Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 10, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Farmers & Merchants Bancshares, Inc. | |
Entity Central Index Key | 1,698,022 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | FMFG | |
Entity Common Stock, Shares Outstanding | 1,667,863 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 11,812,127 | $ 6,235,186 |
Federal funds sold and other interest-bearing deposits | 795,257 | 1,002,199 |
Cash and cash equivalents | 12,607,384 | 7,237,385 |
Certificates of deposit in other bank | 342,000 | 100,000 |
Securities available for sale | 26,210,176 | 27,929,510 |
Securities held to maturity | 18,209,647 | 18,204,182 |
Equity security at fair value | 507,560 | 503,881 |
Federal Home Loan Bank stock, at cost | 979,600 | 1,063,600 |
Mortgage loans held for sale | 300,000 | 327,700 |
Loans, less allowance for loan losses of $2,501,955 and $2,458,911 | 337,119,741 | 332,533,706 |
Premises and equipment | 5,141,568 | 5,206,271 |
Accrued interest receivable | 1,027,198 | 1,020,256 |
Deferred income taxes | 1,083,876 | 998,032 |
Other real estate owned | 265,500 | 265,500 |
Bank owned life insurance | 6,931,495 | 6,891,590 |
Other assets | 611,813 | 622,856 |
Assets | 411,337,558 | 402,904,469 |
Deposits | ||
Noninterest-bearing | 59,185,184 | 64,403,133 |
Interest-bearing | 274,613,264 | 255,393,291 |
Total deposits | 333,798,448 | 319,796,424 |
Securities sold under repurchase agreements | 19,604,308 | 21,768,507 |
Federal Home Loan Bank of Atlanta advances | 12,500,000 | 17,000,000 |
Accrued interest payable | 228,686 | 180,620 |
Other liabilities | 2,509,634 | 2,359,986 |
Liabilities | 368,641,076 | 361,105,537 |
Stockholders' equity | ||
Common stock, par value $.01 per share, authorized 5,000,000 shares; issued and outstanding 1,667,863 in 2018 and 1,667,813 shares in 2017 | 16,679 | 16,678 |
Additional paid-in capital | 26,871,345 | 26,869,796 |
Retained earnings | 16,418,327 | 15,306,625 |
Accumulated other comprehensive income | (609,869) | (394,167) |
Stockholders' Equity Attributable to Parent | 42,696,482 | 41,798,932 |
Liabilities and Stockholders' Equity | $ 411,337,558 | $ 402,904,469 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable, Allowance | $ 2,501,955 | $ 2,458,911 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 1,667,863 | 1,667,813 |
Common Stock, Shares, Outstanding | 1,667,863 | 1,667,813 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income | ||
Loans, including fees | $ 3,933,155 | $ 3,616,168 |
Investment securities - taxable | 154,860 | 195,745 |
Investment securities - tax exempt | 142,763 | 147,254 |
Federal funds sold and other interest earning assets | 26,968 | 17,445 |
Total interest income | 4,257,746 | 3,976,612 |
Interest expense | ||
Deposits | 438,410 | 310,805 |
Securities sold under repurchase agreements | 34,389 | 46,515 |
Federal Home Loan Bank advances and other borrowings | 62,962 | 28,393 |
Total interest expense | 535,761 | 385,713 |
Net interest income | 3,721,985 | 3,590,899 |
Provision for loan losses | 50,000 | 50,000 |
Net interest income after provision for loan losses | 3,671,985 | 3,540,899 |
Noninterest income | ||
Service charges on deposit accounts | 161,840 | 176,890 |
Mortgage banking income | 54,193 | 57,781 |
Bank owned life insurance income | 39,905 | 42,916 |
Gain on sale of loans | 60,508 | 0 |
Other fees and commissions | 23,834 | 25,457 |
Total noninterest income | 340,280 | 303,044 |
Noninterest expense | ||
Salaries | 1,283,510 | 1,158,895 |
Employee benefits | 367,454 | 355,541 |
Occupancy | 177,533 | 183,803 |
Furniture and equipment | 161,616 | 164,769 |
Other | 639,177 | 640,260 |
Total noninterest expense | 2,629,290 | 2,503,268 |
Income before income taxes | 1,382,975 | 1,340,675 |
Income taxes | 260,857 | 357,118 |
Net income | $ 1,122,118 | $ 983,557 |
Earnings per share - basic and diluted | $ 0.67 | $ 0.59 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 1,122,118 | $ 983,557 |
Securities available for sale | ||
Net unrealized gain (loss) arising during the period | (311,961) | 6,446 |
Reclassification adjustment for realized gains and losses included in net income | 0 | 0 |
Total unrealized gain (loss) on investment securities available for sale | (311,961) | 6,446 |
Income tax expense (benefit) relating to investment securities available for sale | (85,843) | 2,543 |
Total other comprehensive income (loss) | (226,118) | 3,903 |
Total comprehensive income | $ 896,000 | $ 987,460 |
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, 2016 | $ 39,012,277 | $ 16,564 | $ 26,562,919 | $ 12,713,099 | $ (280,305) |
Beginning Balance (in shares) at Dec. 31, 2016 | 1,656,390 | ||||
Net income | 983,557 | $ 0 | 0 | 983,557 | 0 |
Unrealized gain on securities available for sale net of income tax expense | 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 | ||||
Beginning Balance at Dec. 31, 2017 | 41,798,932 | $ 16,678 | 26,869,796 | 15,306,625 | (394,167) |
Beginning Balance (in shares) at Dec. 31, 2017 | 1,667,813 | ||||
Net income | 1,122,118 | $ 0 | 0 | 1,122,118 | 0 |
Unrealized gain on securities available for sale net of income tax expense | (226,118) | 0 | 0 | 0 | (226,118) |
Shares issued | 1,550 | $ 1 | 1,549 | 0 | 0 |
Shares issued (in share) | 50 | ||||
Ending Balance at Mar. 31, 2018 | 42,696,482 | $ 16,679 | 26,871,345 | 16,418,327 | (609,869) |
Ending Balance (in shares) at Mar. 31, 2018 | 1,667,863 | ||||
Reclassification due to adoption of ASU No. 2016-01 | $ 0 | $ (10,416) | $ 10,416 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent | $ (85,843) | $ 2,543 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Interest received | $ 4,238,900 | $ 4,034,095 |
Fees and commissions received | 238,907 | 260,129 |
Interest paid | (487,695) | (358,044) |
Proceeds from sale of mortgage loans held for sale | 2,567,407 | 2,933,010 |
Origination of mortgage loans held for sale | (2,539,707) | (2,048,510) |
Cash paid to suppliers and employees | (2,609,031) | (968,190) |
Income taxes paid, net of refunds received | 0 | 12,896 |
Cash provided by operating activities | 1,408,781 | 3,865,386 |
Proceeds from maturity and call of securities | ||
Available for sale | 1,364,864 | 1,699,637 |
Held to maturity | 0 | 385,000 |
Purchase of securities | ||
Available for sale | 0 | (566,250) |
Held to maturity | 0 | (503,530) |
Proceeds from sale of loans | 668,508 | 0 |
Purchase of certificate of deposit | (242,000) | 0 |
Loans made to customers, net of principal collected | (5,234,852) | (17,076,599) |
(Purchase) redemption of stock in FHLB of Atlanta | 84,000 | (115,300) |
Purchases of premises, equipment and software | (18,677) | (28,469) |
Cash used by investing activities | (3,378,157) | (16,205,511) |
Net increase (decrease) in | ||
Noninterest-bearing deposits | (5,217,949) | (4,151,024) |
Interest-bearing deposits | 19,219,973 | 17,060,702 |
Securities sold under repurchase agreements | (2,164,199) | 810,963 |
Federal Home Loan Bank of Atlanta advances | (4,500,000) | 4,000,000 |
Common stock issued | 1,550 | 0 |
Cash provided by financing activities | 7,339,375 | 17,720,641 |
Net increase (decrease) in cash and cash equivalents | 5,369,999 | 5,380,516 |
Cash and cash equivalents at beginning of period | 7,237,385 | 13,312,915 |
Cash and cash equivalents at end of period | 12,607,384 | 18,693,431 |
Reconciliation of net income to net cash provided by operating activities | ||
Net income | 1,122,118 | 983,557 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 97,862 | 109,699 |
Provision for loan losses | 50,000 | 50,000 |
Net loss (gain) on sale of investment securities: | ||
Mutual fund dividend reinvested | (2,721) | (2,505) |
Mutual fund unrealized gain included in net income | (960) | 0 |
Gain on sale of loans | (60,508) | 0 |
Decrease (increase) in mortgage loans held for sale | 27,700 | 884,500 |
Amortization of premiums and accretion of discounts, net | 37,045 | 27,386 |
Increase (decrease) in | ||
Deferred loan fees | (9,183) | 25,916 |
Accrued interest payable | 48,066 | 27,669 |
Other liabilities | 149,648 | 53,661 |
Decrease (increase) in | ||
Accrued interest receivable | (6,942) | 34,072 |
Bank owned life insurance cash surrender value | (39,905) | (42,915) |
Other assets | (3,439) | 1,714,346 |
Cash provided by operating activities | $ 1,408,781 | $ 3,865,386 |
Principles of consolidation
Principles of consolidation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [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 constitutes an investment in a series of membership interests, 100 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 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 and Rule 8-03 of Regulation S-X. 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, 2018 do not necessarily reflect the results that may be expected for the entire fiscal year ending December 31, 2018 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, 2017, which are included in Farmers and Merchants Bancshares, Inc.’s Annual Report on Form 10-K. In January 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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, 2017, and for interim periods within those fiscal years. 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 adopted the provisions of ASU 2016-01, effective January 1, 2018, by recording a $ 10,416 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 from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. 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 expects that the impact that ASU 2016-02 will be to increase assets and liabilities equally by approximately $ 1,400,000 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 and has begun developing an implementation plan. In March 2017, the FASB issued ASU 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, and interim periods within those fiscal years, beginning after December 15, 2018 and is not expected to have a significant impact on our financial statements. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Amortized Unrealized Unrealized Fair March 31, 2018 cost gains losses value Available for sale State and municipal $ 1,509,612 $ 29,916 $ 9,230 $ 1,530,298 SBA pools 3,128,577 - 12,653 3,115,924 Mortgage-backed securities 22,413,388 - 849,434 21,563,954 $ 27,051,577 $ 29,916 $ 871,317 $ 26,210,176 Held to maturity State and municipal $ 18,209,647 $ 121,294 $ 234,163 $ 18,096,778 Amortized Unrealized Unrealized Fair December 31, 2017 cost gains losses value Available for sale State and municipal $ 1,510,848 $ 38,494 $ 10,135 $ 1,539,207 SBA pools 3,212,771 75 13,000 3,199,846 Mortgage-backed securities 23,735,332 8,787 553,662 23,190,457 $ 28,458,951 $ 47,356 $ 576,797 $ 27,929,510 Held to maturity State and municipal $ 18,204,182 $ 225,349 $ 121,904 $ 18,307,627 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, 2018 cost value cost value Within one year $ - $ - $ 369,563 $ 372,228 Over one to five years 262,393 253,162 1,084,151 1,098,865 Over five to ten years 870,839 892,438 1,791,706 1,811,736 Over ten years 376,380 384,698 14,964,227 14,813,949 1,509,612 1,530,298 18,209,647 18,096,778 Mortgage-backed securities and SBA pools, due in monthly installments 25,541,965 24,679,878 - - $ 27,051,577 $ 26,210,176 $ 18,209,647 $ 18,096,778 December 31, 2017 Within one year $ - $ - $ 165,677 $ 168,260 Over one to five years - - 780,336 794,512 Over five to ten years 1,133,940 1,150,564 1,792,019 1,831,833 Over ten years 376,908 388,643 15,466,150 15,513,022 1,510,848 1,539,207 18,204,182 18,307,627 Mortgage-backed securities and SBA pools, due in monthly installments 26,948,103 26,390,303 - - $ 28,458,951 $ 27,929,510 $ 18,204,182 $ 18,307,627 Securities with a carrying value of $ 30,211,279 31,982,381 The following table sets forth the Company’s gross unrealized losses on a continuous basis for investments in debt securities, by category and length of time, at March 31, 2018 and December 31, 2017. March 31, 2018 Less than 12 months 12 months or more Total Description of investments Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized State and municipal $ 5,029,674 $ 48,774 $ 2,879,196 $ 194,619 $ 7,908,870 $ 243,393 SBA pools 1,062,013 3,654 2,053,911 8,999 3,115,924 12,653 Mortgage-backed securities 2,781,172 76,040 18,782,782 773,394 21,563,954 849,434 Total $ 8,872,859 $ 128,468 $ 23,715,889 $ 977,012 $ 32,588,748 $ 1,105,480 December 31, 2017 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 $ 812,630 $ 1,519 $ 3,444,443 $ 130,520 $ 4,257,073 $ 132,039 SBA pools 551,780 1,903 2,109,832 11,097 2,661,612 13,000 Mortgage-backed securities 2,871,597 41,413 19,571,511 512,249 22,443,108 553,662 Total $ 4,236,007 $ 44,835 $ 25,125,786 $ 653,866 $ 29,361,793 $ 698,701 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, 2018 and December 31, 2017, 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, 2018 and December 31, 2017, 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. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. Loans March 31, December 31, 2018 2017 Real estate: Commercial $ 237,368,139 $ 234,026,574 Construction and land development 19,247,095 18,160,366 Residential 59,083,653 59,241,416 Commercial 23,996,157 23,613,543 Consumer 520,768 554,017 340,215,812 335,595,916 Less: Allowance for loan losses 2,501,955 2,458,911 Deferred origination fees net of costs 594,116 603,299 $ 337,119,741 $ 332,533,706 March 31, December 31, 2018 2017 Commercial real estate $ 2,245,743 $ 2,245,743 At March 31, 2018, the Company had one $ 2,245,743 $ 34,179 $ 28,577 $ 275,000 At December 31, 2017, the Company had one nonaccrual commercial real estate loan totaling $ 2,245,743 82,070 127,213 275,000 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, 2018 Real estate: Commercial $ 577,288 $ 1,571,050 $ 2,245,743 $ 4,394,081 $ 232,974,058 $ 237,368,139 $ - Construction and land development - - - - 19,247,095 19,247,095 - Residential 12,448 46,868 - 59,316 59,024,337 59,083,653 - Commercial - - - - 23,996,157 23,996,157 - Consumer - - - - 520,768 520,768 - Total $ 589,736 $ 1,617,918 $ 2,245,743 $ 4,453,397 $ 335,762,415 $ 340,215,812 $ - December 31, 2017 Real estate: Commercial $ - $ - $ 2,245,743 $ 2,245,743 $ 231,780,831 $ 234,026,574 $ - Construction and land development - - - - 18,160,366 18,160,366 - Residential - - 146,459 146,459 59,094,957 59,241,416 146,459 Commercial - - - - 23,613,543 23,613,543 - Consumer - - - - 554,017 554,017 - Total $ - $ - $ 2,392,202 $ 2,392,202 $ 333,203,714 $ 335,595,916 $ 146,459 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, 2018 Commercial real estate $ 4,671,741 $ 2,150,998 $ 2,245,743 $ 4,396,741 $ 28,577 $ 4,789,962 $ 26,999 December 31, 2017 Commercial real estate $ 5,458,182 $ 2,937,439 $ 2,245,743 $ 5,183,182 $ 127,213 $ 2,591,591 $ 268,652 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, 2018, the Company had one $ 2,150,998 At December 31, 2017, the Company had three commercial real estate loans totaling $2,937,439 classified as TDRs. Two loans totaling $774,274 were restructured as TDRs during 2017 and were paid off during the quarter ended March 31, 2018. All are included in impaired loans above. The remaining loan is paying as agreed. There have been no charge-offs or allowances associated with these three loans. 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. Loans by credit grade, segregated by loan type, are as follows: Above Pass Special March 31, 2018 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 5,889,617 $ 115,158,666 $ 88,862,495 $ 15,228,108 $ 7,550,301 $ 2,433,209 $ 2,245,743 $ 237,368,139 Construction and land development - 1,038,353 6,979,511 7,231,069 3,998,162 - - - 19,247,095 Residential 41,435 1,190,516 31,896,681 21,929,125 3,378,805 - 647,091 - 59,083,653 Commercial 1,565,870 120,006 12,840,759 9,320,008 149,514 - - - 23,996,157 Consumer - 93,506 329,882 64,046 - - 2,340 30,994 520,768 $ 1,607,305 $ 8,331,998 $ 167,205,499 $ 127,406,743 $ 22,754,589 $ 7,550,301 $ 3,082,640 $ 2,276,737 $ 340,215,812 Above Pass Special December 31, 2017 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 6,115,925 $ 127,639,361 $ 79,619,726 $ 9,041,882 $ 5,391,589 $ 3,972,348 $ 2,245,743 $ 234,026,574 Construction and land development - 173,633 9,288,372 4,978,964 3,719,397 - - - 18,160,366 Residential 53,948 1,260,128 35,254,016 18,659,174 3,363,570 - 650,580 - 59,241,416 Commercial 1,581,878 121,919 16,225,350 5,545,562 138,834 - - - 23,613,543 Consumer 5,210 96,484 351,093 70,171 - - 2,640 28,419 554,017 $ 1,641,036 $ 7,768,089 $ 188,758,192 $ 108,873,597 $ 16,263,683 $ 5,391,589 $ 4,625,568 $ 2,274,162 $ 335,595,916 The Company’s allowance for loan losses is based on management’s evaluation of the risks inherent in the Company’s The following table details activity in the allowance for loan losses by portfolio for the three months ended March 31, 2018 and 2017, and the year ended December 31, 2017. 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, 2018 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,867,397 $ 62,323 $ - $ 2,000 $ 1,931,720 $ 28,577 $ 1,903,143 $ 4,396,741 $ 232,971,398 Construction and land development 223,274 16,225 (10,622) - 228,877 - 228,877 - 19,247,095 Residential 247,953 (722) - - 247,231 - 247,231 - 59,083,653 Commercial 87,353 (2,648) - 1,666 86,371 - 86,371 - 23,996,157 Consumer 7,027 729 - - 7,756 - 7,756 - 520,768 Unallocated 25,907 (25,907) - - - - - - - $ 2,458,911 $ 50,000 $ (10,622) $ 3,666 $ 2,501,955 $ 28,577 $ 2,473,378 $ 4,396,741 $ 335,819,071 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: December 31, 2017 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,717,749 $ 419,868 $ (275,000) $ 4,780 $ 1,867,397 $ 127,213 $ 1,740,184 $ 5,183,182 $ 228,843,392 Construction and land development 204,860 65,850 (47,436) - 223,274 - 223,274 - 18,160,366 Residential 247,437 368 - 148 247,953 - 247,953 - 59,241,416 Commercial 125,260 (41,240) - 3,333 87,353 - 87,353 - 23,613,543 Consumer 8,826 (1,799) - - 7,027 - 7,027 - 554,017 Unallocated 58,954 (33,047) - - 25,907 - 25,907 - - $ 2,363,086 $ 410,000 $ (322,436) $ 8,261 $ 2,458,911 $ 127,213 $ 2,331,698 $ 5,183,182 $ 330,412,734 |
Capital Standards
Capital Standards | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | 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”: (i) a common equity Tier 1 risk-based capital ratio of 6.5%; (ii) a Tier 1 risk-based capital ratio of 8%; (iii) a total risk-based capital ratio of 10%; and (iv) a Tier 1 leverage ratio of 5%. Management believes that, as of March 31, 2018, 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 began on January 1, 2016, at the 0.625% level and will 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 Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have current applicability to the Bank. Management believes that, as of March 31, 2018, the Bank met all capital adequacy requirements under the Basel III Capital Rules on a fully phased-in basis as if such requirements were currently in effect. 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, 2018 and December 31, 2017, 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, 2018 and December 31, 2017 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, 2018, 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. Capital ratios of the Company are substantially the same as the Bank’s. Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized March 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 44,929 12.58 % $ 35,280 9.88 % $ 35,727 10.00 % Tier 1 capital (to risk-weighted assets) 42,427 11.88 % 28,135 7.88 % 28,581 8.00 % Common equity tier 1 (to risk-weighted assets) 42,427 11.88 % 22,776 6.38 % 23,222 6.50 % Tier 1 leverage (to average assets) 42,427 10.42 % 16,286 4.00 % 20,357 5.00 % Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 44,039 12.54 % $ 32,477 9.25 % $ 35,110 10.00 % Tier 1 capital (to risk-weighted assets) 41,580 11.84 % 25,455 7.25 % 28,088 8.00 % Common equity tier 1 (to risk-weighted assets) 41,580 11.84 % 20,188 5.75 % 22,822 6.50 % Tier 1 leverage (to average assets) 41,580 10.31 % 16,135 4.00 % 20,169 5.00 % |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 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, 2018 Recurring Available for sale securities State and municipal $ - $ 1,530,298 $ - $ 1,530,298 SBA pools - 3,115,924 - 3,115,924 Mortgage-backed securities - 21,563,954 - 21,563,954 $ - $ 26,210,176 $ - $ 26,210,176 Equity security at fair value Mutual fund $ 507,560 $ - $ - $ 507,560 Nonrecurring Other real estate owned $ - $ - $ 265,500 $ 265,500 Impaired loans - - 4,368,164 4,368,164 December 31, 2017 Recurring Available for sale securities State and municipal $ - $ 1,539,207 $ - $ 1,539,207 SBA pools - 3,199,846 - 3,199,846 Mortgage-backed securities - 23,190,457 - 23,190,457 $ - $ 27,929,510 $ - $ 27,929,510 Equity security at fair value Mutual fund $ 503,881 $ - $ - $ 503,881 Nonrecurring Other real estate owned $ - $ - $ 265,500 $ 265,500 Impaired loans - - 5,055,969 5,055,969 March 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 1 inputs Cash and cash equivalents $ 12,607,384 $ 12,607,384 $ 7,237,385 $ 7,237,385 Level 2 inputs Securities held to maturity 18,209,647 18,096,778 18,204,182 18,307,627 Mortgage loans held for sale 300,000 305,134 327,700 332,558 Federal Home Loan Bank stock 979,600 979,600 1,063,600 1,063,600 Level 3 inputs Loans, net 337,119,741 334,821,812 332,533,706 332,689,848 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 59,185,184 $ 59,185,184 $ 64,403,133 $ 64,403,133 Securities sold under repurchase agreements 19,604,308 19,604,308 21,768,507 21,768,507 Level 2 inputs Interest-bearing deposits 274,613,264 259,104,264 255,393,291 244,403,281 Federal Home Loan Bank advances 12,500,000 12,437,000 17,000,000 16,957,000 The fair value of mortgage loans held for sale is determined by the expected sales price. Beginning in the first quarter 2018 the fair value of loans were determined using an exit price methodology as prescribed by ASU 2016-01, which became effective in the first quarter 2018. The exit price estimation of fair value is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital (Level 3). In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. In comparison, loan fair values as of December 31, 2017 were estimated based on an entrance price methodology. As a result the fair value adjustments as of March 31, 2018 and December 31, 2017 are not comparable. 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, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings per Share Basic earnings per share is determined by dividing net income available to stockholders by the weighted-average number of shares of common stock outstanding during the period and does not include the effect of any potentially dilutive common stock equivalents, giving retroactive effect to stock dividends declared during the period. Diluted earnings per share is determined in the same manner, except that the weighted-average number of shares of common stock outstanding is adjusted for the dilutive effect of outstanding common stock equivalents. Three Months Three Months March 31, March 31, Net income $ 1,122,118 $ 983,557 Weighted average shares outstanding 1,667,833 1,656,390 Earnings per share - basic and diluted $ 0.67 $ 0.59 |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. 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 $ 48,654 The Company has entered into agreements with 12 $ 1,418 1,307 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 $ 60,000 63,600 Retirement plan expenses are included in employee benefits on the consolidated statements of income. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“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, 2017, and for interim periods within those fiscal years. 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 adopted the provisions of ASU 2016-01, effective January 1, 2018, by recording a $ 10,416 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 from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. 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 expects that the impact that ASU 2016-02 will be to increase assets and liabilities equally by approximately $ 1,400,000 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 and has begun developing an implementation plan. In March 2017, the FASB issued ASU 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, and interim periods within those fiscal years, beginning after December 15, 2018 and is not expected to have a significant impact on our financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities [Table Text Block] | Investments in debt securities are summarized as follows: Amortized Unrealized Unrealized Fair March 31, 2018 cost gains losses value Available for sale State and municipal $ 1,509,612 $ 29,916 $ 9,230 $ 1,530,298 SBA pools 3,128,577 - 12,653 3,115,924 Mortgage-backed securities 22,413,388 - 849,434 21,563,954 $ 27,051,577 $ 29,916 $ 871,317 $ 26,210,176 Held to maturity State and municipal $ 18,209,647 $ 121,294 $ 234,163 $ 18,096,778 Amortized Unrealized Unrealized Fair December 31, 2017 cost gains losses value Available for sale State and municipal $ 1,510,848 $ 38,494 $ 10,135 $ 1,539,207 SBA pools 3,212,771 75 13,000 3,199,846 Mortgage-backed securities 23,735,332 8,787 553,662 23,190,457 $ 28,458,951 $ 47,356 $ 576,797 $ 27,929,510 Held to maturity State and municipal $ 18,204,182 $ 225,349 $ 121,904 $ 18,307,627 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Available for Sale Held to Maturity Amortized Fair Amortized Fair March 31, 2018 cost value cost value Within one year $ - $ - $ 369,563 $ 372,228 Over one to five years 262,393 253,162 1,084,151 1,098,865 Over five to ten years 870,839 892,438 1,791,706 1,811,736 Over ten years 376,380 384,698 14,964,227 14,813,949 1,509,612 1,530,298 18,209,647 18,096,778 Mortgage-backed securities and SBA pools, due in monthly installments 25,541,965 24,679,878 - - $ 27,051,577 $ 26,210,176 $ 18,209,647 $ 18,096,778 December 31, 2017 Within one year $ - $ - $ 165,677 $ 168,260 Over one to five years - - 780,336 794,512 Over five to ten years 1,133,940 1,150,564 1,792,019 1,831,833 Over ten years 376,908 388,643 15,466,150 15,513,022 1,510,848 1,539,207 18,204,182 18,307,627 Mortgage-backed securities and SBA pools, due in monthly installments 26,948,103 26,390,303 - - $ 28,458,951 $ 27,929,510 $ 18,204,182 $ 18,307,627 |
Schedule of Unrealized Loss on Investments [Table Text Block] | March 31, 2018 Less than 12 months 12 months or more Total Description of investments Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized State and municipal $ 5,029,674 $ 48,774 $ 2,879,196 $ 194,619 $ 7,908,870 $ 243,393 SBA pools 1,062,013 3,654 2,053,911 8,999 3,115,924 12,653 Mortgage-backed securities 2,781,172 76,040 18,782,782 773,394 21,563,954 849,434 Total $ 8,872,859 $ 128,468 $ 23,715,889 $ 977,012 $ 32,588,748 $ 1,105,480 December 31, 2017 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 $ 812,630 $ 1,519 $ 3,444,443 $ 130,520 $ 4,257,073 $ 132,039 SBA pools 551,780 1,903 2,109,832 11,097 2,661,612 13,000 Mortgage-backed securities 2,871,597 41,413 19,571,511 512,249 22,443,108 553,662 Total $ 4,236,007 $ 44,835 $ 25,125,786 $ 653,866 $ 29,361,793 $ 698,701 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Major categories of loans are as follows: March 31, December 31, 2018 2017 Real estate: Commercial $ 237,368,139 $ 234,026,574 Construction and land development 19,247,095 18,160,366 Residential 59,083,653 59,241,416 Commercial 23,996,157 23,613,543 Consumer 520,768 554,017 340,215,812 335,595,916 Less: Allowance for loan losses 2,501,955 2,458,911 Deferred origination fees net of costs 594,116 603,299 $ 337,119,741 $ 332,533,706 |
Schedule of Maturity and Rate Repricing Distribution of the Loan Portfolio [Table Text Block] | Non-accrual loans, segregated by class of loans, were as follows: March 31, December 31, 2018 2017 Commercial real estate $ 2,245,743 $ 2,245,743 |
Loans and Leases Receivable, Nonaccrual Loan and Lease Status [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, 2018 Real estate: Commercial $ 577,288 $ 1,571,050 $ 2,245,743 $ 4,394,081 $ 232,974,058 $ 237,368,139 $ - Construction and land development - - - - 19,247,095 19,247,095 - Residential 12,448 46,868 - 59,316 59,024,337 59,083,653 - Commercial - - - - 23,996,157 23,996,157 - Consumer - - - - 520,768 520,768 - Total $ 589,736 $ 1,617,918 $ 2,245,743 $ 4,453,397 $ 335,762,415 $ 340,215,812 $ - December 31, 2017 Real estate: Commercial $ - $ - $ 2,245,743 $ 2,245,743 $ 231,780,831 $ 234,026,574 $ - Construction and land development - - - - 18,160,366 18,160,366 - Residential - - 146,459 146,459 59,094,957 59,241,416 146,459 Commercial - - - - 23,613,543 23,613,543 - Consumer - - - - 554,017 554,017 - Total $ - $ - $ 2,392,202 $ 2,392,202 $ 333,203,714 $ 335,595,916 $ 146,459 |
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, 2018 Commercial real estate $ 4,671,741 $ 2,150,998 $ 2,245,743 $ 4,396,741 $ 28,577 $ 4,789,962 $ 26,999 December 31, 2017 Commercial real estate $ 5,458,182 $ 2,937,439 $ 2,245,743 $ 5,183,182 $ 127,213 $ 2,591,591 $ 268,652 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Loans by credit grade, segregated by loan type, are as follows: Above Pass Special March 31, 2018 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 5,889,617 $ 115,158,666 $ 88,862,495 $ 15,228,108 $ 7,550,301 $ 2,433,209 $ 2,245,743 $ 237,368,139 Construction and land development - 1,038,353 6,979,511 7,231,069 3,998,162 - - - 19,247,095 Residential 41,435 1,190,516 31,896,681 21,929,125 3,378,805 - 647,091 - 59,083,653 Commercial 1,565,870 120,006 12,840,759 9,320,008 149,514 - - - 23,996,157 Consumer - 93,506 329,882 64,046 - - 2,340 30,994 520,768 $ 1,607,305 $ 8,331,998 $ 167,205,499 $ 127,406,743 $ 22,754,589 $ 7,550,301 $ 3,082,640 $ 2,276,737 $ 340,215,812 Above Pass Special December 31, 2017 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 6,115,925 $ 127,639,361 $ 79,619,726 $ 9,041,882 $ 5,391,589 $ 3,972,348 $ 2,245,743 $ 234,026,574 Construction and land development - 173,633 9,288,372 4,978,964 3,719,397 - - - 18,160,366 Residential 53,948 1,260,128 35,254,016 18,659,174 3,363,570 - 650,580 - 59,241,416 Commercial 1,581,878 121,919 16,225,350 5,545,562 138,834 - - - 23,613,543 Consumer 5,210 96,484 351,093 70,171 - - 2,640 28,419 554,017 $ 1,641,036 $ 7,768,089 $ 188,758,192 $ 108,873,597 $ 16,263,683 $ 5,391,589 $ 4,625,568 $ 2,274,162 $ 335,595,916 |
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, 2018 and 2017, and the year ended December 31, 2017. 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, 2018 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,867,397 $ 62,323 $ - $ 2,000 $ 1,931,720 $ 28,577 $ 1,903,143 $ 4,396,741 $ 232,971,398 Construction and land development 223,274 16,225 (10,622) - 228,877 - 228,877 - 19,247,095 Residential 247,953 (722) - - 247,231 - 247,231 - 59,083,653 Commercial 87,353 (2,648) - 1,666 86,371 - 86,371 - 23,996,157 Consumer 7,027 729 - - 7,756 - 7,756 - 520,768 Unallocated 25,907 (25,907) - - - - - - - $ 2,458,911 $ 50,000 $ (10,622) $ 3,666 $ 2,501,955 $ 28,577 $ 2,473,378 $ 4,396,741 $ 335,819,071 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: December 31, 2017 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,717,749 $ 419,868 $ (275,000) $ 4,780 $ 1,867,397 $ 127,213 $ 1,740,184 $ 5,183,182 $ 228,843,392 Construction and land development 204,860 65,850 (47,436) - 223,274 - 223,274 - 18,160,366 Residential 247,437 368 - 148 247,953 - 247,953 - 59,241,416 Commercial 125,260 (41,240) - 3,333 87,353 - 87,353 - 23,613,543 Consumer 8,826 (1,799) - - 7,027 - 7,027 - 554,017 Unallocated 58,954 (33,047) - - 25,907 - 25,907 - - $ 2,363,086 $ 410,000 $ (322,436) $ 8,261 $ 2,458,911 $ 127,213 $ 2,331,698 $ 5,183,182 $ 330,412,734 |
Capital Standards (Tables)
Capital Standards (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Capital ratios of the Company are substantially the same as the Bank’s. Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized March 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 44,929 12.58 % $ 35,280 9.88 % $ 35,727 10.00 % Tier 1 capital (to risk-weighted assets) 42,427 11.88 % 28,135 7.88 % 28,581 8.00 % Common equity tier 1 (to risk-weighted assets) 42,427 11.88 % 22,776 6.38 % 23,222 6.50 % Tier 1 leverage (to average assets) 42,427 10.42 % 16,286 4.00 % 20,357 5.00 % Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 44,039 12.54 % $ 32,477 9.25 % $ 35,110 10.00 % Tier 1 capital (to risk-weighted assets) 41,580 11.84 % 25,455 7.25 % 28,088 8.00 % Common equity tier 1 (to risk-weighted assets) 41,580 11.84 % 20,188 5.75 % 22,822 6.50 % Tier 1 leverage (to average assets) 41,580 10.31 % 16,135 4.00 % 20,169 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017, 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, 2018 Recurring Available for sale securities State and municipal $ - $ 1,530,298 $ - $ 1,530,298 SBA pools - 3,115,924 - 3,115,924 Mortgage-backed securities - 21,563,954 - 21,563,954 $ - $ 26,210,176 $ - $ 26,210,176 Equity security at fair value Mutual fund $ 507,560 $ - $ - $ 507,560 Nonrecurring Other real estate owned $ - $ - $ 265,500 $ 265,500 Impaired loans - - 4,368,164 4,368,164 December 31, 2017 Recurring Available for sale securities State and municipal $ - $ 1,539,207 $ - $ 1,539,207 SBA pools - 3,199,846 - 3,199,846 Mortgage-backed securities - 23,190,457 - 23,190,457 $ - $ 27,929,510 $ - $ 27,929,510 Equity security at fair value Mutual fund $ 503,881 $ - $ - $ 503,881 Nonrecurring Other real estate owned $ - $ - $ 265,500 $ 265,500 Impaired loans - - 5,055,969 5,055,969 |
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, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 1 inputs Cash and cash equivalents $ 12,607,384 $ 12,607,384 $ 7,237,385 $ 7,237,385 Level 2 inputs Securities held to maturity 18,209,647 18,096,778 18,204,182 18,307,627 Mortgage loans held for sale 300,000 305,134 327,700 332,558 Federal Home Loan Bank stock 979,600 979,600 1,063,600 1,063,600 Level 3 inputs Loans, net 337,119,741 334,821,812 332,533,706 332,689,848 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 59,185,184 $ 59,185,184 $ 64,403,133 $ 64,403,133 Securities sold under repurchase agreements 19,604,308 19,604,308 21,768,507 21,768,507 Level 2 inputs Interest-bearing deposits 274,613,264 259,104,264 255,393,291 244,403,281 Federal Home Loan Bank advances 12,500,000 12,437,000 17,000,000 16,957,000 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted earnings per share for the three-month periods ended March 31, 2018 and 2017. There were no common stock equivalents outstanding at March 31, 2018 or 2017. Three Months Three Months March 31, March 31, Net income $ 1,122,118 $ 983,557 Weighted average shares outstanding 1,667,833 1,656,390 Earnings per share - basic and diluted $ 0.67 $ 0.59 |
Principles of consolidation (De
Principles of consolidation (Details Textual) | Mar. 31, 2018 |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Basis of Presentation (Details
Basis of Presentation (Details Textual) - USD ($) | Dec. 15, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Reclassification to Unappropriated Retained Earnings | $ 0 | ||
Accounting Standards Update 2016-01 [Member] | |||
Reclassification to Unappropriated Retained Earnings | $ 10,416 | ||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 1,400,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Available for sale, Amortized cost | $ 27,051,577 | $ 28,458,951 |
Available for sale, Unrealized gains | 29,916 | 47,356 |
Available for sale, Unrealized losses | 871,317 | 576,797 |
Available for sale, Fair value | 26,210,176 | 27,929,510 |
Held to maturity, Amortized cost | 18,209,647 | 18,204,182 |
Held to maturity, Fair value | 18,096,778 | 18,307,627 |
Mortgage-backed securities [Member] | ||
Available for sale, Amortized cost | 22,413,388 | 23,735,332 |
Available for sale, Unrealized gains | 0 | 8,787 |
Available for sale, Unrealized losses | 849,434 | 553,662 |
Available for sale, Fair value | 21,563,954 | 23,190,457 |
SBA pools [Member] | ||
Available for sale, Amortized cost | 3,128,577 | 3,212,771 |
Available for sale, Unrealized gains | 0 | 75 |
Available for sale, Unrealized losses | 12,653 | 13,000 |
Available for sale, Fair value | 3,115,924 | 3,199,846 |
State and municipal [Member] | ||
Available for sale, Amortized cost | 1,509,612 | 1,510,848 |
Available for sale, Unrealized gains | 29,916 | 38,494 |
Available for sale, Unrealized losses | 9,230 | 10,135 |
Available for sale, Fair value | 1,530,298 | 1,539,207 |
Held to maturity, Amortized cost | 18,209,647 | 18,204,182 |
Held to maturity, Unrealized gains | 121,294 | 225,349 |
Held to maturity, Unrealized losses | 234,163 | 121,904 |
Held to maturity, Fair value | $ 18,096,778 | $ 18,307,627 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Available for Sale, Within one year, Amortized cost | $ 0 | $ 0 |
Available for Sale, Over one to five years, Amortized cost | 262,393 | 0 |
Available for Sale, Over five to ten years, Amortized cost | 870,839 | 1,133,940 |
Available for Sale, Over ten years, Amortized cost | 376,380 | 376,908 |
Available for Sale, Single Maturity Date, Amortized Cost | 1,509,612 | 1,510,848 |
Available for Sale, Mortgage-backed securities and SBA pools, due in monthly installments, Amortised cost | 25,541,965 | 26,948,103 |
Available-for-sale Securities, Amortized Cost | 27,051,577 | 28,458,951 |
Available for Sale, Within one year, Fair value | 0 | 0 |
Available for Sale, Over one to five years, Fair value | 253,162 | 0 |
Available for Sale, Over five to ten years, Fair value | 892,438 | 1,150,564 |
Available for Sale, Over ten years, Fair value | 384,698 | 388,643 |
Available for Sale, Single Maturity Date, Fair value | 1,530,298 | 1,539,207 |
Available for Sale, Mortgage-backed securities, due in monthly installments, Fair value | 24,679,878 | 26,390,303 |
Available-for-sale Securities, Debt Securities, Fair value | 26,210,176 | 27,929,510 |
Held to Maturity, Within one year, Amortised cost | 369,563 | 165,677 |
Held to Maturity, Over one to five years, Amortised cost | 1,084,151 | 780,336 |
Held to Maturity, Over five to ten years, Amortised cost | 1,791,706 | 1,792,019 |
Held to Maturity, Over ten years, Amortised cost | 14,964,227 | 15,466,150 |
Held to Maturity, Single maturity date, Amortised cost | 18,209,647 | 18,204,182 |
Held to Maturity, Mortgage-backed securities, due in monthly installments, Amortised cost | 0 | 0 |
Held to Maturity Securities, Amortised cost | 18,209,647 | 18,204,182 |
Held to Maturity, Within one year, Fair value | 372,228 | 168,260 |
Held to Maturity, Over one to five years, Fair value | 1,098,865 | 794,512 |
Held to Maturity, Over five to ten years, Fair value | 1,811,736 | 1,831,833 |
Held to Maturity, Over ten years, Fair value | 14,813,949 | 15,513,022 |
Held to Maturity, Single maturity date, Fair value | 18,096,778 | 18,307,627 |
Held to Maturity, Mortgage-backed securities, due in monthly installments, Fair value | 0 | 0 |
Held-to-maturity Securities, Fair Value | $ 18,096,778 | $ 18,307,627 |
Investment Securities (Detail28
Investment Securities (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investment securities, Less than 12 months, Fair value | $ 8,872,859 | $ 4,236,007 |
Investment securities, Less than 12 months, Unrealized losses | 128,468 | 44,835 |
Investment securities, 12 months or more, Fair Value | 23,715,889 | 25,125,786 |
Investment securities, 12 months or more, Unrealized losses | 977,012 | 653,866 |
Investment securities, Total, Fair Value | 32,588,748 | 29,361,793 |
Investment securities, Total, Unrealized losses | 1,105,480 | 698,701 |
SBA pools [Member] | ||
Investment securities, Less than 12 months, Fair value | 1,062,013 | 551,780 |
Investment securities, Less than 12 months, Unrealized losses | 3,654 | 1,903 |
Investment securities, 12 months or more, Fair Value | 2,053,911 | 2,109,832 |
Investment securities, 12 months or more, Unrealized losses | 8,999 | 11,097 |
Investment securities, Total, Fair Value | 3,115,924 | 2,661,612 |
Investment securities, Total, Unrealized losses | 12,653 | 13,000 |
Mortgage-backed securities [Member] | ||
Investment securities, Less than 12 months, Fair value | 2,781,172 | 2,871,597 |
Investment securities, Less than 12 months, Unrealized losses | 76,040 | 41,413 |
Investment securities, 12 months or more, Fair Value | 18,782,782 | 19,571,511 |
Investment securities, 12 months or more, Unrealized losses | 773,394 | 512,249 |
Investment securities, Total, Fair Value | 21,563,954 | 22,443,108 |
Investment securities, Total, Unrealized losses | 849,434 | 553,662 |
State and municipal [Member] | ||
Investment securities, Less than 12 months, Fair value | 5,029,674 | 812,630 |
Investment securities, Less than 12 months, Unrealized losses | 48,774 | 1,519 |
Investment securities, 12 months or more, Fair Value | 2,879,196 | 3,444,443 |
Investment securities, 12 months or more, Unrealized losses | 194,619 | 130,520 |
Investment securities, Total, Fair Value | 7,908,870 | 4,257,073 |
Investment securities, Total, Unrealized losses | $ 243,393 | $ 132,039 |
Investment Securities (Detail29
Investment Securities (Details Textual) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Trading Securities Pledged as Collateral | $ 30,211,279 | $ 31,982,381 |
Loans (Details)
Loans (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable, Gross | $ 340,215,812 | $ 335,595,916 |
Less: Allowance for loan losses | 2,501,955 | 2,458,911 |
Deferred origination fees net of costs | 594,116 | 603,299 |
Loans and Leases Receivable, Net Amount | 337,119,741 | 332,533,706 |
Commercial [Member] | ||
Loans and Leases Receivable, Gross | 23,996,157 | 23,613,543 |
Consumer [Member] | ||
Loans and Leases Receivable, Gross | 520,768 | 554,017 |
Real estate [Member] | Commercial Real estate [Member] | ||
Loans and Leases Receivable, Gross | 237,368,139 | 234,026,574 |
Real estate [Member] | Construction and land development [Member] | ||
Loans and Leases Receivable, Gross | 19,247,095 | 18,160,366 |
Real estate [Member] | Residential [Member] | ||
Loans and Leases Receivable, Gross | $ 59,083,653 | $ 59,241,416 |
Loans (Details 1)
Loans (Details 1) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Commercial real estate [Member] | ||
Non-accrual loans, segregated by class of loans | $ 2,245,743 | $ 2,245,743 |
Loans (Details 2)
Loans (Details 2) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 4,453,397 | $ 2,392,202 |
Financing Receivable, Recorded Investment, Current | 335,762,415 | 333,203,714 |
Loans and Leases Receivable, Total Loans | 340,215,812 | 335,595,916 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 146,459 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4,394,081 | 2,245,743 |
Financing Receivable, Recorded Investment, Current | 232,974,058 | 231,780,831 |
Loans and Leases Receivable, Total Loans | 237,368,139 | 234,026,574 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 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 | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 19,247,095 | 18,160,366 |
Loans and Leases Receivable, Total Loans | 19,247,095 | 18,160,366 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 59,316 | 146,459 |
Financing Receivable, Recorded Investment, Current | 59,024,337 | 59,094,957 |
Loans and Leases Receivable, Total Loans | 59,083,653 | 59,241,416 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 146,459 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 23,996,157 | 23,613,543 |
Loans and Leases Receivable, Total Loans | 23,996,157 | 23,613,543 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, Current | 520,768 | 554,017 |
Loans and Leases Receivable, Total Loans | 520,768 | 554,017 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 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 | 589,736 | 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 | 577,288 | 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 |
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 | 12,448 | 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 | 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 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,617,918 | 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 | 1,571,050 | 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 | 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 | 46,868 | 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 |
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 |
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 | 2,245,743 | 2,392,202 |
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 | 2,245,743 | 2,245,743 |
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 | 0 | 0 |
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 | 146,459 |
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 |
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 |
Loans (Details 3)
Loans (Details 3) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 4,671,741 | $ 5,458,182 |
Recorded Investment With No Allowance | 2,150,998 | 2,937,439 |
Recorded Investment With Allowance | 2,245,743 | 2,245,743 |
Total Recorded Investment | 4,396,741 | 5,183,182 |
Related Allowance | 28,577 | 127,213 |
Average Recorded Investment | 4,789,962 | 2,591,591 |
Interest Recognized | $ 26,999 | $ 268,652 |
Loans (Details 4)
Loans (Details 4) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 340,215,812 | $ 335,595,916 |
Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,607,305 | 1,641,036 |
Above average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 8,331,998 | 7,768,089 |
Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 167,205,499 | 188,758,192 |
Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 127,406,743 | 108,873,597 |
Pass watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 22,754,589 | 16,263,683 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 7,550,301 | 5,391,589 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,082,640 | 4,625,568 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,276,737 | 2,274,162 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 23,996,157 | 23,613,543 |
Commercial Portfolio Segment [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,565,870 | 1,581,878 |
Commercial Portfolio Segment [Member] | Above average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 120,006 | 121,919 |
Commercial Portfolio Segment [Member] | Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 12,840,759 | 16,225,350 |
Commercial Portfolio Segment [Member] | Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 9,320,008 | 5,545,562 |
Commercial Portfolio Segment [Member] | Pass watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 149,514 | 138,834 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 520,768 | 554,017 |
Consumer Portfolio Segment [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 5,210 |
Consumer Portfolio Segment [Member] | Above average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 93,506 | 96,484 |
Consumer Portfolio Segment [Member] | Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 329,882 | 351,093 |
Consumer Portfolio Segment [Member] | Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 64,046 | 70,171 |
Consumer Portfolio Segment [Member] | Pass watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,340 | 2,640 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 30,994 | 28,419 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 237,368,139 | 234,026,574 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 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 | 5,889,617 | 6,115,925 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 115,158,666 | 127,639,361 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 88,862,495 | 79,619,726 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Pass watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 15,228,108 | 9,041,882 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 7,550,301 | 5,391,589 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,433,209 | 3,972,348 |
Real estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 2,245,743 | 2,245,743 |
Real estate [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 19,247,095 | 18,160,366 |
Real estate [Member] | Construction and Land Development [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate [Member] | Construction and Land Development [Member] | Above average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,038,353 | 173,633 |
Real estate [Member] | Construction and Land Development [Member] | Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 6,979,511 | 9,288,372 |
Real estate [Member] | Construction and Land Development [Member] | Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 7,231,069 | 4,978,964 |
Real estate [Member] | Construction and Land Development [Member] | Pass watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,998,162 | 3,719,397 |
Real estate [Member] | Construction and Land Development [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate [Member] | Construction and Land Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate [Member] | Construction and Land Development [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 59,083,653 | 59,241,416 |
Real estate [Member] | Residential Portfolio Segment [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 41,435 | 53,948 |
Real estate [Member] | Residential Portfolio Segment [Member] | Above average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 1,190,516 | 1,260,128 |
Real estate [Member] | Residential Portfolio Segment [Member] | Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 31,896,681 | 35,254,016 |
Real estate [Member] | Residential Portfolio Segment [Member] | Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 21,929,125 | 18,659,174 |
Real estate [Member] | Residential Portfolio Segment [Member] | Pass watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 3,378,805 | 3,363,570 |
Real estate [Member] | Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Real estate [Member] | Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | 647,091 | 650,580 |
Real estate [Member] | Residential Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
Loans (Details 5)
Loans (Details 5) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Beginning balance | $ 2,458,911 | $ 2,363,086 | $ 2,363,086 |
Provision for loan losses | 50,000 | 50,000 | 410,000 |
Charge offs | (10,622) | 0 | (322,436) |
Recoveries | 3,666 | 1,038 | 8,261 |
Ending balance | 2,501,955 | 2,414,124 | 2,458,911 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 28,577 | 86,859 | 127,213 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 2,473,378 | 2,327,265 | 2,331,698 |
Outstanding loan balances evaluated for impairment: Individually | 4,396,741 | 3,786,726 | 5,183,182 |
Outstanding loan balances evaluated for impairment: Collectively | 335,819,071 | 311,417,829 | 330,412,734 |
Residential Portfolio Segment [Member] | |||
Beginning balance | 247,953 | 247,437 | 247,437 |
Provision for loan losses | (722) | 28,185 | 368 |
Charge offs | 0 | 0 | 0 |
Recoveries | 0 | 148 | 148 |
Ending balance | 247,231 | 275,770 | 247,953 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 247,231 | 275,770 | 247,953 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 0 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | 59,083,653 | 56,343,709 | 59,241,416 |
Consumer Portfolio Segment [Member] | |||
Beginning balance | 7,027 | 8,826 | 8,826 |
Provision for loan losses | 729 | (817) | (1,799) |
Charge offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 7,756 | 8,009 | 7,027 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 7,756 | 8,009 | 7,027 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 0 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | 520,768 | 687,569 | 554,017 |
Commercial Real Estate Loan [Member] | |||
Beginning balance | 1,867,397 | 1,717,749 | 1,717,749 |
Provision for loan losses | 62,323 | (193) | 419,868 |
Charge offs | 0 | 0 | (275,000) |
Recoveries | 2,000 | 890 | 4,780 |
Ending balance | 1,931,720 | 1,718,446 | 1,867,397 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 28,577 | 0 | 127,213 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 1,903,143 | 1,718,446 | 1,740,184 |
Outstanding loan balances evaluated for impairment: Individually | 4,396,741 | 3,060,269 | 5,183,182 |
Outstanding loan balances evaluated for impairment: Collectively | 232,971,398 | 220,230,142 | 228,843,392 |
Construction Loans Development [Member] | |||
Beginning balance | 223,274 | 204,860 | 204,860 |
Provision for loan losses | 16,225 | 90,411 | 65,850 |
Charge offs | (10,622) | 0 | (47,436) |
Recoveries | 0 | 0 | 0 |
Ending balance | 228,877 | 295,271 | 223,274 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 86,859 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 228,877 | 208,412 | 223,274 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 571,161 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | 19,247,095 | 13,417,632 | 18,160,366 |
Financial Receivable ,Commercial Loan [Member] | |||
Beginning balance | 87,353 | 125,260 | 125,260 |
Provision for loan losses | (2,648) | (31,963) | (41,240) |
Charge offs | 0 | 0 | 0 |
Recoveries | 1,666 | 0 | 3,333 |
Ending balance | 86,371 | 93,297 | 87,353 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 86,371 | 93,297 | 87,353 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 155,296 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | 23,996,157 | 20,738,777 | 23,613,543 |
Financial Receivable ,Unallocated [Member] | |||
Beginning balance | 25,907 | 58,954 | 58,954 |
Provision for loan losses | (25,907) | (35,623) | (33,047) |
Charge offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 0 | 23,331 | 25,907 |
Allowance for loan losses ending balance evaluated for impairment: Individually | 0 | 0 | 0 |
Allowance for loan losses ending balance evaluated for impairment: Collectively | 0 | 23,331 | 25,907 |
Outstanding loan balances evaluated for impairment: Individually | 0 | 0 | 0 |
Outstanding loan balances evaluated for impairment: Collectively | $ 0 | $ 0 | $ 0 |
Loans (Details Textual)
Loans (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for Loan, Lease, and Other Losses | $ 50,000 | $ 50,000 | $ 410,000 |
Financing Receivable, Allowance for Credit Losses, Write-downs | 10,622 | $ 0 | 322,436 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,150,998 | 2,937,439 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,245,743 | 2,245,743 | |
Two Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans Reclassified As Trouble Debt Restructuring | 774,274 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,245,743 | 2,245,743 | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,150,998 | 2,937,439 | |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,245,743 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 34,179 | 82,070 | |
Provision for Loan, Lease, and Other Losses | 28,577 | 127,213 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | $ 275,000 | $ 275,000 |
Capital Standards (Details)
Capital Standards (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Total capital (to risk-weighted assets), Actual Amount | $ 44,929 | $ 44,039 |
Total capital (to risk-weighted assets), Actual Ratio | 12.58% | 12.54% |
Total capital (to risk-weighted assets), Minimum Capital Adequacy Amount | $ 35,280 | $ 32,477 |
Total capital (to risk-weighted assets), Minimum Capital Adequacy Ratio | 9.88% | 9.25% |
Total capital (to risk-weighted assets),To Be Well Capitalized Amount | $ 35,727 | $ 35,110 |
Total capital (to risk-weighted assets),To Be Well Capitalized Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), Actual Amount | $ 42,427 | $ 41,580 |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 11.88% | 11.84% |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy Amount | $ 28,135 | $ 25,455 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Adequacy Ratio | 7.88% | 7.25% |
Tier 1 capital (to risk-weighted assets),To Be Well Capitalized Amount | $ 28,581 | $ 28,088 |
Tier 1 capital (to risk-weighted assets),To Be Well Capitalized Ratio | 8.00% | 8.00% |
Common equity tier 1 (to risk-weighted assets), Actual Amount | $ 42,427 | $ 41,580 |
Common equity tier 1 (to risk-weighted assets), Actual Ratio | 11.88% | 11.84% |
Common equity tier 1 (to risk-weighted assets), Minimum Capital Adequacy Amount | $ 22,776 | $ 20,188 |
Common equity tier 1 (to risk-weighted assets), Minimum Capital Adequacy Ratio | 6.38% | 5.75% |
Common equity tier 1 (to risk-weighted assets), To Be Well Capitalized Amount | $ 23,222 | $ 22,822 |
Common equity tier 1 (to risk-weighted assets), To Be Well Capitalized Ratio | 6.50% | 6.50% |
Tier 1 leverage (to average assets), Actual Amount | $ 42,427 | $ 41,580 |
Tier 1 leverage (to average assets), Actual Ratio | 10.42% | 10.31% |
Tier 1 leverage (to average assets), Minimum Capital Adequacy Amount | $ 16,286 | $ 16,135 |
Tier 1 leverage (to average assets), Minimum Capital Adequacy Ratio | 4.00% | 4.00% |
Tier 1 leverage (to average assets),To Be Well Capitalized Amount | $ 20,357 | $ 20,169 |
Tier 1 leverage (to average assets),To Be Well Capitalized Ratio | 5.00% | 5.00% |
Capital Standards (Details Text
Capital Standards (Details Textual) | 3 Months Ended |
Mar. 31, 2018 | |
Description of Regulatory Requirements, Capital Adequacy Purposes | The implementation of the capital conservation buffer began on January 1, 2016, at the 0.625% level and will 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). |
Fair Value (Details)
Fair Value (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | $ 26,210,176 | $ 27,929,510 |
Other real estate owned [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Nonrecurring | 265,500 | 265,500 |
Impaired Loans [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,368,164 | 5,055,969 |
Mutual Fund [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 507,560 | 503,881 |
SBA pools [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 3,115,924 | 3,199,846 |
US Treasury and Government [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 1,530,298 | 1,539,207 |
Collateralized Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 21,563,954 | 23,190,457 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 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 | 507,560 | 503,881 |
Fair Value, Inputs, Level 1 [Member] | SBA pools [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 26,210,176 | 27,929,510 |
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 |
Fair Value, Inputs, Level 2 [Member] | SBA pools [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 3,115,924 | 3,199,846 |
Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 1,530,298 | 1,539,207 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 21,563,954 | 23,190,457 |
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Other real estate owned [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Nonrecurring | 265,500 | 265,500 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,368,164 | 5,055,969 |
Fair Value, Inputs, Level 3 [Member] | Mutual Fund [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | SBA pools [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Treasury and Government [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Assets, Fair Value Disclosure, Recurring | $ 0 | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||||
Cash and cash equivalents, Carrying Value | $ 12,607,384 | $ 7,237,385 | $ 18,693,431 | $ 13,312,915 |
Securities held to maturity, Carrying Value | 18,209,647 | 18,204,182 | ||
Federal Home Loan Bank stock, Carrying Value | 979,600 | 1,063,600 | ||
Loans, net, Carrying Value | 337,119,741 | 332,533,706 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Carrying Value | 59,185,184 | 64,403,133 | ||
Securities sold under repurchase agreements, Carrying Value | 19,604,308 | 21,768,507 | ||
Interest-bearing deposits, Carrying Value | 274,613,264 | 255,393,291 | ||
Federal Home Loan Bank advances, Carrying Value | 12,500,000 | 17,000,000 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents, Carrying Value | 12,607,384 | 7,237,385 | ||
Cash and cash equivalents, Estimated Fair Value | 12,607,384 | 7,237,385 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Carrying Value | 59,185,184 | 64,403,133 | ||
Securities sold under repurchase agreements, Carrying Value | 19,604,308 | 21,768,507 | ||
Noninterest-bearing deposits, Estimated Fair Value | 59,185,184 | 64,403,133 | ||
Securities sold under repurchase agreements, Estimated Fair Value | 19,604,308 | 21,768,507 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets | ||||
Securities held to maturity, Carrying Value | 18,209,647 | 18,204,182 | ||
Mortgage loans held for sale, Carrying Value | 300,000 | 327,700 | ||
Federal Home Loan Bank stock, Carrying Value | 979,600 | 1,063,600 | ||
Securities held to maturity, Estimated Fair Value | 18,096,778 | 18,307,627 | ||
Mortgage loans held for sale, Estimated Fair Value | 305,134 | 332,558 | ||
Federal Home Loan Bank stock, Estimated Fair Value | 979,600 | 1,063,600 | ||
Financial liabilities | ||||
Interest-bearing deposits, Carrying Value | 274,613,264 | 255,393,291 | ||
Federal Home Loan Bank advances, Carrying Value | 12,500,000 | 17,000,000 | ||
Interest-bearing deposits, Estimated Fair Value | 259,104,264 | 244,403,281 | ||
Federal Home Loan Bank advances, Estimated Fair Value | 12,437,000 | 16,957,000 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets | ||||
Loans, net, Carrying Value | 337,119,741 | 332,533,706 | ||
Loans, net, Estimated Fair Value | $ 334,821,812 | $ 332,689,848 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 1,122,118 | $ 983,557 |
Weighted average shares outstanding | 1,667,833 | 1,656,390 |
Earnings per share - basic and diluted | $ 0.67 | $ 0.59 |
Retirement Plans (Details Textu
Retirement Plans (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 48,654 | $ 43,460 |
Defined Benefit Plan, Net Periodic Benefit Cost | 1,418 | 1,307 |
Supplemental Executive Retirement Plans [Member] | ||
Defined Benefit Plan, Interest Cost | $ 60,000 | $ 63,600 |