Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 10, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | BANK OF SOUTH CAROLINA CORP | |
Entity Central Index Key | 1,007,273 | |
Document Type | 10-Q | |
Trading Symbol | BKSC | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,980,009 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 8,746,291 | $ 8,141,030 |
Interest-bearing deposits at the Federal Reserve Bank | 23,881,649 | 18,101,300 |
Investment securities available for sale | 132,660,381 | 119,978,944 |
Mortgage loans to be sold | 2,232,201 | 4,386,210 |
Loans | 260,229,745 | 260,576,115 |
Less: Allowance for loan losses | (3,927,515) | (3,851,617) |
Net loans | 256,302,230 | 256,724,498 |
Premises, equipment and leasehold improvements, net | 2,270,977 | 2,296,624 |
Other real estate owned | 475,800 | 521,943 |
Accrued interest receivable | 1,551,357 | 1,614,002 |
Other assets | 2,183,113 | 2,185,085 |
Total assets | 430,303,999 | 413,949,636 |
Deposits: | ||
Non-interest-bearing demand | 132,051,130 | 126,034,478 |
Interest-bearing demand | 94,401,633 | 96,260,589 |
Money market accounts | 81,827,246 | 77,307,662 |
Time deposits over $250,000 | 17,959,145 | 17,822,136 |
Other time deposits | 26,559,417 | 26,019,121 |
Other savings deposits | 33,493,698 | 29,078,865 |
Total deposits | 386,292,269 | 372,522,851 |
Accrued interest payable and other liabilities | 958,771 | 813,811 |
Total liabilities | 387,251,040 | 373,336,662 |
Shareholders' equity | ||
Common stock-no par, 12,000,000 shares authorized; 5,211,285 and 5,197,535 shares issued at June 30, 2017 and December 31, 2016, respectively; 4,969,889 and 4,956,139 shares outstanding at June 30, 2017 and December 31, 2016, respectively | ||
Additional paid in capital | 37,015,422 | 36,824,022 |
Retained earnings | 7,865,149 | 6,643,476 |
Treasury stock: 241,396 shares at June 30, 2017 and December 31, 2016 | (2,247,415) | (2,247,415) |
Accumulated other comprehensive income (loss), net of income taxes | 419,803 | (607,109) |
Total shareholders' equity | 43,052,959 | 40,612,974 |
Total liabilities and shareholders' equity | $ 430,303,999 | $ 413,949,636 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value (in dollars per share) | ||
Common stock, authorized | 12,000,000 | 12,000,000 |
Common stock, issued | 5,211,285 | 5,197,535 |
Common stock, outstanding | 4,969,889 | 4,956,139 |
Treasury stock, shares | 241,396 | 241,396 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest and fee income | ||||
Loans, including fees | $ 3,221,855 | $ 3,208,836 | $ 6,363,593 | $ 6,242,879 |
Taxable securities | 399,909 | 290,486 | 738,756 | 613,619 |
Tax-exempt securities | 256,202 | 240,171 | 527,087 | 479,485 |
Other | 55,319 | 31,176 | 95,270 | 66,750 |
Total interest and fee income | 3,933,285 | 3,770,669 | 7,724,706 | 7,402,733 |
Interest expense | ||||
Deposits | 106,522 | 92,981 | 203,304 | 187,120 |
Short-term borrowings | 7 | 7 | ||
Total interest expense | 106,522 | 92,988 | 203,304 | 187,127 |
Net interest income | 3,826,763 | 3,677,681 | 7,521,402 | 7,215,606 |
Provision for loan losses | 30,000 | 140,000 | 32,500 | 185,000 |
Net interest income after provision for loan losses | 3,796,763 | 3,537,681 | 7,488,902 | 7,030,606 |
Other income | ||||
Service charges, fees and commissions | 287,873 | 265,736 | 557,439 | 526,267 |
Mortgage banking income | 400,519 | 296,891 | 675,624 | 648,764 |
Gains on sales of securities | 160,391 | 348,327 | ||
Other non-interest income | 8,087 | 6,554 | 15,290 | 12,243 |
Total other income | 696,479 | 729,572 | 1,248,353 | 1,535,601 |
Other expense | ||||
Salaries and employee benefits | 1,500,362 | 1,480,420 | 2,970,571 | 2,995,446 |
Net occupancy expense | 393,763 | 380,311 | 757,908 | 756,710 |
Other operating expenses | 649,855 | 576,150 | 1,287,131 | 1,207,422 |
Net other real estate owned expenses | 46,143 | 46,143 | 13,450 | |
Total other expenses | 2,590,123 | 2,436,881 | 5,061,753 | 4,973,028 |
Income before income tax expense | 1,903,119 | 1,830,372 | 3,675,502 | 3,593,179 |
Income tax expense | 516,734 | 518,262 | 1,063,029 | 1,085,333 |
Net income | $ 1,386,385 | $ 1,312,110 | $ 2,612,473 | $ 2,507,846 |
Weighted average shares outstanding | ||||
Basic (in shares) | 4,967,907 | 4,929,722 | 4,965,094 | 4,923,266 |
Diluted (in shares) | 5,072,908 | 5,056,523 | 5,069,024 | 5,047,601 |
Basic income per common share (in dollars per share) | $ 0.28 | $ 0.27 | $ 0.53 | $ 0.51 |
Diluted income per common share (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.52 | $ 0.50 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,386,385 | $ 1,312,110 | $ 2,612,473 | $ 2,507,846 |
Other comprehensive income: | ||||
Unrealized gain on securities arising during the period | 996,733 | 553,433 | 1,582,555 | 1,679,929 |
Reclassification adjustment for securities gains realized in net income | (160,391) | (348,327) | ||
Other comprehensive income, before tax | 996,733 | 393,042 | 1,582,555 | 1,331,602 |
Income tax effect related to items of other comprehensive income | (338,889) | (145,426) | (555,643) | (492,692) |
Other comprehensive income, after tax | 657,844 | 247,616 | 1,026,912 | 838,910 |
Total comprehensive income | $ 2,044,229 | $ 1,559,726 | $ 3,639,385 | $ 3,346,756 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) | ADDITIONAL PAID IN CAPITAL [Member] | RETAINED EARNINGS [Member] | TREASURY STOCK [Member] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Member] | Total |
Beginning Balance at Dec. 31, 2015 | $ 36,341,744 | $ 4,064,834 | $ (2,247,415) | $ 992,549 | $ 39,151,712 |
Net income | 2,507,846 | 2,507,846 | |||
Other comprehensive income | 838,910 | 838,910 | |||
Exercise of stock options | 260,546 | 260,546 | |||
Stock-based compensation expense | 39,683 | 39,683 | |||
Cash dividends | (1,281,709) | (1,281,709) | |||
Ending balance at Jun. 30, 2016 | 36,641,973 | 5,290,971 | (2,247,415) | 1,831,459 | 41,516,988 |
Beginning Balance at Dec. 31, 2016 | 36,824,022 | 6,643,476 | (2,247,415) | (607,109) | 40,612,974 |
Net income | 2,612,473 | 2,612,473 | |||
Other comprehensive income | 1,026,912 | 1,026,912 | |||
Exercise of stock options | 154,858 | 154,858 | |||
Stock-based compensation expense | 36,542 | 36,542 | |||
Cash dividends | (1,390,800) | (1,390,800) | |||
Ending balance at Jun. 30, 2017 | $ 37,015,422 | $ 7,865,149 | $ (2,247,415) | $ 419,803 | $ 43,052,959 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.28 | $ 0.26 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 2,612,473 | $ 2,507,846 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 94,994 | 95,732 |
Gain on sale of securities | (348,327) | |
Loss on sale of other real estate | 13,450 | |
Valuation and other adjustments to other real estate | 46,143 | |
Provision for loan losses | 32,500 | 185,000 |
Stock-based compensation expense | 36,542 | 39,683 |
Deferred income taxes | (553,671) | |
Net amortization of unearned discounts on investment securities | 198,768 | 92,417 |
Origination of mortgage loans held for sale | (32,568,879) | (36,412,202) |
Proceeds from sale of mortgage loans held for sale | 34,722,888 | 35,731,989 |
Decrease (increase) in accrued interest receivable and other assets | 62,645 | (292,725) |
Increase (decrease) in accrued interest payable and other liabilities | 143,193 | (99,874) |
Net cash provided by operating activities | 4,827,596 | 1,512,989 |
Cash flows from investing activities: | ||
Proceeds from calls and maturities of investment securities available for sale | 3,787,150 | 4,146,000 |
Proceeds from sale of available for sale securities | 21,113,400 | |
Purchase of investment securities available for sale | (15,084,800) | (9,033,245) |
Proceeds from sale of other real estate | 85,001 | |
Net decrease (increase) in loans | 389,768 | (27,767,765) |
Purchase of premises, equipment and leasehold improvements, net | (69,347) | (24,658) |
Net cash used in investing activities | (10,977,229) | (11,481,267) |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 13,769,418 | 23,503,668 |
Dividends paid | (1,389,033) | (1,278,434) |
Stock options exercised | 154,858 | 260,546 |
Net cash provided by financing activities | 12,535,243 | 22,485,780 |
Net increase in cash and cash equivalents | 6,385,610 | 12,517,502 |
Cash and cash equivalents at beginning of year | 26,242,330 | 29,194,786 |
Cash and cash equivalents at end of year | 32,627,940 | 41,712,288 |
Cash paid during the year for: | ||
Interest | 254,933 | 190,343 |
Income taxes | 1,511,965 | 1,069,840 |
Supplemental disclosure for non-cash investing and financing activity: | ||
Change in unrealized gain on securities available for sale, net of income taxes | 1,026,912 | 838,910 |
Change in dividends payable | $ 1,767 | $ 3,275 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Note 1: Nature of Business and Basis of Presentation Organization The Bank of South Carolina (the “Bank”) was organized on October 22, 1986 and opened for business as a state-chartered financial institution on February 26, 1987, in Charleston, South Carolina. The Bank was reorganized into a wholly-owned subsidiary of Bank of South Carolina Corporation (the “Company”), effective April 17, 1995. At the time of the reorganization, each outstanding share of the Bank was exchanged for two shares of Bank of South Carolina Corporation Stock. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. During consolidation, all significant intercompany balances and transactions have been eliminated. References to “we”, “us”, “our”, “the Bank”, or “the Company” refer to the parent and its subsidiary that are consolidated for financial purposes. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for the interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 3, 2017. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. Accounting Estimates and Assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ significantly from these estimates and assumptions. Material estimates generally susceptible to significant change are related to the determination of the allowance for loan losses, impaired loans, other real estate owned, deferred tax assets, the fair value of financial instruments and other-than-temporary impairment of investment securities. Reclassification Certain amounts in the prior years’ financial statements have been reclassified to conform to the current period’s presentation. Such reclassifications had no effect on shareholders’ equity or the net income as previously reported. Income per share Basic income per share represents income available to shareholders divided by the weighted-average number of common shares outstanding during the period. Dilutive income per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. The only potential common share equivalents are those related to stock options. Stock options that are anti-dilutive are excluded from the calculation of diluted net income per share. The dilutive effect of options outstanding under our stock compensation plan is reflected in diluted earnings per share by the application of the treasury stock method. Retroactive recognition has been given for the effects of all stock dividends. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. We have reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure. Recent Accounting Pronouncements The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting and/or disclosure of financial information by the Company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, Topic 606 . The core principle of the new standard is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. This guidance also includes expanded disclosure requirements that result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. In August 2015, the FASB deferred the effective date of the amendments. As a result of the deferral, the guidance will be effective for the Company for reporting periods beginning after December 15, 2017. We will apply this guidance using a modified retrospective approach. We do not expect this amendment to have a material effect on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10); Recognition and Measurement of Financial Instruments and Financial Liabilities . This update addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect this amendment to have a material effect on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which revises certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the effect that implementation of the new standard will have on our financial position, results of operations, and cash flows. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect this amendment to have a material effect on its financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share – Based Payment Accounting, to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments became effective for the Company on January 1, 2017 and this amendment did not have a material effect on its financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow- Scope Improvements and Practical Expedients , to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will continue to evaluate the impact of this ASU and does not expect these amendments to have a material effect on its financial statements. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which provided guidance to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update is intended to address concerns that the existing definition of a business has been applied too broadly and has resulted in many transactions being recorded as business acquisitions that in substance are more akin to asset acquisitions. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments should be applied prospectively on or after the effective date. The Company does not expect this amendment to have a material effect on its financial statements. In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets , to clarify the scope of established guidance on nonfinancial asset derecognition, issued as part of ASU 2014-09, Revenue from Contracts with Customers , as well as accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. This amendment is effective for annual periods beginning after December 15, 2017. The Company does not expect this amendment to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2: Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows: JUNE 30, 2017 AMORTIZED GROSS GROSS FAIR U.S. Treasury Notes $ 24,139,912 $ 62,201 $ (6,799 ) $ 24,195,314 Government-Sponsored Enterprises 66,708,908 391,749 (383,380 ) 66,717,277 Municipal Securities 41,192,677 865,966 (310,853 ) 41,747,790 Total $ 132,041,497 $ 1,319,916 $ (701,032 ) $ 132,660,381 DECEMBER 31, 2016 AMORTIZED GROSS GROSS FAIR U.S. Treasury Notes $ 24,148,295 $ 41,153 $ (250,385 ) $ 23,939,063 Government-Sponsored Enterprises 51,737,930 129,482 (833,321 ) 51,034,091 Municipal Securities 45,056,390 765,813 (816,413 ) 45,005,790 Total $ 120,942,615 $ 936,448 $ (1,900,119 ) $ 119,978,944 The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2017 and December 31, 2016, by contractual maturity are as follows: JUNE 30, 2017 DECEMBER 31, 2016 AMORTIZED FAIR AMORTIZED FAIR Due in one year or less $ 3,017,513 $ 3,038,231 $ 3,343,347 $ 3,350,205 Due in one year to five years 91,871,936 92,428,862 82,848,411 82,682,901 Due in five years to ten years 33,599,190 33,748,377 29,662,030 29,169,228 Due in ten years and over 3,552,859 3,444,911 5,088,827 4,776,610 Total $ 132,041,498 $ 132,660,381 $ 120,942,615 $ 119,978,944 Investment securities pledged to secure public deposits and for other purposes required or permitted by law at June 30, 2017 and December 31, 2016, had a fair value of $53.1 million and $47.6 million, respectively. The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016. We believe that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. Less Than 12 Months 12 Months or Longer Total # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss June 30, 2017 Available for sale U.S. Treasury notes 2 $ 10,142,188 $ (6,799 ) — $ — $ — 2 $ 10,142,188 $ (6,799 ) Government-sponsored enterprises 4 12,441,218 (326,380 ) 1 2,928,357 (57,000 ) 5 15,369,575 (383,380 ) Municipal securities 36 15,193,138 (310,853 ) — — — 36 15,193,138 (310,853 ) Total 42 $ 37,776,544 $ (644,032 ) 1 $ 2,928,357 $ (57,000 ) 43 $ 40,704,901 $ (701,032 ) December 31, 2016 Available for sale U.S. Treasury notes 4 $ 17,968,594 $ (250,385 ) — $ — $ — 4 $ 17,968,594 $ (250,385 ) Government-sponsored enterprises 8 30,136,720 (833,321 ) — — — 8 30,136,720 (833,321 ) Municipal securities 54 22,606,430 (816,413 ) — — — 54 22,606,430 (816,413 ) Total 66 $ 70,711,744 $ (1,900,119 ) — $ — $ — 66 $ 70,711,744 $ (1,900,119 ) We received proceeds from sales of securities available for sale and gross realized gains and losses as follows: For the Three Months Ended 2017 2016 Gross proceeds $ — $ 5,135,609 Gross realized gains — 160,391 Gross realized losses — — For the Six Months Ended 2017 2016 Gross proceeds $ — $ 21,113,400 Gross realized gains — 348,327 Gross realized losses — — The tax provision related to these gains was $59,382 and $128,881 for the three and six months ended June 30, 2016, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3: Loans and Allowance for Loan Losses Major classifications of loans (net of deferred loan fees of $143,374 at June 30, 2017 and $136,446 at December 31, 2016) are as follows: June 30, December 31, Commercial loans $ 56,281,569 $ 52,262,209 Commercial real estate: Construction 1,457,591 1,208,901 Other 121,477,838 122,968,126 Consumer: Real Estate 75,702,877 77,131,816 Other 5,309,870 7,005,063 260,229,745 260,576,115 Allowance for loan losses (3,927,515 ) (3,851,617 ) Loans, net $ 256,302,230 $ 256,724,498 We had $103.4 million and $101.2 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at June 30, 2017 and at December 31, 2016, respectively. Our portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Our internal credit risk grading system is based on experience with similarly graded loans, industry best practices, and regulatory guidance. Our internally assigned grades pursuant to the Board-approved lending policy are as follows: ● Excellent ● Good ● Satisfactory ● Watch ● OAEM ● Substandard ● Doubtful ● Loss The following tables illustrate credit quality by class and internally assigned grades as of June 30, 2017 and December 31, 2016. “Pass” includes loans internally graded as excellent, good and satisfactory. June 30, 2017 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 51,883,004 $ 1,061,069 $ 117,318,419 $ 73,856,986 $ 5,097,028 $ 249,216,506 Watch 2,480,236 396,522 1,425,095 1,351,454 177,229 5,830,536 OAEM 662,989 — 295,490 — — 958,479 Sub-Standard 1,255,340 — 2,438,834 494,437 35,613 4,224,224 Doubtful — — — — — — Loss — — — — — — Total $ 56,281,569 $ 1,457,591 $ 121,477,838 $ 75,702,877 $ 5,309,870 $ 260,229,745 December 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 48,289,944 $ 798,884 $ 116,490,396 $ 74,115,426 $ 6,728,367 $ 246,423,017 Watch 1,004,957 410,017 2,625,079 899,306 147,992 5,087,351 OAEM 1,666,048 — 995,549 630,957 28,939 3,321,493 Sub-Standard 1,301,260 — 2,857,102 1,486,127 99,765 5,744,254 Doubtful — — — — — — Loss — — — — — — Total $ 52,262,209 $ 1,208,901 $ 122,968,126 $ 77,131,816 $ 7,005,063 $ 260,576,115 The following tables include an aging analysis of the recorded investment in loans segregated by class: June 30, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Recorded Investment > 90 Days and Accruing Commercial $ 225,212 $ 19,467 $ — $ 244,679 $ 56,036,890 $ 56,281,569 $ — Commercial Real Estate -Construction — — — — 1,457,591 1,457,591 — Commercial Real Estate -Other 280,689 — 1,552,910 1,833,599 119,644,239 121,477,838 — Consumer Real Estate 140,920 21,200 — 162,120 75,540,757 75,702,877 — Consumer-Other — 99,982 — 99,982 5,209,888 5,309,870 — Total $ 646,821 $ 140,649 $ 1,552,910 $ 2,340,380 $ 257,889,365 $ 260,229,745 $ — December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Recorded Investment > 90 Days and Accruing Commercial $ 438,159 $ — $ — $ 438,159 $ 51,824,050 $ 52,262,209 $ — Commercial Real Estate -Construction — — — — 1,208,901 1,208,901 — Commercial Real Estate -Other 6,363 — 1,501,153 1,507,516 121,460,610 122,968,126 89,908 Consumer Real Estate 415,457 — — 415,457 76,716,359 77,131,816 — Consumer-Other 56,784 — 33,322 90,106 6,914,957 7,005,063 33,322 Total $ 916,763 $ — $ 1,534,475 $ 2,451,238 $ 258,124,877 $ 260,576,115 $ 123,230 There were no loans at June 30, 2017 and two loans at December 31, 2016 over 90 days past due and still accruing. The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual June 30, December 31, Commercial $ 52,050 $ 61,781 Commercial Real Estate - Construction — — Commercial Real Estate - Other 1,782,819 1,678,876 Consumer - Real Estate — — Consumer - Other — 964 Total $ 1,834,869 $ 1,741,621 The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and six months ended June 30, 2017 and June 30, 2016. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. Three Months Ended June 30, 2017 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 1,553,159 $ 57,071 $ 1,418,575 $ 756,892 $ 91,160 $ 3,876,857 Charge-offs — — — — (2,372 ) (2,372 ) Recoveries — — — 21,000 2,030 23,030 Provisions 75,513 (4,308 ) (35,656 ) (6,039 ) 490 30,000 Ending Balance $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Six Months Ended June 30, 2017 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 1,545,188 $ 51,469 $ 1,374,706 $ 726,391 $ 153,863 $ 3,851,617 Charge-offs — — — — (2,372 ) (2,372 ) Recoveries — — — 42,000 3,770 45,770 Provisions 83,484 1,294 8,213 3,462 (63,953 ) 32,500 Ending Balance $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Three Months Ended June 30, 2016 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 Charge-offs — — — (82,015 ) (541 ) (82,556 ) Recoveries — — 18,000 — 240 18,240 Provisions (10,323 ) 13,106 59,821 98,546 (21,150 ) 140,000 Ending Balance $ 1,490,327 $ 57,374 $ 1,186,524 $ 629,773 $ 148,448 $ 3,512,446 Six Months Ended June 30, 2016 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Charge-offs (33,045 ) — — (82,015 ) (1,591 ) (116,651 ) Recoveries 1,284 — 24,000 — 986 26,270 Provisions 625,234 (2,487 ) (182,570 ) (229,682 ) (25,495 ) 185,000 Ending Balance $ 1,490,327 $ 57,374 $ 1,186,524 $ 629,773 $ 148,448 $ 3,512,446 The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. June 30, 2017 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,032,461 $ — $ 259,972 $ 43,119 $ 35,614 $ 1,371,166 Collectively evaluated for impairment 596,211 52,763 1,122,947 728,734 55,694 2,556,349 Total Allowance for Losses $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Loans Receivable Individually evaluated for impairment $ 1,255,033 $ — $ 2,458,870 $ 494,437 $ 35,613 $ 4,243,953 Collectively evaluated for impairment 55,026,536 1,457,591 119,018,968 75,208,440 5,274,257 255,985,792 Total Loans Receivable $ 56,281,569 $ 1,457,591 $ 121,477,838 $ 75,702,877 $ 5,309,870 $ 260,229,745 December 31, 2016 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,051,219 $ — $ 324,587 $ 43,119 $ 89,047 $ 1,507,972 Collectively evaluated for impairment 493,969 51,469 1,050,119 683,272 64,816 2,343,645 Total Allowance for Losses $ 1,545,188 $ 51,469 $ 1,374,706 $ 726,391 $ 153,863 $ 3,851,617 Loans Receivable Individually evaluated for impairment $ 1,301,259 $ — $ 3,225,351 $ 1,286,127 $ 89,047 $ 5,901,784 Collectively evaluated for impairment 50,960,950 1,208,901 119,742,775 75,845,689 6,916,016 254,674,331 Total Loans Receivable $ 52,262,209 $ 1,208,901 $ 122,968,126 $ 77,131,816 $ 7,005,063 $ 260,576,115 As of June 30, 2017 and December 31, 2016, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table: June 30, 2017 December 31, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 171,136 $ 171,136 $ — $ 250,040 $ 250,040 $ — Commercial Real Estate-Construction — — — — — — Commercial Real Estate-Other 1,435,014 1,435,014 — 2,174,770 2,174,770 — Consumer Real Estate 451,318 451,318 — 1,243,008 1,243,008 — Consumer Other — — — — — — $ 2,057,468 $ 2,057,468 $ — $ 3,667,818 $ 3,667,818 $ — With an allowance recorded: Commercial $ 1,083,897 $ 1,083,897 $ 1,032,461 $ 1,051,219 $ 1,051,219 $ 1,051,219 Commercial Real Estate- Construction — — — — — — Commercial Real Estate-Other 1,023,856 1,023,856 259,973 1,050,581 1,050,581 324,587 Consumer Real Estate 43,119 43,119 43,119 43,119 43,119 43,119 Consumer Other 35,613 35,613 35,613 89,047 89,047 89,047 $ 2,186,485 $ 2,186,485 $ 1,371,166 $ 2,233,966 $ 2,233,966 $ 1,507,972 Total Commercial $ 1,255,033 $ 1,255,033 $ 1,032,461 $ 1,301,259 $ 1,301,259 $ 1,051,219 Commercial Real Estate-Construction — — — — — — Commercial Real Estate-Other 2,458,870 2,458,870 259,973 3,225,351 3,225,351 324,587 Consumer Real Estate 494,437 494,437 43,119 1,286,127 1,286,127 43,119 Consumer Other 35,613 35,613 35,613 89,047 89,047 89,047 $ 4,243,953 $ 4,243,953 $ 1,371,166 $ 5,901,784 $ 5,901,784 $ 1,507,972 The following tables present average investment in impaired loans and the related interest income recognized on those impaired loans, by class, for the periods indicated. For the Three Months Ended June 30, 2017 2016 Average Recorded Investment Interest Average Recorded Investment Interest With no related allowance recorded: Commercial $ 175,568 $ 4,886 $ 486,498 $ 4,221 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,383,621 21,894 2,883,625 20,215 Consumer Real Estate 451,035 5,630 1,242,703 14,334 Consumer-Other — — — — $ 2,010,224 $ 32,410 $ 4,612,826 $ 38,770 With an allowance recorded: Commercial $ 1,091,779 $ 36,481 $ 1,097,191 $ 13,912 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,020,012 5,331 1,065,261 10,949 Consumer Real Estate 43,119 431 72,034 387 Consumer Other 36,107 516 100,212 1,177 $ 2,191,017 $ 42,759 $ 2,334,698 $ 26,425 Total Commercial $ 1,267,347 $ 41,367 $ 1,583,689 $ 18,133 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 2,403,633 27,225 3,948,886 31,164 Consumer Real Estate 494,154 6,061 1,314,737 14,721 Consumer Other 36,107 516 100,212 1,177 $ 4,201,241 $ 75,169 $ 6,947,524 $ 65,195 For the Six Months Ended June 30, 2017 2016 Average Recorded Investment Interest Average Recorded Investment Interest With no related allowance recorded: Commercial $ 179,698 $ 10,032 $ 494,572 $ 10,718 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,324,984 43,806 2,889,248 42,855 Consumer Real Estate 450,860 11,025 1,242,069 27,781 Consumer-Other — — — — $ 1,955,542 $ 64,863 $ 4,625,889 $ 81,354 With an allowance recorded: Commercial $ 1,098,449 $ 71,193 $ 1,101,252 $ 30,364 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,020,012 7,941 1,031,087 18,265 Consumer Real Estate 43,119 838 72,059 1,006 Consumer Other 36,848 1,086 102,264 3,510 $ 2,198,428 $ 81,058 $ 2,306,662 $ 53,145 Total Commercial $ 1,278,147 $ 81,225 $ 1,595,824 $ 41,082 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 2,344,996 51,747 3,920,335 61,120 Consumer Real Estate 493,979 11,863 1,314,128 28,787 Consumer Other 36,848 1,086 102,264 3,510 $ 4,153,970 $ 145,921 $ 6,932,552 $ 134,499 Restructured loans, also known as troubled debt restructurings (“TDR”), are loans, still accruing interest, which have been renegotiated at below-market interest rates or have been granted other concessions. At June 30, 2017 and December 31, 2016, there were $33,300 (1 loan) and $378,392 (2 loans) in restructured loans, respectively. Our restructured loans were granted extended payment terms with no principal or rate reductions. All TDRs were performing as agreed as of June 30, 2017 and December 31, 2016, respectively. There were no additional loans identified as a TDR during the three or six months ended June 30, 2017 or 2016. No TDRs defaulted during the three or six months ended June 30, 2017 and 2016, which were modified within the previous twelve months. |
Fair Value of Financial Stateme
Fair Value of Financial Statements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Statements | Note 4: Fair Value of Financial Instruments Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or the most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs, which are developed based on market data we have obtained from independent sources, are ones that market participants would use in pricing an asset or liability. Unobservable inputs, which are developed based on the best information available in the circumstances, reflect our estimate of assumptions that market participants would use in pricing an asset or liability. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. ● Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. ● Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. Fair value estimates are made at a specific point of time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale our entire holdings of a particular financial instrument. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based on judgements regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore cannot be determined with precision. Changes in any of these assumptions used in calculating fair value also would affect significantly the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The following paragraphs describe the valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Investment Securities Investment securities are recorded at fair value on a recurring basis and are based upon quoted prices if available. If quoted prices are not available, fair value is 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, or by dealers or brokers in active over-the counter markets. Level 2 securities include mortgage backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Derivative Instruments Derivative instruments include interest rate lock commitments and forward sale commitments. These instruments are valued based on the change in the value of the underlying loan between the commitment date and the end of the period. We classify these instruments as Level 3. The fair value of these commitments was not significant at June 30, 2017 or December 31, 2016. We have no embedded derivative instruments requiring separate accounting treatment. We had freestanding derivative instruments consisting of fixed rate conforming loan commitments as interest rate locks and commitments to sell fixed rate conforming loans on a best efforts basis. We do not currently engage in hedging activities. Based on short term fair value of the mortgage loans held for sale (derivative contract), our derivative instruments were immaterial to our consolidated financial statements as of June 30, 2017 and December 31, 2016. Assets and liabilities measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 Quoted Market Price in active markets Significant Other Observable Significant Unobservable Inputs Total U.S. Treasury Notes $ 24,195,314 $ — $ — $ 24,195,314 Government Sponsored — 66,717,277 — 66,717,277 Municipal Securities — 29,258,845 12,488,945 41,747,790 Total $ 24,195,314 $ 95,976,122 $ 12,488,945 $ 132,660,381 December 31, 2016 Quoted Market Price in active markets Significant Other Observable Significant Unobservable Inputs Total U.S. Treasury Notes $ 23,939,063 $ — $ — $ 23,939,063 Government Sponsored — 51,034,091 — 51,034,091 Municipal Securities — 31,027,933 13,977,857 45,005,790 Total $ 23,939,063 $ 82,062,024 $ 13,977,857 $ 119,978,944 There were no liabilities recorded at fair value on a recurring basis as of June 30, 2017 or December 31, 2016. The following table reconciles the changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2017 and 2016: Three Months Ended 2017 2016 Beginning balance $ 13,458,445 $ 5,249,351 Total gains or (losses) (realized/unrealized) Included in earnings — — Included in other comprehensive income 215,500 (1,463 ) Purchases, issuances and settlements, net of maturities (1,185,000 ) 2,454,000 Transfers in and/or out of level 3 — — Ending balance $ 12,488,945 $ 7,704,814 Six Months Ended 2017 2016 Beginning balance $ 13,977,857 $ 5,217,678 Total gains or (losses) (realized/unrealized) Included in earnings — — Included in other comprehensive income 241,088 (33,136 ) Purchases, issuances and settlements, net of maturities (1,730,000 ) 2,454,000 Transfers in and/or out of level 3 — — Ending balance $ 12,488,945 $ 7,704,814 There were no transfers between fair value levels during the three or six months ended June 30, 2017 or June 30, 2016. The following paragraphs describe the valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Other Real Estate Owned (“OREO”) Loans secured by real estate are adjusted to the lower of the recorded investment in the loan or the fair value of the real estate upon transfer to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral, or our estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraisal, we record the asset as nonrecurring Level 2. When an appraised value is not available or we determine the fair value of the collateral is further impaired below the appraised value and there is no observable market price, we record the asset as nonrecurring Level 3. Impaired Loans Impaired loans are carried at the lower of recorded investment or fair value. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, we review the most recent appraisal and if it is over 12 to 18 months old we may request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, we may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. Specifically as an example, in situations where the collateral on a nonperforming commercial real estate loan is out of our primary market area, we would typically order an independent appraisal immediately, at the earlier of the date the loan becomes nonperforming or immediately following the determination that the loan is impaired. However, as a second example, on a nonperforming commercial real estate loan where we are familiar with the property and surrounding areas and where the original appraisal value far exceeds the recorded investment in the loan, we may perform an internal analysis whereby the previous appraisal value would be reviewed considering recent current conditions, and known recent sales or listings of similar properties in the area, and any other relevant economic trends. This analysis may result in the call for a new appraisal. These valuations are reviewed and updated on a quarterly basis. In accordance with ASC 820, Fair Value Measurement Loans Held for Sale Loans held for sale include mortgage loans and are carried at the lower of cost or market value. The fair values of mortgage loans held for sale are based on current market rates from investors within the secondary market for loans with similar characteristics. Carrying value approximates fair value. Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following tables present information about certain assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2017 and December 31, 2016: June 30, 2017 Quoted Market Price (Level 1) Significant (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 2,650,215 $ 2,650,215 Other real estate owned — — 475,800 475,800 Loans held for sale — 2,232,201 — 2,232,201 Total $ — $ 2,232,201 $ 3,126,015 $ 5,358,216 December 31, 2016 Quoted (Level 1) Significant (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 4,143,772 $ 4,143,772 Other real estate owned — — 521,943 521,943 Loans held for sale — 4,386,210 — 4,386,210 Total $ — $ 4,386,210 $ 4,665,715 $ 9,051,925 There were no liabilities measured at fair value on a nonrecurring basis as of June 30, 2017 or December 31, 2016. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2017: Inputs Valuation Technique Unobservable Input General Range of Impaired Loans Discounted Appraisals Collateral Discounts 0 – 35% Other Real Estate Owned Appraisal Value/ Comparison Sales/Other Estimates Appraisals and/or Sales of Comparable Properties Appraisals Discounted 10% to 20% for Sales Commissions and Other Holding Costs GAAP requires disclosure of fair value information for all of our assets and liabilities that are considered financial instruments, whether or not recognized on the balance sheet, for which it is practicable to estimate fair value. Under the accounting standard, fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of the assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts of existing financial instruments do not represent the underlying value of those instruments on our books. The following paragraphs describe the methods and assumptions we use in estimating the fair values of financial instruments that have not been previously discussed: a. Cash and due from banks, interest-bearing deposits in other banks The carrying value approximates fair value. All mature within 90 days and do not present unanticipated credit concerns. b. Loans The carrying values of variable rate consumer and commercial loans and consumer and commercial loans with remaining maturities of three months or less, approximate fair value. The fair values of fixed rate consumer and commercial loans with maturities greater than three months are determined using a discounted cash flow analysis and assume the rate being offered on these types of loans at June 30, 2017 and December 31, 2016, approximate market. For lines of credit, the carrying value approximates fair value. c. Deposits The estimated fair value of deposits with no stated maturity is equal to the carrying amount. The fair value of time deposits is estimated by discounting contractual cash flows, using interest rates currently being offered on the deposit products. d. Accrued interest receivable and payable Since these financial instruments will typically be received or paid within three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. e. Loan commitments Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of June 30, 2017 and December 31, 2016. Fair Value Measurements at June 30, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,746,291 $ 8,746,291 $ 8,746,291 $ — $ — Interest-bearing deposits in other banks 23,881,649 23,881,649 23,881,649 — — Investment securities available for sale 132,660,381 132,660,381 24,195,314 95,976,122 12,488,945 Mortgage loans to be sold 2,232,201 2,232,201 — 2,232,201 - Net loans 256,302,230 255,780,927 — — 255,780,927 Accrued interest receivable 1,551,357 1,551,357 — 1,551,357 — Financial Liabilities: Demand deposits 341,773,707 341,773,707 — 341,773,707 — Time deposits 44,518,562 44,734,936 — 44,734,936 — Accrued interest payable 59,031 59,031 — 59,031 — Fair Value Measurements at December 31, 2016 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,141,030 $ 8,141,030 $ 8,141,030 $ — $ — Interest-bearing deposits in other banks 18,101,300 18,101,300 18,101,300 — — Investment securities available for sale 119,978,944 119,978,944 23,939,063 82,062,024 13,977,857 Mortgage loans to be sold 4,386,210 4,386,210 — 4,386,210 — Net loans 256,724,498 256,555,052 — — 256,555,052 Accrued interest receivable 1,614,002 1,614,002 — 1,614,002 — Financial Liabilities: Demand deposits 328,681,594 328,681,594 — 328,681,594 — Time deposits 43,841,257 43,856,383 — 43,856,383 — Accrued interest payable 51,629 51,629 — 51,629 — |
Income Per Common Share
Income Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | Note 5: Income Per Common Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. The following tables are a summary of the reconciliation of average shares outstanding: Three Months Ended 2017 2016 Net income $ 1,386,385 $ 1,312,110 Weighted average shares outstanding - basic 4,967,907 4,929,722 Effect of dilutive shares 105,001 126,801 Weighted average shares outstanding - diluted 5,072,908 5,056,523 Earnings per share - basic $ 0.28 $ 0.27 Earnings per share - diluted $ 0.27 $ 0.26 Six Months Ended 2017 2016 Net income $ 2,612,473 $ 2,507,846 Weighted average shares outstanding - basic 4,965,094 4,923,266 Effect of dilutive shares 103,930 124,335 Weighted average shares outstanding - diluted 5,069,024 5,047,601 Earnings per share - basic $ 0.53 $ 0.51 Earnings per share - diluted $ 0.52 $ 0.50 |
Nature of Business and Basis 14
Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. During consolidation, all significant intercompany balances and transactions have been eliminated. References to “we”, “us”, “our”, “the Bank”, or “the Company” refer to the parent and its subsidiary that are consolidated for financial purposes. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for the interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 3, 2017. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ significantly from these estimates and assumptions. Material estimates generally susceptible to significant change are related to the determination of the allowance for loan losses, impaired loans, other real estate owned, deferred tax assets, the fair value of financial instruments and other-than-temporary impairment of investment securities. |
Reclassification | Reclassification Certain amounts in the prior years’ financial statements have been reclassified to conform to the current period’s presentation. Such reclassifications had no effect on shareholders’ equity or the net income as previously reported. |
Income per share | Income per share Basic income per share represents income available to shareholders divided by the weighted-average number of common shares outstanding during the period. Dilutive income per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. The only potential common share equivalents are those related to stock options. Stock options that are anti-dilutive are excluded from the calculation of diluted net income per share. The dilutive effect of options outstanding under our stock compensation plan is reflected in diluted earnings per share by the application of the treasury stock method. Retroactive recognition has been given for the effects of all stock dividends. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. We have reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting and/or disclosure of financial information by the Company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, Topic 606 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10); Recognition and Measurement of Financial Instruments and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share – Based Payment Accounting, In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow- Scope Improvements and Practical Expedients In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Revenue from Contracts with Customers Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities available for sale | The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows: JUNE 30, 2017 AMORTIZED GROSS GROSS FAIR U.S. Treasury Notes $ 24,139,912 $ 62,201 $ (6,799 ) $ 24,195,314 Government-Sponsored Enterprises 66,708,908 391,749 (383,380 ) 66,717,277 Municipal Securities 41,192,677 865,966 (310,853 ) 41,747,790 Total $ 132,041,497 $ 1,319,916 $ (701,032 ) $ 132,660,381 DECEMBER 31, 2016 AMORTIZED GROSS GROSS FAIR U.S. Treasury Notes $ 24,148,295 $ 41,153 $ (250,385 ) $ 23,939,063 Government-Sponsored Enterprises 51,737,930 129,482 (833,321 ) 51,034,091 Municipal Securities 45,056,390 765,813 (816,413 ) 45,005,790 Total $ 120,942,615 $ 936,448 $ (1,900,119 ) $ 119,978,944 |
Schedule of amortized cost and estimated fair value of investment securities available for sale by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2017 and December 31, 2016, by contractual maturity are as follows: JUNE 30, 2017 DECEMBER 31, 2016 AMORTIZED FAIR AMORTIZED FAIR Due in one year or less $ 3,017,513 $ 3,038,231 $ 3,343,347 $ 3,350,205 Due in one year to five years 91,871,936 92,428,862 82,848,411 82,682,901 Due in five years to ten years 33,599,190 33,748,377 29,662,030 29,169,228 Due in ten years and over 3,552,859 3,444,911 5,088,827 4,776,610 Total $ 132,041,498 $ 132,660,381 $ 120,942,615 $ 119,978,944 |
Schedule of investment securities gross unrealized losses on investment securities and the fair market value of the related securities | The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016. We believe that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. Less Than 12 Months 12 Months or Longer Total # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss June 30, 2017 Available for sale U.S. Treasury notes 2 $ 10,142,188 $ (6,799 ) — $ — $ — 2 $ 10,142,188 $ (6,799 ) Government-sponsored enterprises 4 12,441,218 (326,380 ) 1 2,928,357 (57,000 ) 5 15,369,575 (383,380 ) Municipal securities 36 15,193,138 (310,853 ) — — — 36 15,193,138 (310,853 ) Total 42 $ 37,776,544 $ (644,032 ) 1 $ 2,928,357 $ (57,000 ) 43 $ 40,704,901 $ (701,032 ) December 31, 2016 Available for sale U.S. Treasury notes 4 $ 17,968,594 $ (250,385 ) — $ — $ — 4 $ 17,968,594 $ (250,385 ) Government-sponsored enterprises 8 30,136,720 (833,321 ) — — — 8 30,136,720 (833,321 ) Municipal securities 54 22,606,430 (816,413 ) — — — 54 22,606,430 (816,413 ) Total 66 $ 70,711,744 $ (1,900,119 ) — $ — $ — 66 $ 70,711,744 $ (1,900,119 ) |
Schedule of proceeds from sales of securities available for sale and gross realized gains and losses | We received proceeds from sales of securities available for sale and gross realized gains and losses as follows: For the Three Months Ended June 30, 2017 2016 Gross proceeds $ — $ 5,135,609 Gross realized gains — 160,391 Gross realized losses — — For the Six Months Ended June 30, 2017 2016 Gross proceeds $ — $ 21,113,400 Gross realized gains — 348,327 Gross realized losses — — |
Loans and Allowance for Loan 16
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of major classifications of loans | Major classifications of loans (net of deferred loan fees of $143,374 at June 30, 2017 and $136,446 at December 31, 2016) are as follows: June 30, December 31, 2016 Commercial loans $ 56,281,569 $ 52,262,209 Commercial real estate: Construction 1,457,591 1,208,901 Other 121,477,838 122,968,126 Consumer: Real Estate 75,702,877 77,131,816 Other 5,309,870 7,005,063 260,229,745 260,576,115 Allowance for loan losses (3,927,515 ) (3,851,617 ) Loans, net $ 256,302,230 $ 256,724,498 |
Schedule of credit risks by category and internally assigned grades | The following tables illustrate credit quality by class and internally assigned grades as of June 30, 2017 and December 31, 2016. “Pass” includes loans internally graded as excellent, good and satisfactory. June 30, 2017 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 51,883,004 $ 1,061,069 $ 117,318,419 $ 73,856,986 $ 5,097,028 $ 249,216,506 Watch 2,480,236 396,522 1,425,095 1,351,454 177,229 5,830,536 OAEM 662,989 — 295,490 — — 958,479 Sub-Standard 1,255,340 — 2,438,834 494,437 35,613 4,224,224 Doubtful — — — — — — Loss — — — — — — Total $ 56,281,569 $ 1,457,591 $ 121,477,838 $ 75,702,877 $ 5,309,870 $ 260,229,745 December 31, 2016 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Total Pass $ 48,289,944 $ 798,884 $ 116,490,396 $ 74,115,426 $ 6,728,367 $ 246,423,017 Watch 1,004,957 410,017 2,625,079 899,306 147,992 5,087,351 OAEM 1,666,048 — 995,549 630,957 28,939 3,321,493 Sub-Standard 1,301,260 — 2,857,102 1,486,127 99,765 5,744,254 Doubtful — — — — — — Loss — — — — — — Total $ 52,262,209 $ 1,208,901 $ 122,968,126 $ 77,131,816 $ 7,005,063 $ 260,576,115 |
Schedule of aging analysis of the recorded investment of past-due financing receivable by class | The following tables include an aging analysis of the recorded investment in loans segregated by class: June 30, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Recorded Investment > 90 Days and Accruing Commercial $ 225,212 $ 19,467 $ — $ 244,679 $ 56,036,890 $ 56,281,569 $ — Commercial Real Estate -Construction — — — — 1,457,591 1,457,591 — Commercial Real Estate -Other 280,689 — 1,552,910 1,833,599 119,644,239 121,477,838 — Consumer Real Estate 140,920 21,200 — 162,120 75,540,757 75,702,877 — Consumer-Other — 99,982 — 99,982 5,209,888 5,309,870 — Total $ 646,821 $ 140,649 $ 1,552,910 $ 2,340,380 $ 257,889,365 $ 260,229,745 $ — December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Recorded Investment > 90 Days and Accruing Commercial $ 438,159 $ — $ — $ 438,159 $ 51,824,050 $ 52,262,209 $ — Commercial Real Estate -Construction — — — — 1,208,901 1,208,901 — Commercial Real Estate -Other 6,363 — 1,501,153 1,507,516 121,460,610 122,968,126 89,908 Consumer Real Estate 415,457 — — 415,457 76,716,359 77,131,816 — Consumer-Other 56,784 — 33,322 90,106 6,914,957 7,005,063 33,322 Total $ 916,763 $ — $ 1,534,475 $ 2,451,238 $ 258,124,877 $ 260,576,115 $ 123,230 |
Schedule of non-accrual loans | The following table summarizes the balances of non-accrual loans: Loans Receivable on Non-Accrual June 30, December 31, 2016 Commercial $ 52,050 $ 61,781 Commercial Real Estate - Construction — — Commercial Real Estate - Other 1,782,819 1,678,876 Consumer - Real Estate — — Consumer - Other — 964 Total $ 1,834,869 $ 1,741,621 |
Schedule of changes in the allowance and an allocation of the allowance by loan category | The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and six months ended June 30, 2017 and June 30, 2016. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors. Three Months Ended June 30, 2017 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 1,553,159 $ 57,071 $ 1,418,575 $ 756,892 $ 91,160 $ 3,876,857 Charge-offs — — — — (2,372 ) (2,372 ) Recoveries — — — 21,000 2,030 23,030 Provisions 75,513 (4,308 ) (35,656 ) (6,039 ) 490 30,000 Ending Balance $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Six Months Ended June 30, 2017 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 1,545,188 $ 51,469 $ 1,374,706 $ 726,391 $ 153,863 $ 3,851,617 Charge-offs — — — — (2,372 ) (2,372 ) Recoveries — — — 42,000 3,770 45,770 Provisions 83,484 1,294 8,213 3,462 (63,953 ) 32,500 Ending Balance $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Three Months Ended June 30, 2016 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 1,500,650 $ 44,268 $ 1,108,703 $ 613,242 $ 169,899 $ 3,436,762 Charge-offs — — — (82,015 ) (541 ) (82,556 ) Recoveries — — 18,000 — 240 18,240 Provisions (10,323 ) 13,106 59,821 98,546 (21,150 ) 140,000 Ending Balance $ 1,490,327 $ 57,374 $ 1,186,524 $ 629,773 $ 148,448 $ 3,512,446 Six Months Ended June 30, 2016 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Beginning Balance $ 896,854 $ 59,861 $ 1,345,094 $ 941,470 $ 174,548 $ 3,417,827 Charge-offs (33,045 ) — — (82,015 ) (1,591 ) (116,651 ) Recoveries 1,284 — 24,000 — 986 26,270 Provisions 625,234 (2,487 ) (182,570 ) (229,682 ) (25,495 ) 185,000 Ending Balance $ 1,490,327 $ 57,374 $ 1,186,524 $ 629,773 $ 148,448 $ 3,512,446 The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. June 30, 2017 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,032,461 $ — $ 259,972 $ 43,119 $ 35,614 $ 1,371,166 Collectively evaluated for impairment 596,211 52,763 1,122,947 728,734 55,694 2,556,349 Total Allowance for Losses $ 1,628,672 $ 52,763 $ 1,382,919 $ 771,853 $ 91,308 $ 3,927,515 Loans Receivable Individually evaluated for impairment $ 1,255,033 $ — $ 2,458,870 $ 494,437 $ 35,613 $ 4,243,953 Collectively evaluated for impairment 55,026,536 1,457,591 119,018,968 75,208,440 5,274,257 255,985,792 Total Loans Receivable $ 56,281,569 $ 1,457,591 $ 121,477,838 $ 75,702,877 $ 5,309,870 $ 260,229,745 December 31, 2016 Commercial Commercial Real Estate-Construction Commercial Real Estate-Other Consumer Real Estate Consumer Other Total Allowance for Loan Losses Individually evaluated for impairment $ 1,051,219 $ — $ 324,587 $ 43,119 $ 89,047 $ 1,507,972 Collectively evaluated for impairment 493,969 51,469 1,050,119 683,272 64,816 2,343,645 Total Allowance for Losses $ 1,545,188 $ 51,469 $ 1,374,706 $ 726,391 $ 153,863 $ 3,851,617 Loans Receivable Individually evaluated for impairment $ 1,301,259 $ — $ 3,225,351 $ 1,286,127 $ 89,047 $ 5,901,784 Collectively evaluated for impairment 50,960,950 1,208,901 119,742,775 75,845,689 6,916,016 254,674,331 Total Loans Receivable $ 52,262,209 $ 1,208,901 $ 122,968,126 $ 77,131,816 $ 7,005,063 $ 260,576,115 |
Schedule of loans individually evaluated for impairment and related allowance for loan losses | As of June 30, 2017 and December 31, 2016, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table: June 30, 2017 December 31, 2016 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 171,136 $ 171,136 $ — $ 250,040 $ 250,040 $ — Commercial Real Estate-Construction — — — — — — Commercial Real Estate-Other 1,435,014 1,435,014 — 2,174,770 2,174,770 — Consumer Real Estate 451,318 451,318 — 1,243,008 1,243,008 — Consumer Other — — — — — — $ 2,057,468 $ 2,057,468 $ — $ 3,667,818 $ 3,667,818 $ — With an allowance recorded: Commercial $ 1,083,897 $ 1,083,897 $ 1,032,461 $ 1,051,219 $ 1,051,219 $ 1,051,219 Commercial Real Estate- Construction — — — — — — Commercial Real Estate-Other 1,023,856 1,023,856 259,973 1,050,581 1,050,581 324,587 Consumer Real Estate 43,119 43,119 43,119 43,119 43,119 43,119 Consumer Other 35,613 35,613 35,613 89,047 89,047 89,047 $ 2,186,485 $ 2,186,485 $ 1,371,166 $ 2,233,966 $ 2,233,966 $ 1,507,972 Total Commercial $ 1,255,033 $ 1,255,033 $ 1,032,461 $ 1,301,259 $ 1,301,259 $ 1,051,219 Commercial Real Estate-Construction — — — — — — Commercial Real Estate-Other 2,458,870 2,458,870 259,973 3,225,351 3,225,351 324,587 Consumer Real Estate 494,437 494,437 43,119 1,286,127 1,286,127 43,119 Consumer Other 35,613 35,613 35,613 89,047 89,047 89,047 $ 4,243,953 $ 4,243,953 $ 1,371,166 $ 5,901,784 $ 5,901,784 $ 1,507,972 The following tables present average investment in impaired loans and the related interest income recognized on those impaired loans, by class, for the periods indicated. For the Three Months Ended June 30, 2017 2016 Average Recorded Investment Interest Average Recorded Investment Interest With no related allowance recorded: Commercial $ 175,568 $ 4,886 $ 486,498 $ 4,221 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,383,621 21,894 2,883,625 20,215 Consumer Real Estate 451,035 5,630 1,242,703 14,334 Consumer-Other — — — — $ 2,010,224 $ 32,410 $ 4,612,826 $ 38,770 With an allowance recorded: Commercial $ 1,091,779 $ 36,481 $ 1,097,191 $ 13,912 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,020,012 5,331 1,065,261 10,949 Consumer Real Estate 43,119 431 72,034 387 Consumer Other 36,107 516 100,212 1,177 $ 2,191,017 $ 42,759 $ 2,334,698 $ 26,425 Total Commercial $ 1,267,347 $ 41,367 $ 1,583,689 $ 18,133 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 2,403,633 27,225 3,948,886 31,164 Consumer Real Estate 494,154 6,061 1,314,737 14,721 Consumer Other 36,107 516 100,212 1,177 $ 4,201,241 $ 75,169 $ 6,947,524 $ 65,195 For the Six Months Ended June 30, 2017 2016 Average Recorded Investment Interest Average Recorded Investment Interest With no related allowance recorded: Commercial $ 179,698 $ 10,032 $ 494,572 $ 10,718 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,324,984 43,806 2,889,248 42,855 Consumer Real Estate 450,860 11,025 1,242,069 27,781 Consumer-Other — — — — $ 1,955,542 $ 64,863 $ 4,625,889 $ 81,354 With an allowance recorded: Commercial $ 1,098,449 $ 71,193 $ 1,101,252 $ 30,364 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 1,020,012 7,941 1,031,087 18,265 Consumer Real Estate 43,119 838 72,059 1,006 Consumer Other 36,848 1,086 102,264 3,510 $ 2,198,428 $ 81,058 $ 2,306,662 $ 53,145 Total Commercial $ 1,278,147 $ 81,225 $ 1,595,824 $ 41,082 Commercial Real Estate-Construction — — — — Commercial Real Estate-Other 2,344,996 51,747 3,920,335 61,120 Consumer Real Estate 493,979 11,863 1,314,128 28,787 Consumer Other 36,848 1,086 102,264 3,510 $ 4,153,970 $ 145,921 $ 6,932,552 $ 134,499 |
Fair Value of Financial State17
Fair Value of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 Quoted Market Price in active markets Significant Other Observable Significant Unobservable Inputs Total U.S. Treasury Notes $ 24,195,314 $ — $ — $ 24,195,314 Government Sponsored — 66,717,277 — 66,717,277 Municipal Securities — 29,258,845 12,488,945 41,747,790 Total $ 24,195,314 $ 95,976,122 $ 12,488,945 $ 132,660,381 December 31, 2016 Quoted Market Price in active markets Significant Other Observable Significant Unobservable Inputs Total U.S. Treasury Notes $ 23,939,063 $ — $ — $ 23,939,063 Government Sponsored — 51,034,091 — 51,034,091 Municipal Securities — 31,027,933 13,977,857 45,005,790 Total $ 23,939,063 $ 82,062,024 $ 13,977,857 $ 119,978,944 |
Schedule of changes in Level 3 instruments | The following table reconciles the changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2017 and 2016: Three Months Ended June 30, 2017 2016 Beginning balance $ 13,458,445 $ 5,249,351 Total gains or (losses) (realized/unrealized) Included in earnings — — Included in other comprehensive income 215,500 (1,463 ) Purchases, issuances and settlements, net of maturities (1,185,000 ) 2,454,000 Transfers in and/or out of level 3 — — Ending balance $ 12,488,945 $ 7,704,814 Six Months Ended June 30, 2017 2016 Beginning balance $ 13,977,857 $ 5,217,678 Total gains or (losses) (realized/unrealized) Included in earnings — — Included in other comprehensive income 241,088 (33,136 ) Purchases, issuances and settlements, net of maturities (1,730,000 ) 2,454,000 Transfers in and/or out of level 3 — — Ending balance $ 12,488,945 $ 7,704,814 |
Schedule of assets and liabilities measured at fair value measured on a nonrecurring basis | The following tables present information about certain assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2017 and December 31, 2016: June 30, 2017 Quoted Market Price (Level 1) Significant (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 2,650,215 $ 2,650,215 Other real estate owned — — 475,800 475,800 Loans held for sale — 2,232,201 — 2,232,201 Total $ — $ 2,232,201 $ 3,126,015 $ 5,358,216 December 31, 2016 Quoted (Level 1) Significant (Level 2) Significant Unobservable Inputs (Level 3) Total Impaired loans $ — $ — $ 4,143,772 $ 4,143,772 Other real estate owned — — 521,943 521,943 Loans held for sale — 4,386,210 — 4,386,210 Total $ — $ 4,386,210 $ 4,665,715 $ 9,051,925 |
Schedule of unobservable inputs used in Level 3 fair value measurement | The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2017: Inputs Valuation Technique Unobservable Input General Range of Impaired Loans Discounted Appraisals Collateral Discounts 0 – 35% Other Real Estate Owned Appraisal Value/ Comparison Sales/Other Estimates Appraisals and/or Sales of Comparable Properties Appraisals Discounted 10% to 20% for Sales Commissions and Other Holding Costs |
Schedule of carrying amount,estimated fair value and the financial hierarchy of entity's financial instruments | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of June 30, 2017 and December 31, 2016. Fair Value Measurements at June 30, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,746,291 $ 8,746,291 $ 8,746,291 $ — $ — Interest-bearing deposits in other banks 23,881,649 23,881,649 23,881,649 — — Investment securities available for sale 132,660,381 132,660,381 24,195,314 95,976,122 12,488,945 Mortgage loans to be sold 2,232,201 2,232,201 — 2,232,201 - Net loans 256,302,230 255,780,927 — — 255,780,927 Accrued interest receivable 1,551,357 1,551,357 — 1,551,357 — Financial Liabilities: Demand deposits 341,773,707 341,773,707 — 341,773,707 — Time deposits 44,518,562 44,734,936 — 44,734,936 — Accrued interest payable 59,031 59,031 — 59,031 — Fair Value Measurements at December 31, 2016 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 8,141,030 $ 8,141,030 $ 8,141,030 $ — $ — Interest-bearing deposits in other banks 18,101,300 18,101,300 18,101,300 — — Investment securities available for sale 119,978,944 119,978,944 23,939,063 82,062,024 13,977,857 Mortgage loans to be sold 4,386,210 4,386,210 — 4,386,210 — Net loans 256,724,498 256,555,052 — — 256,555,052 Accrued interest receivable 1,614,002 1,614,002 — 1,614,002 — Financial Liabilities: Demand deposits 328,681,594 328,681,594 — 328,681,594 — Time deposits 43,841,257 43,856,383 — 43,856,383 — Accrued interest payable 51,629 51,629 — 51,629 — |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of income per common share | The following tables are a summary of the reconciliation of average shares outstanding: Three Months Ended June 30 2017 2016 Net income $ 1,386,385 $ 1,312,110 Weighted average shares outstanding - basic 4,967,907 4,929,722 Effect of dilutive shares 105,001 126,801 Weighted average shares outstanding - diluted 5,072,908 5,056,523 Earnings per share - basic $ 0.28 $ 0.27 Earnings per share - diluted $ 0.27 $ 0.26 Six Months Ended June 30 2017 2016 Net income $ 2,612,473 $ 2,507,846 Weighted average shares outstanding - basic 4,965,094 4,923,266 Effect of dilutive shares 103,930 124,335 Weighted average shares outstanding - diluted 5,069,024 5,047,601 Earnings per share - basic $ 0.53 $ 0.51 Earnings per share - diluted $ 0.52 $ 0.50 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 132,041,497 | $ 120,942,615 |
Gross Unrealized Gains | 1,319,916 | 936,448 |
Gross Unrealized Losses | (701,032) | (1,900,119) |
Investment securities available for sale | 132,660,381 | 119,978,944 |
U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,139,912 | 24,148,295 |
Gross Unrealized Gains | 62,201 | 41,153 |
Gross Unrealized Losses | (6,799) | (250,385) |
Investment securities available for sale | 24,195,314 | 23,939,063 |
Government-Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 66,708,908 | 51,737,930 |
Gross Unrealized Gains | 391,749 | 129,482 |
Gross Unrealized Losses | (383,380) | (833,321) |
Investment securities available for sale | 66,717,277 | 51,034,091 |
Municipal Securties [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 41,192,677 | 45,056,390 |
Gross Unrealized Gains | 865,966 | 765,813 |
Gross Unrealized Losses | (310,853) | (816,413) |
Investment securities available for sale | $ 41,747,790 | $ 45,005,790 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 3,017,513 | $ 3,343,347 |
Due in one year to five years | 91,871,936 | 82,848,411 |
Due in five years to ten years | 33,599,190 | 29,662,030 |
Due in ten years and over | 3,552,859 | 5,088,827 |
Total | 132,041,497 | 120,942,615 |
Estimated Fair Value | ||
Due in one year or less | 3,038,231 | 3,350,205 |
Due in one year to five years | 92,428,862 | 82,682,901 |
Due in five years to ten years | 33,748,377 | 29,169,228 |
Due in ten years and over | 3,444,911 | 4,776,610 |
Total | $ 132,660,381 | $ 119,978,944 |
Investment Securities (Detail21
Investment Securities (Details 2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)Number | Dec. 31, 2016USD ($)Number | |
Less than 12 Months | ||
Number of positions | Number | 42 | 66 |
Fair Value | $ 37,776,544 | $ 70,711,744 |
Gross Unrealized Losses | $ (644,032) | $ (1,900,119) |
12 months or Longer | ||
Number of positions | Number | 1 | |
Fair value | $ 2,928,357 | |
Gross Unrealized Losses | $ (57,000) | |
Total | ||
Number of positions | Number | 43 | 66 |
Fair value | $ 40,704,901 | $ 70,711,744 |
Gross Unrealized Losses | $ (701,032) | $ (1,900,119) |
U.S. Treasury Notes [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 2 | 4 |
Fair Value | $ 10,142,188 | $ 17,968,594 |
Gross Unrealized Losses | $ (6,799) | $ (250,385) |
Total | ||
Number of positions | Number | 2 | 4 |
Fair value | $ 10,142,188 | $ 17,968,594 |
Gross Unrealized Losses | $ (6,799) | $ (250,385) |
Government-Sponsored Enterprises [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 4 | 8 |
Fair Value | $ 12,441,218 | $ 30,136,720 |
Gross Unrealized Losses | $ (326,380) | $ (833,321) |
12 months or Longer | ||
Number of positions | Number | 1 | |
Fair value | $ 2,928,357 | |
Gross Unrealized Losses | $ (57,000) | |
Total | ||
Number of positions | Number | 5 | 8 |
Fair value | $ 15,369,575 | $ 30,136,720 |
Gross Unrealized Losses | $ (383,380) | $ (833,321) |
Municipal Securties [Member] | ||
Less than 12 Months | ||
Number of positions | Number | 36 | 54 |
Fair Value | $ 15,193,138 | $ 22,606,430 |
Gross Unrealized Losses | $ (310,853) | $ (816,413) |
Total | ||
Number of positions | Number | 36 | 54 |
Fair value | $ 15,193,138 | $ 22,606,430 |
Gross Unrealized Losses | $ (310,853) | $ (816,413) |
Investment Securities (Detail22
Investment Securities (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross proceeds | $ 5,135,609 | $ 21,113,400 |
Gross realized gains | $ 160,391 | $ 348,327 |
Investment Securities (Detail23
Investment Securities (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Carrying amount of securities pledged to secure deposits and repurchase agreements | $ 53,100,000 | $ 47,600,000 | ||
Gross realized gains and losses on sale of investments, tax | $ 59,382 | $ 128,881 |
Loans and Allowance for Loan 24
Loans and Allowance for Loan Losses (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Loans | $ 260,229,745 | $ 260,576,115 |
Allowance for loan losses | (3,927,515) | (3,851,617) |
Loans, net | 256,302,230 | 256,724,498 |
Commercial [Member] | ||
Loans | 56,281,569 | 52,262,209 |
Commercial Real Estate Construction [Member] | ||
Loans | 1,457,591 | 1,208,901 |
Commercial Real Estate Other [Member] | ||
Loans | 121,477,838 | 122,968,126 |
Consumer Real Estate [Member] | ||
Loans | 75,702,877 | 77,131,816 |
Consumer Other [Member] | ||
Loans | $ 5,309,870 | $ 7,005,063 |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses (Details 1) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Credit risks by category and internally assigned grades | ||
Loans | $ 260,229,745 | $ 260,576,115 |
Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 249,216,506 | 246,423,017 |
Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,830,536 | 5,087,351 |
OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 958,479 | 3,321,493 |
Sub-Standard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 4,224,224 | 5,744,254 |
Commercial [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 56,281,569 | 52,262,209 |
Commercial [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 51,883,004 | 48,289,944 |
Commercial [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 2,480,236 | 1,004,957 |
Commercial [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 662,989 | 1,666,048 |
Commercial [Member] | Sub-Standard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,255,340 | 1,301,260 |
Commercial Real Estate Construction [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,457,591 | 1,208,901 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,061,069 | 798,884 |
Commercial Real Estate Construction [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 396,522 | 410,017 |
Commercial Real Estate Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 121,477,838 | 122,968,126 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 117,318,419 | 116,490,396 |
Commercial Real Estate Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,425,095 | 2,625,079 |
Commercial Real Estate Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 295,490 | 995,549 |
Commercial Real Estate Other [Member] | Sub-Standard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 2,438,834 | 2,857,102 |
Consumer Real Estate [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 75,702,877 | 77,131,816 |
Consumer Real Estate [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 73,856,986 | 74,115,426 |
Consumer Real Estate [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 1,351,454 | 899,306 |
Consumer Real Estate [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 630,957 | |
Consumer Real Estate [Member] | Sub-Standard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 494,437 | 1,486,127 |
Consumer Other [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,309,870 | 7,005,063 |
Consumer Other [Member] | Pass [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 5,097,028 | 6,728,367 |
Consumer Other [Member] | Watch [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 177,229 | 147,992 |
Consumer Other [Member] | OAEM [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | 28,939 | |
Consumer Other [Member] | Sub-Standard [Member] | ||
Credit risks by category and internally assigned grades | ||
Loans | $ 35,613 | $ 99,765 |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses (Details 2) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,340,380 | $ 2,451,238 |
Current | 257,889,365 | 258,124,877 |
Total Loans Receivable | 260,229,745 | 260,576,115 |
Recorded Investment > 90 Days and Accuring Interest | 123,230 | |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 646,821 | 916,763 |
Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,552,910 | 1,534,475 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 140,649 | |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 244,679 | 438,159 |
Current | 56,036,890 | 51,824,050 |
Total Loans Receivable | 56,281,569 | 52,262,209 |
Commercial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 225,212 | 438,159 |
Commercial [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 19,467 | |
Commercial Real Estate Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,457,591 | 1,208,901 |
Total Loans Receivable | 1,457,591 | 1,208,901 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,833,599 | 1,507,516 |
Current | 119,644,239 | 121,460,610 |
Total Loans Receivable | 121,477,838 | 122,968,126 |
Recorded Investment > 90 Days and Accuring Interest | 89,908 | |
Commercial Real Estate Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 280,689 | 6,363 |
Commercial Real Estate Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,552,910 | 1,501,153 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 162,120 | 415,457 |
Current | 75,540,757 | 76,716,359 |
Total Loans Receivable | 75,702,877 | 77,131,816 |
Consumer Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 140,920 | 415,457 |
Consumer Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21,200 | |
Consumer Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 99,982 | 90,106 |
Current | 5,209,888 | 6,914,957 |
Total Loans Receivable | 5,309,870 | 7,005,063 |
Recorded Investment > 90 Days and Accuring Interest | 33,322 | |
Consumer Other [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 56,784 | |
Consumer Other [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 33,322 | |
Consumer Other [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 99,982 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses (Details 3) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 1,834,869 | $ 1,741,621 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | 52,050 | 61,781 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 1,782,819 | 1,678,876 |
Consumer Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 964 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Activity in the allowance for loan losses by portfolio segment | ||||||
Beginning Balance | $ 3,876,857 | $ 3,436,762 | $ 3,851,617 | $ 3,417,827 | ||
Charge-offs | (2,372) | (82,556) | (2,372) | (116,651) | ||
Recoveries | 23,030 | 18,240 | 45,770 | 26,270 | ||
Provisions | 30,000 | 140,000 | 32,500 | 185,000 | ||
Ending Balance | 3,927,515 | 3,512,446 | 3,927,515 | 3,512,446 | ||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | $ 1,371,166 | $ 1,507,972 | ||||
Collectively evaluated for impairment | 2,556,349 | 2,343,645 | ||||
Total Allowance for Losses | 3,927,515 | 3,512,446 | 3,927,515 | 3,417,827 | 3,927,515 | 3,851,617 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 4,243,953 | 5,901,784 | ||||
Collectively evaluated for impairment | 255,985,792 | 254,674,331 | ||||
Total Loan Receivable | 260,229,745 | 260,576,115 | ||||
Commercial [Member] | ||||||
Activity in the allowance for loan losses by portfolio segment | ||||||
Beginning Balance | 1,553,159 | 1,500,650 | 1,545,188 | 896,854 | ||
Charge-offs | (33,045) | |||||
Recoveries | 1,284 | |||||
Provisions | 75,513 | (10,323) | 83,484 | 625,234 | ||
Ending Balance | 1,628,672 | 1,490,327 | 1,628,672 | 1,490,327 | ||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 1,032,461 | 1,051,219 | ||||
Collectively evaluated for impairment | 596,211 | 493,969 | ||||
Total Allowance for Losses | 1,628,672 | 1,490,327 | 1,628,672 | 896,854 | 1,628,672 | 1,545,188 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 1,255,033 | 1,301,259 | ||||
Collectively evaluated for impairment | 55,026,536 | 50,960,950 | ||||
Total Loan Receivable | 56,281,569 | 52,262,209 | ||||
Commercial Real Estate Construction [Member] | ||||||
Activity in the allowance for loan losses by portfolio segment | ||||||
Beginning Balance | 57,071 | 44,268 | 51,469 | 59,861 | ||
Charge-offs | ||||||
Recoveries | ||||||
Provisions | (4,308) | 13,106 | 1,294 | (2,487) | ||
Ending Balance | 52,763 | 57,374 | 52,763 | 57,374 | ||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 52,763 | 51,469 | ||||
Total Allowance for Losses | 52,763 | 57,374 | 52,763 | 59,861 | 52,763 | 51,469 |
Loans Receivable: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1,457,591 | 1,208,901 | ||||
Total Loan Receivable | 1,457,591 | 1,208,901 | ||||
Commercial Real Estate Other [Member] | ||||||
Activity in the allowance for loan losses by portfolio segment | ||||||
Beginning Balance | 1,418,575 | 1,108,703 | 1,374,706 | 1,345,094 | ||
Charge-offs | ||||||
Recoveries | 18,000 | 24,000 | ||||
Provisions | (35,656) | 59,821 | 8,213 | (182,570) | ||
Ending Balance | 1,382,919 | 1,186,524 | 1,382,919 | 1,186,524 | ||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 259,972 | 324,587 | ||||
Collectively evaluated for impairment | 1,122,947 | 1,050,119 | ||||
Total Allowance for Losses | 1,382,919 | 1,186,524 | 1,382,919 | 1,345,094 | 1,382,919 | 1,374,706 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 2,458,870 | 3,225,351 | ||||
Collectively evaluated for impairment | 119,018,968 | 119,742,775 | ||||
Total Loan Receivable | 121,477,838 | 122,968,126 | ||||
Consumer Real Estate [Member] | ||||||
Activity in the allowance for loan losses by portfolio segment | ||||||
Beginning Balance | 756,892 | 613,242 | 726,391 | 941,470 | ||
Charge-offs | (82,015) | (82,015) | ||||
Recoveries | 21,000 | 42,000 | ||||
Provisions | (6,039) | 98,546 | 3,462 | (229,682) | ||
Ending Balance | 771,853 | 629,773 | 771,853 | 629,773 | ||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 43,119 | 43,119 | ||||
Collectively evaluated for impairment | 728,734 | 683,272 | ||||
Total Allowance for Losses | 771,853 | 629,773 | 771,853 | 941,470 | 771,853 | 726,391 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 494,437 | 1,286,127 | ||||
Collectively evaluated for impairment | 75,208,440 | 75,845,689 | ||||
Total Loan Receivable | 75,702,877 | 77,131,816 | ||||
Consumer Other [Member] | ||||||
Activity in the allowance for loan losses by portfolio segment | ||||||
Beginning Balance | 91,160 | 169,899 | 153,863 | 174,548 | ||
Charge-offs | (2,372) | (541) | (2,372) | (1,591) | ||
Recoveries | 2,030 | 240 | 3,770 | 986 | ||
Provisions | 490 | (21,150) | (63,953) | (25,495) | ||
Ending Balance | 91,308 | 148,448 | 91,308 | 148,448 | ||
Allowance for Loan Losses Ending Balances: | ||||||
Individually evaluated for impairment | 35,614 | 89,047 | ||||
Collectively evaluated for impairment | 55,694 | 64,816 | ||||
Total Allowance for Losses | $ 91,308 | $ 148,448 | $ 91,308 | $ 174,548 | 91,308 | 153,863 |
Loans Receivable: | ||||||
Individually evaluated for impairment | 35,613 | 89,047 | ||||
Collectively evaluated for impairment | 5,274,257 | 6,916,016 | ||||
Total Loan Receivable | $ 5,309,870 | $ 7,005,063 |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses (Details 5) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Impaired and Restructured Loans with no related allowance recorded | |||||
Unpaid Principal Balance With no related allowance recorded | $ 2,057,468 | $ 2,057,468 | $ 3,667,818 | ||
Recorded Investment With no related allowance recorded | 2,057,468 | 2,057,468 | 3,667,818 | ||
Average Recorded Investment With no related allowance recorded | 2,010,224 | $ 4,612,826 | 1,955,542 | $ 4,625,889 | |
Interest Income Recognized With no related allowance recorded | 32,410 | 38,770 | 64,863 | 81,354 | |
Impaired and Restructured Loans with an allowance recorded | |||||
Unpaid Principal Balance With an allowance recorded | 2,186,485 | 2,186,485 | 2,233,966 | ||
Recorded Investment With an allowance recorded | 2,186,485 | 2,186,485 | 2,233,966 | ||
Related Allowance | 1,371,166 | 1,371,166 | 1,507,972 | ||
Average Recorded Investment With an allowance recorded | 2,191,017 | 2,334,698 | 2,198,428 | 2,306,662 | |
Interest Income Recognized With an allowance recorded | 42,759 | 26,425 | 81,058 | 53,145 | |
Total of Impaired and Restructured Loans | |||||
Unpaid Principal balance | 4,243,953 | 4,243,953 | 5,901,784 | ||
Recorded Investment | 4,243,953 | 4,243,953 | 5,901,784 | ||
Average Recorded Investment | 4,201,241 | 6,947,524 | 4,153,970 | 6,932,552 | |
Interest Income Recognized | 75,169 | 65,195 | 145,921 | 134,499 | |
Commercial [Member] | |||||
Impaired and Restructured Loans with no related allowance recorded | |||||
Unpaid Principal Balance With no related allowance recorded | 171,136 | 171,136 | 250,040 | ||
Recorded Investment With no related allowance recorded | 171,136 | 171,136 | 250,040 | ||
Average Recorded Investment With no related allowance recorded | 175,568 | 486,498 | 179,698 | 494,572 | |
Interest Income Recognized With no related allowance recorded | 4,886 | 4,221 | 10,032 | 10,718 | |
Impaired and Restructured Loans with an allowance recorded | |||||
Unpaid Principal Balance With an allowance recorded | 1,083,897 | 1,083,897 | 1,051,219 | ||
Recorded Investment With an allowance recorded | 1,083,897 | 1,083,897 | 1,051,219 | ||
Related Allowance | 1,032,461 | 1,032,461 | 1,051,219 | ||
Average Recorded Investment With an allowance recorded | 1,091,779 | 1,097,191 | 1,098,449 | 1,101,252 | |
Interest Income Recognized With an allowance recorded | 36,481 | 13,912 | 71,193 | 30,364 | |
Total of Impaired and Restructured Loans | |||||
Unpaid Principal balance | 1,255,033 | 1,255,033 | 1,301,259 | ||
Recorded Investment | 1,255,033 | 1,255,033 | 1,301,259 | ||
Average Recorded Investment | 1,267,347 | 1,583,689 | 1,278,147 | 1,595,824 | |
Interest Income Recognized | 41,367 | 18,133 | 81,225 | 41,082 | |
Commercial Real Estate Other [Member] | |||||
Impaired and Restructured Loans with no related allowance recorded | |||||
Unpaid Principal Balance With no related allowance recorded | 1,435,014 | 1,435,014 | 2,174,770 | ||
Recorded Investment With no related allowance recorded | 1,435,014 | 1,435,014 | 2,174,770 | ||
Average Recorded Investment With no related allowance recorded | 1,383,621 | 2,883,625 | 1,324,984 | 2,889,248 | |
Interest Income Recognized With no related allowance recorded | 21,894 | 20,215 | 43,806 | 42,855 | |
Impaired and Restructured Loans with an allowance recorded | |||||
Unpaid Principal Balance With an allowance recorded | 1,023,856 | 1,023,856 | 1,050,581 | ||
Recorded Investment With an allowance recorded | 1,023,856 | 1,023,856 | 1,050,581 | ||
Related Allowance | 259,973 | 259,973 | 324,587 | ||
Average Recorded Investment With an allowance recorded | 1,020,012 | 1,065,261 | 1,020,012 | 1,031,087 | |
Interest Income Recognized With an allowance recorded | 5,331 | 10,949 | 7,941 | 18,265 | |
Total of Impaired and Restructured Loans | |||||
Unpaid Principal balance | 2,458,870 | 2,458,870 | 3,225,351 | ||
Recorded Investment | 2,458,870 | 2,458,870 | 3,225,351 | ||
Average Recorded Investment | 2,403,633 | 3,948,886 | 2,344,996 | 3,920,335 | |
Interest Income Recognized | 27,225 | 31,164 | 51,747 | 61,120 | |
Consumer Real Estate [Member] | |||||
Impaired and Restructured Loans with no related allowance recorded | |||||
Unpaid Principal Balance With no related allowance recorded | 451,318 | 451,318 | 1,243,008 | ||
Recorded Investment With no related allowance recorded | 451,318 | 451,318 | 1,243,008 | ||
Average Recorded Investment With no related allowance recorded | 451,035 | 1,242,703 | 450,860 | 1,242,069 | |
Interest Income Recognized With no related allowance recorded | 5,630 | 14,334 | 11,025 | 27,781 | |
Impaired and Restructured Loans with an allowance recorded | |||||
Unpaid Principal Balance With an allowance recorded | 43,119 | 43,119 | 43,119 | ||
Recorded Investment With an allowance recorded | 43,119 | 43,119 | 43,119 | ||
Related Allowance | 43,119 | 43,119 | 43,119 | ||
Average Recorded Investment With an allowance recorded | 43,119 | 72,034 | 43,119 | 72,059 | |
Interest Income Recognized With an allowance recorded | 431 | 387 | 838 | 1,006 | |
Total of Impaired and Restructured Loans | |||||
Unpaid Principal balance | 494,437 | 494,437 | 1,286,127 | ||
Recorded Investment | 494,437 | 494,437 | 1,286,127 | ||
Average Recorded Investment | 494,154 | 1,314,737 | 493,979 | 1,314,128 | |
Interest Income Recognized | 6,061 | 14,721 | 11,863 | 28,787 | |
Consumer Other [Member] | |||||
Impaired and Restructured Loans with an allowance recorded | |||||
Unpaid Principal Balance With an allowance recorded | 35,613 | 35,613 | 89,047 | ||
Recorded Investment With an allowance recorded | 35,613 | 35,613 | 89,047 | ||
Related Allowance | 35,613 | 35,613 | 89,047 | ||
Average Recorded Investment With an allowance recorded | 36,107 | 100,212 | 36,848 | 102,264 | |
Interest Income Recognized With an allowance recorded | 516 | 1,177 | 1,086 | 3,510 | |
Total of Impaired and Restructured Loans | |||||
Unpaid Principal balance | 35,613 | 35,613 | 89,047 | ||
Recorded Investment | 35,613 | 35,613 | $ 89,047 | ||
Average Recorded Investment | 36,107 | 100,212 | 36,848 | 102,264 | |
Interest Income Recognized | $ 516 | $ 1,177 | $ 1,086 | $ 3,510 |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses (Details Narrative) | Jun. 30, 2017USD ($)Number | Dec. 31, 2016USD ($)Number |
Receivables [Abstract] | ||
Deferred loan fees | $ 143,374 | $ 136,446 |
Loans pledged as collateral to secure funding with the Federal Reserve Bank | 103,400,000 | $ 101,200,000 |
Number of loans over 90 days past due and still accruing | Number | 2 | |
Restructured loans | $ 33,300 | $ 378,392 |
Number of loans restructured | Number | 1 | 2 |
Fair Value of Financial State31
Fair Value of Financial Statements (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities available for sale | $ 132,660,381 | $ 119,978,944 |
U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 24,195,314 | 23,939,063 |
Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 66,717,277 | 51,034,091 |
Municipal Securities [Member] | ||
Investment securities available for sale | 41,747,790 | 45,005,790 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Investment securities available for sale | 24,195,314 | 23,939,063 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Investment securities available for sale | 95,976,122 | 82,062,024 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Investment securities available for sale | 12,488,945 | 13,977,857 |
Recurring Basis [Member] | ||
Total fair value | 132,660,381 | 119,978,944 |
Recurring Basis [Member] | U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 24,195,314 | 23,939,063 |
Recurring Basis [Member] | Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 66,717,277 | 51,034,091 |
Recurring Basis [Member] | Municipal Securities [Member] | ||
Investment securities available for sale | 41,747,790 | 45,005,790 |
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Total fair value | 24,195,314 | 23,939,063 |
Recurring Basis [Member] | Quoted Prices in Active Markets (Level 1) [Member] | U.S. Treasury Notes [Member] | ||
Investment securities available for sale | 24,195,314 | 23,939,063 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Total fair value | 95,976,122 | 82,062,024 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Government-Sponsored Enterprises [Member] | ||
Investment securities available for sale | 66,717,277 | 51,034,091 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Municipal Securities [Member] | ||
Investment securities available for sale | 29,258,845 | 31,027,933 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Total fair value | 12,488,945 | 13,977,857 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Municipal Securities [Member] | ||
Investment securities available for sale | $ 12,488,945 | $ 13,977,857 |
Fair Value of Financial State32
Fair Value of Financial Statements (Details 1) - Significant Unobservable Inputs (Level 3) [Member] - Municipal Securities [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Beginning Balance | $ 13,458,445 | $ 5,249,351 | $ 13,977,857 | $ 5,217,678 |
Included in other comprehensive income | 215,500 | (1,463) | 241,088 | (33,136) |
Purchases, issuances and settlements, net of maturities | (1,185,000) | 2,454,000 | (1,730,000) | 2,454,000 |
Ending balance | $ 12,488,945 | $ 7,704,814 | $ 12,488,945 | $ 7,704,814 |
Fair Value of Financial State33
Fair Value of Financial Statements (Details 2) - Nonrecurring Basis [Member] - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Impaired loans fair value | $ 2,650,215 | $ 4,143,772 |
Other real estate owned fair value | 475,800 | 521,943 |
Loans held for sale fair value | 2,232,201 | 4,386,210 |
Total fair value | 5,358,216 | 9,051,925 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Loans held for sale fair value | 2,232,201 | 4,386,210 |
Total fair value | 2,232,201 | 4,386,210 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Impaired loans fair value | 2,650,215 | 4,143,772 |
Other real estate owned fair value | 475,800 | 521,943 |
Total fair value | $ 3,126,015 | $ 4,665,715 |
Fair Value of Financial State34
Fair Value of Financial Statements (Details 3) | 6 Months Ended |
Jun. 30, 2017 | |
Other Real Estate Owned [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Valuation technique | Appraisal Value/ Comparison Sales/Other Estimates |
Unobservable Input | Appraisals and/or Sales of Comparable Properties |
Description of general range of inputs | Appraisals Discounted 10% to 20% for Sales Commissions and Other Holding Costs |
Other Real Estate Owned [Member] | Collateral Discounts [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rate (in percent) | 20.00% |
Other Real Estate Owned [Member] | Appraisals and/or Sales [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rate (in percent) | 10.00% |
Impaired Loans [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Valuation technique | Discounted Appraisals |
Unobservable Input | Collateral Discounts |
Description of general range of inputs | 0 – 35% |
Impaired Loans [Member] | Collateral Discounts [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rate (in percent) | 0.00% |
Impaired Loans [Member] | Collateral Discounts [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rate (in percent) | 35.00% |
Fair Value of Financial State35
Fair Value of Financial Statements (Details 4) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Investment securities available for sale | $ 132,660,381 | $ 119,978,944 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Financial Assets: | ||
Cash and due from banks | 8,746,291 | 8,141,030 |
Interest-bearing deposits in other banks | 23,881,649 | 18,101,300 |
Investment securities available for sale | 24,195,314 | 23,939,063 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 95,976,122 | 82,062,024 |
Mortgage loans to be sold | 2,232,201 | 4,386,210 |
Accrued interest receivable | 1,551,357 | 1,614,002 |
Financial Liabilities: | ||
Demand deposits | 341,773,707 | 328,681,594 |
Time deposits | 44,734,936 | 43,856,383 |
Accrued interest payable | 59,031 | 51,629 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets: | ||
Investment securities available for sale | 12,488,945 | 13,977,857 |
Net loans | 255,780,927 | 256,555,052 |
Carrying Amount [Member] | ||
Financial Assets: | ||
Cash and due from banks | 8,746,291 | 8,141,030 |
Interest-bearing deposits in other banks | 23,881,649 | 18,101,300 |
Investment securities available for sale | 132,660,381 | 119,978,944 |
Mortgage loans to be sold | 2,232,201 | 4,386,210 |
Net loans | 256,302,230 | 256,724,498 |
Accrued interest receivable | 1,551,357 | 1,614,002 |
Financial Liabilities: | ||
Demand deposits | 341,773,707 | 328,681,594 |
Time deposits | 44,518,562 | 43,841,257 |
Accrued interest payable | 59,031 | 51,629 |
Estimated Fair Value [Member] | ||
Financial Assets: | ||
Cash and due from banks | 8,746,291 | 8,141,030 |
Interest-bearing deposits in other banks | 23,881,649 | 18,101,300 |
Investment securities available for sale | 132,660,381 | 119,978,944 |
Mortgage loans to be sold | 2,232,201 | 4,386,210 |
Net loans | 255,780,927 | 256,555,052 |
Accrued interest receivable | 1,551,357 | 1,614,002 |
Financial Liabilities: | ||
Demand deposits | 341,773,707 | 328,681,594 |
Time deposits | 44,734,936 | 43,856,383 |
Accrued interest payable | $ 59,031 | $ 51,629 |
Income Per Common Share (Detail
Income Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 1,386,385 | $ 1,312,110 | $ 2,612,473 | $ 2,507,846 |
Weighted average shares outstanding - basic | 4,967,907 | 4,929,722 | 4,965,094 | 4,923,266 |
Effect of dilutive shares | 105,001 | 126,801 | 103,930 | 124,335 |
Weighted average shares outstanding - diluted | 5,072,908 | 5,056,523 | 5,069,024 | 5,047,601 |
Earnings per share - basic | $ 0.28 | $ 0.27 | $ 0.53 | $ 0.51 |
Earnings per share - diluted | $ 0.27 | $ 0.26 | $ 0.52 | $ 0.50 |