Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 09, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Community Bancorp /VT | |
Entity Central Index Key | 718,413 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer | No | |
Is Entity a Voluntary Filer | No | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,042,934 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Assets | |||
Cash and due from banks | $ 11,705,902 | $ 9,479,353 | $ 11,300,856 |
Federal funds sold and overnight deposits | 673,911 | 19,372,537 | 3,438,242 |
Total cash and cash equivalents | 12,379,813 | 28,851,890 | 14,739,098 |
Securities held-to-maturity (fair value $57,592,000 at 09/30/16, $44,143,000 at 12/31/15 and $48,011,000 at 09/30/15) | 56,837,100 | 43,354,419 | 47,657,894 |
Securities available-for-sale | 29,412,216 | 26,470,400 | 30,385,242 |
Restricted equity securities, at cost | 1,855,850 | 2,441,650 | 3,332,450 |
Loans held-for-sale | 708,975 | 1,199,400 | 1,198,633 |
Loans | 470,186,895 | 458,119,429 | 455,418,132 |
Allowance for loan losses | (5,179,965) | (5,011,878) | (5,015,987) |
Deferred net loan costs | 312,565 | 316,491 | 308,189 |
Net loans | 465,319,495 | 453,424,042 | 450,710,334 |
Bank premises and equipment, net | 10,833,164 | 11,460,207 | 11,291,015 |
Accrued interest receivable | 1,649,964 | 1,633,213 | 1,687,483 |
Bank owned life insurance (BOLI) | 4,599,301 | 4,520,486 | 4,493,676 |
Core deposit intangible | 340,861 | 545,386 | 613,556 |
Goodwill | 11,574,269 | 11,574,269 | 11,574,269 |
Other real estate owned (OREO) | 409,000 | 262,000 | 1,058,475 |
Other assets | 9,870,422 | 10,397,347 | 10,218,014 |
Total assets | 605,790,430 | 596,134,709 | 588,960,139 |
Deposits: | |||
Demand, non-interest bearing | 101,259,470 | 93,525,762 | 91,124,547 |
Interest-bearing transaction accounts | 119,981,648 | 130,735,094 | 113,669,795 |
Money market funds | 76,976,376 | 81,930,888 | 89,103,792 |
Savings | 91,274,380 | 81,731,290 | 81,550,091 |
Time deposits, $250,000 and over | 10,848,979 | 9,431,437 | 9,374,291 |
Other time deposits | 103,466,053 | 98,131,091 | 94,185,975 |
Total deposits | 503,806,906 | 495,485,562 | 479,008,491 |
Federal funds purchased and other borrowed funds | 5,795,000 | 10,000,000 | 20,000,000 |
Repurchase agreements | 25,834,249 | 22,073,238 | 21,977,315 |
Capital lease obligations | 493,810 | 558,365 | 579,277 |
Junior subordinated debentures | 12,887,000 | 12,887,000 | 12,887,000 |
Accrued interest and other liabilities | 3,129,831 | 3,715,888 | 3,550,476 |
Total liabilities | 551,946,796 | 544,720,053 | 538,002,559 |
Shareholders' Equity | |||
Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value) | 2,500,000 | 2,500,000 | 2,500,000 |
Common stock - $2.50 par value; 15,000,000 shares authorized, 5,253,090 shares issued at 09/30/16, 5,204,517 shares issued at 12/31/15 and 5,189,705 shares issued at 09/30/15 | 13,132,725 | 13,011,293 | 12,974,263 |
Additional paid-in capital | 30,639,268 | 30,089,438 | 29,908,987 |
Retained earnings | 9,991,842 | 8,482,096 | 8,100,897 |
Accumulated other comprehensive income (loss) | 202,576 | (45,394) | 96,210 |
Less: treasury stock, at cost; 210,101 shares at 09/30/16, 12/31/15 and 09/30/15 | (2,622,777) | (2,622,777) | (2,622,777) |
Total shareholders' equity | 53,843,634 | 51,414,656 | 50,957,580 |
Total liabilities and shareholders' equity | $ 605,790,430 | $ 596,134,709 | $ 588,960,139 |
Book value per common share outstanding | $ 10.18 | $ 9.79 | $ 9.73 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Assets | |||
Securities held-to-maturity, fair value | $ 57,592,000 | $ 44,143,000 | $ 48,011,000 |
Shareholder's Equity | |||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 25 | 25 | 25 |
Preferred stock, shares outstanding (in shares) | 25 | 25 | 25 |
Preferred stock liquidation value | $ 100,000 | $ 100,000 | $ 100,000 |
Common stock par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 5,253,090 | 5,204,517 | 5,189,705 |
Treasury stock (in shares) | 210,101 | 210,101 | 210,101 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income | ||||
Interest and fees on loans | $ 5,732,855 | $ 5,503,166 | $ 16,582,276 | $ 16,314,191 |
Interest on debt securities | ||||
Taxable | 128,767 | 119,977 | 384,413 | 327,624 |
Tax-exempt | 339,999 | 279,041 | 942,246 | 826,421 |
Dividends | 49,429 | 34,365 | 108,141 | 82,036 |
Interest on federal funds sold and overnight deposits | 3,048 | 3,186 | 18,654 | 7,446 |
Total interest income | 6,254,098 | 5,939,735 | 18,035,730 | 17,557,718 |
Interest expense | ||||
Interest on deposits | 504,170 | 484,278 | 1,529,465 | 1,605,916 |
Interest on federal funds purchased and other borrowed funds | 53,404 | 28,229 | 106,807 | 66,505 |
Interest on repurchase agreements | 18,820 | 16,689 | 56,125 | 54,259 |
Interest on junior subordinated debentures | 115,349 | 103,274 | 339,603 | 305,607 |
Total interest expense | 691,743 | 632,470 | 2,032,000 | 2,032,287 |
Net interest income | 5,562,355 | 5,307,265 | 16,003,730 | 15,525,431 |
Provision for loan losses | 150,000 | 75,000 | 400,000 | 375,000 |
Net interest income after provision for loan losses | 5,412,355 | 5,232,265 | 15,603,730 | 15,150,431 |
Non-interest income | ||||
Service fees | 719,341 | 657,949 | 1,992,560 | 1,932,367 |
Income from sold loans | 230,623 | 239,724 | 683,114 | 687,964 |
Other income from loans | 209,882 | 223,465 | 616,473 | 544,097 |
Net realized gain on sale of securities available-for-sale | 0 | 2,723 | ||
Other income | 323,674 | 178,857 | 747,923 | 650,110 |
Total non-interest income | 1,483,520 | 1,299,995 | 4,040,070 | 3,817,261 |
Non-interest expense | ||||
Salaries and wages | 1,725,000 | 1,650,000 | 5,175,000 | 4,988,352 |
Employee benefits | 679,762 | 575,129 | 2,049,926 | 1,911,809 |
Occupancy expenses, net | 605,378 | 676,559 | 1,857,482 | 1,976,226 |
Other expenses | 1,780,363 | 1,630,186 | 5,065,565 | 5,132,055 |
Total non-interest expense | 4,790,503 | 4,531,874 | 14,147,973 | 14,008,442 |
Income before income taxes | 2,105,372 | 2,000,386 | 5,495,827 | 4,959,250 |
Income tax expense | 589,472 | 560,564 | 1,515,234 | 1,331,884 |
Net income | $ 1,515,900 | $ 1,439,822 | $ 3,980,593 | $ 3,627,366 |
Earnings per common share | $ 0.3 | $ 0.29 | $ 0.78 | $ 0.72 |
Weighted average number of common shares used in computing earnings per share | 5,032,156 | 4,969,425 | 5,016,191 | 4,954,381 |
Dividends declared per common share | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,515,900 | $ 1,439,822 | $ 3,980,593 | $ 3,627,366 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gain (loss) on available-for-sale securities arising during the period | (46,840) | 145,990 | 375,713 | 159,775 |
Reclassification adjustment for gain realized in income | 0 | (2,723) | ||
Unrealized gain during the year | 375,713 | 157,052 | ||
Tax effect | 15,926 | (49,637) | (127,743) | (53,398) |
Other comprehensive income (loss), net of tax | (30,914) | 96,353 | 247,970 | 103,654 |
Total comprehensive income | $ 1,484,986 | $ 1,536,175 | $ 4,228,563 | $ 3,731,020 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 3,980,593 | $ 3,627,366 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, bank premises and equipment | 779,240 | 728,753 |
Provision for loan losses | 400,000 | 375,000 |
Deferred income tax | (132,862) | (261,012) |
Gain on sale of securities available-for-sale | 0 | (2,723) |
Gain on sale of loans | (351,824) | (301,910) |
Loss on sale of bank premises and equipment | 0 | 87,278 |
Loss on sale of OREO | 4,965 | 5,384 |
Income from Trust LLC | (326,675) | (269,313) |
Amortization of bond premium, net | 90,099 | 130,432 |
Write down of OREO | 26,000 | 45,320 |
Proceeds from sales of loans held for sale | 18,648,432 | 18,395,365 |
Originations of loans held for sale | (17,806,183) | (19,265,838) |
Increase in taxes payable | 358,630 | 251,897 |
(Increase) decrease in interest receivable | (16,751) | 10,965 |
Decrease in mortgage servicing rights | 77,768 | 15,716 |
Increase in other assets | (17,149) | (258,984) |
Increase in cash surrender value of BOLI | (78,815) | (80,102) |
Amortization of core deposit intangible | 204,525 | 204,525 |
Amortization of limited partnerships | 439,470 | 423,999 |
Decrease (increase) in unamortized loan costs | 3,926 | (4,795) |
Decrease in interest payable | (8,421) | (13,022) |
Increase (decrease) in accrued expenses | 93,410 | (52,429) |
Increase (decrease) in other liabilities | 17,835 | (9,752) |
Net cash provided by operating activities | 6,386,213 | 3,782,120 |
Cash Flows from Investing Activities: | ||
Investments - held-to-maturity Maturities and pay downs | 28,312,853 | 28,218,911 |
Purchases | (41,795,534) | (34,065,859) |
Investments - available-for-sale Maturities, calls, pay downs and sales | 4,550,645 | 11,081,823 |
Purchases | (7,206,847) | (8,490,830) |
Proceeds from redemption of restricted equity securities | 585,800 | 0 |
(Decrease) increase in limited partnership contributions payable | (687,500) | 975,000 |
Investments in limited partnerships | 0 | (975,500) |
Increase in loans, net | (12,747,728) | (8,035,374) |
Capital expenditures for bank premises and equipment | (152,199) | (618,097) |
Proceeds from sales of OREO | 217,143 | 210,616 |
Recoveries of loans charged off | 53,242 | 75,835 |
Net cash (used in) provided by investing activities | (28,870,125) | (11,623,475) |
Cash Flows from Financing Activities: | ||
Net decrease in demand and interest-bearing transaction accounts | (3,019,738) | (9,352,999) |
Net increase in money market and savings accounts | 4,588,578 | 4,804,037 |
Net increase (decrease) in time deposits | 6,752,504 | (9,462,010) |
Net increase (decrease) in repurchase agreements | 3,761,011 | (6,565,646) |
Net (decrease) increase in short-term borrowings | (4,755,000) | 20,000,000 |
Proceeds from long-term borrowings | 550,000 | 0 |
Decrease in capital lease obligations | (64,555) | (60,267) |
Dividends paid on preferred stock | (65,625) | (60,938) |
Dividends paid on common stock | (1,735,340) | (1,683,898) |
Net cash provided by (used in) financing activities | 6,011,835 | (2,381,721) |
Net decrease in cash and cash equivalents | (16,472,077) | (10,223,076) |
Cash and cash equivalents: | ||
Beginning | 28,851,890 | 24,962,174 |
Ending | 12,379,813 | 14,739,098 |
Supplemental Schedule of Cash Paid During the Period: | ||
Interest | 2,040,421 | 2,045,309 |
Income taxes, net of refunds | 850,000 | 917,000 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Change in unrealized gain on securities available-for-sale | 375,713 | 157,052 |
Loans transferred to OREO | 395,108 | 81,475 |
Common Shares Dividends Paid: | ||
Dividends declared | 2,405,222 | 2,375,465 |
Decrease (increase) in dividends payable attributable to dividends declared | 1,380 | (23,805) |
Dividends reinvested | (671,262) | (667,762) |
Total | $ 1,735,340 | $ 1,683,898 |
1. Basis of Presentation and Co
1. Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Note 1. Basis of Presentation and Consolidation | The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the financial condition and results of operations of the Company contained herein have been made. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015 contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full annual period ending December 31, 2016, or for any other interim period. Certain amounts in the 2015 unaudited consolidated income statements have been reclassified to conform to the 2016 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. |
2. Recent Accounting Developmen
2. Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Note 2. Recent Accounting Developments | In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments A modified version of these requirements also applies to debt securities classified as available for sale. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the impact |
3. Earnings per Common Share
3. Earnings per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Note 3. Earnings per Common Share | Earnings per common share amounts are computed based on the weighted average number of shares of common stock issued during the period (retroactively adjusted for stock splits and stock dividends, if any), including Dividend Reinvestment Plan shares issuable upon reinvestment of dividends declared, and reduced for shares held in treasury. The following tables illustrate the calculation of earnings per common share for the periods presented, as adjusted for the cash dividends declared on the preferred stock: Three Months Ended September 30, 2016 2015 Net income, as reported $ 1,515,900 $ 1,439,822 Less: dividends to preferred shareholders 21,875 20,313 Net income available to common shareholders $ 1,494,025 $ 1,419,509 Weighted average number of common shares used in calculating earnings per share 5,032,156 4,969,425 Earnings per common share $ 0.30 $ 0.29 Nine Months Ended September 30, 2016 2015 Net income, as reported $ 3,980,593 $ 3,627,366 Less: dividends to preferred shareholders 65,625 60,938 Net income available to common shareholders $ 3,914,968 $ 3,566,428 Weighted average number of common shares used in calculating earnings per share 5,016,191 4,954,381 Earnings per common share $ 0.78 $ 0.72 |
4. Investment Securities
4. Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities | |
Note 4. Investment Securities | Securities available-for-sale (AFS) and held-to-maturity (HTM) as of the balance sheet dates consisted of the following: Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value September 30, 2016 U.S. Government sponsored enterprise (GSE) debt securities $ 13,751,867 $ 96,874 $ 5,247 $ 13,843,494 Agency mortgage-backed securities (Agency MBS) 12,380,416 164,771 18,571 12,526,616 Other investments 2,973,000 69,106 0 3,042,106 $ 29,105,283 $ 330,751 $ 23,818 $ 29,412,216 December 31, 2015 U.S. GSE debt securities $ 12,832,059 $ 22,523 $ 22,139 $ 12,832,443 Agency MBS 10,734,121 0 69,637 10,664,484 Other investments 2,973,000 5,046 4,573 2,973,473 $ 26,539,180 $ 27,569 $ 96,349 $ 26,470,400 September 30, 2015 U.S. GSE debt securities $ 13,846,756 $ 100,714 $ 0 $ 13,947,470 U.S. Government securities 2,988,369 14,600 0 3,002,969 Agency MBS 11,175,344 31,719 8,702 11,198,361 Other investments 2,229,000 8,040 598 2,236,442 $ 30,239,469 $ 155,073 $ 9,300 $ 30,385,242 Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* September 30, 2016 States and political subdivisions $ 56,837,100 $ 754,900 $ 0 $ 57,592,000 December 31, 2015 States and political subdivisions $ 43,354,419 $ 788,581 $ 0 $ 44,143,000 September 30, 2015 States and political subdivisions $ 47,657,894 $ 353,106 $ 0 $ 48,011,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. U.S. GSE debt securities, Agency MBS securities and certificates of deposit (CDs) held for investment with a book value of $29,105,283 and a fair value of $29,412,216 collateralized repurchase agreements at September 30, 2016. These repurchase agreements mature daily. The scheduled maturities of debt securities AFS were as follows: Amortized Fair Cost Value September 30, 2016 Due in one year or less $ 1,000,000 $ 1,001,865 Due from one to five years 14,479,867 14,630,210 Due from five to ten years 1,245,000 1,253,525 Agency MBS 12,380,416 12,526,616 $ 29,105,283 $ 29,412,216 December 31, 2015 Due in one year or less $ 3,077,544 $ 3,086,317 Due from one to five years 12,482,515 12,474,599 Due from five to ten years 245,000 245,000 Agency MBS 10,734,121 10,664,484 $ 26,539,180 $ 26,470,400 September 30, 2015 Due in one year or less $ 5,095,683 $ 5,111,128 Due from one to five years 13,723,442 13,828,303 Due from five to ten years 245,000 247,450 Agency MBS 11,175,344 11,198,361 $ 30,239,469 $ 30,385,242 Because the actual maturities of Agency MBS usually differ from their contractual maturities due to the right of borrowers to prepay the underlying mortgage loans, usually without penalty, those securities are not presented in the table by contractual maturity date. The scheduled maturities of debt securities HTM were as follows: Amortized Fair Cost Value* September 30, 2016 Due in one year or less $ 35,141,204 $ 35,141,000 Due from one to five years 4,029,095 4,218,000 Due from five to ten years 3,430,921 3,620,000 Due after ten years 14,235,880 14,613,000 $ 56,837,100 $ 57,592,000 December 31, 2015 Due in one year or less $ 27,731,133 $ 27,731,000 Due from one to five years 4,015,553 4,213,000 Due from five to ten years 3,149,531 3,347,000 Due after ten years 8,458,202 8,852,000 $ 43,354,419 $ 44,143,000 September 30, 2015 Due in one year or less $ 34,954,587 $ 34,955,000 Due from one to five years 4,436,462 4,524,000 Due from five to ten years 1,856,522 1,945,000 Due after ten years 6,410,323 6,587,000 $ 47,657,894 $ 48,011,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. There were no debt securities HTM in an unrealized loss position as of the balance sheet dates. There were no debt securities AFS in an unrealized loss position greater than 12 months as of the balance sheet dates. Debt securities AFS with unrealized losses as of the balance sheet dates are presented in the table below. Less than 12 months Total Fair Unrealized Fair Unrealized Value Loss Value Loss September 30, 2016 U.S. GSE debt securities $ 1,994,753 $ 5,247 $ 1,994,753 $ 5,247 Agency MBS 2,054,035 18,571 2,054,035 18,571 $ 4,048,788 $ 23,818 $ 4,048,788 $ 23,818 December 31, 2015 U.S. GSE debt securities $ 6,243,373 $ 22,139 $ 6,243,373 $ 22,139 Agency MBS 10,664,484 69,637 10,664,484 69,637 Other investments 1,483,427 4,573 1,483,427 4,573 $ 18,391,284 $ 96,349 $ 18,391,284 $ 96,349 September 30, 2015 Agency MBS $ 4,191,984 $ 8,702 $ 4,191,984 $ 8,702 Other investments 495,402 598 495,402 598 $ 4,687,386 $ 9,300 $ 4,687,386 $ 9,300 Debt securities in the table above consisted of one U.S. GSE debt security and four Agency MBS securities at September 30, 2016, six U.S. GSE debt securities, twelve Agency MBS and six CDs held for investment at December 31, 2015, and five Agency MBS securities and two CDs at September 30, 2015. The unrealized losses for all periods presented were principally attributable to changes in prevailing interest rates for similar types of securities and not deterioration in the creditworthiness of the issuer. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions, or adverse developments relating to the issuer, warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than the carrying value, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer's financial condition. As of September 30, 2016, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be other than temporary. |
5. Loans, Allowance for Loan Lo
5. Loans, Allowance for Loan Losses and Credit Quality | 9 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Note 5. Loans, Allowance for Loan Losses and Credit Quality | The composition of net loans as of the balance sheet dates was as follows: September 30, December 31, September 30, 2016 2015 2015 Commercial & industrial $ 69,791,331 $ 65,191,124 $ 68,970,374 Commercial real estate 190,246,590 178,206,542 171,636,701 Residential real estate - 1st lien 161,277,406 162,760,273 161,763,468 Residential real estate - Junior (Jr) lien 41,739,827 44,720,266 45,237,294 Consumer 7,131,741 7,241,224 7,810,295 Gross Loans 470,186,895 458,119,429 455,418,132 Deduct (add): Allowance for loan losses 5,179,965 5,011,878 5,015,987 Deferred net loan costs (312,565 ) (316,491 ) (308,189 ) Net Loans $ 465,319,495 $ 453,424,042 $ 450,710,334 The following is an age analysis of loans (including non-accrual), by portfolio segment: 90 Days or 90 Days Total Non-Accrual More September 30, 2016 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 236,510 $ 116,720 $ 353,230 $ 69,438,101 $ 69,791,331 $ 205,358 $ 116,720 Commercial real estate 655,874 249,749 905,623 189,340,967 190,246,590 759,332 227,302 Residential real estate - 1st lien 1,837,612 1,005,342 2,842,954 158,434,452 161,277,406 1,289,968 744,379 - Jr lien 203,174 91,420 294,594 41,445,233 41,739,827 343,766 91,420 Consumer 66,776 0 66,776 7,064,965 7,131,741 0 0 Total $ 2,999,946 $ 1,463,231 $ 4,463,177 $ 465,723,718 $ 470,186,895 $ 2,598,424 $ 1,179,821 90 Days or 90 Days Total Non-Accrual More December 31, 2015 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 224,997 $ 168,244 $ 393,241 $ 64,797,883 $ 65,191,124 $ 441,103 $ 13,556 Commercial real estate 888,994 560,439 1,449,433 176,757,109 178,206,542 2,400,757 45,356 Residential real estate - 1st lien 2,875,768 1,408,551 4,284,319 158,475,954 162,760,273 2,009,079 801,241 - Jr lien 521,373 63,031 584,404 44,135,862 44,720,266 386,132 63,031 Consumer 83,343 0 83,343 7,157,881 7,241,224 0 0 Total $ 4,594,475 $ 2,200,265 $ 6,794,740 $ 451,324,689 $ 458,119,429 $ 5,237,071 $ 923,184 90 Days or 90 Days Total Non-Accrual More September 30, 2015 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 98,272 $ 254,837 $ 353,109 $ 68,617,265 $ 68,970,374 $ 631,247 $ 0 Commercial real estate 666,897 515,083 1,181,980 170,454,721 171,636,701 2,377,232 0 Residential real estate - 1st lien 1,873,326 1,062,526 2,935,852 158,827,616 161,763,468 2,240,524 348,353 - Jr lien 248,648 111,849 360,497 44,876,797 45,237,294 351,805 67,811 Consumer 53,090 1,791 54,881 7,755,414 7,810,295 0 1,791 Total $ 2,940,233 $ 1,946,086 $ 4,886,319 $ 450,531,813 $ 455,418,132 $ 5,600,808 $ 417,955 For all loan segments, loans over 30 days past due are considered delinquent. As of September 30, 2016, there were six residential mortgage loans in process of foreclosure totaling $250,413, compared to five residential mortgage loans totaling $400,905 as of December 31, 2015, and four residential mortgages loans totaling $370,413 as of September 30, 2015. Allowance for loan losses The allowance for loan losses is established through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. Unsecured loans, primarily consumer loans, are charged off when they become uncollectible and no later than 120 days past due. Unsecured loans to customers who subsequently file bankruptcy are charged off within 30 days of receipt of the notification of filing or by the end of the month in which the loans become 120 days past due, whichever occurs first. For secured loans, both residential and commercial, the potential loss on impaired loans is carried as a loan loss reserve specific allocation; the loss portion is charged off when collection of the full loan appears unlikely. The unsecured portion of a real estate loan is that portion of the loan exceeding the "fair value" of the collateral less the estimated cost to sell. Value of the collateral is determined in accordance with the Company’s appraisal policy. The unsecured portion of an impaired real estate secured loan is charged off by the end of the month in which the loan becomes 180 days past due. As described below, the allowance consists of general, specific and unallocated components. However, the entire allowance is available to absorb losses in the loan portfolio, regardless of specific, general and unallocated components considered in determining the amount of the allowance. General component The general component of the allowance for loan losses is based on historical loss experience, adjusted for qualitative factors and stratified by the following loan segments: commercial and industrial, commercial real estate, residential real estate first (1st) lien, residential real estate junior (Jr) lien and consumer loans. The Company does not disaggregate its portfolio segments further into classes. Loss ratios are calculated by loan segment for one year, two year, three year, four year and five year look back periods. The highest loss ratio among these look-back periods is then applied against the respective segment. Management uses an average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels of and trends in delinquencies and non-performing loans, levels of and trends in loan risk groups, trends in volumes and terms of loans, effects of any changes in loan related policies, experience, ability and the depth of management, documentation and credit data exception levels, national and local economic trends, external factors such as competition and regulation and lastly, concentrations of credit risk in a variety of areas, including portfolio product mix, the level of loans to individual borrowers and their related interests, loans to industry segments, and the geographic distribution of commercial real estate loans. This evaluation is inherently subjective as it requires estimates that are susceptible to revision as more information becomes available. The qualitative factors are determined based on the various risk characteristics of each loan segment. The Company has policies, procedures and internal controls that management believes are commensurate with the risk profile of each of these segments. Major risk characteristics relevant to each portfolio segment are as follows: Commercial & Industrial – Commercial Real Estate – Residential Real Estate - 1st Lien – Residential Real Estate – Jr Lien – Consumer – Specific component The specific component of the allowance for loan losses relates to loans that are impaired. Impaired loans are loan(s) to a borrower that in the aggregate are greater than $100,000 and that are in non-accrual status or are troubled debt restructurings (TDR) regardless of amount. A specific allowance is established for an impaired loan when its estimated impaired basis is less than the carrying value of the loan. For all loan segments, except consumer loans, a loan is considered impaired when, based on current information and events, in management’s estimation it is probable that the Company 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 probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant or temporary payment delays and payment shortfalls generally are not classified as impaired. Management evaluates 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 and frequency of the delay, the reasons for the delay, the borrower’s 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, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would otherwise not be granted. TDRs may include the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan’s terms, or a combination of the two. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment evaluation, unless such loans are subject to a restructuring agreement. Unallocated component An unallocated component of the allowance for loan losses is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component reflects management’s estimate of the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The tables below summarize changes in the allowance for loan losses and select loan information, by portfolio segment, for the periods indicated. As of or for the three months ended September 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 Charge-offs (1,358 ) 0 (42,000 ) 0 (14,438 ) 0 (57,796 ) Recoveries 2,174 0 3,974 60 4,133 0 10,341 Provision (credit) (54,384 ) 34,435 82,396 (32,861 ) (11,915 ) 132,329 150,000 Ending balance $ 771,674 $ 2,351,401 $ 1,338,642 $ 381,281 $ 58,340 $ 278,627 $ 5,179,965 As of or for the nine months ended September 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (12,194 ) 0 (234,549 ) 0 (38,412 ) 0 (285,155 ) Recoveries 22,650 0 9,660 180 20,752 0 53,242 Provision (credit) 48,316 198,723 195,503 (41,721 ) 311 (1,132 ) 400,000 Ending balance $ 771,674 $ 2,351,401 $ 1,338,642 $ 381,281 $ 58,340 $ 278,627 $ 5,179,965 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 92,900 $ 19,000 $ 115,600 $ 0 $ 0 $ 227,500 Collectively 771,674 2,258,501 1,319,642 265,681 58,340 278,627 4,952,465 Total $ 771,674 $ 2,351,401 $ 1,338,642 $ 381,281 $ 58,340 $ 278,627 $ 5,179,965 Loans evaluated for impairment Individually $ 188,528 $ 703,852 $ 1,064,752 $ 226,590 $ 0 $ 2,183,722 Collectively 69,602,803 189,542,738 160,212,654 41,513,237 7,131,741 468,003,173 Total $ 69,791,331 $ 190,246,590 $ 161,277,406 $ 41,739,827 $ 7,131,741 $ 470,186,895 As of or for the year ended December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 646,719 $ 2,311,936 $ 1,270,766 $ 321,099 $ 118,819 $ 236,535 $ 4,905,874 Charge-offs (200,900 ) (14,783 ) (150,947 ) (66,104 ) (69,632 ) 0 (502,366 ) Recoveries 59,264 0 6,042 240 32,824 0 98,370 Provision (credit) 207,819 (144,475 ) 242,167 167,587 (6,322 ) 43,224 510,000 Ending balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 25,100 $ 114,600 $ 0 $ 0 $ 139,700 Collectively 712,902 2,152,678 1,342,928 308,222 75,689 279,759 4,872,178 Total $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Loans evaluated for impairment Individually $ 286,436 $ 2,551,748 $ 1,419,808 $ 234,004 $ 0 $ 4,491,996 Collectively 64,904,688 175,654,794 161,340,465 44,486,262 7,241,224 453,627,433 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429 As of or for the three months ended September 30, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 881,094 $ 1,984,559 $ 1,358,504 $ 352,125 $ 63,813 $ 455,117 $ 5,095,212 Charge-offs (70,000 ) (14,783 ) (17,473 ) (35,194 ) (25,334 ) 0 (162,784 ) Recoveries 997 0 0 60 7,502 0 8,559 Provision (credit) (91,246 ) 45,039 57,167 106,934 23,350 (66,244 ) 75,000 Ending balance $ 720,845 $ 2,014,815 $ 1,398,198 $ 423,925 $ 69,331 $ 388,873 $ 5,015,987 As of or for the nine months ended September 30, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 646,719 $ 2,311,936 $ 1,270,766 $ 321,099 $ 118,819 $ 236,535 $ 4,905,874 Charge-offs (105,059 ) (14,783 ) (112,047 ) (55,393 ) (53,440 ) 0 (340,722 ) Recoveries 43,909 0 6,042 180 25,704 0 75,835 Provision (credit) 135,276 (282,338 ) 233,437 158,039 (21,752 ) 152,338 375,000 Ending balance $ 720,845 $ 2,014,815 $ 1,398,198 $ 423,925 $ 69,331 $ 388,873 $ 5,015,987 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 71,800 $ 115,000 $ 0 $ 0 $ 186,800 Collectively 720,845 2,014,815 1,326,398 308,925 69,331 388,873 4,829,187 Total $ 720,845 $ 2,014,815 $ 1,398,198 $ 423,925 $ 69,331 $ 388,873 $ 5,015,987 Loans evaluated for impairment Individually $ 446,928 $ 2,526,797 $ 1,701,790 $ 236,301 $ 0 $ 4,911,816 Collectively 68,523,446 169,109,904 160,061,678 45,000,993 7,810,295 450,506,316 Total $ 68,970,374 $ 171,636,701 $ 161,763,468 $ 45,237,294 $ 7,810,295 $ 455,418,132 Impaired loans, by portfolio segment, were as follows: As of September 30, 2016 Unpaid Average Average Recorded Principal Related Recorded Recorded Investment Balance Allowance Investment(1) Investment(2) With an allowance recorded Commercial real estate $ 228,062 $ 235,152 $ 92,900 $ 0 $ 45,612 Residential real estate - 1st lien 436,191 579,182 19,000 435,802 296,316 Residential real estate - Jr lien 226,590 284,314 115,600 262,589 197,154 890,843 1,098,648 227,500 698,391 539,082 With no related allowance recorded Commercial & industrial 188,528 262,297 198,137 174,248 Commercial real estate 475,790 523,245 901,468 966,095 Residential real estate - 1st lien 628,561 729,602 918,378 742,267 Residential real estate - Jr lien 0 0 39,721 15,888 1,292,879 1,515,144 2,057,704 1,898,498 Total $ 2,183,722 $ 2,613,792 $ 227,500 $ 2,756,095 $ 2,437,580 (1) For the three months ended September 30, 2016 (2) For the nine months ended September 30, 2016 As of December 31, 2015 2015 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded Commercial & industrial $ 0 $ 0 $ 0 $ 37,359 Commercial real estate 0 0 0 40,902 Residential real estate - 1st lien 173,788 182,251 25,100 228,273 Residential real estate - Jr lien 234,004 284,227 114,600 155,207 407,792 466,478 139,700 461,741 With no related allowance recorded Commercial & industrial 286,436 366,387 446,817 Commercial real estate 2,551,748 2,776,729 2,151,713 Residential real estate - 1st lien 1,246,020 1,460,402 973,572 Residential real estate - Jr lien 0 0 113,964 4,084,204 4,603,518 3,686,066 Total $ 4,491,996 $ 5,069,996 $ 139,700 $ 4,147,807 As of September 30, 2015 Unpaid Average Average Recorded Principal Related Recorded Recorded Investment Balance Allowance Investment(1) Investment(2) With an allowance recorded Commercial & industrial $ 0 $ 0 $ 0 $ 93,398 $ 37,359 Commercial real estate 0 0 0 0 40,902 Residential real estate - 1st lien 246,594 283,363 71,800 302,937 193,515 Residential real estate - Jr lien 236,301 284,202 115,000 152,865 108,406 482,895 567,565 186,800 549,200 380,182 With no related allowance recorded Commercial & industrial 446,928 512,552 555,057 389,530 Commercial real estate 2,526,797 2,741,550 1,976,769 1,641,363 Residential real estate - 1st lien 1,455,196 1,658,402 780,255 724,368 Residential real estate - Jr lien 0 0 120,465 113,964 4,428,921 4,912,504 3,432,546 2,869,225 Total $ 4,911,816 $ 5,480,069 $ 186,800 $ 3,981,746 $ 3,249,407 (1) For the three months ended September 30, 2015 (2) For the nine months ended September 30, 2015 Interest income recognized on impaired loans was immaterial for all periods presented. For all loan segments, the accrual of interest is discontinued when a loan is specifically determined to be impaired or when the loan is delinquent 90 days and management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is considered by management to be doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is generally not recognized on specific impaired loans unless the likelihood of further loss is considered by management to be remote. Interest payments received on impaired loans are generally applied as a reduction of the loan principal balance. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are considered by management to be reasonably assured. Credit Quality Grouping In developing the allowance for loan losses, management uses credit quality grouping to help evaluate trends in credit quality. The Company groups credit risk into Groups A, B and C. The manner the Company utilizes to assign risk grouping is driven by loan purpose. Commercial purpose loans are individually risk graded while the retail portion of the portfolio is generally grouped by delinquency pool. Group A loans - Acceptable Risk Group B loans – Management Involved Group C loans – Unacceptable Risk Commercial purpose loan ratings are assigned by the commercial account officer; for larger and more complex commercial loans, the credit rating is a collaborative assignment by the lender and the credit analyst. The credit risk rating is based on the borrower's expected performance, i.e., the likelihood that the borrower will be able to service its obligations in accordance with the loan terms. Credit risk ratings are meant to measure risk versus simply record history. Assessment of expected future payment performance requires consideration of numerous factors. While past performance is part of the overall evaluation, expected performance is based on an analysis of the borrower's financial strength, and historical and projected factors such as size and financing alternatives, capacity and cash flow, balance sheet and income statement trends, the quality and timeliness of financial reporting, and the quality of the borrower’s management. Other factors influencing the credit risk rating to a lesser degree include collateral coverage and control, guarantor strength and commitment, documentation, structure and covenants and industry conditions. There are uncertainties inherent in this process. Credit risk ratings are dynamic and require updating whenever relevant information is received. The risk ratings of larger or more complex loans, and Group B and C rated loans, are assessed at the time of their respective annual reviews, during quarterly updates, in action plans or at any other time that relevant information warrants update. Lenders are required to make immediate disclosure to the Chief Credit Officer of any known increase in loan risk, even if considered temporary in nature. The risk ratings within the loan portfolio, by segment, as of the balance sheet dates were as follows: As of September 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 67,062,235 $ 179,855,087 $ 158,989,152 $ 41,124,097 $ 7,131,741 $ 454,162,312 Group B 1,551,890 3,270,984 451,736 146,896 0 5,421,506 Group C 1,177,206 7,120,519 1,836,518 468,834 0 10,603,077 Total $ 69,791,331 $ 190,246,590 $ 161,277,406 $ 41,739,827 $ 7,131,741 $ 470,186,895 As of December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 59,764,081 $ 168,326,527 $ 158,834,849 $ 44,041,594 $ 7,241,224 $ 438,208,275 Group B 4,724,729 4,529,493 599,516 212,508 0 10,066,246 Group C 702,314 5,350,522 3,325,908 466,164 0 9,844,908 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429 As of September 30, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 65,623,508 $ 161,009,553 $ 158,003,285 $ 44,587,285 $ 7,808,505 $ 437,032,136 Group B 2,023,893 4,415,932 178,938 224,090 0 6,842,853 Group C 1,322,973 6,211,216 3,581,245 425,919 1,790 11,543,143 Total $ 68,970,374 $ 171,636,701 $ 161,763,468 $ 45,237,294 $ 7,810,295 $ 455,418,132 Modifications of Loans and TDRs A loan is classified as a TDR if, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. The Company is deemed to have granted such a concession if it has modified a troubled loan in any of the following ways: ● Reduced accrued interest; ● Reduced the original contractual interest rate to a rate that is below the current market rate for the borrower; ● Converted a variable-rate loan to a fixed-rate loan; ● Extended the term of the loan beyond an insignificant delay; ● Deferred or forgiven principal in an amount greater than three months of payments; or ● Performed a refinancing and deferred or forgiven principal on the original loan. An insignificant delay or insignificant shortfall in the amount of payments typically would not require the loan to be accounted for as a TDR. However, pursuant to regulatory guidance, any payment delay longer than three months is generally not considered insignificant. Management’s assessment of whether a concession has been granted also takes into account payments expected to be received from third parties, including third-party guarantors, provided that the third party has the ability to perform on the guarantee. The Company’s TDRs are principally a result of extending loan repayment terms to relieve cash flow difficulties. The Company has only, on a limited basis, reduced interest rates for borrowers below the current market rate for the borrower. The Company has not forgiven principal or reduced accrued interest within the terms of original restructurings, nor has it converted variable rate terms to fixed rate terms. However, the Company evaluates each TDR situation on its own merits and does not foreclose the granting of any particular type of concession. New TDRs, by portfolio segment, during the periods presented were as follows: Three months ended September 30, 2016 Nine months ended September 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Residential real estate - 1st lien 3 $ 177,182 $ 185,107 8 $ 572,418 $ 598,030 - Jr lien 0 0 0 2 62,819 64,977 Total 3 $ 177,182 $ 185,107 10 $ 635,237 $ 663,007 Year ended December 31, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 2 $ 199,134 $ 204,142 Commercial real estate 3 581,431 616,438 Residential real estate - 1st lien 12 1,229,100 1,303,228 - Jr lien 2 117,746 121,672 Total 19 $ 2,127,411 $ 2,245,480 Three months ended September 30, 2015 Nine months ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Commercial & industrial 0 $ 0 $ 0 3 $ 198,999 $ 198,829 Commercial real estate 2 340,960 366,048 2 340,960 366,048 Residential real estate - 1st lien 3 207,979 219,335 11 1,170,625 1,240,437 - Jr lien 0 0 0 2 117,745 121,672 Total 5 $ 548,939 $ 585,383 18 $ 1,828,329 $ 1,926,986 The TDR’s for which there was a payment default during the twelve month periods presented were as follows: Twelve months ended September 30, 2016 Number of Recorded Contracts Investment Commercial 1 $ 71,808 Commercial real estate 1 228,063 Residential real estate - 1st lien 2 94,004 Residential real estate - Jr lien 1 54,557 Total 5 $ 448,432 Year ended December 31, 2015 Number of Recorded Contracts Investment Commercial real estate 1 $ 149,514 Residential real estate - 1st lien 4 286,803 Residential real estate - Jr lien 1 69,828 Total 6 $ 506,145 Twelve months ended September 30, 2015 Number of Recorded Contracts Investment Commercial 2 $ 21,890 Residential real estate - 1st lien 3 256,348 Total 5 $ 278,238 TDRs are treated as other impaired loans and carry individual specific reserves with respect to the calculation of the allowance for loan losses. These loans are categorized as non-performing, may be past due, and are generally adversely risk rated. The TDRs that have defaulted under their restructured terms are generally in collection status and their reserve is typically calculated using the fair value of collateral method. At September 30, 2016, the specific allocation related to TDRs was approximately $5,700 compared to $25,100 at December 31, 2015. There were no specific allocations related to TDRs at September 30, 2015. As of the balance sheet dates, the Company was not contractually committed to lend additional funds to debtors with impaired or non-accrual loans. The Company is contractually committed to lend on one Small Business Administration guaranteed line of credit to a borrower whose lending relationship was previously restructured, but is no longer considered impaired for disclosure purposes. |
6. Transactions with Related Pa
6. Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Note 6. Transactions with Related Parties | Certain Related Party Loans Some of the incumbent directors, nominees and executive officers of the Company, and some of the corporations and firms with which these individuals are associated, are customers of Community National Bank (the Bank), a subsidiary of Community Bancorp., in the ordinary course of business, or have loans outstanding from the Bank (referred to in this discussion as “related party loans”), and it is anticipated that they will continue to be customers of and indebted to the Bank in the future. All such related party loans were made in the ordinary course of business, and were made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable Bank transactions with unaffiliated persons, although directors were generally allowed the lowest interest rate given to others on comparable loans. Except as disclosed in the following paragraph, none of such related party loans represents more than the normal risk of collectability or presents other unfavorable features. As previously reported, the Bank had two loans outstanding to related commercial enterprises in which one of the Company’s Directors is a 35% non-controlling equity owner. The loans, consisting of a commercial line of credit and a commercial real estate loan, went into default during the third quarter of 2016. The Director subsequently purchased the defaulted commercial line of credit from the Bank at par plus unpaid interest. As of September 30, 2016, the real estate-secured term loan had an outstanding principal balance of $2,556,666 plus accrued interest of $7,121. The Bank believes that the value of the collateral exceeds the aggregate amount of the indebtedness and does not expect to incur a loss on the loan, with liquidation of the real estate collateral required within two years under the terms of a forbearance agreement with the borrower. |
7. Goodwill and Other Intangibl
7. Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Note 7. Goodwill and Other Intangible Assets | As a result of the merger with LyndonBank on December 31, 2007, the Company recorded goodwill amounting to $11,574,269. The goodwill is not amortizable and is not deductible for tax purposes. The Company also recorded $4,161,000 of acquired identified intangible assets representing the core deposit intangible which is subject to amortization as a non-interest expense over a ten year period. The accumulated amortization expense was $3,820,139 and $3,547,444 as of September 30, 2016 and 2015, respectively. Amortization expense for the core deposit intangible for the first nine months of 2016 and 2015 was $204,525. As of September 30, 2016, the remaining annual amortization expense related to the core deposit intangible, absent any impairment, is expected to be as follows: 2016 $ 68,170 2017 272,691 Total remaining core deposit intangible $ 340,861 Management evaluates goodwill for impairment annually and the core deposit intangible for impairment if conditions warrant. As of the date of the most recent evaluation (December 31, 2015), management concluded that no impairment existed in either category. |
8. Fair Value
8. Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Note 8. Fair Value | Certain assets and liabilities are recorded at fair value to provide additional insight into the Company’s quality of earnings. The fair values of some of these assets and liabilities are measured on a recurring basis while others are measured on a non-recurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available-for-sale are recorded at fair value on a recurring basis. Other assets, such as mortgage servicing rights, loans held-for-sale, impaired loans, and OREO, are recorded at fair value on a non-recurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded 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. The level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasury, other U.S. Government debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes mortgage servicing rights, impaired loans and OREO. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following methods and assumptions were used by the Company in estimating its fair value measurements and disclosures: Cash and cash equivalents: Securities available-for-sale and held-to-maturity: Restricted equity securities: Loans and loans held-for-sale: The fair value of loans held-for-sale is based upon an actual purchase and sale agreement between the Company and an independent market participant. The sale is executed within a reasonable period following quarter end at the stated fair value. Mortgage servicing rights: OREO: Deposits, federal funds purchased and borrowed funds: Capital lease obligations: Junior subordinated debentures: Accrued interest: Off-balance-sheet credit related instruments: FASB Accounting Standards Codification Topic 825, “Financial Instruments”, requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, if the fair values can be reasonably determined. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: September 30, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 13,843,494 Agency MBS 12,526,616 Other investments 3,042,106 Total $ 29,412,216 December 31, 2015 Level 2 Assets: (market approach) U.S. GSE debt securities $ 12,832,443 Agency MBS 10,664,484 Other investments 2,973,473 Total $ 26,470,400 September 30, 2015 Level 1 Level 2 Assets: (market approach) U.S. GSE debt securities $ 0 $ 13,947,470 U.S. Government securities 3,002,969 0 Agency MBS 0 11,198,361 Other investments 0 2,236,442 Total $ 3,002,969 $ 27,382,273 There were no transfers of assets between Levels during any of the periods presented. There were no Level 1 assets or liabilities measured on a recurring basis as of September 30, 2016 or December 31, 2015, and there were no Level 3 assets or liabilities measured on a recurring basis as of any of the balance sheet dates presented. Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The following table includes assets measured at fair value on a non-recurring basis that have had a fair value adjustment since their initial recognition. Impaired loans measured at fair value only include impaired loans with a related specific allowance for loan losses and are presented net of specific allowances as disclosed in Note 5. Assets measured at fair value on a non-recurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: September 30, 2016 Level 2 Assets: (market approach) Residential mortgage servicing rights $ 1,215,311 Impaired loans, net of related allowance 663,343 OREO 409,000 December 31, 2015 Assets: (market approach) Residential mortgage servicing rights $ 1,293,079 Impaired loans, net of related allowance 268,092 OREO 262,000 September 30, 2015 Assets: (market approach) Residential mortgage servicing rights $ 1,296,249 Impaired loans, net of related allowance 296,095 OREO 1,058,475 There were no Level 1 or Level 3 assets or liabilities measured on a non-recurring basis as of the balance sheet dates presented. The estimated fair values of commitments to extend credit and letters of credit were immaterial as of the dates presented in the tables below. The estimated fair values of the Company's financial instruments were as follows: September 30, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 12,380 $ 12,380 $ 0 $ 0 $ 12,380 Securities held-to-maturity 56,837 0 57,592 0 57,592 Securities available-for-sale 29,412 0 29,412 0 29,412 Restricted equity securities 1,856 0 1,856 0 1,856 Loans and loans held-for-sale Commercial & industrial 68,978 0 189 69,957 70,146 Commercial real estate 187,783 0 611 192,329 192,940 Residential real estate - 1st lien 160,552 0 1,046 163,770 164,816 Residential real estate - Jr lien 41,334 0 111 41,826 41,937 Consumer 7,069 0 0 7,358 7,358 Mortgage servicing rights 1,215 0 1,333 0 1,333 Accrued interest receivable 1,650 0 1,650 0 1,650 Financial liabilities: Deposits Other deposits 470,587 0 470,785 0 470,785 Brokered deposits 33,220 0 33,223 0 33,223 Federal funds purchased and short-term borrowings 5,245 0 5,245 0 5,245 Long-term borrowings 550 0 503 0 503 Repurchase agreements 25,834 0 25,834 0 25,834 Capital lease obligations 494 0 494 0 494 Subordinated debentures 12,887 0 12,852 0 12,852 Accrued interest payable 44 0 44 0 44 December 31, 2015 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 28,852 $ 28,852 $ 0 $ 0 $ 28,852 Securities held-to-maturity 43,354 0 44,143 0 44,143 Securities available-for-sale 26,470 0 26,470 0 26,470 Restricted equity securities 2,442 0 2,442 0 2,442 Loans and loans held-for-sale Commercial & industrial 64,438 0 286 65,399 65,685 Commercial real estate 175,945 0 2,552 178,502 181,054 Residential real estate - 1st lien 162,492 0 1,395 164,959 166,354 Residential real estate - Jr lien 44,270 0 119 44,939 45,058 Consumer 7,161 0 0 7,482 7,482 Mortgage servicing rights 1,293 0 1,497 0 1,497 Accrued interest receivable 1,633 0 1,633 0 1,633 Financial liabilities: Deposits Other deposits 467,851 0 467,514 0 467,514 Brokered deposits 27,635 0 27,640 0 27,640 Federal funds purchased and short-term borrowings 10,000 0 10,000 0 10,000 Repurchase agreements 22,073 0 22,073 0 22,073 Capital lease obligations 558 0 558 0 558 Subordinated debentures 12,887 0 12,851 0 12,851 Accrued interest payable 53 0 53 0 53 September 30, 2015 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 14,739 $ 14,739 $ 0 $ 0 $ 14,739 Securities held-to-maturity 47,658 0 48,011 0 48,011 Securities available-for-sale 30,385 3,003 27,382 0 30,385 Restricted equity securities 3,332 0 3,332 0 3,332 Loans and loans held-for-sale Commercial & industrial 68,190 0 447 69,224 69,671 Commercial real estate 169,476 0 2,527 172,871 175,398 Residential real estate - 1st lien 161,427 0 1,630 164,495 166,125 Residential real estate - Jr lien 44,774 0 121 45,526 45,647 Consumer 7,734 0 0 8,090 8,090 Mortgage servicing rights 1,296 0 1,474 0 1,474 Accrued interest receivable 1,687 0 1,687 0 1,687 Financial liabilities: Deposits Other deposits 458,674 0 458,796 0 458,796 Brokered deposits 20,334 0 20,349 0 20,349 Federal funds purchased and short-term borrowings 20,000 0 20,000 0 20,000 Repurchase agreements 21,977 0 21,977 0 21,977 Capital lease obligations 579 0 579 0 579 Subordinated debentures 12,887 0 12,857 0 12,857 Accrued interest payable 51 0 51 0 51 |
9. Loan Servicing
9. Loan Servicing | 9 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Note 9. Loan Servicing | The following table shows the changes in the carrying amount of the mortgage servicing rights, included in other assets in the consolidated balance sheets, for the periods indicated: Nine Months Ended Year Ended Nine Months Ended September 30, 2016 December 31, 2015 September 30, 2015 Balance at beginning of year $ 1,293,079 $ 1,311,965 $ 1,311,965 Mortgage servicing rights capitalized 152,900 230,818 177,090 Mortgage servicing rights amortized (208,706 ) (257,921 ) (195,363 ) Change in valuation allowance (21,962 ) 8,217 2,557 Balance at end of period $ 1,215,311 $ 1,293,079 $ 1,296,249 |
10. Legal Proceedings
10. Legal Proceedings | 9 Months Ended |
Sep. 30, 2016 | |
Legal Proceedings | |
Note 10. Legal Proceedings | In the normal course of business, the Company and its subsidiary are involved in litigation that is considered incidental to their business. Management does not expect that any such litigation will be material to the Company's consolidated financial condition or results of operations. |
11. Subsequent Event
11. Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Note 11. Subsequent Event | The Company has evaluated events and transactions through the date that the financial statements were issued for potential recognition or disclosure in these financial statements, as required by U.S. GAAP. On September 27, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per common share payable November 1, 2016 to shareholders of record as of October 15, 2016. This dividend, amounting to $804,306, was accrued at September 30, 2016. |
1. Basis of Presentation and 18
1. Basis of Presentation and Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the financial condition and results of operations of the Company contained herein have been made. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2015 contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full annual period ending December 31, 2016, or for any other interim period. Certain amounts in the 2015 unaudited consolidated income statements have been reclassified to conform to the 2016 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. |
Recent Accounting Developments | In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments A modified version of these requirements also applies to debt securities classified as available for sale. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the impact |
3. Earnings per Common Share (T
3. Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share | Three Months Ended September 30, 2016 2015 Net income, as reported $ 1,515,900 $ 1,439,822 Less: dividends to preferred shareholders 21,875 20,313 Net income available to common shareholders $ 1,494,025 $ 1,419,509 Weighted average number of common shares used in calculating earnings per share 5,032,156 4,969,425 Earnings per common share $ 0.30 $ 0.29 Nine Months Ended September 30, 2016 2015 Net income, as reported $ 3,980,593 $ 3,627,366 Less: dividends to preferred shareholders 65,625 60,938 Net income available to common shareholders $ 3,914,968 $ 3,566,428 Weighted average number of common shares used in calculating earnings per share 5,016,191 4,954,381 Earnings per common share $ 0.78 $ 0.72 |
4. Investment Securities (Table
4. Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities | |
Schedule Of Available For Sale Securities | Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value September 30, 2016 U.S. Government sponsored enterprise (GSE) debt securities $ 13,751,867 $ 96,874 $ 5,247 $ 13,843,494 Agency mortgage-backed securities (Agency MBS) 12,380,416 164,771 18,571 12,526,616 Other investments 2,973,000 69,106 0 3,042,106 $ 29,105,283 $ 330,751 $ 23,818 $ 29,412,216 December 31, 2015 U.S. GSE debt securities $ 12,832,059 $ 22,523 $ 22,139 $ 12,832,443 Agency MBS 10,734,121 0 69,637 10,664,484 Other investments 2,973,000 5,046 4,573 2,973,473 $ 26,539,180 $ 27,569 $ 96,349 $ 26,470,400 September 30, 2015 U.S. GSE debt securities $ 13,846,756 $ 100,714 $ 0 $ 13,947,470 U.S. Government securities 2,988,369 14,600 0 3,002,969 Agency MBS 11,175,344 31,719 8,702 11,198,361 Other investments 2,229,000 8,040 598 2,236,442 $ 30,239,469 $ 155,073 $ 9,300 $ 30,385,242 |
Schedule Of Held to Maturity Securities | Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* September 30, 2016 States and political subdivisions $ 56,837,100 $ 754,900 $ 0 $ 57,592,000 December 31, 2015 States and political subdivisions $ 43,354,419 $ 788,581 $ 0 $ 44,143,000 September 30, 2015 States and political subdivisions $ 47,657,894 $ 353,106 $ 0 $ 48,011,000 |
Schedule of Maturities of Debt Securities Available for Sale | Amortized Fair Cost Value September 30, 2016 Due in one year or less $ 1,000,000 $ 1,001,865 Due from one to five years 14,479,867 14,630,210 Due from five to ten years 1,245,000 1,253,525 Agency MBS 12,380,416 12,526,616 $ 29,105,283 $ 29,412,216 December 31, 2015 Due in one year or less $ 3,077,544 $ 3,086,317 Due from one to five years 12,482,515 12,474,599 Due from five to ten years 245,000 245,000 Agency MBS 10,734,121 10,664,484 $ 26,539,180 $ 26,470,400 September 30, 2015 Due in one year or less $ 5,095,683 $ 5,111,128 Due from one to five years 13,723,442 13,828,303 Due from five to ten years 245,000 247,450 Agency MBS 11,175,344 11,198,361 $ 30,239,469 $ 30,385,242 |
Schedule Of Maturities of Debt Securities Held to Maturity | Amortized Fair Cost Value* September 30, 2016 Due in one year or less $ 35,141,204 $ 35,141,000 Due from one to five years 4,029,095 4,218,000 Due from five to ten years 3,430,921 3,620,000 Due after ten years 14,235,880 14,613,000 $ 56,837,100 $ 57,592,000 December 31, 2015 Due in one year or less $ 27,731,133 $ 27,731,000 Due from one to five years 4,015,553 4,213,000 Due from five to ten years 3,149,531 3,347,000 Due after ten years 8,458,202 8,852,000 $ 43,354,419 $ 44,143,000 September 30, 2015 Due in one year or less $ 34,954,587 $ 34,955,000 Due from one to five years 4,436,462 4,524,000 Due from five to ten years 1,856,522 1,945,000 Due after ten years 6,410,323 6,587,000 $ 47,657,894 $ 48,011,000 |
Schedule Of Unrealized Loss | Less than 12 months Total Fair Unrealized Fair Unrealized Value Loss Value Loss September 30, 2016 U.S. GSE debt securities $ 1,994,753 $ 5,247 $ 1,994,753 $ 5,247 Agency MBS 2,054,035 18,571 2,054,035 18,571 $ 4,048,788 $ 23,818 $ 4,048,788 $ 23,818 December 31, 2015 U.S. GSE debt securities $ 6,243,373 $ 22,139 $ 6,243,373 $ 22,139 Agency MBS 10,664,484 69,637 10,664,484 69,637 Other investments 1,483,427 4,573 1,483,427 4,573 $ 18,391,284 $ 96,349 $ 18,391,284 $ 96,349 September 30, 2015 Agency MBS $ 4,191,984 $ 8,702 $ 4,191,984 $ 8,702 Other investments 495,402 598 495,402 598 $ 4,687,386 $ 9,300 $ 4,687,386 $ 9,300 |
5. Loans, Allowance for Loan 21
5. Loans, Allowance for Loan Losses and Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Composition of net loans | September 30, December 31, September 30, 2016 2015 2015 Commercial & industrial $ 69,791,331 $ 65,191,124 $ 68,970,374 Commercial real estate 190,246,590 178,206,542 171,636,701 Residential real estate - 1st lien 161,277,406 162,760,273 161,763,468 Residential real estate - Junior (Jr) lien 41,739,827 44,720,266 45,237,294 Consumer 7,131,741 7,241,224 7,810,295 Gross Loans 470,186,895 458,119,429 455,418,132 Deduct (add): Allowance for loan losses 5,179,965 5,011,878 5,015,987 Deferred net loan costs (312,565 ) (316,491 ) (308,189 ) Net Loans $ 465,319,495 $ 453,424,042 $ 450,710,334 |
Past due loans by segment | 90 Days or 90 Days Total Non-Accrual More September 30, 2016 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 236,510 $ 116,720 $ 353,230 $ 69,438,101 $ 69,791,331 $ 205,358 $ 116,720 Commercial real estate 655,874 249,749 905,623 189,340,967 190,246,590 759,332 227,302 Residential real estate - 1st lien 1,837,612 1,005,342 2,842,954 158,434,452 161,277,406 1,289,968 744,379 - Jr lien 203,174 91,420 294,594 41,445,233 41,739,827 343,766 91,420 Consumer 66,776 0 66,776 7,064,965 7,131,741 0 0 Total $ 2,999,946 $ 1,463,231 $ 4,463,177 $ 465,723,718 $ 470,186,895 $ 2,598,424 $ 1,179,821 90 Days or 90 Days Total Non-Accrual More December 31, 2015 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 224,997 $ 168,244 $ 393,241 $ 64,797,883 $ 65,191,124 $ 441,103 $ 13,556 Commercial real estate 888,994 560,439 1,449,433 176,757,109 178,206,542 2,400,757 45,356 Residential real estate - 1st lien 2,875,768 1,408,551 4,284,319 158,475,954 162,760,273 2,009,079 801,241 - Jr lien 521,373 63,031 584,404 44,135,862 44,720,266 386,132 63,031 Consumer 83,343 0 83,343 7,157,881 7,241,224 0 0 Total $ 4,594,475 $ 2,200,265 $ 6,794,740 $ 451,324,689 $ 458,119,429 $ 5,237,071 $ 923,184 90 Days or 90 Days Total Non-Accrual More September 30, 2015 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 98,272 $ 254,837 $ 353,109 $ 68,617,265 $ 68,970,374 $ 631,247 $ 0 Commercial real estate 666,897 515,083 1,181,980 170,454,721 171,636,701 2,377,232 0 Residential real estate - 1st lien 1,873,326 1,062,526 2,935,852 158,827,616 161,763,468 2,240,524 348,353 - Jr lien 248,648 111,849 360,497 44,876,797 45,237,294 351,805 67,811 Consumer 53,090 1,791 54,881 7,755,414 7,810,295 0 1,791 Total $ 2,940,233 $ 1,946,086 $ 4,886,319 $ 450,531,813 $ 455,418,132 $ 5,600,808 $ 417,955 |
Changes in the allowance for loan losses | As of or for the three months ended September 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 Charge-offs (1,358 ) 0 (42,000 ) 0 (14,438 ) 0 (57,796 ) Recoveries 2,174 0 3,974 60 4,133 0 10,341 Provision (credit) (54,384 ) 34,435 82,396 (32,861 ) (11,915 ) 132,329 150,000 Ending balance $ 771,674 $ 2,351,401 $ 1,338,642 $ 381,281 $ 58,340 $ 278,627 $ 5,179,965 As of or for the nine months ended September 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (12,194 ) 0 (234,549 ) 0 (38,412 ) 0 (285,155 ) Recoveries 22,650 0 9,660 180 20,752 0 53,242 Provision (credit) 48,316 198,723 195,503 (41,721 ) 311 (1,132 ) 400,000 Ending balance $ 771,674 $ 2,351,401 $ 1,338,642 $ 381,281 $ 58,340 $ 278,627 $ 5,179,965 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 92,900 $ 19,000 $ 115,600 $ 0 $ 0 $ 227,500 Collectively 771,674 2,258,501 1,319,642 265,681 58,340 278,627 4,952,465 Total $ 771,674 $ 2,351,401 $ 1,338,642 $ 381,281 $ 58,340 $ 278,627 $ 5,179,965 Loans evaluated for impairment Individually $ 188,528 $ 703,852 $ 1,064,752 $ 226,590 $ 0 $ 2,183,722 Collectively 69,602,803 189,542,738 160,212,654 41,513,237 7,131,741 468,003,173 Total $ 69,791,331 $ 190,246,590 $ 161,277,406 $ 41,739,827 $ 7,131,741 $ 470,186,895 As of or for the year ended December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 646,719 $ 2,311,936 $ 1,270,766 $ 321,099 $ 118,819 $ 236,535 $ 4,905,874 Charge-offs (200,900 ) (14,783 ) (150,947 ) (66,104 ) (69,632 ) 0 (502,366 ) Recoveries 59,264 0 6,042 240 32,824 0 98,370 Provision (credit) 207,819 (144,475 ) 242,167 167,587 (6,322 ) 43,224 510,000 Ending balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 25,100 $ 114,600 $ 0 $ 0 $ 139,700 Collectively 712,902 2,152,678 1,342,928 308,222 75,689 279,759 4,872,178 Total $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Loans evaluated for impairment Individually $ 286,436 $ 2,551,748 $ 1,419,808 $ 234,004 $ 0 $ 4,491,996 Collectively 64,904,688 175,654,794 161,340,465 44,486,262 7,241,224 453,627,433 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429 As of or for the three months ended September 30, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 881,094 $ 1,984,559 $ 1,358,504 $ 352,125 $ 63,813 $ 455,117 $ 5,095,212 Charge-offs (70,000 ) (14,783 ) (17,473 ) (35,194 ) (25,334 ) 0 (162,784 ) Recoveries 997 0 0 60 7,502 0 8,559 Provision (credit) (91,246 ) 45,039 57,167 106,934 23,350 (66,244 ) 75,000 Ending balance $ 720,845 $ 2,014,815 $ 1,398,198 $ 423,925 $ 69,331 $ 388,873 $ 5,015,987 As of or for the nine months ended September 30, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 646,719 $ 2,311,936 $ 1,270,766 $ 321,099 $ 118,819 $ 236,535 $ 4,905,874 Charge-offs (105,059 ) (14,783 ) (112,047 ) (55,393 ) (53,440 ) 0 (340,722 ) Recoveries 43,909 0 6,042 180 25,704 0 75,835 Provision (credit) 135,276 (282,338 ) 233,437 158,039 (21,752 ) 152,338 375,000 Ending balance $ 720,845 $ 2,014,815 $ 1,398,198 $ 423,925 $ 69,331 $ 388,873 $ 5,015,987 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 71,800 $ 115,000 $ 0 $ 0 $ 186,800 Collectively 720,845 2,014,815 1,326,398 308,925 69,331 388,873 4,829,187 Total $ 720,845 $ 2,014,815 $ 1,398,198 $ 423,925 $ 69,331 $ 388,873 $ 5,015,987 Loans evaluated for impairment Individually $ 446,928 $ 2,526,797 $ 1,701,790 $ 236,301 $ 0 $ 4,911,816 Collectively 68,523,446 169,109,904 160,061,678 45,000,993 7,810,295 450,506,316 Total $ 68,970,374 $ 171,636,701 $ 161,763,468 $ 45,237,294 $ 7,810,295 $ 455,418,132 |
Impaired loans by segment | As of September 30, 2016 Unpaid Average Average Recorded Principal Related Recorded Recorded Investment Balance Allowance Investment(1) Investment(2) With an allowance recorded Commercial real estate $ 228,062 $ 235,152 $ 92,900 $ 0 $ 45,612 Residential real estate - 1st lien 436,191 579,182 19,000 435,802 296,316 Residential real estate - Jr lien 226,590 284,314 115,600 262,589 197,154 890,843 1,098,648 227,500 698,391 539,082 With no related allowance recorded Commercial & industrial 188,528 262,297 198,137 174,248 Commercial real estate 475,790 523,245 901,468 966,095 Residential real estate - 1st lien 628,561 729,602 918,378 742,267 Residential real estate - Jr lien 0 0 39,721 15,888 1,292,879 1,515,144 2,057,704 1,898,498 Total $ 2,183,722 $ 2,613,792 $ 227,500 $ 2,756,095 $ 2,437,580 (1) For the three months ended September 30, 2016 (2) For the nine months ended September 30, 2016 As of December 31, 2015 2015 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded Commercial & industrial $ 0 $ 0 $ 0 $ 37,359 Commercial real estate 0 0 0 40,902 Residential real estate - 1st lien 173,788 182,251 25,100 228,273 Residential real estate - Jr lien 234,004 284,227 114,600 155,207 407,792 466,478 139,700 461,741 With no related allowance recorded Commercial & industrial 286,436 366,387 446,817 Commercial real estate 2,551,748 2,776,729 2,151,713 Residential real estate - 1st lien 1,246,020 1,460,402 973,572 Residential real estate - Jr lien 0 0 113,964 4,084,204 4,603,518 3,686,066 Total $ 4,491,996 $ 5,069,996 $ 139,700 $ 4,147,807 As of September 30, 2015 Unpaid Average Average Recorded Principal Related Recorded Recorded Investment Balance Allowance Investment(1) Investment(2) With an allowance recorded Commercial & industrial $ 0 $ 0 $ 0 $ 93,398 $ 37,359 Commercial real estate 0 0 0 0 40,902 Residential real estate - 1st lien 246,594 283,363 71,800 302,937 193,515 Residential real estate - Jr lien 236,301 284,202 115,000 152,865 108,406 482,895 567,565 186,800 549,200 380,182 With no related allowance recorded Commercial & industrial 446,928 512,552 555,057 389,530 Commercial real estate 2,526,797 2,741,550 1,976,769 1,641,363 Residential real estate - 1st lien 1,455,196 1,658,402 780,255 724,368 Residential real estate - Jr lien 0 0 120,465 113,964 4,428,921 4,912,504 3,432,546 2,869,225 Total $ 4,911,816 $ 5,480,069 $ 186,800 $ 3,981,746 $ 3,249,407 (1) For the three months ended September 30, 2015 (2) For the nine months ended September 30, 2015 |
Risk ratings | As of September 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 67,062,235 $ 179,855,087 $ 158,989,152 $ 41,124,097 $ 7,131,741 $ 454,162,312 Group B 1,551,890 3,270,984 451,736 146,896 0 5,421,506 Group C 1,177,206 7,120,519 1,836,518 468,834 0 10,603,077 Total $ 69,791,331 $ 190,246,590 $ 161,277,406 $ 41,739,827 $ 7,131,741 $ 470,186,895 As of December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 59,764,081 $ 168,326,527 $ 158,834,849 $ 44,041,594 $ 7,241,224 $ 438,208,275 Group B 4,724,729 4,529,493 599,516 212,508 0 10,066,246 Group C 702,314 5,350,522 3,325,908 466,164 0 9,844,908 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429 As of September 30, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 65,623,508 $ 161,009,553 $ 158,003,285 $ 44,587,285 $ 7,808,505 $ 437,032,136 Group B 2,023,893 4,415,932 178,938 224,090 0 6,842,853 Group C 1,322,973 6,211,216 3,581,245 425,919 1,790 11,543,143 Total $ 68,970,374 $ 171,636,701 $ 161,763,468 $ 45,237,294 $ 7,810,295 $ 455,418,132 |
Loans modified as TDRs | Three months ended September 30, 2016 Nine months ended September 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Residential real estate - 1st lien 3 $ 177,182 $ 185,107 8 $ 572,418 $ 598,030 - Jr lien 0 0 0 2 62,819 64,977 Total 3 $ 177,182 $ 185,107 10 $ 635,237 $ 663,007 Year ended December 31, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 2 $ 199,134 $ 204,142 Commercial real estate 3 581,431 616,438 Residential real estate - 1st lien 12 1,229,100 1,303,228 - Jr lien 2 117,746 121,672 Total 19 $ 2,127,411 $ 2,245,480 Three months ended September 30, 2015 Nine months ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Commercial & industrial 0 $ 0 $ 0 3 $ 198,999 $ 198,829 Commercial real estate 2 340,960 366,048 2 340,960 366,048 Residential real estate - 1st lien 3 207,979 219,335 11 1,170,625 1,240,437 - Jr lien 0 0 0 2 117,745 121,672 Total 5 $ 548,939 $ 585,383 18 $ 1,828,329 $ 1,926,986 |
TDRs payment default | Twelve months ended September 30, 2016 Number of Recorded Contracts Investment Commercial 1 $ 71,808 Commercial real estate 1 228,063 Residential real estate - 1st lien 2 94,004 Residential real estate - Jr lien 1 54,557 Total 5 $ 448,432 Year ended December 31, 2015 Number of Recorded Contracts Investment Commercial real estate 1 $ 149,514 Residential real estate - 1st lien 4 286,803 Residential real estate - Jr lien 1 69,828 Total 6 $ 506,145 Twelve months ended September 30, 2015 Number of Recorded Contracts Investment Commercial 2 $ 21,890 Residential real estate - 1st lien 3 256,348 Total 5 $ 278,238 |
7. Goodwill and Other Intangi22
7. Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Future Amortization Expense | 2016 $ 68,170 2017 272,691 Total remaining core deposit intangible $ 340,861 |
8. Fair Value (Tables)
8. Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value Assets and Liabilities On Recurring Basis | September 30, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 13,843,494 Agency MBS 12,526,616 Other investments 3,042,106 Total $ 29,412,216 December 31, 2015 Level 2 Assets: (market approach) U.S. GSE debt securities $ 12,832,443 Agency MBS 10,664,484 Other investments 2,973,473 Total $ 26,470,400 September 30, 2015 Level 1 Level 2 Assets: (market approach) U.S. GSE debt securities $ 0 $ 13,947,470 U.S. Government securities 3,002,969 0 Agency MBS 0 11,198,361 Other investments 0 2,236,442 Total $ 3,002,969 $ 27,382,273 |
Schedule of Fair Value Assets and Liabilities Non-recurring Basis | September 30, 2016 Level 2 Assets: (market approach) Residential mortgage servicing rights $ 1,215,311 Impaired loans, net of related allowance 663,343 OREO 409,000 December 31, 2015 Assets: (market approach) Residential mortgage servicing rights $ 1,293,079 Impaired loans, net of related allowance 268,092 OREO 262,000 September 30, 2015 Assets: (market approach) Residential mortgage servicing rights $ 1,296,249 Impaired loans, net of related allowance 296,095 OREO 1,058,475 |
Schedule Of Estimated Fair Values Of Financial Instruments | September 30, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 12,380 $ 12,380 $ 0 $ 0 $ 12,380 Securities held-to-maturity 56,837 0 57,592 0 57,592 Securities available-for-sale 29,412 0 29,412 0 29,412 Restricted equity securities 1,856 0 1,856 0 1,856 Loans and loans held-for-sale Commercial & industrial 68,978 0 189 69,957 70,146 Commercial real estate 187,783 0 611 192,329 192,940 Residential real estate - 1st lien 160,552 0 1,046 163,770 164,816 Residential real estate - Jr lien 41,334 0 111 41,826 41,937 Consumer 7,069 0 0 7,358 7,358 Mortgage servicing rights 1,215 0 1,333 0 1,333 Accrued interest receivable 1,650 0 1,650 0 1,650 Financial liabilities: Deposits Other deposits 470,587 0 470,785 0 470,785 Brokered deposits 33,220 0 33,223 0 33,223 Federal funds purchased and short-term borrowings 5,245 0 5,245 0 5,245 Long-term borrowings 550 0 503 0 503 Repurchase agreements 25,834 0 25,834 0 25,834 Capital lease obligations 494 0 494 0 494 Subordinated debentures 12,887 0 12,852 0 12,852 Accrued interest payable 44 0 44 0 44 December 31, 2015 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 28,852 $ 28,852 $ 0 $ 0 $ 28,852 Securities held-to-maturity 43,354 0 44,143 0 44,143 Securities available-for-sale 26,470 0 26,470 0 26,470 Restricted equity securities 2,442 0 2,442 0 2,442 Loans and loans held-for-sale Commercial & industrial 64,438 0 286 65,399 65,685 Commercial real estate 175,945 0 2,552 178,502 181,054 Residential real estate - 1st lien 162,492 0 1,395 164,959 166,354 Residential real estate - Jr lien 44,270 0 119 44,939 45,058 Consumer 7,161 0 0 7,482 7,482 Mortgage servicing rights 1,293 0 1,497 0 1,497 Accrued interest receivable 1,633 0 1,633 0 1,633 Financial liabilities: Deposits Other deposits 467,851 0 467,514 0 467,514 Brokered deposits 27,635 0 27,640 0 27,640 Federal funds purchased and short-term borrowings 10,000 0 10,000 0 10,000 Repurchase agreements 22,073 0 22,073 0 22,073 Capital lease obligations 558 0 558 0 558 Subordinated debentures 12,887 0 12,851 0 12,851 Accrued interest payable 53 0 53 0 53 September 30, 2015 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 14,739 $ 14,739 $ 0 $ 0 $ 14,739 Securities held-to-maturity 47,658 0 48,011 0 48,011 Securities available-for-sale 30,385 3,003 27,382 0 30,385 Restricted equity securities 3,332 0 3,332 0 3,332 Loans and loans held-for-sale Commercial & industrial 68,190 0 447 69,224 69,671 Commercial real estate 169,476 0 2,527 172,871 175,398 Residential real estate - 1st lien 161,427 0 1,630 164,495 166,125 Residential real estate - Jr lien 44,774 0 121 45,526 45,647 Consumer 7,734 0 0 8,090 8,090 Mortgage servicing rights 1,296 0 1,474 0 1,474 Accrued interest receivable 1,687 0 1,687 0 1,687 Financial liabilities: Deposits Other deposits 458,674 0 458,796 0 458,796 Brokered deposits 20,334 0 20,349 0 20,349 Federal funds purchased and short-term borrowings 20,000 0 20,000 0 20,000 Repurchase agreements 21,977 0 21,977 0 21,977 Capital lease obligations 579 0 579 0 579 Subordinated debentures 12,887 0 12,857 0 12,857 Accrued interest payable 51 0 51 0 51 |
9. Loan Servicing (Tables)
9. Loan Servicing (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule Of Mortgage Servicing Rights | Nine Months Ended Year Ended Nine Months Ended September 30, 2016 December 31, 2015 September 30, 2015 Balance at beginning of year $ 1,293,079 $ 1,311,965 $ 1,311,965 Mortgage servicing rights capitalized 152,900 230,818 177,090 Mortgage servicing rights amortized (208,706 ) (257,921 ) (195,363 ) Change in valuation allowance (21,962 ) 8,217 2,557 Balance at end of period $ 1,215,311 $ 1,293,079 $ 1,296,249 |
3. Earnings per Common Share (D
3. Earnings per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income, as reported | $ 1,515,900 | $ 1,439,822 | $ 3,980,593 | $ 3,627,366 |
Less: dividends to preferred shareholders | 21,875 | 20,313 | 65,625 | 60,938 |
Net income available to common shareholders | $ 1,494,025 | $ 1,419,509 | $ 3,914,968 | $ 3,566,428 |
Weighted average number of common shares used in calculating earnings per share | 5,032,156 | 4,969,425 | 5,016,191 | 4,954,381 |
Earnings per common share | $ 0.3 | $ 0.29 | $ 0.78 | $ 0.72 |
4. Investment Securities (Detai
4. Investment Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | $ 29,105,283 | $ 30,239,469 | $ 26,539,180 |
Gross Unrealized Gains - Available for sale Securities | 330,751 | 155,073 | 27,569 |
Gross Unrealized Losses - Available for sale Securities | 23,818 | 9,300 | 96,349 |
Fair Value - Available for sale Securities | 29,412,216 | 30,385,242 | 26,470,400 |
U.S. GSE debt securities | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 13,751,867 | 13,846,756 | 12,832,059 |
Gross Unrealized Gains - Available for sale Securities | 96,874 | 100,714 | 22,523 |
Gross Unrealized Losses - Available for sale Securities | 5,247 | 0 | 22,139 |
Fair Value - Available for sale Securities | 13,843,494 | 13,947,470 | 12,832,443 |
Agency mortgage-backed securities (Agency MBS) | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 12,380,416 | 11,175,344 | 10,734,121 |
Gross Unrealized Gains - Available for sale Securities | 164,771 | 31,719 | 0 |
Gross Unrealized Losses - Available for sale Securities | 18,571 | 8,702 | 69,637 |
Fair Value - Available for sale Securities | 12,526,616 | 11,198,361 | 10,664,484 |
Other investments | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 2,973,000 | 2,229,000 | 2,973,000 |
Gross Unrealized Gains - Available for sale Securities | 69,106 | 8,040 | 5,046 |
Gross Unrealized Losses - Available for sale Securities | 0 | 598 | 4,573 |
Fair Value - Available for sale Securities | $ 3,042,106 | 2,236,442 | $ 2,973,473 |
U.S. Government securities | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 2,988,369 | ||
Gross Unrealized Gains - Available for sale Securities | 14,600 | ||
Gross Unrealized Losses - Available for sale Securities | 0 | ||
Fair Value - Available for sale Securities | $ 3,002,969 |
4. Investment Securities (Det27
4. Investment Securities (Details 1) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Held-to-Maturity Securities | |||
Fair Value - Held-to-Maturity | $ 57,592,000 | $ 48,011,000 | $ 44,143,000 |
States and political subdivisions [Member] | |||
Held-to-Maturity Securities | |||
Amortized Cost - Held-to-Maturity | 56,837,100 | 47,657,894 | 43,354,419 |
Gross Unrealized Gains - Held-to-Maturity | 754,900 | 353,106 | 788,581 |
Gross Unrealized Losses - Held-to-Maturity | 0 | 0 | 0 |
Fair Value - Held-to-Maturity | $ 57,592,000 | $ 48,011,000 | $ 44,143,000 |
4. Investment Securities (Det28
4. Investment Securities (Details 2) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Available for sale Securities | |||
Amortized Cost | |||
Due in one year or less, Amortized Cost | $ 1,000,000 | $ 3,077,544 | $ 5,095,683 |
Due from one to five years, Amortized Cost | 14,479,867 | 12,482,515 | 13,723,442 |
Due from five to ten years | 1,245,000 | 245,000 | 245,000 |
Agency MBS | 12,380,416 | 10,734,121 | 11,175,344 |
Amortization Cost of Debt | 29,105,283 | 26,539,180 | 30,239,469 |
Fair Value | |||
Due in one year or less, fair value | 1,001,865 | 3,086,317 | 5,111,128 |
Due from one to five years, fair value | 14,630,210 | 12,474,599 | 13,828,303 |
Due from five to ten years, fair value | 1,253,525 | 245,000 | 247,450 |
Agency MBS* | 12,526,616 | 10,664,484 | 11,198,361 |
Due after ten years, fair value | 29,412,216 | 26,470,400 | 30,385,242 |
Held to maturity Securities | |||
Amortized Cost | |||
Due in one year or less, Amortized Cost | 35,141,204 | 27,731,133 | 34,954,587 |
Due from one to five years, Amortized Cost | 4,029,095 | 4,015,553 | 4,436,462 |
Due from five to ten years, Amortized Cost | 3,430,921 | 3,149,531 | 1,856,522 |
Due after ten years, Amortized Cost | 14,235,880 | 8,458,202 | 6,410,323 |
Amortization Cost of Debt | 56,837,100 | 43,354,419 | 47,657,894 |
Fair Value | |||
Due in one year or less, fair value | 35,141,000 | 27,731,000 | 34,955,000 |
Due from one to five years, fair value | 4,218,000 | 4,213,000 | 4,524,000 |
Due from five to ten years, fair value | 3,620,000 | 3,347,000 | 1,945,000 |
Due after ten years, fair value | 14,613,000 | 8,852,000 | 6,587,000 |
Fair value of debt | $ 57,592,000 | $ 44,143,000 | $ 48,011,000 |
4. Investment Securities (Det29
4. Investment Securities (Details 3) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value Less than 12 months | $ 4,048,788 | $ 4,687,386 | $ 18,391,284 |
Unrealized Loss Less than 12 months | 23,818 | 9,300 | 96,349 |
Fair Value 12 months or more | 0 | 0 | 0 |
Unrealized Loss 12 months or more | 0 | 0 | 0 |
Fair Value | 4,048,788 | 4,687,386 | 18,391,284 |
Unrealized Loss | 23,818 | 9,300 | 96,349 |
U.S. GSE debt securities | |||
Fair Value Less than 12 months | 1,994,753 | 6,243,373 | |
Unrealized Loss Less than 12 months | 5,247 | 22,139 | |
Fair Value 12 months or more | 0 | 0 | |
Unrealized Loss 12 months or more | 0 | 0 | |
Fair Value | 1,994,753 | 6,243,373 | |
Unrealized Loss | 5,247 | 0 | 22,139 |
Agency mortgage-backed securities (Agency MBS) | |||
Fair Value Less than 12 months | 2,054,035 | 4,191,984 | 10,664,484 |
Unrealized Loss Less than 12 months | 18,571 | 8,702 | 69,637 |
Fair Value 12 months or more | 0 | 0 | 0 |
Unrealized Loss 12 months or more | 0 | 0 | 0 |
Fair Value | 2,054,035 | 4,191,984 | 10,664,484 |
Unrealized Loss | 18,571 | 8,702 | 69,637 |
Other investments | |||
Fair Value Less than 12 months | 495,402 | 1,483,427 | |
Unrealized Loss Less than 12 months | 598 | 4,573 | |
Fair Value 12 months or more | 0 | 0 | |
Unrealized Loss 12 months or more | 0 | 0 | |
Fair Value | 495,402 | 1,483,427 | |
Unrealized Loss | $ 0 | $ 598 | $ 4,573 |
4. Investment Securities (Det30
4. Investment Securities (Details Narrative) | Sep. 30, 2016USD ($)integer | Dec. 31, 2015integer | Sep. 30, 2015integer |
Investments pledged with a book value | $ | $ 29,105,283 | ||
Investments pledged at Fair Value | $ | $ 29,412,216 | ||
CD Member | |||
Number of securities | 0 | 6 | 2 |
Agency mortgage-backed securities (Agency MBS) | |||
Number of securities | 4 | 12 | 5 |
U.S. GSE debt securities | |||
Number of securities | 1 | 6 |
5. Loans, Allowance for Loan 31
5. Loans, Allowance for Loan Losses and Credit Quality (Details) - USD ($) | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable Disclosure [Abstract] | ||||||
Commercial & industrial | $ 69,791,331 | $ 65,191,124 | $ 68,970,374 | |||
Commercial real estate | 190,246,590 | 178,206,542 | 171,636,701 | |||
Residential real estate - 1st lien | 161,277,406 | 162,760,273 | 161,763,468 | |||
Residential real estate -Junior (Jr) lien | 41,739,827 | 44,720,266 | 45,237,294 | |||
Consumer | 7,131,741 | 7,241,224 | 7,810,295 | |||
Gross Loans | 470,186,895 | 458,119,429 | 455,418,132 | |||
Deduct (add): | ||||||
Allowance for loan losses | 5,179,965 | $ 5,077,420 | 5,011,878 | 5,015,987 | $ 5,095,212 | $ 4,905,874 |
Deferred net loan costs | (312,565) | (316,491) | (308,189) | |||
Net loans | $ 465,319,495 | $ 453,424,042 | $ 450,710,334 |
5. Loans, Allowance for Loan 32
5. Loans, Allowance for Loan Losses and Credit Quality (Details 1) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
30-89 Days | $ 2,999,946 | $ 4,594,475 | $ 2,940,233 |
90 Days or more | 1,463,231 | 2,200,265 | 1,946,086 |
Total Past Due | 4,463,177 | 6,794,740 | 4,886,319 |
Current | 465,723,718 | 451,324,689 | 450,531,813 |
Total Loans | 470,186,895 | 458,119,429 | 455,418,132 |
Non-Accrual Loans | 2,598,424 | 5,237,071 | 5,600,808 |
90 Days or More and Accruing | 1,179,821 | 923,184 | 417,955 |
Commercial and industrial | |||
30-89 Days | 236,510 | 224,997 | 98,272 |
90 Days or more | 116,720 | 168,244 | 254,837 |
Total Past Due | 353,230 | 393,241 | 353,109 |
Current | 69,438,101 | 64,797,883 | 68,617,265 |
Total Loans | 69,791,331 | 65,191,124 | 68,970,374 |
Non-Accrual Loans | 205,358 | 441,103 | 631,247 |
90 Days or More and Accruing | 116,720 | 13,556 | 0 |
Commercial Real Estate | |||
30-89 Days | 655,874 | 888,994 | 666,897 |
90 Days or more | 249,749 | 560,439 | 515,083 |
Total Past Due | 905,623 | 1,449,433 | 1,181,980 |
Current | 189,340,967 | 176,757,109 | 170,454,721 |
Total Loans | 190,246,590 | 178,206,542 | 171,636,701 |
Non-Accrual Loans | 759,332 | 2,400,757 | 2,377,232 |
90 Days or More and Accruing | 227,302 | 45,356 | 0 |
Residential real estate - 1st lien | |||
30-89 Days | 1,837,612 | 2,875,768 | 1,873,326 |
90 Days or more | 1,005,342 | 1,408,551 | 1,062,526 |
Total Past Due | 2,842,954 | 4,284,319 | 2,935,852 |
Current | 158,434,452 | 158,475,954 | 158,827,616 |
Total Loans | 161,277,406 | 162,760,273 | 161,763,468 |
Non-Accrual Loans | 1,298,968 | 2,009,079 | 2,240,524 |
90 Days or More and Accruing | 744,379 | 801,241 | 348,353 |
Residential real estate - Jr lien | |||
30-89 Days | 203,174 | 521,373 | 248,648 |
90 Days or more | 91,420 | 63,031 | 111,849 |
Total Past Due | 294,594 | 584,404 | 360,497 |
Current | 41,445,233 | 44,135,862 | 44,876,797 |
Total Loans | 41,739,827 | 44,720,266 | 45,237,294 |
Non-Accrual Loans | 343,766 | 386,132 | 351,805 |
90 Days or More and Accruing | 91,420 | 63,031 | 67,811 |
Consumer | |||
30-89 Days | 66,776 | 83,343 | 53,090 |
90 Days or more | 0 | 0 | 1,791 |
Total Past Due | 66,776 | 83,343 | 54,881 |
Current | 7,064,965 | 7,157,881 | 7,755,414 |
Total Loans | 7,131,741 | 7,241,224 | 7,810,295 |
Non-Accrual Loans | 0 | 0 | 0 |
90 Days or More and Accruing | $ 0 | $ 0 | $ 1,791 |
5. Loans, Allowance for Loan 33
5. Loans, Allowance for Loan Losses and Credit Quality (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Allowance for loan losses, Beginning balance | $ 5,077,420 | $ 5,095,212 | $ 5,011,878 | $ 4,905,874 | $ 4,905,874 |
Charge-offs | (57,796) | (162,784) | (285,155) | (340,722) | (502,366) |
Recoveries | 10,341 | 8,559 | 53,242 | 75,835 | 98,370 |
Provisions (credit) | 150,000 | 75,000 | 400,000 | 375,000 | 510,000 |
Allowance for loan losses, Ending balance | 5,179,965 | 5,015,987 | 5,179,965 | 5,015,987 | 5,011,878 |
Allowance for loan losses evaluated for impairment, Individually | 227,500 | 186,800 | 227,500 | 186,800 | 139,700 |
Allowance for loan losses evaluated for impairment, Collectively | 4,952,465 | 4,829,187 | 4,952,465 | 4,829,187 | 4,872,178 |
Allowance for loan losses | 5,179,965 | 5,015,987 | 5,179,965 | 5,015,987 | 5,011,878 |
Loans evaluated for impairment, Individually | 2,183,722 | 4,911,816 | 2,183,722 | 4,911,816 | 4,491,996 |
Loans evaluated for impairment, Collectively | 468,003,173 | 450,506,316 | 468,003,173 | 450,506,316 | 453,627,433 |
Total Loans | 470,186,895 | 455,418,132 | 470,186,895 | 455,418,132 | 458,119,429 |
Commercial and industrial | |||||
Allowance for loan losses, Beginning balance | 825,242 | 881,094 | 712,902 | 646,719 | 646,719 |
Charge-offs | (1,358) | (70,000) | (12,194) | (105,059) | (200,900) |
Recoveries | 2,174 | 997 | 22,650 | 43,909 | 59,264 |
Provisions (credit) | (54,384) | (91,246) | 48,316 | 135,276 | 207,819 |
Allowance for loan losses, Ending balance | 771,674 | 720,845 | 771,674 | 720,845 | 712,902 |
Allowance for loan losses evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 771,674 | 720,845 | 771,674 | 720,845 | 712,902 |
Allowance for loan losses | 771,674 | 720,845 | 771,674 | 720,845 | 712,902 |
Loans evaluated for impairment, Individually | 188,528 | 446,928 | 188,528 | 446,928 | 286,436 |
Loans evaluated for impairment, Collectively | 69,602,803 | 68,523,446 | 69,602,803 | 68,523,446 | 64,904,688 |
Total Loans | 69,791,331 | 68,970,374 | 69,791,331 | 68,970,374 | 65,191,124 |
Commercial Real Estate | |||||
Allowance for loan losses, Beginning balance | 2,316,966 | 1,984,559 | 2,152,678 | 2,311,936 | 2,311,936 |
Charge-offs | 0 | (14,783) | 0 | (14,783) | (14,783) |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provisions (credit) | 34,435 | 45,039 | 198,723 | (282,338) | (144,475) |
Allowance for loan losses, Ending balance | 2,351,401 | 2,014,815 | 2,351,401 | 2,014,815 | 2,152,678 |
Allowance for loan losses evaluated for impairment, Individually | 92,900 | 0 | 92,900 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 2,258,501 | 2,014,815 | 2,258,501 | 2,014,815 | 2,152,678 |
Allowance for loan losses | 2,351,401 | 2,014,815 | 2,351,401 | 2,014,815 | 2,152,678 |
Loans evaluated for impairment, Individually | 703,852 | 2,526,797 | 703,852 | 2,526,797 | 2,551,748 |
Loans evaluated for impairment, Collectively | 189,542,738 | 169,109,904 | 189,542,738 | 169,109,904 | 175,654,794 |
Total Loans | 190,246,590 | 171,636,701 | 190,246,590 | 171,636,701 | 178,206,542 |
Residential Real Estate - 1st Lien | |||||
Allowance for loan losses, Beginning balance | 1,294,272 | 1,358,504 | 1,368,028 | 1,270,766 | 1,270,766 |
Charge-offs | (42,000) | (17,473) | (234,549) | (112,047) | (150,947) |
Recoveries | 3,974 | 0 | 9,660 | 6,042 | 6,042 |
Provisions (credit) | 82,396 | 57,167 | 195,503 | 233,437 | 242,167 |
Allowance for loan losses, Ending balance | 1,338,642 | 1,398,198 | 1,338,642 | 1,398,198 | 1,368,028 |
Allowance for loan losses evaluated for impairment, Individually | 19,000 | 71,800 | 19,000 | 71,800 | 25,100 |
Allowance for loan losses evaluated for impairment, Collectively | 1,319,642 | 1,326,398 | 1,319,642 | 1,326,398 | 1,342,928 |
Allowance for loan losses | 1,338,642 | 1,398,198 | 1,338,642 | 1,398,198 | 1,368,028 |
Loans evaluated for impairment, Individually | 1,064,752 | 1,701,790 | 1,064,752 | 1,701,790 | 1,419,808 |
Loans evaluated for impairment, Collectively | 160,212,654 | 160,061,678 | 160,212,654 | 160,061,678 | 161,340,465 |
Total Loans | 161,277,406 | 161,763,468 | 161,277,406 | 161,763,468 | 162,760,273 |
Residential Real Estate Jr Lien | |||||
Allowance for loan losses, Beginning balance | 414,082 | 352,125 | 422,822 | 321,099 | 321,099 |
Charge-offs | 0 | (35,194) | 0 | (55,393) | (66,104) |
Recoveries | 60 | 60 | 180 | 180 | 240 |
Provisions (credit) | (32,861) | 106,934 | (41,721) | 158,039 | 167,587 |
Allowance for loan losses, Ending balance | 381,281 | 423,925 | 381,281 | 423,925 | 422,822 |
Allowance for loan losses evaluated for impairment, Individually | 115,600 | 115,000 | 115,600 | 115,000 | 114,600 |
Allowance for loan losses evaluated for impairment, Collectively | 265,681 | 308,925 | 265,681 | 308,925 | 308,222 |
Allowance for loan losses | 381,281 | 423,925 | 381,281 | 423,925 | 422,822 |
Loans evaluated for impairment, Individually | 226,590 | 236,301 | 226,590 | 236,301 | 234,004 |
Loans evaluated for impairment, Collectively | 41,513,237 | 45,000,993 | 41,513,237 | 45,000,993 | 44,486,262 |
Total Loans | 41,739,827 | 45,237,294 | 41,739,827 | 45,237,294 | 44,720,266 |
Consumer | |||||
Allowance for loan losses, Beginning balance | 80,560 | 63,813 | 75,689 | 118,819 | 118,819 |
Charge-offs | (14,438) | (25,334) | (38,412) | (53,440) | (69,632) |
Recoveries | 4,133 | 7,502 | 20,752 | 25,704 | 32,824 |
Provisions (credit) | (11,915) | 23,350 | 311 | (21,752) | (6,322) |
Allowance for loan losses, Ending balance | 58,340 | 69,331 | 58,340 | 69,331 | 75,689 |
Allowance for loan losses evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 58,340 | 69,331 | 58,340 | 69,331 | 75,689 |
Allowance for loan losses | 58,340 | 69,331 | 58,340 | 69,331 | 75,689 |
Loans evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Loans evaluated for impairment, Collectively | 7,131,741 | 7,810,295 | 7,131,741 | 7,810,295 | 7,241,224 |
Total Loans | 7,131,741 | 7,810,295 | 7,131,741 | 7,810,295 | 7,241,224 |
Unallocated | |||||
Allowance for loan losses, Beginning balance | 146,298 | 455,117 | 279,759 | 236,535 | 236,535 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provisions (credit) | 132,329 | (66,244) | (1,132) | 152,338 | 43,224 |
Allowance for loan losses, Ending balance | 278,627 | 388,873 | 278,627 | 388,873 | 279,759 |
Allowance for loan losses evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 278,627 | 388,873 | 278,627 | 388,873 | 279,759 |
Allowance for loan losses | $ 278,627 | $ 388,873 | $ 278,627 | $ 388,873 | $ 279,759 |
5. Loans, Allowance for Loan 34
5. Loans, Allowance for Loan Losses and Credit Quality (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Recorded Investment With an allowance recorded | $ 890,843 | $ 482,895 | $ 890,843 | $ 482,895 | $ 407,792 |
Unpaid Principal Balance With an allowance recorded | 1,098,648 | 567,565 | 1,098,648 | 567,565 | 466,478 |
Related Allowance With an allowance recorded | 227,500 | 186,800 | 227,500 | 186,800 | 139,700 |
Average Recorded Investment With an allowance recorded | 698,391 | 549,200 | 539,082 | 380,182 | 461,741 |
Recorded Investment With no related allowance recorded | 1,292,879 | 4,428,921 | 1,292,879 | 4,428,921 | 4,084,204 |
Unpaid Principal Balance With no related allowance recorded | 1,515,144 | 4,912,504 | 1,515,144 | 4,912,504 | 4,603,518 |
Average Recorded Investment With no related allowance recorded | 2,057,704 | 3,432,546 | 1,898,498 | 2,869,225 | 3,686,066 |
Recorded Investment allowance recorded | 2,183,722 | 4,911,816 | 2,183,722 | 4,911,816 | 4,491,996 |
Unpaid Principal Balance allowance recorded | 2,613,792 | 5,480,069 | 2,613,792 | 5,480,069 | 5,069,996 |
Related Allowance allowance recorded | 227,500 | 186,800 | 227,500 | 186,800 | 139,700 |
Average Recorded Investment Allowance recorded | 2,756,095 | 3,981,746 | 2,437,580 | 3,249,407 | 4,147,807 |
Commercial and industrial | |||||
Recorded Investment With an allowance recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance With an allowance recorded | 0 | 0 | 0 | ||
Related Allowance With an allowance recorded | 0 | 0 | 0 | ||
Average Recorded Investment With an allowance recorded | 0 | 93,398 | 37,359 | 37,359 | |
Recorded Investment With no related allowance recorded | 188,528 | 446,928 | 188,528 | 446,928 | 286,436 |
Unpaid Principal Balance With no related allowance recorded | 262,297 | 512,552 | 262,297 | 512,552 | 366,387 |
Average Recorded Investment With no related allowance recorded | 198,137 | 555,057 | 174,248 | 389,530 | 446,817 |
Commercial Real Estate | |||||
Recorded Investment With an allowance recorded | 228,062 | 0 | 228,062 | 0 | 0 |
Unpaid Principal Balance With an allowance recorded | 235,152 | 0 | 235,152 | 0 | 0 |
Related Allowance With an allowance recorded | 92,900 | 0 | 92,900 | 0 | 0 |
Average Recorded Investment With an allowance recorded | 0 | 0 | 45,612 | 40,902 | 40,902 |
Recorded Investment With no related allowance recorded | 475,790 | 2,526,797 | 475,790 | 2,526,797 | 2,551,748 |
Unpaid Principal Balance With no related allowance recorded | 523,245 | 2,741,550 | 523,245 | 2,741,550 | 2,776,729 |
Average Recorded Investment With no related allowance recorded | 901,468 | 1,976,769 | 966,095 | 1,641,363 | 2,151,713 |
Residential real estate - 1st lien | |||||
Recorded Investment With an allowance recorded | 436,191 | 246,594 | 436,191 | 246,594 | 173,788 |
Unpaid Principal Balance With an allowance recorded | 579,182 | 283,363 | 579,182 | 283,363 | 182,251 |
Related Allowance With an allowance recorded | 19,000 | 71,800 | 19,000 | 71,800 | 25,100 |
Average Recorded Investment With an allowance recorded | 435,802 | 302,937 | 296,316 | 193,515 | 228,273 |
Recorded Investment With no related allowance recorded | 628,561 | 1,455,196 | 628,561 | 1,455,196 | 1,246,020 |
Unpaid Principal Balance With no related allowance recorded | 729,602 | 1,658,402 | 729,602 | 1,658,402 | 1,460,402 |
Average Recorded Investment With no related allowance recorded | 918,378 | 780,255 | 742,267 | 724,368 | 973,572 |
Residential real estate - Jr lien | |||||
Recorded Investment With an allowance recorded | 226,590 | 236,301 | 226,590 | 236,301 | 234,004 |
Unpaid Principal Balance With an allowance recorded | 284,314 | 284,202 | 284,314 | 284,202 | 284,227 |
Related Allowance With an allowance recorded | 115,600 | 115,000 | 115,600 | 115,000 | 114,600 |
Average Recorded Investment With an allowance recorded | 262,589 | 152,865 | 197,154 | 108,406 | 155,207 |
Recorded Investment With no related allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance With no related allowance recorded | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment With no related allowance recorded | $ 39,721 | $ 120,465 | $ 15,888 | $ 113,964 | $ 113,964 |
5. Loans, Allowance for Loan 35
5. Loans, Allowance for Loan Losses and Credit Quality (Details 4) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Group A | $ 454,162,312 | $ 438,208,275 | $ 437,032,136 |
Group B | 5,421,506 | 10,066,246 | 6,842,853 |
Group C | 10,603,077 | 9,844,908 | 11,543,143 |
Total Loans | 470,186,895 | 458,119,429 | 455,418,132 |
Commercial and industrial | |||
Group A | 67,062,235 | 59,764,081 | 65,623,508 |
Group B | 1,551,890 | 4,724,729 | 2,023,893 |
Group C | 1,177,206 | 702,314 | 1,322,973 |
Total Loans | 69,791,331 | 65,191,124 | 68,970,374 |
Commercial Real Estate | |||
Group A | 179,855,087 | 168,326,527 | 161,009,553 |
Group B | 3,270,984 | 4,529,493 | 4,415,932 |
Group C | 7,120,519 | 5,350,522 | 6,211,216 |
Total Loans | 190,246,590 | 178,206,542 | 171,636,701 |
Residential real estate - 1st lien | |||
Group A | 158,989,152 | 158,834,849 | 158,003,285 |
Group B | 451,736 | 599,516 | 178,938 |
Group C | 1,836,518 | 3,325,908 | 3,581,245 |
Total Loans | 161,277,406 | 162,760,273 | 161,763,468 |
Residential real estate - Jr lien | |||
Group A | 41,124,097 | 44,041,594 | 44,587,285 |
Group B | 146,896 | 212,508 | 224,090 |
Group C | 468,834 | 466,164 | 425,919 |
Total Loans | 41,739,827 | 44,720,266 | 45,237,294 |
Consumer | |||
Group A | 7,131,741 | 7,241,224 | 7,808,505 |
Group B | 0 | 0 | 0 |
Group C | 0 | 0 | 1,790 |
Total Loans | $ 7,131,741 | $ 7,241,224 | $ 7,810,295 |
5. Loans, Allowance for Loan 36
5. Loans, Allowance for Loan Losses and Credit Quality (Details 5) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)integer | Sep. 30, 2015USD ($)integer | Sep. 30, 2016USD ($)integer | Sep. 30, 2015USD ($)integer | Dec. 31, 2015USD ($)integer | |
Number of Contracts modified as TDRs | integer | 3 | 5 | 10 | 18 | 19 |
Pre-Modification Outstanding Recorded Investment | $ 177,182 | $ 548,939 | $ 635,237 | $ 1,828,329 | $ 2,127,411 |
Post- Modification Outstanding Recorded Investment | $ 185,107 | $ 585,383 | $ 663,007 | $ 1,926,986 | $ 2,245,480 |
Residential real estate - 1st lien | |||||
Number of Contracts modified as TDRs | integer | 3 | 3 | 8 | 11 | 12 |
Pre-Modification Outstanding Recorded Investment | $ 177,182 | $ 207,979 | $ 572,418 | $ 1,170,625 | $ 1,229,100 |
Post- Modification Outstanding Recorded Investment | $ 185,107 | $ 219,335 | $ 598,030 | $ 1,240,437 | $ 1,303,228 |
Residential Real Estate Jr Lien | |||||
Number of Contracts modified as TDRs | integer | 0 | 0 | 2 | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 62,819 | $ 117,745 | $ 117,746 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 64,977 | $ 121,672 | $ 121,672 |
Commercial and industrial | |||||
Number of Contracts modified as TDRs | integer | 0 | 3 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 198,999 | $ 199,134 | ||
Post- Modification Outstanding Recorded Investment | $ 0 | $ 198,829 | $ 204,142 | ||
Commercial Real Estate | |||||
Number of Contracts modified as TDRs | integer | 2 | 2 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 340,960 | $ 340,960 | $ 581,431 | ||
Post- Modification Outstanding Recorded Investment | $ 366,048 | $ 366,048 | $ 616,438 |
5. Loans, Allowance for Loan 37
5. Loans, Allowance for Loan Losses and Credit Quality (Details 6) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)integer | Sep. 30, 2015USD ($)integer | Dec. 31, 2015USD ($)integer | |
Number of Contracts | integer | 5 | 5 | 6 |
Recorded Investment | $ | $ 448,432 | $ 278,238 | $ 506,145 |
Commercial | |||
Number of Contracts | integer | 1 | 2 | |
Recorded Investment | $ | $ 71,808 | $ 21,890 | |
Commercial Real Estate | |||
Number of Contracts | integer | 1 | 1 | |
Recorded Investment | $ | $ 228,063 | $ 149,514 | |
Residential Real Estate - 1st Lien | |||
Number of Contracts | integer | 2 | 3 | 4 |
Recorded Investment | $ | $ 94,004 | $ 256,348 | $ 286,803 |
Residential Real Estate Jr Lien | |||
Number of Contracts | integer | 1 | 1 | |
Recorded Investment | $ | $ 54,557 | $ 69,828 |
5. Loans, Allowance for Loan 38
5. Loans, Allowance for Loan Losses and Credit Quality (Details Narrative) | Sep. 30, 2016USD ($)integer | Dec. 31, 2015USD ($)integer | Sep. 30, 2015USD ($)integer |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Allowance related to TDRs | $ 5,700 | $ 25,100 | $ 0 |
Residential mortgage loans | integer | 6 | 5 | 4 |
Residential mortgage loans in process of foreclosure | $ 250,413 | $ 400,905 | $ 370,413 |
7. Goodwill and Other Intangi39
7. Goodwill and Other Intangible Assets (Details) | Sep. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 68,170 |
2,017 | 272,691 |
Total remaining core deposit intangible | $ 340,861 |
7. Goodwill and Other Intangi40
7. Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated amortization expense | $ 3,820,139 | $ 3,547,444 |
Amortization expense for the core deposit intangible | $ 204,525 | $ 204,525 |
8. Fair Value (Details)
8. Fair Value (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Fair Value Level 2 | |||
Assets: (market approach) | |||
U.S. GSE debt securities | $ 13,843,494 | $ 12,832,443 | $ 13,947,470 |
U.S. Government securities | 0 | ||
Agency MBS | 12,526,616 | 10,664,484 | 11,198,361 |
Other investments | 3,042,106 | 2,973,473 | 2,236,442 |
Total | $ 29,412,216 | $ 26,470,400 | 27,382,273 |
Fair Value Level 1 | |||
Assets: (market approach) | |||
U.S. GSE debt securities | 0 | ||
U.S. Government securities | 3,002,969 | ||
Agency MBS | 0 | ||
Other investments | 0 | ||
Total | $ 3,002,969 |
8. Fair Value (Details 1)
8. Fair Value (Details 1) - Fair Value Level 2 - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Assets: (market approach) | |||
Residential mortgage servicing rights | $ 1,215,311 | $ 1,293,079 | $ 1,296,249 |
Impaired loans, net of related allowance | 663,343 | 268,092 | 296,095 |
OREO | $ 409,000 | $ 262,000 | $ 1,058,475 |
8. Fair Value (Details 2)
8. Fair Value (Details 2) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Carrying Amount | |||
Financial assets: (Dollars in Thousands) | |||
Cash and cash equivalents | $ 12,380 | $ 28,852 | $ 14,739 |
Securities held-to-maturity | 56,837 | 43,354 | 47,658 |
Securities available-for-sale | 29,412 | 26,470 | 30,385 |
Restricted equity securities | 1,856 | 2,442 | 3,332 |
Loans and loans held-for-sale | |||
Commercial & Industrial | 68,978 | 64,438 | 68,190 |
Commercial real estate | 187,783 | 175,945 | 169,476 |
Residential real estate - 1st lien | 160,552 | 162,492 | 161,427 |
Residential real estate - Jr. lien | 41,334 | 44,270 | 44,774 |
Consumer | 7,069 | 7,161 | 7,734 |
Mortgage servicing rights | 1,215 | 1,293 | 1,296 |
Accrued interest receivable | 1,650 | 1,633 | 1,687 |
Deposits | |||
Deposits, Other deposits | 470,587 | 467,851 | 458,674 |
Deposits, Brokered deposits | 33,220 | 27,635 | 20,334 |
Federal funds purchased and short-term borrowings | 5,245 | 10,000 | 20,000 |
Long-term borrowings | 550 | ||
Repurchase agreements | 25,834 | 22,073 | 21,977 |
Capital lease obligations | 494 | 558 | 579 |
Subordinated debentures | 12,887 | 12,887 | 12,887 |
Accrued interest payable | 44 | 53 | 51 |
Fair Value Level 1 | |||
Financial assets: (Dollars in Thousands) | |||
Cash and cash equivalents | 12,380 | 28,852 | 14,739 |
Securities held-to-maturity | 0 | 0 | 0 |
Securities available-for-sale | 0 | 0 | 3,003 |
Restricted equity securities | 0 | 0 | 0 |
Loans and loans held-for-sale | |||
Commercial & Industrial | 0 | 0 | 0 |
Commercial real estate | 0 | 0 | 0 |
Residential real estate - 1st lien | 0 | 0 | 0 |
Residential real estate - Jr. lien | 0 | 0 | 0 |
Consumer | 0 | 0 | 0 |
Mortgage servicing rights | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits | |||
Deposits, Other deposits | 0 | 0 | 0 |
Deposits, Brokered deposits | 0 | 0 | 0 |
Federal funds purchased and short-term borrowings | 0 | 0 | 0 |
Long-term borrowings | 0 | ||
Repurchase agreements | 0 | 0 | 0 |
Capital lease obligations | 0 | 0 | 0 |
Subordinated debentures | 0 | 0 | 0 |
Accrued interest payable | 0 | 0 | 0 |
Fair Value Level 2 | |||
Financial assets: (Dollars in Thousands) | |||
Cash and cash equivalents | 0 | 0 | 0 |
Securities held-to-maturity | 57,592 | 44,143 | 48,011 |
Securities available-for-sale | 29,412 | 26,470 | 27,382 |
Restricted equity securities | 1,856 | 2,442 | 3,332 |
Loans and loans held-for-sale | |||
Commercial & Industrial | 189 | 286 | 447 |
Commercial real estate | 611 | 2,552 | 2,527 |
Residential real estate - 1st lien | 1,046 | 1,395 | 1,630 |
Residential real estate - Jr. lien | 111 | 119 | 121 |
Consumer | 0 | 0 | 0 |
Mortgage servicing rights | 1,333 | 1,497 | 1,474 |
Accrued interest receivable | 1,650 | 1,633 | 1,687 |
Deposits | |||
Deposits, Other deposits | 470,785 | 467,514 | 458,796 |
Deposits, Brokered deposits | 33,223 | 27,640 | 20,349 |
Federal funds purchased and short-term borrowings | 5,245 | 10,000 | 20,000 |
Long-term borrowings | 503 | ||
Repurchase agreements | 25,834 | 22,073 | 21,977 |
Capital lease obligations | 494 | 558 | 579 |
Subordinated debentures | 12,852 | 12,851 | 12,857 |
Accrued interest payable | 44 | 53 | 51 |
Fair Value Level 3 | |||
Financial assets: (Dollars in Thousands) | |||
Cash and cash equivalents | 0 | 0 | 0 |
Securities held-to-maturity | 0 | 0 | 0 |
Securities available-for-sale | 0 | 0 | 0 |
Restricted equity securities | 0 | 0 | 0 |
Loans and loans held-for-sale | |||
Commercial & Industrial | 69,957 | 65,399 | 69,224 |
Commercial real estate | 192,329 | 178,502 | 172,871 |
Residential real estate - 1st lien | 163,770 | 164,959 | 164,495 |
Residential real estate - Jr. lien | 41,826 | 44,939 | 45,526 |
Consumer | 7,358 | 7,482 | 8,090 |
Mortgage servicing rights | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits | |||
Deposits, Other deposits | 0 | 0 | 0 |
Deposits, Brokered deposits | 0 | 0 | 0 |
Federal funds purchased and short-term borrowings | 0 | 0 | 0 |
Long-term borrowings | 0 | ||
Repurchase agreements | 0 | 0 | 0 |
Capital lease obligations | 0 | 0 | 0 |
Subordinated debentures | 0 | 0 | 0 |
Accrued interest payable | 0 | 0 | 0 |
Fair Value | |||
Financial assets: (Dollars in Thousands) | |||
Cash and cash equivalents | 12,380 | 28,852 | 14,739 |
Securities held-to-maturity | 57,592 | 44,143 | 48,011 |
Securities available-for-sale | 29,412 | 26,470 | 30,385 |
Restricted equity securities | 1,856 | 2,442 | 3,332 |
Loans and loans held-for-sale | |||
Commercial & Industrial | 70,146 | 65,685 | 69,671 |
Commercial real estate | 192,940 | 181,054 | 175,398 |
Residential real estate - 1st lien | 164,816 | 166,354 | 166,125 |
Residential real estate - Jr. lien | 41,937 | 45,058 | 45,647 |
Consumer | 7,358 | 7,482 | 8,090 |
Mortgage servicing rights | 1,333 | 1,497 | 1,474 |
Accrued interest receivable | 1,650 | 1,633 | 1,687 |
Deposits | |||
Deposits, Other deposits | 470,785 | 467,514 | 458,796 |
Deposits, Brokered deposits | 33,223 | 27,640 | 20,349 |
Federal funds purchased and short-term borrowings | 5,245 | 10,000 | 20,000 |
Long-term borrowings | 503 | ||
Repurchase agreements | 25,834 | 22,073 | 21,977 |
Capital lease obligations | 494 | 558 | 579 |
Subordinated debentures | 12,852 | 12,851 | 12,857 |
Accrued interest payable | $ 44 | $ 53 | $ 51 |
9. Loan Servicing (Details)
9. Loan Servicing (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Balance at beginning of year | $ 1,293,079 | $ 1,311,965 | $ 1,311,965 |
Mortgage servicing rights capitalized | 152,900 | 177,090 | 230,818 |
Mortgage servicing rights amortized | (208,706) | (195,363) | (257,921) |
Change in valuation allowance | (21,962) | 2,557 | 8,217 |
Balance at end of period | $ 1,215,311 | $ 1,296,249 | $ 1,293,079 |
11. Subsequent Event (Details)
11. Subsequent Event (Details) | Sep. 30, 2016USD ($) |
Subsequent Event [Member] | |
Dividend accrued | $ 804,306 |