Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-27702 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 70,780,472 | ||
Entity Common Stock, Shares Outstanding | 5,552,351 | ||
Auditor Name | Elliott Davis, LLC | ||
Auditor Location | Greenville, South Carolina | ||
Auditor Firm ID | 149 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 14,772,564 | $ 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 12,999,135 | 128,971,429 |
Investment securities available for sale (amortized cost of $296,998,150 and $215,047,451 in 2021 and 2020, respectively) | 271,172,226 | 212,347,489 |
Mortgage loans to be sold | 866,594 | 2,774,388 |
Loans | 330,981,782 | 306,632,229 |
Less: Allowance for loan losses | (4,291,221) | (4,376,987) |
Net loans | 326,690,561 | 302,255,242 |
Premises, equipment and leasehold improvements, net | 3,988,607 | 3,782,936 |
Right of use asset | 13,433,692 | 14,041,843 |
Accrued interest receivable | 2,145,522 | 1,404,227 |
Other assets | 7,276,708 | 2,502,533 |
Total assets | 653,345,609 | 679,220,646 |
Deposits: | ||
Non-interest bearing demand | 223,117,903 | 255,783,644 |
Interest bearing demand | 195,143,514 | 165,335,038 |
Money market accounts | 100,014,125 | 98,113,942 |
Time deposits $250,000 and over | 5,303,509 | 7,417,864 |
Other time deposits | 11,266,099 | 13,870,356 |
Other savings deposits | 63,825,108 | 68,670,732 |
Total deposits | 598,670,258 | 609,191,576 |
Accrued interest payable and other liabilities | 2,430,272 | 2,069,594 |
Lease liability | 13,433,692 | 14,041,843 |
Total liabilities | 614,534,222 | 625,303,013 |
Shareholders’ equity | ||
Additional paid in capital | 48,028,689 | 47,745,285 |
Retained earnings | 14,002,571 | 11,122,710 |
Treasury stock: 299,974 shares as of December 31, 2022 and 2021 | (2,817,392) | (2,817,392) |
Accumulated other comprehensive loss, net of income taxes | (20,402,481) | (2,132,970) |
Total shareholders’ equity | 38,811,387 | 53,917,633 |
Total liabilities and shareholders’ equity | $ 653,345,609 | $ 679,220,646 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Amortized cost of investment securities available for sale | $ 296,998,150 | $ 215,047,451 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 12,000,000 | 12,000,000 |
Common stock, issued | 5,852,325 | 5,841,240 |
Common stock, outstanding | 5,552,351 | 5,541,266 |
Treasury stock, shares | 299,974 | 299,974 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and fee income | |||
Loans, including fees | $ 15,677,601 | $ 15,285,012 | $ 15,055,981 |
Taxable securities | 2,531,951 | 1,849,347 | 1,628,753 |
Tax-exempt securities | 584,907 | 313,443 | 370,998 |
Other | 404,024 | 103,309 | 184,024 |
Total interest and fee income | 19,198,483 | 17,551,111 | 17,239,756 |
Interest expense | |||
Deposits | 301,793 | 174,000 | 305,414 |
Total interest expense | 301,793 | 174,000 | 305,414 |
Net interest income | 18,896,690 | 17,377,111 | 16,934,342 |
Provision for loan losses | (75,000) | 120,000 | 240,000 |
Net interest income after provision for loan losses | 18,971,690 | 17,257,111 | 16,694,342 |
Other income | |||
Service charges and fees | 1,290,665 | 1,254,699 | 1,094,985 |
Mortgage banking income | 667,257 | 2,314,106 | 2,267,406 |
Gain on sales of securities, net | 64,782 | 266,944 | 10,002 |
Other non-interest income | 42,158 | 32,482 | 32,508 |
Total other income | 2,064,862 | 3,868,231 | 3,404,901 |
Other expense | |||
Salaries and employee benefits | 7,547,306 | 7,437,787 | 7,219,005 |
Net occupancy expense | 2,514,904 | 2,428,082 | 2,216,727 |
Data processing fees | 562,228 | 622,536 | 646,590 |
Professional expenses | 448,248 | 395,115 | 345,126 |
Other operating expenses | 1,331,354 | 1,425,454 | 1,245,485 |
Total other expense | 12,404,040 | 12,308,974 | 11,672,933 |
Income before income tax expense | 8,632,512 | 8,816,368 | 8,426,310 |
Income tax expense | 1,977,372 | 2,071,503 | 1,965,679 |
Net income | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Weighted average shares outstanding | |||
Basic | 5,550,078 | 5,531,518 | 5,526,948 |
Diluted | 5,644,698 | 5,680,482 | 5,678,543 |
Basic income per common share | $ 1.20 | $ 1.22 | $ 1.17 |
Diluted income per common share | $ 1.18 | $ 1.19 | $ 1.14 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net income | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Other comprehensive (loss) income | |||
Unrealized (loss) gain on securities arising during the period | (23,061,180) | (4,546,773) | 1,512,600 |
Reclassification adjustment for securities gains realized in net income | (64,782) | (266,944) | (10,002) |
Other comprehensive (loss) income before tax | (23,125,962) | (4,813,717) | 1,502,598 |
Income tax effect related to items of other comprehensive (loss) income before tax | 4,856,451 | 1,010,881 | (315,546) |
Other comprehensive (loss) income after tax | (18,269,511) | (3,802,836) | 1,187,052 |
Total comprehensive (loss) income | $ (11,614,371) | $ 2,942,029 | $ 7,647,683 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 47,131,034 | $ 5,879,409 | $ (2,325,225) | $ 482,814 | $ 51,168,032 | |
Beginning balance (in shares) at Dec. 31, 2019 | 5,530,001 | |||||
Net income | 6,460,631 | 6,460,631 | ||||
Other comprehensive gain (loss) | 1,187,052 | 1,187,052 | ||||
Stock option exercises, net of surrenders | 180,849 | (63,805) | $ 117,044 | |||
Stock option exercises, net of surrenders (in shares) | 15,535 | 19,298 | ||||
Stock-based compensation expense | 92,986 | $ 92,986 | ||||
Repurchase of common shares (in shares) | (25,067) | |||||
Repurchase of common shares | (398,868) | (398,868) | ||||
Cash dividends | (3,646,521) | (3,646,521) | ||||
Ending balance, value at Dec. 31, 2020 | 47,404,869 | 8,693,519 | (2,787,898) | 1,669,866 | 54,980,356 | |
Ending balance (in shares) at Dec. 31, 2020 | 5,520,469 | |||||
Net income | 6,744,865 | 6,744,865 | ||||
Other comprehensive gain (loss) | (3,802,836) | (3,802,836) | ||||
Stock option exercises, net of surrenders | 237,383 | (29,494) | $ 207,889 | |||
Stock option exercises, net of surrenders (in shares) | 20,797 | 22,305 | ||||
Stock-based compensation expense | 103,033 | $ 103,033 | ||||
Cash dividends | (4,315,674) | (4,315,674) | ||||
Ending balance, value at Dec. 31, 2021 | 47,745,285 | 11,122,710 | (2,817,392) | (2,132,970) | $ 53,917,633 | |
Ending balance (in shares) at Dec. 31, 2021 | 5,541,266 | 5,541,266 | ||||
Net income | 6,655,140 | $ 6,655,140 | ||||
Other comprehensive gain (loss) | (18,269,511) | (18,269,511) | ||||
Stock option exercises, net of surrenders | 161,731 | $ 161,731 | ||||
Stock option exercises, net of surrenders (in shares) | 11,085 | 11,085 | ||||
Stock-based compensation expense | 121,673 | $ 121,673 | ||||
Cash dividends | (3,775,279) | (3,775,279) | ||||
Ending balance, value at Dec. 31, 2022 | $ 48,028,689 | $ 14,002,571 | $ (2,817,392) | $ (20,402,481) | $ 38,811,387 | |
Ending balance (in shares) at Dec. 31, 2022 | 5,552,351 | 5,552,351 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (per share) | $ 0.68 | $ 0.78 | $ 0.66 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 359,251 | 412,866 | 421,040 |
Gain on sale of investment securities | (64,782) | (266,944) | (10,002) |
Provision for loan losses | (75,000) | 120,000 | 240,000 |
Stock-based compensation expense | 121,673 | 103,033 | 92,986 |
Deferred income taxes | (171,800) | (46,751) | (422,345) |
Net amortization of unearned discounts on investment securities available for sale | 869,690 | 592,357 | 362,159 |
Origination of mortgage loans held for sale | (60,017,637) | (163,176,146) | (181,781,058) |
Proceeds from sale of mortgage loans held for sale | 61,925,431 | 173,367,491 | 173,877,723 |
(Increase) decrease in accrued interest receivable and other assets | (487,217) | 133,276 | (38,312) |
Increase (decrease) in accrued interest payable and other liabilities | 358,795 | (520,403) | 1,089,165 |
Net cash provided by operating activities | 9,473,544 | 17,463,644 | 291,987 |
Cash flows from investing activities: | |||
Proceeds from calls and maturities of investment securities available for sale | 3,539,000 | 36,967,000 | 23,491,000 |
Proceeds from sale of investment securities available for sale | 18,525,780 | 15,572,500 | 11,550,000 |
Purchase of investment securities available for sale | (104,820,389) | (135,206,301) | (68,260,421) |
Net (increase) decrease in loans | (24,360,319) | 14,241,737 | (46,788,177) |
Purchase of premises, equipment, and leasehold improvements, net | (564,922) | (142,269) | (184,138) |
Net cash used in investing activities | (107,680,850) | (68,567,333) | (80,191,736) |
Cash flows from financing activities: | |||
Net (decrease) increase in deposit accounts | (10,521,318) | 146,993,945 | 83,005,976 |
Dividends paid | (3,773,396) | (4,312,138) | (3,592,841) |
Repurchase of common shares | (398,868) | ||
Stock options exercised | 161,731 | 207,889 | 117,044 |
Net cash (used in) provided by financing activities | (14,132,983) | 142,889,696 | 79,131,311 |
Net (decrease) increase in cash and cash equivalents | (112,340,289) | 91,786,007 | (768,438) |
Cash and cash equivalents at the beginning of the period | 140,111,988 | 48,325,981 | 49,094,419 |
Cash and cash equivalents at the end of the period | 27,771,699 | 140,111,988 | 48,325,981 |
Cash paid during the period for: | |||
Interest | 275,700 | 179,793 | 323,455 |
Income taxes | 1,582,810 | 2,845,420 | 814,052 |
Supplemental disclosures for non-cash investing and financing activity: | |||
Change in unrealized (loss) gain on securities available for sale, net of income taxes | (18,269,511) | (3,082,836) | 1,187,052 |
Change in dividends payable | 1,883 | 3,536 | 53,680 |
Right of use assets obtained in exchange for lease obligation | 1,825,793 | ||
Change in right of use assets and lease liabilities | $ 608,151 | $ 514,101 | $ 479,066 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION | 1. 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our accounting and reporting policies conform, in all material respects, to U.S. generally accepted accounting principles (“GAAP”), and to general practices within the banking industry. The following summarizes the more significant of these policies and practices. 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 reporting purposes. Accounting Estimates and Assumptions The 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. 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 as of 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 as of 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. Cash and Cash Equivalents Cash and cash equivalents include working cash funds, due from banks, interest-bearing deposits at the Federal Reserve, items in process of collection and federal funds sold. All cash equivalents are readily convertible to cash and have maturities of less than 90 days. Depository institutions are required to maintain reserve and clearing balances at the Federal Reserve Bank. Vault cash satisfied our daily reserve requirement for the years ended December 31, 2022 and 2021. Interest-bearing Deposits at the Federal Reserve Interest-bearing deposits at the Federal Reserve mature daily and are carried at cost. Investment Securities We classify investments into three categories: (1) Held to Maturity - debt securities that we have the positive intent and ability to hold to maturity, which are reported at amortized cost, adjusted for the amortization of any related premiums or the accretion of any related discounts into interest income using a methodology which approximates a level yield of interest over the estimated remaining period until maturity; (2) Trading - debt securities that are bought and held principally for the purpose of selling them in the near term, which are reported at fair value, with unrealized gains and losses included in earnings; and (3) Available for Sale - debt securities that may be sold under certain conditions, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity, net of income taxes. Unrealized losses on securities due to fluctuations in fair value are recognized when it is determined that an other than temporary decline in value has occurred. Realized gains or losses on the sale of investments are recognized on a specific identification, trade date basis. All securities were classified as available for sale for 2022 and 2021. Mortgage Loans to be Sold We originate fixed and variable rate residential mortgage loans on a service release basis in the secondary market. Loans closed but not yet settled with an investor are carried in our loans to be sold portfolio. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with our customers. Therefore, these loans present very little market risk. We usually deliver to, and receive funding from, the investor within 30 to 60 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. We are not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. Because of the short-term nature of these derivative contracts, the fair value of the mortgage loans to be sold in most cases is materially the same as the value of the loan amount at its origination . Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations as a component of mortgage banking income. Gains or losses on sales of loans are recognized when control over these assets are surrendered and are included in mortgage banking income in the consolidated statements of income. Loans and Allowance for Loan Losses Loans are carried at principal amounts outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the weighted average life of the loan as an adjustment to yield. Interest income on all loans is recorded on an accrual basis. The accrual of interest and the amortization of net loan fees are generally discontinued on loans that 1) are maintained on a cash basis because of deterioration in the financial condition of the borrower; 2) the payment of full principal is not expected; or 3) the principal or interest has been in default for a period of 90 days or more. We define past due loans based on contractual payment and maturity dates. The accrual of interest is generally discontinued on loans that become 90 days past due as to principal or interest. The accrual of interest on some loans may continue even though they are 90 days past due if the loans are well secured or in the process of collection and management deems it appropriate. If non-accrual loans decrease their past due status to less than 30 days for a period of six to nine months, they are reviewed individually by management to determine if they should be returned to accrual status. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to interest income, to the extent that any interest has been foregone. Further cash receipts are recorded as recoveries of any amounts previously charged off. When this doubt does not exist, cash receipts are applied under the contractual terms of the loan agreement first to interest income and then to principal. We account for impaired loans by requiring that all loans (greater than $ 50,000 Additional accounting guidance allows us to use existing methods for recognizing interest income on an impaired loan. The guidance also requires additional disclosures about how we estimate interest income related to our impaired loans. A loan is also considered impaired if its terms are modified in a troubled debt restructuring (“TDR”). For this type of impaired loan, cash receipts are typically applied to principal and interest receivable in accordance with the terms of the restructured loan agreement. Interest income is recognized on these loans using the accrual method of accounting, provided they are performing in accordance with their restructured terms. The allowance for loan losses (the “allowance”) is our estimate of credit losses inherent in the loan portfolio. The allowance is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when we believe the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance is evaluated on a regular basis and is based upon our periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. We believe that the allowance is adequate to absorb inherent losses in the loan portfolio; however, there can be no assurance that loan losses in future periods will not exceed the current allowance amount or that future increases in the allowance will not be required. No assurance can be given that our ongoing evaluation of the loan portfolio, in light of changing economic conditions and other relevant circumstances, will not require significant future additions to the allowance, thus adversely affecting our operating results. The allowance is also subject to examination by regulatory agencies, which may consider factors such as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions and other adequacy tests. In addition, such regulatory agencies could require us to adjust our allowance based on information available at the time of the examination. The methodology used to determine the reserve for unfunded lending commitments, which is included in other liabilities, is inherently similar to the methodology used to determine the allowance adjusted for factors specific to binding commitments, including the probability of funding and historical loss ratio. Concentration of Credit Risk Our primary market consists of the counties of Berkeley, Charleston and Dorchester, South Carolina. As of December 31, 2022, the majority of the total loan portfolio, as well as a substantial portion of the commercial and real estate loan portfolios, were to borrowers within this region. No other areas of significant concentration of credit risk have been identified. Premises, Equipment and Leasehold Improvements and Depreciation Land is carried at cost. Buildings and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes over the estimated useful lives of the assets ranging from 40 3 15 Leases In accordance with ASU 2016-02, the Company determines if a contractual arrangement is a lease at inception. Operating leases are included in the operating right of use (“ROU”) assets and current operating lease liabilities on the Company’s consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Currently, the Company does not have any finance leases. Operating lease ROU assets and lease liabilities are recognized at the commencement of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed payments and index-based variable lease payments. The Company estimates the incremental borrowing rate, based on information available at the commencement of the lease, as most of the Company’s leases do not include an implicit rate. Revenue Recognition : In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Service Fees on Deposit Accounts The Bank earns fees from its deposit customers for account maintenance, transaction-based and overdraft services. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposits accounts are charged to deposit customers for specific services provided to the customer, such as non-sufficient funds fees, overdraft fees, and wire fees. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. ATM and Check Card Fee Income Check card fee income represents fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the Mastercard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the card. Certain expenses directly associated with the debit card are recorded on a net basis with the fee income. Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Net deferred tax assets are included in other assets in the consolidated balance sheet. Accounting standards require the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. These standards also prescribe a recognition threshold and measurement of a tax position taken or expected to be taken in an enterprise’s tax return. We believe that we had no uncertain tax positions for the years ended December 31, 2022 and 2021. The income tax effects of unrealized gains and losses on investment securities available for sale are released from accumulated other comprehensive income at the time such securities are sold or impaired. Stock-Based Compensation Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the expected term of the stock options and is adjusted for forfeitures as they occur. Income Per Common Share Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. Earnings per share are restated for all stock splits and stock dividends, if any, through the date of issuance of the consolidated financial statements. Segment Information The Company operates and manages itself within one Interest Rate Lock Commitments and Forward Sale Contracts Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free-standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitments before the loan is funded. In order to hedge the change in interest rates resulting from commitments to fund the loans, we enter into forward commitments for the future delivery of mortgage loans when the interest rate is locked. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in income when they occur. As a result of the short-term nature of mortgage loans held for sale (derivative contract), our derivative instruments were considered to be immaterial as of December 31, 2022 and 2021. We had no embedded derivative instruments requiring hedge accounting treatment at December 31, 2022 and 2021. We do not currently engage in hedging activities. 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 is finalizing its evaluation of the adoption of ASU 2016-13 January 1, 2023 25,000 125,000 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 ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In November 2021, the FASB added a topic to the Accounting Standards Codification, Government Assistance, to require certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. The amendment became effective January 1, 2022 and did not have a material effect on the consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE FOR SALE | 3. INVESTMENT SECURITIES AVAILABLE FOR SALE The amortized cost and fair value of investment securities available for sale are summarized as follows. December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 180,298,301 $ — $ (12,110,986 ) $ 168,187,315 Government-Sponsored Enterprises 67,384,808 — (10,310,084 ) 57,074,724 Municipal Securities 49,315,041 2,510 (3,407,364 ) 45,910,187 Total $ 296,998,150 $ 2,510 $ (25,828,434 ) $ 271,172,226 December 31, 2021 Amortized Cost 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 at December 31, 2022 and 2021, by contractual maturity are in the following table. December 31, 2022 December 31, 2021 Amortized Estimated Fair Value Amortized Estimated Fair Value Due in one year or less $ 42,722,655 $ 41,698,011 $ 12,756,176 $ 12,859,086 Due in one year to five years 190,569,869 176,217,530 116,602,790 115,896,465 Due in five years to ten years 53,995,700 45,386,818 76,531,464 74,575,862 Due in ten years and over 9,709,926 7,869,867 9,157,021 9,016,076 Total $ 296,998,150 $ 271,172,226 $ 215,047,451 $ 212,347,489 Securities pledged to secure deposits at December 31, 2022 and 2021, had a carrying amount of $ 30,103,249 33,292,124 The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021. December 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 7 $ 38,181,255 $ (1,790,134 ) 18 $ 130,006,060 $ (10,320,852 ) 25 $ 168,187,315 $ (12,110,986 ) Government-Sponsored Enterprises 2 6,212,285 (84,170 ) 9 50,862,439 (10,225,914 ) 11 57,074,724 (10,310,084 ) Municipal Securities 46 26,068,218 (932,565 ) 31 14,859,459 (2,474,799 ) 77 40,927,677 (3,407,364 ) Total 55 $ 70,461,758 $ (2,806,869 ) 58 $ 195,727,958 $ (23,021,565 ) 113 $ 266,189,716 $ (25,828,434 ) 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 ) Municipal 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 table below shows the proceeds received from sales of securities available for sale and gross realized gains and losses. For the Year Ended December 31, 2022 2021 2020 Gross proceeds $ 18,525,780 $ 15,572,500 $ 11,550,000 Gross realized gains 64,782 266,944 10,002 The tax provision related to these gains was $ 13,604 56,058 2,100 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 4. LOANS AND ALLOWANCE FOR LOAN LOSSES Major classifications of loans 159,434 488,481 December 31, 2022 December 31, 2021 Commercial $ 45,072,059 $ 45,804,434 Commercial real estate: Construction 17,524,260 12,054,095 Other 172,897,387 165,719,078 Consumer: Real estate 91,636,538 71,307,488 Other 3,851,538 3,768,531 Paycheck protection program — 7,978,603 Loans 330,981,782 306,632,229 Allowance for loan losses (4,291,221 ) (4,376,987 ) Loans, net $ 326,690,561 $ 302,255,242 We had $ 93.1 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 1.00 two years 100 1 5 310 325 480 55.3 100 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. 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 risks by category and internally assigned grades at December 31, 2022 and 2021. “Pass” includes loans internally graded as excellent, good and satisfactory. December 31, 2022 Commercial Commerical Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 42,724,289 $ 17,524,260 $ 167,518,577 $ 86,183,899 $ 3,597,886 $ — $ 317,548,911 Watch 976,966 — 3,223,532 4,928,437 208,417 — 9,337,352 OAEM 94,803 — 968,611 274,445 7,345 — 1,345,204 Substandard 1,276,001 — 1,186,667 249,757 37,890 — 2,750,315 Doubtful — — — — — — — Loss — — — — — — — Total $ 45,072,059 $ 17,524,260 $ 172,897,387 $ 91,636,538 $ 3,851,538 $ — $ 330,981,782 December 31, 2021 Commercial Commerical 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. December 31, 2022 30-59 Days 60-89 Days Greater than Total Current Total Loans Receivable Recorded Investment ≥ Commercial $ 16,451 $ 178,975 $ — $ 195,426 $ 44,876,633 $ 45,072,059 $ — Commercial Real Estate Construction — — — — 17,524,260 17,524,260 — Commercial Real Estate Other 45,425 — 631,453 676,878 172,220,509 172,897,387 — Consumer Real Estate 274,445 — — 274,445 91,362,093 91,636,538 — Consumer Other — — — — 3,851,538 3,851,538 — Paycheck Protection Program — — — — — — Total $ 336,321 $ 178,975 $ 631,453 $ 1,146,749 $ 329,835,033 $ 330,981,782 $ — 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 past due 90 days or more and still accruing interest at December 31, 2022 and 2021. The following table summarizes the balances of non-accrual loans. Loans Receivable on Non-Accrual December 31, 2022 December 31, 2021 Commercial $ — $ 178,975 Commercial Real Estate Construction — — Commercial Real Estate Other 631,453 625,953 Consumer Real Estate — — Consumer Other — 9,686 Paycheck Protection Program — — Total $ 631,453 $ 814,614 The following tables set forth the changes in the allowance and an allocation of the allowance by class at December 31, 2022, 2021, and 2020. December 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 (40,600 ) — — (2,034 ) — (10 ) (42,644 ) Recoveries 800 — 18,000 — 12,224 854 31,878 Provisions (20,130 ) 55,132 (177,822 ) 92,027 (23,363 ) (844 ) (75,000 ) Ending Balance $ 735,759 $ 230,625 $ 2,216,484 $ 1,014,777 $ 93,576 $ — $ 4,291,221 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 Beginning Balance $ 1,029,310 $ 199,266 $ 1,909,121 $ 925,077 $ 122,920 $ — $ 4,185,694 Charge-offs — — — — (11,440 ) (9,550 ) (20,990 ) Recoveries 21,329 — — 47,711 22,367 876 92,283 Provisions (254,950 ) (23,773 ) 467,185 (48,004 ) (29,132 ) 8,674 120,000 Ending Balance $ 795,689 $ 175,493 $ 2,376,306 $ 924,784 $ 104,715 $ — $ 4,376,987 December 31, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Beginning Balance $ 1,429,917 $ 109,235 $ 1,270,445 $ 496,221 $ 697,940 $ — $ 4,003,758 Charge-offs (171,646 ) — — — (116,001 ) (2,650 ) (290,297 ) Recoveries 88,811 — 99,801 — 43,599 22 232,233 Provisions (317,772 ) 90,031 538,875 428,856 (502,618 ) 2,628 240,000 Ending Balance $ 1,029,310 $ 199,266 $ 1,909,121 $ 925,077 $ 122,920 $ — $ 4,185,694 The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. December 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 $ 179,230 $ — $ — $ — $ 37,889 $ — $ 217,119 Collectively evaluated for impairment 556,529 230,625 2,216,484 1,014,777 55,687 — 4,074,102 Total Allowance for Loan Losses 735,759 230,625 2,216,484 1,014,777 93,576 — 4,291,221 Loans Receivable Individually evaluated for impairment 1,276,001 — 1,202,412 249,758 37,889 — 2,766,060 Collectively evaluated for impairment 43,796,058 17,524,260 171,694,975 91,386,780 3,813,649 — 328,215,722 Total Loans Receivable $ 45,072,059 $ 17,524,260 $ 172,897,387 $ 91,636,538 $ 3,851,538 $ — $ 330,981,782 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 December 31, 2022 and 2021, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table. Impaired and Restructured Loans As of December 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 $ 317,553 $ 317,553 $ — $ 1,096,407 $ 1,096,407 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,202,412 1,202,412 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other — — — — — — Paycheck Protection Program — — — — — — Total 1,769,723 1,769,723 — 2,999,286 2,999,286 — With an allowance recorded: Commercial 958,448 958,448 179,230 367,070 367,070 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other — — — — — — Consumer Real Estate — — — — — — Consumer Other 37,889 37,889 37,889 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total 996,337 996,337 217,119 407,223 407,223 220,141 Total Commercial 1,276,001 1,276,001 179,230 1,463,477 1,463,477 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,202,412 1,202,412 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other 37,889 37,889 37,889 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total $ 2,766,060 $ 2,766,060 $ 217,119 $ 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. For the year ended December 31, 2022 2021 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 344,592 $ 21,445 $ 1,142,667 $ 68,602 $ 1,866,590 $ 102,636 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,231,015 30,689 1,645,375 68,031 4,849,474 218,372 Consumer Real Estate 249,758 14,019 249,777 10,615 249,813 11,580 Consumer Other — — — — — — Paycheck Protection Program — — — — — — Total 1,825,365 66,153 3,037,819 147,248 6,965,877 332,588 With an allowance recorded: Commercial 981,575 63,267 378,499 22,130 578,399 37,663 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other — — — — 337,304 — Consumer Real Estate — — — — 36,483 (116 ) Consumer Other 38,962 2,532 41,133 2,674 42,089 2,743 Paycheck Protection Program — — — — — — Total 1,020,537 65,799 419,632 24,804 994,275 40,290 Total Commercial 1,326,167 84,712 1,521,166 90,732 2,444,989 140,299 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,231,015 30,689 1,645,375 68,031 5,186,778 218,372 Consumer Real Estate 249,758 14,019 249,777 10,615 286,296 11,464 Consumer Other 38,962 2,532 41,133 2,674 42,089 2,743 Paycheck Protection Program — — — — — — $ 2,845,902 $ 131,952 $ 3,457,451 $ 172,052 $ 7,960,152 $ 372,878 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 December 31, 2022 and December 31, 2021, there were five TDRs with a balance of $ 1 million. These TDRs were granted extended payment terms with no principal reduction. The structure of two of the loans changed to interest only. One 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 9 4 4 2 1 Two 0.5 75 41 9.9 The 0.1 |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | 5. CONCENTRATIONS OF CREDIT RISK We grant short to intermediate term commercial and consumer loans to customers throughout our primary market area of Charleston, Berkeley and Dorchester counties of South Carolina. Our primary market area is heavily dependent on tourism, medical, and legal services. Although we have a diversified loan portfolio, a substantial portion of our debtors’ ability to honor their contracts is dependent upon the stability of the economic environment in their primary market. The majority of the loan portfolio is located in our immediate market area with a concentration in real estate related activities. Our loans were concentrated in the following categories. December 31, 2022 December 31, 2021 Commercial 13.62 % 14.94 % Commercial Real Estate Construction 5.29 % 3.93 % Commercial Real Estate Other 52.24 % 54.04 % Consumer Real Estate 27.69 % 23.26 % Consumer Other 1.16 % 1.23 % Paycheck Protection Program — % 2.60 % Total 100.00 % 100.00 % |
PREMISES, EQUIPMENT AND LEASEHO
PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 6. PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Premises, equipment and leasehold improvements are summarized in the table below. December 31, 2022 2021 Bank buildings $ 1,861,237 $ 1,861,237 Land 838,075 838,075 Leasehold purchases 30,000 30,000 Leasehold improvements 2,629,441 2,595,825 Construction in progress 535,434 31,654 Equipment 4,273,339 4,241,305 Premises, equipment and leasehold improvements, gross 10,167,526 9,598,096 Accumulated depreciation (6,178,919 ) (5,815,160 ) Total $ 3,988,607 $ 3,782,936 Depreciation on our bank premises and equipment charged to operating expense totaled $ 359,251 412,866 421,040 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
LEASES | 7. LEASES As of December 31, 2022 and 2021, the Company had operating right of use (“ROU”) assets of $ 13.4 14 13.4 14 20 As of December 31, 2022, the weighted average remaining lease term is 15.69 4.08 The exercise of renewal options is based on the sole judgement of management and what they consider to be reasonably certain. Based on the market areas, past practices, and contract terms of all leases, the Bank assumed all renewal options will be exercised. Minimum rental commitments for these leases as of December 31, 2022 are presented in the table below. 2023 $ 1,182,746 2024 1,182,746 2025 1,182,746 2026 1,182,746 2027 1,182,746 2028 and thereafter 12,309,253 Total undiscounted lease payments $ 18,222,983 Less: effect of discounting (4,789,291 ) Present value of estimated lease payments $ 13,433,692 The table below shows lease expense components for the years ended December 31, 2022 and 2021. December 31, Lease Expense Components: 2022 2021 Operating lease expense $ 1,192,292 $ 1,139,393 Short-term lease expense — — Total lease expense $ 1,192,292 $ 1,139,393 Total rental expense was $ 1,192,292 1,139,393 972,815 As of December 31, 2022, we did not maintain any finance leases and we determined that the number and dollar amount of equipment leases was immaterial. As of December 31, 2022, we have no additional operating leases that have not yet commenced. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
Deposits: | |
DEPOSITS | 8. DEPOSITS As of December 31, 2022 and 2021, time deposits of $250,000 or more totaled approximately $ 5,303,509 7,417,864 The scheduled maturities of certificates of deposit as of December 31, 2022 are presented in the table below: 2023 $ 14,820,344 2024 581,665 2025 34,427 2026 780,208 2027 and thereafter 352,964 $ 16,569,608 As of December 31, 2022 and 2021, deposits with a deficit balance of $ 80,524 28,549 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | 9. SHORT-TERM BORROWINGS At December 31, 2022 and 2021, we had no outstanding federal funds purchased. We have a Borrower-In-Custody arrangement with the Federal Reserve. This arrangement permits the Company to retain possession of loans pledged as collateral to secure advances from the Federal Reserve Discount Window. Under this agreement, we may borrow up to $ 78.3 At December 31, 2022 and 2021, the Bank had unused short-term lines of credit totaling approximately $ 41.0 41.0 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES Total income taxes for the years ended December 31, 2022, 2021 and 2020 are presented in the table below. For the year ended December 31, 2022 2021 2020 Income tax expense $ 1,977,372 $ 2,071,503 $ 1,965,679 Unrealized gains (losses) on securities available for sale presented in accumulated other comprehensive income (loss) (4,856,451 ) (1,010,881 ) 315,546 Total $ (2,879,079 ) $ 1,060,622 $ 2,281,225 Income tax expense was as follows: For the year ended December 31, 2022 2021 2020 Current income taxes Federal $ 1,837,678 $ 1,796,283 $ 1,543,334 State 311,494 321,971 — Total current tax expense 2,149,172 2,118,254 1,543,334 Deferred income tax (benefit) expense (171,800 ) (46,751 ) 422,345 Total income tax expense $ 1,977,372 $ 2,071,503 $ 1,965,679 The differences between actual income tax expense and the amounts computed by applying the U.S. federal income tax rate of 21% For the year ended December 31, 2022 2021 2020 Computed “expected” tax expense $ 1,812,828 $ 1,851,433 $ 1,769,525 Increase (reduction) in income taxes resulting from: Stock based compensation 24,901 21,637 19,527 Valuation allowance (9,111 ) 7,658 8,083 Other 22,389 7,477 7,259 State income tax, net of federal benefit 246,080 248,887 238,729 Tax exempt interest income (119,715 ) (65,589 ) (77,444 ) Total income tax expense $ 1,977,372 $ 2,071,503 $ 1,965,679 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below. As of December 31, 2022 2021 Deferred tax assets: Allowance for loan losses $ 901,156 $ 905,365 Unrealized loss on securities available for sale 5,423,444 — Deferred loan fees 33,481 102,581 Pass through income 188,401 26,525 State net operating loss carryforward 88,229 97,655 Nonaccrual interest 36,879 29,246 Other 11,421 9,432 Total gross deferred tax assets 6,683,011 1,170,804 Valuation allowance (88,544 ) (97,655 ) Total gross deferred tax assets, net of valuation allowance 6,594,467 1,073,149 Deferred tax liabilities: Fixed assets, principally due to differences in depreciation (289,935 ) (338,716 ) Unrealized gain on securities available for sale — (1,360,199 ) State credit carryforward — (5,672 ) Prepaid expenses (567 ) (29,869 ) Other (59,337 ) (58,619 ) Total gross deferred tax liabilities (349,839 ) (1,793,075 ) Net deferred tax asset (liability) $ 6,244,628 $ (719,926 ) There was a $ 88,544 97,655 The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions in accordance with applicable regulations. Tax returns for 2019 and subsequent years are subject to examination by taxing authorities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 11. COMMITMENTS AND CONTINGENCIES We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit, interest rate, and liquidity risk. Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is essentially the same as that involved in extending loan facilities to customers. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. If deemed necessary, the amount of collateral obtained upon extension of credit is based on our credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, negotiable instruments, inventory, property, plant and equipment, and real estate. Commitments to extend credit, including unused lines of credit, amounted to $ 145,392,792 117,450,893 Standby letters of credit represent our obligation to a third-party contingent upon the failure by our customer to perform under the terms of an underlying contract with the third party or obligates us to guarantee or stand as surety for the benefit of the third party. The underlying contract may entail either financial or nonfinancial obligations and may involve such things as the shipment of goods, performance of a contract, or repayment of an obligation. Under the terms of a standby letter, generally drafts will be drawn only when the underlying event fails to occur as intended. We can seek recovery of the amounts paid from the borrower. Commitments under standby letters of credit are usually for one year or less. At December 31, 2022 and 2021, we have recorded no liability for the current carrying amount of the obligation to perform as a guarantor; as such amounts are not considered material. The maximum potential amount of undiscounted future payments related to standby letters of credit at December 31, 2022 and 2021 was $ 2,518,771 648,717 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS In the opinion of management, loans to our Executive Officers and Directors are made on substantially the same terms, including interest rates and collateral, as those terms prevailing at the time for comparable loans with persons not related to the lender that do not involve more than the normal risk of collectability. There were no past due loans to our Executive Officers and Directors as of December 31, 2022 and 2021. The table below summarizes related party loans. December 31, 2022 December 31, 2021 Balance at beginning of the year $ 5,513,146 $ 5,970,014 New loans or advances 806,053 3,693,836 Repayments (2,134,441 ) (4,150,704 ) Balance at the end of the year $ 4,184,758 $ 5,513,146 At December 31, 2022 and 2021, total deposits held by related parties were $ 7,426,656 11,405,076 |
OTHER EXPENSE
OTHER EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE | 13. OTHER EXPENSE The table below summarizes the components of other operating expense. For the year ended December 31, 2022 2021 2020 Telephone and postage $ 205,296 $ 233,667 $ 219,065 State and FDIC insurance and fees 258,541 212,284 95,353 Supplies 61,551 63,850 74,472 Courier service 48,475 44,825 48,048 Insurance 55,178 56,748 53,000 Advertising and business development 11,480 8,114 9,045 Other 690,833 805,966 746,502 Total other operating expenses $ 1,331,354 $ 1,425,454 $ 1,245,485 |
STOCK INCENTIVE PLANS
STOCK INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK INCENTIVE PLANS | 14. STOCK INCENTIVE PLANS We have two 300,000 363,000 two 10 300,000 20 20 20 We also have a stock incentive plan to provide equity incentive compensation to the Company’s eligible independent directors. The plan was approved by the shareholders in 2021 and has 150,000 20 20 Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of our common stock. The expected term of the options granted shall not exceed ten years from the date of grant (the amount of time options granted are expected to be outstanding). The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of options granted was determined using the following weighted-average assumptions as of grant date: 2022 2021 2020 Risk free interest rate 2.75 % 1.46 % 0.63 % Expected life (in years) 5 5.99 7.50 Expected stock price volatility 35.30 % 34.18 % 32.90 % Dividend yield 4.15 % 4.00 % 4.26 % The following table presents a summary of the activity under the 2010, 2020 and 2021 Stock Incentive Plans for the years ended December 31: 2022 2021 2020 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, January 1 273,747 $ 17.50 202,344 $ 14.89 86,097 $ 12.92 Granted 5,000 17.10 115,750 20.15 145,750 15.31 Exercised (11,085 ) 14.58 (22,305 ) 10.64 (19,298 ) 9.39 Forfeited (13,250 ) 18.68 (22,042 ) 15.07 (10,205 ) 15.19 Outstanding, December 31 254,412 $ 17.56 273,747 $ 17.50 202,344 $ 14.89 Exercisable at year end 20,626 $ 17.76 7,804 $ 12.17 21,113 $ 9.77 The following table presents information pertaining to options outstanding at December 31, 2022. Exercise Price Number of Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price of Options Outstanding Intrinsic Value of Options Outstanding Number of Options Exercisable Weighted Average Exercise Price of Options Exercisable Intrinsic Value of Options Exercisable $ 12.26 3,508 1.58 $ 12.26 $ 43,008 2,806 $ 12.26 $ 13,038 $ 12.40 969 1.00 $ 12.40 $ 12,016 969 $ 12.40 $ 4,366 $ 13.05 7,260 2.33 $ 13.05 $ 94,743 4,356 $ 13.05 $ 16,796 $ 15.21 106,250 7.33 $ 15.21 $ 1,616,063 — $ 15.21 $ — $ 16.73 10,000 7.33 $ 16.73 $ 167,300 — $ 16.73 $ — $ 17.10 5,000 9.42 $ 17.10 $ 85,500 — $ 16.73 $ — $ 18.23 28,950 7.33 $ 18.23 $ 527,759 — $ 18.23 $ — $ 19.82 7,225 7.33 $ 19.82 $ 143,200 495 $ 19.82 $ — $ 20.04 20,250 8.59 $ 20.04 $ 405,810 — $ 20.04 $ — $ 21.10 65,000 8.33 $ 21.10 $ 1,371,500 12,000 $ 21.10 $ — 254,412 7.48 $ 17.56 $ 4,466,899 20,626 $ 17.76 $ 34,200 The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $ 161,740 208,259 139,837 We recognized compensation cost for the years ended December 31, 2022, 2021 and 2020 in the amount of $ 121,673 103,033 92,986 As of December 31, 2022, there was a total of $ 593,680 4.41 |
EMPLOYEE STOCK OWNERSHIP PLAN A
EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST | 12 Months Ended |
Dec. 31, 2022 | |
Employee Stock Ownership Plan And Trust | |
EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST | 15. EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST We established an Employee Stock Ownership Plan (“ESOP”) effective January 1, 1989. Any employee of the Bank is eligible to become a participant in the ESOP upon reaching 21 1,000 The Company recognizes expense when the contribution is approved by the Board of Directors. The total expenses amounted to $ 540,000 540,000 540,000 336,088 A participant vests in the ESOP based upon the participant’s credited years of service. The vesting schedule is as follows: ● 1 0 ● 2 25 ● 3 50 ● 4 75 ● 5 100 Periodically, the Internal Revenue Service “IRS” requires a restatement of a qualified retirement plan to ensure that the plan document includes provisions required by legislative and regulatory changes made since the last restatement. There have been no substantive changes to the plan. The Board of Directors approved a restated plan, on January 26, 2012 (incorporated as Exhibit 10.5 in the 2011 10-K). The Plan was submitted to the IRS for approval and a determination letter was issued September 26, 2013, stating that the plan satisfies the requirements of Code Section 4975(e)(7). On January 26, 2017, the Board of Directors approved a restated plan (incorporated as Exhibit 10.6 in the 2016 10-K). The Plan was submitted to the IRS for approval and a determination letter was issued November 17, 2017, stating that the plan satisfies the requirements of Code Section 4975(e)(7). |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2022 | |
Dividends | |
DIVIDENDS | 16. DIVIDENDS The Bank’s ability to pay dividends to the Company is restricted by the laws and regulations of the State of South Carolina. Generally, these restrictions allow the Bank to pay dividends from current earnings without the prior written consent of the South Carolina Commissioner of Banking, if it received a satisfactory rating at its most recent examination. Cash dividends when declared, are paid by the Bank to the Company for distribution to shareholders of the Company. The Bank paid dividends of $ 3.8 4.3 3.6 |
INCOME PER COMMON SHARE
INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
INCOME PER COMMON SHARE | 17. INCOME PER COMMON SHARE The following table is a summary of the reconciliation of weighted average shares outstanding for the years ended December 31: 2022 2021 2020 Net income $ 6,655,140 $ 6,744,865 $ 6,460,631 Weighted average shares outstanding 5,550,078 5,531,518 5,526,948 Effect of dilutive shares 94,620 148,964 151,595 Weighted average shares outstanding - diluted 5,644,698 5,680,482 5,678,543 Earnings per share - basic $ 1.20 $ 1.22 $ 1.17 Earnings per share - diluted $ 1.18 $ 1.19 $ 1.14 |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | 18. REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to various capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. On July 2, 2013, the Federal Reserve Board approved the final rules implementing the Basel Committee on Banking Supervision’s (“BCBS”) capital guidelines for U.S. banks (“Basel III”). Following the actions by the Federal Reserve, the FDIC also approved regulatory capital requirements on July 9, 2013. The FDIC’s rule is identical in substance to the final rules issued by the Federal Reserve Bank. Basel III became effective on January 1, 2015 and its purpose is to improve the quality and increase the quantity of capital for all banking organizations. The rule was phased in over a four-year period, with full implementation occurring on January 1, 2019. The minimum requirements for the quantity and quality of capital were increased. The rule includes a new common equity Tier 1 capital (as defined in the regulation) to risk-weighted assets ratio of 4.50 2.50 4.00 6.00 4.00 On November 4, 2019, the federal banking agencies jointly issued a final rule on an optional, simplified measure of capital adequacy for qualifying community banking organizations called the community bank leverage ratio (“CBLR”) framework effective on January 1, 2020. A qualifying community banking organization is defined as having less than $ 10 9 25 5 9 The following table presents the actual CBLR for the Bank and Company at: December 31, 2022 December 31, 2021 Bank 9.03% 8.66% Company 9.30% 8.59% We believe that the Company and the Bank meet all capital adequacy requirements to which they were subject at December 31, 2022 and 2021. |
DISCLOSURES REGARDING FAIR VALU
DISCLOSURES REGARDING FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES REGARDING FAIR VALUE OF FINANCIAL INSTRUMENTS | 19. DISCLOSURES REGARDING FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or 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 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 asset-backed and 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 contract), our derivative instruments were immaterial to our consolidated financial statements as of December 31, 2022 and 2021. The following table presents information about assets measured at fair value on a recurring basis as of December 31, 2022 and 2021. Balance as of December 31, 2022 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 168,187,315 $ — $ — $ 168,187,315 Government-Sponsored Enterprises — 57,074,724 — 57,074,724 Municipal Securities — 16,448,375 29,461,812 45,910,187 Total $ 168,187,315 $ 73,523,099 $ 29,461,812 $ 271,172,226 Balance as of 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 December 31, 2022 or 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 years ended December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Beginning balance $ 24,484,047 $ 5,683,930 Total realized/unrealized gains (losses) Included in earnings — — Included in other comprehensive income (3,714,235 ) (79,883 ) Purchases, issuances, and settlements net of maturities 8,692,000 18,880,000 Transfers in and/or out of Level 3 — — Ending balance $ 29,461,812 $ 24,484,047 The following paragraphs describe the valuation methodologies used for assets 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 December 31, 2022 and 2021. December 31, 2022 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,452,170 $ 1,452,170 Mortgage loans to be sold — 866,594 — 866,594 Total $ — $ 866,594 $ 1,452,170 $ 2,318,764 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 December 31, 2022 or 2021. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2022: 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 instruments 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 using discounted cash flow models or based on the fair value of the underlying collateral. 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 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 on the counterparties. The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of December 31, 2022 and 2021, respectively. Fair Value Measurements at December 31, 2022 Carrying Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 14,772,564 $ 14,772,564 $ 14,772,564 $ — $ — Interest-bearing deposits at the Federal Reserve 12,999,135 12,999,135 12,999,135 — — Investment securities available for sale 271,172,226 271,172,226 168,187,315 73,523,099 29,461,812 Mortgage loans to be sold 866,594 866,594 — 866,594 — Loans, net 326,690,561 304,249,626 — — 304,249,626 Accrued interest receivable 2,145,522 2,145,522 — 2,145,522 Financial Liabilities: Demand deposits 582,100,650 582,100,650 — 582,100,650 — Time deposits 16,569,608 16,933,818 — 16,933,818 — Accrued interest payable 41,007 41,007 — 41,007 — Fair Value Measurements at December 31, 2021 Carrying Estimated Fair Value Level 1 Level 2 Level 3 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 212,347,489 212,347,489 100,062,300 87,801,142 24,484,047 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 21,248,310 — 21,428,310 — Accrued interest payable 14,914 14,914 — 14,914 — |
BANK OF SOUTH CAROLINA CORPORAT
BANK OF SOUTH CAROLINA CORPORATION - PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
BANK OF SOUTH CAROLINA CORPORATION - PARENT COMPANY | 20. BANK OF SOUTH CAROLINA CORPORATION - PARENT COMPANY The Company’s principal source of income is dividends from the Bank. Certain regulatory requirements restrict the amount of dividends which the Bank can pay to the Company. The Company’s principal asset is its investment in its Bank subsidiary. The Company’s condensed statements of financial condition as of December 31, 2022 and 2021, and the related condensed statements of income and cash flows for the years ended December 31, 2022, 2021 and 2020, are as follows: Condensed Statements of Financial Condition December 31, 2022 2021 Assets Cash $ 1,077,082 $ 1,233,354 Investment in wholly-owned bank subsidiary 38,339,882 53,327,296 Other assets 338,322 298,998 Total assets $ 39,755,286 $ 54,859,648 Liabilities and shareholders’ equity Other liabilities $ 943,899 $ 942,015 Shareholders’ equity 38,811,387 53,917,633 Total liabilities and shareholders’ equity $ 39,755,286 $ 54,859,648 Condensed Statements of Income For the year ended December 31, 2022 2021 2020 Interest income $ 287 $ 288 $ 759 Net operating expenses (267,243 ) (256,471 ) (255,409 ) Dividends received fom bank 3,640,000 3,805,000 4,700,000 Equity in undistributed earnings of subsidiary 3,282,096 3,196,048 2,015,281 Net income $ 6,655,140 $ 6,744,865 $ 6,460,631 Condensed Statements of Cash Flows For the year ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 6,655,140 $ 6,744,865 $ 6,460,631 Stock-based compensation expense 121,673 103,033 92,986 Equity in undistributed earnings of subsidiary (3,282,096 ) (3,196,048 ) (2,015,280 ) Decrease in other assets (39,324 ) (37,802 ) (36,590 ) Increase in other liabilities — (1 ) — Net cash provided by operating activities 3,455,393 3,614,047 4,501,747 Cash flows from financing activities: Dividends paid (3,773,396 ) (4,312,138 ) (3,592,841 ) Repurchase of common shares — — (398,868 ) Stock options exercised 161,731 207,889 117,044 Net cash used in financing activities (3,611,665 ) (4,104,249 ) (3,874,665 ) Net (decrease) increase in cash (156,272 ) (490,202 ) 627,082 Cash at the beginning of the year 1,233,354 1,723,556 1,096,474 Cash at the end of the year $ 1,077,082 $ 1,233,354 $ 1,723,556 Supplemental disclosure for non-cash investing and financing activity Change in dividends payable $ 1,883 $ 3,536 $ 53,680 |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 21. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The tables below represent the quarterly results of operations for the years ended December 31, 2022 and 2021, respectively: 2022 Fourth Third Second First Total interest and fee income $ 5,312,520 $ 5,047,752 $ 4,583,251 $ 4,254,960 Total interest expense 189,653 37,519 37,824 36,797 Net interest income 5,122,867 5,010,233 4,545,427 4,218,163 Provision for loan losses — — — (75,000 ) Net interest income after provision for loan losses 5,122,867 5,010,233 4,545,427 4,293,163 Total other income 393,270 443,340 593,698 634,554 Total other expense 3,181,330 3,067,733 3,138,415 3,016,562 Income before income tax expense 2,334,807 2,385,840 2,000,710 1,911,155 Income tax expense 527,022 545,573 457,728 447,049 Net income $ 1,807,785 $ 1,840,267 $ 1,542,982 $ 1,464,106 Basic income per common share $ 0.33 $ 0.33 $ 0.28 $ 0.26 Diluted income per common share $ 0.32 $ 0.33 $ 0.27 $ 0.26 2021 Fourth Third Second First Total interest and fee income $ 4,345,017 $ 4,201,069 $ 4,363,910 $ 4,641,115 Total interest expense 37,840 39,319 42,317 54,524 Net interest income 4,307,177 4,161,750 4,321,593 4,586,591 Provision for loan losses — — — 120,000 Net interest income after provision for loan losses 4,307,177 4,161,750 4,321,593 4,466,591 Total other income 842,935 1,138,431 946,951 939,914 Total other expense 3,146,129 3,047,534 3,084,596 3,030,715 Income before income tax expense 2,003,983 2,252,647 2,183,948 2,375,790 Income tax expense 464,814 525,710 515,264 565,715 Net income $ 1,539,169 $ 1,726,937 $ 1,668,684 $ 1,810,075 Basic income per common share $ 0.28 $ 0.31 $ 0.30 $ 0.33 Diluted income per common share $ 0.27 $ 0.30 $ 0.29 $ 0.32 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 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 reporting purposes. |
Accounting Estimates and Assumptions | Accounting Estimates and Assumptions The 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. |
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 as of 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 as of 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include working cash funds, due from banks, interest-bearing deposits at the Federal Reserve, items in process of collection and federal funds sold. All cash equivalents are readily convertible to cash and have maturities of less than 90 days. Depository institutions are required to maintain reserve and clearing balances at the Federal Reserve Bank. Vault cash satisfied our daily reserve requirement for the years ended December 31, 2022 and 2021. |
Interest-bearing Deposits at the Federal Reserve | Interest-bearing Deposits at the Federal Reserve Interest-bearing deposits at the Federal Reserve mature daily and are carried at cost. |
Investment Securities | Investment Securities We classify investments into three categories: (1) Held to Maturity - debt securities that we have the positive intent and ability to hold to maturity, which are reported at amortized cost, adjusted for the amortization of any related premiums or the accretion of any related discounts into interest income using a methodology which approximates a level yield of interest over the estimated remaining period until maturity; (2) Trading - debt securities that are bought and held principally for the purpose of selling them in the near term, which are reported at fair value, with unrealized gains and losses included in earnings; and (3) Available for Sale - debt securities that may be sold under certain conditions, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity, net of income taxes. Unrealized losses on securities due to fluctuations in fair value are recognized when it is determined that an other than temporary decline in value has occurred. Realized gains or losses on the sale of investments are recognized on a specific identification, trade date basis. All securities were classified as available for sale for 2022 and 2021. |
Mortgage Loans to be Sold | Mortgage Loans to be Sold We originate fixed and variable rate residential mortgage loans on a service release basis in the secondary market. Loans closed but not yet settled with an investor are carried in our loans to be sold portfolio. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with our customers. Therefore, these loans present very little market risk. We usually deliver to, and receive funding from, the investor within 30 to 60 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. We are not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. Because of the short-term nature of these derivative contracts, the fair value of the mortgage loans to be sold in most cases is materially the same as the value of the loan amount at its origination . Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations as a component of mortgage banking income. Gains or losses on sales of loans are recognized when control over these assets are surrendered and are included in mortgage banking income in the consolidated statements of income. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans are carried at principal amounts outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the weighted average life of the loan as an adjustment to yield. Interest income on all loans is recorded on an accrual basis. The accrual of interest and the amortization of net loan fees are generally discontinued on loans that 1) are maintained on a cash basis because of deterioration in the financial condition of the borrower; 2) the payment of full principal is not expected; or 3) the principal or interest has been in default for a period of 90 days or more. We define past due loans based on contractual payment and maturity dates. The accrual of interest is generally discontinued on loans that become 90 days past due as to principal or interest. The accrual of interest on some loans may continue even though they are 90 days past due if the loans are well secured or in the process of collection and management deems it appropriate. If non-accrual loans decrease their past due status to less than 30 days for a period of six to nine months, they are reviewed individually by management to determine if they should be returned to accrual status. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to interest income, to the extent that any interest has been foregone. Further cash receipts are recorded as recoveries of any amounts previously charged off. When this doubt does not exist, cash receipts are applied under the contractual terms of the loan agreement first to interest income and then to principal. We account for impaired loans by requiring that all loans (greater than $ 50,000 Additional accounting guidance allows us to use existing methods for recognizing interest income on an impaired loan. The guidance also requires additional disclosures about how we estimate interest income related to our impaired loans. A loan is also considered impaired if its terms are modified in a troubled debt restructuring (“TDR”). For this type of impaired loan, cash receipts are typically applied to principal and interest receivable in accordance with the terms of the restructured loan agreement. Interest income is recognized on these loans using the accrual method of accounting, provided they are performing in accordance with their restructured terms. The allowance for loan losses (the “allowance”) is our estimate of credit losses inherent in the loan portfolio. The allowance is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when we believe the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance is evaluated on a regular basis and is based upon our periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. We believe that the allowance is adequate to absorb inherent losses in the loan portfolio; however, there can be no assurance that loan losses in future periods will not exceed the current allowance amount or that future increases in the allowance will not be required. No assurance can be given that our ongoing evaluation of the loan portfolio, in light of changing economic conditions and other relevant circumstances, will not require significant future additions to the allowance, thus adversely affecting our operating results. The allowance is also subject to examination by regulatory agencies, which may consider factors such as the methodology used to determine adequacy and the size of the allowance relative to that of peer institutions and other adequacy tests. In addition, such regulatory agencies could require us to adjust our allowance based on information available at the time of the examination. The methodology used to determine the reserve for unfunded lending commitments, which is included in other liabilities, is inherently similar to the methodology used to determine the allowance adjusted for factors specific to binding commitments, including the probability of funding and historical loss ratio. |
Concentration of Credit Risk | Concentration of Credit Risk Our primary market consists of the counties of Berkeley, Charleston and Dorchester, South Carolina. As of December 31, 2022, the majority of the total loan portfolio, as well as a substantial portion of the commercial and real estate loan portfolios, were to borrowers within this region. No other areas of significant concentration of credit risk have been identified. |
Premises, Equipment and Leasehold Improvements and Depreciation | Premises, Equipment and Leasehold Improvements and Depreciation Land is carried at cost. Buildings and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes over the estimated useful lives of the assets ranging from 40 3 15 |
Leases | Leases In accordance with ASU 2016-02, the Company determines if a contractual arrangement is a lease at inception. Operating leases are included in the operating right of use (“ROU”) assets and current operating lease liabilities on the Company’s consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Currently, the Company does not have any finance leases. Operating lease ROU assets and lease liabilities are recognized at the commencement of the lease based on the present value of lease payments over the lease term. The lease payments included in the present value are fixed payments and index-based variable lease payments. The Company estimates the incremental borrowing rate, based on information available at the commencement of the lease, as most of the Company’s leases do not include an implicit rate. |
Revenue Recognition: | Revenue Recognition : In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Service Fees on Deposit Accounts The Bank earns fees from its deposit customers for account maintenance, transaction-based and overdraft services. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposits accounts are charged to deposit customers for specific services provided to the customer, such as non-sufficient funds fees, overdraft fees, and wire fees. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. ATM and Check Card Fee Income Check card fee income represents fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the Mastercard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the card. Certain expenses directly associated with the debit card are recorded on a net basis with the fee income. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Net deferred tax assets are included in other assets in the consolidated balance sheet. Accounting standards require the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. These standards also prescribe a recognition threshold and measurement of a tax position taken or expected to be taken in an enterprise’s tax return. We believe that we had no uncertain tax positions for the years ended December 31, 2022 and 2021. The income tax effects of unrealized gains and losses on investment securities available for sale are released from accumulated other comprehensive income at the time such securities are sold or impaired. |
Stock-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the expected term of the stock options and is adjusted for forfeitures as they occur. |
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. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. Earnings per share are restated for all stock splits and stock dividends, if any, through the date of issuance of the consolidated financial statements. |
Segment Information | Segment Information The Company operates and manages itself within one |
Interest Rate Lock Commitments and Forward Sale Contracts | Interest Rate Lock Commitments and Forward Sale Contracts Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free-standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitments before the loan is funded. In order to hedge the change in interest rates resulting from commitments to fund the loans, we enter into forward commitments for the future delivery of mortgage loans when the interest rate is locked. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in income when they occur. As a result of the short-term nature of mortgage loans held for sale (derivative contract), our derivative instruments were considered to be immaterial as of December 31, 2022 and 2021. We had no embedded derivative instruments requiring hedge accounting treatment at December 31, 2022 and 2021. We do not currently engage in hedging activities. |
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 is finalizing its evaluation of the adoption of ASU 2016-13 January 1, 2023 25,000 125,000 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 ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In November 2021, the FASB added a topic to the Accounting Standards Codification, Government Assistance, to require certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy to other accounting guidance. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. The amendment became effective January 1, 2022 and did not have a material effect on the consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows. |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 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. December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Treasury Notes $ 180,298,301 $ — $ (12,110,986 ) $ 168,187,315 Government-Sponsored Enterprises 67,384,808 — (10,310,084 ) 57,074,724 Municipal Securities 49,315,041 2,510 (3,407,364 ) 45,910,187 Total $ 296,998,150 $ 2,510 $ (25,828,434 ) $ 271,172,226 December 31, 2021 Amortized Cost 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 at December 31, 2022 and 2021, by contractual maturity are in the following table. | The amortized cost and estimated fair value of investment securities available for sale at December 31, 2022 and 2021, by contractual maturity are in the following table. December 31, 2022 December 31, 2021 Amortized Estimated Fair Value Amortized Estimated Fair Value Due in one year or less $ 42,722,655 $ 41,698,011 $ 12,756,176 $ 12,859,086 Due in one year to five years 190,569,869 176,217,530 116,602,790 115,896,465 Due in five years to ten years 53,995,700 45,386,818 76,531,464 74,575,862 Due in ten years and over 9,709,926 7,869,867 9,157,021 9,016,076 Total $ 296,998,150 $ 271,172,226 $ 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 that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021. | The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021. December 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 7 $ 38,181,255 $ (1,790,134 ) 18 $ 130,006,060 $ (10,320,852 ) 25 $ 168,187,315 $ (12,110,986 ) Government-Sponsored Enterprises 2 6,212,285 (84,170 ) 9 50,862,439 (10,225,914 ) 11 57,074,724 (10,310,084 ) Municipal Securities 46 26,068,218 (932,565 ) 31 14,859,459 (2,474,799 ) 77 40,927,677 (3,407,364 ) Total 55 $ 70,461,758 $ (2,806,869 ) 58 $ 195,727,958 $ (23,021,565 ) 113 $ 266,189,716 $ (25,828,434 ) 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 ) Municipal 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 table below shows the proceeds received from sales of securities available for sale and gross realized gains and losses. | The table below shows the proceeds received from sales of securities available for sale and gross realized gains and losses. For the Year Ended December 31, 2022 2021 2020 Gross proceeds $ 18,525,780 $ 15,572,500 $ 11,550,000 Gross realized gains 64,782 266,944 10,002 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Major classifications of loans | Major classifications of loans 159,434 488,481 December 31, 2022 December 31, 2021 Commercial $ 45,072,059 $ 45,804,434 Commercial real estate: Construction 17,524,260 12,054,095 Other 172,897,387 165,719,078 Consumer: Real estate 91,636,538 71,307,488 Other 3,851,538 3,768,531 Paycheck protection program — 7,978,603 Loans 330,981,782 306,632,229 Allowance for loan losses (4,291,221 ) (4,376,987 ) Loans, net $ 326,690,561 $ 302,255,242 |
The following tables illustrate credit risks by category and internally assigned grades at December 31, 2022 and 2021. “Pass” includes loans internally graded as excellent, good and satisfactory. | The following tables illustrate credit risks by category and internally assigned grades at December 31, 2022 and 2021. “Pass” includes loans internally graded as excellent, good and satisfactory. December 31, 2022 Commercial Commerical Commercial Consumer Consumer Paycheck Protection Program Total Pass $ 42,724,289 $ 17,524,260 $ 167,518,577 $ 86,183,899 $ 3,597,886 $ — $ 317,548,911 Watch 976,966 — 3,223,532 4,928,437 208,417 — 9,337,352 OAEM 94,803 — 968,611 274,445 7,345 — 1,345,204 Substandard 1,276,001 — 1,186,667 249,757 37,890 — 2,750,315 Doubtful — — — — — — — Loss — — — — — — — Total $ 45,072,059 $ 17,524,260 $ 172,897,387 $ 91,636,538 $ 3,851,538 $ — $ 330,981,782 December 31, 2021 Commercial Commerical 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. December 31, 2022 30-59 Days 60-89 Days Greater than Total Current Total Loans Receivable Recorded Investment ≥ Commercial $ 16,451 $ 178,975 $ — $ 195,426 $ 44,876,633 $ 45,072,059 $ — Commercial Real Estate Construction — — — — 17,524,260 17,524,260 — Commercial Real Estate Other 45,425 — 631,453 676,878 172,220,509 172,897,387 — Consumer Real Estate 274,445 — — 274,445 91,362,093 91,636,538 — Consumer Other — — — — 3,851,538 3,851,538 — Paycheck Protection Program — — — — — — Total $ 336,321 $ 178,975 $ 631,453 $ 1,146,749 $ 329,835,033 $ 330,981,782 $ — 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. Loans Receivable on Non-Accrual December 31, 2022 December 31, 2021 Commercial $ — $ 178,975 Commercial Real Estate Construction — — Commercial Real Estate Other 631,453 625,953 Consumer Real Estate — — Consumer Other — 9,686 Paycheck Protection Program — — Total $ 631,453 $ 814,614 |
The following tables set forth the changes in the allowance and an allocation of the allowance by class at December 31, 2022, 2021, and 2020. | The following tables set forth the changes in the allowance and an allocation of the allowance by class at December 31, 2022, 2021, and 2020. December 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 (40,600 ) — — (2,034 ) — (10 ) (42,644 ) Recoveries 800 — 18,000 — 12,224 854 31,878 Provisions (20,130 ) 55,132 (177,822 ) 92,027 (23,363 ) (844 ) (75,000 ) Ending Balance $ 735,759 $ 230,625 $ 2,216,484 $ 1,014,777 $ 93,576 $ — $ 4,291,221 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 Beginning Balance $ 1,029,310 $ 199,266 $ 1,909,121 $ 925,077 $ 122,920 $ — $ 4,185,694 Charge-offs — — — — (11,440 ) (9,550 ) (20,990 ) Recoveries 21,329 — — 47,711 22,367 876 92,283 Provisions (254,950 ) (23,773 ) 467,185 (48,004 ) (29,132 ) 8,674 120,000 Ending Balance $ 795,689 $ 175,493 $ 2,376,306 $ 924,784 $ 104,715 $ — $ 4,376,987 December 31, 2020 Commercial Commercial Real Estate Construction Commercial Real Estate Other Consumer Real Estate Consumer Other Paycheck Protection Program Total Allowance for Loan Losses Beginning Balance $ 1,429,917 $ 109,235 $ 1,270,445 $ 496,221 $ 697,940 $ — $ 4,003,758 Charge-offs (171,646 ) — — — (116,001 ) (2,650 ) (290,297 ) Recoveries 88,811 — 99,801 — 43,599 22 232,233 Provisions (317,772 ) 90,031 538,875 428,856 (502,618 ) 2,628 240,000 Ending Balance $ 1,029,310 $ 199,266 $ 1,909,121 $ 925,077 $ 122,920 $ — $ 4,185,694 |
The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. | The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. December 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 $ 179,230 $ — $ — $ — $ 37,889 $ — $ 217,119 Collectively evaluated for impairment 556,529 230,625 2,216,484 1,014,777 55,687 — 4,074,102 Total Allowance for Loan Losses 735,759 230,625 2,216,484 1,014,777 93,576 — 4,291,221 Loans Receivable Individually evaluated for impairment 1,276,001 — 1,202,412 249,758 37,889 — 2,766,060 Collectively evaluated for impairment 43,796,058 17,524,260 171,694,975 91,386,780 3,813,649 — 328,215,722 Total Loans Receivable $ 45,072,059 $ 17,524,260 $ 172,897,387 $ 91,636,538 $ 3,851,538 $ — $ 330,981,782 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 December 31, 2022 and 2021, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table. | As of December 31, 2022 and 2021, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table. Impaired and Restructured Loans As of December 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 $ 317,553 $ 317,553 $ — $ 1,096,407 $ 1,096,407 $ — Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,202,412 1,202,412 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other — — — — — — Paycheck Protection Program — — — — — — Total 1,769,723 1,769,723 — 2,999,286 2,999,286 — With an allowance recorded: Commercial 958,448 958,448 179,230 367,070 367,070 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other — — — — — — Consumer Real Estate — — — — — — Consumer Other 37,889 37,889 37,889 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total 996,337 996,337 217,119 407,223 407,223 220,141 Total Commercial 1,276,001 1,276,001 179,230 1,463,477 1,463,477 179,988 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,202,412 1,202,412 — 1,653,121 1,653,121 — Consumer Real Estate 249,758 249,758 — 249,758 249,758 — Consumer Other 37,889 37,889 37,889 40,153 40,153 40,153 Paycheck Protection Program — — — — — — Total $ 2,766,060 $ 2,766,060 $ 217,119 $ 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. For the year ended December 31, 2022 2021 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial $ 344,592 $ 21,445 $ 1,142,667 $ 68,602 $ 1,866,590 $ 102,636 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,231,015 30,689 1,645,375 68,031 4,849,474 218,372 Consumer Real Estate 249,758 14,019 249,777 10,615 249,813 11,580 Consumer Other — — — — — — Paycheck Protection Program — — — — — — Total 1,825,365 66,153 3,037,819 147,248 6,965,877 332,588 With an allowance recorded: Commercial 981,575 63,267 378,499 22,130 578,399 37,663 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other — — — — 337,304 — Consumer Real Estate — — — — 36,483 (116 ) Consumer Other 38,962 2,532 41,133 2,674 42,089 2,743 Paycheck Protection Program — — — — — — Total 1,020,537 65,799 419,632 24,804 994,275 40,290 Total Commercial 1,326,167 84,712 1,521,166 90,732 2,444,989 140,299 Commercial Real Estate Construction — — — — — — Commercial Real Estate Other 1,231,015 30,689 1,645,375 68,031 5,186,778 218,372 Consumer Real Estate 249,758 14,019 249,777 10,615 286,296 11,464 Consumer Other 38,962 2,532 41,133 2,674 42,089 2,743 Paycheck Protection Program — — — — — — $ 2,845,902 $ 131,952 $ 3,457,451 $ 172,052 $ 7,960,152 $ 372,878 |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Our loans were concentrated in the following categories. | Our loans were concentrated in the following categories. December 31, 2022 December 31, 2021 Commercial 13.62 % 14.94 % Commercial Real Estate Construction 5.29 % 3.93 % Commercial Real Estate Other 52.24 % 54.04 % Consumer Real Estate 27.69 % 23.26 % Consumer Other 1.16 % 1.23 % Paycheck Protection Program — % 2.60 % Total 100.00 % 100.00 % |
PREMISES, EQUIPMENT AND LEASE_2
PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises, equipment and leasehold improvements are summarized in the table below. | Premises, equipment and leasehold improvements are summarized in the table below. December 31, 2022 2021 Bank buildings $ 1,861,237 $ 1,861,237 Land 838,075 838,075 Leasehold purchases 30,000 30,000 Leasehold improvements 2,629,441 2,595,825 Construction in progress 535,434 31,654 Equipment 4,273,339 4,241,305 Premises, equipment and leasehold improvements, gross 10,167,526 9,598,096 Accumulated depreciation (6,178,919 ) (5,815,160 ) Total $ 3,988,607 $ 3,782,936 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Minimum rental commitments for these leases as of December 31, 2022 are presented in the table below. | The exercise of renewal options is based on the sole judgement of management and what they consider to be reasonably certain. Based on the market areas, past practices, and contract terms of all leases, the Bank assumed all renewal options will be exercised. Minimum rental commitments for these leases as of December 31, 2022 are presented in the table below. 2023 $ 1,182,746 2024 1,182,746 2025 1,182,746 2026 1,182,746 2027 1,182,746 2028 and thereafter 12,309,253 Total undiscounted lease payments $ 18,222,983 Less: effect of discounting (4,789,291 ) Present value of estimated lease payments $ 13,433,692 |
The table below shows lease expense components for the years ended December 31, 2022 and 2021. | The table below shows lease expense components for the years ended December 31, 2022 and 2021. December 31, Lease Expense Components: 2022 2021 Operating lease expense $ 1,192,292 $ 1,139,393 Short-term lease expense — — Total lease expense $ 1,192,292 $ 1,139,393 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits: | |
The scheduled maturities of certificates of deposit as of December 31, 2022 are presented in the table below: | As of December 31, 2022 and 2021, time deposits of $250,000 or more totaled approximately $ 5,303,509 7,417,864 The scheduled maturities of certificates of deposit as of December 31, 2022 are presented in the table below: 2023 $ 14,820,344 2024 581,665 2025 34,427 2026 780,208 2027 and thereafter 352,964 $ 16,569,608 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Total income taxes for the years ended December 31, 2022, 2021 and 2020 are presented in the table below. | Total income taxes for the years ended December 31, 2022, 2021 and 2020 are presented in the table below. For the year ended December 31, 2022 2021 2020 Income tax expense $ 1,977,372 $ 2,071,503 $ 1,965,679 Unrealized gains (losses) on securities available for sale presented in accumulated other comprehensive income (loss) (4,856,451 ) (1,010,881 ) 315,546 Total $ (2,879,079 ) $ 1,060,622 $ 2,281,225 |
Income tax expense was as follows: | Income tax expense was as follows: For the year ended December 31, 2022 2021 2020 Current income taxes Federal $ 1,837,678 $ 1,796,283 $ 1,543,334 State 311,494 321,971 — Total current tax expense 2,149,172 2,118,254 1,543,334 Deferred income tax (benefit) expense (171,800 ) (46,751 ) 422,345 Total income tax expense $ 1,977,372 $ 2,071,503 $ 1,965,679 |
The differences between actual income tax expense and the amounts computed by applying the U.S. federal income tax rate of 21% | The differences between actual income tax expense and the amounts computed by applying the U.S. federal income tax rate of 21% For the year ended December 31, 2022 2021 2020 Computed “expected” tax expense $ 1,812,828 $ 1,851,433 $ 1,769,525 Increase (reduction) in income taxes resulting from: Stock based compensation 24,901 21,637 19,527 Valuation allowance (9,111 ) 7,658 8,083 Other 22,389 7,477 7,259 State income tax, net of federal benefit 246,080 248,887 238,729 Tax exempt interest income (119,715 ) (65,589 ) (77,444 ) Total income tax expense $ 1,977,372 $ 2,071,503 $ 1,965,679 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below. | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below. As of December 31, 2022 2021 Deferred tax assets: Allowance for loan losses $ 901,156 $ 905,365 Unrealized loss on securities available for sale 5,423,444 — Deferred loan fees 33,481 102,581 Pass through income 188,401 26,525 State net operating loss carryforward 88,229 97,655 Nonaccrual interest 36,879 29,246 Other 11,421 9,432 Total gross deferred tax assets 6,683,011 1,170,804 Valuation allowance (88,544 ) (97,655 ) Total gross deferred tax assets, net of valuation allowance 6,594,467 1,073,149 Deferred tax liabilities: Fixed assets, principally due to differences in depreciation (289,935 ) (338,716 ) Unrealized gain on securities available for sale — (1,360,199 ) State credit carryforward — (5,672 ) Prepaid expenses (567 ) (29,869 ) Other (59,337 ) (58,619 ) Total gross deferred tax liabilities (349,839 ) (1,793,075 ) Net deferred tax asset (liability) $ 6,244,628 $ (719,926 ) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
The table below summarizes related party loans. | The table below summarizes related party loans. December 31, 2022 December 31, 2021 Balance at beginning of the year $ 5,513,146 $ 5,970,014 New loans or advances 806,053 3,693,836 Repayments (2,134,441 ) (4,150,704 ) Balance at the end of the year $ 4,184,758 $ 5,513,146 |
OTHER EXPENSE (Tables)
OTHER EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
The table below summarizes the components of other operating expense. | The table below summarizes the components of other operating expense. For the year ended December 31, 2022 2021 2020 Telephone and postage $ 205,296 $ 233,667 $ 219,065 State and FDIC insurance and fees 258,541 212,284 95,353 Supplies 61,551 63,850 74,472 Courier service 48,475 44,825 48,048 Insurance 55,178 56,748 53,000 Advertising and business development 11,480 8,114 9,045 Other 690,833 805,966 746,502 Total other operating expenses $ 1,331,354 $ 1,425,454 $ 1,245,485 |
STOCK INCENTIVE PLANS (Tables)
STOCK INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
The fair value of options granted was determined using the following weighted-average assumptions as of grant date: | The fair value of options granted was determined using the following weighted-average assumptions as of grant date: 2022 2021 2020 Risk free interest rate 2.75 % 1.46 % 0.63 % Expected life (in years) 5 5.99 7.50 Expected stock price volatility 35.30 % 34.18 % 32.90 % Dividend yield 4.15 % 4.00 % 4.26 % |
The following table presents a summary of the activity under the 2010, 2020 and 2021 Stock Incentive Plans for the years ended December 31: | The following table presents a summary of the activity under the 2010, 2020 and 2021 Stock Incentive Plans for the years ended December 31: 2022 2021 2020 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding, January 1 273,747 $ 17.50 202,344 $ 14.89 86,097 $ 12.92 Granted 5,000 17.10 115,750 20.15 145,750 15.31 Exercised (11,085 ) 14.58 (22,305 ) 10.64 (19,298 ) 9.39 Forfeited (13,250 ) 18.68 (22,042 ) 15.07 (10,205 ) 15.19 Outstanding, December 31 254,412 $ 17.56 273,747 $ 17.50 202,344 $ 14.89 Exercisable at year end 20,626 $ 17.76 7,804 $ 12.17 21,113 $ 9.77 |
The following table presents information pertaining to options outstanding at December 31, 2022. | The following table presents information pertaining to options outstanding at December 31, 2022. Exercise Price Number of Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price of Options Outstanding Intrinsic Value of Options Outstanding Number of Options Exercisable Weighted Average Exercise Price of Options Exercisable Intrinsic Value of Options Exercisable $ 12.26 3,508 1.58 $ 12.26 $ 43,008 2,806 $ 12.26 $ 13,038 $ 12.40 969 1.00 $ 12.40 $ 12,016 969 $ 12.40 $ 4,366 $ 13.05 7,260 2.33 $ 13.05 $ 94,743 4,356 $ 13.05 $ 16,796 $ 15.21 106,250 7.33 $ 15.21 $ 1,616,063 — $ 15.21 $ — $ 16.73 10,000 7.33 $ 16.73 $ 167,300 — $ 16.73 $ — $ 17.10 5,000 9.42 $ 17.10 $ 85,500 — $ 16.73 $ — $ 18.23 28,950 7.33 $ 18.23 $ 527,759 — $ 18.23 $ — $ 19.82 7,225 7.33 $ 19.82 $ 143,200 495 $ 19.82 $ — $ 20.04 20,250 8.59 $ 20.04 $ 405,810 — $ 20.04 $ — $ 21.10 65,000 8.33 $ 21.10 $ 1,371,500 12,000 $ 21.10 $ — 254,412 7.48 $ 17.56 $ 4,466,899 20,626 $ 17.76 $ 34,200 |
INCOME PER COMMON SHARE (Tables
INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
The following table is a summary of the reconciliation of weighted average shares outstanding for the years ended December 31: | The following table is a summary of the reconciliation of weighted average shares outstanding for the years ended December 31: 2022 2021 2020 Net income $ 6,655,140 $ 6,744,865 $ 6,460,631 Weighted average shares outstanding 5,550,078 5,531,518 5,526,948 Effect of dilutive shares 94,620 148,964 151,595 Weighted average shares outstanding - diluted 5,644,698 5,680,482 5,678,543 Earnings per share - basic $ 1.20 $ 1.22 $ 1.17 Earnings per share - diluted $ 1.18 $ 1.19 $ 1.14 |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
The following table presents the actual CBLR for the Bank and Company at: | The following table presents the actual CBLR for the Bank and Company at: December 31, 2022 December 31, 2021 Bank 9.03% 8.66% Company 9.30% 8.59% |
DISCLOSURES REGARDING FAIR VA_2
DISCLOSURES REGARDING FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
The following table presents information about assets measured at fair value on a recurring basis as of December 31, 2022 and 2021. | The following table presents information about assets measured at fair value on a recurring basis as of December 31, 2022 and 2021. Balance as of December 31, 2022 Level 1 Level 2 Level 3 Total U.S. Treasury Notes $ 168,187,315 $ — $ — $ 168,187,315 Government-Sponsored Enterprises — 57,074,724 — 57,074,724 Municipal Securities — 16,448,375 29,461,812 45,910,187 Total $ 168,187,315 $ 73,523,099 $ 29,461,812 $ 271,172,226 Balance as of 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 years ended December 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 years ended December 31, 2022 and 2021. December 31, 2022 December 31, 2021 Beginning balance $ 24,484,047 $ 5,683,930 Total realized/unrealized gains (losses) Included in earnings — — Included in other comprehensive income (3,714,235 ) (79,883 ) Purchases, issuances, and settlements net of maturities 8,692,000 18,880,000 Transfers in and/or out of Level 3 — — Ending balance $ 29,461,812 $ 24,484,047 |
The following tables present information about certain assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 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 December 31, 2022 and 2021. December 31, 2022 Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 1,452,170 $ 1,452,170 Mortgage loans to be sold — 866,594 — 866,594 Total $ — $ 866,594 $ 1,452,170 $ 2,318,764 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 December 31, 2022: | The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2022: 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 December 31, 2022 and 2021, respectively. | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of our financial instruments as of December 31, 2022 and 2021, respectively. Fair Value Measurements at December 31, 2022 Carrying Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 14,772,564 $ 14,772,564 $ 14,772,564 $ — $ — Interest-bearing deposits at the Federal Reserve 12,999,135 12,999,135 12,999,135 — — Investment securities available for sale 271,172,226 271,172,226 168,187,315 73,523,099 29,461,812 Mortgage loans to be sold 866,594 866,594 — 866,594 — Loans, net 326,690,561 304,249,626 — — 304,249,626 Accrued interest receivable 2,145,522 2,145,522 — 2,145,522 Financial Liabilities: Demand deposits 582,100,650 582,100,650 — 582,100,650 — Time deposits 16,569,608 16,933,818 — 16,933,818 — Accrued interest payable 41,007 41,007 — 41,007 — Fair Value Measurements at December 31, 2021 Carrying Estimated Fair Value Level 1 Level 2 Level 3 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 212,347,489 212,347,489 100,062,300 87,801,142 24,484,047 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 21,248,310 — 21,428,310 — Accrued interest payable 14,914 14,914 — 14,914 — |
BANK OF SOUTH CAROLINA CORPOR_2
BANK OF SOUTH CAROLINA CORPORATION - PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition December 31, 2022 2021 Assets Cash $ 1,077,082 $ 1,233,354 Investment in wholly-owned bank subsidiary 38,339,882 53,327,296 Other assets 338,322 298,998 Total assets $ 39,755,286 $ 54,859,648 Liabilities and shareholders’ equity Other liabilities $ 943,899 $ 942,015 Shareholders’ equity 38,811,387 53,917,633 Total liabilities and shareholders’ equity $ 39,755,286 $ 54,859,648 |
Condensed Statements of Income | Condensed Statements of Income For the year ended December 31, 2022 2021 2020 Interest income $ 287 $ 288 $ 759 Net operating expenses (267,243 ) (256,471 ) (255,409 ) Dividends received fom bank 3,640,000 3,805,000 4,700,000 Equity in undistributed earnings of subsidiary 3,282,096 3,196,048 2,015,281 Net income $ 6,655,140 $ 6,744,865 $ 6,460,631 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the year ended December 31, 2022 2021 2020 Cash flows from operating activities: Net income $ 6,655,140 $ 6,744,865 $ 6,460,631 Stock-based compensation expense 121,673 103,033 92,986 Equity in undistributed earnings of subsidiary (3,282,096 ) (3,196,048 ) (2,015,280 ) Decrease in other assets (39,324 ) (37,802 ) (36,590 ) Increase in other liabilities — (1 ) — Net cash provided by operating activities 3,455,393 3,614,047 4,501,747 Cash flows from financing activities: Dividends paid (3,773,396 ) (4,312,138 ) (3,592,841 ) Repurchase of common shares — — (398,868 ) Stock options exercised 161,731 207,889 117,044 Net cash used in financing activities (3,611,665 ) (4,104,249 ) (3,874,665 ) Net (decrease) increase in cash (156,272 ) (490,202 ) 627,082 Cash at the beginning of the year 1,233,354 1,723,556 1,096,474 Cash at the end of the year $ 1,077,082 $ 1,233,354 $ 1,723,556 Supplemental disclosure for non-cash investing and financing activity Change in dividends payable $ 1,883 $ 3,536 $ 53,680 |
QUARTERLY RESULTS OF OPERATIO_2
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
The tables below represent the quarterly results of operations for the years ended December 31, 2022 and 2021, respectively: | The tables below represent the quarterly results of operations for the years ended December 31, 2022 and 2021, respectively: 2022 Fourth Third Second First Total interest and fee income $ 5,312,520 $ 5,047,752 $ 4,583,251 $ 4,254,960 Total interest expense 189,653 37,519 37,824 36,797 Net interest income 5,122,867 5,010,233 4,545,427 4,218,163 Provision for loan losses — — — (75,000 ) Net interest income after provision for loan losses 5,122,867 5,010,233 4,545,427 4,293,163 Total other income 393,270 443,340 593,698 634,554 Total other expense 3,181,330 3,067,733 3,138,415 3,016,562 Income before income tax expense 2,334,807 2,385,840 2,000,710 1,911,155 Income tax expense 527,022 545,573 457,728 447,049 Net income $ 1,807,785 $ 1,840,267 $ 1,542,982 $ 1,464,106 Basic income per common share $ 0.33 $ 0.33 $ 0.28 $ 0.26 Diluted income per common share $ 0.32 $ 0.33 $ 0.27 $ 0.26 2021 Fourth Third Second First Total interest and fee income $ 4,345,017 $ 4,201,069 $ 4,363,910 $ 4,641,115 Total interest expense 37,840 39,319 42,317 54,524 Net interest income 4,307,177 4,161,750 4,321,593 4,586,591 Provision for loan losses — — — 120,000 Net interest income after provision for loan losses 4,307,177 4,161,750 4,321,593 4,466,591 Total other income 842,935 1,138,431 946,951 939,914 Total other expense 3,146,129 3,047,534 3,084,596 3,030,715 Income before income tax expense 2,003,983 2,252,647 2,183,948 2,375,790 Income tax expense 464,814 525,710 515,264 565,715 Net income $ 1,539,169 $ 1,726,937 $ 1,668,684 $ 1,810,075 Basic income per common share $ 0.28 $ 0.31 $ 0.30 $ 0.33 Diluted income per common share $ 0.27 $ 0.30 $ 0.29 $ 0.32 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Number | Dec. 31, 2021 USD ($) | |
Impaired loan minimum amount recorded at fair value | $ 50,000 | |
Number of segments | Number | 1 | |
Adopt ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member | |
Allowance for loan losses | $ (4,291,221) | $ (4,376,987) |
Pro Forma [Member] | ||
ASU 2016-13 adoption date | Jan. 01, 2023 | |
Minimum [Member] | Pro Forma [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance for loan losses | $ 25,000 | |
Maximum [Member] | Pro Forma [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Allowance for loan losses | $ 125,000 | |
Building [Member] | ||
Useful life (in years) | 40 years | |
Equipment [Member] | Minimum [Member] | ||
Useful life (in years) | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Useful life (in years) | 15 years |
The amortized cost and fair val
The amortized cost and fair value of investment securities available for sale are summarized as follows. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 296,998,150 | $ 215,047,451 |
Gross Unrealized Gains | 2,510 | 679,883 |
Gross Unrealized Losses | (25,828,434) | (3,379,845) |
Estimated Fair Value | 271,172,226 | 212,347,489 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 180,298,301 | 101,269,851 |
Gross Unrealized Gains | 68,848 | |
Gross Unrealized Losses | (12,110,986) | (1,276,399) |
Estimated Fair Value | 168,187,315 | 100,062,300 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 67,384,808 | 76,355,720 |
Gross Unrealized Gains | 275,123 | |
Gross Unrealized Losses | (10,310,084) | (1,909,834) |
Estimated Fair Value | 57,074,724 | 74,721,009 |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 49,315,041 | 37,421,880 |
Gross Unrealized Gains | 2,510 | 335,912 |
Gross Unrealized Losses | (3,407,364) | (193,612) |
Estimated Fair Value | $ 45,910,187 | $ 37,564,180 |
The amortized cost and estimate
The amortized cost and estimated fair value of investment securities available for sale at December 31, 2022 and 2021, by contractual maturity are in the following table. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, amortized cost | $ 42,722,655 | $ 12,756,176 |
Due in one year or less, estimated fair value | 41,698,011 | 12,859,086 |
Due in one year to five years, amortized cost | 190,569,869 | 116,602,790 |
Due in one year to five years, estimated fair value | 176,217,530 | 115,896,465 |
Due in one year to five years, amortized cost | 53,995,700 | 76,531,464 |
Due in five years to ten years, estimated fair value | 45,386,818 | 74,575,862 |
Due in ten years and over, amortized cost | 9,709,926 | 9,157,021 |
Due in ten years and over, estimated fair value | 7,869,867 | 9,016,076 |
Total, amortized cost | 296,998,150 | 215,047,451 |
Total, estimated fair value | $ 271,172,226 | $ 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 that individual securities have been in a continuous unrealized loss posi (Details) | Dec. 31, 2022 USD ($) Number | Dec. 31, 2021 USD ($) Number |
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 55 | 37 |
Fair Value, less than 12 months | $ 70,461,758 | $ 125,859,972 |
Gross Unrealized Losses, less than 12 months | $ (2,806,869) | $ (1,989,416) |
Number of positions, 12 months or longer | Number | 58 | 6 |
Fair Value, 12 months or longer | $ 195,727,958 | $ 39,909,134 |
Gross Unrealized Losses, 12 months or longer | $ (23,021,565) | $ (1,390,429) |
Number of positions | Number | 113 | 43 |
Fair value | $ 266,189,716 | $ 165,769,106 |
Gross Unrealized Losses | $ (25,828,434) | $ (3,379,845) |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 7 | 15 |
Fair Value, less than 12 months | $ 38,181,255 | $ 94,994,915 |
Gross Unrealized Losses, less than 12 months | $ (1,790,134) | $ (1,276,399) |
Number of positions, 12 months or longer | Number | 18 | |
Fair Value, 12 months or longer | $ 130,006,060 | |
Gross Unrealized Losses, 12 months or longer | $ (10,320,852) | |
Number of positions | Number | 25 | 15 |
Fair value | $ 168,187,315 | $ 94,994,915 |
Gross Unrealized Losses | $ (12,110,986) | $ (1,276,399) |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 2 | 3 |
Fair Value, less than 12 months | $ 6,212,285 | $ 19,480,595 |
Gross Unrealized Losses, less than 12 months | $ (84,170) | $ (519,405) |
Number of positions, 12 months or longer | Number | 9 | 6 |
Fair Value, 12 months or longer | $ 50,862,439 | $ 39,909,134 |
Gross Unrealized Losses, 12 months or longer | $ (10,225,914) | $ (1,390,429) |
Number of positions | Number | 11 | 9 |
Fair value | $ 57,074,724 | $ 59,389,729 |
Gross Unrealized Losses | $ (10,310,084) | $ (1,909,834) |
US States and Political Subdivisions Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of positions, less than 12 months | Number | 46 | 19 |
Fair Value, less than 12 months | $ 26,068,218 | $ 11,384,462 |
Gross Unrealized Losses, less than 12 months | $ (932,565) | $ (193,612) |
Number of positions, 12 months or longer | Number | 31 | |
Fair Value, 12 months or longer | $ 14,859,459 | |
Gross Unrealized Losses, 12 months or longer | $ (2,474,799) | |
Number of positions | Number | 77 | 19 |
Fair value | $ 40,927,677 | $ 11,384,462 |
Gross Unrealized Losses | $ (3,407,364) | $ (193,612) |
The table below shows the proce
The table below shows the proceeds received from sales of securities available for sale and gross realized gains and losses. (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross proceeds | $ 18,525,780 | $ 15,572,500 | $ 11,550,000 |
Gross realized gains | $ 64,782 | $ 266,944 | $ 10,002 |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE FOR SALE (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Investment securities available for sale | $ 271,172,226 | $ 212,347,489 | |
Gains on sale of investments, tax | 13,604 | 56,058 | $ 2,100 |
Asset Pledged as Collateral [Member] | |||
Variable Interest Entity [Line Items] | |||
Investment securities available for sale | $ 30,103,249 | $ 33,292,124 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Narrative) | 12 Months Ended | |||||
Mar. 27, 2020 USD ($) | Dec. 31, 2022 USD ($) Number | Dec. 31, 2021 USD ($) Number | Dec. 31, 2020 USD ($) Number | Dec. 27, 2020 USD ($) | Apr. 24, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Deferred loan fees | $ 159,434 | $ 488,481 | ||||
Loans | $ 330,981,782 | $ 306,632,229 | ||||
Restructured loans number | Number | 5 | 5 | ||||
Restructured loans amount | $ 1,000,000 | $ 1,000,000 | ||||
CARES Act [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Restructured loans number | Number | 1 | 2 | ||||
Restructured loans amount | $ 100,000 | $ 500,000 | ||||
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% | |||||
Principal deferments number classified as TDRs | Number | 9 | |||||
Loan balance of principal deferred loans classified as TDRs | $ 4,000,000 | |||||
Number of loans removed from TDR status | Number | 4 | |||||
Number of loans refinanced | Number | 2 | |||||
Number of loans paid off | Number | 1 | |||||
Principal deferments number of customers not classified as troubled debt restructuring | Number | 75 | |||||
Principal deferments number of customers not classified as troubled debt restructuring paid in full | Number | 41 | |||||
Principal deferment loans not classified as troubled debt restructuring paid in full | $ 9,900,000 | |||||
Interest Only Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Restructured loans number | Number | 2 | |||||
Restructured loans performing as agreed number | Number | 1 | |||||
Paycheck Protection Program [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 7,978,603 | |||||
Loans to be issued under CARES Act | $ 349,000,000,000 | |||||
Loans fixed rate | 1% | |||||
Loans term | 2 years | |||||
Guarantee of loan by SBA (percent) | 100% | 100% | ||||
Additional funding of loans to be issued under CARES Act | $ 310,000,000,000 | |||||
Additional funding of loans to be issued under Economic Aid Act | $ 325,000,000,000 | |||||
Bank funding number of customers | Number | 480 | |||||
Bank funding amount | $ 55,300,000 | |||||
Paycheck Protection Program [Member] | Minimum [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Processing fee of SBA loans percentage | 1% | |||||
Paycheck Protection Program [Member] | Maximum [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Processing fee of SBA loans percentage | 5% | |||||
Asset Pledged as Collateral [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 93,100,000 | $ 94,700,000 |
Major classifications of loans
Major classifications of loans (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 330,981,782 | $ 306,632,229 |
Allowance for loan losses | (4,291,221) | (4,376,987) |
Loans, net | 326,690,561 | 302,255,242 |
Commercial Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 45,072,059 | 45,804,434 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 17,524,260 | 12,054,095 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 172,897,387 | 165,719,078 |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 91,636,538 | 71,307,488 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,851,538 | 3,768,531 |
Paycheck Protection Program [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 7,978,603 |
The following tables illustrate
The following tables illustrate credit risks by category and internally assigned grades at December 31, 2022 and 2021. “Pass” includes loans internally graded as excellent, good and satisfactory. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 330,981,782 | $ 306,632,229 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 317,548,911 | 296,759,954 |
Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,337,352 | 4,967,060 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,345,204 | 1,498,706 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,750,315 | 3,406,509 |
Commercial Loan [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 45,072,059 | 45,804,434 |
Commercial Loan [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 42,724,289 | 43,853,889 |
Commercial Loan [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 976,966 | 450,319 |
Commercial Loan [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 94,803 | 36,749 |
Commercial Loan [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,276,001 | 1,463,477 |
Commercial Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 17,524,260 | 12,054,095 |
Commercial Real Estate Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 17,524,260 | 11,616,118 |
Commercial Real Estate Construction [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 437,977 | |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 172,897,387 | 165,719,078 |
Commercial Real Estate Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 167,518,577 | 159,825,281 |
Commercial Real Estate Other [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,223,532 | 3,082,408 |
Commercial Real Estate Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 968,611 | 1,158,268 |
Commercial Real Estate Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,186,667 | 1,653,121 |
Residential Mortgage [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 91,636,538 | 71,307,488 |
Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 86,183,899 | 69,920,347 |
Residential Mortgage [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,928,437 | 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 | 249,757 | 249,758 |
Consumer Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,851,538 | 3,768,531 |
Consumer Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,597,886 | 3,565,716 |
Consumer Other [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 208,417 | 133,418 |
Consumer Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,345 | 29,244 |
Consumer Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 37,890 | 40,153 |
Paycheck Protection Program [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,978,603 | |
Paycheck Protection Program [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 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 ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 330,981,782 | $ 306,632,229 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 336,321 | 171,899 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 178,975 | 288,464 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,146,749 | 797,853 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 329,835,033 | 305,834,376 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 631,453 | 337,490 |
Commercial Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 45,072,059 | 45,804,434 |
Commercial Loan [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 16,451 | 88,659 |
Commercial Loan [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 178,975 | |
Commercial Loan [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 195,426 | 88,659 |
Commercial Loan [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 44,876,633 | 45,715,775 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 17,524,260 | 12,054,095 |
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 17,524,260 | 12,054,095 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 172,897,387 | 165,719,078 |
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 45,425 | 59,269 |
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 288,464 | |
Commercial Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 676,878 | 685,223 |
Commercial Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 172,220,509 | 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] | ||
Loans | 631,453 | 337,490 |
Residential Mortgage [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 91,636,538 | 71,307,488 |
Residential Mortgage [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 274,445 | |
Residential Mortgage [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 274,445 | |
Residential Mortgage [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 91,362,093 | 71,307,488 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,851,538 | 3,768,531 |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 23,971 | |
Consumer Portfolio Segment [Member] | Financial Asset, Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 23,971 | |
Consumer Portfolio Segment [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,851,538 | 3,744,560 |
Paycheck Protection Program [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,978,603 | |
Paycheck Protection Program [Member] | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 7,978,603 |
The following table summarizes
The following table summarizes the balances of non-accrual loans. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 631,453 | $ 814,614 |
Commercial Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | 178,975 | |
Commercial Real Estate Other [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 631,453 | 625,953 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual loans receivable | $ 9,686 |
The following tables set forth
The following tables set forth the changes in the allowance and an allocation of the allowance by class at December 31, 2022, 2021, and 2020. (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan Losses | |||||||||||
Beginning Balance | $ 4,376,987 | $ 4,185,694 | $ 4,376,987 | $ 4,185,694 | $ 4,003,758 | ||||||
Charge-offs | (42,644) | (20,990) | (290,297) | ||||||||
Recoveries | 31,878 | 92,283 | 232,233 | ||||||||
Provisions | (75,000) | 120,000 | (75,000) | 120,000 | 240,000 | ||||||
Ending Balance | 4,291,221 | 4,376,987 | 4,291,221 | 4,376,987 | 4,185,694 | ||||||
Commercial Loan [Member] | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning Balance | 795,689 | 1,029,310 | 795,689 | 1,029,310 | 1,429,917 | ||||||
Charge-offs | (40,600) | (171,646) | |||||||||
Recoveries | 800 | 21,329 | 88,811 | ||||||||
Provisions | (20,130) | (254,950) | (317,772) | ||||||||
Ending Balance | 735,759 | 795,689 | 735,759 | 795,689 | 1,029,310 | ||||||
Commercial Real Estate Portfolio Segment [Member] | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning Balance | 175,493 | 199,266 | 175,493 | 199,266 | 109,235 | ||||||
Charge-offs | |||||||||||
Recoveries | |||||||||||
Provisions | 55,132 | (23,773) | 90,031 | ||||||||
Ending Balance | 230,625 | 175,493 | 230,625 | 175,493 | 199,266 | ||||||
Commercial Portfolio Segment [Member] | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning Balance | 2,376,306 | 1,909,121 | 2,376,306 | 1,909,121 | 1,270,445 | ||||||
Charge-offs | |||||||||||
Recoveries | 18,000 | 99,801 | |||||||||
Provisions | (177,822) | 467,185 | 538,875 | ||||||||
Ending Balance | 2,216,484 | 2,376,306 | 2,216,484 | 2,376,306 | 1,909,121 | ||||||
Residential Mortgage [Member] | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning Balance | 924,784 | 925,077 | 924,784 | 925,077 | 496,221 | ||||||
Charge-offs | (2,034) | ||||||||||
Recoveries | 47,711 | ||||||||||
Provisions | 92,027 | (48,004) | 428,856 | ||||||||
Ending Balance | 1,014,777 | 924,784 | 1,014,777 | 924,784 | 925,077 | ||||||
Consumer Portfolio Segment [Member] | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning Balance | 104,715 | 122,920 | 104,715 | 122,920 | 697,940 | ||||||
Charge-offs | (11,440) | (116,001) | |||||||||
Recoveries | 12,224 | 22,367 | 43,599 | ||||||||
Provisions | (23,363) | (29,132) | (502,618) | ||||||||
Ending Balance | 93,576 | 104,715 | 93,576 | 104,715 | 122,920 | ||||||
Paycheck Protection Program [Member] | |||||||||||
Allowance for Loan Losses | |||||||||||
Beginning Balance | |||||||||||
Charge-offs | (10) | (9,550) | (2,650) | ||||||||
Recoveries | 854 | 876 | 22 | ||||||||
Provisions | (844) | 8,674 | 2,628 | ||||||||
Ending Balance |
The following tables present, b
The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for Loan Losses | ||||
Individually evaluated for impairment | $ 217,119 | $ 220,141 | ||
Collectively evaluated for impairment | 4,074,102 | 4,156,846 | ||
Total Allowance for Loan Losses | 4,291,221 | 4,376,987 | $ 4,185,694 | $ 4,003,758 |
Loans Receivable | ||||
Individually evaluated for impairment | 2,766,060 | 3,406,509 | ||
Collectively evaluated for impairment | 328,215,722 | 303,225,720 | ||
Total Loans Receivable | 330,981,782 | 306,632,229 | ||
Commercial Loan [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | 179,230 | 179,988 | ||
Collectively evaluated for impairment | 556,529 | 615,701 | ||
Total Allowance for Loan Losses | 735,759 | 795,689 | 1,029,310 | 1,429,917 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,276,001 | 1,463,477 | ||
Collectively evaluated for impairment | 43,796,058 | 44,340,957 | ||
Total Loans Receivable | 45,072,059 | 45,804,434 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 230,625 | 175,493 | ||
Total Allowance for Loan Losses | 230,625 | 175,493 | 199,266 | 109,235 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 17,524,260 | 12,054,095 | ||
Total Loans Receivable | 17,524,260 | 12,054,095 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 2,216,484 | 2,376,306 | ||
Total Allowance for Loan Losses | 2,216,484 | 2,376,306 | 1,909,121 | 1,270,445 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,202,412 | 1,653,121 | ||
Collectively evaluated for impairment | 171,694,975 | 164,065,957 | ||
Total Loans Receivable | 172,897,387 | 165,719,078 | ||
Residential Mortgage [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 1,014,777 | 924,784 | ||
Total Allowance for Loan Losses | 1,014,777 | 924,784 | 925,077 | 496,221 |
Loans Receivable | ||||
Individually evaluated for impairment | 249,758 | 249,758 | ||
Collectively evaluated for impairment | 91,386,780 | 71,057,730 | ||
Total Loans Receivable | 91,636,538 | 71,307,488 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for Loan Losses | ||||
Individually evaluated for impairment | 37,889 | 40,153 | ||
Collectively evaluated for impairment | 55,687 | 64,562 | ||
Total Allowance for Loan Losses | 93,576 | 104,715 | 122,920 | 697,940 |
Loans Receivable | ||||
Individually evaluated for impairment | 37,889 | 40,153 | ||
Collectively evaluated for impairment | 3,813,649 | 3,728,378 | ||
Total Loans Receivable | 3,851,538 | 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 | 7,978,603 | |||
Total Loans Receivable | $ 7,978,603 |
As of December 31, 2022 and 202
As of December 31, 2022 and 2021, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
With no related allowance recorded: | ||
Unpaid Principal Balance with no related allowance recorded | $ 1,769,723 | $ 2,999,286 |
Recorded Investment with no related allowance recorded | 1,769,723 | 2,999,286 |
With an allowance recorded: | ||
Unpaid Principal Balance with an allowance recorded | 996,337 | 407,223 |
Recorded Investment with an allowance recorded | 996,337 | 407,223 |
Related Allowance | 217,119 | 220,141 |
Total | ||
Impaired Financing Receivable, Unpaid Principal Balance | 2,766,060 | 3,406,509 |
Impaired Financing Receivable, Recorded Investment | 2,766,060 | 3,406,509 |
Related Allowance | 217,119 | 220,141 |
Commercial Loan [Member] | ||
With no related allowance recorded: | ||
Unpaid Principal Balance with no related allowance recorded | 317,553 | 1,096,407 |
Recorded Investment with no related allowance recorded | 317,553 | 1,096,407 |
With an allowance recorded: | ||
Unpaid Principal Balance with an allowance recorded | 958,448 | 367,070 |
Recorded Investment with an allowance recorded | 958,448 | 367,070 |
Related Allowance | 179,230 | 179,988 |
Total | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,276,001 | 1,463,477 |
Impaired Financing Receivable, Recorded Investment | 1,276,001 | 1,463,477 |
Related Allowance | 179,230 | 179,988 |
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Unpaid Principal Balance with no related allowance recorded | 1,202,412 | 1,653,121 |
Recorded Investment with no related allowance recorded | 1,202,412 | 1,653,121 |
Total | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,202,412 | 1,653,121 |
Impaired Financing Receivable, Recorded Investment | 1,202,412 | 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 |
Total | ||
Impaired Financing Receivable, Unpaid Principal Balance | 249,758 | 249,758 |
Impaired Financing Receivable, Recorded Investment | 249,758 | 249,758 |
Consumer Portfolio Segment [Member] | ||
With an allowance recorded: | ||
Unpaid Principal Balance with an allowance recorded | 37,889 | 40,153 |
Recorded Investment with an allowance recorded | 37,889 | 40,153 |
Related Allowance | 37,889 | 40,153 |
Total | ||
Impaired Financing Receivable, Unpaid Principal Balance | 37,889 | 40,153 |
Impaired Financing Receivable, Recorded Investment | 37,889 | 40,153 |
Related Allowance | $ 37,889 | $ 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 ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
With no related allowance recorded: | |||
Average Recorded Investment with no related allowance recorded | $ 1,825,365 | $ 3,037,819 | $ 6,965,877 |
Interest Income Recognized with no related allowance recorded | 66,153 | 147,248 | 332,588 |
With an allowance recorded: | |||
Average Recorded Investment with an allowance recorded | 1,020,537 | 419,632 | 994,275 |
Interest Income Recognized with an allowance recorded | 65,799 | 24,804 | 40,290 |
Total | |||
Average Recorded Investment | 2,845,902 | 3,457,451 | 7,960,152 |
Interest Income Recognized | 131,952 | 172,052 | 372,878 |
Commercial Loan [Member] | |||
With no related allowance recorded: | |||
Average Recorded Investment with no related allowance recorded | 344,592 | 1,142,667 | 1,866,590 |
Interest Income Recognized with no related allowance recorded | 21,445 | 68,602 | 102,636 |
With an allowance recorded: | |||
Average Recorded Investment with an allowance recorded | 981,575 | 378,499 | 578,399 |
Interest Income Recognized with an allowance recorded | 63,267 | 22,130 | 37,663 |
Total | |||
Average Recorded Investment | 1,326,167 | 1,521,166 | 2,444,989 |
Interest Income Recognized | 84,712 | 90,732 | 140,299 |
Commercial Portfolio Segment [Member] | |||
With no related allowance recorded: | |||
Average Recorded Investment with no related allowance recorded | 1,231,015 | 1,645,375 | 4,849,474 |
Interest Income Recognized with no related allowance recorded | 30,689 | 68,031 | 218,372 |
With an allowance recorded: | |||
Average Recorded Investment with an allowance recorded | 337,304 | ||
Total | |||
Average Recorded Investment | 1,231,015 | 1,645,375 | 5,186,778 |
Interest Income Recognized | 30,689 | 68,031 | 218,372 |
Residential Mortgage [Member] | |||
With no related allowance recorded: | |||
Average Recorded Investment with no related allowance recorded | 249,758 | 249,777 | 249,813 |
Interest Income Recognized with no related allowance recorded | 14,019 | 10,615 | 11,580 |
With an allowance recorded: | |||
Average Recorded Investment with an allowance recorded | 36,483 | ||
Interest Income Recognized with an allowance recorded | (116) | ||
Total | |||
Average Recorded Investment | 249,758 | 249,777 | 286,296 |
Interest Income Recognized | 14,019 | 10,615 | 11,464 |
Consumer Portfolio Segment [Member] | |||
With an allowance recorded: | |||
Average Recorded Investment with an allowance recorded | 38,962 | 41,133 | 42,089 |
Interest Income Recognized with an allowance recorded | 2,532 | 2,674 | 2,743 |
Total | |||
Average Recorded Investment | 38,962 | 41,133 | 42,089 |
Interest Income Recognized | $ 2,532 | $ 2,674 | $ 2,743 |
Our loans were concentrated in
Our loans were concentrated in the following categories. (Details) - Credit Concentration Risk [Member] - Loans Receivable [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Concentration of credit risk | 100% | 100% |
Commercial Loan [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 13.62% | 14.94% |
Commercial Real Estate Portfolio Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 5.29% | 3.93% |
Commercial Portfolio Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 52.24% | 54.04% |
Residential Mortgage [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 27.69% | 23.26% |
Consumer Portfolio Segment [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 1.16% | 1.23% |
Paycheck Protection Program [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of credit risk | 2.60% |
Premises, equipment and lease_3
Premises, equipment and leasehold improvements are summarized in the table below. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | $ 10,167,526 | $ 9,598,096 |
Accumulated depreciation | (6,178,919) | (5,815,160) |
Total | 3,988,607 | 3,782,936 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | 1,861,237 | 1,861,237 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | 838,075 | 838,075 |
Leaseholds and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | 30,000 | 30,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | 2,629,441 | 2,595,825 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | 535,434 | 31,654 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, equipment and leasehold improvements, gross | $ 4,273,339 | $ 4,241,305 |
PREMISES, EQUIPMENT AND LEASE_4
PREMISES, EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 359,251 | $ 412,866 | $ 421,040 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 13,433,692 | $ 14,041,843 | |
Operating Lease, Liability | $ 13,433,692 | 14,041,843 | |
Renewal terms | 20 years | ||
Weighted average remaining lease term | 15 years 8 months 8 days | ||
Weighted average incremental borrowing rate | 4.08% | ||
Rent expense | $ 1,192,292 | $ 1,139,393 | $ 972,815 |
Minimum rental commitments for
Minimum rental commitments for these leases as of December 31, 2022 are presented in the table below. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
2023 | $ 1,182,746 | |
2024 | 1,182,746 | |
2025 | 1,182,746 | |
2026 | 1,182,746 | |
2027 | 1,182,746 | |
2028 and thereafter | 12,309,253 | |
Total undiscounted lease payments | 18,222,983 | |
Less: effect of discounting | (4,789,291) | |
Present value of estimated lease payments | $ 13,433,692 | $ 14,041,843 |
The table below shows lease exp
The table below shows lease expense components for the years ended December 31, 2022 and 2021. (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Operating lease expense | $ 1,192,292 | $ 1,139,393 | $ 972,815 |
Short-term lease expense | |||
Total lease expense | $ 1,192,292 | $ 1,139,393 |
The scheduled maturities of cer
The scheduled maturities of certificates of deposit as of December 31, 2022 are presented in the table below: (Details) | Dec. 31, 2022 USD ($) |
Deposits: | |
2023 | $ 14,820,344 |
2024 | 581,665 |
2025 | 34,427 |
2026 | 780,208 |
2027 and thereafter | 352,964 |
Total | $ 16,569,608 |
DEPOSITS (Details Narrative)
DEPOSITS (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits: | ||
Certificates of deposit over $250,000 | $ 5,303,509 | $ 7,417,864 |
Deposits with deficit balance reclassified as other loans | $ 80,524 | $ 28,549 |
SHORT-TERM BORROWINGS (Details
SHORT-TERM BORROWINGS (Details Narrative) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Unused balance of line of credit | $ 41 | $ 41 |
Federal Reserve Bank Advances [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit maximum borrowing capacity | $ 78.3 |
Total income taxes for the year
Total income taxes for the years ended December 31, 2022, 2021 and 2020 are presented in the table below. (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense | $ 527,022 | $ 545,573 | $ 457,728 | $ 447,049 | $ 464,814 | $ 525,710 | $ 515,264 | $ 565,715 | $ 1,977,372 | $ 2,071,503 | $ 1,965,679 |
Unrealized gains (losses) on securities available for sale presented in accumulated other comprehensive income (loss) | (4,856,451) | (1,010,881) | 315,546 | ||||||||
Total | $ (2,879,079) | $ 1,060,622 | $ 2,281,225 |
Income tax expense was as follo
Income tax expense was as follows: (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income taxes | |||||||||||
Federal | $ 1,837,678 | $ 1,796,283 | $ 1,543,334 | ||||||||
State | 311,494 | 321,971 | |||||||||
Total current tax expense | 2,149,172 | 2,118,254 | 1,543,334 | ||||||||
Deferred income tax (benefit) expense | (171,800) | (46,751) | 422,345 | ||||||||
Total income tax expense | $ 527,022 | $ 545,573 | $ 457,728 | $ 447,049 | $ 464,814 | $ 525,710 | $ 515,264 | $ 565,715 | $ 1,977,372 | $ 2,071,503 | $ 1,965,679 |
The differences between actual
The differences between actual income tax expense and the amounts computed by applying the U.S. federal income tax rate of 21% (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed “expected” tax expense | $ 1,812,828 | $ 1,851,433 | $ 1,769,525 | ||||||||
Increase (reduction) in income taxes resulting from: | |||||||||||
Stock based compensation | 24,901 | 21,637 | 19,527 | ||||||||
Valuation allowance | (9,111) | 7,658 | 8,083 | ||||||||
Other | 22,389 | 7,477 | 7,259 | ||||||||
State income tax, net of federal benefit | 246,080 | 248,887 | 238,729 | ||||||||
Tax exempt interest income | (119,715) | (65,589) | (77,444) | ||||||||
Total income tax expense | $ 527,022 | $ 545,573 | $ 457,728 | $ 447,049 | $ 464,814 | $ 525,710 | $ 515,264 | $ 565,715 | $ 1,977,372 | $ 2,071,503 | $ 1,965,679 |
The tax effects of temporary di
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 901,156 | $ 905,365 |
Unrealized loss on securities available for sale | 5,423,444 | |
Deferred loan fees | 33,481 | 102,581 |
Pass through income | 188,401 | 26,525 |
State net operating loss carryforward | 88,229 | 97,655 |
Nonaccrual interest | 36,879 | 29,246 |
Other | 11,421 | 9,432 |
Total gross deferred tax assets | 6,683,011 | 1,170,804 |
Valuation allowance | (88,544) | (97,655) |
Total gross deferred tax assets, net of valuation allowance | 6,594,467 | 1,073,149 |
Deferred tax liabilities: | ||
Fixed assets, principally due to differences in depreciation | (289,935) | (338,716) |
Unrealized gain on securities available for sale | (1,360,199) | |
State credit carryforward | (5,672) | |
Prepaid expenses | (567) | (29,869) |
Other | (59,337) | (58,619) |
Total gross deferred tax liabilities | (349,839) | (1,793,075) |
Net deferred tax asset | $ 6,244,628 | |
Net deferred tax (liability) | $ (719,926) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal income tax rate | 21% | |
Deferred tax asset, valuation allowance | $ 88,544 | $ 97,655 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments to Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Commitments to extend credit | $ 145,392,792 | $ 117,450,893 |
Standby Letters of Credit [Member] | ||
Other Commitments [Line Items] | ||
Undiscounted future payments related to standby letters of credit | $ 2,518,771 | $ 648,717 |
The table below summarizes rela
The table below summarizes related party loans. (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Balance at beginning of the year | $ 5,513,146 | $ 5,970,014 |
New loans or advances | 806,053 | 3,693,836 |
Repayments | (2,134,441) | (4,150,704) |
Balance at the end of the year | $ 4,184,758 | $ 5,513,146 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Deposits held by related parties | $ 7,426,656 | $ 11,405,076 |
The table below summarizes the
The table below summarizes the components of other operating expense. (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Telephone and postage | $ 205,296 | $ 233,667 | $ 219,065 |
State and FDIC insurance and fees | 258,541 | 212,284 | 95,353 |
Supplies | 61,551 | 63,850 | 74,472 |
Courier service | 48,475 | 44,825 | 48,048 |
Insurance | 55,178 | 56,748 | 53,000 |
Advertising and business development | 11,480 | 8,114 | 9,045 |
Other | 690,833 | 805,966 | 746,502 |
Total other operating expenses | $ 1,331,354 | $ 1,425,454 | $ 1,245,485 |
The fair value of options grant
The fair value of options granted was determined using the following weighted-average assumptions as of grant date: (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk free interest rate | 2.75% | 1.46% | 0.63% |
Expected life (in years) | 5 years | 5 years 11 months 26 days | 7 years 6 months |
Expected stock price volatility | 35.30% | 34.18% | 32.90% |
Dividend yield | 4.15% | 4% | 4.26% |
The following table presents a
The following table presents a summary of the activity under the 2010, 2020 and 2021 Stock Incentive Plans for the years ended December 31: (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Outstanding, beginning | 273,747 | 202,344 | 86,097 |
Outstanding, beginning | $ 17.50 | $ 14.89 | $ 12.92 |
Granted | 5,000 | 115,750 | 145,750 |
Granted | $ 17.10 | $ 20.15 | $ 15.31 |
Exercised | (11,085) | (22,305) | (19,298) |
Exercised | $ 14.58 | $ 10.64 | $ 9.39 |
Forfeited | (13,250) | (22,042) | (10,205) |
Forfeited | $ 18.68 | $ 15.07 | $ 15.19 |
Outstanding, ending | 254,412 | 273,747 | 202,344 |
Outstanding, ending | $ 17.56 | $ 17.50 | $ 14.89 |
Exercisable at year end | 20,626 | 7,804 | 21,113 |
Exercisable at year end | $ 17.76 | $ 12.17 | $ 9.77 |
The following table presents in
The following table presents information pertaining to options outstanding at December 31, 2022. (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 17.56 | $ 17.50 | $ 14.89 | $ 12.92 |
Number of Options Outstanding | 254,412 | |||
Weighted Average Remaining Contractual Life | 7 years 5 months 23 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 17.56 | |||
Intrinsic Value of Options Outstanding | $ 4,466,899 | |||
Number of Options Exercisable | 20,626 | |||
Weighted Average Exercise Price of Options Exercisable | $ 17.76 | |||
Intrinsic Value of Options Exercisable | $ 34,200 | |||
Exercise Price 1 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 12.26 | |||
Number of Options Outstanding | 3,508 | |||
Weighted Average Remaining Contractual Life | 1 year 6 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 12.26 | |||
Intrinsic Value of Options Outstanding | $ 43,008 | |||
Number of Options Exercisable | 2,806 | |||
Weighted Average Exercise Price of Options Exercisable | $ 12.26 | |||
Intrinsic Value of Options Exercisable | $ 13,038 | |||
Exercise Price 2 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 12.40 | |||
Number of Options Outstanding | 969 | |||
Weighted Average Remaining Contractual Life | 1 year | |||
Weighted Average Exercise Price of Options Outstanding | $ 12.40 | |||
Intrinsic Value of Options Outstanding | $ 12,016 | |||
Number of Options Exercisable | 969 | |||
Weighted Average Exercise Price of Options Exercisable | $ 12.40 | |||
Intrinsic Value of Options Exercisable | $ 4,366 | |||
Exercise Price 3 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 13.05 | |||
Number of Options Outstanding | 7,260 | |||
Weighted Average Remaining Contractual Life | 2 years 3 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 13.05 | |||
Intrinsic Value of Options Outstanding | $ 94,743 | |||
Number of Options Exercisable | 4,356 | |||
Weighted Average Exercise Price of Options Exercisable | $ 13.05 | |||
Intrinsic Value of Options Exercisable | $ 16,796 | |||
Exercise Price 4 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 15.21 | |||
Number of Options Outstanding | 106,250 | |||
Weighted Average Remaining Contractual Life | 7 years 3 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 15.21 | |||
Intrinsic Value of Options Outstanding | $ 1,616,063 | |||
Weighted Average Exercise Price of Options Exercisable | $ 15.21 | |||
Exercise Price 5 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 16.73 | |||
Number of Options Outstanding | 10,000 | |||
Weighted Average Remaining Contractual Life | 7 years 3 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 16.73 | |||
Intrinsic Value of Options Outstanding | $ 167,300 | |||
Weighted Average Exercise Price of Options Exercisable | $ 16.73 | |||
Exercise Price 6 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 17.10 | |||
Number of Options Outstanding | 5,000 | |||
Weighted Average Remaining Contractual Life | 9 years 5 months 1 day | |||
Weighted Average Exercise Price of Options Outstanding | $ 17.10 | |||
Intrinsic Value of Options Outstanding | $ 85,500 | |||
Weighted Average Exercise Price of Options Exercisable | $ 16.73 | |||
Exercise Price 7 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 18.23 | |||
Number of Options Outstanding | 28,950 | |||
Weighted Average Remaining Contractual Life | 7 years 3 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 18.23 | |||
Intrinsic Value of Options Outstanding | $ 527,759 | |||
Weighted Average Exercise Price of Options Exercisable | $ 18.23 | |||
Exercise Price 8 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 19.82 | |||
Number of Options Outstanding | 7,225 | |||
Weighted Average Remaining Contractual Life | 7 years 3 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 19.82 | |||
Intrinsic Value of Options Outstanding | $ 143,200 | |||
Number of Options Exercisable | 495 | |||
Weighted Average Exercise Price of Options Exercisable | $ 19.82 | |||
Exercise Price 9 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 20.04 | |||
Number of Options Outstanding | 20,250 | |||
Weighted Average Remaining Contractual Life | 8 years 7 months 2 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 20.04 | |||
Intrinsic Value of Options Outstanding | $ 405,810 | |||
Weighted Average Exercise Price of Options Exercisable | $ 20.04 | |||
Exercise Price 10 [Member] | ||||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Exercise Price | $ 21.10 | |||
Number of Options Outstanding | 65,000 | |||
Weighted Average Remaining Contractual Life | 8 years 3 months 29 days | |||
Weighted Average Exercise Price of Options Outstanding | $ 21.10 | |||
Intrinsic Value of Options Outstanding | $ 1,371,500 | |||
Number of Options Exercisable | 12,000 | |||
Weighted Average Exercise Price of Options Exercisable | $ 21.10 |
STOCK INCENTIVE PLANS (Details
STOCK INCENTIVE PLANS (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Number shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of stock incentive plans | Number | 2 | ||
Intrinsic value of options exercised | $ | $ 161,740 | $ 208,259 | $ 139,837 |
Stock-based compensation expense | $ | 121,673 | $ 103,033 | $ 92,986 |
Unrecognized compensation cost | $ | $ 593,680 | ||
Period for unrecognized compensation cost to be recognized | 4 years 4 months 28 days | ||
2010 Stock Incentive Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares authorized under stock incentive plan | 300,000 | ||
2010 Stock Incentive Plan [Member] | Adjusted for Stock Dividends [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares authorized under stock incentive plan | 363,000 | ||
Number of stock dividends affecting stock plans | Number | 2 | ||
Stock dividends for share adjustment of plans (percent) | 10% | ||
2020 Stock Incentive Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares authorized under stock incentive plan | 300,000 | ||
2020 Stock Incentive Plan [Member] | Vesting after Five Years [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of options vesting | 20% | ||
2020 Stock Incentive Plan [Member] | Vesting Each Year Thereafter [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of options vesting | 20% | ||
Stock Incentive Plan 2021 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares authorized under stock incentive plan | 150,000 | ||
Stock Incentive Plan 2021 [Member] | Vesting Each Year [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Percentage of options vesting | 20% |
EMPLOYEE STOCK OWNERSHIP PLAN_2
EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Number shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Share-Based Payment Arrangement, Tranche One [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Service period | 1 year | ||
Vested percentage | 0% | ||
Share-Based Payment Arrangement, Tranche Two [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Service period | 2 years | ||
Vested percentage | 25% | ||
Share-Based Payment Arrangement, Tranche Three [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Service period | 3 years | ||
Vested percentage | 50% | ||
Share-based Payment Arrangement, Tranche Four [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Service period | 4 years | ||
Vested percentage | 75% | ||
Share-based Payment Arrangement, Tranche Five [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Service period | 5 years | ||
Vested percentage | 100% | ||
Employee Stock Ownership ESOP Plan [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Minimum age requirement | 21 | ||
Hours of service | 1,000 | ||
Stock-based compensation expense | $ | $ 540,000 | $ 540,000 | $ 540,000 |
Number of common shares the plan currently owns | shares | 336,088 |
DIVIDENDS (Details Narrative)
DIVIDENDS (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends | |||
Dividends paid to parent by subsidiaries | $ 3.8 | $ 4.3 | $ 3.6 |
The following table is a summar
The following table is a summary of the reconciliation of weighted average shares outstanding for the years ended December 31: (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 1,807,785 | $ 1,840,267 | $ 1,542,982 | $ 1,464,106 | $ 1,539,169 | $ 1,726,937 | $ 1,668,684 | $ 1,810,075 | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Weighted average shares outstanding | 5,550,078 | 5,531,518 | 5,526,948 | ||||||||
Effect of dilutive shares | 94,620 | 148,964 | 151,595 | ||||||||
Weighted average shares outstanding - diluted | 5,644,698 | 5,680,482 | 5,678,543 | ||||||||
Earnings per share - basic | $ 0.33 | $ 0.33 | $ 0.28 | $ 0.26 | $ 0.28 | $ 0.31 | $ 0.30 | $ 0.33 | $ 1.20 | $ 1.22 | $ 1.17 |
Earnings per share - diluted | $ 0.32 | $ 0.33 | $ 0.27 | $ 0.26 | $ 0.27 | $ 0.30 | $ 0.29 | $ 0.32 | $ 1.18 | $ 1.19 | $ 1.14 |
The following table presents th
The following table presents the actual CBLR for the Bank and Company at: (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CBLR | 0.0930 | 0.0859 |
Subsidiaries [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CBLR | 0.0903 | 0.0866 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details Narrative) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Assets | $ 653,345,609 | $ 679,220,646 |
Basel III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to risk-weighted assets ratio | 0.0450 | |
Common equity Tier 1 capital conservation buffer, percentage of risk-weighted assets | 0.0250 | |
Minimum ratio of Tier 1 capital to risk-weighted assets | 0.0600 | |
Minimum leverage ratio | 0.0400 | |
Pre-Basel III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Minimum ratio of Tier 1 capital to risk-weighted assets | 0.0400 | |
Community Bank Leverage Ratio [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Minimum leverage ratio | 0.09 | 0.09 |
Community Bank Leverage Ratio [Member] | Maximum [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Assets | $ 10,000,000,000 | |
Off-balance sheet exposure percentage | 25% | |
Trading assets and liabilities percentage | 5% |
The following table presents _2
The following table presents information about assets measured at fair value on a recurring basis as of December 31, 2022 and 2021. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 271,172,226 | $ 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 | 168,187,315 | 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 | 73,523,099 | 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 | 29,461,812 | 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 | 168,187,315 | 100,062,300 |
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 | 57,074,724 | 74,721,009 |
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 | 45,910,187 | 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 | 271,172,226 | 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 | 168,187,315 | 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 | 73,523,099 | 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 | 29,461,812 | 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 | 168,187,315 | 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 | 168,187,315 | 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 | 57,074,724 | 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 | 57,074,724 | 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 | 45,910,187 | 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 | 16,448,375 | 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 | $ 29,461,812 | $ 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 years ended December 31, 2022 and 2021. (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 24,484,047 | $ 5,683,930 |
Total realized/unrealized gains (losses) | ||
Included in earnings | ||
Included in other comprehensive income | $ (3,714,235) | (79,883) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Unrealized (loss) gain on securities arising during the period | |
Purchases, issuances, and settlements net of maturities | $ 8,692,000 | 18,880,000 |
Transfers in and/or out of Level 3 | ||
Ending balance | $ 29,461,812 | $ 24,484,047 |
The following tables present in
The following tables present information about certain assets measured at fair value on a nonrecurring basis as of December 31, 2022 and 2021. (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,452,170 | $ 1,902,879 |
Mortgage loans to be sold | 866,594 | 2,774,388 |
Total | 2,318,764 | 4,677,267 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,452,170 | 1,902,879 |
Total | 1,452,170 | 1,902,879 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans to be sold | 866,594 | 2,774,388 |
Total | $ 866,594 | $ 2,774,388 |
The following table provides in
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2022: (Details) - Valuation, Market Approach [Member] - Measurement Input, Discount Rate [Member] | Dec. 31, 2022 |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Impaired loans | 0.10 |
Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Impaired loans | 0.20 |
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 December 31, 2022 and 2021, respectively. (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $ 271,172,226 | $ 212,347,489 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 14,772,564 | 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 12,999,135 | 128,971,429 |
Investment securities available for sale | 168,187,315 | 100,062,300 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 73,523,099 | 87,801,142 |
Mortgage loans to be sold | 866,594 | 2,774,388 |
Accrued interest receivable | 2,145,522 | 1,404,227 |
Demand deposits | 582,100,650 | 587,903,356 |
Time deposits | 16,933,818 | 21,428,310 |
Accrued interest payable | 41,007 | 14,914 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 29,461,812 | 24,484,047 |
Loans, net | 304,249,626 | 293,731,997 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 14,772,564 | 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 12,999,135 | 128,971,429 |
Investment securities available for sale | 271,172,226 | 212,347,489 |
Mortgage loans to be sold | 866,594 | 2,774,388 |
Loans, net | 326,690,561 | 302,255,242 |
Accrued interest receivable | 2,145,522 | 1,404,227 |
Demand deposits | 582,100,650 | 587,903,356 |
Time deposits | 16,569,608 | 21,288,220 |
Accrued interest payable | 41,007 | 14,914 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and due from banks | 14,772,564 | 11,140,559 |
Interest-bearing deposits at the Federal Reserve | 12,999,135 | 128,971,429 |
Investment securities available for sale | 271,172,226 | 212,347,489 |
Mortgage loans to be sold | 866,594 | 2,774,388 |
Loans, net | 304,249,626 | 293,731,997 |
Accrued interest receivable | 2,145,522 | 1,404,227 |
Demand deposits | 582,100,650 | 587,903,356 |
Time deposits | 16,933,818 | 21,248,310 |
Accrued interest payable | $ 41,007 | $ 14,914 |
Condensed Statements of Financi
Condensed Statements of Financial Condition (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Other assets | $ 7,276,708 | $ 2,502,533 | ||
Total assets | 653,345,609 | 679,220,646 | ||
Liabilities and shareholders’ equity | ||||
Shareholders’ equity | 38,811,387 | 53,917,633 | $ 54,980,356 | $ 51,168,032 |
Total liabilities and shareholders’ equity | 653,345,609 | 679,220,646 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash | 1,077,082 | 1,233,354 | $ 1,723,556 | $ 1,096,474 |
Investment in wholly-owned bank subsidiary | 38,339,882 | 53,327,296 | ||
Other assets | 338,322 | 298,998 | ||
Total assets | 39,755,286 | 54,859,648 | ||
Liabilities and shareholders’ equity | ||||
Other liabilities | 943,899 | 942,015 | ||
Shareholders’ equity | 38,811,387 | 53,917,633 | ||
Total liabilities and shareholders’ equity | $ 39,755,286 | $ 54,859,648 |
Condensed Statements of Income
Condensed Statements of Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | $ 5,122,867 | $ 5,010,233 | $ 4,545,427 | $ 4,218,163 | $ 4,307,177 | $ 4,161,750 | $ 4,321,593 | $ 4,586,591 | $ 18,896,690 | $ 17,377,111 | $ 16,934,342 |
Net income | $ 1,807,785 | $ 1,840,267 | $ 1,542,982 | $ 1,464,106 | $ 1,539,169 | $ 1,726,937 | $ 1,668,684 | $ 1,810,075 | 6,655,140 | 6,744,865 | 6,460,631 |
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | 287 | 288 | 759 | ||||||||
Net operating expenses | (267,243) | (256,471) | (255,409) | ||||||||
Dividends received fom bank | 3,640,000 | 3,805,000 | 4,700,000 | ||||||||
Equity in undistributed earnings of subsidiary | 3,282,096 | 3,196,048 | 2,015,281 | ||||||||
Net income | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 1,807,785 | $ 1,840,267 | $ 1,542,982 | $ 1,464,106 | $ 1,539,169 | $ 1,726,937 | $ 1,668,684 | $ 1,810,075 | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Stock-based compensation expense | 121,673 | 103,033 | 92,986 | ||||||||
Net cash provided by operating activities | 9,473,544 | 17,463,644 | 291,987 | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of common shares | (398,868) | ||||||||||
Stock options exercised | 161,731 | 207,889 | 117,044 | ||||||||
Net cash used in financing activities | (14,132,983) | 142,889,696 | 79,131,311 | ||||||||
Net (decrease) increase in cash | (112,340,289) | 91,786,007 | (768,438) | ||||||||
Supplemental disclosure for non-cash investing and financing activity | |||||||||||
Change in dividends payable | 1,883 | 3,536 | 53,680 | ||||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 6,655,140 | 6,744,865 | 6,460,631 | ||||||||
Stock-based compensation expense | 121,673 | 103,033 | 92,986 | ||||||||
Equity in undistributed earnings of subsidiary | (3,282,096) | (3,196,048) | (2,015,280) | ||||||||
Decrease in other assets | (39,324) | (37,802) | (36,590) | ||||||||
Increase in other liabilities | (1) | ||||||||||
Net cash provided by operating activities | 3,455,393 | 3,614,047 | 4,501,747 | ||||||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (3,773,396) | (4,312,138) | (3,592,841) | ||||||||
Repurchase of common shares | (398,868) | ||||||||||
Stock options exercised | 161,731 | 207,889 | 117,044 | ||||||||
Net cash used in financing activities | (3,611,665) | (4,104,249) | (3,874,665) | ||||||||
Net (decrease) increase in cash | (156,272) | (490,202) | 627,082 | ||||||||
Cash at the beginning of the year | $ 1,233,354 | $ 1,723,556 | 1,233,354 | 1,723,556 | 1,096,474 | ||||||
Cash at the end of the year | $ 1,077,082 | $ 1,233,354 | 1,077,082 | 1,233,354 | 1,723,556 | ||||||
Supplemental disclosure for non-cash investing and financing activity | |||||||||||
Change in dividends payable | $ 1,883 | $ 3,536 | $ 53,680 |
The tables below represent the
The tables below represent the quarterly results of operations for the years ended December 31, 2022 and 2021, respectively: (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total interest and fee income | $ 5,312,520 | $ 5,047,752 | $ 4,583,251 | $ 4,254,960 | $ 4,345,017 | $ 4,201,069 | $ 4,363,910 | $ 4,641,115 | $ 19,198,483 | $ 17,551,111 | $ 17,239,756 |
Total interest expense | 189,653 | 37,519 | 37,824 | 36,797 | 37,840 | 39,319 | 42,317 | 54,524 | 301,793 | 174,000 | 305,414 |
Net interest income | 5,122,867 | 5,010,233 | 4,545,427 | 4,218,163 | 4,307,177 | 4,161,750 | 4,321,593 | 4,586,591 | 18,896,690 | 17,377,111 | 16,934,342 |
Provision for loan losses | (75,000) | 120,000 | (75,000) | 120,000 | 240,000 | ||||||
Net interest income after provision for loan losses | 5,122,867 | 5,010,233 | 4,545,427 | 4,293,163 | 4,307,177 | 4,161,750 | 4,321,593 | 4,466,591 | 18,971,690 | 17,257,111 | 16,694,342 |
Total other income | 393,270 | 443,340 | 593,698 | 634,554 | 842,935 | 1,138,431 | 946,951 | 939,914 | 2,064,862 | 3,868,231 | 3,404,901 |
Total other expense | 3,181,330 | 3,067,733 | 3,138,415 | 3,016,562 | 3,146,129 | 3,047,534 | 3,084,596 | 3,030,715 | 12,404,040 | 12,308,974 | 11,672,933 |
Income before income tax expense | 2,334,807 | 2,385,840 | 2,000,710 | 1,911,155 | 2,003,983 | 2,252,647 | 2,183,948 | 2,375,790 | 8,632,512 | 8,816,368 | 8,426,310 |
Income tax expense | 527,022 | 545,573 | 457,728 | 447,049 | 464,814 | 525,710 | 515,264 | 565,715 | 1,977,372 | 2,071,503 | 1,965,679 |
Net income | $ 1,807,785 | $ 1,840,267 | $ 1,542,982 | $ 1,464,106 | $ 1,539,169 | $ 1,726,937 | $ 1,668,684 | $ 1,810,075 | $ 6,655,140 | $ 6,744,865 | $ 6,460,631 |
Basic income per common share | $ 0.33 | $ 0.33 | $ 0.28 | $ 0.26 | $ 0.28 | $ 0.31 | $ 0.30 | $ 0.33 | $ 1.20 | $ 1.22 | $ 1.17 |
Diluted income per common share | $ 0.32 | $ 0.33 | $ 0.27 | $ 0.26 | $ 0.27 | $ 0.30 | $ 0.29 | $ 0.32 | $ 1.18 | $ 1.19 | $ 1.14 |