Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2017 | |
Document Information [Line Items] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Entity Registrant Name | Farmers & Merchants Bancshares, Inc. |
Entity Central Index Key | 1,698,022 |
Entity Filer Category | Smaller Reporting Company |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and due from banks | $ 17,700,574 | $ 12,334,358 | $ 18,535,302 |
Federal funds sold and other interest-bearing deposits | 992,857 | 978,557 | 1,657,537 |
Cash and cash equivalents | 18,693,431 | 13,312,915 | 20,192,839 |
Certificate of deposit in other bank | 100,000 | 100,000 | 100,000 |
Securities available for sale | 33,234,293 | 34,385,939 | 23,644,584 |
Securities held to maturity | 18,105,982 | 17,987,628 | 16,604,067 |
Federal Home Loan Bank stock, at cost | 893,600 | 778,300 | 758,100 |
Mortgage loans held for sale | 0 | 884,500 | 0 |
Loans, less allowance for loan losses of $2,414,124 and $2,363,086 | 312,287,255 | 295,286,572 | 268,249,402 |
Premises and equipment | 5,384,550 | 5,449,678 | 5,647,933 |
Accrued interest receivable | 922,891 | 956,963 | 850,923 |
Deferred income taxes | 1,026,476 | 1,029,019 | 1,220,105 |
Other real estate owned | 414,000 | 414,000 | 472,500 |
Bank owned life insurance | 6,763,918 | 6,721,003 | 6,541,381 |
Other assets | 794,394 | 2,524,842 | 1,028,162 |
Assets | 398,620,790 | 379,831,359 | 345,309,996 |
Deposits | |||
Noninterest-bearing | 58,640,811 | 62,791,835 | 58,043,942 |
Interest-bearing | 256,984,003 | 239,923,301 | 217,920,795 |
Total deposits | 315,624,814 | 302,715,136 | 275,964,737 |
Securities sold under repurchase agreements | 28,037,122 | 27,226,159 | 20,490,619 |
Federal Home Loan Bank of Atlanta advances | 13,000,000 | 9,000,000 | 11,000,000 |
Accrued interest payable | 169,572 | 141,903 | 137,968 |
Other liabilities | 1,789,545 | 1,735,884 | 1,493,311 |
Liabilities | 358,621,053 | 340,819,082 | 309,086,635 |
Stockholders' equity | |||
Common stock, par value $.01 per share, authorized 5,000,000 shares; issued and outstanding 1,656,390 shares in 2017 and 2016 | 16,564 | 16,564 | 16,475,415 |
Additional paid-in capital | 26,562,919 | 26,562,919 | 9,889,659 |
Retained earnings | 13,696,656 | 12,713,099 | 9,960,410 |
Accumulated other comprehensive income | (276,402) | (280,305) | (102,123) |
Stockholders' Equity Attributable to Parent | 39,999,737 | 39,012,277 | 36,223,361 |
Liabilities and Stockholders' Equity | $ 398,620,790 | $ 379,831,359 | $ 345,309,996 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable, Allowance | $ 2,414,124 | $ 2,363,086 | $ 2,583,445 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 10 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 1,656,390 | 1,656,390 | 1,647,541 |
Common Stock, Shares, Outstanding | 1,656,390 | 1,656,390 | 1,647,541 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | ||||
Loans, including fees | $ 3,616,168 | $ 3,465,489 | $ 14,024,899 | $ 13,809,312 |
Investment securities - taxable | 195,745 | 181,780 | 762,383 | 479,217 |
Investment securities - tax exempt | 147,254 | 106,737 | 501,530 | 367,030 |
Federal funds sold and other interest earning assets | 17,445 | 17,574 | 62,685 | 49,842 |
Total interest income | 3,976,612 | 3,771,580 | 15,351,497 | 14,705,401 |
Interest expense | ||||
Deposits | 310,805 | 259,671 | 1,098,987 | 1,005,317 |
Securities sold under repurchase agreements | 46,515 | 28,471 | 144,620 | 99,886 |
Federal Home Loan Bank advances and other borrowings | 28,393 | 26,454 | 102,513 | 84,443 |
Total interest expense | 385,713 | 314,596 | 1,346,120 | 1,189,646 |
Net interest income | 3,590,899 | 3,456,984 | 14,005,377 | 13,515,755 |
Provision for loan losses | 50,000 | 0 | 0 | 0 |
Net interest income after provision for loan losses | 3,540,899 | 3,456,984 | 14,005,377 | 13,515,755 |
Noninterest income | ||||
Service charges on deposit accounts | 176,890 | 190,184 | 758,075 | 748,310 |
Mortgage banking income | 57,781 | 75,932 | 471,982 | 393,884 |
Bank owned life insurance income | 42,916 | 42,697 | 179,622 | 72,264 |
Net (loss) gain on sale of securities | 0 | (5,508) | ||
Gain (loss) on sale and write down of other real estate owned | (57,065) | 550,474 | ||
Gain on sale of loans | 0 | 107,830 | ||
Other fees and commissions | 25,457 | 29,636 | 112,583 | 119,006 |
Total noninterest income | 303,044 | 338,449 | 1,465,197 | 1,986,260 |
Noninterest expense | ||||
Salaries | 1,158,895 | 1,095,906 | 4,661,703 | 4,240,524 |
Employee benefits | 355,541 | 331,579 | 1,217,508 | 1,131,389 |
Occupancy | 183,803 | 171,260 | 649,055 | 640,083 |
Furniture and equipment | 164,769 | 140,350 | 649,865 | 609,458 |
Other | 640,260 | 603,670 | 2,356,494 | 2,082,134 |
Total noninterest expense | 2,503,268 | 2,342,765 | 9,534,625 | 8,703,588 |
Income before income taxes | 1,340,675 | 1,452,668 | 5,935,949 | 6,798,427 |
Income taxes | 357,118 | 516,200 | 2,026,820 | 2,530,205 |
Net income | $ 983,557 | $ 936,468 | $ 3,909,129 | $ 4,268,222 |
Earnings per share - basic and diluted | $ 0.59 | $ 0.57 | $ 2.37 | $ 2.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 983,557 | $ 936,468 | $ 3,909,129 | $ 4,268,222 |
Securities available for sale | ||||
Net unrealized gain (loss) arising during the period | 6,446 | 422,492 | (294,248) | (148,511) |
Reclassification adjustment for realized gains and losses included in net income | 0 | 0 | 0 | (8,179) |
Total unrealized gain (loss) on investment securities available for sale | 6,446 | 422,492 | (294,248) | (156,690) |
Income tax expense (benefit) relating to investment securities available for sale | 2,543 | 166,652 | (116,066) | (61,806) |
Total other comprehensive income (loss) | 3,903 | 255,840 | (178,182) | (94,884) |
Total comprehensive income | $ 987,460 | $ 1,192,308 | $ 3,730,947 | $ 4,173,338 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] |
Beginning Balance at Dec. 31, 2014 | $ 32,702,470 | $ 16,285,440 | $ 9,236,495 | $ 7,187,774 | $ (7,239) |
Beginning Balance (in shares) at Dec. 31, 2014 | 1,628,544 | ||||
Net income | 4,268,222 | $ 0 | 0 | 4,268,222 | 0 |
Unrealized gain (loss) on securities available for sale net of income tax expense (benefit) | (94,884) | 0 | 0 | 0 | (94,884) |
Cash dividends | (1,045,586) | 0 | 0 | (1,045,586) | 0 |
Dividends reinvested | 393,139 | $ 189,975 | 203,164 | 0 | 0 |
Dividends reinvested (in shares) | 18,997 | ||||
Transfer | 0 | $ 0 | 450,000 | (450,000) | 0 |
Ending Balance at Dec. 31, 2015 | 36,223,361 | $ 16,475,415 | 9,889,659 | 9,960,410 | (102,123) |
Ending Balance (in shares) at Dec. 31, 2015 | 1,647,541 | ||||
Net income | 936,468 | $ 0 | 0 | 936,468 | 0 |
Unrealized gain (loss) on securities available for sale net of income tax expense (benefit) | 255,840 | 0 | 0 | 0 | 255,840 |
Ending Balance at Mar. 31, 2016 | 37,415,669 | $ 16,475,415 | 9,889,659 | 10,896,878 | 153,717 |
Ending Balance (in shares) at Mar. 31, 2016 | 1,647,541 | ||||
Beginning Balance at Dec. 31, 2015 | 36,223,361 | $ 16,475,415 | 9,889,659 | 9,960,410 | (102,123) |
Beginning Balance (in shares) at Dec. 31, 2015 | 1,647,541 | ||||
Net income | 3,909,129 | $ 0 | 0 | 3,909,129 | 0 |
Unrealized gain (loss) on securities available for sale net of income tax expense (benefit) | (178,182) | 0 | 0 | 0 | (178,182) |
Par value change as a result of the holding company formation | 0 | (16,547,340) | 16,547,340 | 0 | 0 |
Cash dividends | (1,156,440) | 0 | 0 | (1,156,440) | 0 |
Dividends reinvested | 214,409 | $ 88,489 | 125,920 | 0 | 0 |
Dividends reinvested (in shares) | 8,849 | ||||
Ending Balance at Dec. 31, 2016 | 39,012,277 | $ 16,564 | 26,562,919 | 12,713,099 | (280,305) |
Ending Balance (in shares) at Dec. 31, 2016 | 1,656,390 | ||||
Net income | 983,557 | $ 0 | 0 | 983,557 | 0 |
Unrealized gain (loss) on securities available for sale net of income tax expense (benefit) | 3,903 | 0 | 0 | 0 | 3,903 |
Ending Balance at Mar. 31, 2017 | $ 39,999,737 | $ 16,564 | $ 26,562,919 | $ 13,696,656 | $ (276,402) |
Ending Balance (in shares) at Mar. 31, 2017 | 1,656,390 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent | $ 2,543 | $ 166,652 | $ (116,066) | $ (61,806) |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.70 | $ 0.64 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | ||||
Interest received | $ 4,034,095 | $ 3,772,802 | $ 15,284,615 | $ 14,669,641 |
Fees and commissions received | 260,129 | 295,753 | 1,285,575 | 1,346,530 |
Interest paid | (358,044) | (306,263) | (1,342,185) | (1,197,946) |
Proceeds from sale of mortgage loans held for sale | 2,933,010 | 3,978,459 | 22,360,618 | 16,503,589 |
Origination of mortgage loans held for sale | (2,048,510) | (4,294,559) | (23,245,118) | (16,192,939) |
Cash paid to suppliers and employees | (968,190) | (1,355,815) | (9,441,840) | (8,204,143) |
Income taxes paid , net of refunds received | 12,896 | (654,826) | (2,462,983) | (2,573,681) |
Cash provided by operating activities | 3,865,386 | 1,435,551 | 2,438,682 | 4,351,051 |
Proceeds from maturity and call of securities | ||||
Available for sale | 1,699,637 | 1,176,528 | 8,101,190 | 4,753,161 |
Held to maturity | 385,000 | 248,926 | 3,306,926 | 2,975,000 |
Proceeds from sale of securities | ||||
Available for sale | 298,379 | 543,277 | ||
Held to maturity | 0 | 517,125 | ||
Purchase of securities | ||||
Available for sale | (566,250) | (9,068,329) | (19,590,432) | (12,190,544) |
Held to maturity | (503,530) | (1,606,093) | (4,692,897) | (5,560,761) |
Loans made to customers, net of principal collected | (17,076,599) | 3,313,934 | (27,083,940) | (5,864,275) |
(Purchase) redemption of stock in FHLB of Atlanta | (115,300) | 64,800 | (20,200) | (38,300) |
Other real estate owned proceeds | 0 | 1,021,820 | ||
Purchase of bank owned life insurance | 0 | (400,000) | ||
Purchases of premises, equipment and software | (28,469) | (53,772) | (181,540) | (451,080) |
Cash used by investing activities | (16,205,511) | (5,924,006) | (39,862,514) | (14,694,577) |
Net increase (decrease) in | ||||
Noninterest-bearing deposits | (4,151,024) | (838,357) | 4,747,893 | 5,983,509 |
Interest-bearing deposits | 17,060,702 | 1,050,767 | 22,002,506 | 8,770,698 |
Securities sold under repurchase agreements | 810,963 | 2,762,995 | 6,735,540 | 851,292 |
Federal Home Loan Bank of Atlanta advances | 4,000,000 | (2,000,000) | (2,000,000) | 3,000,000 |
Dividends paid, net of reinvestments | (942,031) | (652,447) | ||
Cash provided by financing activities | 17,720,641 | 975,405 | 30,543,908 | 17,953,052 |
Net increase (decrease) in cash and cash equivalents | 5,380,516 | (3,513,050) | (6,879,924) | 7,609,526 |
Cash and cash equivalents at beginning of period | 13,312,915 | 20,192,839 | 20,192,839 | 12,583,313 |
Cash and cash equivalents at end of period | 18,693,431 | 16,679,789 | 13,312,915 | 20,192,839 |
Reconciliation of net income to net cash provided by operating activities | ||||
Net income | 983,557 | 936,468 | 3,909,129 | 4,268,222 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 109,699 | 110,988 | 448,895 | 385,711 |
Provision for loan losses | 50,000 | 0 | 0 | 0 |
Net loss (gain) on sale of investment securities: | ||||
Available for sale | 0 | (8,179) | ||
Held to maturity | 0 | 13,687 | ||
Write down of other real estate owned | 58,500 | 22,500 | ||
Net gain on sale of other real estate owned | 0 | (572,974) | ||
Mutual fund dividend reinvested | (2,505) | 0 | (7,612) | 0 |
Decrease (increase) in mortgage loans held for sale | 884,500 | (316,100) | (884,500) | 310,650 |
Deferred income taxes | 307,153 | 95,150 | ||
Amortization of premiums and accretion of discounts, net | 27,386 | 34,337 | 165,281 | 73,509 |
Increase (decrease) in | ||||
Deferred loan fees | 25,916 | (21,327) | 46,770 | (53,264) |
Accrued interest payable | 27,669 | 8,333 | 3,935 | (8,300) |
Other liabilities | 53,661 | 279,641 | 242,573 | 404,519 |
Decrease (increase) in | ||||
Accrued interest receivable | 34,072 | 22,549 | (106,040) | 17,504 |
Bank owned life insurance cash surrender value | (42,915) | (42,696) | (179,622) | (72,264) |
Other assets | 1,714,346 | 423,358 | (1,565,780) | (525,420) |
Cash provided by operating activities | $ 3,865,386 | $ 1,435,551 | $ 2,438,682 | $ 4,351,051 |
Principles of consolidation
Principles of consolidation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Principles of consolidation The consolidated financial statements include the accounts of Farmers and Merchants Bancshares, Inc. and its wholly owned subsidiaries, Farmers and Merchants Bank (the “Bank”), and Series Protected Cell FCB-4 (the “Insurance Subsidiary”), and one indirect subsidiary, Reliable Community Financial Services, Inc. (collectively the “Company”, “we”, “us”, or “our”). The Insurance Subsidiary constitutes an investment in a series of membership interests, 100% owned by the Company, issued by First Community Bankers Insurance Co., LLC, a Tennessee “series” limited liability company and licensed property and casualty insurance company. Intercompany balances and transactions have been eliminated. Farmers and Merchants Bancshares, Inc. was incorporated on August 8, 2016 but had no operations until November 1, 2016 when it completed its share exchange with the Bank pursuant to which the Bank became a wholly-owned subsidiary of Farmers and Merchants Bancshares, Inc. The Insurance Subsidiary was formed effective November 9, 2016. Results prior to November 1, 2016 are solely attributable to the Bank and its subsidiary Reliable Community Financial Services, Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies The accounting and reporting policies reflected in the financial statements conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Management makes estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of commitments and contingent liabilities at the balance sheet date, and revenues and expenses during the year. These estimates and assumptions may affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. The consolidated financial statements include the accounts of Farmers and Merchants Bancshares, Inc. and its wholly owned subsidiaries, Farmers and Merchants Bank (the “Bank”), and Series Protected Cell FCB-4 (the “Insurance Subsidiary”), and one indirect subsidiary, Reliable Community Financial Services, Inc. (collectively the “Company”, “we”, “us”, or “our”). The Insurance Subsidiary is a series investment, 100 Business Farmers and Merchants Bank provides banking services to individuals and businesses located in Baltimore County, Maryland, Carroll County, Maryland and surrounding areas of northern Maryland. The Insurance Subsidiary is a captive insurance entity that provides insurance coverage for Farmers and Merchants Bank. Reliable Community Financial Services, Inc. can provide a wide range of investment and insurance products to its customers. Certain reclassifications have been made to the 2015 financial statements to conform to the current year presentation. These reclassifications had no effect on net income. For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, money market funds, and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Comprehensive income includes net income and the unrealized gains or losses on investment securities available for sale, net of income taxes. As securities are purchased, management determines if the securities should be classified as held to maturity or available for sale. Securities which management has the intent and ability to hold to maturity are recorded at amortized cost, which is cost adjusted for amortization of premiums and accretion of discounts to maturity. Securities held to meet liquidity needs or which may be sold before maturity are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders' equity on an after-tax basis. Gains and losses on disposal are determined using the specific-identification method. The Company amortizes premiums and accretes discounts using the interest method. As a member of the Federal Home Loan Bank, the Bank is required to purchase stock based on its total assets. Additional stock is purchased and redeemed based on the outstanding Federal Home Loan Bank advances to the Bank. The stock is recorded at cost on the balance sheet. Loans are stated at the current amount of unpaid principal, adjusted for deferred origination costs, deferred origination fees, and the allowance for loan losses. Interest on loans is accrued based on the principal amounts outstanding. Origination fees and costs are amortized to income over the terms of loans. Past due status is based on the contractual terms of the loan. Management may make an exception to reporting a loan as past due, if the past due status is solely due to the loan being past maturity, the Company intends to extend the loan, and the borrower is making principal and interest payments in accordance with the terms of the matured note. The accrual of interest is discontinued when any portion of the principal or interest is 90 days past due and collateral is insufficient to discharge the debt in full. If collection of principal is evaluated as doubtful, all payments are applied to principal. Loans are considered impaired when, based on current information, management considers it unlikely that the collection of principal and interest payments will be made according to contractual terms. Generally, loans are not reviewed for impairment until the accrual of interest has been discontinued or are included on the watch list. The allowance for loan losses represents an amount which, in management’s judgment, will be adequate to absorb probable losses on existing loans and other extensions of credit that may become uncollectible. The Company’s allowance for loan losses consists of three elements: (i) specific valuation allowances determined based on probable losses on specific loans; (ii) historical valuation allowances determined based on historical loan loss experience for similar loans with similar characteristics; and (iii) adjustments to the historical valuation allowances based on general economic conditions and other qualitative risk factors both internal and external to the Company. The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Management maintains a watch list of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor's ability to repay; (ii) the underlying collateral, if any; (iii) the economic environment; and (iv) for commercial borrowers, the industry in which the borrower operates. Specific valuation allowances are determined when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan is lower than the carrying value. Historical valuation allowances are calculated based on the historical loss experience of specific types of loans. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool over the prior eight to twenty quarters. As of December 31, 2016 and 2015, management used a twenty quarter period for the historical loss ratio. The historical loss ratios are updated quarterly based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and the total dollar amount of the loans in the pool. Adjustments to the historical valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such adjustments are determined by evaluating, among other things: (i) the impact of economic conditions on the portfolio; (ii) changes in asset quality, including delinquency trends; (iii) the impact of changing interest rates on portfolio risk; (iv) changes in legislative and regulatory policy; (v) the composition and concentrations of credit; and (vi) the effectiveness of the internal loan review function. Management evaluates these qualitative factors on a quarterly basis. Each factor could result in an adjustment that is positive, negative, or no impact. Loan losses are charged to the allowance when management believes that collection is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery. Mortgage loans held for sale are carried at the lower of aggregate cost or fair value based on the current fair value of each outstanding loan. Sales of loans are recorded when the proceeds are received, with any gain or loss recorded in mortgage banking income. The Company sells its mortgage loans to third party investors servicing released. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third party investors to put the mortgage loans back to the Company. Premises and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation on buildings and equipment is computed over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful lives of the asset, whichever is shorter. Real estate acquired through foreclosure or by deed in lieu of foreclosure is recorded at the lower of cost or fair value less estimated costs to sell on the date acquired. Losses incurred at the time of acquisition of the property are charged to the allowance for loan losses. Subsequent reductions in the estimated value of the property are included with any gains or losses on sale in noninterest income. The provision for income taxes includes income taxes payable for the current year and deferred income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Earnings per share are determined by dividing net income by the weighted average number of shares of common stock outstanding, giving retroactive effect to any stock dividends. Weighted average shares were 1,652,014 1,633,897 The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of December 31, 2016 for items that should potentially be recognized or disclosed in these financial statements as prescribed by ASC Topic 855, Subsequent Events. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 2. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations for the interim periods have been made. Such adjustments were normal and recurring in nature. The results of operations for the three months ended March 31, 2017 do not necessarily reflect the results that may be expected for the entire fiscal year ending December 31, 2017 or any other interim period. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2016, which are included in Farmers and Merchants Bancshares, Inc.’s Registration Statement on Form 10 that was filed pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (File No. 000-55756). In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing the financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its financial statements. In December 2014, the FASB issued ASU No. 2014-18, “Business Combinations (Topic 805): Accounting for Identifiable Assets in a Business Combination.” The amendments in ASU 2014-18 allow a private company that elects this accounting alternative to recognize or otherwise consider the fair value of intangible assets as a result of any in-scope transactions should no longer recognize separately from goodwill: (i) customer-related intangible assets unless they are capable of being sold or licensed independently from the other assets of the business, and (ii) noncompetition agreements. An entity that elects the accounting alternative in ASU 2014-18 must adopt the private company alternative to amortize goodwill as described in ASU No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill. However, an entity that elects the accounting alternative in Update 2014-02 is not required to adopt the amendments in this ASU. The decision to adopt the accounting alternative in ASU 2014-18 must be made upon the occurrence of the first transaction within the scope of this accounting alternative (transaction) in fiscal years beginning after December 15, 2015, and the effective date of adoption depends on the timing of that first transaction. If the first transaction occurs in fiscal years beginning after December 15, 2015, the elective adoption will be effective for that fiscal year’s annual financial reporting and all interim and annual periods thereafter. If the first transaction occurs in fiscal years beginning after December 15, 2016, the elective adoption will be effective in the interim period that includes the date of that first transaction and subsequent interim and annual periods thereafter. Early adoption is permitted for any interim and annual financial statements that have not yet been made available for issuance. The Company does not expect the adoption of ASU 2014-18 to have a material impact on its financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Statements Codification and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (CIE), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in the ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have a material impact on its financial statements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date.” The amendments in ASU 2015-14 defer the effective date of 2014-09 for all entities by one year. Entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. Entities may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. Entities also may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU 2014-09. The Company does not expect the adoption of ASU 2015-14 (or ASU 2014-09) to have a material impact on its financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company does not expect the adoption of ASU 2015-16 to have a material impact on its financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: (i) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and (iii) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost. The amendments within this ASU are effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The new guidance permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose at fair value information about financial instruments measured at amortized cost. The Company is currently assessing the impact that ASU 2016-01 will have on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 841).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue for Contracts with Customers. The amendments in this ASU are effective fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses”. The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. In March 2017, the FASB issued SU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20)—Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018 and is not expected to have a significant impact on our financial statements. |
Restatement
Restatement | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 2. Restatement Subsequent to the issuance of our 2016 Annual Report, the Company identified an error in its 2016 annual consolidated financial statements related to income taxes. Income tax expense for the year ended December 31, 2016 was understated by $ 393,735 The Consolidated Balance Sheet, Consolidated Statement of Operations, Consolidated Statement of Comprehensive Income, Consolidated Statement of Stockholders’ Equity, and Consolidated Statement of Cash Flows, Notes 14, 15, 16, and 17 in these financial statements were updated to reflect the restatement. As previously Restatement reported adjustments As restated Cash and due from banks $ 13,504,081 $ (1,169,723) $ 12,334,358 Cash and cash equivalents 14,482,638 (1,169,723) 13,312,915 Deferred income taxes 1,420,891 (391,872) 1,029,019 Other assets 1,356,982 1,167,860 2,524,842 Total assets 380,225,094 (393,735) 379,831,359 Retained earnings 13,106,834 (393,735) 12,713,099 Total stockholders' equity 39,406,012 (393,735) 39,012,277 Total liabilities and stockholders' equity 380,225,094 (393,735) 379,831,359 Impacted Consolidated Statements of Income Accounts for the year ended December 31, 2016: As previously Restatement reported adjustments As restated Income taxes $ 1,633,085 $ 393,735 $ 2,026,820 Net income 4,302,864 (393,735) 3,909,129 Earnings per share - basic and diluted 2.60 (0.23) 2.37 Impacted Consolidated Statements of Cash Flows for the year ended December 31, 2016: As previously Restatement reported adjustments As restated Cash paid to suppliers and employees $ (8,272,117) $ (1,169,723) $ (9,441,840) Cash provided by operating activities 3,608,405 (1,169,723) 2,438,682 Net increase in cash and cash equivalents (5,710,201) (1,169,723) (6,879,924) Cash and cash equivalents at the end of period 14,482,638 (1,169,723) 13,312,915 Net income 4,302,864 (393,735) 3,909,129 Deferred income taxes (84,719) 391,872 307,153 Other assets (397,920) (1,167,860) (1,565,780) The Consolidated Statements of Comprehensive Income and Changes in Stockholders’ Equity were corrected for the $ 393,735 |
Investment Securities
Investment Securities | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 3. Investment Securities Amortized Unrealized Unrealized Fair March 31, 2017 cost gains losses value Available for sale State and municipal $ 1,514,593 $ 59,134 $ 11,027 $ 1,562,700 Mutual fund 510,118 - 14,902 495,216 SBA pools 2,819,077 - 20,592 2,798,485 Mortgage-backed securities 28,846,954 16,339 485,401 28,377,892 $ 33,690,742 $ 75,473 $ 531,922 $ 33,234,293 Held to maturity State and municipal $ 18,105,982 $ 185,740 $ 263,786 $ 18,027,936 Amortized Unrealized Unrealized Fair December 31, 2016 cost gains losses value Available for sale State and municipal $ 1,515,863 $ 62,512 $ 12,048 $ 1,566,327 Mutual fund 507,612 - 15,369 492,243 SBA pools 2,280,415 - 16,581 2,263,834 Mortgage-backed securities 30,544,941 20,139 501,545 30,063,535 $ 34,848,831 $ 82,651 $ 545,543 $ 34,385,939 Held to maturity State and municipal $ 17,987,628 $ 163,239 $ 317,068 $ 17,833,799 Available for Sale Held to Maturity Amortized Fair Amortized Fair March 31, 2017 cost value cost value Within one year $ 510,118 $ 495,216 $ - $ - Over one to five years - - - - Over five to ten years 1,136,164 1,161,889 2,653,865 2,701,525 Over ten years 378,429 400,811 15,452,117 15,326,411 2,024,711 2,057,916 18,105,982 18,027,936 Mortgage-backed securities and SBA pools, due in monthly installments 31,666,031 31,176,377 - - $ 33,690,742 $ 33,234,293 $ 18,105,982 $ 18,027,936 December 31, 2016 Within one year $ 507,612 $ 492,243 $ - $ - Over one to five years - - - - Over five to ten years 1,136,919 1,163,288 2,657,130 2,702,121 Over ten years 378,944 403,039 15,330,498 15,131,678 2,023,475 2,058,570 17,987,628 17,833,799 Mortgage-backed securities and SBA pools, due in monthly installments 32,825,356 32,327,369 - - $ 34,848,831 $ 34,385,939 $ 17,987,628 $ 17,833,799 Securities with a carrying value of $ 40,701,766 March 31, 2017 Less than 12 months 12 months or more Total Description of investments Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized State and municipal $ 7,310,277 $ 274,813 $ - $ - $ 7,310,277 $ 274,813 Mutual fund 495,216 14,902 - - 495,216 14,902 SBA pools 2,232,235 20,592 - - 2,232,235 20,592 Mortgage-backed securities 25,608,743 442,531 1,777,344 42,870 27,386,087 485,401 Total $ 35,646,471 $ 752,838 $ 1,777,344 $ 42,870 $ 37,423,815 $ 795,708 December 31, 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses State and municipal $ 8,558,230 $ 329,116 $ - $ - $ 8,558,230 $ 329,116 Mutual fund 492,243 15,369 - - 492,243 15,369 SBA pools 2,263,834 16,581 - - 2,263,834 16,581 Mortgage-backed securities 26,726,037 473,451 1,353,900 28,094 28,079,937 501,545 Total $ 38,040,344 $ 834,517 $ 1,353,900 $ 28,094 $ 39,394,244 $ 862,611 Management has the ability and intent to hold securities classified as held to maturity until they mature, at which time the Company should receive full value for the securities. As of March 31, 2017 and December 31, 2016, management did not have the intent to sell any of the securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased as well as other market conditions for each particular security based upon the structure and remaining principal balance. The fair values of the investment securities are expected to recover as the securities approach their maturity dates or repricing dates or if market yields for such investments decline. Based on the these factors, as of March 31, 2017 and December 31, 2016, management believes the unrealized losses detailed in the table above are temporary and, accordingly, none of these unrealized losses have been recognized in the Company’s consolidated statement of income. | 4. Investment Securities Amortized Unrealized Unrealized Fair December 31, 2016 cost gains losses value Available for sale State and municipal $ 1,515,863 $ 62,512 $ 12,048 $ 1,566,327 Mutual fund 507,612 - 15,369 492,243 SBA pools 2,280,415 - 16,581 2,263,834 Mortgage-backed securities 30,544,941 20,139 501,545 30,063,535 $ 34,848,831 $ 82,651 $ 545,543 $ 34,385,939 Held to maturity State and municipal $ 17,987,628 $ 163,239 $ 317,068 $ 17,833,799 December 31, 2015 Available for sale State and municipal $ 1,253,031 $ 96,211 $ - $ 1,349,242 Mortgage-backed securities 22,524,260 37,120 266,038 22,295,342 $ 23,777,291 $ 133,331 $ 266,038 $ 23,644,584 Held to maturity U. S. government agency $ 2,960,758 $ 1,373 $ 33,231 $ 2,928,900 State and municipal 13,643,309 345,506 30,818 13,957,997 $ 16,604,067 $ 346,879 $ 64,049 $ 16,886,897 Available for Sale Held to Maturity Amortized Fair Amortized Fair December 31, 2016 cost value cost value Within one year $ 507,612 $ 492,243 $ - $ - Over one to five years - - - - Over five to ten years 1,136,919 1,163,288 2,657,130 2,702,121 Over ten years 378,944 403,039 15,330,498 15,131,678 2,023,475 2,058,570 17,987,628 17,833,799 Mortgage-backed securities and SBA pools, due in monthly installments 32,825,356 32,327,369 - - $ 34,848,831 $ 34,385,939 $ 17,987,628 $ 17,833,799 December 31, 2015 Within one year $ - $ - $ - $ - Over one to five years - - - - Over five to ten years 501,991 552,070 2,276,250 2,308,733 Over ten years 751,040 797,172 14,327,817 14,578,164 1,253,031 1,349,242 16,604,067 16,886,897 Mortgage-backed securities, due in monthly installments 22,524,260 22,295,342 - - $ 23,777,291 $ 23,644,584 $ 16,604,067 $ 16,886,897 Securities with a carrying value of $ 33,146,328 26,036,893 In 2016, the Company realized no gain or loss on the sale of one security with gross proceeds of $ 298,379 10,586 1,060,402 530,812 December 31, 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses State and municipal $ 8,558,230 $ 329,116 $ - $ - $ 8,558,230 $ 329,116 Mutual fund 492,243 15,369 - - 492,243 15,369 SBA pools 2,263,834 16,581 - - 2,263,834 16,581 Mortgage-backed securities 26,726,037 473,451 1,353,900 28,094 28,079,937 501,545 Total $ 38,040,344 $ 834,517 $ 1,353,900 $ 28,094 $ 39,394,244 $ 862,611 December 31, 2015 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses U.S. government agency $ - $ - $ 1,927,527 $ 33,231 $ 1,927,527 $ 33,231 State and municipal 573,034 5,535 804,623 25,283 1,377,657 30,818 Mortgage-backed securities 15,299,536 156,187 3,431,902 109,851 18,731,438 266,038 Total $ 15,872,570 $ 161,722 $ 6,164,052 $ 168,365 $ 22,036,622 $ 330,087 Management has the ability and intent to hold securities classified as held to maturity until they mature, at which time the Company should receive full value for the securities. As of December 31, 2016, management did not have the intent to sell any of the securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased as well as other market conditions for each particular security based upon the structure and remaining principal balance. The fair values of the investment securities are expected to recover as the securities approach their maturity dates or repricing dates or if market yields for such investments decline. Based on the these factors, as of December 31, 2016, management believes the unrealized losses detailed in the table above are temporary and, accordingly, none of these unrealized losses have been recognized in the Company’s consolidated statement of income. |
Cash and Equivalents
Cash and Equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | 3. Cash and Equivalents The Company normally carries balances with other banks that exceed the federally insured limit. The average balance carried in excess of the limit, including unsecured federal funds sold to the same banks, was $ 7,042,956 7,772,791 Deposits held in noninterest-bearing transaction accounts are aggregated with any interest-bearing deposits the owner may hold in the same category. The combined total is insured up to $ 250,000 Banks are required to carry noninterest-bearing cash reserves of specified percentages of deposit balances. The Company's normal balances of cash on hand and on deposit with other banks are sufficient to satisfy the reserve requirements. |
Loans
Loans | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. Loans March 31, December 31, 2017 2016 Real estate: Commercial $ 223,290,411 $ 206,145,076 Construction and land development 13,988,793 14,392,992 Residential 56,343,709 54,710,809 Commercial 20,894,073 22,152,773 Consumer 687,569 725,269 315,204,555 298,126,919 Less: Allowance for loan losses 2,414,124 2,363,086 Deferred origination fees net of costs 503,176 477,261 $ 312,287,255 $ 295,286,572 March 31, December 31, 2017 2016 Construction and land development $ 571,161 $ 752,889 At March 31, 2017, the Company had two nonaccrual construction and land development loans to one borrower totaling $ 571,161 6,768 86,859 400,000 At December 31, 2016, the Company had two nonaccrual construction and land development loans to one borrower totaling $752,889. The loans were secured by real estate and business assets, and were personally guaranteed. Gross interest income of $ 9,507 90 Days Past Due 90 30 - 59 Days 60 - 89 Days or More Total Total Days or More Past Due Past Due Past Due Past Due Current Loans and Accruing March 31, 2017 Real estate: Commercial $ - $ - $ - $ - $ 223,290,411 $ 223,290,411 $ - Construction and land development - 152,521 571,161 723,682 13,265,111 13,988,793 - Residential 800,017 - - 800,017 55,543,692 56,343,709 - Commercial - - - - 20,894,073 20,894,073 - Consumer - - - - 687,569 687,569 - Total $ 800,017 $ 152,521 $ 571,161 $ 1,523,699 $ 313,680,856 $ 315,204,555 $ - December 31, 2016 Real estate: Commercial $ - $ - $ - $ - $ 206,145,076 $ 206,145,076 $ - Construction and land development - - 752,889 752,889 13,640,103 14,392,992 - Residential 824,554 - - 824,554 53,886,255 54,710,809 - Commercial 48,719 - - 48,719 22,104,054 22,152,773 - Consumer - - - - 725,269 725,269 - Total $ 873,273 $ - $ 752,889 $ 1,626,162 $ 296,500,757 $ 298,126,919 $ - Unpaid Recorded Recorded Contractual Investment Investment Total Average Principal With No With Recorded Related Recorded Interest Balance Allowance Allowance Investment Allowance Investment Recognized March 31, 2017 Real estate: Commercial $ 3,060,269 $ 3,060,269 $ - $ 3,060,269 $ - $ 1,906,579 $ 37,209 Construction and land development 971,161 - 571,161 571,161 86,859 285,581 - Commercial 155,296 155,296 - 155,296 - 1,749,020 2,783 $ 4,186,726 $ 3,215,565 $ 571,161 $ 3,786,726 $ 86,859 $ 4,023,563 $ 39,992 December 31, 2016 Real estate: Commercial $ 2,455,090 $ 2,183,509 $ 241,580 $ 2,425,089 $ 7,580 $ 2,332,568 $ 125,260 Construction and land development 1,152,889 - 752,889 752,889 16,587 854,851 - Commercial 164,766 164,766 - 164,766 - 184,201 14,442 $ 3,772,745 $ 2,348,275 $ 994,469 $ 3,342,744 $ 24,167 $ 3,371,620 $ 139,702 Impaired loans also include certain loans that have been modified in troubled debt restructurings (“TDRs”) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company's loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months. At March 31, 2017, the Company had four loans classified as a troubled debt restructuring. All are included in impaired loans above. The first is a commercial real estate loan with a balance of $ 2,171,599 155,296 888,670 At December 31, 2016, the Company had three loans classified as a troubled debt restructuring. All are included in impaired loans above. The first is a commercial real estate loan with a balance of $2,183,509. The second is a commercial loan with a balance of $164,766. These two loans are paying as agreed. The third loan was restructured in 2016 with a balance of $271,580. The loan is a commercial real estate loan with a balance of $241,580 at December 31, 2016 which is net of a $30,000 charge-off. The Company has allocated $7,580 of its allowance for loan losses for this loan. As part of our portfolio risk management, the Company assigns a risk grade to each loan. The factors used to determine the grade are the payment history of the loan and the borrower, the value of the collateral and net worth of the guarantor, and cash flow projections of the borrower. Excellent, Above Average, Average and Acceptable grades are assigned to loans with limited or no delinquent payments and more than sufficient collateral and/or cash flow. A description of the general characteristics of loans characterized as watch list or classified is as follows: Pass/Watch Loans graded as Pass/Watch are secured by generally acceptable assets which reflect above-average risk. The loans warrant closer scrutiny by management than is routine, due to circumstances affecting the borrower, the borrower's industry, or the overall economic environment. Borrowers may reflect weaknesses such as inconsistent or weak earnings, break even or moderately deficit cash flow, thin liquidity, minimal capacity to increase leverage, or volatile market fundamentals or other industry risks. Such loans are typically secured by acceptable collateral, at or near appropriate margins, with realizable liquidation values. Special Mention A special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company's credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Borrowers may exhibit poor liquidity and leverage positions resulting from generally negative cash flow or negative trends in earnings. Access to alternative financing may be limited to finance companies for business borrowers and may be unavailable for commercial real estate borrowers. Substandard A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Borrowers may exhibit recent or unexpected unprofitable operations, an inadequate debt service coverage ratio, or marginal liquidity and capitalization. These loans require more intense supervision by Company management. Doubtful A doubtful loan has all the weaknesses inherent as a substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Above Pass Special March 31, 2017 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 9,305,789 $ 124,195,844 $ 66,024,788 $ 11,965,627 $ 7,413,954 $ 4,384,409 $ - $ 223,290,411 Construction and land development - 176,850 8,240,555 2,267,264 1,498,357 1,234,605 571,162 - 13,988,793 Residential 84,285 2,083,546 40,223,900 11,475,228 1,816,600 - 660,150 - 56,343,709 Commercial 1,653,640 37,541 16,235,830 2,289,357 522,409 155,296 - - 20,894,073 Consumer 25,452 115,136 451,895 67,136 - - 3,440 24,510 687,569 $ 1,763,377 $ 11,718,862 $ 189,348,024 $ 82,123,773 $ 15,802,993 $ 8,803,855 $ 5,619,161 $ 24,510 $ 315,204,555 Above Pass Special December 31, 2016 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 9,584,756 $ 147,668,371 $ 32,474,566 $ 3,883,813 $ 8,644,563 $ 3,889,007 $ - $ 206,145,076 Construction and land development - 178,078 10,178,876 2,039,090 - 153,611 1,843,337 - 14,392,992 Residential 110,142 2,811,362 42,715,571 8,059,118 351,182 - 663,434 - 54,710,809 Commercial 1,666,880 77,745 18,469,572 1,228,598 545,212 164,766 - - 22,152,773 Consumer 42,577 121,306 476,465 51,339 - - 3,840 29,742 725,269 $ 1,819,599 $ 12,773,247 $ 219,508,855 $ 43,852,711 $ 4,780,207 $ 8,962,940 $ 6,399,618 $ 29,742 $ 298,126,919 The Company’s allowance for loan losses is based on management’s evaluation of the risks inherent in the Company’s loan portfolio and the general economy. The allowance for loan losses is maintained at the amount management considers adequate to cover estimated losses in loans receivable that are deemed probable based on information currently known to management. The allowance is based upon a number of factors, including current economic conditions, actual loss experience by pools of similar loans, diversification and size of the portfolio, adequacy of the collateral, the amount of non-performing loans and industry trends. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to make additional provisions for estimated loan losses based upon judgments different from those of management. Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: March 31, 2017 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,717,749 $ (193) $ - $ 890 $ 1,718,446 $ - $ 1,718,446 $ 3,060,269 $ 220,230,142 Construction and land development 204,860 90,411 - - 295,271 86,859 208,412 571,161 13,417,632 Residential 247,437 28,185 - 148 275,770 - 275,770 - 56,343,709 Commercial 125,260 (31,963) - - 93,297 - 93,297 155,296 20,738,777 Consumer 8,826 (817) - - 8,009 - 8,009 - 687,569 Unallocated 58,954 (35,623) - - 23,331 - 23,331 - - $ 2,363,086 $ 50,000 $ - $ 1,038 $ 2,414,124 $ 86,859 $ 2,327,265 $ 3,786,726 $ 311,417,829 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: March 31, 2016 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,718,256 $ 96,026 $ - $ - $ 1,814,282 $ - $ 1,814,282 $ 2,425,089 $ 178,552,626 Construction and land development 306,982 (26,612) - - 280,370 129,452 150,918 2,219,985 11,068,961 Residential 322,084 (41,098) - 54,888 335,874 - 335,874 - 53,530,926 Commercial 132,362 29,692 - - 162,054 - 162,054 192,017 19,174,835 Consumer 7,900 1,133 - - 9,033 - 9,033 - 839,852 Unallocated 95,861 (59,141) - - 36,720 - 36,720 - - $ 2,583,445 $ - $ - $ 54,888 $ 2,638,333 $ 129,452 $ 2,508,881 $ 4,837,091 $ 263,167,200 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2016 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,718,256 $ 29,493 $ (30,000) $ - $ 1,717,749 $ 7,580 $ 1,710,169 $ 2,425,089 $ 203,719,987 Construction and land development 306,982 97,878 (200,000) - 204,860 16,587 188,273 752,889 13,640,103 Residential 322,084 (184,773) - 110,126 247,437 - 247,437 - 54,710,809 Commercial 132,362 93,383 (100,485) - 125,260 - 125,260 164,766 21,988,007 Consumer 7,900 926 - - 8,826 - 8,826 - 725,269 Unallocated 95,861 (36,907) - - 58,954 - 58,954 - - $ 2,583,445 $ - $ (330,485) $ 110,126 $ 2,363,086 $ 24,167 $ 2,338,919 $ 3,342,744 $ 294,784,175 | 6. Loans 2016 2015 Real estate: Commercial $ 206,145,076 $ 186,703,868 Construction and land development 14,392,992 12,820,165 Residential 54,710,809 51,290,828 Commercial 22,152,773 19,562,302 Consumer 725,269 886,175 298,126,919 271,263,338 Less: Allowance for loan losses 2,363,086 2,583,445 Deferred origination fees net of costs 477,261 430,491 $ 295,286,572 $ 268,249,402 2016 2015 Variable rate, immediately $ 41,628,685 $ 27,803,011 Due within one year 48,381,221 33,826,370 Due over one to five years 126,810,275 153,408,126 Due over five years 81,306,738 56,225,831 $ 298,126,919 $ 271,263,338 2016 2015 Commercial real estate $ 752,889 $ 956,813 At December 31, 2016, the Company had two nonaccrual construction and land development loans to one borrower totaling $ 752,889 38,028 16,587 400,000 At December 31, 2015, the Company had two nonaccrual construction and land development loans to one borrower totaling $ 956,813 35,631 167,211 200,000 An age analysis of past due loans, segregated by class of loans, as of year-end, is as follows: 90 Days Past Due 90 30 - 59 Days 60 - 89 Days or More Total Total Days or More Past Due Past Due Past Due Past Due Current Loans and Accruing December 31, 2016 Real estate: Commercial $ - $ - $ - $ - $ 206,145,076 $ 206,145,076 $ - Construction and land development - - 752,889 752,889 13,640,103 14,392,992 - Residential 824,554 - - 824,554 53,886,255 54,710,809 - Commercial 48,719 - - 48,719 22,104,054 22,152,773 - Consumer - - - - 725,269 725,269 - Total $ 873,273 $ - $ 752,889 $ 1,626,162 $ 296,500,757 $ 298,126,919 $ - December 31, 2015 Real estate: Commercial $ - $ - $ - $ - $ 186,703,868 $ 186,703,868 $ - Construction and land development - - 956,813 956,813 11,863,352 12,820,165 - Residential - - - - 51,290,828 51,290,828 - Commercial - - - - 19,562,302 19,562,302 - Consumer - - - - 886,175 886,175 - Total $ - $ - $ 956,813 $ 956,813 $ 270,306,525 $ 271,263,338 $ - Year-end impaired loans, segregated by class of loans, are set forth in the following table: Unpaid Recorded Recorded Contractual Investment Investment Total Average Principal With No With Recorded Related Recorded Interest Balance Allowance Allowance Investment Allowance Investment Recognized December 31, 2016 Real estate: Commercial $ 2,455,090 $ 2,183,509 $ 241,580 $ 2,425,089 $ 7,580 $ 2,332,568 $ 125,260 Construction and land development 1,152,889 - 752,889 752,889 16,587 854,851 - Commercial 164,766 164,766 - 164,766 - 184,201 14,442 $ 3,772,745 $ 2,348,275 $ 994,469 $ 3,342,744 $ 24,167 $ 3,371,620 $ 139,702 December 31, 2015 Real estate: Commercial $ 2,240,046 $ 2,240,046 $ - $ 2,240,046 $ - $ 2,281,563 $ 115,663 Construction and land development 1,156,813 - 956,813 956,813 167,211 478,407 13,540 Commercial 203,635 203,635 - 203,635 - 220,421 15,644 $ 3,600,494 $ 2,443,681 $ 956,813 $ 3,400,494 $ 167,211 $ 2,980,391 $ 144,847 Impaired loans also include certain loans that have been modified in troubled debt restructurings (“TDRs”) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company's loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months. At December 31, 2016, the Company had three loans classified as a troubled debt restructuring. All are included in impaired loans above. The first is a commercial real estate loan with a balance of $ 2,183,509 164,766 271,580 241,580 30,000 7,580 At December 31, 2015, the Company had two loans classified as a troubled debt restructuring. Both are included in impaired loans above. The first is a commercial real estate loan with a balance of $ 2,240,046 203,635 As part of our portfolio risk management, the Company assigns a risk grade to each loan. The factors used to determine the grade are the payment history of the loan and the borrower, the value of the collateral and net worth of the guarantor, and cash flow projections of the borrower. Excellent, Above Average, Average and Acceptable grades are assigned to loans with limited or no delinquent payments and more than sufficient collateral and/or cash flow. A description of the general characteristics of loans characterized as watch list or classified is as follows: Pass/Watch Loans graded as Pass/Watch are secured by generally acceptable assets which reflect above-average risk. The loans warrant closer scrutiny by management than is routine, due to circumstances affecting the borrower, the borrower's industry, or the overall economic environment. Borrowers may reflect weaknesses such as inconsistent or weak earnings, break even or moderately deficit cash flow, thin liquidity, minimal capacity to increase leverage, or volatile market fundamentals or other industry risks. Such loans are typically secured by acceptable collateral, at or near appropriate margins, with realizable liquidation values. Special Mention A special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank's credit position at some future date. Special mention loans are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Borrowers may exhibit poor liquidity and leverage positions resulting from generally negative cash flow or negative trends in earnings. Access to alternative financing may be limited to finance companies for business borrowers and may be unavailable for commercial real estate borrowers. Substandard A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Borrowers may exhibit recent or unexpected unprofitable operations, an inadequate debt service coverage ratio, or marginal liquidity and capitalization. These loans require more intense supervision by Bank management. Doubtful A doubtful loan has all the weaknesses inherent as a substandard loan w ith the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans by credit grade, segregated by loan type, at year-end, are as follows: Above Pass Special December 31, 2016 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 9,584,756 $ 147,668,371 $ 32,474,566 $ 3,883,813 $ 8,644,563 $ 3,889,007 $ - $ 206,145,076 Construction and land development - 178,078 10,178,876 2,039,090 - 153,611 1,843,337 - 14,392,992 Residential 110,142 2,811,362 42,715,571 8,059,118 351,182 - 663,434 - 54,710,809 Commercial 1,666,880 77,745 18,469,572 1,228,598 545,212 164,766 - - 22,152,773 Consumer 42,577 121,306 476,465 51,339 - - 3,840 29,742 725,269 $ 1,819,599 $ 12,773,247 $ 219,508,855 $ 43,852,711 $ 4,780,207 $ 8,962,940 $ 6,399,618 $ 29,742 $ 298,126,919 Above Pass Special December 31, 2015 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 11,100,467 $ 151,135,140 $ 11,019,894 $ 3,505,988 $ 6,162,661 $ 3,779,718 $ - $ 186,703,868 Construction and land development - 285,534 10,037,269 418,834 - - 2,078,528 - 12,820,165 Residential 181,662 3,478,378 43,722,191 2,502,477 731,122 - 674,998 - 51,290,828 Commercial 1,932,013 46,401 14,685,120 1,184,530 199,950 203,635 1,310,653 - 19,562,302 Consumer 67,862 253,706 481,073 11,207 46,802 - - 25,525 886,175 $ 2,181,537 $ 15,164,486 $ 220,060,793 $ 15,136,942 $ 4,483,862 $ 6,366,296 $ 7,843,897 $ 25,525 $ 271,263,338 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2016 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,718,256 $ 29,493 $ (30,000) $ - $ 1,717,749 $ 7,580 $ 1,710,169 $ 2,425,089 $ 203,719,987 Construction and land development 306,982 97,878 (200,000) - 204,860 16,587 188,273 752,889 13,640,103 Residential 322,084 (184,773) - 110,126 247,437 - 247,437 - 54,710,809 Commercial 132,362 93,383 (100,485) - 125,260 - 125,260 164,766 21,988,007 Consumer 7,900 926 - - 8,826 - 8,826 - 725,269 Unallocated 95,861 (36,907) - - 58,954 - 58,954 - - $ 2,583,445 $ - $ (330,485) $ 110,126 $ 2,363,086 $ 24,167 $ 2,338,919 $ 3,342,744 $ 294,784,175 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2015 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,848,163 $ (129,907) $ - $ - $ 1,718,256 $ - $ 1,718,256 $ 2,240,046 $ 184,463,822 Construction and land development 458,211 48,771 (200,000) - 306,982 167,211 139,771 956,813 11,863,352 Residential 278,943 42,299 - 842 322,084 - 322,084 - 51,290,828 Commercial 171,104 (41,096) - 2,354 132,362 - 132,362 203,635 19,358,667 Consumer 8,215 (315) - - 7,900 - 7,900 - 886,175 Unallocated 15,613 80,248 - - 95,861 - 95,861 - - $ 2,780,249 $ - $ (200,000) $ 3,196 $ 2,583,445 $ 167,211 $ 2,416,234 $ 3,400,494 $ 267,862,844 Loans with a balance of approximately $ 61 41 31.0 27.5 The Company makes loans to customers located primarily in Baltimore County and Carroll County, Maryland and in surrounding areas of northern Maryland. Although the loan portfolio is diversified, many loans are secured by real estate and its performance will be influenced by the economy of the region, including local real estate markets. |
Capital Standards
Capital Standards | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | ||
Regulatory Capital Requirements under Banking Regulations [Text Block] | 5. Capital Standards The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional, discretionary actions by the regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules became effective for the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital, and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). In connection with the adoption of the Basel III Capital Rules, the Bank elected to opt-out of the requirement to include accumulated other comprehensive income in Common Equity Tier 1 capital. Common Equity Tier 1 capital for the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Under the revised prompt corrective action requirements, as of January 1, 2015, insured depository institutions are required to meet the following in order to qualify as "well capitalized:" (1) a common equity Tier 1 risk-based capital ratio of 6.5%; (2) a Tier 1 risk-based capital ratio of 8%; (3) a total risk-based capital ratio of 10%; and (4) a Tier 1 leverage ratio of 5%. Management believes that, as of March 31, 2017, the Bank met all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were fully in effect. The implementation of the capital conservation buffer will begin on January 1, 2016, at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of March 31, 2017 and December 31, 2016, for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of March 31, 2017 and December 31, 2016, based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. As of March 31, 2017, the most recent notification from the FDIC has categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Bank's category. Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized March 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) 42,159 12.75 % 30,576 9.25 % 33,055 10.00 % Tier 1 capital (to risk-weighted assets) 39,745 12.02 % 23,965 7.25 % 26,444 8.00 % Common equity tier 1 (to risk-weighted assets) 39,745 12.02 % 19,006 5.75 % 21,486 6.50 % Tier 1 leverage (to average assets) 39,745 10.29 % 15,446 4.00 % 19,307 5.00 % Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) 41,385 13.18 % 27,076 8.63 % 31,392 10.00 % Tier 1 capital (to risk-weighted assets) 39,022 12.43 % 20,797 6.63 % 25,114 8.00 % Common equity tier 1 (to risk-weighted assets) 39,022 12.43 % 16,089 5.13 % 20,405 6.50 % Tier 1 leverage (to average assets) 39,022 10.39 % 15,025 4.00 % 18,781 5.00 % Capital ratios of the Company are substantially the same as the Bank’s. | 15. Capital Standards The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional, discretionary actions by the regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules became effective for the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1 capital, Tier 1 capital, and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to adjusted quarterly average assets (as defined). In connection with the adoption of the Basel III Capital Rules, the Bank elected to opt-out of the requirement to include accumulated other comprehensive income in Common Equity Tier 1 capital. Common Equity Tier 1 capital for the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Under the revised prompt corrective action requirements, as of January 1, 2015, insured depository institutions are required to meet the following in order to qualify as "well capitalized:" (1) a common equity Tier 1 risk-based capital ratio of 6.5%; (2) a Tier 1 risk-based capital ratio of 8%; (3) a total risk-based capital ratio of 10%; and (4) a Tier 1 leverage ratio of 5%. Management believes that, as of December 31, 2016, the Bank met all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were fully in effect. The implementation of the capital conservation buffer will begin on January 1, 2016, at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer (or below the combined capital conservation buffer and countercyclical capital buffer, when the latter is applied) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of December 31, 2016 and 2015, for the Bank under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2016 and 2015, based on the phase-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. As of December 31, 2016, the most recent notification from the FDIC has categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain ratios as set forth in the table. There have been no conditions or events since that notification that management believes have changed the Bank's category. Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Restated Restated Total capital (to risk-weighted assets) 41,385 13.18 % 27,076 8.63 % 31,392 10.00 % Tier 1 capital (to risk-weighted assets) 39,022 12.43 % 20,797 6.63 % 25,114 8.00 % Common equity tier 1 (to risk- weighted assets) 39,022 12.43 % 16,089 5.13 % 20,405 6.50 % Tier 1 leverage (to average assets) 39,022 10.39 % 15,025 4.00 % 18,781 5.00 % Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) 38,908 13.69 % 22,739 8.00 % 28,424 10.00 % Tier 1 capital (to risk-weighted assets) 36,325 12.78 % 17,055 6.00 % 22,739 8.00 % Common equity tier 1 (to risk- weighted assets) 36,325 12.78 % 12,791 4.50 % 18,476 6.50 % Tier 1 leverage (to average assets) 36,325 10.64 % 13,662 4.00 % 17,077 5.00 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 5. Related Party Transactions Certain executive officers and directors of the Company, including members of their immediate families and companies in which they are significant owners (more than 10%), were indebted to the Company. The loans were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with borrowers who are not related to the Company. 2016 2015 Balance, beginning of year $ 13,148,726 $ 12,732,702 Additions 3,987,121 3,473,398 Amounts collected (4,205,038) (3,057,374) Change in related parties (148,576) - Balance, end of year $ 12,782,233 $ 13,148,726 Unused lines of credit to related parties totaled $ 2,220,128 2,240,340 6,534 Deposits at the Company from related parties totaled $ 15,933,380 13,732,380 Payments to companies controlled by directors totaled $ 2,697 90,479 82 2,779 1,000 3,000 |
Fair Value
Fair Value | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Disclosures [Text Block] | 6. Fair Value Accounting standards define fair value as the price that would be received upon the sale of an asset or paid upon the transfer of a liability in an orderly transaction between market participants. The price in the principal market used to measure the fair value of the asset or liability is not adjusted for transaction costs. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The standards require the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. The standards establish a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ⋅ Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ⋅ Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. ⋅ Level 3: Significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company uses the following methods and significant assumptions to estimate the fair values of the following assets: ⋅ Securities available for sale: The fair values of securities available for sale are determined by obtaining quoted prices from a nationally recognized securities pricing agent. If quoted market prices are not available, fair value is determined using quoted market prices for similar securities. ⋅ Other real estate owned (“OREO”): Nonrecurring fair value adjustments to OREO reflect full or partial write-downs that are based on the OREO’s observable market price or current appraised value of the real estate. Since the market for OREO is not active, OREO subjected to nonrecurring fair value adjustments based on the current appraised value of the real estate are classified as Level 3. The appraised value is obtained annually from an independent third party appraiser and is reduced by expected sales costs, which has historically been 10% of the appraised value. ⋅ Impaired loans: Nonrecurring fair value adjustments to impaired loans reflect full or partial write-downs and reserves that are based on the impaired loan’s observable market price or current appraised value of the collateral. Since the market for impaired loans is not active, such loans subjected to nonrecurring fair value adjustments based on the current appraised value of the collateral are classified as Level 3. The appraised value is obtained annually from an independent third party appraiser and is reduced by expected sales costs, which has historically been 10% of the appraised value. Carrying Value: Level 1 Level 2 Level 3 Total March 31, 2017 Recurring Available for sale securities State and municipal $ - $ 1,562,700 $ - $ 1,562,700 Mutual Fund 495,216 - - 495,216 SBA pools - 2,798,485 - 2,798,485 Mortgage-backed securities - 28,377,892 - 28,377,892 $ 495,216 $ 32,739,077 $ - $ 33,234,293 Nonrecurring Other real estate owned $ - $ - $ 414,000 $ 414,000 Impaired loans - - 3,699,867 3,699,867 December 31, 2015 Recurring Available for sale securities State and municipal $ - $ 1,566,327 $ - $ 1,566,327 Mutual Fund 492,243 - - 492,243 SBA pools - 2,263,834 - 2,263,834 Mortgage-backed securities - 30,063,535 - 30,063,535 $ 492,243 $ 33,893,696 $ - $ 34,385,939 Nonrecurring Other real estate owned $ - $ - $ 414,000 $ 414,000 Impaired loans - - 3,318,577 3,318,577 Reconciliation of Level 3 Inputs Other Real Impaired Estate Owned Loans December 31, 2016 balance $ 414,000 $ 3,318,577 Additions - 667,331 Advances - 221,677 Loan loss provision - (62,692) Principal payments received - (445,026) March 31, 2017 balance $ 414,000 $ 3,699,867 March 31, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 1 inputs Cash and cash equivalents $ 18,693,431 $ 18,693,431 $ 13,312,915 $ 13,312,915 Level 2 inputs Securities held to maturity 18,105,982 18,027,936 17,987,628 17,833,799 Mortgage loans held for sale - - 884,500 902,061 Federal Home Loan Bank stock 893,600 893,600 778,300 778,300 Level 3 inputs Loans, net 312,287,255 313,825,255 295,286,572 297,982,000 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 58,640,811 $ 58,640,811 $ 62,791,835 $ 62,791,835 Securities sold under repurchase agreements 28,037,122 28,037,122 27,226,159 27,226,159 Level 2 inputs Interest-bearing deposits 256,984,003 246,279,003 239,923,301 230,394,000 Federal Home Loan Bank advances 13,000,000 12,958,000 9,000,000 8,975,000 The fair value of mortgage loans held for sale is determined by the expected sales price. The fair values of fixed-rate loans are estimated to be the present values of scheduled payments discounted using interest rates currently in effect. The fair values of variable-rate loans, including loans with a demand feature, are estimated to equal the carrying amount. The valuation of a loan is adjusted for probable loan losses. The fair values of interest-bearing checking, savings, and money market deposit accounts are equal to their carrying amounts. The fair values of fixed-maturity time deposits are estimated based on interest rates currently offered for deposits of similar remaining maturities. The fair value of credit commitments are considered to be the same as the contractual amounts, and are not included in the table above. These commitments generate fees that approximate those currently charged to originate similar commitments. | 16. Fair Value Accounting standards define fair value as the price that would be received upon the sale of an asset or paid upon the transfer of a liability in an orderly transaction between market participants. The price in the principal market used to measure the fair value of the asset or liability is not adjusted for transaction costs. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The standards require the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. The standards establish a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: · Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. · Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. · Level 3: Significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company uses the following methods and significant assumptions to estimate the fair values of the following assets: · Securities available for sale: The fair values of securities available for sale are determined by obtaining quoted prices from a nationally recognized securities pricing agent. If quoted market prices are not available, fair value is determined using quoted market prices for similar securities. · Other real estate owned (“OREO”): Nonrecurring fair value adjustments to OREO reflect full or partial write-downs that are based on the OREO’s observable market price or current appraised value of the real estate. Since the market for OREO is not active, OREO subjected to nonrecurring fair value adjustments based on the current appraised value of the real estate are classified as Level 3. The appraised value is obtained annually from an independent third party appraiser and is reduced by expected sales costs, which has historically been 10% of the appraised value. · Impaired loans: Nonrecurring fair value adjustments to impaired loans reflect full or partial write-downs and reserves that are based on the impaired loan’s observable market price or current appraised value of the collateral. Since the market for impaired loans is not active, such loans subjected to nonrecurring fair value adjustments based on the current appraised value of the collateral are classified as Level 3. The appraised value is obtained annually from an independent third party appraiser and is reduced by expected sales costs, which has historically been 10% of the appraised value. The following table summarizes financial assets measured at fair value on a recurring and nonrecurring basis as of December 31, 2016 and 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Carrying Value: Level 1 Level 2 Level 3 Total December 31, 2016 Recurring Available for sale securities State and municipal $ - $ 1,566,327 $ - $ 1,566,327 Mutual Fund 492,243 - - 492,243 SBA pools - 2,263,834 - 2,263,834 Mortgage-backed securities - 30,063,535 - 30,063,535 $ 492,243 $ 33,893,696 $ - $ 34,385,939 Nonrecurring Other real estate owned $ - $ - $ 414,000 $ 414,000 Impaired loans - - 3,318,577 3,318,577 December 31, 2015 Recurring Available for sale securities State and municipal $ - $ 1,349,242 $ - $ 1,349,242 Mortgage-backed securities - 22,295,342 - 22,295,342 $ - $ 23,644,584 $ - $ 23,644,584 Nonrecurring Other real estate owned $ - $ - $ 472,500 $ 472,500 Impaired loans - - 3,233,283 3,233,283 Estate Owned Loans December 31, 2015 balance $ 472,500 $ 3,233,283 Additions - 271,580 Advances - 604,695 Write-downs (58,500) (230,000) Loan loss provision - 143,044 Principal payments received - (704,025) December 31, 2016 balance $ 414,000 $ 3,318,577 The estimated fair value of financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of the valuation inputs were as follows: December 31, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 1 inputs Restated Restated Cash and cash equivalents $ 13,312,915 $ 13,312,915 $ 20,192,939 $ 20,192,939 Level 2 inputs Securities held to maturity 17,987,628 17,833,799 16,604,067 16,886,897 Mortgage loans held for sale 884,500 902,061 - - Federal Home Loan Bank stock 778,300 778,300 758,100 758,100 Level 3 inputs Loans, net 295,286,572 297,982,000 268,249,402 269,852,000 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 62,791,835 $ 62,791,835 $ 58,043,942 $ 58,043,942 Securities sold under repurchase agreements 27,226,159 27,226,159 20,490,619 20,490,619 Level 2 inputs Interest-bearing deposits 239,923,301 230,394,000 217,920,795 211,316,000 Federal Home Loan Bank advances 9,000,000 8,975,000 11,000,000 11,006,000 The fair value of mortgage loans held for sale is determined by the expected sales price. The fair values of fixed-rate loans are estimated to be the present values of scheduled payments discounted using interest rates currently in effect. The fair values of variable-rate loans, including loans with a demand feature, are estimated to equal the carrying amount. The valuation of a loan is adjusted for probable loan losses. The fair values of interest-bearing checking, savings, and money market deposit accounts are equal to their carrying amounts. The fair values of fixed-maturity time deposits are estimated based on interest rates currently offered for deposits of similar remaining maturities. The fair value of credit commitments are considered to be the same as the contractual amounts, and are not included in the table above. These commitments generate fees that approximate those currently charged to originate similar commitments. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 7. Earnings per Share Three Months Three Months March 31, March 31, Net income $ 983,557 $ 936,468 Weighted average shares outstanding 1,656,390 1,647,541 Earnings per share - basic and diluted $ 0.59 $ 0.57 There were no potentially dilutive shares outstanding during the three months ended March 31, 2017 or 2016. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 7. Premises and Equipment A summary of premises and equipment is as follows: Useful lives 2016 2015 Land and improvements - $ 1,952,998 $ 1,952,998 Buildings and improvements 15-39 years 5,659,635 5,659,635 Furniture and equipment 3-10 years 3,490,526 3,308,986 11,103,159 10,921,619 Accumulated depreciation and amortization 5,653,481 5,273,686 $ 5,449,678 $ 5,647,933 Depreciation and amortization expense $ 379,795 $ 339,269 Software with a net book value of $ 185,253 251,983 $ 69,100 46,442 |
Post-retirement plans
Post-retirement plans | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. Post-retirement plans The Company has a profit sharing plan qualifying under Section 401(k) of the Internal Revenue Code. All employees age 21 or more with six months of service are eligible for participation in the plan. The Company matches employee contributions up to 4 100 43,460 40,455 The Company has entered into agreements with 12 employees to provide certain life insurance benefits payable in connection with policies of life insurance on those employees that are owned by the Company. Each of the agreements provides for the amount of death insurance benefits to be paid to beneficiaries of the insured. For this plan, the Company expensed $ 1,307 1,204 In 2010 and 2015, the Company adopted supplemental executive retirement plans for three of its executives. The plans provide cash compensation to the executive officers under certain circumstances, including a separation of service. The benefits vest over the period from adoption to a specified age for each executive. The Company recorded expenses, including interest, of $ 63,600 62,392 Retirement plan expenses are included in employee benefits on the consolidated statements of income. | 10. Retirement Plans The Company has a profit sharing plan qualifying under Section 401(k) of the Internal Revenue Code. All employees age 21 or more with six months of service are eligible for participation in the plan. The Company matches employee contributions up to 4 100 165,224 153,534 The Company has entered into agreements with 12 employees to provide certain life insurance benefits payable in connection with policies of life insurance on those employees that are owned by the Company. Each of the agreements provides for the amount of death insurance benefits to be paid to beneficiaries of the insured. For this plan, the Company expensed $ 4,816 4,433 In 2010 and 2015, the Company adopted supplemental executive retirement plans for three of its executives. The plans provide cash compensation to the executive officers under certain circumstances, including a separation of service. The benefits vest over the period from adoption to a specified age for each executive. The Company recorded expenses, including interest, of $ 240,193 228,929 Retirement plan expenses are included in employee benefits on the consolidated statements of income. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 8. Lease Commitments The Company has an operating lease for the land on which the Hampstead branch is located. The initial term of the lease expired on September 30, 2009 and the lease has been renewed for two five year terms with an expiration date of September 30, 2019. The lease has options to renew for six additional consecutive five-year terms. Effective in July 2012, the Company entered into an operating lease for certain facilities where the Greenmount branch is located. The initial term of the lease is for five years with options to renew for two additional consecutive five-year terms. The Company has an operating lease for its Atrium branch facility with a term of one year and nine one-year renewals. The lease was renewed in 2016 for another year. The Company entered into an operating lease for the corporate headquarters in September 2015. The lease expires in September 2020 with options to renew for four additional consecutive five year terms. Future minimum payments under the agreements are as follows: Year Amount 2017 $ 108,993 2018 83,835 2019 72,678 2020 24,303 2021 - Thereafter - $ 289,809 Rent expense was $ 128,200 103,140 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 9. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued. No significant subsequent events were identified which would affect the presentation of the financial statements. |
Credit Commitments
Credit Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Credit Commitments [Text Block] | 9. Credit Commitments Outstanding loan commitments, unused lines of credit, and letters of credit as of December 31, are as follows: 2016 2015 Loan commitments Construction and land development $ 250,000 $ - Commercial 1,050,000 482,000 Commercial real estate 17,134,718 14,898,000 Residential 3,894,689 4,766,130 $ 22,329,407 $ 20,146,130 Unused lines of credit Home-equity lines $ 3,345,309 $ 3,307,863 Commercial lines 27,182,226 33,231,204 $ 30,527,535 $ 36,539,067 Letters of credit $ 1,281,848 $ 1,408,460 Loan commitments and lines of credit are agreements to lend to a customer as long as there is no violation of any condition to the contract. Loan commitments generally have interest rates at current market amounts, fixed expiration dates, and may require payment of a fee. Lines of credit generally have variable interest rates. Such lines do not represent future cash requirements because it is unlikely that all customers will draw upon their lines in full at any time. Letters of credit are commitments issued to guarantee the performance of a customer to a third party. The maximum exposure to credit loss in the event of nonperformance by the customer is the contractual amount of the commitment. Loan commitments, lines of credit and letters of credit are made on the same terms, including collateral, as outstanding loans. Management is not aware of any accounting loss that is likely to be incurred as a result of funding its credit commitments. |
Interest-Bearing Deposits
Interest-Bearing Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | 11. Interest-Bearing Deposits 2016 2015 NOW $ 40,090,252 $ 35,533,282 Money market 64,859,044 52,598,431 Savings 40,158,833 36,343,747 Certificates of deposit, $250,000 or more 15,233,383 16,979,039 Other time deposits 79,581,789 76,466,296 $ 239,923,301 $ 217,920,795 Year Amount 2017 $ 44,931,000 2018 22,124,546 2019 20,824,692 2020 3,325,772 2021 3,509,162 Thereafter 100,000 $ 94,815,172 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 12. Borrowed Funds 2016 2015 Amounts outstanding at year-end: Securities sold under repurchase agreements $ 27,226,159 $ 20,490,619 Federal Home Loan Bank advances $ 9,000,000 $ 11,000,000 Federal Home Loan Bank advances mature in: 2016 $ - $ 5,000,000 2017 2,000,000 1,000,000 2018 5,000,000 5,000,000 2019 2,000,000 - Weighted average rate paid at December 31: Securities sold under repurchase agreements 0.63 % 0.53 % Federal Home Loan Bank advances 1.11 % 0.94 % Maximum month-end amount outstanding: Securities sold under repurchase agreements $ 32,287,740 $ 20,655,156 Federal Home Loan Bank advances 16,000,000 11,000,000 Average amount outstanding: Securities sold under repurchase agreements $ 25,320,795 $ 18,582,245 Federal Home Loan Bank advances 10,833,333 10,778,082 Borrowings from FRB and commercial banks 21,861 2,742 Average rate paid during the year: Securities sold under repurchase agreements 0.64 % 0.54 % Federal Home Loan Bank advances 0.94 % 0.75 % Borrowings from FRB and commercial banks 0.67 % 0.52 % Investment securities underlying the repurchase agreements at year end: Carrying value $ 28,191,745 $ 21,127,194 Estimated fair value 28,165,979 21,355,393 Loans pledged to the Federal Home Loan Bank at year-end: Carrying value $ 60,858,326 $ 57,812,753 Loans pledged to the Federal Reserve Bank at year-end: Carrying value $ 40,954,231 $ 34,487,029 The Company is approved to borrow approximately $ 53.3 30.3 2 9 |
Other Noninterest Expenses
Other Noninterest Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 13. Other Noninterest Expenses Other noninterest expenses include the following: 2016 2015 Automated teller machine and debit card expenses $ 331,368 $ 263,220 Professional services 311,702 224,333 Advertising 217,116 196,112 Directors fees 189,263 188,476 Stationery, printing, and supplies 188,070 153,491 Telephone 185,532 149,375 Postage, delivery, and armored carrier 179,344 179,109 Federal Deposit Insurance Corporation premiums 147,940 168,135 Internet banking fees 143,210 111,471 Correspondent bank services 79,278 63,240 Travel and conferences 48,970 56,173 Liability insurance 46,917 46,880 Maryland state regulatory assessment 41,531 39,279 Dues and subscriptions 39,752 37,538 Remote deposit expenses 29,722 28,782 Credit reports 25,276 21,619 Contributions 23,160 22,715 Education and training 15,669 11,378 Other real estate owned 15,252 32,695 Other 97,422 88,113 $ 2,356,494 $ 2,082,134 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 14. Income Taxes 2016 2015 Restated Current Federal $ 1,355,273 $ 1,893,991 State 364,394 541,064 1,719,667 2,435,055 Deferred 307,153 95,150 $ 2,026,820 $ 2,530,205 2016 2015 Restated Depreciation $ (46,226) $ 106,757 Provision for loan losses 96,206 31,094 Other real estate owned allowance for loss (23,075) 63,403 Nonaccrual interest (15,000) (14,054) Prepaid captive insurance premium 393,735 - Post-retirement benefits (96,624) (92,050) $ 309,016 $ 95,150 Deferred tax assets Allowance for loan losses $ 765,966 $ 862,172 Other real estate owned allowance for loss 246,925 223,850 Write-down of equity securities 5,522 5,522 Nonaccrual interest 29,055 14,054 Post-retirement benefits 520,410 423,786 Unrealized loss on securities available for sale 182,588 66,522 1,750,466 1,595,906 Deferred tax liabilities Prepaid captive insurance premium 393,735 - Depreciation 329,575 375,801 723,310 375,801 Net deferred tax asset $ 1,027,156 $ 1,220,105 The differences between the federal income tax rate of 34% and the effective tax rate for the Company are reconciled as follows: Statutory federal income tax rate 34.0 % 34.0 % Increase (decrease) resulting from: Federal tax-exempt income (4.9) (2.2) State income taxes, net of federal income tax benefit 4.9 5.2 Nondeductible expenses 0.1 0.1 Other - 0.1 34.1 % 37.2 % Included in Federal tax-exempt income is the insurance premium revenue of the Insurance Subsidiary. The Company does not have material uncertain tax positions and did not recognize any adjustments for unrecognized tax benefits. The Company remains subject to examination of income tax returns for the years ending after December 31, 2012. |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 17. Quarterly Results of Operations Three Months Ended Unaudited 2016 December 31 September 30 June 30 March 31 Restated Interest income $ 3,992,191 $ 3,856,566 $ 3,731,160 $ 3,771,580 Interest expense 368,885 340,099 322,540 314,596 Net interest income 3,623,306 3,516,467 3,408,620 3,456,984 Provision for loan losses - - - - Net income 1,016,101 1,040,372 916,188 936,468 Earnings per share - basic and diluted $ 0.61 $ 0.63 $ 0.56 $ 0.57 2015 December 31 September 30 June 30 March 31 Interest income $ 3,728,982 $ 3,685,503 $ 3,671,377 $ 3,619,539 Interest expense 313,295 303,055 289,256 284,040 Net interest income 3,415,687 3,382,448 3,382,121 3,335,499 Provision for loan losses (15,000) - - 15,000 Net income 1,081,074 1,236,261 1,022,579 928,308 Earnings per share - basic and diluted $ 0.66 $ 0.75 $ 0.63 $ 0.57 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | 18. Litigation In the ordinary course of its business, the Company is periodically party to various legal actions normally associated with a financial institution. Management does not believe that any of these normal course proceedings are likely to have a material adverse effect on the financial condition or liquidity of the Company. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Consolidation, Policy [Policy Text Block] | Principles of consolidation The consolidated financial statements include the accounts of Farmers and Merchants Bancshares, Inc. and its wholly owned subsidiaries, Farmers and Merchants Bank (the “Bank”), and Series Protected Cell FCB-4 (the “Insurance Subsidiary”), and one indirect subsidiary, Reliable Community Financial Services, Inc. (collectively the “Company”, “we”, “us”, or “our”). The Insurance Subsidiary is a series investment, 100 | |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to the 2015 financial statements to conform to the current year presentation. These reclassifications had no effect on net income. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, money market funds, and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. | |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income Comprehensive income includes net income and the unrealized gains or losses on investment securities available for sale, net of income taxes. | |
Investment, Policy [Policy Text Block] | Investment securities As securities are purchased, management determines if the securities should be classified as held to maturity or available for sale. Securities which management has the intent and ability to hold to maturity are recorded at amortized cost, which is cost adjusted for amortization of premiums and accretion of discounts to maturity. Securities held to meet liquidity needs or which may be sold before maturity are classified as available for sale and carried at fair value with unrealized gains and losses included in stockholders' equity on an after-tax basis. Gains and losses on disposal are determined using the specific-identification method. The Company amortizes premiums and accretes discounts using the interest method. | |
Federal Home Loan Bank, Stock [Policy Text Block] | Federal Home Loan Bank stock As a member of the Federal Home Loan Bank, the Bank is required to purchase stock based on its total assets. Additional stock is purchased and redeemed based on the outstanding Federal Home Loan Bank advances to the Bank. The stock is recorded at cost on the balance sheet. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Loans and allowance for loan losses Loans are stated at the current amount of unpaid principal, adjusted for deferred origination costs, deferred origination fees, and the allowance for loan losses. Interest on loans is accrued based on the principal amounts outstanding. Origination fees and costs are amortized to income over the terms of loans. Past due status is based on the contractual terms of the loan. Management may make an exception to reporting a loan as past due, if the past due status is solely due to the loan being past maturity, the Company intends to extend the loan, and the borrower is making principal and interest payments in accordance with the terms of the matured note. The accrual of interest is discontinued when any portion of the principal or interest is 90 days past due and collateral is insufficient to discharge the debt in full. If collection of principal is evaluated as doubtful, all payments are applied to principal. Loans are considered impaired when, based on current information, management considers it unlikely that the collection of principal and interest payments will be made according to contractual terms. Generally, loans are not reviewed for impairment until the accrual of interest has been discontinued or are included on the watch list. The allowance for loan losses represents an amount which, in management’s judgment, will be adequate to absorb probable losses on existing loans and other extensions of credit that may become uncollectible. The Company’s allowance for loan losses consists of three elements: (i) specific valuation allowances determined based on probable losses on specific loans; (ii) historical valuation allowances determined based on historical loan loss experience for similar loans with similar characteristics; and (iii) adjustments to the historical valuation allowances based on general economic conditions and other qualitative risk factors both internal and external to the Company. The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of problem loans. Management maintains a watch list of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor's ability to repay; (ii) the underlying collateral, if any; (iii) the economic environment; and (iv) for commercial borrowers, the industry in which the borrower operates. Specific valuation allowances are determined when the collateral value, if the loan is collateral dependent, or the discounted cash flows of the impaired loan is lower than the carrying value. Historical valuation allowances are calculated based on the historical loss experience of specific types of loans. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool over the prior eight to twenty quarters. As of December 31, 2016 and 2015, management used a twenty quarter period for the historical loss ratio. The historical loss ratios are updated quarterly based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and the total dollar amount of the loans in the pool. Adjustments to the historical valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such adjustments are determined by evaluating, among other things: (i) the impact of economic conditions on the portfolio; (ii) changes in asset quality, including delinquency trends; (iii) the impact of changing interest rates on portfolio risk; (iv) changes in legislative and regulatory policy; (v) the composition and concentrations of credit; and (vi) the effectiveness of the internal loan review function. Management evaluates these qualitative factors on a quarterly basis. Each factor could result in an adjustment that is positive, negative, or no impact. Loan losses are charged to the allowance when management believes that collection is unlikely. Collections of loans previously charged off are added to the allowance at the time of recovery. | |
Loans and Leases Receivable, Mortgage Banking Activities, Policy [Policy Text Block] | Mortgage loans held for sale and mortgage banking income Mortgage loans held for sale are carried at the lower of aggregate cost or fair value based on the current fair value of each outstanding loan. Sales of loans are recorded when the proceeds are received, with any gain or loss recorded in mortgage banking income. The Company sells its mortgage loans to third party investors servicing released. Upon sale and delivery, loans are legally isolated from the Company and the Company has no ability to restrict or constrain the ability of third party investors to pledge or exchange the mortgage loans. The Company does not have the entitlement or ability to repurchase the mortgage loans or unilaterally cause third party investors to put the mortgage loans back to the Company. | |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and equipment Premises and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation on buildings and equipment is computed over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful lives of the asset, whichever is shorter. | |
Real Estate, Policy [Policy Text Block] | Other real estate owned Real estate acquired through foreclosure or by deed in lieu of foreclosure is recorded at the lower of cost or fair value less estimated costs to sell on the date acquired. Losses incurred at the time of acquisition of the property are charged to the allowance for loan losses. Subsequent reductions in the estimated value of the property are included with any gains or losses on sale in noninterest income. | |
Income Tax, Policy [Policy Text Block] | Income taxes The provision for income taxes includes income taxes payable for the current year and deferred income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. | |
Earnings Per Share, Policy [Policy Text Block] | Per share data Earnings per share are determined by dividing net income by the weighted average number of shares of common stock outstanding, giving retroactive effect to any stock dividends. Weighted average shares were 1,652,014 1,633,897 | |
Subsequent Events, Policy [Policy Text Block] | Subsequent events The Company has evaluated events and transactions occurring subsequent to the statement of financial condition date of December 31, 2016 for items that should potentially be recognized or disclosed in these financial statements as prescribed by ASC Topic 855, Subsequent Events. | |
New Accounting Pronouncements, Policy [Policy Text Block] | In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing the financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its financial statements. In December 2014, the FASB issued ASU No. 2014-18, “Business Combinations (Topic 805): Accounting for Identifiable Assets in a Business Combination.” The amendments in ASU 2014-18 allow a private company that elects this accounting alternative to recognize or otherwise consider the fair value of intangible assets as a result of any in-scope transactions should no longer recognize separately from goodwill: (i) customer-related intangible assets unless they are capable of being sold or licensed independently from the other assets of the business, and (ii) noncompetition agreements. An entity that elects the accounting alternative in ASU 2014-18 must adopt the private company alternative to amortize goodwill as described in ASU No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill. However, an entity that elects the accounting alternative in Update 2014-02 is not required to adopt the amendments in this ASU. The decision to adopt the accounting alternative in ASU 2014-18 must be made upon the occurrence of the first transaction within the scope of this accounting alternative (transaction) in fiscal years beginning after December 15, 2015, and the effective date of adoption depends on the timing of that first transaction. If the first transaction occurs in fiscal years beginning after December 15, 2015, the elective adoption will be effective for that fiscal year’s annual financial reporting and all interim and annual periods thereafter. If the first transaction occurs in fiscal years beginning after December 15, 2016, the elective adoption will be effective in the interim period that includes the date of that first transaction and subsequent interim and annual periods thereafter. Early adoption is permitted for any interim and annual financial statements that have not yet been made available for issuance. The Company does not expect the adoption of ASU 2014-18 to have a material impact on its financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Statements Codification and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (CIE), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in the ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have a material impact on its financial statements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date.” The amendments in ASU 2015-14 defer the effective date of 2014-09 for all entities by one year. Entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. Entities may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. Entities also may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU 2014-09. The Company does not expect the adoption of ASU 2015-14 (or ASU 2014-09) to have a material impact on its financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company does not expect the adoption of ASU 2015-16 to have a material impact on its financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: (i) requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and (iii) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost. The amendments within this ASU are effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The new guidance permits early adoption of the provision that exempts private companies and not-for-profit organizations from having to disclose at fair value information about financial instruments measured at amortized cost. The Company is currently assessing the impact that ASU 2016-01 will have on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 841).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue for Contracts with Customers. The amendments in this ASU are effective fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses”. The ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. In March 2017, the FASB issued SU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20)—Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018 and is not expected to have a significant impact on our financial statements. |
Restatement (Tables)
Restatement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Impacted Consolidated Balance Sheet Accounts as of December 31, 2016: As previously Restatement reported adjustments As restated Cash and due from banks $ 13,504,081 $ (1,169,723) $ 12,334,358 Cash and cash equivalents 14,482,638 (1,169,723) 13,312,915 Deferred income taxes 1,420,891 (391,872) 1,029,019 Other assets 1,356,982 1,167,860 2,524,842 Total assets 380,225,094 (393,735) 379,831,359 Retained earnings 13,106,834 (393,735) 12,713,099 Total stockholders' equity 39,406,012 (393,735) 39,012,277 Total liabilities and stockholders' equity 380,225,094 (393,735) 379,831,359 Impacted Consolidated Statements of Income Accounts for the year ended December 31, 2016: As previously Restatement reported adjustments As restated Income taxes $ 1,633,085 $ 393,735 $ 2,026,820 Net income 4,302,864 (393,735) 3,909,129 Earnings per share - basic and diluted 2.60 (0.23) 2.37 Impacted Consolidated Statements of Cash Flows for the year ended December 31, 2016: As previously Restatement reported adjustments As restated Cash paid to suppliers and employees $ (8,272,117) $ (1,169,723) $ (9,441,840) Cash provided by operating activities 3,608,405 (1,169,723) 2,438,682 Net increase in cash and cash equivalents (5,710,201) (1,169,723) (6,879,924) Cash and cash equivalents at the end of period 14,482,638 (1,169,723) 13,312,915 Net income 4,302,864 (393,735) 3,909,129 Deferred income taxes (84,719) 391,872 307,153 Other assets (397,920) (1,167,860) (1,565,780) |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable Securities [Table Text Block] | Investment securities are summarized as follows: Amortized Unrealized Unrealized Fair March 31, 2017 cost gains losses value Available for sale State and municipal $ 1,514,593 $ 59,134 $ 11,027 $ 1,562,700 Mutual fund 510,118 - 14,902 495,216 SBA pools 2,819,077 - 20,592 2,798,485 Mortgage-backed securities 28,846,954 16,339 485,401 28,377,892 $ 33,690,742 $ 75,473 $ 531,922 $ 33,234,293 Held to maturity State and municipal $ 18,105,982 $ 185,740 $ 263,786 $ 18,027,936 Amortized Unrealized Unrealized Fair December 31, 2016 cost gains losses value Available for sale State and municipal $ 1,515,863 $ 62,512 $ 12,048 $ 1,566,327 Mutual fund 507,612 - 15,369 492,243 SBA pools 2,280,415 - 16,581 2,263,834 Mortgage-backed securities 30,544,941 20,139 501,545 30,063,535 $ 34,848,831 $ 82,651 $ 545,543 $ 34,385,939 Held to maturity State and municipal $ 17,987,628 $ 163,239 $ 317,068 $ 17,833,799 | Investment securities are summarized as follows: Amortized Unrealized Unrealized Fair December 31, 2016 cost gains losses value Available for sale State and municipal $ 1,515,863 $ 62,512 $ 12,048 $ 1,566,327 Mutual fund 507,612 - 15,369 492,243 SBA pools 2,280,415 - 16,581 2,263,834 Mortgage-backed securities 30,544,941 20,139 501,545 30,063,535 $ 34,848,831 $ 82,651 $ 545,543 $ 34,385,939 Held to maturity State and municipal $ 17,987,628 $ 163,239 $ 317,068 $ 17,833,799 December 31, 2015 Available for sale State and municipal $ 1,253,031 $ 96,211 $ - $ 1,349,242 Mortgage-backed securities 22,524,260 37,120 266,038 22,295,342 $ 23,777,291 $ 133,331 $ 266,038 $ 23,644,584 Held to maturity U. S. government agency $ 2,960,758 $ 1,373 $ 33,231 $ 2,928,900 State and municipal 13,643,309 345,506 30,818 13,957,997 $ 16,604,067 $ 346,879 $ 64,049 $ 16,886,897 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Contractual maturities, shown below, will differ from actual maturities because borrowers and issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair March 31, 2017 cost value cost value Within one year $ 510,118 $ 495,216 $ - $ - Over one to five years - - - - Over five to ten years 1,136,164 1,161,889 2,653,865 2,701,525 Over ten years 378,429 400,811 15,452,117 15,326,411 2,024,711 2,057,916 18,105,982 18,027,936 Mortgage-backed securities and SBA pools, due in monthly installments 31,666,031 31,176,377 - - $ 33,690,742 $ 33,234,293 $ 18,105,982 $ 18,027,936 December 31, 2016 Within one year $ 507,612 $ 492,243 $ - $ - Over one to five years - - - - Over five to ten years 1,136,919 1,163,288 2,657,130 2,702,121 Over ten years 378,944 403,039 15,330,498 15,131,678 2,023,475 2,058,570 17,987,628 17,833,799 Mortgage-backed securities and SBA pools, due in monthly installments 32,825,356 32,327,369 - - $ 34,848,831 $ 34,385,939 $ 17,987,628 $ 17,833,799 | Contractual maturities, shown below, will differ from actual maturities because borrowers and issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair December 31, 2016 cost value cost value Within one year $ 507,612 $ 492,243 $ - $ - Over one to five years - - - - Over five to ten years 1,136,919 1,163,288 2,657,130 2,702,121 Over ten years 378,944 403,039 15,330,498 15,131,678 2,023,475 2,058,570 17,987,628 17,833,799 Mortgage-backed securities and SBA pools, due in monthly installments 32,825,356 32,327,369 - - $ 34,848,831 $ 34,385,939 $ 17,987,628 $ 17,833,799 December 31, 2015 Within one year $ - $ - $ - $ - Over one to five years - - - - Over five to ten years 501,991 552,070 2,276,250 2,308,733 Over ten years 751,040 797,172 14,327,817 14,578,164 1,253,031 1,349,242 16,604,067 16,886,897 Mortgage-backed securities, due in monthly installments 22,524,260 22,295,342 - - $ 23,777,291 $ 23,644,584 $ 16,604,067 $ 16,886,897 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following table sets forth the Company's gross unrealized losses on a continuous basis for investment securities, by category and length of time, at March 31, 2017 and December 31, 2016. March 31, 2017 Less than 12 months 12 months or more Total Description of investments Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized State and municipal $ 7,310,277 $ 274,813 $ - $ - $ 7,310,277 $ 274,813 Mutual fund 495,216 14,902 - - 495,216 14,902 SBA pools 2,232,235 20,592 - - 2,232,235 20,592 Mortgage-backed securities 25,608,743 442,531 1,777,344 42,870 27,386,087 485,401 Total $ 35,646,471 $ 752,838 $ 1,777,344 $ 42,870 $ 37,423,815 $ 795,708 December 31, 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses State and municipal $ 8,558,230 $ 329,116 $ - $ - $ 8,558,230 $ 329,116 Mutual fund 492,243 15,369 - - 492,243 15,369 SBA pools 2,263,834 16,581 - - 2,263,834 16,581 Mortgage-backed securities 26,726,037 473,451 1,353,900 28,094 28,079,937 501,545 Total $ 38,040,344 $ 834,517 $ 1,353,900 $ 28,094 $ 39,394,244 $ 862,611 | The following table sets forth the Company's gross unrealized losses on a continuous basis for investment securities, by category and length of time. December 31, 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses State and municipal $ 8,558,230 $ 329,116 $ - $ - $ 8,558,230 $ 329,116 Mutual fund 492,243 15,369 - - 492,243 15,369 SBA pools 2,263,834 16,581 - - 2,263,834 16,581 Mortgage-backed securities 26,726,037 473,451 1,353,900 28,094 28,079,937 501,545 Total $ 38,040,344 $ 834,517 $ 1,353,900 $ 28,094 $ 39,394,244 $ 862,611 December 31, 2015 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses U.S. government agency $ - $ - $ 1,927,527 $ 33,231 $ 1,927,527 $ 33,231 State and municipal 573,034 5,535 804,623 25,283 1,377,657 30,818 Mortgage-backed securities 15,299,536 156,187 3,431,902 109,851 18,731,438 266,038 Total $ 15,872,570 $ 161,722 $ 6,164,052 $ 168,365 $ 22,036,622 $ 330,087 |
Loans (Tables)
Loans (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Major categories of loans are as follows: March 31, December 31, 2017 2016 Real estate: Commercial $ 223,290,411 $ 206,145,076 Construction and land development 13,988,793 14,392,992 Residential 56,343,709 54,710,809 Commercial 20,894,073 22,152,773 Consumer 687,569 725,269 315,204,555 298,126,919 Less: Allowance for loan losses 2,414,124 2,363,086 Deferred origination fees net of costs 503,176 477,261 $ 312,287,255 $ 295,286,572 | Major categories of loans at December 31, 2016 and 2015 are as follows: 2016 2015 Real estate: Commercial $ 206,145,076 $ 186,703,868 Construction and land development 14,392,992 12,820,165 Residential 54,710,809 51,290,828 Commercial 22,152,773 19,562,302 Consumer 725,269 886,175 298,126,919 271,263,338 Less: Allowance for loan losses 2,363,086 2,583,445 Deferred origination fees net of costs 477,261 430,491 $ 295,286,572 $ 268,249,402 |
Schedule of Maturity and Rate Repricing Distribution of the Loan Portfolio [Table Text Block] | 2016 2015 Variable rate, immediately $ 41,628,685 $ 27,803,011 Due within one year 48,381,221 33,826,370 Due over one to five years 126,810,275 153,408,126 Due over five years 81,306,738 56,225,831 $ 298,126,919 $ 271,263,338 | |
Loans and Leases Receivable, Nonaccrual Loan and Lease Status [Table Text Block] | Non-accrual loans, segregated by class of loans, were as follows: March 31, December 31, 2017 2016 Construction and land development $ 571,161 $ 752,889 | Year-end nonaccrual loans, segregated by class of loans, were as follows: 2016 2015 Commercial real estate $ 752,889 $ 956,813 |
Past Due Financing Receivables [Table Text Block] | An age analysis of past due loans, segregated by type of loan, is as follows: 90 Days Past Due 90 30 - 59 Days 60 - 89 Days or More Total Total Days or More Past Due Past Due Past Due Past Due Current Loans and Accruing March 31, 2017 Real estate: Commercial $ - $ - $ - $ - $ 223,290,411 $ 223,290,411 $ - Construction and land development - 152,521 571,161 723,682 13,265,111 13,988,793 - Residential 800,017 - - 800,017 55,543,692 56,343,709 - Commercial - - - - 20,894,073 20,894,073 - Consumer - - - - 687,569 687,569 - Total $ 800,017 $ 152,521 $ 571,161 $ 1,523,699 $ 313,680,856 $ 315,204,555 $ - December 31, 2016 Real estate: Commercial $ - $ - $ - $ - $ 206,145,076 $ 206,145,076 $ - Construction and land development - - 752,889 752,889 13,640,103 14,392,992 - Residential 824,554 - - 824,554 53,886,255 54,710,809 - Commercial 48,719 - - 48,719 22,104,054 22,152,773 - Consumer - - - - 725,269 725,269 - Total $ 873,273 $ - $ 752,889 $ 1,626,162 $ 296,500,757 $ 298,126,919 $ - | An age analysis of past due loans, segregated by class of loans, as of year-end, is as follows: 90 Days Past Due 90 30 - 59 Days 60 - 89 Days or More Total Total Days or More Past Due Past Due Past Due Past Due Current Loans and Accruing December 31, 2016 Real estate: Commercial $ - $ - $ - $ - $ 206,145,076 $ 206,145,076 $ - Construction and land development - - 752,889 752,889 13,640,103 14,392,992 - Residential 824,554 - - 824,554 53,886,255 54,710,809 - Commercial 48,719 - - 48,719 22,104,054 22,152,773 - Consumer - - - - 725,269 725,269 - Total $ 873,273 $ - $ 752,889 $ 1,626,162 $ 296,500,757 $ 298,126,919 $ - December 31, 2015 Real estate: Commercial $ - $ - $ - $ - $ 186,703,868 $ 186,703,868 $ - Construction and land development - - 956,813 956,813 11,863,352 12,820,165 - Residential - - - - 51,290,828 51,290,828 - Commercial - - - - 19,562,302 19,562,302 - Consumer - - - - 886,175 886,175 - Total $ - $ - $ 956,813 $ 956,813 $ 270,306,525 $ 271,263,338 $ - |
Impaired Financing Receivables [Table Text Block] | Impaired loans, segregated by class of loans, are set forth in the following table: Unpaid Recorded Recorded Contractual Investment Investment Total Average Principal With No With Recorded Related Recorded Interest Balance Allowance Allowance Investment Allowance Investment Recognized March 31, 2017 Real estate: Commercial $ 3,060,269 $ 3,060,269 $ - $ 3,060,269 $ - $ 1,906,579 $ 37,209 Construction and land development 971,161 - 571,161 571,161 86,859 285,581 - Commercial 155,296 155,296 - 155,296 - 1,749,020 2,783 $ 4,186,726 $ 3,215,565 $ 571,161 $ 3,786,726 $ 86,859 $ 4,023,563 $ 39,992 December 31, 2016 Real estate: Commercial $ 2,455,090 $ 2,183,509 $ 241,580 $ 2,425,089 $ 7,580 $ 2,332,568 $ 125,260 Construction and land development 1,152,889 - 752,889 752,889 16,587 854,851 - Commercial 164,766 164,766 - 164,766 - 184,201 14,442 $ 3,772,745 $ 2,348,275 $ 994,469 $ 3,342,744 $ 24,167 $ 3,371,620 $ 139,702 | Year-end impaired loans, segregated by class of loans, are set forth in the following table: Unpaid Recorded Recorded Contractual Investment Investment Total Average Principal With No With Recorded Related Recorded Interest Balance Allowance Allowance Investment Allowance Investment Recognized December 31, 2016 Real estate: Commercial $ 2,455,090 $ 2,183,509 $ 241,580 $ 2,425,089 $ 7,580 $ 2,332,568 $ 125,260 Construction and land development 1,152,889 - 752,889 752,889 16,587 854,851 - Commercial 164,766 164,766 - 164,766 - 184,201 14,442 $ 3,772,745 $ 2,348,275 $ 994,469 $ 3,342,744 $ 24,167 $ 3,371,620 $ 139,702 December 31, 2015 Real estate: Commercial $ 2,240,046 $ 2,240,046 $ - $ 2,240,046 $ - $ 2,281,563 $ 115,663 Construction and land development 1,156,813 - 956,813 956,813 167,211 478,407 13,540 Commercial 203,635 203,635 - 203,635 - 220,421 15,644 $ 3,600,494 $ 2,443,681 $ 956,813 $ 3,400,494 $ 167,211 $ 2,980,391 $ 144,847 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Loans by credit grade, segregated by loan type, are as follows: Above Pass Special March 31, 2017 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 9,305,789 $ 124,195,844 $ 66,024,788 $ 11,965,627 $ 7,413,954 $ 4,384,409 $ - $ 223,290,411 Construction and land development - 176,850 8,240,555 2,267,264 1,498,357 1,234,605 571,162 - 13,988,793 Residential 84,285 2,083,546 40,223,900 11,475,228 1,816,600 - 660,150 - 56,343,709 Commercial 1,653,640 37,541 16,235,830 2,289,357 522,409 155,296 - - 20,894,073 Consumer 25,452 115,136 451,895 67,136 - - 3,440 24,510 687,569 $ 1,763,377 $ 11,718,862 $ 189,348,024 $ 82,123,773 $ 15,802,993 $ 8,803,855 $ 5,619,161 $ 24,510 $ 315,204,555 Above Pass Special December 31, 2016 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 9,584,756 $ 147,668,371 $ 32,474,566 $ 3,883,813 $ 8,644,563 $ 3,889,007 $ - $ 206,145,076 Construction and land development - 178,078 10,178,876 2,039,090 - 153,611 1,843,337 - 14,392,992 Residential 110,142 2,811,362 42,715,571 8,059,118 351,182 - 663,434 - 54,710,809 Commercial 1,666,880 77,745 18,469,572 1,228,598 545,212 164,766 - - 22,152,773 Consumer 42,577 121,306 476,465 51,339 - - 3,840 29,742 725,269 $ 1,819,599 $ 12,773,247 $ 219,508,855 $ 43,852,711 $ 4,780,207 $ 8,962,940 $ 6,399,618 $ 29,742 $ 298,126,919 | Above Pass Special December 31, 2016 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 9,584,756 $ 147,668,371 $ 32,474,566 $ 3,883,813 $ 8,644,563 $ 3,889,007 $ - $ 206,145,076 Construction and land development - 178,078 10,178,876 2,039,090 - 153,611 1,843,337 - 14,392,992 Residential 110,142 2,811,362 42,715,571 8,059,118 351,182 - 663,434 - 54,710,809 Commercial 1,666,880 77,745 18,469,572 1,228,598 545,212 164,766 - - 22,152,773 Consumer 42,577 121,306 476,465 51,339 - - 3,840 29,742 725,269 $ 1,819,599 $ 12,773,247 $ 219,508,855 $ 43,852,711 $ 4,780,207 $ 8,962,940 $ 6,399,618 $ 29,742 $ 298,126,919 Above Pass Special December 31, 2015 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 11,100,467 $ 151,135,140 $ 11,019,894 $ 3,505,988 $ 6,162,661 $ 3,779,718 $ - $ 186,703,868 Construction and land development - 285,534 10,037,269 418,834 - - 2,078,528 - 12,820,165 Residential 181,662 3,478,378 43,722,191 2,502,477 731,122 - 674,998 - 51,290,828 Commercial 1,932,013 46,401 14,685,120 1,184,530 199,950 203,635 1,310,653 - 19,562,302 Consumer 67,862 253,706 481,073 11,207 46,802 - - 25,525 886,175 $ 2,181,537 $ 15,164,486 $ 220,060,793 $ 15,136,942 $ 4,483,862 $ 6,366,296 $ 7,843,897 $ 25,525 $ 271,263,338 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following table details activity in the allowance for loan losses by portfolio for the three months ended March 31, 2017 and 2016, and the year ended December 31, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: March 31, 2017 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,717,749 $ (193) $ - $ 890 $ 1,718,446 $ - $ 1,718,446 $ 3,060,269 $ 220,230,142 Construction and land development 204,860 90,411 - - 295,271 86,859 208,412 571,161 13,417,632 Residential 247,437 28,185 - 148 275,770 - 275,770 - 56,343,709 Commercial 125,260 (31,963) - - 93,297 - 93,297 155,296 20,738,777 Consumer 8,826 (817) - - 8,009 - 8,009 - 687,569 Unallocated 58,954 (35,623) - - 23,331 - 23,331 - - $ 2,363,086 $ 50,000 $ - $ 1,038 $ 2,414,124 $ 86,859 $ 2,327,265 $ 3,786,726 $ 311,417,829 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: March 31, 2016 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,718,256 $ 96,026 $ - $ - $ 1,814,282 $ - $ 1,814,282 $ 2,425,089 $ 178,552,626 Construction and land development 306,982 (26,612) - - 280,370 129,452 150,918 2,219,985 11,068,961 Residential 322,084 (41,098) - 54,888 335,874 - 335,874 - 53,530,926 Commercial 132,362 29,692 - - 162,054 - 162,054 192,017 19,174,835 Consumer 7,900 1,133 - - 9,033 - 9,033 - 839,852 Unallocated 95,861 (59,141) - - 36,720 - 36,720 - - $ 2,583,445 $ - $ - $ 54,888 $ 2,638,333 $ 129,452 $ 2,508,881 $ 4,837,091 $ 263,167,200 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2016 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,718,256 $ 29,493 $ (30,000) $ - $ 1,717,749 $ 7,580 $ 1,710,169 $ 2,425,089 $ 203,719,987 Construction and land development 306,982 97,878 (200,000) - 204,860 16,587 188,273 752,889 13,640,103 Residential 322,084 (184,773) - 110,126 247,437 - 247,437 - 54,710,809 Commercial 132,362 93,383 (100,485) - 125,260 - 125,260 164,766 21,988,007 Consumer 7,900 926 - - 8,826 - 8,826 - 725,269 Unallocated 95,861 (36,907) - - 58,954 - 58,954 - - $ 2,583,445 $ - $ (330,485) $ 110,126 $ 2,363,086 $ 24,167 $ 2,338,919 $ 3,342,744 $ 294,784,175 | The following table details activity in the allowance for loan losses by portfolio for the years ended December 31, 2016 and 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2016 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,718,256 $ 29,493 $ (30,000) $ - $ 1,717,749 $ 7,580 $ 1,710,169 $ 2,425,089 $ 203,719,987 Construction and land development 306,982 97,878 (200,000) - 204,860 16,587 188,273 752,889 13,640,103 Residential 322,084 (184,773) - 110,126 247,437 - 247,437 - 54,710,809 Commercial 132,362 93,383 (100,485) - 125,260 - 125,260 164,766 21,988,007 Consumer 7,900 926 - - 8,826 - 8,826 - 725,269 Unallocated 95,861 (36,907) - - 58,954 - 58,954 - - $ 2,583,445 $ - $ (330,485) $ 110,126 $ 2,363,086 $ 24,167 $ 2,338,919 $ 3,342,744 $ 294,784,175 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2015 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,848,163 $ (129,907) $ - $ - $ 1,718,256 $ - $ 1,718,256 $ 2,240,046 $ 184,463,822 Construction and land development 458,211 48,771 (200,000) - 306,982 167,211 139,771 956,813 11,863,352 Residential 278,943 42,299 - 842 322,084 - 322,084 - 51,290,828 Commercial 171,104 (41,096) - 2,354 132,362 - 132,362 203,635 19,358,667 Consumer 8,215 (315) - - 7,900 - 7,900 - 886,175 Unallocated 15,613 80,248 - - 95,861 - 95,861 - - $ 2,780,249 $ - $ (200,000) $ 3,196 $ 2,583,445 $ 167,211 $ 2,416,234 $ 3,400,494 $ 267,862,844 |
Capital Standards (Tables)
Capital Standards (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | ||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The FDIC, through formal or informal agreement, has the authority to require an institution to maintain higher capital ratios than those provided by statute, to be categorized as well capitalized under the regulatory framework for prompt corrective action. Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized March 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) 42,159 12.75 % 30,576 9.25 % 33,055 10.00 % Tier 1 capital (to risk-weighted assets) 39,745 12.02 % 23,965 7.25 % 26,444 8.00 % Common equity tier 1 (to risk-weighted assets) 39,745 12.02 % 19,006 5.75 % 21,486 6.50 % Tier 1 leverage (to average assets) 39,745 10.29 % 15,446 4.00 % 19,307 5.00 % Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) 41,385 13.18 % 27,076 8.63 % 31,392 10.00 % Tier 1 capital (to risk-weighted assets) 39,022 12.43 % 20,797 6.63 % 25,114 8.00 % Common equity tier 1 (to risk-weighted assets) 39,022 12.43 % 16,089 5.13 % 20,405 6.50 % Tier 1 leverage (to average assets) 39,022 10.39 % 15,025 4.00 % 18,781 5.00 % | The FDIC, through formal or informal agreement, has the authority to require an institution to maintain higher capital ratios than those provided by statute, to be categorized as well capitalized under the regulatory framework for prompt corrective action. Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Restated Restated Total capital (to risk-weighted assets) 41,385 13.18 % 27,076 8.63 % 31,392 10.00 % Tier 1 capital (to risk-weighted assets) 39,022 12.43 % 20,797 6.63 % 25,114 8.00 % Common equity tier 1 (to risk- weighted assets) 39,022 12.43 % 16,089 5.13 % 20,405 6.50 % Tier 1 leverage (to average assets) 39,022 10.39 % 15,025 4.00 % 18,781 5.00 % Minimum To Be Well (Dollars in thousands) Actual Capital Adequacy Capitalized December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) 38,908 13.69 % 22,739 8.00 % 28,424 10.00 % Tier 1 capital (to risk-weighted assets) 36,325 12.78 % 17,055 6.00 % 22,739 8.00 % Common equity tier 1 (to risk- weighted assets) 36,325 12.78 % 12,791 4.50 % 18,476 6.50 % Tier 1 leverage (to average assets) 36,325 10.64 % 13,662 4.00 % 17,077 5.00 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | During the years ended December 31, 2016 and 2015, the activity of these loans was as follows: 2016 2015 Balance, beginning of year $ 13,148,726 $ 12,732,702 Additions 3,987,121 3,473,398 Amounts collected (4,205,038) (3,057,374) Change in related parties (148,576) - Balance, end of year $ 12,782,233 $ 13,148,726 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | The following table summarizes financial assets measured at fair value on a recurring and nonrecurring basis as of March 31, 2017 and December 31, 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Carrying Value: Level 1 Level 2 Level 3 Total March 31, 2017 Recurring Available for sale securities State and municipal $ - $ 1,562,700 $ - $ 1,562,700 Mutual Fund 495,216 - - 495,216 SBA pools - 2,798,485 - 2,798,485 Mortgage-backed securities - 28,377,892 - 28,377,892 $ 495,216 $ 32,739,077 $ - $ 33,234,293 Nonrecurring Other real estate owned $ - $ - $ 414,000 $ 414,000 Impaired loans - - 3,699,867 3,699,867 December 31, 2015 Recurring Available for sale securities State and municipal $ - $ 1,566,327 $ - $ 1,566,327 Mutual Fund 492,243 - - 492,243 SBA pools - 2,263,834 - 2,263,834 Mortgage-backed securities - 30,063,535 - 30,063,535 $ 492,243 $ 33,893,696 $ - $ 34,385,939 Nonrecurring Other real estate owned $ - $ - $ 414,000 $ 414,000 Impaired loans - - 3,318,577 3,318,577 | The following table summarizes financial assets measured at fair value on a recurring and nonrecurring basis as of December 31, 2016 and 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Carrying Value: Level 1 Level 2 Level 3 Total December 31, 2016 Recurring Available for sale securities State and municipal $ - $ 1,566,327 $ - $ 1,566,327 Mutual Fund 492,243 - - 492,243 SBA pools - 2,263,834 - 2,263,834 Mortgage-backed securities - 30,063,535 - 30,063,535 $ 492,243 $ 33,893,696 $ - $ 34,385,939 Nonrecurring Other real estate owned $ - $ - $ 414,000 $ 414,000 Impaired loans - - 3,318,577 3,318,577 December 31, 2015 Recurring Available for sale securities State and municipal $ - $ 1,349,242 $ - $ 1,349,242 Mortgage-backed securities - 22,295,342 - 22,295,342 $ - $ 23,644,584 $ - $ 23,644,584 Nonrecurring Other real estate owned $ - $ - $ 472,500 $ 472,500 Impaired loans - - 3,233,283 3,233,283 |
Fair Value, Assets Measured on NonRecurring Basis, Unobservable Input Reconciliation [Table Text Block] | Other Real Impaired Estate Owned Loans December 31, 2016 balance $ 414,000 $ 3,318,577 Additions - 667,331 Advances - 221,677 Loan loss provision - (62,692) Principal payments received - (445,026) March 31, 2017 balance $ 414,000 $ 3,699,867 | Estate Owned Loans December 31, 2015 balance $ 472,500 $ 3,233,283 Additions - 271,580 Advances - 604,695 Write-downs (58,500) (230,000) Loan loss provision - 143,044 Principal payments received - (704,025) December 31, 2016 balance $ 414,000 $ 3,318,577 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The estimated fair value of financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of the valuation inputs were as follows: March 31, 2017 December 31, 2016 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 1 inputs Cash and cash equivalents $ 18,693,431 $ 18,693,431 $ 13,312,915 $ 13,312,915 Level 2 inputs Securities held to maturity 18,105,982 18,027,936 17,987,628 17,833,799 Mortgage loans held for sale - - 884,500 902,061 Federal Home Loan Bank stock 893,600 893,600 778,300 778,300 Level 3 inputs Loans, net 312,287,255 313,825,255 295,286,572 297,982,000 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 58,640,811 $ 58,640,811 $ 62,791,835 $ 62,791,835 Securities sold under repurchase agreements 28,037,122 28,037,122 27,226,159 27,226,159 Level 2 inputs Interest-bearing deposits 256,984,003 246,279,003 239,923,301 230,394,000 Federal Home Loan Bank advances 13,000,000 12,958,000 9,000,000 8,975,000 | The estimated fair value of financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of the valuation inputs were as follows: December 31, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 1 inputs Restated Restated Cash and cash equivalents $ 13,312,915 $ 13,312,915 $ 20,192,939 $ 20,192,939 Level 2 inputs Securities held to maturity 17,987,628 17,833,799 16,604,067 16,886,897 Mortgage loans held for sale 884,500 902,061 - - Federal Home Loan Bank stock 778,300 778,300 758,100 758,100 Level 3 inputs Loans, net 295,286,572 297,982,000 268,249,402 269,852,000 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 62,791,835 $ 62,791,835 $ 58,043,942 $ 58,043,942 Securities sold under repurchase agreements 27,226,159 27,226,159 20,490,619 20,490,619 Level 2 inputs Interest-bearing deposits 239,923,301 230,394,000 217,920,795 211,316,000 Federal Home Loan Bank advances 9,000,000 8,975,000 11,000,000 11,006,000 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding, giving retroactive effect to stock dividends declared during the period. Three Months Three Months March 31, March 31, Net income $ 983,557 $ 936,468 Weighted average shares outstanding 1,656,390 1,647,541 Earnings per share - basic and diluted $ 0.59 $ 0.57 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | A summary of premises and equipment is as follows: Useful lives 2016 2015 Land and improvements - $ 1,952,998 $ 1,952,998 Buildings and improvements 15-39 years 5,659,635 5,659,635 Furniture and equipment 3-10 years 3,490,526 3,308,986 11,103,159 10,921,619 Accumulated depreciation and amortization 5,653,481 5,273,686 $ 5,449,678 $ 5,647,933 Depreciation and amortization expense $ 379,795 $ 339,269 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum payments under the agreements are as follows: Year Amount 2017 $ 108,993 2018 83,835 2019 72,678 2020 24,303 2021 - Thereafter - $ 289,809 |
Credit Commitments (Tables)
Credit Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Credit Commitments [Table Text Block] | Outstanding loan commitments, unused lines of credit, and letters of credit as of December 31, are as follows: 2016 2015 Loan commitments Construction and land development $ 250,000 $ - Commercial 1,050,000 482,000 Commercial real estate 17,134,718 14,898,000 Residential 3,894,689 4,766,130 $ 22,329,407 $ 20,146,130 Unused lines of credit Home-equity lines $ 3,345,309 $ 3,307,863 Commercial lines 27,182,226 33,231,204 $ 30,527,535 $ 36,539,067 Letters of credit $ 1,281,848 $ 1,408,460 |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule Of Deposits [Table Text Block] | Major classifications of interest-bearing deposits are as follows: 2016 2015 NOW $ 40,090,252 $ 35,533,282 Money market 64,859,044 52,598,431 Savings 40,158,833 36,343,747 Certificates of deposit, $250,000 or more 15,233,383 16,979,039 Other time deposits 79,581,789 76,466,296 $ 239,923,301 $ 217,920,795 |
Schedule Of Maturities Of Certificates of Deposit [Table Text Block] | As of December 31, 2016, certificates of deposit mature as follows: Year Amount 2017 $ 44,931,000 2018 22,124,546 2019 20,824,692 2020 3,325,772 2021 3,509,162 Thereafter 100,000 $ 94,815,172 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Borrowed funds consist of securities sold under repurchase agreements, which represent overnight or term borrowings from customers, advances from the FHLB of Atlanta, the Federal Reserve Bank of Richmond (the “FRB”), and overnight borrowings from a commercial bank. The government agency securities that are the collateral for these agreements are owned by the Company and maintained in the custody of an unaffiliated agent designated by the Company. Additional information is as follows: 2016 2015 Amounts outstanding at year-end: Securities sold under repurchase agreements $ 27,226,159 $ 20,490,619 Federal Home Loan Bank advances $ 9,000,000 $ 11,000,000 Federal Home Loan Bank advances mature in: 2016 $ - $ 5,000,000 2017 2,000,000 1,000,000 2018 5,000,000 5,000,000 2019 2,000,000 - Weighted average rate paid at December 31: Securities sold under repurchase agreements 0.63 % 0.53 % Federal Home Loan Bank advances 1.11 % 0.94 % Maximum month-end amount outstanding: Securities sold under repurchase agreements $ 32,287,740 $ 20,655,156 Federal Home Loan Bank advances 16,000,000 11,000,000 Average amount outstanding: Securities sold under repurchase agreements $ 25,320,795 $ 18,582,245 Federal Home Loan Bank advances 10,833,333 10,778,082 Borrowings from FRB and commercial banks 21,861 2,742 Average rate paid during the year: Securities sold under repurchase agreements 0.64 % 0.54 % Federal Home Loan Bank advances 0.94 % 0.75 % Borrowings from FRB and commercial banks 0.67 % 0.52 % Investment securities underlying the repurchase agreements at year end: Carrying value $ 28,191,745 $ 21,127,194 Estimated fair value 28,165,979 21,355,393 Loans pledged to the Federal Home Loan Bank at year-end: Carrying value $ 60,858,326 $ 57,812,753 Loans pledged to the Federal Reserve Bank at year-end: Carrying value $ 40,954,231 $ 34,487,029 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other noninterest expenses include the following: 2016 2015 Automated teller machine and debit card expenses $ 331,368 $ 263,220 Professional services 311,702 224,333 Advertising 217,116 196,112 Directors fees 189,263 188,476 Stationery, printing, and supplies 188,070 153,491 Telephone 185,532 149,375 Postage, delivery, and armored carrier 179,344 179,109 Federal Deposit Insurance Corporation premiums 147,940 168,135 Internet banking fees 143,210 111,471 Correspondent bank services 79,278 63,240 Travel and conferences 48,970 56,173 Liability insurance 46,917 46,880 Maryland state regulatory assessment 41,531 39,279 Dues and subscriptions 39,752 37,538 Remote deposit expenses 29,722 28,782 Credit reports 25,276 21,619 Contributions 23,160 22,715 Education and training 15,669 11,378 Other real estate owned 15,252 32,695 Other 97,422 88,113 $ 2,356,494 $ 2,082,134 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense are as follows: 2016 2015 Restated Current Federal $ 1,355,273 $ 1,893,991 State 364,394 541,064 1,719,667 2,435,055 Deferred 307,153 95,150 $ 2,026,820 $ 2,530,205 |
Schedule of Components of Deferred Tax Expense Benefit [Table Text Block] | The components of the deferred tax expense are as follows: 2016 2015 Restated Depreciation $ (46,226) $ 106,757 Provision for loan losses 96,206 31,094 Other real estate owned allowance for loss (23,075) 63,403 Nonaccrual interest (15,000) (14,054) Prepaid captive insurance premium 393,735 - Post-retirement benefits (96,624) (92,050) $ 309,016 $ 95,150 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the net deferred tax asset are as follows: Deferred tax assets Allowance for loan losses $ 765,966 $ 862,172 Other real estate owned allowance for loss 246,925 223,850 Write-down of equity securities 5,522 5,522 Nonaccrual interest 29,055 14,054 Post-retirement benefits 520,410 423,786 Unrealized loss on securities available for sale 182,588 66,522 1,750,466 1,595,906 Deferred tax liabilities Prepaid captive insurance premium 393,735 - Depreciation 329,575 375,801 723,310 375,801 Net deferred tax asset $ 1,027,156 $ 1,220,105 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences between the federal income tax rate of 34% and the effective tax rate for the Company are reconciled as follows: Statutory federal income tax rate 34.0 % 34.0 % Increase (decrease) resulting from: Federal tax-exempt income (4.9) (2.2) State income taxes, net of federal income tax benefit 4.9 5.2 Nondeductible expenses 0.1 0.1 Other - 0.1 34.1 % 37.2 % |
Quarterly Results of Operatio46
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | Three Months Ended Unaudited 2016 December 31 September 30 June 30 March 31 Restated Interest income $ 3,992,191 $ 3,856,566 $ 3,731,160 $ 3,771,580 Interest expense 368,885 340,099 322,540 314,596 Net interest income 3,623,306 3,516,467 3,408,620 3,456,984 Provision for loan losses - - - - Net income 1,016,101 1,040,372 916,188 936,468 Earnings per share - basic and diluted $ 0.61 $ 0.63 $ 0.56 $ 0.57 2015 December 31 September 30 June 30 March 31 Interest income $ 3,728,982 $ 3,685,503 $ 3,671,377 $ 3,619,539 Interest expense 313,295 303,055 289,256 284,040 Net interest income 3,415,687 3,382,448 3,382,121 3,335,499 Provision for loan losses (15,000) - - 15,000 Net income 1,081,074 1,236,261 1,022,579 928,308 Earnings per share - basic and diluted $ 0.66 $ 0.75 $ 0.63 $ 0.57 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Number of Shares Outstanding, Basic | 1,652,014 | 1,633,897 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 |
First Community Bankers Insurance Co LLC [Member] | ||
Equity Method Investment, Ownership Percentage | 100.00% |
Restatement (Details)
Restatement (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and due from banks | $ 17,700,574 | $ 12,334,358 | $ 18,535,302 | ||
Cash and cash equivalents | 18,693,431 | 13,312,915 | $ 16,679,789 | 20,192,839 | $ 12,583,313 |
Deferred income taxes | 1,026,476 | 1,029,019 | 1,220,105 | ||
Other assets | 794,394 | 2,524,842 | 1,028,162 | ||
Total assets | 398,620,790 | 379,831,359 | 345,309,996 | ||
Retained earnings | 13,696,656 | 12,713,099 | 9,960,410 | ||
Total stockholders' equity | 39,999,737 | 39,012,277 | $ 37,415,669 | 36,223,361 | $ 32,702,470 |
Total liabilities and stockholders' equity | $ 398,620,790 | 379,831,359 | $ 345,309,996 | ||
As previously reported [Member] | |||||
Cash and due from banks | 13,504,081 | ||||
Cash and cash equivalents | 14,482,638 | ||||
Deferred income taxes | 1,420,891 | ||||
Other assets | 1,356,982 | ||||
Total assets | 380,225,094 | ||||
Retained earnings | 13,106,834 | ||||
Total stockholders' equity | 39,406,012 | ||||
Total liabilities and stockholders' equity | 380,225,094 | ||||
Restatement adjustment [Member] | |||||
Cash and due from banks | (1,169,723) | ||||
Cash and cash equivalents | (1,169,723) | ||||
Deferred income taxes | (391,872) | ||||
Other assets | 1,167,860 | ||||
Total assets | (393,735) | ||||
Retained earnings | (393,735) | ||||
Total stockholders' equity | (393,735) | ||||
Total liabilities and stockholders' equity | $ (393,735) |
Restatement (Details 1)
Restatement (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | 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 taxes | $ 357,118 | $ 516,200 | $ 2,026,820 | $ 2,530,205 | |||||||
Net income | $ 983,557 | $ 1,016,101 | $ 1,040,372 | $ 916,188 | $ 936,468 | $ 1,081,074 | $ 1,236,261 | $ 1,022,579 | $ 928,308 | $ 3,909,129 | $ 4,268,222 |
Earnings per share - basic and diluted | $ 0.59 | $ 0.61 | $ 0.63 | $ 0.56 | $ 0.57 | $ 0.66 | $ 0.75 | $ 0.63 | $ 0.57 | $ 2.37 | $ 2.61 |
As previously reported [Member] | |||||||||||
Income taxes | $ 1,633,085 | ||||||||||
Net income | $ 4,302,864 | ||||||||||
Earnings per share - basic and diluted | $ 2.60 | ||||||||||
Restatement adjustment [Member] | |||||||||||
Income taxes | $ 393,735 | ||||||||||
Net income | $ (393,735) | ||||||||||
Earnings per share - basic and diluted | $ (0.23) |
Restatement (Details 2)
Restatement (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | 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 | Dec. 31, 2014 | |
Cash paid to suppliers and employees | $ (968,190) | $ (1,355,815) | $ (9,441,840) | $ (8,204,143) | ||||||||
Cash provided by operating activities | 3,865,386 | 1,435,551 | 2,438,682 | 4,351,051 | ||||||||
Net increase in cash and cash equivalents | 5,380,516 | (3,513,050) | (6,879,924) | 7,609,526 | ||||||||
Cash and cash equivalents at end of period | 18,693,431 | $ 13,312,915 | 16,679,789 | $ 20,192,839 | 13,312,915 | 20,192,839 | $ 12,583,313 | |||||
Net income | 983,557 | 1,016,101 | $ 1,040,372 | $ 916,188 | 936,468 | $ 1,081,074 | $ 1,236,261 | $ 1,022,579 | $ 928,308 | 3,909,129 | 4,268,222 | |
Deferred income taxes | 307,153 | |||||||||||
Other assets | $ 1,714,346 | $ 423,358 | (1,565,780) | $ (525,420) | ||||||||
As previously reported [Member] | ||||||||||||
Cash paid to suppliers and employees | (8,272,117) | |||||||||||
Cash provided by operating activities | 3,608,405 | |||||||||||
Net increase in cash and cash equivalents | (5,710,201) | |||||||||||
Cash and cash equivalents at end of period | 14,482,638 | 14,482,638 | ||||||||||
Net income | 4,302,864 | |||||||||||
Deferred income taxes | (84,719) | |||||||||||
Other assets | (397,920) | |||||||||||
Restatement adjustment [Member] | ||||||||||||
Cash paid to suppliers and employees | (1,169,723) | |||||||||||
Cash provided by operating activities | (1,169,723) | |||||||||||
Net increase in cash and cash equivalents | (1,169,723) | |||||||||||
Cash and cash equivalents at end of period | $ (1,169,723) | (1,169,723) | ||||||||||
Net income | (393,735) | |||||||||||
Deferred income taxes | 391,872 | |||||||||||
Other assets | $ (1,167,860) |
Restatement (Details Textual)
Restatement (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | 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 Expense (Benefit) | $ 357,118 | $ 516,200 | $ 2,026,820 | $ 2,530,205 | |||||||
Net Income (Loss) Attributable to Parent | $ 983,557 | $ 1,016,101 | $ 1,040,372 | $ 916,188 | $ 936,468 | $ 1,081,074 | $ 1,236,261 | $ 1,022,579 | $ 928,308 | 3,909,129 | $ 4,268,222 |
Restatement Adjustment [Member] | |||||||||||
Income Tax Expense (Benefit) | 393,735 | ||||||||||
Net Income (Loss) Attributable to Parent | $ (393,735) |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Available for sale, Amortized cost | $ 33,690,742 | $ 34,848,831 | $ 23,777,291 |
Available for sale, Unrealized gains | 75,473 | 82,651 | 133,331 |
Available for sale, Unrealized losses | 531,922 | 545,543 | 266,038 |
Available for sale, Fair value | 33,234,293 | 34,385,939 | 23,644,584 |
Held to maturity, Amortized cost | 18,105,982 | 17,987,628 | 16,604,067 |
Held to maturity, Unrealized gains | 346,879 | ||
Held to maturity, Unrealized losses | 64,049 | ||
Held to maturity, Fair value | 18,027,936 | 17,833,799 | 16,886,897 |
U. S. government agency [Member] | |||
Held to maturity, Amortized cost | 2,960,758 | ||
Held to maturity, Unrealized gains | 1,373 | ||
Held to maturity, Unrealized losses | 33,231 | ||
Held to maturity, Fair value | 2,928,900 | ||
Mortgage-backed securities [Member] | |||
Available for sale, Amortized cost | 28,846,954 | 30,544,941 | 22,524,260 |
Available for sale, Unrealized gains | 16,339 | 20,139 | 37,120 |
Available for sale, Unrealized losses | 485,401 | 501,545 | 266,038 |
Available for sale, Fair value | 28,377,892 | 30,063,535 | 22,295,342 |
SBA pools [Member] | |||
Available for sale, Amortized cost | 2,819,077 | 2,280,415 | |
Available for sale, Unrealized gains | 0 | 0 | |
Available for sale, Unrealized losses | 20,592 | 16,581 | |
Available for sale, Fair value | 2,798,485 | 2,263,834 | |
Mutual fund [Member] | |||
Available for sale, Amortized cost | 510,118 | 507,612 | |
Available for sale, Unrealized gains | 0 | 0 | |
Available for sale, Unrealized losses | 14,902 | 15,369 | |
Available for sale, Fair value | 495,216 | 492,243 | |
State and municipal [Member] | |||
Available for sale, Amortized cost | 1,514,593 | 1,515,863 | 1,253,031 |
Available for sale, Unrealized gains | 59,134 | 62,512 | 96,211 |
Available for sale, Unrealized losses | 11,027 | 12,048 | 0 |
Available for sale, Fair value | 1,562,700 | 1,566,327 | 1,349,242 |
Held to maturity, Amortized cost | 18,105,982 | 17,987,628 | 13,643,309 |
Held to maturity, Unrealized gains | 185,740 | 163,239 | 345,506 |
Held to maturity, Unrealized losses | 263,786 | 317,068 | 30,818 |
Held to maturity, Fair value | $ 18,027,936 | $ 17,833,799 | $ 13,957,997 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Available for Sale, Within one year, Amortized cost | $ 510,118 | $ 507,612 | $ 0 |
Available for Sale, Over one to five years, Amortized cost | 0 | 0 | 0 |
Available for Sale, Over five to ten years, Amortized cost | 1,136,164 | 1,136,919 | 501,991 |
Available for Sale, Over ten years, Amortized cost | 378,429 | 378,944 | 751,040 |
Available for Sale, Single Maturity Date, Amortized Cost | 2,024,711 | 2,023,475 | 1,253,031 |
Available for Sale, Mortgage-backed securities and SBA pools, due in monthly installments, Amortised cost | 31,666,031 | 32,825,356 | 22,524,260 |
Available-for-sale Securities, Amortized Cost | 33,690,742 | 34,848,831 | 23,777,291 |
Available for Sale, Within one year, Fair value | 495,216 | 492,243 | 0 |
Available for Sale, Over one to five years, Fair value | 0 | 0 | 0 |
Available for Sale, Over five to ten years, Fair value | 1,161,889 | 1,163,288 | 552,070 |
Available for Sale, Over ten years, Fair value | 400,811 | 403,039 | 797,172 |
Available for Sale, Single Maturity Date, Fair value | 2,057,916 | 2,058,570 | 1,349,242 |
Available for Sale, Mortgage-backed securities, due in monthly installments, Fair value | 31,176,377 | 32,327,369 | 22,295,342 |
Available-for-sale Securities, Debt Securities, Fair value | 33,234,293 | 34,385,939 | 23,644,584 |
Held to Maturity, Within one year, Amortised cost | 0 | 0 | 0 |
Held to Maturity, Over one to five years, Amortised cost | 0 | 0 | 0 |
Held to Maturity, Over five to ten years, Amortised cost | 2,653,865 | 2,657,130 | 2,276,250 |
Held to Maturity, Over ten years, Amortised cost | 15,452,117 | 15,330,498 | 14,327,817 |
Held to Maturity, Single maturity date, Amortised cost | 18,105,982 | 17,987,628 | 16,604,067 |
Held to Maturity, Mortgage-backed securities, due in monthly installments, Amortised cost | 0 | 0 | 0 |
Held to Maturity Securities, Amortised cost | 18,105,982 | 17,987,628 | 16,604,067 |
Held to Maturity, Within one year, Fair value | 0 | 0 | 0 |
Held to Maturity, Over one to five years, Fair value | 0 | 0 | 0 |
Held to Maturity, Over five to ten years, Fair value | 2,701,525 | 2,702,121 | 2,308,733 |
Held to Maturity, Over ten years, Fair value | 15,326,411 | 15,131,678 | 14,578,164 |
Held to Maturity, Single maturity date, Fair value | 18,027,936 | 17,833,799 | 16,886,897 |
Held to Maturity, Mortgage-backed securities, due in monthly installments, Fair value | 0 | 0 | 0 |
Held-to-maturity Securities, Fair Value | $ 18,027,936 | $ 17,833,799 | $ 16,886,897 |
Investment Securities (Detail54
Investment Securities (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment securities, Less than 12 months, Fair value | $ 35,646,471 | $ 38,040,344 | $ 15,872,570 |
Investment securities, Less than 12 months, Unrealized losses | 752,838 | 834,517 | 161,722 |
Investment securities, 12 months or more, Fair Value | 1,777,344 | 1,353,900 | 6,164,052 |
Investment securities, 12 months or more, Unrealized losses | 42,870 | 28,094 | 168,365 |
Investment securities, Total, Fair Value | 37,423,815 | 39,394,244 | 22,036,622 |
Investment securities, Total, Unrealized losses | 795,708 | 862,611 | 330,087 |
SBA pools [Member] | |||
Investment securities, Less than 12 months, Fair value | 2,232,235 | 2,263,834 | |
Investment securities, Less than 12 months, Unrealized losses | 20,592 | 16,581 | |
Investment securities, 12 months or more, Fair Value | 0 | 0 | |
Investment securities, 12 months or more, Unrealized losses | 0 | 0 | |
Investment securities, Total, Fair Value | 2,232,235 | 2,263,834 | |
Investment securities, Total, Unrealized losses | 20,592 | 16,581 | |
Mortgage-backed securities [Member] | |||
Investment securities, Less than 12 months, Fair value | 25,608,743 | 26,726,037 | 15,299,536 |
Investment securities, Less than 12 months, Unrealized losses | 442,531 | 473,451 | 156,187 |
Investment securities, 12 months or more, Fair Value | 1,777,344 | 1,353,900 | 3,431,902 |
Investment securities, 12 months or more, Unrealized losses | 42,870 | 28,094 | 109,851 |
Investment securities, Total, Fair Value | 27,386,087 | 28,079,937 | 18,731,438 |
Investment securities, Total, Unrealized losses | 485,401 | 501,545 | 266,038 |
Mutual fund [Member] | |||
Investment securities, Less than 12 months, Fair value | 495,216 | 492,243 | |
Investment securities, Less than 12 months, Unrealized losses | 14,902 | 15,369 | |
Investment securities, 12 months or more, Fair Value | 0 | 0 | |
Investment securities, 12 months or more, Unrealized losses | 0 | 0 | |
Investment securities, Total, Fair Value | 495,216 | 492,243 | |
Investment securities, Total, Unrealized losses | 14,902 | 15,369 | |
State and municipal [Member] | |||
Investment securities, Less than 12 months, Fair value | 7,310,277 | 8,558,230 | 573,034 |
Investment securities, Less than 12 months, Unrealized losses | 274,813 | 329,116 | 5,535 |
Investment securities, 12 months or more, Fair Value | 0 | 0 | 804,623 |
Investment securities, 12 months or more, Unrealized losses | 0 | 0 | 25,283 |
Investment securities, Total, Fair Value | 7,310,277 | 8,558,230 | 1,377,657 |
Investment securities, Total, Unrealized losses | $ 274,813 | $ 329,116 | 30,818 |
U. S. government agency [Member] | |||
Investment securities, Less than 12 months, Fair value | 0 | ||
Investment securities, Less than 12 months, Unrealized losses | 0 | ||
Investment securities, 12 months or more, Fair Value | 1,927,527 | ||
Investment securities, 12 months or more, Unrealized losses | 33,231 | ||
Investment securities, Total, Fair Value | 1,927,527 | ||
Investment securities, Total, Unrealized losses | $ 33,231 |
Investment Securities (Detail55
Investment Securities (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | |
Trading Securities Pledged as Collateral | $ 33,146,328 | $ 26,036,893 | $ 40,701,766 |
Proceeds from Sale and Maturity of Marketable Securities | $ 298,379 | 1,060,402 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | 10,586 | ||
Held-to-maturity Securities, Sold Security, Realized Gain (Loss) | (16,094) | ||
Held-to-maturity Securities, Sold Security, at Carrying Value | $ 530,812 |
Cash and Equivalents (Details T
Cash and Equivalents (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||
Cash, Cash Equivalents, and Federal Funds Sold | $ 7,042,956 | $ 7,772,791 |
Cash, FDIC Insured Amount | $ 250,000 |
Loans (Details)
Loans (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable, Gross | $ 315,204,555 | $ 298,126,919 | $ 271,263,338 |
Less: Allowance for loan losses | 2,414,124 | 2,363,086 | 2,583,445 |
Deferred origination fees net of costs | 503,176 | 477,261 | 430,491 |
Loans and Leases Receivable, Net Amount | 312,287,255 | 295,286,572 | 268,249,402 |
Commercial [Member] | |||
Loans and Leases Receivable, Gross | 20,894,073 | 22,152,773 | 19,562,302 |
Consumer [Member] | |||
Loans and Leases Receivable, Gross | 687,569 | 725,269 | 886,175 |
Real estate [Member] | Commercial Real estate [Member] | |||
Loans and Leases Receivable, Gross | 223,290,411 | 206,145,076 | 186,703,868 |
Real estate [Member] | Construction and land development [Member] | |||
Loans and Leases Receivable, Gross | 13,988,793 | 14,392,992 | 12,820,165 |
Real estate [Member] | Residential [Member] | |||
Loans and Leases Receivable, Gross | $ 56,343,709 | $ 54,710,809 | $ 51,290,828 |
Loans (Details 1)
Loans (Details 1) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable, Variable rate, immediately | $ 41,628,685 | $ 27,803,011 | |
Loans and Leases Receivable, Due within one year | 48,381,221 | 33,826,370 | |
Loans and Leases Receivable, Due over one to five years | 126,810,275 | 153,408,126 | |
Loans and Leases Receivable, Due over five years | 81,306,738 | 56,225,831 | |
Loans and Leases Receivable, Gross | $ 315,204,555 | $ 298,126,919 | $ 271,263,338 |
Loans (Details 2)
Loans (Details 2) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Commercial real estate [Member] | |||
Non-accrual loans, segregated by class of loans | $ 752,889 | $ 956,813 | |
Construction and Land Development [Member] | |||
Non-accrual loans, segregated by class of loans | $ 571,161 | $ 752,889 | $ 956,813 |
Loans (Details 3)
Loans (Details 3) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | $ 1,523,699 | $ 1,626,162 | $ 956,813 |
Financing Receivable, Recorded Investment, Current | 313,680,856 | 296,500,757 | 270,306,525 |
Loans and Leases Receivable, Total Loans | 315,204,555 | 298,126,919 | 271,263,338 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 223,290,411 | 206,145,076 | 186,703,868 |
Loans and Leases Receivable, Total Loans | 223,290,411 | 206,145,076 | 186,703,868 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 |
Construction and Land Development [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 723,682 | 752,889 | 956,813 |
Financing Receivable, Recorded Investment, Current | 13,265,111 | 13,640,103 | 11,863,352 |
Loans and Leases Receivable, Total Loans | 13,988,793 | 14,392,992 | 12,820,165 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 |
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 800,017 | 824,554 | 0 |
Financing Receivable, Recorded Investment, Current | 55,543,692 | 53,886,255 | 51,290,828 |
Loans and Leases Receivable, Total Loans | 56,343,709 | 54,710,809 | 51,290,828 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 48,719 | 0 |
Financing Receivable, Recorded Investment, Current | 20,894,073 | 22,104,054 | 19,562,302 |
Loans and Leases Receivable, Total Loans | 20,894,073 | 22,152,773 | 19,562,302 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 687,569 | 725,269 | 886,175 |
Loans and Leases Receivable, Total Loans | 687,569 | 725,269 | 886,175 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 800,017 | 873,273 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction and Land Development [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 800,017 | 824,554 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 48,719 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 152,521 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction and Land Development [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 152,521 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 571,161 | 752,889 | 956,813 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction and Land Development [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 571,161 | 752,889 | 956,813 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Sector [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 | $ 0 |
Loans (Details 4)
Loans (Details 4) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | $ 4,186,726 | $ 3,772,745 | $ 3,600,494 |
Recorded Investment With No Allowance | 3,215,565 | 2,348,275 | 2,443,681 |
Recorded Investment With Allowance | 571,161 | 994,469 | 956,813 |
Total Recorded Investment | 3,786,726 | 3,342,744 | 3,400,494 |
Related Allowance | 86,859 | 24,167 | 167,211 |
Average Recorded Investment | 4,023,563 | 3,371,620 | 2,980,391 |
Interest Recognized | 39,992 | 139,702 | 144,847 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Allowance | 2,171,599 | 2,183,509 | 2,240,046 |
Recorded Investment With Allowance | 241,580 | ||
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 155,296 | 164,766 | 203,635 |
Recorded Investment With No Allowance | 155,296 | 164,766 | 203,635 |
Recorded Investment With Allowance | 0 | 0 | 0 |
Total Recorded Investment | 155,296 | 164,766 | 203,635 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 1,749,020 | 184,201 | 220,421 |
Interest Recognized | 2,783 | 14,442 | 15,644 |
Real Estate Sector [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 3,060,269 | 2,455,090 | 2,240,046 |
Recorded Investment With No Allowance | 3,060,269 | 2,183,509 | 2,240,046 |
Recorded Investment With Allowance | 0 | 241,580 | 0 |
Total Recorded Investment | 3,060,269 | 2,425,089 | 2,240,046 |
Related Allowance | 0 | 7,580 | 0 |
Average Recorded Investment | 1,906,579 | 2,332,568 | 2,281,563 |
Interest Recognized | 37,209 | 125,260 | 115,663 |
Real Estate Sector [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 971,161 | 1,152,889 | 1,156,813 |
Recorded Investment With No Allowance | 0 | 0 | 0 |
Recorded Investment With Allowance | 571,161 | 752,889 | 956,813 |
Total Recorded Investment | 571,161 | 752,889 | 956,813 |
Related Allowance | 86,859 | 16,587 | 167,211 |
Average Recorded Investment | 285,581 | 854,851 | 478,407 |
Interest Recognized | $ 0 | $ 0 | $ 13,540 |
Loans (Details 5)
Loans (Details 5) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | $ 315,204,555 | $ 298,126,919 | $ 271,263,338 |
Excellent [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 1,763,377 | 1,819,599 | 2,181,537 |
Above average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 11,718,862 | 12,773,247 | 15,164,486 |
Average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 189,348,024 | 219,508,855 | 220,060,793 |
Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 82,123,773 | 43,852,711 | 15,136,942 |
Pass watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 15,802,993 | 4,780,207 | 4,483,862 |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 8,803,855 | 8,962,940 | 6,366,296 |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 5,619,161 | 6,399,618 | 7,843,897 |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 24,510 | 29,742 | 25,525 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 20,894,073 | 22,152,773 | 19,562,302 |
Commercial Portfolio Segment [Member] | Excellent [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 1,653,640 | 1,666,880 | 1,932,013 |
Commercial Portfolio Segment [Member] | Above average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 37,541 | 77,745 | 46,401 |
Commercial Portfolio Segment [Member] | Average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 16,235,830 | 18,469,572 | 14,685,120 |
Commercial Portfolio Segment [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 2,289,357 | 1,228,598 | 1,184,530 |
Commercial Portfolio Segment [Member] | Pass watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 522,409 | 545,212 | 199,950 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 155,296 | 164,766 | 203,635 |
Commercial Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 1,310,653 |
Commercial Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 687,569 | 725,269 | 886,175 |
Consumer Portfolio Segment [Member] | Excellent [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 25,452 | 42,577 | 67,862 |
Consumer Portfolio Segment [Member] | Above average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 115,136 | 121,306 | 253,706 |
Consumer Portfolio Segment [Member] | Average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 451,895 | 476,465 | 481,073 |
Consumer Portfolio Segment [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 67,136 | 51,339 | 11,207 |
Consumer Portfolio Segment [Member] | Pass watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 46,802 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Consumer Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 3,440 | 3,840 | 0 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 24,510 | 29,742 | 25,525 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 223,290,411 | 206,145,076 | 186,703,868 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Excellent [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Above average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 9,305,789 | 9,584,756 | 11,100,467 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 124,195,844 | 147,668,371 | 151,135,140 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 66,024,788 | 32,474,566 | 11,019,894 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Pass watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 11,965,627 | 3,883,813 | 3,505,988 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 7,413,954 | 8,644,563 | 6,162,661 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 4,384,409 | 3,889,007 | 3,779,718 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Real estate [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 13,988,793 | 14,392,992 | 12,820,165 |
Real estate [Member] | Construction and Land Development [Member] | Excellent [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Real estate [Member] | Construction and Land Development [Member] | Above average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 176,850 | 178,078 | 285,534 |
Real estate [Member] | Construction and Land Development [Member] | Average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 8,240,555 | 10,178,876 | 10,037,269 |
Real estate [Member] | Construction and Land Development [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 2,267,264 | 2,039,090 | 418,834 |
Real estate [Member] | Construction and Land Development [Member] | Pass watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 1,498,357 | 0 | 0 |
Real estate [Member] | Construction and Land Development [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 1,234,605 | 153,611 | 0 |
Real estate [Member] | Construction and Land Development [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 571,162 | 1,843,337 | 2,078,528 |
Real estate [Member] | Construction and Land Development [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Real estate [Member] | Residential Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 56,343,709 | 54,710,809 | 51,290,828 |
Real estate [Member] | Residential Portfolio Segment [Member] | Excellent [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 84,285 | 110,142 | 181,662 |
Real estate [Member] | Residential Portfolio Segment [Member] | Above average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 2,083,546 | 2,811,362 | 3,478,378 |
Real estate [Member] | Residential Portfolio Segment [Member] | Average [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 40,223,900 | 42,715,571 | 43,722,191 |
Real estate [Member] | Residential Portfolio Segment [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 11,475,228 | 8,059,118 | 2,502,477 |
Real estate [Member] | Residential Portfolio Segment [Member] | Pass watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 1,816,600 | 351,182 | 731,122 |
Real estate [Member] | Residential Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 0 | 0 | 0 |
Real estate [Member] | Residential Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | 660,150 | 663,434 | 674,998 |
Real estate [Member] | Residential Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross | $ 0 | $ 0 | $ 0 |
Loans (Details 6)
Loans (Details 6) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Beginning balance | $ 2,363,086 | $ 2,583,445 | $ 2,583,445 | $ 2,780,249 |
Provision for loan losses | 50,000 | 0 | 0 | 0 |
Charge offs | 0 | 0 | (330,485) | (200,000) |
Recoveries | 1,038 | 54,888 | 110,126 | 3,196 |
Ending balance | 2,414,124 | 2,638,333 | 2,363,086 | 2,583,445 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 86,859 | 129,452 | 24,167 | 167,211 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 2,327,265 | 2,508,881 | 2,338,919 | 2,416,234 |
Outstanding loan balances evaluated for impairment: Individually | 3,786,726 | 4,837,091 | 3,342,744 | 3,400,494 |
Outstanding loan balances evaluated for impairment: Collectively | 311,417,829 | 263,167,200 | 294,784,175 | 267,862,844 |
Residential Portfolio Segment [Member] | ||||
Beginning balance | 247,437 | 322,084 | 322,084 | 278,943 |
Provision for loan losses | 28,185 | (41,098) | (184,773) | 42,299 |
Charge offs | 0 | 0 | 0 | 0 |
Recoveries | 148 | 54,888 | 110,126 | 842 |
Ending balance | 275,770 | 335,874 | 247,437 | 322,084 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 275,770 | 335,874 | 247,437 | 322,084 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | 56,343,709 | 53,530,926 | 54,710,809 | 51,290,828 |
Consumer Portfolio Segment [Member] | ||||
Beginning balance | 8,826 | 7,900 | 7,900 | 8,215 |
Provision for loan losses | (817) | 1,133 | 926 | (315) |
Charge offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 8,009 | 9,033 | 8,826 | 7,900 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 8,009 | 9,033 | 8,826 | 7,900 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | 687,569 | 839,852 | 725,269 | 886,175 |
Commercial Real Estate Loan [Member] | ||||
Beginning balance | 1,717,749 | 1,718,256 | 1,718,256 | 1,848,163 |
Provision for loan losses | (193) | 96,026 | 29,493 | (129,907) |
Charge offs | 0 | 0 | (30,000) | 0 |
Recoveries | 890 | 0 | 0 | 0 |
Ending balance | 1,718,446 | 1,814,282 | 1,717,749 | 1,718,256 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 7,580 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 1,718,446 | 1,814,282 | 1,710,169 | 1,718,256 |
Outstanding loan balances evaluated for impairment: Individually | 3,060,269 | 2,425,089 | 2,425,089 | 2,240,046 |
Outstanding loan balances evaluated for impairment: Collectively | 220,230,142 | 178,552,626 | 203,719,987 | 184,463,822 |
Construction Loans [Member] | ||||
Beginning balance | 204,860 | 306,982 | 306,982 | 458,211 |
Provision for loan losses | 90,411 | (26,612) | 97,878 | 48,771 |
Charge offs | 0 | 0 | (200,000) | (200,000) |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 295,271 | 280,370 | 204,860 | 306,982 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 86,859 | 129,452 | 16,587 | 167,211 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 208,412 | 150,918 | 188,273 | 139,771 |
Outstanding loan balances evaluated for impairment: Individually | 571,161 | 2,219,985 | 752,889 | 956,813 |
Outstanding loan balances evaluated for impairment: Collectively | 13,417,632 | 11,068,961 | 13,640,103 | 11,863,352 |
Financial Receivable ,Commercial Loan [Member] | ||||
Beginning balance | 125,260 | 132,362 | 132,362 | 171,104 |
Provision for loan losses | (31,963) | 29,692 | 93,383 | (41,096) |
Charge offs | 0 | 0 | (100,485) | 0 |
Recoveries | 0 | 0 | 0 | 2,354 |
Ending balance | 93,297 | 162,054 | 125,260 | 132,362 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 93,297 | 162,054 | 125,260 | 132,362 |
Outstanding loan balances evaluated for impairment: Individually | 155,296 | 192,017 | 164,766 | 203,635 |
Outstanding loan balances evaluated for impairment: Collectively | 20,738,777 | 19,174,835 | 21,988,007 | 19,358,667 |
Financial Receivable ,Unallocated [Member] | ||||
Beginning balance | 58,954 | 95,861 | 95,861 | 15,613 |
Provision for loan losses | (35,623) | (59,141) | (36,907) | 80,248 |
Charge offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 23,331 | 36,720 | 58,954 | 95,861 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 23,331 | 36,720 | 58,954 | 95,861 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 0 | 0 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | $ 0 | $ 0 | $ 0 | $ 0 |
Loans (Details Textual)
Loans (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for Loan, Lease, and Other Losses | $ 50,000 | $ 0 | $ 0 | $ 0 |
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | 0 | 330,485 | 200,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,215,565 | 2,348,275 | 2,443,681 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 571,161 | 994,469 | 956,813 | |
Participating Mortgage Loans, Participation Liabilities, Amount | 31,000,000 | 27,500,000 | ||
Federal Reserve Bank Advances [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Pledged as Collateral | 41,000,000 | |||
Federal Home Loan Bank of Atlanta [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Pledged as Collateral | 61,000,000 | |||
Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 752,889 | 956,813 | ||
Provision for Loan, Lease, and Other Losses | 7,580 | |||
Financing Receivable, Allowance for Credit Losses, Write-downs | 30,000 | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,171,599 | 2,183,509 | 2,240,046 | |
Financing Receivable, Modifications, Recorded Investment | 271,580 | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 241,580 | |||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 155,296 | 164,766 | 203,635 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | 0 | |
Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Recorded Investment, Nonaccrual Status | 571,161 | 752,889 | 956,813 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 6,768 | 9,507 | 38,028 | 35,631 |
Provision for Loan, Lease, and Other Losses | 86,859 | 16,587 | 167,211 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | 400,000 | 400,000 | 200,000 | |
Construction Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for Loan, Lease, and Other Losses | 90,411 | (26,612) | 97,878 | 48,771 |
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | $ 0 | $ 200,000 | $ 200,000 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 155,296 |
Capital Standards (Details)
Capital Standards (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total capital (to risk-weighted assets), Actual Amount | $ 42,159 | $ 41,385 | $ 38,908 |
Total capital (to risk-weighted assets), Actual Ratio | 12.75% | 13.18% | 13.69% |
Total capital (to risk-weighted assets), Minimum Capital Adequacy Amount | $ 30,576 | $ 27,076 | $ 22,739 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy Ratio | 9.25% | 8.63% | 8.00% |
Total capital (to risk-weighted assets),To Be Well Capitalized Amount | $ 33,055 | $ 31,392 | $ 28,424 |
Total capital (to risk-weighted assets),To Be Well Capitalized Ratio | 10.00% | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 39,745 | $ 39,022 | $ 36,325 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 12.02% | 12.43% | 12.78% |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy Amount | $ 23,965 | $ 20,797 | $ 17,055 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy Ratio | 7.25% | 6.63% | 6.00% |
Tier 1 capital (to risk-weighted assets),To Be Well Capitalized Amount | $ 26,444 | $ 25,114 | $ 22,739 |
Tier 1 capital (to risk-weighted assets),To Be Well Capitalized Ratio | 8.00% | 8.00% | 8.00% |
Common equity tier 1 (to risk- weighted assets), Actual Amount | $ 39,745 | $ 39,022 | $ 36,325 |
Common equity tier 1 (to risk- weighted assets), Actual Ratio | 12.02% | 12.43% | 12.78% |
Common equity tier 1 (to risk- weighted assets), Minimum Capital Adequacy Amount | $ 19,006 | $ 16,089 | $ 12,791 |
Common equity tier 1 (to risk- weighted assets), Minimum Capital Adequacy Ratio | 5.75% | 5.13% | 4.50% |
Common equity tier 1 (to risk- weighted assets),To Be Well Capitalized Amount | $ 21,486 | $ 20,405 | $ 18,476 |
Common equity tier 1 (to risk- weighted assets),To Be Well Capitalized Ratio | 6.50% | 6.50% | 6.50% |
Tier 1 leverage (to average assets), Actual Amount | $ 39,745 | $ 39,022 | $ 36,325 |
Tier 1 leverage (to average assets), Actual Ratio | 10.29% | 10.39% | 10.64% |
Tier 1 leverage (to average assets), Minimum Capital Adequacy Amount | $ 15,446 | $ 15,025 | $ 13,662 |
Tier 1 leverage (to average assets), Minimum Capital Adequacy Ratio | 4.00% | 4.00% | 4.00% |
Tier 1 leverage (to average assets),To Be Well Capitalized Amount | $ 19,307 | $ 18,781 | $ 17,077 |
Tier 1 leverage (to average assets),To Be Well Capitalized Ratio | 5.00% | 5.00% | 5.00% |
Capital Standards (Details Text
Capital Standards (Details Textual) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Description of Regulatory Requirements, Capital Adequacy Purposes | The implementation of the capital conservation buffer will begin on January 1, 2016, at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). | The implementation of the capital conservation buffer will begin on January 1, 2016, at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019). |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Balance, beginning of year | $ 13,148,726 | $ 12,732,702 |
Additions | 3,987,121 | 3,473,398 |
Amounts collected | (4,205,038) | (3,057,374) |
Change in related parties | (148,576) | 0 |
Balance, end of year | $ 12,782,233 | $ 13,148,726 |
Related Party Transactions (D68
Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Loans and Leases Receivable, Related Parties | $ 12,782,233 | $ 13,148,726 | $ 12,732,702 |
Deposits Liabilities Related parties | 15,933,380 | 13,732,380 | |
Payments to Fund Long-term Loans to Related Parties | 2,697 | 90,479 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Payments to Fund Long-term Loans to Related Parties | 1,000 | 3,000 | |
Retailer Affiliated with a Director [Member] | |||
Related Party Transaction [Line Items] | |||
Payments to Fund Long-term Loans to Related Parties | 82 | 2,779 | |
Letter of Credit [Member] | |||
Related Party Transaction [Line Items] | |||
Loans and Leases Receivable, Related Parties | 6,534 | 6,534 | |
Unused lines of Credit [Member] | |||
Related Party Transaction [Line Items] | |||
Loans and Leases Receivable, Related Parties | $ 2,220,128 | $ 2,240,340 |
Fair Value (Details)
Fair Value (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | $ 33,234,293 | $ 34,385,939 | $ 23,644,584 |
Assets, Fair Value Disclosure, Nonrecurring | 414,000 | ||
Other real estate owned [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 414,000 | 414,000 | 472,500 |
Impaired Loans [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 3,699,867 | 3,318,577 | 3,233,283 |
Mutual Fund [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 495,216 | 492,243 | 492,243 |
SBA pools [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 2,798,485 | 2,263,834 | 2,263,834 |
US Treasury and Government [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 1,562,700 | 1,566,327 | 1,349,242 |
Collateralized Mortgage Backed Securities [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 28,377,892 | 30,063,535 | 22,295,342 |
Fair Value, Inputs, Level 1 [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 495,216 | 492,243 | 0 |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Other real estate owned [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 495,216 | 492,243 | 492,243 |
Fair Value, Inputs, Level 1 [Member] | SBA pools [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 32,739,077 | 33,893,696 | 23,644,584 |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Other real estate owned [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | SBA pools [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 2,798,485 | 2,263,834 | 2,263,834 |
Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 1,562,700 | 1,566,327 | 1,349,242 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 28,377,892 | 30,063,535 | 22,295,342 |
Fair Value, Inputs, Level 3 [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Assets, Fair Value Disclosure, Nonrecurring | 414,000 | ||
Fair Value, Inputs, Level 3 [Member] | Other real estate owned [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 414,000 | 472,500 | |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Nonrecurring | 3,699,867 | 3,318,577 | 3,233,283 |
Fair Value, Inputs, Level 3 [Member] | Mutual Fund [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | SBA pools [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Treasury and Government [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Available for sale securities | |||
Assets, Fair Value Disclosure, Recurring | $ 0 | $ 0 | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 414,000 | |
Ending Balance | $ 414,000 | |
Other real estate owned [Member] | ||
Beginning balance | 414,000 | 472,500 |
Additions | 0 | 0 |
Advances | 0 | 0 |
Write-downs | (58,500) | |
Loan loss provision | 0 | 0 |
Principal payments received | 0 | 0 |
Ending Balance | 414,000 | 414,000 |
Impaired Loans [Member] | ||
Beginning balance | 3,318,577 | 3,233,283 |
Additions | 667,331 | 271,580 |
Advances | 221,677 | 604,695 |
Write-downs | (230,000) | |
Loan loss provision | (62,692) | 143,044 |
Principal payments received | (445,026) | (704,025) |
Ending Balance | $ 3,699,867 | $ 3,318,577 |
Fair Value (Details 2)
Fair Value (Details 2) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | |||||
Cash and cash equivalents, Carrying Value | $ 18,693,431 | $ 13,312,915 | $ 16,679,789 | $ 20,192,839 | $ 12,583,313 |
Securities held to maturity, Carrying Value | 18,105,982 | 17,987,628 | 16,604,067 | ||
Federal Home Loan Bank stock, Carrying Value | 893,600 | 778,300 | 758,100 | ||
Loans, net, Carrying Value | 312,287,255 | 295,286,572 | 268,249,402 | ||
Federal Home Loan Bank stock, Estimated Fair Value | 893,600 | ||||
Financial liabilities | |||||
Noninterest-bearing deposits, Carrying Value | 58,640,811 | 62,791,835 | 58,043,942 | ||
Securities sold under repurchase agreements, Carrying Value | 28,037,122 | 27,226,159 | 20,490,619 | ||
Interest-bearing deposits, Carrying Value | 256,984,003 | 239,923,301 | 217,920,795 | ||
Federal Home Loan Bank advances, Carrying Value | 13,000,000 | 9,000,000 | 11,000,000 | ||
Fair Value, Inputs, Level 1 [Member] | |||||
Financial assets | |||||
Cash and cash equivalents, Carrying Value | 18,693,431 | 13,312,915 | 20,192,939 | ||
Cash and cash equivalents, Estimated Fair Value | 18,693,431 | 13,312,915 | 20,192,939 | ||
Financial liabilities | |||||
Noninterest-bearing deposits, Carrying Value | 58,640,811 | 62,791,835 | 58,043,942 | ||
Securities sold under repurchase agreements, Carrying Value | 28,037,122 | 27,226,159 | 20,490,619 | ||
Noninterest-bearing deposits, Estimated Fair Value | 58,640,811 | 62,791,835 | 58,043,942 | ||
Securities sold under repurchase agreements, Estimated Fair Value | 28,037,122 | 27,226,159 | 20,490,619 | ||
Fair Value, Inputs, Level 2 [Member] | |||||
Financial assets | |||||
Securities held to maturity, Carrying Value | 18,105,982 | 17,987,628 | 16,604,067 | ||
Mortgage loans held for sale, Carrying Value | 0 | 884,500 | 0 | ||
Federal Home Loan Bank stock, Carrying Value | 778,300 | 758,100 | |||
Securities held to maturity, Estimated Fair Value | 18,027,936 | 17,833,799 | 16,886,897 | ||
Mortgage loans held for sale, Estimated Fair Value | 0 | 902,061 | 0 | ||
Federal Home Loan Bank stock, Estimated Fair Value | 778,300 | 758,100 | |||
Financial liabilities | |||||
Interest-bearing deposits, Carrying Value | 256,984,003 | 239,923,301 | 217,920,795 | ||
Federal Home Loan Bank advances, Carrying Value | 13,000,000 | 9,000,000 | 11,000,000 | ||
Interest-bearing deposits, Estimated Fair Value | 246,279,003 | 230,394,000 | 211,316,000 | ||
Federal Home Loan Bank advances, Estimated Fair Value | 12,958,000 | 8,975,000 | 11,006,000 | ||
Fair Value, Inputs, Level 3 [Member] | |||||
Financial assets | |||||
Loans, net, Carrying Value | 312,287,255 | 295,286,572 | 268,249,402 | ||
Loans, net, Estimated Fair Value | $ 313,825,255 | $ 297,982,000 | $ 269,852,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | 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 | |
Net income | $ 983,557 | $ 1,016,101 | $ 1,040,372 | $ 916,188 | $ 936,468 | $ 1,081,074 | $ 1,236,261 | $ 1,022,579 | $ 928,308 | $ 3,909,129 | $ 4,268,222 |
Weighted average shares outstanding | 1,656,390 | 1,647,541 | |||||||||
Earnings per share - basic and diluted | $ 0.59 | $ 0.61 | $ 0.63 | $ 0.56 | $ 0.57 | $ 0.66 | $ 0.75 | $ 0.63 | $ 0.57 | $ 2.37 | $ 2.61 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | |
Property, Plant and Equipment, Gross | $ 11,103,159 | $ 10,921,619 | |
Accumulated depreciation and amortization | 5,653,481 | 5,273,686 | |
Property, Plant and Equipment, Net | 5,449,678 | 5,647,933 | $ 5,384,550 |
Depreciation and amortization expense | 379,795 | 339,269 | |
Land Improvements [Member] | |||
Property, Plant and Equipment, Gross | 1,952,998 | 1,952,998 | |
Building Improvements [Member] | |||
Property, Plant and Equipment, Gross | $ 5,659,635 | 5,659,635 | |
Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Estimated Useful Lives | 39 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Estimated Useful Lives | 15 years | ||
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment, Gross | $ 3,490,526 | $ 3,308,986 | |
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Estimated Useful Lives | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Premises and Equipment (Detai74
Premises and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets, Net (Excluding Goodwill) | $ 185,253 | $ 251,983 |
Amortization of Intangible Assets | $ 69,100 | $ 46,442 |
Post-retirement plans (Details
Post-retirement plans (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | 4.00% | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | 100.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 43,460 | $ 40,455 | $ 165,224 | $ 153,534 |
Defined Benefit Plan, Net Periodic Benefit Cost | 1,307 | 1,204 | 4,816 | 4,433 |
Supplemental Executive Retirement Plans [Member] | ||||
Defined Benefit Plan, Interest Cost | $ 63,600 | $ 62,392 | $ 240,193 | $ 228,929 |
Lease Commitments (Details)
Lease Commitments (Details) | Dec. 31, 2016USD ($) |
2,017 | $ 108,993 |
2,018 | 83,835 |
2,019 | 72,678 |
2,020 | 24,303 |
2,021 | 0 |
Thereafter | 0 |
Operating Leases, Future Minimum Payments Due | $ 289,809 |
Lease Commitments (Details Text
Lease Commitments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense | $ 128,200 | $ 103,140 |
Credit Commitments (Details)
Credit Commitments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable, Commitments to Purchase or Sell | $ 22,329,407 | $ 20,146,130 |
Letter of Credit [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 1,281,848 | 1,408,460 |
Unused lines of Credit [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 30,527,535 | 36,539,067 |
Construction Loans [Member] | Loan Origination Commitments [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 250,000 | 0 |
Commercial Loan [Member] | Loan Origination Commitments [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 1,050,000 | 482,000 |
Commercial Real Estate [Member] | Loan Origination Commitments [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 17,134,718 | 14,898,000 |
Residential Portfolio Segment [Member] | Loan Origination Commitments [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 3,894,689 | 4,766,130 |
Home Equity Loan [Member] | Unused lines of Credit [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | 3,345,309 | 3,307,863 |
Commercial lines [Member] | Unused lines of Credit [Member] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | $ 27,182,226 | $ 33,231,204 |
Interest-Bearing Deposits (Deta
Interest-Bearing Deposits (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
NOW | $ 40,090,252 | $ 35,533,282 | |
Money market | 64,859,044 | 52,598,431 | |
Savings | 40,158,833 | 36,343,747 | |
Certificates of deposit, $250,000 or more | 15,233,383 | 16,979,039 | |
Other time deposits | 79,581,789 | 76,466,296 | |
Interest-bearing Deposit Liabilities | $ 256,984,003 | $ 239,923,301 | $ 217,920,795 |
Interest-Bearing Deposits (De80
Interest-Bearing Deposits (Details 1) | Dec. 31, 2016USD ($) |
2,017 | $ 44,931,000 |
2,018 | 22,124,546 |
2,019 | 20,824,692 |
2,020 | 3,325,772 |
2,021 | 3,509,162 |
Thereafter | 100,000 |
Time Deposits | $ 94,815,172 |
Borrowed Funds (Details)
Borrowed Funds (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | |
Securities sold under repurchase agreements | $ 27,226,159 | $ 20,490,619 | $ 28,037,122 |
Federal Home Loan Bank of Atlanta advances | 9,000,000 | 11,000,000 | $ 13,000,000 |
Federal Home Loan Bank advances mature in: | |||
2,016 | 0 | 5,000,000 | |
2,017 | 2,000,000 | 1,000,000 | |
2,018 | 5,000,000 | 5,000,000 | |
2,019 | $ 2,000,000 | $ 0 | |
Weighted average rate, federal Home Loan Bank advances (at percentage) | 1.11% | 0.94% | |
Federal Home Loan Bank advances | $ 16,000,000 | $ 11,000,000 | |
Federal Home Loan Bank, Advances, Activity for Year, Average Balance of Agreements Outstanding | $ 10,833,333 | $ 10,778,082 | |
Average rate, federal Home Loan Bank advances (at percentage) | 0.94% | 0.75% | |
Investment securities underlying the repurchase agreements at year end: Carrying value | $ 28,191,745 | $ 21,127,194 | |
Investment securities underlying the repurchase agreements at year end: Estimated fair value | 28,165,979 | 21,355,393 | |
Loans pledged to the Federal Home Loan Bank at year-end: Carrying value | 60,858,326 | 57,812,753 | |
Loans pledged to the Federal Reserve Bank at year-end: Carrying value | $ 40,954,231 | $ 34,487,029 | |
Securities Sold under Agreements to Repurchase [Member] | |||
Federal Home Loan Bank advances mature in: | |||
Weighted average rate, securities sold under repurchase agreements (at percentage) | 0.63% | 0.53% | |
Securities sold under repurchase agreements | $ 32,287,740 | $ 20,655,156 | |
Short-term Debt, Average Outstanding Amount | $ 25,320,795 | $ 18,582,245 | |
Average rate, securities sold under repurchase agreements (at percentage) | 0.64% | 0.54% | |
Borrowings from FRB and Commercial Banks [Member] | |||
Federal Home Loan Bank advances mature in: | |||
Short-term Debt, Average Outstanding Amount | $ 21,861 | $ 2,742 | |
Average rate, securities sold under repurchase agreements (at percentage) | 0.67% | 0.52% |
Borrowed Funds (Details Textual
Borrowed Funds (Details Textual) $ in Millions | Dec. 31, 2016USD ($) |
Federal Reserve Bank Advances [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30.3 |
Secured Line of Credit [Member] | |
Long-term Line of Credit | 2 |
Secured Line of Credit [Member] | Federal Home Loan Bank of Atlanta [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | 53.3 |
Unsecured Line of Credit [Member] | |
Long-term Line of Credit | $ 9 |
Other Noninterest Expenses (Det
Other Noninterest Expenses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Noninterest Expense | $ 640,260 | $ 603,670 | $ 2,356,494 | $ 2,082,134 |
Automated teller machine and debit card expenses [Member] | ||||
Other Noninterest Expense | 331,368 | 263,220 | ||
Professional services [Member] | ||||
Other Noninterest Expense | 311,702 | 224,333 | ||
Advertising [Member] | ||||
Other Noninterest Expense | 217,116 | 196,112 | ||
Directors fees [Member] | ||||
Other Noninterest Expense | 189,263 | 188,476 | ||
Stationery, printing, and supplies [Member] | ||||
Other Noninterest Expense | 188,070 | 153,491 | ||
Telephone [Member] | ||||
Other Noninterest Expense | 185,532 | 149,375 | ||
Postage, delivery, and armored carrier [Member] | ||||
Other Noninterest Expense | 179,344 | 179,109 | ||
Federal Deposit Insurance Corporation premiums [Member] | ||||
Other Noninterest Expense | 147,940 | 168,135 | ||
Internet banking fees [Member] | ||||
Other Noninterest Expense | 143,210 | 111,471 | ||
Correspondent bank services [Member] | ||||
Other Noninterest Expense | 79,278 | 63,240 | ||
Travel and conferences [Member] | ||||
Other Noninterest Expense | 48,970 | 56,173 | ||
Liability insurance [Member] | ||||
Other Noninterest Expense | 46,917 | 46,880 | ||
Maryland state regulatory assessment [Member] | ||||
Other Noninterest Expense | 41,531 | 39,279 | ||
Dues and subscriptions [Member] | ||||
Other Noninterest Expense | 39,752 | 37,538 | ||
Remote deposit expenses [Member] | ||||
Other Noninterest Expense | 29,722 | 28,782 | ||
Credit reports [Member] | ||||
Other Noninterest Expense | 25,276 | 21,619 | ||
Contributions [Member] | ||||
Other Noninterest Expense | 23,160 | 22,715 | ||
Education and training [Member] | ||||
Other Noninterest Expense | 15,669 | 11,378 | ||
Other real estate owned [Member] | ||||
Other Noninterest Expense | 15,252 | 32,695 | ||
Other Miscellaneous [Member] | ||||
Other Noninterest Expense | $ 97,422 | $ 88,113 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | ||||
Federal | $ 1,355,273 | $ 1,893,991 | ||
State | 364,394 | 541,064 | ||
Current Income Tax Expense (Benefit), Total | 1,719,667 | 2,435,055 | ||
Deferred | 307,153 | 95,150 | ||
Income Tax Expense (Benefit), Total | $ 357,118 | $ 516,200 | $ 2,026,820 | $ 2,530,205 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Depreciation | $ (46,226) | $ 106,757 |
Provision for loan losses | 96,206 | 31,094 |
Other real estate owned allowance for loss | (23,075) | 63,403 |
Nonaccrual interest | (15,000) | (14,054) |
Prepaid captive insurance premium | 393,735 | 0 |
Post-retirement benefits | (96,624) | (92,050) |
Deferred Income Tax Expense (Benefit), Total | 307,153 | 95,150 |
Deferred tax assets | ||
Allowance for loan losses | 765,966 | 862,172 |
Other real estate owned allowance for loss | 246,925 | 223,850 |
Write-down of equity securities | 5,522 | 5,522 |
Nonaccrual interest | 29,055 | 14,054 |
Post-retirement benefits | 520,410 | 423,786 |
Unrealized loss on securities available for sale | 182,588 | 66,522 |
Deferred Tax Assets, Net of Valuation Allowance, Total | 1,750,466 | 1,595,906 |
Deferred tax liabilities | ||
Prepaid captive insurance premium | 393,735 | 0 |
Depreciation | 329,575 | 375,801 |
Deferred Tax Liabilities, Total | 723,310 | 375,801 |
Net deferred tax asset, Total | $ 1,027,156 | $ 1,220,105 |
Income Taxes (Details 2)
Income Taxes (Details 2) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory federal income tax rate | 34.00% | 34.00% |
Increase (decrease) resulting from: | ||
Federal tax-exempt income | (4.90%) | (2.20%) |
State income taxes, net of federal income tax benefit | 4.90% | 5.20% |
Nondeductible expenses | 0.10% | 0.10% |
Other | 0.00% | 0.10% |
Effective Income Tax Rate Reconciliation, Percent | 34.10% | 37.20% |
Quarterly Results of Operatio87
Quarterly Results of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | 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 | |
Interest income | $ 3,976,612 | $ 3,992,191 | $ 3,856,566 | $ 3,731,160 | $ 3,771,580 | $ 3,728,982 | $ 3,685,503 | $ 3,671,377 | $ 3,619,539 | $ 15,351,497 | $ 14,705,401 |
Interest expense | 385,713 | 368,885 | 340,099 | 322,540 | 314,596 | 313,295 | 303,055 | 289,256 | 284,040 | 1,346,120 | 1,189,646 |
Net interest income | 3,590,899 | 3,623,306 | 3,516,467 | 3,408,620 | 3,456,984 | 3,415,687 | 3,382,448 | 3,382,121 | 3,335,499 | 14,005,377 | 13,515,755 |
Provision for loan losses | 50,000 | 0 | 0 | 0 | 0 | (15,000) | 0 | 0 | 15,000 | 0 | 0 |
Net income | $ 983,557 | $ 1,016,101 | $ 1,040,372 | $ 916,188 | $ 936,468 | $ 1,081,074 | $ 1,236,261 | $ 1,022,579 | $ 928,308 | $ 3,909,129 | $ 4,268,222 |
Earnings per share - basic and diluted | $ 0.59 | $ 0.61 | $ 0.63 | $ 0.56 | $ 0.57 | $ 0.66 | $ 0.75 | $ 0.63 | $ 0.57 | $ 2.37 | $ 2.61 |