Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document And Entity Information Abstract | |||
Entity Registrant Name | Jacksonville Bancorp, Inc. | ||
Entity Central Index Key | 1,484,949 | ||
Trading Symbol | jxsb | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Common Stock Shares Outstanding | 1,801,701 | ||
Entity Public Float | $ 49 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 5,984,640 | $ 2,385,846 |
Interest-earning demand deposits in banks | 6,925,284 | 1,717,586 |
Cash and cash equivalents | 12,909,924 | 4,103,432 |
Interest-earning time deposits in banks | 750,000 | 2,724,000 |
Available-for-sale securities: | ||
Investment securities | 55,748,263 | 64,294,937 |
Mortgage-backed securities | 44,413,177 | 23,178,395 |
Other investments | 55,481 | 62,223 |
Loans held for sale | 503,003 | 539,000 |
Loans, net of allowance for loan losses of $3,007,395 and $2,919,594 at December 31, 2016 and 2015 | 184,448,003 | 193,039,879 |
Premises and equipment, net of accumulated depreciation of $6,519,729 and $6,126,823 at December 31, 2016 and 2015 | 4,498,653 | 4,728,157 |
Federal Home Loan Bank stock | 363,800 | 1,113,800 |
Foreclosed assets held for sale, net | 330,981 | |
Cash surrender value of life insurance | 7,271,438 | 7,093,640 |
Interest receivable | 1,588,545 | 1,715,676 |
Deferred income taxes | 2,738,789 | 1,583,067 |
Income taxes receivable | 45,444 | |
Mortgage servicing rights, net of valuation allowance of $0 and $47,354 as of December 31, 2016 and 2015 | 552,827 | 597,713 |
Goodwill | 2,726,567 | 2,726,567 |
Other assets | 704,845 | 811,007 |
Total assets | 319,318,759 | 308,642,474 |
Deposits | ||
Demand | 33,633,972 | 31,426,710 |
Savings, NOW and money market | 144,857,452 | 128,800,696 |
Time | 80,186,536 | 79,054,524 |
Total deposits | 258,677,960 | 239,281,930 |
Short-term borrowings | 7,135,182 | 15,131,710 |
Deferred compensation | 4,680,268 | 4,492,594 |
Advances from borrowers for taxes and insurance | 1,102,204 | 990,917 |
Interest payable | 106,755 | 118,335 |
Income taxes payable | 49,291 | |
Dividends payable | 179,904 | 1,934,834 |
Other liabilities | 1,190,921 | 1,076,363 |
Total liabilities | 273,073,194 | 263,075,974 |
Stockholders' Equity | ||
Preferred stock, $.01 par value, authorized 10,000,000 shares; none issued and outstanding | ||
Common stock, $.01 par value; authorized 25,000,000 shares; issued 1,800,244 - December 31, 2016 and 1,791,513 - December 31, 2015 | 18,002 | 17,915 |
Additional paid-in capital | 13,908,728 | 13,664,914 |
Retained earnings | 33,667,499 | 31,305,040 |
Accumulated other comprehensive income (loss) | (1,176,294) | 790,341 |
Unallocated ESOP shares | (172,370) | (211,710) |
Total stockholders' equity | 46,245,565 | 45,566,500 |
Total liabilities and stockholders' equity | $ 319,318,759 | $ 308,642,474 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for loan losses of loans receivable (in dollars) | $ 3,007,395 | $ 2,919,594 |
Accumulated depreciation on premises and equipment (in dollars) | 6,519,729 | 6,126,823 |
Valuation allowance on mortgage servicing rights (in dollars) | $ 0 | $ 47,354 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 1,800,244 | 1,791,513 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and Fee Income | ||
Loans, including fees | $ 9,179,752 | $ 9,294,256 |
Debt securities | ||
Taxable | 410,510 | 287,066 |
Tax-exempt | 1,298,051 | 1,356,056 |
Mortgage-backed securities | 484,264 | 542,453 |
Other | 62,407 | 35,033 |
Total interest income | 11,434,984 | 11,514,864 |
Interest Expense | ||
Deposits | 1,025,232 | 1,101,262 |
Short-term borrowings | 19,064 | 7,130 |
Federal Home Loan Bank advances | 4,030 | 18,981 |
Total interest expense | 1,048,326 | 1,127,373 |
Net Interest Income | 10,386,658 | 10,387,491 |
Provision for Loan Losses | 120,000 | 140,000 |
Net Interest Income After Provision for Loan Losses | 10,266,658 | 10,247,491 |
Noninterest Income | ||
Fiduciary activities | 328,917 | 289,153 |
Commission income | 1,223,860 | 1,414,840 |
Service charges on deposit accounts | 747,942 | 680,022 |
Mortgage banking operations, net | 259,008 | 180,872 |
Net realized gains on sales of available-for-sale securities | 399,599 | 320,585 |
Loan servicing fees | 333,441 | 344,019 |
Increase in cash surrender value of life insurance | 172,504 | 175,428 |
ATM and bank card interchange income | 674,065 | 628,882 |
Other | 122,109 | 153,089 |
Total noninterest income | 4,261,445 | 4,186,890 |
Noninterest Expense | ||
Salaries and employee benefits | 6,763,951 | 6,724,334 |
Occupancy and equipment | 1,047,048 | 996,460 |
Data processing and telecommunications | 588,053 | 609,835 |
Professional | 193,937 | 191,969 |
Marketing | 156,826 | 116,568 |
Postage and office supplies | 228,445 | 229,438 |
Deposit insurance premium | 122,246 | 149,366 |
ATM and bank card expense | 384,602 | 408,148 |
Other | 907,428 | 915,115 |
Total noninterest expense | 10,392,536 | 10,341,233 |
Income Before Income Taxes | 4,135,567 | 4,093,148 |
Provision for Income Taxes | 1,087,658 | 1,067,025 |
Net Income | $ 3,047,909 | $ 3,026,123 |
Basic Earnings Per Share (in dollars per share) | $ 1.72 | $ 1.71 |
Diluted Earnings Per Share (in dollars per share) | 1.70 | 1.70 |
Cash Dividends Per Share (in dollars per share) | $ 0.40 | $ 1.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income | $ 3,047,909 | $ 3,026,123 |
Other Comprehensive Income (Loss) | ||
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes of $(877,251) and $149,623 for 2016 and 2015, respectively | (1,702,900) | 290,444 |
Less: reclassification adjustment for realized gains included in net income, net of taxes of $135,864 and $108,999 for 2016 and 2015, respectively | 263,735 | 211,586 |
Total other comprehensive income (loss) | (1,966,635) | 78,858 |
Comprehensive Income | $ 1,081,274 | $ 3,104,981 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Taxes on unrealized appreciation (depreciation) on available-for-sale securities | $ (877,251) | $ 149,623 |
Taxes on reclassification adjustment for realized gains included in net income | $ 135,864 | $ 108,999 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Issued Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated ESOP | Total |
Balance at Dec. 31, 2014 | $ 17,995 | $ 13,900,743 | $ 30,635,787 | $ 711,483 | $ (249,910) | $ 45,016,098 |
Balance (in shares) at Dec. 31, 2014 | 1,799,483 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,026,123 | 3,026,123 | ||||
Other comprehensive income (loss) | 78,858 | 78,858 | ||||
Stock repurchases | $ (327) | (764,984) | (765,311) | |||
Stock repurchases (in shares) | (32,685) | |||||
Exercise of stock options | $ 247 | 382,374 | 382,621 | |||
Exercise of stock options (in shares) | 24,715 | |||||
Tax benefit of nonqualified options | 4,169 | 4,169 | ||||
Stock-based compensation expense | 90,163 | 90,163 | ||||
Common shares held by ESOP, committed to be released | 52,449 | 38,200 | 90,649 | |||
Dividends on common stock, $1.32 per share and $0.40 per share in 2015 and 2016, respectively | (2,356,870) | (2,356,870) | ||||
Balance at Dec. 31, 2015 | $ 17,915 | 13,664,914 | 31,305,040 | 790,341 | (211,710) | 45,566,500 |
Balance (in shares) at Dec. 31, 2015 | 1,791,513 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,047,909 | 3,047,909 | ||||
Other comprehensive income (loss) | (1,966,635) | (1,966,635) | ||||
Stock repurchases | $ (48) | (127,070) | (127,118) | |||
Stock repurchases (in shares) | (4,801) | |||||
Exercise of stock options | $ 135 | 201,441 | 201,576 | |||
Exercise of stock options (in shares) | 13,532 | |||||
Tax benefit of nonqualified options | 10,199 | 10,199 | ||||
Stock-based compensation expense | 90,163 | 90,163 | ||||
Common shares held by ESOP, committed to be released | 69,081 | 39,340 | 108,421 | |||
Dividends on common stock, $1.32 per share and $0.40 per share in 2015 and 2016, respectively | (685,450) | (685,450) | ||||
Balance at Dec. 31, 2016 | $ 18,002 | $ 13,908,728 | $ 33,667,499 | $ (1,176,294) | $ (172,370) | $ 46,245,565 |
Balance (in shares) at Dec. 31, 2016 | 1,800,244 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends on common stock (in dollars per share) | $ 0.40 | $ 1.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | ||
Net income | $ 3,047,909 | $ 3,026,123 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 394,935 | 386,063 |
Provision for loan losses | 120,000 | 140,000 |
Amortization of premiums and discounts on securities and loans | 722,191 | 652,730 |
Deferred income taxes | (142,607) | (137,484) |
Net realized gains on available-for-sale securities | (399,599) | (320,585) |
Amortization of mortgage servicing rights | 120,980 | 127,800 |
Impairment of mortgage servicing rights asset | 38,967 | |
Increase in cash surrender value of life insurance, net | (177,798) | (180,723) |
Gains on sales of foreclosed assets | (33,970) | (49,975) |
Shares held by ESOP committed to be released | 108,421 | 90,649 |
Stock-based compensation expense | 90,163 | 90,163 |
Changes in | ||
Interest receivable | 127,131 | (2,433) |
Other assets | (265,939) | (216,149) |
Interest payable | (11,580) | (47,717) |
Other liabilities | 207,498 | (254,242) |
Origination of loans held for sale | (20,376,281) | (16,942,428) |
Proceeds from sales of loans held for sale | 20,675,254 | 16,845,646 |
Net cash provided by operating activities | 4,245,675 | 3,207,438 |
Investing Activities | ||
Net change in interest-earning time deposits | 1,974,000 | (2,724,000) |
Proceeds from redemption of Federal Home Loan Bank stock | 750,000 | |
Purchases of available-for-sale securities | (66,685,397) | (29,989,452) |
Proceeds from maturities and payments of available-for-sale securities | 11,400,048 | 8,303,432 |
Proceeds from the sales of available-for-sale investments and other investments | 39,301,125 | 30,695,946 |
Net change in loans | 8,564,794 | (8,749,699) |
Purchase of premises and equipment | (165,431) | (168,237) |
Proceeds from the sale of foreclosed assets | 266,613 | 182,378 |
Net cash used in investing activities | (4,594,248) | (2,449,632) |
Financing Activities | ||
Net increase in demand deposits, money market, NOW and savings accounts | 18,264,018 | 8,885,407 |
Net increase (decrease) in certificates of deposit | 1,132,012 | (15,545,039) |
Net increase (decrease) in short-term borrowings | (7,996,529) | 1,309,981 |
Net increase in advances from borrowers for taxes and insurance | 111,287 | 28,155 |
Stock repurchase | (127,118) | (765,311) |
Proceeds from stock options exercised | 211,775 | 386,790 |
Dividends paid | (2,440,380) | (565,995) |
Net cash provided by (used in) financing activities | 9,155,065 | (6,266,012) |
Increase (Decrease) in Cash and Cash Equivalents | 8,806,492 | (5,508,206) |
Cash and Cash Equivalents, Beginning of Year | 4,103,432 | 9,611,638 |
Cash and Cash Equivalents, End of Year | 12,909,924 | 4,103,432 |
Supplemental Cash Flows Information | ||
Interest paid | 1,059,906 | 1,175,090 |
Income taxes paid | 1,325,000 | 1,356,000 |
Sale and financing of foreclosed assets | 204,850 | 81,700 |
Real estate acquired in settlement of loans | 114,400 | 379,825 |
Dividends declared not paid | 179,904 | 1,934,834 |
Exercise and retirement of shares in stock option plan | $ 74,458 | $ 153,271 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1: Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Jacksonville Bancorp, Inc. (the “Company”) is a Maryland corporation. The Company owns 100% of Jacksonville Savings Bank (the “Bank”). The Bank was founded in 1916 as an Illinois-chartered savings and loan association and converted to an Illinois-chartered savings bank in 1992. The Bank is headquartered in Jacksonville, Illinois and operates five branches in addition to its main office. The Bank’s deposits have been federally insured since 1945 by the Federal Deposit Insurance Corporation (“FDIC”). The Bank has been a member of the Federal Home Loan Bank (“FHLB”) System since 1932. The Bank is a community-oriented savings bank engaged primarily in the business of attracting retail deposits from the general public in the Bank’s market area and using such funds together with borrowings and funds from other sources to originate consumer loans and mortgage loans secured by one-to-four family residential real estate. The Bank also originates commercial real estate loans, multi-family real estate loans, commercial business loans, and agricultural loans. When possible, the Bank emphasizes the origination of mortgage loans with adjustable interest rates (“ARM”), as well as fixed-rate balloon loans with terms ranging from three to five years, consumer loans, which are primarily home equity loans secured by second mortgages, commercial business loans, and agricultural loans. The Bank also offers trust and investment services. The investment center, Berthel Fisher and Company Financial Services, Inc., is operated through the Bank’s wholly-owned subsidiary, Financial Resources Group, Inc. The Company is subject to competition from other financial institutions and nonfinancial institutions providing financial products. Additionally, the Company is subject to the regulations of certain regulatory agencies and undergoes periodic examinations by those regulatory agencies. The significant accounting and reporting policies of the Company and its subsidiary follow: Principles of Consolidation and Financial Statement Presentation The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly owned subsidiary, Financial Resources Group, Inc. Significant intercompany accounts and transactions have been eliminated in consolidation. Based on the Company’s approach to decision making, it has decided that its business is comprised of a single segment. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and conform to predominate practice within the banking industry. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, fair value of securities, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of loan servicing rights, valuation of deferred tax assets and goodwill impairment. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2016 and 2015, cash equivalents consisted primarily of federal funds sold and interest-earning time and demand deposits in banks. At December 31, 2016, the Company’s cash accounts did not exceed federally insured limits. Interest-earning Time Deposits in Banks Interest-earning time deposits in banks are generally short-term and are carried at cost. Securities Available-for-sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the settlement date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Other Investments Other investments at December 31, 2016 and 2015 include local municipal bonds and equity investments in local community development organizations. The municipal bonds mature ratably through the year 2020. These securities have no readily ascertainable market value and are carried at cost. Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on loans is generally discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes collectibility of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 35-40 years Equipment 3-5 years Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in income or expense from foreclosed assets. Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at the estimated cash surrender value. Changes in the cash surrender value are reflected in noninterest income in the consolidated statements of income. Goodwill Goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. The goodwill was not deemed impaired as of December 31, 2016 or 2015. Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change. The Company has elected to subsequently measure the mortgage servicing rights under the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment or increased obligation based on fair value at each reporting date. Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported as a separate line item in noninterest expense on the consolidated income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned in loan servicing fees in non-interest income. The amortization of mortgage servicing rights is netted from the gains on sale of loans, both cash gains as well as the capitalized gains, and is included in mortgage banking operations, net in non-interest income. Stock Options At December 31, 2016 and 2015, the Company recognizes the fair value (calculated value) of stock-based awards to employees as compensation cost over the requisite service period. The stock-based employee compensation plan is described more fully in Note 15. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to the management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2013. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiary. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities. Trust Assets Assets held in fiduciary or agency capacities are not included in the consolidated balance sheets since such items are not assets of the Company. Fees from trust activities are recorded as revenue over the period in which the service is provided. Fees are a function of the market value of assets managed and administered, the volume of transactions, and fees for other services rendered, as set forth in the underlying client agreement with the Trust Department. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes. Generally, the actual trust fee is charged to each account on a monthly basis. Any out of pocket expenses or services not typically covered by the fee schedule for trust activities are charged directly to the trust account on a gross basis as trust revenue is incurred. The Company managed or administered approximately 131 and 124 trust accounts with assets totaling approximately $99.3 million and $90.7 million at December 31, 2016 and 2015, respectively. Reclassifications Certain amounts included in the 2015 consolidated statements have been reclassified to conform to the 2016 presentation. Recent and Future Accounting Requirements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides a five-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are included in the scope of other standards). The guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied either retrospectively or using the modified retrospective approach. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which provides a one-year deferral of ASU 2014-09. Management is in the preliminary stage of evaluating the impact of the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. Early adoption would be permitted, but not before the original public entity effective date. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently reviewing its processes but adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019. The Company has been receiving training and gathering historical data in order to determine the impact the adoption of ASU 2016-13 will have on the consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of the simplification initiative is to identify, evaluate, and improve areas of US GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The new guidance will be effective for public companies for reporting periods beginning after December 15, 2016. The Company is currently implementing the new processes and does not anticipate a significant impact on the Company’s financial statements. In January 2017, FASB amended FASB ASC Topic 250, Simplifying the Test for Goodwill. The amendments in the update simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under this amendment, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has goodwill from a prior business combination and performs an annual impairment test or more frequently if changes or circumstances occur that would more likely than not reduce the fair value of the reporting unit below its carrying value. During the current year, the Company performed its impairment assessment and determined that the Company’s goodwill was not impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated and, therefore, does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. |
Restriction on Cash and Due Fro
Restriction on Cash and Due From Banks | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Cash and Investments [Abstract] | |
Restriction on Cash and Due From Banks | Note 2: Restriction on Cash and Due From Banks The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2016 and 2015, was $2,449,000 and $1,524,000, respectively. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3: Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows: Amortized Gross Gross Fair Value Available-for-sale Securities December 31, 2016: U.S. Government and federal agencies $ 13,985,863 $ 9,641 $ (661,964 ) $ 13,333,540 Mortgage-backed securities (Government-sponsored enterprises - residential) 45,457,262 70,512 (1,114,597 ) 44,413,177 Municipal bonds 42,500,579 558,776 (644,632 ) 42,414,723 $ 101,943,704 $ 638,929 $ (2,421,193 ) $ 100,161,440 December 31, 2015: U.S. Government and federal agencies $ 15,979,475 $ 44,972 $ (85,750 ) $ 15,938,697 Mortgage-backed securities (Government-sponsored enterprises - residential) 23,067,200 211,987 (100,792 ) 23,178,395 Municipal bonds 47,229,171 1,306,328 (179,259 ) 48,356,240 $ 86,275,846 $ 1,563,287 $ (365,801 ) $ 87,473,332 The amortized cost and fair value of available-for-sale securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair Within one year $ 1,036,978 $ 1,043,616 One to five years 9,201,183 9,315,610 Five to ten years 27,297,515 27,081,945 After ten years 18,950,766 18,307,092 56,486,442 55,748,263 Mortgage-backed securities 45,457,262 44,413,177 Totals $ 101,943,704 $ 100,161,440 The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $42,463,127 at December 31, 2016 and $25,681,115 at December 31, 2015. The carrying value of securities sold under agreement to repurchase amounted to $9,709,793 at December 31, 2016 and $7,591,475 at December 31, 2015. Gross gains of $402,981 and $352,983 and gross losses of $(3,382) and $(32,398) resulting from sales of available-for-sale securities were realized for 2016 and 2015, respectively. The tax provision applicable to these net realized gains amounted to $135,864 and $108,999, respectively. Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2016 and 2015, was $71,583,259 and $30,676,768, which is approximately 71% and 35%, respectively, of the Company’s available-for-sale investment portfolio. The declines primarily resulted from recent changes in market interest rates. Management believes the declines in fair value for these securities are temporary. The following table shows the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016 and 2015: December 31, 2016 Less than 12 Months 12 Months or More Total Description of Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale Securities U.S. Government agencies $ 12,333,924 $ (661,964 ) $ — $ — $ 12,333,924 $ (661,964 ) Mortgage-backed securities (Government-sponsored enterprises - residential) 37,144,915 (1,114,597 ) — — 37,144,915 (1,114,597 ) Municipal bonds 22,104,420 (644,632 ) — — 22,104,420 (644,632 ) Total temporarily impaired securities $ 71,583,259 $ (2,421,193 ) $ — $ — $ 71,583,259 $ (2,421,193 ) December 31, 2015 Less than 12 Months 12 Months or More Total Description of Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale Securities U.S. Government agencies $ 8,591,014 $ (49,205 ) $ 1,809,745 $ (36,545 ) $ 10,400,759 $ (85,750 ) Mortgage-backed securities (Government-sponsored enterprises - residential) 5,843,754 (45,886 ) 2,257,674 (54,906 ) 8,101,428 (100,792 ) Municipal bonds 5,440,291 (48,383 ) 6,734,290 (130,876 ) 12,174,581 (179,259 ) Total temporarily impaired securities $ 19,875,059 $ (143,474 ) $ 10,801,709 $ (222,327 ) $ 30,676,768 $ (365,801 ) U.S. Government Agencies The unrealized losses on the Company’s investments in direct obligations of U.S. government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2016. Residential Mortgage-backed Securities The unrealized losses on the Company’s investment in residential mortgage-backed securities were caused by changes in interest rates. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2016. Municipal Bonds The unrealized losses on the Company’s investments in securities of municipal bonds were caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2016. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 4: Loans and Allowance for Loan Losses Classes of loans at December 31, include: 2016 2015 Mortgage loans on real estate Residential 1-4 family $ 45,311,103 $ 47,395,344 Commercial 41,477,480 40,381,680 Agricultural 38,271,758 41,223,190 Home equity 11,606,002 11,691,545 Total mortgage loans on real estate 136,666,343 140,691,759 Commercial loans 21,617,744 25,453,058 Agricultural 14,649,622 16,102,856 Consumer 14,543,356 13,741,093 187,477,065 195,988,766 Less Net deferred loan fees 21,667 29,293 Allowance for loan losses 3,007,395 2,919,594 Net loans $ 184,448,003 $ 193,039,879 The Company’s loan portfolio includes loan participations purchased from other institutions. The outstanding balance of these purchased loans totaled $11,960,699 and $11,696,320 as of December 31, 2016 and 2015, respectively. Participations purchased during the years ended December 31, 2016 and 2015 totaled $2,157,442 and $2,609,280, respectively. The Company believes that sound loans are a necessary and desirable means of employing funds available for investment. Recognizing the Company’s obligations to its depositors and to the communities it serves, authorized personnel are expected to seek to develop and make sound, profitable loans that resources permit and that opportunity affords. The Company maintains lending policies and procedures designed to focus lending efforts on the types, locations, and duration of loans most appropriate for the business model and markets. The Company’s principal lending activities include the origination of one-to four-family residential mortgage loans, multi-family loans, commercial real estate loans, agricultural loans, home equity lines of credits, commercial business loans, and consumer loans. The primary lending market includes the Illinois counties of Morgan, Cass, Macoupin and Montgomery and the surrounding counties. Generally, loans are collateralized by assets, primarily real estate, of the borrowers and guaranteed by individuals. The loans are expected to be repaid from cash flows of the borrowers or from proceeds from the sale of selected assets of the borrowers. Loan originations are derived from a number of sources such as real estate broker referrals, existing customers, builders, attorneys and walk-in customers. Upon receipt of a loan application, a credit report is obtained to verify specific information relating to the applicant’s employment, income, and credit standing. In the case of a real estate loan, an appraisal of the real estate intended to secure the proposed loan is undertaken by an independent appraiser approved by the Company. A loan application file is first reviewed by a loan officer in the loan department who checks applications for accuracy and completeness, and verifies the information provided. The financial resources of the borrower and the borrower’s credit history, as well as the collateral securing the loan, are considered an integral part of each risk evaluation prior to approval. All residential real estate loans are then verified by our loan risk management department prior to closing. The board of directors has established individual lending authorities for each loan officer by loan type. Loans over an individual officer’s lending limit must be approved by the officers’ loan committee consisting of the chairman of the board, president, chief lending officer and all lending officers, which meets three times a week, and has lending authority up to $750,000 depending on the type of loan. Loans to borrowers with an aggregate principal balance over this limit, up to $1.0 million, must be approved by the directors’ loan committee, which meets weekly and consists of the chairman of the board, president, senior vice president, chief lending officer and at least two outside directors, plus all lending officers as non-voting members. The board of directors approves all loans to borrowers with an aggregate principal balance over $1.0 million. The board of directors ratifies all loans that are originated. Once the loan is approved, the applicant is informed and a closing date is scheduled. Loan commitments are typically funded within 45 days. If the loan is approved, the borrower must provide proof of fire and casualty insurance on the property serving as collateral which insurance must be maintained during the full term of the loan; flood insurance is required in certain instances. Title insurance is generally required on loans secured by real property. One-to-Four Family Mortgage Loans Fixed-rate one-to-four family residential mortgage loans are generally conforming loans, underwritten according to secondary market guidelines. The Company generally originates both fixed- and adjustable-rate mortgage loans in amounts up to the maximum conforming loan limits established by the Federal Housing Finance Agency for the secondary market. The Company originates for resale to the secondary market fixed-rate one-to-four family residential mortgage loans with terms of 15 years or more. The fixed-rate mortgage loans amortize monthly with principal and interest due each month. Residential real estate loans often remain outstanding for significantly shorter periods than their contractual terms because borrowers may refinance or prepay loans at their option. The Company offers fixed-rate one-to-four family residential mortgage loans with terms of up to 30 years without prepayment penalty. The Company currently offers adjustable-rate mortgage loans for terms ranging up to 30 years. They generally offer adjustable-rate mortgage loans that adjust between one and five years on the anniversary date of origination. Interest rate adjustments are up to two hundred basis points per year, with a cap of up to six hundred basis points on interest rate increases over the life of the loan. In a rising interest rate environment, such rate limitations may prevent adjustable-rate mortgage loans from repricing to market interest rates, which would have an adverse effect on net interest income. In the low interest rate environment that has existed over the past two years, the adjustable-rate portfolio has repriced downward resulting in lower interest income from this portion of the loan portfolio. The Company has used different interest indices for adjustable-rate mortgage loans in the past such as the average yield on U.S. Treasury securities, adjusted to a constant maturity of either one year, three years or five years. The origination of fixed-rate mortgage loans versus adjustable-rate mortgage loans is monitored on an ongoing basis and is affected significantly by the level of market interest rates, customer preference, interest rate risk position and competitors’ loan products. Adjustable-rate mortgage loans make the loan portfolio more interest rate sensitive and provides an alternative for those borrowers who meet the underwriting criteria, but are unable to qualify for a fixed-rate mortgage. However, as the interest income earned on adjustable-rate mortgage loans varies with prevailing interest rates, such loans do not offer predictable cash flows in the same manner as long-term, fixed-rate loans. Adjustable-rate mortgage loans carry increased credit risk associated with potentially higher monthly payments by borrowers as general market interest rates increase. During periods of rising interest rates, the risk of delinquencies and defaults on adjustable-rate mortgage loans increases due to the upward adjustment of interest costs to the borrower, which may result in increased loan losses. Residential first mortgage loans customarily include due-on-sale clauses, which gives the Company the right to declare a loan immediately due and payable in the event, among other things, that the borrower sells or otherwise disposes of the underlying real property serving as collateral for the loan. Due-on-sale clauses are a means of increasing the interest rate on the mortgage portfolio during periods of rising interest rates. When underwriting residential real estate loans, the Company reviews and verifies each loan applicant’s income and credit history. Management believes that stability of income and past credit history are integral parts in the underwriting process. Generally, the applicant’s total monthly mortgage payment, including all escrow amounts, is limited to 30% of the applicant’s total monthly income. In addition, total monthly obligations of the applicant, including mortgage payments, should not generally exceed 43% of total monthly income. Written appraisals are generally required on real estate property offered to secure an applicant’s loan. For one-to-four family real estate loans with loan to value ratios of over 80%, private mortgage insurance is generally required. Fire and casualty insurance is also required on all properties securing real estate loans. Title insurance may be required, as circumstances warrant. The Company does not offer an “interest only” mortgage loan product on one-to-four family residential properties (where the borrower pays interest for an initial period, after which the loan converts to a fully amortizing loan). They also do not offer loans that provide for negative amortization of principal, such as “Option ARM” loans, where the borrower can pay less than the interest owed on the loan, resulting in an increased principal balance during the life of the loan. The Company does not offer a “subprime loan” program (loans that generally target borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios) or Alt-A loans (traditionally defined as loans having less than full documentation). Commercial and Agricultural Real Estate Loans Underwriting standards for commercial and agricultural real estate loans include a determination of the applicant’s credit history and an assessment of the applicant’s ability to meet existing obligations and payments on the proposed loan. The income approach is primarily utilized to determine whether income generated from the applicant’s business or real estate offered as collateral is adequate to repay the loan. There is an emphasis on the ratio of the property’s projected net cash flow to the loan’s debt service requirement (generally requiring a minimum ratio of 120%). In underwriting a loan, the value of the real estate offered as collateral in relation to the proposed loan amount is considered. Generally, the loan amount cannot be greater than 75% of the value of the real estate. Written appraisals are usually obtained from either licensed or certified appraisers on all commercial and agricultural real estate loans in excess of $250,000. Creditworthiness of the applicant is assessed by reviewing a credit report, financial statements and tax returns of the applicant, as well as obtaining other public records regarding the applicant. Loans secured by commercial and agricultural real estate generally involve a greater degree of credit risk than one-to-four family residential mortgage loans and carry larger loan balances. This increased credit risk is a result of several factors, including the effects of general economic conditions on income producing properties and the successful operation or management of the properties securing the loans. Furthermore, the repayment of loans secured by commercial and agricultural real estate is typically dependent upon the successful operation of the related business and real estate property. If the cash flows from the project are reduced, the borrower’s ability to repay the loan may be impaired. Commercial and Agricultural Business Loans Underwriting standards for commercial and agricultural business loans include a determination of the applicant’s ability to meet existing obligations and payments on the proposed loan from normal cash flows generated in the applicant’s business. Financial strength of each applicant is assessed through the review of financial statements and tax returns provided by the applicant. The creditworthiness of an applicant is derived from a review of credit reports as well as a search of public records. Business loans are periodically reviewed following origination. Financial statements are requested at least annually and reviewed for substantial deviations or changes that might affect repayment of the loan. Loan officers also visit the premises of borrowers to observe the business premises, facilities, and personnel and to inspect the pledged collateral. Underwriting standards for business loans are different for each type of loan depending on the financial strength of the applicant and the value of collateral offered as security. Home Equity and Consumer Loans The principal types of other consumer loans offered are loans secured by automobiles, deposit accounts, and mobile homes. Unsecured consumer loans are also generated. Consumer loans are generally offered on a fixed-rate basis. Automobile loans with maturities of up to 60 months are generally offered for new automobiles. Loans secured by used automobiles will have maximum terms which vary depending upon the age of the automobile. Automobile loans with a loan-to-value ratio below the greater of 80% of the purchase price or 100% of NADA loan value are generally originated, although the loan-to-value ratio may be greater or less depending on the borrower’s credit history, debt to income ratio, home ownership and other banking relationships with the Company. Underwriting standards for consumer loans include a determination of the applicant’s credit history and an assessment of the applicant’s ability to meet existing obligations and payments on the proposed loan. The stability of the applicant’s monthly income may be determined by verification of gross monthly income from primary employment, and additionally from any verifiable secondary income. The length of employment with the borrower’s present employer is also considered, as well as the amount of time the borrower has lived in the local area. Creditworthiness of the applicant is of primary consideration; however, the underwriting process also includes a comparison of the value of the collateral in relation to the proposed loan amount. Consumer loans entail greater risks than one-to-four family residential mortgage loans, particularly consumer loans secured by rapidly depreciating assets such as automobiles or loans that are unsecured. Collateral repossessed after a default may not provide an adequate source of repayment of the outstanding loan balance because of damage, loss or depreciation. Further, consumer loan payments are dependent on the borrower’s continuing financial stability, and therefore are more likely to be adversely affected by job loss, divorce, illness or personal bankruptcy. Such events would increase the risk of loss on unsecured loans. Finally, the application of various Federal and state laws, including Federal and state bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans in the event of a default. The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2016 and 2015: December 31, 2016 1-4 Family Commercial Agricultural Commercial Agricultural Home Equity Consumer Unallocated Total Allowance for loan losses: Balance, beginning of year $ 829,604 $ 917,526 $ 201,918 $ 386,620 $ 163,346 $ 149,253 $ 169,381 $ 101,946 $ 2,919,594 Provision charged to expense 14,683 112,411 (10,559 ) (85,258 ) 4,123 22,273 50,016 12,311 120,000 Losses charged off (38,171 ) — — — — — (43,777 ) — (81,948 ) Recoveries 25,884 14,616 — 116 — 2,100 7,033 — 49,749 Balance, end of year $ 832,000 $ 1,044,553 $ 191,359 $ 301,478 $ 167,469 $ 173,626 $ 182,653 $ 114,257 $ 3,007,395 Ending balance: individually evaluated for impairment $ 304,922 $ 723,481 $ — $ 56,409 $ — $ — $ — $ — $ 1,084,812 Ending balance: collectively evaluated for impairment $ 527,078 $ 321,072 $ 191,359 $ 245,069 $ 167,469 $ 173,626 $ 182,653 $ 114,257 $ 1,922,583 Loans: Ending balance $ 45,311,103 $ 41,477,480 $ 38,271,758 $ 21,617,744 $ 14,649,622 $ 11,606,002 $ 14,543,356 $ — $ 187,477,065 Ending balance: individually evaluated for impairment $ 713,151 $ 1,658,323 $ — $ 155,067 $ — $ 54,011 $ — $ — $ 2,580,552 Ending balance: collectively evaluated for impairment $ 44,597,952 $ 39,819,157 $ 38,271,758 $ 21,462,677 $ 14,649,622 $ 11,551,991 $ 14,543,356 $ — $ 184,896,513 December 31, 2015 1-4 Family Commercial Agricultural Commercial Agricultural Home Equity Consumer Unallocated Total Allowance for loan losses: Balance, beginning of year $ 999,260 $ 855,463 $ 195,546 $ 421,809 $ 57,934 $ 205,577 $ 167,319 $ 53,356 $ 2,956,264 Provision charged to expense (10,386 ) 29,238 6,372 (35,327 ) 105,412 (53,188 ) 49,289 48,590 140,000 Losses charged off (199,392 ) (27,464 ) — — — (13,724 ) (53,249 ) — (293,829 ) Recoveries 40,122 60,289 — 138 — 10,588 6,022 — 117,159 Balance, end of year $ 829,604 $ 917,526 $ 201,918 $ 386,620 $ 163,346 $ 149,253 $ 169,381 $ 101,946 $ 2,919,594 Ending balance: individually evaluated for impairment $ 176,079 $ 487,205 $ — $ 127,458 $ — $ 9,922 $ — $ — $ 800,664 Ending balance: collectively evaluated for impairment $ 653,525 $ 430,321 $ 201,918 $ 259,162 $ 163,346 $ 139,331 $ 169,381 $ 101,946 $ 2,118,930 Loans: Ending balance $ 47,395,344 $ 40,381,680 $ 41,223,190 $ 25,453,058 $ 16,102,856 $ 11,691,545 $ 13,741,093 $ — $ 195,988,766 Ending balance: individually evaluated for impairment $ 658,734 $ 1,598,530 $ 839,546 $ 277,628 $ 406,950 $ 58,340 $ 428 $ — $ 3,840,156 Ending balance: collectively evaluated for impairment $ 46,736,610 $ 38,783,150 $ 40,383,644 $ 25,175,430 $ 15,695,906 $ 11,633,205 $ 13,740,665 $ — $ 192,148,610 There have been no changes to the Company’s accounting policies or methodology from the prior periods. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on all loans at origination. In addition, lending relationships over $750,000 and watch list credits over $250,000 are reviewed annually by our independent loan review in order to verify risk ratings. The Company uses the following definitions for risk ratings: Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. During the periods presented, none of our loans were classified as Doubtful. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2016 and 2015: 1-4 Family Commercial Real Estate Agricultural Real Estate Commercial 2016 2015 2016 2015 2016 2015 2016 2015 Pass $ 42,327,337 $ 44,120,334 $ 39,078,740 $ 37,628,385 $ 38,271,758 $ 40,383,644 $ 21,141,466 $ 25,117,982 Special Mention 1,016,025 1,323,266 429,877 454,194 — 839,546 100,234 51,196 Substandard 1,967,741 1,951,744 1,968,863 2,299,101 — — 376,044 283,880 Total $ 45,311,103 $ 47,395,344 $ 41,477,480 $ 40,381,680 $ 38,271,758 $ 41,223,190 $ 21,617,744 $ 25,453,058 Agricultural Business Home Equity Consumer 2016 2015 2016 2015 2016 2015 Pass $ 13,845,865 $ 15,110,606 $ 10,790,377 $ 11,324,889 $ 14,361,125 $ 13,501,477 Special Mention 803,757 992,250 70,983 68,044 10,575 52,656 Substandard — — 744,642 298,612 171,656 186,960 Total $ 14,649,622 $ 16,102,856 $ 11,606,002 $ 11,691,545 $ 14,543,356 $ 13,741,093 The following tables present the Company’s loan portfolio aging analysis as of December 31, 2016 and 2015: December 31, 2016 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Total Loans > 1-4 Family $ 237,783 $ 136,340 $ 544,425 $ 918,548 $ 44,392,555 $ 45,311,103 $ — Commercial real estate — 16,273 — 16,273 41,461.207 41,477,480 — Agricultural real estate — — — — 38,271,758 38,271,758 — Commercial — 41,474 13,309 54,783 21,562,961 21,617,744 — Agricultural business — — — — 14,649,622 14,649,622 — Home equity 151,482 — — 151,482 11,454,520 11,606,002 — Consumer 68,077 17,757 72,150 157,984 14,385,372 14,543,356 — Total $ 457,342 $ 211,844 $ 629,884 $ 1,299,070 $ 186,177,995 $ 187,477,065 $ — December 31, 2015 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Total Loans > 1-4 Family $ 345,169 $ 77,588 $ 623,055 $ 1,045,812 $ 46,349,532 $ 47,395,344 $ — Commercial real estate — — 766,840 766,840 39,614,840 40,381,680 — Agricultural real estate — — — — 41,223,190 41,223,190 — Commercial — — — — 25,453,058 25,453,058 — Agricultural business — — — — 16,102,856 16,102,856 — Home equity 22,122 66,305 69,515 157,942 11,533,603 11,691,545 — Consumer 183,526 5,972 6,031 195,529 13,545,564 13,741,093 — Total $ 550,817 $ 149,865 $ 1,465,441 $ 2,166,123 $ 193,822,643 $ 195,988,766 $ — A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Impairment is measured on a loan-by-loan basis by either the present value of the expected future cash flows, the loan’s observable market value, or, for collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. Significant restructured loans are considered impaired in determining the adequacy of the allowance for loan losses. The Company actively seeks to reduce its investment in impaired loans. The primary tools to work through impaired loans are settlement with the borrowers or guarantors, foreclosure of the underlying collateral, or restructuring. The Company will restructure loans when the borrower demonstrates the inability to comply with the terms of the loan, but can demonstrate the ability to meet acceptable restructured terms. Restructurings generally include one or more of the following restructuring options; reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection. Significant restructured loans in compliance with modified terms are classified as impaired. The following tables present impaired loans for the years ended December 31, 2016 and 2015: December 31, 2016 Recorded Unpaid Specific Average Interest Interest Loans without a specific valuation allowance 1-4 Family $ 39,598 $ 39,598 $ — $ 41,880 $ 2,653 $ 2,888 Commercial real estate 120,172 120,172 — 272,557 13,499 14,061 Commercial 61,483 61,483 — 87,359 4,332 4,419 Home equity 54,011 54,011 — 54,067 3,670 3,871 Loans with a specific valuation allowance 1-4 Family 673,553 673,553 304,922 719,834 41,323 34,208 Commercial real estate 1,538,151 1,538,151 723,481 1,572,203 68,918 64,878 Commercial 93,584 93,584 56,409 165,473 7,580 7,814 Total: 1-4 family 713,151 713,151 304,922 761,714 43,976 37,096 Commercial real estate 1,658,323 1,658,323 723,481 1,844,760 82,417 78,939 Commercial 155,067 155,067 56,409 252,832 11,912 12,233 Home equity 54,011 54,011 — 54,067 3,670 3,871 Total $ 2,580,552 $ 2,580,552 $ 1,084,812 $ 2,913,373 $ 141,975 $ 132,139 December 31, 2015 Recorded Unpaid Specific Average Interest Interest Loans without a specific valuation allowance 1-4 Family $ 111,166 $ 111,166 $ — $ 211,346 $ 12,248 $ 12,042 Commercial real estate 516,560 516,560 — 663,640 34,155 34,586 Agricultural real estate 839,546 839,546 — 864,705 43,335 44,885 Commercial 80,172 80,172 — 83,509 634 150 Agricultural business 406,950 406,950 — 307,729 11,403 808 Home equity 48,418 48,418 — 43,342 3,333 3,331 Consumer 428 428 — 1,160 78 82 Loans with a specific valuation allowance 1-4 Family 547,568 547,568 176,079 568,790 32,908 25,352 Commercial real estate 1,081,970 1,081,970 487,205 1,118,044 67,505 47,864 Commercial 197,456 197,456 127,458 269,496 11,517 11,139 Home equity 9,922 9,922 9,922 9,982 810 722 Total: 1-4 family 658,734 658,734 176,079 780,136 45,156 37,394 Commercial real estate 1,598,530 1,598,530 487,205 1,781,684 101,660 82,450 Agricultural real estate 839,546 839,546 — 864,705 43,335 44,885 Commercial 277,628 277,628 127,458 353,005 12,151 11,289 Agricultural business 406,950 406,950 — 307,729 11,403 808 Home equity 58,340 58,340 9,922 53,324 4,143 4,053 Consumer 428 428 — 1,160 78 82 Total $ 3,840,156 $ 3,840,156 $ 800,664 $ 4,141,743 $ 217,926 $ 180,961 The following table presents the Company’s nonaccrual loans at December 31, 2016 and 2015. This table excludes performing troubled debt restructurings. 2016 2015 1-4 family $ 590,514 $ 911,283 Commercial real estate 708,922 840,449 Agricultural real estate — — Commercial 16,561 9,314 Agricultural business — — Home equity 49,542 118,502 Consumer 164,472 141,605 Total $ 1,530,011 $ 2,021,153 At December 31, 2016 and 2015, the Company had a number of loans that were modified in troubled debt restructurings (TDR’s) and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate or a permanent reduction of the recorded investment in the loan. The following table presents the recorded balance, at original cost, of troubled debt restructurings, as of December 31, 2016 and 2015. 2016 2015 1-4 family $ 836,867 $ 723,421 Commercial real estate 1,362,088 1,708,013 Agricultural real estate — — Commercial 245,710 57,783 Agricultural business — — Home equity 6,009 10,897 Consumer 81,880 109,340 Total $ 2,532,554 $ 2,609,454 The following table presents the recorded balance, at original cost, of troubled debt restructurings, which were performing according to the terms of the restructuring, as of December 31, 2016 and 2015. 2016 2015 1-4 family $ 666,744 $ 526,004 Commercial real estate 1,362,088 941,173 Agricultural real estate — — Commercial 245,710 57,783 Agricultural business — — Home equity 6,009 10,897 Consumer 57,540 86,255 Total $ 2,338,091 $ 1,622,112 The following table presents loans modified as troubled debt restructurings during the years ended December 31, 2016 and 2015. Year Ended Year Ended Number of Recorded Number of Recorded 1-4 family 1 $ 40,395 1 $ 98,246 Commercial real estate 1 708,922 2 524,432 Agricultural real estate — — — — Commercial 1 217,725 — — Agricultural business — — — — Home equity — — 1 1,431 Consumer — — 5 76,691 Total 3 $ 967,042 9 $ 700,800 2016 Modifications The Company modified a one-to-four family residential real estate loan, with a recorded investment of $40,395, which was deemed a TDR. The loan was restructured to combine three loans and capitalize delinquent real estate taxes. The Company modified one commercial real estate loan with a total recorded balance of $708,922, which was deemed a TDR. The loan was restructured after bankruptcy to extend the term, lower the rate, and capitalize the interest to a second note. The Company modified one commercial loan with a total recorded balance of $217,725, which was deemed a TDR. The loan was modified to allow for interest only payments for four months. The modifications did not result in a write-off of the principal balance nor was there a significant difference between the pre modification balance and the post modification balance. 2015 Modifications The Company modified one one-to-four family residential real estate loan, with a recorded investment of $98,246, which was deemed a TDR. The loan was a restructure of delinquent loans into a workout. The Company modified two commercial real estate loans with a total recorded balance of $524,432, which were deemed TDRs. One loan was restructured to capitalize force placed insurance. The other loan was restructured to increase the amortization period of the loan. The Company modified one home equity loan with a recorded investment of $1,431, which was deemed a TDR. The modification was made to extend the term and lower the payment amount. The Company modified five consumer loans with a recorded investment of $76,691, which were deemed TDRs. The modifications were made to extend the payment schedules between two and four months. The modifications did not result in a reduced interest rate or a write-off of the principal balance nor was there a significant difference between the pre modification balance and the post modification balance. TDRs with Defaults Management considers the level of defaults within the various portfolios when evaluating qualitative adjustments used to determine the adequacy of the allowance for loan losses. During the year ended December 31, 2016, three residential real estate loans of $170,123 were considered TDRs in default as they were more than 90 days past due at December 31, 2016. In addition, one commercial real estate loan of $708,922, one commercial loan of $3,252, and two consumer loans of $76,106 were considered TDRs in default as they were in a nonaccrual status but are performing in accordance with their modified terms. During the year ended December 31, 2015, three residential real estate loans of $197,417 and one commercial real estate loan of $766,840 were considered TDRs defaulted as they were more than 90 days past due at December 31, 2015. In addition, three residential real estate loans of $211,262, one commercial real estate loan of $30,021, two commercial loans of $9,314, one home equity loan of $1,431, and one consumer loan of $63,183 were considered TDRs defaulted as they were in a nonaccrual status but are performing in accordance with their modified terms. At December 31, 2016 and 2015, the balance of real estate owned was $0 and $217,101, respectively, with foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2016 and 2015, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $143,634 and $188,438, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5: Premises and Equipment Major classifications of premises and equipment, stated at cost, are as follows: 2016 2015 Land $ 773,186 $ 773,186 Buildings and improvements 6,752,503 6,697,278 Equipment 3,492,693 3,384,516 11,018,382 10,854,980 Less accumulated depreciation (6,519,729 ) (6,126,823 ) Net premises and equipment $ 4,498,653 $ 4,728,157 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Loan Servicing | Note 6: Loan Servicing Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The unpaid principal balance of mortgage loans serviced for others was $130,505,264 and $131,443,738 at December 31, 2016 and 2015, respectively. The following summarized the activity pertaining to mortgage servicing rights measured using the amortization method, along with the aggregate activity in related valuation allowances: 2016 2015 Mortgage servicing rights Balance, beginning of year $ 645,067 $ 689,603 Additions 87,579 73,650 Write-downs (72,580 ) — Amortization (107,239 ) (118,186 ) Balance at end of year 552,827 645,067 Valuation allowances Balance at beginning of year 47,354 56,969 Additions due to decreases in market value 38,967 — Reduction due to write-downs (72,580 ) — Reduction due to payoff of loans (13,741 ) (9,615 ) Balances at end of year 0 47,354 Mortgage servicing assets, net $ 552,827 $ 597,713 Fair value disclosures Fair value as of the beginning of the period $ 870,619 $ 979,699 Fair value as of the end of the period $ 898,625 $ 870,619 The valuation allowance was adjusted during 2016 and 2015 due to payments received on the related loans as well as changes in the estimated market value on the mortgage servicing rights asset. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type, and interest rates, were used to stratify the originated mortgage servicing rights. |
Interest-bearing Deposits
Interest-bearing Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Interest-bearing Deposits | Note 7: Interest-bearing Deposits Interest-bearing deposits in denominations of $100,000 or more totaled $110,971,051 at December 31, 2016 and $90,889,042 at December 31, 2015. The following table represents deposit interest expense by deposit type: December 31, 2016 2015 Savings, NOW and Money Market $ 366,123 $ 249,077 Certificates of deposit 659,109 852,185 Total deposit interest expense $ 1,025,232 $ 1,101,262 At December 31, 2016, the scheduled maturities of time deposits are as follows: 2017 $ 47,319,320 2018 14,869,536 2019 7,572,666 2020 5,387,756 2021 5,037,258 $ 80,186,536 |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Note 8: Short-term Borrowings Short-term borrowings include securities sold under agreements to repurchase totaling $7,135,182 and $6,631,710 at December 31, 2016 and 2015, respectively. Securities sold under agreements to repurchase consist of obligations of the Company to other parties. The maximum amount of outstanding agreements at any month end during 2016 and 2015 totaled $7,342,844 and $9,548,789, respectively, and the monthly average of such agreements totaled $5,254,122 and $6,024,224 for 2016 and 2015, respectively. The agreements at December 31, 2016, are all for overnight borrowings. At December 31, 2016, we had $4,617,608 of repurchase agreements secured by mortgage backed securities and $2,517,574 in repurchase agreements secured by U.S. government agency bonds. All of our repurchase agreements mature overnight. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The collateral is held by the Company in a segregated custodial account. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained. Also included in short-term borrowings at December 31, 2015 were advances with the Federal Home Loan Bank (FHLB) of $8,500,000. The advances matured during 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes The Company and its subsidiary file income tax returns in the U.S. federal and state of Illinois jurisdictions. During the years ended December 31, 2016 and 2015, the Company did not recognize expense for interest or penalties. The provision for income taxes includes these components: 2016 2015 Taxes currently payable Federal $ 916,248 $ 883,916 State 314,017 320,593 Deferred income taxes (142,607 ) (137,484 ) Income tax expense $ 1,087,658 $ 1,067,025 A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: 2016 2015 Computed at the statutory rate (34%) $ 1,406,093 $ 1,391,670 Increase (decrease) resulting from Tax exempt interest (445,584 ) (454,067 ) State income taxes, net 184,535 188,690 Increase in cash surrender value (58,651 ) (59,646 ) Other 1,265 378 Actual tax expense $ 1,087,658 $ 1,067,025 Tax expense as a percentage of pre-tax income 26.30 % 26.07 % 60 Jacksonville Bancorp, Inc. Notes to Consolidated Financial Statements Years Ended December 31, 2016 and 2015 The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were: 2016 2015 Deferred tax assets Allowance for loan losses $ 1,050,004 $ 1,015,661 Deferred compensation 1,830,687 1,817,124 Net unrealized loss on available for sale securities 605,970 — Other — 29,497 3,486,661 2,862,282 Deferred tax liabilities Net unrealized gain on available-for-sale securities — (407,145 ) Depreciation (390,787 ) (434,043 ) Federal Home Loan Bank stock dividends (48,291 ) (147,858 ) Prepaid expenses (65,504 ) (56,374 ) Mortgage servicing rights (216,238 ) (233,795 ) Other (27,052 ) — (747,872 ) (1,279,215 ) Net deferred tax asset $ 2,738,789 $ 1,583,067 At December 31, 2016 and 2015, the Company had no Illinois net operating loss carryforwards. Retained earnings at December 31, 2016 and 2015, include approximately $2,600,000, for which no deferred federal income tax liability has been recognized. These amounts represent an allocation of income to bad debt deductions for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses or adjustments arising from carryback of net operating losses would create income for tax purposes only, which would be subject to the then-current corporate income tax rate. The deferred income tax liabilities on the preceding amounts that would have been recorded if they were expected to reverse into taxable income in the foreseeable future were approximately $1,000,000 at December 31, 2016 and 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 10: Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: 2016 2015 Net unrealized gain (loss) on securities available-for-sale $ (1,782,264 ) $ 1,197,486 Tax effect 605,970 (407,145 ) Net-of-tax amount $ (1,176,294 ) $ 790,341 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (AOCI) by Component | 12 Months Ended |
Dec. 31, 2016 | |
Changes In Accumulated Other Comprehensive Income Aoci By Component [Abstract] | |
Changes in Accumulated Other Comprehensive Income (AOCI) by Component | Note 11: Changes in Accumulated Other Comprehensive Income (AOCI) by Component Amounts reclassified from AOCI and the affected line items in the statements of income during the years ended December 31, 2016 and 2015, were as follows: Amounts Reclassified Affected Line Item in the 2016 2015 Statements of Income Realized gains on available-for-sale securities $ 399,599 $ 320,585 Realized gain on sale of securities Total reclassified amount before tax (135,864 ) (108,999 ) Tax expense $ 263,735 $ 211,586 Net reclassified amount |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 12: Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these consolidated financial statements. Quantitative measures established by regulatory reporting standards to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined) to risk-weighted assets (as defined), common equity Tier 1 capital (as defined) to total risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2016 and 2015, that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2016, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based capital, Tier I risk-based capital, common equity Tier 1 risk-based capital, and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts (in thousands) and ratios are also presented in the table. Actual Minimum Capital Minimum to Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Total risk-based capital $ 42,543 19.52 % $ 17,434 8.0 % $ 21,793 10.0 % Tier I capital 39,816 18.27 13,076 6.0 17,434 8.0 Common equity Tier I 39,816 18.27 9,807 4.5 14,165 6.5 Tier I capital 39,816 12.58 12,662 4.0 15,828 5.0 Tangible capital 39,816 12.58 4,748 1.5 — N/A As of December 31, 2015 Total risk-based capital $ 41,631 19.15 % $ 17,387 8.0 % $ 21,734 10.0 % Tier I capital 38,912 17.90 13,040 6.0 17,387 8.0 Common equity Tier I 38,912 17.90 9,780 4.5 14,127 6.5 Tier I capital 38,912 12.82 12,139 4.0 15,174 5.0 Tangible capital 38,912 12.82 4,552 1.5 — N/A Basel III Capital Rules In 2013, the Board of Governors of the Federal Reserve System approved a final rule implementing changes intended to strengthen the regulatory capital framework for all banking organizations (Basel III) which became effective January 1, 2015, subject to a phase-in period for certain provisions. Basel III establishes and defines quantitative measures to ensure capital adequacy which require First Financial to maintain minimum amounts and ratios of Common Equity tier 1 capital, total and tier 1 capital to risk-weighted assets and tier 1 capital to average assets (leverage ratio). The rule includes a new minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5% and a new capital conservation buffer of 2.5% of risk-weighted assets that will begin on January 1, 2016 at 0.625% and be phased-in over a four-year period, increasing by the same amount on each subsequent January 1, until fully phased-in on January 1, 2019. The capital conservation buffer is required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. Further, the minimum ratio of tier 1 capital to risk-weighted assets increased from 4.0% to 6.0% and all banks are now subject to a 4.0% minimum leverage ratio. The required total risk-based capital ratio was unchanged. Failure to maintain the required common equity Tier 1 capital conservation buffer will result in potential restrictions on a bank’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees. The revised capital requirements also provide strict eligibility criteria for regulatory capital instruments and change the method for calculating risk-weighted assets in an effort to better identify riskier assets, such as highly volatile commercial real estate and nonaccrual loans, requiring higher capital allocations. The net unrealized gain or loss on available securities is not included in computing regulatory capital. The following is a reconciliation of the Bank equity amount included in the consolidated balance sheets to the amounts (in thousands) reflected above for regulatory capital purposes as of December 31: 2016 2015 Bank equity $ 41,367 $ 42,429 Less net unrealized gain (loss) (1,176 ) 790 Less disallowed goodwill 2,727 2,727 Tier 1 and common equity Tier 1 capital 39,816 38,912 Plus allowance for loan losses 2,727 2,719 Total risked-based capital $ 42,543 $ 41,631 The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. As of December 31, 2016, the Bank has $762,295 available for the payment of dividends without prior regulatory approval. On January 19, 2010, the Boards of Directors of the Company, Jacksonville Bancorp, MHC and the Bank each unanimously adopted a Plan of Conversion and Reorganization of Jacksonville Bancorp, MHC (the “Plan”) pursuant to which Jacksonville Bancorp, MHC undertook a “second-step” conversion and ceased to exist. Jacksonville Bancorp, MHC reorganized from a two-tier mutual holding company structure to a fully public stock holding company structure effective July14, 2010. In accordance with Board of Governors of the Federal Reserve System regulations, at the time of the reorganization, the Company substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their accounts at the Bank after conversion. The Bank will establish a parallel liquidation account to support the Company’s liquidation account in the event the Company does not have sufficient assets to fund its obligations under its liquidation account. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. In the event of a complete liquidation of the Bank or the Company, each account holder will be entitled to receive a distribution in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13: Related Party Transactions At December 31, 2016 and 2015, the Company had loans outstanding to executive officers, directors, significant shareholders and their affiliates (related parties) in the amount of $3,111,976 and $3,193,470, respectively. Annual activity consisted of the following: 2016 2015 Balance beginning of year $ 3,193,470 $ 3,523,047 Additions 1,178,281 1,138,338 Repayments (1,259,775 ) (1,467,915 ) Balance, end of year $ 3,111,976 $ 3,193,470 Deposits from related parties held by the Company at December 31, 2016 and 2015 totaled approximately $3,264,000 and $2,581,000, respectively. In management’s opinion, such loans and other extensions of credit and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectibility or present other unfavorable features. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Note 14: Employee Benefits 401(k) Plan — Deferred Compensation Plan — The Company has also entered into deferred compensation agreements with certain key officers and employees. The agreements provide for monthly payments at retirement or death. The charge to expense for this plan reflects the accrual using the principal and interest method over the vesting period of the present value of benefits due each participant on the full eligibility date using a 4.75% discount rate. The amount recorded on the consolidated balance sheets as deferred compensation was $2,088,737 and $1,970,597 as of December 31, 2016 and 2015, respectively. Compensation expense related to the plans was $182,796 and $233,731 for the years ended December 31, 2016 and 2015, respectively. Employee Stock Ownership Plan (ESOP) — As part of the second step conversion, in July 2010 the Company acquired 41,614 additional shares of Company common stock at $10 per share in the conversion with funds provided by a loan from the Company. Accordingly, $416,140 of common stock acquired by the ESOP was shown as a reduction of stockholders’ equity. Shares are released to participants proportionately as the loan is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares are used to repay the loan and are treated as compensation expense. Compensation expense is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. ESOP expense for the years ended December 31, 2016 and 2015 was $108,421 and $90,649, respectively. 2016 2015 Allocated shares $ 59,838 $ 57,420 Shares committed for allocation 3,934 3,820 Unearned shares 17,237 21,171 Total ESOP shares 81,009 82,411 Fair value of unearned shares at December 31 $ 517,110 $ 556,374 |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plans | Note 15: Stock Option Plans The Jacksonville Bancorp, Inc. 2012 Stock Option Plan, which is shareholder approved, permits the grant of share options and shares to its employees for up to 104,035 shares of common stock. The Company believes that such awards better align the interests of its employees with those of its shareholders. All shares were awarded as of the approval date, expire ten years after the grant date, and are exercisable at a price of $15.65 per share. The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time that options are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The discount rate for post-vesting restrictions is estimated based on the Company’s credit-adjusted risk-free rate of return. A summary of option activity under the Plans as of December 31, 2016 and 2015, and changes during the years then ended, is presented below: 2016 Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 61,120 $ 15.65 Granted — — Exercised (13,532 ) 15.65 Forfeited or expired (100 ) 15.65 Outstanding, end of year 47,488 $ 15.65 5.25 $ 681,453 Exercisable, end of year 25,653 $ 15.65 5.25 $ 368,121 2015 Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 85,835 $ 15.65 Granted — — Exercised (24,715 ) 15.65 Forfeited or expired — — Outstanding, end of year 61,120 $ 15.65 6.25 $ 649,706 Exercisable, end of year 19,035 $ 15.65 6.25 $ 202,342 The total intrinsic value of options exercised during the years ended December 31, 2016 and 2015 was $161,572 and $200,192, respectively. As of December 31, 2016, there was $22,232 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the 2012 Plan. That cost is expected to be recognized over a weighted-average period of one year. The total fair value of shares vested during the years ended December 31, 2016 and 2015 was $90,163. The recognized tax benefit related thereto was $35,267 for the years ended December 31, 2016 and 2015. A summary of the status of the Company’s nonvested shares as of December 31, 2016 and 2015, and changes during the year then ended, is presented below: December 31, 2016 Shares Weighted- Nonvested, beginning of year 42,085 $ 4.34 Granted — — Vested (20,150 ) 4.34 Forfeited (100 ) 4.34 Nonvested, end of year 21,835 $ 4.34 December 31, 2015 Shares Weighted- Nonvested, beginning of year 62,235 $ 4.34 Granted — — Vested (20,150 ) 4.34 Forfeited — — Nonvested, end of year 42,085 $ 4.34 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16: Earnings Per Share Earnings per share (EPS) were computed as follows: Year Ended December 31, 2016 Income Weighted- Per Share Net income $ 3,047,909 Basic earnings per share Income available to common stockholders 1,776,342 $ 1.72 Effect of dilutive securities Stock options 17,539 Diluted earnings per share Income available to common stockholders $ 3,047,909 1,793,881 $ 1.70 Year Ended December 31, 2015 Income Weighted- Per Share Net income $ 3,026,123 Basic earnings per share Income available to common stockholders 1,770,546 $ 1.71 Effect of dilutive securities Stock options 13,469 Diluted earnings per share Income available to common stockholders $ 3,026,123 1,784,015 $ 1.70 |
Disclosures about Fair Value of
Disclosures about Fair Value of Assets | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Assets | Note 17: Disclosures about Fair Value of Assets Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2016 and 2015: December 31, 2016 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant U.S. Government agencies $ 13,333,540 $ — $ 13,333,540 $ — Mortgage-backed securities (Government-sponsored enterprises - residential) 44,413,177 — 44,413,177 — Municipal bonds 42,414,723 — 42,414,723 — December 31, 2015 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant U.S. Government agencies $ 15,938,697 $ — $ 15,938,697 $ — Mortgage-backed securities (Government-sponsored enterprises - residential) 23,178,395 — 23,178,395 — Municipal bonds 48,356,240 — 48,356,240 — Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the year ended December 31, 2016. Available-for-Sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Nonrecurring Measurements The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2016 and 2015: December 31, 2016 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant Impaired loans (collateral dependent) $ 1,157,329 $ — $ — $ 1,157,329 Mortgage servicing rights 552,827 — — 552,827 December 31, 2015 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant Impaired loans (collateral dependent) $ 899,981 $ — $ — $ 899,981 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary. Appraisals are reviewed for accuracy and consistency. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. Fair value adjustments on impaired loans were $391,745 and $(156,069) at December 31, 2016 and 2015. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models having significant inputs of discount rate, prepayment speed and default rate. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. Mortgage servicing rights are tested for impairment on at least an annual basis. The Company uses a third-party to measure mortgage servicing rights through the completion of a proprietary model. Inputs to the model are reviewed by the Company. Fair value adjustments on mortgage servicing rights were $(38,967) and $0 at December 31, 2016 and 2015. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements. Fair Value at Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 1,157,329 Market comparable properties Marketability discount 20% – 30% (25%) Mortgage servicing rights $ 552,827 Discounted cash flow Discount rate 9% - 13.5% (10.25%) PSA standard prepayment model rate 104 – 300 (153) Fair Value at Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 899,981 Market comparable properties Marketability discount 20% – 30% (25%) Fair Value of Other Financial Instruments The following table presents estimated fair values of the Company’s other financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2016 and 2015: December 31, 2016 Fair Value Measurements Using Carrying Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Financial assets Cash and cash equivalents $ 12,909,924 $ 12,909,924 $ — $ — Interest-earning time deposits 750,000 750,000 — — Other investments 55,481 — 55,481 — Loans held for sale 503,003 — 503,003 — Loans, net of allowance for loan losses 184,448,003 — — 183,941,877 Federal Home Loan Bank stock 363,800 — 363,800 — Interest receivable 1,588,545 — 1,588,545 — Financial liabilities Deposits 258,677,960 — 178,491,424 81,241,011 Short-term borrowings 7,135,182 — 7,135,182 Advances from borrowers for taxes and insurance 1,102,204 — 1,102,204 — Interest payable 106,755 — 106,755 — Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — December 31, 2015 Fair Value Measurements Using Carrying Quoted Prices Significant Significant Financial assets Cash and cash equivalents $ 4,103,432 $ 4,103,432 $ — $ — Interest-earning time deposits 2,724,000 2,724,000 — — Other investments 62,223 — 62,223 — Loans held for sale 539,000 — 539,000 — Loans, net of allowance for loan losses 193,039,879 — — 193,006,301 Federal Home Loan Bank stock 1,113,800 — 1,113,800 — Interest receivable 1,715,676 — 1,715,676 — Financial liabilities Deposits 239,281,930 — 160,227,406 80,300,060 Short-term borrowings 15,131,710 — 6,631,710 8,500,000 Advances from borrowers for taxes and insurance 990,917 — 990,917 — Interest payable 118,335 — 118,335 — Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying condensed consolidated balance sheets at amounts other than fair value. Cash and Cash Equivalents, Interest-Earning Time Deposits, Interest Receivable, Federal Home Loan Bank Stock, and Other Investments The carrying amount approximates fair value. Loans Held for Sale For homogeneous categories of loans, such as mortgage loans held for sale, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. Loans The fair value of loans is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Short-term Borrowings, Interest Payable, and Advances from Borrowers for Taxes and Insurance The carrying amount approximates fair value. Commitments to Originate Loans, Letters of Credit, and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. |
Significant Estimates and Conce
Significant Estimates and Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Significant Estimates and Concentrations | Note 18: Significant Estimates and Concentrations Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in the note regarding loans. Current vulnerabilities due to certain concentrations of credit risk are discussed in the note on commitments and credit risk. Other significant estimates not discussed in those notes include: General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. Goodwill As discussed in Note |
Commitments and Credit Risk
Commitments and Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Credit Risk | Note 19: Commitments and Credit Risk The Company grants agribusiness, commercial and residential loans to customers in Cass, Morgan, Macoupin, Montgomery and surrounding counties in Illinois. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent upon economic conditions and the agricultural economy in these counties. The Company also purchases participation loans from out of territory areas. Commitments to Originate Loans Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. At December 31, 2016 and 2015, the Company had outstanding commitments to originate loans aggregating approximately $5,238,175 and $4,457,514, respectively. The commitments extended over varying periods of time with the majority being disbursed within a one-year period. Loan commitments at fixed rates of interest amounted to $2,028,000 and $3,744,574 at December 31, 2016 and 2015, respectively, with the remainder at floating market rates. The range of fixed rates was 3.00% to 7.75% as of December 31, 2016. Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Should the Company be obliged to perform under the standby letters of credit, the Company may seek recourse from the customer for reimbursement of amounts paid. The Company had total outstanding standby letters of credit amounting to $110,000 at December 31, 2016 and 2015, with terms of one year or less. At December 31, 2016 and 2015, the Company’s deferred revenue under standby letters of credit agreements was nominal. Lines of Credit Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. At December 31, 2016, the Company had unused lines of credit to borrowers aggregating approximately $26,836,352 and $15,869,821 for commercial lines and open-ended consumer lines, respectively. At December 31, 2015, unused lines of credit to borrowers aggregated approximately $21,753,180 for commercial lines and $10,785,989 for open-ended consumer lines. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 20: Quarterly Results of Operations (Unaudited) Year Ended December 31, 2016 Three Months Ended December 31 September 30 June 30 March 31 Interest income $ 2,817,513 $ 2,858,551 $ 2,849,785 $ 2,909,135 Interest expense 274,630 277,603 247,184 248,909 Net interest income 2,542,883 2,580,948 2,602,601 2,660,226 Provision for loan losses 30,000 30,000 30,000 30,000 Net interest income after provision for loan losses 2,512,883 2,550,948 2,572,601 2,630,226 Noninterest income 1,099,642 1,088,058 1,034,670 1,039,075 Noninterest expense 2,681,987 2,613,954 2,564,033 2,532,562 Income before income taxes 930,538 1,025,052 1,043,238 1,136,739 Income tax expense 233,278 267,287 277,732 309,361 Net income $ 697,260 $ 757,765 $ 765,506 $ 827,378 Basic earnings per share $ 0.39 $ 0.43 $ 0.43 $ 0.47 Diluted earnings per share $ 0.39 $ 0.42 $ 0.43 $ 0.46 Year Ended December 31, 2015 Three Months Ended December 31 September 30 June 30 March 31 Interest income $ 2,923,681 $ 2,830,112 $ 2,859,579 $ 2,901,492 Interest expense 252,749 267,433 293,141 314,050 Net interest income 2,670,932 2,562,679 2,566,438 2,587,442 Provision for loan losses 30,000 45,000 35,000 30,000 Net interest income after provision for loan losses 2,640,932 2,517,679 2,531,438 2,557,442 Noninterest income 1,096,519 991,626 1,063,287 1,035,458 Noninterest expense 2,814,601 2,579,660 2,431,183 2,515,789 Income before income taxes 922,850 929,645 1,163,542 1,077,111 Income tax expense 218,785 230,247 327,139 290,854 Net income $ 704,065 $ 699,398 $ 836,403 $ 786,257 Basic earnings per share $ 0.40 $ 0.40 $ 0.47 $ 0.44 Diluted earnings per share $ 0.39 $ 0.39 $ 0.47 $ 0.44 |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information (Parent Company Only) | Note 21: Condensed Financial Information (Parent Company Only) Presented below is condensed financial information as to financial position, results of operations and cash flows of the Company: Condensed Balance Sheets December 31, 2016 2015 Assets Cash and due from banks $ 4,806,252 $ 4,800,526 Investment in common stock of subsidiary 41,366,024 42,428,601 Loan receivable from subsidiary 177,347 216,506 Other assets 118,460 106,960 Total assets $ 46,468,083 $ 47,552,593 Liabilities Other liabilities $ 222,518 $ 1,986,093 Stockholders' Equity 46,245,565 45,566,500 Total liabilities and stockholders' equity $ 46,468,083 $ 47,552,593 Condensed Statements of Income and Comprehensive Income Year Ending December 31, 2016 2015 Income Dividends from subsidiary $ 2,500,000 $ 2,000,000 Other income 10,544 11,712 Total income 2,510,544 2,011,712 Expenses Other expenses 360,950 361,694 Income Before Income Tax and Equity in Undistributed Income of Subsidiary 2,149,594 1,650,018 Income Tax Benefit (136,020 ) (137,420 ) Income Before Equity in Undistributed Income of Subsidiary 2,285,614 1,787,438 Equity in Undistributed Income of Subsidiary 762,295 1,238,685 Net Income $ 3,047,909 $ 3,026,123 Comprehensive Income $ 1,081,274 $ 3,104,981 Condensed Statements of Cash Flows Year Ending December 31, 2016 2015 Operating Activities Net income $ 3,047,909 $ 3,026,123 Items not providing cash, net (762,295 ) (1,238,685 ) Stock-based compensation expense 90,163 90,163 Change in other assets and liabilities, net (53,487 ) (17,617 ) Net cash provided by operating activities 2,322,290 1,859,984 Investing Activity Loan payment from subsidiary 39,159 37,879 Net cash provided by investing activities 39,159 37,879 Financing Activities Dividends paid (2,440,380 ) (565,995 ) Stock repurchase (127,118 ) (765,311 ) Exercise of stock options 211,775 386,790 Net cash used in financing activities (2,355,723 ) (944,516 ) Net Change in Cash and Cash Equivalents 5,726 953,347 Cash and Cash Equivalents at Beginning of Year 4,800,526 3,847,179 Cash and Cash Equivalents at End of Year $ 4,806,252 $ 4,800,526 |
Nature of Operations and Summ31
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Financial Statement Presentation | Principles of Consolidation and Financial Statement Presentation The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly owned subsidiary, Financial Resources Group, Inc. Significant intercompany accounts and transactions have been eliminated in consolidation. Based on the Company’s approach to decision making, it has decided that its business is comprised of a single segment. The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and conform to predominate practice within the banking industry. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, fair value of securities, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of loan servicing rights, valuation of deferred tax assets and goodwill impairment. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2016 and 2015, cash equivalents consisted primarily of federal funds sold and interest-earning time and demand deposits in banks. At December 31, 2016, the Company’s cash accounts did not exceed federally insured limits. |
Interest-earning Time Deposits in Banks | Interest-earning Time Deposits in Banks Interest-earning time deposits in banks are generally short-term and are carried at cost. |
Securities | Securities Available-for-sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the settlement date and are determined using the specific identification method. For debt securities with fair value below amortized cost when the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Other Investments | Other Investments Other investments at December 31, 2016 and 2015 include local municipal bonds and equity investments in local community development organizations. The municipal bonds mature ratably through the year 2020. These securities have no readily ascertainable market value and are carried at cost. |
Loans Held for Sale | Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on loans is generally discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes collectibility of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 35-40 years Equipment 3-5 years |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank system. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in income or expense from foreclosed assets. |
Bank-owned Life Insurance | Bank-owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at the estimated cash surrender value. Changes in the cash surrender value are reflected in noninterest income in the consolidated statements of income. |
Goodwill | Goodwill Goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. The goodwill was not deemed impaired as of December 31, 2016 or 2015. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change. The Company has elected to subsequently measure the mortgage servicing rights under the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment or increased obligation based on fair value at each reporting date. Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported as a separate line item in noninterest expense on the consolidated income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned in loan servicing fees in non-interest income. The amortization of mortgage servicing rights is netted from the gains on sale of loans, both cash gains as well as the capitalized gains, and is included in mortgage banking operations, net in non-interest income. |
Stock Options | Stock Options At December 31, 2016 and 2015, the Company recognizes the fair value (calculated value) of stock-based awards to employees as compensation cost over the requisite service period. The stock-based employee compensation plan is described more fully in Note 15. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to the management’s judgment. With a few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2013. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiary. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation on available-for-sale securities. |
Trust Assets | Trust Assets Assets held in fiduciary or agency capacities are not included in the consolidated balance sheets since such items are not assets of the Company. Fees from trust activities are recorded as revenue over the period in which the service is provided. Fees are a function of the market value of assets managed and administered, the volume of transactions, and fees for other services rendered, as set forth in the underlying client agreement with the Trust Department. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes. Generally, the actual trust fee is charged to each account on a monthly basis. Any out of pocket expenses or services not typically covered by the fee schedule for trust activities are charged directly to the trust account on a gross basis as trust revenue is incurred. The Company managed or administered approximately 131 and 124 trust accounts with assets totaling approximately $99.3 million and $90.7 million at December 31, 2016 and 2015, respectively. |
Reclassifications | Reclassifications Certain amounts included in the 2015 consolidated statements have been reclassified to conform to the 2016 presentation. |
Recent and Future Accounting Requirements | Recent and Future Accounting Requirements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides a five-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are included in the scope of other standards). The guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied either retrospectively or using the modified retrospective approach. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which provides a one-year deferral of ASU 2014-09. Management is in the preliminary stage of evaluating the impact of the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. Early adoption would be permitted, but not before the original public entity effective date. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently reviewing its processes but adoption by the Company is not expected to have a material impact on the consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019. The Company has been receiving training and gathering historical data in order to determine the impact the adoption of ASU 2016-13 will have on the consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of the simplification initiative is to identify, evaluate, and improve areas of US GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The new guidance will be effective for public companies for reporting periods beginning after December 15, 2016. The Company is currently implementing the new processes and does not anticipate a significant impact on the Company’s financial statements. In January 2017, FASB amended FASB ASC Topic 250, Simplifying the Test for Goodwill. The amendments in the update simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under this amendment, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has goodwill from a prior business combination and performs an annual impairment test or more frequently if changes or circumstances occur that would more likely than not reduce the fair value of the reporting unit below its carrying value. During the current year, the Company performed its impairment assessment and determined that the Company’s goodwill was not impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated and, therefore, does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. |
Nature of Operations and Summ32
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of premises and equipment | Buildings and improvements 35-40 years Equipment 3-5 years |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities | Amortized Gross Gross Fair Value Available-for-sale Securities December 31, 2016: U.S. Government and federal agencies $ 13,985,863 $ 9,641 $ (661,964 ) $ 13,333,540 Mortgage-backed securities (Government-sponsored enterprises - residential) 45,457,262 70,512 (1,114,597 ) 44,413,177 Municipal bonds 42,500,579 558,776 (644,632 ) 42,414,723 $ 101,943,704 $ 638,929 $ (2,421,193 ) $ 100,161,440 December 31, 2015: U.S. Government and federal agencies $ 15,979,475 $ 44,972 $ (85,750 ) $ 15,938,697 Mortgage-backed securities (Government-sponsored enterprises - residential) 23,067,200 211,987 (100,792 ) 23,178,395 Municipal bonds 47,229,171 1,306,328 (179,259 ) 48,356,240 $ 86,275,846 $ 1,563,287 $ (365,801 ) $ 87,473,332 |
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity | Available-for-sale Amortized Fair Within one year $ 1,036,978 $ 1,043,616 One to five years 9,201,183 9,315,610 Five to ten years 27,297,515 27,081,945 After ten years 18,950,766 18,307,092 56,486,442 55,748,263 Mortgage-backed securities 45,457,262 44,413,177 Totals $ 101,943,704 $ 100,161,440 |
Schedule of gross unrealized losses and fair value in a continuous unrealized loss position | December 31, 2016 Less than 12 Months 12 Months or More Total Description of Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale Securities U.S. Government agencies $ 12,333,924 $ (661,964 ) $ — $ — $ 12,333,924 $ (661,964 ) Mortgage-backed securities (Government-sponsored enterprises - residential) 37,144,915 (1,114,597 ) — — 37,144,915 (1,114,597 ) Municipal bonds 22,104,420 (644,632 ) — — 22,104,420 (644,632 ) Total temporarily impaired securities $ 71,583,259 $ (2,421,193 ) $ — $ — $ 71,583,259 $ (2,421,193 ) December 31, 2015 Less than 12 Months 12 Months or More Total Description of Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale Securities U.S. Government agencies $ 8,591,014 $ (49,205 ) $ 1,809,745 $ (36,545 ) $ 10,400,759 $ (85,750 ) Mortgage-backed securities (Government-sponsored enterprises - residential) 5,843,754 (45,886 ) 2,257,674 (54,906 ) 8,101,428 (100,792 ) Municipal bonds 5,440,291 (48,383 ) 6,734,290 (130,876 ) 12,174,581 (179,259 ) Total temporarily impaired securities $ 19,875,059 $ (143,474 ) $ 10,801,709 $ (222,327 ) $ 30,676,768 $ (365,801 ) |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of classes of loans | 2016 2015 Mortgage loans on real estate Residential 1-4 family $ 45,311,103 $ 47,395,344 Commercial 41,477,480 40,381,680 Agricultural 38,271,758 41,223,190 Home equity 11,606,002 11,691,545 Total mortgage loans on real estate 136,666,343 140,691,759 Commercial loans 21,617,744 25,453,058 Agricultural 14,649,622 16,102,856 Consumer 14,543,356 13,741,093 187,477,065 195,988,766 Less Net deferred loan fees 21,667 29,293 Allowance for loan losses 3,007,395 2,919,594 Net loans $ 184,448,003 $ 193,039,879 |
Schedule of allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method | December 31, 2016 1-4 Family Commercial Agricultural Commercial Agricultural Home Equity Consumer Unallocated Total Allowance for loan losses: Balance, beginning of year $ 829,604 $ 917,526 $ 201,918 $ 386,620 $ 163,346 $ 149,253 $ 169,381 $ 101,946 $ 2,919,594 Provision charged to expense 14,683 112,411 (10,559 ) (85,258 ) 4,123 22,273 50,016 12,311 120,000 Losses charged off (38,171 ) — — — — — (43,777 ) — (81,948 ) Recoveries 25,884 14,616 — 116 — 2,100 7,033 — 49,749 Balance, end of year $ 832,000 $ 1,044,553 $ 191,359 $ 301,478 $ 167,469 $ 173,626 $ 182,653 $ 114,257 $ 3,007,395 Ending balance: individually evaluated for impairment $ 304,922 $ 723,481 $ — $ 56,409 $ — $ — $ — $ — $ 1,084,812 Ending balance: collectively evaluated for impairment $ 527,078 $ 321,072 $ 191,359 $ 245,069 $ 167,469 $ 173,626 $ 182,653 $ 114,257 $ 1,922,583 Loans: Ending balance $ 45,311,103 $ 41,477,480 $ 38,271,758 $ 21,617,744 $ 14,649,622 $ 11,606,002 $ 14,543,356 $ — $ 187,477,065 Ending balance: individually evaluated for impairment $ 713,151 $ 1,658,323 $ — $ 155,067 $ — $ 54,011 $ — $ — $ 2,580,552 Ending balance: collectively evaluated for impairment $ 44,597,952 $ 39,819,157 $ 38,271,758 $ 21,462,677 $ 14,649,622 $ 11,551,991 $ 14,543,356 $ — $ 184,896,513 December 31, 2015 1-4 Family Commercial Agricultural Commercial Agricultural Home Equity Consumer Unallocated Total Allowance for loan losses: Balance, beginning of year $ 999,260 $ 855,463 $ 195,546 $ 421,809 $ 57,934 $ 205,577 $ 167,319 $ 53,356 $ 2,956,264 Provision charged to expense (10,386 ) 29,238 6,372 (35,327 ) 105,412 (53,188 ) 49,289 48,590 140,000 Losses charged off (199,392 ) (27,464 ) — — — (13,724 ) (53,249 ) — (293,829 ) Recoveries 40,122 60,289 — 138 — 10,588 6,022 — 117,159 Balance, end of year $ 829,604 $ 917,526 $ 201,918 $ 386,620 $ 163,346 $ 149,253 $ 169,381 $ 101,946 $ 2,919,594 Ending balance: individually evaluated for impairment $ 176,079 $ 487,205 $ — $ 127,458 $ — $ 9,922 $ — $ — $ 800,664 Ending balance: collectively evaluated for impairment $ 653,525 $ 430,321 $ 201,918 $ 259,162 $ 163,346 $ 139,331 $ 169,381 $ 101,946 $ 2,118,930 Loans: Ending balance $ 47,395,344 $ 40,381,680 $ 41,223,190 $ 25,453,058 $ 16,102,856 $ 11,691,545 $ 13,741,093 $ — $ 195,988,766 Ending balance: individually evaluated for impairment $ 658,734 $ 1,598,530 $ 839,546 $ 277,628 $ 406,950 $ 58,340 $ 428 $ — $ 3,840,156 Ending balance: collectively evaluated for impairment $ 46,736,610 $ 38,783,150 $ 40,383,644 $ 25,175,430 $ 15,695,906 $ 11,633,205 $ 13,740,665 $ — $ 192,148,610 |
Schedule of credit risk profile of the Company's loan portfolio based on rating category and payment activity | 1-4 Family Commercial Real Estate Agricultural Real Estate Commercial 2016 2015 2016 2015 2016 2015 2016 2015 Pass $ 42,327,337 $ 44,120,334 $ 39,078,740 $ 37,628,385 $ 38,271,758 $ 40,383,644 $ 21,141,466 $ 25,117,982 Special Mention 1,016,025 1,323,266 429,877 454,194 — 839,546 100,234 51,196 Substandard 1,967,741 1,951,744 1,968,863 2,299,101 — — 376,044 283,880 Total $ 45,311,103 $ 47,395,344 $ 41,477,480 $ 40,381,680 $ 38,271,758 $ 41,223,190 $ 21,617,744 $ 25,453,058 Agricultural Business Home Equity Consumer 2016 2015 2016 2015 2016 2015 Pass $ 13,845,865 $ 15,110,606 $ 10,790,377 $ 11,324,889 $ 14,361,125 $ 13,501,477 Special Mention 803,757 992,250 70,983 68,044 10,575 52,656 Substandard — — 744,642 298,612 171,656 186,960 Total $ 14,649,622 $ 16,102,856 $ 11,606,002 $ 11,691,545 $ 14,543,356 $ 13,741,093 |
Schedule of loan portfolio aging analysis | December 31, 2016 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Total Loans > 1-4 Family $ 237,783 $ 136,340 $ 544,425 $ 918,548 $ 44,392,555 $ 45,311,103 $ — Commercial real estate — 16,273 — 16,273 41,461.207 41,477,480 — Agricultural real estate — — — — 38,271,758 38,271,758 — Commercial — 41,474 13,309 54,783 21,562,961 21,617,744 — Agricultural business — — — — 14,649,622 14,649,622 — Home equity 151,482 — — 151,482 11,454,520 11,606,002 — Consumer 68,077 17,757 72,150 157,984 14,385,372 14,543,356 — Total $ 457,342 $ 211,844 $ 629,884 $ 1,299,070 $ 186,177,995 $ 187,477,065 $ — December 31, 2015 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Total Loans > 1-4 Family $ 345,169 $ 77,588 $ 623,055 $ 1,045,812 $ 46,349,532 $ 47,395,344 $ — Commercial real estate — — 766,840 766,840 39,614,840 40,381,680 — Agricultural real estate — — — — 41,223,190 41,223,190 — Commercial — — — — 25,453,058 25,453,058 — Agricultural business — — — — 16,102,856 16,102,856 — Home equity 22,122 66,305 69,515 157,942 11,533,603 11,691,545 — Consumer 183,526 5,972 6,031 195,529 13,545,564 13,741,093 — Total $ 550,817 $ 149,865 $ 1,465,441 $ 2,166,123 $ 193,822,643 $ 195,988,766 $ — |
Schedule of impaired loans | December 31, 2016 Recorded Unpaid Specific Average Interest Interest Loans without a specific valuation allowance 1-4 Family $ 39,598 $ 39,598 $ — $ 41,880 $ 2,653 $ 2,888 Commercial real estate 120,172 120,172 — 272,557 13,499 14,061 Commercial 61,483 61,483 — 87,359 4,332 4,419 Home equity 54,011 54,011 — 54,067 3,670 3,871 Loans with a specific valuation allowance 1-4 Family 673,553 673,553 304,922 719,834 41,323 34,208 Commercial real estate 1,538,151 1,538,151 723,481 1,572,203 68,918 64,878 Commercial 93,584 93,584 56,409 165,473 7,580 7,814 Total: 1-4 family 713,151 713,151 304,922 761,714 43,976 37,096 Commercial real estate 1,658,323 1,658,323 723,481 1,844,760 82,417 78,939 Commercial 155,067 155,067 56,409 252,832 11,912 12,233 Home equity 54,011 54,011 — 54,067 3,670 3,871 Total $ 2,580,552 $ 2,580,552 $ 1,084,812 $ 2,913,373 $ 141,975 $ 132,139 December 31, 2015 Recorded Unpaid Specific Average Interest Interest Loans without a specific valuation allowance 1-4 Family $ 111,166 $ 111,166 $ — $ 211,346 $ 12,248 $ 12,042 Commercial real estate 516,560 516,560 — 663,640 34,155 34,586 Agricultural real estate 839,546 839,546 — 864,705 43,335 44,885 Commercial 80,172 80,172 — 83,509 634 150 Agricultural business 406,950 406,950 — 307,729 11,403 808 Home equity 48,418 48,418 — 43,342 3,333 3,331 Consumer 428 428 — 1,160 78 82 Loans with a specific valuation allowance 1-4 Family 547,568 547,568 176,079 568,790 32,908 25,352 Commercial real estate 1,081,970 1,081,970 487,205 1,118,044 67,505 47,864 Commercial 197,456 197,456 127,458 269,496 11,517 11,139 Home equity 9,922 9,922 9,922 9,982 810 722 Total: 1-4 family 658,734 658,734 176,079 780,136 45,156 37,394 Commercial real estate 1,598,530 1,598,530 487,205 1,781,684 101,660 82,450 Agricultural real estate 839,546 839,546 — 864,705 43,335 44,885 Commercial 277,628 277,628 127,458 353,005 12,151 11,289 Agricultural business 406,950 406,950 — 307,729 11,403 808 Home equity 58,340 58,340 9,922 53,324 4,143 4,053 Consumer 428 428 — 1,160 78 82 Total $ 3,840,156 $ 3,840,156 $ 800,664 $ 4,141,743 $ 217,926 $ 180,961 |
Schedule of nonaccrual loans | 2016 2015 1-4 family $ 590,514 $ 911,283 Commercial real estate 708,922 840,449 Agricultural real estate — — Commercial 16,561 9,314 Agricultural business — — Home equity 49,542 118,502 Consumer 164,472 141,605 Total $ 1,530,011 $ 2,021,153 |
Schedule of recorded balance, at original cost, of troubled debt restructurings | 2016 2015 1-4 family $ 836,867 $ 723,421 Commercial real estate 1,362,088 1,708,013 Agricultural real estate — — Commercial 245,710 57,783 Agricultural business — — Home equity 6,009 10,897 Consumer 81,880 109,340 Total $ 2,532,554 $ 2,609,454 |
Schedule of recorded balance, at original cost, of troubled debt restructurings, which were performing according to the terms of the restructuring | 2016 2015 1-4 family $ 666,744 $ 526,004 Commercial real estate 1,362,088 941,173 Agricultural real estate — — Commercial 245,710 57,783 Agricultural business — — Home equity 6,009 10,897 Consumer 57,540 86,255 Total $ 2,338,091 $ 1,622,112 |
Schedule of loans modified as troubled debt restructurings | Year Ended Year Ended Number of Recorded Number of Recorded 1-4 family 1 $ 40,395 1 $ 98,246 Commercial real estate 1 708,922 2 524,432 Agricultural real estate — — — — Commercial 1 217,725 — — Agricultural business — — — — Home equity — — 1 1,431 Consumer — — 5 76,691 Total 3 $ 967,042 9 $ 700,800 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | 2016 2015 Land $ 773,186 $ 773,186 Buildings and improvements 6,752,503 6,697,278 Equipment 3,492,693 3,384,516 11,018,382 10,854,980 Less accumulated depreciation (6,519,729 ) (6,126,823 ) Net premises and equipment $ 4,498,653 $ 4,728,157 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of mortgage servicing rights measured using amortization method with aggregate activity in related valuation allowances | 2016 2015 Mortgage servicing rights Balance, beginning of year $ 645,067 $ 689,603 Additions 87,579 73,650 Write-downs (72,580 ) — Amortization (107,239 ) (118,186 ) Balance at end of year 552,827 645,067 Valuation allowances Balance at beginning of year 47,354 56,969 Additions due to decreases in market value 38,967 — Reduction due to write-downs (72,580 ) — Reduction due to payoff of loans (13,741 ) (9,615 ) Balances at end of year 0 47,354 Mortgage servicing assets, net $ 552,827 $ 597,713 Fair value disclosures Fair value as of the beginning of the period $ 870,619 $ 979,699 Fair value as of the end of the period $ 898,625 $ 870,619 |
Interest-bearing Deposits (Tabl
Interest-bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of deposit interest expense by deposit type | December 31, 2016 2015 Savings, NOW and Money Market $ 366,123 $ 249,077 Certificates of deposit 659,109 852,185 Total deposit interest expense $ 1,025,232 $ 1,101,262 |
Schedule of scheduled maturities of time deposits | 2017 $ 47,319,320 2018 14,869,536 2019 7,572,666 2020 5,387,756 2021 5,037,258 $ 80,186,536 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of provision for income taxes | 2016 2015 Taxes currently payable Federal $ 916,248 $ 883,916 State 314,017 320,593 Deferred income taxes (142,607 ) (137,484 ) Income tax expense $ 1,087,658 $ 1,067,025 |
Schedule of reconciliation of income tax expense at the statutory rate to actual income tax expense | 2016 2015 Computed at the statutory rate (34%) $ 1,406,093 $ 1,391,670 Increase (decrease) resulting from Tax exempt interest (445,584 ) (454,067 ) State income taxes, net 184,535 188,690 Increase in cash surrender value (58,651 ) (59,646 ) Other 1,265 378 Actual tax expense $ 1,087,658 $ 1,067,025 Tax expense as a percentage of pre-tax income 26.30 % 26.07 % |
Schedule of tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets | 2016 2015 Deferred tax assets Allowance for loan losses $ 1,050,004 $ 1,015,661 Deferred compensation 1,830,687 1,817,124 Net unrealized loss on available for sale securities 605,970 — Other — 29,497 3,486,661 2,862,282 Deferred tax liabilities Net unrealized gain on available-for-sale securities — (407,145 ) Depreciation (390,787 ) (434,043 ) Federal Home Loan Bank stock dividends (48,291 ) (147,858 ) Prepaid expenses (65,504 ) (56,374 ) Mortgage servicing rights (216,238 ) (233,795 ) Other (27,052 ) — (747,872 ) (1,279,215 ) Net deferred tax asset $ 2,738,789 $ 1,583,067 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss)(Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income included in stockholders' equity | 2016 2015 Net unrealized gain (loss) on securities available-for-sale $ (1,782,264 ) $ 1,197,486 Tax effect 605,970 (407,145 ) Net-of-tax amount $ (1,176,294 ) $ 790,341 |
Changes in Accumulated Other 40
Changes in Accumulated Other Comprehensive Income (AOCI) by Component (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Changes In Accumulated Other Comprehensive Income Aoci By Component [Abstract] | |
Schedule of reclassified from AOCI and the affected line items in the statements of income | Amounts Reclassified Affected Line Item in the 2016 2015 Statements of Income Realized gains on available-for-sale securities $ 399,599 $ 320,585 Realized gain on sale of securities Total reclassified amount before tax (135,864 ) (108,999 ) Tax expense $ 263,735 $ 211,586 Net reclassified amount |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Schedule of bank's actual capital amounts and ratios | Actual Minimum Capital Minimum to Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Total risk-based capital $ 42,543 19.52 % $ 17,434 8.0 % $ 21,793 10.0 % Tier I capital 39,816 18.27 13,076 6.0 17,434 8.0 Common equity Tier I 39,816 18.27 9,807 4.5 14,165 6.5 Tier I capital 39,816 12.58 12,662 4.0 15,828 5.0 Tangible capital 39,816 12.58 4,748 1.5 — N/A As of December 31, 2015 Total risk-based capital $ 41,631 19.15 % $ 17,387 8.0 % $ 21,734 10.0 % Tier I capital 38,912 17.90 13,040 6.0 17,387 8.0 Common equity Tier I 38,912 17.90 9,780 4.5 14,127 6.5 Tier I capital 38,912 12.82 12,139 4.0 15,174 5.0 Tangible capital 38,912 12.82 4,552 1.5 — N/A |
Schedule of reconciliation of bank equity amount for regulatory capital purposes | 2016 2015 Bank equity $ 41,367 $ 42,429 Less net unrealized gain (loss) (1,176 ) 790 Less disallowed goodwill 2,727 2,727 Tier 1 and common equity Tier 1 capital 39,816 38,912 Plus allowance for loan losses 2,727 2,719 Total risked-based capital $ 42,543 $ 41,631 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of annual activity of loans outstanding to related parties | 2016 2015 Balance beginning of year $ 3,193,470 $ 3,523,047 Additions 1,178,281 1,138,338 Repayments (1,259,775 ) (1,467,915 ) Balance, end of year $ 3,111,976 $ 3,193,470 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of summary of ESOP expense | 2016 2015 Allocated shares $ 59,838 $ 57,420 Shares committed for allocation 3,934 3,820 Unearned shares 17,237 21,171 Total ESOP shares 81,009 82,411 Fair value of unearned shares at December 31 $ 517,110 $ 556,374 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of option activity | 2016 Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 61,120 $ 15.65 Granted — — Exercised (13,532 ) 15.65 Forfeited or expired (100 ) 15.65 Outstanding, end of year 47,488 $ 15.65 5.25 $ 681,453 Exercisable, end of year 25,653 $ 15.65 5.25 $ 368,121 2015 Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 85,835 $ 15.65 Granted — — Exercised (24,715 ) 15.65 Forfeited or expired — — Outstanding, end of year 61,120 $ 15.65 6.25 $ 649,706 Exercisable, end of year 19,035 $ 15.65 6.25 $ 202,342 |
Schedule of summary of the status of nonvested shares | December 31, 2016 Shares Weighted- Nonvested, beginning of year 42,085 $ 4.34 Granted — — Vested (20,150 ) 4.34 Forfeited (100 ) 4.34 Nonvested, end of year 21,835 $ 4.34 December 31, 2015 Shares Weighted- Nonvested, beginning of year 62,235 $ 4.34 Granted — — Vested (20,150 ) 4.34 Forfeited — — Nonvested, end of year 42,085 $ 4.34 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings per share | Year Ended December 31, 2016 Income Weighted- Per Share Net income $ 3,047,909 Basic earnings per share Income available to common stockholders 1,776,342 $ 1.72 Effect of dilutive securities Stock options 17,539 Diluted earnings per share Income available to common stockholders $ 3,047,909 1,793,881 $ 1.70 Year Ended December 31, 2015 Income Weighted- Per Share Net income $ 3,026,123 Basic earnings per share Income available to common stockholders 1,770,546 $ 1.71 Effect of dilutive securities Stock options 13,469 Diluted earnings per share Income available to common stockholders $ 3,026,123 1,784,015 $ 1.70 |
Disclosures about Fair Value 46
Disclosures about Fair Value of Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements of assets recognized in balance sheets on recurring basis | December 31, 2016 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant U.S. Government agencies $ 13,333,540 $ — $ 13,333,540 $ — Mortgage-backed securities (Government-sponsored enterprises - residential) 44,413,177 — 44,413,177 — Municipal bonds 42,414,723 — 42,414,723 — December 31, 2015 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant U.S. Government agencies $ 15,938,697 $ — $ 15,938,697 $ — Mortgage-backed securities (Government-sponsored enterprises - residential) 23,178,395 — 23,178,395 — Municipal bonds 48,356,240 — 48,356,240 — |
Schedule of fair value measurement of assets measured at fair value on nonrecurring basis | December 31, 2016 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant Impaired loans (collateral dependent) $ 1,157,329 $ — $ — $ 1,157,329 Mortgage servicing rights 552,827 — — 552,827 December 31, 2015 Fair Value Measurements Using Fair Value Quoted Prices Significant Significant Impaired loans (collateral dependent) $ 899,981 $ — $ — $ 899,981 |
Schedule of quantitative information about unobservable inputs used in nonrecurring level 3 fair value measurements | Fair Value at Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 1,157,329 Market comparable properties Marketability discount 20% – 30% (25%) Mortgage servicing rights $ 552,827 Discounted cash flow Discount rate 9% - 13.5% (10.25%) PSA standard prepayment model rate 104 – 300 (153) Fair Value at Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 899,981 Market comparable properties Marketability discount 20% – 30% (25%) |
Schedule of estimated fair values of other financial instruments | December 31, 2016 Fair Value Measurements Using Carrying Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Financial assets Cash and cash equivalents $ 12,909,924 $ 12,909,924 $ — $ — Interest-earning time deposits 750,000 750,000 — — Other investments 55,481 — 55,481 — Loans held for sale 503,003 — 503,003 — Loans, net of allowance for loan losses 184,448,003 — — 183,941,877 Federal Home Loan Bank stock 363,800 — 363,800 — Interest receivable 1,588,545 — 1,588,545 — Financial liabilities Deposits 258,677,960 — 178,491,424 81,241,011 Short-term borrowings 7,135,182 — 7,135,182 Advances from borrowers for taxes and insurance 1,102,204 — 1,102,204 — Interest payable 106,755 — 106,755 — Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — December 31, 2015 Fair Value Measurements Using Carrying Quoted Prices Significant Significant Financial assets Cash and cash equivalents $ 4,103,432 $ 4,103,432 $ — $ — Interest-earning time deposits 2,724,000 2,724,000 — — Other investments 62,223 — 62,223 — Loans held for sale 539,000 — 539,000 — Loans, net of allowance for loan losses 193,039,879 — — 193,006,301 Federal Home Loan Bank stock 1,113,800 — 1,113,800 — Interest receivable 1,715,676 — 1,715,676 — Financial liabilities Deposits 239,281,930 — 160,227,406 80,300,060 Short-term borrowings 15,131,710 — 6,631,710 8,500,000 Advances from borrowers for taxes and insurance 990,917 — 990,917 — Interest payable 118,335 — 118,335 — Unrecognized financial instruments (net of contract amount) Commitments to originate loans — — — — Letters of credit — — — — Lines of credit — — — — |
Quarterly Results of Operatio47
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | Year Ended December 31, 2016 Three Months Ended December 31 September 30 June 30 March 31 Interest income $ 2,817,513 $ 2,858,551 $ 2,849,785 $ 2,909,135 Interest expense 274,630 277,603 247,184 248,909 Net interest income 2,542,883 2,580,948 2,602,601 2,660,226 Provision for loan losses 30,000 30,000 30,000 30,000 Net interest income after provision for loan losses 2,512,883 2,550,948 2,572,601 2,630,226 Noninterest income 1,099,642 1,088,058 1,034,670 1,039,075 Noninterest expense 2,681,987 2,613,954 2,564,033 2,532,562 Income before income taxes 930,538 1,025,052 1,043,238 1,136,739 Income tax expense 233,278 267,287 277,732 309,361 Net income $ 697,260 $ 757,765 $ 765,506 $ 827,378 Basic earnings per share $ 0.39 $ 0.43 $ 0.43 $ 0.47 Diluted earnings per share $ 0.39 $ 0.42 $ 0.43 $ 0.46 Year Ended December 31, 2015 Three Months Ended December 31 September 30 June 30 March 31 Interest income $ 2,923,681 $ 2,830,112 $ 2,859,579 $ 2,901,492 Interest expense 252,749 267,433 293,141 314,050 Net interest income 2,670,932 2,562,679 2,566,438 2,587,442 Provision for loan losses 30,000 45,000 35,000 30,000 Net interest income after provision for loan losses 2,640,932 2,517,679 2,531,438 2,557,442 Noninterest income 1,096,519 991,626 1,063,287 1,035,458 Noninterest expense 2,814,601 2,579,660 2,431,183 2,515,789 Income before income taxes 922,850 929,645 1,163,542 1,077,111 Income tax expense 218,785 230,247 327,139 290,854 Net income $ 704,065 $ 699,398 $ 836,403 $ 786,257 Basic earnings per share $ 0.40 $ 0.40 $ 0.47 $ 0.44 Diluted earnings per share $ 0.39 $ 0.39 $ 0.47 $ 0.44 |
Condensed Financial Informati48
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | Condensed Balance Sheets December 31, 2016 2015 Assets Cash and due from banks $ 4,806,252 $ 4,800,526 Investment in common stock of subsidiary 41,366,024 42,428,601 Loan receivable from subsidiary 177,347 216,506 Other assets 118,460 106,960 Total assets $ 46,468,083 $ 47,552,593 Liabilities Other liabilities $ 222,518 $ 1,986,093 Stockholders' Equity 46,245,565 45,566,500 Total liabilities and stockholders' equity $ 46,468,083 $ 47,552,593 |
Schedule of Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income Year Ending December 31, 2016 2015 Income Dividends from subsidiary $ 2,500,000 $ 2,000,000 Other income 10,544 11,712 Total income 2,510,544 2,011,712 Expenses Other expenses 360,950 361,694 Income Before Income Tax and Equity in Undistributed Income of Subsidiary 2,149,594 1,650,018 Income Tax Benefit (136,020 ) (137,420 ) Income Before Equity in Undistributed Income of Subsidiary 2,285,614 1,787,438 Equity in Undistributed Income of Subsidiary 762,295 1,238,685 Net Income $ 3,047,909 $ 3,026,123 Comprehensive Income $ 1,081,274 $ 3,104,981 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ending December 31, 2016 2015 Operating Activities Net income $ 3,047,909 $ 3,026,123 Items not providing cash, net (762,295 ) (1,238,685 ) Stock-based compensation expense 90,163 90,163 Change in other assets and liabilities, net (53,487 ) (17,617 ) Net cash provided by operating activities 2,322,290 1,859,984 Investing Activity Loan payment from subsidiary 39,159 37,879 Net cash provided by investing activities 39,159 37,879 Financing Activities Dividends paid (2,440,380 ) (565,995 ) Stock repurchase (127,118 ) (765,311 ) Exercise of stock options 211,775 386,790 Net cash used in financing activities (2,355,723 ) (944,516 ) Net Change in Cash and Cash Equivalents 5,726 953,347 Cash and Cash Equivalents at Beginning of Year 4,800,526 3,847,179 Cash and Cash Equivalents at End of Year $ 4,806,252 $ 4,800,526 |
Nature of Operations and Summ49
Nature of Operations and Summary of Significant Accounting Policies - Estimated useful lives for each major depreciable classification of premises and equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Buildings and improvements | |
Nature Of Operations And Significant Accounting Policies [Line Items] | |
Premises and equipment estimated useful life | 35-40 years |
Equipment | |
Nature Of Operations And Significant Accounting Policies [Line Items] | |
Premises and equipment estimated useful life | 3-5 years |
Nature of Operations and Summ50
Nature of Operations and Summary of Significant Accounting Policies (Detail Textuals) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)BrancheTrust | Dec. 31, 2015USD ($)Trust | |
Nature Of Operations And Significant Accounting Policies [Line Items] | ||
Percentage of ownership interests in Jacksonville Savings Bank | 100.00% | |
Number of branches | Branche | 5 | |
Loan past due period | 90 days | |
Number of trust accounts managed or administered | Trust | 131 | 124 |
Assets held in fiduciary or agency capacities | $ | $ 99.3 | $ 90.7 |
Mortgages | Minimum | ||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||
Fixed-rate balloon loans term | 3 years | |
Mortgages | Maximum | ||
Nature Of Operations And Significant Accounting Policies [Line Items] | ||
Fixed-rate balloon loans term | 5 years |
Restriction on Cash and Due f51
Restriction on Cash and Due from Banks (Detail Textuals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Investments [Abstract] | ||
Reserve funds in cash and/or on deposit with Federal Reserve Bank | $ 2,449,000 | $ 1,524,000 |
Securities - Amortized cost and
Securities - Amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 101,943,704 | $ 86,275,846 |
Available-for-sale securities, gross unrealized gains | 638,929 | 1,563,287 |
Available-for-sale securities, gross unrealized losses | (2,421,193) | (365,801) |
Available-for-sale securities, fair value | 100,161,440 | 87,473,332 |
U.S. Government and federal agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 13,985,863 | 15,979,475 |
Available-for-sale securities, gross unrealized gains | 9,641 | 44,972 |
Available-for-sale securities, gross unrealized losses | (661,964) | (85,750) |
Available-for-sale securities, fair value | 13,333,540 | 15,938,697 |
Mortgage-backed securities (Government-sponsored enterprises - residential) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 45,457,262 | 23,067,200 |
Available-for-sale securities, gross unrealized gains | 70,512 | 211,987 |
Available-for-sale securities, gross unrealized losses | (1,114,597) | (100,792) |
Available-for-sale securities, fair value | 44,413,177 | 23,178,395 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 42,500,579 | 47,229,171 |
Available-for-sale securities, gross unrealized gains | 558,776 | 1,306,328 |
Available-for-sale securities, gross unrealized losses | (644,632) | (179,259) |
Available-for-sale securities, fair value | $ 42,414,723 | $ 48,356,240 |
Securities - Amortized cost a53
Securities - Amortized cost and fair value of available-for-sale securities by contractual maturity (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale, amortized cost | ||
Within one year | $ 1,036,978 | |
One to five years | 9,201,183 | |
Five to ten years | 27,297,515 | |
After ten years | 18,950,766 | |
Available-for-sale securities, amortized cost, subtotal | 56,486,442 | |
Mortgage-backed securities, amortized cost | 45,457,262 | |
Available-for-sale securities, amortized cost | 101,943,704 | $ 86,275,846 |
Available-for-sale securities, fair value | ||
Within one year | 1,043,616 | |
One to five years | 9,315,610 | |
Five to ten years | 27,081,945 | |
After ten years | 18,307,092 | |
Available-for-sale Securities, fair value | 55,748,263 | 64,294,937 |
Mortgage-backed securities, fair value | 44,413,177 | 23,178,395 |
Available-for-sale securities, fair value | $ 100,161,440 | $ 87,473,332 |
Securities - Gross unrealized l
Securities - Gross unrealized losses and fair value in a continuous unrealized loss position (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 71,583,259 | $ 19,875,059 |
Less than 12 Months, Unrealized Losses | (2,421,193) | (143,474) |
12 Months or More, Fair Value | 10,801,709 | |
12 Months or More, Unrealized Losses | (222,327) | |
Fair Value | 71,583,259 | 30,676,768 |
Unrealized Losses | (2,421,193) | (365,801) |
U.S. Government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 12,333,924 | 8,591,014 |
Less than 12 Months, Unrealized Losses | (661,964) | (49,205) |
12 Months or More, Fair Value | 1,809,745 | |
12 Months or More, Unrealized Losses | (36,545) | |
Fair Value | 12,333,924 | 10,400,759 |
Unrealized Losses | (661,964) | (85,750) |
Mortgage-backed securities (Government-sponsored enterprises - residential) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 37,144,915 | 5,843,754 |
Less than 12 Months, Unrealized Losses | (1,114,597) | (45,886) |
12 Months or More, Fair Value | 2,257,674 | |
12 Months or More, Unrealized Losses | (54,906) | |
Fair Value | 37,144,915 | 8,101,428 |
Unrealized Losses | (1,114,597) | (100,792) |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 22,104,420 | 5,440,291 |
Less than 12 Months, Unrealized Losses | (644,632) | (48,383) |
12 Months or More, Fair Value | 6,734,290 | |
12 Months or More, Unrealized Losses | (130,876) | |
Fair Value | 22,104,420 | 12,174,581 |
Unrealized Losses | $ (644,632) | $ (179,259) |
Securities (Detail Textuals)
Securities (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged as collateral | $ 42,463,127 | $ 25,681,115 |
Securities sold under agreements to repurchase | 9,709,793 | 7,591,475 |
Gross realized gains on sales of available-for-sale securities | 402,981 | 352,983 |
Gross realized losses on sales of available-for-sale securities | (3,382) | (32,398) |
Taxes on reclassification adjustment for realized gains included in net income | 135,864 | 108,999 |
Debt securities, fair value | $ 71,583,259 | $ 30,676,768 |
Percentage of available-for-sale investment portfolio | 71.00% | 35.00% |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Classes of loans (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | $ 187,477,065 | $ 195,988,766 |
Less Net deferred loan fees | 21,667 | 29,293 |
Less Allowance for loan losses | 3,007,395 | 2,919,594 |
Net loans | 184,448,003 | 193,039,879 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 136,666,343 | 140,691,759 |
Real estate loans | Residential 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 45,311,103 | 47,395,344 |
Real estate loans | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 41,477,480 | 40,381,680 |
Real estate loans | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 38,271,758 | 41,223,190 |
Real estate loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 11,606,002 | 11,691,545 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 21,617,744 | 25,453,058 |
Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 14,649,622 | 16,102,856 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | $ 14,543,356 | $ 13,741,093 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses - Balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses: | ||
Balance, beginning of year | $ 2,919,594 | $ 2,956,264 |
Provision charged to expense | 120,000 | 140,000 |
Losses charged off | (81,948) | (293,829) |
Recoveries | 49,749 | 117,159 |
Balance, end of year | 3,007,395 | 2,919,594 |
Ending balance: individually evaluated for impairment | 1,084,812 | 800,664 |
Ending balance: collectively evaluated for impairment | 1,922,583 | 2,118,930 |
Loans: | ||
Ending balance | 187,477,065 | 195,988,766 |
Ending balance: individually evaluated for impairment | 2,580,552 | 3,840,156 |
Ending balance: collectively evaluated for impairment | 184,896,513 | 192,148,610 |
Real estate loans | ||
Loans: | ||
Ending balance | 136,666,343 | 140,691,759 |
Real estate loans | 1-4 family | ||
Allowance for loan losses: | ||
Balance, beginning of year | 829,604 | 999,260 |
Provision charged to expense | 14,683 | (10,386) |
Losses charged off | (38,171) | (199,392) |
Recoveries | 25,884 | 40,122 |
Balance, end of year | 832,000 | 829,604 |
Ending balance: individually evaluated for impairment | 304,922 | 176,079 |
Ending balance: collectively evaluated for impairment | 527,078 | 653,525 |
Loans: | ||
Ending balance | 45,311,103 | 47,395,344 |
Ending balance: individually evaluated for impairment | 713,151 | 658,734 |
Ending balance: collectively evaluated for impairment | 44,597,952 | 46,736,610 |
Real estate loans | Commercial Real Estate | ||
Allowance for loan losses: | ||
Balance, beginning of year | 917,526 | 855,463 |
Provision charged to expense | 112,411 | 29,238 |
Losses charged off | (27,464) | |
Recoveries | 14,616 | 60,289 |
Balance, end of year | 1,044,553 | 917,526 |
Ending balance: individually evaluated for impairment | 723,481 | 487,205 |
Ending balance: collectively evaluated for impairment | 321,072 | 430,321 |
Loans: | ||
Ending balance | 41,477,480 | 40,381,680 |
Ending balance: individually evaluated for impairment | 1,658,323 | 1,598,530 |
Ending balance: collectively evaluated for impairment | 39,819,157 | 38,783,150 |
Real estate loans | Agricultural Real Estate | ||
Allowance for loan losses: | ||
Balance, beginning of year | 201,918 | 195,546 |
Provision charged to expense | (10,559) | 6,372 |
Losses charged off | ||
Recoveries | ||
Balance, end of year | 191,359 | 201,918 |
Ending balance: individually evaluated for impairment | ||
Ending balance: collectively evaluated for impairment | 191,359 | 201,918 |
Loans: | ||
Ending balance | 38,271,758 | 41,223,190 |
Ending balance: individually evaluated for impairment | 839,546 | |
Ending balance: collectively evaluated for impairment | 38,271,758 | 40,383,644 |
Commercial loans | ||
Allowance for loan losses: | ||
Balance, beginning of year | 386,620 | 421,809 |
Provision charged to expense | (85,258) | (35,327) |
Losses charged off | ||
Recoveries | 116 | 138 |
Balance, end of year | 301,478 | 386,620 |
Ending balance: individually evaluated for impairment | 56,409 | 127,458 |
Ending balance: collectively evaluated for impairment | 245,069 | 259,162 |
Loans: | ||
Ending balance | 21,617,744 | 25,453,058 |
Ending balance: individually evaluated for impairment | 155,067 | 277,628 |
Ending balance: collectively evaluated for impairment | 21,462,677 | 25,175,430 |
Agricultural loans | ||
Allowance for loan losses: | ||
Balance, beginning of year | 163,346 | 57,934 |
Provision charged to expense | 4,123 | 105,412 |
Losses charged off | ||
Recoveries | ||
Balance, end of year | 167,469 | 163,346 |
Ending balance: individually evaluated for impairment | ||
Ending balance: collectively evaluated for impairment | 167,469 | 163,346 |
Loans: | ||
Ending balance | 14,649,622 | 16,102,856 |
Ending balance: individually evaluated for impairment | 406,950 | |
Ending balance: collectively evaluated for impairment | 14,649,622 | 15,695,906 |
Home Equity | ||
Allowance for loan losses: | ||
Balance, beginning of year | 149,253 | 205,577 |
Provision charged to expense | 22,273 | (53,188) |
Losses charged off | (13,724) | |
Recoveries | 2,100 | 10,588 |
Balance, end of year | 173,626 | 149,253 |
Ending balance: individually evaluated for impairment | 9,922 | |
Ending balance: collectively evaluated for impairment | 173,626 | 139,331 |
Loans: | ||
Ending balance | 11,606,002 | 11,691,545 |
Ending balance: individually evaluated for impairment | 54,011 | 58,340 |
Ending balance: collectively evaluated for impairment | 11,551,991 | 11,633,205 |
Consumer loans | ||
Allowance for loan losses: | ||
Balance, beginning of year | 169,381 | 167,319 |
Provision charged to expense | 50,016 | 49,289 |
Losses charged off | (43,777) | (53,249) |
Recoveries | 7,033 | 6,022 |
Balance, end of year | 182,653 | 169,381 |
Ending balance: individually evaluated for impairment | ||
Ending balance: collectively evaluated for impairment | 182,653 | 169,381 |
Loans: | ||
Ending balance | 14,543,356 | 13,741,093 |
Ending balance: individually evaluated for impairment | 428 | |
Ending balance: collectively evaluated for impairment | 14,543,356 | 13,740,665 |
Unallocated | ||
Allowance for loan losses: | ||
Balance, beginning of year | 101,946 | 53,356 |
Provision charged to expense | 12,311 | 48,590 |
Losses charged off | ||
Recoveries | ||
Balance, end of year | 114,257 | 101,946 |
Ending balance: individually evaluated for impairment | ||
Ending balance: collectively evaluated for impairment | 114,257 | 101,946 |
Loans: | ||
Ending balance | ||
Ending balance: individually evaluated for impairment | ||
Ending balance: collectively evaluated for impairment |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses - Credit risk profile of the company's loan portfolio based on rating category and payment activity (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | $ 187,477,065 | $ 195,988,766 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 136,666,343 | 140,691,759 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 45,311,103 | 47,395,344 |
Real estate loans | 1-4 family | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 42,327,337 | 44,120,334 |
Real estate loans | 1-4 family | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 1,016,025 | 1,323,266 |
Real estate loans | 1-4 family | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 1,967,741 | 1,951,744 |
Real estate loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 41,477,480 | 40,381,680 |
Real estate loans | Commercial Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 39,078,740 | 37,628,385 |
Real estate loans | Commercial Real Estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 429,877 | 454,194 |
Real estate loans | Commercial Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 1,968,863 | 2,299,101 |
Real estate loans | Agricultural Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 38,271,758 | 41,223,190 |
Real estate loans | Agricultural Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 38,271,758 | 40,383,644 |
Real estate loans | Agricultural Real Estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 839,546 | |
Real estate loans | Agricultural Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 21,617,744 | 25,453,058 |
Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 21,141,466 | 25,117,982 |
Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 100,234 | 51,196 |
Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 376,044 | 283,880 |
Agricultural business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 14,649,622 | 16,102,856 |
Agricultural business | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 13,845,865 | 15,110,606 |
Agricultural business | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 803,757 | 992,250 |
Agricultural business | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | ||
Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 11,606,002 | 11,691,545 |
Home Equity | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 10,790,377 | 11,324,889 |
Home Equity | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 70,983 | 68,044 |
Home Equity | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 744,642 | 298,612 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 14,543,356 | 13,741,093 |
Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 14,361,125 | 13,501,477 |
Consumer | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | 10,575 | 52,656 |
Consumer | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable gross | $ 171,656 | $ 186,960 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses - Loan portfolio aging analysis (Details 3) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 1,299,070 | $ 2,166,123 |
Current | 186,177,995 | 193,822,643 |
Total Loans Receivable | 187,477,065 | 195,988,766 |
Total Loans > 90 Days & Accruing | ||
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 457,342 | 550,817 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 211,844 | 149,865 |
Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 629,884 | 1,465,441 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 136,666,343 | 140,691,759 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 918,548 | 1,045,812 |
Current | 44,392,555 | 46,349,532 |
Total Loans Receivable | 45,311,103 | 47,395,344 |
Total Loans > 90 Days & Accruing | ||
Real estate loans | 1-4 family | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 237,783 | 345,169 |
Real estate loans | 1-4 family | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 136,340 | 77,588 |
Real estate loans | 1-4 family | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 544,425 | 623,055 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 16,273 | 766,840 |
Current | 41,461,207 | 39,614,840 |
Total Loans Receivable | 41,477,480 | 40,381,680 |
Total Loans > 90 Days & Accruing | ||
Real estate loans | Commercial real estate | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Real estate loans | Commercial real estate | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 16,273 | |
Real estate loans | Commercial real estate | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 766,840 | |
Real estate loans | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Current | 38,271,758 | 41,223,190 |
Total Loans Receivable | 38,271,758 | 41,223,190 |
Total Loans > 90 Days & Accruing | ||
Real estate loans | Agricultural real estate | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Real estate loans | Agricultural real estate | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Real estate loans | Agricultural real estate | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 54,783 | |
Current | 21,562,961 | 25,453,058 |
Total Loans Receivable | 21,617,744 | 25,453,058 |
Total Loans > 90 Days & Accruing | ||
Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 41,474 | |
Commercial | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 13,309 | |
Agricultural business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Current | 14,649,622 | 16,102,856 |
Total Loans Receivable | 14,649,622 | 16,102,856 |
Total Loans > 90 Days & Accruing | ||
Agricultural business | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Agricultural business | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Agricultural business | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 151,482 | 157,942 |
Current | 11,454,520 | 11,533,603 |
Total Loans Receivable | 11,606,002 | 11,691,545 |
Total Loans > 90 Days & Accruing | ||
Home equity | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 151,482 | 22,122 |
Home equity | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 66,305 | |
Home equity | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 69,515 | |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 157,984 | 195,529 |
Current | 14,385,372 | 13,545,564 |
Total Loans Receivable | 14,543,356 | 13,741,093 |
Total Loans > 90 Days & Accruing | ||
Consumer loans | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 68,077 | 183,526 |
Consumer loans | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 17,757 | 5,972 |
Consumer loans | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 72,150 | $ 6,031 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses - Impaired loans (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Balance, Total | $ 2,580,552 | $ 3,840,156 |
Unpaid Principal Balance, Total | 2,580,552 | 3,840,156 |
Specific Allowance, Total | 1,084,812 | 800,664 |
Average Investment in Impaired Loans, Total | 2,913,373 | 4,141,743 |
Interest Income Recognized, Total | 141,975 | 217,926 |
Interest Income Recognized Cash Basis, Total | 132,139 | 180,961 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 39,598 | 111,166 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 39,598 | 111,166 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 41,880 | 211,346 |
Loans without a specific valuation allowance, Interest Income Recognized | 2,653 | 12,248 |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 2,888 | 12,042 |
Loans with a specific valuation allowance, Recorded Balance | 673,553 | 547,568 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 673,553 | 547,568 |
Loans with a specific valuation allowance, Specific Allowance | 304,922 | 176,079 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 719,834 | 568,790 |
Loans with a specific valuation allowance, Interest Income Recognized | 41,323 | 32,908 |
Loans with a specific valuation allowance, Interest Income Recognized Cash Basis | 34,208 | 25,352 |
Recorded Balance, Total | 713,151 | 658,734 |
Unpaid Principal Balance, Total | 713,151 | 658,734 |
Specific Allowance, Total | 304,922 | 176,079 |
Average Investment in Impaired Loans, Total | 761,714 | 780,136 |
Interest Income Recognized, Total | 43,976 | 45,156 |
Interest Income Recognized Cash Basis, Total | 37,096 | 37,394 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 120,172 | 516,560 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 120,172 | 516,560 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 272,557 | 663,640 |
Loans without a specific valuation allowance, Interest Income Recognized | 13,499 | 34,155 |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 14,061 | 34,586 |
Loans with a specific valuation allowance, Recorded Balance | 1,538,151 | 1,081,970 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 1,538,151 | 1,081,970 |
Loans with a specific valuation allowance, Specific Allowance | 723,481 | 487,205 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 1,572,203 | 1,118,044 |
Loans with a specific valuation allowance, Interest Income Recognized | 68,918 | 67,505 |
Loans with a specific valuation allowance, Interest Income Recognized Cash Basis | 64,878 | 47,864 |
Recorded Balance, Total | 1,658,323 | 1,598,530 |
Unpaid Principal Balance, Total | 1,658,323 | 1,598,530 |
Specific Allowance, Total | 723,481 | 487,205 |
Average Investment in Impaired Loans, Total | 1,844,760 | 1,781,684 |
Interest Income Recognized, Total | 82,417 | 101,660 |
Interest Income Recognized Cash Basis, Total | 78,939 | 82,450 |
Real estate loans | Agricultural Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 839,546 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 839,546 | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 864,705 | |
Loans without a specific valuation allowance, Interest Income Recognized | 43,335 | |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 44,885 | |
Recorded Balance, Total | 839,546 | |
Unpaid Principal Balance, Total | 839,546 | |
Specific Allowance, Total | ||
Average Investment in Impaired Loans, Total | 864,705 | |
Interest Income Recognized, Total | 43,335 | |
Interest Income Recognized Cash Basis, Total | 44,885 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 61,483 | 80,172 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 61,483 | 80,172 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 87,359 | 83,509 |
Loans without a specific valuation allowance, Interest Income Recognized | 4,332 | 634 |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 4,419 | 150 |
Loans with a specific valuation allowance, Recorded Balance | 93,584 | 197,456 |
Loans with a specific valuation allowance, Unpaid Principal Balance | 93,584 | 197,456 |
Loans with a specific valuation allowance, Specific Allowance | 56,409 | 127,458 |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 165,473 | 269,496 |
Loans with a specific valuation allowance, Interest Income Recognized | 7,580 | 11,517 |
Loans with a specific valuation allowance, Interest Income Recognized Cash Basis | 7,814 | 11,139 |
Recorded Balance, Total | 155,067 | 277,628 |
Unpaid Principal Balance, Total | 155,067 | 277,628 |
Specific Allowance, Total | 56,409 | 127,458 |
Average Investment in Impaired Loans, Total | 252,832 | 353,005 |
Interest Income Recognized, Total | 11,912 | 12,151 |
Interest Income Recognized Cash Basis, Total | 12,233 | 11,289 |
Agricultural business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 406,950 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 406,950 | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 307,729 | |
Loans without a specific valuation allowance, Interest Income Recognized | 11,403 | |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 808 | |
Recorded Balance, Total | 406,950 | |
Unpaid Principal Balance, Total | 406,950 | |
Specific Allowance, Total | ||
Average Investment in Impaired Loans, Total | 307,729 | |
Interest Income Recognized, Total | 11,403 | |
Interest Income Recognized Cash Basis, Total | 808 | |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 54,011 | 48,418 |
Loans without a specific valuation allowance, Unpaid Principal Balance | 54,011 | 48,418 |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 54,067 | 43,342 |
Loans without a specific valuation allowance, Interest Income Recognized | 3,670 | 3,333 |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 3,871 | 3,331 |
Loans with a specific valuation allowance, Recorded Balance | 9,922 | |
Loans with a specific valuation allowance, Unpaid Principal Balance | 9,922 | |
Loans with a specific valuation allowance, Specific Allowance | 9,922 | |
Loans with a specific valuation allowance, Average Investment in Impaired Loans | 9,982 | |
Loans with a specific valuation allowance, Interest Income Recognized | 810 | |
Loans with a specific valuation allowance, Interest Income Recognized Cash Basis | 722 | |
Recorded Balance, Total | 54,011 | 58,340 |
Unpaid Principal Balance, Total | 54,011 | 58,340 |
Specific Allowance, Total | 9,922 | |
Average Investment in Impaired Loans, Total | 54,067 | 53,324 |
Interest Income Recognized, Total | 3,670 | 4,143 |
Interest Income Recognized Cash Basis, Total | $ 3,871 | 4,053 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans without a specific valuation allowance, Recorded Balance | 428 | |
Loans without a specific valuation allowance, Unpaid Principal Balance | 428 | |
Loans without a specific valuation allowance, Average Investment in Impaired Loans | 1,160 | |
Loans without a specific valuation allowance, Interest Income Recognized | 78 | |
Loans without a specific valuation allowance, Interest Income Recognized Cash Basis | 82 | |
Recorded Balance, Total | 428 | |
Unpaid Principal Balance, Total | 428 | |
Specific Allowance, Total | ||
Average Investment in Impaired Loans, Total | 1,160 | |
Interest Income Recognized, Total | 78 | |
Interest Income Recognized Cash Basis, Total | $ 82 |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses - Nonaccrual loans (Details 5) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | $ 1,530,011 | $ 2,021,153 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | 590,514 | 911,283 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | 708,922 | 840,449 |
Real estate loans | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | 16,561 | 9,314 |
Agricultural business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | ||
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | 49,542 | 118,502 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans excludes performing troubled debt restructurings | $ 164,472 | $ 141,605 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses - Recorded balance, at original cost, of troubled debt restructurings (Details 6) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | $ 2,532,554 | $ 2,609,454 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | 836,867 | 723,421 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | 1,362,088 | 1,708,013 |
Real estate loans | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | 245,710 | 57,783 |
Agricultural business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | ||
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | 6,009 | 10,897 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost | $ 81,880 | $ 109,340 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses - Recorded balance, at original cost, of troubled debt restructurings, which were performing according to the terms of the restructuring (Details 7) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | $ 2,338,091 | $ 1,622,112 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | 666,744 | 526,004 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | 1,362,088 | 941,173 |
Real estate loans | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | 245,710 | 57,783 |
Agricultural business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | ||
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | 6,009 | 10,897 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, original cost, performing | $ 57,540 | $ 86,255 |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses - Loans modified as troubled debt restructurings (Details 8) | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | 3 | 9 |
Troubled debt restructurings, recorded investment | $ | $ 967,042 | $ 700,800 |
Real estate loans | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | 1 | 1 |
Troubled debt restructurings, recorded investment | $ | $ 40,395 | $ 98,246 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | 1 | 2 |
Troubled debt restructurings, recorded investment | $ | $ 708,922 | $ 524,432 |
Real estate loans | Agricultural real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | ||
Troubled debt restructurings, recorded investment | $ | ||
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | 1 | |
Troubled debt restructurings, recorded investment | $ | $ 217,725 | |
Agricultural loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | ||
Troubled debt restructurings, recorded investment | $ | ||
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | 1 | |
Troubled debt restructurings, recorded investment | $ | $ 1,431 | |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of modifications | Loan | 5 | |
Troubled debt restructurings, recorded investment | $ | $ 76,691 |
Loans and Allowance for Loan 65
Loans and Allowance for Loan Losses (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan participations outstanding balance | $ 11,960,699 | $ 11,696,320 |
Loan participations purchased during period | $ 2,157,442 | 2,609,280 |
Loan commitments funded Period | 45 days | |
Troubled debt restructurings, recorded investment | $ 967,042 | $ 700,800 |
Troubled debt restructurings, number of modifications | Loan | 3 | 9 |
Foreclosed residential real estate properties | $ 0 | $ 217,101 |
Mortgage loans in process of foreclosure, amount | 143,634 | $ 188,438 |
Amount reviewed for lending relationships to verify risk ratings | 750,000 | |
Amount reviewed for watch list credits to verify risk ratings | $ 250,000 | |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, number of real estate loans | Loan | 3 | 3 |
TDR's defaulted as they were more than 90 days past due | $ 170,123 | $ 197,417 |
Troubled debt restructurings, number of contracts, nonaccrual status | Loan | 3 | |
Troubled debt restructurings, recorded investment, nonaccrual status | $ 211,262 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, recorded investment | $ 217,725 | |
Troubled debt restructurings, number of modifications | Loan | 1 | |
Troubled debt restructurings, number of contracts, nonaccrual status | Loan | 1 | 2 |
Troubled debt restructurings, recorded investment, nonaccrual status | $ 3,252 | $ 9,314 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, recorded investment | $ 76,691 | |
Troubled debt restructurings, number of modifications | Loan | 5 | |
Troubled debt restructurings, number of contracts, nonaccrual status | Loan | 2 | 1 |
Troubled debt restructurings, recorded investment, nonaccrual status | $ 76,106 | $ 63,183 |
Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, recorded investment | $ 1,431 | |
Troubled debt restructurings, number of modifications | Loan | 1 | |
Troubled debt restructurings, number of contracts, nonaccrual status | Loan | 1 | |
Troubled debt restructurings, recorded investment, nonaccrual status | $ 1,431 | |
Purchase price | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan to value ratios | 80.00% | |
Nada Book Value | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan to value ratios | 100.00% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total applicant's monthly mortgage payment total monthly income | 30.00% | |
Percentage of applicant's total monthly obligations to total monthly income | 43.00% | |
Maximum | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans maturity term | 60 months | |
Maximum | Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans maturity term | 10 years | |
Loan to value ratios | 95.00% | |
One-to-four family residential | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, recorded investment | $ 40,395 | $ 98,246 |
Troubled debt restructurings, number of modifications | Loan | 1 | 1 |
One-to-four family residential | Maximum | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans maturity term | 30 years | |
One-to-four family residential | Minimum | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Origination of loan for resale to secondary market fixed rate period | 15 years | |
Loan to value ratios | 80.00% | |
One-to-four family residential | Adjustable rate loans | Maximum | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans maturity term | 30 years | |
Mortgage loans adjustment term | 5 years | |
One-to-four family residential | Adjustable rate loans | Minimum | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans adjustment term | 1 year | |
Commercial and Agricultural Real Estate Loans | Minimum | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan to value ratios | 75.00% | |
Minimum ratio of property's projected net cash flow to loan's debt service requirement | 120.00% | |
Loan value that requires written appraisals from licensed or certified appraisers | $ 250,000 | |
Commercial and Agricultural Real Estate Loans | Adjustable rate loans | Maximum | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans adjustment term | 5 years | |
Commercial | Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings, recorded investment | $ 708,922 | $ 524,432 |
Troubled debt restructurings, number of modifications | Loan | 1 | 2 |
Troubled debt restructurings, number of real estate loans | Loan | 1 | |
TDR's defaulted as they were more than 90 days past due | $ 766,840 | |
Troubled debt restructurings, number of contracts, nonaccrual status | Loan | 1 | 1 |
Troubled debt restructurings, recorded investment, nonaccrual status | $ 708,922 | $ 30,021 |
Officers' loan committee | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lending authority amount | 750,000 | |
Directors' loan committee | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lending authority amount | 1,000,000 | |
Board of Directors | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lending authority amount | $ 1,000,000 |
Premises and Equipment - Major
Premises and Equipment - Major classifications of premises and equipment, stated at cost (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 11,018,382 | $ 10,854,980 |
Less accumulated depreciation | (6,519,729) | (6,126,823) |
Net premises and equipment | 4,498,653 | 4,728,157 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 773,186 | 773,186 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 6,752,503 | 6,697,278 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 3,492,693 | $ 3,384,516 |
Loan Servicing - Mortgage servi
Loan Servicing - Mortgage servicing rights measured using Amortization Method with Aggregate activity in related valuation allowances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation allowances | ||
Balance at beginning of year | $ 47,354 | |
Balances at end of year | 0 | $ 47,354 |
Mortgage servicing assets, net | 552,827 | 597,713 |
Mortgage servicing rights | ||
Mortgage servicing rights | ||
Balance, beginning of year | 645,067 | 689,603 |
Additions | 87,579 | 73,650 |
Write-downs | (72,580) | |
Amortization | (107,239) | (118,186) |
Balance at end of year | 552,827 | 645,067 |
Valuation allowances | ||
Balance at beginning of year | 47,354 | 56,969 |
Additions due to decreases in market value | 38,967 | |
Reduction due to write-downs | (72,580) | |
Reduction due to payoff of loans | (13,741) | (9,615) |
Balances at end of year | 0 | 47,354 |
Mortgage servicing assets, net | 552,827 | 597,713 |
Fair value disclosures | ||
Fair value as of the beginning of the period | 870,619 | 979,699 |
Fair value as of the end of the period | $ 898,625 | $ 870,619 |
Loan Servicing (Detail Textuals
Loan Servicing (Detail Textuals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Transfers and Servicing [Abstract] | ||
Unpaid principal balance of mortgage loans serviced for others | $ 130,505,264 | $ 131,443,738 |
Interest-bearing Deposits - Dep
Interest-bearing Deposits - Deposit interest expense by deposit type (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift [Abstract] | ||
Savings, NOW and Money Market | $ 366,123 | $ 249,077 |
Certificates of deposit | 659,109 | 852,185 |
Total deposit interest expense | $ 1,025,232 | $ 1,101,262 |
Interest-bearing Deposits - Sch
Interest-bearing Deposits - Scheduled maturities of time deposits (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
2,017 | $ 47,319,320 | |
2,018 | 14,869,536 | |
2,019 | 7,572,666 | |
2,020 | 5,387,756 | |
2,021 | 5,037,258 | |
Time deposits | $ 80,186,536 | $ 79,054,524 |
Interest-bearing Deposits (Deta
Interest-bearing Deposits (Detail Textuals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Interest-bearing deposits in denominations of $100,000 or more | $ 110,971,051 | $ 90,889,042 |
Short-term Borrowings (Detail T
Short-term Borrowings (Detail Textuals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase | $ 9,709,793 | $ 7,591,475 |
Short-term Debt | ||
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase | 7,135,182 | 6,631,710 |
Maximum | Short-term Debt | ||
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase | 7,342,844 | 9,548,789 |
Monthly Average | Short-term Debt | ||
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase | 5,254,122 | 6,024,224 |
Overnight Advance | Mortgage backed securities | ||
Short-term Debt [Line Items] | ||
Repurchase agreements secured borrowing | 4,617,608 | |
Overnight Advance | U.S. government agency bonds | ||
Short-term Debt [Line Items] | ||
Repurchase agreements secured borrowing | $ 2,517,574 | |
Overnight Advance | Short-term Debt | ||
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Banks | $ 8,500,000 |
Income Taxes - Components of pr
Income Taxes - Components of provision for income taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Taxes currently payable | ||||||||||
Federal | $ 916,248 | $ 883,916 | ||||||||
State | 314,017 | 320,593 | ||||||||
Deferred income taxes | (142,607) | (137,484) | ||||||||
Income tax expense | $ 233,278 | $ 267,287 | $ 277,732 | $ 309,361 | $ 218,785 | $ 230,247 | $ 327,139 | $ 290,854 | $ 1,087,658 | $ 1,067,025 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense at the statutory rate to actual income tax expense (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||||||||
Computed at the statutory rate (34%) | $ 1,406,093 | $ 1,391,670 | ||||||||
Increase (decrease) resulting from | ||||||||||
Tax exempt interest | (445,584) | (454,067) | ||||||||
State income taxes, net | 184,535 | 188,690 | ||||||||
Increase in cash surrender value | (58,651) | (59,646) | ||||||||
Other | 1,265 | 378 | ||||||||
Actual tax expense | $ 233,278 | $ 267,287 | $ 277,732 | $ 309,361 | $ 218,785 | $ 230,247 | $ 327,139 | $ 290,854 | $ 1,087,658 | $ 1,067,025 |
Tax expense as a percentage of pre-tax income | 26.30% | 26.07% |
Income Taxes - Reconciliation75
Income Taxes - Reconciliation of income tax expense at the statutory rate to actual income tax expense (Parentheticals) (Details 1) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | 34.00% | 34.00% |
Income Taxes - Tax effects of t
Income Taxes - Tax effects of temporary differences related to deferred taxes shown on balance sheets (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Allowance for loan losses | $ 1,050,004 | $ 1,015,661 |
Deferred compensation | 1,830,687 | 1,817,124 |
Net unrealized loss on available for sale securities | 605,970 | |
Other | 29,497 | |
Deferred tax assets, gross, total | 3,486,661 | 2,862,282 |
Deferred tax liabilities | ||
Net unrealized gain on available-for-sale securities | (407,145) | |
Depreciation | (390,787) | (434,043) |
Federal Home Loan Bank stock dividends | (48,291) | (147,858) |
Prepaid expenses | (65,504) | (56,374) |
Mortgage servicing rights | (216,238) | (233,795) |
Other | (27,052) | |
Deferred tax liabilities, gross, total | (747,872) | (1,279,215) |
Net deferred tax asset | $ 2,738,789 | $ 1,583,067 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Line Items] | ||
Retained earnings for which no deferred federal income tax liability has been recognized | $ 2,600,000 | $ 2,600,000 |
Deferred income tax liabilities that would have been recorded if they were expected to reverse into taxable income in the foreseeable future | 1,000,000 | 1,000,000 |
Illinois | ||
Income Taxes [Line Items] | ||
Operating loss carry forwards | $ 0 | $ 0 |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income (Loss) - Components of accumulated other comprehensive income included in stockholders' equity (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net-of-tax amount | $ (1,176,294) | $ 790,341 |
Net unrealized gain (loss) on securities available-for-sale | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net unrealized gain (loss) on securities available-for-sale | (1,782,264) | 1,197,486 |
Tax effect | 605,970 | (407,145) |
Net-of-tax amount | $ (1,176,294) | $ 790,341 |
Changes in Accumulated Other 79
Changes in Accumulated Other Comprehensive Income (AOCI) by Component (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax expense | $ (135,864) | $ (108,999) |
Net reclassified amount | 263,735 | 211,586 |
Amounts Reclassified from AOCI | Net unrealized gain (loss) on securities available-for-sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gain on sale of securities, Total reclassified amount before tax | 399,599 | 320,585 |
Tax expense | (135,864) | (108,999) |
Net reclassified amount | $ 263,735 | $ 211,586 |
Regulatory Matters - Bank's act
Regulatory Matters - Bank's actual capital amounts and ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Matters [Abstract] | ||
Total risk-based capital (to risk-weighted assets), Actual Amount | $ 42,543 | $ 41,631 |
Total risk-based capital (to risk-weighted assets), Actual Ratio | 19.52% | 19.15% |
Total risk-based capital (to risk-weighted assets), Minimum Capital Requirement Amount | $ 17,434 | $ 17,387 |
Total risk-based capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Total risk-based capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 21,793 | $ 21,734 |
Total risk-based capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier I capital (to risk-weighted assets), Actual Amount | $ 39,816 | $ 38,912 |
Tier I capital (to risk-weighted assets), Actual Ratio | 18.27% | 17.90% |
Tier I capital (to risk-weighted assets), Minimum Capital Requirement Amount | $ 13,076 | $ 13,040 |
Tier I capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Tier I capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 17,434 | $ 17,387 |
Tier I capital (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Common equity Tier I (to risk-weighted assets), Actual Amount | $ 39,816 | $ 38,912 |
Common equity Tier I (to risk-weighted assets), Actual Ratio | 18.27% | 17.90% |
Common equity Tier I (to risk-weighted assets), Minimum Capital Requirement Amount | $ 9,807 | $ 9,780 |
Common equity Tier I (to risk-weighted assets), Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Common equity Tier I (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 14,165 | $ 14,127 |
Common equity Tier I (to risk-weighted assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier I capital (to average assets) Actual Amount | $ 39,816 | $ 38,912 |
Tier I capital (to average assets), Actual Ratio | 12.58% | 12.82% |
Tier I capital (to average assets), Minimum Capital Requirement Amount | $ 12,662 | $ 12,139 |
Tier I capital (to average assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Tier I capital (to average assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 15,828 | $ 15,174 |
Tier I capital (to average assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Tangible capital (to adjusted tangible assets), Actual Amount | $ 39,816 | $ 38,912 |
Tangible capital (to adjusted tangible assets), Actual Ratio | 12.58% | 12.82% |
Tangible capital (to adjusted tangible assets), Minimum Capital Requirement Amount | $ 4,748 | $ 4,552 |
Tangible capital (to adjusted tangible assets), Minimum Capital Requirement Ratio | 1.50% | 1.50% |
Regulatory Matters - Reconcilia
Regulatory Matters - Reconciliation of bank equity amount for regulatory capital purposes (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Matters [Abstract] | ||
Bank equity | $ 41,367 | $ 42,429 |
Less net unrealized gain (loss) | (1,176) | 790 |
Less disallowed goodwill | 2,727 | 2,727 |
Tier 1 and common equity Tier 1 capital | 39,816 | 38,912 |
Plus allowance for loan losses | 2,727 | 2,719 |
Total risked-based capital | $ 42,543 | $ 41,631 |
Regulatory Matters (Detail Text
Regulatory Matters (Detail Textuals) | Dec. 31, 2016USD ($) |
Regulatory Matters [Abstract] | |
Dividend payment without prior regulatory approval | $ 762,295 |
Related Party Transactions - An
Related Party Transactions - Annual activity of loans outstanding to related parties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance beginning of year | $ 3,193,470 | $ 3,523,047 |
Additions | 1,178,281 | 1,138,338 |
Repayments | (1,259,775) | (1,467,915) |
Balance, end of year | $ 3,111,976 | $ 3,193,470 |
Related Party Transactions (Det
Related Party Transactions (Detail Textuals) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | |||
Loans outstanding to related parties | $ 3,111,976 | $ 3,193,470 | $ 3,523,047 |
Deposits from related parties | $ 3,264,000 | $ 2,581,000 |
Employee Benefits - Summary of
Employee Benefits - Summary of ESOP shares (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Allocated shares | 59,838 | 57,420 |
Shares committed for allocation | 3,934 | 3,820 |
Unearned shares | 17,237 | 21,171 |
Total ESOP shares | 81,009 | 82,411 |
Fair value of unearned shares at December 31 | $ 517,110 | $ 556,374 |
Employee Benefits (Detail Textu
Employee Benefits (Detail Textuals) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefits Disclosure [Line Items] | |||
Deferred compensation amount | $ 4,680,268 | $ 4,492,594 | |
Purchase of shares for ESOP | 41,614 | ||
Price paid per share | $ 10 | ||
Common stock acquired by the ESOP | $ 416,140 | ||
ESOP compensation expense | 108,421 | 90,649 | |
Deferred Compensation Plan | |||
Employee Benefits Disclosure [Line Items] | |||
Deferred compensation amount | 2,591,531 | 2,521,997 | |
Compensation expense | 133,988 | 137,731 | |
Deferred compensation agreements | |||
Employee Benefits Disclosure [Line Items] | |||
Deferred compensation amount | 2,088,737 | 1,970,597 | |
Compensation expense | $ 182,796 | 233,731 | |
Deferred compensation discount rate | 4.75% | ||
401(k) Plan | |||
Employee Benefits Disclosure [Line Items] | |||
Contribution by employer | $ 223,615 | $ 216,508 | |
Annual interest rate | 1.85% | 1.85% |
Stock Option Plans - Summary of
Stock Option Plans - Summary of option activity (Details) - Stock Options - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
Outstanding, beginning of year | 61,120 | 85,835 |
Granted | ||
Exercised | (13,532) | (24,715) |
Forfeited or expired | (100) | |
Outstanding, end of year | 47,488 | 61,120 |
Exercisable, end of year | 25,653 | 19,035 |
Weighted Average Exercise price | ||
Outstanding, beginning of year | $ 15.65 | $ 15.65 |
Granted | ||
Exercised | 15.65 | 15.65 |
Forfeited or expired | 15.65 | |
Outstanding, end of year | 15.65 | 15.65 |
Exercisable, end of year | $ 15.65 | $ 15.65 |
Weighted Average Remaining Contractual Term | ||
Outstanding, end of year | 5 years 3 months | 6 years 3 months |
Exercisable, end of year | 5 years 3 months | 6 years 3 months |
Aggregate Intrinsic Value | ||
Outstanding, end of year | $ 681,453 | $ 649,706 |
Exercisable, end of year | $ 368,121 | $ 202,342 |
Stock Option Plans - Summary 88
Stock Option Plans - Summary of status of nonvested shares (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
Nonvested, beginning of year | 42,085 | 62,235 |
Granted | ||
Vested | (20,150) | (20,150) |
Forfeited | (100) | |
Nonvested, end of year | 21,835 | 42,085 |
Weighted-Average Grant-Date Fair Value | ||
Nonvested, beginning of year | $ 4.34 | $ 4.34 |
Granted | ||
Vested | 4.34 | 4.34 |
Forfeited | 4.34 | |
Nonvested, end of year | $ 4.34 | $ 4.34 |
Stock Option Plans (Detail Text
Stock Option Plans (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of option exercised | $ 161,572 | $ 200,192 |
Weighted-average period to recognize compensation cost | 1 year | |
Fair value of share vested | $ 90,163 | 90,163 |
Recognized tax benefit | $ 35,267 | $ 35,267 |
2012 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved and awarded | 104,035 | |
Award expiration period | 10 years | |
Exercise price per share | $ 15.65 | |
Total unrecognized compensation costs | $ 22,232 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of earnings per share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||||||||||
Income available to common stockholders, basic | $ 3,047,909 | $ 3,026,123 | ||||||||
Income available to common stockholders, diluted | $ 3,047,909 | $ 3,026,123 | ||||||||
Weighted average shares, basic | 1,776,342 | 1,770,546 | ||||||||
Effect of dilutive securities, stock options | 17,539 | 13,469 | ||||||||
Weighted average shares, diluted | 1,793,881 | 1,784,015 | ||||||||
Basic earnings per share | $ 0.39 | $ 0.43 | $ 0.43 | $ 0.47 | $ 0.40 | $ 0.40 | $ 0.47 | $ 0.44 | $ 1.72 | $ 1.71 |
Diluted earnings per share | $ 0.39 | $ 0.42 | $ 0.43 | $ 0.46 | $ 0.39 | $ 0.39 | $ 0.47 | $ 0.44 | $ 1.70 | $ 1.70 |
Disclosures about Fair Value 91
Disclosures about Fair Value of Assets - Fair value measurements of assets recognized in balance sheets on recurring basis (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | $ 100,161,440 | $ 87,473,332 |
Fair Value, Measurements, Recurring | U.S. Government agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | 13,333,540 | 15,938,697 |
Fair Value, Measurements, Recurring | Mortgage-backed securities (Government-sponsored enterprises - residential) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | 44,413,177 | 23,178,395 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | 42,414,723 | 48,356,240 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities (Government-sponsored enterprises - residential) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | 13,333,540 | 15,938,697 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities (Government-sponsored enterprises - residential) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | 44,413,177 | 23,178,395 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | 42,414,723 | 48,356,240 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities (Government-sponsored enterprises - residential) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Available for sale |
Disclosures about Fair Value 92
Disclosures about Fair Value of Assets - Fair value measurement of assets measured at fair value on nonrecurring basis (Details 1) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Significant Unobservable Inputs (Level 3) | Impaired loans (collateral dependent) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 1,157,329 | $ 899,981 |
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 552,827 | |
Nonrecurring | Impaired loans (collateral dependent) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 1,157,329 | 899,981 |
Nonrecurring | Mortgage servicing rights | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 552,827 | |
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans (collateral dependent) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ||
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ||
Nonrecurring | Significant Other Observable Inputs (Level 2) | Impaired loans (collateral dependent) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ||
Nonrecurring | Significant Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | ||
Nonrecurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 552,827 |
Disclosures about Fair Value 93
Disclosures about Fair Value of Assets - Quantitative information about unobservable inputs used in nonrecurring level 3 fair value measurements (Details 2) - Significant Unobservable Inputs (Level 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Collateral-dependent impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on nonrecurring basis | $ 1,157,329 | $ 899,981 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable Inputs | Marketability discount | Marketability discount |
Collateral-dependent impaired loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketability discount | 20.00% | 20.00% |
Collateral-dependent impaired loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketability discount | 30.00% | 30.00% |
Collateral-dependent impaired loans | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketability discount | 25.00% | 25.00% |
Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on nonrecurring basis | $ 552,827 | |
Valuation Technique | Discounted cash flow | |
Mortgage servicing rights | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 9.00% | |
PSA standard prepayment model rate | 104.00% | |
Mortgage servicing rights | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 13.50% | |
PSA standard prepayment model rate | 300.00% | |
Mortgage servicing rights | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 10.25% | |
PSA standard prepayment model rate | 153.00% |
Disclosures about Fair Value 94
Disclosures about Fair Value of Assets - Estimated fair values of other financial instruments (Details 3) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | $ 12,909,924 | $ 4,103,432 |
Interest-earning time deposits in banks | 750,000 | 2,724,000 |
Other investments | 55,481 | 62,223 |
Loans held for sale | 503,003 | 539,000 |
Loans, net of allowance for loan losses | 184,448,003 | 193,039,879 |
Federal Home Loan Bank stock | 363,800 | 1,113,800 |
Interest receivable | 1,588,545 | 1,715,676 |
Financial liabilities | ||
Deposits | 258,677,960 | 239,281,930 |
Short-term borrowings | 7,135,182 | 15,131,710 |
Advances from borrowers for taxes and insurance | 1,102,204 | 990,917 |
Interest payable | 106,755 | 118,335 |
Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit | ||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and cash equivalents | 12,909,924 | 4,103,432 |
Interest-earning time deposits in banks | 750,000 | 2,724,000 |
Other investments | ||
Loans held for sale | ||
Loans, net of allowance for loan losses | ||
Federal Home Loan Bank stock | ||
Interest receivable | ||
Financial liabilities | ||
Deposits | ||
Short-term borrowings | ||
Advances from borrowers for taxes and insurance | ||
Interest payable | ||
Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit | ||
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and cash equivalents | ||
Interest-earning time deposits in banks | ||
Other investments | 55,481 | 62,223 |
Loans held for sale | 503,003 | 539,000 |
Loans, net of allowance for loan losses | ||
Federal Home Loan Bank stock | 363,800 | 1,113,800 |
Interest receivable | 1,588,545 | 1,715,676 |
Financial liabilities | ||
Deposits | 178,491,424 | 160,227,406 |
Short-term borrowings | 7,135,182 | 6,631,710 |
Advances from borrowers for taxes and insurance | 1,102,204 | 990,917 |
Interest payable | 106,755 | 118,335 |
Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit | ||
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Cash and cash equivalents | ||
Interest-earning time deposits in banks | ||
Other investments | ||
Loans held for sale | ||
Loans, net of allowance for loan losses | 183,941,877 | 193,006,301 |
Federal Home Loan Bank stock | ||
Interest receivable | ||
Financial liabilities | ||
Deposits | 81,241,011 | 80,300,060 |
Short-term borrowings | 8,500,000 | |
Advances from borrowers for taxes and insurance | ||
Interest payable | ||
Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit |
Disclosures about Fair Value 95
Disclosures about Fair Value of Assets (Detail Textuals) - Significant Unobservable Inputs (Level 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value adjustments | $ 391,745 | $ (156,069) |
Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value adjustments | $ (38,967) | $ 0 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Detail Textuals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Outstanding commitments to originate loans | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments and credit risk | $ 5,238,175 | $ 4,457,514 |
Outstanding commitments to originate loans | Fixed Income Interest Rate | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments and credit risk | $ 2,028,000 | 3,744,574 |
Outstanding commitments to originate loans | Fixed Income Interest Rate | Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Loan commitments, fixed rate of interest | 3.00% | |
Outstanding commitments to originate loans | Fixed Income Interest Rate | Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Loan commitments, fixed rate of interest | 7.75% | |
Standby Letters of Credit | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments and credit risk | $ 110,000 | 110,000 |
Unused lines of Credit | Commercial lines | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments and credit risk | 26,836,352 | 21,753,180 |
Unused lines of Credit | Open-ended consumer lines | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitments and credit risk | $ 15,869,821 | $ 10,785,989 |
Quarterly Results of Operatio97
Quarterly Results of Operations (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest income | $ 2,817,513 | $ 2,858,551 | $ 2,849,785 | $ 2,909,135 | $ 2,923,681 | $ 2,830,112 | $ 2,859,579 | $ 2,901,492 | $ 11,434,984 | $ 11,514,864 |
Interest expense | 274,630 | 277,603 | 247,184 | 248,909 | 252,749 | 267,433 | 293,141 | 314,050 | 1,048,326 | 1,127,373 |
Net interest income | 2,542,883 | 2,580,948 | 2,602,601 | 2,660,226 | 2,670,932 | 2,562,679 | 2,566,438 | 2,587,442 | 10,386,658 | 10,387,491 |
Provision for loan losses | 30,000 | 30,000 | 30,000 | 30,000 | 30,000 | 45,000 | 35,000 | 30,000 | 120,000 | 140,000 |
Net interest income after provision for loan losses | 2,512,883 | 2,550,948 | 2,572,601 | 2,630,226 | 2,640,932 | 2,517,679 | 2,531,438 | 2,557,442 | 10,266,658 | 10,247,491 |
Noninterest income | 1,099,642 | 1,088,058 | 1,034,670 | 1,039,075 | 1,096,519 | 991,626 | 1,063,287 | 1,035,458 | 4,261,445 | 4,186,890 |
Noninterest expense | 2,681,987 | 2,613,954 | 2,564,033 | 2,532,562 | 2,814,601 | 2,579,660 | 2,431,183 | 2,515,789 | 10,392,536 | 10,341,233 |
Income before income taxes | 930,538 | 1,025,052 | 1,043,238 | 1,136,739 | 922,850 | 929,645 | 1,163,542 | 1,077,111 | 4,135,567 | 4,093,148 |
Income tax expense | 233,278 | 267,287 | 277,732 | 309,361 | 218,785 | 230,247 | 327,139 | 290,854 | 1,087,658 | 1,067,025 |
Net income | $ 697,260 | $ 757,765 | $ 765,506 | $ 827,378 | $ 704,065 | $ 699,398 | $ 836,403 | $ 786,257 | $ 3,047,909 | $ 3,026,123 |
Basic earnings per share (in dollars per share) | $ 0.39 | $ 0.43 | $ 0.43 | $ 0.47 | $ 0.40 | $ 0.40 | $ 0.47 | $ 0.44 | $ 1.72 | $ 1.71 |
Diluted earnings per share (in dollars per share) | $ 0.39 | $ 0.42 | $ 0.43 | $ 0.46 | $ 0.39 | $ 0.39 | $ 0.47 | $ 0.44 | $ 1.70 | $ 1.70 |
Condensed Financial Informati98
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | |||
Cash and due from banks | $ 5,984,640 | $ 2,385,846 | |
Other assets | 704,845 | 811,007 | |
Total assets | 319,318,759 | 308,642,474 | |
Liabilities | |||
Other liabilities | 1,190,921 | 1,076,363 | |
Stockholders' Equity | 46,245,565 | 45,566,500 | $ 45,016,098 |
Total liabilities and stockholders' equity | 319,318,759 | 308,642,474 | |
Parent Company | |||
Assets | |||
Cash and due from banks | 4,806,252 | 4,800,526 | |
Investment in common stock of subsidiary | 41,366,024 | 42,428,601 | |
Loan receivable from subsidiary | 177,347 | 216,506 | |
Other assets | 118,460 | 106,960 | |
Total assets | 46,468,083 | 47,552,593 | |
Liabilities | |||
Other liabilities | 222,518 | 1,986,093 | |
Stockholders' Equity | 46,245,565 | 45,566,500 | |
Total liabilities and stockholders' equity | $ 46,468,083 | $ 47,552,593 |
Condensed Financial Informati99
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income and Comprehensive Income (Loss) (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income | ||||||||||
Total income | $ 2,817,513 | $ 2,858,551 | $ 2,849,785 | $ 2,909,135 | $ 2,923,681 | $ 2,830,112 | $ 2,859,579 | $ 2,901,492 | $ 11,434,984 | $ 11,514,864 |
Expenses | ||||||||||
Income Tax Benefit | 233,278 | 267,287 | 277,732 | 309,361 | 218,785 | 230,247 | 327,139 | 290,854 | 1,087,658 | 1,067,025 |
Net Income | $ 697,260 | $ 757,765 | $ 765,506 | $ 827,378 | $ 704,065 | $ 699,398 | $ 836,403 | $ 786,257 | 3,047,909 | 3,026,123 |
Comprehensive Income | 1,081,274 | 3,104,981 | ||||||||
Parent Company | ||||||||||
Income | ||||||||||
Dividends from subsidiary | 2,500,000 | 2,000,000 | ||||||||
Other income | 10,544 | 11,712 | ||||||||
Total income | 2,510,544 | 2,011,712 | ||||||||
Expenses | ||||||||||
Other expenses | 360,950 | 361,694 | ||||||||
Income Before Income Tax and Equity in Undistributed Income of Subsidiary | 2,149,594 | 1,650,018 | ||||||||
Income Tax Benefit | (136,020) | (137,420) | ||||||||
Income Before Equity in Undistributed Income of Subsidiary | 2,285,614 | 1,787,438 | ||||||||
Equity in Undistributed Income of Subsidiary | 762,295 | 1,238,685 | ||||||||
Net Income | 3,047,909 | 3,026,123 | ||||||||
Comprehensive Income | $ 1,081,274 | $ 3,104,981 |
Condensed Financial Informat100
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | ||||||||||
Net income | $ 697,260 | $ 757,765 | $ 765,506 | $ 827,378 | $ 704,065 | $ 699,398 | $ 836,403 | $ 786,257 | $ 3,047,909 | $ 3,026,123 |
Stock-based compensation expense | 90,163 | 90,163 | ||||||||
Net cash provided by operating activities | 4,245,675 | 3,207,438 | ||||||||
Investing Activity | ||||||||||
Net cash provided by investing activities | (4,594,248) | (2,449,632) | ||||||||
Financing Activities | ||||||||||
Dividends paid | (2,440,380) | (565,995) | ||||||||
Stock repurchase | (127,118) | (765,311) | ||||||||
Exercise of stock options | 211,775 | 386,790 | ||||||||
Net cash used in financing activities | 9,155,065 | (6,266,012) | ||||||||
Net Change in Cash and Cash Equivalents | 8,806,492 | (5,508,206) | ||||||||
Cash and Cash Equivalents, Beginning of Year | 4,103,432 | 9,611,638 | 4,103,432 | 9,611,638 | ||||||
Cash and Cash Equivalents, End of Year | 12,909,924 | 4,103,432 | 12,909,924 | 4,103,432 | ||||||
Parent Company | ||||||||||
Operating Activities | ||||||||||
Net income | 3,047,909 | 3,026,123 | ||||||||
Items not providing cash, net | (762,295) | (1,238,685) | ||||||||
Stock-based compensation expense | 90,163 | 90,163 | ||||||||
Change in other assets and liabilities, net | (53,487) | (17,617) | ||||||||
Net cash provided by operating activities | 2,322,290 | 1,859,984 | ||||||||
Investing Activity | ||||||||||
Loan payment from subsidiary | 39,159 | 37,879 | ||||||||
Net cash provided by investing activities | 39,159 | 37,879 | ||||||||
Financing Activities | ||||||||||
Dividends paid | (2,440,380) | (565,995) | ||||||||
Stock repurchase | (127,118) | (765,311) | ||||||||
Exercise of stock options | 211,775 | 386,790 | ||||||||
Net cash used in financing activities | (2,355,723) | (944,516) | ||||||||
Net Change in Cash and Cash Equivalents | 5,726 | 953,347 | ||||||||
Cash and Cash Equivalents, Beginning of Year | $ 4,800,526 | $ 3,847,179 | 4,800,526 | 3,847,179 | ||||||
Cash and Cash Equivalents, End of Year | $ 4,806,252 | $ 4,800,526 | $ 4,806,252 | $ 4,800,526 |