Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 23, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | SOUTHWEST GEORGIA FINANCIAL CORP | ||
Entity Central Index Key | 315,849 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 26,438,360 | ||
Entity Common Stock, Shares Outstanding | 2,547,837 | ||
Trading Symbol | SGB | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 6,156,818 | $ 6,782,566 |
Interest-bearing deposits in other banks | 24,923,455 | 5,776,131 |
Cash and cash equivalents | 31,080,273 | 12,558,697 |
Certificates of deposit in other banks | 245,000 | 1,470,000 |
Investment securities available for sale, at fair value | 51,476,411 | 53,837,956 |
Investment securities to be held to maturity (fair value approximates $62,198,699 and $62,841,404) | 60,888,804 | 61,587,819 |
Federal Home Loan Bank stock, at cost | 1,869,200 | 1,560,000 |
Loans, net of allowance for loan losses of $3,032,242 and $3,114,151 | 247,754,093 | 221,285,666 |
Premises and equipment, net | 11,157,444 | 11,756,267 |
Foreclosed assets, net | 81,750 | 273,653 |
Intangible assets | 50,781 | 66,406 |
Bank owned life insurance | 5,231,393 | 5,104,173 |
Other assets | 5,020,321 | 4,779,573 |
Total assets | 414,855,470 | 374,280,210 |
Deposits: | ||
NOW accounts | 25,382,480 | 22,889,731 |
Money market | 108,226,017 | 99,918,017 |
Savings | 27,720,845 | 28,156,220 |
Certificates of deposit $100,000 and over | 25,189,020 | 31,366,996 |
Other time accounts | 50,728,148 | 46,299,767 |
Total interest-bearing deposits | 237,246,510 | 228,630,731 |
Noninterest-bearing deposits | 101,769,333 | 81,342,861 |
Total deposits | 339,015,843 | 309,973,592 |
Short-term borrowed funds | 7,590,476 | 5,133,333 |
Long-term debt | 28,476,190 | 22,066,667 |
Other liabilities | 3,675,271 | 2,771,236 |
Total liabilities | 378,757,780 | 339,944,828 |
Stockholders’ equity: | ||
Common stock – $1 par value, 5,000,000 shares authorized, 4,293,835 shares for 2015 and 2014 issued | 4,293,835 | 4,293,835 |
Additional paid-in capital | 31,701,533 | 31,701,533 |
Retained earnings | 27,369,480 | 25,014,980 |
Accumulated other comprehensive loss | (1,153,363) | (561,171) |
Treasury stock, at cost 1,745,998 shares for 2015 and 2014 | (26,113,795) | (26,113,795) |
Total stockholders’ equity | 36,097,690 | 34,335,382 |
Total liabilities and stockholders’ equity | $ 414,855,470 | $ 374,280,210 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 62,198,699 | $ 62,841,404 |
Allowance for loan losses | 3,032,242 | 3,114,151 |
Certificates of deposit | $ 100,000 | $ 100,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 4,293,835 | 4,293,835 |
Treasury stock, at cost | $ 1,745,998 | $ 1,745,998 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Interest and fees on loans | $ 12,695,520 | $ 12,135,221 | $ 12,219,130 |
Interest on debt securities: Taxable | 1,345,549 | 1,366,591 | 998,238 |
Interest on debt securities: Tax-exempt | 1,240,706 | 1,055,727 | 1,110,237 |
Dividends | 72,619 | 69,343 | 38,645 |
Interest on deposits in other banks | 62,138 | 51,995 | 65,910 |
Interest on certificates of deposit in other banks | 11,795 | 33,327 | 42,703 |
Total interest income | 15,428,327 | 14,712,204 | 14,474,863 |
Interest expense: | |||
Deposits | 795,850 | 749,854 | 882,085 |
Federal funds purchased | 426 | 258 | 15 |
Other short-term borrowings | 67,274 | 169,661 | 295,034 |
Long-term debt | 453,258 | 435,686 | 485,823 |
Total interest expense | 1,316,808 | 1,355,459 | 1,662,957 |
Net interest income | 14,111,519 | 13,356,745 | 12,811,906 |
Provision for loan losses | 141,300 | 330,000 | 420,000 |
Net interest income after provision for loan losses | 13,970,219 | 13,026,745 | 12,391,906 |
Noninterest income: | |||
Service charges on deposit accounts | 1,121,240 | 1,274,726 | 1,278,221 |
Income from trust services | 245,279 | 241,131 | 227,622 |
Income from brokerage services | 420,695 | 375,699 | 338,323 |
Income from insurance services | 1,372,872 | 1,324,183 | 1,328,532 |
Income from mortgage banking services | 317,970 | 645,241 | 939,874 |
Net gain (loss) on sale or disposition of assets | 22,382 | 88,631 | (68,088) |
Net gain on sale of securities | 3,587 | 293,508 | 311,800 |
Other income | 756,152 | 743,319 | 734,887 |
Total noninterest income | 4,260,177 | 4,986,438 | 5,091,171 |
Noninterest expense: | |||
Salaries and employee benefits | 7,914,155 | 8,359,019 | 8,455,375 |
Occupancy expense | 1,120,940 | 1,060,822 | 1,025,293 |
Equipment expense | 923,267 | 896,416 | 902,312 |
Data processing expense | 1,224,177 | 1,129,617 | 1,096,790 |
Amortization of intangible assets | 15,625 | 44,931 | 215,700 |
Other operating expenses | 2,831,433 | 2,878,991 | 2,650,599 |
Total noninterest expenses | 14,029,597 | 14,369,796 | 14,346,069 |
Income before income taxes | 4,200,799 | 3,643,387 | 3,137,008 |
Provision for income taxes | 827,164 | 739,557 | 364,664 |
Net income | $ 3,373,635 | $ 2,903,830 | $ 2,772,344 |
Basic earnings per share: | |||
Net income | $ 1.32 | $ 1.14 | $ 1.09 |
Weighted average shares outstanding | 2,547,837 | 2,547,837 | 2,547,837 |
Diluted earnings per share: | |||
Net income | $ 1.32 | $ 1.14 | $ 1.09 |
Weighted average shares outstanding | 2,547,837 | 2,547,837 | 2,547,837 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,373,635 | $ 2,903,830 | $ 2,772,344 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on securities available for sale | 138,361 | 1,490,640 | (967,218) |
Reclassification adjustment for gains realized in income | (3,587) | (293,508) | (311,800) |
Unrealized gain (loss) on pension plan benefits | (1,032,035) | 55,700 | 191,451 |
Federal income tax expense (benefit) | (305,069) | 425,963 | (369,773) |
Other comprehensive income (loss), net of tax | (592,192) | 826,869 | (717,794) |
Total comprehensive income | $ 2,781,443 | $ 3,730,699 | $ 2,054,550 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2012 | $ 4,293,835 | $ 31,701,533 | $ 20,663,681 | $ (670,246) | $ (26,113,795) | $ 29,875,008 |
Net Income | $ 2,772,344 | 2,772,344 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | $ (844,152) | (844,152) | ||||
Changes in net gain on pension plan benefits | $ 126,358 | 126,358 | ||||
Cash dividend declared per share | $ (509,567) | (509,567) | ||||
Balance at Dec. 31, 2013 | $ 4,293,835 | $ 31,701,533 | 22,926,458 | $ (1,388,040) | $ (26,113,795) | 31,419,991 |
Net Income | $ 2,903,830 | 2,903,830 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | $ 790,107 | 790,107 | ||||
Changes in net gain on pension plan benefits | $ 36,762 | 36,762 | ||||
Cash dividend declared per share | $ (815,308) | (815,308) | ||||
Balance at Dec. 31, 2014 | $ 4,293,835 | $ 31,701,533 | 25,014,980 | $ (561,171) | $ (26,113,795) | 34,335,382 |
Net Income | $ 3,373,635 | 3,373,635 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | $ 88,951 | 88,951 | ||||
Changes in net gain on pension plan benefits | $ (681,143) | (681,143) | ||||
Cash dividend declared per share | $ (1,019,135) | (1,019,135) | ||||
Balance at Dec. 31, 2015 | $ 4,293,835 | $ 31,701,533 | $ 27,369,480 | $ (1,153,363) | $ (26,113,795) | $ 36,097,690 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share | $ 0.40 | $ 0.32 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 3,373,635 | $ 2,903,830 | $ 2,772,344 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 141,300 | 330,000 | 420,000 |
Depreciation | 961,964 | 890,812 | 897,849 |
Net amortization of investment securities | 307,861 | 324,209 | 361,086 |
Income on cash surrender value of bank owned life insurance | (147,601) | (123,784) | (175,835) |
Amortization of intangibles | 15,625 | 44,931 | 215,700 |
Loss (gain) on sale/writedown of foreclosed assets | (13,077) | (84,898) | 142,757 |
Net gain on sale of securities | (3,587) | (293,508) | (311,800) |
Net gain on disposal of other assets | (9,305) | (3,733) | (28,670) |
Change in: | |||
Other assets | 52,322 | 640,249 | 219,807 |
Other liabilities | (208,670) | (213,747) | (526,058) |
Net cash provided by operating activities | 4,470,467 | 4,414,361 | 3,987,180 |
Cash flows from investing activities: | |||
Proceeds from calls, paydowns and maturities of securities HTM | 5,115,703 | 3,983,421 | 9,255,718 |
Proceeds from calls, paydowns and maturities of securities AFS | 4,143,139 | 2,460,175 | 4,093,589 |
Proceeds from Federal Home Loan Bank Stock repurchase | 141,600 | 1,115,000 | 491,500 |
Proceeds from sale of securities available for sale | 4,044,500 | 2,208,318 | 442,600 |
Proceeds from sale of securities held to maturity | 516,746 | 0 | 0 |
Proceeds from maturity of certificates of deposit in other banks | 1,225,000 | 1,960,000 | 735,000 |
Purchase of securities held to maturity | (5,207,650) | (6,239,587) | (9,341,009) |
Purchase of securities available for sale | (5,709,379) | (20,586,864) | (20,328,480) |
Purchase of Federal Home Loan Bank Stock | (450,800) | (954,000) | (765,000) |
Purchase of certificates of deposit in other banks | 0 | 0 | (245,000) |
Net change in loans | (26,517,707) | (6,362,332) | (14,944,752) |
Purchase bank owned life insurance | 0 | 0 | (116,000) |
Proceeds from bank owned life insurance | 30,011 | 0 | 68,505 |
Purchase of premises and equipment | (370,837) | (2,311,767) | (1,105,919) |
Proceeds from sales of other assets | 201,000 | 578,067 | 1,398,264 |
Net cash used by investing activities | (22,838,674) | (24,149,569) | (30,360,984) |
Cash flows from financing activities: | |||
Net change in deposits | 29,042,251 | (460,947) | 18,672,479 |
Payment of short-term portion of long-term debt | (5,133,333) | (11,800,000) | (2,000,000) |
Proceeds from issuance of short-term debt | 2,457,143 | 0 | 0 |
Proceeds from issuance of long-term debt | 11,542,857 | 10,000,000 | 9,000,000 |
Cash dividends paid | (1,019,135) | (815,308) | (509,567) |
Net cash provided (used) by financing activities | 36,889,783 | (3,076,255) | 25,162,912 |
Increase (decrease) in cash and cash equivalents | 18,521,576 | (22,811,463) | (1,210,892) |
Cash and cash equivalents - beginning of period | 12,558,697 | 35,370,160 | 36,581,052 |
Cash and cash equivalents - end of period | 31,080,273 | 12,558,697 | 35,370,160 |
Income taxes | 725,000 | 255,000 | 510,000 |
Interest paid | 1,314,156 | 1,414,059 | 1,696,525 |
NONCASH ITEMS: | |||
Increase in foreclosed properties and decrease in loans | 241,980 | 357,013 | 206,518 |
Unrealized gain (loss) on securities AFS | 134,774 | 1,197,132 | (1,279,018) |
Unrealized gain (loss) on pension plan benefits | (1,032,035) | 55,700 | 191,451 |
Net reclass between short and long-term debt | 5,133,333 | 5,133,333 | 11,800,000 |
Adjustment to director’s deferred compensation liability | 0 | 0 | (33,000) |
Sale of foreclosed properties through loans | $ (334,000) | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Southwest Georgia Financial Corporation (the Corporation) and its direct and indirect subsidiaries conform to U.S. generally accepted accounting principles (GAAP) and to general practices within the banking industry. The following is a description of the more significant of those policies. Principles of Consolidation The consolidated financial statements include the accounts of Southwest Georgia Financial Corporation and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Nature of Operations The Corporation offers comprehensive financial services to consumer, business, and governmental customers through its banking offices in southwest Georgia. Its primary deposit products are money market, NOW, savings and certificates of deposit, and its primary lending products are consumer and commercial mortgage loans. The Corporation provides, in addition to conventional banking services, investment planning and management, trust management, mortgage banking, and commercial and individual insurance products. Insurance products and advice are provided by the Southwest Georgia Banks Southwest Georgia Insurance Services Division. The Corporations primary business is providing banking services through the Southwest Georgia Bank (the Bank) to individuals and businesses principally in the counties of Colquitt, Baker, Worth, Lowndes and the surrounding counties of southwest Georgia. We have two full-service banking centers and a mortgage origination office in Valdosta, Georgia. A new commercial banking center in Valdosta, Georgia was completed and opened in August of 2014. We have expanded our geographical footprint in to neighboring Tift County, Georgia, with a loan production office that opened for business in January 2016. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains independent appraisals for significant properties. A substantial portion of the Corporations loans are secured by real estate located primarily in Georgia. Accordingly, the ultimate collection of these loans is susceptible to changes in the real estate market conditions of this market area. Cash and Cash Equivalents and Statement of Cash Flows For purposes of reporting cash flows, the Corporation considers cash and cash equivalents to include all cash on hand, deposit amounts due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation maintains its cash balances in several financial institutions. Accounts at the financial institutions are secured by the Federal Deposit Insurance Corporation (the FDIC) up to $250,000. There were uninsured deposits of $5,619,847 at December 31, 2015. Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as available for sale and recorded at fair value with unrealized gains and losses reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation has been calculated primarily using the straight-line method for buildings and building improvements over the assets estimated useful lives. Equipment and furniture are depreciated using the modified accelerated recovery system method over the assets estimated useful lives for financial reporting and income tax purposes for assets purchased on or before December 31, 2003. For assets acquired after 2003, the Corporation used the straight-line method of depreciation. The following estimated useful lives are used for financial statement purposes: Land improvements 5 31 years Building and improvements 10 40 years Machinery and equipment 5 10 years Computer equipment 3 5 years Office furniture and fixtures 5 10 years All of the Corporations leases are operating leases and are not capitalized as assets for financial reporting purposes. Maintenance and repairs are charged to expense and betterments are capitalized. Long-lived assets are evaluated regularly for other-than-temporary impairment. If circumstances suggest that their value may be impaired and the write-down would be material, an assessment of recoverability is performed prior to any write-down of the asset. Impairment on intangibles is evaluated at each balance sheet date or whenever events or changes in circumstances indicate that the carrying amount should be assessed. Impairment, if any, is recognized through a valuation allowance with a corresponding charge recorded in the income statement. Loans and Allowances for Loan Losses Loans are stated at principal amounts outstanding less unearned income and the allowance for loan losses. Interest income is credited to income based on the principal amount outstanding at the respective rate of interest except for interest on certain installment loans made on a discount basis which is recognized in a manner that results in a level-yield on the principal outstanding. Accrual of interest income is discontinued on loans when, in the opinion of management, collection of such interest income becomes doubtful. Accrual of interest on such loans is resumed when, in managements judgment, the collection of interest and principal becomes probable. Fees on loans and costs incurred in origination of most loans are recognized at the time the loan is placed on the books. Because loan fees are not significant, the results on operations are not materially different from the results which would be obtained by accounting for loan fees and costs as amortized over the term of the loan as an adjustment of the yield. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowers prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loans obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collection of the principal is unlikely. The allowance is an amount which management believes will be adequate to absorb estimated losses on existing loans that may become uncollectible based on evaluation of the collectability of loans and prior loss experience. This evaluation takes into consideration such factors as changes in the nature and volume of the loan portfolios, current economic conditions that may affect the borrowers ability to pay, overall portfolio quality, and review of specific problem loans. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based upon changes in economic conditions. Also, various regulatory agencies, as an integral part of their examination process, periodically review the Corporations allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments of information available to them at the time of their examination. Foreclosed Assets In accordance with policy guidelines and regulations, properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. A valuation allowance is established to record market value changes in foreclosed assets. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. There was no allowance for foreclosed asset losses at December 31, 2015. Intangible Assets Intangible assets are amortized over a determined useful life using the straight-line basis. These assets are evaluated annually as to the recoverability of the carrying value. The remaining intangibles have a remaining life of less than four years. Credit Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Retirement Plans The Corporation and its direct and indirect subsidiaries have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts not exceeding the regulatory requirements. Bank Owned Life Insurance The Corporations subsidiary bank has bank owned life insurance policies on a group of employees. Banking laws and regulations allow the Bank to purchase life insurance policies on certain employees in order to help offset the Banks overall employee compensation costs. The beneficial aspects of these life insurance policies are tax-free earnings and a tax free death benefit, which are realized by the Bank as the owner of the policies. The cash surrender value of these policies is included as an asset on the balance sheet, and any increases in cash surrender value are recorded as noninterest income on the statement of income. At December 31, 2015 and 2014, the policies had a value of $5,231,393 and $5,104,173, respectively, and were 14.5% and 14.9%, respectively, of stockholders equity. These values are within regulatory guidelines. Income Taxes The Corporation and its direct and indirect subsidiaries file a consolidated income tax return. Each subsidiary computes its income tax expense as if it filed an individual return except that it does not receive any portion of the surtax allocation. Any benefits or disadvantages of the consolidation are absorbed by the parent company. Each subsidiary pays its allocation of federal income taxes to the parent company or receives payment from the parent company to the extent that tax benefits are realized. The Corporation reports income under the Financial Accounting Standards Board The Corporation will recognize a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with an examination being presumed to occur. The amount recognized is the largest amount of a tax benefit that is greater than fifty percent likely of being realized on examination. No benefit is recorded for tax positions that do not meet the more than likely than not test. The Corporation recognizes penalties related to income tax matters in income tax expense. The Corporation is subject to U.S. federal and Georgia state income tax audit for returns for the tax period ending December 31, 2013 and subsequent years. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes all changes in stockholders equity during a period, except those resulting from transactions with stockholders. Besides net income, other components of the Corporations accumulated other comprehensive income (loss) includes the after tax effect of changes in the net unrealized gain/loss on securities available for sale and the unrealized gain/loss on pension plan benefits. Trust Department Trust income is included in the accompanying consolidated financial statements on the cash basis in accordance with established industry practices. Reporting of such fees on the accrual basis would have no material effect on reported income. Advertising Costs It is the policy of the Corporation to expense advertising costs as they are incurred. The Corporation does not engage in any direct-response advertising and accordingly has no advertising costs reported as assets on its balance sheet. Costs that were expensed during 2015, 2014, and 2013 were $153,423, $161,994, and $180,505, respectively. Regulatory Developments The Corporation and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation and the Banks financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the federal banking agencies about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum Tier 1 leverage, Tier 1 risk-based capital and Total risk-based capital ratios. In July 2013, the Board of Governors of the Federal Reserve System published the Basel III Capital Rules establishing a new comprehensive capital framework applicable to all depository institutions, bank holding companies with total consolidated assets of $500 million or more and all and savings and loan holding companies except for those that are substantially engaged in insurance underwriting or commercial activities. These rules implement higher minimum capital requirements for banks and certain bank holding companies, include a new common equity Tier 1 capital requirement and establish criteria that instruments must meet to be considered common equity Tier 1 capital, additional Tier 1 capital or Tier 2 capital. As of December 31, 2015, the Corporation met the definition under the Basel III Capital Rules of a small bank holding company and, therefore, was exempt from consolidated risk-based and leverage capital adequacy guidelines for bank holding companies. The minimum capital level requirements applicable to the Bank under the Basel III Capital Rules are: (i) a common equity Tier 1 risk-based capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a Total risk-based capital ratio of 8% (unchanged from the rules effective for the year ended December 31, 2014); and (iv) a Tier 1 leverage ratio of 4% for all institutions. Common equity Tier 1 capital will consist of retained earnings and common stock instruments, subject to certain adjustments. The Bank became subject to these new minimum capital level requirements as of January 1, 2015. The Basel III Capital Rules set forth changes in the methods of calculating certain risk-weighted assets, which in turn affect the calculation of risk-based ratios. The new risk weightings are more punitive for assets held by banks that are deemed to be of higher risk. These changes were also effective beginning January 1, 2015. The Basel III Capital Rules also introduce a capital conservation buffer, which is in addition to each capital ratio and is phased-in over a three-year period beginning in January 2016. As of December 31, 2015, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since December 31, 2015, that management believes has changed the Banks status as well-capitalized. The capital ratios of the Corporation and Bank are presented in Footnote 15. Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans, Defined Contribution Pension Plans, and Health and Welfare Benefit Plans. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements Technical Corrections and Improvements In May 2015, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). In April 2015, the FASB issued ASU 2015-04, Compensation (Topic 715): Practical Expedient for the Measurement Date of an Employers Defined Benefit Obligation and Plan Assets In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In January 2015, the FASB issued ASU 2015-01 Income Statement Extraordinary and Unusual Items (Subtopic 225-20) |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Investments [Abstract] | |
Investment Securities | 2. INVESTMENT SECURITIES Debt and equity securities have been classified in the consolidated balance sheets according to managements intent. The amortized costs of securities as shown in the consolidated balance sheets and their estimated fair values at December 31 were as follows: Securities Available For Sale: December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government agency securities $ 42,074,712 $ 782,567 $ 214,957 $ 42,642,322 State and municipal securities 2,573,844 33,840 0 2,607,684 Residential mortgage-backed securities 3,601,949 140,934 1,438 3,741,445 Corporate notes 2,496,320 0 23,360 2,472,960 Total debt securities AFS 50,746,825 957,341 239,755 51,464,411 Equity securities 12,000 0 0 12,000 Total securities AFS $ 50,758,825 $ 957,341 $ 239,755 $ 51,476,411 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government agency securities $ 45,121,060 $ 758,874 $ 387,009 $ 45,492,925 State and municipal securities 880,580 0 5,913 874,667 Residential mortgage-backed securities 4,757,738 215,276 1,370 4,971,644 Corporate notes 2,495,765 4,255 1,300 2,498,720 Total securities AFS $ 53,255,143 $ 978,405 $ 395,592 $ 53,837,956 Securities Held to Maturity December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 54,775,093 $ 1,124,007 $ 41,153 $ 55,857,947 Residential mortgage-backed securities 6,113,711 227,041 0 6,340,752 Total securities HTM $ 60,888,804 $ 1,351,048 $ 41,153 $ 62,198,699 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 53,058,749 $ 958,434 $ 87,772 $ 53,929,411 Residential mortgage-backed securities 8,529,070 382,923 0 8,911,993 Total securities HTM $ 61,587,819 $ 1,341,357 $ 87,772 $ 62,841,404 At December 31, 2015, securities with a carrying value of $74,772,674 and a market value of $75,959,402 were pledged as collateral for public deposits and other purposes as required by law. Of these amounts, approximately $26,000,000 was over pledged and could be released if necessary for liquidity needs. At December 31, 2014, securities with a carrying value of $64,233,906 and a market value of $65,166,684 were pledged as collateral for public deposits and other purposes as required by law. At December 31, 2015 we had both 1 4 family and multifamily mortgage loans and at December 31, 2014, we had only 1-4 family mortgage loans pledged to secure Federal Home Loan Bank (FHLB) advances. The FHLB requires the Bank to hold a minimum investment of stock, based on membership and the level of activity. As of December 31, 2015, this stock investment was $1,869,200. There were no investments in obligations of any state or municipal subdivisions which exceeded 10% of the Corporations stockholders equity at December 31, 2015. The amortized cost and estimated fair value of securities at December 31, 2015 and 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. December 31, 2015 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 22,374,572 22,310,228 After five through ten years 22,553,504 23,222,962 After ten years 5,818,749 5,931,221 Total debt securities AFS 50,746,825 51,464,411 Equity securities 12,000 12,000 Total securities AFS $ 50,758,825 $ 51,476,411 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 3,956,629 $ 3,968,196 After one through five years 27,302,169 27,617,796 After five through ten years 21,412,080 22,253,863 After ten years 8,217,926 8,358,844 Total securities HTM $ 60,888,804 $ 62,198,699 December 31, 2014 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 18,453,816 18,260,779 After five through ten years 29,521,793 30,216,568 After ten years 5,279,534 5,360,609 Total securities AFS $ 53,255,143 $ 53,837,956 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 3,160,887 $ 3,196,256 After one through five years 28,494,335 28,780,760 After five through ten years 22,246,060 23,036,240 After ten years 7,686,537 7,828,148 Total securities HTM $ 61,587,819 $ 62,841,404 For the years ended December 31, 2015, 2014, and 2013, proceeds from sales of securities available for sale amounted to $4,044,500, $2,208,318, and $442,600, respectively. In 2015, $516,746 of securities held to maturity were sold. Reported net realized gains amounted to $3,587, $293,508, and $311,800, respectively. The net gain in 2015 was due to selling $4,044,500 in short-term U. S. government agency securities and $516,746 in mortgage-backed securities in order to provide liquidity and remove small lots of mortgage-backed securities. These small lots of held to maturity mortgage-backed securities sold were paid down by over 85% of face value. The net gain in 2014 was due to the sale of $2,208,318 of small lots of mortgage-backed securities and the remaining government sponsored entity preferred stock. The net gain in 2013 was due to the sale of $442,600 of a government sponsored entity preferred stock. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position, follows: December 31, 2015 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government agency securities $ 73,907 $ 11,885,323 $ 141,050 $ 5,858,950 State and municipal securities 0 0 0 0 Residential mortgage-backed securities 1,438 441,997 0 0 Corporate notes 22,360 1,973,960 1,000 499,000 Total debt securities available for sale $ 97,705 $ 14,301,280 $ 142,050 $ 6,357,950 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 26,435 $ 7,250,634 $ 14,718 $ 994,476 Residential mortgage-backed securities 0 0 0 0 Total securities held to maturity $ 26,435 $ 7,250,634 $ 14,718 $ 994,476 December 31, 2014 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government agency securities $ 17,172 $ 2,630,919 $ 369,837 $ 19,667,408 State and municipal securities 0 0 5,913 874,667 Residential mortgage-backed securities 1,300 498,700 0 0 Corporate notes 0 0 1,370 594,923 Total securities available for sale $ 18,472 $ 3,129,619 $ 377,120 $ 21,136,998 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 34,956 $ 9,199,455 $ 52,816 $ 4,130,041 Residential mortgage-backed securities 0 0 0 0 Total securities held to maturity $ 34,956 $ 9,199,455 $ 52,816 $ 4,130,041 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2015, thirty seven debt securities had unrealized losses with aggregate depreciation of .96% from the Corporations amortized cost basis. At December 31, 2014, fifty four debt securities had unrealized losses with aggregate depreciation of 1.27%. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuers financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers financial condition. Management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available for sale. Also, no declines in debt securities are deemed to be other-than-temporary. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Loans and Allowance for Loan Losses | 3. LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the Corporations loan portfolio at December 31, 2015 and 2014 was as follows: 2015 2014 Commercial, financial and agricultural loans $ 58,173,187 $ 47,861,368 Real estate Construction loans 19,831,070 12,257,185 Commercial mortgage loans 85,777,359 76,915,794 Residential loans 67,969,119 69,304,248 Agricultural loans 15,620,266 14,996,076 Consumer & other loans 3,434,380 3,091,067 Loans outstanding 250,805,381 224,425,738 Unearned interest and discount (19,046 ) (25,921 ) Allowance for loan losses (3,032,242 ) (3,114,151 ) Net loans $ 247,754,093 $ 221,285,666 The Corporations only significant concentration of credit at December 31, 2015, occurred in real estate loans which totaled approximately $189 million. However, this amount was not concentrated in any specific segment within the market or geographic area. At December 31, 2015, $44,138,262 1-4 family and multifamily mortgage loans were pledged to FHLB to secure outstanding advances. Appraisal Policy When a loan is first identified as a problem loan, the appraisal is reviewed to determine if the appraised value is still appropriate for the collateral. For the duration that a loan is considered a problem loan, the appraised value of the collateral is monitored on a quarterly basis. If significant changes occur in market conditions or in the condition of the collateral, a new appraisal will be obtained. Nonaccrual Policy The Corporation does not accrue interest on any loan (1) that is maintained on a cash basis due to the deteriorated financial condition of the borrower, (2) for which payment in full of principal or interest is not expected, or (3) upon which principal or interest has been past due for ninety days or more unless the loan is well secured and in the process of collection. A loan subsequently placed on nonaccrual status may be returned to accrual status if (1) all past due interest and principal is paid with expectations of any remaining contractual principal and interest being repaid or (2) the loan becomes well secured and in the process of collection. Loans placed on nonaccrual status amounted to $1,545,599 and $785,572 at December 31, 2015 and 2014, respectively. There was one past due loan over ninety days and still accruing in the amount of $521 at December 31, 2015 and no past due loans over 90 days and still accruing at December 31, 2014. The accrual of interest is discontinued when the loan is placed on nonaccrual. Interest income that would have been recorded on these nonaccrual loans in accordance with their original terms totaled $40,346 and $34,300 as of year-end 2015 and 2014, respectively. The following tables present an age analysis of past due loans and nonaccrual loans segregated by class of loans. Age Analysis of Past Due Loans As of December 31, 2015 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 449,618 $ 521 $ 450,139 $ 0 $ 57,723,048 $ 58,173,187 Real estate: Construction loans 121,694 0 121,694 0 19,709,376 19,831,070 Commercial mortgage loans 810,515 0 810,515 0 84,966,844 85,777,359 Residential loans 2,238,684 0 2,238,684 639,094 65,091,341 67,969,119 Agricultural loans 148,761 0 148,761 906,505 14,565,000 15,620,266 Consumer & other loans 84,342 0 84,342 0 3,350,038 3,434,380 Total loans $ 3,853,614 $ 521 $ 3,854,135 $ 1,545,599 $ 245,405,647 $ 250,805,381 Age Analysis of Past Due Loans As of December 31, 2014 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 518,578 $ 0 $ 518,578 $ 25,500 $ 47,317,290 $ 47,861,368 Real estate: Construction loans 233,734 0 233,734 0 12,023,451 12,257,185 Commercial mortgage loans 517,488 0 517,488 681,360 75,716,946 76,915,794 Residential loans 534,896 0 534,896 21,796 68,747,556 69,304,248 Agricultural loans 0 0 0 37,707 14,958,369 14,996,076 Consumer & other loans 70,142 0 70,142 19,209 3,001,716 3,091,067 Total loans $ 1,874,838 $ 0 $ 1,874,838 $ 785,572 $ 221,765,328 $ 224,425,738 Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowers prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loans obtainable market price, or the fair value of the collateral if the loan is collateral dependent. At December 31, 2015 and 2014, impaired loans amounted to $5,558,615 and $4,126,957, respectively. A reserve amount of $304,114 and $478,814, respectively, was recorded in the allowance for loan losses for these impaired loans as of December 31, 2015 and 2014. The following tables present impaired loans, segregated by class of loans as of December 31, 2015 and 2014: Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2015 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Real estate: Construction loans 193,524 72,724 0 72,724 0 133,693 15,049 Commercial mortgage loans 3,256,589 496,159 2,760,430 3,256,589 212,283 2,096,082 89,947 Residential loans 1,988,434 662,523 1,304,999 1,967,522 91,831 3,832,546 107,070 Agricultural loans 257,211 257,211 0 257,211 0 422,099 25,823 Consumer & other loans 4,569 4,569 0 4,569 0 0 0 Total loans $ 5,700,327 $ 1,493,186 $ 4,065,429 $ 5,558,615 $ 304,114 $ 6,484,420 $ 237,889 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2014 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 202,323 $ 25,500 $ 176,823 $ 202,323 $ 99,067 $ 210,968 $ 12,192 Real estate: Construction loans 208,121 87,321 0 87,321 0 76,555 17,925 Commercial mortgage loans 1,170,496 0 1,170,496 1,170,496 240,899 1,309,828 49,522 Residential loans 2,336,711 568,909 1,746,890 2,315,799 129,060 2,232,148 110,730 Agricultural loans 323,808 148,090 175,718 323,808 9,788 425,865 59,802 Consumer & other loans 30,953 27,210 0 27,210 0 23,937 1,324 Total loans $ 4,272,412 $ 857,030 $ 3,269,927 $ 4,126,957 $ 478,814 $ 4,279,301 $ 251,495 For the period ending December 31, 2013, the average recorded investment for impaired loans was $2,666,440 and the interest income received during impairment was $113,689. At December 31, 2015 and 2014, included in impaired loans were $2,290,411 and $215,432, respectively, of troubled debt restructurings. Troubled Debt Restructurings Loans are considered to have been modified in a troubled debt restructuring, or TDR, when due to a borrowers financial difficulty the Corporation makes certain concessions to the borrower that it would not otherwise consider for new debt with similar risk characteristics. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrowers specific circumstances at a point in time. Not all loan modifications are TDRs. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. Loan modifications are reviewed and recommended by the Corporations senior credit officer, who determines whether the loan meets the criteria for a TDR. Generally, the types of concessions granted to borrowers that are evaluated in determining whether the loan is classified as a TDR include: · Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not be able to obtain elsewhere under similar circumstances. · Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral. · Principal reductions – Arise when the Corporation charges off a portion of the principal that is not fully collateralized and collectability is uncertain; however, this portion of principal may be recovered in the future under certain circumstances. The following tables present the amount of troubled debt restructuring by loan class, classified separately as accrual and nonaccrual at December 31, 2015 and 2014, as well as those currently paying under restructured terms and those that have defaulted under restructured terms as of December 31, 2015 and 2014. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 or more days past due. December 31, 2015 Under restructured terms Accruing Non-accruing # Current # Default Commercial, financial, and agricultural loans $ 0 $ 0 0 $ 0 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 2,280,466 0 1 2,280,466 0 0 Residential loans 5,376 0 1 5,376 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 4,569 0 1 4,569 0 0 Total TDRs $ 2,290,411 $ 0 3 $ 2,290,411 0 $ 0 December 31, 2014 Under restructured terms Accruing Non-accruing # Current # Default Commercial, financial, and agricultural loans $ 31,713 $ 0 1 $ 31,713 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 0 0 0 0 0 0 Agricultural loans 175,718 0 1 175,718 0 0 Consumer & other loans 8,001 0 1 868 3 7,133 Total TDRs $ 215,432 $ 0 3 $ 208,299 3 $ 7,133 The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and nonaccrual at December 31, 2015 and 2014. December 31, 2015 December 31, 2014 Accruing Nonaccruing Accruing Nonaccruing # Balance # Balance # Balance # Balance Type of concession: Payment modification 0 $ 0 0 $ 0 1 $ 175,718 0 $ 0 Rate reduction 0 0 0 0 0 0 0 0 Rate reduction, payment modification 3 2,290,411 0 0 4 8,001 0 0 Forbearance of interest 0 0 0 0 1 31,713 0 0 Total 3 $ 2,290,411 0 $ 0 6 $ 215,432 0 $ 0 As of December 31, 2015 and 2014, the Corporation had a balance of $2,290,411 and $215,432, respectively, in troubled debt restructurings. The Corporation had no charge-offs on such loans as of December 31, 2015, and $3,290 in charge-offs as of December 31, 2014. The Corporations balance in the allowance for loan losses allocated to such troubled debt restructurings was $130,441 and $24,231 at December 31, 2015 and 2014, respectively. The Corporation had no unfunded commitment to lend to a customer that has a troubled debt restructured loan as of December 31, 2015. Credit Risk Monitoring and Loan Grading The Corporation employs several means to monitor the risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical loss experience and economic conditions. Loans are subject to an internal risk grading system which indicates the risk and acceptability of that loan. The loan grades used by the Corporation are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions. The general characteristics of the risk grades are as follows: Grade 1 Exceptional Grade 2 Above Average Grade 3 Acceptable Grade 4 Fair Grade 5a Watch Grade 5b Other Assets Especially Mentioned (OAEM) Grade 6 Substandard Grade 7 Doubtful Grade 8 Loss The following tables present internal loan grading by class of loans at December 31, 2015 and 2014: December 31, 2015 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 731,270 $ 0 $ 0 $ 25,988 $ 0 $ 416,250 $ 1,173,508 Grade 2- Above Avg. 0 0 0 10,011 329,069 0 339,080 Grade 3- Acceptable 30,581,968 7,569,566 26,285,799 31,303,029 9,648,983 1,756,139 107,145,484 Grade 4- Fair 26,075,703 11,022,826 53,296,973 30,946,390 3,930,746 1,230,515 126,503,153 Grade 5a- Watch 217,295 1,097,222 4,791,317 1,263,077 638,402 5,999 8,013,312 Grade 5b- OAEM 560,678 0 523,596 1,233,611 0 13,802 2,331,687 Grade 6- Substandard 6,273 141,456 879,674 3,155,625 1,073,066 11,675 5,267,769 Grade 7- Doubtful 0 0 0 31,388 0 0 31,388 Total loans $ 58,173,187 $ 19,831,070 $ 85,777,359 $ 67,969,119 $ 15,620,266 $ 3,434,380 $ 250,805,381 December 31, 2014 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 926,512 $ 0 $ 0 $ 27,017 $ 0 $ 39,353 $ 992,882 Grade 2- Above Avg. 0 0 0 89,109 356,081 0 445,190 Grade 3- Acceptable 28,793,317 3,656,979 28,294,037 34,766,811 10,183,723 2,014,924 107,709,791 Grade 4- Fair 17,498,283 7,298,860 45,578,932 28,691,419 2,525,044 959,978 102,552,516 Grade 5a- Watch 392,644 1,135,991 1,411,604 795,450 0 868 3,736,557 Grade 5b- OAEM 38,414 0 590,011 1,240,299 1,755,510 31,872 3,656,106 Grade 6- Substandard 212,198 165,355 1,041,210 3,660,179 175,718 44,072 5,298,732 Grade 7- Doubtful 0 0 0 33,964 0 0 33,964 Total loans $ 47,861,368 $ 12,257,185 $ 76,915,794 $ 69,304,248 $ 14,996,076 $ 3,091,067 $ 224,425,738 Allowance for Loan Losses Methodology The allowance for loan losses (ALL) is determined by a calculation based on segmenting the loans into the following categories: (1) impaired loans and nonaccrual loans, (2) loans with a credit risk rating of 5, 6, 7 or 8, (3) other outstanding loans, and (4) other commitments to lend. In addition, unallocated general reserves are estimated based on migration and economic analysis of the loan portfolio. The ALL is calculated by the addition of the estimated loss derived from each of the above categories. The impaired loans and nonaccrual loans over $50,000 are analyzed on an individual basis to determine if the future collateral value is sufficient to support the outstanding debt of the loan. If an estimated loss is calculated, it is included in the estimated ALL until it is charged to the loan loss reserve. The calculation for loan risk graded 5, 6, 7 or 8, other outstanding loans and other commitments to lend is based on assigning an estimated loss factor based on a twelve quarter rolling historical weighted average net loss rate. The estimated requirement for unallocated general reserves from migration and economic analysis is determined by considering (1) trends in asset quality, (2) level and trends in charge-off experience, (3) macroeconomic trends and conditions, (4) microeconomic trends and conditions and (5) risk profile of lending activities. Within each of these categories, a high risk factor percentage and a low risk factor percentage from a rating of excessive, high, moderate or low will be determined by management and applied to the loan portfolio. This results in a high and low range of the estimated reserves required. By adding the estimated high and low value from the migration and economic analysis to the estimated reserve from the loan portfolio, a high and low range of total estimated loss reserves is obtained. This amount is then compared to the actual amount in the loan loss reserve. The calculation of ALL is performed on a monthly basis and is presented to the Loan Committee and the Board of Directors. Changes in the allowance for loan losses are as follows: 2015 2014 2013 Balance, January 1 $ 3,114,151 $ 3,077,561 $ 2,844,903 Provision charged to operations 141,300 330,000 420,000 Loans charged off (319,200 ) (341,377 ) (233,842 ) Recoveries 95,991 47,967 46,500 Balance, December 31 $ 3,032,242 $ 3,114,151 $ 3,077,561 The following tables detail activity in the ALL by class of loans for the years ended December 31, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. December 31, 2015 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2014 $ 299,850 $ 1,043,083 $ 1,192,098 $ 312,822 $ 86,656 $ 179,642 $ 3,114,151 Charge-offs 263,809 0 0 33,238 0 22,153 319,200 Recoveries 42,253 0 0 22,047 0 31,691 95,991 Net charge-offs 221,556 0 0 11,191 0 (9,538 ) 223,209 Provisions charged to operations 66,487 0 0 80,260 0 (5,447 ) 141,300 Balance at end of period, December 31, 2015 $ 144,781 $ 1,043,083 $ 1,192,098 $ 381,891 $ 86,656 $ 183,733 $ 3,032,242 Ending balance - Individually evaluated for impairment $ 0 $ 0 $ 212,283 $ 91,831 $ 0 $ 0 $ 304,114 Collectively evaluated for impairment 144,781 1,043,083 979,815 290,060 86,656 183,733 2,728,128 Balance at end of period $ 144,781 $ 1,043,083 $ 1,192,098 $ 381,891 $ 86,656 $ 183,733 $ 3,032,242 Loans : Ending balance - Individually evaluated for impairment $ 0 $ 1,012,831 $ 5,414,491 $ 2,896,953 $ 1,682,207 $ 4,569 $ 11,011,051 Collectively evaluated for impairment 58,173,187 18,818,239 80,362,868 65,072,166 13,938,059 3,429,811 239,794,330 Balance at end of period $ 58,173,187 $ 19,831,070 $ 85,777,359 $ 67,969,119 $ 15,620,266 $ 3,434,380 $ 250,805,381 December 31, 2014 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2013 $ 297,546 $ 1,032,053 $ 1,192,098 $ 301,169 $ 76,868 $ 177,827 $ 3,077,561 Charge-offs 37,186 120,800 0 157,744 0 25,647 341,377 Recoveries 11,957 0 0 30,247 0 5,763 47,967 Net charge-offs 25,229 120,800 0 127,497 0 19,884 293,410 Provisions charged to operations 27,533 131,830 0 139,150 9,788 21,699 330,000 Balance at end of period, December 31, 2014 $ 299,850 $ 1,043,083 $ 1,192,098 $ 312,822 $ 86,656 $ 179,642 $ 3,114,151 Ending balance - Individually evaluated for impairment $ 99,067 $ 0 $ 240,899 $ 129,060 $ 9,788 $ 0 $ 478,814 Collectively evaluated for impairment 200,783 1,043,083 951,199 183,762 76,868 179,642 2,635,337 Balance at end of period $ 299,850 $ 1,043,083 $ 1,192,098 $ 312,822 $ 86,656 $ 179,642 $ 3,114,151 Loans : Ending balance - Individually evaluated for impairment $ 202,323 $ 1,066,771 $ 2,623,475 $ 3,415,987 $ 1,317,256 $ 27,210 $ 8,653,022 Collectively evaluated for impairment 47,659,045 11,190,414 74,292,319 65,888,261 13,678,820 3,063,857 215,772,716 Balance at end of period $ 47,861,368 $ 12,257,185 $ 76,915,794 $ 69,304,248 $ 14,996,076 $ 3,091,067 $ 224,425,738 The following table is a summary of amounts included in the ALL for the impaired loans with specific reserves and the recorded balance of the related loans. Year Ended December 31, 2015 2014 2013 Allowance for loss on impaired loans $ 304,114 $ 478,814 $ 469,302 Recorded balance of impaired loans $ 5,558,615 $ 4,126,957 $ 2,997,359 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 4. PREMISES AND EQUIPMENT The amounts reported as bank premises and equipment at December 31, 2015 and 2014, are as follows: 2015 2014 Land $ 3,089,352 $ 3,089,352 Building 13,396,340 13,326,516 Furniture and equipment 9,006,056 8,933,200 25,491,748 25,349,068 Less accumulated depreciation (14,334,304 ) (13,592,801 ) Total $ 11,157,444 $ 11,756,267 Depreciation of premises and equipment was $961,964, $890,812, and $897,849 in 2015, 2014, and 2013, respectively. The Corporation depreciates its long-lived assets on various methods over their estimated productive lives, as more fully described in Note 1, Summary of Significant Accounting Policies. A commercial banking center in Valdosta, Georgia, was completed and opened in August of 2014. A building is being leased for a loan production office opened in Tifton, Georgia, in January 2016. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. INTANGIBLE ASSETS The following table lists the Corporations account relationship intangible assets at December 31, 2015 and 2014. These assets have less than four years of remaining amortization. 2015 2014 Amortizing intangible assets Account relationships $ 50,781 $ 66,406 Total intangible assets $ 50,781 $ 66,406 The intangible assets carrying amount, accumulated amortization and amortization expense for December 31, 2015, and the four succeeding fiscal years are as follows: 2015 2016 2017 2018 2019 Amortizing intangible assets Account relationships Gross carrying amount $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 Accumulated amortization 74,219 89,844 105,469 121,094 125,000 Net carrying amount $ 50,781 $ 35,156 $ 19,531 $ 3,906 $ 0 Amortization expense $ 15,625 $ 15,625 $ 15,625 $ 15,625 $ 3,906 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits: | |
Deposits | 6. DEPOSITS At December 31, 2015, the scheduled maturities of certificates of deposit are as follows: Amount 2016 $ 54,751,692 2017 16,103,016 2018 4,980,959 2019 66,595 2020 and thereafter 14,906 Total $ 75,917,168 The amount of overdraft deposits reclassified as loans were $62,216 and $79,935 for the years ended December 31, 2015 and 2014, respectively. There are 21 certificates of deposit totaling $10,060,028 that are above the FDIC insurance limit of $250,000. |
Short-Term Borrowed Funds
Short-Term Borrowed Funds | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowed Funds | 7. SHORT-TERM BORROWED FUNDS Federal funds purchased generally mature within one to four days. On December 31, 2015, the Corporation did not have any federal funds purchased. The Corporation had approximately $88,000,000 in unused federal funds accommodations at year-end 2015. Other short-term borrowed funds consist of FHLB advances of $7,590,476 with interest at 1.22% as of December 31, 2015, and $5,133,333 with interest at 1.08% as of December 31, 2014. The Corporation maintains a line of credit with the Federal Reserve Banks Discount Window. The maximum amount that can be borrowed is dependent upon the amount of unpledged securities held by the Corporation as the amount of borrowings must be fully secured. Information concerning federal funds purchased and FHLB short-term advances are summarized as follows: 2015 2014 Average balance during the year $ 7,028,679 $ 8,117,476 Average interest rate during the year 0.96 % 2.09 % Maximum month-end balance during the year $ 10,133,333 $ 12,133,333 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. LONG-TERM DEBT Long-term debt at December 31, 2015 and 2014, consisted of the following: 2015 2014 Advance from FHLB with a 3.39% fixed rate of interest maturing August 20, 2018 (convertible to a variable rate at quarterly options of FHLB no conversion option has been made). $ 5,000,000 $ 5,000,000 Advance from FHLB with a 2.78% fixed rate of interest maturing September 10, 2018 (convertible to a variable rate at quarterly options of FHLB no conversion option has been made). 5,000,000 5,000,000 Advance from FHLB with 1.43% fixed rate of interest with annual installment payments maturing September 4, 2018. 3,600,000 5,400,000 Advance from FHLB with 0.89% fixed rate of interest with annual installment payments maturing July 24, 2017. 3,333,333 6,666,667 Advance from FHLB with 1.25% fixed rate of interest with annual installment payments maturing September 30, 2020. 6,400,000 0 Advance from FHLB with 1.94% fixed rate of interest with annual installment payments maturing December 16, 2022. 5,142,857 0 Total long-term debt $ 28,476,190 $ 22,066,667 The advances from FHLB are collateralized by the pledging of a combination of 1-4 family residential mortgages, multifamily loans, and investment securities. At December 31, 2015, 1-4 family residential mortgage loans and multifamily loans with a lendable collateral value of $44,138,262 were pledged to secure these advances. In 2014, the advances were secured by 1-4 family residential mortgage loans with a lendable collateral value of $34,813,653. The amount of FHLB Stock held is based on membership and level of FHLB advances. At year end 2015 and 2014, the amount of stock held that is based on membership was $336,300 and $336,000, respectively, and the amount of stock held that is based on the level of FHLB advances was $1,532,900 and $1,224,000, respectively. At December 31, 2015, the Corporation had approximately $67,300,000 of unused lines of credit with the FHLB. The following are maturities of long-term debt for the next five years. At December 31, 2015, there was no floating rate long-term debt; however, two of these advances have convertible call features. Two advances totaling $10,000,000 have convertible options by the issuer to convert the rates to a 3-month LIBOR. The Bank intends to pay off these advances at the conversion dates. The Bank has the ability to hold this debt until conversion and the means of repayment. Due in: Fixed Rate Amount 2016 $ 0 2017 7,590,476 2018* 13,400,000 2019 3,314,286 2020 1,600,000 Later years 2,571,428 Total long-term debt $ 28,476,190 *Fixed rate advances with convertible options of $10,000,000. |
Employee Benefits and Retiremen
Employee Benefits and Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits and Retirement Plans | 9. EMPLOYEE BENEFITS AND RETIREMENT PLANS Pension Plan The Corporation has a noncontributory defined benefit pension plan which covers most employees who have attained the age of 21 years and completed one year of continuous service. The Corporation is providing for the cost of this plan as benefits are accrued based upon actuarial determinations employing the aggregate funding method. The table of actuarially computed benefit obligations and net assets and the related changes of the Plan at December 31, 2015, 2014, and 2013, is presented below. 2015 2014 2013 Change in Benefit Obligation Benefit obligation at beginning of year $ 13,322,751 $ 13,308,069 $ 12,929,816 Service cost 0 0 0 Interest cost 714,604 727,305 697,704 Amendments 0 0 0 Benefits paid (1,079,912 ) (1,020,747 ) (974,761 ) Other net 927,935 308,124 655,310 Benefit obligation at end of year $ 13,885,378 $ 13,322,751 $ 13,308,069 Change in Plan Assets Fair value of plan assets at beginning of year $ 11,889,678 $ 11,819,296 $ 11,249,592 Actual return on plan assets 110,504 485,129 769,465 Employer contribution 500,000 606,000 775,000 Benefits paid (1,079,912 ) (1,020,747 ) (974,761 ) Fair value of plan assets at end of year $ 11,420,270 $ 11,889,678 $ 11,819,296 2015 2014 2013 Funded status $ (2,465,108 ) $ (1,433,073 ) $ (1,488,773 ) Unrecognized net actuarial (gain)/loss 0 0 0 Unrecognized prior service cost 0 0 0 Pension liability included in other liabilities $ (2,465,108 ) $ (1,433,073 ) $ (1,488,773 ) Accumulated benefit obligation $ 13,885,378 $ 13,322,751 $ 13,308,069 Amount recognized in consolidated balance sheet consist of the following: 2015 2014 2013 Accrued Pension $ 2,465,108 $ 1,433,073 $ 1,488,773 Deferred tax assets $ 838,137 $ 487,245 $ 506,183 Accumulated other comprehensive income 1,626,971 945,828 982,590 Total $ 2,465,108 $ 1,433,073 $ 1,488,773 Components of Pension Cost 2015 2014 2013 Service cost $ 0 $ 0 $ 0 Interest cost on benefit obligation 714,604 727,305 697,704 Expected return on plan assets (928,160 ) (932,417 ) (875,553 ) Other - net 448,707 471,185 479,567 Net periodic pension cost $ 235,151 $ 266,073 $ 301,718 Other changes in plan assets and benefit obligations recognized in comprehensive income: 2015 2014 2013 Net loss (gain) $ 1,032,035 $ (55,700 ) $ (191,451 ) Prior service costs 0 0 0 Total recognized in other comprehensive income (loss) $ 1,032,035 $ (55,700 ) $ (191,451 ) Net periodic pension cost 235,151 266,073 301,718 Total recognized in net periodic pension cost and other comprehensive income $ 1,267,186 $ 210,373 $ 110,267 After adopting ASC Topic 960, Employers Accounting for Deferred Benefit Pension Plan and Other Postretirement Plans, and freezing its pension retirement plan, the Corporation increased the accrued liability by $1,032,035 in 2015 and reduced the accrued pension liability by $55,700 in 2014. Also, changes were made to other comprehensive income (loss) of $(681,143) for 2015 and $36,762 for 2014 on a pre-tax basis. During 2015, the fair value of the plan assets decreased $469,408. At December 31, 2015, the plan assets included cash and cash equivalents, certificates of deposits with banks, municipal securities, U.S. government agency securities, corporate notes, and equity securities. Assumptions used to determine the benefit obligation as of December 31, 2015 and 2014 respectively were: 2015 2014 Weighted-Average Assumptions as of December 31 Discount rate 5.75 % 5.60 % Rate of compensation increase N/A N/A For the years ended December 31, 2015, 2014, and 2013, the assumptions used to determine net periodic pension costs are as follows: 2015 2014 2013 Discount rate 5.60 % 5.70 % 5.50 % Expected return on plan assets 8.00 % 8.00 % 8.00 % Rate of compensation increase N/A N/A N/A The expected rate of return represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In determining the expected rate of return, the Corporation considers long-term compound annualized returns of historical market data as well as actual returns on the Corporations plan assets, and applies adjustments that reflect more recent capital market experience. The Corporations pension plan investment objective is both security and long-term stability, with moderate growth. The investment strategies and policies employed provide for investments, other than fixed-dollar investments, to prevent erosion by inflation. Sufficient funds are held in a liquid nature (money market, short-term securities) to allow for the payment of plan benefits and expenses, without subjecting the funds to loss upon liquidation. In an effort to provide a higher return with lower risk, the fund assets are allocated between stocks, fixed income securities, and cash equivalents. All plan investments and transactions are in compliance with ERISA and any other law applicable to employee benefit plans. The targeted investment portfolio is allocated up to 30% in equities, 50% to 90% in fixed-income investments, and up to 20% in cash equivalent investments. All the Corporations equity investments are in mutual funds with a Morningstar rating of 3 or higher, have at least $300 million in investments, and have been in existence 5 years or more. Fixed income securities include issues of the U.S. government and its agencies and corporate notes. Any corporate note purchased has a rating (by Standard & Poors or Moodys) of A or better. The average maturity of the fixed income portion of the portfolio does not exceed 10 years. Pension Asset Allocation and Fair Value Measurement as of December 31 2015 2014 Fair Value Level 1 % Fair Value Level 1 % Investment at fair value as determined by quoted market price: Equity $ 3,236,166 $ 3,236,166 28 % $ 2,754,951 $ 2,754,951 23 % Fixed income 4,268,825 4,268,825 37 % 4,812,463 4,812,463 41 % Total $ 7,504,991 $ 7,504,991 65 % $ 7,567,414 $ 7,567,414 64 % Investment as estimated fair value: Certificates of deposit $ 3,257,418 $ 3,257,418 29 % $ 3,260,260 $ 3,260,260 27 % Cash and cash equivalent 657,861 657,861 6 % 1,062,004 1,062,004 9 % Total $ 3,915,279 $ 3,915,279 35 % $ 4,322,264 $ 4,322,264 36 % Total $ 11,420,270 $ 11,420,270 100 % $ 11,889,678 $ 11,889,678 100 % All of the pension plans investments were reported as Level 1 assets and received Level 1 fair value measurement. ASC Topic 820, Fair Value Measurements and Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority, and Level 3 inputs have the lowest priority. These levels are: Level 1 - The fair values of mutual funds, preferred stock, corporate notes, and U.S. government agency securities were based on quoted market prices. Money market funds and certificates of deposit were reported at fair value. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that were not active, and model-based valuation techniques for which all significant assumptions were observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Estimated Contributions The Corporation expects to contribute $500,000 to its pension plan in 2016. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service and decrements as appropriate, are expected to be paid for fiscal years beginning: 2016 $ 1,186,000 2017 1,166,000 2018 1,150,000 2019 1,134,000 2020 1,117,000 Years 2021 2025 5,341,000 The estimated amortization amount for 2016 is a net loss of $657,260, no prior service cost or credit, and no net transition asset or obligation. Southwest Georgia Bank 401(K) Plan In place of the Corporations frozen defined pension retirement plan, the Corporation offers its employees a 401(K) Plan. This 401(K) plan is a qualified defined contribution plan as provided for under Section 401(K) of the Internal Revenue Code. This plan is a safeharbor plan meaning that the Corporation will match contributions dollar for dollar for the first four percent of salary participants defer into the plan. The plan does allow for discretionary match in excess of the four percent and that the participants are allowed to defer the maximum amount of salary. The Corporation matched the employee participants for the first four percent of salary contributing to the plan $188,338, $202,233, and $205,932 for the years ended December 31, 2015, 2014, and 2013, respectively. Employee Stock Ownership Plan The Corporation has a nondiscriminatory Employee Stock Ownership Plan and Trust (the ESOP) administered by a trustee. The plan was established to purchase and hold Southwest Georgia Financial Corporation stock for all eligible employees. Contributions to the plan are made solely by the Corporation and are at the discretion of the Board of Directors. The annual amount of the contribution is determined by taking into consideration the financial conditions, profitability, and fiscal requirements of the Corporation. There were contributions of $294,642, $321,000, and $275,000 for the years ended December 31, 2015, 2014, and 2013, respectively. Contributions to eligible participants are based on percentage of annual compensation. As of December 31, 2015, the ESOP holds 300,809 shares of the Corporations outstanding common stock. All 276,212 released shares are allocated to the participants. The 24,597 unreleased shares are pledged as collateral for a $363,000 long-term debt incurred from repurchasing participants shares. Dividends paid by the Corporation on ESOP shares are allocated to the participants based on shares held. ESOP shares are included in the Corporations outstanding shares and earnings per share computation. Directors Deferred Compensation Plan The Corporation has a voluntary deferred compensation plan for the Board of Directors administered by an insurance company. The plan stipulates that if a director participates in the Plan for four years, the Corporation will pay the director future monthly income for ten years beginning at normal retirement age, and the Corporation will make specified monthly payments to the directors beneficiaries in the event of his or her death prior to the completion of such payments. The plan is funded by life insurance policies with the Corporation as the named beneficiary. This plan is closed to new director enrollment and participation. Directors and Executive Officers Stock Purchase Plan The Corporation has adopted a stock purchase plan for the executive officers and directors of Southwest Georgia Financial Corporation. Under the plan, participants may elect to contribute up to $900 monthly of salary or directors fees and receive corporate common stock with an aggregate value of two times their contribution. The expense incurred during 2015, 2014, and 2013 on the part of the Corporation totaled $282,600, $287,150, and $272,000, respectively. Stock Option Plan Effective March 19, 1997, the Corporation established a Key Individual Stock Option Plan (the Option Plan) which provides for the issuance of options to key employees and directors of the Corporation. In April 1997, the Option Plan was approved by the Corporations stockholders, and was effective for the duration of ten years. Under the Option Plan, the exercise price of each option equals the market price of the Corporations stock on the grant date for a term of ten years. All of these stock options are fully vested. The fair value of each stock option grant is estimated on the grant date using an option-pricing model using weighted-average assumptions. The fair value of each option was expensed over its vesting period. A maximum of 196,680 shares of common stock were authorized for issuance with respect to options granted under the Option Plan. The Option Plan provided for the grant of incentive stock options and nonqualified stock options to key employees of the Corporation. The Option Plan is administered by the Personnel Committee of the Board of Directors. The following table sets forth the number of stock options granted, the average fair value of options granted, and the weighted-average assumptions used to determine the fair value of the stock options granted. 2015 2014 2013 Number of stock options granted 0 0 0 Average fair value of stock options granted 0 0 0 Number of option shares exercisable 1,000 2,500 10,900 Average price of stock options exercisable $ 19.95 $ 21.21 $ 20.19 A summary of the status of the Corporations Option Plan as of December 31, 2015, 2014 and 2013, and the changes in stock options during the years are presented below: No. of Shares Average Price Outstanding at December 31, 2012 10,900 $ 20.19 Granted 0 0 Expired 0 0 Exercised 0 0 Outstanding at December 31, 2013 10,900 $ 20.19 Granted 0 0 Expired (8,400) 19.89 Exercised 0 0 Outstanding at December 31, 2014 2,500 $ 21.21 Granted 0 0 Expired (1,500) 22.05 Exercised 0 0 Outstanding at December 31, 2015 1,000 $ 19.95 The following table summarizes information about fixed stock options outstanding and exercisable at December 31, 2015. Outstanding Stock Options Exercisable Stock Options Exercise Price Range Number Outstanding At 12/31/15 Weighted- Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable At 12/31/15 Weighted Average Exercise Price $19 to $20 1,000 0.5 Years $ 19.95 1,000 $ 19.95 Dividend Reinvestment and Share Purchase Plan The Corporation maintains a dividend reinvestment and share purchase plan. The purpose of the plan is to provide stockholders of record of the Corporations common stock, who elect to participate in the plan, with a simple and convenient method of investing cash dividends and voluntary cash contributions in shares of the common stock without payment of any brokerage commissions or other charges. Eligible participants may purchase common stock through automatic reinvestment of common stock dividends on all or partial shares and make additional voluntary cash payments of not less than $5 nor more than $5,000 per month. The participants price of common stock purchased with dividends or voluntary cash payments will be the average price of all shares purchased in the open market, or if issued from unissued shares or treasury stock the price will be the average of the high and low sales prices of the stock on the NYSE MKT LLC on the dividend payable date or other purchase date. During the years ended December 31, 2015, 2014, and 2013, shares issued through the plan were 6,702, 6,503, and 5,381, respectively, at an average price of $14.73, $13.70, and $10.73, per share, respectively. These numbers of shares and average price per share are not adjusted by stock dividends. Equity Incentive Award The Corporation has a 2013 Omnibus Incentive Plan (the Incentive Plan) that was approved by our shareholders at the Corporations 2014 Annual Meeting. The Incentive Plan was established to attract, retain and motivate the Corporations employees, consultants, advisors and directors, to promote the success of our business by linking their personal interests to those of our shareholders and to encourage stock ownership on the part of management. Under the Incentive Plan, the Corporation may issue a maximum aggregate amount of 125,000 shares of common stock pursuant to (i) stock options, which includes incentive stock options and non-qualified stock options, (ii) stock appreciation rights, (iii) restricted stock awards, (iv) restricted stock units, (v) incentive awards, (vi) other stock-based awards and (vii) dividend equivalents. The Corporation may also grant cash-based awards under the Incentive Plan. The Corporation did not grant any equity incentive awards during 2015 or 2014. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES Components of income tax expense for 2015, 2014, and 2013 are as follows: 2015 2014 2013 Current expense (benefit) $ 900,543 $ 435,943 $ (120,244 ) Deferred taxes (benefit) (73,379 ) 303,614 484,908 Total income taxes $ 827,164 $ 739,557 $ 364,664 The reasons for the difference between the federal income taxes in the consolidated statements of income and the amount and percentage computed by the applying the combine statutory federal and state income tax rate to income taxes are as follows: 2015 2014 2013 Amount % Amount % Amount % Taxes at statutory income tax rate $ 1,428,272 34.0 $ 1,238,752 34.0 $ 1,066,582 34.0 Reductions in taxes resulting from exempt income (540,861 ) (12.9 ) (454,779 ) (12.5 ) (464,631 ) (14.8 ) Other timing differences (60,247 ) (1.4 ) (44,416 ) (1.2 ) (237,287 ) (7.6 ) Total income taxes $ 827,164 19.7 $ 739,557 20.3 $ 364,664 11.6 The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2015, 2014, and 2013 are summarized as follows: 2015 2014 2013 Nonqualified retirement plan $ (7,229 ) $ 0 $ 0 Deferred gain on covered transaction (24,154 ) 0 0 Nonaccrual loan interest (34,104 ) 0 0 Foreclosed assets expenses (4,577 ) 74,130 297,004 Bad debt expense in excess of tax 27,850 (12,441 ) (310,694 ) Realized impairment gain on equity securities 13,233 163,625 509,736 Accretion of discounted bonds 26,370 20,058 9,175 Gain on disposition of discounted bonds (3,503 ) (2,470 ) (7,106 ) Book and tax depreciation difference (67,265 ) 60,712 (13,207 ) Total deferred taxes $ (73,379 ) $ 303,614 $ 484,908 December 31 2015 2014 Deferred tax assets: Nonaccrual loan interest $ 34,104 $ 0 Deferred gain on covered transaction 24,154 0 Alternative minimum tax 564,920 231,038 Foreclosed assets expenses 6,205 1,628 Intangible asset amortization 298,699 298,699 Bad debt expense in excess of tax 1,030,959 1,058,809 Realized loss on other-than-temporarily impaired equity securities 214,353 227,586 Nonqualified retirement plan 0 (7,229 ) Pension plan 838,137 487,245 Total deferred tax assets 3,011,531 2,297,776 Deferred tax liabilities: Accretion on bonds and gain on discounted bonds 59,005 36,138 Book and tax depreciation difference 262,312 329,577 Unrealized gain on securities available for sale 243,979 198,156 Total deferred tax liabilities 565,296 563,871 Net deferred tax assets $ 2,446,235 $ 1,733,905 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS The ESOP held 300,809 shares of the Corporations stock as of December 31, 2015, of which 24,597 shares have been pledged. In the normal course of business, the Bank has made loans at prevailing interest rates and terms to directors and executive officers of the Corporation and its subsidiaries, and to their affiliates. The aggregate indebtedness to the Bank of these related parties approximated $1,209,000 and $1,411,000 at December 31, 2015 and 2014, respectively. During 2015, approximately $1,952,000 of such loans were made, and repayments totaled approximately $1,866,000. None of these above mentioned loans were restructured, nor were any related party loans charged off during 2015 or 2014. Also, during 2015 and 2014, directors and executive officers had approximately $2,586,000 and $3,394,000, respectively, in deposits with the Bank. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk | 12. COMMITMENTS, CONTINGENT LIABILITIES, AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK In the normal course of business, various claims and lawsuits may arise against the Corporation. Management, after reviewing with counsel all actions and proceedings, considers that the aggregate liability or loss, if any, will not be material. The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own risk exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit in the form of loans or through letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract or notional amounts of the instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. Commitments to extend credit are contractual obligations to lend to a customer as long as all established contractual conditions are satisfied. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by a customer. Standby letters of credit and financial guarantees are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. Standby letters of credit and financial guarantees are generally terminated through the performance of a specified condition or through the lapse of time. The Corporations exposure to credit loss in the event of nonperformance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual or notional amounts of these instruments. As these off-balance sheet financial instruments have essentially the same credit risk involved in extending loans, the Corporation generally uses the same credit and collateral policies in making these commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the commitments to extend credit and standby letters of credit are expected to expire without being drawn upon, the contractual or notional amounts do not represent future cash requirements. The contractual or notional amounts of financial instruments having credit risk in excess of that reported in the Consolidated Balance Sheets are as follows: Dec. 31, 2015 Dec. 31, 2014 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 24,780,028 $ 17,134,310 Standby letters of credit and financial guarantees $ 960,000 $ 975,000 The Corporations operating leases are comprised of purchase obligations for data processing services and a rental agreement for our loan production office in Tifton, Georgia. We have no capital lease obligations. The following table shows scheduled future cash payments under those obligations as of December 31, 2015. Payments Due by Period Total Less than 1 Year 1-3 Years 4-5 Years After 5 Years Operating leases $ 42,627 $ 22,035 $ 10,296 $ 10,296 $ 0 Rental expenses were $1,300, $0, and $21,600 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | 13. FAIR VALUE MEASUREMENTS AND DISCLOSURES Effective January 1, 2008, the Corporation adopted ASC Topic 820, Fair Value Measurements and Disclosures, which provides a framework for measuring fair value under GAAP. ASC Topic 820 applies to all financial statement elements that are being measured and reported on a fair value basis. The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. From time to time, the Corporation may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and foreclosed real estate. Additionally, the Corporation is required to disclose, but not record, the fair value of other financial instruments. Fair Value Hierarchy: Under ASC Topic 820, the Corporation groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities which are either recorded or disclosed at fair value. Cash and Cash Equivalents: For disclosure purposes for cash, due from banks, federal funds sold and certificates of deposit in other banks, the carrying amount is a reasonable estimate of fair value. Investment Securities Available for Sale: Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the securitys credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. Investment Securities Held to Maturity: Investment securities held to maturity are not recorded at fair value on a recurring basis. For disclosure purposes, fair value measurement is based upon quoted prices, if available. Federal Home Loan Bank Stock: For disclosure purposes, the carrying value of other investments approximate fair value. Loans: The Corporation does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific allocation is established within the allowance for loan losses. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310, Accounting by Creditors for Impairment of a Loan For disclosure purposes, the fair value of fixed rate loans which are not considered impaired, is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For unimpaired variable rate loans, the carrying amount is a reasonable estimate of fair value for disclosure purposes. Foreclosed Assets: Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate. Subsequently, other real estate assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or managements estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Corporation records the other real estate as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Corporation records the other real estate asset as nonrecurring Level 3. Deposits: For disclosure purposes, the fair value of demand deposits, savings accounts, NOW accounts and money market deposits is the amount payable on demand at the reporting date, while the fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using current rates at which comparable certificates would be issued. Federal Funds Purchased: For disclosure purposes, the carrying amount for Federal funds purchased is a reasonable estimate of fair value due to the short-term nature of these financial instruments. FHLB Advances: For disclosure purposes, the fair value of the FHLB fixed rate borrowing is estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Assets Recorded at Fair Value on a Recurring Basis: The table below presents the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2015 and 2014. December 31, 2015 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government agency securities $ 0 $ 42,642,322 $ 0 $ 42,642,322 State and municipal securities 0 2,607,684 0 2,607,684 Residential mortgage-backed securities 0 3,741,445 0 3,741,445 Corporate notes 0 2,472,960 0 2,472,960 Equity securities 0 12,000 0 12,000 Total $ 0 $ 51,476,411 $ 0 $ 51,476,411 December 31, 2014 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government agency securities $ 0 $ 45,492,925 $ 0 $ 45,492,925 State and municipal securities 0 874,667 0 874,667 Residential mortgage-backed securities 0 4,971,644 0 4,971,644 Corporate notes 0 2,498,720 0 2,498,720 Total $ 0 $ 53,837,956 $ 0 $ 53,837,956 Assets Recorded at Fair Value on a Nonrecurring Basis: The Corporation may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2015 and 2014. December 31, 2015 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 81,750 $ 81,750 Impaired loans 0 0 5,254,501 5,254,501 Total assets at fair value $ 0 $ 0 $ 5,336,251 $ 5,336,251 December 31, 2014 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 273,653 $ 273,653 Impaired loans 0 0 3,648,143 3,648,143 Total assets at fair value $ 0 $ 0 $ 3,921,796 $ 3,921,796 Foreclosed properties that are included above as measured at fair value on a nonrecurring basis are those properties that resulted from a loan that had been foreclosed and charged down or have been written down subsequent to foreclosure. Foreclosed properties are generally recorded at the appraised value less estimated selling costs in the range of 15 20%. Loans that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have been either partially charged off or have specific reserves assigned to them. Nonaccrual impaired loans that are collateral dependent are generally written down to a range of 80 85% of appraised value which considers the estimated costs to sell. Specific reserves are established for impaired loans based on appraised value of collateral or discounted cash flows. The carrying amount and estimated fair values of the Corporations assets and liabilities which are required to be either disclosed or recorded at fair value at December 31, 2015 and 2014, are as follows: Estimated Fair Value December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 31,080 $ 31,080 $ 0 $ 0 $ 31,080 Certificates of deposit in other banks 245 245 0 0 245 Investment securities available for sale 51,476 0 51,476 0 51,476 Investment securities held to maturity 60,889 0 62,199 0 62,199 Federal Home Loan Bank stock 1,869 0 1,869 0 1,869 Loans, net 247,754 0 243,460 5,255 248,715 Liabilities: Deposits 339,016 0 339,337 0 339,337 Federal Home Loan Bank advances 36,067 0 35,964 0 35,964 Estimated Fair Value December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 12,559 $ 12,559 $ 0 $ 0 $ 12,559 Certificates of deposit in other banks 1,470 1,470 0 0 1,470 Investment securities available for sale 53,838 0 53,838 0 53,838 Investment securities held to maturity 61,588 0 62,841 0 62,841 Federal Home Loan Bank stock 1,560 0 1,560 0 1,560 Loans, net 221,286 0 217,651 3,648 221,299 Liabilities: Deposits 309,974 0 310,234 0 310,234 Federal Home Loan Bank advances 27,200 0 27,621 0 27,621 Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement element. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates included herein are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the fair value of assets and liabilities that are not required to be recorded or disclosed at fair value like premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Supplemental Financial Data
Supplemental Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Income Statement Elements [Abstract] | |
Supplemental Financial Data | 14. SUPPLEMENTAL FINANCIAL DATA Components of other income and other operating expense in excess of one percent of gross revenue for the respective periods are as follows: Years Ended December 31 2015 2014 2013 Income: Bank card interchange fees $ 487,933 $ 466,455 $ 428,178 Expense: Other professional fees $ 230,920 $ 232,159 $ 189,252 Director & board committee fees $ 336,458 $ 349,597 $ 274,881 FDIC insurance assessment $ 240,223 $ 234,555 $ 257,036 Administrative expense employee benefit plans $ 224,021 $ 207,299 $ 172,354 |
Stockholders' Equity _ Regulato
Stockholders' Equity / Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Regulatory Matters | |
Stockholders' Equity / Regulatory Matters | 15. STOCKHOLDERS EQUITY / REGULATORY MATTERS Dividends paid by the Bank subsidiary are the primary source of funds available to the parent company for payment of dividends to its stockholders and other needs. Banking regulations limit the amount of dividends that may be paid without prior approval of the Banks regulatory agency. At December 31, 2015, approximately $1,707,807 of the Banks net assets were available for payment of dividends without prior approval from the regulatory authorities. The Federal Reserve Board requires that banks maintain reserves based on their average deposits in the form of vault cash and average deposit balances at the Federal Reserve Banks. For the year ended December 31, 2015, the Bank had a total reserve requirement of $2,758,000, but the Bank had sufficient vault cash to cover any required reserve balance at the Federal Reserve Bank. The Corporation (on a consolidated basis) 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 possibly additional discretionary actions by such agencies that, if undertaken, could have a direct material effect on the Corporations and Banks financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital to average assets (as defined). As of December 31, 2015 and 2014, the Corporation and the Bank meets all capital adequacy requirements to which they are subject. As of December 31, 2015, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum Total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Banks category. The Corporations and the Banks actual capital amounts and ratios as of December 31, 2015 and 2014, are also presented in the table. As a result of regulatory limitations at December 31, 2015, approximately $31,438,937 of the parent companys investments in net assets of the subsidiary bank of $33,146,744, as shown in the accompanying condensed balance sheets in Note 16, was restricted from transfer by the subsidiary bank to the parent company in the form of cash dividends. The Corporations and the Banks ratios under the above rules at December 31, 2015 and 2014, are set forth in the following tables. The Corporations leverage ratio at December 31, 2015, was 9.13%. As of December 31, 2015 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Common equity Tier 1 (to risk- weighted assets) $37,230,740 14.07% $11,907,692 > $17,199,999 > Total capital (to risk- weighted assets) $40,262,982 15.22% $21,169,230 > $26,461,534 > Tier I capital (to risk- weighted assets) $37,230,740 14.07% $15,876,922 > $21,169,230 > Leverage (tier I capital to average assets) $37,230,740 9.13% $16,316,153 > $20,395,191 > Southwest Georgia Bank Common equity Tier 1 (to risk- weighted assets) $34,279,795 12.99% $11,874,310 > $17,151,781 > Total capital (to risk- weighted assets) $37,312,037 14.14% $21,109,884 > $26,387,355 > Tier I capital (to risk- weighted assets) $34,279,795 12.99% $15,832,413 > $21,109,884 > Leverage (tier I capital to average assets) $34,279,795 8.43% $16,274,473 > $20,343,091 > As of December 31, 2014 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Total capital (to risk- weighted assets) $37,845,154 15.70% $19,288,109 > $24,110,136 > Tier I capital (to risk- weighted assets) $34,830,148 14.45% $ 9,644,054 > $14,466,082 > Leverage (tier I capital to average assets) $34,830,148 9.14% $15,246,906 > $19,058,633 > Southwest Georgia Bank Total capital (to risk- weighted assets) $36,510,112 15.18% $19,236,387 > $24,045,483 > Tier I capital (to risk- weighted assets) $33,503,088 13.93% $ 9,618,193 > $14,427,290 > Leverage (tier I capital to average assets) $33,503,088 8.81% $15,211,031 > $19,013,789 > |
Parent Company Financial Data
Parent Company Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Data | 16. PARENT COMPANY FINANCIAL DATA Southwest Georgia Financial Corporations condensed balance sheets as of December 31, 2015 and 2014, and its related condensed statements of operations and cash flows for the years ended are as follows: Condensed Balance Sheets as of December 31, 2015 and 2014 (Dollars in thousands) 2015 2014 ASSETS Cash $ 1,919 $ 676 Investment in consolidated wholly-owned bank subsidiary, at equity 33,147 33,008 Loans 363 16 Other assets 669 635 Total assets $ 36,098 $ 34,335 LIABILITIES AND STOCKHOLDERS EQUITY Total liabilities $ 0 $ 0 Stockholders equity: Common stock, $1 par value, 5,000,000 shares authorized, 4,293,835 shares for 2015 and 2014 issued 4,294 4,294 Additional paid-in capital 31,701 31,701 Retained earnings 27,370 25,015 Accumulated other comprehensive loss (1,153 ) (561 ) Treasury stock, at cost, 1,745,998 for 2015 and 2014 (26,114 ) (26,114 ) Total stockholders equity 36,098 34,335 Total liabilities and stockholders equity $ 36,098 $ 34,335 Condensed Statements of Income and Expense for the years ended December 31, 2015, 2014, and 2013 (Dollars in thousands) 2015 2014 2013 Income: Dividend received from bank subsidiary $ 2,685 $ 1,000 $ 667 Interest income 12 10 5 Total income 2,697 1,010 672 Expenses: Other 141 166 144 Income before income taxes and equity in Undistributed income of bank subsidiary 2,556 844 528 Income tax benefit allocated from consolidated return (87 ) (88 ) (66 ) Income before equity in undistributed income of subsidiary 2,643 932 594 Equity in undistributed income of subsidiary 731 1,972 2,178 Net income 3,374 2,904 2,772 Retained earnings beginning of year 25,015 22,926 20,664 Cash dividend declared (1,019 ) (815 ) (510 ) Retained earnings end of year $ 27,370 $ 25,015 $ 22,926 Condensed Statements of Cash Flows for the years ended December 31, 2015, 2014, and 2013 (Dollars in thousands) 2015 2014 2013 Cash flow from operating activities: Net income $ 3,374 $ 2,904 $ 2,772 Adjustments to reconcile net income to net cash used by operating activities: Equity in undistributed earnings of Subsidiary (731 ) (1,972 ) (2,178 ) Changes in: Other assets (34 ) (68 ) (43 ) Net cash provided for operating activities 2,609 864 551 Cash flow from investing activities: Net change in loans (347 ) 4 40 Net cash provided (used) for investing activities (347 ) 4 40 Cash flow from financing activities: Cash dividend paid to stockholders (1,019 ) (815 ) (510 ) Net cash used for financing activities (1,019 ) (815 ) (510 ) Increase in cash 1,243 53 81 Cash beginning of year 676 623 542 Cash end of year $ 1,919 $ 676 $ 623 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. EARNINGS PER SHARE Earnings per share are based on the weighted average number of common shares outstanding during the year. Year Ended December 31, 2015 Income Weighted Average Shares Per Share Amount Basic earnings per share: Net income $ 3,373,635 2,547,837 $ 1.32 Diluted earnings per share: Net income $ 3,373,635 2,547,837 $ 1.32 Year Ended December 31, 2014 Income Weighted Average Shares Per Share Amount Basic earnings per share: Net income $ 2,903,830 2,547,837 $ 1.14 Diluted earnings per share: Net income $ 2,903,830 2,547,837 $ 1.14 Year Ended December 31, 2013 Income Weighted Average Shares Per Share Amount Basic earnings per share: Net income $ 2,772,334 2,547,837 $ 1.09 Diluted earnings per share: Net income $ 2,772,334 2,547,837 $ 1.09 |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | 18. QUARTERLY DATA SOUTHWEST GEORGIA FINANCIAL CORPORATION QUARTERLY DATA (UNAUDITED) (Dollars in thousands) For the Year 2015 Fourth Third Second First Interest and dividend income $ 3,946 $ 3,889 $ 3,898 $ 3,695 Interest expense 353 325 324 315 Net interest income 3,593 3,564 3,574 3,380 Provision for loan losses 0 51 45 45 Net interest income after provision for loan losses 3,593 3,513 3,529 3,335 Noninterest income 1,046 1,008 1,045 1,161 Noninterest expenses 3,590 3,459 3,493 3,487 Income before income taxes 1,049 1,062 1,081 1,009 Provision for income taxes 206 205 216 200 Net income $ 843 $ 857 $ 865 $ 809 Earnings per share of common stock: Basic $ .33 $ .33 $ .34 $ .32 Diluted $ .33 $ .33 $ .34 $ .32 For the Year 2014 Fourth Third Second First Interest and dividend income $ 3,710 $ 3,722 $ 3,726 $ 3,554 Interest expense 314 306 334 401 Net interest income 3,396 3,416 3,392 3,153 Provision for loan losses 75 75 75 105 Net interest income after provision for loan losses 3,321 3,341 3,317 3,048 Noninterest income 1,115 1,283 1,246 1,342 Noninterest expenses 3,625 3,612 3,630 3,503 Income before income taxes 811 1,012 933 887 Provision for income taxes 149 208 196 186 Net income $ 662 $ 804 $ 737 $ 701 Earnings per share of common stock: Basic $ .26 $ .32 $ .28 $ .28 Diluted $ .26 $ .32 $ .28 $ .28 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 19. SEGMENT REPORTING The Corporation operations are divided into four reportable business segments: The Retail and Commercial Banking Services, Insurance Services, Wealth Strategies Services, and Financial Management Services. These operating segments have been identified primarily based on the Corporations organizational structure. The Retail and Commercial Banking Services segment serves consumer and commercial customers by offering a variety of loan and deposit products, and other traditional banking services. The Insurance Services segment offers clients a full spectrum of commercial and personal lines insurance products including life, health, property, and casualty insurance. The Wealth Strategies Services segment provides personal trust administration, estate settlement, investment management, employee retirement benefit services, and the Individual Retirement Account (IRA) administration. Also, this segment offers full-service retail brokerage which includes the sale of retail investment products including stocks, bonds, mutual funds, and annuities. The Financial Management Services segment is responsible for the management of the investment securities portfolio. It also is responsible for managing financial risks, including liquidity and interest rate risk. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Corporation evaluates performance based on profit or loss from operations after income taxes not including nonrecurring gains or losses. The Corporations reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technology and marketing strategies. The Corporation allocates capital and funds used or funds provided for each reportable business segment. Also, each segment is credited or charged for the cost of funds provided or used. These credits and charges are reflected as net intersegment interest income (expense) in the table below. The Corporation does allocate income taxes to the segments. Other revenue represents noninterest income, exclusive of the net gain (loss) on disposition of assets and expenses associated with administrative activities which are not allocated to the segments. Those expenses include audit, compliance, investor relations, marketing, personnel, and other executive or parent company expenditures. The Corporation does not have operating segments other than those reported. Parent Company and the Administrative Offices financial information is included in the Other category, and is deemed to represent an overhead function rather than an operating segment. The Administrative Offices include audit, marketing, information technology, personnel, and the executive office. The Corporation does not have a single external customer from which it derives 10% or more of its revenue and operates in one geographical area. Information about reportable business segments, and reconciliation of such information to the consolidated financial statements for the years ended December 31, 2015, 2014, and 2013, are as follows: Segment Reporting For the year ended December 31, 2015 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals (Dollars in thousands) Net Interest Income (expense) external customers $ 11,888 0 0 2,212 0 12 $ 14,112 Net intersegment interest income (expense) 1,901 6 (5 ) (1,902 ) 0 0 0 Net Interest Income 13,789 6 (5 ) 310 0 12 14,112 Provision for Loan Losses 141 0 0 0 0 0 141 Noninterest Income (expense) external customers 2,110 1,371 700 78 0 1 4,260 Intersegment noninterest income (expense) (6 ) 6 35 0 (35 ) 0 0 Total Noninterest Income 2,104 1,377 735 78 (35 ) 1 4,260 Noninterest Expenses: Depreciation 767 31 23 66 0 75 962 Amortization of intangibles 0 16 0 0 0 0 16 Other Noninterest expenses 8,492 1,203 717 687 0 1,953 13,052 Total Noninterest expenses 9,259 1,250 740 753 0 2,028 14,030 Pre-tax Income 6,493 133 (10 ) (365 ) (35 ) (2,015 ) 4,201 Provision for Income Taxes 1,390 28 (10 ) (81 ) 0 (500 ) 827 Net Income $ 5,103 105 0 (284 ) (35 ) (1,515 ) $ 3,374 Assets $ 453,406 1,287 175 149,830 (190,875 ) 1,032 $ 414,855 Expenditures for Fixed Assets $ 353 14 0 4 0 0 $ 371 Amounts included in the "Other" column are as follows: Other Net interest Income: Parent Company $ 12 Noninterest Income: Executive office miscellaneous income 1 Noninterest Expenses: Parent Company corporate expenses 141 Executive office expenses not allocated to segments 1,887 Provison for Income taxes: Parent Company income taxes (benefit) (87 ) Executive office income taxes not allocated to segments (413 ) Net Income: $ (1,515 ) Segment assets: Parent Company assets, after intercompany elimination $ 1,032 Segment Reporting For the year ended December 31, 2014 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals (Dollars in thousands) Net Interest Income (expense) external customers $ 11,376 0 0 1,972 0 9 $ 13,357 Net intersegment interest income (expense) 1,662 4 (5 ) (1,661 ) 0 0 0 Net Interest Income 13,038 4 (5 ) 311 0 9 13,357 Provision for Loan Losses 330 0 0 0 0 0 330 Noninterest Income (expense) external customers 2,782 1,316 651 234 0 3 4,986 Intersegment noninterest income (expense) (4 ) 4 35 0 (35 ) 0 0 Total Noninterest Income 2,778 1,320 686 234 (35 ) 3 4,986 Noninterest Expenses: Depreciation 698 31 21 66 0 75 891 Amortization of intangibles 28 16 1 0 0 0 45 Other Noninterest expenses 8,854 1,231 666 656 0 2,027 13,434 Total Noninterest expenses 9,580 1,278 688 722 0 2,102 14,370 Pre-tax Income 5,906 46 (7 ) (177 ) (35 ) (2,090 ) 3,643 Provision for Income Taxes 1,304 10 (10 ) (40 ) 0 (525 ) 739 Net Income $ 4,602 36 3 (137 ) (35 ) (1,565 ) $ 2,904 Assets $ 404,679 1,411 219 139,175 (171,855 ) 651 $ 374,280 Expenditures for Fixed Assets $ 2,162 28 1 121 0 0 $ 2,312 Amounts included in the "Other" column are as follows: Other Net interest Income: Parent Company $ 9 Noninterest Income: Executive office miscellaneous income 3 Noninterest Expenses: Parent Company corporate expenses 166 Executive office expenses not allocated to segments 1,936 Provison for Income taxes: Parent Company income taxes (benefit) (88 ) Executive office income taxes not allocated to segments (437 ) Net Income: $ (1,565 ) Segment assets: Parent Company assets, after intercompany elimination $ 651 Segment Reporting For the year ended December 31, 2013 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals (Dollars in thousands) Net Interest Income (expense) external customers $ 11,332 0 0 1,475 0 5 $ 12,812 Net intersegment interest income (expense) 1,196 3 (4 ) (1,195 ) 0 0 0 Net Interest Income 12,528 3 (4 ) 280 0 5 12,812 Provision for Loan Losses 420 0 0 0 0 0 420 Noninterest Income (expense) external customers 2,736 1,319 601 388 0 47 5,091 Intersegment noninterest income (expense) (3 ) 3 13 0 (13 ) 0 0 Total Noninterest Income 2,733 1,322 614 388 (13 ) 47 5,091 Noninterest Expenses: Depreciation 674 30 24 57 0 113 898 Amortization of intangibles 182 16 18 0 0 0 216 Other Noninterest expenses 8,800 1,158 648 600 0 2,026 13,232 Total Noninterest expenses 9,656 1,204 690 657 0 2,139 14,346 Pre-tax Income 5,185 121 (80 ) 11 (13 ) (2,087 ) 3,137 Provision for Income Taxes 592 17 104 1 0 (349 ) 365 Net Income $ 4,593 104 (184 ) 10 (13 ) (1,738 ) $ 2,772 Assets $ 394,034 1,256 262 140,877 (163,121 ) 587 $ 373,895 Expenditures for Fixed Assets $ 1,058 34 5 9 0 0 $ 1,106 Amounts included in the "Other" column are as follows: Other Net interest Income: Parent Company $ 5 Noninterest Income: Executive office miscellaneous income 17 Noninterest Expenses: Parent Company corporate expenses 144 Executive office expenses not allocated to segments 1,995 Provison for Income taxes: Parent Company income taxes (benefit) (66 ) Executive office income taxes not allocated to segments (283 ) Net Income: $ (1,768 ) Segment assets: Parent Company assets, after intercompany elimination $ 587 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. SUBSEQUENT EVENTS The Corporation performed an evaluation of subsequent events through March 18, 2016, the date upon which the Corporations financial statements were available for issue. The Corporation has not evaluated subsequent events after this date. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Southwest Georgia Financial Corporation and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. |
Nature of Operations | Nature of Operations The Corporation offers comprehensive financial services to consumer, business, and governmental customers through its banking offices in southwest Georgia. Its primary deposit products are money market, NOW, savings and certificates of deposit, and its primary lending products are consumer and commercial mortgage loans. The Corporation provides, in addition to conventional banking services, investment planning and management, trust management, mortgage banking, and commercial and individual insurance products. Insurance products and advice are provided by the Southwest Georgia Banks Southwest Georgia Insurance Services Division. The Corporations primary business is providing banking services through the Southwest Georgia Bank (the Bank) to individuals and businesses principally in the counties of Colquitt, Baker, Worth, Lowndes and the surrounding counties of southwest Georgia. We have two full-service banking centers and a mortgage origination office in Valdosta, Georgia. A new commercial banking center in Valdosta, Georgia was completed and opened in August of 2014. We have expanded our geographical footprint in to neighboring Tift County, Georgia, with a loan production office that opened for business in January 2016. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains independent appraisals for significant properties. A substantial portion of the Corporations loans are secured by real estate located primarily in Georgia. Accordingly, the ultimate collection of these loans is susceptible to changes in the real estate market conditions of this market area. |
Cash and Cash Equivalents and Statement of Cash Flows | Cash and Cash Equivalents and Statement of Cash Flows For purposes of reporting cash flows, the Corporation considers cash and cash equivalents to include all cash on hand, deposit amounts due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation maintains its cash balances in several financial institutions. Accounts at the financial institutions are secured by the Federal Deposit Insurance Corporation (the FDIC) up to $250,000. There were uninsured deposits of $5,619,847 at December 31, 2015. |
Investment Securities | Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as available for sale and recorded at fair value with unrealized gains and losses reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation has been calculated primarily using the straight-line method for buildings and building improvements over the assets estimated useful lives. Equipment and furniture are depreciated using the modified accelerated recovery system method over the assets estimated useful lives for financial reporting and income tax purposes for assets purchased on or before December 31, 2003. For assets acquired after 2003, the Corporation used the straight-line method of depreciation. The following estimated useful lives are used for financial statement purposes: Land improvements 5 31 years Building and improvements 10 40 years Machinery and equipment 5 10 years Computer equipment 3 5 years Office furniture and fixtures 5 10 years All of the Corporations leases are operating leases and are not capitalized as assets for financial reporting purposes. Maintenance and repairs are charged to expense and betterments are capitalized. Long-lived assets are evaluated regularly for other-than-temporary impairment. If circumstances suggest that their value may be impaired and the write-down would be material, an assessment of recoverability is performed prior to any write-down of the asset. Impairment on intangibles is evaluated at each balance sheet date or whenever events or changes in circumstances indicate that the carrying amount should be assessed. Impairment, if any, is recognized through a valuation allowance with a corresponding charge recorded in the income statement. |
Loans and Allowances for Loan Losses | Loans and Allowances for Loan Losses Loans are stated at principal amounts outstanding less unearned income and the allowance for loan losses. Interest income is credited to income based on the principal amount outstanding at the respective rate of interest except for interest on certain installment loans made on a discount basis which is recognized in a manner that results in a level-yield on the principal outstanding. Accrual of interest income is discontinued on loans when, in the opinion of management, collection of such interest income becomes doubtful. Accrual of interest on such loans is resumed when, in managements judgment, the collection of interest and principal becomes probable. Fees on loans and costs incurred in origination of most loans are recognized at the time the loan is placed on the books. Because loan fees are not significant, the results on operations are not materially different from the results which would be obtained by accounting for loan fees and costs as amortized over the term of the loan as an adjustment of the yield. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowers prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loans effective interest rate, the loans obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collection of the principal is unlikely. The allowance is an amount which management believes will be adequate to absorb estimated losses on existing loans that may become uncollectible based on evaluation of the collectability of loans and prior loss experience. This evaluation takes into consideration such factors as changes in the nature and volume of the loan portfolios, current economic conditions that may affect the borrowers ability to pay, overall portfolio quality, and review of specific problem loans. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based upon changes in economic conditions. Also, various regulatory agencies, as an integral part of their examination process, periodically review the Corporations allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments of information available to them at the time of their examination. |
Foreclosed Assets | Foreclosed Assets In accordance with policy guidelines and regulations, properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. A valuation allowance is established to record market value changes in foreclosed assets. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. There was no allowance for foreclosed asset losses at December 31, 2015. |
Intangible Assets | Intangible Assets Intangible assets are amortized over a determined useful life using the straight-line basis. These assets are evaluated annually as to the recoverability of the carrying value. The remaining intangibles have a remaining life of less than four years. |
Credit Related Financial Instruments | Credit Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Retirement Plans | Retirement Plans The Corporation and its direct and indirect subsidiaries have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts not exceeding the regulatory requirements. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Corporations subsidiary bank has bank owned life insurance policies on a group of employees. Banking laws and regulations allow the Bank to purchase life insurance policies on certain employees in order to help offset the Banks overall employee compensation costs. The beneficial aspects of these life insurance policies are tax-free earnings and a tax free death benefit, which are realized by the Bank as the owner of the policies. The cash surrender value of these policies is included as an asset on the balance sheet, and any increases in cash surrender value are recorded as noninterest income on the statement of income. At December 31, 2015 and 2014, the policies had a value of $5,231,393 and $5,104,173, respectively, and were 14.5% and 14.9%, respectively, of stockholders equity. These values are within regulatory guidelines. |
Income Taxes | Income Taxes The Corporation and its direct and indirect subsidiaries file a consolidated income tax return. Each subsidiary computes its income tax expense as if it filed an individual return except that it does not receive any portion of the surtax allocation. Any benefits or disadvantages of the consolidation are absorbed by the parent company. Each subsidiary pays its allocation of federal income taxes to the parent company or receives payment from the parent company to the extent that tax benefits are realized. The Corporation reports income under the Financial Accounting Standards Board The Corporation will recognize a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with an examination being presumed to occur. The amount recognized is the largest amount of a tax benefit that is greater than fifty percent likely of being realized on examination. No benefit is recorded for tax positions that do not meet the more than likely than not test. The Corporation recognizes penalties related to income tax matters in income tax expense. The Corporation is subject to U.S. federal and Georgia state income tax audit for returns for the tax period ending December 31, 2013 and subsequent years. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes all changes in stockholders equity during a period, except those resulting from transactions with stockholders. Besides net income, other components of the Corporations accumulated other comprehensive income (loss) includes the after tax effect of changes in the net unrealized gain/loss on securities available for sale and the unrealized gain/loss on pension plan benefits. |
Trust Department | Trust Department Trust income is included in the accompanying consolidated financial statements on the cash basis in accordance with established industry practices. Reporting of such fees on the accrual basis would have no material effect on reported income. |
Advertising Costs | Advertising Costs It is the policy of the Corporation to expense advertising costs as they are incurred. The Corporation does not engage in any direct-response advertising and accordingly has no advertising costs reported as assets on its balance sheet. Costs that were expensed during 2015, 2014, and 2013 were $153,423, $161,994, and $180,505, respectively. |
Regulatory Developments | Regulatory Developments The Corporation and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation and the Banks financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the federal banking agencies about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum Tier 1 leverage, Tier 1 risk-based capital and Total risk-based capital ratios. In July 2013, the Board of Governors of the Federal Reserve System published the Basel III Capital Rules establishing a new comprehensive capital framework applicable to all depository institutions, bank holding companies with total consolidated assets of $500 million or more and all and savings and loan holding companies except for those that are substantially engaged in insurance underwriting or commercial activities. These rules implement higher minimum capital requirements for banks and certain bank holding companies, include a new common equity Tier 1 capital requirement and establish criteria that instruments must meet to be considered common equity Tier 1 capital, additional Tier 1 capital or Tier 2 capital. As of December 31, 2015, the Corporation met the definition under the Basel III Capital Rules of a small bank holding company and, therefore, was exempt from consolidated risk-based and leverage capital adequacy guidelines for bank holding companies. The minimum capital level requirements applicable to the Bank under the Basel III Capital Rules are: (i) a common equity Tier 1 risk-based capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a Total risk-based capital ratio of 8% (unchanged from the rules effective for the year ended December 31, 2014); and (iv) a Tier 1 leverage ratio of 4% for all institutions. Common equity Tier 1 capital will consist of retained earnings and common stock instruments, subject to certain adjustments. The Bank became subject to these new minimum capital level requirements as of January 1, 2015. The Basel III Capital Rules set forth changes in the methods of calculating certain risk-weighted assets, which in turn affect the calculation of risk-based ratios. The new risk weightings are more punitive for assets held by banks that are deemed to be of higher risk. These changes were also effective beginning January 1, 2015. The Basel III Capital Rules also introduce a capital conservation buffer, which is in addition to each capital ratio and is phased-in over a three-year period beginning in January 2016. As of December 31, 2015, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since December 31, 2015, that management believes has changed the Banks status as well-capitalized. The capital ratios of the Corporation and Bank are presented in Footnote 15. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans, Defined Contribution Pension Plans, and Health and Welfare Benefit Plans. In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements Technical Corrections and Improvements In May 2015, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). In April 2015, the FASB issued ASU 2015-04, Compensation (Topic 715): Practical Expedient for the Measurement Date of an Employers Defined Benefit Obligation and Plan Assets In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In January 2015, the FASB issued ASU 2015-01 Income Statement Extraordinary and Unusual Items (Subtopic 225-20) |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Premises and Equipment | The following estimated useful lives are used for financial statement purposes: Land improvements 5 31 years Building and improvements 10 40 years Machinery and equipment 5 10 years Computer equipment 3 5 years Office furniture and fixtures 5 10 years |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Investments [Abstract] | |
Schedule of Securities Available for Sale Securities | Securities Available For Sale: December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government agency securities $ 42,074,712 $ 782,567 $ 214,957 $ 42,642,322 State and municipal securities 2,573,844 33,840 0 2,607,684 Residential mortgage-backed securities 3,601,949 140,934 1,438 3,741,445 Corporate notes 2,496,320 0 23,360 2,472,960 Total debt securities AFS 50,746,825 957,341 239,755 51,464,411 Equity securities 12,000 0 0 12,000 Total securities AFS $ 50,758,825 $ 957,341 $ 239,755 $ 51,476,411 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government agency securities $ 45,121,060 $ 758,874 $ 387,009 $ 45,492,925 State and municipal securities 880,580 0 5,913 874,667 Residential mortgage-backed securities 4,757,738 215,276 1,370 4,971,644 Corporate notes 2,495,765 4,255 1,300 2,498,720 Total securities AFS $ 53,255,143 $ 978,405 $ 395,592 $ 53,837,956 |
Schedule of Securities Held to Maturity | Securities Held to Maturity December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 54,775,093 $ 1,124,007 $ 41,153 $ 55,857,947 Residential mortgage-backed securities 6,113,711 227,041 0 6,340,752 Total securities HTM $ 60,888,804 $ 1,351,048 $ 41,153 $ 62,198,699 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 53,058,749 $ 958,434 $ 87,772 $ 53,929,411 Residential mortgage-backed securities 8,529,070 382,923 0 8,911,993 Total securities HTM $ 61,587,819 $ 1,341,357 $ 87,772 $ 62,841,404 |
Summary of Amortized Cost and Estimated Fair Value of Securities | The amortized cost and estimated fair value of securities at December 31, 2015 and 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. December 31, 2015 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 22,374,572 22,310,228 After five through ten years 22,553,504 23,222,962 After ten years 5,818,749 5,931,221 Total debt securities AFS 50,746,825 51,464,411 Equity securities 12,000 12,000 Total securities AFS $ 50,758,825 $ 51,476,411 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 3,956,629 $ 3,968,196 After one through five years 27,302,169 27,617,796 After five through ten years 21,412,080 22,253,863 After ten years 8,217,926 8,358,844 Total securities HTM $ 60,888,804 $ 62,198,699 December 31, 2014 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 18,453,816 18,260,779 After five through ten years 29,521,793 30,216,568 After ten years 5,279,534 5,360,609 Total securities AFS $ 53,255,143 $ 53,837,956 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 3,160,887 $ 3,196,256 After one through five years 28,494,335 28,780,760 After five through ten years 22,246,060 23,036,240 After ten years 7,686,537 7,828,148 Total securities HTM $ 61,587,819 $ 62,841,404 |
Schedule of Information Pertaining to Securities Gross Unrealized Losses by Investments | Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position, follows: December 31, 2015 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government agency securities $ 73,907 $ 11,885,323 $ 141,050 $ 5,858,950 State and municipal securities 0 0 0 0 Residential mortgage-backed securities 1,438 441,997 0 0 Corporate notes 22,360 1,973,960 1,000 499,000 Total debt securities available for sale $ 97,705 $ 14,301,280 $ 142,050 $ 6,357,950 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 26,435 $ 7,250,634 $ 14,718 $ 994,476 Residential mortgage-backed securities 0 0 0 0 Total securities held to maturity $ 26,435 $ 7,250,634 $ 14,718 $ 994,476 December 31, 2014 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government agency securities $ 17,172 $ 2,630,919 $ 369,837 $ 19,667,408 State and municipal securities 0 0 5,913 874,667 Residential mortgage-backed securities 1,300 498,700 0 0 Corporate notes 0 0 1,370 594,923 Total securities available for sale $ 18,472 $ 3,129,619 $ 377,120 $ 21,136,998 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 34,956 $ 9,199,455 $ 52,816 $ 4,130,041 Residential mortgage-backed securities 0 0 0 0 Total securities held to maturity $ 34,956 $ 9,199,455 $ 52,816 $ 4,130,041 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans | The composition of the Corporations loan portfolio at December 31, 2015 and 2014 was as follows: 2015 2014 Commercial, financial and agricultural loans $ 58,173,187 $ 47,861,368 Real estate Construction loans 19,831,070 12,257,185 Commercial mortgage loans 85,777,359 76,915,794 Residential loans 67,969,119 69,304,248 Agricultural loans 15,620,266 14,996,076 Consumer & other loans 3,434,380 3,091,067 Loans outstanding 250,805,381 224,425,738 Unearned interest and discount (19,046 ) (25,921 ) Allowance for loan losses (3,032,242 ) (3,114,151 ) Net loans $ 247,754,093 $ 221,285,666 |
Past Due Loans and Nonaccrual Loans | The following tables present an age analysis of past due loans and nonaccrual loans segregated by class of loans. Age Analysis of Past Due Loans As of December 31, 2015 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 449,618 $ 521 $ 450,139 $ 0 $ 57,723,048 $ 58,173,187 Real estate: Construction loans 121,694 0 121,694 0 19,709,376 19,831,070 Commercial mortgage loans 810,515 0 810,515 0 84,966,844 85,777,359 Residential loans 2,238,684 0 2,238,684 639,094 65,091,341 67,969,119 Agricultural loans 148,761 0 148,761 906,505 14,565,000 15,620,266 Consumer & other loans 84,342 0 84,342 0 3,350,038 3,434,380 Total loans $ 3,853,614 $ 521 $ 3,854,135 $ 1,545,599 $ 245,405,647 $ 250,805,381 Age Analysis of Past Due Loans As of December 31, 2014 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 518,578 $ 0 $ 518,578 $ 25,500 $ 47,317,290 $ 47,861,368 Real estate: Construction loans 233,734 0 233,734 0 12,023,451 12,257,185 Commercial mortgage loans 517,488 0 517,488 681,360 75,716,946 76,915,794 Residential loans 534,896 0 534,896 21,796 68,747,556 69,304,248 Agricultural loans 0 0 0 37,707 14,958,369 14,996,076 Consumer & other loans 70,142 0 70,142 19,209 3,001,716 3,091,067 Total loans $ 1,874,838 $ 0 $ 1,874,838 $ 785,572 $ 221,765,328 $ 224,425,738 |
Schedule of Impaired Loans Segregated by Class of Loans | The following tables present impaired loans, segregated by class of loans as of December 31, 2015 and 2014: Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2015 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Real estate: Construction loans 193,524 72,724 0 72,724 0 133,693 15,049 Commercial mortgage loans 3,256,589 496,159 2,760,430 3,256,589 212,283 2,096,082 89,947 Residential loans 1,988,434 662,523 1,304,999 1,967,522 91,831 3,832,546 107,070 Agricultural loans 257,211 257,211 0 257,211 0 422,099 25,823 Consumer & other loans 4,569 4,569 0 4,569 0 0 0 Total loans $ 5,700,327 $ 1,493,186 $ 4,065,429 $ 5,558,615 $ 304,114 $ 6,484,420 $ 237,889 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2014 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 202,323 $ 25,500 $ 176,823 $ 202,323 $ 99,067 $ 210,968 $ 12,192 Real estate: Construction loans 208,121 87,321 0 87,321 0 76,555 17,925 Commercial mortgage loans 1,170,496 0 1,170,496 1,170,496 240,899 1,309,828 49,522 Residential loans 2,336,711 568,909 1,746,890 2,315,799 129,060 2,232,148 110,730 Agricultural loans 323,808 148,090 175,718 323,808 9,788 425,865 59,802 Consumer & other loans 30,953 27,210 0 27,210 0 23,937 1,324 Total loans $ 4,272,412 $ 857,030 $ 3,269,927 $ 4,126,957 $ 478,814 $ 4,279,301 $ 251,495 |
Schedule of Troubled Debt Restructuring by Loan Class | The following tables present the amount of troubled debt restructuring by loan class, classified separately as accrual and nonaccrual at December 31, 2015 and 2014, as well as those currently paying under restructured terms and those that have defaulted under restructured terms as of December 31, 2015 and 2014. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 or more days past due. December 31, 2015 Under restructured terms Accruing Non-accruing # Current # Default Commercial, financial, and agricultural loans $ 0 $ 0 0 $ 0 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 2,280,466 0 1 2,280,466 0 0 Residential loans 5,376 0 1 5,376 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 4,569 0 1 4,569 0 0 Total TDRs $ 2,290,411 $ 0 3 $ 2,290,411 0 $ 0 December 31, 2014 Under restructured terms Accruing Non-accruing # Current # Default Commercial, financial, and agricultural loans $ 31,713 $ 0 1 $ 31,713 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 0 0 0 0 0 0 Agricultural loans 175,718 0 1 175,718 0 0 Consumer & other loans 8,001 0 1 868 3 7,133 Total TDRs $ 215,432 $ 0 3 $ 208,299 3 $ 7,133 |
Schedule of Troubled Debt Restructurings by Types of Concessions Made | The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and nonaccrual at December 31, 2015 and 2014. December 31, 2015 December 31, 2014 Accruing Nonaccruing Accruing Nonaccruing # Balance # Balance # Balance # Balance Type of concession: Payment modification 0 $ 0 0 $ 0 1 $ 175,718 0 $ 0 Rate reduction 0 0 0 0 0 0 0 0 Rate reduction, payment modification 3 2,290,411 0 0 4 8,001 0 0 Forbearance of interest 0 0 0 0 1 31,713 0 0 Total 3 $ 2,290,411 0 $ 0 6 $ 215,432 0 $ 0 |
Schedule of Internal Loan Grading By Class of Loans | The following tables present internal loan grading by class of loans at December 31, 2015 and 2014: December 31, 2015 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 731,270 $ 0 $ 0 $ 25,988 $ 0 $ 416,250 $ 1,173,508 Grade 2- Above Avg. 0 0 0 10,011 329,069 0 339,080 Grade 3- Acceptable 30,581,968 7,569,566 26,285,799 31,303,029 9,648,983 1,756,139 107,145,484 Grade 4- Fair 26,075,703 11,022,826 53,296,973 30,946,390 3,930,746 1,230,515 126,503,153 Grade 5a- Watch 217,295 1,097,222 4,791,317 1,263,077 638,402 5,999 8,013,312 Grade 5b- OAEM 560,678 0 523,596 1,233,611 0 13,802 2,331,687 Grade 6- Substandard 6,273 141,456 879,674 3,155,625 1,073,066 11,675 5,267,769 Grade 7- Doubtful 0 0 0 31,388 0 0 31,388 Total loans $ 58,173,187 $ 19,831,070 $ 85,777,359 $ 67,969,119 $ 15,620,266 $ 3,434,380 $ 250,805,381 December 31, 2014 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 926,512 $ 0 $ 0 $ 27,017 $ 0 $ 39,353 $ 992,882 Grade 2- Above Avg. 0 0 0 89,109 356,081 0 445,190 Grade 3- Acceptable 28,793,317 3,656,979 28,294,037 34,766,811 10,183,723 2,014,924 107,709,791 Grade 4- Fair 17,498,283 7,298,860 45,578,932 28,691,419 2,525,044 959,978 102,552,516 Grade 5a- Watch 392,644 1,135,991 1,411,604 795,450 0 868 3,736,557 Grade 5b- OAEM 38,414 0 590,011 1,240,299 1,755,510 31,872 3,656,106 Grade 6- Substandard 212,198 165,355 1,041,210 3,660,179 175,718 44,072 5,298,732 Grade 7- Doubtful 0 0 0 33,964 0 0 33,964 Total loans $ 47,861,368 $ 12,257,185 $ 76,915,794 $ 69,304,248 $ 14,996,076 $ 3,091,067 $ 224,425,738 |
Schedule of Changes in Allowance for Loan Losses | Changes in the allowance for loan losses are as follows: 2015 2014 2013 Balance, January 1 $ 3,114,151 $ 3,077,561 $ 2,844,903 Provision charged to operations 141,300 330,000 420,000 Loans charged off (319,200 ) (341,377 ) (233,842 ) Recoveries 95,991 47,967 46,500 Balance, December 31 $ 3,032,242 $ 3,114,151 $ 3,077,561 |
Schedule of Allowance For Loan Losses Methodology | The following tables detail activity in the ALL by class of loans for the years ended December 31, 2015 and 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. December 31, 2015 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2014 $ 299,850 $ 1,043,083 $ 1,192,098 $ 312,822 $ 86,656 $ 179,642 $ 3,114,151 Charge-offs 263,809 0 0 33,238 0 22,153 319,200 Recoveries 42,253 0 0 22,047 0 31,691 95,991 Net charge-offs 221,556 0 0 11,191 0 (9,538 ) 223,209 Provisions charged to operations 66,487 0 0 80,260 0 (5,447 ) 141,300 Balance at end of period, December 31, 2015 $ 144,781 $ 1,043,083 $ 1,192,098 $ 381,891 $ 86,656 $ 183,733 $ 3,032,242 Ending balance - Individually evaluated for impairment $ 0 $ 0 $ 212,283 $ 91,831 $ 0 $ 0 $ 304,114 Collectively evaluated for impairment 144,781 1,043,083 979,815 290,060 86,656 183,733 2,728,128 Balance at end of period $ 144,781 $ 1,043,083 $ 1,192,098 $ 381,891 $ 86,656 $ 183,733 $ 3,032,242 Loans : Ending balance - Individually evaluated for impairment $ 0 $ 1,012,831 $ 5,414,491 $ 2,896,953 $ 1,682,207 $ 4,569 $ 11,011,051 Collectively evaluated for impairment 58,173,187 18,818,239 80,362,868 65,072,166 13,938,059 3,429,811 239,794,330 Balance at end of period $ 58,173,187 $ 19,831,070 $ 85,777,359 $ 67,969,119 $ 15,620,266 $ 3,434,380 $ 250,805,381 December 31, 2014 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2013 $ 297,546 $ 1,032,053 $ 1,192,098 $ 301,169 $ 76,868 $ 177,827 $ 3,077,561 Charge-offs 37,186 120,800 0 157,744 0 25,647 341,377 Recoveries 11,957 0 0 30,247 0 5,763 47,967 Net charge-offs 25,229 120,800 0 127,497 0 19,884 293,410 Provisions charged to operations 27,533 131,830 0 139,150 9,788 21,699 330,000 Balance at end of period, December 31, 2014 $ 299,850 $ 1,043,083 $ 1,192,098 $ 312,822 $ 86,656 $ 179,642 $ 3,114,151 Ending balance - Individually evaluated for impairment $ 99,067 $ 0 $ 240,899 $ 129,060 $ 9,788 $ 0 $ 478,814 Collectively evaluated for impairment 200,783 1,043,083 951,199 183,762 76,868 179,642 2,635,337 Balance at end of period $ 299,850 $ 1,043,083 $ 1,192,098 $ 312,822 $ 86,656 $ 179,642 $ 3,114,151 Loans : Ending balance - Individually evaluated for impairment $ 202,323 $ 1,066,771 $ 2,623,475 $ 3,415,987 $ 1,317,256 $ 27,210 $ 8,653,022 Collectively evaluated for impairment 47,659,045 11,190,414 74,292,319 65,888,261 13,678,820 3,063,857 215,772,716 Balance at end of period $ 47,861,368 $ 12,257,185 $ 76,915,794 $ 69,304,248 $ 14,996,076 $ 3,091,067 $ 224,425,738 |
Impaired Loans With Specific Reserves and Recorded Balance of Related Loans | The following table is a summary of amounts included in the ALL for the impaired loans with specific reserves and the recorded balance of the related loans. Year Ended December 31, 2015 2014 2013 Allowance for loss on impaired loans $ 304,114 $ 478,814 $ 469,302 Recorded balance of impaired loans $ 5,558,615 $ 4,126,957 $ 2,997,359 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The amounts reported as bank premises and equipment at December 31, 2015 and 2014, are as follows: 2015 2014 Land $ 3,089,352 $ 3,089,352 Building 13,396,340 13,326,516 Furniture and equipment 9,006,056 8,933,200 25,491,748 25,349,068 Less accumulated depreciation (14,334,304 ) (13,592,801 ) Total $ 11,157,444 $ 11,756,267 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Inatngible Assets | The following table lists the Corporations account relationship intangible assets at December 31, 2015 and 2014. These assets have less than four years of remaining amortization. 2015 2014 Amortizing intangible assets Account relationships $ 50,781 $ 66,406 Total intangible assets $ 50,781 $ 66,406 |
Schedule of Expected Amortization Expense | The intangible assets carrying amount, accumulated amortization and amortization expense for December 31, 2015, and the four succeeding fiscal years are as follows: 2015 2016 2017 2018 2019 Amortizing intangible assets Account relationships Gross carrying amount $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 Accumulated amortization 74,219 89,844 105,469 121,094 125,000 Net carrying amount $ 50,781 $ 35,156 $ 19,531 $ 3,906 $ 0 Amortization expense $ 15,625 $ 15,625 $ 15,625 $ 15,625 $ 3,906 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits: | |
Schedule of Maturities of Certificates of Deposits | At December 31, 2015, the scheduled maturities of certificates of deposit are as follows: Amount 2016 $ 54,751,692 2017 16,103,016 2018 4,980,959 2019 66,595 2020 and thereafter 14,906 Total $ 75,917,168 |
Short-Term Borrowed Funds (Tabl
Short-Term Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of FHLB | Information concerning federal funds purchased and FHLB short-term advances are summarized as follows: 2015 2014 Average balance during the year $ 7,028,679 $ 8,117,476 Average interest rate during the year 0.96 % 2.09 % Maximum month-end balance during the year $ 10,133,333 $ 12,133,333 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at December 31, 2015 and 2014, consisted of the following: 2015 2014 Advance from FHLB with a 3.39% fixed rate of interest maturing August 20, 2018 (convertible to a variable rate at quarterly options of FHLB no conversion option has been made). $ 5,000,000 $ 5,000,000 Advance from FHLB with a 2.78% fixed rate of interest maturing September 10, 2018 (convertible to a variable rate at quarterly options of FHLB no conversion option has been made). 5,000,000 5,000,000 Advance from FHLB with 1.43% fixed rate of interest with annual installment payments maturing September 4, 2018. 3,600,000 5,400,000 Advance from FHLB with 0.89% fixed rate of interest with annual installment payments maturing July 24, 2017. 3,333,333 6,666,667 Advance from FHLB with 1.25% fixed rate of interest with annual installment payments maturing September 30, 2020. 6,400,000 0 Advance from FHLB with 1.94% fixed rate of interest with annual installment payments maturing December 16, 2022. 5,142,857 0 Total long-term debt $ 28,476,190 $ 22,066,667 |
Schedule of Debt Maturities | The following are maturities of long-term debt for the next five years. At December 31, 2015, there was no floating rate long-term debt; however, two of these advances have convertible call features. Two advances totaling $10,000,000 have convertible options by the issuer to convert the rates to a 3-month LIBOR. The Bank intends to pay off these advances at the conversion dates. The Bank has the ability to hold this debt until conversion and the means of repayment. Due in: Fixed Rate Amount 2016 $ 0 2017 7,590,476 2018* 13,400,000 2019 3,314,286 2020 1,600,000 Later years 2,571,428 Total long-term debt $ 28,476,190 *Fixed rate advances with convertible options of $10,000,000. |
Employee Benefits and Retirem38
Employee Benefits and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Computed Benefit Obligations and Net Assets and Related Changes | The table of actuarially computed benefit obligations and net assets and the related changes of the Plan at December 31, 2015, 2014, and 2013, is presented below. 2015 2014 2013 Change in Benefit Obligation Benefit obligation at beginning of year $ 13,322,751 $ 13,308,069 $ 12,929,816 Service cost 0 0 0 Interest cost 714,604 727,305 697,704 Amendments 0 0 0 Benefits paid (1,079,912 ) (1,020,747 ) (974,761 ) Other net 927,935 308,124 655,310 Benefit obligation at end of year $ 13,885,378 $ 13,322,751 $ 13,308,069 Change in Plan Assets Fair value of plan assets at beginning of year $ 11,889,678 $ 11,819,296 $ 11,249,592 Actual return on plan assets 110,504 485,129 769,465 Employer contribution 500,000 606,000 775,000 Benefits paid (1,079,912 ) (1,020,747 ) (974,761 ) Fair value of plan assets at end of year $ 11,420,270 $ 11,889,678 $ 11,819,296 2015 2014 2013 Funded status $ (2,465,108 ) $ (1,433,073 ) $ (1,488,773 ) Unrecognized net actuarial (gain)/loss 0 0 0 Unrecognized prior service cost 0 0 0 Pension liability included in other liabilities $ (2,465,108 ) $ (1,433,073 ) $ (1,488,773 ) Accumulated benefit obligation $ 13,885,378 $ 13,322,751 $ 13,308,069 |
Amount Recognized in Consolidated Balance Sheet | Amount recognized in consolidated balance sheet consist of the following: 2015 2014 2013 Accrued Pension $ 2,465,108 $ 1,433,073 $ 1,488,773 Deferred tax assets $ 838,137 $ 487,245 $ 506,183 Accumulated other comprehensive income 1,626,971 945,828 982,590 Total $ 2,465,108 $ 1,433,073 $ 1,488,773 Components of Pension Cost 2015 2014 2013 Service cost $ 0 $ 0 $ 0 Interest cost on benefit obligation 714,604 727,305 697,704 Expected return on plan assets (928,160 ) (932,417 ) (875,553 ) Other - net 448,707 471,185 479,567 Net periodic pension cost $ 235,151 $ 266,073 $ 301,718 |
Amounts Recognized in Comprehensive Income | Other changes in plan assets and benefit obligations recognized in comprehensive income: 2015 2014 2013 Net loss (gain) $ 1,032,035 $ (55,700 ) $ (191,451 ) Prior service costs 0 0 0 Total recognized in other comprehensive income (loss) $ 1,032,035 $ (55,700 ) $ (191,451 ) Net periodic pension cost 235,151 266,073 301,718 Total recognized in net periodic pension cost and other comprehensive income $ 1,267,186 $ 210,373 $ 110,267 |
Pension Asset Allocation and Fair Value Measurement | Pension Asset Allocation and Fair Value Measurement as of December 31 2015 2014 Fair Value Level 1 % Fair Value Level 1 % Investment at fair value as determined by quoted market price: Equity $ 3,236,166 $ 3,236,166 28 % $ 2,754,951 $ 2,754,951 23 % Fixed income 4,268,825 4,268,825 37 % 4,812,463 4,812,463 41 % Total $ 7,504,991 $ 7,504,991 65 % $ 7,567,414 $ 7,567,414 64 % Investment as estimated fair value: Certificates of deposit $ 3,257,418 $ 3,257,418 29 % $ 3,260,260 $ 3,260,260 27 % Cash and cash equivalent 657,861 657,861 6 % 1,062,004 1,062,004 9 % Total $ 3,915,279 $ 3,915,279 35 % $ 4,322,264 $ 4,322,264 36 % Total $ 11,420,270 $ 11,420,270 100 % $ 11,889,678 $ 11,889,678 100 % |
Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service and decrements as appropriate, are expected to be paid for fiscal years beginning: 2016 $ 1,186,000 2017 1,166,000 2018 1,150,000 2019 1,134,000 2020 1,117,000 Years 2021 2025 5,341,000 |
Summary of Stock Options | The following table sets forth the number of stock options granted, the average fair value of options granted, and the weighted-average assumptions used to determine the fair value of the stock options granted. 2015 2014 2013 Number of stock options granted 0 0 0 Average fair value of stock options granted 0 0 0 Number of option shares exercisable 1,000 2,500 10,900 Average price of stock options exercisable $ 19.95 $ 21.21 $ 20.19 |
Summary of Changes in Stock Options | A summary of the status of the Corporations Option Plan as of December 31, 2015, 2014 and 2013, and the changes in stock options during the years are presented below: No. of Shares Average Price Outstanding at December 31, 2012 10,900 $ 20.19 Granted 0 0 Expired 0 0 Exercised 0 0 Outstanding at December 31, 2013 10,900 $ 20.19 Granted 0 0 Expired (8,400) 19.89 Exercised 0 0 Outstanding at December 31, 2014 2,500 $ 21.21 Granted 0 0 Expired (1,500) 22.05 Exercised 0 0 Outstanding at December 31, 2015 1,000 $ 19.95 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about fixed stock options outstanding and exercisable at December 31, 2015. Outstanding Stock Options Exercisable Stock Options Exercise Price Range Number Outstanding At 12/31/15 Weighted- Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable At 12/31/15 Weighted Average Exercise Price $19 to $20 1,000 0.5 Years $ 19.95 1,000 $ 19.95 |
Benefit Obligation [Member] | |
Assumptions Used to Determine Benefit Obligation | Assumptions used to determine the benefit obligation as of December 31, 2015 and 2014 respectively were: 2015 2014 Weighted-Average Assumptions as of December 31 Discount rate 5.75 % 5.60 % Rate of compensation increase N/A N/A |
Net Periodic Pension Costs [Member] | |
Assumptions Used to Determine Benefit Obligation | For the years ended December 31, 2015, 2014, and 2013, the assumptions used to determine net periodic pension costs are as follows: 2015 2014 2013 Discount rate 5.60 % 5.70 % 5.50 % Expected return on plan assets 8.00 % 8.00 % 8.00 % Rate of compensation increase N/A N/A N/A |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Components of income tax expense for 2015, 2014, and 2013 are as follows: 2015 2014 2013 Current expense (benefit) $ 900,543 $ 435,943 $ (120,244 ) Deferred taxes (benefit) (73,379 ) 303,614 484,908 Total income taxes $ 827,164 $ 739,557 $ 364,664 |
Schedule of Income Taxes | The reasons for the difference between the federal income taxes in the consolidated statements of income and the amount and percentage computed by the applying the combine statutory federal and state income tax rate to income taxes are as follows: 2015 2014 2013 Amount % Amount % Amount % Taxes at statutory income tax rate $ 1,428,272 34.0 $ 1,238,752 34.0 $ 1,066,582 34.0 Reductions in taxes resulting from exempt income (540,861 ) (12.9 ) (454,779 ) (12.5 ) (464,631 ) (14.8 ) Other timing differences (60,247 ) (1.4 ) (44,416 ) (1.2 ) (237,287 ) (7.6 ) Total income taxes $ 827,164 19.7 $ 739,557 20.3 $ 364,664 11.6 |
Schedule of Effective Income Tax Rate Reconciliation | The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2015, 2014, and 2013 are summarized as follows: 2015 2014 2013 Nonqualified retirement plan $ (7,229 ) $ 0 $ 0 Deferred gain on covered transaction (24,154 ) 0 0 Nonaccrual loan interest (34,104 ) 0 0 Foreclosed assets expenses (4,577 ) 74,130 297,004 Bad debt expense in excess of tax 27,850 (12,441 ) (310,694 ) Realized impairment gain on equity securities 13,233 163,625 509,736 Accretion of discounted bonds 26,370 20,058 9,175 Gain on disposition of discounted bonds (3,503 ) (2,470 ) (7,106 ) Book and tax depreciation difference (67,265 ) 60,712 (13,207 ) Total deferred taxes $ (73,379 ) $ 303,614 $ 484,908 |
Schedule of Deferred Tax Assets and Liabilities | December 31 2015 2014 Deferred tax assets: Nonaccrual loan interest $ 34,104 $ 0 Deferred gain on covered transaction 24,154 0 Alternative minimum tax 564,920 231,038 Foreclosed assets expenses 6,205 1,628 Intangible asset amortization 298,699 298,699 Bad debt expense in excess of tax 1,030,959 1,058,809 Realized loss on other-than-temporarily impaired equity securities 214,353 227,586 Nonqualified retirement plan 0 (7,229 ) Pension plan 838,137 487,245 Total deferred tax assets 3,011,531 2,297,776 Deferred tax liabilities: Accretion on bonds and gain on discounted bonds 59,005 36,138 Book and tax depreciation difference 262,312 329,577 Unrealized gain on securities available for sale 243,979 198,156 Total deferred tax liabilities 565,296 563,871 Net deferred tax assets $ 2,446,235 $ 1,733,905 |
Commitments, Contingent Liabi40
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual or Notional Amounts of Financial Instruments | The contractual or notional amounts of financial instruments having credit risk in excess of that reported in the Consolidated Balance Sheets are as follows: Dec. 31, 2015 Dec. 31, 2014 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 24,780,028 $ 17,134,310 Standby letters of credit and financial guarantees $ 960,000 $ 975,000 |
Schedule of Future Cash Payments | The Corporations operating leases are comprised of purchase obligations for data processing services and a rental agreement for our loan production office in Tifton, Georgia. We have no capital lease obligations. The following table shows scheduled future cash payments under those obligations as of December 31, 2015. Payments Due by Period Total Less than 1 Year 1-3 Years 4-5 Years After 5 Years Operating leases $ 42,627 $ 22,035 $ 10,296 $ 10,296 $ 0 |
Fair Value Measurements and D41
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Recorded at Fair Value on a Recurring Basis | Assets Recorded at Fair Value on a Recurring Basis: The table below presents the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2015 and 2014. December 31, 2015 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government agency securities $ 0 $ 42,642,322 $ 0 $ 42,642,322 State and municipal securities 0 2,607,684 0 2,607,684 Residential mortgage-backed securities 0 3,741,445 0 3,741,445 Corporate notes 0 2,472,960 0 2,472,960 Equity securities 0 12,000 0 12,000 Total $ 0 $ 51,476,411 $ 0 $ 51,476,411 December 31, 2014 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government agency securities $ 0 $ 45,492,925 $ 0 $ 45,492,925 State and municipal securities 0 874,667 0 874,667 Residential mortgage-backed securities 0 4,971,644 0 4,971,644 Corporate notes 0 2,498,720 0 2,498,720 Total $ 0 $ 53,837,956 $ 0 $ 53,837,956 |
Schedule of Fair Value of Assets Recorded on a Nonrecurring Basis | Assets Recorded at Fair Value on a Nonrecurring Basis: The Corporation may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2015 and 2014. December 31, 2015 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 81,750 $ 81,750 Impaired loans 0 0 5,254,501 5,254,501 Total assets at fair value $ 0 $ 0 $ 5,336,251 $ 5,336,251 December 31, 2014 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 273,653 $ 273,653 Impaired loans 0 0 3,648,143 3,648,143 Total assets at fair value $ 0 $ 0 $ 3,921,796 $ 3,921,796 |
Schedule of Carrying and Estimated Fair Value of Assets and Liabilities Recorded at Fair Value | The carrying amount and estimated fair values of the Corporations assets and liabilities which are required to be either disclosed or recorded at fair value at December 31, 2015 and 2014, are as follows: Estimated Fair Value December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 31,080 $ 31,080 $ 0 $ 0 $ 31,080 Certificates of deposit in other banks 245 245 0 0 245 Investment securities available for sale 51,476 0 51,476 0 51,476 Investment securities held to maturity 60,889 0 62,199 0 62,199 Federal Home Loan Bank stock 1,869 0 1,869 0 1,869 Loans, net 247,754 0 243,460 5,255 248,715 Liabilities: Deposits 339,016 0 339,337 0 339,337 Federal Home Loan Bank advances 36,067 0 35,964 0 35,964 Estimated Fair Value December 31, 2014 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 12,559 $ 12,559 $ 0 $ 0 $ 12,559 Certificates of deposit in other banks 1,470 1,470 0 0 1,470 Investment securities available for sale 53,838 0 53,838 0 53,838 Investment securities held to maturity 61,588 0 62,841 0 62,841 Federal Home Loan Bank stock 1,560 0 1,560 0 1,560 Loans, net 221,286 0 217,651 3,648 221,299 Liabilities: Deposits 309,974 0 310,234 0 310,234 Federal Home Loan Bank advances 27,200 0 27,621 0 27,621 |
Supplemental Financial Data (Ta
Supplemental Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Schedule of Components of Operating Expenses | Components of other income and other operating expense in excess of one percent of gross revenue for the respective periods are as follows: Years Ended December 31 2015 2014 2013 Income: Bank card interchange fees $ 487,933 $ 466,455 $ 428,178 Expense: Other professional fees $ 230,920 $ 232,159 $ 189,252 Director & board committee fees $ 336,458 $ 349,597 $ 274,881 FDIC insurance assessment $ 240,223 $ 234,555 $ 257,036 Administrative expense employee benefit plans $ 224,021 $ 207,299 $ 172,354 |
Stockholders' Equity _ Regula43
Stockholders' Equity / Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity Regulatory Matters | |
Summary of Leverage Ratio | The Corporations and the Banks ratios under the above rules at December 31, 2015 and 2014, are set forth in the following tables. The Corporations leverage ratio at December 31, 2015, was 9.13%. As of December 31, 2015 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Common equity Tier 1 (to risk- weighted assets) $37,230,740 14.07% $11,907,692 > $17,199,999 > Total capital (to risk- weighted assets) $40,262,982 15.22% $21,169,230 > $26,461,534 > Tier I capital (to risk- weighted assets) $37,230,740 14.07% $15,876,922 > $21,169,230 > Leverage (tier I capital to average assets) $37,230,740 9.13% $16,316,153 > $20,395,191 > Southwest Georgia Bank Common equity Tier 1 (to risk- weighted assets) $34,279,795 12.99% $11,874,310 > $17,151,781 > Total capital (to risk- weighted assets) $37,312,037 14.14% $21,109,884 > $26,387,355 > Tier I capital (to risk- weighted assets) $34,279,795 12.99% $15,832,413 > $21,109,884 > Leverage (tier I capital to average assets) $34,279,795 8.43% $16,274,473 > $20,343,091 > As of December 31, 2014 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Total capital (to risk- weighted assets) $37,845,154 15.70% $19,288,109 > $24,110,136 > Tier I capital (to risk- weighted assets) $34,830,148 14.45% $ 9,644,054 > $14,466,082 > Leverage (tier I capital to average assets) $34,830,148 9.14% $15,246,906 > $19,058,633 > Southwest Georgia Bank Total capital (to risk- weighted assets) $36,510,112 15.18% $19,236,387 > $24,045,483 > Tier I capital (to risk- weighted assets) $33,503,088 13.93% $ 9,618,193 > $14,427,290 > Leverage (tier I capital to average assets) $33,503,088 8.81% $15,211,031 > $19,013,789 > |
Parent Company Financial Data (
Parent Company Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Balance Sheet Information of Parent Company | 2015 2014 ASSETS Cash $ 1,919 $ 676 Investment in consolidated wholly-owned bank subsidiary, at equity 33,147 33,008 Loans 363 16 Other assets 669 635 Total assets $ 36,098 $ 34,335 LIABILITIES AND STOCKHOLDERS EQUITY Total liabilities $ 0 $ 0 Stockholders equity: Common stock, $1 par value, 5,000,000 shares authorized, 4,293,835 shares for 2015 and 2014 issued 4,294 4,294 Additional paid-in capital 31,701 31,701 Retained earnings 27,370 25,015 Accumulated other comprehensive loss (1,153 ) (561 ) Treasury stock, at cost, 1,745,998 for 2015 and 2014 (26,114 ) (26,114 ) Total stockholders equity 36,098 34,335 Total liabilities and stockholders equity $ 36,098 $ 34,335 |
Schedule of Statements of Operations Information of Parent Company | 2015 2014 2013 Income: Dividend received from bank subsidiary $ 2,685 $ 1,000 $ 667 Interest income 12 10 5 Total income 2,697 1,010 672 Expenses: Other 141 166 144 Income before income taxes and equity in Undistributed income of bank subsidiary 2,556 844 528 Income tax benefit allocated from consolidated return (87 ) (88 ) (66 ) Income before equity in undistributed income of subsidiary 2,643 932 594 Equity in undistributed income of subsidiary 731 1,972 2,178 Net income 3,374 2,904 2,772 Retained earnings beginning of year 25,015 22,926 20,664 Cash dividend declared (1,019 ) (815 ) (510 ) Retained earnings end of year $ 27,370 $ 25,015 $ 22,926 |
Schedule of Cash Flow Information of Parent Company | 2015 2014 2013 Cash flow from operating activities: Net income $ 3,374 $ 2,904 $ 2,772 Adjustments to reconcile net income to net cash used by operating activities: Equity in undistributed earnings of Subsidiary (731 ) (1,972 ) (2,178 ) Changes in: Other assets (34 ) (68 ) (43 ) Net cash provided for operating activities 2,609 864 551 Cash flow from investing activities: Net change in loans (347 ) 4 40 Net cash provided (used) for investing activities (347 ) 4 40 Cash flow from financing activities: Cash dividend paid to stockholders (1,019 ) (815 ) (510 ) Net cash used for financing activities (1,019 ) (815 ) (510 ) Increase in cash 1,243 53 81 Cash beginning of year 676 623 542 Cash end of year $ 1,919 $ 676 $ 623 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share are based on the weighted average number of common shares outstanding during the year. Year Ended December 31, 2015 Income Weighted Average Shares Per Share Amount Basic earnings per share: Net income $ 3,373,635 2,547,837 $ 1.32 Diluted earnings per share: Net income $ 3,373,635 2,547,837 $ 1.32 Year Ended December 31, 2014 Income Weighted Average Shares Per Share Amount Basic earnings per share: Net income $ 2,903,830 2,547,837 $ 1.14 Diluted earnings per share: Net income $ 2,903,830 2,547,837 $ 1.14 Year Ended December 31, 2013 Income Weighted Average Shares Per Share Amount Basic earnings per share: Net income $ 2,772,334 2,547,837 $ 1.09 Diluted earnings per share: Net income $ 2,772,334 2,547,837 $ 1.09 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Data | For the Year 2015 Fourth Third Second First Interest and dividend income $ 3,946 $ 3,889 $ 3,898 $ 3,695 Interest expense 353 325 324 315 Net interest income 3,593 3,564 3,574 3,380 Provision for loan losses 0 51 45 45 Net interest income after provision for loan losses 3,593 3,513 3,529 3,335 Noninterest income 1,046 1,008 1,045 1,161 Noninterest expenses 3,590 3,459 3,493 3,487 Income before income taxes 1,049 1,062 1,081 1,009 Provision for income taxes 206 205 216 200 Net income $ 843 $ 857 $ 865 $ 809 Earnings per share of common stock: Basic $ .33 $ .33 $ .34 $ .32 Diluted $ .33 $ .33 $ .34 $ .32 For the Year 2014 Fourth Third Second First Interest and dividend income $ 3,710 $ 3,722 $ 3,726 $ 3,554 Interest expense 314 306 334 401 Net interest income 3,396 3,416 3,392 3,153 Provision for loan losses 75 75 75 105 Net interest income after provision for loan losses 3,321 3,341 3,317 3,048 Noninterest income 1,115 1,283 1,246 1,342 Noninterest expenses 3,625 3,612 3,630 3,503 Income before income taxes 811 1,012 933 887 Provision for income taxes 149 208 196 186 Net income $ 662 $ 804 $ 737 $ 701 Earnings per share of common stock: Basic $ .26 $ .32 $ .28 $ .28 Diluted $ .26 $ .32 $ .28 $ .28 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about reportable business segments, and reconciliation of such information to the consolidated financial statements for the years ended December 31, 2015, 2014, and 2013, are as follows: Segment Reporting For the year ended December 31, 2015 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals (Dollars in thousands) Net Interest Income (expense) external customers $ 11,888 0 0 2,212 0 12 $ 14,112 Net intersegment interest income (expense) 1,901 6 (5 ) (1,902 ) 0 0 0 Net Interest Income 13,789 6 (5 ) 310 0 12 14,112 Provision for Loan Losses 141 0 0 0 0 0 141 Noninterest Income (expense) external customers 2,110 1,371 700 78 0 1 4,260 Intersegment noninterest income (expense) (6 ) 6 35 0 (35 ) 0 0 Total Noninterest Income 2,104 1,377 735 78 (35 ) 1 4,260 Noninterest Expenses: Depreciation 767 31 23 66 0 75 962 Amortization of intangibles 0 16 0 0 0 0 16 Other Noninterest expenses 8,492 1,203 717 687 0 1,953 13,052 Total Noninterest expenses 9,259 1,250 740 753 0 2,028 14,030 Pre-tax Income 6,493 133 (10 ) (365 ) (35 ) (2,015 ) 4,201 Provision for Income Taxes 1,390 28 (10 ) (81 ) 0 (500 ) 827 Net Income $ 5,103 105 0 (284 ) (35 ) (1,515 ) $ 3,374 Assets $ 453,406 1,287 175 149,830 (190,875 ) 1,032 $ 414,855 Expenditures for Fixed Assets $ 353 14 0 4 0 0 $ 371 Amounts included in the "Other" column are as follows: Other Net interest Income: Parent Company $ 12 Noninterest Income: Executive office miscellaneous income 1 Noninterest Expenses: Parent Company corporate expenses 141 Executive office expenses not allocated to segments 1,887 Provison for Income taxes: Parent Company income taxes (benefit) (87 ) Executive office income taxes not allocated to segments (413 ) Net Income: $ (1,515 ) Segment assets: Parent Company assets, after intercompany elimination $ 1,032 Segment Reporting For the year ended December 31, 2014 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals (Dollars in thousands) Net Interest Income (expense) external customers $ 11,376 0 0 1,972 0 9 $ 13,357 Net intersegment interest income (expense) 1,662 4 (5 ) (1,661 ) 0 0 0 Net Interest Income 13,038 4 (5 ) 311 0 9 13,357 Provision for Loan Losses 330 0 0 0 0 0 330 Noninterest Income (expense) external customers 2,782 1,316 651 234 0 3 4,986 Intersegment noninterest income (expense) (4 ) 4 35 0 (35 ) 0 0 Total Noninterest Income 2,778 1,320 686 234 (35 ) 3 4,986 Noninterest Expenses: Depreciation 698 31 21 66 0 75 891 Amortization of intangibles 28 16 1 0 0 0 45 Other Noninterest expenses 8,854 1,231 666 656 0 2,027 13,434 Total Noninterest expenses 9,580 1,278 688 722 0 2,102 14,370 Pre-tax Income 5,906 46 (7 ) (177 ) (35 ) (2,090 ) 3,643 Provision for Income Taxes 1,304 10 (10 ) (40 ) 0 (525 ) 739 Net Income $ 4,602 36 3 (137 ) (35 ) (1,565 ) $ 2,904 Assets $ 404,679 1,411 219 139,175 (171,855 ) 651 $ 374,280 Expenditures for Fixed Assets $ 2,162 28 1 121 0 0 $ 2,312 Amounts included in the "Other" column are as follows: Other Net interest Income: Parent Company $ 9 Noninterest Income: Executive office miscellaneous income 3 Noninterest Expenses: Parent Company corporate expenses 166 Executive office expenses not allocated to segments 1,936 Provison for Income taxes: Parent Company income taxes (benefit) (88 ) Executive office income taxes not allocated to segments (437 ) Net Income: $ (1,565 ) Segment assets: Parent Company assets, after intercompany elimination $ 651 Segment Reporting For the year ended December 31, 2013 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals (Dollars in thousands) Net Interest Income (expense) external customers $ 11,332 0 0 1,475 0 5 $ 12,812 Net intersegment interest income (expense) 1,196 3 (4 ) (1,195 ) 0 0 0 Net Interest Income 12,528 3 (4 ) 280 0 5 12,812 Provision for Loan Losses 420 0 0 0 0 0 420 Noninterest Income (expense) external customers 2,736 1,319 601 388 0 47 5,091 Intersegment noninterest income (expense) (3 ) 3 13 0 (13 ) 0 0 Total Noninterest Income 2,733 1,322 614 388 (13 ) 47 5,091 Noninterest Expenses: Depreciation 674 30 24 57 0 113 898 Amortization of intangibles 182 16 18 0 0 0 216 Other Noninterest expenses 8,800 1,158 648 600 0 2,026 13,232 Total Noninterest expenses 9,656 1,204 690 657 0 2,139 14,346 Pre-tax Income 5,185 121 (80 ) 11 (13 ) (2,087 ) 3,137 Provision for Income Taxes 592 17 104 1 0 (349 ) 365 Net Income $ 4,593 104 (184 ) 10 (13 ) (1,738 ) $ 2,772 Assets $ 394,034 1,256 262 140,877 (163,121 ) 587 $ 373,895 Expenditures for Fixed Assets $ 1,058 34 5 9 0 0 $ 1,106 Amounts included in the "Other" column are as follows: Other Net interest Income: Parent Company $ 5 Noninterest Income: Executive office miscellaneous income 17 Noninterest Expenses: Parent Company corporate expenses 144 Executive office expenses not allocated to segments 1,995 Provison for Income taxes: Parent Company income taxes (benefit) (66 ) Executive office income taxes not allocated to segments (283 ) Net Income: $ (1,768 ) Segment assets: Parent Company assets, after intercompany elimination $ 587 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2013 | |
Accounting Policies [Abstract] | ||||
Maximum FDIC insured amount | $ 250,000 | |||
Uninsured deposits | 5,619,847 | |||
Allowance for foreclosed asset losses | $ 0 | |||
Remaining life of intangible useful life | 4 years | |||
Bank owned life insurance policies | $ 5,231,393 | $ 5,104,173 | ||
Bank owned life insurance policies, stockholders equity, percentage | 14.50% | 14.90% | ||
Advertising expense | $ 153,423 | $ 161,994 | $ 180,505 | |
Total consolidated assets | $ 500,000,000 | |||
Minimum requirement of common equity Tier 1 risk-based capital ratio | 4.50% | |||
Tier 1 risk-based capital ratio | 6.00% | |||
Previous minimum requirement of tier 1 risk-based capital ratio | 4.00% | |||
Minimum requirement of total risk-based capital ratio | 8.00% | |||
Minimum requirement of tier 1 leverage ratio | 4.00% |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Land Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 31 years |
Building And Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 10 years |
Building And Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 40 years |
Machinery And Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Machinery And Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 10 years |
Computer Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 5 years |
Office Furniture And Fixtures [ Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Office Furniture And Fixtures [ Member] | Maximum [Member] | |
Estimated useful lives | 10 years |
Investment Securities (Details
Investment Securities (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Integer | Dec. 31, 2014USD ($)Integer | Dec. 31, 2013USD ($) | |
Schedule of Investments [Abstract] | |||
Securities with a carrying value pledged as collateral | $ 74,772,674 | $ 64,233,906 | |
Securities with a carrying value pledged as collateral, market value | 75,959,402 | 65,166,684 | |
Securities overpledged | 26,000,000 | ||
Federal Home Loan Bank stock, at cost | 1,869,200 | 1,560,000 | |
Proceeds from sale of securities available for sale | 4,044,500 | 2,208,318 | $ 442,600 |
Reported net realized gains | 3,587 | 293,508 | 311,800 |
Proceeds from sale of securities held to maturity | $ 516,746 | $ 0 | $ 0 |
Available-for-sale Securities, number of debt securities | Integer | 37 | 54 | |
Debt securities, unrealized losses with aggregate depreciation on amortized cost basis, percentage | 0.96% | 1.27% |
Investment Securities - Schedul
Investment Securities - Schedule of Securities Available for Sale Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized Cost | $ 50,758,825 | $ 53,255,143 |
Unrealized Gains | 957,341 | 978,405 |
Unrealized Losses | 239,755 | 395,592 |
Total Estimated Fair Value | 51,476,411 | 53,837,956 |
State And Municipal Securities (Member) | ||
Amortized Cost | 2,573,844 | 880,580 |
Total Estimated Fair Value | 2,607,684 | 874,667 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 3,601,949 | 4,757,738 |
Total Estimated Fair Value | 3,741,445 | 4,971,644 |
Corporate Notes (Member) | ||
Amortized Cost | 2,496,320 | 2,495,765 |
Total Estimated Fair Value | 2,472,960 | 2,498,720 |
Total Debt Securities AFS [Member] | ||
Amortized Cost | 50,746,825 | |
Total Estimated Fair Value | 51,464,411 | |
Equity Securities [Member] | ||
Amortized Cost | 12,000 | |
Total Estimated Fair Value | 12,000 | |
U.S. Government Agency Securities [Member] | ||
Amortized Cost | 42,074,712 | 45,121,060 |
Unrealized Gains | 782,567 | 758,874 |
Unrealized Losses | 214,957 | 387,009 |
Total Estimated Fair Value | 42,642,322 | 45,492,925 |
State And Municipal Securities (Member) | ||
Unrealized Gains | 33,840 | 0 |
Unrealized Losses | 0 | 5,913 |
Residential Mortgage-Backed Securities [Member] | ||
Unrealized Gains | 140,934 | 215,276 |
Unrealized Losses | 1,438 | 1,370 |
Corporate Notes (Member) | ||
Unrealized Gains | 0 | 4,255 |
Unrealized Losses | 23,360 | $ 1,300 |
Total Debt Securities AFS [Member] | ||
Unrealized Gains | 957,341 | |
Unrealized Losses | 239,755 | |
Equity Securities [Member] | ||
Unrealized Gains | 0 | |
Unrealized Losses | $ 0 |
Investment Securities - Sched52
Investment Securities - Schedule of Securities Held to Maturity (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | $ 60,888,804 | $ 61,587,819 |
Unrealized Gains | 1,351,048 | 1,341,357 |
Unrealized Losses | 41,153 | 87,772 |
Estimated Fair Value | 62,198,699 | 62,841,404 |
State And Municipal Securities (Member) | ||
Amortized Cost | 54,775,093 | 53,058,749 |
Unrealized Gains | 1,124,007 | 958,434 |
Unrealized Losses | 41,153 | 87,772 |
Estimated Fair Value | 55,857,947 | 53,929,411 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 6,113,711 | 8,529,070 |
Unrealized Gains | 227,041 | 382,923 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 6,340,752 | $ 8,911,993 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Abstract] | ||
Available for Sale Amounts maturing in One year or less, Amortized Cost | $ 0 | $ 0 |
Available for Sale Amounts maturing in After one through five years, Amortized Cost | 22,374,572 | 18,453,816 |
Available for Sale Amounts maturing in After five through ten years, Amorized Cost | 22,553,504 | 29,521,793 |
Available for Sale Amounts maturing in After ten years, Amortized Cost | 5,818,749 | 5,279,534 |
Total debt securities AFS, Amortized Cost | 50,746,825 | |
Equity securities, Amortized Cost | 12,000 | |
Total securities AFS, Amortized Cost | 50,758,825 | 53,255,143 |
Available for Sale Amounts maturing in One year or less, Estimated Fair Value | 0 | 0 |
Available for Sale Amounts maturing in After one through five years, Estimated Fair Value | 22,310,228 | 18,260,779 |
Available for Sale Amounts maturing in After five through ten years, Estimated Fair Value | 23,222,962 | 30,216,568 |
Available for Sale Amounts maturing in After ten years, Estimated Fair Value | 5,931,221 | 5,360,609 |
Total debt securities AFS, Estimated Fair Value | 51,464,411 | |
Equity securities, Estimated Fair Value | 12,000 | |
Total Estimated Fair Value | 51,476,411 | 53,837,956 |
Held to Maturity Amounts maturing in One year or less, Amortized Cost | 3,956,629 | 3,160,887 |
Held to Maturity Amounts maturing in After one through five years, Amortized Cost | 27,302,169 | 28,494,335 |
Held to Maturity Amounts maturing in After five through ten years, Amortized Cost | 21,412,080 | 22,246,060 |
Held to Maturity Amounts maturing in After ten years, Amortized Cost | 8,217,926 | 7,686,537 |
Total securities HTM, Amortized Cost | 60,888,804 | 61,587,819 |
Held to Maturity Amounts maturing in One year or less, Estimated Fair Value | 3,968,196 | 3,196,256 |
Held to Maturity Amounts maturing in After one through five years, Estimated Fair Value | 27,617,796 | 28,780,760 |
Held to Maturity Amounts maturing in After five through ten years, Estimated Fair Value | 22,253,863 | 23,036,240 |
Held to Maturity Amounts maturing in After ten years, Estimated Fair Value | 8,358,844 | 7,828,148 |
Total securities HTM, Estimated Fair Value | $ 62,198,699 | $ 62,841,404 |
Investment Securities - Sched54
Investment Securities - Schedule of Information Pertaining to Securities Gross Unrealized Losses by Investments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Less Than Twelve Months, Gross Unrealized Losses | $ 97,705 | $ 18,472 |
Less Than Twelve Months, Fair Value | 14,301,280 | 3,129,619 |
Twelve Months or More, Gross Unrealized Losses | 142,050 | 377,120 |
Twelve Months or More, Fair Value | 6,357,950 | 21,136,998 |
Less Than Twelve Months, Gross Unrealized Losses | 26,435 | 34,956 |
Less Than Twelve Months, Fair Value | 7,250,634 | 9,199,455 |
Twelve Months or More, Gross Unrealized Losses | 14,718 | 52,816 |
Twelve Months or More, Fair Value | 994,476 | 4,130,041 |
U.S. Government Agency Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 73,907 | 17,172 |
Less Than Twelve Months, Fair Value | 11,885,323 | 2,630,919 |
Twelve Months or More, Gross Unrealized Losses | 141,050 | 369,837 |
Twelve Months or More, Fair Value | 5,858,950 | 19,667,408 |
State And Municipal Securities (Member) | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 5,913 |
Twelve Months or More, Fair Value | 0 | 874,667 |
Less Than Twelve Months, Gross Unrealized Losses | 26,435 | 34,956 |
Less Than Twelve Months, Fair Value | 7,250,634 | 9,199,455 |
Twelve Months or More, Gross Unrealized Losses | 14,718 | 52,816 |
Twelve Months or More, Fair Value | 994,476 | 4,130,041 |
Residential Mortgage-Backed Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 1,438 | 1,300 |
Less Than Twelve Months, Fair Value | 441,997 | 498,700 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Twelve Months or More, Fair Value | 0 | 0 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Twelve Months or More, Fair Value | 0 | 0 |
Corporate Notes (Member) | ||
Less Than Twelve Months, Gross Unrealized Losses | 22,360 | 0 |
Less Than Twelve Months, Fair Value | 1,973,960 | 0 |
Twelve Months or More, Gross Unrealized Losses | 1,000 | 1,370 |
Twelve Months or More, Fair Value | $ 499,000 | $ 594,923 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans and Leases Receivable, Allowance [Abstract] | |||
Real estate loans | $ 189,000,000 | ||
Loans pledged | 44,138,262 | ||
Loans placed on nonaccrual status amount | 1,545,599 | $ 785,572 | |
Past due over 90 days and still accruing | 521 | ||
Interest income on nonaccural | 40,346 | $ 34,300 | |
Impaired loans | 5,558,615 | 4,126,957 | $ 2,997,359 |
Allowance for loan losses | 304,114 | 478,814 | 469,302 |
Average impaired loans | 2,666,440 | ||
Interest income | $ 113,689 | ||
Troubled debt restructuring | $ 2,290,411 | 215,432 | |
Troubled Debt Restructuring, charge -off | 3,290 | ||
Allowance for loan losses allocated to TDRs | $ 130,441 | $ 24,231 | |
Impaired loans and nonaccrual loans are analyzed on individual basis | $ 50,000 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Loans Outstanding | $ 250,805,381 | $ 224,425,738 |
Unearned interest and discount | (19,046) | (25,921) |
Allowance for loan losses | (3,032,242) | (3,114,151) |
Net loans | 247,754,093 | 221,285,666 |
Commercial, Financial And Agricultural [Member] | ||
Loans Outstanding | 58,173,187 | 47,861,368 |
Construction Real Estate [Member] | ||
Loans Outstanding | 19,831,070 | 12,257,185 |
Commercial Real Estate [Member] | ||
Loans Outstanding | 85,777,359 | 76,915,794 |
Residential Real Estate [Member] | ||
Loans Outstanding | 67,969,119 | 69,304,248 |
Agricultural Real Estate [Member] | ||
Loans Outstanding | 15,620,266 | 14,996,076 |
Consumer And Other [Member] | ||
Loans Outstanding | $ 3,434,380 | $ 3,091,067 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses - Past Due Loans and Nonaccrual Loans (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
30-89 Days Past Due | $ 3,853,614 | $ 1,874,838 |
Greater than 90 Days | 521 | 0 |
Total Past Due Loans | 3,854,135 | 1,874,838 |
Nonaccrual Loans | 1,545,599 | 785,572 |
Current Loans | 245,405,647 | 221,765,328 |
Total Loans | 250,805,381 | 224,425,738 |
Commercial, Financial And Agricultural [Member] | ||
30-89 Days Past Due | 449,618 | 518,578 |
Greater than 90 Days | 521 | 0 |
Total Past Due Loans | 450,139 | 518,578 |
Nonaccrual Loans | 0 | 25,500 |
Current Loans | 57,723,048 | 47,317,290 |
Total Loans | 58,173,187 | 47,861,368 |
Construction Real Estate [Member] | ||
30-89 Days Past Due | 121,694 | 233,734 |
Greater than 90 Days | 0 | 0 |
Total Past Due Loans | 121,694 | 233,734 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 19,709,376 | 12,023,451 |
Total Loans | 19,831,070 | 12,257,185 |
Commercial Real Estate [Member] | ||
30-89 Days Past Due | 810,515 | 517,488 |
Greater than 90 Days | 0 | 0 |
Total Past Due Loans | 810,515 | 517,488 |
Nonaccrual Loans | 0 | 681,360 |
Current Loans | 84,966,844 | 75,716,946 |
Total Loans | 85,777,359 | 76,915,794 |
Residential Real Estate [Member] | ||
30-89 Days Past Due | 2,238,684 | 534,896 |
Greater than 90 Days | 0 | 0 |
Total Past Due Loans | 2,238,684 | 534,896 |
Nonaccrual Loans | 639,094 | 21,796 |
Current Loans | 65,091,341 | 68,747,556 |
Total Loans | 67,969,119 | 69,304,248 |
Agricultural Real Estate [Member] | ||
30-89 Days Past Due | 148,761 | 0 |
Greater than 90 Days | 0 | 0 |
Total Past Due Loans | 148,761 | 0 |
Nonaccrual Loans | 906,505 | 37,707 |
Current Loans | 14,565,000 | 14,958,369 |
Total Loans | 15,620,266 | 14,996,076 |
Consumer And Other [Member] | ||
30-89 Days Past Due | 84,342 | 70,142 |
Greater than 90 Days | 0 | 0 |
Total Past Due Loans | 84,342 | 70,142 |
Nonaccrual Loans | 0 | 19,209 |
Current Loans | 3,350,038 | 3,001,716 |
Total Loans | $ 3,434,380 | $ 3,091,067 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses - Schedule of Impaired Loans Segregated by Class of Loans (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Unpaid Principal Balance | $ 5,700,327 | $ 4,272,412 | |
Recorded Investment With No Allowance | 1,493,186 | 857,030 | |
Recorded Investment with Allowance | 4,065,429 | 3,269,927 | |
Total Recorded Investment | 5,558,615 | 4,126,957 | $ 2,997,359 |
Related Allowance | 304,114 | 478,814 | $ 469,302 |
Year-to-date Average Recorded Investment | 6,484,420 | 4,279,301 | |
Interest Income Received During Impairment | 237,889 | 251,495 | |
Commercial, Financial And Agricultural [Member] | |||
Unpaid Principal Balance | 0 | 202,323 | |
Recorded Investment With No Allowance | 0 | 25,500 | |
Recorded Investment with Allowance | 0 | 176,823 | |
Total Recorded Investment | 0 | 202,323 | |
Related Allowance | 0 | 99,067 | |
Year-to-date Average Recorded Investment | 0 | 210,968 | |
Interest Income Received During Impairment | 0 | 12,192 | |
Construction Real Estate [Member] | |||
Unpaid Principal Balance | 193,524 | 208,121 | |
Recorded Investment With No Allowance | 72,724 | 87,321 | |
Recorded Investment with Allowance | 0 | 0 | |
Total Recorded Investment | 72,724 | 87,321 | |
Related Allowance | 0 | 0 | |
Year-to-date Average Recorded Investment | 133,693 | 76,555 | |
Interest Income Received During Impairment | 15,049 | 17,925 | |
Commercial Real Estate [Member] | |||
Unpaid Principal Balance | 3,256,589 | 1,170,496 | |
Recorded Investment With No Allowance | 496,159 | 0 | |
Recorded Investment with Allowance | 2,760,430 | 1,170,496 | |
Total Recorded Investment | 3,256,589 | 1,170,496 | |
Related Allowance | 212,283 | 240,899 | |
Year-to-date Average Recorded Investment | 2,096,082 | 1,309,828 | |
Interest Income Received During Impairment | 89,947 | 49,522 | |
Residential Real Estate [Member] | |||
Unpaid Principal Balance | 1,988,434 | 2,336,711 | |
Recorded Investment With No Allowance | 662,523 | 568,909 | |
Recorded Investment with Allowance | 1,304,999 | 1,746,890 | |
Total Recorded Investment | 1,967,522 | 2,315,799 | |
Related Allowance | 91,831 | 129,060 | |
Year-to-date Average Recorded Investment | 3,832,546 | 2,232,148 | |
Interest Income Received During Impairment | 107,070 | 110,730 | |
Agricultural Real Estate [Member] | |||
Unpaid Principal Balance | 257,211 | 323,808 | |
Recorded Investment With No Allowance | 257,211 | 148,090 | |
Recorded Investment with Allowance | 0 | 175,718 | |
Total Recorded Investment | 257,211 | 323,808 | |
Related Allowance | 0 | 9,788 | |
Year-to-date Average Recorded Investment | 422,099 | 425,865 | |
Interest Income Received During Impairment | 25,823 | 59,802 | |
Consumer And Other [Member] | |||
Unpaid Principal Balance | 4,569 | 30,953 | |
Recorded Investment With No Allowance | 4,569 | 27,210 | |
Recorded Investment with Allowance | 0 | 0 | |
Total Recorded Investment | 4,569 | 27,210 | |
Related Allowance | 0 | 0 | |
Year-to-date Average Recorded Investment | 0 | 23,937 | |
Interest Income Received During Impairment | $ 0 | $ 1,324 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructuring by Loan Class (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current [Member] | ||
Troubled Debt Restructuring | $ 2,290,411 | $ 208,299 |
Default [Member] | ||
Troubled Debt Restructuring | 0 | 7,133 |
Accuring [Member] | ||
Troubled Debt Restructuring | 2,290,411 | 215,432 |
Non-accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial And Agricultural Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 0 | 31,713 |
Commercial, Financial And Agricultural Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial And Agricultural Loans [Member] | Accuring [Member] | ||
Troubled Debt Restructuring | 0 | 31,713 |
Commercial, Financial And Agricultural Loans [Member] | Non-accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Construction Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Construction Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Construction Loans [Member] | Accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Construction Loans [Member] | Non-accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial Mortgage Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 2,280,466 | 0 |
Commercial Mortgage Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial Mortgage Loans [Member] | Accuring [Member] | ||
Troubled Debt Restructuring | 2,280,466 | 0 |
Commercial Mortgage Loans [Member] | Non-accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Residential Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 5,376 | 0 |
Residential Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Residential Loans [Member] | Accuring [Member] | ||
Troubled Debt Restructuring | 5,376 | 0 |
Residential Loans [Member] | Non-accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Agricultural Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 0 | 175,718 |
Agricultural Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Agricultural Loans [Member] | Accuring [Member] | ||
Troubled Debt Restructuring | 0 | 175,718 |
Agricultural Loans [Member] | Non-accuring [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Consumer And Other Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 4,569 | 868 |
Consumer And Other Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 7,133 |
Consumer And Other Loans [Member] | Accuring [Member] | ||
Troubled Debt Restructuring | 4,569 | 8,001 |
Consumer And Other Loans [Member] | Non-accuring [Member] | ||
Troubled Debt Restructuring | $ 0 | $ 0 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings By Types of Concessions Made (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accuring [Member] | ||
Payment modification | $ 0 | $ 175,718 |
Rate reduction | 0 | 0 |
Rate reduction, payment modification | 2,290,411 | 8,001 |
Forbearance of interest | 0 | 31,713 |
Total | 2,290,411 | 215,432 |
Non-accuring [Member] | ||
Payment modification | 0 | 0 |
Rate reduction | 0 | 0 |
Rate reduction, payment modification | 0 | 0 |
Forbearance of interest | 0 | 0 |
Total | $ 0 | $ 0 |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses - Schedule of Internal Loan Grading by Class of Loans (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total Loans | $ 250,805,381 | $ 224,425,738 |
Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 58,173,187 | 47,861,368 |
Construction Loans [Member] | ||
Total Loans | 19,831,070 | 12,257,185 |
Commercial Mortgage Loans [Member] | ||
Total Loans | 85,777,359 | 76,915,794 |
Residential Loans [Member] | ||
Total Loans | 67,969,119 | 69,304,248 |
Agricultural Loans [Member] | ||
Total Loans | 15,620,266 | 14,996,076 |
Consumer And Other Loans [Member] | ||
Total Loans | 3,434,380 | 3,091,067 |
Rating, Grade 1- Exceptional [Member] | ||
Total Loans | 1,173,508 | 992,882 |
Rating, Grade 1- Exceptional [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 731,270 | 926,512 |
Rating, Grade 1- Exceptional [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Residential Loans [Member] | ||
Total Loans | 25,988 | 27,017 |
Rating, Grade 1- Exceptional [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 416,250 | 39,353 |
Rating, Grade 2- Above Avg. [Member] | ||
Total Loans | 339,080 | 445,190 |
Rating, Grade 2- Above Avg. [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Residential Loans [Member] | ||
Total Loans | 10,011 | 89,109 |
Rating, Grade 2- Above Avg. [Member] | Agricultural Loans [Member] | ||
Total Loans | 329,069 | 356,081 |
Rating, Grade 2- Above Avg. [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 3- Acceptable [Member] | ||
Total Loans | 107,145,484 | 107,709,791 |
Rating, Grade 3- Acceptable [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 30,581,968 | 28,793,317 |
Rating, Grade 3- Acceptable [Member] | Construction Loans [Member] | ||
Total Loans | 7,569,566 | 3,656,979 |
Rating, Grade 3- Acceptable [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 26,285,799 | 28,294,037 |
Rating, Grade 3- Acceptable [Member] | Residential Loans [Member] | ||
Total Loans | 31,303,029 | 34,766,811 |
Rating, Grade 3- Acceptable [Member] | Agricultural Loans [Member] | ||
Total Loans | 9,648,983 | 10,183,723 |
Rating, Grade 3- Acceptable [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 1,756,139 | 2,014,924 |
Rating, Grade 4- Fair [Member] | ||
Total Loans | 126,503,153 | 102,552,516 |
Rating, Grade 4- Fair [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 26,075,703 | 17,498,283 |
Rating, Grade 4- Fair [Member] | Construction Loans [Member] | ||
Total Loans | 11,022,826 | 7,298,860 |
Rating, Grade 4- Fair [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 53,296,973 | 45,578,932 |
Rating, Grade 4- Fair [Member] | Residential Loans [Member] | ||
Total Loans | 30,946,390 | 28,691,419 |
Rating, Grade 4- Fair [Member] | Agricultural Loans [Member] | ||
Total Loans | 3,930,746 | 2,525,044 |
Rating, Grade 4- Fair [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 1,230,515 | 959,978 |
Rating, Grade 5a- Watch [Member] | ||
Total Loans | 8,013,312 | 3,736,557 |
Rating, Grade 5a- Watch [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 217,295 | 392,644 |
Rating, Grade 5a- Watch [Member] | Construction Loans [Member] | ||
Total Loans | 1,097,222 | 1,135,991 |
Rating, Grade 5a- Watch [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 4,791,317 | 1,411,604 |
Rating, Grade 5a- Watch [Member] | Residential Loans [Member] | ||
Total Loans | 1,263,077 | 795,450 |
Rating, Grade 5a- Watch [Member] | Agricultural Loans [Member] | ||
Total Loans | 638,402 | 0 |
Rating, Grade 5a- Watch [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 5,999 | 868 |
Rating, Grade 5b- OAEM [Member] | ||
Total Loans | 2,331,687 | 3,656,106 |
Rating, Grade 5b- OAEM [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 560,678 | 38,414 |
Rating, Grade 5b- OAEM [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5b- OAEM [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 523,596 | 590,011 |
Rating, Grade 5b- OAEM [Member] | Residential Loans [Member] | ||
Total Loans | 1,233,611 | 1,240,299 |
Rating, Grade 5b- OAEM [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 1,755,510 |
Rating, Grade 5b- OAEM [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 13,802 | 31,872 |
Rating, Grade 6- Substandard [Member] | ||
Total Loans | 5,267,769 | 5,298,732 |
Rating, Grade 6- Substandard [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 6,273 | 212,198 |
Rating, Grade 6- Substandard [Member] | Construction Loans [Member] | ||
Total Loans | 141,456 | 165,355 |
Rating, Grade 6- Substandard [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 879,674 | 1,041,210 |
Rating, Grade 6- Substandard [Member] | Residential Loans [Member] | ||
Total Loans | 3,155,625 | 3,660,179 |
Rating, Grade 6- Substandard [Member] | Agricultural Loans [Member] | ||
Total Loans | 1,073,066 | 175,718 |
Rating, Grade 6- Substandard [Member] | Consumer And Other Loans [Member] | ||
Total Loans | 11,675 | 44,072 |
Rating, Grade 7- Doubtful [Member] | ||
Total Loans | 31,388 | 33,964 |
Rating, Grade 7- Doubtful [Member] | Commercial, Financial And Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Residential Loans [Member] | ||
Total Loans | 31,388 | 33,964 |
Rating, Grade 7- Doubtful [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Consumer And Other Loans [Member] | ||
Total Loans | $ 0 | $ 0 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses - Schedule of Changes in Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans and Leases Receivable, Allowance [Abstract] | |||
Beginning balance | $ 3,114,151 | $ 3,077,561 | $ 2,844,903 |
Provisions charged to operations | 141,300 | 330,000 | 420,000 |
Loans charged off | (319,200) | (341,377) | (233,842) |
Recoveries | 95,991 | 47,967 | 46,500 |
Balance at end of period | $ 3,032,242 | $ 3,114,151 | $ 3,077,561 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses Methodology (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Beginning balance | $ 3,114,151 | $ 3,077,561 | $ 2,844,903 |
Charge-offs | 319,200 | 341,377 | 233,842 |
Recoveries | 95,991 | 47,967 | 46,500 |
Net charge-offs | 223,209 | 293,410 | |
Provisions charged to operations | 141,300 | 330,000 | 420,000 |
Individually evaluated for impairment | 304,114 | 478,814 | |
Collectively evaluated for impairment | 2,728,128 | 2,635,337 | |
Balance at end of period | 3,032,242 | 3,114,151 | 3,077,561 |
Individually evaluated for impairment | 11,011,051 | 8,653,022 | |
Collectively evaluated for impairment | 239,794,330 | 215,772,716 | |
Balance at end of period | 250,805,381 | 224,425,738 | |
Commercial, Financial And Agricultural [Member] | |||
Beginning balance | 299,850 | 297,546 | |
Charge-offs | 263,809 | 37,186 | |
Recoveries | 42,253 | 11,957 | |
Net charge-offs | 221,556 | 25,229 | |
Provisions charged to operations | 66,487 | 27,533 | |
Individually evaluated for impairment | 0 | 99,067 | |
Collectively evaluated for impairment | 144,781 | 200,783 | |
Balance at end of period | 144,781 | 299,850 | 297,546 |
Individually evaluated for impairment | 0 | 202,323 | |
Collectively evaluated for impairment | 58,173,187 | 47,659,045 | |
Balance at end of period | 58,173,187 | 47,861,368 | |
Construction Real Estate [Member] | |||
Beginning balance | 1,043,083 | 1,032,053 | |
Charge-offs | 0 | 120,800 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 120,800 | |
Provisions charged to operations | 0 | 131,830 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,043,083 | 1,043,083 | |
Balance at end of period | 1,043,083 | 1,043,083 | 1,032,053 |
Individually evaluated for impairment | 1,012,831 | 1,066,771 | |
Collectively evaluated for impairment | 18,818,239 | 11,190,414 | |
Balance at end of period | 19,831,070 | 12,257,185 | |
Commercial Real Estate [Member] | |||
Beginning balance | 1,192,098 | 1,192,098 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Provisions charged to operations | 0 | 0 | |
Individually evaluated for impairment | 212,283 | 240,899 | |
Collectively evaluated for impairment | 979,815 | 951,199 | |
Balance at end of period | 1,192,098 | 1,192,098 | 1,192,098 |
Individually evaluated for impairment | 5,414,491 | 2,623,475 | |
Collectively evaluated for impairment | 80,362,868 | 74,292,319 | |
Balance at end of period | 85,777,359 | 76,915,794 | |
Residential Real Estate [Member] | |||
Beginning balance | 312,822 | 301,169 | |
Charge-offs | 33,238 | 157,744 | |
Recoveries | 22,047 | 30,247 | |
Net charge-offs | 11,191 | 127,497 | |
Provisions charged to operations | 80,260 | 139,150 | |
Individually evaluated for impairment | 91,831 | 129,060 | |
Collectively evaluated for impairment | 290,060 | 183,762 | |
Balance at end of period | 381,891 | 312,822 | 301,169 |
Individually evaluated for impairment | 2,896,953 | 3,415,987 | |
Collectively evaluated for impairment | 65,072,166 | 65,888,261 | |
Balance at end of period | 67,969,119 | 69,304,248 | |
Agricultural Real Estate [Member] | |||
Beginning balance | 86,656 | 76,868 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Provisions charged to operations | 0 | 9,788 | |
Individually evaluated for impairment | 0 | 9,788 | |
Collectively evaluated for impairment | 86,656 | 76,868 | |
Balance at end of period | 86,656 | 86,656 | 76,868 |
Individually evaluated for impairment | 1,682,207 | 1,317,256 | |
Collectively evaluated for impairment | 13,938,059 | 13,678,820 | |
Balance at end of period | 15,620,266 | 14,996,076 | |
Consumer And Other [Member] | |||
Beginning balance | 179,642 | 177,827 | |
Charge-offs | 22,153 | 25,647 | |
Recoveries | 31,691 | 5,763 | |
Net charge-offs | (9,538) | 19,884 | |
Provisions charged to operations | (5,447) | 21,699 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 183,733 | 179,642 | |
Balance at end of period | 183,733 | 179,642 | $ 177,827 |
Individually evaluated for impairment | 4,569 | 27,210 | |
Collectively evaluated for impairment | 3,429,811 | 3,063,857 | |
Balance at end of period | $ 3,434,380 | $ 3,091,067 |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses - Impaired Loans With Specific Reserves and Recorded Balance of Related Loans (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans and Leases Receivable, Allowance [Abstract] | |||
Allowance for loss on impaired loans | $ 304,114 | $ 478,814 | $ 469,302 |
Recorded balance of impaired loans | $ 5,558,615 | $ 4,126,957 | $ 2,997,359 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of premises and equipment | $ 961,964 | $ 890,812 | $ 897,849 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 3,089,352 | $ 3,089,352 |
Building | 13,396,340 | 13,326,516 |
Furniture and equipment | 9,006,056 | 8,933,200 |
Premises and equipment, gross | 25,491,748 | 25,349,068 |
Less accumulated depreciation | (14,334,304) | (13,592,801) |
Total | $ 11,157,444 | $ 11,756,267 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible assets amortization period | 4 years |
Core Deposits Premiums [Member] | Minimum [Member] | |
Intangible assets amortization period | 4 years |
Intangible Assets - Summary of
Intangible Assets - Summary of Inatngible Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total intangible assets | $ 50,781 | $ 66,406 |
Account Relationships [Member] | ||
Total intangible assets | $ 50,781 | $ 66,406 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net carrying amount | $ 50,781 | $ 66,406 | |
Amortization expense | 15,625 | 44,931 | $ 215,700 |
Account Relationships [Member] | |||
Net carrying amount | 50,781 | $ 66,406 | |
Account Relationships [Member] | 2015 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 74,219 | ||
Net carrying amount | 50,781 | ||
Amortization expense | 15,625 | ||
Account Relationships [Member] | 2016 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 89,844 | ||
Net carrying amount | 35,156 | ||
Amortization expense | 15,625 | ||
Account Relationships [Member] | 2017 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 105,469 | ||
Net carrying amount | 19,531 | ||
Amortization expense | 15,625 | ||
Account Relationships [Member] | 2018 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 121,094 | ||
Net carrying amount | 3,906 | ||
Amortization expense | 15,625 | ||
Account Relationships [Member] | 2019 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 125,000 | ||
Net carrying amount | 0 | ||
Amortization expense | $ 3,906 |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits: | ||
Overdraft deposits reclassified as loans | $ 62,216 | $ 79,935 |
Certificates of deposit totaling | 10,060,028 | |
Cash fdic insured amount | $ 250,000 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Certificates of Deposits (Details) | Dec. 31, 2015USD ($) |
Maturities of certificates of deposit | $ 75,917,168 |
2016 [Member] | |
Maturities of certificates of deposit | 54,751,692 |
2017 [Member] | |
Maturities of certificates of deposit | 16,103,016 |
2018 [Member] | |
Maturities of certificates of deposit | 4,980,959 |
2019 [Member] | |
Maturities of certificates of deposit | 66,595 |
2020 And There After [Member] | |
Maturities of certificates of deposit | $ 14,906 |
Short-Term Borrowed Funds (Deta
Short-Term Borrowed Funds (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Unused federal funds | $ 88,000,000 | |
Fair value of FHLB advances | 35,964,000 | $ 27,621,000 |
Other Short Term Borrowed Funds [Member] | ||
Fair value of FHLB advances | $ 7,590,476 | $ 5,133,333 |
FHLB advances, interest rate | 1.22% | 1.08% |
Short-Term Borrowed Funds - Sum
Short-Term Borrowed Funds - Summary of FHLB (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Average balance during the year | $ 7,028,679 | $ 8,117,476 |
Average interest rate during the year | 0.96% | 2.09% |
Maximum month-end balance during the year | $ 10,133,333 | $ 12,133,333 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Pledged to secure | $ 44,138,262 | $ 34,813,653 |
FHLB Stock held on membership | 336,300 | 336,000 |
FHLB Stock held on advances | 1,532,900 | $ 1,224,000 |
Unused lines of credit | 67,300,000 | |
Maturities of long term debt convertible | 10,000,000 | |
Two Advances [Member] | ||
Maturities of long term debt convertible | $ 10,000,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total long-term debt | $ 28,476,190 | $ 22,066,667 |
Advance From FHLB With A 3.39% Fixed Rate Of Interest Maturing August 20, 2018 [Member] | ||
Total long-term debt | 5,000,000 | 5,000,000 |
Advance From FHLB With A 2.78% Fixed Rate of Interest Maturing September 10, 2018 [Member] | ||
Total long-term debt | 5,000,000 | 5,000,000 |
Advance From FHLB With 1.43% Fixed Rate of Interest With Annual Installment Payments Maturing September 4, 2018 [Member] | ||
Total long-term debt | 3,600,000 | 5,400,000 |
Advance From FHLB With 0.89% Fixed Rate Of Interest With Annual Installment Payments Maturing July 24, 2017 [Member] | ||
Total long-term debt | 3,333,333 | 6,666,667 |
Advance From FHLB with 1.25% Fixed Rate Of Interest With Annual Installment Payments Maturing September 30, 2020 [Member] | ||
Total long-term debt | 6,400,000 | 0 |
Advance From FHLB With 1.94% Fixed Rate Of Interest With Annual Installment Payments Maturing December 16, 2022 [Member] | ||
Total long-term debt | $ 5,142,857 | $ 0 |
Long-Term Debt - Schedule of 76
Long-Term Debt - Schedule of Long-Term Debt (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Advance From FHLB With A 3.39% Fixed Rate Of Interest Maturing August 20, 2018 [Member] | ||
Long term debt interest rate | 3.39% | 3.39% |
Long term debt maturity date | Aug. 20, 2018 | Aug. 20, 2018 |
Advance From FHLB With A 2.78% Fixed Rate of Interest Maturing September 10, 2018 [Member] | ||
Long term debt interest rate | 2.78% | 2.78% |
Long term debt maturity date | Sep. 10, 2018 | Sep. 10, 2018 |
Advance From FHLB With 1.43% Fixed Rate of Interest With Annual Installment Payments Maturing September 4, 2018 [Member] | ||
Long term debt interest rate | 1.43% | 1.43% |
Long term debt maturity date | Sep. 4, 2018 | Sep. 4, 2018 |
Advance From FHLB With 0.89% Fixed Rate Of Interest With Annual Installment Payments Maturing July 24, 2017 [Member] | ||
Long term debt interest rate | 0.89% | 0.89% |
Long term debt maturity date | Jul. 24, 2017 | Jul. 24, 2017 |
Advance From FHLB with 1.25% Fixed Rate Of Interest With Annual Installment Payments Maturing September 30, 2020 [Member] | ||
Long term debt interest rate | 1.25% | |
Long term debt maturity date | Sep. 30, 2022 | |
Advance From FHLB With 1.94% Fixed Rate Of Interest With Annual Installment Payments Maturing December 16, 2022 [Member] | ||
Long term debt interest rate | 1.94% | |
Long term debt maturity date | Dec. 16, 2022 |
Long Term Debt - Schedule of De
Long Term Debt - Schedule of Debt Maturities (Details) | Dec. 31, 2015USD ($) | |
Long Term Debt - Schedule Of Debt Maturities Details | ||
2,016 | $ 0 | |
2,017 | 7,590,476 | |
2,018 | 13,400,000 | [1] |
2,019 | 3,314,286 | |
2,020 | 1,600,000 | |
Later years | 2,571,428 | |
Total long-term debt | $ 28,476,190 | |
[1] | Fixed rate advances with convertible options of $10,000,000 |
Long Term Debt - Schedule of 78
Long Term Debt - Schedule of Debt Maturities (Details) (Parenthetical) | Dec. 31, 2015USD ($) |
Long Term Debt - Schedule Of Debt Maturities Details | |
Fixed rate advances with convertible options | $ 10,000,000 |
Employee Benefits and Retirem79
Employee Benefits and Retirement Plans (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase decrease in accrued pension liability | $ 1,032,035 | $ 55,700 | |
Changes to other comprehensive income (loss) on pre-tax basis | (681,143) | 36,762 | |
Decreased in fair value of plan assets | $ 469,408 | ||
Targeted investment portfolio allocated | 30.00% | ||
Targeted investment portfolio is allocated, fixed-income investments, minimum | 50.00% | ||
Targeted investment portfolio is allocated, fixed-income investments, maximum | 90.00% | ||
Investments | $ 300,000,000 | ||
Expected contribute from employer | 500,000 | 606,000 | $ 775,000 |
Estimated amortization amounts, net loss | 657,260 | ||
Expense incurred | $ 927,935 | $ 308,124 | 655,310 |
Stock options exercise period | 10 years | ||
Common stock authorized for issuance | 196,680 | ||
Southwest Georgia Bank 401(K) Plan [Member] | |||
Employee contributions | $ 188,338 | $ 202,233 | 205,932 |
Employee Stock Ownership Plan [Member] | |||
Expected contribute from employer | $ 294,642 | 321,000 | 275,000 |
ESOP holds Corporation's outstanding common stock | 300,809 | ||
Number of shares are allocated to participants | 276,212 | ||
Unreleased shares are pledged as collateral | 24,597 | ||
Long-term debt incurred from repurchasing participants' shares | $ 363,000 | ||
Directors and Executive Officers Stock Purchase Plan [Member] | |||
Employee contributions | 900 | ||
Expense incurred | $ 282,600 | $ 287,150 | $ 272,000 |
Dividend Reinvestment And Share Purchase Plan [Member] | |||
Reinvestment of common stock dividends, voluntary cash payments description | not less than $5 nor more than $5,000 per month | ||
Shares issued through the plan | 6,702 | 6,503 | 5,381 |
Shares issued at an average price per share | $ 14.73 | $ 13.70 | $ 10.73 |
2013 Omnibus Incentive Plan [Member] | |||
Common stock authorized for issuance | 125,000 | ||
Equity Securities [Member] | |||
Targeted investment portfolio allocated | 20.00% |
Employee Benefits And Retirem80
Employee Benefits And Retirement Plans - Schedule of Computed Benefit Obligations and Net Assets and Related Changes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Benefit obligation at beginning of year | $ 13,322,751 | $ 13,308,069 | $ 12,929,816 |
Service cost | 0 | 0 | 0 |
Interest cost | 714,604 | 727,305 | 697,704 |
Amendments | 0 | 0 | 0 |
Benefits paid | (1,079,912) | (1,020,747) | (974,761) |
Other - net | 927,935 | 308,124 | 655,310 |
Benefit obligation at end of year | 13,885,378 | 13,322,751 | 13,308,069 |
Fair value of plan assets at beginning of year | 11,889,678 | 11,819,296 | 11,249,592 |
Actual return on plan assets | 110,504 | 485,129 | 769,465 |
Employer contribution | 500,000 | 606,000 | 775,000 |
Benefits paid. | (1,079,912) | (1,020,747) | (974,761) |
Fair value of plan assets at end of year | 11,420,270 | 11,889,678 | 11,819,296 |
Funded status | (2,465,108) | (1,433,073) | (1,488,773) |
Unrecognized net actuarial (gain)/loss | 0 | 0 | 0 |
Unrecognized prior service cost | 0 | 0 | 0 |
Pension liability included in other liabilities | (2,465,108) | (1,433,073) | (1,488,773) |
Accumulated benefit obligation | $ 13,885,378 | $ 13,322,751 | $ 13,308,069 |
Employee Benefits and Retirem81
Employee Benefits and Retirement Plans - Amount Recognized in Consolidated Balance Sheet (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Accrued Pension | $ 2,465,108 | $ 1,433,073 | $ 1,488,773 |
Deferred tax assets | 838,137 | 487,245 | 506,183 |
Accumulated other comprehensive income | 1,626,971 | 945,828 | 982,590 |
Total | 2,465,108 | 1,433,073 | 1,488,773 |
Service cost | 0 | 0 | 0 |
Interest cost on benefit obligation | 714,604 | 727,305 | 697,704 |
Expected return on plan assets | (928,160) | (932,417) | (875,553) |
Other - net | 448,707 | 471,185 | 479,567 |
Net periodic pension cost | $ 235,151 | $ 266,073 | $ 301,718 |
Employee Benefits and Retirem82
Employee Benefits and Retirement Plans - Amounts Recognized in Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Net loss (gain) | $ 1,032,035 | $ (55,700) | $ (191,451) |
Prior service costs | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 1,032,035 | (55,700) | (191,451) |
Net periodic pension cost | 235,151 | 266,073 | 301,718 |
Total recognized in net periodic pension cost and other comprehensive income (loss) | $ 1,267,186 | $ 210,373 | $ 110,267 |
Employee Benefits and Retirem83
Employee Benefits and Retirement Plans - Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Discount rate | 5.75% | 5.60% |
Rate of compensation increase | 0.00% | 0.00% |
Employee Benefits and Retirem84
Employee Benefits and Retirement Plans - Assumptions Used to Determine Net Periodic Pension Cost(Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate | 5.60% | 5.70% | 5.50% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Employee Benefits and Retirem85
Employee Benefits and Retirement Plans - Pension Asset Allocation and Fair Value Measurement (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity | $ 3,236,166 | $ 2,754,951 | ||
Equity, percentage | 28.00% | 23.00% | ||
Fixed income | $ 4,268,825 | $ 4,812,463 | ||
Fixed income, percentage | 37.00% | 41.00% | ||
Total | $ 7,504,991 | $ 7,567,414 | ||
Total, percentage | 65.00% | 64.00% | ||
Certificates of deposit | $ 3,257,418 | $ 3,260,260 | ||
Certificates of deposits, percentage | 29.00% | 27.00% | ||
Cash and cash equivalent | $ 657,861 | $ 1,062,004 | ||
Cash and cash equivalents, percentage | 6.00% | 9.00% | ||
Total | $ 3,915,279 | $ 4,322,264 | ||
Total, percentage | 35.00% | 36.00% | ||
Fair value of plan assets | $ 11,420,270 | $ 11,889,678 | $ 11,819,296 | $ 11,249,592 |
Fair value of plan assets, percentage | 100.00% | 100.00% | ||
Level 1 [Member] | ||||
Equity | $ 3,236,166 | $ 2,754,951 | ||
Fixed income | 4,268,825 | 4,812,463 | ||
Total | 7,504,991 | 7,567,414 | ||
Certificates of deposit | 3,257,418 | 3,260,260 | ||
Cash and cash equivalent | 657,861 | 1,062,004 | ||
Total | 3,915,279 | 4,322,264 | ||
Fair value of plan assets | $ 11,420,270 | $ 11,889,678 |
Employee Benefits and Retirem86
Employee Benefits and Retirement Plans - Estimated Future Benefit Payments (Details) | Dec. 31, 2015USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,016 | $ 1,186,000 |
2,017 | 1,166,000 |
2,018 | 1,150,000 |
2,019 | 1,134,000 |
2,020 | 1,117,000 |
Years 2021 - 2025 | $ 5,341,000 |
Employee Benefits and Retirem87
Employee Benefits and Retirement Plans - Summary of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Number of stock options granted | 0 | 0 | 0 |
Average fair value of stock options granted | $ 0 | $ 0 | $ 0 |
Number of option shares exercisable | 1,000 | 2,500 | 10,900 |
Average price of stock options exercisable | $ 19.95 | $ 21.21 | $ 20.19 |
Employee Benefits and Retirem88
Employee Benefits and Retirement Plans - Summary of Changes in Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
No. of Shares, Outstanding, Beginning balance | 2,500 | 10,900 | 10,900 |
No. of Shares, Granted | 0 | 0 | 0 |
No. of Shares, Expired | (1,500) | (8,400) | 0 |
No. of Shares, Exercised | 0 | 0 | 0 |
No. of Shares, Outstanding, Ending balance | 1,000 | 2,500 | 10,900 |
Average Price, Outstanding, Beginning balance | $ 21.21 | $ 20.19 | $ 20.19 |
Average Price, Granted | 0 | 0 | 0 |
Average Price, Expired | 22.05 | 19.89 | 0 |
Average Price, Exercised | 0 | 0 | 0 |
Average Price, Outstanding, Ending balance | $ 19.95 | $ 21.21 | $ 20.19 |
Employee Benefits and Retirem89
Employee Benefits and Retirement Plans - Summary of Stock Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Outstanding Stock Options | 1,000 | 2,500 | 10,900 | 10,900 |
Outstanding Stock Options, Weighted Average Exercise Price | $ 19.95 | $ 21.21 | $ 20.19 | $ 20.19 |
Exercisable Stock Options | 1,000 | 2,500 | 10,900 | |
Exercisable Stock Options, Weighted Average Exercise Price | $ 19.95 | $ 21.21 | $ 20.19 | |
Range 1 [Member] | ||||
Outstanding Stock Options, Exercise Price Range, minimum | 19 | |||
Outstanding Stock Options, Exercise Price Range, maximum | $ 20 | |||
Outstanding Stock Options | 1,000 | |||
Outstanding Stock Options, Weighted- Average Remaining Contractual Life | 6 months | |||
Outstanding Stock Options, Weighted Average Exercise Price | $ 19.95 | |||
Exercisable Stock Options | 1,000 | |||
Exercisable Stock Options, Weighted Average Exercise Price | $ 19.95 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current expense (benefit) | $ 900,543 | $ 435,943 | $ (120,244) | ||||||||
Deferred taxes (benefit) | (73,379) | 303,614 | 484,908 | ||||||||
Total income taxes | $ 206,000 | $ 205,000 | $ 216,000 | $ 200,000 | $ 149,000 | $ 208,000 | $ 196,000 | $ 186,000 | $ 827,164 | $ 739,557 | $ 364,664 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes at statutory income tax rate | $ 1,428,272 | $ 1,238,752 | $ 1,066,582 | ||||||||
Reductions in taxes resulting from exempt income | (540,861) | (454,779) | (464,631) | ||||||||
Other timing differences | (60,247) | (44,416) | (237,287) | ||||||||
Total income taxes | $ 206,000 | $ 205,000 | $ 216,000 | $ 200,000 | $ 149,000 | $ 208,000 | $ 196,000 | $ 186,000 | $ 827,164 | $ 739,557 | $ 364,664 |
Taxes at statutory income tax rate, percentage | 34.00% | 34.00% | 34.00% | ||||||||
Reductions in taxes resulting from exempt income, percentage | (12.90%) | (12.50%) | (14.80%) | ||||||||
Other timing differences, percentage | (1.40%) | (1.20%) | (7.60%) | ||||||||
Total income taxes, percentage | 19.70% | 20.30% | 11.60% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Nonqualified retirement plan | $ (7,229) | $ 0 | $ 0 |
Deferred gain on covered transaction | (24,154) | 0 | 0 |
Nonaccrual loan interest | (34,104) | 0 | 0 |
Foreclosed assets expenses | (4,577) | 74,130 | 297,004 |
Bad debt expense in excess of tax | 27,850 | (12,441) | (310,694) |
Realized impairment gain on equity securities | 13,233 | 163,625 | 509,736 |
Accretion of discounted bonds | 26,370 | 20,058 | 9,175 |
Gain on disposition of discounted bonds | (3,503) | (2,470) | (7,106) |
Book and tax depreciation difference | (67,265) | 60,712 | (13,207) |
Total deferred taxes | $ (73,379) | $ 303,614 | $ 484,908 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Nonaccrual loan interest | $ 34,104 | $ 0 |
Deferred gain on covered transaction | 24,154 | 0 |
Alternative minimum tax | 564,920 | 231,038 |
Foreclosed assets expenses | 6,205 | 1,628 |
Intangible asset amortization | 298,699 | 298,699 |
Bad debt expense in excess of tax | 1,030,959 | 1,058,809 |
Realized loss on other-than-temporarily impaired equity securities | 214,353 | 227,586 |
Nonqualified retirement plan | 0 | (7,229) |
Pension plan | 838,137 | 487,245 |
Total deferred tax assets | 3,011,531 | 2,297,776 |
Accretion on bonds and gain on discounted bonds | 59,005 | 36,138 |
Book and tax depreciation difference | 262,312 | 329,577 |
Unrealized gain on securities available for sale | 243,979 | 198,156 |
Total deferred tax liabilities | 565,296 | 563,871 |
Net deferred tax assets | $ 2,446,235 | $ 1,733,905 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Shares held in ESOP and trust | 300,809 | |
Number of shares pledged | 24,597 | |
Aggregate indebtedness to bank | $ 1,209,000 | $ 1,411,000 |
Loans from related parties | 1,952,000 | |
Repayment of loans | 1,866,000 | |
Directors and executive officers deposits | $ 2,586,000 | $ 3,394,000 |
Commitments, Contingent Liabi95
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Notes to Financial Statements | |||
Rental expense | $ 1,300 | $ 0 | $ 21,600 |
Commitments, Contingent Liabi96
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk - Contractual or Notional Amounts of Financial Instruments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Notes to Financial Statements | ||
Commitments to extend credit | $ 24,780,028 | $ 17,134,310 |
Standby letters of credit and financial guarantees | $ 960,000 | $ 975,000 |
Commitments, Contingent Liabi97
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk - Schedule of Future Cash Payments (Details) | Dec. 31, 2015USD ($) |
Notes to Financial Statements | |
Less than 1 Year | $ 22,035 |
1-3 Years | 10,296 |
4-5 Years | 10,296 |
After 5 Years | 0 |
Operating leases | $ 42,627 |
Fair Value Measurements and D98
Fair Value Measurements and Disclosures (Details Narrative) | Dec. 31, 2015 |
Minimum [Member] | |
Percentage of estimated selling cost range | 15.00% |
Percentage of nonaccrual impaired loan write down range | 80.00% |
Maximum [Member] | |
Percentage of estimated selling cost range | 20.00% |
Percentage of nonaccrual impaired loan write down range | 85.00% |
Fair Value Measurements and D99
Fair Value Measurements and Disclosures - Schedule of Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Government Agency securities | $ 42,642,322 | $ 45,492,925 |
State and municipal securities | 2,607,684 | 874,667 |
Residential mortgage-backed securities | 3,741,445 | 4,971,644 |
Corporate notes | 2,472,960 | 2,498,720 |
Equity securities | 12,000 | |
Total | 51,476,411 | 53,837,956 |
Level 1 [Member] | ||
U.S. Government Agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Corporate notes | 0 | 0 |
Equity securities | 0 | |
Total | 0 | 0 |
Level 2 [Member] | ||
U.S. Government Agency securities | 42,642,322 | 45,492,925 |
State and municipal securities | 2,607,684 | 874,667 |
Residential mortgage-backed securities | 3,741,445 | 4,971,644 |
Corporate notes | 2,472,960 | 2,498,720 |
Equity securities | 12,000 | |
Total | 51,476,411 | 53,837,956 |
Level 3 [Member] | ||
U.S. Government Agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Corporate notes | 0 | 0 |
Equity securities | 0 | |
Total | $ 0 | $ 0 |
Fair Value Measurements and 100
Fair Value Measurements and Disclosures - Schedule of Fair Value of Assets Recorded on a Nonrecurring Basis (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Foreclosed assets | $ 81,750 | $ 273,653 |
Impaired loans | 5,254,501 | 3,648,143 |
Total assets at fair value | 5,336,251 | 3,921,796 |
Level 1 [Member] | ||
Foreclosed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 [Member] | ||
Foreclosed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 [Member] | ||
Foreclosed assets | 81,750 | 273,653 |
Impaired loans | 5,254,501 | 3,648,143 |
Total assets at fair value | $ 5,336,251 | $ 3,921,796 |
Fair Value Measurements and 101
Fair Value Measurements and Disclosures - Schedule of Carrying and Estimated Fair Value of Assets and Liabilities Recorded at Fair Value (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $ 31,080,273 | $ 12,558,697 | $ 35,370,160 | $ 36,581,052 |
Certificates of deposit in other banks | 245,000 | 1,470,000 | ||
Investment securities available for sale | 51,476,411 | 53,837,956 | ||
Investment securities held to maturity | 60,888,804 | 61,587,819 | ||
Federal Home Loan Bank stock | 1,869,200 | 1,560,000 | ||
Loans, net | 247,754,093 | 221,285,666 | ||
Deposits | 339,015,843 | 309,973,592 | ||
FHLB advances | 35,964,000 | 27,621,000 | ||
Level 1 [Member] | ||||
Cash and cash equivalents | 31,080,000 | 12,559,000 | ||
Certificates of deposit in other banks | 245,000 | 1,470,000 | ||
Investment securities available for sale | 0 | 0 | ||
Investment securities held to maturity | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Deposits | 0 | 0 | ||
FHLB advances | 0 | 0 | ||
Level 2 [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit in other banks | 0 | 0 | ||
Investment securities available for sale | 51,476,000 | 53,838,000 | ||
Investment securities held to maturity | 62,199,000 | 62,841,000 | ||
Federal Home Loan Bank stock | 1,869,000 | 1,560,000 | ||
Loans, net | 243,460,000 | 217,651,000 | ||
Deposits | 339,337,000 | 310,234,000 | ||
FHLB advances | 35,964,000 | 27,621,000 | ||
Level 3 [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit in other banks | 0 | 0 | ||
Investment securities available for sale | 0 | 0 | ||
Investment securities held to maturity | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Loans, net | 5,255,000 | 3,648,000 | ||
Deposits | 0 | 0 | ||
FHLB advances | 0 | 0 | ||
Carrying Amount [Member] | ||||
Cash and cash equivalents | 31,080,000 | 12,559,000 | ||
Certificates of deposit in other banks | 245,000 | 1,470,000 | ||
Investment securities available for sale | 51,476,000 | 53,838,000 | ||
Investment securities held to maturity | 60,889,000 | 61,588,000 | ||
Federal Home Loan Bank stock | 1,869,000 | 1,560,000 | ||
Loans, net | 247,754,000 | 221,286,000 | ||
Deposits | 339,016,000 | 309,974,000 | ||
FHLB advances | $ 36,067,000 | $ 27,200,000 |
Supplemental Financial Data - S
Supplemental Financial Data - Schedule of Components of Operating Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Notes to Financial Statements | |||
Bank card interchange fees | $ 487,933 | $ 466,455 | $ 428,178 |
Other professional fees | 230,920 | 232,159 | 189,252 |
Directors & board committee fees | 336,458 | 349,597 | 274,881 |
FDIC insurance assessment | 240,223 | 234,555 | 257,036 |
Administrative expense - employee benefit plans | $ 224,021 | $ 207,299 | $ 172,354 |
Stockholders' Equity _ Regul103
Stockholders' Equity / Regulatory Matters (Details Narrative) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Net assets available for payment of dividends | $ 1,707,807 |
Bank reserves | 2,758,000 |
Investment in consolidated wholly-owned bank subsidiary, at equity | $ 33,146,744 |
Leverage ratio | 9.13% |
Subsidiary Bank [Member] | |
Parent companys investments in net assets | $ 31,438,937 |
Stockholders' Equity _ Regul104
Stockholders' Equity / Regulatory Matters - Summary of Leverage Ratio (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total capital (to risk- weighted assets), Ratio | 8.00% | |
Tier I capital (to risk- weighted assets), Ratio | 4.50% | |
Leverage (Tier I capital to average assets), Ratio | 9.13% | |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 6.00% | |
Southwest Georgia Financial Corporation [Member] | ||
Common equity Tier 1 (to risk-weighted assets) | $ 37,230,740 | |
Total capital (to risk- weighted assets), Actual Amount | 40,262,982 | $ 37,845,154 |
Tier I capital (to risk- weighted assets), Actual Amount | 37,230,740 | 34,830,148 |
Leverage (Tier I capital to average assets), Actual Amount | $ 37,230,740 | $ 34,830,148 |
Common equity Tier 1 (to risk-weighted assets), Ratio | 14.07% | |
Total capital (to risk- weighted assets), Ratio | 15.22% | 15.70% |
Tier I capital (to risk- weighted assets), Ratio | 14.07% | 14.45% |
Leverage (Tier I capital to average assets), Ratio | 9.13% | 9.14% |
Common equity Tier 1 (to risk-weighted assets), amount | $ 11,907,692 | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 21,169,230 | $ 19,288,109 |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 15,876,922 | 9,644,054 |
Leverage (Tier I capital to average assets), For Capital Adequacy Purposes, Amount | $ 16,316,153 | $ 15,246,906 |
Common equity Tier 1 (to risk-weighted assets), Ratio | 4.50% | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Leverage (Tier I capital to average assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Common equity Tier 1 (to risk-weighted assets) | $ 17,199,999 | |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 26,461,534 | $ 24,110,136 |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 21,169,230 | 14,466,082 |
Leverage (Tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 20,395,191 | $ 19,058,633 |
Common equity Tier 1 (to risk-weighted assets), amount | 6.50% | |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 6.00% |
Leverage (Tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Southwest Georgia Bank [Member] | ||
Common equity Tier 1 (to risk-weighted assets) | $ 34,279,795 | |
Total capital (to risk- weighted assets), Actual Amount | 37,312,037 | $ 36,510,112 |
Tier I capital (to risk- weighted assets), Actual Amount | 34,279,795 | 33,503,088 |
Leverage (Tier I capital to average assets), Actual Amount | $ 34,279,795 | $ 33,503,088 |
Common equity Tier 1 (to risk-weighted assets), Ratio | 12.99% | |
Total capital (to risk- weighted assets), Ratio | 14.14% | 15.18% |
Tier I capital (to risk- weighted assets), Ratio | 12.99% | 13.93% |
Leverage (Tier I capital to average assets), Ratio | 8.43% | 8.81% |
Common equity Tier 1 (to risk-weighted assets), amount | $ 11,874,310 | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 21,109,884 | $ 19,236,387 |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 15,832,413 | 9,618,193 |
Leverage (Tier I capital to average assets), For Capital Adequacy Purposes, Amount | $ 16,274,473 | $ 15,211,031 |
Common equity Tier 1 (to risk-weighted assets), Ratio | 4.50% | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Leverage (Tier I capital to average assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Common equity Tier 1 (to risk-weighted assets) | $ 17,151,781 | |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 26,387,355 | $ 24,045,483 |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 21,109,884 | 14,427,290 |
Leverage (Tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 20,343,091 | $ 19,013,789 |
Common equity Tier 1 (to risk-weighted assets), amount | 6.50% | |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 6.00% |
Leverage (Tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Parent Company Financial Data -
Parent Company Financial Data - Schedule of Balance Sheet Information of Parent Company (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment in consolidated wholly-owned bank subsidiary, at equity | $ 33,146,744 | |||
Loans | 247,754,093 | $ 221,285,666 | ||
Total assets | 414,855,470 | 374,280,210 | $ 373,895,000 | |
Total liabilities | 378,757,780 | 339,944,828 | ||
Common stock, $1 par value, 5,000,000 shares authorized, 4,293,835 shares for 2015 and 2014 issued | 4,293,835 | 4,293,835 | ||
Retained earnings | 27,369,480 | 25,014,980 | ||
Accumulated other comprehensive income | (1,153,363) | (561,171) | ||
Treasury stock, at cost, 1,745,998 for 2015 and 2014 | (26,113,795) | (26,113,795) | ||
Total stockholders' equity | 36,097,690 | 34,335,382 | 31,419,991 | $ 29,875,008 |
Total liabilities and stockholders' equity | 414,855,470 | 374,280,210 | ||
Southwest Georgia Financial Corporation [Member] | ||||
Cash | 1,919,000 | 676,000 | 623,000 | 542,000 |
Investment in consolidated wholly-owned bank subsidiary, at equity | 33,147,000 | 33,008,000 | ||
Loans | 363,000 | 16,000 | ||
Other assets | 669,000 | 635,000 | ||
Total assets | 36,098,000 | 34,335,000 | ||
Total liabilities | 0 | 0 | ||
Common stock, $1 par value, 5,000,000 shares authorized, 4,293,835 shares for 2015 and 2014 issued | 4,294,000 | 4,294,000 | ||
Additional paid-in capital | 31,701,000 | 31,701,000 | ||
Retained earnings | 27,370,000 | 25,015,000 | $ 22,926,000 | $ 20,664,000 |
Accumulated other comprehensive income | (1,153,000) | (561,000) | ||
Treasury stock, at cost, 1,745,998 for 2015 and 2014 | (26,114,000) | (26,114,000) | ||
Total stockholders' equity | 36,098,000 | 34,335,000 | ||
Total liabilities and stockholders' equity | $ 36,098,000 | $ 34,335,000 |
Parent Company Financial Dat106
Parent Company Financial Data - Schedule of Balance Sheet Information of Parent Company (Details) (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 4,293,835 | 4,293,835 |
Treasury stock, at cost | $ 1,745,998 | $ 1,745,998 |
Southwest Georgia Financial Corporation [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 4,293,835 | 4,293,835 |
Treasury stock, at cost | $ 1,745,998 | $ 1,745,998 |
Parent Company Financial Dat107
Parent Company Financial Data - Schedule of Statements of Operations Information of Parent Company (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income before income taxes and equity in Undistributed income of bank subsidiary | $ 1,049,000 | $ 1,062,000 | $ 1,081,000 | $ 1,009,000 | $ 811,000 | $ 1,012,000 | $ 933,000 | $ 887,000 | |||
Income tax expense (benefit) - allocated from consolidated return | 206,000 | 205,000 | 216,000 | 200,000 | 149,000 | 208,000 | 196,000 | 186,000 | $ 827,164 | $ 739,557 | $ 364,664 |
Net income | 843,000 | $ 857,000 | $ 865,000 | 809,000 | 662,000 | $ 804,000 | $ 737,000 | 701,000 | 3,373,635 | 2,903,830 | 2,772,344 |
Retained earnings - beginning of year | 25,014,980 | 25,014,980 | |||||||||
Retained earnings - end of year | 27,369,480 | 25,014,980 | 27,369,480 | 25,014,980 | |||||||
Southwest Georgia Financial Corporation [Member] | |||||||||||
Dividend received from bank subsidiary | 2,685,000 | 1,000,000 | 667,000 | ||||||||
Interest income | 12,000 | 10,000 | 5,000 | ||||||||
Total income | 2,697,000 | 1,010,000 | 672,000 | ||||||||
Other | 141,000 | 166,000 | 144,000 | ||||||||
Income before income taxes and equity in Undistributed income of bank subsidiary | 2,556,000 | 844,000 | 528,000 | ||||||||
Income tax expense (benefit) - allocated from consolidated return | (87,000) | (88,000) | (66,000) | ||||||||
Income before equity in undistributed income of subsidiary | 2,643,000 | 932,000 | 594,000 | ||||||||
Equity in undistributed income of subsidiary | 731,000 | 1,972,000 | 2,178,000 | ||||||||
Net income | 3,374,000 | 2,904,000 | 2,772,000 | ||||||||
Retained earnings - beginning of year | $ 25,015,000 | $ 22,926,000 | 25,015,000 | 22,926,000 | 20,664,000 | ||||||
Cash dividend declared | (1,019,000) | (815,000) | (510,000) | ||||||||
Retained earnings - end of year | $ 27,370,000 | $ 25,015,000 | $ 27,370,000 | $ 25,015,000 | $ 22,926,000 |
Parent Company Financial Dat108
Parent Company Financial Data - Schedule of Cash Flow Information of Parent Company (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 843,000 | $ 857,000 | $ 865,000 | $ 809,000 | $ 662,000 | $ 804,000 | $ 737,000 | $ 701,000 | $ 3,373,635 | $ 2,903,830 | $ 2,772,344 |
Net cash provided for operating activities | 4,470,467 | 4,414,361 | 3,987,180 | ||||||||
Net cash provided (used) for investing activities | (22,838,674) | (24,149,569) | (30,360,984) | ||||||||
Net cash used for financing activities | 36,889,783 | (3,076,255) | 25,162,912 | ||||||||
Increase in cash | 18,521,576 | (22,811,463) | (1,210,892) | ||||||||
Southwest Georgia Financial Corporation [Member] | |||||||||||
Net income | 3,374,000 | 2,904,000 | 2,772,000 | ||||||||
Equity (deficit) in undistributed earnings of Subsidiary | (731,000) | (1,972,000) | (2,178,000) | ||||||||
Other assets | (34,000) | (68,000) | (43,000) | ||||||||
Net cash provided for operating activities | 2,609,000 | 864,000 | 551,000 | ||||||||
Net change in loans | (347,000) | 4,000 | 40,000 | ||||||||
Net cash provided (used) for investing activities | (347,000) | 4,000 | 40,000 | ||||||||
Cash dividend paid to stockholders | (1,019,000) | (815,000) | (510,000) | ||||||||
Net cash used for financing activities | (1,019,000) | (815,000) | (510,000) | ||||||||
Increase in cash | 1,243,000 | 53,000 | 81,000 | ||||||||
Cash - beginning of year | $ 676,000 | $ 623,000 | 676,000 | 623,000 | 542,000 | ||||||
Cash - end of year | $ 1,919,000 | $ 676,000 | $ 1,919,000 | $ 676,000 | $ 623,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 843,000 | $ 857,000 | $ 865,000 | $ 809,000 | $ 662,000 | $ 804,000 | $ 737,000 | $ 701,000 | $ 3,373,635 | $ 2,903,830 | $ 2,772,344 |
Weighted Average Shares, Basic | 2,547,837 | 2,547,837 | 2,547,837 | ||||||||
Per Share Amount, Basic | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.32 | $ 0.26 | $ 0.32 | $ 0.28 | $ 0.28 | $ 1.32 | $ 1.14 | $ 1.09 |
Weighted Average Shares, Diluted | 2,547,837 | 2,547,837 | 2,547,837 | ||||||||
Per Share Amount, Diluted | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.32 | $ 0.26 | $ 0.32 | $ 0.28 | $ 0.28 | $ 1.32 | $ 1.14 | $ 1.09 |
Quarterly Data - Summary of Qua
Quarterly Data - Summary of Quarterly Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 3,946,000 | $ 3,889,000 | $ 3,898,000 | $ 3,695,000 | $ 3,710,000 | $ 3,722,000 | $ 3,726,000 | $ 3,554,000 | |||
Interest expense | 353,000 | 325,000 | 324,000 | 315,000 | 314,000 | 306,000 | 334,000 | 401,000 | $ 1,316,808 | $ 1,355,459 | $ 1,662,957 |
Net interest income | 3,593,000 | 3,564,000 | 3,574,000 | 3,380,000 | 3,396,000 | 3,416,000 | 3,392,000 | 3,153,000 | 14,111,519 | 13,356,745 | 12,811,906 |
Provision for loan losses | 0 | 51,000 | 45,000 | 45,000 | 75,000 | 75,000 | 75,000 | 105,000 | 141,300 | 330,000 | 420,000 |
Net interest income after provision for loan losses | 3,593,000 | 3,513,000 | 3,529,000 | 3,335,000 | 3,321,000 | 3,341,000 | 3,317,000 | 3,048,000 | 13,970,219 | 13,026,745 | 12,391,906 |
Noninterest income | 1,046,000 | 1,008,000 | 1,045,000 | 1,161,000 | 1,115,000 | 1,283,000 | 1,246,000 | 1,342,000 | 4,260,177 | 4,986,438 | 5,091,171 |
Noninterest expenses | 3,590,000 | 3,459,000 | 3,493,000 | 3,487,000 | 3,625,000 | 3,612,000 | 3,630,000 | 3,503,000 | 14,029,597 | 14,369,796 | 14,346,069 |
Income before income taxes | 1,049,000 | 1,062,000 | 1,081,000 | 1,009,000 | 811,000 | 1,012,000 | 933,000 | 887,000 | |||
Provision for income taxes | 206,000 | 205,000 | 216,000 | 200,000 | 149,000 | 208,000 | 196,000 | 186,000 | 827,164 | 739,557 | 364,664 |
Net income | $ 843,000 | $ 857,000 | $ 865,000 | $ 809,000 | $ 662,000 | $ 804,000 | $ 737,000 | $ 701,000 | $ 3,373,635 | $ 2,903,830 | $ 2,772,344 |
Basic | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.32 | $ 0.26 | $ 0.32 | $ 0.28 | $ 0.28 | $ 1.32 | $ 1.14 | $ 1.09 |
Diluted | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.32 | $ 0.26 | $ 0.32 | $ 0.28 | $ 0.28 | $ 1.32 | $ 1.14 | $ 1.09 |
Segment Reporting (Details Narr
Segment Reporting (Details Narrative) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Percentage of revenues derives from singal external customer | 10.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Interest Income (expense) external customers | $ 14,112,000 | $ 13,357,000 | $ 12,812,000 | ||||||||
Net intersegment interest income (expense) | 0 | 0 | 0 | ||||||||
Net Interest Income | $ 3,593,000 | $ 3,564,000 | $ 3,574,000 | $ 3,380,000 | $ 3,396,000 | $ 3,416,000 | $ 3,392,000 | $ 3,153,000 | 14,111,519 | 13,356,745 | 12,811,906 |
Provision for Loan Losses | 0 | 51,000 | 45,000 | 45,000 | 75,000 | 75,000 | 75,000 | 105,000 | 141,300 | 330,000 | 420,000 |
Noninterest Income (expense) external customers | 4,260,000 | 4,986,000 | 5,091,000 | ||||||||
Intersegment noninterest income (expense) | 0 | 0 | 0 | ||||||||
Total Noninterest Income | 1,046,000 | 1,008,000 | 1,045,000 | 1,161,000 | 1,115,000 | 1,283,000 | 1,246,000 | 1,342,000 | 4,260,177 | 4,986,438 | 5,091,171 |
Depreciation | 961,964 | 890,812 | 897,849 | ||||||||
Amortization of intangibles | 15,625 | 44,931 | 215,700 | ||||||||
Other Noninterest expenses | 2,831,433 | 2,878,991 | 2,650,599 | ||||||||
Total Noninterest expenses | 3,590,000 | 3,459,000 | 3,493,000 | 3,487,000 | 3,625,000 | 3,612,000 | 3,630,000 | 3,503,000 | 14,029,597 | 14,369,796 | 14,346,069 |
Pre-tax Income | 4,201,000 | 3,643,000 | 3,137,000 | ||||||||
Provision (benefit) for income taxes | 206,000 | 205,000 | 216,000 | 200,000 | 149,000 | 208,000 | 196,000 | 186,000 | 827,164 | 739,557 | 364,664 |
Net Income | 843,000 | $ 857,000 | $ 865,000 | $ 809,000 | 662,000 | $ 804,000 | $ 737,000 | $ 701,000 | 3,373,635 | 2,903,830 | 2,772,344 |
Assets | 414,855,470 | 374,280,210 | 414,855,470 | 374,280,210 | 373,895,000 | ||||||
Expenditures for Fixed Assets | 371,000 | 2,312,000 | 1,106,000 | ||||||||
Retail And Commercial Banking [Member] | |||||||||||
Net Interest Income (expense) external customers | 11,888,000 | 11,376,000 | 11,332,000 | ||||||||
Net intersegment interest income (expense) | 1,901,000 | 1,662,000 | 1,196,000 | ||||||||
Net Interest Income | 13,789,000 | 13,038,000 | 12,528,000 | ||||||||
Provision for Loan Losses | 141,000 | 330,000 | 420,000 | ||||||||
Noninterest Income (expense) external customers | 2,110,000 | 2,782,000 | 2,736,000 | ||||||||
Intersegment noninterest income (expense) | (6,000) | (4,000) | (3,000) | ||||||||
Total Noninterest Income | 2,104,000 | 2,778,000 | 2,733,000 | ||||||||
Depreciation | 767,000 | 698,000 | 674,000 | ||||||||
Amortization of intangibles | 0 | 28,000 | 182,000 | ||||||||
Other Noninterest expenses | 8,492,000 | 8,854,000 | 8,800,000 | ||||||||
Total Noninterest expenses | 9,259,000 | 9,580,000 | 9,656,000 | ||||||||
Pre-tax Income | 6,493,000 | 5,906,000 | 5,185,000 | ||||||||
Provision (benefit) for income taxes | 1,390,000 | 1,304,000 | 592,000 | ||||||||
Net Income | 5,103,000 | 4,602,000 | 4,593,000 | ||||||||
Assets | 453,406,000 | 404,679,000 | 453,406,000 | 404,679,000 | 394,034,000 | ||||||
Expenditures for Fixed Assets | 353,000 | 2,162,000 | 1,058,000 | ||||||||
Insurance Services [Member] | |||||||||||
Net Interest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Net intersegment interest income (expense) | 6,000 | 4,000 | 3,000 | ||||||||
Net Interest Income | 6,000 | 4,000 | 3,000 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 1,371,000 | 1,316,000 | 1,319,000 | ||||||||
Intersegment noninterest income (expense) | 6,000 | 4,000 | 3,000 | ||||||||
Total Noninterest Income | 1,377,000 | 1,320,000 | 1,322,000 | ||||||||
Depreciation | 31,000 | 31,000 | 30,000 | ||||||||
Amortization of intangibles | 16,000 | 16,000 | 16,000 | ||||||||
Other Noninterest expenses | 1,203,000 | 1,231,000 | 1,158,000 | ||||||||
Total Noninterest expenses | 1,250,000 | 1,278,000 | 1,204,000 | ||||||||
Pre-tax Income | 133,000 | 46,000 | 121,000 | ||||||||
Provision (benefit) for income taxes | 28,000 | 10,000 | 17,000 | ||||||||
Net Income | 105,000 | 36,000 | 104,000 | ||||||||
Assets | 1,287,000 | 1,411,000 | 1,287,000 | 1,411,000 | 1,256,000 | ||||||
Expenditures for Fixed Assets | 14,000 | 28,000 | 34,000 | ||||||||
Wealth Strategies [Member] | |||||||||||
Net Interest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Net intersegment interest income (expense) | (5,000) | (5,000) | (4,000) | ||||||||
Net Interest Income | (5,000) | (5,000) | (4,000) | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 700,000 | 651,000 | 601,000 | ||||||||
Intersegment noninterest income (expense) | 35,000 | 35,000 | 13,000 | ||||||||
Total Noninterest Income | 735,000 | 686,000 | 614,000 | ||||||||
Depreciation | 23,000 | 21,000 | 24,000 | ||||||||
Amortization of intangibles | 0 | 1,000 | 18,000 | ||||||||
Other Noninterest expenses | 717,000 | 666,000 | 648,000 | ||||||||
Total Noninterest expenses | 740,000 | 688,000 | 690,000 | ||||||||
Pre-tax Income | (10,000) | (7,000) | (80,000) | ||||||||
Provision (benefit) for income taxes | (10,000) | (10,000) | 104,000 | ||||||||
Net Income | 0 | 3,000 | (184,000) | ||||||||
Assets | 175,000 | 219,000 | 175,000 | 219,000 | 262,000 | ||||||
Expenditures for Fixed Assets | 0 | 1,000 | 5,000 | ||||||||
Financial Management [Member] | |||||||||||
Net Interest Income (expense) external customers | 2,212,000 | 1,972,000 | 1,475,000 | ||||||||
Net intersegment interest income (expense) | (1,902,000) | (1,661,000) | (1,195,000) | ||||||||
Net Interest Income | 310,000 | 311,000 | 280,000 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 78,000 | 234,000 | 388,000 | ||||||||
Intersegment noninterest income (expense) | 0 | 0 | 0 | ||||||||
Total Noninterest Income | 78,000 | 234,000 | 388,000 | ||||||||
Depreciation | 66,000 | 66,000 | 57,000 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 687,000 | 656,000 | 600,000 | ||||||||
Total Noninterest expenses | 753,000 | 722,000 | 657,000 | ||||||||
Pre-tax Income | (365,000) | (177,000) | 11,000 | ||||||||
Provision (benefit) for income taxes | (81,000) | (40,000) | 1,000 | ||||||||
Net Income | (284,000) | (137,000) | 10,000 | ||||||||
Assets | 149,830,000 | 139,175,000 | 149,830,000 | 139,175,000 | 140,877,000 | ||||||
Expenditures for Fixed Assets | 4,000 | 121,000 | 9,000 | ||||||||
Inter-segment Elimination [Member] | |||||||||||
Net Interest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Net intersegment interest income (expense) | 0 | 0 | 0 | ||||||||
Net Interest Income | 0 | 0 | 0 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Intersegment noninterest income (expense) | 0 | (35,000) | (13,000) | ||||||||
Total Noninterest Income | (35,000) | (35,000) | (13,000) | ||||||||
Depreciation | (35,000) | 0 | 0 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 0 | 0 | 0 | ||||||||
Total Noninterest expenses | 0 | 0 | 0 | ||||||||
Pre-tax Income | (35,000) | (35,000) | (13,000) | ||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | ||||||||
Net Income | (35,000) | (35,000) | (13,000) | ||||||||
Assets | (190,875,000) | (171,855,000) | (190,875,000) | (171,855,000) | (163,121,000) | ||||||
Expenditures for Fixed Assets | 0 | 0 | 0 | ||||||||
Other [Member] | |||||||||||
Net Interest Income (expense) external customers | 12,000 | 9,000 | 5,000 | ||||||||
Net intersegment interest income (expense) | 0 | 0 | 0 | ||||||||
Net Interest Income | 12,000 | 9,000 | 5,000 | ||||||||
Provision for Loan Losses | 0 | 0 | |||||||||
Noninterest Income (expense) external customers | 1,000 | 3,000 | 47,000 | ||||||||
Intersegment noninterest income (expense) | 0 | 0 | 0 | ||||||||
Total Noninterest Income | 1,000 | 3,000 | 47,000 | ||||||||
Depreciation | 75,000 | 75,000 | 113,000 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 1,953,000 | 2,027,000 | 2,026,000 | ||||||||
Total Noninterest expenses | 2,028,000 | 2,102,000 | 2,139,000 | ||||||||
Pre-tax Income | (2,015,000) | (2,090,000) | (2,087,000) | ||||||||
Provision (benefit) for income taxes | (500,000) | (525,000) | (349,000) | ||||||||
Net Income | (1,515,000) | (1,565,000) | (1,738,000) | ||||||||
Assets | $ 1,032,000 | $ 651,000 | 1,032,000 | 651,000 | 584,000 | ||||||
Expenditures for Fixed Assets | $ 0 | $ 0 | $ 0 |