Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | SOUTHWEST GEORGIA FINANCIAL CORP | |
Entity Central Index Key | 315,849 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 2,545,776 | |
Trading Symbol | SGB | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 14,607,412 | $ 11,143,494 |
Interest-bearing deposits in other banks | 10,911,080 | 22,994,927 |
Cash and cash equivalents | 25,518,492 | 34,138,421 |
Certificates of deposit in other banks | 1,985,000 | 1,985,000 |
Investment securities available for sale, at fair value | 58,576,205 | 54,263,261 |
Investment securities held to maturity (fair value approximates $36,935,137 and $45,147,800) | 36,960,598 | 44,590,841 |
Federal Home Loan Bank stock, at cost | 2,257,400 | 2,438,200 |
Total investment securities | 97,794,203 | 101,292,302 |
Loans | 366,662,213 | 330,191,311 |
Less: Unearned income | (17,490) | (17,921) |
Allowance for loan losses | (3,078,098) | (3,043,632) |
Loans, net | 363,566,625 | 327,129,758 |
Premises and equipment, net | 14,187,802 | 12,249,518 |
Bank property held for sale | 211,500 | 211,500 |
Foreclosed assets | 127,605 | 758,878 |
Intangible assets | 7,813 | 19,532 |
Bank owned life insurance | 6,676,559 | 6,553,318 |
Other assets | 5,293,921 | 4,734,148 |
Total assets | 515,369,520 | 489,072,375 |
Deposits: | ||
Interest bearing business checking | 26,346,953 | 0 |
NOW accounts | 20,241,049 | 25,871,273 |
Money Market | 157,630,966 | 129,040,471 |
Savings | 32,223,945 | 30,793,864 |
Certificates of deposit $250,000 and over | 24,624,727 | 22,662,235 |
Other time accounts | 65,019,359 | 60,969,445 |
Total interest-bearing deposits | 326,086,999 | 269,337,288 |
Noninterest-bearing deposits | 100,161,212 | 127,668,471 |
Total deposits | 426,248,211 | 397,005,759 |
Short-term borrowed funds | 12,171,429 | 17,971,429 |
Long-term debt | 30,600,000 | 29,057,143 |
Other liabilities | 3,899,309 | 3,895,058 |
Total liabilities | 472,918,949 | 447,929,389 |
Stockholders' equity: | ||
Common stock - $1 par value, 5,000,000 shares authorized, 2,545,776 shares issued | 2,545,776 | 4,293,835 |
Capital surplus | 7,206,799 | 31,701,533 |
Retained earnings | 35,653,285 | 33,020,030 |
Accumulated other comprehensive loss | (2,955,289) | (1,629,619) |
Treasury stock, at cost 0 shares for 2018 and 1,752,330 for 2017 | 0 | (26,242,793) |
Total stockholders' equity | 42,450,571 | 41,142,986 |
Total liabilities and stockholders' equity | $ 515,369,520 | $ 489,072,375 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 36,935,137 | $ 45,147,800 |
Certificates of deposit | $ 250,000 | $ 250,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,545,776 | 2,545,776 |
Treasury stock, at cost | $ 0 | $ 1,752,330 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | ||||
Interest and fees on loans | $ 4,876,093 | $ 4,169,805 | $ 13,641,165 | $ 11,995,851 |
Interest on taxable securities available for sale | 323,189 | 283,567 | 932,172 | 876,365 |
Interest on taxable securities held to maturity | 23,610 | 31,135 | 77,419 | 101,715 |
Interest on tax exempt securities | 270,316 | 301,712 | 840,399 | 933,590 |
Dividends | 44,560 | 26,152 | 112,055 | 72,531 |
Interest on deposits in other banks | 90,408 | 35,238 | 356,414 | 125,437 |
Interest on certificates of deposit in other banks | 11,822 | 11,822 | 35,081 | 23,058 |
Total interest income | 5,639,998 | 4,859,431 | 15,994,705 | 14,128,547 |
Interest expense: | ||||
Interest on deposits | 629,627 | 280,202 | 1,483,373 | 821,006 |
Interest on federal funds purchased | 1,085 | 409 | 1,093 | 1,064 |
Interest on other short-term borrowings | 105,803 | 61,556 | 338,996 | 114,050 |
Interest on long-term debt | 130,351 | 130,284 | 382,843 | 407,550 |
Total interest expense | 866,866 | 472,451 | 2,206,305 | 1,343,670 |
Net interest income | 4,773,132 | 4,386,980 | 13,788,400 | 12,784,877 |
Provision for loan losses | 249,000 | 75,000 | 604,500 | 225,000 |
Net interest income after provision for loan losses | 4,524,132 | 4,311,980 | 13,183,900 | 12,559,877 |
Noninterest income: | ||||
Service charges on deposit accounts | 245,682 | 259,949 | 736,641 | 787,061 |
Income from trust services | 56,420 | 54,407 | 178,271 | 163,840 |
Income from retail brokerage services | 89,510 | 84,194 | 274,698 | 280,928 |
Income from insurance services | 388,562 | 347,244 | 1,193,978 | 1,157,949 |
Income from mortgage banking services | 622 | 15,452 | 1,865 | 154,421 |
Net gain (loss) on sale or disposition of assets | (7,274) | 394 | (7,175) | (9,388) |
Net gain on sale of securities | 0 | 19,795 | 0 | 186,610 |
Other income | 203,781 | 187,445 | 653,494 | 631,127 |
Total noninterest income | 977,303 | 968,880 | 3,031,772 | 3,352,548 |
Noninterest expense: | ||||
Salaries and employee benefits | 2,431,229 | 2,335,463 | 7,160,476 | 6,953,403 |
Occupancy expense | 335,589 | 290,240 | 919,658 | 845,015 |
Equipment expense | 207,149 | 214,814 | 584,609 | 632,768 |
Data processing expense | 383,173 | 374,867 | 1,088,081 | 1,145,937 |
Amortization of intangible assets | 3,906 | 3,906 | 11,719 | 11,719 |
Other operating expenses | 787,500 | 848,901 | 2,511,495 | 2,348,324 |
Total noninterest expenses | 4,148,546 | 4,068,191 | 12,276,038 | 11,937,166 |
Income before income taxes | 1,352,889 | 1,212,669 | 3,939,634 | 3,975,259 |
Provision for income taxes | 209,320 | 261,140 | 416,009 | 885,001 |
Net income | $ 1,143,569 | $ 951,529 | $ 3,523,625 | $ 3,090,258 |
Earnings per share of common stock: | ||||
Net income, basic | $ 0.45 | $ 0.37 | $ 1.38 | $ 1.21 |
Net income, diluted | 0.45 | 0.37 | 1.38 | 1.21 |
Dividends paid per share | $ 0.12 | $ 0.11 | $ 0.35 | $ 0.33 |
Weighted average shares outstanding | 2,545,776 | 2,547,437 | 2,545,494 | 2,547,437 |
Diluted average shares outstanding | 2,545,776 | 2,547,437 | 2,545,494 | 2,547,437 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,143,569 | $ 951,529 | $ 3,523,625 | $ 3,090,258 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gain (loss) onĀ investment securities available for sale | (407,066) | 65,463 | (1,678,063) | 708,611 |
Reclassification adjustment for gain realized in income on securities available for sale | 0 | (19,795) | 0 | (186,610) |
Less: Tax effect | (85,484) | 15,527 | (352,393) | 177,481 |
Total other comprehensive income (loss), net of tax | (321,582) | 30,141 | (1,325,670) | 344,520 |
Total comprehensive income | $ 821,987 | $ 981,670 | $ 2,197,955 | $ 3,434,778 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 3,523,625 | $ 3,090,258 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 604,500 | 225,000 |
Depreciation | 722,855 | 655,275 |
Net amortization of investment securities | 276,474 | 302,635 |
Income on cash surrender value of bank owned life insurance | (123,241) | (100,165) |
Amortization of intangibles | 11,719 | 11,719 |
Loss on sale of foreclosed assets | 6,423 | 8,892 |
Net gain on sale of securities | 0 | (186,610) |
Net loss on disposal of other assets | 752 | 1,594 |
Change in: | ||
Other assets | (30,764) | (59,371) |
Other liabilities | 5,348 | 450,679 |
Net cash provided by operating activities | 4,997,691 | 4,399,906 |
Cash flows from investing activities: | ||
Proceeds from calls, paydowns and maturities of securities HTM | 8,260,907 | 7,487,642 |
Proceeds from calls, paydowns and maturities of securities AFS | 598,892 | 482,585 |
Proceeds from Federal Home Loan Bank Stock repurchase | 727,400 | 424,600 |
Proceeds from sale of securities available for sale | 0 | 5,741,211 |
Purchase of securities held to maturity | (752,889) | 0 |
Purchase of securities available for sale | (6,744,149) | (7,039,139) |
Purchase of Federal Home Loan Bank Stock | (546,600) | (1,014,100) |
Purchase of certificates of deposit in other banks | 0 | (1,985,000) |
Net change in loans | (37,532,022) | (38,303,523) |
Purchase of premises and equipment | (2,681,711) | (1,347,213) |
Proceeds from sales of foreclosed assets | 954,791 | 88,588 |
Proceeds from sales of fixed assets | 2,820 | 0 |
Net cash used by investing activities | (37,712,561) | (35,464,349) |
Cash flows from financing activities: | ||
Net change in deposits | 29,242,453 | 13,263,491 |
Payment of short-term portion of long-term debt | (16,257,143) | (7,590,476) |
Proceeds from issuance of short-term debt | 3,000,000 | 7,000,000 |
Proceeds from issuance of long-term debt | 9,000,000 | 13,000,000 |
Cash dividends paid | (890,369) | (840,654) |
Net cash provided by financing activities | 24,094,941 | 24,832,361 |
Decrease in cash and cash equivalents | (8,619,929) | (6,232,082) |
Cash and cash equivalents - beginning of period | 34,138,421 | 26,519,916 |
Cash and cash equivalents - end of period | 25,518,492 | 20,287,834 |
NONCASH ITEMS: | ||
Increase in foreclosed properties and decrease in loans | 503,655 | 903,842 |
Unrealized gain (loss) on securities available for sale | (1,678,063) | 522,001 |
Sale of foreclosed properties through loans | 0 | 38,000 |
Net reclass between short and long-term debt | 6,600,000 | 14,257,143 |
Retirement of treasury stock | 26,242,793 | 0 |
Receivable from sale of guaranteed foreclosed asset | 172,616 | 0 |
Sale of fixed assets through loans | $ 13,000 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Southwest Georgia Financial Corporation (the āCorporationā) and its direct and indirect subsidiaries, including its wholly-owned banking subsidiary, Southwest Georgia Bank (the āBankā), conform to U.S. generally accepted accounting principles (āGAAPā) 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 the 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 entity 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. In addition to conventional banking services, the Corporation provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by the Bankās Southwest Georgia Insurance Services Division. The Corporationās primary business is providing banking services through the Bank to individuals and businesses principally in the counties of Colquitt, Baker, Worth, Lowndes, Tift and the surrounding counties of southwest Georgia. The Bank operates six branch offices in its trade area. Trust and retail brokerage services are offered at an office building located at 25 2 nd 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 valuation of the investment portfolio, deferred taxes, estimated liabilities, allowance for loan losses, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these acquired real estate evaluations, management obtains independent appraisals for significant properties. 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 āFDICā) up to $250,000. There were uninsured deposits of $-0- at September 30, 2018. Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as āheld to maturityā 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 āavailable for saleā 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 ā 31 years Building and improvements 10 ā 40 years Machinery and equipment 5 ā 10 years Computer equipment 3 ā 5 years Office furniture and fixtures 5 ā 10 years All of the Corporationās 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. Bank Property Held for Sale In 2016, the Bankās former branch in Pavo, Georgia, was transferred from premises to bank property held for sale and depreciation was discontinued. The property was booked at $211,500 which was the lower of cost or market value based on a recent appraisal. The Corporation has this property available for sale. 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 managementās 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 borrowerās 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 loanās effective interest rate, the loanās 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 borrowersā ability to pay, overall portfolio quality, and review of specific problem loans. A substantial portion of the Corporationās 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. 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 Corporationās 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 fair market value less costs to sell 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 valuation allowance for foreclosed asset losses at September 30, 2018. Foreclosed assets included $37,605 and $0 of residential real estate as of September 30, 2018 and December 31, 2017, respectively. 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 one year. 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. Bank Owned Life Insurance The Bank owns 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 Bankās 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 September 30, 2018, and December 31, 2017, the policies had a value of $6,676,559 and $6,553,318, respectively, and were 15.7% and 15.9%, respectively, of shareholdersā 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 Accounting Standards Codification (āASCā) Topic 740, Income Taxes, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Recognition of deferred tax assets is based on managementās belief that it is more likely than not that the tax benefit associated with certain temporary differences and tax credits will be realized. 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, 2015 and subsequent years. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes all changes in shareholdersā equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of the Corporationās 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 expensed were $63,066 and $180,613 for the three and nine month periods ended September 30, 2018, respectively. Recent Market and 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 Bankās 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. These rules establish a comprehensive capital framework applicable to all depository institutions, certain bank holding companies with total consolidated assets below a certain threshold 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. The Basel III Capital Rules became effective for the Bank on January 1, 2015, subject to a phase-in period, but are not applicable to bank holding companies, like the Corporation, with less than $1 billion in total consolidated assets that meet certain criteria. 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 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 ācapital conservation bufferā, which is in addition to each capital ratio and is phased-in over a three-year period beginning in January 2016. As of September 30, 2018, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since September 30, 2018, that management believes has changed the Bankās status as āwell-capitalized.ā Adoption of New Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In March 2018, FASB issued ASU 2018-04, Investment - Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10) In May 2017, the FASB issued ASU No. 2017-09, āStock Compensation, Scope of Modification Accounting.ā In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB began issuing guidance to change the recognition of revenue from contracts with customers. The last guidance was issued in February 2017. The standards issued during this time are as follows: ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers Deferral of the Effective Date Revenue from Contracts with Customers Principal versus Agent Considerations Revenue from Contracts with Customers Identifying Performance Obligations and Licensing Revenue Recognition Derivatives and Hedging Rescission of SEC Guidance Because of Accounting Standards Updates Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting Revenue from Contracts with Customers Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Other Income - Gains and losses from the Derecognition of Nonfinancial Assets Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. Revenue Recognition On January 1, 2018, the Corporation adopted ASC Topic 606, using the modified retrospective method. Disclosures of revenue from contracts with customers for periods beginning after January 1, 2018, are presented under ASC Topic 606 and have not materially changed from the prior year amounts. Noninterest income, within the scope of this guidance, is recognized as services are transferred to customers in an amount that reflects the considerations expected to be entitled to in exchange for those services. The Corporation's revenue streams that were in scope include service charges on deposit accounts, income from insurance services, income from trust services, Automated Teller Machine (āATMā) surcharge and other noninterest income. Services Charges on Deposit Accounts - Service charges on deposit accounts primarily consist of monthly maintenance charges, analysis charges and Non-sufficient funds (āNSFā) charges. The NSF charges and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis charges and monthly maintenance charges are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Corporation's performance obligations are satisfied either at the time of the transaction or over the course of a month. Income from Insurance Services ā Income from insurance services consists primarily of property and casualty insurance, life, health, and disability insurance. Property and casualty, life, health, and disability insurance includes the brokerage of both personal and commercial coverages. The placement of the policy is completion of the Corporation's performance obligation and revenue is recognized at that time. The Corporation's commission is primarily a percentage of the premium. Income from Trust Services ā Income from Trust services consists of revenue generated from services provided for corporate, pension, and personal trusts, trustee services, and administrative services for employee benefit plans. The Corporationās performance obligation and revenue is recognized once the service has been performed. ATM Surcharge - ATM surcharge represents revenues earned from certain terminal activity. ATM surcharges primarily consist of charges assessed to our customers for using a non-Bank ATM or a non-Bank customer using our ATM. Such surcharges generally are recognized concurrently with the delivery of services on a daily basis. Other - Other noninterest income primarily consists of transaction based revenue where the performance obligation is satisfied concurrent with the revenue recognition. Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework ā Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework ā Changes to the Disclosure Requirements for Fair Value Measurement In February 2018, the FASB issued ASU No. 2018-02, Income Statement ā Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In March 2017, the FASB issued ASU No. 2017-08, Receivables ā Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350), In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323), In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In 2016, the FASB issued ASU 2016-02 ā Leases (Topic 842). |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 2 Fair Value Measurements 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 and due from banks, interest bearing deposits in other banks and federal funds sold, the carrying amount is a reasonable estimate of fair value. Certificates of Deposit in Other Banks: For disclosure purposes for 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 securityās 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. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. 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 managementās 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 the appraised value is reduced by costs to sell, the 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. Bank Owned Life Insurance: For disclosure purposes, for cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value. 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. 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 September 30, 2018, and December 31, 2017. September 30, 2018 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 925,160 $ 0 $ 0 $ 925,160 U.S. government agency securities 0 45,421,685 0 45,421,685 State and municipal securities 0 7,307,293 0 7,307,293 Residential mortgage-backed securities 0 4,922,067 0 4,922,067 Total $ 925,160 $ 57,651,045 $ 0 $ 58,576,205 December 31, 2017 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 967,770 $ 0 $ 0 $ 967,770 U.S. government agency securities 0 43,860,090 0 43,860,090 State and municipal securities 0 7,573,689 0 7,573,689 Residential mortgage-backed securities 0 1,861,712 0 1,861,712 Total $ 967,770 $ 53,295,491 $ 0 $ 54,263,261 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 September 30, 2018, and December 31, 2017. September 30, 2018 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 4,596,785 4,596,785 Total assets at fair value $ 0 $ 0 $ 4,724,390 $ 4,724,390 December 31, 2017 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 758,878 $ 758,878 Impaired loans 0 0 4,563,951 4,563,951 Total assets at fair value $ 0 $ 0 $ 5,322,829 $ 5,322,829 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 ā 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 the present value of expected payments from all sources, but not more than the discounted appraised value less selling costs. 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 Corporationās assets and liabilities which are required to be either disclosed or recorded at fair value at September 30, 2018, and December 31, 2017: Estimated Fair Value September 30, 2018 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 25,518 $ 25,518 $ 0 $ 0 $ 25,518 Certificates of deposit in other banks 1,985 1,985 0 0 1,985 Investment securities available for sale 58,576 925 57,651 0 58,576 Investment securities held to maturity 36,961 0 36,935 0 36,935 Federal Home Loan Bank stock 2,257 0 2,257 0 2,257 Loans, net 363,567 0 352,639 4,597 357,236 Bank owned life insurance 6,677 0 6,677 0 6,677 Liabilities: Deposits 426,248 0 426,555 0 426,555 Federal Home Loan Bank advances 42,771 0 42,150 0 42,150 Estimated Fair Value December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 34,138 $ 34,138 $ 0 $ 0 $ 34,138 Certificates of deposit in other banks 1,985 1,985 0 0 1,985 Investment securities available for sale 54,263 968 53,295 0 54,263 Investment securities held to maturity 44,591 0 45,148 0 45,148 Federal Home Loan Bank stock 2,438 0 2,438 0 2,438 Loans, net 327,130 0 320,684 4,564 325,248 Bank owned life insurance 6,553 0 6,553 0 6,553 Liabilities: Deposits 397,006 0 397,331 0 397,331 Federal Home Loan Bank advances 47,029 0 46,658 0 46,658 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. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investments [Abstract] | |
Investment Securities | NOTE 3 Investment Securities Debt securities have been classified in the consolidated balance sheets according to managementās intent. The amortized cost of securities as shown in the consolidated balance sheets and their estimated fair values at September 30, 2018, and December 31, 2017, were as follows: Securities Available For Sale: September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 981,520 $ 0 $ 56,360 $ 925,160 U.S. government agency securities 46,873,936 59,672 1,511,923 45,421,685 State and municipal securities 7,416,868 1,425 111,000 7,307,293 Residential mortgage-backed securities 4,972,506 20,655 71,094 4,922,067 Total debt securities AFS $ 60,244,830 $ 81,752 $ 1,750,377 $ 58,576,205 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 979,983 $ 0 $ 12,213 $ 967,770 U.S. government agency securities 43,978,023 580,366 698,299 43,860,090 State and municipal securities 7,482,912 129,231 38,454 7,573,689 Residential mortgage-backed securities 1,812,905 51,651 2,844 1,861,712 Total debt securities AFS $ 54,253,823 $ 761,248 $ 751,810 $ 54,263,261 Securities Held to Maturity September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 34,423,325 $ 173,948 $ 208,179 $ 34,389,094 Residential mortgage-backed securities 2,537,273 27,566 18,796 2,546,043 Total securities HTM $ 36,960,598 $ 201,514 $ 226,975 $ 36,935,137 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 41,447,092 $ 527,632 $ 48,083 $ 41,926,641 Residential mortgage-backed securities 3,143,749 77,542 132 3,221,159 Total securities HTM $ 44,590,841 $ 605,174 $ 48,215 $ 45,147,800 The amortized cost and estimated fair value of debt securities at September 30, 2018, and December 31, 2017, 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. September 30, 2018 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 24,783,056 24,516,365 After five through ten years 29,782,725 28,443,405 After ten years 5,679,049 5,616,435 Total debt securities AFS $ 60,244,830 $ 58,576,205 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 8,145,043 $ 8,157,231 After one through five years 14,799,992 14,853,083 After five through ten years 11,471,319 11,414,767 After ten years 2,544,244 2,510,056 Total securities HTM $ 36,960,598 $ 36,935,137 December 31, 2017 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 15,437,594 15,556,274 After five through ten years 35,610,754 35,441,617 After ten years 3,205,475 3,265,370 Total debt securities AFS $ 54,253,823 $ 54,263,261 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 9,812,609 $ 9,821,948 After one through five years 19,467,142 19,680,375 After five through ten years 12,546,856 12,806,108 After ten years 2,764,234 2,839,369 Total securities HTM $ 44,590,841 $ 45,147,800 The following tables summarize the activity of security sales by intention and year for the three and nine months ended September 30, 2018, and 2017. Securities Available For Sale: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Proceeds of sales $ 0 $ 3,065,000 $ 0 $ 5,741,211 Gross gains $ 0 $ 19,795 $ 0 $ 186,610 Gross losses 0 0 0 0 Net gains on sales of available for sale securities $ 0 $ 19,795 $ 0 $ 186,610 There were no sales of held to maturity securities during the three and nine months ended September 30, 2018 and 2017. 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: September 30, 2018 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 treasury securities $ 0 $ 0 $ 56,360 $ 925,160 U.S. government agency securities 261,504 16,365,195 1,250,419 18,688,666 State and municipal securities 46,087 4,649,043 64,913 1,800,941 Residential mortgage-backed securities 65,650 4,229,470 5,444 137,343 Total debt securities available for sale $ 373,241 $ 25,243,708 $ 1,377,136 $ 21,552,110 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 157,970 $ 17,691,528 $ 50,209 $ 1,456,042 Residential mortgage-backed securities 18,796 1,019,175 0 0 Total securities held to maturity $ 176,766 $ 18,710,703 $ 50,209 $ 1,456,042 December 31, 2017 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 treasury securities $ 12,213 $ 967,770 $ 0 $ 0 U.S. government agency securities 34,083 4,988,630 664,216 18,347,439 State and municipal securities 16,836 975,900 21,618 877,798 Residential mortgage-backed securities 0 0 2,844 188,081 Total debt securities available for sale $ 63,132 $ 6,932,300 $ 688,678 $ 19,413,318 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 15,954 $ 5,521,443 $ 32,129 $ 1,281,797 Residential mortgage-backed securities 132 146,203 0 0 Total securities held to maturity $ 16,086 $ 5,667,646 $ 32,129 $ 1,281,797 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 September 30, 2018, one-hundred and nine debt securities with unrealized losses have depreciated 2.9% from the Corporationās amortized cost basis. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuerās 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 issuerās 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 | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 4 Loans and Allowance for Loan Losses The composition of the Corporationās loan portfolio and the percentage of loans in each category to total loans at September 30, 2018 and December 31, 2017, were as follows: September 30, 2018 December 31, 2017 Commercial, financial and agricultural loans $ 87,717,667 23.9 % $ 73,146,397 22.2 % Real estate: Construction loans 30,799,672 8.4 % 22,287,012 6.8 % Commercial mortgage loans 105,935,188 28.9 % 106,458,342 32.2 % Residential loans 104,797,473 28.6 % 99,159,607 30.0 % Agricultural loans 32,234,234 8.8 % 25,373,621 7.7 % Consumer & other loans 5,177,979 1.4 % 3,766,332 1.1 % Loans outstanding 366,662,213 100.0 % 330,191,311 100.0 % Unearned interest and discount (17,490 ) (17,921 ) Allowance for loan losses (3,078,098 ) (3,043,632 ) Net loans $ 363,566,625 $ 327,129,758 The Corporationās only significant concentration of credit at September 30, 2018, occurred in real estate loans which totaled $273,766,567 compared with $253,278,582 at December 31, 2017. However, this amount was not concentrated in any specific segment within the market or geographic area. Multifamily and 1-4 family mortgage loans are pledged to the Federal Home Loan Bank to secure outstanding advances. At September 30, 2018, $118,545,979 in loans were pledged in this capacity. The following table shows maturities of the commercial, financial, agricultural, and construction loan portfolio at September 30, 2018. Commercial, Financial, Agricultural and Construction Distribution of loans which are due: In one year or less $ 32,541,661 After one year but within five years 57,128,967 After five years 28,846,711 Total $ 118,517,339 The following table shows, for such loans due after one year, the amounts which have predetermined interest rates and the amounts which have floating or adjustable interest rates at September 30, 2018. Loans With Predetermined Loans With Rates Floating Rates Total Commercial, financial, agricultural and construction $ 82,364,691 $ 3,610,987 $ 85,975,678 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 $2,123,416 and $1,674,656 at September 30, 2018, and December 31, 2017, respectively. There were no past due loans over ninety days and still accruing at September 30, 2018, or December 31, 2017. 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 $53,548 for September 30, 2018, and $41,496 for December 31, 2017. The following tables present an age analysis of past due loans still accruing interest and nonaccrual loans segregated by class of loans. Age Analysis of Past Due Loans As of September 30, 2018 30-89 Days Past Due 90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 517,622 $ 0 $ 517,622 $ 225,511 $ 86,974,534 $ 87,717,667 Real estate: Construction loans 314,468 0 314,468 189,830 30,295,374 30,799,672 Commercial mortgage loans 200,614 0 200,614 1,022,550 104,712,024 105,935,188 Residential loans 472,119 0 472,119 275,430 104,049,924 104,797,473 Agricultural loans 0 0 0 332,679 31,901,555 32,234,234 Consumer & other loans 21,776 0 21,776 77,416 5,078,787 5,177,979 Total loans $ 1,526,599 $ 0 $ 1,526,599 $ 2,123,416 $ 363,012,198 $ 366,662,213 Age Analysis of Past Due Loans As of December 31, 2017 30-89 Days Past Due 90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 364,527 $ 0 $ 364,527 $ 394,455 $ 72,387,415 $ 73,146,397 Real estate: Construction loans 198,861 0 198,861 0 22,088,151 22,287,012 Commercial mortgage loans 645,214 0 645,214 757,085 105,056,043 106,458,342 Residential loans 2,023,517 0 2,023,517 518,301 96,617,789 99,159,607 Agricultural loans 0 0 0 0 25,373,621 25,373,621 Consumer & other loans 30,033 0 30,033 4,815 3,731,484 3,766,332 Total loans $ 3,262,152 $ 0 $ 3,262,152 $ 1,674,656 $ 325,254,503 $ 330,191,311 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 borrowerās 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 loanās effective interest rate, the loanās obtainable market price, or the fair value of the collateral if the loan is collateral dependent. At September 30, 2018, and December 31, 2017, impaired loans amounted to $5,225,237 and $4,895,730, respectively. A reserve amount of $628,452 and $331,779 was recorded in the allowance for loan losses for these impaired loans as of September 30, 2018, and December 31, 2017, respectively. The following tables present impaired loans, segregated by class of loans as of September 30, 2018, and December 31, 2017: Unpaid Recorded Investment Year-to-date Average Interest Income Received September 30, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 1,263,609 $ 291,049 $ 640,388 $ 931,437 $ 319,392 $ 283,622 $ 31,832 Real estate: Construction loans 413,803 293,003 0 293,003 0 254,788 17,823 Commercial mortgage loans 1,791,395 1,279,924 335,669 1,615,593 53,632 1,348,557 37,349 Residential loans 2,046,205 520,694 1,504,599 2,025,293 253,824 1,888,312 100,152 Agricultural loans 345,405 345,405 0 345,405 0 13,454 5,260 Consumer & other loans 14,506 31 14,475 14,506 1,604 14,506 688 Total loans $ 5,874,923 $ 2,730,106 $ 2,495,131 $ 5,225,237 $ 628,452 $ 3,803,239 $ 193,104 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2017 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 459,003 $ 208,032 $ 250,971 $ 459,003 $ 44,468 $ 169,930 $ 10,920 Real estate: Construction loans 549,599 428,799 0 428,799 0 162,698 24,487 Commercial mortgage loans 1,615,811 1,107,654 339,440 1,447,094 57,403 1,071,663 54,582 Residential loans 2,476,728 316,230 2,079,823 2,396,053 224,916 2,233,562 108,472 Agricultural loans 142,966 142,966 0 142,966 0 142,966 8,198 Consumer & other loans 21,815 846 20,969 21,815 4,992 9,003 521 Total loans $ 5,265,922 $ 2,204,527 $ 2,691,203 $ 4,895,730 $ 331,779 $ 3,789,822 $ 207,180 At September 30, 2017, the year-to-date average recorded investment of impaired loans was $3,758,289 and the interest income received during impairment was $156,041. At September 30, 2018, and December 31, 2017, included in impaired loans were $2,324 and $4,243, respectively, of troubled debt restructurings. Troubled Debt Restructurings (TDR) Loans are considered to have been modified in a troubled debt restructuring, or TDR, when due to a borrowerās 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 borrowerās 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 Corporationās 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: Ā· Interest rate reductions ā 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. Ā· Amortization or maturity date changes ā 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. Ā· Principal reductions ā 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 September 30, 2018, and December 31, 2017, as well as those currently paying under restructured terms and those that have defaulted under restructured terms as of September 30, 2018, and December 31, 2017. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 or more days past due. September 30, 2018 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 0 0 0 0 0 0 Residential loans 2,293 0 1 2,293 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 31 0 1 31 0 0 Total TDRās $ 2,324 $ 0 2 $ 2,324 0 $ 0 December 31, 2017 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 0 0 0 0 0 0 Residential loans 3,397 0 1 3,397 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 846 0 1 846 0 0 Total TDRās $ 4,243 $ 0 2 $ 4,243 0 $ 0 The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and non-accrual at September 30, 2018, and December 31, 2017. September 30, 2018 December 31, 2017 Accruing Nonaccruing Accruing Nonaccruing # Balance # Balance # Balance # Balance Type of concession: Payment modification 0 $ 0 0 $ 0 0 $ 0 0 $ 0 Rate reduction 0 0 0 0 0 0 0 0 Rate reduction, payment modification 2 2,324 0 0 2 4,243 0 0 Forbearance of interest 0 0 0 0 0 0 0 0 Total 2 $ 2,324 0 $ 0 2 $ 4,243 0 $ 0 As of September 30, 2018, and December 31, 2017, the Corporation had a balance of $2,324 and $4,243, respectively, in troubled debt restructurings. The Corporation had no charge-offs on such loans at September 30, 2018, and December 31, 2017. The Corporation had no balance in the allowance for loan losses allocated to such troubled debt restructurings at September 30, 2018, or December 31, 2017. The Corporation had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of September 30, 2018. 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 ā Exceptional Grade 2 ā Above Average Grade 3 ā Acceptable Grade 4 ā Fair Grade 5a ā Watch ā Grade 5b ā Other Assets Especially Mentioned (OAEM) ā Grade 6 ā Substandard Grade 7 ā Doubtful Grade 8 ā Loss The following tables present internal loan grading by class of loans as of September 30, 2018, and December 31, 2017: September 30, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,154,573 $ 0 $ 0 $ 23,162 $ 0 $ 224,196 $ 1,401,931 Grade 2- Above Avg. 0 0 0 0 0 47,124 47,124 Grade 3- Acceptable 24,816,412 2,808,071 29,509,132 25,720,496 17,661,087 1,279,310 101,794,508 Grade 4- Fair 56,818,038 27,698,598 71,453,241 74,159,559 14,240,468 3,595,146 247,965,050 Grade 5a- Watch 439,329 0 349,677 943,656 0 16,242 1,748,904 Grade 5b- OAEM 3,120,647 0 467,918 1,312,638 0 31 4,901,234 Grade 6- Substandard 995,450 293,003 4,155,220 2,637,962 332,679 15,930 8,430,244 Grade 7- Doubtful 373,218 0 0 0 0 0 373,218 Total loans $ 87,717,667 $ 30,799,672 $ 105,935,188 $ 104,797,473 $ 32,234,234 $ 5,177,979 $ 366,662,213 December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,371,135 $ 0 $ 0 $ 23,919 $ 0 $ 325,236 $ 1,720,290 Grade 2- Above Avg. 0 0 0 0 0 51,421 51,421 Grade 3- Acceptable 27,024,359 2,085,620 30,090,030 26,304,640 11,071,244 866,455 97,442,348 Grade 4- Fair 42,821,117 19,772,593 70,518,545 68,103,351 13,781,326 2,494,509 217,491,441 Grade 5a- Watch 120,626 0 1,027,581 757,628 39,344 7,572 1,952,751 Grade 5b- OAEM 557,070 0 3,073,051 1,226,841 338,741 1,357 5,197,060 Grade 6- Substandard 945,238 428,799 1,749,135 2,743,228 142,966 19,782 6,029,148 Grade 7- Doubtful 306,852 0 0 0 0 0 306,852 Total loans $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 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 5b, 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 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 5b, 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 risk factor percentage from a rating of excessive, high, moderate or low will be determined by management and applied to the loan portfolio. By adding the estimated value from the migration and economic analysis to the estimated reserve from the loan portfolio, a 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. The following table details activity in the ALL and loans evaluated for impairment by class of loans for the three and nine month periods ended September 30, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. The annualized net charge-offs to average loans outstanding ratio was 0.22% for the nine months ended September 30, 2018, compared with 0.12% at December 31, 2017. Three months ended September 30, 2018 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, June 30, 2018 $ 437,661 $ 938,690 $ 1,084,477 $ 445,196 $ 91,022 $ 195,651 $ 3,192,697 Charge-offs 315,792 0 43,349 0 0 6,843 365,984 Recoveries 2,184 0 0 0 0 201 2,385 Net charge-offs 313,608 0 43,349 0 0 6,642 363,599 Provisions charged to operations 225,030 342 18,936 3,018 (524) 2,198 249,000 Balance at end of period, September 30, 2018 $ 349,083 $ 939,032 $ 1,060,064 $ 448,214 $ 90,498 $ 191,207 $ 3,078,098 Nine months ended September 30, 2018 September 30, 2018 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, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Charge-offs 524,620 783 43,349 6,909 0 6,844 582,505 Recoveries 9,460 0 0 0 1,200 1,811 12,471 Net charge-offs 515,160 783 43,349 6,909 (1,200 ) 5,033 570,034 Provisions charged to operations 539,983 (103,268 ) 46,818 38,649 77,738 4,580 604,500 Balance at end of period, September 30, 2018 $ 349,083 $ 939,032 $ 1,060,064 $ 448,214 $ 90,498 $ 191,207 $ 3,078,098 Ending balance - Individually evaluated for impairment $ 319,392 $ 0 $ 53,632 $ 253,824 $ 0 $ 1,604 $ 628,452 Collectively evaluated for impairment 29,691 939,032 1,006,432 194,390 90,498 189,603 2,449,646 Balance at end of period $ 349,083 $ 939,032 $ 1,060,064 $ 448,214 $ 90,498 $ 191,207 $ 3,078,098 Loans : Ending balance - Individually evaluated for impairment $ 931,437 $ 293,003 $ 1,615,593 $ 2,159,147 $ 345,405 $ 14,506 $ 5,359,091 Collectively evaluated for impairment 86,786,230 30,506,669 104,319,595 102,638,326 31,888,829 5,163,473 361,303,122 Balance at end of period $ 87,717,667 $ 30,799,672 $ 105,935,188 $ 104,797,473 $ 32,234,234 $ 5,177,979 $ 366,662,213 At September 30, 2018, of the $5,359,091 loans that were individually evaluated for impairment, only $5,225,237 were deemed impaired. The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 2017. December 31, 2017 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, 2016 $ 191,267 $ 1,043,083 $ 1,192,098 $ 420,189 $ 86,656 $ 191,318 $ 3,124,611 Charge-offs 113,334 0 168,717 59,764 93,503 12,429 447,747 Recoveries 63,486 0 0 0 0 3,282 66,768 Net charge-offs 49,848 0 168,717 59,764 93,503 9,147 380,979 Provisions charged to operations 182,841 0 33,214 56,049 18,407 9,489 300,000 Balance at end of period, December 31, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Ending balance - Individually evaluated for impairment $ 44,468 $ 0 $ 57,403 $ 224,916 $ 0 $ 4,992 $ 331,779 Collectively evaluated for impairment 279,792 1,043,083 999,192 191,558 11,560 186,668 2,711,853 Balance at end of period $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Loans : Ending balance - Individually evaluated for impairment $ 459,003 $ 428,799 $ 4,561,198 $ 2,448,531 $ 142,966 $ 21,815 $ 8,062,312 Collectively evaluated for impairment 72,687,394 21,858,213 101,897,144 96,711,076 25,230,655 3,744,517 322,128,999 Balance at end of period $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 At December 31, 2017, of the $8,062,312 loans that were individually evaluated for impairment, only $4,895,730 were deemed impaired. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the 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 entity 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. In addition to conventional banking services, the Corporation provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by the Bankās Southwest Georgia Insurance Services Division. The Corporationās primary business is providing banking services through the Bank to individuals and businesses principally in the counties of Colquitt, Baker, Worth, Lowndes, Tift and the surrounding counties of southwest Georgia. The Bank operates six branch offices in its trade area. Trust and retail brokerage services are offered at an office building located at 25 2 nd |
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 valuation of the investment portfolio, deferred taxes, estimated liabilities, allowance for loan losses, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these acquired real estate evaluations, management obtains independent appraisals for significant properties. |
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 āFDICā) up to $250,000. There were uninsured deposits of $-0- at September 30, 2018. |
Investment Securities | Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as āheld to maturityā 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 āavailable for saleā 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 ā 31 years Building and improvements 10 ā 40 years Machinery and equipment 5 ā 10 years Computer equipment 3 ā 5 years Office furniture and fixtures 5 ā 10 years All of the Corporationās 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. |
Bank Property Held for Sale | Bank Property Held for Sale In 2016, the Bankās former branch in Pavo, Georgia, was transferred from premises to bank property held for sale and depreciation was discontinued. The property was booked at $211,500 which was the lower of cost or market value based on a recent appraisal. The Corporation has this property available for sale. |
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 managementās 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 borrowerās 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 loanās effective interest rate, the loanās 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 borrowersā ability to pay, overall portfolio quality, and review of specific problem loans. A substantial portion of the Corporationās 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. 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 Corporationās 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 fair market value less costs to sell 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 valuation allowance for foreclosed asset losses at September 30, 2018. Foreclosed assets included $37,605 and $0 of residential real estate as of September 30, 2018 and December 31, 2017, respectively. |
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 one year. |
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. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank owns 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 Bankās 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 September 30, 2018, and December 31, 2017, the policies had a value of $6,676,559 and $6,553,318, respectively, and were 15.7% and 15.9%, respectively, of shareholdersā 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 Accounting Standards Codification (āASCā) Topic 740, Income Taxes, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Recognition of deferred tax assets is based on managementās belief that it is more likely than not that the tax benefit associated with certain temporary differences and tax credits will be realized. 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, 2015 and subsequent years. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes all changes in shareholdersā equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of the Corporationās 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 expensed were $63,066 and $180,613 for the three and nine month periods ended September 30, 2018, respectively. |
Recent Market and Regulatory Developments | Recent Market and 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 Bankās 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. These rules establish a comprehensive capital framework applicable to all depository institutions, certain bank holding companies with total consolidated assets below a certain threshold 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. The Basel III Capital Rules became effective for the Bank on January 1, 2015, subject to a phase-in period, but are not applicable to bank holding companies, like the Corporation, with less than $1 billion in total consolidated assets that meet certain criteria. 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 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 ācapital conservation bufferā, which is in addition to each capital ratio and is phased-in over a three-year period beginning in January 2016. As of September 30, 2018, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since September 30, 2018, that management believes has changed the Bankās status as āwell-capitalized.ā |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 In March 2018, FASB issued ASU 2018-04, Investment - Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10) In May 2017, the FASB issued ASU No. 2017-09, āStock Compensation, Scope of Modification Accounting.ā In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB began issuing guidance to change the recognition of revenue from contracts with customers. The last guidance was issued in February 2017. The standards issued during this time are as follows: ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers Deferral of the Effective Date Revenue from Contracts with Customers Principal versus Agent Considerations Revenue from Contracts with Customers Identifying Performance Obligations and Licensing Revenue Recognition Derivatives and Hedging Rescission of SEC Guidance Because of Accounting Standards Updates Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting Revenue from Contracts with Customers Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Other Income - Gains and losses from the Derecognition of Nonfinancial Assets Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Corporation adopted ASC Topic 606, using the modified retrospective method. Disclosures of revenue from contracts with customers for periods beginning after January 1, 2018, are presented under ASC Topic 606 and have not materially changed from the prior year amounts. Noninterest income, within the scope of this guidance, is recognized as services are transferred to customers in an amount that reflects the considerations expected to be entitled to in exchange for those services. The Corporation's revenue streams that were in scope include service charges on deposit accounts, income from insurance services, income from trust services, Automated Teller Machine (āATMā) surcharge and other noninterest income. Services Charges on Deposit Accounts - Service charges on deposit accounts primarily consist of monthly maintenance charges, analysis charges and Non-sufficient funds (āNSFā) charges. The NSF charges and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis charges and monthly maintenance charges are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Corporation's performance obligations are satisfied either at the time of the transaction or over the course of a month. Income from Insurance Services ā Income from insurance services consists primarily of property and casualty insurance, life, health, and disability insurance. Property and casualty, life, health, and disability insurance includes the brokerage of both personal and commercial coverages. The placement of the policy is completion of the Corporation's performance obligation and revenue is recognized at that time. The Corporation's commission is primarily a percentage of the premium. Income from Trust Services ā Income from Trust services consists of revenue generated from services provided for corporate, pension, and personal trusts, trustee services, and administrative services for employee benefit plans. The Corporationās performance obligation and revenue is recognized once the service has been performed. ATM Surcharge - ATM surcharge represents revenues earned from certain terminal activity. ATM surcharges primarily consist of charges assessed to our customers for using a non-Bank ATM or a non-Bank customer using our ATM. Such surcharges generally are recognized concurrently with the delivery of services on a daily basis. Other - Other noninterest income primarily consists of transaction based revenue where the performance obligation is satisfied concurrent with the revenue recognition. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework ā Changes to the Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework ā Changes to the Disclosure Requirements for Fair Value Measurement In February 2018, the FASB issued ASU No. 2018-02, Income Statement ā Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In March 2017, the FASB issued ASU No. 2017-08, Receivables ā Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350), In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323), In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In 2016, the FASB issued ASU 2016-02 ā Leases (Topic 842). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 ā 31 years Building and improvements 10 ā 40 years Machinery and equipment 5 ā 10 years Computer equipment 3 ā 5 years Office furniture and fixtures 5 ā 10 years |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 September 30, 2018, and December 31, 2017. September 30, 2018 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 925,160 $ 0 $ 0 $ 925,160 U.S. government agency securities 0 45,421,685 0 45,421,685 State and municipal securities 0 7,307,293 0 7,307,293 Residential mortgage-backed securities 0 4,922,067 0 4,922,067 Total $ 925,160 $ 57,651,045 $ 0 $ 58,576,205 December 31, 2017 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 967,770 $ 0 $ 0 $ 967,770 U.S. government agency securities 0 43,860,090 0 43,860,090 State and municipal securities 0 7,573,689 0 7,573,689 Residential mortgage-backed securities 0 1,861,712 0 1,861,712 Total $ 967,770 $ 53,295,491 $ 0 $ 54,263,261 |
Schedule of Fair Value of Assets Recorded on a Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2018, and December 31, 2017. September 30, 2018 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 4,596,785 4,596,785 Total assets at fair value $ 0 $ 0 $ 4,724,390 $ 4,724,390 December 31, 2017 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 758,878 $ 758,878 Impaired loans 0 0 4,563,951 4,563,951 Total assets at fair value $ 0 $ 0 $ 5,322,829 $ 5,322,829 |
Schedule of Carrying and Estimated Fair Value of Assets and Liabilities Recorded at Fair Value | The carrying amount and estimated fair values of the Corporationās assets and liabilities which are required to be either disclosed or recorded at fair value at September 30, 2018, and December 31, 2017: Estimated Fair Value September 30, 2018 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 25,518 $ 25,518 $ 0 $ 0 $ 25,518 Certificates of deposit in other banks 1,985 1,985 0 0 1,985 Investment securities available for sale 58,576 925 57,651 0 58,576 Investment securities held to maturity 36,961 0 36,935 0 36,935 Federal Home Loan Bank stock 2,257 0 2,257 0 2,257 Loans, net 363,567 0 352,639 4,597 357,236 Bank owned life insurance 6,677 0 6,677 0 6,677 Liabilities: Deposits 426,248 0 426,555 0 426,555 Federal Home Loan Bank advances 42,771 0 42,150 0 42,150 Estimated Fair Value December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 34,138 $ 34,138 $ 0 $ 0 $ 34,138 Certificates of deposit in other banks 1,985 1,985 0 0 1,985 Investment securities available for sale 54,263 968 53,295 0 54,263 Investment securities held to maturity 44,591 0 45,148 0 45,148 Federal Home Loan Bank stock 2,438 0 2,438 0 2,438 Loans, net 327,130 0 320,684 4,564 325,248 Bank owned life insurance 6,553 0 6,553 0 6,553 Liabilities: Deposits 397,006 0 397,331 0 397,331 Federal Home Loan Bank advances 47,029 0 46,658 0 46,658 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Investments [Abstract] | |
Schedule of Securities Available for Sale | The amortized cost of securities as shown in the consolidated balance sheets and their estimated fair values at September 30, 2018, and December 31, 2017, were as follows: Securities Available For Sale: September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 981,520 $ 0 $ 56,360 $ 925,160 U.S. government agency securities 46,873,936 59,672 1,511,923 45,421,685 State and municipal securities 7,416,868 1,425 111,000 7,307,293 Residential mortgage-backed securities 4,972,506 20,655 71,094 4,922,067 Total debt securities AFS $ 60,244,830 $ 81,752 $ 1,750,377 $ 58,576,205 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 979,983 $ 0 $ 12,213 $ 967,770 U.S. government agency securities 43,978,023 580,366 698,299 43,860,090 State and municipal securities 7,482,912 129,231 38,454 7,573,689 Residential mortgage-backed securities 1,812,905 51,651 2,844 1,861,712 Total debt securities AFS $ 54,253,823 $ 761,248 $ 751,810 $ 54,263,261 |
Schedule of Securities Held to Maturity | Securities Held to Maturity September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 34,423,325 $ 173,948 $ 208,179 $ 34,389,094 Residential mortgage-backed securities 2,537,273 27,566 18,796 2,546,043 Total securities HTM $ 36,960,598 $ 201,514 $ 226,975 $ 36,935,137 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 41,447,092 $ 527,632 $ 48,083 $ 41,926,641 Residential mortgage-backed securities 3,143,749 77,542 132 3,221,159 Total securities HTM $ 44,590,841 $ 605,174 $ 48,215 $ 45,147,800 |
Summary of Amortized Cost and Estimated Fair Value of Debt Securities | The amortized cost and estimated fair value of debt securities at September 30, 2018, and December 31, 2017, 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. September 30, 2018 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 24,783,056 24,516,365 After five through ten years 29,782,725 28,443,405 After ten years 5,679,049 5,616,435 Total debt securities AFS $ 60,244,830 $ 58,576,205 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 8,145,043 $ 8,157,231 After one through five years 14,799,992 14,853,083 After five through ten years 11,471,319 11,414,767 After ten years 2,544,244 2,510,056 Total securities HTM $ 36,960,598 $ 36,935,137 December 31, 2017 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 0 $ 0 After one through five years 15,437,594 15,556,274 After five through ten years 35,610,754 35,441,617 After ten years 3,205,475 3,265,370 Total debt securities AFS $ 54,253,823 $ 54,263,261 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 9,812,609 $ 9,821,948 After one through five years 19,467,142 19,680,375 After five through ten years 12,546,856 12,806,108 After ten years 2,764,234 2,839,369 Total securities HTM $ 44,590,841 $ 45,147,800 |
Schedule of Activity of Security Sales by Intention | The following tables summarize the activity of security sales by intention and year for the three and nine months ended September 30, 2018, and 2017. Securities Available For Sale: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Proceeds of sales $ 0 $ 3,065,000 $ 0 $ 5,741,211 Gross gains $ 0 $ 19,795 $ 0 $ 186,610 Gross losses 0 0 0 0 Net gains on sales of available for sale securities $ 0 $ 19,795 $ 0 $ 186,610 |
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: September 30, 2018 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 treasury securities $ 0 $ 0 $ 56,360 $ 925,160 U.S. government agency securities 261,504 16,365,195 1,250,419 18,688,666 State and municipal securities 46,087 4,649,043 64,913 1,800,941 Residential mortgage-backed securities 65,650 4,229,470 5,444 137,343 Total debt securities available for sale $ 373,241 $ 25,243,708 $ 1,377,136 $ 21,552,110 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 157,970 $ 17,691,528 $ 50,209 $ 1,456,042 Residential mortgage-backed securities 18,796 1,019,175 0 0 Total securities held to maturity $ 176,766 $ 18,710,703 $ 50,209 $ 1,456,042 December 31, 2017 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 treasury securities $ 12,213 $ 967,770 $ 0 $ 0 U.S. government agency securities 34,083 4,988,630 664,216 18,347,439 State and municipal securities 16,836 975,900 21,618 877,798 Residential mortgage-backed securities 0 0 2,844 188,081 Total debt securities available for sale $ 63,132 $ 6,932,300 $ 688,678 $ 19,413,318 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 15,954 $ 5,521,443 $ 32,129 $ 1,281,797 Residential mortgage-backed securities 132 146,203 0 0 Total securities held to maturity $ 16,086 $ 5,667,646 $ 32,129 $ 1,281,797 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans | The composition of the Corporationās loan portfolio and the percentage of loans in each category to total loans at September 30, 2018 and December 31, 2017, were as follows: September 30, 2018 December 31, 2017 Commercial, financial and agricultural loans $ 87,717,667 23.9% $ 73,146,397 22.2% Real estate: Construction loans 30,799,672 8.4% 22,287,012 6.8% Commercial mortgage loans 105,935,188 28.9% 106,458,342 32.2% Residential loans 104,797,473 28.6% 99,159,607 30.0% Agricultural loans 32,234,234 8.8% 25,373,621 7.7% Consumer & other loans 5,177,979 1.4% 3,766,332 1.1% Loans outstanding 366,662,213 100.0% 330,191,311 100.0% Unearned interest and discount ( 17,490) ( 17,921) Allowance for loan losses ( 3,078,098 ( 3,043,632 Net loans $ 363,566,625 $ 327,129,758 |
Summary of Maturities of Loan Portfolio | The following table shows maturities of the commercial, financial, agricultural, and construction loan portfolio at September 30, 2018. Commercial, Financial, Agricultural and Construction Distribution of loans which are due: In one year or less $ 32,541,661 After one year but within five years 57,128,967 After five years 28,846,711 Total $ 118,517,339 |
Summary of Loans Due after One Year | The following table shows, for such loans due after one year, the amounts which have predetermined interest rates and the amounts which have floating or adjustable interest rates at September 30, 2018. Loans With Predetermined Loans With Rates Floating Rates Total Commercial, financial, agricultural and construction $ 82,364,691 $ 3,610,987 $ 85,975,678 |
Schedule of Past Due Loans and Nonaccrual Loans | The following tables present an age analysis of past due loans still accruing interest and nonaccrual loans segregated by class of loans. Age Analysis of Past Due Loans As of September 30, 2018 30-89 Days Past Due 90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 517,622 $ 0 $ 517,622 $ 225,511 $ 86,974,534 $ 87,717,667 Real estate: Construction loans 314,468 0 314,468 189,830 30,295,374 30,799,672 Commercial mortgage loans 200,614 0 200,614 1,022,550 104,712,024 105,935,188 Residential loans 472,119 0 472,119 275,430 104,049,924 104,797,473 Agricultural loans 0 0 0 332,679 31,901,555 32,234,234 Consumer & other loans 21,776 0 21,776 77,416 5,078,787 5,177,979 Total loans $ 1,526,599 $ 0 $ 1,526,599 $ 2,123,416 $ 363,012,198 $ 366,662,213 Age Analysis of Past Due Loans As of December 31, 2017 30-89 Days Past Due 90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 364,527 $ 0 $ 364,527 $ 394,455 $ 72,387,415 $ 73,146,397 Real estate: Construction loans 198,861 0 198,861 0 22,088,151 22,287,012 Commercial mortgage loans 645,214 0 645,214 757,085 105,056,043 106,458,342 Residential loans 2,023,517 0 2,023,517 518,301 96,617,789 99,159,607 Agricultural loans 0 0 0 0 25,373,621 25,373,621 Consumer & other loans 30,033 0 30,033 4,815 3,731,484 3,766,332 Total loans $ 3,262,152 $ 0 $ 3,262,152 $ 1,674,656 $ 325,254,503 $ 330,191,311 |
Schedule of Impaired Loans Segregated by Class of Loans | The following tables present impaired loans, segregated by class of loans as of September 30, 2018, and December 31, 2017: Unpaid Recorded Investment Year-to-date Average Interest Income Received September 30, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $1,263,609 $ 291,049 $ 640,388 $ 931,437 $319,392 $ 283,622 $ 31,832 Real estate: Construction loans 413,803 293,003 0 293,003 0 254,788 17,823 Commercial mortgage loans 1,791,395 1,279,924 335,669 1,615,593 53,632 1,348,557 37,349 Residential loans 2,046,205 520,694 1,504,599 2,025,293 253,824 1,888,312 100,152 Agricultural loans 345,405 345,405 0 345,405 0 13,454 5,260 Consumer & other loans 14,506 31 14,475 14,506 1,604 14,506 688 Total loans $ 5,874,923 $ 2,730,106 $ 2,495,131 $ 5,225,237 $ 628,452 $ 3,803,239 $ 193,104 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2017 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 459,003 $ 208,032 $ 250,971 $ 459,003 $ 44,468 $ 169,930 $ 10,920 Real estate: Construction loans 549,599 428,799 0 428,799 0 162,698 24,487 Commercial mortgage loans 1,615,811 1,107,654 339,440 1,447,094 57,403 1,071,663 54,582 Residential loans 2,476,728 316,230 2,079,823 2,396,053 224,916 2,233,562 108,472 Agricultural loans 142,966 142,966 0 142,966 0 142,966 8,198 Consumer & other loans 21,815 846 20,969 21,815 4,992 9,003 521 Total loans $ 5,265,922 $ 2,204,527 $ 2,691,203 $ 4,895,730 $ 331,779 $ 3,789,822 $ 207,180 |
Schedule of Troubled Debt Restructuring by Loan Class | Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 or more days past due. September 30, 2018 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 0 0 0 0 0 0 Residential loans 2,293 0 1 2,293 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 31 0 1 31 0 0 Total TDRās $ 2,324 $ 0 2 $ 2,324 0 $ 0 December 31, 2017 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 0 0 0 0 0 0 Residential loans 3,397 0 1 3,397 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 846 0 1 846 0 0 Total TDRās $ 4,243 $ 0 2 $ 4,243 0 $ 0 |
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 non-accrual at September 30, 2018, and December 31, 2017. September 30, 2018 December 31, 2017 Accruing Nonaccruing Accruing Nonaccruing # Balance # Balance # Balance # Balance Type of concession: Payment modification 0 $ 0 0 $ 0 0 $ 0 0 $ 0 Rate reduction 0 0 0 0 0 0 0 0 Rate reduction, payment modification 2 2,324 0 0 2 4,243 0 0 Forbearance of interest 0 0 0 0 0 0 0 0 Total 2 $ 2,324 0 $ 0 2 $ 4,243 0 $ 0 |
Schedule of Internal Loan Grading By Class of Loans | The following tables present internal loan grading by class of loans as of September 30, 2018, and December 31, 2017: September 30, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,154,573 $ 0 $ 0 $ 23,162 $ 0 $ 224,196 $ 1,401,931 Grade 2- Above Avg. 0 0 0 0 0 47,124 47,124 Grade 3- Acceptable 24,816,412 2,808,071 29,509,132 25,720,496 17,661,087 1,279,310 101,794,508 Grade 4- Fair 56,818,038 27,698,598 71,453,241 74,159,559 14,240,468 3,595,146 247,965,050 Grade 5a- Watch 439,329 0 349,677 943,656 0 16,242 1,748,904 Grade 5b- OAEM 3,120,647 0 467,918 1,312,638 0 31 4,901,234 Grade 6- Substandard 995,450 293,003 4,155,220 2,637,962 332,679 15,930 8,430,244 Grade 7- Doubtful 373,218 0 0 0 0 0 373,218 Total loans $ 87,717,667 $ 30,799,672 $ 105,935,188 $ 104,797,473 $ 32,234,234 $ 5,177,979 $ 366,662,213 December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,371,135 $ 0 $ 0 $ 23,919 $ 0 $ 325,236 $ 1,720,290 Grade 2- Above Avg. 0 0 0 0 0 51,421 51,421 Grade 3- Acceptable 27,024,359 2,085,620 30,090,030 26,304,640 11,071,244 866,455 97,442,348 Grade 4- Fair 42,821,117 19,772,593 70,518,545 68,103,351 13,781,326 2,494,509 217,491,441 Grade 5a- Watch 120,626 0 1,027,581 757,628 39,344 7,572 1,952,751 Grade 5b- OAEM 557,070 0 3,073,051 1,226,841 338,741 1,357 5,197,060 Grade 6- Substandard 945,238 428,799 1,749,135 2,743,228 142,966 19,782 6,029,148 Grade 7- Doubtful 306,852 0 0 0 0 0 306,852 Total loans $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 |
Schedule of Allowance for Loan Losses Methodology | The annualized net charge-offs to average loans outstanding ratio was 0.22% for the nine months ended September 30, 2018, compared with 0.12% at December 31, 2017. Three months ended September 30, 2018 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, June 30, 2018 $ 437,661 $ 938,690 $ 1,084,477 $ 445,196 $ 91,022 $ 195,651 $ 3,192,697 Charge-offs 315,792 0 43,349 0 0 6,843 365,984 Recoveries 2,184 0 0 0 0 201 2,385 Net charge-offs 313,608 0 43,349 0 0 6,642 363,599 Provisions charged to operations 225,030 342 18,936 3,018 (524) 2,198 249,000 Balance at end of period, September 30, 2018 $ 349,083 $ 939,032 $ 1,060,064 $ 448,214 $ 90,498 $ 191,207 $ 3,078,098 Nine months ended September 30, 2018 September 30, 2018 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, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Charge-offs 524,620 783 43,349 6,909 0 6,844 582,505 Recoveries 9,460 0 0 0 1,200 1,811 12,471 Net charge-offs 515,160 783 43,349 6,909 (1,200 ) 5,033 570,034 Provisions charged to operations 539,983 (103,268 ) 46,818 38,649 77,738 4,580 604,500 Balance at end of period, September 30, 2018 $ 349,083 $ 939,032 $ 1,060,064 $ 448,214 $ 90,498 $ 191,207 $ 3,078,098 Ending balance - Individually evaluated for impairment $ 319,392 $ 0 $ 53,632 $ 253,824 $ 0 $ 1,604 $ 628,452 Collectively evaluated for impairment 29,691 939,032 1,006,432 194,390 90,498 189,603 2,449,646 Balance at end of period $ 349,083 $ 939,032 $ 1,060,064 $ 448,214 $ 90,498 $ 191,207 $ 3,078,098 Loans : Ending balance - Individually evaluated for impairment $ 931,437 $ 293,003 $ 1,615,593 $ 2,159,147 $ 345,405 $ 14,506 $ 5,359,091 Collectively evaluated for impairment 86,786,230 30,506,669 104,319,595 102,638,326 31,888,829 5,163,473 361,303,122 Balance at end of period $ 87,717,667 $ 30,799,672 $ 105,935,188 $ 104,797,473 $ 32,234,234 $ 5,177,979 $ 366,662,213 At September 30, 2018, of the $5,359,091 loans that were individually evaluated for impairment, only $5,225,237 were deemed impaired. The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 2017. December 31, 2017 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, 2016 $ 191,267 $ 1,043,083 $ 1,192,098 $ 420,189 $ 86,656 $ 191,318 $ 3,124,611 Charge-offs 113,334 0 168,717 59,764 93,503 12,429 447,747 Recoveries 63,486 0 0 0 0 3,282 66,768 Net charge-offs 49,848 0 168,717 59,764 93,503 9,147 380,979 Provisions charged to operations 182,841 0 33,214 56,049 18,407 9,489 300,000 Balance at end of period, December 31, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Ending balance - Individually evaluated for impairment $ 44,468 $ 0 $ 57,403 $ 224,916 $ 0 $ 4,992 $ 331,779 Collectively evaluated for impairment 279,792 1,043,083 999,192 191,558 11,560 186,668 2,711,853 Balance at end of period $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Loans : Ending balance - Individually evaluated for impairment $ 459,003 $ 428,799 $ 4,561,198 $ 2,448,531 $ 142,966 $ 21,815 $ 8,062,312 Collectively evaluated for impairment 72,687,394 21,858,213 101,897,144 96,711,076 25,230,655 3,744,517 322,128,999 Balance at end of period $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Maximum FDIC insured amount | $ 250,000 | $ 250,000 | |
Uninsured deposits | 0 | 0 | |
Bank property held for sale | 211,500 | 211,500 | $ 211,500 |
Allowance for foreclosed asset losses | 0 | ||
Foreclosed assets and residential real estate | 37,605 | 37,605 | 0 |
Bank owned life insurance policies | $ 6,676,559 | $ 6,676,559 | $ 6,553,318 |
Bank owned life insurance policies, stockholders equity, percentage | 15.70% | 15.70% | 15.90% |
Advertising expense | $ 63,066 | $ 180,613 | |
Minimum requirement of common equity Tier 1 risk-based capital ratio | 4.50% | 4.50% | |
Tier 1 risk-based capital ratio | 6.00% | 6.00% | |
Previous minimum requirement of Tier 1 risk-based capital ratio | 4.00% | 4.00% | |
Risk-based capital ratio | 8.00% | 8.00% | |
Tier 1 leverage ratio | 4.00% | 4.00% | |
Maximum [Member] | |||
Remaining life of intangible useful life | 1 year | ||
Total consolidated assets | $ 1,000,000,000 | $ 1,000,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Premises and Equipment (Details) | 9 Months Ended |
Sep. 30, 2018 | |
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 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) | Sep. 30, 2018 |
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 - Sched
Fair Value Measurements - Schedule of Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
U.S. government treasury securities | $ 925,160 | $ 967,770 |
U.S. government agency securities | 45,421,685 | 43,860,090 |
State and municipal securities | 7,307,293 | 7,573,689 |
Residential mortgage-backed securities | 4,922,067 | 1,861,712 |
Total | 58,576,205 | 54,263,261 |
Level 1 [Member] | ||
U.S. government treasury securities | 925,160 | 967,770 |
U.S. government agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Total | 925,160 | 967,770 |
Level 2 [Member] | ||
U.S. government treasury securities | 0 | 0 |
U.S. government agency securities | 45,421,685 | 43,860,090 |
State and municipal securities | 7,307,293 | 7,573,689 |
Residential mortgage-backed securities | 4,922,067 | 1,861,712 |
Total | 57,651,045 | 53,295,491 |
Level 3 [Member] | ||
U.S. government treasury securities | 0 | 0 |
U.S. government agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value of Assets Recorded on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Foreclosed assets | $ 127,605 | $ 758,878 |
Impaired loans | 4,596,785 | 4,563,951 |
Total assets at fair value | 4,724,390 | 5,322,829 |
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 | 127,605 | 758,878 |
Impaired loans | 4,596,785 | 4,563,951 |
Total assets at fair value | $ 4,724,390 | $ 5,322,829 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Carrying and Estimated Fair Value of Assets and Liabilities Recorded at Fair Value (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 25,518,492 | $ 34,138,421 | $ 20,287,834 | $ 26,519,916 |
Certificates of deposit in other banks | 1,985,000 | 1,985,000 | ||
Investment securities available for sale | 58,576,205 | 54,263,261 | ||
Investment securities held to maturity | 36,935,137 | 45,147,800 | ||
Federal Home Loan Bank stock | 2,257,400 | 2,438,200 | ||
Loans, net | 357,236,000 | 325,248,000 | ||
Bank owned life insurance | 6,676,559 | 6,553,318 | ||
Deposits | 426,555,000 | 397,331,000 | ||
Federal Home Loan Bank advances | 42,150,000 | 46,658,000 | ||
Level 1 [Member] | ||||
Cash and cash equivalents | 25,518,000 | 34,138,000 | ||
Certificates of deposit in other banks | 1,985,000 | 1,985,000 | ||
Investment securities available for sale | 925,000 | 968,000 | ||
Investment securities held to maturity | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Bank owned life insurance | 0 | 0 | ||
Deposits | 0 | 0 | ||
Federal Home Loan Bank 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 | 57,651,000 | 53,295,000 | ||
Investment securities held to maturity | 36,935,000 | 45,148,000 | ||
Federal Home Loan Bank stock | 2,257,000 | 2,438,000 | ||
Loans, net | 352,639,000 | 320,684,000 | ||
Bank owned life insurance | 6,677,000 | 6,553,000 | ||
Deposits | 426,555,000 | 397,331,000 | ||
Federal Home Loan Bank advances | 42,150,000 | 46,658,000 | ||
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 | 4,597,000 | 4,564,000 | ||
Bank owned life insurance | 0 | 0 | ||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Carrying Amount [Member] | ||||
Cash and cash equivalents | 25,518,000 | 34,138,000 | ||
Certificates of deposit in other banks | 1,985,000 | 1,985,000 | ||
Investment securities available for sale | 58,576,000 | 54,263,000 | ||
Investment securities held to maturity | 36,961,000 | 44,591,000 | ||
Federal Home Loan Bank stock | 2,257,000 | 2,438,000 | ||
Loans, net | 363,567,000 | 327,130,000 | ||
Bank owned life insurance | 6,677,000 | 6,553,000 | ||
Deposits | 426,248,000 | 397,006,000 | ||
Federal Home Loan Bank advances | $ 42,771,000 | $ 47,029,000 |
Investment Securities (Details
Investment Securities (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Integer | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Integer | Sep. 30, 2017USD ($) | |
Schedule of Investments [Abstract] | ||||
Sales of held to maturity securities | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Available-for-sale securities, number of debt securities | Integer | 109 | 109 | ||
Percentage of debt securities unrealized losses depreciated on amortized cost basis | 2.90% | 2.90% |
Investment Securities - Schedul
Investment Securities - Schedule of Securities Available for Sale (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Amortized Cost | $ 60,244,830 | $ 54,253,823 |
Unrealized Gains | 81,752 | 761,248 |
Unrealized Losses | 1,750,377 | 751,810 |
Total Estimated Fair Value | 58,576,205 | 54,263,261 |
U.S. Government Treasury Securities [Member] | ||
Amortized Cost | 981,520 | 979,983 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 56,360 | 12,213 |
Total Estimated Fair Value | 925,160 | 967,770 |
U.S. Government Agency Securities [Member] | ||
Amortized Cost | 46,873,936 | 43,978,023 |
Unrealized Gains | 59,672 | 580,366 |
Unrealized Losses | 1,511,923 | 698,299 |
Total Estimated Fair Value | 45,421,685 | 43,860,090 |
State and Municipal Securities [Member] | ||
Amortized Cost | 7,416,868 | 7,482,912 |
Unrealized Gains | 1,425 | 129,231 |
Unrealized Losses | 111,000 | 38,454 |
Total Estimated Fair Value | 7,307,293 | 7,573,689 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 4,972,506 | 1,812,905 |
Unrealized Gains | 20,655 | 51,651 |
Unrealized Losses | 71,094 | 2,844 |
Total Estimated Fair Value | $ 4,922,067 | $ 1,861,712 |
Investment Securities - Sched_2
Investment Securities - Schedule of Securities Held to Maturity (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | $ 36,960,598 | $ 44,590,841 |
Unrealized Gains | 201,514 | 605,174 |
Unrealized Losses | 226,975 | 48,215 |
Estimated Fair Value | 36,935,137 | 45,147,800 |
State and Municipal Securities [Member] | ||
Amortized Cost | 34,423,325 | 41,447,092 |
Unrealized Gains | 173,948 | 527,632 |
Unrealized Losses | 208,179 | 48,083 |
Estimated Fair Value | 34,389,094 | 41,926,641 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 2,537,273 | 3,143,749 |
Unrealized Gains | 27,566 | 77,542 |
Unrealized Losses | 18,796 | 132 |
Estimated Fair Value | $ 2,546,043 | $ 3,221,159 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Debt Securities (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
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 | 24,783,056 | 15,437,594 |
Available for Sale Amounts maturing in After five through ten years, Amortized Cost | 29,782,725 | 35,610,754 |
Available for Sale Amounts maturing in After ten years, Amortized Cost | 5,679,049 | 3,205,475 |
Total debt securities AFS, Amortized Cost | 60,244,830 | 54,253,823 |
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 | 24,516,365 | 15,556,274 |
Available for Sale Amounts maturing in After five through ten years, Estimated Fair Value | 28,443,405 | 35,441,617 |
Available for Sale Amounts maturing in After ten years, Estimated Fair Value | 5,616,435 | 3,265,370 |
Total debt securities AFS, Estimated Fair Value | 58,576,205 | 54,263,261 |
Held to Maturity Amounts maturing in One year or less, Amortized Cost | 8,145,043 | 9,812,609 |
Held to Maturity Amounts maturing in After one through five years, Amortized Cost | 14,799,992 | 19,467,142 |
Held to Maturity Amounts maturing in After five through ten years, Amortized Cost | 11,471,319 | 12,546,856 |
Held to Maturity Amounts maturing in After ten years, Amortized Cost | 2,544,244 | 2,764,234 |
Total securities HTM, Amortized Cost | 36,960,598 | 44,590,841 |
Held to Maturity Amounts maturing in One year or less, Estimated Fair Value | 8,157,231 | 9,821,948 |
Held to Maturity Amounts maturing in After one through five years, Estimated Fair Value | 14,853,083 | 19,680,375 |
Held to Maturity Amounts maturing in After five through ten years, Estimated Fair Value | 11,414,767 | 12,806,108 |
Held to Maturity Amounts maturing in After ten years, Estimated Fair Value | 2,510,056 | 2,839,369 |
Total securities HTM, Estimated Fair Value | $ 36,935,137 | $ 45,147,800 |
Investment Securities - Sched_3
Investment Securities - Schedule of Activity of Security Sales by Intention (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment Securities - Schedule Of Activity Of Security Sales By Intention | ||||
Proceeds from sale of available-for-sale securities | $ 0 | $ 3,065,000 | $ 0 | $ 5,741,211 |
Gross gains on sale of available-for-sale securities | 0 | 19,795 | 0 | 186,610 |
Gross losses on sale of available-for-sale securities | 0 | 0 | 0 | 0 |
Net gains on sales of available for sale securities | $ 0 | $ 19,795 | $ 0 | $ 186,610 |
Investment Securities - Sched_4
Investment Securities - Schedule of Information Pertaining to Securities Gross Unrealized Losses by Investments (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Less Than Twelve Months, Gross Unrealized Losses | $ 373,241 | $ 63,132 |
Less Than Twelve Months, Fair Value | 25,243,708 | 6,932,300 |
Twelve Months or More, Gross Unrealized Losses | 1,377,136 | 688,678 |
Twelve Months or More, Fair Value | 21,552,110 | 19,413,318 |
Less Than Twelve Months, Gross Unrealized Losses | 176,766 | 16,086 |
Less Than Twelve Months, Fair Value | 18,710,703 | 5,667,646 |
Twelve Months or More, Gross Unrealized Losses | 50,209 | 32,129 |
Twelve Months or More, Fair Value | 1,456,042 | 1,281,797 |
U.S. Government Treasury Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 12,213 |
Less Than Twelve Months, Fair Value | 0 | 967,770 |
Twelve Months or More, Gross Unrealized Losses | 56,360 | 0 |
Twelve Months or More, Fair Value | 925,160 | 0 |
U.S. Government Agency Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 261,504 | 34,083 |
Less Than Twelve Months, Fair Value | 16,365,195 | 4,988,630 |
Twelve Months or More, Gross Unrealized Losses | 1,250,419 | 664,216 |
Twelve Months or More, Fair Value | 18,688,666 | 18,347,439 |
State and Municipal Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 46,087 | 16,836 |
Less Than Twelve Months, Fair Value | 4,649,043 | 975,900 |
Twelve Months or More, Gross Unrealized Losses | 64,913 | 21,618 |
Twelve Months or More, Fair Value | 1,800,941 | 877,798 |
Less Than Twelve Months, Gross Unrealized Losses | 157,970 | 15,954 |
Less Than Twelve Months, Fair Value | 17,691,528 | 5,521,443 |
Twelve Months or More, Gross Unrealized Losses | 50,209 | 32,129 |
Twelve Months or More, Fair Value | 1,456,042 | 1,281,797 |
Residential Mortgage-Backed Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 65,650 | 0 |
Less Than Twelve Months, Fair Value | 4,229,470 | 0 |
Twelve Months or More, Gross Unrealized Losses | 5,444 | 2,844 |
Twelve Months or More, Fair Value | 137,343 | 188,081 |
Less Than Twelve Months, Gross Unrealized Losses | 18,796 | 132 |
Less Than Twelve Months, Fair Value | 1,019,175 | 146,203 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Twelve Months or More, Fair Value | $ 0 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Real estate loans | $ 273,766,567 | $ 253,278,582 | |
Loans pledged | 118,545,979 | ||
Loans placed on nonaccrual status amount | 2,123,416 | 1,674,656 | |
Past due loan over 90 days and still accruing | 0 | 0 | |
Interest income on nonaccrual | 53,548 | 41,496 | |
Impaired loans | 5,225,237 | 4,895,730 | |
Allowance for loan losses | 628,452 | 331,779 | |
Average impaired loans | $ 3,758,289 | ||
Interest income received during impairment | $ 156,041 | ||
Troubled debt restructuring | 2,324 | 4,243 | |
Troubled debt restructuring, charge -off | 0 | 0 | |
Allowance for loan losses allocated to TDRs | $ 0 | $ 0 | |
Annualized net charge-offs to average loans outstanding ratio | 0.22% | 0.12% | |
Individually evaluated for impairment | $ 5,359,091 | $ 8,062,312 | |
Deemed impaired loans | $ 5,225,237 | $ 4,895,730 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Loans outstanding | $ 366,662,213 | $ 330,191,311 |
Unearned interest and discount | (17,490) | (17,921) |
Allowance for loan losses | (3,078,098) | (3,043,632) |
Net loans | $ 363,566,625 | $ 327,129,758 |
Percentage of loan and allowance for loan losses | 100.00% | 100.00% |
Commercial, Financial and Agricultural Loans [Member] | ||
Loans outstanding | $ 87,717,667 | $ 73,146,397 |
Percentage of loan and allowance for loan losses | 23.90% | 22.20% |
Construction Loans [Member] | ||
Loans outstanding | $ 30,799,672 | $ 22,287,012 |
Percentage of loan and allowance for loan losses | 8.40% | 6.80% |
Commercial Mortgage Loans [Member] | ||
Loans outstanding | $ 105,935,188 | $ 106,458,342 |
Percentage of loan and allowance for loan losses | 28.90% | 32.20% |
Residential Loans [Member] | ||
Loans outstanding | $ 104,797,473 | $ 99,159,607 |
Percentage of loan and allowance for loan losses | 28.60% | 30.00% |
Agricultural Loans [Member] | ||
Loans outstanding | $ 32,234,234 | $ 25,373,621 |
Percentage of loan and allowance for loan losses | 8.80% | 7.70% |
Consumer and Other Loans [Member] | ||
Loans outstanding | $ 5,177,979 | $ 3,766,332 |
Percentage of loan and allowance for loan losses | 1.40% | 1.10% |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Maturities of Loan Portfolio (Details) - Commercial Financial, Agricultural and Construction [Member] | Sep. 30, 2018USD ($) |
In one year or less | $ 32,541,661 |
After one year but within five years | 57,128,967 |
After five years | 28,846,711 |
Total | $ 118,517,339 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Loans Due after One Year (Details) - Commercial Financial, Agricultural and Construction [Member] | Sep. 30, 2018USD ($) |
Loans With Predetermined Rates | $ 82,364,691 |
Loans With Floating Rates | 3,610,987 |
Total | $ 85,975,678 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Past Due Loans and Nonaccrual Loans (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Total Past Due Loans | $ 1,526,599 | $ 3,262,152 |
Nonaccrual Loans | 2,123,416 | 1,674,656 |
Current Loans | 363,012,198 | 325,254,503 |
Total Loans | 366,662,213 | 330,191,311 |
Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 1,526,599 | 3,262,152 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | ||
Total Past Due Loans | 517,622 | 364,527 |
Nonaccrual Loans | 225,511 | 394,455 |
Current Loans | 86,974,534 | 72,387,415 |
Total Loans | 87,717,667 | 73,146,397 |
Commercial, Financial and Agricultural Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 517,622 | 364,527 |
Commercial, Financial and Agricultural Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Construction Loans [Member] | ||
Total Past Due Loans | 314,468 | 198,861 |
Nonaccrual Loans | 189,830 | 0 |
Current Loans | 30,295,374 | 22,088,151 |
Total Loans | 30,799,672 | 22,287,012 |
Construction Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 314,468 | 198,861 |
Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Commercial Mortgage Loans [Member] | ||
Total Past Due Loans | 200,614 | 645,214 |
Nonaccrual Loans | 1,022,550 | 757,085 |
Current Loans | 104,712,024 | 105,056,043 |
Total Loans | 105,935,188 | 106,458,342 |
Commercial Mortgage Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 200,614 | 645,214 |
Commercial Mortgage Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Residential Loans [Member] | ||
Total Past Due Loans | 472,119 | 2,023,517 |
Nonaccrual Loans | 275,430 | 518,301 |
Current Loans | 104,049,924 | 96,617,789 |
Total Loans | 104,797,473 | 99,159,607 |
Residential Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 472,119 | 2,023,517 |
Residential Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Agricultural Loans [Member] | ||
Total Past Due Loans | 0 | 0 |
Nonaccrual Loans | 332,679 | 0 |
Current Loans | 31,901,555 | 25,373,621 |
Total Loans | 32,234,234 | 25,373,621 |
Agricultural Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Agricultural Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Consumer and Other Loans [Member] | ||
Total Past Due Loans | 21,776 | 30,033 |
Nonaccrual Loans | 77,416 | 4,815 |
Current Loans | 5,078,787 | 3,731,484 |
Total Loans | 5,177,979 | 3,766,332 |
Consumer and Other Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 21,776 | 30,033 |
Consumer and Other Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Impaired Loans Segregated by Class of Loans (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Unpaid Principal Balance | $ 5,874,923 | $ 5,265,922 |
Recorded Investment With No Allowance | 2,730,106 | 2,204,527 |
Recorded Investment With Allowance | 2,495,131 | 2,691,203 |
Total Recorded Investment | 5,225,237 | 4,895,730 |
Related Allowance | 628,452 | 331,779 |
Year-to-date Average Recorded Investment | 3,803,239 | 3,789,822 |
Interest Income Received During Impairment | 193,104 | 207,180 |
Commercial, Financial and Agricultural Loans [Member] | ||
Unpaid Principal Balance | 1,263,609 | 459,003 |
Recorded Investment With No Allowance | 291,049 | 208,032 |
Recorded Investment With Allowance | 640,388 | 250,971 |
Total Recorded Investment | 931,437 | 459,003 |
Related Allowance | 319,392 | 44,468 |
Year-to-date Average Recorded Investment | 283,622 | 169,930 |
Interest Income Received During Impairment | 31,832 | 10,920 |
Construction Loans [Member] | ||
Unpaid Principal Balance | 413,803 | 549,599 |
Recorded Investment With No Allowance | 293,003 | 428,799 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 293,003 | 428,799 |
Related Allowance | 0 | 0 |
Year-to-date Average Recorded Investment | 254,788 | 162,698 |
Interest Income Received During Impairment | 17,823 | 24,487 |
Commercial Mortgage Loans [Member] | ||
Unpaid Principal Balance | 1,791,395 | 1,615,811 |
Recorded Investment With No Allowance | 1,279,924 | 1,107,654 |
Recorded Investment With Allowance | 335,669 | 339,440 |
Total Recorded Investment | 1,615,593 | 1,447,094 |
Related Allowance | 53,632 | 57,403 |
Year-to-date Average Recorded Investment | 1,348,557 | 1,071,663 |
Interest Income Received During Impairment | 37,349 | 54,582 |
Residential Loans [Member] | ||
Unpaid Principal Balance | 2,046,205 | 2,476,728 |
Recorded Investment With No Allowance | 520,694 | 316,230 |
Recorded Investment With Allowance | 1,504,599 | 2,079,823 |
Total Recorded Investment | 2,025,293 | 2,396,053 |
Related Allowance | 253,824 | 224,916 |
Year-to-date Average Recorded Investment | 1,888,312 | 2,233,562 |
Interest Income Received During Impairment | 100,152 | 108,472 |
Agricultural Loans [Member] | ||
Unpaid Principal Balance | 345,405 | 142,966 |
Recorded Investment With No Allowance | 345,405 | 142,966 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 345,405 | 142,966 |
Related Allowance | 0 | 0 |
Year-to-date Average Recorded Investment | 13,454 | 142,966 |
Interest Income Received During Impairment | 5,260 | 8,198 |
Consumer and Other Loans [Member] | ||
Unpaid Principal Balance | 14,506 | 21,815 |
Recorded Investment With No Allowance | 31 | 846 |
Recorded Investment With Allowance | 14,475 | 20,969 |
Total Recorded Investment | 14,506 | 21,815 |
Related Allowance | 1,604 | 4,992 |
Year-to-date Average Recorded Investment | 14,506 | 9,003 |
Interest Income Received During Impairment | $ 688 | $ 521 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructuring by Loan Class (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Troubled Debt Restructuring | $ 2,324 | $ 4,243 |
Current [Member] | ||
Troubled Debt Restructuring | 2,324 | 4,243 |
Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Accruing [Member] | ||
Troubled Debt Restructuring | 2,324 | 4,243 |
Non-accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Non-accruing [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] | Accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Construction Loans [Member] | Non-accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial Mortgage Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial Mortgage Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial Mortgage Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial Mortgage Loans [Member] | Non-accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Residential Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 2,293 | 3,397 |
Residential Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Residential Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 2,293 | 3,397 |
Residential Loans [Member] | Non-accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Agricultural Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Agricultural Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Agricultural Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Agricultural Loans [Member] | Non-accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Consumer and Other Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 31 | 846 |
Consumer and Other Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Consumer and Other Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 31 | 846 |
Consumer and Other Loans [Member] | Non-accruing [Member] | ||
Troubled Debt Restructuring | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings By Types of Concessions Made (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Accruing [Member] | ||
Payment modification | $ 0 | $ 0 |
Rate reduction | 0 | 0 |
Rate reduction, payment modification | 2,324 | 4,243 |
Forbearance of interest | 0 | 0 |
Total | 2,324 | 4,243 |
Non-accruing [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_11
Loans and Allowance for Loan Losses - Schedule of Internal Loan Grading by Class of Loans (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Total Loans | $ 366,662,213 | $ 330,191,311 |
Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 87,717,667 | 73,146,397 |
Construction Loans [Member] | ||
Total Loans | 30,799,672 | 22,287,012 |
Commercial Mortgage Loans [Member] | ||
Total Loans | 105,935,188 | 106,458,342 |
Residential Loans [Member] | ||
Total Loans | 104,797,473 | 99,159,607 |
Agricultural Loans [Member] | ||
Total Loans | 32,234,234 | 25,373,621 |
Consumer and Other Loans [Member] | ||
Total Loans | 5,177,979 | 3,766,332 |
Rating, Grade 1- Exceptional [Member] | ||
Total Loans | 1,401,931 | 1,720,290 |
Rating, Grade 1- Exceptional [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 1,154,573 | 1,371,135 |
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 | 23,162 | 23,919 |
Rating, Grade 1- Exceptional [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 224,196 | 325,236 |
Rating, Grade 2- Above Avg. [Member] | ||
Total Loans | 47,124 | 51,421 |
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 | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 47,124 | 51,421 |
Rating, Grade 3- Acceptable [Member] | ||
Total Loans | 101,794,508 | 97,442,348 |
Rating, Grade 3- Acceptable [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 24,816,412 | 27,024,359 |
Rating, Grade 3- Acceptable [Member] | Construction Loans [Member] | ||
Total Loans | 2,808,071 | 2,085,620 |
Rating, Grade 3- Acceptable [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 29,509,132 | 30,090,030 |
Rating, Grade 3- Acceptable [Member] | Residential Loans [Member] | ||
Total Loans | 25,720,496 | 26,304,640 |
Rating, Grade 3- Acceptable [Member] | Agricultural Loans [Member] | ||
Total Loans | 17,661,087 | 11,071,244 |
Rating, Grade 3- Acceptable [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 1,279,310 | 866,455 |
Rating, Grade 4- Fair [Member] | ||
Total Loans | 247,965,050 | 217,491,441 |
Rating, Grade 4- Fair [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 56,818,038 | 42,821,117 |
Rating, Grade 4- Fair [Member] | Construction Loans [Member] | ||
Total Loans | 27,698,598 | 19,772,593 |
Rating, Grade 4- Fair [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 71,453,241 | 70,518,545 |
Rating, Grade 4- Fair [Member] | Residential Loans [Member] | ||
Total Loans | 74,159,559 | 68,103,351 |
Rating, Grade 4- Fair [Member] | Agricultural Loans [Member] | ||
Total Loans | 14,240,468 | 13,781,326 |
Rating, Grade 4- Fair [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 3,595,146 | 2,494,509 |
Rating, Grade 5a- Watch [Member] | ||
Total Loans | 1,748,904 | 1,952,751 |
Rating, Grade 5a- Watch [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 439,329 | 120,626 |
Rating, Grade 5a- Watch [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5a- Watch [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 349,677 | 1,027,581 |
Rating, Grade 5a- Watch [Member] | Residential Loans [Member] | ||
Total Loans | 943,656 | 757,628 |
Rating, Grade 5a- Watch [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 39,344 |
Rating, Grade 5a- Watch [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 16,242 | 7,572 |
Rating, Grade 5b- OAEM [Member] | ||
Total Loans | 4,901,234 | 5,197,060 |
Rating, Grade 5b- OAEM [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 3,120,647 | 557,070 |
Rating, Grade 5b- OAEM [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5b- OAEM [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 467,918 | 3,073,051 |
Rating, Grade 5b- OAEM [Member] | Residential Loans [Member] | ||
Total Loans | 1,312,638 | 1,226,841 |
Rating, Grade 5b- OAEM [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 338,741 |
Rating, Grade 5b- OAEM [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 31 | 1,357 |
Rating, Grade 6- Substandard [Member] | ||
Total Loans | 8,430,244 | 6,029,148 |
Rating, Grade 6- Substandard [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 995,450 | 945,238 |
Rating, Grade 6- Substandard [Member] | Construction Loans [Member] | ||
Total Loans | 293,003 | 428,799 |
Rating, Grade 6- Substandard [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 4,155,220 | 1,749,135 |
Rating, Grade 6- Substandard [Member] | Residential Loans [Member] | ||
Total Loans | 2,637,962 | 2,743,228 |
Rating, Grade 6- Substandard [Member] | Agricultural Loans [Member] | ||
Total Loans | 332,679 | 142,966 |
Rating, Grade 6- Substandard [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 15,930 | 19,782 |
Rating, Grade 7- Doubtful [Member] | ||
Total Loans | 373,218 | 306,852 |
Rating, Grade 7- Doubtful [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 373,218 | 306,852 |
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 | 0 | 0 |
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_12
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses Methodology (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Beginning balance | $ 3,192,697 | $ 3,043,632 | $ 3,124,611 |
Charge-offs | 365,984 | 582,505 | 447,747 |
Recoveries | 2,385 | 12,471 | 66,768 |
Net charge-offs | 363,599 | 570,034 | 380,979 |
Provisions charged to operations | 249,000 | 604,500 | 300,000 |
Individually evaluated for impairment | 628,452 | 628,452 | 331,779 |
Collectively evaluated for impairment | 2,449,646 | 2,449,646 | 2,711,853 |
Balance at end of period | 3,078,098 | 3,078,098 | 3,043,632 |
Individually evaluated for impairment | 5,359,091 | 5,359,091 | 8,062,312 |
Collectively evaluated for impairment | 361,303,122 | 361,303,122 | 322,128,999 |
Balance at end of period | 366,662,213 | 366,662,213 | 330,191,311 |
Commercial, Financial and Agricultural [Member] | |||
Beginning balance | 437,661 | 324,260 | 191,267 |
Charge-offs | 315,792 | 524,620 | 113,334 |
Recoveries | 2,184 | 9,460 | 63,486 |
Net charge-offs | 313,608 | 515,160 | 49,848 |
Provisions charged to operations | 225,030 | 539,983 | 182,841 |
Individually evaluated for impairment | 319,392 | 319,392 | 44,468 |
Collectively evaluated for impairment | 29,691 | 29,691 | 279,792 |
Balance at end of period | 349,083 | 349,083 | 324,260 |
Individually evaluated for impairment | 931,437 | 931,437 | 459,003 |
Collectively evaluated for impairment | 86,786,230 | 86,786,230 | 72,687,394 |
Balance at end of period | 87,717,667 | 87,717,667 | 73,146,397 |
Construction Real Estate [Member] | |||
Beginning balance | 938,690 | 1,043,083 | 1,043,083 |
Charge-offs | 0 | 783 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 783 | 0 |
Provisions charged to operations | 342 | (103,268) | 0 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 939,032 | 939,032 | 1,043,083 |
Balance at end of period | 939,032 | 939,032 | 1,043,083 |
Individually evaluated for impairment | 293,003 | 293,003 | 428,799 |
Collectively evaluated for impairment | 30,506,669 | 30,506,669 | 21,858,213 |
Balance at end of period | 30,799,672 | 30,799,672 | 22,287,012 |
Commercial Real Estate [Member] | |||
Beginning balance | 1,084,477 | 1,056,595 | 1,192,098 |
Charge-offs | 43,349 | 43,349 | 168,717 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 43,349 | 43,349 | 168,717 |
Provisions charged to operations | 18,936 | 46,818 | 33,214 |
Individually evaluated for impairment | 53,632 | 53,632 | 57,403 |
Collectively evaluated for impairment | 1,006,432 | 1,006,432 | 999,192 |
Balance at end of period | 1,060,064 | 1,060,064 | 1,056,595 |
Individually evaluated for impairment | 1,615,593 | 1,615,593 | 4,561,198 |
Collectively evaluated for impairment | 104,319,595 | 104,319,595 | 101,897,144 |
Balance at end of period | 105,935,188 | 105,935,188 | 106,458,342 |
Residential Real Estate [Member] | |||
Beginning balance | 445,196 | 416,474 | 420,189 |
Charge-offs | 0 | 6,909 | 59,764 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 6,909 | 59,764 |
Provisions charged to operations | 3,018 | 38,649 | 56,049 |
Individually evaluated for impairment | 253,824 | 253,824 | 224,916 |
Collectively evaluated for impairment | 194,390 | 194,390 | 191,558 |
Balance at end of period | 448,214 | 448,214 | 416,474 |
Individually evaluated for impairment | 2,159,147 | 2,159,147 | 2,448,531 |
Collectively evaluated for impairment | 102,638,326 | 102,638,326 | 96,711,076 |
Balance at end of period | 104,797,473 | 104,797,473 | 99,159,607 |
Agricultural Real Estate [Member] | |||
Beginning balance | 91,022 | 11,560 | 86,656 |
Charge-offs | 0 | 0 | 93,503 |
Recoveries | 0 | 1,200 | 0 |
Net charge-offs | 0 | (1,200) | 93,503 |
Provisions charged to operations | (524) | 77,738 | 18,407 |
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 90,498 | 90,498 | 11,560 |
Balance at end of period | 90,498 | 90,498 | 11,560 |
Individually evaluated for impairment | 345,405 | 345,405 | 142,966 |
Collectively evaluated for impairment | 31,888,829 | 31,888,829 | 25,230,655 |
Balance at end of period | 32,234,234 | 32,234,234 | 25,373,621 |
Consumer and Other [Member] | |||
Beginning balance | 195,651 | 191,660 | 191,318 |
Charge-offs | 6,843 | 6,844 | 12,429 |
Recoveries | 201 | 1,811 | 3,282 |
Net charge-offs | 6,642 | 5,033 | 9,147 |
Provisions charged to operations | 2,198 | 4,580 | 9,489 |
Individually evaluated for impairment | 1,604 | 1,604 | 4,992 |
Collectively evaluated for impairment | 189,603 | 189,603 | 186,668 |
Balance at end of period | 191,207 | 191,207 | 191,660 |
Individually evaluated for impairment | 14,506 | 14,506 | 21,815 |
Collectively evaluated for impairment | 5,163,473 | 5,163,473 | 3,744,517 |
Balance at end of period | $ 5,177,979 | $ 5,177,979 | $ 3,766,332 |