Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 30, 2013 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'COMMUNITY FINANCIAL CORP /MD/ | ' |
Entity Central Index Key | '0000855874 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'tcfc | ' |
Entity Common Stock Shares Outstanding | ' | 4,647,324 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash and due from banks | $23,269,755 | $10,696,653 |
Federal funds sold | ' | 190,000 |
Interest-bearing deposits with banks | 3,626,750 | 409,002 |
Securities available for sale (AFS), at fair value | 50,869,490 | 47,205,663 |
Securities held to maturity (HTM), at amortized cost | 91,349,615 | 112,619,434 |
Federal Home Loan Bank and Federal Reserve Bank stock - at cost | 5,593,100 | 5,476,050 |
Loans receivable - net of allowance for loan losses of $8,079,277 and $8,246,957 | 759,880,727 | 747,640,752 |
Premises and equipment, net | 19,272,212 | 19,782,236 |
Other real estate owned (OREO) | 7,058,504 | 6,891,353 |
Accrued interest receivable | 2,850,066 | 2,904,325 |
Investment in bank owned life insurance | 19,195,355 | 18,730,580 |
Other assets | 9,938,081 | 9,093,164 |
Total Assets | 992,903,655 | 981,639,212 |
Liabilities and Stockholders' Equity | ' | ' |
Non-interest-bearing deposits | 107,856,339 | 102,319,581 |
Interest-bearing deposits | 709,391,120 | 717,910,707 |
Total deposits | 817,247,459 | 820,230,288 |
Short-term borrowings | 2,640,000 | 1,000,000 |
Long-term debt | 70,488,848 | 60,527,208 |
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,000,000 | 12,000,000 |
Accrued expenses and other liabilities | 8,379,012 | 8,834,455 |
Total Liabilities | 910,755,319 | 902,591,951 |
Stockholders' Equity | ' | ' |
Preferred Stock, Senior Non-Cumulative Perpetual, Series C - par value $1,000; authorized 20,000; issued 20,000 | 20,000,000 | 20,000,000 |
Common stock - par value $.01; authorized - 15,000,000 shares; issued 3,048,439 and 3,052,416 shares, respectively | 30,484 | 30,524 |
Additional paid in capital | 18,275,729 | 17,873,560 |
Retained earnings | 45,626,970 | 41,986,633 |
Accumulated other comprehensive gain (loss) | -910,940 | 139,184 |
Unearned ESOP shares | -873,907 | -982,640 |
Total Stockholders' Equity | 82,148,336 | 79,047,261 |
Total Liabilities and Stockholders' Equity | $992,903,655 | $981,639,212 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Loans receivable, allowance for loan losses (in dollars) | $8,079,277 | $8,246,957 |
Preferred Stock, par value (in dollars per share) | $1,000 | $1,000 |
Preferred Stock, authorized | 20,000 | 20,000 |
Preferred Stock, issued | 20,000 | 20,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 3,048,439 | 3,052,416 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest and Dividend Income | ' | ' | ' | ' |
Loans, including fees | $9,340,139 | $9,113,063 | $27,703,885 | $27,624,323 |
Taxable interest and dividends on investment securities | 631,652 | 768,611 | 1,852,692 | 2,465,529 |
Interest on deposits with banks | 3,268 | 4,982 | 8,552 | 7,730 |
Total Interest and Dividend Income | 9,975,059 | 9,886,656 | 29,565,129 | 30,097,582 |
Interest Expenses | ' | ' | ' | ' |
Deposits | 1,335,916 | 2,001,535 | 4,332,351 | 6,630,820 |
Short-term borrowings | 4,237 | 298 | 12,930 | 12,483 |
Long-term debt | 532,833 | 537,216 | 1,569,247 | 1,684,772 |
Total Interest Expenses | 1,872,986 | 2,539,049 | 5,914,528 | 8,328,075 |
Net Interest Income | 8,102,073 | 7,347,607 | 23,650,601 | 21,769,507 |
Provision for loan losses | 285,610 | 746,075 | 640,210 | 1,523,580 |
Net Interest Income After Provision For Loan Losses | 7,816,463 | 6,601,532 | 23,010,391 | 20,245,927 |
Noninterest Income | ' | ' | ' | ' |
Loan appraisal, credit, and miscellaneous charges | 55,620 | 280,456 | 374,769 | 663,897 |
Gain on sale of asset | ' | ' | 11,000 | ' |
Net losses on sale of OREO | 215,345 | ' | 215,345 | -96,917 |
Income from bank owned life insurance | 156,348 | 157,177 | 464,775 | 476,294 |
Service charges | 661,134 | 528,420 | 1,764,314 | 1,530,323 |
Gain on sale of loans held for sale | 30,769 | 336,384 | 546,819 | 471,725 |
Total Noninterest Income | 1,119,216 | 1,302,437 | 3,377,022 | 3,045,322 |
Noninterest Expense | ' | ' | ' | ' |
Salary and employee benefits | 3,737,000 | 3,492,524 | 10,883,606 | 9,982,603 |
Occupancy expense | 504,627 | 487,233 | 1,556,877 | 1,389,024 |
Advertising | 118,421 | 86,020 | 391,152 | 345,111 |
Data processing expense | 237,054 | 329,005 | 967,368 | 1,118,598 |
Professional fees | 293,028 | 177,818 | 754,719 | 746,322 |
Depreciation of furniture, fixtures, and equipment | 191,320 | 188,870 | 580,842 | 486,159 |
Telephone communications | 45,787 | 45,563 | 148,516 | 137,649 |
Office supplies | 41,689 | 52,751 | 151,157 | 186,741 |
FDIC Insurance | 284,591 | 201,607 | 858,860 | 1,092,809 |
Valuation allowance on OREO | 170,560 | 31,050 | 500,536 | 657,226 |
Other | 621,650 | 508,343 | 1,701,338 | 1,719,647 |
Total Noninterest Expense | 6,245,727 | 5,600,784 | 18,494,971 | 17,861,889 |
Income before income taxes | 2,689,952 | 2,303,185 | 7,892,442 | 5,429,360 |
Income tax expense | 987,111 | 830,244 | 2,885,761 | 1,910,014 |
Net Income | 1,702,841 | 1,472,941 | 5,006,681 | 3,519,346 |
Preferred stock dividends | 50,000 | 50,000 | 150,000 | 150,000 |
Net Income Available to Common Shareholders | 1,652,841 | 1,422,941 | 4,856,681 | 3,369,346 |
Net Income | 1,702,841 | 1,472,941 | 5,006,681 | 3,519,346 |
Net unrealized holding gains (losses) arising during period, net of tax | -231,346 | 68,791 | -1,050,124 | 76,542 |
Comprehensive Income | $1,471,495 | $1,541,732 | $3,956,557 | $3,595,888 |
Earnings Per Common Share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.55 | $0.47 | $1.61 | $1.11 |
Diluted (in dollars per share) | $0.55 | $0.47 | $1.60 | $1.10 |
Cash dividends paid per common share (in dollars per share) | $0.10 | ' | $0.30 | $0.40 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net income | $5,006,681 | $3,519,346 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Provision for loan losses | 640,210 | 1,523,580 |
Depreciation and amortization | 965,380 | 845,804 |
Loans originated for resale | -20,903,681 | -9,987,050 |
Proceeds from sale of loans originated for sale | 21,326,491 | 10,383,776 |
Gain on sale of loans held for sale | -546,819 | -471,725 |
Net (gains) losses on the sale of OREO | -215,345 | 96,917 |
Gain on sale of asset | -11,000 | ' |
Net amortization of premium/discount on investment securities | 440,932 | 308,509 |
Increase in OREO valuation allowance | 500,536 | 657,226 |
Increase in cash surrender of bank owned life insurance | -464,775 | -476,293 |
Deferred income tax benefit | -128,314 | -773,527 |
Decrease (Increase) in accrued interest receivable | 54,259 | -39,413 |
Stock based compensation | 249,129 | 263,088 |
(Decrease in deferred loan fees | 215,478 | 104,942 |
Decrease in accounts payable, accrued expenses and other liabilities | -455,443 | 441,789 |
(Increase) Decrease in other assets | -165,764 | 2,411,207 |
Net Cash Provided by Operating Activities | 6,507,955 | 8,808,176 |
Cash Flows from Investing Activities | ' | ' |
Purchase of AFS investment securities | -13,486,742 | -10,101,789 |
Proceeds from redemption or principal payments of AFS investment securities | 8,091,820 | 15,465,959 |
Purchase of HTM investment securities | -11,682,813 | -11,249,535 |
Proceeds from maturities or principal payments of HTM investment securities | 32,651,698 | 39,413,413 |
Net increase of FHLB and FRB stock | -117,050 | 155,250 |
Loans originated or acquired | -182,200,307 | -173,628,906 |
Principal collected on loans | 168,063,366 | 147,989,755 |
Purchase of premises and equipment | -455,356 | -4,253,518 |
Proceeds from sale of OREO | 712,945 | 344,512 |
Proceeds from disposal of assets | 11,000 | ' |
Net Cash Provided by Investing Activities | 1,588,561 | 4,135,141 |
Cash Flows from Financing Activities | ' | ' |
Net decrease in deposits | -2,982,829 | -4,265,600 |
Proceeds from long-term borrowings | 10,000,000 | ' |
Payments of long-term borrowings | -38,360 | -36,854 |
Net increase in short term borrowings | 1,640,000 | ' |
Exercise of stock options | 125,222 | 67,391 |
Dividends paid | -1,063,992 | -1,371,571 |
Net change in unearned ESOP shares | 126,812 | -1,942 |
Redemption of common stock | -302,519 | -257,935 |
Net Cash Used in Financing Activities | 7,504,334 | -5,866,511 |
Increase (Decrease) in Cash and Cash Equivalents | 15,600,850 | 7,076,806 |
Cash and Cash Equivalents - January 1 | 11,295,655 | 19,118,189 |
Cash and Cash Equivalents - June 30 | 26,896,505 | 26,194,995 |
Supplemental Disclosures of Cash Flow Information | ' | ' |
Interest | 5,856,848 | 8,340,170 |
Income taxes | 3,164,596 | 1,470,590 |
Supplemental Schedule of Non-Cash Operating Activities | ' | ' |
Issuance of common stock for payment of compensation | 249,129 | 263,088 |
Transfer from loans to OREO | $1,390,286 | $2,165,376 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended | ||
Sep. 30, 2013 | |||
BASIS AND NATURE OF BUSINESS [Abstract] | ' | ||
BASIS OF PRESENTATION | ' | ||
1 | BASIS OF PRESENTATION | ||
General - The consolidated financial statements of The Community Financial Corporation (formerly Tri-County Financial Corporation) (the “Company”) and its wholly owned subsidiary, Community Bank of the Chesapeake (formerly Community Bank of Tri-County) (the “Bank”), and the Bank’s wholly owned subsidiary, Community Mortgage Corporation of Tri-County, included herein are unaudited. The Bank conducts business through its main office in Waldorf, Maryland, and ten branch offices in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby, California, Maryland; and Dahlgren, Virginia. Effective October 18, 2013, the Company changed its name from Tri-County Financial Corporation and the Bank changed its name from Community Bank of Tri-County. The new names reflect the Bank's recent expansion into the Northern Neck of Virginia. The name of the holding company changed to better align the parent company name with that of the Bank. | |||
The consolidated financial statements reflect all adjustments consisting only of normal recurring accruals that, in the opinion of management, are necessary to present fairly the Company’s financial condition, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company believes that the disclosures are adequate to make the information presented not misleading. The balances as of December 31, 2012 have been derived from audited financial statements. There have been no significant changes to the Company’s accounting policies as disclosed in the 2012 Annual Report. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results of operations to be expected for the remainder of the year or any other period. Certain previously reported amounts have been restated to conform to the 2013 presentation. | |||
These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2012 Annual Report. | |||
In October 2013, the Company completed a stock offering and issued 1,591,300 shares of common stock at a price of $18.75 per share resulting in net proceeds of $27.4 million after commissions and related offering expenses. The additional capital raise was completed in the fourth quarter 2013 and is not reflected in the financial statements as of September 30, 2013. | |||
NATURE_OF_BUSINESS
NATURE OF BUSINESS | 9 Months Ended | ||
Sep. 30, 2013 | |||
BASIS AND NATURE OF BUSINESS [Abstract] | ' | ||
NATURE OF BUSINESS | ' | ||
2 | NATURE OF BUSINESS | ||
The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and King George, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. | |||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | |||||||
FAIR VALUE MEASUREMENTS | ' | |||||||
3 | FAIR VALUE MEASUREMENTS | |||||||
The Company adopted FASB ASC Topic 820, “Fair Value Measurements” and FASB ASC Topic 825, “The Fair Value Option for Financial Assets and Financial Liabilities”, which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. FASB ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans). | ||||||||
FASB ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | ||||||||
The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. | ||||||||
Under FASB ASC Topic 820, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. These hierarchy levels are: | ||||||||
Level 1 inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. | ||||||||
Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||
Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. | ||||||||
Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly or quarterly valuation process. | ||||||||
There were no transfers between levels of the fair value hierarchy and the Company had no Level 3 fair value assets or liabilities for the three and nine months ended September 30, 2013 and the year ended December 31, 2012, respectively. | ||||||||
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: | ||||||||
Securities Available for Sale | ||||||||
Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities (“GSEs”), municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. | ||||||||
Loans Receivable | ||||||||
The Company does not record loans at fair value on a recurring basis, however, from time to time, a loan is considered impaired and an allowance for loan loss is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are considered impaired. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Impaired loans not requiring a specific allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. At September 30, 2013 and December 31, 2012, substantially all of the impaired loans were evaluated based upon the fair value of the collateral. In accordance with FASB ASC 820, impaired loans where an allowance is established based on the fair value of collateral (loans with impairment) require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3. | ||||||||
Other Real Estate Owned (“OREO”) | ||||||||
OREO is adjusted for fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is carried at the lower of carrying value and fair value. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset at nonrecurring Level 3. | ||||||||
Assets and Liabilities Recorded at Fair Value on a Recurring Basis | ||||||||
The tables below present the recorded amount of assets as of September 30, 2013 and December 31, 2012 measured at fair value on a recurring basis. | ||||||||
30-Sep-13 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Available for sale securities | ||||||||
Asset-backed securities issued by GSEs | ||||||||
Collateralized Mortgage Obligations ("CMOs") | $ 46,471,000 | $ - | $ 46,471,000 | $ - | ||||
Mortgage Backed Securities ("MBS") | 198,713 | - | 198,713 | - | ||||
Corporate equity securities | 38,698 | - | 38,698 | - | ||||
Bond mutual funds | 4,161,079 | - | 4,161,079 | - | ||||
Total available for sale securities | $ 50,869,490 | $ - | $ 50,869,490 | $ - | ||||
31-Dec-12 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Available for sale securities | ||||||||
Asset-backed securities issued by GSEs | ||||||||
CMOs | $ 42,655,799 | $ - | $ 42,655,799 | $ - | ||||
MBS | 231,386 | - | 231,386 | - | ||||
Corporate equity securities | 37,332 | - | 37,332 | - | ||||
Bond mutual funds | 4,281,146 | - | 4,281,146 | - | ||||
Total available for sale securities | $ 47,205,663 | $ - | $ 47,205,663 | $ - | ||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||
The Company may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012 are included in the tables below. | ||||||||
30-Sep-13 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Loans with impairment | ||||||||
Commercial real estate | $ 3,411,781 | $ - | $ 3,411,781 | $ - | ||||
Residential first mortgage | 530,170 | - | 530,170 | - | ||||
Commercial loans | 429,000 | - | 429,000 | - | ||||
Total loans with impairment | $ 4,370,951 | $ - | $ 4,370,951 | $ - | ||||
Other real estate owned | $ 7,058,504 | $ - | $ 7,058,504 | $ - | ||||
31-Dec-12 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Loans with impairment | ||||||||
Commercial real estate | $ 2,028,534 | $ - | $ 2,028,534 | $ - | ||||
Residential first mortgage | 602,290 | - | 602,290 | - | ||||
Commercial loans | 94,355 | - | 94,355 | - | ||||
Total loans with impairment | $ 2,725,179 | $ - | $ 2,725,179 | $ - | ||||
Other real estate owned | $ 6,891,353 | $ - | $ 6,891,353 | $ - | ||||
Loans with impairment have unpaid principal balances of $5,415,721 and $4,272,836 at September 30, 2013 and December 31, 2012, respectively, and include impaired loans with a specific allowance. | ||||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended | ||
Sep. 30, 2013 | |||
INCOME TAXES [Abstract] | ' | ||
INCOME TAXES | ' | ||
4 | INCOME TAXES | ||
The Company files a consolidated federal income tax return with its subsidiaries. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws and when it is considered more likely than not that deferred tax assets will be realized. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. | |||
EARNINGS_PER_COMMON_SHARE_EPS
EARNINGS PER COMMON SHARE (EPS) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
EARNINGS PER COMMON SHARE (EPS) [Abstract] | ' | |||||||
EARNINGS PER COMMON SHARE (EPS) | ' | |||||||
5 | EARNINGS PER COMMON SHARE (EPS) | |||||||
Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. As of September 30, 2013 and 2012, there were 101,549 and 187,367 shares, respectively, excluded from the diluted net income per share computation because the exercise price of the stock options were greater than the market price, and thus were anti-dilutive. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Net Income | $ 1,702,841 | $ 1,472,941 | $ 5,006,681 | $ 3,519,346 | ||||
Less: dividends paid and accrued on preferred stock | -50,000 | -50,000 | -150,000 | -150,000 | ||||
Net income available to common shareholders | $ 1,652,841 | $ 1,422,941 | $ 4,856,681 | $ 3,369,346 | ||||
Average number of common shares outstanding | 2,997,401 | 3,044,556 | 3,016,793 | 3,042,645 | ||||
Effect of dilutive options | 24,981 | 8,693 | 25,295 | 13,026 | ||||
Average number of shares used to calculate diluted EPS | 3,022,382 | 3,053,249 | 3,042,088 | 3,055,671 | ||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | |||||||
STOCK-BASED COMPENSATION | ' | |||||||
6 | STOCK-BASED COMPENSATION | |||||||
The Company has stock option and incentive arrangements to attract and retain key personnel. In May 2005, the 2005 Equity Compensation Plan (the “Plan”) was approved by the shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service based awards is recognized over the vesting period. Performance based awards are recognized based on a vesting, if applicable, and the probability of achieving the goals. | ||||||||
Stock-based compensation expense totaled $159,089 and $91,826 for the nine months ended September 30, 2013 and 2012, respectively, which consisted of grants of restricted stock and restricted stock units. Stock-based compensation for the nine months ended September 30, 2013 and 2012 included director compensation of $3,320 and $18,128, respectively, for stock granted in lieu of cash compensation for board fees. All outstanding options are fully vested and the Company has not granted any stock options since 2007. | ||||||||
The fair value of the Company’s outstanding employee stock options is estimated on the date of grant using the Black-Scholes option pricing model. The Company estimates expected market price volatility and expected term of the options based on historical data and other factors. | ||||||||
The exercise price for options granted is set at the discretion of the committee administering the Plan, but is not less than the market value of the shares as of the date of grant. An option’s maximum term is 10 years and the options vest at the discretion of the committee. | ||||||||
The following tables below summarize outstanding and exercisable options at September 30, 2013 and December 31, 2012. | ||||||||
Weighted | Weighted-Average | |||||||
Average | Aggregate | Contractual Life | ||||||
Exercise | Intrinsic | Remaining In | ||||||
Shares | Price | Value | Years | |||||
Outstanding at January 1, 2013 | 236,059 | $ 18.49 | $ 164,304 | |||||
Granted at fair value | - | - | ||||||
Exercised | -16,009 | 13.63 | 73,518 | |||||
Expired | - | |||||||
Forfeited | -2 | 13.05 | ||||||
Outstanding at September 30, 2013 | 220,048 | $ 18.84 | $ 478,620 | 0.8 | ||||
Exercisable at September 30, 2013 | 220,048 | $ 18.84 | $ 478,620 | 0.8 | ||||
Weighted | Weighted-Average | |||||||
Average | Aggregate | Contractual Life | ||||||
Exercise | Intrinsic | Remaining In | ||||||
Shares | Price | Value | Years | |||||
Outstanding at January 1, 2012 | 264,156 | $ 17.90 | $ 175,911 | |||||
Granted at fair value | - | - | ||||||
Exercised | -24,780 | 12.25 | 88,607 | |||||
Expired | - | |||||||
Forfeited | -3,317 | 18.25 | ||||||
Outstanding at December 31, 2012 | 236,059 | $ 18.49 | $ 164,304 | 1.0 | ||||
Exercisable at December 31, 2012 | 236,059 | $ 18.49 | $ 164,304 | 1.0 | ||||
Options outstanding are all currently exercisable and are summarized as follows: | ||||||||
Shares Outstanding | Weighted Average | Weighted Average | ||||||
30-Sep-13 | Remaining Contractual Life | Exercise Price | ||||||
39,668 | 1 years | $ | 12.97 | |||||
78,831 | 2 years | 15.89 | ||||||
80,138 | 3 years | 22.29 | ||||||
21,411 | 4 years | 27.7 | ||||||
220,048 | $ | 18.84 | ||||||
The aggregate intrinsic value of outstanding stock options and exercisable stock options was $478,620 and $164,304 at September 30, 2013 and December 31, 2012, respectively. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $18.95 and $15.98 per share at September 30, 2013 and December 31, 2012, respectively, and the exercise price multiplied by the number of options outstanding. | ||||||||
The Company has outstanding restricted stock and stock units granted in accordance with the Plan. The following tables summarize the unvested restricted stock awards and units outstanding at September 30, 2013 and December 31, 2012, respectively. | ||||||||
Restricted Stock | Restricted Stock Units | |||||||
Number of Shares | Weighted | Number of Units | Fair Value | |||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Nonvested at December 31, 2012 | 23,569 | $ 15.64 | 5,211 | $ 15.98 | ||||
Granted | 13,656 | 18.00 | 2,105 | 16.87 | ||||
Vested | -16,678 | 16.35 | -3,106 | 15.98 | ||||
Nonvested at September 30, 2013 | 20,547 | $ 16.63 | 4,210 | $ 18.95 | ||||
Restricted Stock | Restricted Stock Units | |||||||
Number of Shares | Weighted | Number of Units | Fair Value | |||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Nonvested at January 1, 2012 | 8,113 | $ 16.47 | 6,845 | $ 15.00 | ||||
Granted | 23,281 | 15.21 | 2,105 | 15.98 | ||||
Vested | -7,825 | 15.20 | -3,739 | 14.80 | ||||
Nonvested at December 31, 2012 | 23,569 | $ 15.64 | 5,211 | $ 15.98 | ||||
GUARANTEED_PREFERRED_BENEFICIA
GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (TRUPs) | 9 Months Ended | ||
Sep. 30, 2013 | |||
GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES [Abstract] | ' | ||
GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES | ' | ||
7 | GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) | ||
On June 15, 2005, Tri-County Capital Trust II (“Capital Trust II”), a Delaware business trust formed, funded and wholly owned by the Company, issued $5,000,000 of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 1.70%. The Trust used the proceeds from this issuance, along with the $155,000 for Capital Trust II’s common securities, to purchase $5,155,000 of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These capital securities qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust II and the junior subordinated debentures are scheduled to mature on June 15, 2035, unless called by the Company. | |||
On July 22, 2004, Tri-County Capital Trust I (“Capital Trust I”), a Delaware business trust formed, funded and wholly owned by the Company, issued $7,000,000 of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 2.60%. The Trust used the proceeds from this issuance, along with the Company’s $217,000 capital contribution for Capital Trust I’s common securities, to purchase $7,217,000 of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These debentures qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust I and the junior subordinated debentures are scheduled to mature on July 22, 2034, unless called by the Company. | |||
PREFERRED_STOCK
PREFERRED STOCK | 9 Months Ended | ||
Sep. 30, 2013 | |||
PREFERRED STOCK [Abstract] | ' | ||
PREFERRED STOCK | ' | ||
8. | PREFERRED STOCK | ||
Small Business Lending Fund Preferred Stock | |||
On September 22, 2011, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with the Secretary of the Treasury (the “Secretary”), pursuant to which the Company issued 20,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), having a liquidation amount per share equal to $1,000, for a total purchase price of $20,000,000. The Purchase Agreement was entered into, and the Series C Preferred Stock was issued, as authorized by the Small Business Lending Fund program. | |||
The Series C Preferred Stock is entitled to receive non-cumulative dividends, payable quarterly. The dividend rate can fluctuate on a quarterly basis during the first 10 quarters during which the Series C Preferred Stock is outstanding, based upon changes in the level of “Qualified Small Business Lending” or “QSBL” (as defined in the Purchase Agreement) by the Bank. Based upon the increase in the Bank’s level of QSBL over the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period was set at one percent (1%). For the second through ninth calendar quarters, the dividend rate may be adjusted to between one percent (1%) and five percent (5%) per annum, to reflect the amount of change in the Bank’s level of QSBL. If the level of the Bank’s qualified small business loans declines so that the percentage increase in QSBL as compared to the baseline level is less than 10%, then the dividend rate payable on the Series C Preferred Stock would increase. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed at between one percent (1%) and seven percent (7%) based upon the increase in QSBL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to nine percent (9%). In addition, beginning on January 1, 2014, and on all Series C Preferred Stock dividend payment dates thereafter ending on April 1, 2016, if the Company had not increased its QSBL from the baseline as of the quarter ending September 30, 2013, the Company would have been required to pay to the Secretary, on each share of Series C Preferred Stock, but only out of assets legally available, a fee equal to 0.5% of the liquidation amount per share of Series C Preferred Stock. At September 30, 2013, the Company had increased its QSBL from the baseline so that the dividend rate should remain at 1% through four and one half years from issuance. | |||
The Series C Preferred Stock is non-voting, except in limited circumstances. If the Company misses five dividend payments, whether or not consecutive, the holder of the Series C Preferred Stock will have the right, but not the obligation, to appoint a representative as an observer on the Company’s Board of Directors. The Series C Preferred Stock may be redeemed at any time at the Company’s option, at a redemption price of 100% of the liquidation amount plus accrued but unpaid dividends to the date of redemption for the current period, subject to the approval of our federal banking regulator. The Company is permitted to repay its SBLF funding in increments of 25% or $5.0 million, subject to the approval of its federal banking regulator. | |||
The Series C Preferred Stock was issued in a private placement exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended. The Company has agreed to register the Series C Preferred Stock under certain circumstances set forth in Annex E to the Purchase Agreement. The Series C Preferred Stock is not subject to any contractual restrictions on transfer. | |||
OTHER_REAL_ESTATE_OWNEDOREO
OTHER REAL ESTATE OWNED("OREO") | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
OTHER REAL ESTATE OWNED ("OREO") [Abstract] | ' | |||||||
OTHER REAL ESTATE OWNED ("OREO") | ' | |||||||
9 | OTHER REAL ESTATE OWNED (“OREO”) | |||||||
OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of the activity follows. | ||||||||
Nine Months Ended September 30, | Year Ended | |||||||
December 31, | ||||||||
2013 | 2012 | 2012 | ||||||
Balance at beginning of year | $ 6,891,353 | $ 5,028,513 | $ 5,028,513 | |||||
Additions of underlying property | 1,390,286 | 2,165,375 | 4,020,494 | |||||
Disposals of underlying property | -722,599 | -441,429 | -1,483,449 | |||||
Valuation allowance | -500,536 | -657,226 | -674,205 | |||||
Balance at end of period | $ 7,058,504 | $ 6,095,233 | $ 6,891,353 | |||||
During the nine months ended September 30, 2013, the Bank recognized $215,345 in gains on the sale of OREO which consisted of the sale of four properties for net proceeds of $712,944 and net losses of $9,655 and the recognition of $225,000 of previously deferred gain from the sale of an OREO property that the Bank financed during 2011 that did not initially qualify for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition. During the nine months ended September 30, 2012, the Bank disposed of three OREO properties resulting in proceeds of $344,512 and recognized net losses of $96,917. | ||||||||
Expenses applicable to OREO assets include the following. | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Valuation allowance | $ 170,560 | $ 31,050 | $ 500,536 | $ 657,226 | ||||
Operating expenses | 41,080 | 54,529 | 105,168 | 85,374 | ||||
$ 211,640 | $ 85,579 | $ 605,704 | $ 742,600 | |||||
Operating expenses for the nine months ended September 30, 2012 included $7,600 in deposits refunded on sold foreclosed real estate. | ||||||||
SECURITIES
SECURITIES | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
SECURITIES [Abstract] | ' | |||||||||||
SECURITIES | ' | |||||||||||
10 | SECURITIES | |||||||||||
30-Sep-13 | ||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Securities available for sale (AFS) | ||||||||||||
Asset-backed securities issued by GSEs | ||||||||||||
Residential MBS | $ 181,968 | $ 16,745 | $ - | $ 198,713 | ||||||||
Residential CMOs | 47,721,616 | 75,448 | 1,326,064 | 46,471,000 | ||||||||
Corporate equity securities | 37,310 | 1,572 | 184 | 38,698 | ||||||||
Bond mutual funds | 4,078,129 | 82,950 | - | 4,161,079 | ||||||||
Total securities available for sale | $ 52,019,023 | $ 176,715 | $ 1,326,248 | $ 50,869,490 | ||||||||
Securities held to maturity (HTM) | ||||||||||||
Asset-backed securities issued by GSEs: | ||||||||||||
Residential MBS | $ 23,722,148 | $ 684,723 | $ 186,163 | $ 24,220,708 | ||||||||
Residential CMOs | 63,583,106 | 385,242 | 864,471 | 63,103,877 | ||||||||
Asset-backed securities issued by Others: | ||||||||||||
Residential CMOs | 3,294,474 | 100,907 | 418,975 | 2,976,406 | ||||||||
Total debt securities held to maturity | 90,599,728 | 1,170,872 | 1,469,609 | 90,300,991 | ||||||||
U.S. government obligations | 749,887 | 75 | - | 749,962 | ||||||||
Total securities held to maturity | $ 91,349,615 | $ 1,170,947 | $ 1,469,609 | $ 91,050,953 | ||||||||
31-Dec-12 | ||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Securities available for sale (AFS) | ||||||||||||
Asset-backed securities issued by GSEs | ||||||||||||
Residential MBS | $ 198,400 | $ 32,986 | $ - | $ 231,386 | ||||||||
Residential CMOs | 42,507,542 | 266,775 | 118,518 | 42,655,799 | ||||||||
Corporate equity securities | 37,310 | 306 | 284 | 37,332 | ||||||||
Bond mutual funds | 4,012,609 | 268,537 | - | 4,281,146 | ||||||||
Total securities available for sale | $ 46,755,861 | $ 568,604 | $ 118,802 | $ 47,205,663 | ||||||||
Securities held to maturity (HTM) | ||||||||||||
Asset-backed securities issued by GSEs: | ||||||||||||
Residential MBS | $ 31,239,176 | $ 1,237,277 | $ - | $ 32,476,453 | ||||||||
Residential CMOs | 76,191,199 | 715,620 | 97,998 | 76,808,821 | ||||||||
Asset-backed securities issued by Others: | - | |||||||||||
Residential CMOs | 4,439,118 | 197,028 | 484,343 | 4,151,803 | ||||||||
Total debt securities held to maturity | 111,869,493 | 2,149,925 | 582,341 | 113,437,077 | ||||||||
U.S. government obligations | 749,941 | - | - | 749,941 | ||||||||
Total securities held to maturity | $ 112,619,434 | $ 2,149,925 | $ 582,341 | $ 114,187,018 | ||||||||
At September 30, 2013, certain asset-backed securities with an aggregate carrying value of $36.7 million were pledged to secure certain deposits. At September 30, 2013, asset-backed securities with an aggregate carrying value of $2.9 million were pledged as collateral for advances from the Federal Home Loan Bank of Atlanta. | ||||||||||||
At September 30, 2013, 98% of the asset-backed securities portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by GSEs had an average life of 5.12 years and an average duration of 4.68 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs had an average life of 5.54 years and an average duration of 5.14 years and are guaranteed by their issuer as to credit risk. | ||||||||||||
At December 31, 2012, 97% of the asset-backed securities portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by GSEs had an average life of 3.43 years and average duration of 3.26 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs had an average life of 3.43 years and average duration of 3.24 years and are guaranteed by their issuer as to credit risk. | ||||||||||||
We believe that AFS securities with unrealized losses will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. We believe that the losses are the result of general perceptions of safety and creditworthiness of the entire sector and a general disruption of orderly markets in the asset class. | ||||||||||||
Management has the ability and intent to hold the HTM securities with unrealized losses until they mature, at which time the Company will receive full value for the securities. Because our intention is not to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, management considers the unrealized losses in the held-to-maturity portfolio to be temporary. | ||||||||||||
No charges related to other-than-temporary impairment were made during the three and nine months ended September 30, 2013 and for the year ended December 31, 2012. During the year ended December 31, 2009, the Company recorded a charge of $148,000 related to other-than-temporary impairment on a single HTM CMO issue. At September 30, 2013, the CMO issue had a par value of $889,000, a market fair value of $611,000 and a carrying value of $511,000. | ||||||||||||
During the fourth quarter of the year ended December 31, 2012, the Company recognized net losses on the sale of securities of $3,736. The Company sold one AFS security with a carrying value of $1,469,911 and three HTM securities with aggregate carrying values of $3,796,011, recognizing a gain of $153,417 and losses of $157,153, respectively. The sale of HTM securities was permitted under ASC 320 “Investments - Debt and Equity Securities.” ASC 320-10-25-6 permits the sale of HTM securities for certain changes in circumstances. The Company sold the HTM positions due to a significant deterioration in the issues’ creditworthiness and the increase in regulatory risk weights mandated for risk-based capital purposes. There were no sales of AFS and HTM securities during the three and nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||
AFS Securities | ||||||||||||
Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at September 30, 2013 are as follows: | ||||||||||||
30-Sep-13 | Less Than 12 | More Than 12 | ||||||||||
Months | Months | Total | ||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | |||||||
Asset-backed securities | $ 33,460,034 | $ 1,098,769 | $ 5,623,802 | $ 227,295 | $ 39,083,836 | $ 1,326,064 | ||||||
issued by GSEs | ||||||||||||
Corporate equity securities | 126 | 184 | - | - | 126 | 184 | ||||||
$ 33,460,160 | $ 1,098,953 | $ 5,623,802 | $ 227,295 | $ 39,083,962 | $ 1,326,248 | |||||||
At September 30, 2013, the AFS investment portfolio had an estimated fair value of $50,869,490, of which $39,083,962 or 77% of the securities had some unrealized losses from their amortized cost. The securities with unrealized losses are predominantly mortgage-backed securities issued by GSEs. | ||||||||||||
AFS securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $1,326,064 or 2.77% of the portfolio amortized cost of $47,903,584. AFS asset-backed securities issued by GSEs with unrealized losses have an average life of 5.22 years and an average duration of 4.74 years. We believe that the securities will either recover in market value or be paid off as agreed. | ||||||||||||
At December 31, 2012, the AFS investment portfolio had a fair value of $47,205,663 with unrealized losses from their amortized cost of $118,802. Asset-backed securities and corporate securities with unrealized losses had a fair value of $11,956,182 and all unrealized losses were for less than twelve months. | ||||||||||||
HTM Securities | ||||||||||||
Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at September 30, 2013 are as follows: | ||||||||||||
30-Sep-13 | Less Than 12 | More Than 12 | ||||||||||
Months | Months | Total | ||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | |||||||
Asset-backed securities | $ 41,773,548 | $ 1,029,248 | $ 3,300,948 | $ 21,386 | $ 45,074,496 | $ 1,050,634 | ||||||
issued by GSEs | ||||||||||||
Asset-backed securities | - | - | 2,258,562 | 418,975 | 2,258,562 | 418,975 | ||||||
issued by other | ||||||||||||
$ 41,773,548 | $ 1,029,248 | $ 5,559,510 | $ 440,362 | $ 47,333,058 | $ 1,469,609 | |||||||
At September 30, 2013, the HTM investment portfolio had an estimated fair value of $91,050,953, of which $47,333,058 or 52%, of the securities had some unrealized losses from their amortized cost. Of these securities, $45,074,496 or 95%, are mortgage-backed securities issued by GSEs and the remaining $2,258,562 or 5%, were asset-backed securities issued by others. | ||||||||||||
HTM securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $1,050,634 or 1.20% of the portfolio amortized cost of $87,305,254. HTM asset-backed securities issued by GSEs with unrealized losses have an average life of 6.02 years and an average duration of 5.56 years. We believe that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. | ||||||||||||
HTM asset-backed securities issued by others are collateralized mortgage obligation securities. All of the securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. Total unrealized losses on the asset-backed securities issued by others were $418,975, or 12.72% of the portfolio amortized cost of $3,294,474. HTM asset-backed securities issued by others with unrealized losses have an average life of 4.24 years and an average duration of 3.27 years. | ||||||||||||
Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2012 are as follows: | ||||||||||||
31-Dec-12 | Less Than 12 | More Than 12 | ||||||||||
Months | Months | Total | ||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | |||||||
Asset-backed securities | $ 14,253,558 | $ 89,638 | $ 6,132,036 | $ 8,360 | $ 20,385,594 | $ 97,998 | ||||||
issued by GSEs | ||||||||||||
Asset-backed securities | - | - | 3,057,666 | 484,343 | 3,057,666 | 484,343 | ||||||
issued by other | ||||||||||||
$ 14,253,558 | $ 89,638 | $ 9,189,702 | $ 492,703 | $ 23,443,260 | $ 582,341 | |||||||
At December 31, 2012, the HTM investment portfolio had an estimated fair value of $114,187,018, of which $23,443,260, or 21% of the securities, had some unrealized losses from their amortized cost. Of these securities, $20,385,594, or 87%, are mortgage-backed securities issued by GSEs and the remaining $3,057,666, or 13%, were asset-backed securities issued by others. | ||||||||||||
HTM securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $97,998 or 0.09% of the portfolio amortized cost of $107,430,375. HTM asset-backed securities issued by GSEs with unrealized losses have an average life of 1.85 years and an average duration of 1.72 years. We believe that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. | ||||||||||||
HTM asset-backed securities issued by others are collateralized mortgage obligation securities. All of the securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. Total unrealized losses on the asset-backed securities issued by others were $484,343, or 10.91% of the portfolio amortized cost of $4,439,118. HTM asset-backed securities issued by others with unrealized losses have an average life of 3.17 years and an average duration of 2.40 years. | ||||||||||||
Credit Quality of Asset-Backed Securities | ||||||||||||
The tables below present the Standard & Poor’s or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities issued by GSEs and others at September 30, 2013 and December 31, 2012 by carrying value. The Company considers noninvestment grade securities rated BB+ or lower as classified assets for regulatory and financial reporting. GSE asset-backed security downgrades by Standard and Poor’s were treated as AAA based on regulatory guidance. | ||||||||||||
30-Sep-13 | December 31. 2012 | |||||||||||
Credit Rating | Amount | Credit Rating | Amount | |||||||||
AAA | $ 133,974,968 | AAA | $ 150,317,560 | |||||||||
A+ | - | A+ | - | |||||||||
A | - | A | 110,780 | |||||||||
BBB | 635,920 | BBB | 978,043 | |||||||||
BBB- | 106,045 | BBB- | 322,329 | |||||||||
BB+ | - | BB+ | - | |||||||||
BB | 836,679 | BB | 1,069,517 | |||||||||
BB- | - | BB- | 68,604 | |||||||||
B+ | 66,873 | B+ | 1,008,126 | |||||||||
CCC+ | 874,410 | CCC+ | - | |||||||||
CCC | 774,547 | CCC | 881,719 | |||||||||
Total | $ 137,269,442 | Total | $ 154,756,678 | |||||||||
LOANS
LOANS | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
LOANS [Abstract] | ' | |||||||||||||||||
LOANS | ' | |||||||||||||||||
11 | LOANS | |||||||||||||||||
Loans consist of the following: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Commercial real estate | $ 445,662,038 | $ 419,667,312 | ||||||||||||||||
Residential first mortgages | 161,861,710 | 177,663,354 | ||||||||||||||||
Construction and land development | 31,113,145 | 31,818,782 | ||||||||||||||||
Home equity and second mortgages | 21,711,980 | 21,982,375 | ||||||||||||||||
Commercial loans | 86,504,220 | 88,157,606 | ||||||||||||||||
Consumer loans | 901,800 | 995,206 | ||||||||||||||||
Commercial equipment | 21,085,197 | 16,267,684 | ||||||||||||||||
768,840,090 | 756,552,319 | |||||||||||||||||
Less: | ||||||||||||||||||
Deferred loan fees | 880,086 | 664,610 | ||||||||||||||||
Allowance for loan loss | 8,079,277 | 8,246,957 | ||||||||||||||||
8,959,363 | 8,911,567 | |||||||||||||||||
$ 759,880,727 | $ 747,640,752 | |||||||||||||||||
At September 30, 2013, the Bank’s allowance for loan losses totaled $8,079,277, or 1.05% of loan balances, as compared to $8,246,957, or 1.09% of loan balances, at December 31, 2012. Management’s determination of the adequacy of the allowance is based on a periodic evaluation of the portfolio with consideration given to the overall loss experience, current economic conditions, size, growth and composition of the loan portfolio, financial condition of the borrowers and other relevant factors that, in management’s judgment, warrant recognition in providing an adequate allowance. | ||||||||||||||||||
At December 31, 2012, gross loans included $1,454,757 from the sales of OREO property that the Bank financed during 2011 that did not qualify for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”. The deferred gain balance was $225,000 at December 31, 2012. The Bank recognized the deferred gain of $225,000 during the three months ended September 30, 2013 as the transaction qualified for full accrual sales treatment under ASC Topic 360-20-40. | ||||||||||||||||||
Risk Characteristics of Portfolio Segments | ||||||||||||||||||
The Company manages its credit products and exposure to credit losses (credit risk) by the following specific portfolio segments (classes), which are levels at which the Company develops and documents its allowance for loan loss methodology. These segments are: | ||||||||||||||||||
Commercial Real Estate (“CRE”) | ||||||||||||||||||
Commercial and other real estate projects include office buildings, retail locations, churches, other special purpose buildings and commercial construction. Commercial construction balances were below 5% of the CRE portfolio at September 30, 2013 and December 31, 2012. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. The primary security on a commercial real estate loan is the real property and the leases that produce income for the real property. The Bank generally limits its exposure to a single borrower to 15% of the Bank’s capital. Loans secured by commercial real estate are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three to 20 years. | ||||||||||||||||||
Loans secured by commercial real estate are larger and involve greater risks than one-to-four family residential mortgage loans. Because payments on loans secured by such properties are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. | ||||||||||||||||||
Residential First Mortgages | ||||||||||||||||||
Residential first mortgage loans made by the Bank are generally long term loans, amortized on a monthly basis, with principal and interest due each month. The initial contractual loan payment period for residential loans typically ranges from ten to 30 years. The Bank’s experience indicates that real estate loans remain outstanding for significantly shorter time periods than their contractual terms. Borrowers may refinance or prepay loans at their option, without penalty. The Bank originates both fixed-rate and adjustable-rate residential first mortgages. | ||||||||||||||||||
The annual and lifetime limitations on interest rate adjustments may limit the increases in interest rates on these loans. There are also unquantifiable credit risks resulting from potential increased costs to the borrower as a result of repricing of adjustable-rate mortgage loans. During periods of rising interest rates, the risk of default on adjustable-rate mortgage loans may increase due to the upward adjustment of interest cost to the borrower. | ||||||||||||||||||
Construction and Land Development | ||||||||||||||||||
The Bank offers loans for the construction of one-to-four family dwellings. Generally, these loans are secured by the real estate under construction as well as by guarantees of the principals involved. In addition, the Bank offers loans to acquire and develop land, as well as loans on undeveloped, subdivided lots for home building by individuals. | ||||||||||||||||||
A decline in demand for new housing might adversely affect the ability of borrowers to repay these loans. Construction and land development loans are inherently riskier than providing financing on owner-occupied real estate. The Bank’s risk of loss is affected by the accuracy of the initial estimate of the market value of the completed project as well as the accuracy of the cost estimates made to complete the project. In addition, the volatility of the real estate market has made it increasingly difficult to ensure that the valuation of land associated with these loans is accurate. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, the Bank may be required to advance funds beyond the amount originally committed to permit completion of the development. If the estimate of value proves to be inaccurate, a project’s value might be insufficient to assure full repayment. As a result of these factors, construction lending often involves the disbursement of substantial funds with repayment dependent, in part, on the success of the project rather than the ability of the borrower or guarantor to repay principal and interest. If the Bank forecloses on a project, there can be no assurance that the Bank will be able to recover all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs. | ||||||||||||||||||
Home Equity and Second Mortgage Loans | ||||||||||||||||||
The Bank maintains a portfolio of home equity and second mortgage loans. These products contain a higher risk of default than residential first mortgages as in the event of foreclosure, the first mortgage would need to be paid off prior to collection of the second mortgage. This risk has been heightened as the market value of residential property has declined. | ||||||||||||||||||
Commercial Loans | ||||||||||||||||||
The Bank offers commercial loans to its business customers. The Bank offers a variety of commercial loan products including term loans and lines of credit. Such loans are generally made for terms of five years or less. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. When making commercial business loans, the Bank considers the financial condition of the borrower, the borrower’s payment history of both corporate and personal debt, the projected cash flows of the business, the viability of the industry in which the consumer operates, the value of the collateral, and the borrower’s ability to service the debt from income. These loans are primarily secured by equipment, real property, accounts receivable, or other security as determined by the Bank. | ||||||||||||||||||
Commercial loans are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. | ||||||||||||||||||
Consumer Loans | ||||||||||||||||||
The Bank has developed a number of programs to serve the needs of its customers with primary emphasis upon loans secured by automobiles, boats, recreational vehicles and trucks. The Bank also makes home improvement loans and offers both secured and unsecured personal lines of credit. Consumer loans entail greater risk from other loan types due to being secured by rapidly depreciating assets or the reliance on the borrower’s continuing financial stability. | ||||||||||||||||||
Commercial Equipment Loans | ||||||||||||||||||
These loans consist primarily of fixed-rate, short-term loans collateralized by a commercial customer’s equipment. When making commercial equipment loans, the Bank considers the same factors it considers when underwriting a commercial business loan. Commercial loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. In the case of business failure, collateral would need to be liquidated to provide repayment for the loan. In many cases, the highly specialized nature of collateral equipment would make full recovery from the sale of collateral problematic. | ||||||||||||||||||
Non-accrual and Past Due Loans | ||||||||||||||||||
Non-accrual loans as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||
90 or Greater | Number | Non-accrual Performing Loans | Number | Total Dollars | Total Number | |||||||||||||
Days Delinquent | of Loans | of Loans | of Loans | |||||||||||||||
Commercial real estate | $ 2,947,607 | 9 | $ 3,728,175 | 2 | $ 6,675,782 | 11 | ||||||||||||
Residential first mortgages | 2,155,122 | 7 | 565,802 | 3 | 2,720,924 | 10 | ||||||||||||
Commercial loans | 5,670,331 | 10 | - | - | 5,670,331 | 10 | ||||||||||||
Consumer loans | - | - | 31,935 | 1 | 31,935 | 1 | ||||||||||||
Commercial equipment | 316,662 | 5 | - | - | 316,662 | 5 | ||||||||||||
$ 11,089,722 | 31 | $ 4,325,912 | 6 | $ 15,415,634 | 37 | |||||||||||||
31-Dec-12 | ||||||||||||||||||
90 or Greater | Number | Non-accrual Performing Loans | Number | Total Dollars | Total Number | |||||||||||||
Days Delinquent | of Loans | of Loans | of Loans | |||||||||||||||
Commercial real estate | $ 1,527,844 | 7 | $ 3,802,947 | 2 | $ 5,330,791 | 9 | ||||||||||||
Residential first mortgages | 3,169,404 | 10 | 569,693 | 3 | 3,739,097 | 13 | ||||||||||||
Home equity and second mortgages | 71,296 | 2 | - | - | 71,296 | 2 | ||||||||||||
Commercial loans | 3,732,090 | 11 | - | - | 3,732,090 | 11 | ||||||||||||
Consumer loans | - | - | 51,748 | 1 | 51,748 | 1 | ||||||||||||
Commercial equipment | 216,383 | 4 | - | - | 216,383 | 4 | ||||||||||||
$ 8,717,017 | 34 | $ 4,424,388 | 6 | $ 13,141,405 | 40 | |||||||||||||
The Bank categorized six performing loans totaling $4,325,912 and $4,424,388 as non-accrual loans at September 30, 2013 and December 31, 2012, respectively. These six loans represent one well-secured commercial relationship with no specific reserves in the allowance due to the Bank's superior credit position with underlying collateral, which consists primarily of commercial real estate. As of September 30, 2013, the Bank had received all scheduled interest and principal payments on this relationship. It is management’s belief that there is no current risk of loss to the Bank for this relationship. These loans were classified as non-accrual loans due to the customer’s operating results. In accordance with the Company’s policy, interest income is recognized on a cash-basis for these loans. | ||||||||||||||||||
Non-accrual loans on which the recognition of interest has been discontinued, which did not have a specific allowance for impairment, amounted to $12,932,327 and $11,371,542 at September 30, 2013 and December 31, 2012, respectively. Interest due but not recognized on these balances at September 30, 2013 and December 31, 2012 was $432,916 and $443,856, respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $2,483,307 and $1,769,863 at September 30, 2013 and December 31, 2012, respectively. Interest due but not recognized on these balances at September 30, 2013 and December 31, 2012 was $180,751 and $182,106, respectively. | ||||||||||||||||||
An analysis of past due loans as of September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||
30-Sep-13 | Current | 31-60 | 61-89 | 90 or Greater | Total | Total | ||||||||||||
Days | Days | Days | Past Due | Loan | ||||||||||||||
Receivables | ||||||||||||||||||
Commercial real estate | $ 440,735,812 | $ - | $ 1,978,619 | $ 2,947,607 | $ 4,926,226 | $ 445,662,038 | ||||||||||||
Residential first mortgages | 159,568,816 | - | 137,772 | 2,155,122 | 2,292,894 | 161,861,710 | ||||||||||||
Construction and land dev. | 30,786,474 | 326,671 | - | - | 326,671 | 31,113,145 | ||||||||||||
Home equity and second mortgages | 21,388,847 | 199,217 | 123,916 | - | 323,133 | 21,711,980 | ||||||||||||
Commercial loans | 80,633,889 | 200,000 | - | 5,670,331 | 5,870,331 | 86,504,220 | ||||||||||||
Consumer loans | 898,574 | 3,226 | - | - | 3,226 | 901,800 | ||||||||||||
Commercial equipment | 20,730,853 | 37,682 | - | 316,662 | 354,344 | 21,085,197 | ||||||||||||
Total | $ 754,743,265 | $ 766,796 | $ 2,240,307 | $ 11,089,722 | $ 14,096,825 | $ 768,840,090 | ||||||||||||
31-Dec-12 | ||||||||||||||||||
Commercial real estate | $ 416,721,658 | $ - | $ 1,417,810 | $ 1,527,844 | $ 2,945,654 | $ 419,667,312 | ||||||||||||
Residential first mortgages | 173,593,886 | 97,307 | 802,757 | 3,169,404 | 4,069,468 | 177,663,354 | ||||||||||||
Construction and land dev. | 31,818,782 | - | - | - | - | 31,818,782 | ||||||||||||
Home equity and second mortgages | 21,499,018 | 350,715 | 61,346 | 71,296 | 483,357 | 21,982,375 | ||||||||||||
Commercial loans | 84,384,426 | - | 41,090 | 3,732,090 | 3,773,180 | 88,157,606 | ||||||||||||
Consumer loans | 983,094 | 9,363 | 2,749 | - | 12,112 | 995,206 | ||||||||||||
Commercial equipment | 15,659,007 | 371,921 | 20,373 | 216,383 | 608,677 | 16,267,684 | ||||||||||||
Total | $ 744,659,871 | $ 829,306 | $ 2,346,125 | $ 8,717,017 | $ 11,892,448 | $ 756,552,319 | ||||||||||||
There were no accruing loans 90 days or greater past due at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||
The following tables detail activity in the allowance for loan losses at and for the three and nine months ended September 30, 2013 and September 30, 2012, respectively, and the year ended December 31, 2012 and loan receivable balances at September 30, 2013 and September 30, 2012, respectively, and at December 31, 2012. An allocation of the allowance to one category of loans does not prevent the Company’s ability to utilize the allowance to absorb losses in a different category. The loan receivables are disaggregated on the basis of the Company’s impairment methodology. | ||||||||||||||||||
Commercial | Residential First Mortgage | Construction and Land | Home Equity and Second Mtg. | Commercial Loans | Consumer | Commercial Equipment | Total | |||||||||||
Real Estate | Development | Loans | ||||||||||||||||
At and For the Three Months Ended September 30, 2013 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at July 1, | $ 3,358,001 | $ 1,960,882 | $ 600,525 | $ 364,281 | $ 1,519,332 | $ 13,972 | $ 216,560 | $ 8,033,553 | ||||||||||
Charge-offs | -140,048 | -80,110 | -50 | -155 | -28,576 | -1,012 | -31 | -249,982 | ||||||||||
Recoveries | - | 154 | - | - | 168 | 28 | 9,746 | 10,096 | ||||||||||
Provisions | 311,035 | -177,787 | -131,581 | -45,812 | 272,009 | 1,539 | 56,207 | 285,610 | ||||||||||
Balance at September 30, | $ 3,528,988 | $ 1,703,139 | $ 468,894 | $ 318,314 | $ 1,762,933 | $ 14,527 | $ 282,482 | $ 8,079,277 | ||||||||||
At and For the Nine Months Ended September 30, 2013 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at January 1, | $ 4,089,834 | $ 1,083,228 | $ 533,430 | $ 279,819 | $ 1,949,024 | $ 19,341 | $ 292,281 | $ 8,246,957 | ||||||||||
Charge-offs | -140,048 | -139,048 | -36,012 | -111,038 | -434,149 | -10,003 | -22,008 | -892,306 | ||||||||||
Recoveries | - | 11,054 | - | - | 12,059 | 2,010 | 59,293 | 84,416 | ||||||||||
Provisions | -420,798 | 747,905 | -28,524 | 149,533 | 235,999 | 3,179 | -47,084 | 640,210 | ||||||||||
Balance at September 30, | $ 3,528,988 | $ 1,703,139 | $ 468,894 | $ 318,314 | $ 1,762,933 | $ 14,527 | $ 282,482 | $ 8,079,277 | ||||||||||
Ending balance: individually | $ 559,333 | $ 170,741 | $ - | $ - | $ 291,821 | $ - | $ 22,875 | $ 1,044,770 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 2,969,655 | $ 1,532,398 | $ 468,894 | $ 318,314 | $ 1,471,112 | $ 14,527 | $ 259,607 | $ 7,034,507 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Loan receivables: | ||||||||||||||||||
Ending balance | $ 445,662,038 | $ 161,861,710 | $ 31,113,145 | $ 21,711,980 | $ 86,504,220 | $ 901,800 | $ 21,085,197 | $ 768,840,090 | ||||||||||
Ending balance: individually | $ 19,856,516 | $ 3,882,548 | $ 5,349,737 | $ 58,000 | $ 11,054,771 | $ 31,935 | $ 316,662 | $ 40,550,169 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 425,805,522 | $ 157,979,162 | $ 25,763,408 | $ 21,653,980 | $ 75,449,449 | $ 869,865 | $ 20,768,535 | $ 728,289,921 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Commercial | Residential First Mortgage | Construction and Land | Home Equity and Second Mtg. | Commercial Loans | Consumer | Commercial Equipment | Total | |||||||||||
Real Estate | Development | Loans | ||||||||||||||||
At and For the Year Ended | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at January 1, | $ 2,525,199 | $ 539,205 | $ 354,385 | $ 143,543 | $ 3,850,294 | $ 19,119 | $ 223,296 | $ 7,655,041 | ||||||||||
Charge-offs | -486,431 | -10,987 | -140,835 | -210,753 | -1,003,824 | -4,994 | -168,802 | -2,026,626 | ||||||||||
Recoveries | - | 37,524 | - | - | 51,350 | 987 | - | 89,861 | ||||||||||
Provisions | 2,051,066 | 517,486 | 319,880 | 347,029 | -948,796 | 4,229 | 237,787 | 2,528,681 | ||||||||||
Balance at December 31, | $ 4,089,834 | $ 1,083,228 | $ 533,430 | $ 279,819 | $ 1,949,024 | $ 19,341 | $ 292,281 | $ 8,246,957 | ||||||||||
Ending balance: individually | $ 785,878 | $ 403,475 | $ - | $ - | $ 353,883 | $ - | $ 4,421 | $ 1,547,657 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 3,303,956 | $ 679,753 | $ 533,430 | $ 279,819 | $ 1,595,141 | $ 19,341 | $ 287,860 | $ 6,699,300 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Loan receivables: | ||||||||||||||||||
Ending balance | $ 419,667,312 | $ 177,663,354 | $ 31,818,782 | $ 21,982,375 | $ 88,157,606 | $ 995,206 | $ 16,267,684 | $ 756,552,319 | ||||||||||
Ending balance: individually | $ 21,618,890 | $ 3,367,827 | $ 4,877,868 | $ 291,000 | $ 8,778,681 | $ 51,748 | $ 4,421 | $ 38,990,435 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 398,048,422 | $ 174,295,527 | $ 26,940,914 | $ 21,691,375 | $ 79,378,925 | $ 943,458 | $ 16,263,263 | $ 717,561,884 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Commercial | Residential First Mortgage | Construction and Land | Home Equity and Second Mtg. | Commercial Loans | Consumer | Commercial Equipment | Total | |||||||||||
Real Estate | Development | Loans | ||||||||||||||||
At and For the Three Months Ended September 30, 2012 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at July 1, | $ 3,478,458 | $ 901,505 | $ 596,854 | $ 212,791 | $ 1,968,491 | $ 18,316 | $ 287,722 | $ 7,464,137 | ||||||||||
Charge-offs | -50,034 | -10,991 | -5,995 | -46,989 | -413 | - | -90 | -114,512 | ||||||||||
Recoveries | - | 429 | - | - | 23 | - | - | 452 | ||||||||||
Provisions | 683,311 | -3,991 | 40,378 | 18,402 | -14,062 | 1,505 | 20,532 | 746,075 | ||||||||||
Balance at September 30, | $ 4,111,735 | $ 886,952 | $ 631,237 | $ 184,204 | $ 1,954,039 | $ 19,821 | $ 308,164 | $ 8,096,152 | ||||||||||
At and For the Nine Months Ended September 30, 2012 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at January 1, | $ 2,525,199 | $ 539,205 | $ 354,385 | $ 143,543 | $ 3,850,294 | $ 19,119 | $ 223,296 | $ 7,655,041 | ||||||||||
Charge-offs | -171,867 | -10,991 | -5,995 | -88,931 | -693,461 | -999 | -149,884 | -1,122,128 | ||||||||||
Recoveries | - | 37,676 | - | - | 1,983 | - | - | 39,659 | ||||||||||
Provisions | 1,758,403 | 321,062 | 282,847 | 129,592 | -1,204,777 | 1,701 | 234,752 | 1,523,580 | ||||||||||
Balance at September 30, | $ 4,111,735 | $ 886,952 | $ 631,237 | $ 184,204 | $ 1,954,039 | $ 19,821 | $ 308,164 | $ 8,096,152 | ||||||||||
Ending balance: individually | $ 1,122,590 | $ 247,541 | $ 134,500 | $ 21,855 | $ 499,654 | $ - | $ 4,715 | $ 2,030,855 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 2,989,145 | $ 639,411 | $ 496,737 | $ 162,349 | $ 1,454,385 | $ 19,821 | $ 303,449 | $ 6,065,297 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Loan receivables: | ||||||||||||||||||
Ending balance | $ 406,261,770 | $ 176,825,516 | $ 31,639,206 | $ 21,940,441 | $ 86,057,488 | $ 1,047,046 | $ 17,246,112 | $ 741,017,579 | ||||||||||
Ending balance: individually | $ 23,039,920 | $ 4,011,851 | $ 5,217,025 | $ 293,855 | $ 12,972,808 | $ 60,925 | $ 4,715 | $ 45,601,099 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 383,221,850 | $ 172,813,665 | $ 26,422,181 | $ 21,646,586 | $ 73,084,680 | $ 986,121 | $ 17,241,397 | $ 695,416,480 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||
A risk grading scale is used to assign grades to commercial real estate, construction and land development, commercial loans and commercial equipment loans. Loans are graded at inception, annually thereafter when financial statements are received and at other times when there is an indication that a credit may have weakened or improved. Only commercial loan relationships with an aggregate exposure to the Bank of $750,000 or greater are subject to being risk rated. | ||||||||||||||||||
Residential first mortgages, home equity and second mortgages and consumer loans are evaluated for creditworthiness in underwriting and are monitored based on borrower payment history. These loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are troubled debt restructures or nonperforming loans with an Other Assets Especially Mentioned (“OAEM”) or higher risk rating due to a delinquent payment history. | ||||||||||||||||||
Management regularly reviews credit quality indicators as part of its individual loan reviews and on a monthly and quarterly basis. The overall quality of the Bank’s loan portfolio is assessed using the Bank’s risk grading scale, the level and trends of net charge-offs, nonperforming loans and delinquencies, the performance of troubled debt restructured loans and the general economic conditions in the Company’s geographical market. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators and allowance factors are adjusted based on management’s judgment during the monthly and quarterly review process. | ||||||||||||||||||
Loans subject to risk ratings are graded on a scale of one to ten. The Company considers loans classified substandard, doubtful and loss as classified assets for regulatory and financial reporting. | ||||||||||||||||||
Ratings 1 thru 6 - Pass | ||||||||||||||||||
Ratings 1 thru 6 have asset risks ranging from excellent low risk to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. | ||||||||||||||||||
Rating 7 - OAEM (Other Assets Especially Mentioned) – Special Mention | ||||||||||||||||||
These credits, while protected by the financial strength of the borrowers, guarantors or collateral, have reduced quality due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. OAEM loans are the first adversely classified assets on our watch list. These relationships will be reviewed at least quarterly. | ||||||||||||||||||
Rating 8 - Substandard | ||||||||||||||||||
Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor strength or operating losses. When a loan is assigned to this category the Bank may estimate a specific reserve in the loan loss allowance analysis. These assets listed may include assets with histories of repossessions or some that are non-performing bankruptcies. These relationships will be reviewed at least quarterly. | ||||||||||||||||||
Rating 9 - Doubtful | ||||||||||||||||||
Doubtful assets have many of the same characteristics of Substandard with the exception that the Bank has determined that loss is not only possible but is probable and the risk is close to certain that loss will occur. When a loan is assigned to this category the Bank will identify the probable loss and it will receive a specific reserve in the loan loss allowance analysis. These relationships will be reviewed at least quarterly. | ||||||||||||||||||
Rating 10 - Loss | ||||||||||||||||||
Once an asset is identified as a definite loss to the Bank, it will receive the classification of “loss”. There may be some future potential recovery; however it is more practical to write off the loan at the time of classification. Losses will be taken in the period in which they are determined to be uncollectable. | ||||||||||||||||||
Credit quality indicators as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | ||||||||||||||||||
Commercial Real Estate | Construction and Land Dev. | |||||||||||||||||
9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | |||||||||||||||
Unrated | $ 63,842,162 | $ 59,930,126 | $ 4,339,477 | $ 4,330,321 | ||||||||||||||
Pass | 351,452,830 | 329,882,941 | 18,631,753 | 19,752,749 | ||||||||||||||
Special mention | 5,790,532 | 4,880,758 | - | - | ||||||||||||||
Substandard | 24,576,514 | 24,973,487 | 8,141,915 | 7,735,712 | ||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||
Loss | - | - | - | - | ||||||||||||||
Total | $ 445,662,038 | $ 419,667,312 | $ 31,113,145 | $ 31,818,782 | ||||||||||||||
Commercial Loans | Commercial Equipment | |||||||||||||||||
9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | |||||||||||||||
Unrated | $ 11,401,481 | $ 11,627,726 | $ 5,938,295 | $ 5,082,713 | ||||||||||||||
Pass | 60,365,389 | 64,436,809 | 15,121,129 | 11,180,550 | ||||||||||||||
Special mention | 402,000 | - | 2,898 | - | ||||||||||||||
Substandard | 14,335,350 | 12,093,071 | 22,875 | 4,421 | ||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||
Loss | - | - | - | - | ||||||||||||||
Total | $ 86,504,220 | $ 88,157,606 | $ 21,085,197 | $ 16,267,684 | ||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||||
Residential First Mortgages | Home Equity and Second Mtg. | Consumer Loans | ||||||||||||||||
9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | |||||||||||||
Performing | $ 159,706,588 | $ 174,493,950 | $ 21,711,980 | $ 21,911,079 | $ 901,800 | $ 995,206 | ||||||||||||
Nonperforming | 2,155,122 | 3,169,404 | - | 71,296 | - | - | ||||||||||||
Total | $ 161,861,710 | $ 177,663,354 | $ 21,711,980 | $ 21,982,375 | $ 901,800 | $ 995,206 | ||||||||||||
Impaired Loans and Troubled Debt Restructures (“TDRs”) | ||||||||||||||||||
Impaired loans, including TDRs, at September 30, 2013 and September 30, 2012, respectively, and at December 31, 2012 were as follows: | ||||||||||||||||||
30-Sep-13 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total | Related Allowance | Three Month Average Recorded Investment | Three Month Interest Income Recognized | Nine Month Average Recorded Investment | Nine Month Interest Income Recognized | |||||||||
Recorded Investment | ||||||||||||||||||
Commercial real estate | $ 20,025,629 | $ 15,885,402 | $ 3,971,114 | $ 19,856,516 | $ 559,333 | $ 20,010,465 | $ 207,372 | $ 20,162,244 | $ 631,913 | |||||||||
Residential first mortgages | 3,882,548 | 3,181,637 | 700,911 | 3,882,548 | 170,741 | 3,910,884 | 30,371 | 3,919,666 | 96,616 | |||||||||
Construction and land dev. | 5,349,737 | 5,349,737 | - | 5,349,737 | - | 5,363,126 | 77,157 | 5,311,703 | 223,963 | |||||||||
Home equity and second mtg. | 58,000 | 58,000 | - | 58,000 | - | 120,000 | 1,486 | 216,556 | 6,016 | |||||||||
Commercial loans | 11,054,771 | 10,333,950 | 720,821 | 11,054,771 | 291,821 | 11,028,319 | 66,604 | 10,967,594 | 292,138 | |||||||||
Consumer loans | 31,935 | 31,935 | - | 31,935 | - | 36,393 | 1,112 | 43,199 | 2,759 | |||||||||
Commercial equipment | 335,563 | 293,787 | 22,875 | 316,662 | 22,875 | 336,106 | 1,238 | 350,886 | 7,740 | |||||||||
Total | $ 40,738,183 | $ 35,134,448 | $ 5,415,721 | $ 40,550,169 | $ 1,044,770 | $ 40,805,293 | $ 385,340 | $ 40,971,848 | $ 1,261,145 | |||||||||
31-Dec-12 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||
Recorded Investment | ||||||||||||||||||
Commercial real estate | $ 21,618,890 | $ 18,804,478 | $ 2,814,412 | $ 21,618,890 | $ 785,878 | $ 22,501,842 | $ 1,119,715 | |||||||||||
Residential first mortgages | 3,367,827 | 2,362,062 | 1,005,765 | 3,367,827 | 403,475 | 3,388,867 | 157,595 | |||||||||||
Construction and land dev. | 4,877,868 | 4,877,868 | - | 4,877,868 | - | 4,792,982 | 276,260 | |||||||||||
Home equity and second mtg. | 291,000 | 291,000 | - | 291,000 | - | 221,000 | 6,783 | |||||||||||
Commercial loans | 8,778,681 | 8,330,442 | 448,238 | 8,778,681 | 353,883 | 9,153,074 | 284,095 | |||||||||||
Consumer loans | 51,748 | 51,748 | - | 51,748 | - | 64,459 | 5,284 | |||||||||||
Commercial equipment | 4,421 | - | 4,421 | 4,421 | 4,421 | 5,112 | 318 | |||||||||||
Total | $ 38,990,435 | $ 34,717,598 | $ 4,272,836 | $ 38,990,435 | $ 1,547,657 | $ 40,127,336 | $ 1,850,050 | |||||||||||
30-Sep-12 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total | Related Allowance | Three Month Average Recorded Investment | Three Month Interest Income Recognized | Nine Month Average Recorded Investment | Nine Month Interest Income Recognized | |||||||||
Recorded Investment | ||||||||||||||||||
Commercial real estate | $ 23,497,570 | $ 19,699,656 | $ 3,340,264 | $ 23,039,920 | $ 1,122,590 | $ 23,128,253 | $ 282,740 | $ 23,257,586 | $ 872,500 | |||||||||
Residential first mortgages | 4,011,851 | 2,347,285 | 1,664,567 | 4,011,851 | 247,541 | 4,021,446 | 35,750 | 4,025,659 | 121,746 | |||||||||
Construction and land dev. | 5,217,025 | 5,082,525 | 134,500 | 5,217,025 | 134,500 | 5,145,911 | 90,653 | 5,701,121 | 205,509 | |||||||||
Home equity and second mtg. | 293,855 | 272,000 | 21,855 | 293,855 | 21,855 | 246,399 | 1,870 | 220,572 | 5,373 | |||||||||
Commercial loans | 13,572,808 | 12,196,993 | 775,815 | 12,972,808 | 499,654 | 13,486,660 | 105,044 | 13,871,661 | 321,821 | |||||||||
Consumer loans | 60,925 | 60,925 | - | 60,925 | - | 63,492 | 1,557 | 70,365 | 4,500 | |||||||||
Commercial equipment | 4,715 | - | 4,715 | 4,715 | 4,715 | 4,909 | 83 | 5,309 | 266 | |||||||||
Total | $ 46,658,749 | $ 39,659,384 | $ 5,941,716 | $ 45,601,099 | $ 2,030,855 | $ 46,097,070 | $ 517,697 | $ 47,152,273 | $ 1,531,715 | |||||||||
TDRs, included in the impaired loan schedules above, as of September 30, 2013 and December 31, 2012, respectively were as follows: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Dollars | Number | Dollars | Number | |||||||||||||||
of Loans | of Loans | |||||||||||||||||
Commercial real estate | $ 3,152,197 | 8 | $ 3,097,214 | 7 | ||||||||||||||
Residential first mortgages | 1,485,600 | 4 | 1,418,229 | 3 | ||||||||||||||
$ 4,637,797 | 12 | $ 4,515,443 | 10 | |||||||||||||||
At December 31, 2012, all TDRs were performing according to the terms of their restructured agreements and there were no amounts specifically reserved for TDRs. At September 30, 2013, one TDR loan of $323,976 was over 90 days past due and the specific reserve of the allowance for loan losses was $12,000. Interest income in the amount of $155,812 and $220,326 was recognized on these loans for the nine months ended September 30, 2013 and the year ended December 31, 2012, respectively. | ||||||||||||||||||
During the nine months ended September 30, 2013, the Bank entered into one TDR for $77,165 for a residential first mortgage and one TDR for $60,000 for a commercial real estate mortgage. TDR activity for the nine months ended September 30, 2013 included only two additions to the number of TDRs. During the year ended December 31, 2012, the Bank entered into TDRs for eight commercial real estate loans totaling $3,212,894 and three residential first mortgages totaling $1,419,657. For the year ended December 31, 2012, two commercial real estate TDR loans were charged-off in the amount of $415,995. One of the two charged-off commercial real estate loans was transferred to OREO with a balance of $382,500. | ||||||||||||||||||
LOANS_HELD_FOR_SALE
LOANS HELD FOR SALE | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Loans Held-for-Sale [Abstract] | ' | |||
Loans Held For Sale | ' | |||
12 | LOANS HELD FOR SALE | |||
Residential mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Fair value is derived from secondary market quotations for similar instruments. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | ||||
Residential mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold, using the specific identification method. | ||||
The Company enters into contractual commitments with potential borrowers, including loan commitments and rate-lock commitments for the origination of residential mortgage loans that will be held for sale in the secondary market. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 60 days. These commitments, which contain fixed expiration dates, offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and subsequently closes within the timeframe established by the Company. | ||||
The interest rate-lock commitments are derivative financial instruments. Interest rate risk arises on these commitments and subsequently closed loans held for sale if interest rates change between the time of interest rate-lock and the delivery of the loan to a secondary market investor. To mitigate interest rate risk, the Company sells certain loans forward into the secondary market at a specified price with a specified date on a best efforts basis. These forward sales, which are entered into as a result of an interest rate-lock commitment with the Bank’s customer, are derivative financial instruments. The Company does not recognize gains or losses due to interest rate changes for loans sold forward on a best effort basis. The Bank had no loans held for sale at September 30, 2013 and 2012, respectively. | ||||
NEW_ACCOUNTING_STANDARDS
NEW ACCOUNTING STANDARDS | 9 Months Ended | ||
Sep. 30, 2013 | |||
NEW ACCOUNTING STANDARDS [Abstract] | ' | ||
NEW ACCOUNTING STANDARDS | ' | ||
13 | NEW ACCOUNTING STANDARDS | ||
Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2011-11; “Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities”. ASU 2011-11 amends Topic 210 “Balance Sheet,” to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements, borrowing/lending arrangements and derivative instruments with a right of offset. ASU 2011-11 was effective for the Company beginning on January 1, 2013 and did have a material impact on the Company’s consolidated financial statements. | |||
ASU 2013-02 – Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The new guidance requires the presentation of significant amounts reclassified in a separate footnote and cross referencing to related footnote disclosures, if applicable. ASU 2013-02 was effective for the Company prospectively beginning on January 1, 2013 and did have a material impact on the Company’s consolidated financial statements. | |||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' | |||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||
14 | FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||
The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Therefore, any aggregate unrealized gains or losses should not be interpreted as a forecast of future earnings or cash flows. Furthermore, the fair values disclosed should not be interpreted as the aggregate current value of the Company. | ||||||
30-Sep-13 | Fair Value Measurements | |||||
Description of Asset | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | |
(Level 1) | (Level 3) | |||||
Assets | ||||||
Investment securities - AFS | $ 50,869,490 | $ 50,869,490 | $ - | $ 50,869,490 | $ - | |
Investment securities - HTM | 91,349,615 | 91,050,953 | 749,962 | 90,300,991 | - | |
FHLB and FRB Stock | 5,593,100 | 6,198,000 | - | 6,198,000 | - | |
Loans | 759,880,727 | 753,916,000 | - | 753,916,000 | - | |
Other real estate owned | 7,058,504 | 7,058,504 | - | 7,058,504 | - | |
Liabilities | ||||||
Savings, NOW and money market accounts | $ 432,564,049 | $ 432,564,049 | $ - | $ 432,564,049 | $ - | |
Time deposits | 384,683,410 | 387,119,000 | - | 387,119,000 | - | |
Long-term debt | 70,488,848 | 71,382,000 | - | 71,382,000 | - | |
Short term borrowings | 2,640,000 | 2,640,000 | - | 2,640,000 | - | |
TRUPs | 12,000,000 | 2,400,000 | - | 2,400,000 | - | |
At December 31, 2012 | Fair Value Measurements | |||||
Description of Asset | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | |
(Level 1) | (Level 3) | |||||
Assets | ||||||
Investment securities - AFS | $ 47,205,663 | $ 47,205,663 | $ - | $ 47,205,663 | $ - | |
Investment securities - HTM | 112,619,434 | 114,187,018 | 749,941 | 113,437,077 | - | |
FHLB and FR Stock | 5,476,050 | 5,469,000 | - | 5,469,000 | - | |
Loans | 747,640,752 | 757,387,000 | - | 757,387,000 | - | |
Other real estate owned | 6,891,353 | 6,891,353 | - | 6,891,353 | - | |
Liabilities | ||||||
Savings, NOW and money market accounts | $ 414,776,285 | $ 414,776,285 | $ - | $ 414,776,285 | $ - | |
Time deposits | 405,454,003 | 410,257,000 | - | 410,257,000 | - | |
Long-term debt | 60,527,208 | 64,252,000 | - | 64,252,000 | - | |
Short term borrowings | 1,000,000 | 1,000,000 | - | 1,000,000 | - | |
TRUPs | 12,000,000 | 2,400,000 | - | 2,400,000 | - | |
At September 30, 2013, the Company had outstanding loan commitments and standby letters of credit of $25.8 million and $24.7 million, respectively. Based on the short-term lives of these instruments, the Company does not believe that the fair value of these instruments differs significantly from their carrying values. | ||||||
Valuation Methodology | ||||||
Investment securities and FHLB and FRB stock - Fair values are based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. | ||||||
Loans receivable - For conforming residential first-mortgage loans, the market price for loans with similar coupons and maturities was used. For nonconforming loans with maturities similar to conforming loans, the coupon was adjusted for credit risk. Loans that did not have quoted market prices were priced using the discounted cash flow method. The discount rate used was the rate currently offered on similar products. Loans priced using the discounted cash flow method included residential construction loans, commercial real estate loans and consumer loans. The estimated fair value of loans held for sale is based on the terms of the related sale commitments. | ||||||
Other real estate owned - Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. | ||||||
Deposits - The fair value of checking accounts, saving accounts and money market accounts were the amount payable on demand at the reporting date. | ||||||
Time certificates - The fair value was determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products. | ||||||
Long-term debt and other borrowed funds - These were valued using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar borrowings. | ||||||
Guaranteed preferred beneficial interest in junior subordinated securities (TRUPs) - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. | ||||||
Off-balance sheet instruments - The Company charges fees for commitments to extend credit. Interest rates on loans for which these commitments are extended are normally committed for periods of less than one month. Fees charged on standby letters of credit and other financial guarantees are deemed to be immaterial and these guarantees are expected to be settled at face amount or expire unused. It is impractical to assign any fair value to these commitments. | ||||||
The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2013 and December 31, 2012, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amount presented herein.. | ||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||||||||||
15 | ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||
The following tables presents the components of comprehensive loss for securities for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||
Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | |||||||
Net unrealized holding gain (loss) | ||||||||||||
arising during period | $ (350,524) | $ (119,178) | $ (231,346) | $ 104,229 | $ 35,438 | $ 68,791 | ||||||
Reclassification adjustments | - | - | - | - | - | - | ||||||
Other comprehensive gain (loss) | $ (350,524) | $ (119,178) | $ (231,346) | $ 104,229 | $ 35,438 | $ 68,791 | ||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||
Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | |||||||
Net unrealized holding gain (loss) | ||||||||||||
arising during period | $ (1,591,096) | $ (540,972) | $ (1,050,124) | $ 115,973 | $ 39,431 | $ 76,542 | ||||||
Reclassification adjustments | - | - | - | - | - | - | ||||||
Other comprehensive gain (loss) | $ (1,591,096) | $ (540,972) | $ (1,050,124) | $ 115,973 | $ 39,431 | $ 76,542 | ||||||
The following table presents the changes in each component of accumulated other comprehensive income for securities, net of tax, for the three and nine months ended September 30, 2013. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||
Net Unrealized Gains And Losses | Net Unrealized Gains And Losses | |||||||||||
Beginning of period | $ (679,594) | $ 139,184 | ||||||||||
Other comprehensive loss | ||||||||||||
before reclassifications | -231,346 | -1,050,124 | ||||||||||
Amounts reclassified from accumulated | ||||||||||||
other comprehensive income | - | - | ||||||||||
Net other comprehensive loss | -231,346 | -1,050,124 | ||||||||||
End of period | $ (910,940) | $ (910,940) | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | |||||||
Fair Value, Assets Measured on Recurring Basis | ' | |||||||
30-Sep-13 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Available for sale securities | ||||||||
Asset-backed securities issued by GSEs | ||||||||
Collateralized Mortgage Obligations ("CMOs") | $ 46,471,000 | $ - | $ 46,471,000 | $ - | ||||
Mortgage Backed Securities ("MBS") | 198,713 | - | 198,713 | - | ||||
Corporate equity securities | 38,698 | - | 38,698 | - | ||||
Bond mutual funds | 4,161,079 | - | 4,161,079 | - | ||||
Total available for sale securities | $ 50,869,490 | $ - | $ 50,869,490 | $ - | ||||
31-Dec-12 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Available for sale securities | ||||||||
Asset-backed securities issued by GSEs | ||||||||
CMOs | $ 42,655,799 | $ - | $ 42,655,799 | $ - | ||||
MBS | 231,386 | - | 231,386 | - | ||||
Corporate equity securities | 37,332 | - | 37,332 | - | ||||
Bond mutual funds | 4,281,146 | - | 4,281,146 | - | ||||
Total available for sale securities | $ 47,205,663 | $ - | $ 47,205,663 | $ - | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | ' | |||||||
30-Sep-13 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Loans with impairment | ||||||||
Commercial real estate | $ 3,411,781 | $ - | $ 3,411,781 | $ - | ||||
Residential first mortgage | 530,170 | - | 530,170 | - | ||||
Commercial loans | 429,000 | - | 429,000 | - | ||||
Total loans with impairment | $ 4,370,951 | $ - | $ 4,370,951 | $ - | ||||
Other real estate owned | $ 7,058,504 | $ - | $ 7,058,504 | $ - | ||||
31-Dec-12 | ||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||
Loans with impairment | ||||||||
Commercial real estate | $ 2,028,534 | $ - | $ 2,028,534 | $ - | ||||
Residential first mortgage | 602,290 | - | 602,290 | - | ||||
Commercial loans | 94,355 | - | 94,355 | - | ||||
Total loans with impairment | $ 2,725,179 | $ - | $ 2,725,179 | $ - | ||||
Other real estate owned | $ 6,891,353 | $ - | $ 6,891,353 | $ - | ||||
EARNINGS_PER_COMMON_SHARE_EPS_
EARNINGS PER COMMON SHARE (EPS) (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
EARNINGS PER COMMON SHARE (EPS) [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||
Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2013 | 2012 | 2013 | 2012 | |||||
Net Income | $ 1,702,841 | $ 1,472,941 | $ 5,006,681 | $ 3,519,346 | ||||
Less: dividends paid and accrued on preferred stock | -50,000 | -50,000 | -150,000 | -150,000 | ||||
Net income available to common shareholders | $ 1,652,841 | $ 1,422,941 | $ 4,856,681 | $ 3,369,346 | ||||
Average number of common shares outstanding | 2,997,401 | 3,044,556 | 3,016,793 | 3,042,645 | ||||
Effect of dilutive options | 24,981 | 8,693 | 25,295 | 13,026 | ||||
Average number of shares used to calculate diluted EPS | 3,022,382 | 3,053,249 | 3,042,088 | 3,055,671 | ||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | |||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||
The following tables below summarize outstanding and exercisable options at September 30, 2013 and December 31, 2012. | ||||||||
Weighted | Weighted-Average | |||||||
Average | Aggregate | Contractual Life | ||||||
Exercise | Intrinsic | Remaining In | ||||||
Shares | Price | Value | Years | |||||
Outstanding at January 1, 2013 | 236,059 | $ 18.49 | $ 164,304 | |||||
Granted at fair value | - | - | ||||||
Exercised | -16,009 | 13.63 | 73,518 | |||||
Expired | - | |||||||
Forfeited | -2 | 13.05 | ||||||
Outstanding at September 30, 2013 | 220,048 | $ 18.84 | $ 478,620 | 0.8 | ||||
Exercisable at September 30, 2013 | 220,048 | $ 18.84 | $ 478,620 | 0.8 | ||||
Weighted | Weighted-Average | |||||||
Average | Aggregate | Contractual Life | ||||||
Exercise | Intrinsic | Remaining In | ||||||
Shares | Price | Value | Years | |||||
Outstanding at January 1, 2012 | 264,156 | $ 17.90 | $ 175,911 | |||||
Granted at fair value | - | - | ||||||
Exercised | -24,780 | 12.25 | 88,607 | |||||
Expired | - | |||||||
Forfeited | -3,317 | 18.25 | ||||||
Outstanding at December 31, 2012 | 236,059 | $ 18.49 | $ 164,304 | 1.0 | ||||
Exercisable at December 31, 2012 | 236,059 | $ 18.49 | $ 164,304 | 1.0 | ||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | ' | |||||||
Options outstanding are all currently exercisable and are summarized as follows: | ||||||||
Shares Outstanding | Weighted Average | Weighted Average | ||||||
30-Sep-13 | Remaining Contractual Life | Exercise Price | ||||||
39,668 | 1 years | $ | 12.97 | |||||
78,831 | 2 years | 15.89 | ||||||
80,138 | 3 years | 22.29 | ||||||
21,411 | 4 years | 27.7 | ||||||
220,048 | $ | 18.84 | ||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||
The following tables summarize the unvested restricted stock awards and units outstanding at September 30, 2013 and December 31, 2012, respectively. | ||||||||
Restricted Stock | Restricted Stock Units | |||||||
Number of Shares | Weighted | Number of Units | Fair Value | |||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Nonvested at December 31, 2012 | 23,569 | $ 15.64 | 5,211 | $ 15.98 | ||||
Granted | 13,656 | 18.00 | 2,105 | 16.87 | ||||
Vested | -16,678 | 16.35 | -3,106 | 15.98 | ||||
Nonvested at September 30, 2013 | 20,547 | $ 16.63 | 4,210 | $ 18.95 | ||||
Restricted Stock | Restricted Stock Units | |||||||
Number of Shares | Weighted | Number of Units | Fair Value | |||||
Average Grant | ||||||||
Date Fair Value | ||||||||
Nonvested at January 1, 2012 | 8,113 | $ 16.47 | 6,845 | $ 15.00 | ||||
Granted | 23,281 | 15.21 | 2,105 | 15.98 | ||||
Vested | -7,825 | 15.20 | -3,739 | 14.80 | ||||
Nonvested at December 31, 2012 | 23,569 | $ 15.64 | 5,211 | $ 15.98 | ||||
OTHER_REAL_ESTATE_OWNED_OREO_T
OTHER REAL ESTATE OWNED ("OREO") (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||
OTHER REAL ESTATE OWNED ("OREO") [Abstract] | ' | ' | ||||||||||||
Foreclosed Real Estate Roll Forward | ' | ' | ||||||||||||
OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of the activity follows. | ||||||||||||||
Nine Months Ended September 30, | Year Ended | |||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | 2012 | ||||||||||||
Balance at beginning of year | $ 6,891,353 | $ 5,028,513 | $ 5,028,513 | |||||||||||
Additions of underlying property | 1,390,286 | 2,165,375 | 4,020,494 | |||||||||||
Disposals of underlying property | -722,599 | -441,429 | -1,483,449 | |||||||||||
Valuation allowance | -500,536 | -657,226 | -674,205 | |||||||||||
Balance at end of period | $ 7,058,504 | $ 6,095,233 | $ 6,891,353 | |||||||||||
Foreclosed Real Estate Expenses | ' | ' | ||||||||||||
Expenses applicable to OREO assets include the following. | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Valuation allowance | $ 170,560 | $ 31,050 | $ 500,536 | $ 657,226 | ||||||||||
Operating expenses | 41,080 | 54,529 | 105,168 | 85,374 | ||||||||||
$ 211,640 | $ 85,579 | $ 605,704 | $ 742,600 | |||||||||||
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Trading Securities (and Certain Trading Assets) | ' | |||||||||||
30-Sep-13 | ||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Securities available for sale (AFS) | ||||||||||||
Asset-backed securities issued by GSEs | ||||||||||||
Residential MBS | $ 181,968 | $ 16,745 | $ - | $ 198,713 | ||||||||
Residential CMOs | 47,721,616 | 75,448 | 1,326,064 | 46,471,000 | ||||||||
Corporate equity securities | 37,310 | 1,572 | 184 | 38,698 | ||||||||
Bond mutual funds | 4,078,129 | 82,950 | - | 4,161,079 | ||||||||
Total securities available for sale | $ 52,019,023 | $ 176,715 | $ 1,326,248 | $ 50,869,490 | ||||||||
Securities held to maturity (HTM) | ||||||||||||
Asset-backed securities issued by GSEs: | ||||||||||||
Residential MBS | $ 23,722,148 | $ 684,723 | $ 186,163 | $ 24,220,708 | ||||||||
Residential CMOs | 63,583,106 | 385,242 | 864,471 | 63,103,877 | ||||||||
Asset-backed securities issued by Others: | ||||||||||||
Residential CMOs | 3,294,474 | 100,907 | 418,975 | 2,976,406 | ||||||||
Total debt securities held to maturity | 90,599,728 | 1,170,872 | 1,469,609 | 90,300,991 | ||||||||
U.S. government obligations | 749,887 | 75 | - | 749,962 | ||||||||
Total securities held to maturity | $ 91,349,615 | $ 1,170,947 | $ 1,469,609 | $ 91,050,953 | ||||||||
31-Dec-12 | ||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Securities available for sale (AFS) | ||||||||||||
Asset-backed securities issued by GSEs | ||||||||||||
Residential MBS | $ 198,400 | $ 32,986 | $ - | $ 231,386 | ||||||||
Residential CMOs | 42,507,542 | 266,775 | 118,518 | 42,655,799 | ||||||||
Corporate equity securities | 37,310 | 306 | 284 | 37,332 | ||||||||
Bond mutual funds | 4,012,609 | 268,537 | - | 4,281,146 | ||||||||
Total securities available for sale | $ 46,755,861 | $ 568,604 | $ 118,802 | $ 47,205,663 | ||||||||
Securities held to maturity (HTM) | ||||||||||||
Asset-backed securities issued by GSEs: | ||||||||||||
Residential MBS | $ 31,239,176 | $ 1,237,277 | $ - | $ 32,476,453 | ||||||||
Residential CMOs | 76,191,199 | 715,620 | 97,998 | 76,808,821 | ||||||||
Asset-backed securities issued by Others: | - | |||||||||||
Residential CMOs | 4,439,118 | 197,028 | 484,343 | 4,151,803 | ||||||||
Total debt securities held to maturity | 111,869,493 | 2,149,925 | 582,341 | 113,437,077 | ||||||||
U.S. government obligations | 749,941 | - | - | 749,941 | ||||||||
Total securities held to maturity | $ 112,619,434 | $ 2,149,925 | $ 582,341 | $ 114,187,018 | ||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||
Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2012 are as follows: | ||||||||||||
31-Dec-12 | Less Than 12 | More Than 12 | ||||||||||
Months | Months | Total | ||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | |||||||
Asset-backed securities | $ 14,253,558 | $ 89,638 | $ 6,132,036 | $ 8,360 | $ 20,385,594 | $ 97,998 | ||||||
issued by GSEs | ||||||||||||
Asset-backed securities | - | - | 3,057,666 | 484,343 | 3,057,666 | 484,343 | ||||||
issued by other | ||||||||||||
$ 14,253,558 | $ 89,638 | $ 9,189,702 | $ 492,703 | $ 23,443,260 | $ 582,341 | |||||||
Financing Receivable Credit Quality Indicators | ' | |||||||||||
GSE asset-backed security downgrades by Standard and Poor’s were treated as AAA based on regulatory guidance. | ||||||||||||
30-Sep-13 | December 31. 2012 | |||||||||||
Credit Rating | Amount | Credit Rating | Amount | |||||||||
AAA | $ 133,974,968 | AAA | $ 150,317,560 | |||||||||
A+ | - | A+ | - | |||||||||
A | - | A | 110,780 | |||||||||
BBB | 635,920 | BBB | 978,043 | |||||||||
BBB- | 106,045 | BBB- | 322,329 | |||||||||
BB+ | - | BB+ | - | |||||||||
BB | 836,679 | BB | 1,069,517 | |||||||||
BB- | - | BB- | 68,604 | |||||||||
B+ | 66,873 | B+ | 1,008,126 | |||||||||
CCC+ | 874,410 | CCC+ | - | |||||||||
CCC | 774,547 | CCC | 881,719 | |||||||||
Total | $ 137,269,442 | Total | $ 154,756,678 | |||||||||
Held-To-Maturity Securities [Member] | ' | |||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||
Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at September 30, 2013 are as follows: | ||||||||||||
30-Sep-13 | Less Than 12 | More Than 12 | ||||||||||
Months | Months | Total | ||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | |||||||
Asset-backed securities | $ 41,773,548 | $ 1,029,248 | $ 3,300,948 | $ 21,386 | $ 45,074,496 | $ 1,050,634 | ||||||
issued by GSEs | ||||||||||||
Asset-backed securities | - | - | 2,258,562 | 418,975 | 2,258,562 | 418,975 | ||||||
issued by other | ||||||||||||
$ 41,773,548 | $ 1,029,248 | $ 5,559,510 | $ 440,362 | $ 47,333,058 | $ 1,469,609 | |||||||
Available-For-Sale Securities [Member] | ' | |||||||||||
Schedule of Unrealized Loss on Investments | ' | |||||||||||
Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at September 30, 2013 are as follows: | ||||||||||||
30-Sep-13 | Less Than 12 | More Than 12 | ||||||||||
Months | Months | Total | ||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | |||||||
Asset-backed securities | $ 33,460,034 | $ 1,098,769 | $ 5,623,802 | $ 227,295 | $ 39,083,836 | $ 1,326,064 | ||||||
issued by GSEs | ||||||||||||
Corporate equity securities | 126 | 184 | - | - | 126 | 184 | ||||||
$ 33,460,160 | $ 1,098,953 | $ 5,623,802 | $ 227,295 | $ 39,083,962 | $ 1,326,248 | |||||||
LOANS_Tables
LOANS (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
LOANS [Abstract] | ' | |||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | |||||||||||||||||
Loans consist of the following: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Commercial real estate | $ 445,662,038 | $ 419,667,312 | ||||||||||||||||
Residential first mortgages | 161,861,710 | 177,663,354 | ||||||||||||||||
Construction and land development | 31,113,145 | 31,818,782 | ||||||||||||||||
Home equity and second mortgages | 21,711,980 | 21,982,375 | ||||||||||||||||
Commercial loans | 86,504,220 | 88,157,606 | ||||||||||||||||
Consumer loans | 901,800 | 995,206 | ||||||||||||||||
Commercial equipment | 21,085,197 | 16,267,684 | ||||||||||||||||
768,840,090 | 756,552,319 | |||||||||||||||||
Less: | ||||||||||||||||||
Deferred loan fees | 880,086 | 664,610 | ||||||||||||||||
Allowance for loan loss | 8,079,277 | 8,246,957 | ||||||||||||||||
8,959,363 | 8,911,567 | |||||||||||||||||
$ 759,880,727 | $ 747,640,752 | |||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | |||||||||||||||||
Commercial | Residential First Mortgage | Construction and Land | Home Equity and Second Mtg. | Commercial Loans | Consumer | Commercial Equipment | Total | |||||||||||
Real Estate | Development | Loans | ||||||||||||||||
At and For the Three Months Ended September 30, 2013 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at July 1, | $ 3,358,001 | $ 1,960,882 | $ 600,525 | $ 364,281 | $ 1,519,332 | $ 13,972 | $ 216,560 | $ 8,033,553 | ||||||||||
Charge-offs | -140,048 | -80,110 | -50 | -155 | -28,576 | -1,012 | -31 | -249,982 | ||||||||||
Recoveries | - | 154 | - | - | 168 | 28 | 9,746 | 10,096 | ||||||||||
Provisions | 311,035 | -177,787 | -131,581 | -45,812 | 272,009 | 1,539 | 56,207 | 285,610 | ||||||||||
Balance at September 30, | $ 3,528,988 | $ 1,703,139 | $ 468,894 | $ 318,314 | $ 1,762,933 | $ 14,527 | $ 282,482 | $ 8,079,277 | ||||||||||
At and For the Nine Months Ended September 30, 2013 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at January 1, | $ 4,089,834 | $ 1,083,228 | $ 533,430 | $ 279,819 | $ 1,949,024 | $ 19,341 | $ 292,281 | $ 8,246,957 | ||||||||||
Charge-offs | -140,048 | -139,048 | -36,012 | -111,038 | -434,149 | -10,003 | -22,008 | -892,306 | ||||||||||
Recoveries | - | 11,054 | - | - | 12,059 | 2,010 | 59,293 | 84,416 | ||||||||||
Provisions | -420,798 | 747,905 | -28,524 | 149,533 | 235,999 | 3,179 | -47,084 | 640,210 | ||||||||||
Balance at September 30, | $ 3,528,988 | $ 1,703,139 | $ 468,894 | $ 318,314 | $ 1,762,933 | $ 14,527 | $ 282,482 | $ 8,079,277 | ||||||||||
Ending balance: individually | $ 559,333 | $ 170,741 | $ - | $ - | $ 291,821 | $ - | $ 22,875 | $ 1,044,770 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 2,969,655 | $ 1,532,398 | $ 468,894 | $ 318,314 | $ 1,471,112 | $ 14,527 | $ 259,607 | $ 7,034,507 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Loan receivables: | ||||||||||||||||||
Ending balance | $ 445,662,038 | $ 161,861,710 | $ 31,113,145 | $ 21,711,980 | $ 86,504,220 | $ 901,800 | $ 21,085,197 | $ 768,840,090 | ||||||||||
Ending balance: individually | $ 19,856,516 | $ 3,882,548 | $ 5,349,737 | $ 58,000 | $ 11,054,771 | $ 31,935 | $ 316,662 | $ 40,550,169 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 425,805,522 | $ 157,979,162 | $ 25,763,408 | $ 21,653,980 | $ 75,449,449 | $ 869,865 | $ 20,768,535 | $ 728,289,921 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Commercial | Residential First Mortgage | Construction and Land | Home Equity and Second Mtg. | Commercial Loans | Consumer | Commercial Equipment | Total | |||||||||||
Real Estate | Development | Loans | ||||||||||||||||
At and For the Year Ended | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at January 1, | $ 2,525,199 | $ 539,205 | $ 354,385 | $ 143,543 | $ 3,850,294 | $ 19,119 | $ 223,296 | $ 7,655,041 | ||||||||||
Charge-offs | -486,431 | -10,987 | -140,835 | -210,753 | -1,003,824 | -4,994 | -168,802 | -2,026,626 | ||||||||||
Recoveries | - | 37,524 | - | - | 51,350 | 987 | - | 89,861 | ||||||||||
Provisions | 2,051,066 | 517,486 | 319,880 | 347,029 | -948,796 | 4,229 | 237,787 | 2,528,681 | ||||||||||
Balance at December 31, | $ 4,089,834 | $ 1,083,228 | $ 533,430 | $ 279,819 | $ 1,949,024 | $ 19,341 | $ 292,281 | $ 8,246,957 | ||||||||||
Ending balance: individually | $ 785,878 | $ 403,475 | $ - | $ - | $ 353,883 | $ - | $ 4,421 | $ 1,547,657 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 3,303,956 | $ 679,753 | $ 533,430 | $ 279,819 | $ 1,595,141 | $ 19,341 | $ 287,860 | $ 6,699,300 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Loan receivables: | ||||||||||||||||||
Ending balance | $ 419,667,312 | $ 177,663,354 | $ 31,818,782 | $ 21,982,375 | $ 88,157,606 | $ 995,206 | $ 16,267,684 | $ 756,552,319 | ||||||||||
Ending balance: individually | $ 21,618,890 | $ 3,367,827 | $ 4,877,868 | $ 291,000 | $ 8,778,681 | $ 51,748 | $ 4,421 | $ 38,990,435 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 398,048,422 | $ 174,295,527 | $ 26,940,914 | $ 21,691,375 | $ 79,378,925 | $ 943,458 | $ 16,263,263 | $ 717,561,884 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Commercial | Residential First Mortgage | Construction and Land | Home Equity and Second Mtg. | Commercial Loans | Consumer | Commercial Equipment | Total | |||||||||||
Real Estate | Development | Loans | ||||||||||||||||
At and For the Three Months Ended September 30, 2012 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at July 1, | $ 3,478,458 | $ 901,505 | $ 596,854 | $ 212,791 | $ 1,968,491 | $ 18,316 | $ 287,722 | $ 7,464,137 | ||||||||||
Charge-offs | -50,034 | -10,991 | -5,995 | -46,989 | -413 | - | -90 | -114,512 | ||||||||||
Recoveries | - | 429 | - | - | 23 | - | - | 452 | ||||||||||
Provisions | 683,311 | -3,991 | 40,378 | 18,402 | -14,062 | 1,505 | 20,532 | 746,075 | ||||||||||
Balance at September 30, | $ 4,111,735 | $ 886,952 | $ 631,237 | $ 184,204 | $ 1,954,039 | $ 19,821 | $ 308,164 | $ 8,096,152 | ||||||||||
At and For the Nine Months Ended September 30, 2012 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Balance at January 1, | $ 2,525,199 | $ 539,205 | $ 354,385 | $ 143,543 | $ 3,850,294 | $ 19,119 | $ 223,296 | $ 7,655,041 | ||||||||||
Charge-offs | -171,867 | -10,991 | -5,995 | -88,931 | -693,461 | -999 | -149,884 | -1,122,128 | ||||||||||
Recoveries | - | 37,676 | - | - | 1,983 | - | - | 39,659 | ||||||||||
Provisions | 1,758,403 | 321,062 | 282,847 | 129,592 | -1,204,777 | 1,701 | 234,752 | 1,523,580 | ||||||||||
Balance at September 30, | $ 4,111,735 | $ 886,952 | $ 631,237 | $ 184,204 | $ 1,954,039 | $ 19,821 | $ 308,164 | $ 8,096,152 | ||||||||||
Ending balance: individually | $ 1,122,590 | $ 247,541 | $ 134,500 | $ 21,855 | $ 499,654 | $ - | $ 4,715 | $ 2,030,855 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 2,989,145 | $ 639,411 | $ 496,737 | $ 162,349 | $ 1,454,385 | $ 19,821 | $ 303,449 | $ 6,065,297 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Loan receivables: | ||||||||||||||||||
Ending balance | $ 406,261,770 | $ 176,825,516 | $ 31,639,206 | $ 21,940,441 | $ 86,057,488 | $ 1,047,046 | $ 17,246,112 | $ 741,017,579 | ||||||||||
Ending balance: individually | $ 23,039,920 | $ 4,011,851 | $ 5,217,025 | $ 293,855 | $ 12,972,808 | $ 60,925 | $ 4,715 | $ 45,601,099 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Ending balance: collectively | $ 383,221,850 | $ 172,813,665 | $ 26,422,181 | $ 21,646,586 | $ 73,084,680 | $ 986,121 | $ 17,241,397 | $ 695,416,480 | ||||||||||
evaluated for impairment | ||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status | ' | |||||||||||||||||
Non-accrual loans as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||
90 or Greater | Number | Non-accrual Performing Loans | Number | Total Dollars | Total Number | |||||||||||||
Days Delinquent | of Loans | of Loans | of Loans | |||||||||||||||
Commercial real estate | $ 2,947,607 | 9 | $ 3,728,175 | 2 | $ 6,675,782 | 11 | ||||||||||||
Residential first mortgages | 2,155,122 | 7 | 565,802 | 3 | 2,720,924 | 10 | ||||||||||||
Commercial loans | 5,670,331 | 10 | - | - | 5,670,331 | 10 | ||||||||||||
Consumer loans | - | - | 31,935 | 1 | 31,935 | 1 | ||||||||||||
Commercial equipment | 316,662 | 5 | - | - | 316,662 | 5 | ||||||||||||
$ 11,089,722 | 31 | $ 4,325,912 | 6 | $ 15,415,634 | 37 | |||||||||||||
31-Dec-12 | ||||||||||||||||||
90 or Greater | Number | Non-accrual Performing Loans | Number | Total Dollars | Total Number | |||||||||||||
Days Delinquent | of Loans | of Loans | of Loans | |||||||||||||||
Commercial real estate | $ 1,527,844 | 7 | $ 3,802,947 | 2 | $ 5,330,791 | 9 | ||||||||||||
Residential first mortgages | 3,169,404 | 10 | 569,693 | 3 | 3,739,097 | 13 | ||||||||||||
Home equity and second mortgages | 71,296 | 2 | - | - | 71,296 | 2 | ||||||||||||
Commercial loans | 3,732,090 | 11 | - | - | 3,732,090 | 11 | ||||||||||||
Consumer loans | - | - | 51,748 | 1 | 51,748 | 1 | ||||||||||||
Commercial equipment | 216,383 | 4 | - | - | 216,383 | 4 | ||||||||||||
$ 8,717,017 | 34 | $ 4,424,388 | 6 | $ 13,141,405 | 40 | |||||||||||||
Past Due Financing Receivables | ' | |||||||||||||||||
An analysis of past due loans as of September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||
30-Sep-13 | Current | 31-60 | 61-89 | 90 or Greater | Total | Total | ||||||||||||
Days | Days | Days | Past Due | Loan | ||||||||||||||
Receivables | ||||||||||||||||||
Commercial real estate | $ 440,735,812 | $ - | $ 1,978,619 | $ 2,947,607 | $ 4,926,226 | $ 445,662,038 | ||||||||||||
Residential first mortgages | 159,568,816 | - | 137,772 | 2,155,122 | 2,292,894 | 161,861,710 | ||||||||||||
Construction and land dev. | 30,786,474 | 326,671 | - | - | 326,671 | 31,113,145 | ||||||||||||
Home equity and second mortgages | 21,388,847 | 199,217 | 123,916 | - | 323,133 | 21,711,980 | ||||||||||||
Commercial loans | 80,633,889 | 200,000 | - | 5,670,331 | 5,870,331 | 86,504,220 | ||||||||||||
Consumer loans | 898,574 | 3,226 | - | - | 3,226 | 901,800 | ||||||||||||
Commercial equipment | 20,730,853 | 37,682 | - | 316,662 | 354,344 | 21,085,197 | ||||||||||||
Total | $ 754,743,265 | $ 766,796 | $ 2,240,307 | $ 11,089,722 | $ 14,096,825 | $ 768,840,090 | ||||||||||||
31-Dec-12 | ||||||||||||||||||
Commercial real estate | $ 416,721,658 | $ - | $ 1,417,810 | $ 1,527,844 | $ 2,945,654 | $ 419,667,312 | ||||||||||||
Residential first mortgages | 173,593,886 | 97,307 | 802,757 | 3,169,404 | 4,069,468 | 177,663,354 | ||||||||||||
Construction and land dev. | 31,818,782 | - | - | - | - | 31,818,782 | ||||||||||||
Home equity and second mortgages | 21,499,018 | 350,715 | 61,346 | 71,296 | 483,357 | 21,982,375 | ||||||||||||
Commercial loans | 84,384,426 | - | 41,090 | 3,732,090 | 3,773,180 | 88,157,606 | ||||||||||||
Consumer loans | 983,094 | 9,363 | 2,749 | - | 12,112 | 995,206 | ||||||||||||
Commercial equipment | 15,659,007 | 371,921 | 20,373 | 216,383 | 608,677 | 16,267,684 | ||||||||||||
Total | $ 744,659,871 | $ 829,306 | $ 2,346,125 | $ 8,717,017 | $ 11,892,448 | $ 756,552,319 | ||||||||||||
Schedule of Financing Receivable Recorded Investment Credit Quality Indicator | ' | |||||||||||||||||
Credit quality indicators as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | ||||||||||||||||||
Commercial Real Estate | Construction and Land Dev. | |||||||||||||||||
9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | |||||||||||||||
Unrated | $ 63,842,162 | $ 59,930,126 | $ 4,339,477 | $ 4,330,321 | ||||||||||||||
Pass | 351,452,830 | 329,882,941 | 18,631,753 | 19,752,749 | ||||||||||||||
Special mention | 5,790,532 | 4,880,758 | - | - | ||||||||||||||
Substandard | 24,576,514 | 24,973,487 | 8,141,915 | 7,735,712 | ||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||
Loss | - | - | - | - | ||||||||||||||
Total | $ 445,662,038 | $ 419,667,312 | $ 31,113,145 | $ 31,818,782 | ||||||||||||||
Commercial Loans | Commercial Equipment | |||||||||||||||||
9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | |||||||||||||||
Unrated | $ 11,401,481 | $ 11,627,726 | $ 5,938,295 | $ 5,082,713 | ||||||||||||||
Pass | 60,365,389 | 64,436,809 | 15,121,129 | 11,180,550 | ||||||||||||||
Special mention | 402,000 | - | 2,898 | - | ||||||||||||||
Substandard | 14,335,350 | 12,093,071 | 22,875 | 4,421 | ||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||
Loss | - | - | - | - | ||||||||||||||
Total | $ 86,504,220 | $ 88,157,606 | $ 21,085,197 | $ 16,267,684 | ||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||||
Residential First Mortgages | Home Equity and Second Mtg. | Consumer Loans | ||||||||||||||||
9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | 9/30/13 | 12/31/12 | |||||||||||||
Performing | $ 159,706,588 | $ 174,493,950 | $ 21,711,980 | $ 21,911,079 | $ 901,800 | $ 995,206 | ||||||||||||
Nonperforming | 2,155,122 | 3,169,404 | - | 71,296 | - | - | ||||||||||||
Total | $ 161,861,710 | $ 177,663,354 | $ 21,711,980 | $ 21,982,375 | $ 901,800 | $ 995,206 | ||||||||||||
Impaired Financing Receivables | ' | |||||||||||||||||
Impaired Loans and Troubled Debt Restructures (“TDRs”) | ||||||||||||||||||
Impaired loans, including TDRs, at September 30, 2013 and September 30, 2012, respectively, and at December 31, 2012 were as follows: | ||||||||||||||||||
30-Sep-13 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total | Related Allowance | Three Month Average Recorded Investment | Three Month Interest Income Recognized | Nine Month Average Recorded Investment | Nine Month Interest Income Recognized | |||||||||
Recorded Investment | ||||||||||||||||||
Commercial real estate | $ 20,025,629 | $ 15,885,402 | $ 3,971,114 | $ 19,856,516 | $ 559,333 | $ 20,010,465 | $ 207,372 | $ 20,162,244 | $ 631,913 | |||||||||
Residential first mortgages | 3,882,548 | 3,181,637 | 700,911 | 3,882,548 | 170,741 | 3,910,884 | 30,371 | 3,919,666 | 96,616 | |||||||||
Construction and land dev. | 5,349,737 | 5,349,737 | - | 5,349,737 | - | 5,363,126 | 77,157 | 5,311,703 | 223,963 | |||||||||
Home equity and second mtg. | 58,000 | 58,000 | - | 58,000 | - | 120,000 | 1,486 | 216,556 | 6,016 | |||||||||
Commercial loans | 11,054,771 | 10,333,950 | 720,821 | 11,054,771 | 291,821 | 11,028,319 | 66,604 | 10,967,594 | 292,138 | |||||||||
Consumer loans | 31,935 | 31,935 | - | 31,935 | - | 36,393 | 1,112 | 43,199 | 2,759 | |||||||||
Commercial equipment | 335,563 | 293,787 | 22,875 | 316,662 | 22,875 | 336,106 | 1,238 | 350,886 | 7,740 | |||||||||
Total | $ 40,738,183 | $ 35,134,448 | $ 5,415,721 | $ 40,550,169 | $ 1,044,770 | $ 40,805,293 | $ 385,340 | $ 40,971,848 | $ 1,261,145 | |||||||||
31-Dec-12 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||
Recorded Investment | ||||||||||||||||||
Commercial real estate | $ 21,618,890 | $ 18,804,478 | $ 2,814,412 | $ 21,618,890 | $ 785,878 | $ 22,501,842 | $ 1,119,715 | |||||||||||
Residential first mortgages | 3,367,827 | 2,362,062 | 1,005,765 | 3,367,827 | 403,475 | 3,388,867 | 157,595 | |||||||||||
Construction and land dev. | 4,877,868 | 4,877,868 | - | 4,877,868 | - | 4,792,982 | 276,260 | |||||||||||
Home equity and second mtg. | 291,000 | 291,000 | - | 291,000 | - | 221,000 | 6,783 | |||||||||||
Commercial loans | 8,778,681 | 8,330,442 | 448,238 | 8,778,681 | 353,883 | 9,153,074 | 284,095 | |||||||||||
Consumer loans | 51,748 | 51,748 | - | 51,748 | - | 64,459 | 5,284 | |||||||||||
Commercial equipment | 4,421 | - | 4,421 | 4,421 | 4,421 | 5,112 | 318 | |||||||||||
Total | $ 38,990,435 | $ 34,717,598 | $ 4,272,836 | $ 38,990,435 | $ 1,547,657 | $ 40,127,336 | $ 1,850,050 | |||||||||||
30-Sep-12 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total | Related Allowance | Three Month Average Recorded Investment | Three Month Interest Income Recognized | Nine Month Average Recorded Investment | Nine Month Interest Income Recognized | |||||||||
Recorded Investment | ||||||||||||||||||
Commercial real estate | $ 23,497,570 | $ 19,699,656 | $ 3,340,264 | $ 23,039,920 | $ 1,122,590 | $ 23,128,253 | $ 282,740 | $ 23,257,586 | $ 872,500 | |||||||||
Residential first mortgages | 4,011,851 | 2,347,285 | 1,664,567 | 4,011,851 | 247,541 | 4,021,446 | 35,750 | 4,025,659 | 121,746 | |||||||||
Construction and land dev. | 5,217,025 | 5,082,525 | 134,500 | 5,217,025 | 134,500 | 5,145,911 | 90,653 | 5,701,121 | 205,509 | |||||||||
Home equity and second mtg. | 293,855 | 272,000 | 21,855 | 293,855 | 21,855 | 246,399 | 1,870 | 220,572 | 5,373 | |||||||||
Commercial loans | 13,572,808 | 12,196,993 | 775,815 | 12,972,808 | 499,654 | 13,486,660 | 105,044 | 13,871,661 | 321,821 | |||||||||
Consumer loans | 60,925 | 60,925 | - | 60,925 | - | 63,492 | 1,557 | 70,365 | 4,500 | |||||||||
Commercial equipment | 4,715 | - | 4,715 | 4,715 | 4,715 | 4,909 | 83 | 5,309 | 266 | |||||||||
Total | $ 46,658,749 | $ 39,659,384 | $ 5,941,716 | $ 45,601,099 | $ 2,030,855 | $ 46,097,070 | $ 517,697 | $ 47,152,273 | $ 1,531,715 | |||||||||
Troubled Debt Restructurings on Financing Receivables | ' | |||||||||||||||||
TDRs, included in the impaired loan schedules above, as of September 30, 2013 and December 31, 2012, respectively were as follows: | ||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||
Dollars | Number | Dollars | Number | |||||||||||||||
of Loans | of Loans | |||||||||||||||||
Commercial real estate | $ 3,152,197 | 8 | $ 3,097,214 | 7 | ||||||||||||||
Residential first mortgages | 1,485,600 | 4 | 1,418,229 | 3 | ||||||||||||||
$ 4,637,797 | 12 | $ 4,515,443 | 10 | |||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' | |||||
Fair Value, by Balance Sheet Grouping | ' | |||||
30-Sep-13 | Fair Value Measurements | |||||
Description of Asset | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | |
(Level 1) | (Level 3) | |||||
Assets | ||||||
Investment securities - AFS | $ 50,869,490 | $ 50,869,490 | $ - | $ 50,869,490 | $ - | |
Investment securities - HTM | 91,349,615 | 91,050,953 | 749,962 | 90,300,991 | - | |
FHLB and FRB Stock | 5,593,100 | 6,198,000 | - | 6,198,000 | - | |
Loans | 759,880,727 | 753,916,000 | - | 753,916,000 | - | |
Other real estate owned | 7,058,504 | 7,058,504 | - | 7,058,504 | - | |
Liabilities | ||||||
Savings, NOW and money market accounts | $ 432,564,049 | $ 432,564,049 | $ - | $ 432,564,049 | $ - | |
Time deposits | 384,683,410 | 387,119,000 | - | 387,119,000 | - | |
Long-term debt | 70,488,848 | 71,382,000 | - | 71,382,000 | - | |
Short term borrowings | 2,640,000 | 2,640,000 | - | 2,640,000 | - | |
TRUPs | 12,000,000 | 2,400,000 | - | 2,400,000 | - | |
At December 31, 2012 | Fair Value Measurements | |||||
Description of Asset | Carrying Amount | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | |
(Level 1) | (Level 3) | |||||
Assets | ||||||
Investment securities - AFS | $ 47,205,663 | $ 47,205,663 | $ - | $ 47,205,663 | $ - | |
Investment securities - HTM | 112,619,434 | 114,187,018 | 749,941 | 113,437,077 | - | |
FHLB and FR Stock | 5,476,050 | 5,469,000 | - | 5,469,000 | - | |
Loans | 747,640,752 | 757,387,000 | - | 757,387,000 | - | |
Other real estate owned | 6,891,353 | 6,891,353 | - | 6,891,353 | - | |
Liabilities | ||||||
Savings, NOW and money market accounts | $ 414,776,285 | $ 414,776,285 | $ - | $ 414,776,285 | $ - | |
Time deposits | 405,454,003 | 410,257,000 | - | 410,257,000 | - | |
Long-term debt | 60,527,208 | 64,252,000 | - | 64,252,000 | - | |
Short term borrowings | 1,000,000 | 1,000,000 | - | 1,000,000 | - | |
TRUPs | 12,000,000 | 2,400,000 | - | 2,400,000 | - | |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | ' | |||||||||||
Schedule of Comprehensive Income (Loss) | ' | |||||||||||
The following tables presents the components of comprehensive loss for securities for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||
Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | |||||||
Net unrealized holding gain (loss) | ||||||||||||
arising during period | $ (350,524) | $ (119,178) | $ (231,346) | $ 104,229 | $ 35,438 | $ 68,791 | ||||||
Reclassification adjustments | - | - | - | - | - | - | ||||||
Other comprehensive gain (loss) | $ (350,524) | $ (119,178) | $ (231,346) | $ 104,229 | $ 35,438 | $ 68,791 | ||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||
Before Tax | Tax Effect | Net of Tax | Before Tax | Tax Effect | Net of Tax | |||||||
Net unrealized holding gain (loss) | ||||||||||||
arising during period | $ (1,591,096) | $ (540,972) | $ (1,050,124) | $ 115,973 | $ 39,431 | $ 76,542 | ||||||
Reclassification adjustments | - | - | - | - | - | - | ||||||
Other comprehensive gain (loss) | $ (1,591,096) | $ (540,972) | $ (1,050,124) | $ 115,973 | $ 39,431 | $ 76,542 | ||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The following table presents the changes in each component of accumulated other comprehensive income for securities, net of tax, for the three and nine months ended September 30, 2013. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||
Net Unrealized Gains And Losses | Net Unrealized Gains And Losses | |||||||||||
Beginning of period | $ (679,594) | $ 139,184 | ||||||||||
Other comprehensive loss | ||||||||||||
before reclassifications | -231,346 | -1,050,124 | ||||||||||
Amounts reclassified from accumulated | ||||||||||||
other comprehensive income | - | - | ||||||||||
Net other comprehensive loss | -231,346 | -1,050,124 | ||||||||||
End of period | $ (910,940) | $ (910,940) | ||||||||||
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION (Narrative) (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Oct. 31, 2013 |
Subsequent Event [Member] | ' |
Stock offering shares issued | 1,591,300 |
Price per share | $18.75 |
Proceeds from stock issuance | $27.40 |
FAIR_VALUE_MEASUREMENTS_Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Loans with impairment, unpaid principal | $5,415,721 | $5,415,721 | $4,272,836 | $5,941,716 |
Assets, fair value | 50,869,490 | 50,869,490 | ' | ' |
Fair value transfers | 0 | 0 | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Assets, fair value | 0 | 0 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Assets, fair value | 50,869,490 | 50,869,490 | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Assets, fair value | $0 | $0 | $0 | ' |
FAIR_VALUE_MEASUREMENTS_Fair_V
FAIR VALUE MEASUREMENTS (Fair Value, Assets Measured on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | $50,869,490 | ' |
Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 46,471,000 | ' |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 198,713 | ' |
Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 38,698 | ' |
Bond Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 4,161,079 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | Bond Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 50,869,490 | ' |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 46,471,000 | ' |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 198,713 | ' |
Fair Value, Inputs, Level 2 [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 38,698 | ' |
Fair Value, Inputs, Level 2 [Member] | Bond Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 4,161,079 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | Bond Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | 0 | ' |
Available-For-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 47,205,663 |
Available-For-Sale Securities [Member] | Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 42,655,799 |
Available-For-Sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 231,386 |
Available-For-Sale Securities [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 37,332 |
Available-For-Sale Securities [Member] | Bond Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 4,281,146 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 47,205,663 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 42,655,799 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 231,386 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | 37,332 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Bond Mutual Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, fair value | ' | $4,281,146 |
FAIR_VALUE_MEASUREMENTS_Fair_V1
FAIR VALUE MEASUREMENTS (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Foreclosed Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $7,058,504 | $6,891,353 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 7,058,504 | 6,891,353 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 4,370,951 | 2,725,179 |
Loans With Impairment [Member] | Commercial Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 3,411,781 | 2,028,534 |
Loans With Impairment [Member] | Residential Mortgage [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 530,170 | 602,290 |
Loans With Impairment [Member] | Commercial Loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 429,000 | 94,355 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Residential Mortgage [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 4,370,951 | 2,725,179 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 3,411,781 | 2,028,534 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Mortgage [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 530,170 | 602,290 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 429,000 | 94,355 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Loans [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $0 | $0 |
EARNINGS_PER_COMMON_SHARE_EPS_1
EARNINGS PER COMMON SHARE (EPS) (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
EARNINGS PER COMMON SHARE (EPS) [Abstract] | ' | ' |
Shares excluded from diluted net income per share | 101,549 | 187,367 |
EARNINGS_PER_COMMON_SHARE_EPS_2
EARNINGS PER COMMON SHARE (EPS) (Schedule of Earnings Per Share, Basic and Diluted) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
EARNINGS PER COMMON SHARE (EPS) [Abstract] | ' | ' | ' | ' |
Net Income | $1,702,841 | $1,472,941 | $5,006,681 | $3,519,346 |
Less: dividends paid and accrued on preferred stock | -50,000 | -50,000 | -150,000 | -150,000 |
Net Income Available to Common Shareholders | $1,652,841 | $1,422,941 | $4,856,681 | $3,369,346 |
Average number of common shares outstanding | 2,997,401 | 3,044,556 | 3,016,793 | 3,042,645 |
Effect of dilutive options | 24,981 | 8,693 | 25,295 | 13,026 |
Average number of shares used to calculate diluted earnings per share | 3,022,382 | 3,053,249 | 3,042,088 | 3,055,671 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock based compensation | $249,129 | $263,088 | ' |
Sale of Stock, Price Per Share (in dollars per share) | $18.95 | ' | $15.98 |
Option Maximum Term | '10 years | ' | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercisable, Intrinsic Value | 478,620 | ' | 164,304 |
Director [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock based compensation | 3,320 | 18,128 | ' |
Restricted Stock and Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock based compensation | $159,089 | $91,826 | ' |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION (Schedule of Share-based Compensation, Stock Options, Activity) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
STOCK-BASED COMPENSATION [Abstract] | ' | ' |
Shares Outstanding , Beginning balance | 236,059 | 264,156 |
Shares Granted at fair value | 0 | 0 |
Shares Exercised | -16,009 | -24,780 |
Shares Expired | ' | 0 |
Shares Forfeited | -2 | -3,317 |
Shares Outstanding, Ending balance | 220,048 | 236,059 |
Shares, Exercisable | 220,048 | 236,059 |
Weighted Average Exercise Price Outstanding, Beginning balance | $18.49 | $17.90 |
Weighted Average Exercise Price Granted at fair value | $0 | $0 |
Weighted Average Exercise Price Exercised | $13.63 | $12.25 |
Weighted Average Exercise Price Expired | $0 | $0 |
Weighted Average Exercise Price Forfeited | $13.05 | $18.25 |
Weighted Average Exercise Price Outstanding, Ending balance | $18.84 | $18.49 |
Weighted Average Exercise Price Exercisable | $18.84 | $18.49 |
Aggregate Intrinsic Value Outstanding, Beginning balance | $164,304 | $175,911 |
Aggregate Intrinsic Value Exercised | 73,518 | 88,607 |
Aggregate Intrinsic Value Outstanding, Ending balance | 478,620 | 164,304 |
Aggregate Intrinsic Value Exercisable | $478,620 | $164,304 |
Weighted-Average Contractual Life Remaining In Years Outstanding (in years) | '9 months 18 days | '1 year |
Weighted-Average Contractual Life Remaining In Years Exercisable (in years) | '9 months 18 days | '1 year |
STOCKBASED_COMPENSATION_Schedu1
STOCK-BASED COMPENSATION (Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number Outstanding September 30, 2013 (in shares) | 220,048 | 236,059 |
Weighted Average Remaining Contractual Life (in years) | '9 months 18 days | '1 year |
Weighted Average Exercise Price (in dollars per share) | $18.84 | $18.49 |
Option Exercisable One [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number Outstanding September 30, 2013 (in shares) | 39,668 | ' |
Weighted Average Remaining Contractual Life (in years) | '1 year | ' |
Weighted Average Exercise Price (in dollars per share) | $12.97 | ' |
Option Exercisable Two [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number Outstanding September 30, 2013 (in shares) | 78,831 | ' |
Weighted Average Remaining Contractual Life (in years) | '2 years | ' |
Weighted Average Exercise Price (in dollars per share) | $15.89 | ' |
Option Exercisable Three [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number Outstanding September 30, 2013 (in shares) | 80,138 | ' |
Weighted Average Remaining Contractual Life (in years) | '3 years | ' |
Weighted Average Exercise Price (in dollars per share) | $22.29 | ' |
Option Exercisable Four [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number Outstanding September 30, 2013 (in shares) | 21,411 | ' |
Weighted Average Remaining Contractual Life (in years) | '4 years | ' |
Weighted Average Exercise Price (in dollars per share) | $27.70 | ' |
STOCKBASED_COMPENSATION_Schedu2
STOCK-BASED COMPENSATION (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Period, Nonvested | 23,569 | 8,113 |
Number of Shares, Granted | 13,656 | 23,281 |
Number of Shares, Vested | -16,678 | -7,825 |
Ending Period, Nonvested | 20,547 | 23,569 |
Beginning Period, Weighted Average Grant Date Fair Value, Nonvested | $15.64 | $16.47 |
Weighted Average Grant Date Fair Value, Granted | $18 | $15.21 |
Weighted Average Grant Date Fair Value, Vested | $16.35 | $15.20 |
Ending Period, Weighted Average Grant Date Fair Value, Nonvested | $16.63 | $15.64 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Beginning Period, Nonvested | 5,211 | 6,845 |
Number of Shares, Granted | 2,105 | 2,105 |
Number of Shares, Vested | -3,106 | -3,739 |
Ending Period, Nonvested | 4,210 | 5,211 |
Beginning Period, Weighted Average Grant Date Fair Value, Nonvested | $15.98 | $15 |
Weighted Average Grant Date Fair Value, Granted | $16.87 | $15.98 |
Weighted Average Grant Date Fair Value, Vested | $15.98 | $14.80 |
Ending Period, Weighted Average Grant Date Fair Value, Nonvested | $18.95 | $15.98 |
GUARANTEED_PREFERRED_BENEFICIA1
GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (TRUPs) (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||
Jun. 30, 2005 | Jun. 30, 2005 | Sep. 30, 2013 | Jun. 15, 2005 | Jul. 31, 2004 | Sep. 30, 2013 | Jul. 22, 2004 | |
Capital Trust I I [Member] | Capital Trust I I [Member] | Capital Trust I I [Member] | Capital Trust I [Member] | Capital Trust I [Member] | Capital Trust I [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | $5,000,000 | ' | ' | $7,000,000 |
Debt Instrument, Description of Variable Rate Basis | ' | ' | '90-day LIBOR rate plus 1.70 | ' | ' | '90-day LIBOR rate plus 2.60% | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | 1.70% | ' | ' | 2.60% |
Additional Amount Contributed to Purchase Debt | ' | 155,000 | ' | ' | 217,000 | ' | ' |
Junior Subordinated Notes Purchased | $5,155,000 | ' | ' | ' | $7,217,000 | ' | ' |
Debt Instrument, Maturity Date | ' | ' | 15-Jun-35 | ' | ' | 22-Jul-34 | ' |
PREFERRED_STOCK_Narrative_Deta
PREFERRED STOCK (Narrative) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 22, 2011 | |
Purchase Agreement [Member] | ||
Shares, Issued | ' | 20,000 |
Preferred Stock, Liquidation Preference Per Share | ' | $1,000 |
Preferred Stock, Liquidation Preference, Value | ' | $20,000,000 |
Preferred Stock Dividend Rate Description | ' | 'based upon changes in the level of "Qualified Small Business Lending" or "QSBL" (as defined in the Purchase Agreement) by the Bank. Based upon the increase in the Bank's level of QSBL over the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period was set at one percent (1%). For the second through ninth calendar quarters, the dividend rate may be adjusted to between one percent (1%) and five percent (5%) per annum, to reflect the amount of change in the Bank's level of QSBL. If the level of the Bank's qualified small business loans declines so that the percentage increase in QSBL as compared to the baseline level is less than 10%, then the dividend rate payable on the Series C Preferred Stock would increase. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed at between one percent (1%) and seven percent (7%) based upon the increase in QSBL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to nine percent (9%). In addition, beginning on January 1, 2014, and on all Series C Preferred Stock dividend payment dates thereafter ending on April 1, 2016, if the Company had not increased its QSBL from the baseline as of the quarter ending September 30, 2013, the Company would have been required to pay to the Secretary, on each share of Series C Preferred Stock, but only out of assets legally available, a fee equal to 0.5% of the liquidation amount per share of Series C Preferred Stock. At September 30, 2013, the Company had increased its QSBL from the baseline so that the dividend rate should remain at 1% through four and one half years from issuance. |
Redemption Price Description | '100% of the liquidation amount plus accrued but unpaid dividends to the date of redemption | ' |
Increased Percentage Of Sblf Funding | 25.00% | ' |
Increased Amount Of Sblf Funding | $5,000,000 | ' |
OTHER_REAL_ESTATE_OWNED_OREO_N
OTHER REAL ESTATE OWNED ("OREO") (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' |
Gains on sale of OREO | ' | ' | $215,345 | ' |
Proceeds from sale of foreclosed real estate | ' | ' | 712,945 | 344,512 |
Recognition of deferred gain from sale of OREO | ' | ' | 225,000 | ' |
Unrealized losses on sale of foreclosed assets | ' | ' | ' | 96,917 |
Operating expenses | 41,080 | 54,529 | 105,168 | 85,374 |
Foreclosed Real Estate [Member] | ' | ' | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' |
Gains on sale of OREO | ' | ' | 9,655 | ' |
Operating expenses | ' | ' | $7,600 | ' |
OTHER_REAL_ESTATE_OWNED_OREO_F
OTHER REAL ESTATE OWNED ("OREO") (Foreclosed Real Estate Roll Forward) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
OTHER REAL ESTATE OWNED ("OREO") [Abstract] | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | $6,891,353 | $5,028,513 | $5,028,513 |
Additions of underlying property | ' | ' | 1,390,286 | 2,165,375 | 4,020,494 |
Disposals of underlying property | ' | ' | -722,599 | -441,429 | -1,483,449 |
Valuation allowance | -170,560 | -31,050 | -500,536 | -657,226 | -674,205 |
Balance at end of period | $7,058,504 | $6,095,233 | $7,058,504 | $6,095,233 | $6,891,353 |
OTHER_REAL_ESTATE_OWNED_OREO_F1
OTHER REAL ESTATE OWNED ("OREO") (Foreclosed Real Estate Expenses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
OTHER REAL ESTATE OWNED ("OREO") [Abstract] | ' | ' | ' | ' | ' |
Valuation allowance | $170,560 | $31,050 | $500,536 | $657,226 | $674,205 |
Operating expenses | 41,080 | 54,529 | 105,168 | 85,374 | ' |
Miscellaneous expenses | $211,640 | $85,579 | $605,704 | $742,600 | ' |
SECURITIES_Narrative_Details
SECURITIES (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Asset Backed Securities Issued By Others [Member] | Asset Backed Securities Issued By Others [Member] | Asset-backed securities issued by GSEs [Member] | Asset-backed securities issued by GSEs [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Held-To-Maturity Securities [Member] | Available-For-Sale Securities [Member] | Available-For-Sale Securities [Member] | Available-For-Sale Securities [Member] | Available-For-Sale Securities [Member] | Standard Poor's, AAA Rating [Member] | Standard Poor's, AAA Rating [Member] | |||||
Mortgage-Backed Securities, Issued By Private Enterprises [Member] | Mortgage-Backed Securities, Issued By Private Enterprises [Member] | Mortgage Backed Securities Issued By Others [Member] | Asset Backed Securities Issued By Others [Member] | Asset Backed Securities Issued By Others [Member] | Asset-backed securities issued by GSEs [Member] | Asset-backed securities issued by GSEs [Member] | Residential Collateralized Mortgage Obligations [Member] | Residential Collateralized Mortgage Obligations [Member] | Asset-backed securities issued by GSEs [Member] | Asset Backed Securities And Corporate Securities [Member] | ||||||||||||||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Backed Securities Pledged To Secure Certain Deposits | $36,700,000 | ' | $36,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Backed Securities Pledged As Collateral | 2,900,000 | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Asset Backed Securities In Investment Portfolio | ' | ' | ' | ' | ' | ' | 98.00% | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount | 137,269,442 | 154,756,678 | 137,269,442 | 154,756,678 | ' | ' | 1,326,064 | ' | ' | ' | ' | ' | ' | ' | 3,294,474 | ' | ' | ' | ' | ' | 1,469,911 | ' | ' | ' | 133,974,968 | 150,317,560 |
Available For Sale Securities Average Life | ' | ' | ' | ' | ' | ' | '5 years 1 month 13 days | '3 years 5 months 5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 2 months 19 days | ' | ' | ' |
Available for sale securities, average duration | ' | ' | ' | ' | ' | ' | '4 years 8 months 5 days | '3 years 3 months 4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held To Maturity Securities Average Life | ' | ' | ' | ' | '4 years 5 months 1 day | ' | '5 years 6 months 15 days | '3 years 5 months 5 days | ' | ' | ' | ' | ' | ' | ' | '3 years 2 months 1 day | '6 years 7 days | '1 year 10 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' |
Held to maturity securities, average duration | ' | ' | ' | ' | '3 years 3 months 7 days | ' | '5 years 1 month 21 days | '3 years 2 months 27 days | ' | ' | ' | ' | ' | ' | ' | '2 years 4 months 24 days | '5 years 6 months 22 days | '1 year 8 months 19 days | ' | ' | ' | ' | '4 years 8 months 27 days | ' | ' | ' |
Amortized Cost, Held to Maturity | 91,349,615 | 112,619,434 | 91,349,615 | 112,619,434 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,305,254 | 107,430,375 | ' | ' | ' | ' | 47,903,584 | ' | ' | ' |
Other than temporary impairment charges | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 148,000 | ' | ' | ' | ' | ' | ' | ' |
Investment Securities - Held to Maturity | 91,050,953 | 114,187,018 | 91,050,953 | 114,187,018 | ' | ' | ' | ' | 114,187,018 | 114,187,018 | ' | ' | ' | ' | ' | 4,439,118 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Losses on sales of HTM investment securities | ' | 3,736 | ' | ' | ' | 3,057,666 | ' | ' | 157,153 | 23,443,260 | ' | 20,385,594 | ' | ' | ' | 484,343 | ' | 97,998 | ' | ' | ' | ' | ' | ' | ' | ' |
Held To Maturity Securities Loss Of Amortized Cost Percentage | ' | ' | ' | ' | ' | 13.00% | ' | ' | 21.00% | 21.00% | 52.00% | 87.00% | 95.00% | 5.00% | 12.72% | 10.91% | 1.20% | 0.09% | ' | ' | ' | ' | ' | ' | ' | ' |
Net losses on sale of investment securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 418,975 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains on sales of AFS investment securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -153,417 | ' | ' | ' | ' | ' |
Certified mortgage obligation par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $889,000 | ' | ' | ' | ' | ' | ' |
Held-to-maturity Securities, Debt Maturities, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,050,953 | ' | 45,074,496 | 2,258,562 | ' | ' | ' | ' | ' | 611,000 | ' | ' | ' | ' | ' | ' |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount | ' | ' | ' | ' | ' | ' | ' | ' | 3,796,011 | 3,796,011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 511,000 | ' | ' | ' | ' | ' | ' |
Percentage of amortized cost, unrealized loss | ' | ' | ' | ' | ' | ' | 2.77% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77.00% | ' | ' | ' | ' |
Securities available for sale (AFS), at fair value | 50,869,490 | 47,205,663 | 50,869,490 | 47,205,663 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,205,663 | 50,869,490 | ' | 11,956,182 | ' | ' |
Gross Unrealized Losses, available for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,333,058 | ' | ' | ' | ' | ' | 1,050,634 | ' | ' | ' | 118,802 | 39,083,962 | ' | ' | ' | ' |
Available-for-sale securities sold | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held-to-maturity securities sold | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SECURITIES_Trading_Securities_
SECURITIES (Trading Securities (and Certain Trading Assets)) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Estimated Fair Value, available for sale | $50,869,490 | $47,205,663 |
Amortized Cost, Held to Maturity | 91,349,615 | 112,619,434 |
Gross Unrealized Gains, held to maturity | 1,170,947 | 2,149,925 |
Gross Unrealized Losses, held to maturity | 1,469,609 | 582,341 |
Estimated Fair Value, held to maturity | 91,050,953 | 114,187,018 |
Bond Mutual Funds [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Held to Maturity | 749,887 | ' |
Gross Unrealized Gains, held to maturity | 75 | ' |
Estimated Fair Value, held to maturity | 749,962 | ' |
Asset Backed Securities Issued By Others [Member] | Us Government Obligations [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Held to Maturity | ' | 749,941 |
Estimated Fair Value, held to maturity | ' | 749,941 |
Asset Backed Securities Issued By Others [Member] | Debt Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Held to Maturity | 90,599,728 | 111,869,493 |
Gross Unrealized Gains, held to maturity | 1,170,872 | 2,149,925 |
Gross Unrealized Losses, held to maturity | 1,469,609 | 582,341 |
Estimated Fair Value, held to maturity | 90,300,991 | 113,437,077 |
Asset Backed Securities Issued By Others [Member] | Residential Collateralized Mortgage Obligations [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Held to Maturity | 3,294,474 | 4,439,118 |
Gross Unrealized Gains, held to maturity | 100,907 | 197,028 |
Gross Unrealized Losses, held to maturity | 418,975 | 484,343 |
Estimated Fair Value, held to maturity | 2,976,406 | 4,151,803 |
Asset-backed securities issued by GSEs [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Available for Sale | 52,019,023 | 46,755,861 |
Gross Unrealized Gains, available for sale | 176,715 | 568,604 |
Gross Unrealized Losses, available for sale | 1,326,248 | 118,802 |
Estimated Fair Value, available for sale | 50,869,490 | 47,205,663 |
Asset-backed securities issued by GSEs [Member] | Bond Mutual Funds [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Available for Sale | 4,078,129 | 4,012,609 |
Gross Unrealized Gains, available for sale | 82,950 | 268,537 |
Estimated Fair Value, available for sale | 4,161,079 | 4,281,146 |
Asset-backed securities issued by GSEs [Member] | Corporate Equity Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Available for Sale | 37,310 | 37,310 |
Gross Unrealized Gains, available for sale | 1,572 | 306 |
Gross Unrealized Losses, available for sale | 184 | 284 |
Estimated Fair Value, available for sale | 38,698 | 37,332 |
Asset-backed securities issued by GSEs [Member] | Residential Collateralized Mortgage Obligations [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Available for Sale | 47,721,616 | 42,507,542 |
Gross Unrealized Gains, available for sale | 75,448 | 266,775 |
Gross Unrealized Losses, available for sale | 1,326,064 | 118,518 |
Estimated Fair Value, available for sale | 46,471,000 | 42,655,799 |
Amortized Cost, Held to Maturity | 63,583,106 | 76,191,199 |
Gross Unrealized Gains, held to maturity | 385,242 | 715,620 |
Gross Unrealized Losses, held to maturity | 864,471 | 97,998 |
Estimated Fair Value, held to maturity | 63,103,877 | 76,808,821 |
Asset-backed securities issued by GSEs [Member] | Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Amortized Cost, Available for Sale | 181,968 | 198,400 |
Gross Unrealized Gains, available for sale | 16,745 | 32,986 |
Estimated Fair Value, available for sale | 198,713 | 231,386 |
Amortized Cost, Held to Maturity | 23,722,148 | 31,239,176 |
Gross Unrealized Gains, held to maturity | 684,723 | 1,237,277 |
Gross Unrealized Losses, held to maturity | 186,163 | ' |
Estimated Fair Value, held to maturity | $24,220,708 | $32,476,453 |
SECURITIES_Schedule_of_Unreali
SECURITIES (Schedule of Unrealized Loss on Investments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Held-To-Maturity Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | $41,773,548 | $14,253,558 |
Less Than 12 Months, Unrealized Loss | 1,029,248 | 89,638 |
More Than 12 Months, Fair Value | 5,559,510 | 9,189,702 |
More Than 12 Months, Unrealized Loss | 440,362 | 492,703 |
Total, Fair Value | 47,333,058 | 23,443,260 |
Total, Unrealized Loss | 1,469,609 | 582,341 |
Held-To-Maturity Securities [Member] | Asset Backed Securities Issued By Others [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
More Than 12 Months, Fair Value | 2,258,562 | 3,057,666 |
More Than 12 Months, Unrealized Loss | 418,975 | 484,343 |
Total, Fair Value | 2,258,562 | 3,057,666 |
Total, Unrealized Loss | 418,975 | 484,343 |
Held-To-Maturity Securities [Member] | Asset-backed securities issued by GSEs [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 41,773,548 | 14,253,558 |
Less Than 12 Months, Unrealized Loss | 1,029,248 | 89,638 |
More Than 12 Months, Fair Value | 3,300,948 | 6,132,036 |
More Than 12 Months, Unrealized Loss | 21,386 | 8,360 |
Total, Fair Value | 45,074,496 | 20,385,594 |
Total, Unrealized Loss | 1,050,634 | 97,998 |
Available-For-Sale Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 33,460,160 | ' |
Less Than 12 Months, Unrealized Loss | 1,098,953 | ' |
More Than 12 Months, Fair Value | 5,623,802 | ' |
More Than 12 Months, Unrealized Loss | 227,295 | ' |
Total, Fair Value | 39,083,962 | ' |
Total, Unrealized Loss | 1,326,248 | ' |
Available-For-Sale Securities [Member] | Asset Backed Securities Issued By Others [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 33,460,034 | ' |
Less Than 12 Months, Unrealized Loss | 1,098,769 | ' |
More Than 12 Months, Fair Value | 5,623,802 | ' |
More Than 12 Months, Unrealized Loss | 227,295 | ' |
Total, Fair Value | 39,083,836 | ' |
Total, Unrealized Loss | 1,326,064 | ' |
Available-For-Sale Securities [Member] | Asset-backed securities issued by GSEs [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 126 | ' |
Less Than 12 Months, Unrealized Loss | 184 | ' |
Total, Fair Value | 126 | ' |
Total, Unrealized Loss | $184 | ' |
SECURITIES_Financing_Receivabl
SECURITIES (Financing Receivable Credit Quality Indicators) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | $137,269,442 | $154,756,678 |
Standard Poor's, AAA Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | 133,974,968 | 150,317,560 |
Standard Poor's, A Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | ' | 110,780 |
Standard Poor's, BBB Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | 635,920 | 978,043 |
Standard Poor's, BBB - Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | 106,045 | 322,329 |
Standard Poor's, BB Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | 836,679 | 1,069,517 |
Standard Poor's, BB - Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | ' | 68,604 |
Standard Poor's, B+ Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | 66,873 | 1,008,126 |
Standard Poors CCC + Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | 874,410 | ' |
Standard Poor's, CCC Rating [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Amount | $774,547 | $881,719 |
LOANS_Narrative_Details
LOANS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
loan | loan | loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and leases receivable, allowance percentage | 1.05% | 1.05% | 1.09% |
Deferred gain on sale of property | ' | ' | $225,000 |
Loans | 15,415,634 | 15,415,634 | 13,141,405 |
Investment Income, Interest | ' | 155,812 | 220,326 |
Loans and leases receivable, nonperforming, accrual of interest | 4,325,912 | 4,325,912 | 4,424,388 |
Other real estate additions | ' | ' | 415,995 |
Allowance for loan loss | 8,079,277 | 8,079,277 | 8,246,957 |
Number of loans | ' | 6 | 6 |
Number of accruing loans 90 days or greater past due | 0 | 0 | 0 |
Recognized deferred gain on sale of OREO | 225,000 | ' | ' |
90 or Greater Days | 11,089,722 | 11,089,722 | 8,717,017 |
Financing Receivable Troubled Debt Restructuring [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for loan loss | ' | ' | 0 |
Reserve of the allowance for loan losses | 12,000 | 12,000 | ' |
90 or Greater Days | 323,976 | 323,976 | ' |
Commercial Real Estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and leases receivable, allowance percentage | 80.00% | 80.00% | ' |
Other real estate additions | ' | ' | 382,500 |
Percentage status of loan in portfolio | 5.00% | 5.00% | 5.00% |
Number of accruing loans 90 days or greater past due | ' | ' | 1 |
90 or Greater Days | 2,947,607 | 2,947,607 | 1,527,844 |
Commercial Real Estate [Member] | Financing Receivable Troubled Debt Restructuring [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 60,000 | 60,000 | ' |
Number of loans | ' | ' | 8 |
Number of accruing loans 90 days or greater past due | ' | ' | 2 |
Commercial Loans [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
90 or Greater Days | 5,670,331 | 5,670,331 | 3,732,090 |
Residential Mortgage [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
90 or Greater Days | 2,155,122 | 2,155,122 | 3,169,404 |
Residential Mortgage [Member] | Financing Receivable Troubled Debt Restructuring [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Tdr Loan Transferred One | ' | 77,165 | ' |
Number of loans | ' | 1 | ' |
Foreclosed Real Estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans and leases receivable, nonperforming, accrual of interest | ' | ' | 1,454,757 |
Eight Commercial Real Estate Loans [Member] | Financing Receivable Troubled Debt Restructuring [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | ' | ' | 3,212,894 |
Three Residential First Mortgages [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | ' | ' | 1,419,657 |
Number of loans | ' | ' | 3 |
Nonaccrual Loans With No Impairment [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 12,932,327 | 12,932,327 | 11,371,542 |
Interest Due To Debt | ' | 432,916 | 443,856 |
Nonaccrual Loans With Impairment [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 2,483,307 | 2,483,307 | 1,769,863 |
Interest Due To Debt | ' | 180,751 | 182,106 |
Maximum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Debt maturity period | ' | '20 years | ' |
Maximum [Member] | Commercial Real Estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum percent of capital for single borrower | 15 | 15 | ' |
Maximum [Member] | Commercial Loans [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Debt maturity period | ' | '5 years | ' |
Maximum [Member] | Residential Mortgage [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Debt maturity period | ' | '30 years | ' |
Minimum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Debt maturity period | ' | '3 years | ' |
Credit quality indicator | $750,000 | $750,000 | ' |
Minimum [Member] | Residential Mortgage [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Debt maturity period | ' | '10 years | ' |
LOANS_Schedule_of_Accounts_Not
LOANS (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | $768,840,090 | $756,552,319 | $741,017,579 |
Less: | ' | ' | ' |
Deferred loan fees | 880,086 | 664,610 | ' |
Allowance for loan loss | 8,079,277 | 8,246,957 | ' |
Loans And Leases Receivable Adjustments | 8,959,363 | 8,911,567 | ' |
Loans And Leases Receivable Net Reported Amount | 759,880,727 | 747,640,752 | ' |
Commercial Equipment [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 21,085,197 | 16,267,684 | 17,246,112 |
Consumer Loans [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 901,800 | 995,206 | 1,047,046 |
Commercial Loans [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 86,504,220 | 88,157,606 | 86,057,488 |
Home Equity and Second Mortgage [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 21,711,980 | 21,982,375 | 21,940,441 |
Construction and Land Development [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 31,113,145 | 31,818,782 | 31,639,206 |
Residential Mortgage [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 161,861,710 | 177,663,354 | 176,825,516 |
Commercial Real Estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | $445,662,038 | $419,667,312 | $406,261,770 |
LOANS_Schedule_of_Financing_Re
LOANS (Schedule of Financing Receivables, Non Accrual Status) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
loan | loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
90 or Greater Days Delinquent | $11,089,722 | $8,717,017 |
Number of Loans, 90 or Greater Days Delinquent | 31 | 34 |
Nonaccrual Performing Loans | 4,325,912 | 4,424,388 |
Number Of Loans, Nonaccrual Performing Loans | 6 | 6 |
Total Dollars | 15,415,634 | 13,141,405 |
Total Number of loans | 37 | 40 |
Commercial Equipment [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
90 or Greater Days Delinquent | 316,662 | 216,383 |
Number of Loans, 90 or Greater Days Delinquent | 5 | 4 |
Total Dollars | 316,662 | 216,383 |
Total Number of loans | 5 | 4 |
Consumer Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual Performing Loans | 31,935 | 51,748 |
Number Of Loans, Nonaccrual Performing Loans | 1 | 1 |
Total Dollars | 31,935 | 51,748 |
Total Number of loans | 1 | 1 |
Commercial Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
90 or Greater Days Delinquent | 5,670,331 | 3,732,090 |
Number of Loans, 90 or Greater Days Delinquent | 10 | 11 |
Total Dollars | 5,670,331 | 3,732,090 |
Total Number of loans | 10 | 11 |
Home Equity and Second Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
90 or Greater Days Delinquent | ' | 71,296 |
Number of Loans, 90 or Greater Days Delinquent | ' | 2 |
Total Dollars | ' | 71,296 |
Total Number of loans | ' | 2 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
90 or Greater Days Delinquent | 2,155,122 | 3,169,404 |
Number of Loans, 90 or Greater Days Delinquent | 7 | 10 |
Nonaccrual Performing Loans | 565,802 | 569,693 |
Number Of Loans, Nonaccrual Performing Loans | 3 | 3 |
Total Dollars | 2,720,924 | 3,739,097 |
Total Number of loans | 10 | 13 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
90 or Greater Days Delinquent | 2,947,607 | 1,527,844 |
Number of Loans, 90 or Greater Days Delinquent | 9 | 7 |
Nonaccrual Performing Loans | 3,728,175 | 3,802,947 |
Number Of Loans, Nonaccrual Performing Loans | 2 | 2 |
Total Dollars | $6,675,782 | $5,330,791 |
Total Number of loans | 11 | 9 |
LOANS_Past_Due_Financing_Recei
LOANS (Past Due Financing Receivables) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Current | $754,743,265 | $744,659,871 | ' |
31-60 Days | 766,796 | 829,306 | ' |
61-89 Days | 2,240,307 | 2,346,125 | ' |
90 or Greater Days | 11,089,722 | 8,717,017 | ' |
Total Past Due | 14,096,825 | 11,892,448 | ' |
Total Loan Receivables | 768,840,090 | 756,552,319 | 741,017,579 |
Commercial Equipment [Member] | ' | ' | ' |
Current | 20,730,853 | 15,659,007 | ' |
31-60 Days | 37,682 | 371,921 | ' |
61-89 Days | ' | 20,373 | ' |
90 or Greater Days | 316,662 | 216,383 | ' |
Total Past Due | 354,344 | 608,677 | ' |
Total Loan Receivables | 21,085,197 | 16,267,684 | 17,246,112 |
Consumer Loans [Member] | ' | ' | ' |
Current | 898,574 | 983,094 | ' |
31-60 Days | 3,226 | 9,363 | ' |
61-89 Days | ' | 2,749 | ' |
Total Past Due | 3,226 | 12,112 | ' |
Total Loan Receivables | 901,800 | 995,206 | 1,047,046 |
Commercial Loans [Member] | ' | ' | ' |
Current | 80,633,889 | 84,384,426 | ' |
31-60 Days | 200,000 | ' | ' |
61-89 Days | ' | 41,090 | ' |
90 or Greater Days | 5,670,331 | 3,732,090 | ' |
Total Past Due | 5,870,331 | 3,773,180 | ' |
Total Loan Receivables | 86,504,220 | 88,157,606 | 86,057,488 |
Home Equity and Second Mortgage [Member] | ' | ' | ' |
Current | 21,388,847 | 21,499,018 | ' |
31-60 Days | 199,217 | 350,715 | ' |
61-89 Days | 123,916 | 61,346 | ' |
90 or Greater Days | ' | 71,296 | ' |
Total Past Due | 323,133 | 483,357 | ' |
Total Loan Receivables | 21,711,980 | 21,982,375 | 21,940,441 |
Construction and Land Development [Member] | ' | ' | ' |
Current | 30,786,474 | 31,818,782 | ' |
31-60 Days | 326,671 | ' | ' |
Total Past Due | 326,671 | ' | ' |
Total Loan Receivables | 31,113,145 | 31,818,782 | 31,639,206 |
Residential Mortgage [Member] | ' | ' | ' |
Current | 159,568,816 | 173,593,886 | ' |
31-60 Days | ' | 97,307 | ' |
61-89 Days | 137,772 | 802,757 | ' |
90 or Greater Days | 2,155,122 | 3,169,404 | ' |
Total Past Due | 2,292,894 | 4,069,468 | ' |
Total Loan Receivables | 161,861,710 | 177,663,354 | 176,825,516 |
Commercial Real Estate [Member] | ' | ' | ' |
Current | 440,735,812 | 416,721,658 | ' |
61-89 Days | 1,978,619 | 1,417,810 | ' |
90 or Greater Days | 2,947,607 | 1,527,844 | ' |
Total Past Due | 4,926,226 | 2,945,654 | ' |
Total Loan Receivables | $445,662,038 | $419,667,312 | $406,261,770 |
LOANS_Allowance_for_Credit_Los
LOANS (Allowance for Credit Losses on Financing Receivables) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | $8,033,553 | $7,464,137 | $8,246,957 | $7,655,041 | $7,655,041 |
Charge-offs | -249,982 | -114,512 | -892,306 | -1,122,128 | -2,026,626 |
Recoveries | 10,096 | 452 | 84,416 | 39,659 | 89,861 |
Provision for loan losses | 285,610 | 746,075 | 640,210 | 1,523,580 | 2,528,681 |
Ending Balance | 8,079,277 | 8,096,152 | 8,079,277 | 8,096,152 | 8,246,957 |
Ending balance: individually evaluated for impairment | 1,044,770 | 2,030,855 | 1,044,770 | 2,030,855 | 1,547,657 |
Ending balance: collectively evaluated for impairment | 7,034,507 | 6,065,297 | 7,034,507 | 6,065,297 | 6,699,300 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 768,840,090 | 741,017,579 | 768,840,090 | 741,017,579 | 756,552,319 |
Ending balance: individually evaluated for impairment | 40,550,169 | 45,601,099 | 40,550,169 | 45,601,099 | 38,990,435 |
Ending balance: collectively evaluated for impairment | 728,289,921 | 695,416,480 | 728,289,921 | 695,416,480 | 717,561,884 |
Commercial Equipment [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 216,560 | 287,722 | 292,281 | 223,296 | 223,296 |
Charge-offs | -31 | -90 | -22,008 | -149,884 | -168,802 |
Recoveries | 9,746 | ' | 59,293 | ' | ' |
Provision for loan losses | 56,207 | 20,532 | -47,084 | 234,752 | 237,787 |
Ending Balance | 282,482 | 308,164 | 282,482 | 308,164 | 292,281 |
Ending balance: individually evaluated for impairment | 22,875 | 4,715 | 22,875 | 4,715 | 4,421 |
Ending balance: collectively evaluated for impairment | 259,607 | 303,449 | 259,607 | 303,449 | 287,860 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 21,085,197 | 17,246,112 | 21,085,197 | 17,246,112 | 16,267,684 |
Ending balance: individually evaluated for impairment | 316,662 | 4,715 | 316,662 | 4,715 | 4,421 |
Ending balance: collectively evaluated for impairment | 20,768,535 | 17,241,397 | 20,768,535 | 17,241,397 | 16,263,263 |
Commercial Loans [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 1,519,332 | 1,968,491 | 1,949,024 | 3,850,294 | 3,850,294 |
Charge-offs | -28,576 | -413 | -434,149 | -693,461 | -1,003,824 |
Recoveries | 168 | 23 | 12,059 | 1,983 | 51,350 |
Provision for loan losses | 272,009 | -14,062 | 235,999 | -1,204,777 | -948,796 |
Ending Balance | 1,762,933 | 1,954,039 | 1,762,933 | 1,954,039 | 1,949,024 |
Ending balance: individually evaluated for impairment | 291,821 | 499,654 | 291,821 | 499,654 | 353,883 |
Ending balance: collectively evaluated for impairment | 1,471,112 | 1,454,385 | 1,471,112 | 1,454,385 | 1,595,141 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 86,504,220 | 86,057,488 | 86,504,220 | 86,057,488 | 88,157,606 |
Ending balance: individually evaluated for impairment | 11,054,771 | 12,972,808 | 11,054,771 | 12,972,808 | 8,778,681 |
Ending balance: collectively evaluated for impairment | 75,449,449 | 73,084,680 | 75,449,449 | 73,084,680 | 79,378,925 |
Consumer Loans [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 13,972 | 18,316 | 19,341 | 19,119 | 19,119 |
Charge-offs | -1,012 | ' | -10,003 | -999 | -4,994 |
Recoveries | 28 | ' | 2,010 | ' | 987 |
Provision for loan losses | 1,539 | 1,505 | 3,179 | 1,701 | 4,229 |
Ending Balance | 14,527 | 19,821 | 14,527 | 19,821 | 19,341 |
Ending balance: collectively evaluated for impairment | 14,527 | 19,821 | 14,527 | 19,821 | 19,341 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 901,800 | 1,047,046 | 901,800 | 1,047,046 | 995,206 |
Ending balance: individually evaluated for impairment | 31,935 | 60,925 | 31,935 | 60,925 | 51,748 |
Ending balance: collectively evaluated for impairment | 869,865 | 986,121 | 869,865 | 986,121 | 943,458 |
Home Equity and Second Mortgage [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 364,281 | 212,791 | 279,819 | 143,543 | 143,543 |
Charge-offs | -155 | -46,989 | -111,038 | -88,931 | -210,753 |
Provision for loan losses | -45,812 | 18,402 | 149,533 | 129,592 | 347,029 |
Ending Balance | 318,314 | 184,204 | 318,314 | 184,204 | 279,819 |
Ending balance: individually evaluated for impairment | ' | 21,855 | ' | 21,855 | ' |
Ending balance: collectively evaluated for impairment | 318,314 | 162,349 | 318,314 | 162,349 | 279,819 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 21,711,980 | 21,940,441 | 21,711,980 | 21,940,441 | 21,982,375 |
Ending balance: individually evaluated for impairment | 58,000 | 293,855 | 58,000 | 293,855 | 291,000 |
Ending balance: collectively evaluated for impairment | 21,653,980 | 21,646,586 | 21,653,980 | 21,646,586 | 21,691,375 |
Construction and Land Development [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 600,525 | 596,854 | 533,430 | 354,385 | 354,385 |
Charge-offs | -50 | -5,995 | -36,012 | -5,995 | -140,835 |
Provision for loan losses | -131,581 | 40,378 | -28,524 | 282,847 | 319,880 |
Ending Balance | 468,894 | 631,237 | 468,894 | 631,237 | 533,430 |
Ending balance: individually evaluated for impairment | ' | 134,500 | ' | 134,500 | ' |
Ending balance: collectively evaluated for impairment | 468,894 | 496,737 | 468,894 | 496,737 | 533,430 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 31,113,145 | 31,639,206 | 31,113,145 | 31,639,206 | 31,818,782 |
Ending balance: individually evaluated for impairment | 5,349,737 | 5,217,025 | 5,349,737 | 5,217,025 | 4,877,868 |
Ending balance: collectively evaluated for impairment | 25,763,408 | 26,422,181 | 25,763,408 | 26,422,181 | 26,940,914 |
Residential Mortgage [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 1,960,882 | 901,505 | 1,083,228 | 539,205 | 539,205 |
Charge-offs | -80,110 | -10,991 | -139,048 | -10,991 | -10,987 |
Recoveries | 154 | 429 | 11,054 | 37,676 | 37,524 |
Provision for loan losses | -177,787 | -3,991 | 747,905 | 321,062 | 517,486 |
Ending Balance | 1,703,139 | 886,952 | 1,703,139 | 886,952 | 1,083,228 |
Ending balance: individually evaluated for impairment | 170,741 | 247,541 | 170,741 | 247,541 | 403,475 |
Ending balance: collectively evaluated for impairment | 1,532,398 | 639,411 | 1,532,398 | 639,411 | 679,753 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 161,861,710 | 176,825,516 | 161,861,710 | 176,825,516 | 177,663,354 |
Ending balance: individually evaluated for impairment | 3,882,548 | 4,011,851 | 3,882,548 | 4,011,851 | 3,367,827 |
Ending balance: collectively evaluated for impairment | 157,979,162 | 172,813,665 | 157,979,162 | 172,813,665 | 174,295,527 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 3,358,001 | 3,478,458 | 4,089,834 | 2,525,199 | 2,525,199 |
Charge-offs | -140,048 | -50,034 | -140,048 | -171,867 | -486,431 |
Provision for loan losses | 311,035 | 683,311 | -420,798 | 1,758,403 | 2,051,066 |
Ending Balance | 3,528,988 | 4,111,735 | 3,528,988 | 4,111,735 | 4,089,834 |
Ending balance: individually evaluated for impairment | 559,333 | 1,122,590 | 559,333 | 1,122,590 | 785,878 |
Ending balance: collectively evaluated for impairment | 2,969,655 | 2,989,145 | 2,969,655 | 2,989,145 | 3,303,956 |
Loan receivables: | ' | ' | ' | ' | ' |
Loans | 445,662,038 | 406,261,770 | 445,662,038 | 406,261,770 | 419,667,312 |
Ending balance: individually evaluated for impairment | 19,856,516 | 23,039,920 | 19,856,516 | 23,039,920 | 21,618,890 |
Ending balance: collectively evaluated for impairment | $425,805,522 | $383,221,850 | $425,805,522 | $383,221,850 | $398,048,422 |
LOANS_Schedule_of_Financing_Re1
LOANS (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Loans | $768,840,090 | $756,552,319 | $741,017,579 |
Commercial Equipment [Member] | ' | ' | ' |
Loans | 21,085,197 | 16,267,684 | 17,246,112 |
Commercial Equipment [Member] | Unrated [Member] | ' | ' | ' |
Loans | 5,938,295 | 5,082,713 | ' |
Commercial Equipment [Member] | Pass [Member] | ' | ' | ' |
Loans | 15,121,129 | 11,180,550 | ' |
Commercial Equipment [Member] | Special Mention [Member] | ' | ' | ' |
Loans | 2,898 | ' | ' |
Commercial Equipment [Member] | Substandard [Member] | ' | ' | ' |
Loans | 22,875 | 4,421 | ' |
Commercial Loans [Member] | ' | ' | ' |
Loans | 86,504,220 | 88,157,606 | 86,057,488 |
Commercial Loans [Member] | Unrated [Member] | ' | ' | ' |
Loans | 11,401,481 | 11,627,726 | ' |
Commercial Loans [Member] | Pass [Member] | ' | ' | ' |
Loans | 60,365,389 | 64,436,809 | ' |
Commercial Loans [Member] | Special Mention [Member] | ' | ' | ' |
Loans | 402,000 | ' | ' |
Commercial Loans [Member] | Substandard [Member] | ' | ' | ' |
Loans | 14,335,350 | 12,093,071 | ' |
Consumer Loans [Member] | ' | ' | ' |
Loans | 901,800 | 995,206 | 1,047,046 |
Consumer Loans [Member] | Performing Financing Receivable [Member] | ' | ' | ' |
Loans | 901,800 | 995,206 | ' |
Home Equity and Second Mortgage [Member] | ' | ' | ' |
Loans | 21,711,980 | 21,982,375 | 21,940,441 |
Home Equity and Second Mortgage [Member] | Performing Financing Receivable [Member] | ' | ' | ' |
Loans | 21,711,980 | 21,911,079 | ' |
Home Equity and Second Mortgage [Member] | Nonperforming Financing Receivable [Member] | ' | ' | ' |
Loans | ' | 71,296 | ' |
Residential Mortgage [Member] | ' | ' | ' |
Loans | 161,861,710 | 177,663,354 | 176,825,516 |
Residential Mortgage [Member] | Performing Financing Receivable [Member] | ' | ' | ' |
Loans | 159,706,588 | 174,493,950 | ' |
Residential Mortgage [Member] | Nonperforming Financing Receivable [Member] | ' | ' | ' |
Loans | 2,155,122 | 3,169,404 | ' |
Construction and Land Development [Member] | ' | ' | ' |
Loans | 31,113,145 | 31,818,782 | 31,639,206 |
Construction and Land Development [Member] | Unrated [Member] | ' | ' | ' |
Loans | 4,339,477 | 4,330,321 | ' |
Construction and Land Development [Member] | Pass [Member] | ' | ' | ' |
Loans | 18,631,753 | 19,752,749 | ' |
Construction and Land Development [Member] | Substandard [Member] | ' | ' | ' |
Loans | 8,141,915 | 7,735,712 | ' |
Commercial Real Estate [Member] | ' | ' | ' |
Loans | 445,662,038 | 419,667,312 | 406,261,770 |
Commercial Real Estate [Member] | Unrated [Member] | ' | ' | ' |
Loans | 63,842,162 | 59,930,126 | ' |
Commercial Real Estate [Member] | Pass [Member] | ' | ' | ' |
Loans | 351,452,830 | 329,882,941 | ' |
Commercial Real Estate [Member] | Special Mention [Member] | ' | ' | ' |
Loans | 5,790,532 | 4,880,758 | ' |
Commercial Real Estate [Member] | Substandard [Member] | ' | ' | ' |
Loans | $24,576,514 | $24,973,487 | ' |
LOANS_Impaired_Financing_Recei
LOANS (Impaired Financing Receivables) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Unpaid Contractual Principal Balance | $40,738,183 | $46,658,749 | $40,738,183 | $46,658,749 | $38,990,435 |
Recorded Investment With No Allowance | 35,134,448 | 39,659,384 | 35,134,448 | 39,659,384 | 34,717,598 |
Recorded Investment With Allowance | 5,415,721 | 5,941,716 | 5,415,721 | 5,941,716 | 4,272,836 |
Total Recorded Investment | 40,550,169 | 45,601,099 | 40,550,169 | 45,601,099 | 38,990,435 |
Related Allowance | 1,044,770 | 2,030,855 | 1,044,770 | 2,030,855 | 1,547,657 |
Average Recorded Investment | 40,805,293 | 46,097,070 | 40,971,848 | 47,152,273 | 40,127,336 |
Interest Income Recognized | 385,340 | 517,697 | 1,261,145 | 1,531,715 | 1,850,050 |
Consumer Loans [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 31,935 | 60,925 | 31,935 | 60,925 | 51,748 |
Recorded Investment With No Allowance | 31,935 | 60,925 | 31,935 | 60,925 | 51,748 |
Total Recorded Investment | 31,935 | 60,925 | 31,935 | 60,925 | 51,748 |
Average Recorded Investment | 36,393 | 63,492 | 43,199 | 70,365 | 64,459 |
Interest Income Recognized | 1,112 | 1,557 | 2,759 | 4,500 | 5,284 |
Commercial Loans [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 11,054,771 | 13,572,808 | 11,054,771 | 13,572,808 | 8,778,681 |
Recorded Investment With No Allowance | 10,333,950 | 12,196,993 | 10,333,950 | 12,196,993 | 8,330,442 |
Recorded Investment With Allowance | 720,821 | 775,815 | 720,821 | 775,815 | 448,238 |
Total Recorded Investment | 11,054,771 | 12,972,808 | 11,054,771 | 12,972,808 | 8,778,681 |
Related Allowance | 291,821 | 499,654 | 291,821 | 499,654 | 353,883 |
Average Recorded Investment | 11,028,319 | 13,486,660 | 10,967,594 | 13,871,661 | 9,153,074 |
Interest Income Recognized | 66,604 | 105,044 | 292,138 | 321,821 | 284,095 |
Commercial Equipment [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 335,563 | 4,715 | 335,563 | 4,715 | 4,421 |
Recorded Investment With No Allowance | 293,787 | ' | 293,787 | ' | ' |
Recorded Investment With Allowance | 22,875 | 4,715 | 22,875 | 4,715 | 4,421 |
Total Recorded Investment | 316,662 | 4,715 | 316,662 | 4,715 | 4,421 |
Related Allowance | 22,875 | 4,715 | 22,875 | 4,715 | 4,421 |
Average Recorded Investment | 336,106 | 4,909 | 350,886 | 5,309 | 5,112 |
Interest Income Recognized | 1,238 | 83 | 7,740 | 266 | 318 |
Home Equity and Second Mortgage [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 58,000 | 293,855 | 58,000 | 293,855 | 291,000 |
Recorded Investment With No Allowance | 58,000 | 272,000 | 58,000 | 272,000 | 291,000 |
Recorded Investment With Allowance | ' | 21,855 | ' | 21,855 | ' |
Total Recorded Investment | 58,000 | 293,855 | 58,000 | 293,855 | 291,000 |
Related Allowance | ' | 21,855 | ' | 21,855 | ' |
Average Recorded Investment | 120,000 | 246,399 | 216,556 | 220,572 | 221,000 |
Interest Income Recognized | 1,486 | 1,870 | 6,016 | 5,373 | 6,783 |
Construction and Land Development [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 5,349,737 | 5,217,025 | 5,349,737 | 5,217,025 | 4,877,868 |
Recorded Investment With No Allowance | 5,349,737 | 5,082,525 | 5,349,737 | 5,082,525 | 4,877,868 |
Recorded Investment With Allowance | ' | 134,500 | ' | 134,500 | ' |
Total Recorded Investment | 5,349,737 | 5,217,025 | 5,349,737 | 5,217,025 | 4,877,868 |
Related Allowance | ' | 134,500 | ' | 134,500 | ' |
Average Recorded Investment | 5,363,126 | 5,145,911 | 5,311,703 | 5,701,121 | 4,792,982 |
Interest Income Recognized | 77,157 | 90,653 | 223,963 | 205,509 | 276,260 |
Residential Mortgage [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 3,882,548 | 4,011,851 | 3,882,548 | 4,011,851 | 3,367,827 |
Recorded Investment With No Allowance | 3,181,637 | 2,347,285 | 3,181,637 | 2,347,285 | 2,362,062 |
Recorded Investment With Allowance | 700,911 | 1,664,567 | 700,911 | 1,664,567 | 1,005,765 |
Total Recorded Investment | 3,882,548 | 4,011,851 | 3,882,548 | 4,011,851 | 3,367,827 |
Related Allowance | 170,741 | 247,541 | 170,741 | 247,541 | 403,475 |
Average Recorded Investment | 3,910,884 | 4,021,446 | 3,919,666 | 4,025,659 | 3,388,867 |
Interest Income Recognized | 30,371 | 35,750 | 96,616 | 121,746 | 157,595 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 20,025,629 | 23,497,570 | 20,025,629 | 23,497,570 | 21,618,890 |
Recorded Investment With No Allowance | 15,885,402 | 19,699,656 | 15,885,402 | 19,699,656 | 18,804,478 |
Recorded Investment With Allowance | 3,971,114 | 3,340,264 | 3,971,114 | 3,340,264 | 2,814,412 |
Total Recorded Investment | 19,856,516 | 23,039,920 | 19,856,516 | 23,039,920 | 21,618,890 |
Related Allowance | 559,333 | 1,122,590 | 559,333 | 1,122,590 | 785,878 |
Average Recorded Investment | 20,010,465 | 23,128,253 | 20,162,244 | 23,257,586 | 22,501,842 |
Interest Income Recognized | $207,372 | $282,740 | $631,913 | $872,500 | $1,119,715 |
LOANS_Troubled_Debt_Restructur
LOANS (Troubled Debt Restructurings on Financing Receivables) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
loan | loan | |
Financing Receivable Post Modification Recorded Investment | $4,637,797 | $4,515,443 |
Number of Loans | 12 | 10 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable Post Modification Recorded Investment | 1,485,600 | 1,418,229 |
Number of Loans | 4 | 3 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable Post Modification Recorded Investment | $3,152,197 | $3,097,214 |
Number of Loans | 8 | 7 |
LOANS_HELD_FOR_SALE_Details
LOANS HELD FOR SALE (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Maximum [Member] | ' |
Period of time between issuance of a loan and closing and sale of a loan | '60 days |
Minimum [Member] | ' |
Period of time between issuance of a loan and closing and sale of a loan | '15 days |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | ' |
Loans payable | $25.80 |
Letters of credit outstanding, amount | $24.70 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Assets | ' | ' | ' | ' |
Investment securities - AFS, Carrying amount | $50,869,490 | $47,205,663 | ' | ' |
Investment securities - HTM, Carrying amount | 91,349,615 | 112,619,434 | ' | ' |
Federal Home Loan Bank and Federal Reserve Stock, Carrying Amount | 5,593,100 | 5,476,050 | ' | ' |
Loans, Carrying amount | 759,880,727 | 747,640,752 | ' | ' |
Other real estate owned, Carrying amount | 7,058,504 | 6,891,353 | 6,095,233 | 5,028,513 |
Investment securities - AFS, Fair value | 50,869,490 | 47,205,663 | ' | ' |
Investment securities - HTM, Fair value | 91,050,953 | 114,187,018 | ' | ' |
Federal Home Loan Bank and Federal Reserve Stock, Fair value | 6,198,000 | 5,469,000 | ' | ' |
Loans, Fair value | 753,916,000 | 757,387,000 | ' | ' |
Other real estate owned, Fair value | 7,058,504 | 6,891,353 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Savings, NOW and money market accounts, Carrying amount | 432,564,049 | 414,776,285 | ' | ' |
Time deposits, Carrying amount | 384,683,410 | 405,454,003 | ' | ' |
Long-term debt, Carrying amount | 70,488,848 | 60,527,208 | ' | ' |
Short term borrowings, Carrying amount | 2,640,000 | 1,000,000 | ' | ' |
Guaranteed preferred beneficial interest in junior subordinated debentures, Carrying amount | 12,000,000 | 12,000,000 | ' | ' |
Savings, NOW and money market accounts, Fair value | 432,564,049 | 414,776,285 | ' | ' |
Time deposits, Fair value | 387,119,000 | 410,257,000 | ' | ' |
Long-term debt, Fair value | 71,382,000 | 64,252,000 | ' | ' |
Short term borrowings, Fair value | 2,640,000 | 1,000,000 | ' | ' |
Guaranteed preferred beneficial interest in junior subordinated debentures, Fair value | 2,400,000 | 2,400,000 | ' | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investment securities - HTM, Fair value | 749,962 | 749,941 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investment securities - AFS, Fair value | 50,869,490 | 47,205,663 | ' | ' |
Investment securities - HTM, Fair value | 90,300,991 | 113,437,077 | ' | ' |
Federal Home Loan Bank and Federal Reserve Stock, Fair value | 6,198,000 | 5,469,000 | ' | ' |
Loans, Fair value | 753,916,000 | 757,387,000 | ' | ' |
Other real estate owned, Fair value | 7,058,504 | 6,891,353 | ' | ' |
Liabilities [Abstract] | ' | ' | ' | ' |
Savings, NOW and money market accounts, Fair value | 432,564,049 | 414,776,285 | ' | ' |
Time deposits, Fair value | 387,119,000 | 410,257,000 | ' | ' |
Long-term debt, Fair value | 71,382,000 | 64,252,000 | ' | ' |
Short term borrowings, Fair value | 2,640,000 | 1,000,000 | ' | ' |
Guaranteed preferred beneficial interest in junior subordinated debentures, Fair value | $2,400,000 | $2,400,000 | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' |
Net unrealized holding gain (loss) arising during period, Before Tax | ($350,524) | $104,229 | ($1,591,096) | $115,973 |
Reclassification adjustments, Before Tax | ' | ' | ' | ' |
Other comprehensive loss, Before Tax | -350,524 | 104,229 | -1,591,096 | 115,973 |
Net unrealized holding gain (loss) arising during period, Tax Effect | -119,178 | 35,438 | -540,972 | 39,431 |
Reclassification adjustments, Tax Effect | ' | ' | ' | ' |
Other comprehensive loss, Tax Effect | -119,178 | 35,438 | -540,972 | 39,431 |
Net unrealized holding gain (loss) arising during period, Net of Tax | -231,346 | 68,791 | -1,050,124 | 76,542 |
Reclassification adjustments, Net of Tax | ' | ' | ' | ' |
Other comprehensive gain (loss), Net of Tax | ($231,346) | $68,791 | ($1,050,124) | $76,542 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' |
Net Unrealized Gains And Losses, Beginning balance | ($679,594) | ' | $139,184 | ' |
Other comprehensive loss before reclassifications | -231,346 | 68,791 | -1,050,124 | 76,542 |
Amounts reclassified from accumulated other comprehensive Income | ' | ' | ' | ' |
Net other comprehensive loss | -231,346 | 68,791 | -1,050,124 | 76,542 |
Net Unrealized Gains And Losses, Ending balance | ($910,940) | ' | ($910,940) | ' |