Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 15, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-27702 | |
Entity Registrant Name | Bank of South Carolina Corporation | |
Entity Central Index Key | 0001007273 | |
Entity Tax Identification Number | 57-1021355 | |
Entity Incorporation, State or Country Code | SC | |
Entity Address, Address Line One | 256 Meeting Street | |
Entity Address, City or Town | Charleston | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29401 | |
City Area Code | 843 | |
Local Phone Number | 724-1500 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | BKSC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,550,476 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 7,946,158 | $ 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 61,420,171 | 128,971,429 |
Investment securities available for sale | 257,906,304 | 212,347,489 |
Mortgage loans to be sold | 2,626,999 | 2,774,388 |
Loans | 314,905,975 | 306,632,229 |
Less: Allowance for loan losses | (4,304,502) | (4,376,987) |
Net loans | 310,601,473 | 302,255,242 |
Premises, equipment and leasehold improvements, net | 3,716,805 | 3,782,936 |
Right of use asset | 13,889,805 | 14,041,843 |
Accrued interest receivable | 1,473,108 | 1,404,227 |
Other assets | 5,412,514 | 2,502,533 |
Total assets | 664,993,337 | 679,220,646 |
Deposits: | ||
Non-interest bearing demand | 258,738,170 | 255,783,644 |
Interest bearing demand | 159,954,068 | 165,335,038 |
Money market accounts | 92,136,722 | 98,113,942 |
Time deposits $250,000 and over | 7,668,871 | 7,417,864 |
Other time deposits | 13,424,001 | 13,870,356 |
Other savings deposits | 71,849,648 | 68,670,732 |
Total deposits | 603,771,480 | 609,191,576 |
Accrued interest payable and other liabilities | 2,373,739 | 2,069,594 |
Lease liability | 13,889,805 | 14,041,843 |
Total liabilities | 620,035,024 | 625,303,013 |
Shareholders’ equity | ||
Common stock - no par 12,000,000 shares authorized; Issued 5,850,450 shares at March 31, 2022 and 5,841,240 shares at December 31, 2021. Shares outstanding 5,550,476 and 5,541,266 at March 31, 2022 and December 31, 2021, respectively. | ||
Additional paid in capital | 47,914,892 | 47,745,285 |
Retained earnings | 11,643,236 | 11,122,710 |
Treasury stock: 299,974 shares at March 31, 2022 and December 31, 2021 | (2,817,392) | (2,817,392) |
Accumulated other comprehensive loss, net of income taxes | (11,782,423) | (2,132,970) |
Total shareholders’ equity | 44,958,313 | 53,917,633 |
Total liabilities and shareholders’ equity | $ 664,993,337 | $ 679,220,646 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 12,000,000 | 12,000,000 |
Common stock, issued | 5,850,450 | 5,841,240 |
Common stock, outstanding | 5,550,476 | 5,541,266 |
Treasury stock, shares | 299,974 | 299,974 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and fee income | ||
Loans, including fees | $ 3,551,875 | $ 4,106,171 |
Taxable securities | 559,670 | 453,457 |
Tax-exempt securities | 109,129 | 69,606 |
Other | 34,286 | 11,881 |
Total interest and fee income | 4,254,960 | 4,641,115 |
Interest expense | ||
Deposits | 36,797 | 54,524 |
Total interest expense | 36,797 | 54,524 |
Net interest income | 4,218,163 | 4,586,591 |
Provision for loan losses | (75,000) | 120,000 |
Net interest income after provision for loan losses | 4,293,163 | 4,466,591 |
Other income | ||
Service charges and fees | 307,593 | 288,224 |
Mortgage banking income | 258,896 | 645,895 |
Gain on sales of securities | 61,780 | |
Other non-interest income | 6,285 | 5,795 |
Total other income | 634,554 | 939,914 |
Other expense | ||
Salaries and employee benefits | 1,812,155 | 1,799,006 |
Net occupancy expense | 620,942 | 612,268 |
Other operating expenses | 294,733 | 311,465 |
Professional fees | 139,642 | 145,542 |
Data processing fees | 149,090 | 162,434 |
Total other expense | 3,016,562 | 3,030,715 |
Income before income tax expense | 1,911,155 | 2,375,790 |
Income tax expense | 447,049 | 565,715 |
Net income | $ 1,464,106 | $ 1,810,075 |
Weighted average shares outstanding | ||
Basic | 5,544,546 | 5,521,707 |
Diluted | 5,688,619 | 5,685,151 |
Basic income per common share | $ 0.26 | $ 0.33 |
Diluted income per common share | $ 0.26 | $ 0.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net income | $ 1,464,106 | $ 1,810,075 |
Other comprehensive loss | ||
Unrealized loss on securities arising during the period | (12,152,716) | (2,967,059) |
Reclassification adjustment for securities gains realized in net income | (61,780) | |
Other comprehensive loss before tax | (12,214,496) | (2,967,059) |
Income tax effect related to items of other comprehensive loss before tax | 2,565,043 | 623,082 |
Other comprehensive loss after tax | (9,649,453) | (2,343,977) |
Total comprehensive loss | $ (8,185,347) | $ (533,902) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 47,404,869 | $ 8,693,519 | $ (2,787,898) | $ 1,669,866 | $ 54,980,356 | |
Beginning balance (in shares) at Dec. 31, 2020 | 5,520,469 | |||||
Net income | 1,810,075 | 1,810,075 | ||||
Other comprehensive loss | (2,343,977) | (2,343,977) | ||||
Stock option exercises, net of surrenders | 39,589 | (8,344) | 31,245 | |||
Stock option exercises, net of surrenders (in shares) | 4,147 | |||||
Stock-based compensation expense | 22,997 | 22,997 | ||||
Cash dividends | (1,491,646) | (1,491,646) | ||||
Ending balance at Mar. 31, 2021 | 47,467,455 | 9,011,948 | (2,796,242) | (674,111) | 53,009,050 | |
Ending balance (in shares) at Mar. 31, 2021 | 5,524,616 | |||||
Beginning balance at Dec. 31, 2021 | 47,745,285 | 11,122,710 | (2,817,392) | (2,132,970) | $ 53,917,633 | |
Beginning balance (in shares) at Dec. 31, 2021 | 5,541,266 | 5,541,266 | ||||
Net income | 1,464,106 | $ 1,464,106 | ||||
Other comprehensive loss | (9,649,453) | (9,649,453) | ||||
Stock option exercises, net of surrenders | 141,618 | 141,618 | ||||
Stock option exercises, net of surrenders (in shares) | 9,210 | |||||
Stock-based compensation expense | 27,989 | 27,989 | ||||
Cash dividends | (943,580) | (943,580) | ||||
Ending balance at Mar. 31, 2022 | $ 47,914,892 | $ 11,643,236 | $ (2,817,392) | $ (11,782,423) | $ 44,958,313 | |
Ending balance (in shares) at Mar. 31, 2022 | 5,550,476 | 5,550,476 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (per share) | $ 0.17 | $ 0.27 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 1,464,106 | $ 1,810,075 |
Adjustments to reconcile net income net cash provided by operating activities: | ||
Depreciation expense | 97,694 | 106,414 |
Gain on sale of investment securities | (61,780) | |
Provision for loan losses | (75,000) | 120,000 |
Stock-based compensation expense | 27,989 | 22,997 |
Deferred income taxes and other assets | (344,938) | (813,220) |
Net amortization of unearned discounts on investment securities available for sale | 214,931 | 96,917 |
Origination of mortgage loans held for sale | (17,582,370) | (48,008,560) |
Proceeds from sale of mortgage loans held for sale | 17,729,759 | 47,744,276 |
(Increase) decrease in accrued interest receivable | (68,881) | 220,448 |
Increase in accrued interest payable and other liabilities | 302,580 | 699,515 |
Net cash provided by operating activities | 1,704,090 | 1,998,862 |
Cash flows from investing activities: | ||
Proceeds from calls and maturities of investment securities available for sale | 2,718,000 | 4,817,000 |
Proceeds from sale of investment securities available for sale | 15,120,000 | |
Purchase of investment securities available for sale | (75,764,462) | (15,728,575) |
Net increase in loans | (8,271,231) | (1,490,085) |
Purchase of premises, equipment, and leasehold improvements, net | (31,563) | (29,223) |
Net cash used in investing activities | (66,229,256) | (12,430,883) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposit accounts | (5,420,096) | 22,448,381 |
Dividends paid | (942,015) | (938,480) |
Stock options exercised, net of surrenders | 141,618 | 31,245 |
Net cash (used in) provided by financing activities | (6,220,493) | 21,541,146 |
Net (decrease) increase in cash and cash equivalents | (70,745,659) | 11,109,125 |
Cash and cash equivalents at the beginning of the period | 140,111,988 | 48,325,981 |
Cash and cash equivalents at the end of the period | 69,366,329 | 59,435,106 |
Cash paid during the period for: | ||
Interest | 37,340 | 75,231 |
Income taxes, net | $ 231,375 |
NATURE OF BUSINESS AND BASIS OF
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 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. In 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, or (“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 (“SEC”) on March 4, 2022. 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 consolidated financial statements are prepared in conformity with GAAP, which require 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. Income Per Common Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Dilutive income 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. 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 June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2020, the FASB issued guidance that makes narrow-scope improvements to various aspects of the financial instrument guidance, including the current expected credit losses (CECL) guidance issued in 2016. The amendments related to conforming amendments. For public business entities, the amendments are effective upon issuance of this final ASU. For the amendments related to ASU 2016-13, public business entities that meet the definition of an SEC filer, excluding eligible smaller reporting companies (SRCs) as defined by the SEC, should adopt the amendments in ASU 2016-13 during 2020. Early adoption will continue to be permitted. For entities that have not yet adopted the guidance in ASU 2016-13, the effective dates and the transition requirements for these amendments are the same as the effective date and transition requirements in ASU 2016-13. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In November 2021, the FASB added a topic to the Accounting Standards Codification, Government Assistance 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 | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2: Investment Securities The amortized cost and fair value of investment securities available for sale are summarized as follows: March 31, 2022 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 170,849,901 $ — $ (7,263,586 ) $ 163,586,315 Government-Sponsored Enterprises 66,242,773 7,546 (5,628,550 ) 60,621,769 Municipal Securities 35,728,088 6,525 (2,036,393 ) 33,698,220 Total $ 272,820,762 $ 14,071 $ (14,928,529 ) $ 257,906,304 December 31, 2021 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 101,269,851 $ 68,848 $ (1,276,399 ) $ 100,062,300 Government-Sponsored Enterprises 76,355,720 275,123 (1,909,834 ) 74,721,009 Municipal Securities 37,421,880 335,912 (193,612 ) 37,564,180 Total $ 215,047,451 $ 679,883 $ (3,379,845 ) $ 212,347,489 The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2022 and December 31, 2021, by contractual maturity are in the following table. March 31, 2022 December 31, 2021 Amortized Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 3,039,951 $ 3,014,039 $ 12,756,176 $ 12,859,086 Due in one year to five years 184,453,829 177,328,263 116,602,790 115,896,465 Due in five years to ten years 76,428,538 69,708,612 76,531,464 74,575,862 Due in ten years and over 8,898,444 7,855,390 9,157,021 9,016,076 Total $ 272,820,762 $ 257,906,304 $ 215,047,451 $ 212,347,489 Securities pledged to secure deposits at March 31, 2022 and December 31, 2021, had a fair value of $ 31 33.3 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 March 31, 2022 Less Than 12 Months 12 Months or Longer Total # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes 22 $ 158,707,410 $ (6,848,104 ) 1 $ 4,878,905 $ (415,482 ) 23 $ 163,586,315 $ (7,263,586 ) Government-Sponsored Enterprises 2 9,324,550 (675,450 ) 7 46,293,814 (4,953,100 ) 9 55,618,364 (5,628,550 ) Municipal Securities 70 31,221,099 (1,943,722 ) 1 977,570 (92,671 ) 71 32,198,669 (2,036,393 ) Total 94 $ 199,253,059 $ (9,467,276 ) 9 $ 52,150,289 $ (5,461,253 ) 103 $ 251,403,348 $ (14,928,529 ) December 31, 2021 Less Than 12 Months 12 Months or Longer Total # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes 15 $ 94,994,915 $ (1,276,399) — $ — $ — 15 $ 94,994,915 $ (1,276,399 ) Government-Sponsored Enterprises 3 19,480,595 (519,405) 6 39,909,134 (1,390,429 ) 9 59,389,729 (1,909,834 ) Municipa/l Securities 19 11,384,462 (193,612) — — — 19 11,384,462 (193,612 ) Total 37 $ 125,859,972 $ (1,989,416) 6 $ 39,909,134 $ (1,390,429 ) 43 $ 165,769,106 $ (3,379,845 ) The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. Three Months Ended March 31, 2022 2021 Gross proceeds $ 15,120,000 $ — Gross realized gains 61,780 — Gross realized losses — — There was a tax provision of $ 12,974 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3: Loans and Allowance for Loan Losses Major classifications of loans 342,835 488,481 March 31, 2022 December 31, 2021 Commercial $ 47,360,745 $ 45,804,434 Commercial Real Estate: Construction 14,750,474 12,054,095 Other 167,967,452 165,719,078 Consumer: Real estate 76,712,257 71,307,488 Other 3,677,522 3,768,531 Paycheck Protection Program 4,437,525 7,978,603 314,905,975 306,632,229 Allowance for loan losses (4,304,502 ) (4,376,987 ) Loans, net $ 310,601,473 $ 302,255,242 We had $ 96.3 94.7 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, which established the Paycheck Protection Program (“PPP”) and allocated $ 349 310 55.3 million 480 2.4 million 0.2 million 0.6 million 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 portfolio is graded in its entirety, with the exception of the PPP loans. Because the PPP loans are 100 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 at March 31, 2022 and December 31, 2021. March 31, 2022 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 45,293,533 $ 13,775,793 $ 163,137,366 $ 72,531,141 $ 3,426,221 $ 4,437,525 $ 302,601,579 Watch 686,987 974,681 2,768,774 3,656,913 191,740 — 8,279,095 OAEM 30,859 — 840,236 274,445 19,961 — 1,165,501 Substandard 1,349,366 — 1,221,076 249,758 39,600 — 2,859,800 Doubtful — — — — — — — Loss — — — — — — — Total $ 47,360,745 $ 14,750,474 $ 167,967,452 $ 76,712,257 $ 3,677,522 $ 4,437,525 $ 314,905,975 December 31, 2021 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 43,853,889 $ 11,616,118 $ 159,825,281 $ 69,920,347 $ 3,565,716 $ 7,978,603 $ 296,759,954 Watch 450,319 437,977 3,082,408 862,938 133,418 — 4,967,060 OAEM 36,749 — 1,158,268 274,445 29,244 — 1,498,706 Substandard 1,463,477 — 1,653,121 249,758 40,153 — 3,406,509 Doubtful — — — — — — — Loss — — — — — — — Total $ 45,804,434 $ 12,054,095 $ 165,719,078 $ 71,307,488 $ 3,768,531 $ 7,978,603 $ 306,632,229 The following tables include an aging analysis of the recorded investment in loans segregated by class. March 31, 2022 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 225,000 $ 1,915 $ — $ 226,915 $ 47,133,830 $ 47,360,745 $ — Commercial Real Estate Construction — — — — 14,750,474 14,750,474 — Commercial Real Estate Other 677,131 750,000 621,358 2,048,489 165,918,963 167,967,452 — Consumer Real Estate 203,042 — — 203,042 76,509,215 76,712,257 — Consumer Other 626 — — 626 3,676,896 3,677,522 — Paycheck Protection Program — — — — 4,437,525 4,437,525 — Total $ 1,105,799 $ 751,915 $ 621,358 $ 2,479,072 $ 312,426,903 $ 314,905,975 $ — December 31, 2021 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 88,659 $ — $ — $ 88,659 $ 45,715,775 $ 45,804,434 $ — Commercial Real Estate Construction — — — — 12,054,095 12,054,095 — Commercial Real Estate Other 59,269 288,464 337,490 685,223 165,033,855 165,719,078 — Consumer Real Estate — — — — 71,307,488 71,307,488 — Consumer Other 23,971 — — 23,971 3,744,560 3,768,531 — Paycheck Protection Program — — — — 7,978,603 7,978,603 — Total $ 171,899 $ 288,464 $ 337,490 $ 797,853 $ 305,834,376 $ 306,632,229 $ — There were no loans over 90 days past due and still accruing as of March 31, 2022 and December 31, 2021. The following table summarizes the balances of non-accrual loans: March 31, December 31, 2021 Commercial $ — $ 178,975 Commercial Real Estate Construction — — Commercial Real Estate Other 621,358 625,953 Consumer Real Estate — — Consumer Other 9,022 9,686 Paycheck Protection Program — — Total $ 630,380 $ 814,614 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 months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 795,689 $ 175,493 $ 2,376,306 $ 924,784 $ 104,715 $ — $ 4,376,987 Charge-offs — — — (2,035 ) — (10 ) (2,045 ) Recoveries — — — — 4,200 360 4,560 Provisions (7,596 ) 28,075 (82,296 ) (2,777 ) (10,056 ) (350 ) (75,000 ) Ending balance $ 788,093 $ 203,568 $ 2,294,010 $ 919,972 $ 98,859 $ — $ 4,304,502 Three Months Ended March 31, 2021 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 1,029,310 $ 199,266 $ 1,909,121 $ 925,077 $ 122,920 $ — $ 4,185,694 Charge-offs — — — — (8,152 ) (6,479 ) (14,631 ) Recoveries — — — — 4,812 290 5,102 Provisions (126,428 ) (54,721 ) 168,648 127,083 (771 ) 6,189 120,000 Ending balance $ 902,882 $ 144,545 $ 2,077,769 $ 1,052,160 $ 118,809 $ — $ 4,296,165 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated. March 31, 2022 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 183,418 $ — $ — $ — $ 39,600 $ — $ 223,018 Collectively evaluated for impairment 604,675 203,568 2,294,010 919,972 59,259 — 4,081,484 Total Allowance for Loan Losses $ 788,093 $ 203,568 $ 2,294,010 $ 919,972 $ 98,859 $ — $ 4,304,502 Loans Receivable Individually evaluated for impairment $ 1,349,365 $ — $ 1,221,076 $ 249,758 $ 39,600 $ — $ 2,859,799 Collectively evaluated for impairment 46,011,380 14,750,474 166,746,376 76,462,499 3,637,922 4,437,525 312,046,176 Total Loans Receivable $ 47,360,745 $ 14,750,474 $ 167,967,452 $ 76,712,257 $ 3,677,522 $ 4,437,525 $ 314,905,975 December 31, 2021 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 179,988 $ — $ — $ — $ 40,153 $ — $ 220,141 Collectively evaluated for impairment 615,701 175,493 2,376,306 924,784 64,562 — 4,156,846 Total Allowance for Loan Losses $ 795,689 $ 175,493 $ 2,376,306 $ 924,784 $ 104,715 $ — $ 4,376,987 Loans Receivable Individually evaluated for impairment $ 1,463,477 $ — $ 1,653,121 $ 249,758 $ 40,153 $ — $ 3,406,509 Collectively evaluated for impairment 44,340,957 12,054,095 164,065,957 71,057,730 3,728,378 7,978,603 303,225,720 Total Loans Receivable $ 45,804,434 $ 12,054,095 $ 165,719,078 $ 71,307,488 $ 3,768,531 $ 7,978,603 $ 306,632,229 As of March 31, 2022 and December 31, 2021, loans individually evaluated and considered impaired are presented in the following table. Impaired Loans as of March 31, 2022 December 31, 2021 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 175,805 $ 175,805 $ — $ 1,096,407 $ 1,096,407 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,221,076 1,221,076 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other — — — — — — Paycheck Protection Program — — — — — — Total 1,646,639 1,646,639 — 2,999,286 2,999,286 — With an allowance recorded: Commercial 1,173,560 1,173,560 183,418 367,070 367,070 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other — — — — — — Consumer Real Estate — — — — — — Consumer Other 39,600 39,600 39,600 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total 1,213,160 1,213,160 223,018 407,223 407,223 220,141 Commercial 1,349,365 1,349,365 183,418 1,463,477 1,463,477 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,221,076 1,221,076 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other 39,600 39,600 39,600 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total $ 2,859,799 $ 2,859,799 $ 223,018 $ 3,406,509 $ 3,406,509 $ 220,141 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. Three Months Ended March 31, 2022 2021 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 181,347 $ 2,720 $ 1,563,106 $ 25,815 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,226,665 7,706 5,482,702 49,760 Consumer Real Estate 249,758 2,617 249,833 3,491 Consumer Other — — — — Paycheck Protection Program — — — — 1,657,770 13,043 7,295,641 79,066 With an allowance recorded: Commercial 1,186,718 19,382 472,422 7,519 Commercial Real Estate Construction — — — — Commercial Real Estate Other — — — — Consumer Real Estate — — — — Consumer Other 39,822 638 41,848 672 Paycheck Protection Program — — — — 1,226,540 20,020 514,270 8,191 Total Commercial 1,368,065 22,102 2,035,528 33,334 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,226,665 7,706 5,482,702 49,760 Consumer Real Estate 249,758 2,617 249,833 3,491 Consumer Other 39,822 638 41,848 672 Paycheck Protection Program — — — — $ 2,884,310 $ 33,063 $ 7,809,911 $ 87,257 In general, the modification or restructuring of a debt is considered a troubled debt restructuring (“TDR”) if we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise consider. As of both March 31, 2022 and December 31, 2021, there were 5 1 no two Regulatory agencies, as set forth in the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (initially issued on March 22, 2020 and revised on April 7, 2020), have encouraged financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of the effects of COVID-19. In this statement, the regulatory agencies expressed their view of loan modification programs as positive actions that may mitigate adverse effects on borrowers due to COVID-19 and that the agencies will not criticize institutions for working with borrowers in a safe and sound manner. Moreover, the revised statement provides that eligible loan modifications related to COVID-19 may be accounted for under section 4013 of the CARES Act or in accordance with ASC 310-40. Under Section 4013 of the CARES Act, banks may elect not to categorize loan modifications as TDRs if the modifications are related to COVID-19, executed on a loan that was not more than 30 days past due as of December 31, 2019, and executed between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the date of termination of the National Emergency. All short-term loan modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not considered TDRs. Beginning in March 2020, the Bank provided payment accommodations to customers, consisting of 60-day principal deferral to borrowers negatively impacted by COVID-19. During 2020, the Bank processed approximately $ 0.7 84 25.9 0.24 one 0.2 two 0.5 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | Note 4: Leases As of March 31, 2022 and December 31, 2021, the Company had operating right of use (“ROU”) assets of $ 13.9 14.0 13.9 million 14.0 20 As of March 31, 2022, the weighted average remaining lease term was 16.3 4.17 The table below shows lease expense components March 31, 2022 2021 Operating lease expense $ 299,571 $ 301,537 Short-term lease expense — — Total lease expense $ 299,571 $ 301,537 Total rental expense was $ 299,571 301,537 As of March 31, 2022 and December 31, 2021, we did not maintain any finance leases, and we determined that the number and dollar amount of equipment leases was immaterial. As of March 31, 2022, we had no operating leases that had not yet commenced. |
Disclosures Regarding Fair Valu
Disclosures Regarding Fair Value of Financial Statements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Disclosures Regarding Fair Value of Financial Statements | Note 5: Disclosures Regarding Fair Value of Financial Statements 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 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 also significantly affect 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 recorded at fair value on a recurring basis. Investment Securities Available for Sale 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 municipal 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. We had no embedded derivative instruments requiring separate accounting treatment. We had freestanding derivative instruments consisting of fixed rate conforming loan commitments with 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 the short-term nature of mortgage loans to be sold (derivative contracts), our derivative instruments were immaterial to our consolidated financial statements as of March 31, 2022 and December 31, 2021. The following table presents information about assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 163,586,315 $ — $ — $ 163,586,315 Government-Sponsored Enterprises — 60,621,769 — 60,621,769 Municipal Securities — 13,071,566 20,626,654 33,698,220 Total $ 163,586,315 $ 73,693,335 $ 20,626,654 $ 257,906,304 December 31, 2021 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 100,062,300 $ — $ — $ 100,062,300 Government-Sponsored Enterprises — 74,721,009 — 74,721,009 Municipal Securities — 13,080,133 24,484,047 37,564,180 Total $ 100,062,300 $ 87,801,142 $ 24,484,047 $ 212,347,489 There were no liabilities recorded at fair value on a recurring basis as of March 31, 2022 or December 31, 2021. 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 months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Beginning balance $ 24,484,047 $ 5,683,930 Total gains or (losses) (realized/unrealized): Included in other comprehensive income (1,444,393 ) (78,054 ) Purchases, issuances, and settlements, net of maturities (2,413,000 ) (3,637,000 ) Ending balance $ 20,626,654 $ 1,968,876 There were no transfers between fair value levels during the three months ended March 31, 2022 or 2021. The following paragraphs describe the valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis. 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 Mortgage Loans to be Sold Mortgage loans to be sold are carried at the lower of cost or market value. The fair values of mortgage loans to be sold are based on current market rates from investors within the secondary market for loans with similar characteristics. Carrying value approximates fair value. These loans are classified as Level 2. Certain assets and liabilities 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 measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,470,833 $ 1,470,833 Mortgage loans to be sold — 2,626,999 — 2,626,999 Total $ — $ 2,626,999 $ 1,470,833 $ 4,097,832 December 31, 2021 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,902,879 $ 1,902,879 Mortgage loans to be sold — 2,774,388 — 2,774,388 Total $ — $ 2,774,388 $ 1,902,879 $ 4,677,267 There were no liabilities measured at fair value on a nonrecurring basis as of March 31 2022 or December 31, 2021. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2022 and December 31, 2021: Inputs Valuation Technique Unobservable Input General Range of Inputs Impaired Loans Appraisal Value/Comparison Sales/Other Estimates Appraisals and/or Sales of Comparable Properties Appraisals Discounted 10 20 Accounting standards require 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: a. Cash and due from banks, interest-bearing deposits at the Federal Reserve Bank The carrying value approximates fair value. All mature within 90 days and do not present unanticipated credit concerns. b. Investment securities available for sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. c. Loans The fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. Additionally, in accordance with ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated based on the fair value of the underlying collateral. Impaired loans measured using discounted future cash flows are not deemed to be measured at fair value. d. 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. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the deposit liabilities as compared to the cost of alternative forms of funding (deposit base intangibles). e. 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. f. 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 March 31, 2022 and December 31, 2021, respectively. March 31, 2022 Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and due from banks $ 7,946,158 $ 7,946,158 $ — $ — $ 7,946,158 Interest-bearing deposits at the Federal Reserve 61,420,171 61,420,171 — — 61,420,171 Investment securities available for sale 257,906,304 163,586,315 73,693,335 20,626,654 257,906,304 Mortgage loans to be sold 2,626,999 — 2,626,999 — 2,626,999 Loans, net 310,601,473 — — 301,121,392 301,121,392 Accrued interest receivable 1,473,108 — 1,473,108 — 1,473,108 Financial Liabilities: Demand deposits 582,678,608 — 582,678,608 — 582,678,608 Time deposits 21,092,872 — 21,243,268 — 21,243,268 Accrued interest payable 14,371 — 14,371 — 14,371 December 31, 2021 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total Financial Assets: Cash and due from banks $ 11,140,559 $ 11,140,559 $ — $ — $ 11,140,559 Interest-bearing deposits at the Federal Reserve 128,971,429 128,971,429 — — 128,971,429 Investment securities available for sale 212,347,489 100,062,300 87,801,142 24,484,047 212,347,489 Mortgage loans to be sold 2,774,388 — 2,774,388 — 2,774,388 Loans, net 302,255,242 — — 293,731,997 293,731,997 Accrued interest receivable 1,404,227 — 1,404,227 1,404,227 Financial Liabilities: Demand deposits 587,903,356 — 587,903,356 — 587,903,356 Time deposits 21,288,220 — 21,428,310 — 21,428,310 Accrued interest payable 14,914 — 14,914 14,914 |
Income Per Common Share
Income Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | Note 6: Income Per Common Share The following table is a summary of the reconciliation of weighted average shares outstanding: Three Months Ended March 31, 2022 2021 Net income $ 1,464,106 $ 1,810,075 Weighted average shares outstanding 5,544,546 5,521,707 Effect of dilutive shares 144,073 163,444 Weighted average shares outstanding - diluted 5,688,619 5,685,151 Earnings per share - basic $ 0.26 $ 0.33 Earnings per share - diluted $ 0.26 $ 0.32 |
NATURE OF BUSINESS AND BASIS _2
NATURE OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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. In 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, or (“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 (“SEC”) on March 4, 2022. 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 consolidated financial statements are prepared in conformity with GAAP, which require 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. |
Income Per Common Share | Income Per Common Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Dilutive income 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. |
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 June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In March 2020, the FASB issued guidance that makes narrow-scope improvements to various aspects of the financial instrument guidance, including the current expected credit losses (CECL) guidance issued in 2016. The amendments related to conforming amendments. For public business entities, the amendments are effective upon issuance of this final ASU. For the amendments related to ASU 2016-13, public business entities that meet the definition of an SEC filer, excluding eligible smaller reporting companies (SRCs) as defined by the SEC, should adopt the amendments in ASU 2016-13 during 2020. Early adoption will continue to be permitted. For entities that have not yet adopted the guidance in ASU 2016-13, the effective dates and the transition requirements for these amendments are the same as the effective date and transition requirements in ASU 2016-13. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In November 2021, the FASB added a topic to the Accounting Standards Codification, Government Assistance 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) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
The amortized cost and fair value of investment securities available for sale are summarized as follows: | The amortized cost and fair value of investment securities available for sale are summarized as follows: March 31, 2022 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 170,849,901 $ — $ (7,263,586 ) $ 163,586,315 Government-Sponsored Enterprises 66,242,773 7,546 (5,628,550 ) 60,621,769 Municipal Securities 35,728,088 6,525 (2,036,393 ) 33,698,220 Total $ 272,820,762 $ 14,071 $ (14,928,529 ) $ 257,906,304 December 31, 2021 Amortized Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 101,269,851 $ 68,848 $ (1,276,399 ) $ 100,062,300 Government-Sponsored Enterprises 76,355,720 275,123 (1,909,834 ) 74,721,009 Municipal Securities 37,421,880 335,912 (193,612 ) 37,564,180 Total $ 215,047,451 $ 679,883 $ (3,379,845 ) $ 212,347,489 |
The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2022 and December 31, 2021, by contractual maturity are in the following table. | The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2022 and December 31, 2021, by contractual maturity are in the following table. March 31, 2022 December 31, 2021 Amortized Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 3,039,951 $ 3,014,039 $ 12,756,176 $ 12,859,086 Due in one year to five years 184,453,829 177,328,263 116,602,790 115,896,465 Due in five years to ten years 76,428,538 69,708,612 76,531,464 74,575,862 Due in ten years and over 8,898,444 7,855,390 9,157,021 9,016,076 Total $ 272,820,762 $ 257,906,304 $ 215,047,451 $ 212,347,489 |
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 | 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 March 31, 2022 Less Than 12 Months 12 Months or Longer Total # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes 22 $ 158,707,410 $ (6,848,104 ) 1 $ 4,878,905 $ (415,482 ) 23 $ 163,586,315 $ (7,263,586 ) Government-Sponsored Enterprises 2 9,324,550 (675,450 ) 7 46,293,814 (4,953,100 ) 9 55,618,364 (5,628,550 ) Municipal Securities 70 31,221,099 (1,943,722 ) 1 977,570 (92,671 ) 71 32,198,669 (2,036,393 ) Total 94 $ 199,253,059 $ (9,467,276 ) 9 $ 52,150,289 $ (5,461,253 ) 103 $ 251,403,348 $ (14,928,529 ) December 31, 2021 Less Than 12 Months 12 Months or Longer Total # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss # Fair Value Gross Unrealized Loss U.S. Treasury Notes 15 $ 94,994,915 $ (1,276,399) — $ — $ — 15 $ 94,994,915 $ (1,276,399 ) Government-Sponsored Enterprises 3 19,480,595 (519,405) 6 39,909,134 (1,390,429 ) 9 59,389,729 (1,909,834 ) Municipa/l Securities 19 11,384,462 (193,612) — — — 19 11,384,462 (193,612 ) Total 37 $ 125,859,972 $ (1,989,416) 6 $ 39,909,134 $ (1,390,429 ) 43 $ 165,769,106 $ (3,379,845 ) |
The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. | The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. Three Months Ended March 31, 2022 2021 Gross proceeds $ 15,120,000 $ — Gross realized gains 61,780 — Gross realized losses — — |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Major classifications of loans | Major classifications of loans 342,835 488,481 March 31, 2022 December 31, 2021 Commercial $ 47,360,745 $ 45,804,434 Commercial Real Estate: Construction 14,750,474 12,054,095 Other 167,967,452 165,719,078 Consumer: Real estate 76,712,257 71,307,488 Other 3,677,522 3,768,531 Paycheck Protection Program 4,437,525 7,978,603 314,905,975 306,632,229 Allowance for loan losses (4,304,502 ) (4,376,987 ) Loans, net $ 310,601,473 $ 302,255,242 |
The following tables illustrate credit quality by class and internally assigned grades at March 31, 2022 and December 31, 2021. | The following tables illustrate credit quality by class and internally assigned grades at March 31, 2022 and December 31, 2021. March 31, 2022 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 45,293,533 $ 13,775,793 $ 163,137,366 $ 72,531,141 $ 3,426,221 $ 4,437,525 $ 302,601,579 Watch 686,987 974,681 2,768,774 3,656,913 191,740 — 8,279,095 OAEM 30,859 — 840,236 274,445 19,961 — 1,165,501 Substandard 1,349,366 — 1,221,076 249,758 39,600 — 2,859,800 Doubtful — — — — — — — Loss — — — — — — — Total $ 47,360,745 $ 14,750,474 $ 167,967,452 $ 76,712,257 $ 3,677,522 $ 4,437,525 $ 314,905,975 December 31, 2021 Commercial Commercial Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 43,853,889 $ 11,616,118 $ 159,825,281 $ 69,920,347 $ 3,565,716 $ 7,978,603 $ 296,759,954 Watch 450,319 437,977 3,082,408 862,938 133,418 — 4,967,060 OAEM 36,749 — 1,158,268 274,445 29,244 — 1,498,706 Substandard 1,463,477 — 1,653,121 249,758 40,153 — 3,406,509 Doubtful — — — — — — — Loss — — — — — — — Total $ 45,804,434 $ 12,054,095 $ 165,719,078 $ 71,307,488 $ 3,768,531 $ 7,978,603 $ 306,632,229 |
The following tables include an aging analysis of the recorded investment in loans segregated by class. | The following tables include an aging analysis of the recorded investment in loans segregated by class. March 31, 2022 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 225,000 $ 1,915 $ — $ 226,915 $ 47,133,830 $ 47,360,745 $ — Commercial Real Estate Construction — — — — 14,750,474 14,750,474 — Commercial Real Estate Other 677,131 750,000 621,358 2,048,489 165,918,963 167,967,452 — Consumer Real Estate 203,042 — — 203,042 76,509,215 76,712,257 — Consumer Other 626 — — 626 3,676,896 3,677,522 — Paycheck Protection Program — — — — 4,437,525 4,437,525 — Total $ 1,105,799 $ 751,915 $ 621,358 $ 2,479,072 $ 312,426,903 $ 314,905,975 $ — December 31, 2021 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment ≥ Commercial $ 88,659 $ — $ — $ 88,659 $ 45,715,775 $ 45,804,434 $ — Commercial Real Estate Construction — — — — 12,054,095 12,054,095 — Commercial Real Estate Other 59,269 288,464 337,490 685,223 165,033,855 165,719,078 — Consumer Real Estate — — — — 71,307,488 71,307,488 — Consumer Other 23,971 — — 23,971 3,744,560 3,768,531 — Paycheck Protection Program — — — — 7,978,603 7,978,603 — Total $ 171,899 $ 288,464 $ 337,490 $ 797,853 $ 305,834,376 $ 306,632,229 $ — |
The following table summarizes the balances of non-accrual loans: | The following table summarizes the balances of non-accrual loans: March 31, December 31, 2021 Commercial $ — $ 178,975 Commercial Real Estate Construction — — Commercial Real Estate Other 621,358 625,953 Consumer Real Estate — — Consumer Other 9,022 9,686 Paycheck Protection Program — — Total $ 630,380 $ 814,614 |
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 months ended March 31, 2022 and 2021. | 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 months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 795,689 $ 175,493 $ 2,376,306 $ 924,784 $ 104,715 $ — $ 4,376,987 Charge-offs — — — (2,035 ) — (10 ) (2,045 ) Recoveries — — — — 4,200 360 4,560 Provisions (7,596 ) 28,075 (82,296 ) (2,777 ) (10,056 ) (350 ) (75,000 ) Ending balance $ 788,093 $ 203,568 $ 2,294,010 $ 919,972 $ 98,859 $ — $ 4,304,502 Three Months Ended March 31, 2021 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses: Beginning balance $ 1,029,310 $ 199,266 $ 1,909,121 $ 925,077 $ 122,920 $ — $ 4,185,694 Charge-offs — — — — (8,152 ) (6,479 ) (14,631 ) Recoveries — — — — 4,812 290 5,102 Provisions (126,428 ) (54,721 ) 168,648 127,083 (771 ) 6,189 120,000 Ending balance $ 902,882 $ 144,545 $ 2,077,769 $ 1,052,160 $ 118,809 $ — $ 4,296,165 |
The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated. | The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated. March 31, 2022 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 183,418 $ — $ — $ — $ 39,600 $ — $ 223,018 Collectively evaluated for impairment 604,675 203,568 2,294,010 919,972 59,259 — 4,081,484 Total Allowance for Loan Losses $ 788,093 $ 203,568 $ 2,294,010 $ 919,972 $ 98,859 $ — $ 4,304,502 Loans Receivable Individually evaluated for impairment $ 1,349,365 $ — $ 1,221,076 $ 249,758 $ 39,600 $ — $ 2,859,799 Collectively evaluated for impairment 46,011,380 14,750,474 166,746,376 76,462,499 3,637,922 4,437,525 312,046,176 Total Loans Receivable $ 47,360,745 $ 14,750,474 $ 167,967,452 $ 76,712,257 $ 3,677,522 $ 4,437,525 $ 314,905,975 December 31, 2021 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Individually evaluated for impairment $ 179,988 $ — $ — $ — $ 40,153 $ — $ 220,141 Collectively evaluated for impairment 615,701 175,493 2,376,306 924,784 64,562 — 4,156,846 Total Allowance for Loan Losses $ 795,689 $ 175,493 $ 2,376,306 $ 924,784 $ 104,715 $ — $ 4,376,987 Loans Receivable Individually evaluated for impairment $ 1,463,477 $ — $ 1,653,121 $ 249,758 $ 40,153 $ — $ 3,406,509 Collectively evaluated for impairment 44,340,957 12,054,095 164,065,957 71,057,730 3,728,378 7,978,603 303,225,720 Total Loans Receivable $ 45,804,434 $ 12,054,095 $ 165,719,078 $ 71,307,488 $ 3,768,531 $ 7,978,603 $ 306,632,229 |
As of March 31, 2022 and December 31, 2021, loans individually evaluated and considered impaired are presented in the following table. | As of March 31, 2022 and December 31, 2021, loans individually evaluated and considered impaired are presented in the following table. Impaired Loans as of March 31, 2022 December 31, 2021 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related allowance recorded: Commercial $ 175,805 $ 175,805 $ — $ 1,096,407 $ 1,096,407 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,221,076 1,221,076 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other — — — — — — Paycheck Protection Program — — — — — — Total 1,646,639 1,646,639 — 2,999,286 2,999,286 — With an allowance recorded: Commercial 1,173,560 1,173,560 183,418 367,070 367,070 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other — — — — — — Consumer Real Estate — — — — — — Consumer Other 39,600 39,600 39,600 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total 1,213,160 1,213,160 223,018 407,223 407,223 220,141 Commercial 1,349,365 1,349,365 183,418 1,463,477 1,463,477 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,221,076 1,221,076 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other 39,600 39,600 39,600 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total $ 2,859,799 $ 2,859,799 $ 223,018 $ 3,406,509 $ 3,406,509 $ 220,141 |
The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. | The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. Three Months Ended March 31, 2022 2021 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 181,347 $ 2,720 $ 1,563,106 $ 25,815 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,226,665 7,706 5,482,702 49,760 Consumer Real Estate 249,758 2,617 249,833 3,491 Consumer Other — — — — Paycheck Protection Program — — — — 1,657,770 13,043 7,295,641 79,066 With an allowance recorded: Commercial 1,186,718 19,382 472,422 7,519 Commercial Real Estate Construction — — — — Commercial Real Estate Other — — — — Consumer Real Estate — — — — Consumer Other 39,822 638 41,848 672 Paycheck Protection Program — — — — 1,226,540 20,020 514,270 8,191 Total Commercial 1,368,065 22,102 2,035,528 33,334 Commercial Real Estate Construction — — — — Commercial Real Estate Other 1,226,665 7,706 5,482,702 49,760 Consumer Real Estate 249,758 2,617 249,833 3,491 Consumer Other 39,822 638 41,848 672 Paycheck Protection Program — — — — $ 2,884,310 $ 33,063 $ 7,809,911 $ 87,257 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
The table below shows lease expense components | The table below shows lease expense components March 31, 2022 2021 Operating lease expense $ 299,571 $ 301,537 Short-term lease expense — — Total lease expense $ 299,571 $ 301,537 |
Disclosures Regarding Fair Va_2
Disclosures Regarding Fair Value of Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
The following table presents information about assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: | The following table presents information about assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 163,586,315 $ — $ — $ 163,586,315 Government-Sponsored Enterprises — 60,621,769 — 60,621,769 Municipal Securities — 13,071,566 20,626,654 33,698,220 Total $ 163,586,315 $ 73,693,335 $ 20,626,654 $ 257,906,304 December 31, 2021 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 100,062,300 $ — $ — $ 100,062,300 Government-Sponsored Enterprises — 74,721,009 — 74,721,009 Municipal Securities — 13,080,133 24,484,047 37,564,180 Total $ 100,062,300 $ 87,801,142 $ 24,484,047 $ 212,347,489 |
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 months ended March 31, 2022 and 2021: | 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 months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 Beginning balance $ 24,484,047 $ 5,683,930 Total gains or (losses) (realized/unrealized): Included in other comprehensive income (1,444,393 ) (78,054 ) Purchases, issuances, and settlements, net of maturities (2,413,000 ) (3,637,000 ) Ending balance $ 20,626,654 $ 1,968,876 |
The following tables present information about certain assets measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021: | Certain assets and liabilities 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 measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,470,833 $ 1,470,833 Mortgage loans to be sold — 2,626,999 — 2,626,999 Total $ — $ 2,626,999 $ 1,470,833 $ 4,097,832 December 31, 2021 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,902,879 $ 1,902,879 Mortgage loans to be sold — 2,774,388 — 2,774,388 Total $ — $ 2,774,388 $ 1,902,879 $ 4,677,267 |
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2022 and December 31, 2021: | The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2022 and December 31, 2021: Inputs Valuation Technique Unobservable Input General Range of Inputs Impaired Loans Appraisal Value/Comparison Sales/Other Estimates Appraisals and/or Sales of Comparable Properties Appraisals Discounted 10 20 |
The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of March 31, 2022 and December 31, 2021, respectively. | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of March 31, 2022 and December 31, 2021, respectively. March 31, 2022 Estimated Fair Value Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and due from banks $ 7,946,158 $ 7,946,158 $ — $ — $ 7,946,158 Interest-bearing deposits at the Federal Reserve 61,420,171 61,420,171 — — 61,420,171 Investment securities available for sale 257,906,304 163,586,315 73,693,335 20,626,654 257,906,304 Mortgage loans to be sold 2,626,999 — 2,626,999 — 2,626,999 Loans, net 310,601,473 — — 301,121,392 301,121,392 Accrued interest receivable 1,473,108 — 1,473,108 — 1,473,108 Financial Liabilities: Demand deposits 582,678,608 — 582,678,608 — 582,678,608 Time deposits 21,092,872 — 21,243,268 — 21,243,268 Accrued interest payable 14,371 — 14,371 — 14,371 December 31, 2021 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total Financial Assets: Cash and due from banks $ 11,140,559 $ 11,140,559 $ — $ — $ 11,140,559 Interest-bearing deposits at the Federal Reserve 128,971,429 128,971,429 — — 128,971,429 Investment securities available for sale 212,347,489 100,062,300 87,801,142 24,484,047 212,347,489 Mortgage loans to be sold 2,774,388 — 2,774,388 — 2,774,388 Loans, net 302,255,242 — — 293,731,997 293,731,997 Accrued interest receivable 1,404,227 — 1,404,227 1,404,227 Financial Liabilities: Demand deposits 587,903,356 — 587,903,356 — 587,903,356 Time deposits 21,288,220 — 21,428,310 — 21,428,310 Accrued interest payable 14,914 — 14,914 14,914 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
The following table is a summary of the reconciliation of weighted average shares outstanding: | The following table is a summary of the reconciliation of weighted average shares outstanding: Three Months Ended March 31, 2022 2021 Net income $ 1,464,106 $ 1,810,075 Weighted average shares outstanding 5,544,546 5,521,707 Effect of dilutive shares 144,073 163,444 Weighted average shares outstanding - diluted 5,688,619 5,685,151 Earnings per share - basic $ 0.26 $ 0.33 Earnings per share - diluted $ 0.26 $ 0.32 |
The amortized cost and fair val
The amortized cost and fair value of investment securities available for sale are summarized as follows: (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 272,820,762 | $ 215,047,451 |
Gross Unrealized Gains | 14,071 | 679,883 |
Gross Unrealized Losses | (14,928,529) | (3,379,845) |
Estimated Fair Value | 257,906,304 | 212,347,489 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 170,849,901 | 101,269,851 |
Gross Unrealized Gains | 68,848 | |
Gross Unrealized Losses | (7,263,586) | (1,276,399) |
Estimated Fair Value | 163,586,315 | 100,062,300 |
US Government Corporations and Agencies Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 66,242,773 | 76,355,720 |
Gross Unrealized Gains | 7,546 | 275,123 |
Gross Unrealized Losses | (5,628,550) | (1,909,834) |
Estimated Fair Value | 60,621,769 | 74,721,009 |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 35,728,088 | 37,421,880 |
Gross Unrealized Gains | 6,525 | 335,912 |
Gross Unrealized Losses | (2,036,393) | (193,612) |
Estimated Fair Value | $ 33,698,220 | $ 37,564,180 |
The amortized cost and estimate
The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2022 and December 31, 2021, by contractual maturity are in the following table. (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, amortized cost | $ 3,039,951 | $ 12,756,176 |
Due in one year or less, estimated fair value | 3,014,039 | 12,859,086 |
Due in one year to five years, amortized cost | 184,453,829 | 116,602,790 |
Due in one year to five years, estimated fair value | 177,328,263 | 115,896,465 |
Due in five years to ten years, amortized cost | 76,428,538 | 76,531,464 |
Due in five years to ten years, estimated fair value | 69,708,612 | 74,575,862 |
Due in ten years and over, amortized cost | 8,898,444 | 9,157,021 |
Due in ten years and over, estimated fair value | 7,855,390 | 9,016,076 |
Total, amortized cost | 272,820,762 | 215,047,451 |
Total, estimated fair value | $ 257,906,304 | $ 212,347,489 |
The tables below summarize gros
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 (Details) | Mar. 31, 2022USD ($)Number | Dec. 31, 2021USD ($)Number |
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 94 | 37 |
Fair Value, less than 12 months | $ 199,253,059 | $ 125,859,972 |
Gross Unrealized Losses, less than 12 months | $ (9,467,276) | $ (1,989,416) |
Number of positions, 12 months or longer | Number | 9 | 6 |
Fair Value, 12 months or longer | $ 52,150,289 | $ 39,909,134 |
Gross Unrealized Losses, 12 months or longer | $ (5,461,253) | $ (1,390,429) |
Number of positions | Number | 103 | 43 |
Fair value | $ 251,403,348 | $ 165,769,106 |
Gross Unrealized Losses | $ (14,928,529) | $ (3,379,845) |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 22 | 15 |
Fair Value, less than 12 months | $ 158,707,410 | $ 94,994,915 |
Gross Unrealized Losses, less than 12 months | $ (6,848,104) | $ (1,276,399) |
Number of positions, 12 months or longer | Number | 1 | |
Fair Value, 12 months or longer | $ 4,878,905 | |
Gross Unrealized Losses, 12 months or longer | $ (415,482) | |
Number of positions | Number | 23 | 15 |
Fair value | $ 163,586,315 | $ 94,994,915 |
Gross Unrealized Losses | $ (7,263,586) | $ (1,276,399) |
US Government Corporations and Agencies Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 2 | 3 |
Fair Value, less than 12 months | $ 9,324,550 | $ 19,480,595 |
Gross Unrealized Losses, less than 12 months | $ (675,450) | $ (519,405) |
Number of positions, 12 months or longer | Number | 7 | 6 |
Fair Value, 12 months or longer | $ 46,293,814 | $ 39,909,134 |
Gross Unrealized Losses, 12 months or longer | $ (4,953,100) | $ (1,390,429) |
Number of positions | Number | 9 | 9 |
Fair value | $ 55,618,364 | $ 59,389,729 |
Gross Unrealized Losses | $ (5,628,550) | $ (1,909,834) |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 70 | 19 |
Fair Value, less than 12 months | $ 31,221,099 | $ 11,384,462 |
Gross Unrealized Losses, less than 12 months | $ (1,943,722) | $ (193,612) |
Number of positions, 12 months or longer | Number | 1 | |
Fair Value, 12 months or longer | $ 977,570 | |
Gross Unrealized Losses, 12 months or longer | $ (92,671) | |
Number of positions | Number | 71 | 19 |
Fair value | $ 32,198,669 | $ 11,384,462 |
Gross Unrealized Losses | $ (2,036,393) | $ (193,612) |
The tables below show the proce
The tables below show the proceeds from sales of securities available for sale and gross realized gains and losses. (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross proceeds | $ 15,120,000 | |
Gross realized gains | 61,780 | |
Gross realized losses |
Investment Securities (Details
Investment Securities (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Investment securities, fair value | $ 257,906,304 | $ 212,347,489 |
Gross realized gains (losses) on sale of investments, tax | 12,974 | |
Asset Pledged as Collateral [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment securities, fair value | $ 31,000,000 | $ 33,300,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details Narrative) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2022USD ($)Number | Mar. 31, 2021USD ($)Number | Dec. 31, 2020USD ($)Number | Dec. 31, 2021USD ($)Number | Apr. 24, 2020USD ($) | Mar. 27, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Deferred loan fees | $ 342,835 | $ 488,481 | ||||
Loans | $ 314,905,975 | $ 306,632,229 | ||||
Restructured loans number | Number | 5 | 5 | ||||
Restructured loans amount | $ 1,000,000 | $ 1,000,000 | ||||
Number of TDRs added | Number | 0 | 0 | ||||
CARES Act [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Principal deferments amount | $ 700,000 | |||||
Principal deferments number of customers | Number | 84 | |||||
Loan balance of principal deferred loans | $ 25,900,000 | |||||
Principal deferments percentage of portfolio | 0.24% | |||||
Interest Only Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Restructured loans number | Number | 2 | |||||
Principal Deferments [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Restructured loans number | Number | 1 | 2 | ||||
Restructured loans amount | $ 200,000 | $ 500,000 | ||||
Paycheck Protection Program [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 4,437,525 | 7,978,603 | ||||
Loans to be issued under CARES Act | $ 349,000,000,000 | |||||
Additional funding of loans to be issued under CARES Act | $ 310,000,000,000 | |||||
Bank funding amount | $ 55,300,000 | |||||
Bank funding number of customers | Number | 480 | |||||
Processing fees received | $ 2,400,000 | |||||
Processing fee recognised | $ 200,000 | $ 600,000 | ||||
Guarantee of loan by SBA (percent) | 100.00% | |||||
Asset Pledged as Collateral [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 96,300,000 | $ 94,700,000 |
Major classifications of loans
Major classifications of loans (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 314,905,975 | $ 306,632,229 |
Allowance for loan losses | (4,304,502) | (4,376,987) |
Loans, net | 310,601,473 | 302,255,242 |
Commercial Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 47,360,745 | 45,804,434 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 14,750,474 | 12,054,095 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 167,967,452 | 165,719,078 |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 76,712,257 | 71,307,488 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,677,522 | 3,768,531 |
Paycheck Protection Program [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4,437,525 | $ 7,978,603 |
The following tables illustrate
The following tables illustrate credit quality by class and internally assigned grades at March 31, 2022 and December 31, 2021. (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 314,905,975 | $ 306,632,229 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 302,601,579 | 296,759,954 |
Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,279,095 | 4,967,060 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,165,501 | 1,498,706 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,859,800 | 3,406,509 |
Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 47,360,745 | 45,804,434 |
Commercial Loan [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 45,293,533 | 43,853,889 |
Commercial Loan [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 686,987 | 450,319 |
Commercial Loan [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 30,859 | 36,749 |
Commercial Loan [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,349,366 | 1,463,477 |
Commercial Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 14,750,474 | 12,054,095 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 13,775,793 | 11,616,118 |
Commercial Real Estate Construction [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 974,681 | 437,977 |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 167,967,452 | 165,719,078 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 163,137,366 | 159,825,281 |
Commercial Real Estate Other [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,768,774 | 3,082,408 |
Commercial Real Estate Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 840,236 | 1,158,268 |
Commercial Real Estate Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,221,076 | 1,653,121 |
Residential Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 76,712,257 | 71,307,488 |
Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 72,531,141 | 69,920,347 |
Residential Mortgage [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,656,913 | 862,938 |
Residential Mortgage [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 274,445 | 274,445 |
Residential Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 249,758 | 249,758 |
Consumer Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,677,522 | 3,768,531 |
Consumer Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,426,221 | 3,565,716 |
Consumer Other [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 191,740 | 133,418 |
Consumer Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 19,961 | 29,244 |
Consumer Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 39,600 | 40,153 |
Paycheck Protection Program [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,437,525 | 7,978,603 |
Paycheck Protection Program [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 4,437,525 | $ 7,978,603 |
The following tables include an
The following tables include an aging analysis of the recorded investment in loans segregated by class. (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | $ 314,905,975 | $ 306,632,229 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 1,105,799 | 171,899 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 751,915 | 288,464 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,479,072 | 797,853 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 312,426,903 | 305,834,376 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 621,358 | 337,490 |
Commercial Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 47,360,745 | 45,804,434 |
Commercial Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 225,000 | 88,659 |
Commercial Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 1,915 | |
Commercial Loan [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 226,915 | 88,659 |
Commercial Loan [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 47,133,830 | 45,715,775 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 14,750,474 | 12,054,095 |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 14,750,474 | 12,054,095 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 167,967,452 | 165,719,078 |
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 677,131 | 59,269 |
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 750,000 | 288,464 |
Commercial Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 2,048,489 | 685,223 |
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 165,918,963 | 165,033,855 |
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 621,358 | 337,490 |
Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 76,712,257 | 71,307,488 |
Residential Mortgage [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 203,042 | |
Residential Mortgage [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 203,042 | |
Residential Mortgage [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 76,509,215 | 71,307,488 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 3,677,522 | 3,768,531 |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 626 | 23,971 |
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 626 | 23,971 |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 3,676,896 | 3,744,560 |
Paycheck Protection Program [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | 4,437,525 | 7,978,603 |
Paycheck Protection Program [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans receivable | $ 4,437,525 | $ 7,978,603 |
The following table summarizes
The following table summarizes the balances of non-accrual loans: (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans receivable on non-accrual | $ 630,380 | $ 814,614 |
Commercial Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable on non-accrual | 178,975 | |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable on non-accrual | 621,358 | 625,953 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable on non-accrual | $ 9,022 | $ 9,686 |
The following tables set forth
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 months ended March 31, 2022 and 2021. (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loan Losses: | ||
Beginning balance | $ 4,376,987 | $ 4,185,694 |
Charge-offs | (2,045) | (14,631) |
Recoveries | 4,560 | 5,102 |
Provisions | (75,000) | 120,000 |
Ending balance | 4,304,502 | 4,296,165 |
Commercial Loan [Member] | ||
Allowance for Loan Losses: | ||
Beginning balance | 795,689 | 1,029,310 |
Charge-offs | ||
Recoveries | ||
Provisions | (7,596) | (126,428) |
Ending balance | 788,093 | 902,882 |
Commercial Real Estate Portfolio Segment [Member] | ||
Allowance for Loan Losses: | ||
Beginning balance | 175,493 | 199,266 |
Charge-offs | ||
Recoveries | ||
Provisions | 28,075 | (54,721) |
Ending balance | 203,568 | 144,545 |
Commercial Portfolio Segment [Member] | ||
Allowance for Loan Losses: | ||
Beginning balance | 2,376,306 | 1,909,121 |
Charge-offs | ||
Recoveries | ||
Provisions | (82,296) | 168,648 |
Ending balance | 2,294,010 | 2,077,769 |
Residential Mortgage [Member] | ||
Allowance for Loan Losses: | ||
Beginning balance | 924,784 | 925,077 |
Charge-offs | (2,035) | |
Recoveries | ||
Provisions | (2,777) | 127,083 |
Ending balance | 919,972 | 1,052,160 |
Consumer Portfolio Segment [Member] | ||
Allowance for Loan Losses: | ||
Beginning balance | 104,715 | 122,920 |
Charge-offs | (8,152) | |
Recoveries | 4,200 | 4,812 |
Provisions | (10,056) | (771) |
Ending balance | 98,859 | 118,809 |
Paycheck Protection Program [Member] | ||
Allowance for Loan Losses: | ||
Beginning balance | ||
Charge-offs | (10) | (6,479) |
Recoveries | 360 | 290 |
Provisions | (350) | 6,189 |
Ending balance |
The following tables present, b
The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated. (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for Loan Losses | ||||
Individually evaluated for impairment | $ 223,018 | $ 220,141 | ||
Collectively evaluated for impairment | 4,081,484 | 4,156,846 | ||
Total Allowance for Loan Losses | 4,304,502 | 4,376,987 | $ 4,296,165 | $ 4,185,694 |
Loans Receivable | ||||
Individually evaluated for impairment | 2,859,799 | 3,406,509 | ||
Collectively evaluated for impairment | 312,046,176 | 303,225,720 | ||
Total Loans Receivable | 314,905,975 | 306,632,229 | ||
Commercial Loan [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | 183,418 | 179,988 | ||
Collectively evaluated for impairment | 604,675 | 615,701 | ||
Total Allowance for Loan Losses | 788,093 | 795,689 | 902,882 | 1,029,310 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,349,365 | 1,463,477 | ||
Collectively evaluated for impairment | 46,011,380 | 44,340,957 | ||
Total Loans Receivable | 47,360,745 | 45,804,434 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 203,568 | 175,493 | ||
Total Allowance for Loan Losses | 203,568 | 175,493 | 144,545 | 199,266 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 14,750,474 | 12,054,095 | ||
Total Loans Receivable | 14,750,474 | 12,054,095 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 2,294,010 | 2,376,306 | ||
Total Allowance for Loan Losses | 2,294,010 | 2,376,306 | 2,077,769 | 1,909,121 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,221,076 | 1,653,121 | ||
Collectively evaluated for impairment | 166,746,376 | 164,065,957 | ||
Total Loans Receivable | 167,967,452 | 165,719,078 | ||
Residential Mortgage [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 919,972 | 924,784 | ||
Total Allowance for Loan Losses | 919,972 | 924,784 | 1,052,160 | 925,077 |
Loans Receivable | ||||
Individually evaluated for impairment | 249,758 | 249,758 | ||
Collectively evaluated for impairment | 76,462,499 | 71,057,730 | ||
Total Loans Receivable | 76,712,257 | 71,307,488 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | 39,600 | 40,153 | ||
Collectively evaluated for impairment | 59,259 | 64,562 | ||
Total Allowance for Loan Losses | 98,859 | 104,715 | 118,809 | 122,920 |
Loans Receivable | ||||
Individually evaluated for impairment | 39,600 | 40,153 | ||
Collectively evaluated for impairment | 3,637,922 | 3,728,378 | ||
Total Loans Receivable | 3,677,522 | 3,768,531 | ||
Paycheck Protection Program [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | ||||
Total Allowance for Loan Losses | ||||
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 4,437,525 | 7,978,603 | ||
Total Loans Receivable | $ 4,437,525 | $ 7,978,603 |
As of March 31, 2022 and Decemb
As of March 31, 2022 and December 31, 2021, loans individually evaluated and considered impaired are presented in the following table. (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | $ 1,646,639 | $ 2,999,286 |
Recorded investment with no related allowance recorded | 1,646,639 | 2,999,286 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance recorded | 1,213,160 | 407,223 |
Recorded investment with an allowance recorded | 1,213,160 | 407,223 |
Related allowance | 223,018 | 220,141 |
Unpaid Principal Balance | 2,859,799 | 3,406,509 |
Recorded Investment | 2,859,799 | 3,406,509 |
Related Allowance | 223,018 | 220,141 |
Commercial Loan [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | 175,805 | 1,096,407 |
Recorded investment with no related allowance recorded | 175,805 | 1,096,407 |
With an allowance recorded: | ||
Unpaid principal balance with an allowance recorded | 1,173,560 | 367,070 |
Recorded investment with an allowance recorded | 1,173,560 | 367,070 |
Related allowance | 183,418 | 179,988 |
Unpaid Principal Balance | 1,349,365 | 1,463,477 |
Recorded Investment | 1,349,365 | 1,463,477 |
Related Allowance | 183,418 | 179,988 |
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | 1,221,076 | 1,653,121 |
Recorded investment with no related allowance recorded | 1,221,076 | 1,653,121 |
With an allowance recorded: | ||
Unpaid Principal Balance | 1,221,076 | 1,653,121 |
Recorded Investment | 1,221,076 | 1,653,121 |
Residential Mortgage [Member] | ||
With no related allowance recorded: | ||
Unpaid principal balance with no related allowance recorded | 249,758 | 249,758 |
Recorded investment with no related allowance recorded | 249,758 | 249,758 |
With an allowance recorded: | ||
Unpaid Principal Balance | 249,758 | 249,758 |
Recorded Investment | 249,758 | 249,758 |
Consumer Portfolio Segment [Member] | ||
With an allowance recorded: | ||
Unpaid principal balance with an allowance recorded | 39,600 | 40,153 |
Recorded investment with an allowance recorded | 39,600 | 40,153 |
Related allowance | 39,600 | 40,153 |
Unpaid Principal Balance | 39,600 | 40,153 |
Recorded Investment | 39,600 | 40,153 |
Related Allowance | $ 39,600 | $ 40,153 |
The following table presents av
The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated. (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
With no related allowance recorded: | ||
Average recorded investment with no related allowance recorded | $ 1,657,770 | $ 7,295,641 |
Interest income recognized with no related allowance recorded | 13,043 | 79,066 |
With an allowance recorded: | ||
Average recorded investment with an allowance recorded | 1,226,540 | 514,270 |
Interest income recognized with an allowance recorded | 20,020 | 8,191 |
Total | ||
Average recorded investment | 2,884,310 | 7,809,911 |
Interest Income Recognized | 33,063 | 87,257 |
Commercial Loan [Member] | ||
With no related allowance recorded: | ||
Average recorded investment with no related allowance recorded | 181,347 | 1,563,106 |
Interest income recognized with no related allowance recorded | 2,720 | 25,815 |
With an allowance recorded: | ||
Average recorded investment with an allowance recorded | 1,186,718 | 472,422 |
Interest income recognized with an allowance recorded | 19,382 | 7,519 |
Total | ||
Average recorded investment | 1,368,065 | 2,035,528 |
Interest Income Recognized | 22,102 | 33,334 |
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Average recorded investment with no related allowance recorded | 1,226,665 | 5,482,702 |
Interest income recognized with no related allowance recorded | 7,706 | 49,760 |
Total | ||
Average recorded investment | 1,226,665 | 5,482,702 |
Interest Income Recognized | 7,706 | 49,760 |
Residential Mortgage [Member] | ||
With no related allowance recorded: | ||
Average recorded investment with no related allowance recorded | 249,758 | 249,833 |
Interest income recognized with no related allowance recorded | 2,617 | 3,491 |
Total | ||
Average recorded investment | 249,758 | 249,833 |
Interest Income Recognized | 2,617 | 3,491 |
Consumer Portfolio Segment [Member] | ||
With an allowance recorded: | ||
Average recorded investment with an allowance recorded | 39,822 | 41,848 |
Interest income recognized with an allowance recorded | 638 | 672 |
Total | ||
Average recorded investment | 39,822 | 41,848 |
Interest Income Recognized | $ 638 | $ 672 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease right of use asset | $ 13,889,805 | $ 14,041,843 | |
Operating lease liability | $ 13,889,805 | $ 14,041,843 | |
Renewal terms | 20 years | ||
Weighted average remaining lease term | 16 years 3 months 18 days | ||
Weighted average rate | 4.17% | ||
Total rental expense | $ 299,571 | $ 301,537 |
The table below shows lease exp
The table below shows lease expense components (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 299,571 | $ 301,537 |
Short-term lease expense | ||
Total lease expense | $ 299,571 | $ 301,537 |
The following table presents in
The following table presents information about assets measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 257,906,304 | $ 212,347,489 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 163,586,315 | 100,062,300 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 73,693,335 | 87,801,142 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,626,654 | 24,484,047 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 163,586,315 | 100,062,300 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 33,698,220 | 37,564,180 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 257,906,304 | 212,347,489 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 163,586,315 | 100,062,300 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 73,693,335 | 87,801,142 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,626,654 | 24,484,047 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 163,586,315 | 100,062,300 |
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 163,586,315 | 100,062,300 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 60,621,769 | 74,721,009 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 60,621,769 | 74,721,009 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 33,698,220 | 37,564,180 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 13,071,566 | 13,080,133 |
Fair Value, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 20,626,654 | $ 24,484,047 |
The following table reconciles
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 months ended March 31, 2022 and 2021: (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 24,484,047 | $ 5,683,930 |
Total gains or (losses) (realized/unrealized): | ||
Included in other comprehensive income | (1,444,393) | (78,054) |
Purchases, issuances, and settlements, net of maturities | (2,413,000) | (3,637,000) |
Ending balance | $ 20,626,654 | $ 1,968,876 |
The following tables present in
The following tables present information about certain assets measured at fair value on a nonrecurring basis as of March 31, 2022 and December 31, 2021: (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,470,833 | $ 1,902,879 |
Mortgage loans to be sold | 2,626,999 | 2,774,388 |
Total | 4,097,832 | 4,677,267 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Mortgage loans to be sold | ||
Total | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Mortgage loans to be sold | 2,626,999 | 2,774,388 |
Total | 2,626,999 | 2,774,388 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,470,833 | 1,902,879 |
Mortgage loans to be sold | ||
Total | $ 1,470,833 | $ 1,902,879 |
The following table provides in
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2022 and December 31, 2021: (Details) - Valuation, Market Approach [Member] - Measurement Input, Discount Rate [Member] | Mar. 31, 2022 | Dec. 31, 2021 |
Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 10.00% | 10.00% |
Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 20.00% | 20.00% |
The following tables present th
The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of March 31, 2022 and December 31, 2021, respectively. (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Investment securities available for sale | $ 257,906,304 | $ 212,347,489 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and due from banks | 7,946,158 | 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 61,420,171 | 128,971,429 |
Investment securities available for sale | 163,586,315 | 100,062,300 |
Mortgage loans to be sold | ||
Loans, net | ||
Accrued interest receivable | ||
Financial Liabilities: | ||
Demand deposits | ||
Time deposits | ||
Accrued interest payable | ||
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and due from banks | ||
Interest-bearing deposits at the Federal Reserve | ||
Investment securities available for sale | 73,693,335 | 87,801,142 |
Mortgage loans to be sold | 2,626,999 | 2,774,388 |
Loans, net | ||
Accrued interest receivable | 1,473,108 | 1,404,227 |
Financial Liabilities: | ||
Demand deposits | 582,678,608 | 587,903,356 |
Time deposits | 21,243,268 | 21,428,310 |
Accrued interest payable | 14,371 | 14,914 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and due from banks | ||
Interest-bearing deposits at the Federal Reserve | ||
Investment securities available for sale | 20,626,654 | 24,484,047 |
Mortgage loans to be sold | ||
Loans, net | 301,121,392 | 293,731,997 |
Accrued interest receivable | ||
Financial Liabilities: | ||
Demand deposits | ||
Time deposits | ||
Accrued interest payable | ||
Reported Value Measurement [Member] | ||
Financial Assets: | ||
Cash and due from banks | 7,946,158 | 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 61,420,171 | 128,971,429 |
Investment securities available for sale | 257,906,304 | 212,347,489 |
Mortgage loans to be sold | 2,626,999 | 2,774,388 |
Loans, net | 310,601,473 | 302,255,242 |
Accrued interest receivable | 1,473,108 | 1,404,227 |
Financial Liabilities: | ||
Demand deposits | 582,678,608 | 587,903,356 |
Time deposits | 21,092,872 | 21,288,220 |
Accrued interest payable | 14,371 | 14,914 |
Estimate of Fair Value Measurement [Member] | ||
Financial Assets: | ||
Cash and due from banks | 7,946,158 | 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 61,420,171 | 128,971,429 |
Investment securities available for sale | 257,906,304 | 212,347,489 |
Mortgage loans to be sold | 2,626,999 | 2,774,388 |
Loans, net | 301,121,392 | 293,731,997 |
Accrued interest receivable | 1,473,108 | 1,404,227 |
Financial Liabilities: | ||
Demand deposits | 582,678,608 | 587,903,356 |
Time deposits | 21,243,268 | 21,428,310 |
Accrued interest payable | $ 14,371 | $ 14,914 |
The following table is a summar
The following table is a summary of the reconciliation of weighted average shares outstanding: (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income | $ 1,464,106 | $ 1,810,075 |
Weighted average shares outstanding | 5,544,546 | 5,521,707 |
Effect of dilutive shares | 144,073 | 163,444 |
Weighted average shares outstanding - diluted | 5,688,619 | 5,685,151 |
Earnings per share - basic | $ 0.26 | $ 0.33 |
Earnings per share - diluted | $ 0.26 | $ 0.32 |