Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ( 5 ) Loans The following table presents the composition of loans, segregated by class of loans, as of December 31: 20 1 8 2017 Commercial and Agricultural Commercial $ 57,410,473 $ 48,122,263 Agricultural 16,798,743 16,442,581 Real Estate Commercial Construction 47,848,754 45,213,960 Residential Construction 12,499,744 8,583,446 Commercial 373,533,562 351,171,668 Residential 187,714,372 194,048,945 Farmland 62,708,998 67,767,655 Consumer and Other Consumer 18,485,199 18,956,028 Other 5,027,523 14,977,309 Total Loans $ 782,027,368 $ 765,283,855 Commercial and agricultural loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer loans are originated at the bank level. These loans are generally smaller loan amounts spread across many individual borrowers to help minimize risk. Credit Q uality Indicators. 1 2 3 4 5 The Company uses a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 8. ● Grades 1 2 may ● Grades 3 4 no one ● Grade 5 ● Grade 6 ● Grades 7 8 no 6. The following tables present the loan portfolio by credit quality indicator (risk grade) as of December 31. 1, 2, 3 4 201 8 Pass Special Mention Substandard Total Loans Commercial and Agricultural Commercial $ 55,808,422 $ 729,088 $ 872,963 $ 57,410,473 Agricultural 15,664,048 636,666 498,029 16,798,743 Real Estate Commercial Construction 47,087,255 44,306 717,193 47,848,754 Residential Construction 12,499,744 - - 12,499,744 Commercial 358,139,315 7,661,667 7,732,580 373,533,562 Residential 170,050,484 7,106,793 10,557,095 187,714,372 Farmland 58,712,452 1,912,338 2,084,208 62,708,998 Consumer and Other Consumer 18,103,792 59,073 322,334 18,485,199 Other 5,018,095 5,475 3,953 5,027,523 Total Loans $ 741,083,607 $ 18,155,406 $ 22,788,355 $ 782,027,368 2017 Commercial and Agricultural Commercial $ 46,468,726 $ 825,607 $ 827,930 $ 48,122,263 Agricultural 15,868,191 174,356 400,034 16,442,581 Real Estate Commercial Construction 41,282,295 577,765 3,353,900 45,213,960 Residential Construction 8,583,446 - - 8,583,446 Commercial 338,775,805 7,662,637 4,733,226 351,171,668 Residential 177,962,870 4,864,893 11,221,182 194,048,945 Farmland 66,334,906 444,095 988,654 67,767,655 Consumer and Other Consumer 18,495,798 52,970 407,260 18,956,028 Other 14,968,677 8,632 - 14,977,309 Total Loans $ 728,740,714 $ 14,610,955 $ 21,932,186 $ 765,283,855 A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to reassessment at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 6 $250,000 may not Loans are considered past due if the required principal and interest payments have not 90 may may The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of December 31: Accruing Loans 201 8 30-89 Days Past Due 90 Days or More Past Due Total Accruing Loans Past Due Nonaccrual Loans Current Loan s Total Loans Commercial and Agricultural Commercial $ 282,116 $ - $ 282,116 $ 637,085 $ 56,491,272 $ 57,410,473 Agricultural 117,087 - 117,087 413,254 16,268,402 16,798,743 Real Estate Commercial Construction 88,371 - 88,371 462,841 47,297,542 47,848,754 Residential Construction - - - - 12,499,744 12,499,744 Commercial 679,387 - 679,387 2,965,546 369,888,629 373,533,562 Residential 6,881,632 - 6,881,632 2,734,179 178,098,561 187,714,372 Farmland 75,548 - 75,548 2,052,604 60,580,846 62,708,998 Consumer and Other Consumer 110,340 - 110,340 212,524 18,162,335 18,485,199 Other - - - 3,953 5,023,570 5,027,523 Total Loans $ 8,234,481 $ - $ 8,234,481 $ 9,481,986 $ 764,310,901 $ 782,027,368 2017 Commercial and Agricultural Commercial $ 328,483 $ - $ 328,483 $ 598,305 $ 47,195,475 $ 48,122,263 Agricultural 110,482 - 110,482 398,509 15,933,590 16,442,581 Real Estate Commercial Construction 27,062 - 27,062 477,043 44,709,855 45,213,960 Residential Construction 119,443 - 119,443 - 8,464,003 8,583,446 Commercial 918,997 - 918,997 2,172,229 348,080,442 351,171,668 Residential 2,482,276 - 2,482,276 2,829,966 188,736,703 194,048,945 Farmland 318,329 - 318,329 838,577 66,610,749 67,767,655 Consumer and Other Consumer 246,175 246,175 188,073 18,521,780 18,956,028 Other 7,158 - 7,158 - 14,970,151 14,977,309 Total Loans $ 4,558,405 $ - $ 4,558,405 $ 7,502,702 $ 753,222,748 $ 765,283,855 Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $226,000, $205,000 $387,000 December 31, 2018, 2017 2016, The following table details impaired loan data as of December 31, 2018: Unpaid Contractual Principal Balance Impaired Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income Collected With No Related Allowance Recorded Commercial $ 595,323 $ 595,323 $ - $ 525,463 $ 21,350 $ 23,985 Agricultural 433,915 413,254 - 382,978 17,949 24,825 Commercial Construction 132,366 132,366 - 69,396 7,806 7,966 Residential Construction - - - - - - Commercial Real Estate 12,163,915 12,163,915 - 11,039,755 581,836 582,893 Residential Real Estate 4,214,354 4,129,876 - 4,067,529 208,138 212,509 Farmland 2,054,137 2,052,604 - 1,361,278 52,974 81,962 Consumer 212,524 212,524 - 197,225 13,614 14,373 Other 3,953 3,953 - 791 204 233 $ 19,810,487 $ 19,703,815 $ - $ 17,644,415 $ 903,871 $ 948,746 With An Allowance Recorded Commercial $ 41,762 $ 41,762 $ 6,264 $ 8,352 $ 2,154 $ 2,247 Agricultural - - - - - - Commercial Construction 398,930 398,930 38,930 465,929 - - Residential Construction - - - - - - Commercial Real Estate 3,691,010 3,691,010 1,275,837 5,120,933 135,042 141,978 Residential Real Estate 274,198 274,198 60,716 97,902 8,187 8,180 Farmland 363,566 363,566 35,984 367,425 24,075 24,415 Consumer - - - - - - Other - - - - - - $ 4,769,466 $ 4,769,466 $ 1,417,731 $ 6,060,541 $ 169,458 $ 176,820 Total Commercial $ 637,085 $ 637,085 $ 6,264 $ 533,815 $ 23,504 $ 26,232 Agricultural 433,915 413,254 - 382,978 17,949 24,825 Commercial Construction 531,296 531,296 38,930 535,325 7,806 7,966 Residential Construction - - - - - - Commercial Real Estate 15,854,925 15,854,925 1,275,837 16,160,688 716,878 724,871 Residential Real Estate 4,488,552 4,404,074 60,716 4,165,431 216,325 220,689 Farmland 2,417,703 2,416,170 35,984 1,728,703 77,049 106,377 Consumer 212,524 212,524 - 197,225 13,614 14,373 Other 3,953 3,953 - 791 204 233 $ 24,579,953 $ 24,473,281 $ 1,417,731 $ 23,704,956 $ 1,073,329 $ 1,125,566 The following table details impaired loan data as of December 31, 2017: Unpaid Contractual Principal Balance Impaired Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income Collected With No Related Allowance Recorded Commercial $ 598,305 $ 598,305 $ - $ 633,528 $ 33,283 $ 33,868 Agricultural 485,132 398,509 - 296,578 11,046 19,376 Commercial Construction 54,306 54,306 - 141,396 3,526 3,836 Residential Construction - - - 79,295 - - Commercial Real Estate 12,637,057 12,637,057 - 12,808,414 559,601 549,825 Residential Real Estate 4,977,769 4,579,614 - 4,566,041 211,318 226,684 Farmland 840,110 838,577 - 790,967 54,367 58,085 Consumer 188,073 188,073 - 186,348 8,576 9,452 $ 19,780,752 $ 19,294,441 $ - $ 19,502,567 $ 881,717 $ 901,126 With An Allowance Recorded Commercial $ - $ - $ - $ - $ - $ - Agricultural - - - - - - Commercial Construction 493,067 493,067 65,635 241,063 22,626 32,922 Residential Construction - - - - - - Commercial Real Estate 5,729,300 5,729,300 1,712,557 6,599,144 228,745 237,066 Residential Real Estate 108,859 108,859 27,123 482,228 4,261 7,446 Farmland 371,376 371,376 21,369 375,595 22,121 22,021 Consumer - - - - - - $ 6,702,602 $ 6,702,602 $ 1,826,684 $ 7,698,030 $ 277,753 $ 299,455 Total Commercial $ 598,305 $ 598,305 $ - $ 633,528 $ 33,283 $ 33,868 Agricultural 485,132 398,509 - 296,578 11,046 19,376 Commercial Construction 547,373 547,373 65,635 382,459 26,152 36,758 Residential Construction - - - 79,295 - - Commercial Real Estate 18,366,357 18,366,357 1,712,557 19,407,558 788,346 786,891 Residential Real Estate 5,086,628 4,688,473 27,123 5,048,269 215,579 234,130 Farmland 1,211,486 1,209,953 21,369 1,166,562 76,488 80,106 Consumer 188,073 188,073 - 186,348 8,576 9,452 $ 26,483,354 $ 25,997,043 $ 1,826,684 $ 27,200,597 $ 1,159,470 $ 1,200,581 The following table details impaired loan data as of December 31, 2016: Unpaid Contractual Principal Balance Impaired Balance Related Allowance Average Recorded Investment Interest Income Recognized Interest Income Collected With No Related Allowance Recorded Commercial $ 634,955 $ 634,955 $ - $ 539,099 $ 24,563 $ 27,142 Agricultural 229,182 208,522 - 210,372 8,794 12,412 Commercial Construction 190,494 190,494 - 697,893 6,630 7,127 Commercial Real Estate 14,357,601 14,276,688 - 14,274,719 567,349 560,354 Residential Real Estate 4,261,558 3,952,139 - 4,553,322 73,099 190,373 Farmland 920,666 799,556 - 1,016,395 21,526 26,012 Consumer 212,376 212,026 - 213,309 9,599 12,036 $ 20,806,832 $ 20,274,380 $ - $ 21,505,109 $ 711,560 $ 835,456 With An Allowance Recorded Commercial $ - $ - $ - $ 30,270 $ - $ - Agricultural - - - - - - Commercial Construction 72,296 72,296 21,135 74,098 1,532 1,416 Commercial Real Estate 8,557,582 8,467,135 3,021,943 8,339,666 238,684 235,749 Residential Real Estate 1,475,594 1,467,833 362,521 1,042,750 27,759 32,260 Farmland 379,851 379,851 29,173 384,056 21,098 21,310 Consumer - - - - - - $ 10,485,323 $ 10,387,115 $ 3,434,772 $ 9,870,840 $ 289,073 $ 290,735 Total Commercial $ 634,955 $ 634,955 $ - $ 569,369 $ 24,563 $ 27,142 Agricultural 229,182 208,522 - 210,372 8,794 12,412 Commercial Construction 262,790 262,790 21,135 771,991 8,162 8,543 Commercial Real Estate 22,915,183 22,743,823 3,021,943 22,614,385 806,033 796,103 Residential Real Estate 5,737,152 5,419,972 362,521 5,596,072 100,858 222,633 Farmland 1,300,517 1,179,407 29,173 1,400,451 42,624 47,322 Consumer 212,376 212,026 - 213,309 9,599 12,036 $ 31,292,155 $ 30,661,495 $ 3,434,772 $ 31,375,949 $ 1,000,633 $ 1,126,191 Troubled Debt Restructurings (TDRs) are troubled loans on which the original terms of the loan have been modified in favor of the borrower due to deterioration in the borrower’s financial condition. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower’s specific circumstances at a point in time. Not ● Interest rate reductions - Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not ● Amortization or maturity date changes - Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral. ● Principal reductions - These are often the result of commercial real estate loan workouts where two no no As discussed in Note 1, no December 31, 2018. 12 months ended December 31, 2018, 2017 2016. 12 90 may six not Troubled Debt Restructurings 201 8 # of Contracts Pre-Modification Post-Modification Commercial Real Estate 1 $ 402,430 $ 402,430 2017 Commercial Real Estate - $ - $ - Residential Real Estate - - - Total Loans - - - 2016 Commercial Real Estate 1 $ 91,280 $ 91,097 Residential Real Estate 1 354,784 354,784 Total Loans 2 $ 446,064 $ 445,881 Troubled debt restructurings that subsequently defaulted as of December 31 201 8 2017 2016 # of Contracts Recorded Investment # of Contracts Recorded Investment # of Contracts Recorded Investment Residential Real Estate 1 $ 131,067 - $ - 1 $ 89,297 Total Loans 1 $ 131,067 - $ - 1 $ 89,297 During 2018, $131,067 December 31, 2017, December 2016, $89,297 June 2016. |