Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 04, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | SOUTHWEST GEORGIA FINANCIAL CORP | |
Entity Central Index Key | 0000315849 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
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 | Q1 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 11,348,240 | $ 14,050,682 |
Interest-bearing deposits in other banks | 37,666,935 | 21,448,110 |
Cash and cash equivalents | 49,015,175 | 35,498,792 |
Certificates of deposit in other banks | 2,732,000 | 2,732,000 |
Investment securities available for sale, at fair value | 62,962,079 | 58,313,577 |
Investment securities held to maturity (fair value approximates $35,674,367 and $37,010,327) | 35,184,883 | 36,827,073 |
Federal Home Loan Bank stock, at cost | 1,019,900 | 1,820,300 |
Total investment securities | 99,166,862 | 96,960,950 |
Loans | 377,711,765 | 376,767,688 |
Less: Unearned income | (17,390) | (17,451) |
Allowance for loan losses | (3,366,927) | (3,428,869) |
Loans, net | 374,327,448 | 373,321,368 |
Premises and equipment, net | 14,443,696 | 14,573,974 |
Foreclosed assets | 127,605 | 127,605 |
Intangible assets | 0 | 3,907 |
Bank owned life insurance | 6,812,589 | 6,779,242 |
Other assets | 4,445,793 | 4,835,329 |
Total assets | 551,071,168 | 534,833,167 |
Deposits: | ||
Interest bearing business checking | 33,419,254 | 28,070,871 |
NOW accounts | 40,651,250 | 35,816,115 |
Money Market | 163,903,769 | 158,730,044 |
Savings | 33,580,463 | 31,848,588 |
Certificates of deposit $250,000 and over | 16,831,531 | 16,264,681 |
Other time accounts | 85,564,731 | 81,214,376 |
Total interest-bearing deposits | 373,950,998 | 351,944,675 |
Noninterest-bearing deposits | 114,667,559 | 103,694,910 |
Total deposits | 488,618,557 | 455,639,585 |
Short-term borrowed funds | 4,100,000 | 10,457,143 |
Long-term debt | 9,600,000 | 21,171,429 |
Other liabilities | 3,492,686 | 3,946,066 |
Total liabilities | 505,811,243 | 491,214,223 |
Stockholders' equity: | ||
Common stock - $1 par value, 5,000,000 shares authorized, 2,545,776 shares issued | 2,545,776 | 2,545,776 |
Capital surplus | 18,418,995 | 18,418,995 |
Retained earnings | 25,764,780 | 24,841,569 |
Accumulated other comprehensive loss | (1,469,626) | (2,187,396) |
Total stockholders' equity | 45,259,925 | 43,618,944 |
Total liabilities and stockholders' equity | $ 551,071,168 | $ 534,833,167 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 35,674,367 | $ 37,010,327 |
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 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Interest and fees on loans | $ 5,121,187 | $ 4,293,240 |
Interest on taxable securities available for sale | 334,433 | 288,646 |
Interest on taxable securities held to maturity | 54,058 | 28,147 |
Interest on tax exempt securities | 237,772 | 291,004 |
Dividends | 26,857 | 31,947 |
Interest on deposits in other banks | 170,893 | 117,828 |
Interest on certificates of deposit in other banks | 16,846 | 11,565 |
Total interest income | 5,962,046 | 5,062,377 |
Interest expense: | ||
Interest on deposits | 1,050,306 | 372,473 |
Interest on federal funds purchased | 6 | 6 |
Interest on other short-term borrowings | 35,986 | 115,668 |
Interest on long-term debt | 109,422 | 125,833 |
Total interest expense | 1,195,720 | 613,980 |
Net interest income | 4,766,326 | 4,448,397 |
Provision for loan losses | 115,908 | 215,500 |
Net interest income after provision for loan losses | 4,650,418 | 4,232,897 |
Noninterest income: | ||
Service charges on deposit accounts | 238,149 | 224,589 |
Income from trust services | 56,606 | 58,833 |
Income from retail brokerage services | 106,748 | 88,395 |
Income from insurance services | 436,649 | 388,239 |
Income from mortgage banking services | 0 | 620 |
Net gain (loss) on sale or disposition of assets | 898 | (7,155) |
Net gain on extinguishment of debt | 143,031 | 0 |
Other income | 254,966 | 240,883 |
Total noninterest income | 1,237,047 | 994,404 |
Noninterest expense: | ||
Salaries and employee benefits | 2,496,204 | 2,341,119 |
Occupancy expense | 314,509 | 289,426 |
Equipment expense | 308,020 | 190,269 |
Data processing expense | 403,553 | 353,790 |
Amortization of intangible assets | 3,907 | 3,906 |
Other operating expenses | 889,398 | 817,068 |
Total noninterest expenses | 4,415,591 | 3,995,578 |
Income before income taxes | 1,471,874 | 1,231,723 |
Provision for (benefit from) income taxes | 243,168 | (643) |
Net income | $ 1,228,706 | $ 1,232,366 |
Earnings per share of common stock: | ||
Net income, basic | $ 0.48 | $ 0.48 |
Net income, diluted | 0.48 | 0.48 |
Dividends paid per share | $ 0.12 | $ 0.11 |
Weighted average shares outstanding | 2,545,776 | 2,544,922 |
Diluted average shares outstanding | 2,545,776 | 2,544,922 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,228,706 | $ 1,232,366 |
Other comprehensive income (loss), net of tax: | ||
Unrealized holding gain (loss) onĀ investment securities available for sale | 908,569 | (973,869) |
Reclassification adjustment for (gain) loss realized in income on securities available for sale | 0 | 0 |
Less: Tax effect | 190,799 | (204,513) |
Total other comprehensive income (loss), net of tax | 717,770 | (769,356) |
Total comprehensive income | $ 1,946,476 | $ 463,010 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 4,293,835 | $ 31,701,533 | $ 33,020,030 | $ (1,629,619) | $ (26,242,793) | $ 41,142,986 |
Net Income | 1,232,366 | 1,232,366 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | (769,356) | (769,356) | ||||
Cash dividend declared $11 and $12 per share | (280,035) | (280,035) | ||||
Retirement of treasury stock | (1,748,059) | (12,994,133) | (11,500,601) | 26,242,793 | ||
Balance at Mar. 31, 2018 | 2,545,776 | 18,707,400 | 22,471,760 | (2,398,975) | 0 | 41,325,961 |
Balance at Dec. 31, 2018 | 2,545,776 | 18,418,995 | 24,841,569 | (2,187,396) | 0 | 43,618,944 |
Net Income | 1,228,706 | 1,228,706 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | 717,770 | 717,770 | ||||
Cash dividend declared $11 and $12 per share | (305,495) | (305,495) | ||||
Balance at Mar. 31, 2019 | $ 2,545,776 | $ 18,418,995 | $ 25,764,780 | $ (1,469,626) | $ 0 | $ 45,259,925 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.12 | $ .11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,228,706 | $ 1,232,366 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 115,908 | 215,500 |
Depreciation | 303,750 | 237,452 |
Net amortization of investment securities | 63,560 | 90,812 |
Income on cash surrender value of bank owned life insurance | (33,347) | (41,556) |
Amortization of intangibles | 3,907 | 3,906 |
(Gain) loss on sale/writedown of foreclosed assets | (898) | 7,521 |
Net gain on extinguishment of debt | (143,031) | 0 |
Change in: | ||
Other assets | 183,666 | 267,377 |
Other liabilities | (453,128) | (565,517) |
Net cash provided by operating activities | 1,269,093 | 1,447,861 |
Cash flows from investing activities: | ||
Proceeds from calls, paydowns and maturities of securities HTM | 1,628,603 | 649,921 |
Proceeds from calls, paydowns and maturities of securities AFS | 175,813 | 125,115 |
Proceeds from Federal Home Loan Bank stock repurchase | 840,900 | 0 |
Purchase of securities available for sale | (3,965,719) | (3,011,243) |
Purchase of Federal Home Loan Bank Stock | (40,500) | (36,600) |
Net change in loans | (1,121,988) | (5,477,008) |
Purchase of premises and equipment | (178,472) | (966,591) |
Proceeds from sales of fixed assets and foreclosed assets | 20,717 | 954,791 |
Net cash used by investing activities | (2,640,646) | (7,761,615) |
Cash flows from financing activities: | ||
Net change in deposits | 32,978,972 | 21,442,815 |
Payment of short-term portion of long-term debt | (7,283,601) | 0 |
Payment for early retirement of long-term debt | (11,501,940) | 0 |
Proceeds from issuance of short-term debt | 1,000,000 | 0 |
Cash dividends paid | (305,495) | (280,035) |
Net cash provided by financing activities | 14,887,936 | 21,162,780 |
Increase in cash and cash equivalents | 13,516,383 | 14,849,026 |
Cash and cash equivalents - beginning of period | 35,498,792 | 34,138,421 |
Cash and cash equivalents - end of period | 49,015,175 | 48,987,447 |
NONCASH ITEMS: | ||
Increase in foreclosed properties and decrease in loans | 0 | 376,050 |
Unrealized gain (loss) on securities available for sale | 908,569 | (973,869) |
Net reclass between short and long-term debt | 0 | 1,500,000 |
Retirement of treasury stock | 0 | 26,242,793 |
Receivable from sale of guaranteed foreclosed asset | $ 0 | $ 172,616 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 2nd Avenue SW in Moultrie, and lending services are offered in Valdosta at 3520 North Valdosta Road. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains independent appraisals for significant properties. A substantial portion of the 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. 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 no uninsured deposits at March 31, 2019. Investment Securities Investment 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 are classified as available for sale and recorded at fair value with unrealized gains and losses (net of tax effect) 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 the lower of cost or market value based on the current appraisal of $211,500. On November 30, 2018, the Corporation sold this property and recorded a loss in the amount of $96,750. 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. 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 March 31, 2019. Foreclosed assets totaled $127,605 at March 31, 2019 and December 31, 2018. 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. All intangibles were fully amortized as of March 31, 2019. Credit Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Retirement Plans The Corporation and its direct and indirect subsidiaries have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts not exceeding the regulatory requirements. Bank Owned Life Insurance The 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 March 31, 2019, and December 31, 2018, the policies had a value of $6,812,589 and $6,779,242, respectively, and were 15.1% and 15.5%, 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, 2016 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 $75,750 and $50,901 for the three month periods ended March 31, 2019 and 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 December 31, 2018, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since December 31, 2018, that management believes has changed the Bankās status as āwell-capitalized.ā The capital ratios of the Corporation and Bank are presented in Note 15 of the Corporationās Notes to Consolidated Financial Statements. 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. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 118. The amendments in this update were effective upon issuance. The adoption of ASU 2018-05 had no material impact on the Corporationās consolidated financial statements. 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. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 117. The amendments in this update were effective upon issuance. The adoption of ASU 2018-04 had no material impact on the Corporationās consolidated financial statements. In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10). This Update clarifies certain aspects of the guidance issued in ASU 2016-01 including (i) an entity measuring an equity security using the measurement alternative may make an irrevocable election to change its measurement approach to a fair value method under Topic 820 for that security and any identical or similar investments of the same issuer, (ii) fair value adjustments under the measurement alternative should be as of the date the observable transaction for a similar security occurred, (iii) requiring the remeasurement of the entire value of forward contracts and purchased options when observable transactions occur on the underlying equity securities, (iv) financial liabilities for which the fair value option is elected should follow the guidance in paragraph 825-10-45-5, (v) changes in the fair value of financial liabilities for which the fair value option is elected relating to the instrument-specific credit risk should first be measured in the currency of denomination and then both components of the change in fair value should be remeasured into the reporting entity's functional currency using end-of-period spot rates, and (vi) the prospective transition approach should only be applied for instances in which the measurement alternative is applied. The guidance was effective for interim periods beginning after June 15, 2018 and may be early adopted provided ASU 2016-01 was adopted. The Company adopted the amendments in this ASU effective January 1, 2018. The adoption of ASU 2018-03 had no material impact on the Corporationās consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement ā Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 provides guidance on accounting for the effects of the Tax Cuts and Jobs Act, which was enacted in December, 2017. The guidance allows reclassification of the tax effects that were stranded in accumulated other comprehensive income as a result of the tax rate change from accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018. The adoption of ASU 2018-02 had no material impact on the Corporationās consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, āStock Compensation, Scope of Modification Accounting.ā This ASU clarifies when changes to the terms of conditions of a share-based payment award must be accounted for as modifications. Companies will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The new guidance should reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications, as the guidance will allow companies to make certain non-substantive changes to awards without accounting for them as modifications. It does not change the accounting for modifications. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017; early adoption is permitted. The adoption of ASU 2017-09 had no material impact on the Corporationās consolidated financial statements. 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. This ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonable estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative effect adjustment to retained earnings on the date of adoption. The adoption of ASU 2017-08 had no material impact on the Corporationās consolidated financial statements. 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. The updated accounting guidance requires changes to the presentation of the components of net periodic benefit cost on the income statement by requiring service cost to be presented with other employee compensation costs and other components of net periodic pension cost to be presented outside of any subtotal of operating income. This ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2017-07 had no material impact on the Corporationās consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), which provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption will be permitted and should apply it to transactions that have not been reported in financial statements that have been issued or made available for issuance. The adoption of ASU 2017-01 had no material impact on the Corporationās consolidated financial statements. 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. The amendments in this ASU (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018. The adoption of 2016-01 had no material impact on the Corporationās consolidated financial statements. 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 (Topic 606), ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, and ASU 2017-05 Other Income - Gains and losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This new guidance, which does not apply to financial instruments, provides that revenue should be recognized for the transfer of goods and services to customers in an amount equal to the consideration it receives or expects to receive. The guidance also includes expanded disclosure requirements that provide comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018, using the modified retrospective method. Since there was no change to net income upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not necessary. See below for additional information related to revenue generated from contracts with customers. In 2016, the FASB issued ASU 2016-02 ā Leases (Topic 842). ASU 2016-02 amends the existing standards for lease accounting effectively requiring most leases be carried on the balance sheets of the related lessees by requiring them to recognize a right-of-use asset and a corresponding lease liability. ASU 2016-02 includes qualitative and quantitative disclosure requirements intended to provide greater insight into the nature of an entityās leasing activities. The standard must be adopted using a modified retrospective transition with a cumulative-effect adjustment to equity as of the beginning of the period in which it is adopted. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods with early adoption permitted. The adoption of ASU No. 2016-02 had no material impact on the Corporationās consolidated financial statements. 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 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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 an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Corporation records the other real estate asset as nonrecurring Level 3. 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 March 31, 2019, and December 31, 2018. March 31, 2019 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $3,965,670 $ 0 $ 0 $ 3,965,670 U.S. government agency securities 0 46,884,851 0 46,884,851 State and municipal securities 0 7,478,656 0 7,478,656 Residential mortgage-backed securities 0 4,632,902 0 4,632,902 Total $ 3,965,670 $ 58,996,409 $ 0 $ 62,962,079 December 31, 2018 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 954,570 $ 0 $ 0 $ 954,570 U.S. government agency securities 0 45,207,005 0 45,207,005 State and municipal securities 0 7,377,935 0 7,377,935 Residential mortgage-backed securities 0 4,774,067 0 4,774,067 Total $ 954,570 $ 57,359,007 $ 0 $ 58,313,577 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 March 31, 2019, and December 31, 2018. March 31, 2019 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 3,504,692 3,504,692 Total assets at fair value $ 0 $ 0 $ 3,632,297 $ 3,632,297 December 31, 2018 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 3,838,151 3,838,151 Total assets at fair value $ 0 $ 0 $ 3,965,756 $ 3,965,756 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 a range of 80 ā 85% of appraised value which considers the estimated costs to sell. Specific reserves are established for impaired loans based on appraised value of collateral or discounted cash flows. The carrying amount and estimated fair values of the Corporationās assets and liabilities which are required to be either disclosed or recorded at fair value at March 31, 2019, and December 31, 2018: Estimated Fair Value March 31, 2019 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 49,015 $ 49,015 $ 0 $ 0 $ 49,015 Certificates of deposit in other banks 2,732 2,732 0 0 2,732 Investment securities available for sale 62,962 3,966 58,996 0 62,962 Investment securities held to maturity 35,185 0 35,674 0 35,674 Federal Home Loan Bank stock 1,020 0 1,020 0 1,020 Loans, net 374,327 0 360,840 3,505 364,345 Bank owned life insurance 6,813 0 6,813 0 6,813 Liabilities: Deposits 488,619 0 457,973 0 457,973 Federal Home Loan Bank advances 13,700 0 13,747 0 13,747 Estimated Fair Value December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 35,499 $ 35,499 $ 0 $ 0 $ 35,499 Certificates of deposit in other banks 2,732 2,732 0 0 2,732 Investment securities available for sale 58,314 955 57,359 0 58,314 Investment securities held to maturity 36,827 0 37,010 0 37,010 Federal Home Loan Bank stock 1,820 0 1,820 0 1,820 Loans, net 373,321 0 362,373 3,838 366,211 Bank owned life insurance 6,779 0 6,779 0 6,779 Liabilities: Deposits 455,640 0 456,245 0 456,245 Federal Home Loan Bank advances 31,629 0 31,591 0 31,591 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, and December 31, 2018, were as follows: Securities Available For Sale: March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 3,963,014 $ 9,560 $ 6,904 $ 3,965,670 U.S. government agency securities 46,786,921 563,946 466,017 46,884,850 State and municipal securities 7,371,821 123,149 16,313 7,478,657 Residential mortgage-backed securities 4,587,762 48,726 3,586 4,632,902 Total debt securities AFS $ 62,709,518 $ 745,381 $ 492,820 $ 62,962,079 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 982,044 $ 0 $ 27,474 $ 954,570 U.S. government agency securities 45,823,595 264,567 881,157 45,207,005 State and municipal securities 7,394,278 30,579 46,922 7,377,935 Residential mortgage-backed securities 4,769,668 21,579 17,180 4,774,067 Total debt securities AFS $ 58,969,585 $ 316,725 $ 972,733 $ 58,313,577 Securities Held to Maturity March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $29,216,837 $ 391,743 $ 26,272 $29,582,308 Residential mortgage-backed securities 5,968,046 124,896 883 6,092,059 Total securities HTM $ 35,184,883 $ 516,639 $ 27,155 $ 35,674,367 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 30,582,785 $ 208,480 $ 67,434 $ 30,723,831 Residential mortgage-backed securities 6,244,288 49,490 7,282 6,286,496 Total securities HTM $ 36,827,073 $ 257,970 $ 74,716 $ 37,010,327 The amortized cost and estimated fair value of securities at March 31, 2019, and December 31, 2018, 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. March 31, 2019 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 3,140,872 $ 3,125,810 After one through five years 34,952,755 35,257,684 After five through ten years 19,183,448 19,097,610 After ten years 5,432,443 5,480,975 Total debt securities AFS $ 62,709,518 $ 62,962,079 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 6,480,829 $ 6,489,447 After one through five years 11,885,478 12,001,454 After five through ten years 11,125,453 11,354,541 After ten years 5,693,123 5,828,925 Total securities HTM $ 35,184,883 $ 35,674,367 December 31, 2018 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 2,147,059 $ 2,124,645 After one through five years 29,691,474 29,674,236 After five through ten years 21,585,776 20,968,318 After ten years 5,545,276 5,546,378 5 Total debt securities AFS $ 58,969,585 $ 58,313,577 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 6,483,464 $ 6,497,910 After one through five years 12,885,021 12,961,209 After five through ten years 11,035,146 11,097,382 After ten years 6,423,442 6,453,826 Total securities HTM $ 36,827,073 $ 37,010,327 The following tables summarize the activity of security sales by intention and year for the three months ended March 31, 2019, and 2018. Securities Available For Sale: March 31, 2019 March 31, 2018 Proceeds of sales $ 0 $ 0 Gross gains $ 0 $ 0 Gross losses 0 0 Net gains (losses) on sales of available for sale securities $ 0 $ 0 Securities Held to Maturity: March 31, 2019 March 31, 2018 Amortized cost of securities sold $ 0 $ 0 Proceeds from sales 0 0 Net gains on sales of held to maturity securities $ 0 $ 0 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: March 31, 2019 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 $ 6,904 $ 975,660 U.S. government agency securities 0 0 466,017 22,346,327 State and municipal securities 0 0 16,313 1,831,683 Residential mortgage-backed securities 0 0 3,586 122,791 Total debt securities available for sale $ 0 $ 0 $ 492,820 $ 25,276,461 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 0 $ 0 $ 26,272 $ 2,515,563 Residential mortgage-backed securities 0 0 883 304,019 Total securities held to maturity $ 0 $ 0 $ 27,155 $ 2,819,582 December 31, 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 $ 27,474 $ 954,570 U.S. government agency securities 33,077 6,073,337 848,080 20,015,052 State and municipal securities 3,209 306,792 43,713 1,813,173 Residential mortgage-backed securities 14,199 3,032,237 2,981 129,410 Total debt securities available for sale $ 50,485 $ 9,412,366 $ 922,248 $ 22,912,205 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 20,209 $ 7,359,536 $ 47,225 $ 2,782,627 Residential mortgage-backed securities 5,671 879,487 1,611 89,464 Total securities held to maturity $ 25,880 $ 8,239,023 $ 48,836 $ 2,872,091 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 March 31, 2019, thirty-four debt securities with unrealized losses have depreciated 1.8% 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, were as follows: March 31, 2019 December 31, 2018 Commercial, financial and agricultural loans $ 88,999,975 23.6% $ 88,403,215 23.5% Real estate: Construction loans 26,092,085 6.9% 24,890,536 6.6% Commercial mortgage loans 121,855,453 32.3% 123,477,369 32.8% Residential loans 103,995,725 27.5% 103,347,898 27.4% Agricultural loans 31,505,959 8.3% 31,561,686 8.4% Consumer & other loans 5,262,568 1.4% 5,086,984 1.3% Loans outstanding 377,711,765 100.0% 376,767,688 100.0% Unearned interest and discount ( 17,390) ( 17,451) Allowance for loan losses ( 3,366,927 ( 3,428,869 Net loans $ 374,327,448 $ 373,321,368 The Corporationās only significant concentration of credit at March 31, 2019, occurred in real estate loans which totaled $283,449,222 compared with $283,277,489 at December 31, 2018. However, this amount was not concentrated in any specific segment within the market or geographic area. At March 31, 2019, the lendable collateral value of the 1 ā 4 family and multifamily mortgage loans that were pledged to FHLB to secure outstanding advances was $66,722,482. FHLB has a blanket lien on the 1 ā 4 family and multifamily portfolios, which totaled $115,773,588. The following table shows maturities as well as interest sensitivity of the commercial, financial, agricultural, and construction loan portfolio at March 31, 2019. Commercial, Financial, Agricultural and Construction Distribution of loans which are due: In one year or less $ 35,327,184 After one year but within five years 54,757,452 After five years 25,007,424 Total $ 115,092,060 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 March 31, 2019. Loans With Predetermined Loans With Rates Floating Rates Total Commercial, financial, agricultural and construction $ 76,439,177 $ 3,325,699 $ 79,764,876 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 $905,068 and $1,204,861 at March 31, 2019, and December 31, 2018, respectively. There were no past due loans over ninety days and still accruing at March 31, 2019, or December 31, 2018. 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 $9,896 for March 31, 2019, and $64,015 for December 31, 2018. 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 March 31, 2019 30-89 Days Past Due 90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 556,388 $ 0 $ 556,388 $ 0 $ 88,443,587 $ 88,999,975 Real estate: Construction loans 536,090 0 536,090 0 25,555,995 26,092,085 Commercial mortgage loans 204,250 0 204,250 839,854 120,811,349 121,855,453 Residential loans 1,638,063 0 1,638,063 65,214 102,292,448 103,995,725 Agricultural loans 193,800 0 193,800 0 31,312,159 31,505,959 Consumer & other loans 31,862 0 31,862 0 5,230,706 5,262,568 Total loans $ 3,160,453 $ 0 $ 3,160,453 $ 905,068 $ 373,646,244 $ 377,711,765 Age Analysis of Past Due Loans As of December 31, 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 $ 247,397 $ 0 $ 247,397 $ 36,157 $ 88,119,661 $ 88,403,215 Real estate: Construction loans 0 0 0 0 24,890,536 24,890,536 Commercial mortgage loans 0 0 0 1,022,550 122,454,819 123,477,369 Residential loans 1,560,913 0 1,560,913 146,154 101,640,831 103,347,898 Agricultural loans 321,319 0 321,319 0 31,240,367 31,561,686 Consumer & other loans 36,654 0 36,654 0 5,050,330 5,086,984 Total loans $ 2,166,283 $ 0 $ 2,166,283 $ 1,204,861 $ 373,396,544 $ 376,767,688 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 March 31, 2019, and December 31, 2018, impaired loans amounted to $4,332,409 and $4,356,381, respectively. A reserve amount of $827,717 and $518,230 was recorded in the allowance for loan losses for these impaired loans as of March 31, 2019, and December 31, 2018, respectively. The following tables present impaired loans, segregated by class of loans as of March 31, 2019, and December 31, 2018: Unpaid Recorded Investment Year-to-date Average Interest Income Received March 31, 2019 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $1,420,052 $ 78,507 $1,254,891 $1,333,398 $ 562,925 $ 461,763 $ 8,225 Real estate: Construction loans 393,898 273,098 0 273,098 0 273,098 5,253 Commercial mortgage loans 1,661,727 346,979 954,250 1,301,229 38,678 1,097,539 9,701 Residential loans 1,432,181 327,454 1,083,815 1,411,269 225,215 1,318,080 28,979 Agricultural loans 0 0 0 0 0 0 0 Consumer & other loans 13,415 0 13,415 13,415 899 13,415 346 Total loans $ 4,921,273 $ 1,026,038 $ 3,306,371 $ 4,332,409 $ 827,717 $ 3,163,895 $ 52,504 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 184,899 $ 87,525 $ 568,816 $ 656,341 $ 276,392 $ 370,038 $ 52,411 Real estate: Construction loans 402,234 281,434 0 281,434 0 281,434 25,364 Commercial mortgage loans 1,787,305 1,277,611 333,892 1,611,503 51,854 1,544,299 45,403 Residential loans 1,801,002 1,027,647 752,443 1,780,090 188,368 1,594,390 127,806 Agricultural loans 12,526 12,526 0 12,526 0 12,526 5,530 Consumer & other loans 0 0 14,487 14,487 1,616 14,487 820 Total loans $ 4,187,966 $ 2,686,743 $ 1,669,638 $ 4,356,381 $ 518,230 $ 3,817,174 $ 257,334 At March 31, 2018, the year-to-date average recorded investment of impaired loans was $3,803,413 and the interest income received during impairment was $59,744. At March 31, 2019, and December 31, 2018, included in impaired loans were $4,275 and $7,458, 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 March 31, 2019, and December 31, 2018, as well as those currently paying under restructured terms and those that have defaulted under restructured terms as of March 31, 2019, and December 31, 2018. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 or more days past due. March 31, 2019 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 4,275 $ 0 1 $ 4,275 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 0 0 0 0 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 0 0 0 0 0 0 Total TDRās $ 4,275 $ 0 1 $ 4,275 0 $ 0 December 31, 2018 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 5,570 $ 0 1 $ 5,570 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 1,888 0 1 1,888 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 0 0 0 0 0 0 Total TDRās $ 7,458 $ 0 2 $ 7,458 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 March 31, 2019, and December 31, 2018. March 31, 2019 December 31, 2018 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 1 4,275 0 0 1 1,888 0 0 Forbearance of interest 0 0 0 0 1 5,570 0 0 Total 1 $ 4,275 0 $ 0 2 $ 7,458 0 $ 0 As of March 31, 2019, and December 31, 2018, the Corporation had a balance of $4,275 and $7,458, respectively, in troubled debt restructurings. The Corporation had no charge-offs on such loans at March 31, 2019, and December 31, 2018. The Corporation had $4,275 in the allowance for loan losses allocated to such troubled debt restructurings at March 31, 2019, and no balance allocated at December 31, 2018. The Corporation had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of March 31, 2019. 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 March 31, 2019, and December 31, 2018: March 31, 2019 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,389,477 $ 0 $ 0 $ 22,656 $ 0 $ 199,257 $ 1,611,390 Grade 2- Above Avg. 0 0 0 0 0 43,134 43,134 Grade 3- Acceptable 23,896,901 2,140,022 28,634,023 26,258,915 17,060,292 1,815,446 99,805,599 Grade 4- Fair 62,003,261 23,429,965 88,485,618 73,773,119 14,445,667 3,184,099 265,321,729 Grade 5a- Watch 758,902 273,098 1,908,525 2,006,308 0 14,950 4,961,783 Grade 5b- OAEM 244,637 0 0 0 0 0 244,637 Grade 6- Substandard 702,441 249,000 2,400,340 712,620 0 4,397 4,068,798 Grade 7- Doubtful 4,356 0 426,947 1,222,107 0 1,285 1,654,695 Total loans $ 88,999,975 $ 26,092,085 $ 121,855,453 $ 103,995,725 $ 31,505,959 $ 5,262,568 $ 377,711,765 December 31, 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 $ 1,237,602 $ 0 $ 0 $ 22,905 $ 0 $ 210,045 $ 1,470,552 Grade 2- Above Avg. 0 0 0 0 0 43,711 43,711 Grade 3- Acceptable 23,821,846 1,860,003 30,398,565 25,839,646 16,863,356 1,151,239 99,934,655 Grade 4- Fair 58,753,931 22,749,099 88,122,957 73,114,310 14,698,330 3,657,108 261,095,735 Grade 5a- Watch 473,616 0 2,411,710 722,441 0 6,206 3,613,973 Grade 5b- OAEM 3,079,098 0 446,841 1,299,587 0 2,168 4,827,694 Grade 6- Substandard 787,309 281,434 2,097,296 2,349,009 0 16,507 5,531,555 Grade 7- Doubtful 249,813 0 0 0 0 0 249,813 Total loans $88,403,215 $24,890,536 $123,477,369 $103,347,898 $31,561,686 $5,086,984 $376,767,688 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-month period ended March 31, 2019. 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 0.19% for the three months ended March 31, 2019, compared with 0.13% at December 31, 2018. Three months ended March 31, 2019 March 31, 2019 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, 2018 $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Charge-offs 0 0 184,696 0 0 0 184,696 Recoveries 2,696 0 3,368 0 0 782 6,846 Net charge-offs (2,696) 0 181,328 0 0 (782) 177,850 Provisions charged to operations 98,375 0 48,695 0 (31,998) 836 115,908 Balance at end of period, March 31, 2019 $ 503,322 $ 1,043,027 $ 1,077,669 $ 458,871 $ 76,880 $ 207,158 $ 3,366,927 Ending balance - Individually evaluated for impairment $ 562,925 $ 0 $ 38,678 $ 225,215 $ 0 $ 899 $ 827,717 Collectively evaluated for impairment (59,603) 1,043,027 1,038,991 233,656 76,880 206,259 2,539,210 Balance at end of period $ 503,322 $ 1,043,027 $ 1,077,669 $ 458,871 $ 76,880 $ 207,158 $ 3,366,927 Loans : Ending balance - Individually evaluated for impairment $ 1,333,398 $ 273,098 $ 1,301,229 $ 1,411,269 $ 0 $ 13,415 $ 4,332,409 Collectively evaluated for impairment 87,666,577 25,818,987 120,554,224 102,584,456 31,505,959 5,249,153 373,379,356 Balance at end of period $ 88,999,975 $ 26,092,085 $ 121,855,453 $ 103,995,725 $ 31,505,959 $ 5,262,568 $ 377,711,765 At March 31, 2019, of the $4,381,133 loans that were individually evaluated for impairment, only $4,332,409 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, 2018. December 31, 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 548,460 783 43,349 6,909 0 6,844 606,345 Recoveries 12,025 0 590 0 147,252 2,215 162,082 Net charge-offs 536,435 783 42,759 6,909 (147,252) 4,629 444,263 Provisions charged to operations 614,426 727 196,466 49,306 (49,934) 18,509 829,500 Balance at end of period, December 31, 2018 $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Ending balance - Individually evaluated for impairment $ 276,392 $ 0 $ 51,854 $ 188,368 $ 0 $ 1,616 $ 518,230 Collectively evaluated for impairment 125,859 1,043,027 1,158,448 270,503 108,878 203,924 2,910,639 Balance at end of period $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Loans : Ending balance - Individually evaluated for impairment $ 656,341 $ 281,434 $ 1,611,503 $ 1,929,214 $ 12,526 $ 14,487 $ 4,505,505 Collectively evaluated for impairment 87,746,874 24,609,102 121,865,866 101,418,684 31,549,160 5,072,497 372,262,183 Balance at end of period $ 88,403,215 $ 24,890,536 $ 123,477,369 $ 103,347,898 $ 31,561,686 $ 5,086,984 $ 376,767,688 At December 31, 2018, of the $4,505,505 loans that were individually evaluated for impairment, only $4,356,381 were deemed impaired. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 2nd Avenue SW in Moultrie, and lending services are offered in Valdosta at 3520 North Valdosta Road. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains independent appraisals for significant properties. A substantial portion of the 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. |
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 no uninsured deposits at March 31, 2019. |
Investment Securities | Investment Securities Investment 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 are classified as available for sale and recorded at fair value with unrealized gains and losses (net of tax effect) 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 the lower of cost or market value based on the current appraisal of $211,500. On November 30, 2018, the Corporation sold this property and recorded a loss in the amount of $96,750. |
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. 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 March 31, 2019. Foreclosed assets totaled $127,605 at March 31, 2019 and December 31, 2018. |
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. All intangibles were fully amortized as of March 31, 2019. |
Credit Related Financial Instruments | Credit Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Retirement Plans | Retirement Plans The Corporation and its direct and indirect subsidiaries have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts not exceeding the regulatory requirements. |
Bank Owned Life Insurance | Bank Owned Life Insurance The 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 March 31, 2019, and December 31, 2018, the policies had a value of $6,812,589 and $6,779,242, respectively, and were 15.1% and 15.5%, 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, 2016 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 $75,750 and $50,901 for the three month periods ended March 31, 2019 and 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 December 31, 2018, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since December 31, 2018, that management believes has changed the Bankās status as āwell-capitalized.ā The capital ratios of the Corporation and Bank are presented in Note 15 of the Corporationās Notes to Consolidated Financial Statements. |
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. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 118. The amendments in this update were effective upon issuance. The adoption of ASU 2018-05 had no material impact on the Corporationās consolidated financial statements. 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. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 117. The amendments in this update were effective upon issuance. The adoption of ASU 2018-04 had no material impact on the Corporationās consolidated financial statements. In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10). This Update clarifies certain aspects of the guidance issued in ASU 2016-01 including (i) an entity measuring an equity security using the measurement alternative may make an irrevocable election to change its measurement approach to a fair value method under Topic 820 for that security and any identical or similar investments of the same issuer, (ii) fair value adjustments under the measurement alternative should be as of the date the observable transaction for a similar security occurred, (iii) requiring the remeasurement of the entire value of forward contracts and purchased options when observable transactions occur on the underlying equity securities, (iv) financial liabilities for which the fair value option is elected should follow the guidance in paragraph 825-10-45-5, (v) changes in the fair value of financial liabilities for which the fair value option is elected relating to the instrument-specific credit risk should first be measured in the currency of denomination and then both components of the change in fair value should be remeasured into the reporting entity's functional currency using end-of-period spot rates, and (vi) the prospective transition approach should only be applied for instances in which the measurement alternative is applied. The guidance was effective for interim periods beginning after June 15, 2018 and may be early adopted provided ASU 2016-01 was adopted. The Company adopted the amendments in this ASU effective January 1, 2018. The adoption of ASU 2018-03 had no material impact on the Corporationās consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement ā Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 provides guidance on accounting for the effects of the Tax Cuts and Jobs Act, which was enacted in December, 2017. The guidance allows reclassification of the tax effects that were stranded in accumulated other comprehensive income as a result of the tax rate change from accumulated other comprehensive income to retained earnings. This guidance is effective for fiscal years beginning after December 15, 2018. The adoption of ASU 2018-02 had no material impact on the Corporationās consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, āStock Compensation, Scope of Modification Accounting.ā This ASU clarifies when changes to the terms of conditions of a share-based payment award must be accounted for as modifications. Companies will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The new guidance should reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications, as the guidance will allow companies to make certain non-substantive changes to awards without accounting for them as modifications. It does not change the accounting for modifications. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017; early adoption is permitted. The adoption of ASU 2017-09 had no material impact on the Corporationās consolidated financial statements. 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. This ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonable estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative effect adjustment to retained earnings on the date of adoption. The adoption of ASU 2017-08 had no material impact on the Corporationās consolidated financial statements. 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. The updated accounting guidance requires changes to the presentation of the components of net periodic benefit cost on the income statement by requiring service cost to be presented with other employee compensation costs and other components of net periodic pension cost to be presented outside of any subtotal of operating income. This ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2017-07 had no material impact on the Corporationās consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), which provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption will be permitted and should apply it to transactions that have not been reported in financial statements that have been issued or made available for issuance. The adoption of ASU 2017-01 had no material impact on the Corporationās consolidated financial statements. 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. The amendments in this ASU (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018. The adoption of 2016-01 had no material impact on the Corporationās consolidated financial statements. 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 (Topic 606), ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, and ASU 2017-05 Other Income - Gains and losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This new guidance, which does not apply to financial instruments, provides that revenue should be recognized for the transfer of goods and services to customers in an amount equal to the consideration it receives or expects to receive. The guidance also includes expanded disclosure requirements that provide comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018, using the modified retrospective method. Since there was no change to net income upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not necessary. See below for additional information related to revenue generated from contracts with customers. In 2016, the FASB issued ASU 2016-02 ā Leases (Topic 842). ASU 2016-02 amends the existing standards for lease accounting effectively requiring most leases be carried on the balance sheets of the related lessees by requiring them to recognize a right-of-use asset and a corresponding lease liability. ASU 2016-02 includes qualitative and quantitative disclosure requirements intended to provide greater insight into the nature of an entityās leasing activities. The standard must be adopted using a modified retrospective transition with a cumulative-effect adjustment to equity as of the beginning of the period in which it is adopted. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods with early adoption permitted. The adoption of ASU No. 2016-02 had no material impact on the Corporationās consolidated financial statements. |
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 November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments ā Credit Losses. On June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. The amendments in ASU No. 2018-19 align the implementation date for nonpublic entitiesā annual financial statements with the implementation date for their interim financial statements and clarify the scope of the guidance in the amendments in Update 2016-13. The amendments also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The adoption of ASU 2018-19 is not expected to have a material impact on the Corporationās consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework ā Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 removes the requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of plan assets expected to be returned to the employer, related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. The ASU adds requirements to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and the reasons for significant gains and losses related to changes in the benefit obligation for the period. The update also clarifies the requirements to disclose the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets, and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. This update is effective for fiscal years beginning after December 15, 2020. The adoption of ASU 2018-14 is not expected to have a material impact on the Corporationās consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework ā Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes the requirements for public entities to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirement for investments in certain entities that calculate net asset value, and clarifies that the measurement uncertainty disclosure is to communicate measurement uncertainties as of the reporting date. The ASU also requires public entities to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This update is effective for fiscal years beginning after December 15, 2019. The adoption of ASU 2018-13 is not expected to have a material impact on the Corporationās consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350), which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Rather, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on the Corporationās consolidated financial statements. 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), which incorporates into the FASB ASC recent SEC guidance about disclosing, under SEC Staff Accounting Bulletin, Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The effective date varies as each topic addressed in this ASU has its own effective date. The adoption of ASU 2017-03 is not expected to have a material impact on the Corporationās consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is essentially the final rule on use of the so-called CECL model, or current expected credit losses. Among other things, the amendments in this ASU require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For SEC filers, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with later effective dates for non-SEC registrant public companies and other organizations. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2016-13 is being reviewed for any material impact on the Corporationās consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, and December 31, 2018. March 31, 2019 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $3,965,670 $ 0 $ 0 $ 3,965,670 U.S. government agency securities 0 46,884,851 0 46,884,851 State and municipal securities 0 7,478,656 0 7,478,656 Residential mortgage-backed securities 0 4,632,902 0 4,632,902 Total $ 3,965,670 $ 58,996,409 $ 0 $ 62,962,079 December 31, 2018 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 954,570 $ 0 $ 0 $ 954,570 U.S. government agency securities 0 45,207,005 0 45,207,005 State and municipal securities 0 7,377,935 0 7,377,935 Residential mortgage-backed securities 0 4,774,067 0 4,774,067 Total $ 954,570 $ 57,359,007 $ 0 $ 58,313,577 |
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 March 31, 2019, and December 31, 2018. March 31, 2019 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 3,504,692 3,504,692 Total assets at fair value $ 0 $ 0 $ 3,632,297 $ 3,632,297 December 31, 2018 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 3,838,151 3,838,151 Total assets at fair value $ 0 $ 0 $ 3,965,756 $ 3,965,756 |
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 March 31, 2019, and December 31, 2018: Estimated Fair Value March 31, 2019 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 49,015 $ 49,015 $ 0 $ 0 $ 49,015 Certificates of deposit in other banks 2,732 2,732 0 0 2,732 Investment securities available for sale 62,962 3,966 58,996 0 62,962 Investment securities held to maturity 35,185 0 35,674 0 35,674 Federal Home Loan Bank stock 1,020 0 1,020 0 1,020 Loans, net 374,327 0 360,840 3,505 364,345 Bank owned life insurance 6,813 0 6,813 0 6,813 Liabilities: Deposits 488,619 0 457,973 0 457,973 Federal Home Loan Bank advances 13,700 0 13,747 0 13,747 Estimated Fair Value December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 35,499 $ 35,499 $ 0 $ 0 $ 35,499 Certificates of deposit in other banks 2,732 2,732 0 0 2,732 Investment securities available for sale 58,314 955 57,359 0 58,314 Investment securities held to maturity 36,827 0 37,010 0 37,010 Federal Home Loan Bank stock 1,820 0 1,820 0 1,820 Loans, net 373,321 0 362,373 3,838 366,211 Bank owned life insurance 6,779 0 6,779 0 6,779 Liabilities: Deposits 455,640 0 456,245 0 456,245 Federal Home Loan Bank advances 31,629 0 31,591 0 31,591 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019, and December 31, 2018, were as follows: Securities Available For Sale: March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 3,963,014 $ 9,560 $ 6,904 $ 3,965,670 U.S. government agency securities 46,786,921 563,946 466,017 46,884,850 State and municipal securities 7,371,821 123,149 16,313 7,478,657 Residential mortgage-backed securities 4,587,762 48,726 3,586 4,632,902 Total debt securities AFS $ 62,709,518 $ 745,381 $ 492,820 $ 62,962,079 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 982,044 $ 0 $ 27,474 $ 954,570 U.S. government agency securities 45,823,595 264,567 881,157 45,207,005 State and municipal securities 7,394,278 30,579 46,922 7,377,935 Residential mortgage-backed securities 4,769,668 21,579 17,180 4,774,067 Total debt securities AFS $ 58,969,585 $ 316,725 $ 972,733 $ 58,313,577 |
Schedule of Securities Held to Maturity | Securities Held to Maturity March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $29,216,837 $ 391,743 $ 26,272 $29,582,308 Residential mortgage-backed securities 5,968,046 124,896 883 6,092,059 Total securities HTM $ 35,184,883 $ 516,639 $ 27,155 $ 35,674,367 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 30,582,785 $ 208,480 $ 67,434 $ 30,723,831 Residential mortgage-backed securities 6,244,288 49,490 7,282 6,286,496 Total securities HTM $ 36,827,073 $ 257,970 $ 74,716 $ 37,010,327 |
Summary of Amortized Cost and Estimated Fair Value of Debt Securities | The amortized cost and estimated fair value of securities at March 31, 2019, and December 31, 2018, 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. March 31, 2019 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 3,140,872 $ 3,125,810 After one through five years 34,952,755 35,257,684 After five through ten years 19,183,448 19,097,610 After ten years 5,432,443 5,480,975 Total debt securities AFS $ 62,709,518 $ 62,962,079 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 6,480,829 $ 6,489,447 After one through five years 11,885,478 12,001,454 After five through ten years 11,125,453 11,354,541 After ten years 5,693,123 5,828,925 Total securities HTM $ 35,184,883 $ 35,674,367 December 31, 2018 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 2,147,059 $ 2,124,645 After one through five years 29,691,474 29,674,236 After five through ten years 21,585,776 20,968,318 After ten years 5,545,276 5,546,378 5 Total debt securities AFS $ 58,969,585 $ 58,313,577 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 6,483,464 $ 6,497,910 After one through five years 12,885,021 12,961,209 After five through ten years 11,035,146 11,097,382 After ten years 6,423,442 6,453,826 Total securities HTM $ 36,827,073 $ 37,010,327 |
Schedule of Activity of Security Sales by Intention | The following tables summarize the activity of security sales by intention and year for the three months ended March 31, 2019, and 2018. Securities Available For Sale: March 31, 2019 March 31, 2018 Proceeds of sales $ 0 $ 0 Gross gains $ 0 $ 0 Gross losses 0 0 Net gains (losses) on sales of available for sale securities $ 0 $ 0 Securities Held to Maturity: March 31, 2019 March 31, 2018 Amortized cost of securities sold $ 0 $ 0 Proceeds from sales 0 0 Net gains on sales of held to maturity securities $ 0 $ 0 |
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: March 31, 2019 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 $ 6,904 $ 975,660 U.S. government agency securities 0 0 466,017 22,346,327 State and municipal securities 0 0 16,313 1,831,683 Residential mortgage-backed securities 0 0 3,586 122,791 Total debt securities available for sale $ 0 $ 0 $ 492,820 $ 25,276,461 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 0 $ 0 $ 26,272 $ 2,515,563 Residential mortgage-backed securities 0 0 883 304,019 Total securities held to maturity $ 0 $ 0 $ 27,155 $ 2,819,582 December 31, 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 $ 27,474 $ 954,570 U.S. government agency securities 33,077 6,073,337 848,080 20,015,052 State and municipal securities 3,209 306,792 43,713 1,813,173 Residential mortgage-backed securities 14,199 3,032,237 2,981 129,410 Total debt securities available for sale $ 50,485 $ 9,412,366 $ 922,248 $ 22,912,205 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 20,209 $ 7,359,536 $ 47,225 $ 2,782,627 Residential mortgage-backed securities 5,671 879,487 1,611 89,464 Total securities held to maturity $ 25,880 $ 8,239,023 $ 48,836 $ 2,872,091 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, were as follows: March 31, 2019 December 31, 2018 Commercial, financial and agricultural loans $ 88,999,975 23.6% $ 88,403,215 23.5% Real estate: Construction loans 26,092,085 6.9% 24,890,536 6.6% Commercial mortgage loans 121,855,453 32.3% 123,477,369 32.8% Residential loans 103,995,725 27.5% 103,347,898 27.4% Agricultural loans 31,505,959 8.3% 31,561,686 8.4% Consumer & other loans 5,262,568 1.4% 5,086,984 1.3% Loans outstanding 377,711,765 100.0% 376,767,688 100.0% Unearned interest and discount ( 17,390) ( 17,451) Allowance for loan losses ( 3,366,927 ( 3,428,869 Net loans $ 374,327,448 $ 373,321,368 |
Summary of Maturities of Loan Portfolio | The following table shows maturities as well as interest sensitivity of the commercial, financial, agricultural, and construction loan portfolio at March 31, 2019. Commercial, Financial, Agricultural and Construction Distribution of loans which are due: In one year or less $ 35,327,184 After one year but within five years 54,757,452 After five years 25,007,424 Total $ 115,092,060 |
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 March 31, 2019. Loans With Predetermined Loans With Rates Floating Rates Total Commercial, financial, agricultural and construction $ 76,439,177 $ 3,325,699 $ 79,764,876 |
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 March 31, 2019 30-89 Days Past Due 90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 556,388 $ 0 $ 556,388 $ 0 $ 88,443,587 $ 88,999,975 Real estate: Construction loans 536,090 0 536,090 0 25,555,995 26,092,085 Commercial mortgage loans 204,250 0 204,250 839,854 120,811,349 121,855,453 Residential loans 1,638,063 0 1,638,063 65,214 102,292,448 103,995,725 Agricultural loans 193,800 0 193,800 0 31,312,159 31,505,959 Consumer & other loans 31,862 0 31,862 0 5,230,706 5,262,568 Total loans $ 3,160,453 $ 0 $ 3,160,453 $ 905,068 $ 373,646,244 $ 377,711,765 Age Analysis of Past Due Loans As of December 31, 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 $ 247,397 $ 0 $ 247,397 $ 36,157 $ 88,119,661 $ 88,403,215 Real estate: Construction loans 0 0 0 0 24,890,536 24,890,536 Commercial mortgage loans 0 0 0 1,022,550 122,454,819 123,477,369 Residential loans 1,560,913 0 1,560,913 146,154 101,640,831 103,347,898 Agricultural loans 321,319 0 321,319 0 31,240,367 31,561,686 Consumer & other loans 36,654 0 36,654 0 5,050,330 5,086,984 Total loans $ 2,166,283 $ 0 $ 2,166,283 $ 1,204,861 $ 373,396,544 $ 376,767,688 |
Schedule of Impaired Loans Segregated by Class of Loans | The following tables present impaired loans, segregated by class of loans as of March 31, 2019, and December 31, 2018: Unpaid Recorded Investment Year-to-date Average Interest Income Received March 31, 2019 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $1,420,052 $ 78,507 $1,254,891 $1,333,398 $ 562,925 $ 461,763 $ 8,225 Real estate: Construction loans 393,898 273,098 0 273,098 0 273,098 5,253 Commercial mortgage loans 1,661,727 346,979 954,250 1,301,229 38,678 1,097,539 9,701 Residential loans 1,432,181 327,454 1,083,815 1,411,269 225,215 1,318,080 28,979 Agricultural loans 0 0 0 0 0 0 0 Consumer & other loans 13,415 0 13,415 13,415 899 13,415 346 Total loans $ 4,921,273 $ 1,026,038 $ 3,306,371 $ 4,332,409 $ 827,717 $ 3,163,895 $ 52,504 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 184,899 $ 87,525 $ 568,816 $ 656,341 $ 276,392 $ 370,038 $ 52,411 Real estate: Construction loans 402,234 281,434 0 281,434 0 281,434 25,364 Commercial mortgage loans 1,787,305 1,277,611 333,892 1,611,503 51,854 1,544,299 45,403 Residential loans 1,801,002 1,027,647 752,443 1,780,090 188,368 1,594,390 127,806 Agricultural loans 12,526 12,526 0 12,526 0 12,526 5,530 Consumer & other loans 0 0 14,487 14,487 1,616 14,487 820 Total loans $ 4,187,966 $ 2,686,743 $ 1,669,638 $ 4,356,381 $ 518,230 $ 3,817,174 $ 257,334 |
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. March 31, 2019 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 4,275 $ 0 1 $ 4,275 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 0 0 0 0 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 0 0 0 0 0 0 Total TDRās $ 4,275 $ 0 1 $ 4,275 0 $ 0 December 31, 2018 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 5,570 $ 0 1 $ 5,570 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 1,888 0 1 1,888 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 0 0 0 0 0 0 Total TDRās $ 7,458 $ 0 2 $ 7,458 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 March 31, 2019, and December 31, 2018. March 31, 2019 December 31, 2018 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 1 4,275 0 0 1 1,888 0 0 Forbearance of interest 0 0 0 0 1 5,570 0 0 Total 1 $ 4,275 0 $ 0 2 $ 7,458 0 $ 0 |
Schedule of Internal Loan Grading by Class of Loans | The following tables present internal loan grading by class of loans as of March 31, 2019, and December 31, 2018: March 31, 2019 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,389,477 $ 0 $ 0 $ 22,656 $ 0 $ 199,257 $ 1,611,390 Grade 2- Above Avg. 0 0 0 0 0 43,134 43,134 Grade 3- Acceptable 23,896,901 2,140,022 28,634,023 26,258,915 17,060,292 1,815,446 99,805,599 Grade 4- Fair 62,003,261 23,429,965 88,485,618 73,773,119 14,445,667 3,184,099 265,321,729 Grade 5a- Watch 758,902 273,098 1,908,525 2,006,308 0 14,950 4,961,783 Grade 5b- OAEM 244,637 0 0 0 0 0 244,637 Grade 6- Substandard 702,441 249,000 2,400,340 712,620 0 4,397 4,068,798 Grade 7- Doubtful 4,356 0 426,947 1,222,107 0 1,285 1,654,695 Total loans $ 88,999,975 $ 26,092,085 $ 121,855,453 $ 103,995,725 $ 31,505,959 $ 5,262,568 $ 377,711,765 December 31, 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 $ 1,237,602 $ 0 $ 0 $ 22,905 $ 0 $ 210,045 $ 1,470,552 Grade 2- Above Avg. 0 0 0 0 0 43,711 43,711 Grade 3- Acceptable 23,821,846 1,860,003 30,398,565 25,839,646 16,863,356 1,151,239 99,934,655 Grade 4- Fair 58,753,931 22,749,099 88,122,957 73,114,310 14,698,330 3,657,108 261,095,735 Grade 5a- Watch 473,616 0 2,411,710 722,441 0 6,206 3,613,973 Grade 5b- OAEM 3,079,098 0 446,841 1,299,587 0 2,168 4,827,694 Grade 6- Substandard 787,309 281,434 2,097,296 2,349,009 0 16,507 5,531,555 Grade 7- Doubtful 249,813 0 0 0 0 0 249,813 Total loans $88,403,215 $24,890,536 $123,477,369 $103,347,898 $31,561,686 $5,086,984 $376,767,688 |
Schedule of Allowance for Loan Losses Methodology | The annualized net charge-offs to average loans outstanding ratio was 0.19% for the three months ended March 31, 2019, compared with 0.13% at December 31, 2018. Three months ended March 31, 2019 March 31, 2019 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, 2018 $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Charge-offs 0 0 184,696 0 0 0 184,696 Recoveries 2,696 0 3,368 0 0 782 6,846 Net charge-offs (2,696) 0 181,328 0 0 (782) 177,850 Provisions charged to operations 98,375 0 48,695 0 (31,998) 836 115,908 Balance at end of period, March 31, 2019 $ 503,322 $ 1,043,027 $ 1,077,669 $ 458,871 $ 76,880 $ 207,158 $ 3,366,927 Ending balance - Individually evaluated for impairment $ 562,925 $ 0 $ 38,678 $ 225,215 $ 0 $ 899 $ 827,717 Collectively evaluated for impairment (59,603) 1,043,027 1,038,991 233,656 76,880 206,259 2,539,210 Balance at end of period $ 503,322 $ 1,043,027 $ 1,077,669 $ 458,871 $ 76,880 $ 207,158 $ 3,366,927 Loans : Ending balance - Individually evaluated for impairment $ 1,333,398 $ 273,098 $ 1,301,229 $ 1,411,269 $ 0 $ 13,415 $ 4,332,409 Collectively evaluated for impairment 87,666,577 25,818,987 120,554,224 102,584,456 31,505,959 5,249,153 373,379,356 Balance at end of period $ 88,999,975 $ 26,092,085 $ 121,855,453 $ 103,995,725 $ 31,505,959 $ 5,262,568 $ 377,711,765 The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 2018. December 31, 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 548,460 783 43,349 6,909 0 6,844 606,345 Recoveries 12,025 0 590 0 147,252 2,215 162,082 Net charge-offs 536,435 783 42,759 6,909 (147,252) 4,629 444,263 Provisions charged to operations 614,426 727 196,466 49,306 (49,934) 18,509 829,500 Balance at end of period, December 31, 2018 $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Ending balance - Individually evaluated for impairment $ 276,392 $ 0 $ 51,854 $ 188,368 $ 0 $ 1,616 $ 518,230 Collectively evaluated for impairment 125,859 1,043,027 1,158,448 270,503 108,878 203,924 2,910,639 Balance at end of period $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Loans : Ending balance - Individually evaluated for impairment $ 656,341 $ 281,434 $ 1,611,503 $ 1,929,214 $ 12,526 $ 14,487 $ 4,505,505 Collectively evaluated for impairment 87,746,874 24,609,102 121,865,866 101,418,684 31,549,160 5,072,497 372,262,183 Balance at end of period $ 88,403,215 $ 24,890,536 $ 123,477,369 $ 103,347,898 $ 31,561,686 $ 5,086,984 $ 376,767,688 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Nov. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2016 |
Maximum FDIC insured amount | $ 250,000 | ||||
Uninsured deposits | 0 | ||||
Bank property held for sale | $ 211,500 | ||||
Net loss on disposal of bank property held for sale | $ 96,750 | ||||
Allowance for foreclosed asset losses | 0 | ||||
Foreclosed assets | 127,605 | $ 127,605 | |||
Bank owned life insurance policies | $ 6,812,589 | $ 6,779,242 | |||
Bank owned life insurance policies, stockholders equity, percentage | 15.10% | 15.50% | |||
Advertising expense | $ 75,750 | $ 50,901 | |||
Minimum requirement of common equity Tier 1 risk-based capital ratio | 4.50% | ||||
Tier 1 risk-based capital ratio | 6.00% | ||||
Previous minimum requirement of Tier 1 risk-based capital ratio | 4.00% | ||||
Risk-based capital ratio | 8.00% | ||||
Tier 1 leverage ratio | 4.00% | ||||
Maximum [Member] | |||||
Total consolidated assets | $ 1,000,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Premises and Equipment (Details) | 3 Months Ended |
Mar. 31, 2019 | |
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) | Mar. 31, 2019 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
U.S. government treasury securities | $ 3,965,670 | $ 954,570 |
U.S. government agency securities | 46,884,851 | 45,207,005 |
State and municipal securities | 7,478,656 | 7,377,935 |
Residential mortgage-backed securities | 4,632,902 | 4,774,067 |
Total | 62,962,079 | 58,313,577 |
Level 1 [Member] | ||
U.S. government treasury securities | 3,965,670 | 954,570 |
U.S. government agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Total | 3,965,670 | 954,570 |
Level 2 [Member] | ||
U.S. government treasury securities | 0 | 0 |
U.S. government agency securities | 46,884,851 | 45,207,005 |
State and municipal securities | 7,478,656 | 7,377,935 |
Residential mortgage-backed securities | 4,632,902 | 4,774,067 |
Total | 58,996,409 | 57,359,007 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Foreclosed assets | $ 127,605 | $ 127,605 |
Impaired loans | 3,504,692 | 3,838,151 |
Total assets at fair value | 3,632,297 | 3,965,756 |
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 | 127,605 |
Impaired loans | 3,504,692 | 3,838,151 |
Total assets at fair value | $ 3,632,297 | $ 3,965,756 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 49,015,175 | $ 35,498,792 | $ 48,987,447 | $ 34,138,421 |
Certificates of deposit in other banks | 2,732,000 | 2,732,000 | ||
Investment securities available for sale | 62,962,079 | 58,313,577 | ||
Investment securities held to maturity | 35,674,367 | 37,010,327 | ||
Federal Home Loan Bank stock | 1,019,900 | 1,820,300 | ||
Loans, net | 364,345,000 | 366,211,000 | ||
Bank owned life insurance | 6,812,589 | 6,779,242 | ||
Deposits | 457,973,000 | 456,245,000 | ||
Federal Home Loan Bank advances | 13,747,000 | 31,591,000 | ||
Level 1 [Member] | ||||
Cash and cash equivalents | 49,015,000 | 35,499,000 | ||
Certificates of deposit in other banks | 2,732,000 | 2,732,000 | ||
Investment securities available for sale | 3,966,000 | 955,000 | ||
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 | 58,996,000 | 57,359,000 | ||
Investment securities held to maturity | 35,674,000 | 37,010,000 | ||
Federal Home Loan Bank stock | 1,020,000 | 1,820,000 | ||
Loans, net | 360,840,000 | 362,373,000 | ||
Bank owned life insurance | 6,813,000 | 6,779,000 | ||
Deposits | 457,973,000 | 456,245,000 | ||
Federal Home Loan Bank advances | 13,747,000 | 31,591,000 | ||
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 | 3,505,000 | 3,838,000 | ||
Bank owned life insurance | 0 | 0 | ||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Carrying Amount [Member] | ||||
Cash and cash equivalents | 49,015,000 | 35,499,000 | ||
Certificates of deposit in other banks | 2,732,000 | 2,732,000 | ||
Investment securities available for sale | 62,962,000 | 58,314,000 | ||
Investment securities held to maturity | 35,185,000 | 36,827,000 | ||
Federal Home Loan Bank stock | 1,020,000 | 1,820,000 | ||
Loans, net | 374,327,000 | 373,321,000 | ||
Bank owned life insurance | 6,813,000 | 6,779,000 | ||
Deposits | 488,619,000 | 455,640,000 | ||
Federal Home Loan Bank advances | $ 13,700,000 | $ 31,629,000 |
Investment Securities (Details
Investment Securities (Details Narrative) | Mar. 31, 2019Integer |
Schedule of Investments [Abstract] | |
Available-for-sale securities, number of debt securities | 34 |
Percentage of debt securities unrealized losses depreciated on amortized cost basis | 1.80% |
Investment Securities - Schedul
Investment Securities - Schedule of Securities Available for Sale (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Amortized Cost | $ 62,709,518 | $ 58,969,585 |
Unrealized Gains | 745,381 | 316,725 |
Unrealized Losses | 492,820 | 972,733 |
Total Estimated Fair Value | 62,962,079 | 58,313,577 |
U.S. Government Treasury Securities [Member] | ||
Amortized Cost | 3,963,014 | 982,044 |
Unrealized Gains | 9,560 | 0 |
Unrealized Losses | 6,904 | 27,474 |
Total Estimated Fair Value | 3,965,670 | 954,570 |
U.S. Government Agency Securities [Member] | ||
Amortized Cost | 46,786,921 | 45,823,595 |
Unrealized Gains | 563,946 | 264,567 |
Unrealized Losses | 466,017 | 881,157 |
Total Estimated Fair Value | 46,884,850 | 45,207,005 |
State and Municipal Securities [Member] | ||
Amortized Cost | 7,371,821 | 7,394,278 |
Unrealized Gains | 123,149 | 30,579 |
Unrealized Losses | 16,313 | 46,922 |
Total Estimated Fair Value | 7,478,657 | 7,377,935 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 4,587,762 | 4,769,668 |
Unrealized Gains | 48,726 | 21,579 |
Unrealized Losses | 3,586 | 17,180 |
Total Estimated Fair Value | $ 4,632,902 | $ 4,774,067 |
Investment Securities - Sched_2
Investment Securities - Schedule of Securities Held to Maturity (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | $ 35,184,883 | $ 36,827,073 |
Unrealized Gains | 516,639 | 257,970 |
Unrealized Losses | 27,155 | 74,716 |
Estimated Fair Value | 35,674,367 | 37,010,327 |
State and Municipal Securities [Member] | ||
Amortized Cost | 29,216,837 | 30,582,785 |
Unrealized Gains | 391,743 | 208,480 |
Unrealized Losses | 26,272 | 67,434 |
Estimated Fair Value | 29,582,308 | 30,723,831 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 5,968,046 | 6,244,288 |
Unrealized Gains | 124,896 | 49,490 |
Unrealized Losses | 883 | 7,282 |
Estimated Fair Value | $ 6,092,059 | $ 6,286,496 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Debt Securities (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Abstract] | ||
Available for Sale Amounts maturing in One year or less, Amortized Cost | $ 3,140,872 | $ 2,147,059 |
Available for Sale Amounts maturing in After one through five years, Amortized Cost | 34,952,755 | 29,691,474 |
Available for Sale Amounts maturing in After five through ten years, Amortized Cost | 19,183,448 | 21,585,776 |
Available for Sale Amounts maturing in After ten years, Amortized Cost | 5,432,443 | 5,545,276 |
Total debt securities AFS, Amortized Cost | 62,709,518 | 58,969,585 |
Available for Sale Amounts maturing in One year or less, Estimated Fair Value | 3,125,810 | 2,124,645 |
Available for Sale Amounts maturing in After one through five years, Estimated Fair Value | 35,257,684 | 29,674,236 |
Available for Sale Amounts maturing in After five through ten years, Estimated Fair Value | 19,097,610 | 20,968,318 |
Available for Sale Amounts maturing in After ten years, Estimated Fair Value | 5,480,975 | 5,546,378 |
Total debt securities AFS, Estimated Fair Value | 62,962,079 | 58,313,577 |
Held to Maturity Amounts maturing in One year or less, Amortized Cost | 6,480,829 | 6,483,464 |
Held to Maturity Amounts maturing in After one through five years, Amortized Cost | 11,885,478 | 12,885,021 |
Held to Maturity Amounts maturing in After five through ten years, Amortized Cost | 11,125,453 | 11,035,146 |
Held to Maturity Amounts maturing in After ten years, Amortized Cost | 5,693,123 | 6,423,442 |
Total securities HTM, Amortized Cost | 35,184,883 | 36,827,073 |
Held to Maturity Amounts maturing in One year or less, Estimated Fair Value | 6,489,447 | 6,497,910 |
Held to Maturity Amounts maturing in After one through five years, Estimated Fair Value | 12,001,454 | 12,961,209 |
Held to Maturity Amounts maturing in After five through ten years, Estimated Fair Value | 11,354,541 | 11,097,382 |
Held to Maturity Amounts maturing in After ten years, Estimated Fair Value | 5,828,925 | 6,453,826 |
Total securities HTM, Estimated Fair Value | $ 35,674,367 | $ 37,010,327 |
Investment Securities - Sched_3
Investment Securities - Schedule of Activity of Security Sales by Intention (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Investments [Abstract] | ||
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 |
Gross gains on sale of available-for-sale securities | 0 | 0 |
Gross losses on sale of available-for-sale securities | 0 | 0 |
Net gains (losses) on sales of available for sale securities | 0 | 0 |
Amortized cost of securities sold securities held to maturity | 0 | 0 |
Proceeds from sale of securities held to maturity | 0 | 0 |
Net gains on sales of held to maturity securities | $ 0 | $ 0 |
Investment Securities - Sched_4
Investment Securities - Schedule of Information Pertaining to Securities Gross Unrealized Losses by Investments (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Less Than Twelve Months, Gross Unrealized Losses | $ 0 | $ 50,485 |
Less Than Twelve Months, Fair Value | 0 | 9,412,366 |
Twelve Months or More, Gross Unrealized Losses | 492,820 | 922,248 |
Twelve Months or More, Fair Value | 25,276,461 | 22,912,205 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 25,880 |
Less Than Twelve Months, Fair Value | 0 | 8,239,023 |
Twelve Months or More, Gross Unrealized Losses | 27,155 | 48,836 |
Twelve Months or More, Fair Value | 2,819,582 | 2,872,091 |
U.S. Government Treasury Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 6,904 | 27,474 |
Twelve Months or More, Fair Value | 975,660 | 954,570 |
U.S. Government Agency Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 33,077 |
Less Than Twelve Months, Fair Value | 0 | 6,073,337 |
Twelve Months or More, Gross Unrealized Losses | 466,017 | 848,080 |
Twelve Months or More, Fair Value | 22,346,327 | 20,015,052 |
State and Municipal Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 3,209 |
Less Than Twelve Months, Fair Value | 0 | 306,792 |
Twelve Months or More, Gross Unrealized Losses | 16,313 | 43,713 |
Twelve Months or More, Fair Value | 1,831,683 | 1,813,173 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 20,209 |
Less Than Twelve Months, Fair Value | 0 | 7,359,536 |
Twelve Months or More, Gross Unrealized Losses | 26,272 | 47,225 |
Twelve Months or More, Fair Value | 2,515,563 | 2,782,627 |
Residential Mortgage-Backed Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 14,199 |
Less Than Twelve Months, Fair Value | 0 | 3,032,237 |
Twelve Months or More, Gross Unrealized Losses | 3,586 | 2,981 |
Twelve Months or More, Fair Value | 122,791 | 129,410 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 5,671 |
Less Than Twelve Months, Fair Value | 0 | 879,487 |
Twelve Months or More, Gross Unrealized Losses | 883 | 1,611 |
Twelve Months or More, Fair Value | $ 304,019 | $ 89,464 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Real estate loans | $ 283,449,222 | $ 283,277,489 | |
Loans pledged | 66,722,482 | ||
FHLB Blanket lien and multifamily portfolios total | 115,773,588 | ||
Loans placed on nonaccrual status amount | 905,068 | 1,204,861 | |
Past due loan over ninety days and still accruing | 0 | 0 | |
Interest income on nonaccrual | 9,896 | 64,015 | |
Impaired loans | 4,332,409 | 4,356,381 | |
Allowance for loan losses | 827,717 | 518,230 | |
Average impaired loans | $ 3,803,413 | ||
Interest income received during impairment | $ 59,744 | ||
Troubled debt restructuring | 4,275 | 7,458 | |
Troubled debt restructuring, charge -off | 0 | 0 | |
Allowance for loan losses allocated to TDRs | 4,275 | $ 0 | |
Unfunded commitments troubled debt restructured loan to lend to customer | $ 0 | ||
Annualized net charge-offs to average loans outstanding ratio | 0.19% | 0.13% | |
Individually evaluated for impairment | $ 4,332,409 | $ 4,505,505 | |
Deemed impaired loans | $ 4,332,409 | $ 4,356,381 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Loans outstanding | $ 377,711,765 | $ 376,767,688 |
Unearned interest and discount | (17,390) | (17,451) |
Allowance for loan losses | (3,366,927) | (3,428,869) |
Net loans | $ 374,327,448 | $ 373,321,368 |
Percentage of loan and allowance for loan losses | 100.00% | 100.00% |
Commercial, Financial and Agricultural Loans [Member] | ||
Loans outstanding | $ 88,999,975 | $ 88,403,215 |
Percentage of loan and allowance for loan losses | 23.60% | 23.50% |
Construction Loans [Member] | ||
Loans outstanding | $ 26,092,085 | $ 24,890,536 |
Percentage of loan and allowance for loan losses | 6.90% | 6.60% |
Commercial Mortgage Loans [Member] | ||
Loans outstanding | $ 121,855,453 | $ 123,477,369 |
Percentage of loan and allowance for loan losses | 32.30% | 32.80% |
Residential Loans [Member] | ||
Loans outstanding | $ 103,995,725 | $ 103,347,898 |
Percentage of loan and allowance for loan losses | 27.50% | 27.40% |
Agricultural Loans [Member] | ||
Loans outstanding | $ 31,505,959 | $ 31,561,686 |
Percentage of loan and allowance for loan losses | 8.30% | 8.40% |
Consumer and Other Loans [Member] | ||
Loans outstanding | $ 5,262,568 | $ 5,086,984 |
Percentage of loan and allowance for loan losses | 1.40% | 1.30% |
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] | Mar. 31, 2019USD ($) |
In one year or less | $ 35,327,184 |
After one year but within five years | 54,757,452 |
After five years | 25,007,424 |
Total | $ 115,092,060 |
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] | Mar. 31, 2019USD ($) |
Loans With Predetermined Rates | $ 76,439,177 |
Loans With Floating Rates | 3,325,699 |
Total | $ 79,764,876 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Past Due Loans and Nonaccrual Loans (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Total Past Due Loans | $ 3,160,453 | $ 2,166,283 |
Nonaccrual Loans | 905,068 | 1,204,861 |
Current Loans | 373,646,244 | 373,396,544 |
Total Loans | 377,711,765 | 376,767,688 |
Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 3,160,453 | 2,166,283 |
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 | 556,388 | 247,397 |
Nonaccrual Loans | 0 | 36,157 |
Current Loans | 88,443,587 | 88,119,661 |
Total Loans | 88,999,975 | 88,403,215 |
Commercial, Financial and Agricultural Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 556,388 | 247,397 |
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 | 536,090 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 25,555,995 | 24,890,536 |
Total Loans | 26,092,085 | 24,890,536 |
Construction Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 536,090 | 0 |
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 | 204,250 | 0 |
Nonaccrual Loans | 839,854 | 1,022,550 |
Current Loans | 120,811,349 | 122,454,819 |
Total Loans | 121,855,453 | 123,477,369 |
Commercial Mortgage Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 204,250 | 0 |
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 | 1,638,063 | 1,560,913 |
Nonaccrual Loans | 65,214 | 146,154 |
Current Loans | 102,292,448 | 101,640,831 |
Total Loans | 103,995,725 | 103,347,898 |
Residential Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 1,638,063 | 1,560,913 |
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 | 193,800 | 321,319 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 31,312,159 | 31,240,367 |
Total Loans | 31,505,959 | 31,561,686 |
Agricultural Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 193,800 | 321,319 |
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 | 31,862 | 36,654 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 5,230,706 | 5,050,330 |
Total Loans | 5,262,568 | 5,086,984 |
Consumer and Other Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 31,862 | 36,654 |
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 ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Unpaid Principal Balance | $ 4,921,273 | $ 4,187,966 |
Recorded Investment With No Allowance | 1,026,038 | 2,686,743 |
Recorded Investment With Allowance | 3,306,371 | 1,669,638 |
Total Recorded Investment | 4,332,409 | 4,356,381 |
Related Allowance | 827,717 | 518,230 |
Year-to-date Average Recorded Investment | 3,163,895 | 3,817,174 |
Interest Income Received During Impairment | 52,504 | 257,334 |
Commercial, Financial and Agricultural Loans [Member] | ||
Unpaid Principal Balance | 1,420,052 | 184,899 |
Recorded Investment With No Allowance | 78,507 | 87,525 |
Recorded Investment With Allowance | 1,254,891 | 568,816 |
Total Recorded Investment | 1,333,398 | 656,341 |
Related Allowance | 562,925 | 276,392 |
Year-to-date Average Recorded Investment | 461,763 | 370,038 |
Interest Income Received During Impairment | 8,225 | 52,411 |
Construction Loans [Member] | ||
Unpaid Principal Balance | 393,898 | 402,234 |
Recorded Investment With No Allowance | 273,098 | 281,434 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 273,098 | 281,434 |
Related Allowance | 0 | 0 |
Year-to-date Average Recorded Investment | 273,098 | 281,434 |
Interest Income Received During Impairment | 5,253 | 25,364 |
Commercial Mortgage Loans [Member] | ||
Unpaid Principal Balance | 1,661,727 | 1,787,305 |
Recorded Investment With No Allowance | 346,979 | 1,277,611 |
Recorded Investment With Allowance | 954,250 | 333,892 |
Total Recorded Investment | 1,301,229 | 1,611,503 |
Related Allowance | 38,678 | 51,854 |
Year-to-date Average Recorded Investment | 1,097,539 | 1,544,299 |
Interest Income Received During Impairment | 9,701 | 45,403 |
Residential Loans [Member] | ||
Unpaid Principal Balance | 1,432,181 | 1,801,002 |
Recorded Investment With No Allowance | 327,454 | 1,027,647 |
Recorded Investment With Allowance | 1,083,815 | 752,443 |
Total Recorded Investment | 1,411,269 | 1,780,090 |
Related Allowance | 225,215 | 188,368 |
Year-to-date Average Recorded Investment | 1,318,080 | 1,594,390 |
Interest Income Received During Impairment | 28,979 | 127,806 |
Agricultural Loans [Member] | ||
Unpaid Principal Balance | 0 | 12,526 |
Recorded Investment With No Allowance | 0 | 12,526 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 12,526 |
Related Allowance | 0 | 0 |
Year-to-date Average Recorded Investment | 0 | 12,526 |
Interest Income Received During Impairment | 0 | 5,530 |
Consumer and Other Loans [Member] | ||
Unpaid Principal Balance | 13,415 | 0 |
Recorded Investment With No Allowance | 0 | 0 |
Recorded Investment With Allowance | 13,415 | 14,487 |
Total Recorded Investment | 13,415 | 14,487 |
Related Allowance | 899 | 1,616 |
Year-to-date Average Recorded Investment | 13,415 | 14,487 |
Interest Income Received During Impairment | $ 346 | $ 820 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructuring by Loan Class (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Troubled Debt Restructuring | $ 4,275 | $ 7,458 |
Current [Member] | ||
Troubled Debt Restructuring | 4,275 | 7,458 |
Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Accruing [Member] | ||
Troubled Debt Restructuring | 4,275 | 7,458 |
Non-accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Current [Member] | ||
Troubled Debt Restructuring | 4,275 | 5,570 |
Commercial, Financial and Agricultural Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 4,275 | 5,570 |
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 | 0 | 1,888 |
Residential Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Residential Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 0 | 1,888 |
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 | 0 | 0 |
Consumer and Other Loans [Member] | Default [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
Consumer and Other Loans [Member] | Accruing [Member] | ||
Troubled Debt Restructuring | 0 | 0 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Accruing [Member] | ||
Payment modification | $ 0 | $ 0 |
Rate reduction | 0 | 0 |
Rate reduction, payment modification | 4,275 | 1,888 |
Forbearance of interest | 0 | 5,570 |
Total | 4,275 | 7,458 |
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 ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Total Loans | $ 377,711,765 | $ 376,767,688 |
Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 88,999,975 | 88,403,215 |
Construction Loans [Member] | ||
Total Loans | 26,092,085 | 24,890,536 |
Commercial Mortgage Loans [Member] | ||
Total Loans | 121,855,453 | 123,477,369 |
Residential Loans [Member] | ||
Total Loans | 103,995,725 | 103,347,898 |
Agricultural Loans [Member] | ||
Total Loans | 31,505,959 | 31,561,686 |
Consumer and Other Loans [Member] | ||
Total Loans | 5,262,568 | 5,086,984 |
Rating, Grade 1- Exceptional [Member] | ||
Total Loans | 1,611,390 | 1,470,552 |
Rating, Grade 1- Exceptional [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 1,389,477 | 1,237,602 |
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 | 22,656 | 22,905 |
Rating, Grade 1- Exceptional [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 199,257 | 210,045 |
Rating, Grade 2- Above Avg. [Member] | ||
Total Loans | 43,134 | 43,711 |
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 | 43,134 | 43,711 |
Rating, Grade 3- Acceptable [Member] | ||
Total Loans | 99,805,599 | 99,934,655 |
Rating, Grade 3- Acceptable [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 23,896,901 | 23,821,846 |
Rating, Grade 3- Acceptable [Member] | Construction Loans [Member] | ||
Total Loans | 2,140,022 | 1,860,003 |
Rating, Grade 3- Acceptable [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 28,634,023 | 30,398,565 |
Rating, Grade 3- Acceptable [Member] | Residential Loans [Member] | ||
Total Loans | 26,258,915 | 25,839,646 |
Rating, Grade 3- Acceptable [Member] | Agricultural Loans [Member] | ||
Total Loans | 17,060,292 | 16,863,356 |
Rating, Grade 3- Acceptable [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 1,815,446 | 1,151,239 |
Rating, Grade 4- Fair [Member] | ||
Total Loans | 265,321,729 | 261,095,735 |
Rating, Grade 4- Fair [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 62,003,261 | 58,753,931 |
Rating, Grade 4- Fair [Member] | Construction Loans [Member] | ||
Total Loans | 23,429,965 | 22,749,099 |
Rating, Grade 4- Fair [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 88,485,618 | 88,122,957 |
Rating, Grade 4- Fair [Member] | Residential Loans [Member] | ||
Total Loans | 73,773,119 | 73,114,310 |
Rating, Grade 4- Fair [Member] | Agricultural Loans [Member] | ||
Total Loans | 14,445,667 | 14,698,330 |
Rating, Grade 4- Fair [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 3,184,099 | 3,657,108 |
Rating, Grade 5a- Watch [Member] | ||
Total Loans | 4,961,783 | 3,613,973 |
Rating, Grade 5a- Watch [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 758,902 | 473,616 |
Rating, Grade 5a- Watch [Member] | Construction Loans [Member] | ||
Total Loans | 273,098 | 0 |
Rating, Grade 5a- Watch [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 1,908,525 | 2,411,710 |
Rating, Grade 5a- Watch [Member] | Residential Loans [Member] | ||
Total Loans | 2,006,308 | 722,441 |
Rating, Grade 5a- Watch [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5a- Watch [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 14,950 | 6,206 |
Rating, Grade 5b- OAEM [Member] | ||
Total Loans | 244,637 | 4,827,694 |
Rating, Grade 5b- OAEM [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 244,637 | 3,079,098 |
Rating, Grade 5b- OAEM [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5b- OAEM [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 446,841 |
Rating, Grade 5b- OAEM [Member] | Residential Loans [Member] | ||
Total Loans | 0 | 1,299,587 |
Rating, Grade 5b- OAEM [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5b- OAEM [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 0 | 2,168 |
Rating, Grade 6- Substandard [Member] | ||
Total Loans | 4,068,798 | 5,531,555 |
Rating, Grade 6- Substandard [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 702,441 | 787,309 |
Rating, Grade 6- Substandard [Member] | Construction Loans [Member] | ||
Total Loans | 249,000 | 281,434 |
Rating, Grade 6- Substandard [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 2,400,340 | 2,097,296 |
Rating, Grade 6- Substandard [Member] | Residential Loans [Member] | ||
Total Loans | 712,620 | 2,349,009 |
Rating, Grade 6- Substandard [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 6- Substandard [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 4,397 | 16,507 |
Rating, Grade 7- Doubtful [Member] | ||
Total Loans | 1,654,695 | 249,813 |
Rating, Grade 7- Doubtful [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 4,356 | 249,813 |
Rating, Grade 7- Doubtful [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 426,947 | 0 |
Rating, Grade 7- Doubtful [Member] | Residential Loans [Member] | ||
Total Loans | 1,222,107 | 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 | $ 1,285 | $ 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 | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Beginning balance | $ 3,428,869 | $ 3,043,632 |
Charge-offs | 184,696 | 606,345 |
Recoveries | 6,846 | 162,082 |
Net charge-offs | 177,850 | 444,263 |
Provisions charged to operations | 115,908 | 829,500 |
Individually evaluated for impairment | 827,717 | 518,230 |
Collectively evaluated for impairment | 2,539,210 | 2,910,639 |
Balance at end of period | 3,366,927 | 3,428,869 |
Individually evaluated for impairment | 4,332,409 | 4,505,505 |
Collectively evaluated for impairment | 373,379,356 | 372,262,183 |
Balance at end of period | 377,711,765 | 376,767,688 |
Commercial, Financial and Agricultural [Member] | ||
Beginning balance | 402,251 | 324,260 |
Charge-offs | 0 | 548,460 |
Recoveries | 2,696 | 12,025 |
Net charge-offs | (2,696) | 536,435 |
Provisions charged to operations | 98,375 | 614,426 |
Individually evaluated for impairment | 562,925 | 276,392 |
Collectively evaluated for impairment | (59,603) | 125,859 |
Balance at end of period | 503,322 | 402,251 |
Individually evaluated for impairment | 1,333,398 | 656,341 |
Collectively evaluated for impairment | 87,666,577 | 87,746,874 |
Balance at end of period | 88,999,975 | 88,403,215 |
Construction Real Estate [Member] | ||
Beginning balance | 1,043,027 | 1,043,083 |
Charge-offs | 0 | 783 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 783 |
Provisions charged to operations | 0 | 727 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,043,027 | 1,043,027 |
Balance at end of period | 1,043,027 | 1,043,027 |
Individually evaluated for impairment | 273,098 | 281,434 |
Collectively evaluated for impairment | 25,818,987 | 24,609,102 |
Balance at end of period | 26,092,085 | 24,890,536 |
Commercial Real Estate [Member] | ||
Beginning balance | 1,210,302 | 1,056,595 |
Charge-offs | 184,696 | 43,349 |
Recoveries | 3,368 | 590 |
Net charge-offs | 181,328 | 42,759 |
Provisions charged to operations | 48,695 | 196,466 |
Individually evaluated for impairment | 38,678 | 51,854 |
Collectively evaluated for impairment | 1,038,991 | 1,158,448 |
Balance at end of period | 1,077,669 | 1,210,302 |
Individually evaluated for impairment | 1,301,229 | 1,611,503 |
Collectively evaluated for impairment | 120,554,224 | 121,865,866 |
Balance at end of period | 121,855,453 | 123,477,369 |
Residential Real Estate [Member] | ||
Beginning balance | 458,871 | 416,474 |
Charge-offs | 0 | 6,909 |
Recoveries | 0 | 0 |
Net charge-offs | 0 | 6,909 |
Provisions charged to operations | 0 | 49,306 |
Individually evaluated for impairment | 225,215 | 188,368 |
Collectively evaluated for impairment | 233,656 | 270,503 |
Balance at end of period | 458,871 | 458,871 |
Individually evaluated for impairment | 1,411,269 | 1,929,214 |
Collectively evaluated for impairment | 102,584,456 | 101,418,684 |
Balance at end of period | 103,995,725 | 103,347,898 |
Agricultural Real Estate [Member] | ||
Beginning balance | 108,878 | 11,560 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 147,252 |
Net charge-offs | 0 | (147,252) |
Provisions charged to operations | (31,998) | (49,934) |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 76,880 | 108,878 |
Balance at end of period | 76,880 | 108,878 |
Individually evaluated for impairment | 0 | 12,526 |
Collectively evaluated for impairment | 31,505,959 | 31,549,160 |
Balance at end of period | 31,505,959 | 31,561,686 |
Consumer and Other [Member] | ||
Beginning balance | 205,540 | 191,660 |
Charge-offs | 0 | 6,844 |
Recoveries | 782 | 2,215 |
Net charge-offs | (782) | 4,629 |
Provisions charged to operations | 836 | 18,509 |
Individually evaluated for impairment | 899 | 1,616 |
Collectively evaluated for impairment | 206,259 | 203,924 |
Balance at end of period | 207,158 | 205,540 |
Individually evaluated for impairment | 13,415 | 14,487 |
Collectively evaluated for impairment | 5,249,153 | 5,072,497 |
Balance at end of period | $ 5,262,568 | $ 5,086,984 |