Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 07, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Farmers & Merchants Bancshares, Inc. | |
Entity Central Index Key | 0001698022 | |
Trading Symbol | fmfg | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 2,959,777 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(g) Security | Common stock, par value $.01 per share |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 16,281,158 | $ 11,480,608 |
Federal funds sold and other interest-bearing deposits | 3,313,899 | 3,137,629 |
Cash and cash equivalents | 19,595,057 | 14,618,237 |
Certificate of deposit in other bank | 100,000 | 100,000 |
Securities available for sale | 40,101,155 | 26,591,991 |
Securities held to maturity | 19,509,907 | 18,127,067 |
Equity security at fair value | 531,714 | 503,827 |
Federal Home Loan Bank stock, at cost | 503,700 | 575,800 |
Mortgage loans held for sale | 1,538,574 | 573,638 |
Loans, less allowance for loan losses of $2,546,114 and $2,509,334 | 336,748,866 | 340,900,635 |
Premises and equipment | 4,913,640 | 5,075,310 |
Accrued interest receivable | 978,300 | 990,529 |
Deferred income taxes | 950,207 | 1,179,454 |
Other real estate owned | 210,150 | |
Bank owned life insurance | 7,102,589 | 7,053,354 |
Other assets | 1,931,803 | 657,885 |
434,505,512 | 417,157,877 | |
Deposits: | ||
Noninterest-bearing | 58,298,592 | 62,717,520 |
Interest-bearing | 313,897,923 | 291,995,483 |
Total deposits | 372,196,515 | 354,713,003 |
Securities sold under repurchase agreements | 7,583,212 | 11,012,000 |
Federal Home Loan Bank of Atlanta advances | 1,000,000 | 3,000,000 |
Accrued interest payable | 348,862 | 311,489 |
Other liabilities | 4,382,403 | 2,726,678 |
385,510,992 | 371,763,170 | |
Stockholders' equity: | ||
Common stock, par value $.01 per share, authorized 5,000,000 shares; issued and outstanding 2,959,777 in 2019 and 1,682,997 shares in 2018 | 29,598 | 16,830 |
Additional paid-in capital | 27,561,138 | 27,324,794 |
Retained earnings | 21,276,789 | 18,621,382 |
Accumulated other comprehensive income | 126,995 | (568,299) |
48,994,520 | 45,394,707 | |
$ 434,505,512 | $ 417,157,877 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance for loan losses | $ 2,546,114 | $ 2,509,334 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, share authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, share issued (in shares) | 2,959,777 | 1,682,997 |
Common stock, share outstanding (in shares) | 2,959,777 | 1,682,997 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Loans, including fees | $ 4,250,071 | $ 4,189,626 | $ 12,582,392 | $ 12,171,765 |
Investment securities - taxable | 234,274 | 145,791 | 631,382 | 450,649 |
Investment securities - tax exempt | 150,141 | 142,493 | 431,354 | 428,055 |
Federal funds sold and other interest earning assets | 84,526 | 47,280 | 280,876 | 117,973 |
Total interest income | 4,719,012 | 4,525,190 | 13,926,004 | 13,168,442 |
Interest expense: | ||||
Deposits | 916,452 | 604,697 | 2,577,229 | 1,543,023 |
Securities sold under repurchase agreements | 29,190 | 42,841 | 82,912 | 112,242 |
Federal Home Loan Bank advances and other borrowings | 10,769 | 16,480 | 42,517 | 125,427 |
Total interest expense | 956,411 | 664,018 | 2,702,658 | 1,780,692 |
Net interest income | 3,762,601 | 3,861,172 | 11,223,346 | 11,387,750 |
Provision for loan losses | (13,000) | (100,000) | 25,000 | |
Net interest income after provision for loan losses | 3,775,601 | 3,961,172 | 11,223,346 | 11,362,750 |
Noninterest income: | ||||
Mortgage banking income | 144,268 | 105,144 | 249,867 | 219,805 |
Bank owned life insurance income | 39,443 | 40,880 | 321,841 | 121,274 |
Unrealized gain (loss) on equity security | 3,966 | (3,869) | 18,721 | (15,348) |
Write down of other real estate owned | (55,350) | (210,150) | (55,350) | |
Gain on sale of SBA loans | 3,317 | 139,535 | 63,825 | |
Total noninterest income | 392,968 | 272,421 | 1,108,597 | 904,032 |
Noninterest expense: | ||||
Salaries | 1,358,208 | 1,344,759 | 3,993,998 | 3,892,971 |
Employee benefits | 312,119 | 328,258 | 1,008,228 | 1,018,280 |
Occupancy | 189,603 | 168,759 | 594,566 | 535,448 |
Furniture and equipment | 149,191 | 148,945 | 460,271 | 475,953 |
Other | 673,814 | 606,346 | 1,990,354 | 1,932,585 |
Total noninterest expense | 2,682,935 | 2,597,067 | 8,047,417 | 7,855,237 |
Income before income taxes | 1,485,634 | 1,636,526 | 4,284,526 | 4,411,545 |
Income taxes | 307,724 | 327,838 | 784,508 | 835,674 |
Net income | $ 1,177,910 | $ 1,308,688 | $ 3,500,018 | $ 3,575,871 |
Earnings per share - basic and diluted (in dollars per share) | $ 0.40 | $ 0.45 | $ 1.19 | $ 1.22 |
Deposit Account [Member] | ||||
Noninterest income: | ||||
Noninterest revenue | $ 176,577 | $ 160,665 | $ 494,752 | $ 496,393 |
Financial Service, Other [Member] | ||||
Noninterest income: | ||||
Noninterest revenue | $ 28,714 | $ 21,634 | $ 94,031 | $ 73,433 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 1,177,910 | $ 1,308,688 | $ 3,500,018 | $ 3,575,871 |
Securities available for sale | ||||
Net unrealized gain (loss) arising during the period | 113,117 | (115,428) | 959,257 | (534,867) |
Income tax expense (benefit) | 31,127 | (31,762) | 263,963 | (147,181) |
Total other comprehensive income (loss) | 81,990 | (83,666) | 695,294 | (387,686) |
Total comprehensive income | $ 1,259,900 | $ 1,225,022 | $ 4,195,312 | $ 3,188,185 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited Except for Year-end Amounts) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 1,667,813 | ||||
Balance at Dec. 31, 2017 | $ 16,678 | $ 26,869,796 | $ 15,306,625 | $ (394,167) | $ 41,798,932 |
Net income | 3,575,871 | 3,575,871 | |||
Unrealized gain (loss) on securities available for sale net of income tax expense (benefit) | (387,686) | (387,686) | |||
Reclassification due to adoption of ASU No. 2016-01 | Accounting Standards Update 2016-01 [Member] | (10,416) | 10,416 | |||
Cash dividends | (667,192) | (667,192) | |||
Dividends reinvested (in shares) | 7,337 | ||||
Dividends reinvested | $ 73 | 215,406 | 215,479 | ||
Shares Issued (in shares) | 50 | ||||
Shares Issued | $ 1 | 1,549 | 1,550 | ||
Balance (in shares) at Sep. 30, 2018 | 1,675,200 | ||||
Balance at Sep. 30, 2018 | $ 16,752 | 27,086,751 | 18,204,888 | (771,437) | 44,536,954 |
Balance (in shares) at Dec. 31, 2018 | 1,682,997 | ||||
Balance at Dec. 31, 2018 | $ 16,830 | 27,324,794 | 18,621,382 | (568,299) | 45,394,707 |
Net income | 3,500,018 | 3,500,018 | |||
Unrealized gain (loss) on securities available for sale net of income tax expense (benefit) | 695,294 | 695,294 | |||
Cash dividends | (740,477) | (740,477) | |||
Dividends reinvested (in shares) | 8,095 | ||||
Dividends reinvested | $ 81 | 236,344 | 236,425 | ||
Adjustment due to adoption of ASU No. 2016-02 | (91,447) | (91,447) | |||
Stock dividend (in shares) | 1,268,685 | ||||
Stock dividend | $ 12,687 | ||||
Stock dividend | (12,687) | ||||
Balance (in shares) at Sep. 30, 2019 | 2,959,777 | ||||
Balance at Sep. 30, 2019 | $ 29,598 | $ 27,561,138 | $ 21,276,789 | $ 126,995 | $ 48,994,520 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited Except for Year-end Amounts) (Parentheticals) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized gain (loss) on securities available for sale, tax expense (benefit) | $ 263,963 | $ (147,181) |
Cash dividends (in dollars per share) | $ 0.25 | $ 0.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Interest received | $ 13,871,203 | $ 13,200,699 |
Fees and commissions received | 1,111,256 | 789,631 |
Interest paid | (2,665,285) | (1,664,444) |
Proceeds from sale of mortgage loans held for sale | 12,266,054 | 10,513,771 |
Origination of mortgage loans held for sale | (13,230,990) | (10,336,071) |
Cash paid to suppliers and employees | (7,504,291) | (7,490,137) |
Income taxes paid, net of refunds received | (761,512) | (588,898) |
3,086,435 | 4,424,551 | |
Cash flows from investing activities | ||
Available for sale | (5,103,515) | (3,867,038) |
Held to maturity | 1,043,420 | 165,000 |
Available for sale | (17,761,884) | |
Held to maturity | (2,406,339) | (63,242) |
Purchase of certificate of deposit | (242,000) | |
Loans made to customers, net of principal collected | 2,766,804 | (9,473,587) |
Proceeds from sale of loans | 1,582,364 | 729,511 |
Redemption of stock in FHLB of Atlanta | 72,100 | 487,800 |
Purchases of premises, equipment and software | (60,267) | (176,346) |
(9,660,287) | (4,705,826) | |
Cash flows from financing activities | ||
Noninterest-bearing deposits | (4,418,928) | (4,841,569) |
Interest-bearing deposits | 21,902,440 | 34,559,400 |
Securities sold under repurchase agreements | (3,428,788) | (9,605,084) |
Federal Home Loan Bank of Atlanta advances (repayments) | (2,000,000) | (14,000,000) |
Dividends paid, net of reinvestments | (504,052) | (451,713) |
Common stock issued | 1,550 | |
11,550,672 | 5,662,584 | |
Net increase (decrease) in cash and cash equivalents | 4,976,820 | 5,381,309 |
Cash and cash equivalents at beginning of period | 14,618,237 | 7,237,385 |
Cash and cash equivalents at end of period | 19,595,057 | 12,618,694 |
Reconciliation of net income to net cash provided by operating activities | ||
Net income | 3,500,018 | 3,575,871 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 259,626 | 289,097 |
Provision for loan losses | 25,000 | |
Lease expense in excess of rent paid | 31,403 | |
Write down of other real estate owned | 210,150 | 55,350 |
Equity security dividend reinvested | (9,166) | (8,383) |
Unrealized (gain) loss on equity security | (18,721) | 15,348 |
Gain on sale of loans | (139,535) | (63,825) |
Decrease (increase) in mortgage loans held for sale | (964,936) | 177,700 |
Amortization of premiums and accretion of discounts, net | 88,541 | 100,989 |
Increase (decrease) in | ||
Deferred loan fees | (57,864) | (10,665) |
Accrued interest payable | 37,373 | 116,248 |
Other liabilities | 200,398 | 312,878 |
Decrease (increase) in | ||
Accrued interest receivable | 12,229 | 51,305 |
Bank owned life insurance cash surrender value | (49,235) | (121,274) |
Other assets | (13,846) | (91,088) |
$ 3,086,435 | $ 4,424,551 |
Note 1 - Principles of Consolid
Note 1 - Principles of Consolidation | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Principles of consolidation The consolidated financial statements include the accounts of Farmers and Merchants Bancshares, Inc. and its wholly owned subsidiaries, Farmers and Merchants Bank (the “Bank”), and Series Protected Cell FCB- 4 one 100% |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 2. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10 8 03 X. not three nine September 30, 2019 not may December 31, 2019 December 31, 2018, 10 Recent Accounting Pronouncements In February 2016, No. 2016 02, 841 2016 02, 606, December 15, 2018, not may not 2016 02, January 1, 2019, $1,400,855, $1,527,019, $91,447 $34,717 In June 2016, 2016 13, December 15, 2019, July 2019, 2023 2019. third In August 2018, 2018 13, 820 2018 13 820. no 2018 13 January 1, 2020, not In August 2018, 2018 14, 715 20 2018 14 no 2018 14 January 1, 2021, not In August 2018, 2018 15, 350 40 2018 15 2015 05, April 2015. 2018 15 2018 15 not 2018 15 January 1, 2020, not Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued. No On September 16, 2019, 75% October 31, 2019 October 4, 2019 8, |
Note 3 - Investment Securities
Note 3 - Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 3. Investment Securities Investments in debt securities are summarized as follows: Amortized Unrealized Unrealized Fair September 30, 2019 cost gains losses value Available for sale State and municipal $ 1,378,761 $ 11,464 $ - $ 1,390,225 SBA pools 2,388,707 - 51,269 2,337,438 Mortgage-backed securities 36,158,480 351,762 136,750 36,373,492 $ 39,925,948 $ 363,226 $ 188,019 $ 40,101,155 Held to maturity State and municipal $ 19,509,907 $ 644,737 $ 563 $ 20,154,081 Amortized Unrealized Unrealized Fair December 31, 2018 cost gains losses value Available for sale State and municipal $ 1,506,011 $ 11,161 $ 10,667 $ 1,506,505 SBA pools 2,779,411 - 60,039 2,719,372 Mortgage-backed securities 23,090,618 33,594 758,098 22,366,114 $ 27,376,040 $ 44,755 $ 828,804 $ 26,591,991 Held to maturity State and municipal $ 18,127,067 $ 115,220 $ 209,194 $ 18,033,093 Contractual maturities, shown below, will differ from actual maturities because borrowers and issuers may Available for Sale Held to Maturity Amortized Fair Amortized Fair September 30, 2019 cost value cost value Within one year $ - $ - $ 258,014 $ 263,101 Over one to five years 258,761 260,187 330,000 330,611 Over five to ten years 1,120,000 1,130,038 2,948,579 3,029,811 Over ten years - - 15,973,314 16,530,558 1,378,761 1,390,225 19,509,907 20,154,081 Mortgage-backed securities and SBA pools, due in monthly installments 38,547,187 38,710,930 - - $ 39,925,948 $ 40,101,155 $ 19,509,907 $ 20,154,081 December 31, 2018 Within one year $ 375,000 $ 375,653 $ 1,009,284 $ 1,011,165 Over one to five years 260,587 249,920 590,522 598,528 Over five to ten years 870,424 880,932 1,858,695 1,876,364 Over ten years - - 14,668,566 14,547,036 1,506,011 1,506,505 18,127,067 18,033,093 Mortgage-backed securities and SBA pools, due in monthly installments 25,870,029 25,085,486 - - $ 27,376,040 $ 26,591,991 $ 18,127,067 $ 18,033,093 Securities with a carrying value of $7,465,493 $11,706,765 September 30, 2019 December 31, 2018, The following table sets forth the Company’s gross unrealized losses on a continuous basis for investments in debt securities, by category and length of time, at September 30, 2019 December 31, 2018. September 30, 2019 Less than 12 months 12 months or more Total Description of investments Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss State and municipal $ - $ - $ 252,000 $ 563 $ 252,000 $ 563 SBA pools - - 2,337,438 51,269 2,337,438 51,269 Mortgage-backed securities 7,726,619 41,199 8,286,586 95,551 16,013,205 136,750 Total $ 7,726,619 $ 41,199 $ 10,876,024 $ 147,383 $ 18,602,643 $ 188,582 December 31, 2018 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses State and municipal $ 3,435,052 $ 42,080 $ 3,740,467 $ 177,781 $ 7,175,519 $ 219,861 SBA pools 443,288 6,707 2,276,084 53,332 2,719,372 60,039 Mortgage-backed securities 596,002 6,631 17,770,790 751,467 18,366,792 758,098 Total $ 4,474,342 $ 55,418 $ 23,787,341 $ 982,580 $ 28,261,683 $ 1,037,998 Management has the ability and intent to hold securities classified as held to maturity until they mature, at which time the Company should receive full value for the securities. As of September 30, 2019 December 31, 2018, not September 30, 2019 December 31, 2018, not |
Note 4 - Loans
Note 4 - Loans | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. Loans Major categories of loans are as follows: September 30, December 31, 2019 2018 Real estate: Commercial $ 233,140,797 $ 238,834,149 Construction and land development 16,132,994 18,265,505 Residential 69,049,698 63,024,106 Commercial 21,134,598 23,323,073 Consumer 309,902 494,009 339,767,989 343,940,842 Less: Allowance for loan losses 2,546,114 2,509,334 Deferred origination fees net of costs 473,009 530,873 $ 336,748,866 $ 340,900,635 Non-accrual loans, segregated by class of loans, were as follows: September 30, December 31, 2019 2018 Commercial real estate $ - $ 988,811 At September 30, 2019, no At December 31, 2018, two $988,811. $115,168 December 31, 2018 $0 $690,000 December 31, 2018. nine September 30, 2019 $15,299. An age analysis of past due loans, segregated by type of loan, is as follows: 90 Days Past Due 90 30 - 59 Days 60 - 89 Days or More Total Total Days or More Past Due Past Due Past Due Past Due Current Loans and Accruing September 30, 2019 Real estate: Commercial $ - $ - $ - $ - $ 233,140,797 $ 233,140,797 $ - Construction and land development - - - - 16,132,994 16,132,994 - Residential 31,857 - - 31,857 69,017,841 69,049,698 - Commercial - - - - 21,134,598 21,134,598 - Consumer - - - - 309,902 309,902 - Total $ 31,857 $ - $ - $ 31,857 $ 339,736,132 $ 339,767,989 $ - December 31, 2018 Real estate: Commercial $ - $ - $ 988,811 $ 988,811 $ 237,845,338 $ 238,834,149 $ - Construction and land development - - - - 18,265,505 18,265,505 - Residential - - 10,507 10,507 63,013,599 63,024,106 10,507 Commercial - 25,000 - 25,000 23,298,073 23,323,073 - Consumer - - - - 494,009 494,009 - Total $ - $ 25,000 $ 999,318 $ 1,024,318 $ 342,916,524 $ 343,940,842 $ 10,507 Impaired loans, segregated by class of loans with average recorded investment and interest recognized for the nine September 30, 2019 December 31, 2018, Unpaid Recorded Recorded Contractual Investment Investment Total Average Principal With No With Recorded Related Recorded Balance Allowance Allowance Investment Allowance Investment September 30, 2019 Real estate: Commercial $ 2,097,690 $ 2,097,690 $ - $ 2,097,690 $ - $ 2,610,536 Residential 50,790 50,790 - 50,790 - 25,395 $ 2,148,480 $ 2,148,480 $ - $ 2,148,480 $ - $ 2,635,931 December 31, 2018 Real estate: Commercial $ 3,813,381 $ 3,123,381 $ - $ 3,123,381 $ - $ 4,153,282 Residential 54,000 54,000 - 54,000 - 27,000 $ 3,867,381 $ 3,177,381 $ - $ 3,177,381 $ - $ 4,180,282 Impaired loans include certain loans that have been modified in troubled debt restructurings (“TDRs”) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may six At September 30, 2019, one $2,097,690 one $50,790 no two At December 31, 2018, one $2,134,570 one $54,000 $54,000 2018. no two As part of our portfolio risk management, the Company assigns a risk grade to each loan. The factors used to determine the grade are the payment history of the loan and the borrower, the value of the collateral and net worth of the guarantor, and cash flow projections of the borrower. Excellent, Above Average, Average and Acceptable grades are assigned to loans with limited or no A description of the general characteristics of loans characterized as watch list or classified is as follows: Pass/Watch Loans graded as Pass/Watch are secured by generally acceptable assets which reflect above-average risk. The loans warrant closer scrutiny by management than is routine, due to circumstances affecting the borrower, the borrower’s industry, or the overall economic environment. Borrowers may Special Mention A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may not not Borrowers may may may Substandard A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not Borrowers may Doubtful A doubtful loan has all the weaknesses inherent in a substandard loan with the added characteristic that the weaknesses, based on currently existing facts, conditions, and values, make collection or liquidation in full highly questionable and improbable. Loans by credit grade, segregated by loan type, are as follows: Above Pass Special September 30, 2019 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 3,056,485 $ 90,131,537 $ 108,685,401 $ 22,306,448 $ - $ 8,960,926 $ - $ 233,140,797 Construction and land development - 202,500 4,820,218 8,187,688 2,922,588 - - - 16,132,994 Residential 37,425 1,572,805 24,944,785 33,582,371 6,372,666 - 2,539,646 - 69,049,698 Commercial 192,622 37,519 9,850,802 8,138,156 2,915,499 - - - 21,134,598 Consumer 2,659 102,472 98,925 63,494 20,000 - 440 21,912 309,902 $ 232,706 $ 4,971,781 $ 129,846,267 $ 158,657,110 $ 34,537,201 $ - $ 11,501,012 $ 21,912 $ 339,767,989 Above Pass Special December 31, 2018 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 3,632,231 $ 101,633,803 $ 104,454,812 $ 20,356,642 $ - $ 8,756,661 $ - $ 238,834,149 Construction and land development - - 8,190,212 7,871,642 2,203,651 - - - 18,265,505 Residential 35,926 1,178,899 26,856,131 30,169,305 2,093,825 - 2,690,020 - 63,024,106 Commercial 977,054 24,180 12,373,503 7,130,122 2,818,214 - - - 23,323,073 Consumer 3,668 80,670 266,704 63,160 - - 1,340 78,467 494,009 $ 1,016,648 $ 4,915,980 $ 149,320,353 $ 149,689,041 $ 27,472,332 $ - $ 11,448,021 $ 78,467 $ 343,940,842 The Company’s allowance for loan losses is based on management’s evaluation of the risks inherent in the Company’s loan portfolio and the general economy. The allowance for loan may The following table details activity in the allowance for loan losses by portfolio for the nine September 30, 2019 2018, December 31, 2018. one not Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: September 30, 2019 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,754,372 $ (47,253 ) $ - $ 19,689 $ 1,726,808 $ - $ 1,726,808 $ 2,097,690 $ 231,043,107 Construction and land development 196,374 (34,932 ) - 10,425 171,867 - 171,867 - 16,132,994 Residential 401,626 45,242 - - 446,868 - 446,868 50,790 68,998,908 Commercial 102,610 (14,180 ) - 6,666 95,096 - 95,096 - 21,134,598 Consumer 10,428 (5,521 ) - - 4,907 - 4,907 - 309,902 Unallocated 43,924 56,644 - - 100,568 - 100,568 - - $ 2,509,334 $ - $ - $ 36,780 $ 2,546,114 $ - $ 2,546,114 $ 2,148,480 $ 337,619,509 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: September 30, 2018 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,867,397 $ (252,948 ) $ - $ 202,660 $ 1,817,109 $ 210,686 $ 1,606,423 $ 3,825,462 $ 234,744,541 Construction and land development 223,274 99,933 (22,116 ) 1,462 302,553 - 302,553 - 23,971,982 Residential 247,953 143,681 - - 391,634 - 391,634 44,254 60,271,255 Commercial 87,353 1,539 - 6,667 95,559 - 95,559 - 21,238,222 Consumer 7,027 (1,523 ) - - 5,504 - 5,504 - 467,592 Unallocated 25,907 34,318 - - 60,225 - 60,225 - - $ 2,458,911 $ 25,000 $ (22,116 ) $ 210,789 $ 2,672,584 $ 210,686 $ 2,461,898 $ 3,869,716 $ 340,693,592 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2018 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,867,397 $ 372,315 $ (690,000 ) $ 204,660 $ 1,754,372 $ - $ 1,754,372 $ 3,177,381 $ 235,656,768 Construction and land development 223,274 (78,496 ) (12,115 ) 63,711 196,374 - 196,374 - 18,265,505 Residential 247,953 153,673 - - 401,626 - 401,626 - 63,024,106 Commercial 87,353 6,090 - 9,167 102,610 - 102,610 - 23,323,073 Consumer 7,027 3,401 - - 10,428 - 10,428 - 494,009 Unallocated 25,907 18,017 - - 43,924 - 43,924 - - $ 2,458,911 $ 475,000 $ (702,115 ) $ 277,538 $ 2,509,334 $ - $ 2,509,334 $ 3,177,381 $ 340,763,461 |
Note 5 - Lease Commitments
Note 5 - Lease Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 5. Lease Commitments The Company and its subsidiaries are obligated under operating lease for certain office premises. The following table shows operating lease right of use assets and operating lease liabilities as of September 30, 2019: Consolidated Balance Sheet classification September 30, 2019 Operating lease right of use asset Other assets $ 1,297,761 Operating lease liabilities Other liabilities $ 1,455,327 Operating lease cost included in occupancy expense in the statement of income for the three nine September 30, 2019 $50,630 $144,851, Future minimum payments under the agreements, including those option years for which the Company is reasonably certain to renew, are as follows: Year Amount 2019 $ 35,058 2020 141,680 2021 146,120 2022 150,707 2023 155,447 Thereafter 911,770 Total lease payments 1,540,782 Less imputed interest (85,455 ) Present value of operating lease liabilities $ 1,455,327 For operating leases as of September 30, 2019, 9.65 3.36%. three nine September 30, 2019, $39,500 $113,448, |
Note 6 - Capital Standards
Note 6 - Capital Standards | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | 6. Capital Standards Farmers and Merchants Bancshares, Inc. and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possible additional, discretionary actions by the regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Basel III Capital Rules became effective for the Bank on January 1, 2015 1 1 1 In connection with the adoption of the Basel III Capital Rules, the Bank elected to opt-out of the requirement to include accumulated other comprehensive income in Common Equity Tier 1 1 Under the revised prompt corrective action requirements, as of January 1, 2015, 1 6.5%; 1 8%; 10%; 1 5%. The implementation of the capital conservation buffer began on January 1, 2016, 0.625% four January 1, 2.5% January 1, 2019 not September 30, 2019, The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 The following table presents actual and required capital ratios as of September 30, 2019 December 31, 2018, September 30, 2019 December 31, 2018 Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized September 30, 2019 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 50,078 14.37 % $ 36,590 10.50 % $ 34,848 10.00 % Tier 1 capital (to risk-weighted assets) 47,532 13.64 % 29,621 8.50 % 27,878 8.00 % Common equity tier 1 (to risk- weighted assets) 47,532 13.64 % 24,393 7.00 % 22,651 6.50 % Tier 1 leverage (to average assets) 47,532 11.00 % 17,280 4.00 % 21,600 5.00 % Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 47,857 13.50 % $ 34,996 9.88 % $ 35,439 10.00 % Tier 1 capital (to risk-weighted assets) 45,348 12.80 % 27,908 7.88 % 28,351 8.00 % Common equity tier 1 (to risk- weighted assets) 45,348 12.80 % 22,593 6.38 % 23,036 6.50 % Tier 1 leverage (to average assets) 45,348 10.86 % 16,698 4.00 % 20,872 5.00 % To be categorized as well capitalized, the Bank must maintain ratios as set forth in the table. As of September 30, 2019, no The FDIC, through formal or informal agreement, has the authority to require an institution to maintain higher capital ratios than those provided by statute, to be categorized as well capitalized under the regulatory framework for prompt corrective action. |
Note 7 - Fair Value
Note 7 - Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 7. Fair Value Accounting standards define fair value as the price that would be received upon the sale of an asset or paid upon the transfer of a liability in an orderly transaction between market participants. The price in the principal market used to measure the fair value of the asset or liability is not The standards require the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. The standards establish a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1: ● Level 2: 1 not ● Level 3: The Company uses the following methods and significant assumptions to estimate the fair values of the following assets: ● Securities available for sale: The fair values of securities available for sale are determined by obtaining quoted prices from a nationally recognized securities pricing agent. If quoted market prices are not ● Other real estate owned (“OREO”): Nonrecurring fair value adjustments to OREO reflect full or partial write-downs that are based on the OREO’s observable market price or current appraised value of the real estate. Since the market for OREO is not 3. third 10% ● Impaired loans: Nonrecurring fair value adjustments to impaired loans reflect full or partial write-downs and reserves that are based on the impaired loan’s observable market price or current appraised value of the collateral. Since the market for impaired loans is not 3. third 10% The following table summarizes financial assets measured at fair value on a recurring and nonrecurring basis as of September 30, 2019 December 31, 2018, Carrying Value: Level 1 Level 2 Level 3 Total September 30, 2019 Recurring Available for sale securities State and municipal $ - $ 1,390,225 $ - $ 1,390,225 SBA pools - 2,337,438 - 2,337,438 Mortgage-backed securities - 36,373,492 - 36,373,492 $ - $ 40,101,155 $ - $ 40,101,155 Equity security at fair value Mutual fund $ 531,714 $ - $ - $ 531,714 Nonrecurring Impaired loans - - 2,148,480 2,148,480 December 31, 2018 Recurring Available for sale securities State and municipal $ - $ 1,506,505 $ - $ 1,506,505 SBA pools - 2,719,372 - 2,719,372 Mortgage-backed securities - 22,366,114 - 22,366,114 $ - $ 26,591,991 $ - $ 26,591,991 Equity security at fair value Mutual fund $ 503,827 $ - $ - $ 503,827 Nonrecurring Other real estate owned $ - $ - $ 210,150 $ 210,150 Impaired loans - - 3,177,381 3,177,381 The estimated fair value of financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of the valuation inputs were as follows: September 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 2 inputs Securities held to maturity $ 19,509,907 $ 20,154,081 $ 18,127,067 $ 18,033,093 Mortgage loans held for sale 1,538,574 1,558,493 573,638 582,248 Federal Home Loan Bank stock 503,700 503,700 575,800 575,800 Level 3 inputs Loans, net 336,748,866 335,928,611 340,900,635 337,385,842 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 58,298,592 $ 58,298,592 $ 62,717,520 $ 62,717,520 Securities sold under repurchase agreements 7,583,212 7,583,212 11,012,000 11,012,000 Level 2 inputs Interest-bearing deposits 313,897,923 314,857,923 291,995,483 281,761,483 Federal Home Loan Bank advances 1,000,000 1,000,000 3,000,000 2,971,000 The fair value of mortgage loans held for sale is determined by the expected sales price. Beginning in the first 2018, 2016 01, first 2018. 3 The fair values of interest-bearing checking, savings, and money market deposit accounts are equal to their carrying amounts. The fair values of fixed-maturity time deposits are estimated based on interest rates currently offered for deposits of similar remaining maturities. The fair value of credit commitments are considered to be the same as the contractual amounts, and are not |
Note 8 - Earnings Per Share
Note 8 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8. Earnings per Share Basic earnings per share is determined by dividing net income available to stockholders by the weighted-average number of shares of common stock outstanding during the period and does not three nine September 30, 2019 2018. no three nine September 30, 2019 2018. On September 16, 2019, 75% October 31, 2019 Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net income $ 1,177,910 $ 1,308,688 $ 3,500,018 $ 3,575,871 Weighted average shares outstanding 2,959,411 2,931,602 2,950,122 2,923,102 Earnings per share - basic and diluted $ 0.40 $ 0.45 $ 1.19 $ 1.22 |
Note 9 - Retirement Plans
Note 9 - Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 9. Retirement Plans The Company has a profit sharing plan qualifying under Section 401 21 six 4% may 100% $46,398 $45,130 three September 30, 2019 2018, $148,991 $133,118 nine September 30, 2019 2018, The Company has entered into agreements with 12 $1,468 $1,418 three September 30, 2019 2018, $4,405 $4,255 nine September 30, 2019 2018, The Company adopted supplemental executive retirement plans for three $30,600 $60,457 three September 30, 2019 2018, $91,800 $180,457 nine September 30, 2019 2018, Retirement plan expenses are included in employee benefits on the consolidated statements of income. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In February 2016, No. 2016 02, 841 2016 02, 606, December 15, 2018, not may not 2016 02, January 1, 2019, $1,400,855, $1,527,019, $91,447 $34,717 In June 2016, 2016 13, December 15, 2019, July 2019, 2023 2019. third In August 2018, 2018 13, 820 2018 13 820. no 2018 13 January 1, 2020, not In August 2018, 2018 14, 715 20 2018 14 no 2018 14 January 1, 2021, not In August 2018, 2018 15, 350 40 2018 15 2015 05, April 2015. 2018 15 2018 15 not 2018 15 January 1, 2020, not |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued. No On September 16, 2019, 75% October 31, 2019 October 4, 2019 8, |
Note 3 - Investment Securities
Note 3 - Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Marketable Securities [Table Text Block] | Amortized Unrealized Unrealized Fair September 30, 2019 cost gains losses value Available for sale State and municipal $ 1,378,761 $ 11,464 $ - $ 1,390,225 SBA pools 2,388,707 - 51,269 2,337,438 Mortgage-backed securities 36,158,480 351,762 136,750 36,373,492 $ 39,925,948 $ 363,226 $ 188,019 $ 40,101,155 Held to maturity State and municipal $ 19,509,907 $ 644,737 $ 563 $ 20,154,081 Amortized Unrealized Unrealized Fair December 31, 2018 cost gains losses value Available for sale State and municipal $ 1,506,011 $ 11,161 $ 10,667 $ 1,506,505 SBA pools 2,779,411 - 60,039 2,719,372 Mortgage-backed securities 23,090,618 33,594 758,098 22,366,114 $ 27,376,040 $ 44,755 $ 828,804 $ 26,591,991 Held to maturity State and municipal $ 18,127,067 $ 115,220 $ 209,194 $ 18,033,093 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Available for Sale Held to Maturity Amortized Fair Amortized Fair September 30, 2019 cost value cost value Within one year $ - $ - $ 258,014 $ 263,101 Over one to five years 258,761 260,187 330,000 330,611 Over five to ten years 1,120,000 1,130,038 2,948,579 3,029,811 Over ten years - - 15,973,314 16,530,558 1,378,761 1,390,225 19,509,907 20,154,081 Mortgage-backed securities and SBA pools, due in monthly installments 38,547,187 38,710,930 - - $ 39,925,948 $ 40,101,155 $ 19,509,907 $ 20,154,081 December 31, 2018 Within one year $ 375,000 $ 375,653 $ 1,009,284 $ 1,011,165 Over one to five years 260,587 249,920 590,522 598,528 Over five to ten years 870,424 880,932 1,858,695 1,876,364 Over ten years - - 14,668,566 14,547,036 1,506,011 1,506,505 18,127,067 18,033,093 Mortgage-backed securities and SBA pools, due in monthly installments 25,870,029 25,085,486 - - $ 27,376,040 $ 26,591,991 $ 18,127,067 $ 18,033,093 |
Schedule of Unrealized Loss on Investments [Table Text Block] | September 30, 2019 Less than 12 months 12 months or more Total Description of investments Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss State and municipal $ - $ - $ 252,000 $ 563 $ 252,000 $ 563 SBA pools - - 2,337,438 51,269 2,337,438 51,269 Mortgage-backed securities 7,726,619 41,199 8,286,586 95,551 16,013,205 136,750 Total $ 7,726,619 $ 41,199 $ 10,876,024 $ 147,383 $ 18,602,643 $ 188,582 December 31, 2018 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Description of investments Fair value losses Fair value losses Fair value losses State and municipal $ 3,435,052 $ 42,080 $ 3,740,467 $ 177,781 $ 7,175,519 $ 219,861 SBA pools 443,288 6,707 2,276,084 53,332 2,719,372 60,039 Mortgage-backed securities 596,002 6,631 17,770,790 751,467 18,366,792 758,098 Total $ 4,474,342 $ 55,418 $ 23,787,341 $ 982,580 $ 28,261,683 $ 1,037,998 |
Note 4 - Loans (Tables)
Note 4 - Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, 2019 2018 Real estate: Commercial $ 233,140,797 $ 238,834,149 Construction and land development 16,132,994 18,265,505 Residential 69,049,698 63,024,106 Commercial 21,134,598 23,323,073 Consumer 309,902 494,009 339,767,989 343,940,842 Less: Allowance for loan losses 2,546,114 2,509,334 Deferred origination fees net of costs 473,009 530,873 $ 336,748,866 $ 340,900,635 |
Financing Receivable, Nonaccrual [Table Text Block] | September 30, December 31, 2019 2018 Commercial real estate $ - $ 988,811 |
Financing Receivable, Past Due [Table Text Block] | 90 Days Past Due 90 30 - 59 Days 60 - 89 Days or More Total Total Days or More Past Due Past Due Past Due Past Due Current Loans and Accruing September 30, 2019 Real estate: Commercial $ - $ - $ - $ - $ 233,140,797 $ 233,140,797 $ - Construction and land development - - - - 16,132,994 16,132,994 - Residential 31,857 - - 31,857 69,017,841 69,049,698 - Commercial - - - - 21,134,598 21,134,598 - Consumer - - - - 309,902 309,902 - Total $ 31,857 $ - $ - $ 31,857 $ 339,736,132 $ 339,767,989 $ - December 31, 2018 Real estate: Commercial $ - $ - $ 988,811 $ 988,811 $ 237,845,338 $ 238,834,149 $ - Construction and land development - - - - 18,265,505 18,265,505 - Residential - - 10,507 10,507 63,013,599 63,024,106 10,507 Commercial - 25,000 - 25,000 23,298,073 23,323,073 - Consumer - - - - 494,009 494,009 - Total $ - $ 25,000 $ 999,318 $ 1,024,318 $ 342,916,524 $ 343,940,842 $ 10,507 |
Impaired Financing Receivables [Table Text Block] | Unpaid Recorded Recorded Contractual Investment Investment Total Average Principal With No With Recorded Related Recorded Balance Allowance Allowance Investment Allowance Investment September 30, 2019 Real estate: Commercial $ 2,097,690 $ 2,097,690 $ - $ 2,097,690 $ - $ 2,610,536 Residential 50,790 50,790 - 50,790 - 25,395 $ 2,148,480 $ 2,148,480 $ - $ 2,148,480 $ - $ 2,635,931 December 31, 2018 Real estate: Commercial $ 3,813,381 $ 3,123,381 $ - $ 3,123,381 $ - $ 4,153,282 Residential 54,000 54,000 - 54,000 - 27,000 $ 3,867,381 $ 3,177,381 $ - $ 3,177,381 $ - $ 4,180,282 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Above Pass Special September 30, 2019 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 3,056,485 $ 90,131,537 $ 108,685,401 $ 22,306,448 $ - $ 8,960,926 $ - $ 233,140,797 Construction and land development - 202,500 4,820,218 8,187,688 2,922,588 - - - 16,132,994 Residential 37,425 1,572,805 24,944,785 33,582,371 6,372,666 - 2,539,646 - 69,049,698 Commercial 192,622 37,519 9,850,802 8,138,156 2,915,499 - - - 21,134,598 Consumer 2,659 102,472 98,925 63,494 20,000 - 440 21,912 309,902 $ 232,706 $ 4,971,781 $ 129,846,267 $ 158,657,110 $ 34,537,201 $ - $ 11,501,012 $ 21,912 $ 339,767,989 Above Pass Special December 31, 2018 Excellent average Average Acceptable watch mention Substandard Doubtful Total Real estate: Commercial $ - $ 3,632,231 $ 101,633,803 $ 104,454,812 $ 20,356,642 $ - $ 8,756,661 $ - $ 238,834,149 Construction and land development - - 8,190,212 7,871,642 2,203,651 - - - 18,265,505 Residential 35,926 1,178,899 26,856,131 30,169,305 2,093,825 - 2,690,020 - 63,024,106 Commercial 977,054 24,180 12,373,503 7,130,122 2,818,214 - - - 23,323,073 Consumer 3,668 80,670 266,704 63,160 - - 1,340 78,467 494,009 $ 1,016,648 $ 4,915,980 $ 149,320,353 $ 149,689,041 $ 27,472,332 $ - $ 11,448,021 $ 78,467 $ 343,940,842 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: September 30, 2019 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,754,372 $ (47,253 ) $ - $ 19,689 $ 1,726,808 $ - $ 1,726,808 $ 2,097,690 $ 231,043,107 Construction and land development 196,374 (34,932 ) - 10,425 171,867 - 171,867 - 16,132,994 Residential 401,626 45,242 - - 446,868 - 446,868 50,790 68,998,908 Commercial 102,610 (14,180 ) - 6,666 95,096 - 95,096 - 21,134,598 Consumer 10,428 (5,521 ) - - 4,907 - 4,907 - 309,902 Unallocated 43,924 56,644 - - 100,568 - 100,568 - - $ 2,509,334 $ - $ - $ 36,780 $ 2,546,114 $ - $ 2,546,114 $ 2,148,480 $ 337,619,509 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: September 30, 2018 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,867,397 $ (252,948 ) $ - $ 202,660 $ 1,817,109 $ 210,686 $ 1,606,423 $ 3,825,462 $ 234,744,541 Construction and land development 223,274 99,933 (22,116 ) 1,462 302,553 - 302,553 - 23,971,982 Residential 247,953 143,681 - - 391,634 - 391,634 44,254 60,271,255 Commercial 87,353 1,539 - 6,667 95,559 - 95,559 - 21,238,222 Consumer 7,027 (1,523 ) - - 5,504 - 5,504 - 467,592 Unallocated 25,907 34,318 - - 60,225 - 60,225 - - $ 2,458,911 $ 25,000 $ (22,116 ) $ 210,789 $ 2,672,584 $ 210,686 $ 2,461,898 $ 3,869,716 $ 340,693,592 Allowance for loan losses Outstanding loan Provision ending balance evaluated balances evaluated Beginning for loan Charge Ending for impairment: for impairment: December 31, 2018 balance losses offs Recoveries balance Individually Collectively Individually Collectively Real estate: Commercial $ 1,867,397 $ 372,315 $ (690,000 ) $ 204,660 $ 1,754,372 $ - $ 1,754,372 $ 3,177,381 $ 235,656,768 Construction and land development 223,274 (78,496 ) (12,115 ) 63,711 196,374 - 196,374 - 18,265,505 Residential 247,953 153,673 - - 401,626 - 401,626 - 63,024,106 Commercial 87,353 6,090 - 9,167 102,610 - 102,610 - 23,323,073 Consumer 7,027 3,401 - - 10,428 - 10,428 - 494,009 Unallocated 25,907 18,017 - - 43,924 - 43,924 - - $ 2,458,911 $ 475,000 $ (702,115 ) $ 277,538 $ 2,509,334 $ - $ 2,509,334 $ 3,177,381 $ 340,763,461 |
Note 5 - Lease Commitments (Tab
Note 5 - Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Components of Lease Assets and Liabilities [Table Text Block] | Consolidated Balance Sheet classification September 30, 2019 Operating lease right of use asset Other assets $ 1,297,761 Operating lease liabilities Other liabilities $ 1,455,327 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year Amount 2019 $ 35,058 2020 141,680 2021 146,120 2022 150,707 2023 155,447 Thereafter 911,770 Total lease payments 1,540,782 Less imputed interest (85,455 ) Present value of operating lease liabilities $ 1,455,327 |
Note 6 - Capital Standards (Tab
Note 6 - Capital Standards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized September 30, 2019 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 50,078 14.37 % $ 36,590 10.50 % $ 34,848 10.00 % Tier 1 capital (to risk-weighted assets) 47,532 13.64 % 29,621 8.50 % 27,878 8.00 % Common equity tier 1 (to risk- weighted assets) 47,532 13.64 % 24,393 7.00 % 22,651 6.50 % Tier 1 leverage (to average assets) 47,532 11.00 % 17,280 4.00 % 21,600 5.00 % Minimum Capital Adequacy To Be Well (Dollars in thousands) Actual Phase-In Schedule Capitalized December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 47,857 13.50 % $ 34,996 9.88 % $ 35,439 10.00 % Tier 1 capital (to risk-weighted assets) 45,348 12.80 % 27,908 7.88 % 28,351 8.00 % Common equity tier 1 (to risk- weighted assets) 45,348 12.80 % 22,593 6.38 % 23,036 6.50 % Tier 1 leverage (to average assets) 45,348 10.86 % 16,698 4.00 % 20,872 5.00 % |
Note 7 - Fair Value (Tables)
Note 7 - Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Carrying Value: Level 1 Level 2 Level 3 Total September 30, 2019 Recurring Available for sale securities State and municipal $ - $ 1,390,225 $ - $ 1,390,225 SBA pools - 2,337,438 - 2,337,438 Mortgage-backed securities - 36,373,492 - 36,373,492 $ - $ 40,101,155 $ - $ 40,101,155 Equity security at fair value Mutual fund $ 531,714 $ - $ - $ 531,714 Nonrecurring Impaired loans - - 2,148,480 2,148,480 December 31, 2018 Recurring Available for sale securities State and municipal $ - $ 1,506,505 $ - $ 1,506,505 SBA pools - 2,719,372 - 2,719,372 Mortgage-backed securities - 22,366,114 - 22,366,114 $ - $ 26,591,991 $ - $ 26,591,991 Equity security at fair value Mutual fund $ 503,827 $ - $ - $ 503,827 Nonrecurring Other real estate owned $ - $ - $ 210,150 $ 210,150 Impaired loans - - 3,177,381 3,177,381 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | September 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets Level 2 inputs Securities held to maturity $ 19,509,907 $ 20,154,081 $ 18,127,067 $ 18,033,093 Mortgage loans held for sale 1,538,574 1,558,493 573,638 582,248 Federal Home Loan Bank stock 503,700 503,700 575,800 575,800 Level 3 inputs Loans, net 336,748,866 335,928,611 340,900,635 337,385,842 Financial liabilities Level 1 inputs Noninterest-bearing deposits $ 58,298,592 $ 58,298,592 $ 62,717,520 $ 62,717,520 Securities sold under repurchase agreements 7,583,212 7,583,212 11,012,000 11,012,000 Level 2 inputs Interest-bearing deposits 313,897,923 314,857,923 291,995,483 281,761,483 Federal Home Loan Bank advances 1,000,000 1,000,000 3,000,000 2,971,000 |
Note 8 - Earnings Per Share (Ta
Note 8 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Net income $ 1,177,910 $ 1,308,688 $ 3,500,018 $ 3,575,871 Weighted average shares outstanding 2,959,411 2,931,602 2,950,122 2,923,102 Earnings per share - basic and diluted $ 0.40 $ 0.45 $ 1.19 $ 1.22 |
Note 1 - Principles of Consol_2
Note 1 - Principles of Consolidation (Details Textual) | 9 Months Ended |
Sep. 30, 2019 | |
First Community Bankers Insurance Co., LLC [Member] | |
Percentage of Ownership | 100.00% |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation (Details Textual) - USD ($) | Sep. 16, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Lease, Liability, Total | $ 1,455,327 | |||
Deferred Income Tax Assets, Net, Total | $ 950,207 | $ 1,179,454 | ||
Stock Dividends Payable, Percent | 75.00% | |||
Dividends Payable, Date to be Paid | Oct. 31, 2019 | |||
Dividends Payable, Date of Record | Oct. 4, 2019 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 1,400,855 | |||
Operating Lease, Liability, Total | 1,527,019 | |||
Deferred Income Tax Assets, Net, Total | 34,717 | |||
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 91,447 |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities (Details Textual) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Security Owned and Pledged as Collateral, Fair Value, Total | $ 7,465,493 | $ 11,706,765 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities - Investments in Debt Securities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized cost, available for sale | $ 39,925,948 | $ 27,376,040 |
Unrealized gains, available for sale | 363,226 | 44,755 |
Unrealized losses, available for sale | 188,019 | 828,804 |
Fair value, available for sale | 40,101,155 | 26,591,991 |
Amortized cost, held to maturity | 19,509,907 | 18,127,067 |
Fair value, held to maturity | 20,154,081 | 18,033,093 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized cost, available for sale | 1,378,761 | 1,506,011 |
Unrealized gains, available for sale | 11,464 | 11,161 |
Unrealized losses, available for sale | 10,667 | |
Fair value, available for sale | 1,390,225 | 1,506,505 |
Amortized cost, held to maturity | 19,509,907 | 18,127,067 |
Unrealized gains, held to maturity | 644,737 | 115,220 |
Unrealized losses, held to maturity | 563 | 209,194 |
Fair value, held to maturity | 20,154,081 | 18,033,093 |
SBA Pools [Member] | ||
Amortized cost, available for sale | 2,388,707 | 2,779,411 |
Unrealized gains, available for sale | ||
Unrealized losses, available for sale | 51,269 | 60,039 |
Fair value, available for sale | 2,337,438 | 2,719,372 |
Collateralized Mortgage Backed Securities [Member] | ||
Amortized cost, available for sale | 36,158,480 | 23,090,618 |
Unrealized gains, available for sale | 351,762 | 33,594 |
Unrealized losses, available for sale | 136,750 | 758,098 |
Fair value, available for sale | $ 36,373,492 | $ 22,366,114 |
Note 3 - Investment Securitie_4
Note 3 - Investment Securities - Contractual Maturities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Available for Sale Amortized cost, Within one year | $ 375,000 | |
Available for Sale Fair value, Within one year | 375,653 | |
Held to Maturity Amortized cost, Within one year | 258,014 | 1,009,284 |
Held to Maturity Fair value, Within one year | 263,101 | 1,011,165 |
Available for Sale Amortized cost, Over one to five years | 258,761 | 260,587 |
Available for Sale Fair value,Over one to five years | 260,187 | 249,920 |
Held to Maturity Amortized cost, Over one to five years | 330,000 | 590,522 |
Held to Maturity Fair value, Over one to five years | 330,611 | 598,528 |
Available for Sale Amortized cost, Over five to ten years | 1,120,000 | 870,424 |
Available for Sale Fair value, Over five to ten years | 1,130,038 | 880,932 |
Held to Maturity Amortized cost, Over five to ten years | 2,948,579 | 1,858,695 |
Held to Maturity Fair value, Over five to ten years | 3,029,811 | 1,876,364 |
Available for Sale Amortized cost, Over ten years | ||
Available for Sale Fair value, Over ten years | ||
Held to Maturity Amortized cost, Over ten years | 15,973,314 | 14,668,566 |
Held to Maturity Fair value, Over ten years | 16,530,558 | 14,547,036 |
Available for Sale Amortized cost, total maturity | 1,378,761 | 1,506,011 |
Available for Sale Fair value, total maturity | 1,390,225 | 1,506,505 |
Held to Maturity Amortized cost, total maturity | 19,509,907 | 18,127,067 |
Held to Maturity Fair value, total maturity | 20,154,081 | 18,033,093 |
Available for Sale Amortized cost, due in monthly installments | 38,547,187 | 25,870,029 |
Available for Sale Fair value, due in monthly installments | 38,710,930 | 25,085,486 |
Held to Maturity Amortized cost, due in monthly installments | ||
Held to Maturity Fair value, due in monthly installments | ||
Available for Sale Amortized cost Total | 39,925,948 | 27,376,040 |
Available for Sale Fair value Total | 40,101,155 | 26,591,991 |
Held to Maturity Amortized cost Total | 19,509,907 | 18,127,067 |
Held to Maturity Fair value Total | $ 20,154,081 | $ 18,033,093 |
Note 3 - Investment Securitie_5
Note 3 - Investment Securities - Gross Unrealized Losses on Continuous Basis for Investment Securities (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Less than 12 months Fair value | $ 7,726,619 | $ 4,474,342 |
Less than 12 months Unrealized losses | 41,199 | 55,418 |
12 months or more Fair value | 10,876,024 | 23,787,341 |
12 months or more Unrealized losses | 147,383 | 982,580 |
Total Fair value | 18,602,643 | 28,261,683 |
Total Unrealized losses | 188,582 | 1,037,998 |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months Fair value | 3,435,052 | |
Less than 12 months Unrealized losses | 42,080 | |
12 months or more Fair value | 252,000 | 3,740,467 |
12 months or more Unrealized losses | 563 | 177,781 |
Total Fair value | 252,000 | 7,175,519 |
Total Unrealized losses | 563 | 219,861 |
SBA Pools [Member] | ||
Less than 12 months Fair value | 443,288 | |
Less than 12 months Unrealized losses | 6,707 | |
12 months or more Fair value | 2,337,438 | 2,276,084 |
12 months or more Unrealized losses | 51,269 | 53,332 |
Total Fair value | 2,337,438 | 2,719,372 |
Total Unrealized losses | 51,269 | 60,039 |
Collateralized Mortgage Backed Securities [Member] | ||
Less than 12 months Fair value | 7,726,619 | 596,002 |
Less than 12 months Unrealized losses | 41,199 | 6,631 |
12 months or more Fair value | 8,286,586 | 17,770,790 |
12 months or more Unrealized losses | 95,551 | 751,467 |
Total Fair value | 16,013,205 | 18,366,792 |
Total Unrealized losses | $ 136,750 | $ 758,098 |
Note 4 - Loans (Details Textual
Note 4 - Loans (Details Textual) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable, Number of Loans, Nonaccrual Status | 0 | ||
Impaired Financing Receivable, Related Allowance | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 22,116 | $ 702,115 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Number of Loans, Nonaccrual Status | 2 | ||
Financing Receivable, Nonaccrual | $ 988,811 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 115,168 | ||
Impaired Financing Receivable, Related Allowance | |||
Number of Loans Classified as TDR | 1 | 1 | |
Financing Receivable, Troubled Debt Restructuring | $ 2,097,690 | $ 2,134,570 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | 690,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans [Member] | |||
Impaired Financing Receivable, Related Allowance | 0 | ||
Allowance for Loan and Lease Losses Write-offs, Net, Total | 690,000 | ||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 15,299 | ||
Residential Portfolio Segment [Member] | |||
Impaired Financing Receivable, Related Allowance | |||
Number of Loans Classified as TDR | 1 | 1 | |
Financing Receivable, Troubled Debt Restructuring | $ 50,790 | $ 54,000 | |
Financing Receivable, Allowance for Credit Loss, Writeoff | |||
Financing Receivable, Troubled Debt Restructuring, Premodification | 54,000 | ||
Commercial Real Estate and Residential Loans Classified As TDR [Member] | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 0 | $ 0 |
Note 4 - Loans - Major Categori
Note 4 - Loans - Major Categories of Loans (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans | $ 339,767,989 | $ 343,940,842 |
Allowance for loan losses | 2,546,114 | 2,509,334 |
Deferred origination fees net of costs | 473,009 | 530,873 |
336,748,866 | 340,900,635 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans | 233,140,797 | 238,834,149 |
Construction and Land Development [Member] | ||
Loans | 16,132,994 | 18,265,505 |
Residential Portfolio Segment [Member] | ||
Loans | 69,049,698 | 63,024,106 |
Commercial Portfolio Segment [Member] | ||
Loans | 21,134,598 | 23,323,073 |
Consumer Portfolio Segment [Member] | ||
Loans | $ 309,902 | $ 494,009 |
Note 4 - Loans - Non-accrual Lo
Note 4 - Loans - Non-accrual Loans (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Commercial Real Estate Portfolio Segment [Member] | ||
Commercial real estate | $ 988,811 |
Note 4 - Loans - Past Due Loans
Note 4 - Loans - Past Due Loans (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans, past due | $ 31,857 | $ 1,024,318 |
Loans, current | 339,736,132 | 342,916,524 |
Loans | 339,767,989 | 343,940,842 |
Loans, 90 days past due and still accruing | 10,507 | |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 31,857 | |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 25,000 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | 999,318 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans, past due | 988,811 | |
Loans, current | 233,140,797 | 237,845,338 |
Loans | 233,140,797 | 238,834,149 |
Loans, 90 days past due and still accruing | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | ||
Commercial Real Estate Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | 988,811 | |
Construction and Land Development [Member] | ||
Loans, past due | ||
Loans, current | 16,132,994 | 18,265,505 |
Loans | 16,132,994 | 18,265,505 |
Loans, 90 days past due and still accruing | ||
Construction and Land Development [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | ||
Construction and Land Development [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | ||
Construction and Land Development [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | ||
Residential Portfolio Segment [Member] | ||
Loans, past due | 31,857 | 10,507 |
Loans, current | 69,017,841 | 63,013,599 |
Loans | 69,049,698 | 63,024,106 |
Loans, 90 days past due and still accruing | 10,507 | |
Residential Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 31,857 | |
Residential Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | ||
Residential Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | 10,507 | |
Commercial Portfolio Segment [Member] | ||
Loans, past due | 25,000 | |
Loans, current | 21,134,598 | 23,298,073 |
Loans | 21,134,598 | 23,323,073 |
Loans, 90 days past due and still accruing | ||
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | ||
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 25,000 | |
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due | ||
Consumer Portfolio Segment [Member] | ||
Loans, past due | ||
Loans, current | 309,902 | 494,009 |
Loans | 309,902 | 494,009 |
Loans, 90 days past due and still accruing | ||
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Loans, past due | ||
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Loans, past due | ||
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Loans, past due |
Note 4 - Loans - Impaired Loans
Note 4 - Loans - Impaired Loans (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Unpaid Contractual Principal Balance | $ 2,148,480 | $ 3,867,381 |
Recorded Investment With No Allowance | 2,148,480 | 3,177,381 |
Recorded Investment With Allowance | ||
Total Recorded Investment | 2,148,480 | 3,177,381 |
Related Allowance | ||
Average Recorded Investment | 2,635,931 | 4,180,282 |
Commercial Real Estate Portfolio Segment [Member] | ||
Unpaid Contractual Principal Balance | 2,097,690 | 3,813,381 |
Recorded Investment With No Allowance | 2,097,690 | 3,123,381 |
Recorded Investment With Allowance | ||
Total Recorded Investment | 2,097,690 | 3,123,381 |
Related Allowance | ||
Average Recorded Investment | 2,610,536 | 4,153,282 |
Residential Portfolio Segment [Member] | ||
Unpaid Contractual Principal Balance | 50,790 | 54,000 |
Recorded Investment With No Allowance | 50,790 | 54,000 |
Recorded Investment With Allowance | ||
Total Recorded Investment | 50,790 | 54,000 |
Related Allowance | ||
Average Recorded Investment | $ 25,395 | $ 27,000 |
Note 4 - Loans - Loans by Credi
Note 4 - Loans - Loans by Credit Grade (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Loans | $ 339,767,989 | $ 343,940,842 |
Excellent [Member] | ||
Loans | 232,706 | 1,016,648 |
Above Average [Member] | ||
Loans | 4,971,781 | 4,915,980 |
Average [Member] | ||
Loans | 129,846,267 | 149,320,353 |
Acceptable [Member] | ||
Loans | 158,657,110 | 149,689,041 |
Pass [Member] | ||
Loans | 34,537,201 | 27,472,332 |
Special Mention [Member] | ||
Loans | ||
Substandard [Member] | ||
Loans | 11,501,012 | 11,448,021 |
Doubtful [Member] | ||
Loans | 21,912 | 78,467 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans | 233,140,797 | 238,834,149 |
Commercial Real Estate Portfolio Segment [Member] | Excellent [Member] | ||
Loans | ||
Commercial Real Estate Portfolio Segment [Member] | Above Average [Member] | ||
Loans | 3,056,485 | 3,632,231 |
Commercial Real Estate Portfolio Segment [Member] | Average [Member] | ||
Loans | 90,131,537 | 101,633,803 |
Commercial Real Estate Portfolio Segment [Member] | Acceptable [Member] | ||
Loans | 108,685,401 | 104,454,812 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Loans | 22,306,448 | 20,356,642 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | ||
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 8,960,926 | 8,756,661 |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Construction and Land Development [Member] | ||
Loans | 16,132,994 | 18,265,505 |
Construction and Land Development [Member] | Excellent [Member] | ||
Loans | ||
Construction and Land Development [Member] | Above Average [Member] | ||
Loans | 202,500 | |
Construction and Land Development [Member] | Average [Member] | ||
Loans | 4,820,218 | 8,190,212 |
Construction and Land Development [Member] | Acceptable [Member] | ||
Loans | 8,187,688 | 7,871,642 |
Construction and Land Development [Member] | Pass [Member] | ||
Loans | 2,922,588 | 2,203,651 |
Construction and Land Development [Member] | Special Mention [Member] | ||
Loans | ||
Construction and Land Development [Member] | Substandard [Member] | ||
Loans | ||
Construction and Land Development [Member] | Doubtful [Member] | ||
Loans | ||
Residential Portfolio Segment [Member] | ||
Loans | 69,049,698 | 63,024,106 |
Residential Portfolio Segment [Member] | Excellent [Member] | ||
Loans | 37,425 | 35,926 |
Residential Portfolio Segment [Member] | Above Average [Member] | ||
Loans | 1,572,805 | 1,178,899 |
Residential Portfolio Segment [Member] | Average [Member] | ||
Loans | 24,944,785 | 26,856,131 |
Residential Portfolio Segment [Member] | Acceptable [Member] | ||
Loans | 33,582,371 | 30,169,305 |
Residential Portfolio Segment [Member] | Pass [Member] | ||
Loans | 6,372,666 | 2,093,825 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | ||
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 2,539,646 | 2,690,020 |
Residential Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Commercial Portfolio Segment [Member] | ||
Loans | 21,134,598 | 23,323,073 |
Commercial Portfolio Segment [Member] | Excellent [Member] | ||
Loans | 192,622 | 977,054 |
Commercial Portfolio Segment [Member] | Above Average [Member] | ||
Loans | 37,519 | 24,180 |
Commercial Portfolio Segment [Member] | Average [Member] | ||
Loans | 9,850,802 | 12,373,503 |
Commercial Portfolio Segment [Member] | Acceptable [Member] | ||
Loans | 8,138,156 | 7,130,122 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Loans | 2,915,499 | 2,818,214 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | ||
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Loans | ||
Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Consumer Portfolio Segment [Member] | ||
Loans | 309,902 | 494,009 |
Consumer Portfolio Segment [Member] | Excellent [Member] | ||
Loans | 2,659 | 3,668 |
Consumer Portfolio Segment [Member] | Above Average [Member] | ||
Loans | 102,472 | 80,670 |
Consumer Portfolio Segment [Member] | Average [Member] | ||
Loans | 98,925 | 266,704 |
Consumer Portfolio Segment [Member] | Acceptable [Member] | ||
Loans | 63,494 | 63,160 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Loans | 20,000 | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Loans | 440 | 1,340 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | $ 21,912 | $ 78,467 |
Note 4 - Loans - Allowance for
Note 4 - Loans - Allowance for Loan Losses (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Beginning balance | $ 2,509,334 | $ 2,458,911 | $ 2,458,911 |
Provision for loan losses | 25,000 | 475,000 | |
Charge offs | (22,116) | (702,115) | |
Recoveries | 36,780 | 210,789 | 277,538 |
Ending balance | 2,546,114 | 2,672,584 | 2,509,334 |
Allowance for loan losses, individually | 210,686 | ||
Allowance for loan losses, collectively | 2,546,114 | 2,461,898 | 2,509,334 |
Outstanding loan, individually | 2,148,480 | 3,869,716 | 3,177,381 |
Outstanding loan, collectively | 337,619,509 | 340,693,592 | 340,763,461 |
Commercial Real Estate Portfolio Segment [Member] | |||
Beginning balance | 1,754,372 | 1,867,397 | 1,867,397 |
Provision for loan losses | (47,253) | (252,948) | 372,315 |
Charge offs | (690,000) | ||
Recoveries | 19,689 | 202,660 | 204,660 |
Ending balance | 1,726,808 | 1,817,109 | 1,754,372 |
Allowance for loan losses, individually | 210,686 | ||
Allowance for loan losses, collectively | 1,726,808 | 1,606,423 | 1,754,372 |
Outstanding loan, individually | 2,097,690 | 3,825,462 | 3,177,381 |
Outstanding loan, collectively | 231,043,107 | 234,744,541 | 235,656,768 |
Construction and Land Development [Member] | |||
Beginning balance | 196,374 | 223,274 | 223,274 |
Provision for loan losses | (34,932) | 99,933 | (78,496) |
Charge offs | (22,116) | (12,115) | |
Recoveries | 10,425 | 1,462 | 63,711 |
Ending balance | 171,867 | 302,553 | 196,374 |
Allowance for loan losses, individually | |||
Allowance for loan losses, collectively | 171,867 | 302,553 | 196,374 |
Outstanding loan, individually | |||
Outstanding loan, collectively | 16,132,994 | 23,971,982 | 18,265,505 |
Residential Portfolio Segment [Member] | |||
Beginning balance | 401,626 | 247,953 | 247,953 |
Provision for loan losses | 45,242 | 143,681 | 153,673 |
Charge offs | |||
Recoveries | |||
Ending balance | 446,868 | 391,634 | 401,626 |
Allowance for loan losses, individually | |||
Allowance for loan losses, collectively | 446,868 | 391,634 | 401,626 |
Outstanding loan, individually | 50,790 | 44,254 | |
Outstanding loan, collectively | 68,998,908 | 60,271,255 | 63,024,106 |
Commercial Portfolio Segment [Member] | |||
Beginning balance | 102,610 | 87,353 | 87,353 |
Provision for loan losses | (14,180) | 1,539 | 6,090 |
Charge offs | |||
Recoveries | 6,666 | 6,667 | 9,167 |
Ending balance | 95,096 | 95,559 | 102,610 |
Allowance for loan losses, individually | |||
Allowance for loan losses, collectively | 95,096 | 95,559 | 102,610 |
Outstanding loan, individually | |||
Outstanding loan, collectively | 21,134,598 | 21,238,222 | 23,323,073 |
Consumer Portfolio Segment [Member] | |||
Beginning balance | 10,428 | 7,027 | 7,027 |
Provision for loan losses | (5,521) | (1,523) | 3,401 |
Charge offs | |||
Recoveries | |||
Ending balance | 4,907 | 5,504 | 10,428 |
Allowance for loan losses, individually | |||
Allowance for loan losses, collectively | 4,907 | 5,504 | 10,428 |
Outstanding loan, individually | |||
Outstanding loan, collectively | 309,902 | 467,592 | 494,009 |
Unallocated Financing Receivables [Member] | |||
Beginning balance | 43,924 | 25,907 | 25,907 |
Provision for loan losses | 56,644 | 34,318 | 18,017 |
Charge offs | |||
Recoveries | |||
Ending balance | 100,568 | 60,225 | 43,924 |
Allowance for loan losses, individually | |||
Allowance for loan losses, collectively | 100,568 | 60,225 | 43,924 |
Outstanding loan, individually | |||
Outstanding loan, collectively |
Note 5 - Lease Commitments (Det
Note 5 - Lease Commitments (Details Textual) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Operating Lease, Cost | $ 50,630 | $ 144,851 |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 237 days | 9 years 237 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.36% | 3.36% |
Operating Lease, Payments | $ 39,500 | $ 113,448 |
Note 5 - Lease Commitments - Op
Note 5 - Lease Commitments - Operating Lease Assets and Liabilities (Details) | Sep. 30, 2019USD ($) |
Operating Lease, Liability, Total | $ 1,455,327 |
Other Assets [Member] | |
Operating Lease, Right-of-Use Asset | 1,297,761 |
Other Liabilities [Member] | |
Operating Lease, Liability, Total | $ 1,455,327 |
Note 5 - Lease Commitments - _2
Note 5 - Lease Commitments - Operating Lease Liabilities (Details) | Sep. 30, 2019USD ($) |
2019 | $ 35,058 |
2020 | 141,680 |
2021 | 146,120 |
2022 | 150,707 |
2023 | 155,447 |
Thereafter | 911,770 |
Total lease payments | 1,540,782 |
Less imputed interest | (85,455) |
Operating Lease, Liability, Total | $ 1,455,327 |
Note 6 - Capital Standards (Det
Note 6 - Capital Standards (Details Textual) | Sep. 30, 2019 | Dec. 31, 2018 |
Common Equity Tier One Capital Required to be Well Capitalized Ratio | 6.50% | 6.50% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Note 6 - Capital Standards - Ca
Note 6 - Capital Standards - Capital Requirements (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Capital | $ 50,078 | $ 47,857 |
Capital to Risk Weighted Assets | 14.37% | 13.50% |
Capital Required for Capital Adequacy | $ 36,590 | $ 34,996 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.88% |
Capital Required to be Well Capitalized | $ 34,848 | $ 35,439 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | $ 47,532 | $ 45,348 |
Tier One Risk Based Capital to Risk Weighted Assets | 13.64% | 12.80% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 29,621 | $ 27,908 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.88% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 27,878 | $ 28,351 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 47,532 | $ 45,348 |
Common Equity Tier One Capital Ratio | 13.64% | 12.80% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 24,393 | $ 22,593 |
Common Equity Tier One Capital Required for Capital Adequacy Ratio | 7.00% | 6.38% |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 22,651 | $ 23,036 |
Common Equity Tier One Capital Required to be Well Capitalized Ratio | 6.50% | 6.50% |
Tier One Leverage Capital | $ 47,532 | $ 45,348 |
Tier One Leverage Capital to Average Assets | 11.00% | 10.86% |
Tier One Leverage Capital Required for Capital Adequacy | $ 17,280 | $ 16,698 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 21,600 | $ 20,872 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Note 7 - Fair Value (Details Te
Note 7 - Fair Value (Details Textual) | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate Owned [Member] | |
Expected Sales Costs to Appraised Value, Percentage | 10.00% |
Impaired Loans [Member] | |
Expected Sales Costs to Appraised Value, Percentage | 10.00% |
Note 7 - Fair Value - Summarize
Note 7 - Fair Value - Summarizes Financial Assets Measured at Fair Value (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair value, available for sale | $ 40,101,155 | $ 26,591,991 |
Equity security at fair value | 531,714 | 503,827 |
Mutual fund | 531,714 | 503,827 |
Fair Value, Recurring [Member] | ||
Fair value, available for sale | 40,101,155 | 26,591,991 |
Equity security at fair value | 531,714 | |
Mutual fund | 531,714 | |
Fair Value, Nonrecurring [Member] | ||
Impaired loans | 2,148,480 | 3,177,381 |
Other real estate owned | 210,150 | |
Fair Value, Inputs, Level 1 [Member] | ||
Equity security at fair value | 503,827 | |
Mutual fund | 503,827 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
Equity security at fair value | 531,714 | |
Mutual fund | 531,714 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member] | ||
Impaired loans | ||
Other real estate owned | ||
Fair Value, Inputs, Level 2 [Member] | ||
Equity security at fair value | ||
Mutual fund | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 40,101,155 | 26,591,991 |
Equity security at fair value | ||
Mutual fund | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member] | ||
Impaired loans | ||
Other real estate owned | ||
Fair Value, Inputs, Level 3 [Member] | ||
Equity security at fair value | ||
Mutual fund | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
Equity security at fair value | ||
Mutual fund | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Impaired loans | 2,148,480 | 3,177,381 |
Other real estate owned | 210,150 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair value, available for sale | 1,390,225 | 1,506,505 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 1,390,225 | 1,506,505 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 1,390,225 | 1,506,505 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
SBA Pools [Member] | ||
Fair value, available for sale | 2,337,438 | 2,719,372 |
SBA Pools [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 2,337,438 | 2,719,372 |
SBA Pools [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
SBA Pools [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 2,337,438 | 2,719,372 |
SBA Pools [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
Collateralized Mortgage Backed Securities [Member] | ||
Fair value, available for sale | 36,373,492 | 22,366,114 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 36,373,492 | 22,366,114 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | ||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale | 36,373,492 | 22,366,114 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair value, available for sale |
Note 7 - Fair Value - Estimated
Note 7 - Fair Value - Estimated Fair Value of Financial Instruments (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair value, held to maturity | $ 20,154,081 | $ 18,033,093 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value, held to maturity | 19,509,907 | 18,127,067 |
Mortgage loans held for sale | 1,538,574 | 573,638 |
Federal Home Loan Bank stock | 503,700 | 575,800 |
Interest-bearing deposits | 313,897,923 | 291,995,483 |
Federal Home Loan Bank advances | 1,000,000 | 3,000,000 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans, net | 336,748,866 | 340,900,635 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Noninterest-bearing deposits | 58,298,592 | 62,717,520 |
Securities sold under repurchase agreements | 7,583,212 | 11,012,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value, held to maturity | 20,154,081 | 18,033,093 |
Mortgage loans held for sale | 1,558,493 | 582,248 |
Federal Home Loan Bank stock | 503,700 | 575,800 |
Interest-bearing deposits | 314,857,923 | 281,761,483 |
Federal Home Loan Bank advances | 1,000,000 | 2,971,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans, net | 335,928,611 | 337,385,842 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Noninterest-bearing deposits | 58,298,592 | 62,717,520 |
Securities sold under repurchase agreements | $ 7,583,212 | $ 11,012,000 |
Note 8 - Earnings Per Share (De
Note 8 - Earnings Per Share (Details Textual) | Sep. 16, 2019 |
Stock Dividends Payable, Percent | 75.00% |
Dividends Payable, Date to be Paid | Oct. 31, 2019 |
Note 8 - Earnings Per Share - B
Note 8 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 1,177,910 | $ 1,308,688 | $ 3,500,018 | $ 3,575,871 |
Weighted average shares outstanding (in shares) | 2,959,411 | 2,931,602 | 2,950,122 | 2,923,102 |
Earnings per share - basic and diluted (in dollars per share) | $ 0.40 | $ 0.45 | $ 1.19 | $ 1.22 |
Note 9 - Retirement Plans (Deta
Note 9 - Retirement Plans (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Number of Employees Covered by Life Insurance Policy | 12 | 12 | ||
Other Postretirement Benefits Cost (Reversal of Cost) | $ 1,468 | $ 1,418 | $ 4,405 | $ 4,255 |
Employee Benefits and Share-based Compensation | $ 312,119 | 328,258 | $ 1,008,228 | 1,018,280 |
Supplemental Employee Retirement Plan [Member] | ||||
Number of Employees Participating in Plan | 3 | 3 | ||
Employee Benefits and Share-based Compensation | $ 30,600 | 60,457 | $ 91,800 | 180,457 |
Profit Sharing Plan [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4.00% | |||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 46,398 | $ 45,130 | $ 148,991 | $ 133,118 |