126,427 | ' | ' |
Commercial real estate- mortgages | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | 287,586,666 | ' | 287,586,666 | ' | ' | 278,766,279 | ' | ' |
Non-accrual loans | 2,273,961 | ' | 2,273,961 | ' | ' | 3,345,098 | ' | ' |
Land | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | 11,027,837 | ' | 11,027,837 | ' | ' | 14,269,477 | ' | ' |
Non-accrual loans | 1,188,002 | ' | 1,188,002 | ' | ' | 2,419,223 | ' | ' |
Farmland | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | 20,764,811 | ' | 20,764,811 | ' | ' | 16,456,921 | ' | ' |
Non-accrual loans | 97,433 | ' | 97,433 | ' | ' | 0 | ' | ' |
Commercial and Industrial | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount as a percentage of total loans | 11.00% | ' | 11.00% | ' | ' | ' | ' | ' |
Total loans | 44,994,021 | ' | 44,994,021 | ' | ' | 36,528,505 | ' | ' |
Allowance for loan losses | -555,389 | -485,266 | -555,389 | -485,266 | -485,268 | -473,727 | -409,740 | -606,307 |
Non-accrual loans | 18,919 | ' | 18,919 | ' | ' | 21,311 | ' | ' |
Residential real estate and other consumer loans | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount as a percentage of total loans | 5.00% | ' | 5.00% | ' | ' | ' | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | 884,357 | ' | 884,357 | ' | ' | 1,095,801 | ' | ' |
Allowance for loan losses | -41,339 | -51,292 | -41,339 | -51,292 | -42,443 | -50,062 | -52,872 | -65,060 |
Non-accrual loans | 0 | ' | 0 | ' | ' | 0 | ' | ' |
Consumer residential | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans | 23,212,516 | ' | 23,212,516 | ' | ' | 25,659,090 | ' | ' |
Allowance for loan losses | -336,360 | -405,788 | -336,360 | -405,788 | -380,155 | -383,653 | -506,991 | -347,905 |
Non-accrual loans | 0 | ' | 0 | ' | ' | 1,010,998 | ' | ' |
Home equity loan | Maximum | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Loan-to-value percentage | 80.00% | ' | 80.00% | ' | ' | ' | ' | ' |
Housing percentage | 36.00% | ' | 36.00% | ' | ' | ' | ' | ' |
Total debt ratio (as a percent) | 42.00% | ' | 42.00% | ' | ' | ' | ' | ' |
Agriculture | ' | ' | ' | ' | ' | ' | ' | ' |
Classifications of loans | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount as a percentage of total loans | 3.00% | ' | 3.00% | ' | ' | ' | ' | ' |
Total loans | 11,091,240 | ' | 11,091,240 | ' | ' | 11,628,260 | ' | ' |
Allowance for loan losses | -211,556 | -248,377 | -211,556 | -248,377 | -186,120 | -285,734 | -225,235 | -363,174 |
Non-accrual loans | $0 | ' | $0 | ' | ' | $0 | ' | ' |
LOANS_Details_2
LOANS (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | $120 | $71,227 |
60-89 Days Past Due | 4,300,255 | 677,545 |
Greater Than 90 Days Past Due | 1,802,148 | 5,888,910 |
Total Past Due | 6,102,523 | 6,637,682 |
Current | 407,753,910 | 384,348,505 |
Total | 413,856,433 | 390,986,187 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Commercial R.E. Construction | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 126,427 |
Total Past Due | 0 | 126,427 |
Current | 14,294,985 | 6,455,427 |
Total | 14,294,985 | 6,581,854 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Commercial R.E. Mortgages | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 55,089 |
60-89 Days Past Due | 1,227,478 | 623,118 |
Greater Than 90 Days Past Due | 1,046,483 | 2,386,688 |
Total Past Due | 2,273,961 | 3,064,895 |
Current | 285,312,705 | 275,701,384 |
Total | 287,586,666 | 278,766,279 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Land | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 2,735,626 | 54,427 |
Greater Than 90 Days Past Due | 658,232 | 2,364,797 |
Total Past Due | 3,393,858 | 2,419,224 |
Current | 7,633,979 | 11,850,253 |
Total | 11,027,837 | 14,269,477 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Farmland | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 97,433 | 0 |
Total Past Due | 97,433 | 0 |
Current | 20,667,378 | 16,456,921 |
Total | 20,764,811 | 16,456,921 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Commercial and Industrial | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 16,138 |
60-89 Days Past Due | 337,151 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 337,151 | 16,138 |
Current | 44,656,870 | 36,512,367 |
Total | 44,994,021 | 36,528,505 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Consumer | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 120 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 120 | 0 |
Current | 884,237 | 1,095,801 |
Total | 884,357 | 1,095,801 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Consumer residential | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 1,010,998 |
Total Past Due | 0 | 1,010,998 |
Current | 23,212,516 | 24,648,092 |
Total | 23,212,516 | 25,659,090 |
Greater Than 90 Days Past Due and Still Accruing | 0 | 0 |
Agriculture | ' | ' |
Past due loans including non-accrual loans | ' | ' |
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 11,091,240 | 11,628,260 |
Total | 11,091,240 | 11,628,260 |
Greater Than 90 Days Past Due and Still Accruing | $0 | $0 |
LOANS_Details_3
LOANS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Impaired loans | ' | ' | ' | ' | ' |
Interest income realized on impaired loans | $0 | $0 | $0 | $0 | ' |
Unpaid Contractual Principal Balance | 6,082,511 | ' | 6,082,511 | ' | 13,851,308 |
Recorded Investment With No Allowance | 2,390,313 | ' | 2,390,313 | ' | 3,570,862 |
Recorded Investment With Allowance | 1,188,002 | ' | 1,188,002 | ' | 3,352,195 |
Total Recorded Investment | 3,578,315 | ' | 3,578,315 | ' | 6,923,057 |
Related Allowance | 397,530 | ' | 397,530 | ' | 548,543 |
Average Recorded Investment | 2,970,000 | 6,898,000 | 4,484,000 | 6,727,000 | 6,736,930 |
Commercial R.E. Construction | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 0 | ' | 0 | ' | 193,027 |
Recorded Investment With No Allowance | 0 | ' | 0 | ' | 0 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 126,427 |
Total Recorded Investment | 0 | ' | 0 | ' | 126,427 |
Related Allowance | 0 | ' | 0 | ' | 2,872 |
Average Recorded Investment | ' | ' | 68,603 | ' | 222,757 |
Commercial R.E. Mortgages | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 4,636,774 | ' | 4,636,774 | ' | 5,728,716 |
Recorded Investment With No Allowance | 2,273,961 | ' | 2,273,961 | ' | 1,875,320 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 1,469,777 |
Total Recorded Investment | 2,273,961 | ' | 2,273,961 | ' | 3,345,097 |
Related Allowance | 0 | ' | 0 | ' | 136,015 |
Average Recorded Investment | ' | ' | 2,086,389 | ' | 3,093,523 |
Land | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 1,319,519 | ' | 1,319,519 | ' | 6,866,869 |
Recorded Investment With No Allowance | 0 | ' | 0 | ' | 663,232 |
Recorded Investment With Allowance | 1,188,002 | ' | 1,188,002 | ' | 1,755,991 |
Total Recorded Investment | 1,188,002 | ' | 1,188,002 | ' | 2,419,223 |
Related Allowance | 397,530 | ' | 397,530 | ' | 409,656 |
Average Recorded Investment | ' | ' | 1,785,764 | ' | 2,833,250 |
Farmland | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 98,913 | ' | 98,913 | ' | 0 |
Recorded Investment With No Allowance | 97,433 | ' | 97,433 | ' | 0 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 0 |
Total Recorded Investment | 97,433 | ' | 97,433 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 50,409 | ' | 0 |
Commercial and Industrial | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 27,305 | ' | 27,305 | ' | 27,812 |
Recorded Investment With No Allowance | 18,919 | ' | 18,919 | ' | 21,311 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 0 |
Total Recorded Investment | 18,919 | ' | 18,919 | ' | 21,311 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 20,199 | ' | 52,822 |
Consumer | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 0 | ' | 0 | ' | 0 |
Recorded Investment With No Allowance | 0 | ' | 0 | ' | 0 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 0 |
Total Recorded Investment | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 0 | ' | 0 |
Consumer residential | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 0 | ' | 0 | ' | 1,034,884 |
Recorded Investment With No Allowance | 0 | ' | 0 | ' | 1,010,999 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 0 |
Total Recorded Investment | 0 | ' | 0 | ' | 1,010,999 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | 472,166 | ' | 534,578 |
Agriculture | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 0 | ' | 0 | ' | 0 |
Recorded Investment With No Allowance | 0 | ' | 0 | ' | 0 |
Recorded Investment With Allowance | 0 | ' | 0 | ' | 0 |
Total Recorded Investment | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
Average Recorded Investment | ' | ' | ' | ' | $0 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | item | item | item | item | ||
Troubled Debt Restructurings | ' | ' | ' | ' | ' | ' |
Number of loans and leases considered to be troubled debt restructurings | 3 | ' | ' | 3 | ' | 6 |
Amount of modified troubled debt restructurings | $1,207,000 | ' | ' | $1,207,000 | ' | $2,567,000 |
Amount of unfunded commitments on loan classified as troubled debt restructures | 0 | ' | ' | 0 | ' | 1,697,000 |
Number of loans classified as troubled debt restructures, with unfunded commitments | ' | ' | ' | ' | ' | 1 |
Amount of modified troubled debt restructurings paid off | ' | 1,303,000 | ' | ' | ' | ' |
Amount of specific reserve allocated to loans modified in troubled debt restructuring | 398,000 | ' | ' | 398,000 | ' | 413,000 |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of loans whose terms modified as troubled debt restructurings | 0 | ' | 0 | 1 | 2 | ' |
Number of Loans | ' | ' | ' | 1 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 541,594 | 86,441 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 541,594 | 86,441 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | 0 | ' | 0 | 1 | 2 | ' |
Recorded Investment | ' | ' | ' | 54,427 | 1,310,970 | ' |
Contractually past due period for a loan to be considered in payment default under the modified terms | ' | ' | ' | '90 days | ' | ' |
Number of loans decreased due to foreclosure | ' | ' | ' | 3 | ' | ' |
Loans foreclosed | ' | ' | ' | 54,000 | ' | ' |
Commercial R.E. Construction | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 1 | ' |
Recorded Investment | ' | ' | ' | 0 | 113,552 | ' |
Commercial R.E. Mortgages | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Land | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 1 | 1 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 541,594 | 58,261 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 541,594 | 58,261 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 1 | 1 | ' |
Recorded Investment | ' | ' | ' | 54,427 | 1,197,418 | ' |
Farmland | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Commercial and Industrial | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 1 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 28,180 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 28,180 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Consumer residential | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Agriculture | ' | ' | ' | ' | ' | ' |
Loans by class modified as troubled debt restructurings | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 0 | 0 | ' |
Troubled debt restructurings for which there was a payment default within twelve months following the modification | ' | ' | ' | ' | ' | ' |
Number of Loans | ' | ' | ' | 0 | 0 | ' |
Recorded Investment | ' | ' | ' | $0 | $0 | ' |
LOANS_Details_5
LOANS (Details 5) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3.18 | 3.25 |
Total loans | $413,856,433 | $390,986,187 |
Minimum | ' | ' |
Credit quality indicators | ' | ' |
Disbursement to unsecured creditors by an illusory company in liquidation to explain the proper use of the doubtful category (as a percent) | 40.00% | ' |
Maximum | ' | ' |
Credit quality indicators | ' | ' |
Disbursement to unsecured creditors by an illusory company in liquidation to explain the proper use of the doubtful category (as a percent) | 65.00% | ' |
Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 399,711,850 | 366,519,094 |
Grade 1 Exceptional Loan | Minimum | ' | ' |
Credit quality indicators | ' | ' |
Cash collateral as a percentage of loan amount to be properly margined to qualify for rating | 110.00% | ' |
Grade 3 | ' | ' |
Credit quality indicators | ' | ' |
Number of classifications of rating category | 3 | ' |
Grade 3A Better than Acceptable Loan | ' | ' |
Credit quality indicators | ' | ' |
Amount of loss in last three years | 0 | ' |
Number of consecutive periods without a loss | '3 years | ' |
Grade 3A Better than Acceptable Loan | Minimum | ' | ' |
Credit quality indicators | ' | ' |
Loan-to-value percentage on real estate secured transactions, less than the policy guidelines | 10.00% | ' |
Grade 3A Better than Acceptable Loan | Maximum | ' | ' |
Credit quality indicators | ' | ' |
Loan-to-value percentage on real estate secured transactions, less than the policy guidelines | 20.00% | ' |
Special mention | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 4,065,178 | 9,450,053 |
Substandard | ' | ' |
Credit quality indicators | ' | ' |
Percentage of loans classified in rating category in the example used to explain the proper use of the doubtful category | 40.00% | ' |
Total loans | 10,079,405 | 15,017,040 |
Doubtful | ' | ' |
Credit quality indicators | ' | ' |
Percentage of loans classified in rating category in the example used to explain the proper use of the doubtful category | 25.00% | ' |
Loss | ' | ' |
Credit quality indicators | ' | ' |
Percentage of loans classified in rating category in the example used to explain the proper use of the doubtful category | 35.00% | ' |
Total loans | 0 | ' |
Commercial real estate- construction | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3.64 | 3.23 |
Total loans | 14,294,985 | 6,581,854 |
Commercial real estate- construction | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 14,294,985 | 6,455,427 |
Commercial real estate- construction | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | ' | 126,427 |
Commercial real estate- mortgages | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3.15 | 3.22 |
Total loans | 287,586,666 | 278,766,279 |
Commercial real estate- mortgages | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 278,632,255 | 263,567,665 |
Commercial real estate- mortgages | Special mention | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 3,799,906 | 7,832,840 |
Commercial real estate- mortgages | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 5,154,504 | 7,365,774 |
Land | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 4.55 | 4.56 |
Total loans | 11,027,837 | 14,269,477 |
Land | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 7,104,209 | 8,974,864 |
Land | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 3,923,628 | 5,294,613 |
Farmland | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3.01 | 3.04 |
Total loans | 20,764,811 | 16,456,921 |
Farmland | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 20,667,379 | 16,456,921 |
Farmland | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 97,433 | ' |
Commercial and Industrial | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3 | 3.09 |
Total loans | 44,994,021 | 36,528,505 |
Commercial and Industrial | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 43,961,408 | 35,435,491 |
Commercial and Industrial | Special mention | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 265,272 | 280,631 |
Commercial and Industrial | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 767,341 | 812,383 |
Consumer | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 2.35 | 2.55 |
Total loans | 884,357 | 1,095,801 |
Consumer | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 867,857 | 1,079,583 |
Consumer | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 16,499 | 16,218 |
Consumer residential | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3.02 | 3.17 |
Total loans | 23,212,516 | 25,659,090 |
Consumer residential | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 23,092,517 | 24,257,465 |
Consumer residential | Substandard | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 120,000 | 1,401,625 |
Agriculture | ' | ' |
Credit quality indicators | ' | ' |
Weighted Average Risk Grade | 3.28 | 3.5 |
Total loans | 11,091,240 | 11,628,260 |
Agriculture | Pass | ' | ' |
Credit quality indicators | ' | ' |
Total loans | 11,091,240 | 10,291,678 |
Agriculture | Special mention | ' | ' |
Credit quality indicators | ' | ' |
Total loans | ' | $1,336,582 |
LOANS_Details_6
LOANS (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | |||||
Allowance for loan losses | ' | ' | ' | ' | ' |
Number of elements | ' | ' | 3 | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | $7,570,310 | $8,007,948 | $7,974,975 | $8,609,174 | ' |
Charge-offs | -3,595 | -371,991 | -623,324 | -1,602,982 | ' |
Recoveries | 2,590 | 17,520 | 17,654 | 47,285 | ' |
Provision | 100,000 | 300,000 | 300,000 | 900,000 | ' |
Ending balance | 7,669,305 | 7,953,477 | 7,669,305 | 7,953,477 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 397,530 | ' | 397,530 | ' | 548,543 |
Collectively evaluated for impairment | 7,271,775 | ' | 7,271,775 | ' | 7,426,432 |
Allowance for loan losses | 7,669,305 | 7,953,477 | 7,669,305 | 7,953,477 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 3,578,314 | ' | 3,578,314 | ' | 6,923,057 |
Collectively evaluated for impairment | 410,278,119 | ' | 410,278,119 | ' | 384,063,130 |
Total | 413,856,433 | ' | 413,856,433 | ' | 390,986,187 |
Changes in the reserve for off-balance-sheet commitments | ' | ' | ' | ' | ' |
Carrying value of loans pledged as collateral on advances from the Federal Home Loan Bank | 413,856,433 | ' | 413,856,433 | ' | 390,986,187 |
Reserve for off-balance-sheet commitments | ' | ' | ' | ' | ' |
Changes in the reserve for off-balance-sheet commitments | ' | ' | ' | ' | ' |
Balance, beginning of period | 121,524 | 116,002 | 108,209 | 119,202 | ' |
Provision (Recovery) to Operations for Off Balance Sheet Commitments | 18,214 | -11,127 | 31,529 | -14,327 | ' |
Balance, end of period | 139,738 | 104,875 | 139,738 | 104,875 | ' |
Commercial Real Estate | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | 6,375,872 | 6,657,657 | 6,571,290 | 6,969,004 | ' |
Charge-offs | 0 | -218,373 | -436,036 | -1,428,713 | ' |
Recoveries | 500 | 6,207 | 8,235 | 29,200 | ' |
Provision | 32,237 | 70,979 | 265,120 | 946,979 | ' |
Ending balance | 6,408,609 | 6,516,470 | 6,408,609 | 6,516,470 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 397,530 | ' | 397,530 | ' | 548,543 |
Collectively evaluated for impairment | 6,011,079 | ' | 6,011,079 | ' | 6,022,747 |
Allowance for loan losses | 6,408,609 | 6,516,470 | 6,408,609 | 6,516,470 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 3,559,395 | ' | 3,559,395 | ' | 5,890,748 |
Collectively evaluated for impairment | 330,114,904 | ' | 330,114,904 | ' | 310,183,783 |
Total | 333,674,299 | ' | 333,674,299 | ' | 316,074,531 |
Commercial and Industrial | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | 485,268 | 409,740 | 473,727 | 606,307 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 926 | ' |
Provision | 70,121 | 75,526 | 81,662 | -212,967 | ' |
Ending balance | 555,389 | 485,266 | 555,389 | 485,266 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 555,389 | ' | 555,389 | ' | 473,727 |
Allowance for loan losses | 555,389 | 485,266 | 555,389 | 485,266 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 18,919 | ' | 18,919 | ' | 21,311 |
Collectively evaluated for impairment | 44,975,102 | ' | 44,975,102 | ' | 36,507,194 |
Total | 44,994,021 | ' | 44,994,021 | ' | 36,528,505 |
Consumer | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | 42,443 | 52,872 | 50,062 | 65,060 | ' |
Charge-offs | -3,595 | -3,721 | -9,198 | -24,372 | ' |
Recoveries | 348 | 1,071 | 2,827 | 3,311 | ' |
Provision | 2,143 | 1,070 | -2,352 | 7,293 | ' |
Ending balance | 41,339 | 51,292 | 41,339 | 51,292 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 41,339 | ' | 41,339 | ' | 50,062 |
Allowance for loan losses | 41,339 | 51,292 | 41,339 | 51,292 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 884,357 | ' | 884,357 | ' | 1,095,801 |
Total | 884,357 | ' | 884,357 | ' | 1,095,801 |
Consumer Residential | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | 380,155 | 506,991 | 383,653 | 347,905 | ' |
Charge-offs | 0 | -149,897 | -178,090 | -149,897 | ' |
Recoveries | 1,742 | 10,242 | 6,592 | 13,848 | ' |
Provision | -45,537 | 38,452 | 124,205 | 193,932 | ' |
Ending balance | 336,360 | 405,788 | 336,360 | 405,788 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 336,360 | ' | 336,360 | ' | 383,653 |
Allowance for loan losses | 336,360 | 405,788 | 336,360 | 405,788 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 1,010,998 |
Collectively evaluated for impairment | 23,212,516 | ' | 23,212,516 | ' | 24,648,092 |
Total | 23,212,516 | ' | 23,212,516 | ' | 25,659,090 |
Agriculture | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | 186,120 | 225,235 | 285,734 | 363,174 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 0 | ' |
Provision | 25,436 | 23,412 | -74,178 | -114,797 | ' |
Ending balance | 211,556 | 248,377 | 211,556 | 248,377 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 211,556 | ' | 211,556 | ' | 285,734 |
Allowance for loan losses | 211,556 | 248,377 | 211,556 | 248,377 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 11,091,240 | ' | 11,091,240 | ' | 11,628,260 |
Total | 11,091,240 | ' | 11,091,240 | ' | 11,628,260 |
Unallocated | ' | ' | ' | ' | ' |
Activity in the allowance for loan losses by portfolio segment | ' | ' | ' | ' | ' |
Beginning Balance | 100,452 | 155,453 | 210,509 | 257,724 | ' |
Charge-offs | 0 | 0 | 0 | 0 | ' |
Recoveries | 0 | 0 | 0 | 0 | ' |
Provision | 15,600 | 90,831 | -94,457 | -11,440 | ' |
Ending balance | 116,052 | 246,284 | 116,052 | 246,284 | ' |
Allowance for loan losses for loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 116,052 | ' | 116,052 | ' | 210,509 |
Allowance for loan losses | 116,052 | 246,284 | 116,052 | 246,284 | ' |
Ending gross loan balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 0 | ' | 0 | ' | 0 |
Total | $0 | ' | $0 | ' | $0 |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | item | item | |
OTHER REAL ESTATE OWNED | ' | ' | ' |
Number of real estate properties owned | 3 | ' | 1 |
Other real estate owned | $916,205 | ' | $0 |
Number of OREO properties sold | 2 | 1 | ' |
Number of OREO properties liquidated | 8 | ' | ' |
Gain on sale of OREO property | $17,000 | $4,000 | ' |
OTHER_POSTRETIREMENT_BENEFIT_P1
OTHER POST-RETIREMENT BENEFIT PLANS (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||
Jan. 31, 2008 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 31, 2008 | Jan. 31, 2008 | |
The Plan and DRP | The Plan and DRP | The Plan | DRP | ||||
item | |||||||
Other post-retirement benefit plans | ' | ' | ' | ' | ' | ' | ' |
Fixed annual post-retirement benefit period | ' | ' | ' | ' | ' | '20 years | '10 years |
Number of directors awarded with plan | ' | ' | ' | ' | ' | ' | 2 |
Estimated average service period remaining for present value discount rate | ' | ' | ' | '20 years | ' | ' | ' |
Amount accrued to date included in interest payable and other liabilities | ' | ' | ' | $1,973,000 | $1,800,000 | ' | ' |
Purchase amount of Bank-owned life insurance policies | 4,700,000 | ' | ' | ' | ' | ' | ' |
Combined cash surrender value of all Bank-owned life insurance policies | ' | $11,986,000 | $11,680,000 | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_AND_FAIR2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | $99,807,827 | $141,334,998 |
Restricted equity securities | 3,170,250 | 3,129,750 |
Loans, net | 405,544,603 | 382,411,361 |
Interest receivable | 1,755,110 | 1,654,474 |
Financial liabilities: | ' | ' |
Deposits | -591,642,194 | -586,992,650 |
Interest payable | -57,595 | -67,958 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 99,807,827 | 141,334,998 |
Restricted equity securities | 3,170,250 | 3,129,750 |
Loans, net | 420,202,001 | 398,029,908 |
Interest receivable | 1,755,110 | 1,654,474 |
Financial liabilities: | ' | ' |
Deposits | -578,619,845 | -587,430,712 |
Interest payable | -57,595 | -67,958 |
Off-balance-sheet assets (liabilities): | ' | ' |
Commitments and standby letters of credit | ($550,057) | ($422,036) |
FINANCIAL_INSTRUMENTS_AND_FAIR3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | $117,142,396 | $103,865,881 |
Other real estate owned | 916,205 | 0 |
Discount rate for selling costs applied to all properties (as a percent) | 6.00% | ' |
U.S. agencies | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 53,311,218 | 55,517,059 |
Collateralized mortgage obligations | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 10,427,918 | 12,604,384 |
Municipalities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 38,837,299 | 26,992,288 |
SBA Pools | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 1,097,487 | 1,178,308 |
Corporate debt | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 4,797,646 | 4,705,602 |
Asset backed securities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 5,848,520 | ' |
Mutual Fund | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 2,822,308 | 2,868,240 |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | U.S. agencies | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 53,311,218 | 55,517,059 |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | Collateralized mortgage obligations | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 10,427,918 | 12,604,384 |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | Municipalities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 38,837,299 | 26,992,288 |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | SBA Pools | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 1,097,487 | 1,178,308 |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | Corporate debt | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 4,797,646 | 4,705,602 |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | Asset backed securities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 5,848,520 | ' |
Assets and liabilities measured on a recurring basis: | Fair Value Measurements | Mutual Fund | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 2,822,308 | 2,868,240 |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. agencies | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized mortgage obligations | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipalities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | SBA Pools | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset backed securities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | ' |
Assets and liabilities measured on a recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Fund | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 2,822,308 | 2,868,240 |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | U.S. agencies | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 53,311,218 | 55,517,059 |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Collateralized mortgage obligations | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 10,427,918 | 12,604,384 |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Municipalities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 38,837,299 | 26,992,288 |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | SBA Pools | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 1,097,487 | 1,178,308 |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Corporate debt | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 4,797,646 | 4,705,602 |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Asset backed securities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 5,848,520 | ' |
Assets and liabilities measured on a recurring basis: | Significant Other Observable Inputs (Level 2) | Mutual Fund | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | U.S. agencies | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | Collateralized mortgage obligations | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | Municipalities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | SBA Pools | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | Corporate debt | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | Asset backed securities | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | ' |
Assets and liabilities measured on a recurring basis: | Significant Unobservable Inputs (Level 3) | Mutual Fund | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Available-for-sale securities | 0 | 0 |
Assets and liabilities measured on a non-recurring basis: | Fair Value Measurements | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Other real estate owned | 916,205 | ' |
Assets and liabilities measured on a non-recurring basis: | Fair Value Measurements | Land | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | 1,188,002 | 1,755,991 |
Assets and liabilities measured on a non-recurring basis: | Fair Value Measurements | Commercial real estate- construction | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 126,427 |
Assets and liabilities measured on a non-recurring basis: | Fair Value Measurements | Commercial real estate- mortgages | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 3,097,923 |
Assets and liabilities measured on a non-recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Other real estate owned | 0 | ' |
Assets and liabilities measured on a non-recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Land | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | 0 | 0 |
Assets and liabilities measured on a non-recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate- construction | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 0 |
Assets and liabilities measured on a non-recurring basis: | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate- mortgages | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 0 |
Assets and liabilities measured on a non-recurring basis: | Significant Other Observable Inputs (Level 2) | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Other real estate owned | 0 | ' |
Assets and liabilities measured on a non-recurring basis: | Significant Other Observable Inputs (Level 2) | Land | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | 0 | 0 |
Assets and liabilities measured on a non-recurring basis: | Significant Other Observable Inputs (Level 2) | Commercial real estate- construction | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 0 |
Assets and liabilities measured on a non-recurring basis: | Significant Other Observable Inputs (Level 2) | Commercial real estate- mortgages | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 0 |
Assets and liabilities measured on a non-recurring basis: | Significant Unobservable Inputs (Level 3) | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Other real estate owned | 916,205 | ' |
Assets and liabilities measured on a non-recurring basis: | Significant Unobservable Inputs (Level 3) | Land | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | 1,188,002 | 1,755,991 |
Assets and liabilities measured on a non-recurring basis: | Significant Unobservable Inputs (Level 3) | Commercial real estate- construction | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | 426,427 |
Assets and liabilities measured on a non-recurring basis: | Significant Unobservable Inputs (Level 3) | Commercial real estate- mortgages | ' | ' |
Recurring and non-recurring fair value measurements | ' | ' |
Impaired Loans | ' | $3,097,923 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
item | ||||
EARNINGS PER SHARE | ' | ' | ' | ' |
Number of forms of outstanding common stock | ' | ' | 2 | ' |
BASIC EARNINGS PER SHARE | ' | ' | ' | ' |
Net income available to common shareholders | $1,505,220 | $1,394,456 | $4,111,542 | $3,924,196 |
Weighted average shares outstanding | 7,802,705 | 7,750,727 | 7,794,439 | 7,733,848 |
Net income per common share (in dollars per share) | $0.19 | $0.18 | $0.53 | $0.51 |
DILUTED EARNINGS PER SHARE | ' | ' | ' | ' |
Net income available to common shareholders | $1,505,220 | $1,394,456 | $4,111,542 | $3,924,196 |
Weighted average shares outstanding | 7,802,705 | 7,750,727 | 7,794,439 | 7,733,848 |
Effect of dilutive stock options (in shares) | 8,397 | 6,917 | 10,428 | 11,934 |
Effect of dilutive non-vested restricted shares | 40,055 | 20,502 | 36,729 | 11,972 |
Weighted average shares of common stock and common stock equivalents | 7,851,157 | 7,778,146 | 7,841,596 | 7,757,754 |
Net income per diluted common share (in dollars per share) | $0.19 | $0.18 | $0.52 | $0.51 |
Stock options | ' | ' | ' | ' |
Details of anti-dilutive weighted average securities not included in the computation of diluted EPS | ' | ' | ' | ' |
Anti-dilutive weighted average securities not included in the computation of diluted EPS (in shares) | 69,500 | 202,750 | 71,313 | 208,375 |
Stock options | Minimum | ' | ' | ' | ' |
Details of anti-dilutive weighted average securities not included in the computation of diluted EPS | ' | ' | ' | ' |
Exercise price of stock options (in dollars per share) | $8.25 | $7.04 | $8.25 | $7.04 |
Stock options | Maximum | ' | ' | ' | ' |
Details of anti-dilutive weighted average securities not included in the computation of diluted EPS | ' | ' | ' | ' |
Exercise price of stock options (in dollars per share) | $15.67 | $15.67 | $15.67 | $15.67 |
Restricted stock | ' | ' | ' | ' |
Details of anti-dilutive weighted average securities not included in the computation of diluted EPS | ' | ' | ' | ' |
Anti-dilutive weighted average securities not included in the computation of diluted EPS (in shares) | 0 | 0 | 0 | 0 |