Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 22, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | SOUTHWEST GEORGIA FINANCIAL CORP | ||
Entity Central Index Key | 0000315849 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 46,079,479 | ||
Entity Common Stock, Shares Outstanding | 2,545,776 | ||
Entity Shell Company | false | ||
Trading Symbol | SGB | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 14,050,682 | $ 11,143,494 |
Interest-bearing deposits in other banks | 21,448,110 | 22,994,927 |
Cash and cash equivalents | 35,498,792 | 34,138,421 |
Certificates of deposit in other banks | 2,732,000 | 1,985,000 |
Investment securities available for sale, at fair value | 58,313,577 | 54,263,261 |
Investment securities to be held to maturity (fair value approximates $37,010,327 and $45,147,800) | 36,827,073 | 44,590,841 |
Federal Home Loan Bank stock, at cost | 1,820,300 | 2,438,200 |
Loans, net of allowance for loan losses of $3,428,869 and $3,043,632 | 373,321,368 | 327,129,758 |
Premises and equipment, net | 14,573,974 | 12,249,518 |
Bank property held for sale | 0 | 211,500 |
Foreclosed assets, net | 127,605 | 758,878 |
Intangible assets | 3,907 | 19,532 |
Bank owned life insurance | 6,779,242 | 6,553,318 |
Other assets | 4,835,329 | 4,734,148 |
Total assets | 534,833,167 | 489,072,375 |
Deposits: | ||
Interest bearing business checking | 28,070,871 | 0 |
NOW accounts | 35,816,115 | 25,871,273 |
Money market | 158,730,044 | 129,040,471 |
Savings | 31,848,588 | 30,793,864 |
Certificates of deposit $250,000 and over | 16,264,681 | 22,662,235 |
Other time accounts | 81,214,376 | 60,969,445 |
Total interest-bearing deposits | 351,944,675 | 269,337,288 |
Noninterest-bearing deposits | 103,694,910 | 127,668,471 |
Total deposits | 455,639,585 | 397,005,759 |
Short-term borrowed funds | 10,457,143 | 17,971,429 |
Long-term debt | 21,171,429 | 29,057,143 |
Other liabilities | 3,946,066 | 3,895,058 |
Total liabilities | 491,214,223 | 447,929,389 |
Shareholders' equity: | ||
Common stock - $1 par value, 5,000,000 shares authorized, 2,545,776 shares and 4,293,835 shares issued for 2018 and 2017 | 2,545,776 | 4,293,835 |
Additional paid-in capital | 18,418,995 | 31,701,533 |
Retained earnings | 24,841,569 | 33,020,030 |
Accumulated other comprehensive loss | (2,187,396) | (1,629,619) |
Treasury stock, at cost, 0 shares for 2018 and 1,752,330 for 2017 | 0 | (26,242,793) |
Total shareholders' equity | 43,618,944 | 41,142,986 |
Total liabilities and shareholders' equity | $ 534,833,167 | $ 489,072,375 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 37,010,327 | $ 45,147,800 |
Allowance for loan losses | 3,428,869 | 3,043,632 |
Certificates of deposit | $ 250,000 | $ 250,000 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,545,776 | 4,293,835 |
Treasury stock, at cost | $ 0 | $ 1,752,330 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Interest and fees on loans | $ 18,762,728 | $ 16,299,091 | $ 14,796,649 |
Interest on debt securities: Taxable | 1,363,123 | 1,286,473 | 1,170,259 |
Interest on debt securities: Tax-exempt | 1,090,871 | 1,228,479 | 1,253,064 |
Dividends | 144,856 | 102,360 | 89,840 |
Interest on deposits in other banks | 484,724 | 195,032 | 103,244 |
Interest on certificates of deposit in other banks | 47,870 | 34,879 | 52 |
Total interest income | 21,894,172 | 19,146,314 | 17,413,108 |
Interest expense: | |||
Deposits | 2,383,524 | 1,153,609 | 935,291 |
Federal funds purchased | 1,097 | 1,068 | 10 |
Other short-term borrowings | 395,989 | 224,144 | 103,567 |
Long-term debt | 541,804 | 523,344 | 573,225 |
Total interest expense | 3,322,414 | 1,902,165 | 1,612,093 |
Net interest income | 18,571,758 | 17,244,149 | 15,801,015 |
Provision for loan losses | 829,500 | 300,000 | 160,000 |
Net interest income after provision for loan losses | 17,742,258 | 16,944,149 | 15,641,015 |
Noninterest income: | |||
Service charges on deposit accounts | 1,015,498 | 1,005,270 | 1,086,268 |
Income from trust services | 234,649 | 218,657 | 209,755 |
Income from brokerage services | 399,278 | 362,416 | 342,051 |
Income from insurance services | 1,603,557 | 1,523,309 | 1,477,663 |
Income from mortgage banking services | 2,475 | 155,053 | 354,627 |
Net gain (loss) on sale or disposition of assets | (79,529) | (9,022) | 38,165 |
Net gain (loss) on sale of securities | (165,369) | 186,610 | 168,919 |
Net gain on extinguishment of debt | 317,832 | 0 | 0 |
Other income | 878,340 | 870,229 | 781,811 |
Total noninterest income | 4,206,731 | 4,312,522 | 4,459,259 |
Noninterest expense: | |||
Salaries and employee benefits | 9,724,826 | 9,250,777 | 8,765,865 |
Occupancy expense | 1,194,552 | 1,124,028 | 1,140,600 |
Equipment expense | 933,485 | 850,376 | 860,935 |
Data processing expense | 1,445,215 | 1,513,630 | 1,367,569 |
Amortization of intangible assets | 15,625 | 15,625 | 15,625 |
Other operating expenses | 3,319,751 | 3,074,843 | 2,763,227 |
Total noninterest expenses | 16,633,454 | 15,829,279 | 14,913,821 |
Income before income taxes | 5,315,535 | 5,427,392 | 5,186,453 |
Provision for income taxes | 668,416 | 1,619,900 | 1,152,476 |
Net income | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 |
Basic earnings per share: | |||
Net income | $ 1.83 | $ 1.49 | $ 1.58 |
Weighted average shares outstanding | 2,545,565 | 2,547,421 | 2,547,778 |
Diluted earnings per share: | |||
Net income | $ 1.83 | $ 1.49 | $ 1.58 |
Weighted average shares outstanding | 2,545,565 | 2,547,422 | 2,547,778 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gain (loss) on securities available for sale | (830,815) | 326,684 | (704,188) |
Reclassification adjustment for (gain) loss realized in income on securities available for sale | 165,369 | (186,610) | (144,034) |
Unrealized gain (loss) on pension plan benefits | (40,601) | 503,167 | (110,306) |
Federal income tax (benefit) expense | (148,270) | 486,869 | (325,900) |
Other comprehensive income (loss), net of tax | (557,777) | 156,372 | (632,628) |
Total comprehensive income | $ 4,089,342 | $ 3,963,864 | $ 3,401,349 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2015 | $ 4,293,835 | $ 31,701,533 | $ 27,369,480 | $ (1,153,363) | $ (26,113,795) | $ 36,097,690 |
Net Income | 4,033,977 | 4,033,977 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | (559,826) | (559,826) | ||||
Changes in net gain (loss) on pension plan benefits | (72,802) | (72,802) | ||||
Cash dividend declared per share | (1,070,047) | (1,070,047) | ||||
Purchase of treasury stock | (6,658) | (6,658) | ||||
Balance at Dec. 31, 2016 | 4,293,835 | 31,701,533 | 30,333,410 | (1,785,991) | (26,120,453) | 38,422,334 |
Net Income | 3,807,492 | 3,807,492 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | 93,675 | 93,675 | ||||
Changes in net gain (loss) on pension plan benefits | 62,697 | 62,697 | ||||
Cash dividend declared per share | (1,120,872) | (1,120,872) | ||||
Purchase of treasury stock | (122,340) | (122,340) | ||||
Balance at Dec. 31, 2017 | 4,293,835 | 31,701,533 | 33,020,030 | (1,629,619) | (26,242,793) | 41,142,986 |
Adjustment to correct immaterial misstatement of deferred compensation expense and cash surrender value in prior periods | (128,647) | (128,647) | ||||
Net Income | 4,647,119 | 4,647,119 | ||||
Comprehensive income (loss): | ||||||
Changes in net gain on securities available for sale | (525,702) | (525,702) | ||||
Changes in net gain (loss) on pension plan benefits | (32,075) | (32,075) | ||||
Cash dividend declared per share | (1,196,332) | (1,196,332) | ||||
Purchase of treasury stock | (306,032) | (306,032) | ||||
Issue of restricted stock awards | (306,032) | 306,032 | ||||
Stock-based compensation | 17,627 | 17,627 | ||||
Retirement of treasury stock | (1,748,059) | (12,994,133) | (11,500,601) | 26,242,793 | ||
Balance at Dec. 31, 2018 | $ 2,545,776 | $ 18,418,995 | $ 24,841,569 | $ (2,187,396) | $ 0 | $ 43,618,944 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share | $ 0.47 | $ 0.44 | $ 0.42 |
Treasury stock shares | 13,316 | 5,932 | 400 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 829,500 | 300,000 | 160,000 |
Depreciation | 1,036,986 | 881,000 | 923,578 |
Net amortization of investment securities | 356,101 | 396,899 | 309,185 |
Income on cash surrender value of bank owned life insurance | (147,824) | (133,398) | (125,290) |
Amortization of intangibles | 15,625 | 15,625 | 15,625 |
Disposal of fixed assets to charitable expense | 0 | 13,045 | 0 |
Loss (gain) on sale/writedown of foreclosed assets | (17,974) | 8,892 | 0 |
Net loss (gain) on disposal of fixed assets | 753 | 1,594 | (36,701) |
Net loss (gain) on sale of securities | (165,369) | 186,610 | 168,919 |
Net loss on disposal of bank property held for sale | 96,750 | 0 | 0 |
Net gain on extinguishment of debt | (317,832) | 0 | 0 |
Stock-based compensation | 17,627 | 0 | 0 |
Change in: | |||
Other assets | 71,733 | 489,903 | (253,894) |
Other liabilities | (193,157) | 288,505 | 324,142 |
Net cash provided by operating activities | 6,560,776 | 5,882,947 | 5,181,703 |
Cash flows from investing activities: | |||
Proceeds from calls, paydowns and maturities of securities HTM | 12,252,434 | 10,070,453 | 5,952,271 |
Proceeds from calls, paydowns and maturities of securities AFS | 795,028 | 635,818 | 10,354,337 |
Proceeds from Federal Home Loan Bank Stock repurchase | 1,164,500 | 705,100 | 413,700 |
Proceeds from sale of securities available for sale | 2,879,000 | 5,741,211 | 11,933,634 |
Proceeds from sale of securities held to maturity | 0 | 0 | 576,834 |
Proceeds from maturity of certificates of deposit in other banks | 0 | 0 | 245,000 |
Purchase of securities held to maturity | (4,637,047) | (265,000) | (478,559) |
Purchase of securities available for sale | (8,762,879) | (7,039,139) | (25,129,827) |
Purchase of Federal Home Loan Bank Stock | (546,600) | (1,269,100) | (418,700) |
Purchase certificates of deposit in other banks | (747,000) | (1,985,000) | 0 |
Net change in loans | (47,511,765) | (38,895,975) | (41,850,494) |
Purchase bank owned life insurance | 0 | (1,063,237) | 0 |
Purchase of premises and equipment | (3,382,015) | (1,955,067) | (1,455,043) |
Proceeds from sales of fixed assets and foreclosed assets | 1,131,894 | 233,553 | 304,825 |
Proceeds from the sale of bank property held for sale | 114,750 | 0 | 0 |
Net cash used by investing activities | (47,249,700) | (35,086,383) | (39,552,022) |
Cash flows from financing activities: | |||
Net change in deposits | 58,633,827 | 25,512,772 | 32,477,143 |
Payment of short-term portion of long-term debt | (22,971,429) | (13,447,619) | (7,590,476) |
Payments for early retirement of long-term debt | (9,110,739) | 0 | 0 |
Proceeds from issuance of short-term debt | 8,000,000 | 7,857,143 | 857,143 |
Proceeds from issuance of long-term debt | 9,000,000 | 18,142,857 | 5,142,857 |
Cash dividends paid | (1,196,332) | (1,120,872) | (1,070,047) |
Payments for treasury stock | (306,032) | (122,340) | (6,658) |
Net cash provided by financing activities | 42,049,295 | 36,821,941 | 29,809,962 |
Increase (decrease) in cash and cash equivalents | 1,360,371 | 7,618,505 | (4,560,357) |
Cash and cash equivalents - beginning of period | 34,138,421 | 26,519,916 | 31,080,273 |
Cash and cash equivalents - end of period | 35,498,792 | 34,138,421 | 26,519,916 |
CASH PAID DURING THE YEAR FOR: | |||
Income taxes | 365,000 | 895,000 | 964,000 |
Interest paid | 3,246,847 | 1,881,924 | 1,600,593 |
NONCASH ITEMS: | |||
Increase in foreclosed properties and decrease in loans | 503,655 | 903,842 | 44,963 |
Unrealized gain (loss) on securities AFS | (665,446) | 140,074 | (848,222) |
Unrealized gain (loss) on pension plan benefits | (40,601) | 503,167 | (110,306) |
Net reclass between short and long-term debt | 7,457,143 | 15,114,286 | 7,590,476 |
Sale of fixed assets through loans | 13,000 | 0 | 0 |
Sale of foreclosed properties through loans | 0 | 38,000 | 0 |
Property moved from fixed assets to property held for sale | 0 | 0 | 211,500 |
Retirement of treasury stock | $ 26,242,793 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of Southwest Georgia Financial Corporation (the “Corporation”) and its direct and indirect subsidiaries, including its wholly-owned banking subsidiary, Southwest Georgia Bank (the “Bank”), conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. The following is a description of the more significant of those policies. Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Nature of Operations The Corporation offers comprehensive financial services to consumer, business, and governmental entity customers through its banking offices in southwest Georgia. Its primary deposit products are money market, NOW, savings and certificates of deposit, and its primary lending products are consumer and commercial mortgage loans. In addition to conventional banking services, the Corporation provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by the Bank’s Southwest Georgia Insurance Services Division. The Corporation’s primary business is providing banking services through the Bank to individuals and businesses principally in the counties of Colquitt, Baker, Worth, Lowndes, Tift and the surrounding counties of southwest Georgia. The Bank operates six branch offices in its trade area. Trust and retail brokerage services are offered at an office building located at 25 2nd Avenue SW in Moultrie, and lending services are offered in Valdosta at 3520 North Valdosta Road. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains independent appraisals for significant properties. A substantial portion of the Corporation’s loans are secured by real estate located primarily in Georgia. Accordingly, the ultimate collection of these loans is susceptible to changes in the real estate market conditions of this market area. Cash and Cash Equivalents and Statement of Cash Flows For purposes of reporting cash flows, the Corporation considers cash and cash equivalents to include all cash on hand, deposit amounts due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation maintains its cash balances in several financial institutions. Accounts at the financial institutions are secured by the Federal Deposit Insurance Corporation (the “FDIC”) up to $250,000. There were uninsured deposits of $61,822 at December 31, 2018. Investment Securities Investment securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value with unrealized gains and losses (net of tax effect) reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation has been calculated primarily using the straight-line method for buildings and building improvements over the assets estimated useful lives. Equipment and furniture are depreciated using the modified accelerated recovery system method over the assets estimated useful lives for financial reporting and income tax purposes for assets purchased on or before December 31, 2003. For assets acquired after 2003, the Corporation used the straight-line method of depreciation. The following estimated useful lives are used for financial statement purposes: Land improvements 5 – 31 years Building and improvements 10 – 40 years Machinery and equipment 5 – 10 years Computer equipment 3 – 5 years Office furniture and fixtures 5 – 10 years All of the Corporation’s leases are operating leases and are not capitalized as assets for financial reporting purposes. Maintenance and repairs are charged to expense and betterments are capitalized. Long-lived assets are evaluated regularly for other-than-temporary impairment. If circumstances suggest that their value may be impaired and the write-down would be material, an assessment of recoverability is performed prior to any write-down of the asset. Impairment on intangibles is evaluated at each balance sheet date or whenever events or changes in circumstances indicate that the carrying amount should be assessed. Impairment, if any, is recognized through a valuation allowance with a corresponding charge recorded in the income statement. Bank Property Held for Sale In 2016, the Bank’s former branch in Pavo, Georgia, was transferred from premises to bank property held for sale and depreciation was discontinued. The property was booked at the lower of cost or market value based on the current appraisal of $211,500. On November 30, 2018, the Corporation sold this property and recorded a loss in the amount of $96,750. Loans and Allowances for Loan Losses Loans are stated at principal amounts outstanding less unearned income and the allowance for loan losses. Interest income is credited to income based on the principal amount outstanding at the respective rate of interest except for interest on certain installment loans made on a discount basis which is recognized in a manner that results in a level-yield on the principal outstanding. Accrual of interest income is discontinued on loans when, in the opinion of management, collection of such interest income becomes doubtful. Accrual of interest on such loans is resumed when, in management’s judgment, the collection of interest and principal becomes probable. Fees on loans and costs incurred in origination of most loans are recognized at the time the loan is placed on the books. Because loan fees are not significant, the results on operations are not materially different from the results which would be obtained by accounting for loan fees and costs as amortized over the term of the loan as an adjustment of the yield. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collection of the principal is unlikely. The allowance is an amount which management believes will be adequate to absorb estimated losses on existing loans that may become uncollectible based on evaluation of the collectability of loans and prior loss experience. This evaluation takes into consideration such factors as changes in the nature and volume of the loan portfolios, current economic conditions that may affect the borrowers’ ability to pay, overall portfolio quality, and review of specific problem loans. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based upon changes in economic conditions. Also, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments of information available to them at the time of their examination. Foreclosed Assets In accordance with policy guidelines and regulations, properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the fair market value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. A valuation allowance is established to record market value changes in foreclosed assets. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. There was no valuation allowance for foreclosed asset losses at December 31, 2018. Foreclosed assets totaled $127,605 at December 31, 2018, down from $758,878 at December 31, 2017. Intangible Assets Intangible assets are amortized over a determined useful life using the straight-line basis. These assets are evaluated annually as to the recoverability of the carrying value. The remaining intangibles will fully amortize in March 2019. Credit Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Retirement Plans The Corporation and its direct and indirect subsidiaries have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts not exceeding the regulatory requirements. Bank Owned Life Insurance The Bank owns life insurance policies on a group of employees. Banking laws and regulations allow the Bank to purchase life insurance policies on certain employees in order to help offset the Bank’s overall employee compensation costs. The beneficial aspects of these life insurance policies are tax-free earnings and a tax-free death benefit, which are realized by the Bank as the owner of the policies. The cash surrender value of these policies is included as an asset on the balance sheet, and any increases in cash surrender value are recorded as noninterest income on the statement of income. At December 31, 2018 and 2017, the policies had a value of $6,779,242 and $6,553,318, respectively, and were 15.5% and 15.9%, respectively, of shareholders’ equity. These values are within regulatory guidelines. Income Taxes The Corporation and its direct and indirect subsidiaries file a consolidated income tax return. Each subsidiary computes its income tax expense as if it filed an individual return except that it does not receive any portion of the surtax allocation. Any benefits or disadvantages of the consolidation are absorbed by the parent company. Each subsidiary pays its allocation of federal income taxes to the parent company or receives payment from the parent company to the extent that tax benefits are realized. The Corporation reports income under the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Recognition of deferred tax assets is based on management’s belief that it is more likely than not that the tax benefit associated with certain temporary differences and tax credits will be realized. The Corporation will recognize a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with an examination being presumed to occur. The amount recognized is the largest amount of a tax benefit that is greater than fifty percent likely of being realized on examination. No benefit is recorded for tax positions that do not meet the more than likely than not test. The Corporation recognizes penalties related to income tax matters in income tax expense. The Corporation is subject to U.S. federal and Georgia state income tax audit for returns for the tax period ending December 31, 2016 and subsequent years. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of the Corporation’s accumulated other comprehensive income (loss) includes the after tax effect of changes in the net unrealized gain/loss on securities available for sale and the unrealized gain/loss on pension plan benefits. Trust Department Trust income is included in the accompanying consolidated financial statements on the cash basis in accordance with established industry practices. Reporting of such fees on the accrual basis would have no material effect on reported income. Advertising Costs It is the policy of the Corporation to expense advertising costs as they are incurred. The Corporation does not engage in any direct-response advertising and accordingly has no advertising costs reported as assets on its balance sheet. Costs that were expensed during 2018, 2017, and 2016 were $264,269, $192,016, and $173,595, respectively. Regulatory Developments The Corporation and the Bank are subject to various regulatory capital requirements administered by 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 Corporation and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the federal banking agencies about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum Tier 1 leverage, Tier 1 risk-based capital and Total risk-based capital ratios. In July 2013, the Board of Governors of the Federal Reserve System published the Basel III Capital Rules. These rules establish a comprehensive capital framework applicable to all depository institutions, certain bank holding companies with total consolidated assets below a certain threshold and all and savings and loan holding companies except for those that are substantially engaged in insurance underwriting or commercial activities. These rules implement higher minimum capital requirements for banks and certain bank holding companies, include a new common equity Tier 1 capital requirement and establish criteria that instruments must meet to be considered common equity Tier 1 capital, additional Tier 1 capital or Tier 2 capital. The Basel III Capital Rules became effective for the Bank on January 1, 2015, subject to a phase-in period, but are not applicable to bank holding companies, like the Corporation, with less than $1 billion in total consolidated assets that meet certain criteria. The minimum capital level requirements applicable to the Bank under the Basel III Capital Rules are: (i) a common equity Tier 1 risk-based capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a Total risk-based capital ratio of 8% (unchanged from the rules effective for the year ended December 31, 2014); and (iv) a Tier 1 leverage ratio of 4% for all institutions. Common equity Tier 1 capital will consist of retained earnings and common stock instruments, subject to certain adjustments. The Basel III Capital Rules set forth changes in the methods of calculating certain risk-weighted assets, which in turn affect the calculation of risk-based ratios. The new risk weightings are more punitive for assets held by banks that are deemed to be of higher risk. These changes were also effective beginning January 1, 2015. The Basel III Capital Rules also introduce a “capital conservation buffer”, which is in addition to each capital ratio and is phased-in over a three-year period beginning in January 2016. As of December 31, 2018, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since December 31, 2018, that management believes has changed the Bank’s status as “well-capitalized.” The capital ratios of the Corporation and Bank are presented in Note 15 of the Corporation’s Notes to Consolidated Financial Statements. Adoption of New Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 118. The amendments in this update were effective upon issuance. The adoption of ASU 2018-05 had no material impact on the Corporation’s consolidated financial statements. In March 2018, FASB issued ASU 2018-04, Investment - Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 117. The amendments in this update were effective upon issuance. The adoption of ASU 2018-04 had no material impact on the Corporation’s consolidated financial statements. In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10). This Update clarifies certain aspects of the guidance issued in ASU 2016-01 including (i) an entity measuring an equity security using the measurement alternative may make an irrevocable election to change its measurement approach to a fair value method under Topic 820 for that security and any identical or similar investments of the same issuer, (ii) fair value adjustments under the measurement alternative should be as of the date the observable transaction for a similar security occurred, (iii) requiring the remeasurement of the entire value of forward contracts and purchased options when observable transactions occur on the underlying equity securities, (iv) financial liabilities for which the fair value option is elected should follow the guidance in paragraph 825-10-45-5, (v) changes in the fair value of financial liabilities for which the fair value option is elected relating to the instrument-specific credit risk should first be measured in the currency of denomination and then both components of the change in fair value should be remeasured into the reporting entity's functional currency using end-of-period spot rates, and (vi) the prospective transition approach should only be applied for instances in which the measurement alternative is applied. The guidance was effective for interim periods beginning after June 15, 2018 and may be early adopted provided ASU 2016-01 was adopted. The Company adopted the amendments in this ASU effective January 1, 2018. The adoption of ASU 2018-03 had no material impact on the Corporation’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Stock Compensation, Scope of Modification Accounting.” This ASU clarifies when changes to the terms of conditions of a share-based payment award must be accounted for as modifications. Companies will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The new guidance should reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications, as the guidance will allow companies to make certain non-substantive changes to awards without accounting for them as modifications. It does not change the accounting for modifications. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017; early adoption is permitted. The adoption of ASU 2017-09 had no material impact on the Corporation’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The updated accounting guidance requires changes to the presentation of the components of net periodic benefit cost on the income statement by requiring service cost to be presented with other employee compensation costs and other components of net periodic pension cost to be presented outside of any subtotal of operating income. This ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2017-07 had no material impact on the Corporation’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), which provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption will be permitted and should apply it to transactions that have not been reported in financial statements that have been issued or made available for issuance. The adoption of ASU 2017-01 had no material impact on the Corporation’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018. The adoption of 2016-01 had no material impact on the Corporation’s consolidated financial statements. In May 2014, the FASB began issuing guidance to change the recognition of revenue from contracts with customers. The last guidance was issued in February 2017. The standards issued during this time are as follows: ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, and ASU 2017-05 Other Income - Gains and losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This new guidance, which does not apply to financial instruments, provides that revenue should be recognized for the transfer of goods and services to customers in an amount equal to the consideration it receives or expects to receive. The guidance also includes expanded disclosure requirements that provide comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018, using the modified retrospective method. Since there was no change to net income upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not necessary. See below for additional information related to revenue generated from contracts with customers. Revenue Recognition On January 1, 2018, the Corporation adopted ASC Topic 606, using the modified retrospective method. Disclosures of revenue from contracts with customers for periods beginning after January 1, 2018, are presented under ASC Topic 606 and have not materially changed from the prior year amounts. Noninterest income, within the scope of this guidance, is recognized as services are transferred to customers in an amount that reflects the considerations expected to be entitled to in exchange for those services. The Corporation's revenue streams that were in scope include service charges on deposit accounts, income from insurance services, income from trust services, Automated Teller Machine (“ATM”) surcharge and other noninterest income. Services Charges on Deposit Accounts - Service charges on deposit accounts primarily consist of monthly maintenance charges, analysis charges and Non-sufficient funds (“NSF”) charges. The NSF charges and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis charges and monthly maintenance charges are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Corporation's performance obligations are satisfied either at the time of the transaction or over the course of a month. Income from Insurance Services – Income from insurance services consists primarily of property and casualty insurance, life, health, and disability insurance. Property and casualty, life, health, and disability insurance includes the brokerage of both personal and commercial coverages. The placement of the policy is completion of the Corporation's performance obligation and revenue is recognized at that time. The Corporation's commission is primarily a percentage of the premium. Income from Trust Services – Income from Trust services consists of revenue generated from services provided for corporate, pension, and personal trusts, trustee services, and administrative services for employee benefit plans. The Corporation’s performance obligation and revenue is recognized once the service has been performed. ATM Surcharge - ATM surcharge represents revenues earned from certain terminal activity. ATM surcharges primarily consist of charges assessed to our customers for using a non-Bank ATM or a non-Bank customer using our ATM. Such surcharges generally are recognized concurrently with the delivery of services on a daily basis. Other - Other noninterest income primarily consists of transaction based revenue where the performance obligation is satisfied concurrent with the revenue recognition. Recent Accounting Pronouncements In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 removes the requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of plan assets expected to be returned to the employer, related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Investments [Abstract] | |
Investment Securities | 2. INVESTMENT SECURITIES Investment securities have been classified in the consolidated balance sheets according to management’s intent. The amortized costs of securities as shown in the consolidated balance sheets and their estimated fair values at December 31 were as follows: Securities Available For Sale: December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 982,044 $ 0 $ 27,474 $ 954,570 U.S. government agency securities 45,823,595 264,567 881,157 45,207,005 State and municipal securities 7,394,278 30,579 46,922 7,377,935 Residential mortgage-backed securities 4,769,668 21,579 17,180 4,774,067 Total debt securities AFS $ 58,969,585 $ 316,725 $ 972,733 $ 58,313,577 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 979,983 $ 0 $ 12,213 $ 967,770 U.S. government agency securities 43,978,023 580,366 698,299 43,860,090 State and municipal securities 7,482,912 129,231 38,454 7,573,689 Residential mortgage-backed securities 1,812,905 51,651 2,844 1,861,712 Total debt securities AFS $ 54,253,823 $ 761,248 $ 751,810 $ 54,263,261 Securities Held to Maturity December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 30,582,785 $ 208,480 $ 67,434 $ 30,723,831 Residential mortgage-backed securities 6,244,288 49,490 7,282 6,286,496 Total securities HTM $ 36,827,073 $ 257,970 $ 74,716 $ 37,010,327 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 41,447,092 $ 527,632 $ 48,083 $ 41,926,641 Residential mortgage-backed securities 3,143,749 77,542 132 3,221,159 Total securities HTM $ 44,590,841 $ 605,174 $ 48,215 $ 45,147,800 At December 31, 2018, securities with a carrying value of $59,182,556 and a market value of $58,502,416 were pledged as collateral for public deposits and other purposes as required by law. Of these amounts, approximately $4,400,000 was over pledged and could be released if necessary for liquidity needs. At December 31, 2017, securities with a carrying value of $71,520,817 and a market value of $71,648,073 were pledged as collateral for public deposits and other purposes as required by law. At December 31, 2018 and 2017, we had both 1 – 4 family and multifamily mortgage loans pledged to secure Federal Home Loan Bank (“FHLB”) advances. The FHLB requires the Bank to hold a minimum investment of stock, based on membership and the level of activity. As of December 31, 2018, this stock investment was $1,820,300. There were no investments in obligations of any state or municipal subdivisions which exceeded 10% of the Corporation’s shareholders’ equity at December 31, 2018. The amortized cost and estimated fair value of debt securities at December 31, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. December 31, 2018 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 2,147,059 $ 2,124,645 After one through five years 29,691,474 29,674,236 After five through ten years 21,585,776 20,968,318 After ten years 5,545,276 5,546,378 Total debt securities AFS $ 58,969,585 $ 58,313,577 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 6,483,464 $ 6,497,910 After one through five years 12,885,021 12,961,209 After five through ten years 11,035,146 11,097,382 After ten years 6,423,442 6,453,826 Total debt securities HTM $ 36,827,073 $ 37,010,327 The following tables summarize the activity of security sales by intention and year for years ending 2018, 2017, and 2016. Securities Available For Sale: December 31, 2018 2017 2016 Proceeds of sales $ 2,879,000 $ 5,741,211 $ 11,933,634 Gross gains $ 0 $ 186,610 $ 152,102 Gross losses (165,369 ) 0 (8,068 ) Net gains (losses) on sales of available for sale securities $ (165,369 ) $ 186,610 $ 144,034 Securities Held to Maturity: December 31, 2018 2017 2016 Amortized cost of securities sold $ 0 $ 0 $ 551,949 Proceeds from sales 0 0 576,834 Net gains on sales of held to maturity securities $ 0 $ 0 $ 24,885 Sales of held to maturity securities during years ended December 31, 2016 included small lots of mortgage-backed securities which were paid down by over 85% of face value. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position, follows: December 31, 2018 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government treasury securities $ 0 $ 0 $ 27,474 $ 954,570 U.S. government agency securities 33,077 6,073,337 848,080 20,015,052 State and municipal securities 3,209 306,792 43,713 1,813,173 Residential mortgage-backed securities 14,199 3,032,237 2,981 129,410 Total debt securities available for sale $ 50,485 $ 9,412,366 $ 922,248 $ 22,912,205 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 20,209 $ 7,359,536 $ 47,225 $ 2,782,627 Residential mortgage-backed securities 5,671 879,487 1,611 89,464 Total securities held to maturity $ 25,880 $ 8,239,023 $ 48,836 $ 2,872,091 December 31, 2017 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government treasury securities $ 12,213 $ 967,770 $ 0 $ 0 U.S. government agency securities 34,083 4,988,630 664,216 18,347,439 State and municipal securities 16,836 975,900 21,618 877,798 Residential mortgage-backed securities 0 0 2,844 188,081 Total debt securities available for sale $ 63,132 $ 6,932,300 $ 688,678 $ 19,413,318 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 15,954 $ 5,521,443 $ 32,129 $ 1,281,797 Residential mortgage-backed securities 132 146,203 0 0 Total securities held to maturity $ 16,086 $ 5,667,646 $ 32,129 $ 1,281,797 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2018, sixty-six debt securities had unrealized losses with aggregate depreciation of 2.35% from the Corporation’s amortized cost basis. At December 31, 2017, forty-eight debt securities had unrealized losses with aggregate depreciation of 2.35%. These unrealized losses relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. Management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available for sale. Also, no declines in debt securities are deemed to be other-than-temporary. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 3. LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the Corporation’s loan portfolio at December 31, 2018 and 2017 was as follows: 2018 2017 Commercial, financial and agricultural loans $ 88,403,215 $ 73,146,397 Real estate Construction loans 24,890,536 22,287,012 Commercial mortgage loans 123,477,369 106,458,342 Residential loans 103,347,898 99,159,607 Agricultural loans 31,561,686 25,373,621 Consumer & other loans 5,086,984 3,766,332 Loans outstanding 376,767,688 330,191,311 Unearned interest and discount (17,451 ) (17,921 ) Allowance for loan losses (3,428,869 ) (3,043,632 ) Net loans $ 373,321,368 $ 327,129,758 The Corporation’s only significant concentration of credit at December 31, 2018, occurred in real estate loans which totaled approximately $283 million. However, this amount was not concentrated in any specific segment within the market or geographic area. At December 31, 2018, the lendable collateral value of the 1-4 family and multifamily mortgage loans that were pledged to FHLB to secure outstanding advances was $61,443,772. FHLB has a blanket lien on the 1-4 family and multifamily portfolios, which totaled $120,023,526. Appraisal Policy When a loan is first identified as a problem loan, the appraisal is reviewed to determine if the appraised value is still appropriate for the collateral. For the duration that a loan is considered a problem loan, the appraised value of the collateral is monitored on a quarterly basis. If significant changes occur in market conditions or in the condition of the collateral, a new appraisal will be obtained. Nonaccrual Policy The Corporation does not accrue interest on any loan (1) that is maintained on a cash basis due to the deteriorated financial condition of the borrower, (2) for which payment in full of principal or interest is not expected, or (3) upon which principal or interest has been past due for ninety days or more unless the loan is well secured and in the process of collection. A loan subsequently placed on nonaccrual status may be returned to accrual status if (1) all past due interest and principal is paid with expectations of any remaining contractual principal and interest being repaid or (2) the loan becomes well secured and in the process of collection. Loans placed on nonaccrual status amounted to $1,204,861 and $1,674,656 at December 31, 2018 and 2017, respectively. There were no past due loans over 90 days and still accruing at December 31, 2018 or 2017. The accrual of interest is discontinued when the loan is placed on nonaccrual. Interest income that would have been recorded on these nonaccrual loans in accordance with their original terms totaled $64,015 and $41,496 as of December 31, 2018 and 2017, respectively. The following tables present an age analysis of past due loans and nonaccrual loans segregated by class of loans. Age Analysis of Past Due Loans As of December 31, 2018 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 247,397 $ 0 $ 247,397 $ 36,157 $ 88,119,661 $ 88,403,215 Real estate: Construction loans 0 0 0 0 24,890,536 24,890,536 Commercial mortgage loans 0 0 0 1,022,550 122,454,819 123,477,369 Residential loans 1,560,913 0 1,560,913 146,154 101,640,831 103,347,898 Agricultural loans 321,319 0 321,319 0 31,240,367 31,561,686 Consumer & other loans 36,654 0 36,654 0 5,050,330 5,086,984 Total loans $ 2,166,283 $ 0 $ 2,166,283 $ 1,204,861 $ 373,396,544 $ 376,767,688 Age Analysis of Past Due Loans As of December 31, 2017 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 364,527 $ 0 $ 364,527 $ 394,455 $ 72,387,415 $ 73,146,397 Real estate: Construction loans 198,861 0 198,861 0 22,088,151 22,287,012 Commercial mortgage loans 645,214 0 645,214 757,085 105,056,043 106,458,342 Residential loans 2,023,517 0 2,023,517 518,301 96,617,789 99,159,607 Agricultural loans 0 0 0 0 25,373,621 25,373,621 Consumer & other loans 30,033 0 30,033 4,815 3,731,484 3,766,332 Total loans $ 3,262,152 $ 0 $ 3,262,152 $ 1,674,656 $ 325,254,503 $ 330,191,311 Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. At December 31, 2018 and 2017, impaired loans amounted to $4,356,381 and $4,895,730, respectively. A reserve amount of $518,230 and $331,779, respectively, was recorded in the allowance for loan losses for these impaired loans as of December 31, 2018 and 2017. The following tables present impaired loans, segregated by class of loans as of December 31, 2018 and 2017: Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 184,899 $ 87,525 $ 568,816 $ 656,341 $ 276,392 $ 370,038 $ 52,411 Real estate: Construction loans 402,234 281,434 0 281,434 0 281,434 25,364 Commercial mortgage loans 1,787,305 1,277,611 333,892 1,611,503 51,854 1,544,299 45,403 Residential loans 1,801,002 1,027,647 752,443 1,780,090 188,368 1,594,390 127,806 Agricultural loans 12,526 12,526 0 12,526 0 12,526 5,530 Consumer & other loans 0 0 14,487 14,487 1,616 14,487 820 Total loans $ 4,187,966 $ 2,686,743 $ 1,669,638 $ 4,356,381 $ 518,230 $ 3,817,174 $ 257,334 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2017 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 459,003 $ 208,032 $ 250,971 $ 459,003 $ 44,468 $ 169,930 $ 10,920 Real estate: Construction loans 549,599 428,799 0 428,799 0 162,698 24,487 Commercial mortgage loans 1,615,811 1,107,654 339,440 1,447,094 57,403 1,071,663 54,582 Residential loans 2,476,728 316,230 2,079,823 2,396,053 224,916 2,233,562 108,472 Agricultural loans 142,966 142,966 0 142,966 0 142,966 8,198 Consumer & other loans 21,815 846 20,969 21,815 4,992 9,003 521 Total loans $ 5,265,922 $ 2,204,527 $ 2,691,203 $ 4,895,730 $ 331,779 $ 3,789,822 $ 207,180 For the period ending December 31, 2016, the average recorded investment for impaired loans was $8,325,530 and the interest income received during impairment was $192,071. At December 31, 2018 and 2017, included in impaired loans were $7,458 and $4,243, respectively, of troubled debt restructurings. Troubled Debt Restructurings Loans are considered to have been modified in a troubled debt restructuring, or TDR, when due to a borrower’s financial difficulty the Corporation makes certain concessions to the borrower that it would not otherwise consider for new debt with similar risk characteristics. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower’s specific circumstances at a point in time. Not all loan modifications are TDRs. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. Loan modifications are reviewed and recommended by the Corporation’s senior credit officer, who determines whether the loan meets the criteria for a TDR. Generally, the types of concessions granted to borrowers that are evaluated in determining whether the loan is classified as a TDR include: · Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not be able to obtain elsewhere under similar circumstances. · Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral. · Principal reductions – Arise when the Corporation charges off a portion of the principal that is not fully collateralized and collectability is uncertain; however, this portion of principal may be recovered in the future under certain circumstances. The following tables present the amount of troubled debt restructuring by loan class, classified separately as accrual and nonaccrual at December 31, 2018 and 2017, as well as those currently paying under restructured terms and those that have defaulted under restructured terms as of December 31, 2018 and 2017. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 or more days past due. December 31, 2018 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 5,570 $ 0 1 $ 5,570 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 1,888 0 1 1,888 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 0 0 0 0 0 0 Total TDR’s $ 7,458 $ 0 2 $ 7,458 0 $ 0 December 31, 2017 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 0 $ 0 0 $ 0 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 3,397 0 1 3,397 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 846 0 1 846 0 0 Total TDR’s $ 4,243 $ 0 2 $ 4,243 0 $ 0 The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and nonaccrual at December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Accruing Nonaccruing Accruing Nonaccruing # Balance # Balance # Balance # Balance Type of concession: Payment modification 0 $ 0 0 $ 0 0 $ 0 0 $ 0 Rate reduction 0 0 0 0 0 0 0 0 Rate reduction, payment modification 1 1,888 0 0 2 4,243 0 0 Forbearance of interest 1 5,570 0 0 0 0 0 0 Total 2 $ 7,458 0 $ 0 2 $ 4,243 0 $ 0 As of December 31, 2018 and 2017, the Corporation had a balance of $7,458 and $4,243, respectively, in troubled debt restructurings. The Corporation had no charge-offs on such loans as of December 31, 2018, and no charge-offs as of December 31, 2017. The Corporation’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $0 at both December 31, 2018 and 2017. The Corporation had no unfunded commitment to lend to a customer that has a troubled debt restructured loan as of December 31, 2018. Credit Risk Monitoring and Loan Grading The Corporation employs several means to monitor the risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical loss experience and economic conditions. Loans are subject to an internal risk-grading system which indicates the risk and acceptability of that loan. The loan grades used by the Corporation are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions. The general characteristics of the risk grades are as follows: Grade 1 – Exceptional Grade 2 – Above Average Grade 3 – Acceptable Grade 4 – Fair Grade 5a – Watch – Grade 5b – Other Assets Especially Mentioned (OAEM) – Grade 6 – Substandard Grade 7 – Doubtful Grade 8 – Loss The following tables present internal loan grading by class of loans at December 31, 2018 and 2017: December 31, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,237,602 $ 0 $ 0 $ 22,905 $ 0 $ 210,045 $ 1,470,552 Grade 2- Above Avg. 0 0 0 0 0 43,711 43,711 Grade 3- Acceptable 23,821,846 1,860,003 30,398,565 25,839,646 16,863,356 1,151,239 99,934,655 Grade 4- Fair 58,753,931 22,749,099 88,122,957 73,114,310 14,698,330 3,657,108 261,095,735 Grade 5a- Watch 473,616 0 2,411,710 722,441 0 6,206 3,613,973 Grade 5b- OAEM 3,079,098 0 446,841 1,299,587 0 2,168 4,827,694 Grade 6- Substandard 787,309 281,434 2,097,296 2,349,009 0 16,507 5,531,555 Grade 7- Doubtful 249,813 0 0 0 0 0 249,813 Total loans $ 88,403,215 $ 24,890,536 $ 123,477,369 $ 103,347,898 $ 31,561,686 $ 5,086,984 $ 376,767,688 December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,371,135 $ 0 $ 0 $ 23,919 $ 0 $ 325,236 $ 1,720,290 Grade 2- Above Avg. 0 0 0 0 0 51,421 51,421 Grade 3- Acceptable 27,024,359 2,085,620 30,090,030 26,304,640 11,071,244 866,455 97,442,348 Grade 4- Fair 42,821,117 19,772,593 70,518,545 68,103,351 13,781,326 2,494,509 217,491,441 Grade 5a- Watch 120,626 0 1,027,581 757,628 39,344 7,572 1,952,751 Grade 5b- OAEM 557,070 0 3,073,051 1,226,841 338,741 1,357 5,197,060 Grade 6- Substandard 945,238 428,799 1,749,135 2,743,228 142,966 19,782 6,029,148 Grade 7- Doubtful 306,852 0 0 0 0 0 306,852 Total loans $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 Allowance for Loan Losses Methodology The allowance for loan losses (ALL) is determined by a calculation based on segmenting the loans into the following categories: (1) impaired loans and nonaccrual loans, (2) loans with a credit risk rating of 5b, 6, 7 or 8, (3) other outstanding loans, and (4) other commitments to lend. In addition, unallocated general reserves are estimated based on migration and economic analysis of the loan portfolio. The ALL is calculated by the addition of the estimated loss derived from each of the above categories. The impaired loans and nonaccrual loans are analyzed on an individual basis to determine if the future collateral value is sufficient to support the outstanding debt of the loan. If an estimated loss is calculated, it is included in the estimated ALL until it is charged to the loan loss reserve. The calculation for loan risk graded 5b, 6, 7 or 8, other outstanding loans and other commitments to lend is based on assigning an estimated loss factor based on a twelve quarter rolling historical weighted average net loss rate. The estimated requirement for unallocated general reserves from migration and economic analysis is determined by considering (1) trends in asset quality, (2) level and trends in charge-off experience, (3) macroeconomic trends and conditions, (4) microeconomic trends and conditions and (5) risk profile of lending activities. Within each of these categories, a risk factor percentage from a rating of excessive, high, moderate or low will be determined by management and applied to the loan portfolio. By adding the estimated value from the migration and economic analysis to the estimated reserve from the loan portfolio, a total estimated loss reserves is obtained. This amount is then compared to the actual amount in the loan loss reserve. The calculation of ALL is performed on a monthly basis and is presented to the Loan Committee and the Board of Directors. Changes in the allowance for loan losses are as follows: 2018 2017 2016 Balance, January 1 $ 3,043,632 $ 3,124,611 $ 3,032,242 Provision charged to operations 829,500 300,000 160,000 Loans charged off (606,345 ) (447,747 ) (116,006 ) Recoveries 162,082 66,768 48,375 Balance, December 31 $ 3,428,869 $ 3,043,632 $ 3,124,611 The following tables detail activity in the ALL by class of loans for the years ended December 31, 2018 and 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. December 31, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Charge-offs 548,460 783 43,349 6,909 0 6,844 606,345 Recoveries 12,025 0 590 0 147,252 2,215 162,082 Net charge-offs 536,435 783 42,759 6,909 (147,252 ) 4,629 444,263 Provisions charged to operations 614,426 727 196,466 49,306 (49,934 ) 18,509 829,500 Balance at end of period, December 31, 2018 $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Ending balance - Individually evaluated for impairment $ 276,392 $ 0 $ 51,854 $ 188,368 $ 0 $ 1,616 $ 518,230 Collectively evaluated for impairment 125,859 1,043,027 1,158,448 270,503 108,878 203,924 2,910,639 Balance at end of period $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Loans : Ending balance - Individually evaluated for impairment $ 656,341 $ 281,434 $ 1,611,503 $ 1,929,214 $ 12,526 $ 14,487 $ 4,505,505 Collectively evaluated for impairment 87,746,874 24,609,102 121,865,866 101,418,684 31,549,160 5,072,497 372,262,183 Balance at end of period $ 88,403,215 $ 24,890,536 $ 123,477,369 $ 103,347,898 $ 31,561,686 $ 5,086,984 $ 376,767,688 At December 31, 2018, of the $4,505,505 loans that were individually evaluated for impairment, only $4,356,381 were deemed impaired. December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2016 $ 191,267 $ 1,043,083 $ 1,192,098 $ 420,189 $ 86,656 $ 191,318 $ 3,124,611 Charge-offs 113,334 0 168,717 59,764 93,503 12,429 447,747 Recoveries 63,486 0 0 0 0 3,282 66,768 Net charge-offs 49,848 0 168,717 59,764 93,503 9,147 380,979 Provisions charged to operations 182,841 0 33,214 56,049 18,407 9,489 300,000 Balance at end of period, December 31, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Ending balance - Individually evaluated for impairment $ 44,468 $ 0 $ 57,403 $ 224,916 $ 0 $ 4,992 $ 331,779 Collectively evaluated for impairment 279,792 1,043,083 999,192 191,558 11,560 186,668 2,711,853 Balance at end of period $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Loans : Ending balance - Individually evaluated for impairment $ 459,003 $ 428,799 $ 4,561,198 $ 2,448,531 $ 142,966 $ 21,815 $ 8,062,312 Collectively evaluated for impairment 72,687,394 21,858,213 101,897,144 96,711,076 25,230,655 3,744,517 322,128,999 Balance at end of period $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 At December 31, 2017, of the $8,062,312 loans that were individually evaluated for impairment, only $4,895,730 were deemed impaired. The following table is a summary of amounts included in the ALL for the impaired loans with specific reserves and the recorded balance of the related loans. Year Ended December 31, 2018 2017 2016 Allowance for loss on impaired loans $ 518,230 $ 331,779 $ 549,429 Recorded balance of impaired loans $ 4,356,381 $ 4,895,730 $ 3,560,901 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 4. PREMISES AND EQUIPMENT The amounts reported as bank premises and equipment at December 31, 2018 and 2017, are as follows: 2018 2017 Land $ 3,842,146 $ 3,846,146 Buildings 15,411,518 12,821,154 Furniture and equipment 10,767,592 9,442,378 Construction in process 4,892 1,074,744 30,026,148 27,184,422 Less accumulated depreciation (15,452,174 ) (14,934,904 ) Total $ 14,573,974 $ 12,249,518 Depreciation of premises and equipment was $1,036,986, $881,000, and $923,578 in 2018, 2017, and 2016, respectively. The Corporation depreciates its long-lived assets on various methods over their estimated productive lives, as more fully described in Note 1, Summary of Significant Accounting Policies. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. INTANGIBLE ASSETS The following table lists the Corporation’s account relationship intangible assets at December 31, 2018 and 2017. These assets will fully amortize in March 2019. 2018 2017 Amortizing intangible assets Account relationships $ 3,907 $ 19,532 Total intangible assets $ 3,907 $ 19,532 The intangible assets’ carrying amount, accumulated amortization and amortization expense for December 31, 2018, and the succeeding fiscal year are as follows: 2018 2019 Amortizing intangible assets Account relationships Gross carrying amount $ 125,000 $ 125,000 Accumulated amortization 121,093 125,000 Net carrying amount $ 3,907 $ 0 Amortization expense $ 15,625 $ 3,907 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits: | |
Deposits | 6. DEPOSITS At December 31, 2018, the scheduled maturities of certificates of deposit are as follows: Amount 2019 $ 74,553,918 2020 19,062,966 2021 1,970,720 2022 1,823,345 2023 and thereafter 68,108 Total $ 97,479,057 The amount of overdraft deposits reclassified as loans were $70,003 and $63,887 for the years ended December 31, 2018 and 2017, respectively. At December 31, 2018, there were 47 certificates of deposit totaling $16,264,681 that were at or above the FDIC insurance limit of $250,000. |
Short-Term Borrowed Funds
Short-Term Borrowed Funds | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowed Funds | 7. SHORT-TERM BORROWED FUNDS Federal funds purchased generally mature within one to four days. On December 31, 2018, the Corporation did not have any federal funds purchased. The Corporation had approximately $120,000,000 in unused federal funds and FHLB accommodations at December 31, 2018. The Corporation maintains a line of credit with the Federal Reserve Bank’s Discount Window. The maximum amount that can be borrowed is dependent upon the amount of unpledged securities held by the Corporation as the amount of borrowings must be fully secured. Other short-term borrowed funds consist of FHLB advances of $10,457,143 with interest at 1.92% as of December 31, 2018, and $17,971,429 with interest at 1.73% as of December 31, 2017. $4.457 million of short-term borrowings are short-term portions of long-term principal reducing Federal Home Loan Bank advances. Information concerning federal funds purchased and FHLB short-term advances are summarized as follows: 2018 2017 Average balance during the year $ 17,305,184 $ 12,238,066 Average interest rate during the year 2.29 % 1.83 % Maximum month-end balance during the year $ 20,971,429 $ 22,114,286 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. LONG-TERM DEBT Long-term debt at December 31, 2018 and 2017, consisted of the following: 2018 2017 Advance from FHLB with 1.25% fixed rate of interest with annual installment payments maturing September 30, 2020. $ 1,600,000 $ 3,200,000 Advance from FHLB with 1.94% fixed rate of interest with annual installment payments maturing December 16, 2022. 2,571,429 3,428,571 Advance from FHLB with 1.42% fixed rate of interest with annual installment payments maturing August 30, 2023. 0 4,285,715 Advance from FHLB with a 1.53% fixed rate of interest maturing January 10, 2019. 0 1,500,000 Advance from FHLB with a 1.60% fixed rate of interest maturing July 10, 2019. 0 1,500,000 Advance from FHLB with a 1.80% fixed rate of interest maturing July 10, 2020. 2,000,000 2,000,000 Advance from FHLB with a 1.93% fixed rate of interest with annual installment payments maturing September 28, 2022. 6,000,000 8,000,000 Advance from FHLB with a 2.34% fixed rate of interest with annual installment payments maturing December 5, 2024. 0 5,142,857 Advance from FHLB with a 3.018% fixed rate of interest maturing Sept. 17, 2021. 3,000,000 0 Advance from FHLB with a 3.192% fixed rate of interest maturing Sept. 20, 2023. 3,000,000 0 Advance from FHLB with a 3.400% fixed rate of interest maturing Sept. 20, 2025. 3,000,000 0 Total long-term debt $ 21,171,429 $ 29,057,143 The advances from FHLB are collateralized by the pledging of a combination of 1-4 family residential mortgages and multifamily loans. At December 31, 2018, 1-4 family residential mortgage loans and multifamily loans with a lendable collateral value of $61,443,772 were pledged to secure these advances. At December 31, 2017, 1-4 family residential mortgage loans and multifamily loans with a lendable collateral value of $58,684,267 were pledged to secure these advances. The amount of FHLB Stock held is based on membership and level of FHLB advances. At year end 2018 and 2017, the amount of stock held that is based on membership was $439,600 and $403,000, respectively, and the amount of stock held that is based on the level of FHLB advances was $1,380,700 and $2,035,200, respectively. At December 31, 2018, the Corporation had approximately $96,800,000 of unused lines of credit with the FHLB. The following are maturities of long-term debt for the next five years. At December 31, 2018, there was no floating rate long-term debt. Due in: Fixed Rate Amount 2019 $ 0 2020 6,457,143 2021 5,857,143 2022 2,857,143 2023 3,000,000 Later years 3,000,000 Total long-term debt $ 21,171,429 |
Employee Benefits and Retiremen
Employee Benefits and Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits and Retirement Plans | 9. EMPLOYEE BENEFITS AND RETIREMENT PLANS Pension Plan The Corporation has a noncontributory defined benefit pension plan which covers most employees who have attained the age of 21 years and completed one year of continuous service. The Corporation is providing for the cost of this plan as benefits are accrued based upon actuarial determinations employing the aggregate funding method. The table of actuarially computed benefit obligations and net assets and the related changes of the Plan at December 31, 2018, 2017, and 2016, is presented below. 2018 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year $ 12,745,058 $ 13,149,559 $ 13,885,378 Service cost 0 0 0 Interest cost 657,845 712,228 764,323 Amendments 0 0 0 Settlement (100,395 ) (129,172 ) (841,941 ) Benefits paid (1,097,859 ) (1,116,643 ) (1,131,148 ) Other – net (412,047 ) 129,086 472,947 Benefit obligation at end of year $ 11,792,602 $ 12,745,058 $ 13,149,559 Change in Plan Assets Fair value of plan assets at beginning of year $ 10,672,811 $ 10,574,145 $ 11,420,270 Actual return on plan assets (254,803 ) 864,481 576,964 Employer contribution 460,000 480,000 550,000 Benefits paid (1,198,254 ) (1,245,815 ) (1,973,089 ) Fair value of plan assets at end of year $ 9,679,754 $ 10,672,811 $ 10,574,145 2018 2017 2016 Funded status $ (2,112,848 ) $ (2,072,247 ) $ (2,575,414 ) Unrecognized net actuarial (gain)/loss 0 0 0 Unrecognized prior service cost 0 0 0 Pension liability included in other liabilities $ (2,112,848 ) $ (2,072,247 ) $ (2,575,414 ) Accumulated benefit obligation $ 11,792,602 $ 12,745,058 $ 13,149,559 Amount recognized in consolidated balance sheet consist of the following: 2018 2017 2016 Accrued Pension $ 2,112,848 $ 2,072,247 $ 2,575,414 Deferred tax assets $ 443,698 $ 435,172 $ 875,641 Accumulated other comprehensive income 1,669,150 1,637,075 1,699,773 Total $ 2,112,848 $ 2,072,247 $ 2,575,414 Components of Pension Cost 2018 2017 2016 Service cost $ 0 $ 0 $ 0 Interest cost on benefit obligation 657,845 712,228 764,323 Expected return on plan assets (721,735 ) (716,622 ) (775,423 ) Other - net 482,679 587,821 657,260 Net periodic pension cost 418,789 583,427 646,160 Partial recognition of loss due to settlement 0 0 426,599 Total $ 418,789 $ 583,427 $ 1,072,759 Other changes in plan assets and benefit obligations recognized in comprehensive income: 2018 2017 2016 Net loss (gain) $ 40,601 $ (503,167 ) $ 110,306 Prior service costs 0 0 0 Total recognized in other comprehensive income (loss) 40,601 (503,167 ) 110,306 Net periodic pension cost 418,789 583,427 646,160 Partial recognition of loss due to settlement 0 0 426,599 Total recognized in net periodic pension cost and other comprehensive income $ 459,390 $ (80,260 ) $ 1,183,065 After adopting ASC Topic 960, Employer’s Accounting for Defined Benefit Pension Plan and Other Postretirement Plans, and freezing its pension retirement plan, the Corporation increased the accrued liability by $40,601 in 2018 and decreased $503,167 in 2017. Also, changes were made to other comprehensive income (loss) of ($32,075) for 2018 and $62,698 for 2017 on a pre-tax basis. During 2018, the fair value of the plan assets decreased $993,057. At December 31, 2018, the plan assets included cash and cash equivalents, certificates of deposits with banks, U.S. government agency securities, corporate notes, and equity securities. Assumptions used to determine the benefit obligation as of December 31, 2018 and 2017 respectively were: 2018 2017 Weighted-Average Assumptions as of December 31 Discount rate 5.70 % 5.70 % Rate of compensation increase N/A N/A For the years ended December 31, 2018, 2017, and 2016, the assumptions used to determine net periodic pension costs are as follows: 2018 2017 2016 Discount rate 5.70 % 5.70 % 5.75 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A The expected rate of return represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In determining the expected rate of return, the Corporation considers long-term compound annualized returns of historical market data as well as actual returns on the Corporation’s plan assets, and applies adjustments that reflect more recent capital market experience. The Corporation’s pension plan investment objective is both security and long-term stability, with moderate growth. The investment strategies and policies employed provide for investments, other than “fixed-dollar” investments, to prevent erosion by inflation. Sufficient funds are held in a liquid nature (money market, short-term securities) to allow for the payment of plan benefits and expenses, without subjecting the funds to loss upon liquidation. In an effort to provide a higher return with lower risk, the fund assets are allocated between stocks, fixed income securities, and cash equivalents. All plan investments and transactions are in compliance with ERISA and any other law applicable to employee benefit plans. The targeted investment portfolio is allocated up to 45% in equities, 50% to 90% in fixed-income investments, and up to 20% in cash equivalent investments. All the Corporation’s equity investments are in mutual funds with a Morningstar rating of 3 or higher, have at least $300 million in investments, and have been in existence 5 years or more. Fixed income securities include issues of the U.S. government and its agencies and corporate notes. Any corporate note purchased has a rating (by Standard & Poor’s or Moody’s) of “A” or better. The average maturity of the fixed income portion of the portfolio does not exceed 10 years. Pension Asset Allocation and Fair Value Measurement as of December 31 2018 2017 Fair Value Level 1 % Fair Value Level 1 % Investment at fair value as determined by quoted market price: Equity $ 3,482,765 $ 3,482,765 36 % $ 4,302,437 $ 4,302,437 40 % Fixed income 1,096,033 1,096,033 11 % 1,351,048 1,351,048 13 % Total $ 4,578,798 $ 4,578,798 47 % $ 5,653,485 $ 5,653,485 53 % Investment as estimated fair value: Certificates of deposit $ 4,521,110 $ 4,521,110 47 % $ 4,283,144 $ 4,283,144 40 % Cash and cash equivalent 579,846 579,846 6 % 736,182 736,182 7 % Total $ 5,100,956 $ 5,100,956 53 % $ 5,019,326 $ 5,019,326 47 % Total $ 9,679,754 $ 9,679,754 100 % $ 10,672,811 $ 10,672,811 100 % All of the pension plan’s investments were reported as Level 1 assets and received Level 1 fair value measurement. ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy consists of three broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical assets and have the highest priority, and Level 3 inputs have the lowest priority. These levels are: Level 1 - The fair values of mutual funds, preferred stock, corporate notes, and U.S. government agency securities were based on quoted market prices. Money market funds and certificates of deposit were reported at fair value. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that were not active, and model-based valuation techniques for which all significant assumptions were observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Estimated Contributions The Corporation expects to contribute $400,000 to its pension plan in 2019. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service and decrements as appropriate, are expected to be paid for fiscal years beginning: 2019 1,159,000 2020 1,127,000 2021 1,097,000 2022 1,113,000 2023 1,075,000 Years 2024 – 2028 4,744,000 The estimated amortization amount for 2019 is a net loss of $580,843, no prior service cost or credit, and no net transition asset or obligation. Southwest Georgia Bank 401(K) Plan In place of the Corporation’s frozen defined benefit pension retirement plan, the Corporation offers its employees a 401(K) Plan. This 401(K) plan is a qualified defined contribution plan as provided for under Section 401(K) of the Internal Revenue Code. This plan is a “safe–harbor” plan meaning that the Corporation will match contributions dollar for dollar for the first four percent of salary participants defer into the plan. The plan does allow for discretionary match in excess of the four percent and that the participants are allowed to defer the maximum amount of salary. The Corporation matched the employee participants for the first four percent of salary contributing to the plan $219,006, $204,565, and $186,253 for the years ended December 31, 2018, 2017, and 2016, respectively. Employee Stock Ownership Plan The Corporation has a nondiscriminatory Employee Stock Ownership Plan and Trust (the “ESOP”) administered by a trustee. The plan was established to purchase and hold Southwest Georgia Financial Corporation stock for all eligible employees. Contributions to the plan are made solely by the Corporation and are at the discretion of the Board of Directors. The annual amount of the contribution is determined by taking into consideration the financial conditions, profitability, and fiscal requirements of the Corporation. There were contributions of $475,000, $425,000, and $400,000 for the years ended December 31, 2018, 2017, and 2016, respectively. Contributions to eligible participants are based on percentage of annual compensation. As of December 31, 2018, the ESOP holds 252,248 shares of the Corporation’s outstanding common stock. There were 223,203 released shares allocated to the participants. The 29,045 unreleased shares are pledged as collateral for a $640,000 debt incurred from repurchasing participants’ shares. Dividends paid by the Corporation on ESOP shares are allocated to the participants based on shares held. ESOP shares are included in the Corporation’s outstanding shares and earnings per share computation. Directors’ Deferred Compensation Plan The Corporation has a voluntary deferred compensation plan for the Board of Directors administered by an insurance company (the “Directors’ Deferred Compensation Plan”). The plan stipulates that if a director participates in the Plan for four years, the Corporation will pay the director future monthly income for ten years beginning at normal retirement age, and the Corporation will make specified monthly payments to the director’s beneficiaries in the event of his or her death prior to the completion of such payments. The plan is funded by life insurance policies with the Corporation as the named beneficiary. This plan is closed to new director enrollment and participation. Directors and Executive Officers Stock Purchase Plan The Corporation has adopted a stock purchase plan for the executive officers and directors of Southwest Georgia Financial Corporation. Under the plan, participants may elect to contribute up to $900 monthly of salary or directors’ fees and receive corporate common stock with an aggregate value of two times their contribution. The expense incurred during 2018, 2017, and 2016 on the part of the Corporation totaled $248,800, $265,900, and $290,573, respectively. Dividend Reinvestment and Share Purchase Plan The Corporation maintains a dividend reinvestment and share purchase plan. The purpose of the plan is to provide shareholders of record of the Corporation’s common stock, who elect to participate in the plan, with a simple and convenient method of investing cash dividends and voluntary cash contributions in shares of the common stock without payment of any brokerage commissions or other charges. Eligible participants may purchase common stock through automatic reinvestment of common stock dividends on all or partial shares and make additional voluntary cash payments of not less than $5 nor more than $5,000 per month. The participant’s price of common stock purchased with dividends or voluntary cash payments will be the average price of all shares purchased in the open market, or if issued from unissued shares or treasury stock the price will be the average of the high and low sales prices of the stock on the NYSE American LLC on the dividend payable date or other purchase date. During the years ended December 31, 2018, 2017, and 2016, shares issued through the plan were 5,726, 5,286, and 6,955, respectively, at an average price of $22.63, $21.18, and $15.92, per share, respectively. These numbers of shares and average price per share are not adjusted by stock dividends. Equity Incentive Award The Corporation has a 2013 Omnibus Incentive Plan (the “Incentive Plan”) that was approved by our shareholders at the Corporation’s 2014 Annual Meeting. The Incentive Plan was established to attract, retain and motivate the Corporation’s employees, consultants, advisors and directors, to promote the success of our business by linking their personal interests to those of our shareholders and to encourage stock ownership on the part of management. Under the Incentive Plan, the Corporation may issue a maximum aggregate amount of 125,000 shares of common stock pursuant to (i) stock options, which includes incentive stock options and non-qualified stock options, (ii) stock appreciation rights, (iii) restricted stock awards, (iv) restricted stock units, (v) incentive awards, (vi) other stock-based awards and (vii) dividend equivalents. The Corporation may also grant cash-based awards under the Incentive Plan. During 2018, the Corporation granted 13,316 shares of restricted stock awards of which none are vested. The Corporation granted 4,271 shares of restricted stock awards during 2017 of which 854 are vested. The following table summarizes the movements in the Corporation’s outstanding restricted stock awards: Number of Shares Amount Non-vested balance, December 31, 2016 0 $ 0 Granted 4,271 88,153 Vested 0 0 Non-vested balance, December 31, 2017 4,271 $ 88,153 Granted 13,316 306,032 Vested (854 ) (17,627 ) Non-vested balance, December 31, 2018 16,733 $ 376,558 Awards are being amortized to expense over the five-year vesting period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES Components of income tax expense for 2018, 2017, and 2016 are as follows: 2018 2017 2016 Current expense $ 28,779 $ 1,101,902 $ 1,163,230 Deferred taxes (benefit) 639,637 517,998 (10,754 ) Total income taxes $ 668,416 $ 1,619,900 $ 1,152,476 The reasons for the difference between the federal income taxes in the consolidated statements of income and the amount and percentage computed by the applying the combine statutory federal and state income tax rate to income taxes are as follows: 2018 2017 2016 Amount % Amount % Amount % Taxes at statutory income tax rate $ 1,116,262 21.0 $ 1,845,313 34.0 $ 1,763,394 34.0 Reductions in taxes resulting from exempt income (272,486 ) (5.1 ) (524,347 ) (9.7 ) (547,556 ) (10.6 ) Other timing differences (175,360 ) (3.3 ) 298,934 5.5 (63,362 ) (1.2 ) Total income taxes $ 668,416 12.6 $ 1,619,900 29.8 $ 1,152,476 22.2 The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2018, 2017, and 2016 are summarized as follows: 2018 2017 2016 Nonqualified retirement plan $ 0 $ 0 $ 0 Intangible asset amortization 0 172,816 0 Deferred gain on covered transaction 5,004 9,352 498 Nonaccrual loan interest 8,369 (6,896 ) 32,157 Recognition of AMT tax credit carryforward 332,776 0 0 Foreclosed assets expenses 41,530 (42,075 ) (3,413 ) Bad debt expense in excess of tax (80,902 ) 423,203 (31,405 ) Realized impairment gain on equity securities 0 0 0 Accretion of discounted bonds 16,805 14,772 33,187 Gain on disposition of discounted bonds (4,188 ) (28,215 ) (23,059 ) Book and tax depreciation difference 357,266 (24,959 ) (18,719 ) Other timing differences (37,023 ) 0 0 Total deferred taxes $ 639,637 $ 517,998 $ (10,754 ) ASC 740, Income Taxes, requires organizations to recognize the effect of a change in tax rates at the date of enactment by adjusting its deferred tax liabilities and assets to the new tax rate. With the Jobs and Tax Cut Act of 2017 being signed into law in December 2017, our deferred taxes were revalued resulting in additional income tax expense of $419,359 at December 31, 2017, leaving $98,639 as the actual current period timing difference. December 31 2018 2017 Deferred tax assets: Nonaccrual loan interest $ 474 $ 8,843 Deferred gain on covered transaction 9,300 14,304 Alternative minimum tax 0 332,776 Foreclosed assets expenses 10,163 51,693 Intangible asset amortization 125,883 125,883 Bad debt expense in excess of tax 720,063 639,161 Realized loss on other-than-temporarily impaired equity securities 214,353 214,353 Deferred directors compensation 133,057 104,561 Capital loss carryforward 32,878 32,878 Pension plan 443,698 435,172 Unrealized losses on securities available for sale 137,761 0 Total deferred tax assets 1,827,630 1,959,624 Deferred tax liabilities: Accretion on bonds and gain on discounted bonds 68,307 55,690 Book and tax depreciation difference 575,899 218,634 Unrealized gains on securities available for sale 0 1,982 Total deferred tax liabilities 644,206 276,306 Net deferred tax assets $ 1,183,424 $ 1,683,318 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. RELATED PARTY TRANSACTIONS The ESOP held 252,248 shares of the Corporation’s stock as of December 31, 2018, of which 29,045 shares have been pledged to secure the ESOP’s debt to the Corporation. In the normal course of business, the Bank has made loans at prevailing interest rates and terms to directors and executive officers of the Corporation and its subsidiaries, and to their affiliates. The aggregate indebtedness to the Bank of these related parties approximated $1,567,000 and $1,079,000 at December 31, 2018 and 2017, respectively. During 2018, approximately $811,000 of such loans were made, and repayments totaled approximately $323,000. None of these above mentioned loans were restructured, nor were any related party loans charged off during 2018 or 2017. Also, during 2018 and 2017, directors and executive officers had approximately $2,015,000 and $2,072,000, respectively, in deposits with the Bank. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk | 12. COMMITMENTS, CONTINGENT LIABILITIES, AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK In the normal course of business, various claims and lawsuits may arise against the Corporation. Management, after reviewing with counsel all actions and proceedings, considers that the aggregate liability or loss, if any, will not be material. The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own risk exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit in the form of loans or through letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract or notional amounts of the instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. Commitments to extend credit are contractual obligations to lend to a customer as long as all established contractual conditions are satisfied. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by a customer. Standby letters of credit and financial guarantees are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. Standby letters of credit and financial guarantees are generally terminated through the performance of a specified condition or through the lapse of time. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual or notional amounts of these instruments. As these off-balance sheet financial instruments have essentially the same credit risk involved in extending loans, the Corporation generally uses the same credit and collateral policies in making these commitments and conditional obligations as it does for on-balance sheet instruments. Since many of the commitments to extend credit and standby letters of credit are expected to expire without being drawn upon, the contractual or notional amounts do not represent future cash requirements. The contractual or notional amounts of financial instruments having credit risk in excess of that reported in the Consolidated Balance Sheets are as follows: Dec. 31, 2018 Dec. 31, 2017 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 39,418,110 $ 24,706,357 Standby letters of credit and financial guarantees $ 4,342,849 $ 3,134,849 The Corporation has no lease obligations that require capitalization. The rental agreement for the loan production office in Tifton, Georgia ended July 31, 2018. The Corporation’s remaining lease is an operating lease for postage services, which expires December 2020. The following table shows scheduled future cash payments under this obligation as of December 31, 2018. Payments Due by Period Total Less than 1 Year 1-3 Years 4-5 Years After 5 Years Operating leases $ 10,296 $ 5,148 $ 5,148 $ 0 $ 0 Rental expenses were $9,100, $15,600, and $15,600 for the years ended December 31, 2018, 2017, and 2016, respectively. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | 13. FAIR VALUE MEASUREMENTS AND DISCLOSURES The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. From time to time, the Corporation may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and foreclosed real estate. Additionally, the Corporation is required to disclose, but not record, the fair value of other financial instruments. Fair Value Hierarchy: Under ASC Topic 820, the Corporation groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities which are either recorded or disclosed at fair value. Cash and Cash Equivalents: For disclosure purposes for cash and due from banks, interest bearing deposits in other banks and federal funds sold, the carrying amount is a reasonable estimate of fair value. Certificates of Deposit in Other Banks: For disclosure purposes for certificates of deposit in other banks, the carrying amount is a reasonable estimate of fair value. 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. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. Securities classified as Level 3 include asset-backed securities in less liquid markets. Investment Securities Held to Maturity: Investment securities held to maturity are not recorded at fair value on a recurring basis. For disclosure purposes, fair value measurement is based upon quoted prices, if available. Federal Home Loan Bank Stock: For disclosure purposes, the carrying value of other investments approximate fair value. Loans: The Corporation does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific allocation is established within the allowance for loan losses. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310, Accounting by Creditors for Impairment of a Loan For disclosure purposes, the fair value of fixed rate loans which are not considered impaired, is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For unimpaired variable rate loans, the carrying amount is a reasonable estimate of fair value for disclosure purposes. Foreclosed Assets: Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate. Subsequently, other real estate assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Corporation records the other real estate as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Corporation records the other real estate asset as nonrecurring Level 3. Bank Owned Life Insurance: For disclosure purposes, for cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value. Deposits: For disclosure purposes, the fair value of demand deposits, savings accounts, NOW accounts and money market deposits is the amount payable on demand at the reporting date, while the fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using current rates at which comparable certificates would be issued. FHLB Advances: For disclosure purposes, the fair value of the FHLB fixed rate borrowing is estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Assets Recorded at Fair Value on a Recurring Basis: The table below presents the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2018 and 2017. December 31, 2018 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 954,570 $ 0 $ 0 $ 954,570 U.S. government agency securities 0 45,207,005 0 45,207,005 State and municipal securities 0 7,377,935 0 7,377,935 Residential mortgage-backed securities 0 4,774,067 0 4,774,067 Total $ 954,570 $ 57,359,007 $ 0 $ 58,313,577 December 31, 2017 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 967,770 $ 0 $ 0 $ 967,770 U.S. government agency securities 0 43,860,090 0 43,860,090 State and municipal securities 0 7,573,689 0 7,573,689 Residential mortgage-backed securities 0 1,861,712 0 1,861,712 Total $ 967,770 $ 53,295,491 $ 0 $ 54,263,261 Assets Recorded at Fair Value on a Nonrecurring Basis: The Corporation may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2018 and 2017. December 31, 2018 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 3,838,151 3,838,151 Total assets at fair value $ 0 $ 0 $ 3,965,756 $ 3,965,756 December 31, 2017 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 758,878 $ 758,878 Impaired loans 0 0 4,563,951 4,563,951 Total assets at fair value $ 0 $ 0 $ 5,322,829 $ 5,322,829 Foreclosed properties that are included above as measured at fair value on a nonrecurring basis are those properties that resulted from a loan that had been foreclosed and charged down or have been written down subsequent to foreclosure. Foreclosed properties are generally recorded at the appraised value less estimated selling costs in the range of 15 – 20%. Loans that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have been either partially charged off or have specific reserves assigned to them. Nonaccrual impaired loans that are collateral dependent are generally written down to a range of 80 – 85% of appraised value which considers the estimated costs to sell. Specific reserves are established for impaired loans based on appraised value of collateral or discounted cash flows. The carrying amount and estimated fair values of the Corporation’s assets and liabilities which are required to be either disclosed or recorded at fair value at December 31, 2018 and 2017, are as follows: Estimated Fair Value December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 35,499 $ 35,499 $ 0 $ 0 $ 35,499 Certificates of deposit in other banks 2,732 2,732 0 0 2,732 Investment securities available for sale 58,314 955 57,359 0 58,314 Investment securities held to maturity 36,827 0 37,010 0 37,010 Federal Home Loan Bank stock 1,820 0 1,820 0 1,820 Loans, net 373,321 0 362,373 3,838 366,228 Bank owned life insurance 6,779 0 6,779 0 6,779 Liabilities: Deposits 455,640 0 456,245 0 456,245 Federal Home Loan Bank advances 31,629 0 31,591 0 31,591 Estimated Fair Value December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 34,138 $ 34,138 $ 0 $ 0 $ 34,138 Certificates of deposit in other banks 1,985 1,985 0 0 1,985 Investment securities available for sale 54,364 968 53,396 0 54,364 Investment securities held to maturity 44,591 0 45,148 0 45,148 Federal Home Loan Bank stock 2,438 0 2,438 0 2,438 Loans, net 327,130 0 320,684 4,564 325,248 Bank owned life insurance 6,553 0 6,553 0 6,553 Liabilities: Deposits 397,006 0 397,331 0 397,331 Federal Home Loan Bank advances 47,029 0 46,658 0 46,658 Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement element. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates included herein are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the fair value of assets and liabilities that are not required to be recorded or disclosed at fair value like premises and equipment. 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 the estimates. |
Supplemental Financial Data
Supplemental Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Income Statement Elements [Abstract] | |
Supplemental Financial Data | 14. SUPPLEMENTAL FINANCIAL DATA Components of other income and other operating expense in excess of one percent of gross revenue for the respective periods are as follows: Years Ended December 31 2018 2017 2016 Income: Bank card interchange fees $ 576,359 $ 600,619 $ 506,506 Expense: Other professional fees $ 287,273 $ 317,147 $ 202,267 Advertising & public relations $ 264,269 $ 192,016 $ 173,595 Director & board committee fees $ 241,523 $ 278,821 $ 328,919 FDIC insurance assessment $ 233,878 $ 247,963 $ 201,605 Administrative expense – employee benefit plans $ 209,399 $ 207,620 $ 231,311 Telephone expense $ 284,586 $ 180,559 $ 155,393 |
Shareholders' Equity _ Regulato
Shareholders' Equity / Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity / Regulatory Matters | 15. SHAREHOLDERS’ EQUITY / REGULATORY MATTERS Dividends paid by the Bank subsidiary are the primary source of funds available to the parent company for payment of dividends to its shareholders and other needs. Banking regulations limit the amount of dividends that may be paid without prior approval of the Bank’s regulatory agency. At December 31, 2018, approximately $2,375,242 of the Bank’s net assets were available for payment of dividends without prior approval from the regulatory authorities. The Federal Reserve Board requires that banks maintain reserves based on their average deposits in the form of vault cash and average deposit balances at the Federal Reserve Banks. For the year ended December 31, 2018, the Bank had a total reserve requirement of $5,504,000. The Corporation (on a consolidated basis) 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 possibly additional discretionary actions by such agencies that, if undertaken, could have a direct material effect on the Corporation’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Total, Common Equity Tier I, and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital to average assets (as defined). As of December 31, 2018 and 2017, the Corporation met all capital adequacy requirements. As of December 31, 2018, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum Total risk-based, Common Equity Tier I risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the following tables. Under the Basel III rules, the Bank must hold a capital conservation buffer above the minimum regulatory risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2018 is 1.875%. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Corporation’s and the Bank’s actual capital amounts and ratios as of December 31, 2018 and 2017, are also presented in the table. As a result of regulatory limitations at December 31, 2018, approximately $39,122,012 of the parent company’s investments in net assets of the subsidiary bank of $41,497,254, as shown in the accompanying condensed balance sheets in Note 16, was restricted from transfer by the subsidiary bank to the parent company in the form of cash dividends. The Corporation’s and the Bank’s ratios under the above rules at December 31, 2018 and 2017, are set forth in the following tables. As of December 31, 2018 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Common equity Tier 1 (to risk- risk- weighted assets) $ 45,802,434 11.97 % $ 17,217,892 > N/A* N/A* Total capital (to risk- weighted assets) $ 49,231,303 12.87 % $ 30,609,586 > N/A* N/A* Tier I capital (to risk- weighted assets) $ 45,802,434 11.97 % $ 22,957,189 > N/A* N/A* Leverage (tier I capital to average assets) $ 45,802,434 8.62 % $ 21,265,996 > N/A* N/A* Southwest Georgia Bank Common equity Tier 1 (to risk- risk- weighted assets) $ 43,680,743 11.44 % $ 17,180,290 > $ 24,815,974 > Total capital (to risk- weighted assets) $ 47,109,612 12.34 % $ 30,542,738 > $ 38,178,422 > Tier I capital (to risk- weighted assets) $ 43,680,743 11.44 % $ 22,907,053 > $ 30,542,738 > Leverage (tier I capital to average assets) $ 43,680,743 8.24 % $ 21,206,909 > $ 26,508,636 > As of December 31, 2017 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Common equity Tier 1 (to risk- risk- weighted assets) $ 42,756,979 12.74 % $ 15,098,672 > N/A* N/A* Total capital (to risk- weighted assets) $ 45,800,611 13.65 % $ 26,842,084 > N/A* N/A* Tier I capital (to risk- weighted assets) $ 42,756,979 12.74 % $ 20,131,563 > N/A* N/A* Leverage (tier I capital to average assets) $ 42,756,979 8.79 % $ 19,467,338 > N/A* N/A* Southwest Georgia Bank Common equity Tier 1 (to risk- risk- weighted assets) $ 40,247,187 12.02 % $ 15,069,727 > $ 21,767,383 > Total capital (to risk- weighted assets) $ 43,290,819 12.93 % $ 26,790,625 > $ 33,488,282 > Tier I capital (to risk- weighted assets) $ 40,247,187 12.02 % $ 20,092,969 > $ 26,790,625 > Leverage (tier I capital to average assets) $ 40,247,187 8.29 % $ 19,418,765 > $ 24,273,457 > *N/A - As of December 31, 2017, the Corporation met the definition under the Basel III Capital Rules of a small bank holding company and, therefore, was exempt from consolidated risk-based and leverage capital adequacy guidelines for bank holding companies. |
Parent Company Financial Data
Parent Company Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Data | 16. PARENT COMPANY FINANCIAL DATA Southwest Georgia Financial Corporation’s condensed balance sheets as of December 31, 2018 and 2017, and its related condensed statements of operations and cash flows for the years ended are as follows: Condensed Balance Sheets as of December 31, 2018 and 2017 (Dollars in thousands) 2018 2017 ASSETS Cash $ 776 $ 1,694 Investment in consolidated wholly-owned bank subsidiary, at equity 41,497 38,633 Loans 640 105 Other assets 708 711 Total assets $ 43,621 $ 41,143 LIABILITIES AND SHAREHOLDERS’ EQUITY Total liabilities $ 2 $ 0 Shareholders’ equity: Common stock, $1 par value, 5,000,000 shares authorized, 2,545,776 shares and 4,293,835 shares issued for 2018 & 2017 2,546 4,294 Additional paid-in capital 18,419 31,701 Retained earnings 24,841 33,020 Accumulated other comprehensive loss (2,187 ) (1,629 ) Treasury stock, at cost, 0 for 2018 and 1,752,330 for 2017 (0 ) (26,243 ) Total shareholders’ equity 43,619 41,143 Total liabilities and shareholders’ equity $ 43,621 $ 41,143 Condensed Statements of Income and Expense for the years ended December 31, 2018, 2017, and 2016 (Dollars in thousands) 2018 2017 2016 Income: Dividend received from bank subsidiary $ 1,200 $ 2,000 $ 0 Interest income 45 26 23 Total income 1,245 2,026 23 Expenses: Other 189 172 178 Income before income taxes and equity in Undistributed income of bank subsidiary 1,056 1,854 (155 ) Income tax benefit – allocated from consolidated return 40 88 91 Income before equity in undistributed income of subsidiary 1,096 1,942 (64 ) Equity in undistributed income of subsidiary 3,551 1,865 4,098 Net income 4,647 3,807 4,034 Retained earnings – beginning of year 33,020 30,334 27,370 Adjustment to correct immaterial misstatement of investment in bank subsidiary in prior periods (129 ) 0 0 Cash dividend declared (1,196 ) (1,121 ) (1,070 ) Retirement of treasury stock (11,501 ) 0 0 Retained earnings – end of year $ 24,841 $ 33,020 $ 30,334 Condensed Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 (Dollars in thousands) 2018 2017 2016 Cash flow from operating activities: Net income $ 4,647 $ 3,807 $ 4,034 Adjustments to reconcile net income to net cash used by operating activities: Equity in undistributed earnings of subsidiary (3,551 ) (1,865 ) (4,098 ) Changes in: Other assets 21 (25 ) (16 ) Other liabilities 2 0 0 Net cash provided (used) for operating activities 1,119 1,917 (80 ) Cash flow from investing activities: Net change in loans (535 ) 80 178 Net cash provided (used) for investing activities (535 ) 80 178 Cash flow from financing activities: Cash dividend paid to shareholders (1,196 ) (1,121 ) (1,070 ) Payment to repurchase common stock (306 ) (122 ) (7 ) Net cash used for financing activities (1,502 ) (1,243 ) (1,077 ) Increase (decrease) in cash (918 ) 754 (979 ) Cash – beginning of year 1,694 940 1,919 Cash – end of year $ 776 $ 1,694 $ 940 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. EARNINGS PER SHARE Earnings per share are based on the weighted average number of common shares outstanding during the year. December 31, 2018 2017 2016 Net income $ 4,647,119 $ 3,807,492 $ 4,033,977 Net income available to common shareholders $ 4,647,119 $ 3,807,492 $ 4,033,977 Average number of common shares outstanding 2,545,565 2,547,421 2,547,778 Effect of dilutive restricted stock 0 1 0 Average number of common shares outstanding used to calculate diluted earnings per common share 2,545,565 2,547,422 2,547,778 Earnings per share - basic $ 1.83 $ 1.49 $ 1.58 Earnings per share - diluted $ 1.83 $ 1.49 $ 1.58 |
Quarterly Data
Quarterly Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data | 18. QUARTERLY DATA SOUTHWEST GEORGIA FINANCIAL CORPORATION QUARTERLY DATA (UNAUDITED) (Dollars in thousands) For the Year 2018 Fourth Third Second First Interest and dividend income $ 5,900 $ 5,640 $ 5,292 $ 5,062 Interest expense 1,116 867 725 614 Net interest income 4,784 4,773 4,567 4,448 Provision for loan losses 226 249 140 215 Net interest income after provision for loan losses 4,558 4,524 4,427 4,233 Noninterest income 1,175 978 1,060 994 Noninterest expenses 4,357 4,149 4,132 3,996 Income before income taxes 1,376 1,353 1,355 1,231 Provision for income taxes 253 209 207 (1 ) Net income $ 1,123 $ 1,144 $ 1,148 $ 1,232 Earnings per share of common stock: Basic $ .44 $ .45 $ .45 $ .48 Diluted $ .44 $ .45 $ .45 $ .48 For the Year 2017 Fourth Third Second First Interest and dividend income $ 5,018 $ 4,859 $ 4,767 $ 4,502 Interest expense 559 472 435 436 Net interest income 4,459 4,387 4,332 4,066 Provision for loan losses 75 75 75 75 Net interest income after provision for loan losses 4,384 4,312 4,257 3,991 Noninterest income 960 969 1,100 1,283 Noninterest expenses 3,892 4,068 3,968 3,901 Income before income taxes 1,452 1,213 1,389 1,373 Provision for income taxes 735 261 316 308 Net income $ 717 $ 952 $ 1,073 $ 1,065 Earnings per share of common stock: Basic $ .28 $ .37 $ .42 $ .42 Diluted $ .28 $ .37 $ .42 $ .42 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 19. SEGMENT REPORTING The Corporation operations are divided into four reportable business segments: The Retail and Commercial Banking Services, Insurance Services, Wealth Strategies Services, and Financial Management Services. These operating segments have been identified primarily based on the Corporation’s organizational structure. The Retail and Commercial Banking Services segment serves consumer and commercial customers by offering a variety of loan and deposit products, and other traditional banking services. The Insurance Services segment offers clients a full spectrum of commercial and personal lines insurance products including life, health, property, and casualty insurance. The Wealth Strategies Services segment provides personal trust administration, estate settlement, investment management, employee retirement benefit services, and the Individual Retirement Account (IRA) administration. Also, this segment offers full-service retail brokerage which includes the sale of retail investment products including stocks, bonds, mutual funds, and annuities. The Financial Management Services segment is responsible for the management of the investment securities portfolio. It also is responsible for managing financial risks, including liquidity and interest rate risk. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Corporation evaluates performance based on profit or loss from operations after income taxes not including nonrecurring gains or losses. The Corporation’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technology and marketing strategies. The Corporation allocates capital and funds used or funds provided for each reportable business segment. Also, each segment is credited or charged for the cost of funds provided or used. These credits and charges are reflected as net intersegment interest income (expense) in the table below. The Corporation does allocate income taxes to the segments. Other revenue represents noninterest income, exclusive of the net gain (loss) on disposition of assets and expenses associated with administrative activities which are not allocated to the segments. Those expenses include audit, compliance, investor relations, marketing, personnel, and other executive or parent company expenditures. The Corporation does not have operating segments other than those reported. Parent Company and the Administrative Offices financial information is included in the “Other” category, and is deemed to represent an overhead function rather than an operating segment. The Administrative Offices include audit, marketing, information technology, personnel, and the executive office. The Corporation does not have a single external customer from which it derives 10% or more of its revenue and operates in one geographical area. Information about reportable business segments, and reconciliation of such information to the consolidated financial statements for the years ended December 31, 2018, 2017, and 2016, are as follows: Segment Reporting For the year ended December 31, 2018 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals Net Interest Income (expense) external customers $ 16,334 $ — $ — $ 2,193 $ — $ 45 $ 18,572 Net intersegment interest income (expense) 1,818 20 (7 ) (1,831 ) — — — Net interest income 18,152 20 (7 ) 362 — 45 18,572 Provision for Loan Losses 830 — — — — — 830 Noninterest Income (expense) external customers 1,765 1,604 665 259 — (86 ) 4,207 Intersegment noninterest Income (expense) (20 ) 20 31 — (31 ) — — Total Noninterest Income 1,745 1,624 696 259 (31 ) (86 ) 4,207 Noninterest Expenses: Depreciation 845 37 18 56 — 81 1,037 Amortization of intangibles — 16 — — — — 16 Other Noninterest expenses 10,974 1,158 624 752 — 2,073 15,581 Total Noninterest expenses 11,819 1,211 642 808 — 2,154 16,634 Pre-tax income 7,248 433 47 (187 ) (31 ) (2,195 ) 5,315 Provision for Income Taxes 1,184 68 3 (210 ) — (377 ) 668 Net Income $ 6,064 $ 365 $ 44 $ 23 $ (31 ) $ (1,818 ) $ 4,647 Assets $ 628,222 $ 1,971 $ 267 $ 132,033 $ (229,108 ) $ 1,448 $ 534,833 Expenditures of Fixed Assets $ 3,321 $ 2 $ 8 $ 57 $ — $ — $ 3,388 Amounts included in the “Other” column are as follows: Other Net interest Income: Parent Company $ 45 Noninterest Income: Executive office miscellaneous income (86 ) Noninterest Expenses: Parent Company corporate expenses 188 Executive office expenses not allocated to segments 1,966 Provision for Income taxes: Parent Company income taxes (benefit) (40 ) Executive office income taxes not allocated to segments (337 ) Net Income: $ (1,818 ) Segment assets: Parent Company assets, after intercompany elimination $ 1,448 Segment Reporting For the year ended December 31, 2017 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals Net Interest Income (expense) external customers $ 15,119 $ — $ — $ 2,099 $ — $ 26 $ 17,244 Net intersegment interest income (expense) 1,817 16 (6 ) (1,827 ) — — — Net interest income 16,936 16 (6 ) 272 — 26 17,244 Provision for Loan Losses 300 — — — — — 300 Noninterest Income (expense) external customers 2,099 1,525 612 75 — 1 4,312 Intersegment noninterest Income (expense) (16 ) 16 32 — (32 ) — — Total Noninterest Income 2,083 1,541 644 75 (32 ) 1 4,312 Noninterest Expenses: Depreciation 685 33 24 56 — 83 881 Amortization of intangibles — 16 — — — — 16 Other Noninterest expenses 10,328 1,119 592 780 — 2,113 14,932 Total Noninterest expenses 11,013 1,168 616 836 — 2,196 15,829 Pre-tax income 7,706 389 22 (489 ) (32 ) (2,169 ) 5,427 Provision for Income Taxes 1,784 86 (2 ) 306 — (554 ) 1,620 Net Income $ 5,922 $ 303 $ 24 $ (795 ) $ (32 ) $ (1,615 ) $ 3,807 Assets $ 567,723 $ 1,687 $ 177 $ 138,598 $ (219,840 ) $ 727 $ 489,072 Expenditures of Fixed Assets $ 1,888 $ 48 $ 2 $ 17 $ — $ — $ 1,955 Amounts included in the “Other” column are as follows: Other Net interest Income: Parent Company $ 26 Noninterest Income: Executive office miscellaneous income 1 Noninterest Expenses: Parent Company corporate expenses 172 Executive office expenses not allocated to segments 2,024 Provision for Income taxes: Parent Company income taxes (benefit) (88 ) Executive office income taxes not allocated to segments (466 ) Net Income: $ (1,615 ) Segment assets: Parent Company assets, after intercompany elimination $ 727 Segment Reporting For the year ended December 31, 2016 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals Net Interest Income (expense) external customers $ 13,837 $ — $ — $ 1,940 $ — $ 24 $ 15,801 Net intersegment interest income (expense) 1,671 11 (6 ) (1,676 ) — — — Net interest income 15,508 11 (6 ) 264 — 24 15,801 Provision for Loan Losses 160 — — — — — 160 Noninterest Income (expense) external customers 2,316 1,477 584 80 — 2 4,459 Intersegment noninterest Income (expense) (11 ) 11 32 — (32 ) — — Total Noninterest Income 2,305 1,488 616 80 (32 ) 2 4,459 Noninterest Expenses: Depreciation 738 30 23 57 — 76 924 Amortization of intangibles — 16 — — — — 16 Other Noninterest expenses 9,260 1,184 585 737 — 2,208 13,974 Total Noninterest expenses 9,998 1,230 608 794 — 2,284 14,914 Pre-tax income 7,655 269 2 (450 ) (32 ) (2,258 ) 5,186 Provision for Income Taxes 1,794 61 (7 ) (107 ) — (589 ) 1,152 Net Income $ 5,861 $ 208 $ 9 $ (343 ) $ (32 ) $ (1,669 ) $ 4,034 Assets $ 507,538 $ 1,414 $ 199 $ 148,099 $ (209,619 ) $ 870 $ 448,501 Expenditures of Fixed Assets $ 1,409 $ 15 $ 11 $ 20 $ — $ — $ 1,455 Amounts included in the “Other” column are as follows: Other Net interest Income: Parent Company $ 24 Noninterest Income: Executive office miscellaneous income 2 Noninterest Expenses: Parent Company corporate expenses 178 Executive office expenses not allocated to segments 2,106 Provision for Income taxes: Parent Company income taxes (benefit) (91 ) Executive office income taxes not allocated to segments (498 ) Net Income: $ (1,669 ) Segment assets: Parent Company assets, after intercompany elimination $ 870 |
Adjustment to Retained Earnings
Adjustment to Retained Earnings | 12 Months Ended |
Dec. 31, 2018 | |
Retained Earnings Note Disclosure [Abstract] | |
Adjustment to Retained Earnings | 20. ADJUSTMENT TO RETAINED EARNINGS During year-end processing for 2018, the Corporation discovered that its Directors’ Deferred Compensation Plan accrual and the income related to the Cash Surrender Value of related policies to fund the plan had not been calculated properly for a number of years. Once discovered, the proper calculations were made and confirmed. The net effect on prior periods presented was determined to be immaterial and was therefore charged to 2018 Retained Earnings without restating prior periods. See the Consolidated Statements of Changes in Shareholders' Equity for the treatment of the correction. After this adjustment, the 2018 Consolidated Balance Sheets reflect the net present value of payments due under this plan and the 2018 Consolidated Statements of Income reflect the correct current year expense associated with changes in the net present value of payments due under this plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. SUBSEQUENT EVENTS The Corporation performed an evaluation of subsequent events through March 29, 2019, the date upon which the Corporation’s financial statements were available for issue. The Corporation has not evaluated subsequent events after this date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and its direct and indirect subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. |
Nature of Operations | Nature of Operations The Corporation offers comprehensive financial services to consumer, business, and governmental entity customers through its banking offices in southwest Georgia. Its primary deposit products are money market, NOW, savings and certificates of deposit, and its primary lending products are consumer and commercial mortgage loans. In addition to conventional banking services, the Corporation provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by the Bank’s Southwest Georgia Insurance Services Division. The Corporation’s primary business is providing banking services through the Bank to individuals and businesses principally in the counties of Colquitt, Baker, Worth, Lowndes, Tift and the surrounding counties of southwest Georgia. The Bank operates six branch offices in its trade area. Trust and retail brokerage services are offered at an office building located at 25 2nd Avenue SW in Moultrie, and lending services are offered in Valdosta at 3520 North Valdosta Road. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with these evaluations, management obtains independent appraisals for significant properties. A substantial portion of the Corporation’s loans are secured by real estate located primarily in Georgia. Accordingly, the ultimate collection of these loans is susceptible to changes in the real estate market conditions of this market area. |
Cash and Cash Equivalents and Statement of Cash Flows | Cash and Cash Equivalents and Statement of Cash Flows For purposes of reporting cash flows, the Corporation considers cash and cash equivalents to include all cash on hand, deposit amounts due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation maintains its cash balances in several financial institutions. Accounts at the financial institutions are secured by the Federal Deposit Insurance Corporation (the “FDIC”) up to $250,000. There were uninsured deposits of $61,822 at December 31, 2018. |
Investment Securities | Investment Securities Investment securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value with unrealized gains and losses (net of tax effect) reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation has been calculated primarily using the straight-line method for buildings and building improvements over the assets estimated useful lives. Equipment and furniture are depreciated using the modified accelerated recovery system method over the assets estimated useful lives for financial reporting and income tax purposes for assets purchased on or before December 31, 2003. For assets acquired after 2003, the Corporation used the straight-line method of depreciation. The following estimated useful lives are used for financial statement purposes: Land improvements 5 – 31 years Building and improvements 10 – 40 years Machinery and equipment 5 – 10 years Computer equipment 3 – 5 years Office furniture and fixtures 5 – 10 years All of the Corporation’s leases are operating leases and are not capitalized as assets for financial reporting purposes. Maintenance and repairs are charged to expense and betterments are capitalized. Long-lived assets are evaluated regularly for other-than-temporary impairment. If circumstances suggest that their value may be impaired and the write-down would be material, an assessment of recoverability is performed prior to any write-down of the asset. Impairment on intangibles is evaluated at each balance sheet date or whenever events or changes in circumstances indicate that the carrying amount should be assessed. Impairment, if any, is recognized through a valuation allowance with a corresponding charge recorded in the income statement. |
Bank Property Held for Sale | Bank Property Held for Sale In 2016, the Bank’s former branch in Pavo, Georgia, was transferred from premises to bank property held for sale and depreciation was discontinued. The property was booked at the lower of cost or market value based on the current appraisal of $211,500. On November 30, 2018, the Corporation sold this property and recorded a loss in the amount of $96,750. |
Loans and Allowances for Loan Losses | Loans and Allowances for Loan Losses Loans are stated at principal amounts outstanding less unearned income and the allowance for loan losses. Interest income is credited to income based on the principal amount outstanding at the respective rate of interest except for interest on certain installment loans made on a discount basis which is recognized in a manner that results in a level-yield on the principal outstanding. Accrual of interest income is discontinued on loans when, in the opinion of management, collection of such interest income becomes doubtful. Accrual of interest on such loans is resumed when, in management’s judgment, the collection of interest and principal becomes probable. Fees on loans and costs incurred in origination of most loans are recognized at the time the loan is placed on the books. Because loan fees are not significant, the results on operations are not materially different from the results which would be obtained by accounting for loan fees and costs as amortized over the term of the loan as an adjustment of the yield. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual consumer and residential loans for impairment disclosures. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collection of the principal is unlikely. The allowance is an amount which management believes will be adequate to absorb estimated losses on existing loans that may become uncollectible based on evaluation of the collectability of loans and prior loss experience. This evaluation takes into consideration such factors as changes in the nature and volume of the loan portfolios, current economic conditions that may affect the borrowers’ ability to pay, overall portfolio quality, and review of specific problem loans. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based upon changes in economic conditions. Also, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require the Corporation to recognize additions to the allowance based on their judgments of information available to them at the time of their examination. |
Foreclosed Assets | Foreclosed Assets In accordance with policy guidelines and regulations, properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the fair market value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. A valuation allowance is established to record market value changes in foreclosed assets. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. There was no valuation allowance for foreclosed asset losses at December 31, 2018. Foreclosed assets totaled $127,605 at December 31, 2018, down from $758,878 at December 31, 2017. |
Intangible Assets | Intangible Assets Intangible assets are amortized over a determined useful life using the straight-line basis. These assets are evaluated annually as to the recoverability of the carrying value. The remaining intangibles will fully amortize in March 2019. |
Credit Related Financial Instruments | Credit Related Financial Instruments In the ordinary course of business, the Corporation has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Retirement Plans | Retirement Plans The Corporation and its direct and indirect subsidiaries have post-retirement plans covering substantially all employees. The Corporation makes annual contributions to the plans in amounts not exceeding the regulatory requirements. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank owns life insurance policies on a group of employees. Banking laws and regulations allow the Bank to purchase life insurance policies on certain employees in order to help offset the Bank’s overall employee compensation costs. The beneficial aspects of these life insurance policies are tax-free earnings and a tax-free death benefit, which are realized by the Bank as the owner of the policies. The cash surrender value of these policies is included as an asset on the balance sheet, and any increases in cash surrender value are recorded as noninterest income on the statement of income. At December 31, 2018 and 2017, the policies had a value of $6,779,242 and $6,553,318, respectively, and were 15.5% and 15.9%, respectively, of shareholders’ equity. These values are within regulatory guidelines. |
Income Taxes | Income Taxes The Corporation and its direct and indirect subsidiaries file a consolidated income tax return. Each subsidiary computes its income tax expense as if it filed an individual return except that it does not receive any portion of the surtax allocation. Any benefits or disadvantages of the consolidation are absorbed by the parent company. Each subsidiary pays its allocation of federal income taxes to the parent company or receives payment from the parent company to the extent that tax benefits are realized. The Corporation reports income under the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Recognition of deferred tax assets is based on management’s belief that it is more likely than not that the tax benefit associated with certain temporary differences and tax credits will be realized. The Corporation will recognize a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with an examination being presumed to occur. The amount recognized is the largest amount of a tax benefit that is greater than fifty percent likely of being realized on examination. No benefit is recorded for tax positions that do not meet the more than likely than not test. The Corporation recognizes penalties related to income tax matters in income tax expense. The Corporation is subject to U.S. federal and Georgia state income tax audit for returns for the tax period ending December 31, 2016 and subsequent years. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of the Corporation’s accumulated other comprehensive income (loss) includes the after tax effect of changes in the net unrealized gain/loss on securities available for sale and the unrealized gain/loss on pension plan benefits. |
Trust Department | Trust Department Trust income is included in the accompanying consolidated financial statements on the cash basis in accordance with established industry practices. Reporting of such fees on the accrual basis would have no material effect on reported income. |
Advertising Costs | Advertising Costs It is the policy of the Corporation to expense advertising costs as they are incurred. The Corporation does not engage in any direct-response advertising and accordingly has no advertising costs reported as assets on its balance sheet. Costs that were expensed during 2018, 2017, and 2016 were $264,269, $192,016, and $173,595, respectively. |
Regulatory Developments | Regulatory Developments The Corporation and the Bank are subject to various regulatory capital requirements administered by 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 Corporation and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the federal banking agencies about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum Tier 1 leverage, Tier 1 risk-based capital and Total risk-based capital ratios. In July 2013, the Board of Governors of the Federal Reserve System published the Basel III Capital Rules. These rules establish a comprehensive capital framework applicable to all depository institutions, certain bank holding companies with total consolidated assets below a certain threshold and all and savings and loan holding companies except for those that are substantially engaged in insurance underwriting or commercial activities. These rules implement higher minimum capital requirements for banks and certain bank holding companies, include a new common equity Tier 1 capital requirement and establish criteria that instruments must meet to be considered common equity Tier 1 capital, additional Tier 1 capital or Tier 2 capital. The Basel III Capital Rules became effective for the Bank on January 1, 2015, subject to a phase-in period, but are not applicable to bank holding companies, like the Corporation, with less than $1 billion in total consolidated assets that meet certain criteria. The minimum capital level requirements applicable to the Bank under the Basel III Capital Rules are: (i) a common equity Tier 1 risk-based capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a Total risk-based capital ratio of 8% (unchanged from the rules effective for the year ended December 31, 2014); and (iv) a Tier 1 leverage ratio of 4% for all institutions. Common equity Tier 1 capital will consist of retained earnings and common stock instruments, subject to certain adjustments. The Basel III Capital Rules set forth changes in the methods of calculating certain risk-weighted assets, which in turn affect the calculation of risk-based ratios. The new risk weightings are more punitive for assets held by banks that are deemed to be of higher risk. These changes were also effective beginning January 1, 2015. The Basel III Capital Rules also introduce a “capital conservation buffer”, which is in addition to each capital ratio and is phased-in over a three-year period beginning in January 2016. As of December 31, 2018, the Bank is considered to be well-capitalized under the Basel III Capital Rules. There have been no conditions or events since December 31, 2018, that management believes has changed the Bank’s status as “well-capitalized.” The capital ratios of the Corporation and Bank are presented in Note 15 of the Corporation’s Notes to Consolidated Financial Statements. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 118. The amendments in this update were effective upon issuance. The adoption of ASU 2018-05 had no material impact on the Corporation’s consolidated financial statements. In March 2018, FASB issued ASU 2018-04, Investment - Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The purpose of this ASU is to codify the SEC's guidance issued in Staff Accounting Bulletin 117. The amendments in this update were effective upon issuance. The adoption of ASU 2018-04 had no material impact on the Corporation’s consolidated financial statements. In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10). This Update clarifies certain aspects of the guidance issued in ASU 2016-01 including (i) an entity measuring an equity security using the measurement alternative may make an irrevocable election to change its measurement approach to a fair value method under Topic 820 for that security and any identical or similar investments of the same issuer, (ii) fair value adjustments under the measurement alternative should be as of the date the observable transaction for a similar security occurred, (iii) requiring the remeasurement of the entire value of forward contracts and purchased options when observable transactions occur on the underlying equity securities, (iv) financial liabilities for which the fair value option is elected should follow the guidance in paragraph 825-10-45-5, (v) changes in the fair value of financial liabilities for which the fair value option is elected relating to the instrument-specific credit risk should first be measured in the currency of denomination and then both components of the change in fair value should be remeasured into the reporting entity's functional currency using end-of-period spot rates, and (vi) the prospective transition approach should only be applied for instances in which the measurement alternative is applied. The guidance was effective for interim periods beginning after June 15, 2018 and may be early adopted provided ASU 2016-01 was adopted. The Company adopted the amendments in this ASU effective January 1, 2018. The adoption of ASU 2018-03 had no material impact on the Corporation’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Stock Compensation, Scope of Modification Accounting.” This ASU clarifies when changes to the terms of conditions of a share-based payment award must be accounted for as modifications. Companies will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The new guidance should reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications, as the guidance will allow companies to make certain non-substantive changes to awards without accounting for them as modifications. It does not change the accounting for modifications. ASU No. 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017; early adoption is permitted. The adoption of ASU 2017-09 had no material impact on the Corporation’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The updated accounting guidance requires changes to the presentation of the components of net periodic benefit cost on the income statement by requiring service cost to be presented with other employee compensation costs and other components of net periodic pension cost to be presented outside of any subtotal of operating income. This ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2017-07 had no material impact on the Corporation’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), which provides a new framework for determining whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption will be permitted and should apply it to transactions that have not been reported in financial statements that have been issued or made available for issuance. The adoption of ASU 2017-01 had no material impact on the Corporation’s consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. The accounting guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018. The adoption of 2016-01 had no material impact on the Corporation’s consolidated financial statements. In May 2014, the FASB began issuing guidance to change the recognition of revenue from contracts with customers. The last guidance was issued in February 2017. The standards issued during this time are as follows: ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, ASU 2016-11 Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, and ASU 2017-05 Other Income - Gains and losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This new guidance, which does not apply to financial instruments, provides that revenue should be recognized for the transfer of goods and services to customers in an amount equal to the consideration it receives or expects to receive. The guidance also includes expanded disclosure requirements that provide comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Corporation adopted the amendments in this ASU effective January 1, 2018, using the modified retrospective method. Since there was no change to net income upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not necessary. See below for additional information related to revenue generated from contracts with customers. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Corporation adopted ASC Topic 606, using the modified retrospective method. Disclosures of revenue from contracts with customers for periods beginning after January 1, 2018, are presented under ASC Topic 606 and have not materially changed from the prior year amounts. Noninterest income, within the scope of this guidance, is recognized as services are transferred to customers in an amount that reflects the considerations expected to be entitled to in exchange for those services. The Corporation's revenue streams that were in scope include service charges on deposit accounts, income from insurance services, income from trust services, Automated Teller Machine (“ATM”) surcharge and other noninterest income. Services Charges on Deposit Accounts - Service charges on deposit accounts primarily consist of monthly maintenance charges, analysis charges and Non-sufficient funds (“NSF”) charges. The NSF charges and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis charges and monthly maintenance charges are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Corporation's performance obligations are satisfied either at the time of the transaction or over the course of a month. Income from Insurance Services – Income from insurance services consists primarily of property and casualty insurance, life, health, and disability insurance. Property and casualty, life, health, and disability insurance includes the brokerage of both personal and commercial coverages. The placement of the policy is completion of the Corporation's performance obligation and revenue is recognized at that time. The Corporation's commission is primarily a percentage of the premium. Income from Trust Services – Income from Trust services consists of revenue generated from services provided for corporate, pension, and personal trusts, trustee services, and administrative services for employee benefit plans. The Corporation’s performance obligation and revenue is recognized once the service has been performed. ATM Surcharge - ATM surcharge represents revenues earned from certain terminal activity. ATM surcharges primarily consist of charges assessed to our customers for using a non-Bank ATM or a non-Bank customer using our ATM. Such surcharges generally are recognized concurrently with the delivery of services on a daily basis. Other - Other noninterest income primarily consists of transaction based revenue where the performance obligation is satisfied concurrent with the revenue recognition. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 removes the requirements to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of plan assets expected to be returned to the employer, related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. The ASU adds requirements to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and the reasons for significant gains and losses related to changes in the benefit obligation for the period. The update also clarifies the requirements to disclose the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets, and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. This update is effective for fiscal years beginning after December 15, 2020. The adoption of ASU 2018-14 is not expected to have a material impact on the Corporation’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 removes the requirements for public entities to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The ASU modifies the disclosure requirement for investments in certain entities that calculate net asset value, and clarifies that the measurement uncertainty disclosure is to communicate measurement uncertainties as of the reporting date. The ASU also requires public entities to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This update is effective for fiscal years beginning after December 15, 2019. The adoption of ASU 2018-13 is not expected to have a material impact on the Corporation’s consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In May 2017, the FASB issued ASU No. 2017-09, Stock Compensation, Scope of Modification Accounting. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350), In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323), In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets other than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Premises and Equipment | The following estimated useful lives are used for financial statement purposes: Land improvements 5 – 31 years Building and improvements 10 – 40 years Machinery and equipment 5 – 10 years Computer equipment 3 – 5 years Office furniture and fixtures 5 – 10 years |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Investments [Abstract] | |
Schedule of Securities Available for Sale | Securities Available For Sale: December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 982,044 $ 0 $ 27,474 $ 954,570 U.S. government agency securities 45,823,595 264,567 881,157 45,207,005 State and municipal securities 7,394,278 30,579 46,922 7,377,935 Residential mortgage-backed securities 4,769,668 21,579 17,180 4,774,067 Total debt securities AFS $ 58,969,585 $ 316,725 $ 972,733 $ 58,313,577 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. government treasury securities $ 979,983 $ 0 $ 12,213 $ 967,770 U.S. government agency securities 43,978,023 580,366 698,299 43,860,090 State and municipal securities 7,482,912 129,231 38,454 7,573,689 Residential mortgage-backed securities 1,812,905 51,651 2,844 1,861,712 Total debt securities AFS $ 54,253,823 $ 761,248 $ 751,810 $ 54,263,261 |
Schedule of Securities Held to Maturity | Securities Held to Maturity December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 30,582,785 $ 208,480 $ 67,434 $ 30,723,831 Residential mortgage-backed securities 6,244,288 49,490 7,282 6,286,496 Total securities HTM $ 36,827,073 $ 257,970 $ 74,716 $ 37,010,327 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value State and municipal securities $ 41,447,092 $ 527,632 $ 48,083 $ 41,926,641 Residential mortgage-backed securities 3,143,749 77,542 132 3,221,159 Total securities HTM $ 44,590,841 $ 605,174 $ 48,215 $ 45,147,800 |
Summary of Amortized Cost and Estimated Fair Value of Debt Securities | December 31, 2018 Available for Sale: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 2,147,059 $ 2,124,645 After one through five years 29,691,474 29,674,236 After five through ten years 21,585,776 20,968,318 After ten years 5,545,276 5,546,378 Total debt securities AFS $ 58,969,585 $ 58,313,577 Held to Maturity: Amortized Cost Estimated Fair Value Amounts maturing in: One year or less $ 6,483,464 $ 6,497,910 After one through five years 12,885,021 12,961,209 After five through ten years 11,035,146 11,097,382 After ten years 6,423,442 6,453,826 Total debt securities HTM $ 36,827,073 $ 37,010,327 |
Schedule of Activity of Security Sales by Intention | Securities Available For Sale: December 31, 2018 2017 2016 Proceeds of sales $ 2,879,000 $ 5,741,211 $ 11,933,634 Gross gains $ 0 $ 186,610 $ 152,102 Gross losses (165,369 ) 0 (8,068 ) Net gains (losses) on sales of available for sale securities $ (165,369 ) $ 186,610 $ 144,034 Securities Held to Maturity: December 31, 2018 2017 2016 Amortized cost of securities sold $ 0 $ 0 $ 551,949 Proceeds from sales 0 0 576,834 Net gains on sales of held to maturity securities $ 0 $ 0 $ 24,885 |
Schedule of Information Pertaining to Securities Gross Unrealized Losses by Investments | Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position, follows: December 31, 2018 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government treasury securities $ 0 $ 0 $ 27,474 $ 954,570 U.S. government agency securities 33,077 6,073,337 848,080 20,015,052 State and municipal securities 3,209 306,792 43,713 1,813,173 Residential mortgage-backed securities 14,199 3,032,237 2,981 129,410 Total debt securities available for sale $ 50,485 $ 9,412,366 $ 922,248 $ 22,912,205 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 20,209 $ 7,359,536 $ 47,225 $ 2,782,627 Residential mortgage-backed securities 5,671 879,487 1,611 89,464 Total securities held to maturity $ 25,880 $ 8,239,023 $ 48,836 $ 2,872,091 December 31, 2017 Less Than Twelve Months Twelve Months or More Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Securities Available for Sale Temporarily impaired debt securities: U.S. government treasury securities $ 12,213 $ 967,770 $ 0 $ 0 U.S. government agency securities 34,083 4,988,630 664,216 18,347,439 State and municipal securities 16,836 975,900 21,618 877,798 Residential mortgage-backed securities 0 0 2,844 188,081 Total debt securities available for sale $ 63,132 $ 6,932,300 $ 688,678 $ 19,413,318 Securities Held to Maturity Temporarily impaired debt securities: State and municipal securities $ 15,954 $ 5,521,443 $ 32,129 $ 1,281,797 Residential mortgage-backed securities 132 146,203 0 0 Total securities held to maturity $ 16,086 $ 5,667,646 $ 32,129 $ 1,281,797 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans | The composition of the Corporation’s loan portfolio at December 31, 2018 and 2017 was as follows: 2018 2017 Commercial, financial and agricultural loans $ 88,403,215 $ 73,146,397 Real estate Construction loans 24,890,536 22,287,012 Commercial mortgage loans 123,477,369 106,458,342 Residential loans 103,347,898 99,159,607 Agricultural loans 31,561,686 25,373,621 Consumer & other loans 5,086,984 3,766,332 Loans outstanding 376,767,688 330,191,311 Unearned interest and discount (17,451 ) (17,921 ) Allowance for loan losses (3,428,869 ) (3,043,632 ) Net loans $ 373,321,368 $ 327,129,758 |
Schedule of Past Due Loans and Nonaccrual Loans | The following tables present an age analysis of past due loans and nonaccrual loans segregated by class of loans. Age Analysis of Past Due Loans As of December 31, 2018 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 247,397 $ 0 $ 247,397 $ 36,157 $ 88,119,661 $ 88,403,215 Real estate: Construction loans 0 0 0 0 24,890,536 24,890,536 Commercial mortgage loans 0 0 0 1,022,550 122,454,819 123,477,369 Residential loans 1,560,913 0 1,560,913 146,154 101,640,831 103,347,898 Agricultural loans 321,319 0 321,319 0 31,240,367 31,561,686 Consumer & other loans 36,654 0 36,654 0 5,050,330 5,086,984 Total loans $ 2,166,283 $ 0 $ 2,166,283 $ 1,204,861 $ 373,396,544 $ 376,767,688 Age Analysis of Past Due Loans As of December 31, 2017 30-89 Days Past Due Greater than 90 Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans Commercial, financial and agricultural loans $ 364,527 $ 0 $ 364,527 $ 394,455 $ 72,387,415 $ 73,146,397 Real estate: Construction loans 198,861 0 198,861 0 22,088,151 22,287,012 Commercial mortgage loans 645,214 0 645,214 757,085 105,056,043 106,458,342 Residential loans 2,023,517 0 2,023,517 518,301 96,617,789 99,159,607 Agricultural loans 0 0 0 0 25,373,621 25,373,621 Consumer & other loans 30,033 0 30,033 4,815 3,731,484 3,766,332 Total loans $ 3,262,152 $ 0 $ 3,262,152 $ 1,674,656 $ 325,254,503 $ 330,191,311 |
Schedule of Impaired Loans Segregated by Class of Loans | The following tables present impaired loans, segregated by class of loans as of December 31, 2018 and 2017: Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 184,899 $ 87,525 $ 568,816 $ 656,341 $ 276,392 $ 370,038 $ 52,411 Real estate: Construction loans 402,234 281,434 0 281,434 0 281,434 25,364 Commercial mortgage loans 1,787,305 1,277,611 333,892 1,611,503 51,854 1,544,299 45,403 Residential loans 1,801,002 1,027,647 752,443 1,780,090 188,368 1,594,390 127,806 Agricultural loans 12,526 12,526 0 12,526 0 12,526 5,530 Consumer & other loans 0 0 14,487 14,487 1,616 14,487 820 Total loans $ 4,187,966 $ 2,686,743 $ 1,669,638 $ 4,356,381 $ 518,230 $ 3,817,174 $ 257,334 Unpaid Recorded Investment Year-to-date Average Interest Income Received December 31, 2017 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment Commercial, financial and agricultural loans $ 459,003 $ 208,032 $ 250,971 $ 459,003 $ 44,468 $ 169,930 $ 10,920 Real estate: Construction loans 549,599 428,799 0 428,799 0 162,698 24,487 Commercial mortgage loans 1,615,811 1,107,654 339,440 1,447,094 57,403 1,071,663 54,582 Residential loans 2,476,728 316,230 2,079,823 2,396,053 224,916 2,233,562 108,472 Agricultural loans 142,966 142,966 0 142,966 0 142,966 8,198 Consumer & other loans 21,815 846 20,969 21,815 4,992 9,003 521 Total loans $ 5,265,922 $ 2,204,527 $ 2,691,203 $ 4,895,730 $ 331,779 $ 3,789,822 $ 207,180 |
Schedule of Troubled Debt Restructuring by Loan Class | December 31, 2018 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 5,570 $ 0 1 $ 5,570 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 1,888 0 1 1,888 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 0 0 0 0 0 0 Total TDR’s $ 7,458 $ 0 2 $ 7,458 0 $ 0 December 31, 2017 Under restructured terms Accruing Non- accruing # Current # Default Commercial, financial, and agricultural loans $ 0 $ 0 0 $ 0 0 $ 0 Real estate: Construction loans 0 0 0 0 0 0 Commercial mortgage loans 0 0 0 0 0 0 Residential loans 3,397 0 1 3,397 0 0 Agricultural loans 0 0 0 0 0 0 Consumer & other loans 846 0 1 846 0 0 Total TDR’s $ 4,243 $ 0 2 $ 4,243 0 $ 0 |
Schedule of Troubled Debt Restructurings by Types of Concessions Made | The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and nonaccrual at December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Accruing Nonaccruing Accruing Nonaccruing # Balance # Balance # Balance # Balance Type of concession: Payment modification 0 $ 0 0 $ 0 0 $ 0 0 $ 0 Rate reduction 0 0 0 0 0 0 0 0 Rate reduction, payment modification 1 1,888 0 0 2 4,243 0 0 Forbearance of interest 1 5,570 0 0 0 0 0 0 Total 2 $ 7,458 0 $ 0 2 $ 4,243 0 $ 0 |
Schedule of Internal Loan Grading by Class of Loans | The following tables present internal loan grading by class of loans at December 31, 2018 and 2017: December 31, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,237,602 $ 0 $ 0 $ 22,905 $ 0 $ 210,045 $ 1,470,552 Grade 2- Above Avg. 0 0 0 0 0 43,711 43,711 Grade 3- Acceptable 23,821,846 1,860,003 30,398,565 25,839,646 16,863,356 1,151,239 99,934,655 Grade 4- Fair 58,753,931 22,749,099 88,122,957 73,114,310 14,698,330 3,657,108 261,095,735 Grade 5a- Watch 473,616 0 2,411,710 722,441 0 6,206 3,613,973 Grade 5b- OAEM 3,079,098 0 446,841 1,299,587 0 2,168 4,827,694 Grade 6- Substandard 787,309 281,434 2,097,296 2,349,009 0 16,507 5,531,555 Grade 7- Doubtful 249,813 0 0 0 0 0 249,813 Total loans $ 88,403,215 $ 24,890,536 $ 123,477,369 $ 103,347,898 $ 31,561,686 $ 5,086,984 $ 376,767,688 December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Rating: Grade 1- Exceptional $ 1,371,135 $ 0 $ 0 $ 23,919 $ 0 $ 325,236 $ 1,720,290 Grade 2- Above Avg. 0 0 0 0 0 51,421 51,421 Grade 3- Acceptable 27,024,359 2,085,620 30,090,030 26,304,640 11,071,244 866,455 97,442,348 Grade 4- Fair 42,821,117 19,772,593 70,518,545 68,103,351 13,781,326 2,494,509 217,491,441 Grade 5a- Watch 120,626 0 1,027,581 757,628 39,344 7,572 1,952,751 Grade 5b- OAEM 557,070 0 3,073,051 1,226,841 338,741 1,357 5,197,060 Grade 6- Substandard 945,238 428,799 1,749,135 2,743,228 142,966 19,782 6,029,148 Grade 7- Doubtful 306,852 0 0 0 0 0 306,852 Total loans $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 |
Schedule of Changes in Allowance for Loan Losses | Changes in the allowance for loan losses are as follows: 2018 2017 2016 Balance, January 1 $ 3,043,632 $ 3,124,611 $ 3,032,242 Provision charged to operations 829,500 300,000 160,000 Loans charged off (606,345 ) (447,747 ) (116,006 ) Recoveries 162,082 66,768 48,375 Balance, December 31 $ 3,428,869 $ 3,043,632 $ 3,124,611 |
Schedule of Allowance for Loan Losses Methodology | December 31, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Charge-offs 548,460 783 43,349 6,909 0 6,844 606,345 Recoveries 12,025 0 590 0 147,252 2,215 162,082 Net charge-offs 536,435 783 42,759 6,909 (147,252 ) 4,629 444,263 Provisions charged to operations 614,426 727 196,466 49,306 (49,934 ) 18,509 829,500 Balance at end of period, December 31, 2018 $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Ending balance - Individually evaluated for impairment $ 276,392 $ 0 $ 51,854 $ 188,368 $ 0 $ 1,616 $ 518,230 Collectively evaluated for impairment 125,859 1,043,027 1,158,448 270,503 108,878 203,924 2,910,639 Balance at end of period $ 402,251 $ 1,043,027 $ 1,210,302 $ 458,871 $ 108,878 $ 205,540 $ 3,428,869 Loans : Ending balance - Individually evaluated for impairment $ 656,341 $ 281,434 $ 1,611,503 $ 1,929,214 $ 12,526 $ 14,487 $ 4,505,505 Collectively evaluated for impairment 87,746,874 24,609,102 121,865,866 101,418,684 31,549,160 5,072,497 372,262,183 Balance at end of period $ 88,403,215 $ 24,890,536 $ 123,477,369 $ 103,347,898 $ 31,561,686 $ 5,086,984 $ 376,767,688 December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total Allowance for loan losses: Beginning balance, December 31, 2016 $ 191,267 $ 1,043,083 $ 1,192,098 $ 420,189 $ 86,656 $ 191,318 $ 3,124,611 Charge-offs 113,334 0 168,717 59,764 93,503 12,429 447,747 Recoveries 63,486 0 0 0 0 3,282 66,768 Net charge-offs 49,848 0 168,717 59,764 93,503 9,147 380,979 Provisions charged to operations 182,841 0 33,214 56,049 18,407 9,489 300,000 Balance at end of period, December 31, 2017 $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Ending balance - Individually evaluated for impairment $ 44,468 $ 0 $ 57,403 $ 224,916 $ 0 $ 4,992 $ 331,779 Collectively evaluated for impairment 279,792 1,043,083 999,192 191,558 11,560 186,668 2,711,853 Balance at end of period $ 324,260 $ 1,043,083 $ 1,056,595 $ 416,474 $ 11,560 $ 191,660 $ 3,043,632 Loans : Ending balance - Individually evaluated for impairment $ 459,003 $ 428,799 $ 4,561,198 $ 2,448,531 $ 142,966 $ 21,815 $ 8,062,312 Collectively evaluated for impairment 72,687,394 21,858,213 101,897,144 96,711,076 25,230,655 3,744,517 322,128,999 Balance at end of period $ 73,146,397 $ 22,287,012 $ 106,458,342 $ 99,159,607 $ 25,373,621 $ 3,766,332 $ 330,191,311 |
Impaired Loans With Specific Reserves and Recorded Balance of Related Loans | The following table is a summary of amounts included in the ALL for the impaired loans with specific reserves and the recorded balance of the related loans. Year Ended December 31, 2018 2017 2016 Allowance for loss on impaired loans $ 518,230 $ 331,779 $ 549,429 Recorded balance of impaired loans $ 4,356,381 $ 4,895,730 $ 3,560,901 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | 2018 2017 Land $ 3,842,146 $ 3,846,146 Buildings 15,411,518 12,821,154 Furniture and equipment 10,767,592 9,442,378 Construction in process 4,892 1,074,744 30,026,148 27,184,422 Less accumulated depreciation (15,452,174 ) (14,934,904 ) Total $ 14,573,974 $ 12,249,518 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Inatngible Assets | The following table lists the Corporation’s account relationship intangible assets at December 31, 2018 and 2017. These assets will fully amortize in March 2019. 2018 2017 Amortizing intangible assets Account relationships $ 3,907 $ 19,532 Total intangible assets $ 3,907 $ 19,532 |
Schedule of Expected Amortization Expense | The intangible assets’ carrying amount, accumulated amortization and amortization expense for December 31, 2018, and the succeeding fiscal year are as follows: 2018 2019 Amortizing intangible assets Account relationships Gross carrying amount $ 125,000 $ 125,000 Accumulated amortization 121,093 125,000 Net carrying amount $ 3,907 $ 0 Amortization expense $ 15,625 $ 3,907 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits: | |
Schedule of Maturities of Certificates of Deposits | At December 31, 2018, the scheduled maturities of certificates of deposit are as follows: Amount 2019 $ 74,553,918 2020 19,062,966 2021 1,970,720 2022 1,823,345 2023 and thereafter 68,108 Total $ 97,479,057 |
Short-Term Borrowed Funds (Tabl
Short-Term Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of FHLB and Federal Funds Purchased | Information concerning federal funds purchased and FHLB short-term advances are summarized as follows: 2018 2017 Average balance during the year $ 17,305,184 $ 12,238,066 Average interest rate during the year 2.29 % 1.83 % Maximum month-end balance during the year $ 20,971,429 $ 22,114,286 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at December 31, 2018 and 2017, consisted of the following: 2018 2017 Advance from FHLB with 1.25% fixed rate of interest with annual installment payments maturing September 30, 2020. $ 1,600,000 $ 3,200,000 Advance from FHLB with 1.94% fixed rate of interest with annual installment payments maturing December 16, 2022. 2,571,429 3,428,571 Advance from FHLB with 1.42% fixed rate of interest with annual installment payments maturing August 30, 2023. 0 4,285,715 Advance from FHLB with a 1.53% fixed rate of interest maturing January 10, 2019. 0 1,500,000 Advance from FHLB with a 1.60% fixed rate of interest maturing July 10, 2019. 0 1,500,000 Advance from FHLB with a 1.80% fixed rate of interest maturing July 10, 2020. 2,000,000 2,000,000 Advance from FHLB with a 1.93% fixed rate of interest with annual installment payments maturing September 28, 2022. 6,000,000 8,000,000 Advance from FHLB with a 2.34% fixed rate of interest with annual installment payments maturing December 5, 2024. 0 5,142,857 Advance from FHLB with a 3.018% fixed rate of interest maturing Sept. 17, 2021. 3,000,000 0 Advance from FHLB with a 3.192% fixed rate of interest maturing Sept. 20, 2023. 3,000,000 0 Advance from FHLB with a 3.400% fixed rate of interest maturing Sept. 20, 2025. 3,000,000 0 Total long-term debt $ 21,171,429 $ 29,057,143 |
Schedule of Debt Maturities | The following are maturities of long-term debt for the next five years. At December 31, 2018, there was no floating rate long-term debt. Due in: Fixed Rate Amount 2019 $ 0 2020 6,457,143 2021 5,857,143 2022 2,857,143 2023 3,000,000 Later years 3,000,000 Total long-term debt $ 21,171,429 |
Employee Benefits and Retirem_2
Employee Benefits and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Computed Benefit Obligations and Net Assets and Related Changes | 2018 2017 2016 Change in Benefit Obligation Benefit obligation at beginning of year $ 12,745,058 $ 13,149,559 $ 13,885,378 Service cost 0 0 0 Interest cost 657,845 712,228 764,323 Amendments 0 0 0 Settlement (100,395 ) (129,172 ) (841,941 ) Benefits paid (1,097,859 ) (1,116,643 ) (1,131,148 ) Other – net (412,047 ) 129,086 472,947 Benefit obligation at end of year $ 11,792,602 $ 12,745,058 $ 13,149,559 Change in Plan Assets Fair value of plan assets at beginning of year $ 10,672,811 $ 10,574,145 $ 11,420,270 Actual return on plan assets (254,803 ) 864,481 576,964 Employer contribution 460,000 480,000 550,000 Benefits paid (1,198,254 ) (1,245,815 ) (1,973,089 ) Fair value of plan assets at end of year $ 9,679,754 $ 10,672,811 $ 10,574,145 2018 2017 2016 Funded status $ (2,112,848 ) $ (2,072,247 ) $ (2,575,414 ) Unrecognized net actuarial (gain)/loss 0 0 0 Unrecognized prior service cost 0 0 0 Pension liability included in other liabilities $ (2,112,848 ) $ (2,072,247 ) $ (2,575,414 ) Accumulated benefit obligation $ 11,792,602 $ 12,745,058 $ 13,149,559 |
Amount Recognized in Consolidated Balance Sheet | Amount recognized in consolidated balance sheet consist of the following: 2018 2017 2016 Accrued Pension $ 2,112,848 $ 2,072,247 $ 2,575,414 Deferred tax assets $ 443,698 $ 435,172 $ 875,641 Accumulated other comprehensive income 1,669,150 1,637,075 1,699,773 Total $ 2,112,848 $ 2,072,247 $ 2,575,414 Components of Pension Cost 2018 2017 2016 Service cost $ 0 $ 0 $ 0 Interest cost on benefit obligation 657,845 712,228 764,323 Expected return on plan assets (721,735 ) (716,622 ) (775,423 ) Other - net 482,679 587,821 657,260 Net periodic pension cost 418,789 583,427 646,160 Partial recognition of loss due to settlement 0 0 426,599 Total $ 418,789 $ 583,427 $ 1,072,759 |
Amounts Recognized in Comprehensive Income | Other changes in plan assets and benefit obligations recognized in comprehensive income: 2018 2017 2016 Net loss (gain) $ 40,601 $ (503,167 ) $ 110,306 Prior service costs 0 0 0 Total recognized in other comprehensive income (loss) 40,601 (503,167 ) 110,306 Net periodic pension cost 418,789 583,427 646,160 Partial recognition of loss due to settlement 0 0 426,599 Total recognized in net periodic pension cost and other comprehensive income $ 459,390 $ (80,260 ) $ 1,183,065 |
Pension Asset Allocation and Fair Value Measurement | Pension Asset Allocation and Fair Value Measurement as of December 31 2018 2017 Fair Value Level 1 % Fair Value Level 1 % Investment at fair value as determined by quoted market price: Equity $ 3,482,765 $ 3,482,765 36 % $ 4,302,437 $ 4,302,437 40 % Fixed income 1,096,033 1,096,033 11 % 1,351,048 1,351,048 13 % Total $ 4,578,798 $ 4,578,798 47 % $ 5,653,485 $ 5,653,485 53 % Investment as estimated fair value: Certificates of deposit $ 4,521,110 $ 4,521,110 47 % $ 4,283,144 $ 4,283,144 40 % Cash and cash equivalent 579,846 579,846 6 % 736,182 736,182 7 % Total $ 5,100,956 $ 5,100,956 53 % $ 5,019,326 $ 5,019,326 47 % Total $ 9,679,754 $ 9,679,754 100 % $ 10,672,811 $ 10,672,811 100 % |
Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service and decrements as appropriate, are expected to be paid for fiscal years beginning: 2019 1,159,000 2020 1,127,000 2021 1,097,000 2022 1,113,000 2023 1,075,000 Years 2024 – 2028 4,744,000 |
Summary of Outstanding Restricted Stock Awards | The following table summarizes the movements in the Corporation’s outstanding restricted stock awards: Number of Shares Amount Non-vested balance, December 31, 2016 0 $ 0 Granted 4,271 88,153 Vested 0 0 Non-vested balance, December 31, 2017 4,271 $ 88,153 Granted 13,316 306,032 Vested (854 ) (17,627 ) Non-vested balance, December 31, 2018 16,733 $ 376,558 |
Benefit Obligation [Member] | |
Assumptions Used to Determine Benefit Obligation | Assumptions used to determine the benefit obligation as of December 31, 2018 and 2017 respectively were: 2018 2017 Weighted-Average Assumptions as of December 31 Discount rate 5.70 % 5.70 % Rate of compensation increase N/A N/A |
Net Periodic Pension Costs [Member] | |
Assumptions Used to Determine Benefit Obligation | For the years ended December 31, 2018, 2017, and 2016, the assumptions used to determine net periodic pension costs are as follows: 2018 2017 2016 Discount rate 5.70 % 5.70 % 5.75 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Components of income tax expense for 2018, 2017, and 2016 are as follows: 2018 2017 2016 Current expense $ 28,779 $ 1,101,902 $ 1,163,230 Deferred taxes (benefit) 639,637 517,998 (10,754 ) Total income taxes $ 668,416 $ 1,619,900 $ 1,152,476 |
Schedule of Income Taxes | The reasons for the difference between the federal income taxes in the consolidated statements of income and the amount and percentage computed by the applying the combine statutory federal and state income tax rate to income taxes are as follows: 2018 2017 2016 Amount % Amount % Amount % Taxes at statutory income tax rate $ 1,116,262 21.0 $ 1,845,313 34.0 $ 1,763,394 34.0 Reductions in taxes resulting from exempt income (272,486 ) (5.1 ) (524,347 ) (9.7 ) (547,556 ) (10.6 ) Other timing differences (175,360 ) (3.3 ) 298,934 5.5 (63,362 ) (1.2 ) Total income taxes $ 668,416 12.6 $ 1,619,900 29.8 $ 1,152,476 22.2 |
Schedule of Effective Income Tax Rate Reconciliation | The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2018, 2017, and 2016 are summarized as follows: 2018 2017 2016 Nonqualified retirement plan $ 0 $ 0 $ 0 Intangible asset amortization 0 172,816 0 Deferred gain on covered transaction 5,004 9,352 498 Nonaccrual loan interest 8,369 (6,896 ) 32,157 Recognition of AMT tax credit carryforward 332,776 0 0 Foreclosed assets expenses 41,530 (42,075 ) (3,413 ) Bad debt expense in excess of tax (80,902 ) 423,203 (31,405 ) Realized impairment gain on equity securities 0 0 0 Accretion of discounted bonds 16,805 14,772 33,187 Gain on disposition of discounted bonds (4,188 ) (28,215 ) (23,059 ) Book and tax depreciation difference 357,266 (24,959 ) (18,719 ) Other timing differences (37,023 ) 0 0 Total deferred taxes $ 639,637 $ 517,998 $ (10,754 ) |
Schedule of Deferred Tax Assets and Liabilities | December 31 2018 2017 Deferred tax assets: Nonaccrual loan interest $ 474 $ 8,843 Deferred gain on covered transaction 9,300 14,304 Alternative minimum tax 0 332,776 Foreclosed assets expenses 10,163 51,693 Intangible asset amortization 125,883 125,883 Bad debt expense in excess of tax 720,063 639,161 Realized loss on other-than-temporarily impaired equity securities 214,353 214,353 Deferred directors compensation 133,057 104,561 Capital loss carryforward 32,878 32,878 Pension plan 443,698 435,172 Unrealized losses on securities available for sale 137,761 0 Total deferred tax assets 1,827,630 1,959,624 Deferred tax liabilities: Accretion on bonds and gain on discounted bonds 68,307 55,690 Book and tax depreciation difference 575,899 218,634 Unrealized gains on securities available for sale 0 1,982 Total deferred tax liabilities 644,206 276,306 Net deferred tax assets $ 1,183,424 $ 1,683,318 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual or Notional Amounts of Financial Instruments | The contractual or notional amounts of financial instruments having credit risk in excess of that reported in the Consolidated Balance Sheets are as follows: Dec. 31, 2018 Dec. 31, 2017 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 39,418,110 $ 24,706,357 Standby letters of credit and financial guarantees $ 4,342,849 $ 3,134,849 |
Schedule of Future Cash Payments | The following table shows scheduled future cash payments under this obligation as of December 31, 2018. Payments Due by Period Total Less than 1 Year 1-3 Years 4-5 Years After 5 Years Operating leases $ 10,296 $ 5,148 $ 5,148 $ 0 $ 0 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Recorded at Fair Value on a Recurring Basis | Assets Recorded at Fair Value on a Recurring Basis: The table below presents the recorded amount of assets measured at fair value on a recurring basis as of December 31, 2018 and 2017. December 31, 2018 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 954,570 $ 0 $ 0 $ 954,570 U.S. government agency securities 0 45,207,005 0 45,207,005 State and municipal securities 0 7,377,935 0 7,377,935 Residential mortgage-backed securities 0 4,774,067 0 4,774,067 Total $ 954,570 $ 57,359,007 $ 0 $ 58,313,577 December 31, 2017 Level 1 Level 2 Level 3 Total Investment securities available for sale: U.S. government treasury securities $ 967,770 $ 0 $ 0 $ 967,770 U.S. government agency securities 0 43,860,090 0 43,860,090 State and municipal securities 0 7,573,689 0 7,573,689 Residential mortgage-backed securities 0 1,861,712 0 1,861,712 Total $ 967,770 $ 53,295,491 $ 0 $ 54,263,261 |
Schedule of Fair Value of Assets Recorded on a Nonrecurring Basis | Assets Recorded at Fair Value on a Nonrecurring Basis: The Corporation may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of December 31, 2018 and 2017. December 31, 2018 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 127,605 $ 127,605 Impaired loans 0 0 3,838,151 3,838,151 Total assets at fair value $ 0 $ 0 $ 3,965,756 $ 3,965,756 December 31, 2017 Level 1 Level 2 Level 3 Total Foreclosed assets $ 0 $ 0 $ 758,878 $ 758,878 Impaired loans 0 0 4,563,951 4,563,951 Total assets at fair value $ 0 $ 0 $ 5,322,829 $ 5,322,829 |
Schedule of Carrying and Estimated Fair Value of Assets and Liabilities Recorded at Fair Value | The carrying amount and estimated fair values of the Corporation’s assets and liabilities which are required to be either disclosed or recorded at fair value at December 31, 2018 and 2017, are as follows: Estimated Fair Value December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 35,499 $ 35,499 $ 0 $ 0 $ 35,499 Certificates of deposit in other banks 2,732 2,732 0 0 2,732 Investment securities available for sale 58,314 955 57,359 0 58,314 Investment securities held to maturity 36,827 0 37,010 0 37,010 Federal Home Loan Bank stock 1,820 0 1,820 0 1,820 Loans, net 373,321 0 362,373 3,838 366,228 Bank owned life insurance 6,779 0 6,779 0 6,779 Liabilities: Deposits 455,640 0 456,245 0 456,245 Federal Home Loan Bank advances 31,629 0 31,591 0 31,591 Estimated Fair Value December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents $ 34,138 $ 34,138 $ 0 $ 0 $ 34,138 Certificates of deposit in other banks 1,985 1,985 0 0 1,985 Investment securities available for sale 54,364 968 53,396 0 54,364 Investment securities held to maturity 44,591 0 45,148 0 45,148 Federal Home Loan Bank stock 2,438 0 2,438 0 2,438 Loans, net 327,130 0 320,684 4,564 325,248 Bank owned life insurance 6,553 0 6,553 0 6,553 Liabilities: Deposits 397,006 0 397,331 0 397,331 Federal Home Loan Bank advances 47,029 0 46,658 0 46,658 |
Supplemental Financial Data (Ta
Supplemental Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Income Statement Elements [Abstract] | |
Schedule of Components of Operating Expenses | Components of other income and other operating expense in excess of one percent of gross revenue for the respective periods are as follows: Years Ended December 31 2018 2017 2016 Income: Bank card interchange fees $ 576,359 $ 600,619 $ 506,506 Expense: Other professional fees $ 287,273 $ 317,147 $ 202,267 Advertising & public relations $ 264,269 $ 192,016 $ 173,595 Director & board committee fees $ 241,523 $ 278,821 $ 328,919 FDIC insurance assessment $ 233,878 $ 247,963 $ 201,605 Administrative expense – employee benefit plans $ 209,399 $ 207,620 $ 231,311 Telephone expense $ 284,586 $ 180,559 $ 155,393 |
Shareholders' Equity _ Regula_2
Shareholders' Equity / Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Leverage Ratio | The Corporation’s and the Bank’s ratios under the above rules at December 31, 2018 and 2017, are set forth in the following tables. As of December 31, 2018 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Common equity Tier 1 (to risk- risk- weighted assets) $ 45,802,434 11.97 % $ 17,217,892 > N/A* N/A* Total capital (to risk- weighted assets) $ 49,231,303 12.87 % $ 30,609,586 > N/A* N/A* Tier I capital (to risk- weighted assets) $ 45,802,434 11.97 % $ 22,957,189 > N/A* N/A* Leverage (tier I capital to average assets) $ 45,802,434 8.62 % $ 21,265,996 > N/A* N/A* Southwest Georgia Bank Common equity Tier 1 (to risk- risk- weighted assets) $ 43,680,743 11.44 % $ 17,180,290 > $ 24,815,974 > Total capital (to risk- weighted assets) $ 47,109,612 12.34 % $ 30,542,738 > $ 38,178,422 > Tier I capital (to risk- weighted assets) $ 43,680,743 11.44 % $ 22,907,053 > $ 30,542,738 > Leverage (tier I capital to average assets) $ 43,680,743 8.24 % $ 21,206,909 > $ 26,508,636 > As of December 31, 2017 Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Southwest Georgia Financial Corporation Common equity Tier 1 (to risk- risk- weighted assets) $ 42,756,979 12.74 % $ 15,098,672 > N/A* N/A* Total capital (to risk- weighted assets) $ 45,800,611 13.65 % $ 26,842,084 > N/A* N/A* Tier I capital (to risk- weighted assets) $ 42,756,979 12.74 % $ 20,131,563 > N/A* N/A* Leverage (tier I capital to average assets) $ 42,756,979 8.79 % $ 19,467,338 > N/A* N/A* Southwest Georgia Bank Common equity Tier 1 (to risk- risk- weighted assets) $ 40,247,187 12.02 % $ 15,069,727 > $ 21,767,383 > Total capital (to risk- weighted assets) $ 43,290,819 12.93 % $ 26,790,625 > $ 33,488,282 > Tier I capital (to risk- weighted assets) $ 40,247,187 12.02 % $ 20,092,969 > $ 26,790,625 > Leverage (tier I capital to average assets) $ 40,247,187 8.29 % $ 19,418,765 > $ 24,273,457 > *N/A - As of December 31, 2017, the Corporation met the definition under the Basel III Capital Rules of a small bank holding company and, therefore, was exempt from consolidated risk-based and leverage capital adequacy guidelines for bank holding companies. |
Parent Company Financial Data (
Parent Company Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Balance Sheet Information of Parent Company | Condensed Balance Sheets as of December 31, 2018 and 2017 (Dollars in thousands) 2018 2017 ASSETS Cash $ 776 $ 1,694 Investment in consolidated wholly-owned bank subsidiary, at equity 41,497 38,633 Loans 640 105 Other assets 708 711 Total assets $ 43,621 $ 41,143 LIABILITIES AND SHAREHOLDERS’ EQUITY Total liabilities $ 2 $ 0 Shareholders’ equity: Common stock, $1 par value, 5,000,000 shares authorized, 2,545,776 shares and 4,293,835 shares issued for 2018 & 2017 2,546 4,294 Additional paid-in capital 18,419 31,701 Retained earnings 24,841 33,020 Accumulated other comprehensive loss (2,187 ) (1,629 ) Treasury stock, at cost, 0 for 2018 and 1,752,330 for 2017 (0 ) (26,243 ) Total shareholders’ equity 43,619 41,143 Total liabilities and shareholders’ equity $ 43,621 $ 41,143 |
Schedule of Statements of Operations Information of Parent Company | Condensed Statements of Income and Expense for the years ended December 31, 2018, 2017, and 2016 (Dollars in thousands) 2018 2017 2016 Income: Dividend received from bank subsidiary $ 1,200 $ 2,000 $ 0 Interest income 45 26 23 Total income 1,245 2,026 23 Expenses: Other 189 172 178 Income before income taxes and equity in Undistributed income of bank subsidiary 1,056 1,854 (155 ) Income tax benefit – allocated from consolidated return 40 88 91 Income before equity in undistributed income of subsidiary 1,096 1,942 (64 ) Equity in undistributed income of subsidiary 3,551 1,865 4,098 Net income 4,647 3,807 4,034 Retained earnings – beginning of year 33,020 30,334 27,370 Adjustment to correct immaterial misstatement of investment in bank subsidiary in prior periods (129 ) 0 0 Cash dividend declared (1,196 ) (1,121 ) (1,070 ) Retirement of treasury stock (11,501 ) 0 0 Retained earnings – end of year $ 24,841 $ 33,020 $ 30,334 |
Schedule of Cash Flow Information of Parent Company | Condensed Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 (Dollars in thousands) 2018 2017 2016 Cash flow from operating activities: Net income $ 4,647 $ 3,807 $ 4,034 Adjustments to reconcile net income to net cash used by operating activities: Equity in undistributed earnings of subsidiary (3,551 ) (1,865 ) (4,098 ) Changes in: Other assets 21 (25 ) (16 ) Other liabilities 2 0 0 Net cash provided (used) for operating activities 1,119 1,917 (80 ) Cash flow from investing activities: Net change in loans (535 ) 80 178 Net cash provided (used) for investing activities (535 ) 80 178 Cash flow from financing activities: Cash dividend paid to shareholders (1,196 ) (1,121 ) (1,070 ) Payment to repurchase common stock (306 ) (122 ) (7 ) Net cash used for financing activities (1,502 ) (1,243 ) (1,077 ) Increase (decrease) in cash (918 ) 754 (979 ) Cash – beginning of year 1,694 940 1,919 Cash – end of year $ 776 $ 1,694 $ 940 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share are based on the weighted average number of common shares outstanding during the year. December 31, 2018 2017 2016 Net income $ 4,647,119 $ 3,807,492 $ 4,033,977 Net income available to common shareholders $ 4,647,119 $ 3,807,492 $ 4,033,977 Average number of common shares outstanding 2,545,565 2,547,421 2,547,778 Effect of dilutive restricted stock 0 1 0 Average number of common shares outstanding used to calculate diluted earnings per common share 2,545,565 2,547,422 2,547,778 Earnings per share - basic $ 1.83 $ 1.49 $ 1.58 Earnings per share - diluted $ 1.83 $ 1.49 $ 1.58 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Data | SOUTHWEST GEORGIA FINANCIAL CORPORATION QUARTERLY DATA (UNAUDITED) (Dollars in thousands) For the Year 2018 Fourth Third Second First Interest and dividend income $ 5,900 $ 5,640 $ 5,292 $ 5,062 Interest expense 1,116 867 725 614 Net interest income 4,784 4,773 4,567 4,448 Provision for loan losses 226 249 140 215 Net interest income after provision for loan losses 4,558 4,524 4,427 4,233 Noninterest income 1,175 978 1,060 994 Noninterest expenses 4,357 4,149 4,132 3,996 Income before income taxes 1,376 1,353 1,355 1,231 Provision for income taxes 253 209 207 (1 ) Net income $ 1,123 $ 1,144 $ 1,148 $ 1,232 Earnings per share of common stock: Basic $ .44 $ .45 $ .45 $ .48 Diluted $ .44 $ .45 $ .45 $ .48 For the Year 2017 Fourth Third Second First Interest and dividend income $ 5,018 $ 4,859 $ 4,767 $ 4,502 Interest expense 559 472 435 436 Net interest income 4,459 4,387 4,332 4,066 Provision for loan losses 75 75 75 75 Net interest income after provision for loan losses 4,384 4,312 4,257 3,991 Noninterest income 960 969 1,100 1,283 Noninterest expenses 3,892 4,068 3,968 3,901 Income before income taxes 1,452 1,213 1,389 1,373 Provision for income taxes 735 261 316 308 Net income $ 717 $ 952 $ 1,073 $ 1,065 Earnings per share of common stock: Basic $ .28 $ .37 $ .42 $ .42 Diluted $ .28 $ .37 $ .42 $ .42 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about reportable business segments, and reconciliation of such information to the consolidated financial statements for the years ended December 31, 2018, 2017, and 2016, are as follows: Segment Reporting For the year ended December 31, 2018 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals Net Interest Income (expense) external customers $ 16,334 $ — $ — $ 2,193 $ — $ 45 $ 18,572 Net intersegment interest income (expense) 1,818 20 (7 ) (1,831 ) — — — Net interest income 18,152 20 (7 ) 362 — 45 18,572 Provision for Loan Losses 830 — — — — — 830 Noninterest Income (expense) external customers 1,765 1,604 665 259 — (86 ) 4,207 Intersegment noninterest Income (expense) (20 ) 20 31 — (31 ) — — Total Noninterest Income 1,745 1,624 696 259 (31 ) (86 ) 4,207 Noninterest Expenses: Depreciation 845 37 18 56 — 81 1,037 Amortization of intangibles — 16 — — — — 16 Other Noninterest expenses 10,974 1,158 624 752 — 2,073 15,581 Total Noninterest expenses 11,819 1,211 642 808 — 2,154 16,634 Pre-tax income 7,248 433 47 (187 ) (31 ) (2,195 ) 5,315 Provision for Income Taxes 1,184 68 3 (210 ) — (377 ) 668 Net Income $ 6,064 $ 365 $ 44 $ 23 $ (31 ) $ (1,818 ) $ 4,647 Assets $ 628,222 $ 1,971 $ 267 $ 132,033 $ (229,108 ) $ 1,448 $ 534,833 Expenditures of Fixed Assets $ 3,321 $ 2 $ 8 $ 57 $ — $ — $ 3,388 Amounts included in the “Other” column are as follows: Other Net interest Income: Parent Company $ 45 Noninterest Income: Executive office miscellaneous income (86 ) Noninterest Expenses: Parent Company corporate expenses 188 Executive office expenses not allocated to segments 1,966 Provision for Income taxes: Parent Company income taxes (benefit) (40 ) Executive office income taxes not allocated to segments (337 ) Net Income: $ (1,818 ) Segment assets: Parent Company assets, after intercompany elimination $ 1,448 Segment Reporting For the year ended December 31, 2017 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals Net Interest Income (expense) external customers $ 15,119 $ — $ — $ 2,099 $ — $ 26 $ 17,244 Net intersegment interest income (expense) 1,817 16 (6 ) (1,827 ) — — — Net interest income 16,936 16 (6 ) 272 — 26 17,244 Provision for Loan Losses 300 — — — — — 300 Noninterest Income (expense) external customers 2,099 1,525 612 75 — 1 4,312 Intersegment noninterest Income (expense) (16 ) 16 32 — (32 ) — — Total Noninterest Income 2,083 1,541 644 75 (32 ) 1 4,312 Noninterest Expenses: Depreciation 685 33 24 56 — 83 881 Amortization of intangibles — 16 — — — — 16 Other Noninterest expenses 10,328 1,119 592 780 — 2,113 14,932 Total Noninterest expenses 11,013 1,168 616 836 — 2,196 15,829 Pre-tax income 7,706 389 22 (489 ) (32 ) (2,169 ) 5,427 Provision for Income Taxes 1,784 86 (2 ) 306 — (554 ) 1,620 Net Income $ 5,922 $ 303 $ 24 $ (795 ) $ (32 ) $ (1,615 ) $ 3,807 Assets $ 567,723 $ 1,687 $ 177 $ 138,598 $ (219,840 ) $ 727 $ 489,072 Expenditures of Fixed Assets $ 1,888 $ 48 $ 2 $ 17 $ — $ — $ 1,955 Amounts included in the “Other” column are as follows: Other Net interest Income: Parent Company $ 26 Noninterest Income: Executive office miscellaneous income 1 Noninterest Expenses: Parent Company corporate expenses 172 Executive office expenses not allocated to segments 2,024 Provision for Income taxes: Parent Company income taxes (benefit) (88 ) Executive office income taxes not allocated to segments (466 ) Net Income: $ (1,615 ) Segment assets: Parent Company assets, after intercompany elimination $ 727 Segment Reporting For the year ended December 31, 2016 Retail and Commercial Banking Insurance Services Wealth Strategies Financial Management Inter-segment Elimination Other Totals Net Interest Income (expense) external customers $ 13,837 $ — $ — $ 1,940 $ — $ 24 $ 15,801 Net intersegment interest income (expense) 1,671 11 (6 ) (1,676 ) — — — Net interest income 15,508 11 (6 ) 264 — 24 15,801 Provision for Loan Losses 160 — — — — — 160 Noninterest Income (expense) external customers 2,316 1,477 584 80 — 2 4,459 Intersegment noninterest Income (expense) (11 ) 11 32 — (32 ) — — Total Noninterest Income 2,305 1,488 616 80 (32 ) 2 4,459 Noninterest Expenses: Depreciation 738 30 23 57 — 76 924 Amortization of intangibles — 16 — — — — 16 Other Noninterest expenses 9,260 1,184 585 737 — 2,208 13,974 Total Noninterest expenses 9,998 1,230 608 794 — 2,284 14,914 Pre-tax income 7,655 269 2 (450 ) (32 ) (2,258 ) 5,186 Provision for Income Taxes 1,794 61 (7 ) (107 ) — (589 ) 1,152 Net Income $ 5,861 $ 208 $ 9 $ (343 ) $ (32 ) $ (1,669 ) $ 4,034 Assets $ 507,538 $ 1,414 $ 199 $ 148,099 $ (209,619 ) $ 870 $ 448,501 Expenditures of Fixed Assets $ 1,409 $ 15 $ 11 $ 20 $ — $ — $ 1,455 Amounts included in the “Other” column are as follows: Other Net interest Income: Parent Company $ 24 Noninterest Income: Executive office miscellaneous income 2 Noninterest Expenses: Parent Company corporate expenses 178 Executive office expenses not allocated to segments 2,106 Provision for Income taxes: Parent Company income taxes (benefit) (91 ) Executive office income taxes not allocated to segments (498 ) Net Income: $ (1,669 ) Segment assets: Parent Company assets, after intercompany elimination $ 870 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Maximum FDIC insured amount | $ 250,000 | |||
Uninsured deposits | 61,822 | |||
Bank property held for sale | 0 | $ 211,500 | $ 211,500 | |
Net loss on disposal of bank property held for sale | $ 96,750 | 96,750 | 0 | 0 |
Allowance for foreclosed asset losses | ||||
Foreclosed assets and residential real estate | 127,605 | 758,878 | ||
Bank owned life insurance policies | $ 6,779,242 | $ 6,553,318 | 5,356,683 | |
Bank owned life insurance policies, stockholders equity, percentage | 15.50% | 15.90% | ||
Advertising expense | $ 264,269 | $ 192,016 | $ 173,595 | |
Minimum requirement of common equity Tier 1 risk-based capital ratio | 4.50% | |||
Tier 1 risk-based capital ratio | 6.00% | |||
Previous minimum requirement of Tier 1 risk-based capital ratio | 4.00% | |||
Risk-based capital ratio | 8.00% | |||
Tier 1 leverage ratio | 4.00% | |||
Maximum [Member] | ||||
Total consolidated assets | $ 1,000,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Land Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Land Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 31 years |
Building and Improvements [Member] | Minimum [Member] | |
Estimated useful lives | 10 years |
Building and Improvements [Member] | Maximum [Member] | |
Estimated useful lives | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 10 years |
Computer Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 5 years |
Office Furniture and Fixtures [ Member] | Minimum [Member] | |
Estimated useful lives | 5 years |
Office Furniture and Fixtures [ Member] | Maximum [Member] | |
Estimated useful lives | 10 years |
Investment Securities (Details
Investment Securities (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Integer | Dec. 31, 2016 | Dec. 31, 2017USD ($)Integer | |
Schedule of Investments [Abstract] | |||
Securities with a carrying value pledged as collateral | $ 59,182,556 | $ 71,520,817 | |
Securities with a carrying value pledged as collateral, market value | 58,502,416 | 71,648,073 | |
Securities overpledged | 4,400,000 | ||
Federal home loan bank stock, at cost | $ 1,820,300 | $ 2,438,200 | |
Investments obligations description | There were no investments in obligations of any state or municipal subdivisions which exceeded 10% of the Corporation's shareholders' equity at December 31, 2018. | ||
Percentage of mortgage backed securities sold paid down | 85.00% | ||
Available-for-sale securities, number of debt securities | Integer | 66 | 48 | |
Debt securities, unrealized losses with aggregate depreciation on amortized cost basis, percentage | 2.35% | 2.35% |
Investment Securities - Schedul
Investment Securities - Schedule of Securities Available for Sale (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized Cost | $ 58,969,585 | $ 54,253,823 |
Unrealized Gains | 316,725 | 761,248 |
Unrealized Losses | 972,733 | 751,810 |
Total Estimated Fair Value | 58,313,577 | 54,263,261 |
U.S. Government Treasury Securities [Member] | ||
Amortized Cost | 982,044 | 979,983 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 27,474 | 12,213 |
Total Estimated Fair Value | 954,570 | 967,770 |
U.S. Government Agency Securities [Member] | ||
Amortized Cost | 45,823,595 | 43,978,023 |
Unrealized Gains | 264,567 | 580,366 |
Unrealized Losses | 881,157 | 698,299 |
Total Estimated Fair Value | 45,207,005 | 43,860,090 |
State and Municipal Securities [Member] | ||
Amortized Cost | 7,394,278 | 7,482,912 |
Unrealized Gains | 30,579 | 129,231 |
Unrealized Losses | 46,922 | 38,454 |
Total Estimated Fair Value | 7,377,935 | 7,573,689 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 4,769,668 | 1,812,905 |
Unrealized Gains | 21,579 | 51,651 |
Unrealized Losses | 17,180 | 2,844 |
Total Estimated Fair Value | $ 4,774,067 | $ 1,861,712 |
Investment Securities - Sched_2
Investment Securities - Schedule of Securities Held to Maturity (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | $ 36,827,073 | $ 44,590,841 |
Unrealized Gains | 257,970 | 605,174 |
Unrealized Losses | 74,716 | 48,215 |
Estimated Fair Value | 37,010,327 | 45,147,800 |
State and Municipal Securities [Member] | ||
Amortized Cost | 30,582,785 | 41,447,092 |
Unrealized Gains | 208,480 | 527,632 |
Unrealized Losses | 67,434 | 48,083 |
Estimated Fair Value | 30,723,831 | 41,926,641 |
Residential Mortgage-Backed Securities [Member] | ||
Amortized Cost | 6,244,288 | 3,143,749 |
Unrealized Gains | 49,490 | 77,542 |
Unrealized Losses | 7,282 | 132 |
Estimated Fair Value | $ 6,286,496 | $ 3,221,159 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Debt Securities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Abstract] | ||
Available for Sale Amounts maturing in One year or less, Amortized Cost | $ 2,147,059 | |
Available for Sale Amounts maturing in After one through five years, Amortized Cost | 29,691,474 | |
Available for Sale Amounts maturing in After five through ten years, Amortized Cost | 21,585,776 | |
Available for Sale Amounts maturing in After ten years, Amortized Cost | 5,545,276 | |
Total debt securities AFS, Amortized Cost | 58,969,585 | |
Available for Sale Amounts maturing in One year or less, Estimated Fair Value | 2,124,645 | |
Available for Sale Amounts maturing in After one through five years, Estimated Fair Value | 29,674,236 | |
Available for Sale Amounts maturing in After five through ten years, Estimated Fair Value | 20,968,318 | |
Available for Sale Amounts maturing in After ten years, Estimated Fair Value | 5,546,378 | |
Total debt securities AFS, Estimated Fair Value | 58,313,577 | |
Held to Maturity Amounts maturing in One year or less, Amortized Cost | 6,483,464 | |
Held to Maturity Amounts maturing in After one through five years, Amortized Cost | 12,885,021 | |
Held to Maturity Amounts maturing in After five through ten years, Amortized Cost | 11,035,146 | |
Held to Maturity Amounts maturing in After ten years, Amortized Cost | 6,423,442 | |
Total securities HTM, Amortized Cost | 36,827,073 | $ 44,590,841 |
Held to Maturity Amounts maturing in One year or less, Estimated Fair Value | 6,497,910 | |
Held to Maturity Amounts maturing in After one through five years, Estimated Fair Value | 12,961,209 | |
Held to Maturity Amounts maturing in After five through ten years, Estimated Fair Value | 11,097,382 | |
Held to Maturity Amounts maturing in After ten years, Estimated Fair Value | 6,453,826 | |
Total securities HTM, Estimated Fair Value | $ 37,010,327 | $ 45,147,800 |
Investment Securities - Sched_3
Investment Securities - Schedule of Activity of Security Sales by Intention (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Securities - Schedule Of Activity Of Security Sales By Intention | |||
Proceeds from sale of available-for-sale securities | $ 2,879,000 | $ 5,741,211 | $ 11,933,634 |
Gross gains on sale of available-for-sale securities | 0 | 186,610 | 152,102 |
Gross losses on sale of available-for-sale securities | (165,369) | 0 | (8,068) |
Net gains on sales of available for sale securities | (165,369) | 186,610 | 144,034 |
Amortized cost of securities sold securities held to maturity | 0 | 0 | 551,949 |
Proceeds from sale of securities held to maturity | 0 | 0 | 576,834 |
Net gains on sales of held to maturity securities | $ 0 | $ 0 | $ 24,885 |
Investment Securities - Sched_4
Investment Securities - Schedule of Information Pertaining to Securities Gross Unrealized Losses by Investments (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Less Than Twelve Months, Gross Unrealized Losses | $ 50,485 | $ 63,132 |
Less Than Twelve Months, Fair Value | 9,412,366 | 6,932,300 |
Twelve Months or More, Gross Unrealized Losses | 922,248 | 688,678 |
Twelve Months or More, Fair Value | 22,912,205 | 19,413,318 |
Less Than Twelve Months, Gross Unrealized Losses | 25,880 | 16,086 |
Less Than Twelve Months, Fair Value | 8,239,023 | 5,667,646 |
Twelve Months or More, Gross Unrealized Losses | 48,836 | 32,129 |
Twelve Months or More, Fair Value | 2,872,091 | 1,281,797 |
U.S. Government Treasury Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 12,213 |
Less Than Twelve Months, Fair Value | 0 | 967,770 |
Twelve Months or More, Gross Unrealized Losses | 27,474 | 0 |
Twelve Months or More, Fair Value | 954,570 | 0 |
U.S. Government Agency Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 33,077 | 34,083 |
Less Than Twelve Months, Fair Value | 6,073,337 | 4,988,630 |
Twelve Months or More, Gross Unrealized Losses | 848,080 | 664,216 |
Twelve Months or More, Fair Value | 20,015,052 | 18,347,439 |
State and Municipal Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 3,209 | 16,836 |
Less Than Twelve Months, Fair Value | 306,792 | 975,900 |
Twelve Months or More, Gross Unrealized Losses | 43,713 | 21,618 |
Twelve Months or More, Fair Value | 1,813,173 | 877,798 |
Less Than Twelve Months, Gross Unrealized Losses | 20,209 | 15,954 |
Less Than Twelve Months, Fair Value | 7,359,536 | 5,521,443 |
Twelve Months or More, Gross Unrealized Losses | 47,225 | 32,129 |
Twelve Months or More, Fair Value | 2,782,627 | 1,281,797 |
Residential Mortgage-Backed Securities [Member] | ||
Less Than Twelve Months, Gross Unrealized Losses | 14,199 | 0 |
Less Than Twelve Months, Fair Value | 3,032,237 | 0 |
Twelve Months or More, Gross Unrealized Losses | 2,981 | 2,844 |
Twelve Months or More, Fair Value | 129,410 | 188,081 |
Less Than Twelve Months, Gross Unrealized Losses | 5,671 | 132 |
Less Than Twelve Months, Fair Value | 879,487 | 146,203 |
Twelve Months or More, Gross Unrealized Losses | 1,611 | 0 |
Twelve Months or More, Fair Value | $ 89,464 | $ 0 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Real estate loans | $ 283,000,000 | ||
Loans pledged | 61,443,772 | ||
FHLB Blanket lien and multifamily portfolios total | 120,023,526 | ||
Loans placed on nonaccrual status amount | 1,204,861 | $ 1,674,656 | |
Past due loan over 90 days and still accruing | 0 | 0 | |
Interest income on nonaccrual | 64,015 | 41,496 | |
Impaired loans | 4,356,381 | 4,895,730 | $ 3,560,901 |
Allowance for loan losses | 518,230 | 331,779 | 549,429 |
Average impaired loans | 8,325,530 | ||
Interest income received during impairment | $ 192,071 | ||
Troubled debt restructuring | 7,458 | 4,243 | |
Troubled debt restructuring, charge -off | 0 | ||
Allowance for loan losses allocated to TDRs | 0 | 0 | |
Unfunded commitment troubled debt restructured loan to lend to customer | 0 | ||
Individually evaluated for impairment | 4,505,505 | 8,062,312 | |
Deemed impaired loans | $ 4,356,381 | $ 4,895,730 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Loans outstanding | $ 376,767,688 | $ 330,191,311 |
Unearned interest and discount | (17,451) | (17,921) |
Allowance for loan losses | (3,428,869) | (3,043,632) |
Net loans | 373,321,368 | 327,129,758 |
Commercial, Financial and Agricultural Loans [Member] | ||
Loans outstanding | 88,403,215 | 73,146,397 |
Construction Loans [Member] | ||
Loans outstanding | 24,890,536 | 22,287,012 |
Commercial Mortgage Loans [Member] | ||
Loans outstanding | 123,477,369 | 106,458,342 |
Residential Loans [Member] | ||
Loans outstanding | 103,347,898 | 99,159,607 |
Agricultural Loans [Member] | ||
Loans outstanding | 31,561,686 | 25,373,621 |
Consumer and Other Loans [Member] | ||
Loans outstanding | $ 5,086,984 | $ 3,766,332 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Past Due Loans and Nonaccrual Loans (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total Past Due Loans | $ 2,166,283 | $ 3,262,152 |
Nonaccrual Loans | 1,204,861 | 1,674,656 |
Current Loans | 373,396,544 | 325,254,503 |
Total Loans | 376,767,688 | 330,191,311 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 2,166,283 | 3,262,152 |
Commercial, Financial and Agricultural Loans [Member] | ||
Total Past Due Loans | 247,397 | 364,527 |
Nonaccrual Loans | 36,157 | 394,455 |
Current Loans | 88,119,661 | 72,387,415 |
Total Loans | 88,403,215 | 73,146,397 |
Commercial, Financial and Agricultural Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Commercial, Financial and Agricultural Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 247,397 | 364,527 |
Construction Loans [Member] | ||
Total Past Due Loans | 0 | 198,861 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 24,890,536 | 22,088,151 |
Total Loans | 24,890,536 | 22,287,012 |
Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Construction Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 198,861 |
Commercial Mortgage Loans [Member] | ||
Total Past Due Loans | 0 | 645,214 |
Nonaccrual Loans | 1,022,550 | 757,085 |
Current Loans | 122,454,819 | 105,056,043 |
Total Loans | 123,477,369 | 106,458,342 |
Commercial Mortgage Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Commercial Mortgage Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 645,214 |
Residential Loans [Member] | ||
Total Past Due Loans | 1,560,913 | 2,023,517 |
Nonaccrual Loans | 146,154 | 518,301 |
Current Loans | 101,640,831 | 96,617,789 |
Total Loans | 103,347,898 | 99,159,607 |
Residential Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Residential Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 1,560,913 | 2,023,517 |
Agricultural Loans [Member] | ||
Total Past Due Loans | 321,319 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 31,240,367 | 25,373,621 |
Total Loans | 31,561,686 | 25,373,621 |
Agricultural Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Agricultural Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | 321,319 | 0 |
Consumer and Other Loans [Member] | ||
Total Past Due Loans | 36,654 | 30,033 |
Nonaccrual Loans | 0 | 4,815 |
Current Loans | 5,050,330 | 3,731,484 |
Total Loans | 5,086,984 | 3,766,332 |
Consumer and Other Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Total Past Due Loans | 0 | 0 |
Consumer and Other Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Total Past Due Loans | $ 36,654 | $ 30,033 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Impaired Loans Segregated by Class of Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unpaid Principal Balance | $ 4,187,966 | $ 5,265,922 | |
Recorded Investment With No Allowance | 2,686,743 | 2,204,527 | |
Recorded Investment With Allowance | 1,669,638 | 2,691,203 | |
Total Recorded Investment | 4,356,381 | 4,895,730 | $ 3,560,901 |
Related Allowance | 518,230 | 331,779 | $ 549,429 |
Year-to-date Average Recorded Investment | 3,817,174 | 3,789,822 | |
Interest Income Received During Impairment | 257,334 | 207,180 | |
Commercial, Financial and Agricultural Loans [Member] | |||
Unpaid Principal Balance | 184,899 | 459,003 | |
Recorded Investment With No Allowance | 87,525 | 208,032 | |
Recorded Investment With Allowance | 568,816 | 250,971 | |
Total Recorded Investment | 656,341 | 459,003 | |
Related Allowance | 276,392 | 44,468 | |
Year-to-date Average Recorded Investment | 370,038 | 169,930 | |
Interest Income Received During Impairment | 52,411 | 10,920 | |
Construction Loans [Member] | |||
Unpaid Principal Balance | 402,234 | 549,599 | |
Recorded Investment With No Allowance | 281,434 | 428,799 | |
Recorded Investment With Allowance | 0 | 0 | |
Total Recorded Investment | 281,434 | 428,799 | |
Related Allowance | 0 | 0 | |
Year-to-date Average Recorded Investment | 281,434 | 162,698 | |
Interest Income Received During Impairment | 25,364 | 24,487 | |
Commercial Mortgage Loans [Member] | |||
Unpaid Principal Balance | 1,787,305 | 1,615,811 | |
Recorded Investment With No Allowance | 1,277,611 | 1,107,654 | |
Recorded Investment With Allowance | 333,892 | 339,440 | |
Total Recorded Investment | 1,611,503 | 1,447,094 | |
Related Allowance | 51,854 | 57,403 | |
Year-to-date Average Recorded Investment | 1,544,299 | 1,071,663 | |
Interest Income Received During Impairment | 45,403 | 54,582 | |
Residential Loans [Member] | |||
Unpaid Principal Balance | 1,801,002 | 2,476,728 | |
Recorded Investment With No Allowance | 1,027,647 | 316,230 | |
Recorded Investment With Allowance | 752,443 | 2,079,823 | |
Total Recorded Investment | 1,780,090 | 2,396,053 | |
Related Allowance | 188,368 | 224,916 | |
Year-to-date Average Recorded Investment | 1,594,390 | 2,233,562 | |
Interest Income Received During Impairment | 127,806 | 108,472 | |
Agricultural Loans [Member] | |||
Unpaid Principal Balance | 12,526 | 142,966 | |
Recorded Investment With No Allowance | 12,526 | 142,966 | |
Recorded Investment With Allowance | 0 | 0 | |
Total Recorded Investment | 12,526 | 142,966 | |
Related Allowance | 0 | 0 | |
Year-to-date Average Recorded Investment | 12,526 | 142,966 | |
Interest Income Received During Impairment | 5,530 | 8,198 | |
Consumer and Other Loans [Member] | |||
Unpaid Principal Balance | 0 | 21,815 | |
Recorded Investment With No Allowance | 0 | 846 | |
Recorded Investment With Allowance | 14,487 | 20,969 | |
Total Recorded Investment | 14,487 | 21,815 | |
Related Allowance | 1,616 | 4,992 | |
Year-to-date Average Recorded Investment | 14,487 | 9,003 | |
Interest Income Received During Impairment | $ 820 | $ 521 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructuring by Loan Class (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Troubled Debt Restructuring | $ 7,458 | $ 4,243 | |
Current [Member] | |||
Troubled Debt Restructuring | 7,458 | 4,243 | |
Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Accruing [Member] | |||
Troubled Debt Restructuring | 7,458 | 4,243 | |
Non-accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Commercial, Financial and Agricultural Loans [Member] | Current [Member] | |||
Troubled Debt Restructuring | 5,570 | 0 | |
Commercial, Financial and Agricultural Loans [Member] | Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Commercial, Financial and Agricultural Loans [Member] | Accruing [Member] | |||
Troubled Debt Restructuring | 5,570 | 0 | |
Commercial, Financial and Agricultural Loans [Member] | Non-accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Construction Loans [Member] | Current [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Construction Loans [Member] | Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Construction Loans [Member] | Accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Construction Loans [Member] | Non-accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Commercial Mortgage Loans [Member] | Current [Member] | |||
Troubled Debt Restructuring | 0 | $ 0 | |
Commercial Mortgage Loans [Member] | Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Commercial Mortgage Loans [Member] | Accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Commercial Mortgage Loans [Member] | Non-accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Residential Loans [Member] | Current [Member] | |||
Troubled Debt Restructuring | 1,888 | 3,397 | |
Residential Loans [Member] | Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Residential Loans [Member] | Accruing [Member] | |||
Troubled Debt Restructuring | 1,888 | 3,397 | |
Residential Loans [Member] | Non-accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Agricultural Loans [Member] | Current [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Agricultural Loans [Member] | Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Agricultural Loans [Member] | Accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Agricultural Loans [Member] | Non-accruing [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Consumer and Other Loans [Member] | Current [Member] | |||
Troubled Debt Restructuring | 0 | 846 | |
Consumer and Other Loans [Member] | Default [Member] | |||
Troubled Debt Restructuring | 0 | 0 | |
Consumer and Other Loans [Member] | Accruing [Member] | |||
Troubled Debt Restructuring | 0 | 846 | |
Consumer and Other Loans [Member] | Non-accruing [Member] | |||
Troubled Debt Restructuring | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings By Types of Concessions Made (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accruing [Member] | ||
Payment modification | $ 0 | $ 0 |
Rate reduction | 0 | 0 |
Rate reduction, payment modification | 1,888 | 4,243 |
Forbearance of interest | 5,570 | 0 |
Total | 7,458 | 4,243 |
Non-accruing [Member] | ||
Payment modification | 0 | 0 |
Rate reduction | 0 | 0 |
Rate reduction, payment modification | 0 | 0 |
Forbearance of interest | 0 | 0 |
Total | $ 0 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Schedule of Internal Loan Grading by Class of Loans (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total Loans | $ 376,767,688 | $ 330,191,311 |
Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 88,403,215 | 73,146,397 |
Construction Loans [Member] | ||
Total Loans | 24,890,536 | 22,287,012 |
Commercial Mortgage Loans [Member] | ||
Total Loans | 123,477,369 | 106,458,342 |
Residential Loans [Member] | ||
Total Loans | 103,347,898 | 99,159,607 |
Agricultural Loans [Member] | ||
Total Loans | 31,561,686 | 25,373,621 |
Consumer and Other Loans [Member] | ||
Total Loans | 5,086,984 | 3,766,332 |
Rating, Grade 1- Exceptional [Member] | ||
Total Loans | 1,470,552 | 1,720,290 |
Rating, Grade 1- Exceptional [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 1,237,602 | 1,371,135 |
Rating, Grade 1- Exceptional [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Residential Loans [Member] | ||
Total Loans | 22,905 | 23,919 |
Rating, Grade 1- Exceptional [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 1- Exceptional [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 210,045 | 325,236 |
Rating, Grade 2- Above Avg. [Member] | ||
Total Loans | 43,711 | 51,421 |
Rating, Grade 2- Above Avg. [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Residential Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 2- Above Avg. [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 43,711 | 51,421 |
Rating, Grade 3- Acceptable [Member] | ||
Total Loans | 99,934,655 | 97,442,348 |
Rating, Grade 3- Acceptable [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 23,821,846 | 27,024,359 |
Rating, Grade 3- Acceptable [Member] | Construction Loans [Member] | ||
Total Loans | 1,860,003 | 2,085,620 |
Rating, Grade 3- Acceptable [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 30,398,565 | 30,090,030 |
Rating, Grade 3- Acceptable [Member] | Residential Loans [Member] | ||
Total Loans | 25,839,646 | 26,304,640 |
Rating, Grade 3- Acceptable [Member] | Agricultural Loans [Member] | ||
Total Loans | 16,863,356 | 11,071,244 |
Rating, Grade 3- Acceptable [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 1,151,239 | 866,455 |
Rating, Grade 4- Fair [Member] | ||
Total Loans | 261,095,735 | 217,491,441 |
Rating, Grade 4- Fair [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 58,753,931 | 42,821,117 |
Rating, Grade 4- Fair [Member] | Construction Loans [Member] | ||
Total Loans | 22,749,099 | 19,772,593 |
Rating, Grade 4- Fair [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 88,122,957 | 70,518,545 |
Rating, Grade 4- Fair [Member] | Residential Loans [Member] | ||
Total Loans | 73,114,310 | 68,103,351 |
Rating, Grade 4- Fair [Member] | Agricultural Loans [Member] | ||
Total Loans | 14,698,330 | 13,781,326 |
Rating, Grade 4- Fair [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 3,657,108 | 2,494,509 |
Rating, Grade 5a- Watch [Member] | ||
Total Loans | 3,613,973 | 1,952,751 |
Rating, Grade 5a- Watch [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 473,616 | 120,626 |
Rating, Grade 5a- Watch [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5a- Watch [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 2,411,710 | 1,027,581 |
Rating, Grade 5a- Watch [Member] | Residential Loans [Member] | ||
Total Loans | 722,441 | 757,628 |
Rating, Grade 5a- Watch [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 39,344 |
Rating, Grade 5a- Watch [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 6,206 | 7,572 |
Rating, Grade 5b- OAEM [Member] | ||
Total Loans | 4,827,694 | 5,197,060 |
Rating, Grade 5b- OAEM [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 3,079,098 | 557,070 |
Rating, Grade 5b- OAEM [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 5b- OAEM [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 446,841 | 3,073,051 |
Rating, Grade 5b- OAEM [Member] | Residential Loans [Member] | ||
Total Loans | 1,299,587 | 1,226,841 |
Rating, Grade 5b- OAEM [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 338,741 |
Rating, Grade 5b- OAEM [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 2,168 | 1,357 |
Rating, Grade 6- Substandard [Member] | ||
Total Loans | 5,531,555 | 6,029,148 |
Rating, Grade 6- Substandard [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 787,309 | 945,238 |
Rating, Grade 6- Substandard [Member] | Construction Loans [Member] | ||
Total Loans | 281,434 | 428,799 |
Rating, Grade 6- Substandard [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 2,097,296 | 1,749,135 |
Rating, Grade 6- Substandard [Member] | Residential Loans [Member] | ||
Total Loans | 2,349,009 | 2,743,228 |
Rating, Grade 6- Substandard [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 142,966 |
Rating, Grade 6- Substandard [Member] | Consumer and Other Loans [Member] | ||
Total Loans | 16,507 | 19,782 |
Rating, Grade 7- Doubtful [Member] | ||
Total Loans | 249,813 | 306,852 |
Rating, Grade 7- Doubtful [Member] | Commercial, Financial and Agricultural Loans [Member] | ||
Total Loans | 249,813 | 306,852 |
Rating, Grade 7- Doubtful [Member] | Construction Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Commercial Mortgage Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Residential Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Agricultural Loans [Member] | ||
Total Loans | 0 | 0 |
Rating, Grade 7- Doubtful [Member] | Consumer and Other Loans [Member] | ||
Total Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Schedule of Changes in Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Beginning balance | $ 3,043,632 | $ 3,124,611 | $ 3,032,242 |
Provisions charged to operations | 829,500 | 300,000 | 160,000 |
Loans charged off | (606,345) | (447,747) | (116,006) |
Recoveries | 162,082 | 66,768 | 48,375 |
Balance at end of period | $ 3,428,869 | $ 3,043,632 | $ 3,124,611 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses Methodology (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ 3,043,632 | $ 3,124,611 | $ 3,032,242 |
Charge-offs | 606,345 | 447,747 | 116,006 |
Recoveries | 162,082 | 66,768 | 48,375 |
Net charge-offs | 444,263 | 380,979 | |
Provisions charged to operations | 829,500 | 300,000 | 160,000 |
Individually evaluated for impairment | 518,230 | 331,779 | |
Collectively evaluated for impairment | 2,910,639 | 2,711,853 | |
Balance at end of period | 3,428,869 | 3,043,632 | 3,124,611 |
Individually evaluated for impairment | 4,505,505 | 8,062,312 | |
Collectively evaluated for impairment | 372,262,183 | 322,128,999 | |
Balance at end of period | 376,767,688 | 330,191,311 | |
Commercial, Financial and Agricultural [Member] | |||
Beginning balance | 324,260 | 191,267 | |
Charge-offs | 548,460 | 113,334 | |
Recoveries | 12,025 | 63,486 | |
Net charge-offs | 536,435 | 49,848 | |
Provisions charged to operations | 614,426 | 182,841 | |
Individually evaluated for impairment | 276,392 | 44,468 | |
Collectively evaluated for impairment | 125,859 | 279,792 | |
Balance at end of period | 402,251 | 324,260 | 191,267 |
Individually evaluated for impairment | 656,341 | 459,003 | |
Collectively evaluated for impairment | 87,746,874 | 72,687,394 | |
Balance at end of period | 88,403,215 | 73,146,397 | |
Construction Real Estate [Member] | |||
Beginning balance | 1,043,083 | 1,043,083 | |
Charge-offs | 783 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs | 783 | 0 | |
Provisions charged to operations | 727 | 0 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,043,027 | 1,043,083 | |
Balance at end of period | 1,043,027 | 1,043,083 | 1,043,083 |
Individually evaluated for impairment | 281,434 | 428,799 | |
Collectively evaluated for impairment | 24,609,102 | 21,858,213 | |
Balance at end of period | 24,890,536 | 22,287,012 | |
Commercial Real Estate [Member] | |||
Beginning balance | 1,056,595 | 1,192,098 | |
Charge-offs | 43,349 | 168,717 | |
Recoveries | 590 | 0 | |
Net charge-offs | 42,759 | 168,717 | |
Provisions charged to operations | 196,466 | 33,214 | |
Individually evaluated for impairment | 51,854 | 57,403 | |
Collectively evaluated for impairment | 1,158,448 | 999,192 | |
Balance at end of period | 1,210,302 | 1,056,595 | 1,192,098 |
Individually evaluated for impairment | 1,611,503 | 4,561,198 | |
Collectively evaluated for impairment | 121,865,866 | 101,897,144 | |
Balance at end of period | 123,477,369 | 106,458,342 | |
Residential Real Estate [Member] | |||
Beginning balance | 416,474 | 420,189 | |
Charge-offs | 6,909 | 59,764 | |
Recoveries | 0 | 0 | |
Net charge-offs | 6,909 | 59,764 | |
Provisions charged to operations | 49,306 | 56,049 | |
Individually evaluated for impairment | 188,368 | 224,916 | |
Collectively evaluated for impairment | 270,503 | 191,558 | |
Balance at end of period | 458,871 | 416,474 | 420,189 |
Individually evaluated for impairment | 1,929,214 | 2,448,531 | |
Collectively evaluated for impairment | 101,418,684 | 96,711,076 | |
Balance at end of period | 103,347,898 | 99,159,607 | |
Agricultural Real Estate [Member] | |||
Beginning balance | 11,560 | 86,656 | |
Charge-offs | 0 | 93,503 | |
Recoveries | 147,252 | 0 | |
Net charge-offs | (147,252) | 93,503 | |
Provisions charged to operations | (49,934) | 18,407 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 108,878 | 11,560 | |
Balance at end of period | 108,878 | 11,560 | 86,656 |
Individually evaluated for impairment | 12,526 | 142,966 | |
Collectively evaluated for impairment | 31,549,160 | 25,230,655 | |
Balance at end of period | 31,561,686 | 25,373,621 | |
Consumer and Other [Member] | |||
Beginning balance | 191,660 | 191,318 | |
Charge-offs | 6,844 | 12,429 | |
Recoveries | 2,215 | 3,282 | |
Net charge-offs | 4,629 | 9,147 | |
Provisions charged to operations | 18,509 | 9,489 | |
Individually evaluated for impairment | 1,616 | 4,992 | |
Collectively evaluated for impairment | 203,924 | 186,668 | |
Balance at end of period | 205,540 | 191,660 | $ 191,318 |
Individually evaluated for impairment | 14,487 | 21,815 | |
Collectively evaluated for impairment | 5,072,497 | 3,744,517 | |
Balance at end of period | $ 5,086,984 | $ 3,766,332 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Impaired Loans With Specific Reserves and Recorded Balance of Related Loans (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | |||
Allowance for loss on impaired loans | $ 518,230 | $ 331,779 | $ 549,429 |
Recorded balance of impaired loans | $ 4,356,381 | $ 4,895,730 | $ 3,560,901 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of premises and equipment | $ 1,036,986 | $ 881,000 | $ 923,578 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 3,842,146 | $ 3,846,146 |
Building | 15,411,518 | 12,821,154 |
Furniture and equipment | 10,767,592 | 9,442,378 |
Construction in process | 4,892 | 1,074,744 |
Premises and equipment, gross | 30,026,148 | 27,184,422 |
Less accumulated depreciation | (15,452,174) | (14,934,904) |
Total | $ 14,573,974 | $ 12,249,518 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets amortization period | These assets will fully amortize in March 2019. |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total intangible assets | $ 3,907 | $ 19,532 |
Account Relationships [Member] | ||
Total intangible assets | $ 3,907 | $ 19,532 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net carrying amount | $ 3,907 | $ 19,532 | |
Amortization expense | 15,625 | 15,625 | $ 15,625 |
Account Relationships [Member] | |||
Net carrying amount | 3,907 | $ 19,532 | |
Account Relationships [Member] | 2018 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 121,093 | ||
Net carrying amount | 3,907 | ||
Amortization expense | 15,625 | ||
Account Relationships [Member] | 2019 [Member] | |||
Gross carrying amount | 125,000 | ||
Accumulated amortization | 125,000 | ||
Net carrying amount | 0 | ||
Amortization expense | $ 3,907 |
Deposits (Details Narrative)
Deposits (Details Narrative) | 12 Months Ended | |
Dec. 31, 2018USD ($)Certificates | Dec. 31, 2017USD ($) | |
Deposits: | ||
Overdraft deposits reclassified as loans | $ 70,003 | $ 63,887 |
Certificates of deposit description | there were 47 certificates of deposit totaling $16,264,681 that were at or above the FDIC insurance limit of $250,000. | |
Number of certificates | Certificates | 47 | |
Certificates of deposit above the FDIC limit | $ 16,264,681 | $ 22,662,235 |
Cash FDIC insured amount | $ 250,000 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Certificates of Deposits (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total | $ 81,214,376 | $ 60,969,445 |
Deposits [Member] | ||
2019 | 74,553,918 | |
2020 | 19,062,966 | |
2021 | 1,970,720 | |
2022 | 1,823,345 | |
2023 and thereafter | 68,108 | |
Total | $ 97,479,057 |
Short-Term Borrowed Funds (Deta
Short-Term Borrowed Funds (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Unused federal funds | $ 96,800,000 | |
Fair value of FHLB advances | 31,591,000 | $ 46,658,000 |
Short term portion of long term principal | 4,457,000 | |
Unused lines of Credit [Member] | ||
Unused federal funds | 120,000,000 | |
Other Short Term Borrowed Funds [Member] | ||
Fair value of FHLB advances | $ 10,457,143 | $ 17,971,429 |
FHLB advances, interest rate | 1.92% | 1.73% |
Short-Term Borrowed Funds - Sum
Short-Term Borrowed Funds - Summary of FHLB (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Average balance during the year | $ 17,305,184 | $ 12,238,066 |
Average interest rate during the year | 2.29% | 1.83% |
Maximum month-end balance during the year | $ 20,971,429 | $ 22,114,286 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Pledged to secure | $ 61,443,772 | $ 58,684,267 |
FHLB Stock held on membership | 439,600 | 403,000 |
FHLB Stock held on advances | 1,380,700 | $ 2,035,200 |
Unused lines of credit | $ 96,800,000 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total long-term debt | $ 21,171,429 | $ 29,057,143 |
Advance From FHLB with 1.25% Fixed Rate Of Interest With Annual Installment Payments Maturing September 30, 2020 [Member] | ||
Total long-term debt | 1,600,000 | 3,200,000 |
Advance From FHLB With 1.94% Fixed Rate Of Interest With Annual Installment Payments Maturing December 16, 2022 [Member] | ||
Total long-term debt | 2,571,429 | 3,428,571 |
Advance From FHLB With 1.42% Fixed Rate Of Interest With Annual Installment Payments Maturing August 30, 2023 [Member] | ||
Total long-term debt | 0 | 4,285,715 |
Advance from FHLB With a 1.53% Fixed Rate of Interest Maturing January 10, 2019 [Member] | ||
Total long-term debt | 0 | 1,500,000 |
Advance from FHLB With a 1.60% Fixed Rate of Interest Maturing July 10, 2019 [Member] | ||
Total long-term debt | 0 | 1,500,000 |
Advance from FHLB With a 1.80% Fixed Rate of Interest Maturing July 10, 2020 [Member] | ||
Total long-term debt | 2,000,000 | 2,000,000 |
Advance from FHLB With a 1.93% Fixed Rate of Interest With Annual Installment Payments Maturing September 28, 2022 [Member] | ||
Total long-term debt | 6,000,000 | 8,000,000 |
Advance from FHLB With a 2.34% Fixed Rate of Interest With Annual Installment Payments Maturing December 5, 2024 [Member] | ||
Total long-term debt | 0 | 5,142,857 |
Advance From FHLB With a 3.018% Fixed Rate of Interest Maturing Sept. 17, 2021 [Member] | ||
Total long-term debt | 3,000,000 | 0 |
Advance From FHLB With a 3.192% Fixed Rate of Interest Maturing Sept. 20, 2023 [Member] | ||
Total long-term debt | 3,000,000 | 0 |
Advance From FHLB With a 3.400% Fixed Rate of Interest Maturing Sept. 20, 2025 [Member] | ||
Total long-term debt | $ 3,000,000 | $ 0 |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Long-Term Debt (Details) (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Advance From FHLB with 1.25% Fixed Rate Of Interest With Annual Installment Payments Maturing September 30, 2020 [Member] | |||
Long term debt interest rate | 1.25% | 1.25% | |
Long term debt maturity date | Sep. 30, 2020 | Sep. 30, 2022 | |
Advance From FHLB With 1.94% Fixed Rate Of Interest With Annual Installment Payments Maturing December 16, 2022 [Member] | |||
Long term debt interest rate | 1.94% | 1.94% | |
Long term debt maturity date | Dec. 16, 2022 | Dec. 16, 2022 | |
Advance From FHLB With 1.42% Fixed Rate Of Interest With Annual Installment Payments Maturing August 30, 2023 [Member] | |||
Long term debt interest rate | 1.42% | 1.42% | |
Long term debt maturity date | Aug. 30, 2023 | Aug. 30, 2023 | |
Advance from FHLB With a 1.53% Fixed Rate of Interest Maturing January 10, 2019 [Member] | |||
Long term debt interest rate | 1.53% | 1.53% | |
Long term debt maturity date | Jan. 10, 2019 | Jan. 10, 2019 | |
Advance from FHLB With a 1.60% Fixed Rate of Interest Maturing July 10, 2019 [Member] | |||
Long term debt interest rate | 1.60% | 1.60% | |
Long term debt maturity date | Jul. 10, 2019 | Jul. 10, 2019 | |
Advance from FHLB With a 1.80% Fixed Rate of Interest Maturing July 10, 2020 [Member] | |||
Long term debt interest rate | 1.80% | 1.80% | |
Long term debt maturity date | Jul. 10, 2020 | Jul. 10, 2020 | |
Advance from FHLB With a 1.93% Fixed Rate of Interest With Annual Installment Payments Maturing September 28, 2022 [Member] | |||
Long term debt interest rate | 1.93% | 1.93% | |
Long term debt maturity date | Sep. 28, 2022 | Sep. 28, 2022 | |
Advance from FHLB With a 2.34% Fixed Rate of Interest With Annual Installment Payments Maturing December 5, 2024 [Member] | |||
Long term debt interest rate | 2.34% | 2.34% | |
Long term debt maturity date | Dec. 5, 2024 | Dec. 5, 2024 | |
Advance From FHLB With a 3.018% Fixed Rate of Interest Maturing Sept. 17, 2021 [Member] | |||
Long term debt interest rate | 3.018% | 3.018% | |
Long term debt maturity date | Sep. 17, 2021 | Sep. 17, 2021 | |
Advance From FHLB With a 3.192% Fixed Rate of Interest Maturing Sept. 20, 2023 [Member] | |||
Long term debt interest rate | 3.192% | 3.192% | |
Long term debt maturity date | Sep. 20, 2023 | Sep. 20, 2023 | |
Advance From FHLB With a 3.400% Fixed Rate of Interest Maturing Sept. 20, 2025 [Member] | |||
Long term debt interest rate | 3.40% | 3.40% | |
Long term debt maturity date | Sep. 20, 2025 | Sep. 20, 2025 |
Long Term Debt - Schedule of De
Long Term Debt - Schedule of Debt Maturities (Details) | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 0 |
2020 | 6,457,143 |
2021 | 5,857,143 |
2022 | 2,857,143 |
2023 | 3,000,000 |
Later years | 3,000,000 |
Total long-term debt | $ 21,171,429 |
Employee Benefits and Retirem_3
Employee Benefits and Retirement Plans (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase decrease in accrued pension liability | $ 721,735 | $ 716,622 | $ 775,423 |
Changes to other comprehensive income (loss) on pre-tax basis | (32,075) | 62,698 | |
Increased in fair value of plan assets | $ 993,057 | ||
Targeted investment portfolio allocated | 45.00% | ||
Investments | $ 300,000,000 | ||
Estimated amortization amounts, net loss | 580,843 | ||
Expected contribute from employer | 460,000 | 480,000 | 550,000 |
Expense incurred | $ (412,047) | 129,086 | 472,947 |
Stock options exercise period | 10 years | ||
Pension Plan 2019 [Member] | |||
Expected contribute from employer | $ 400,000 | ||
Southwest Georgia Bank 401(K) Plan [Member] | |||
Employee contributions | 219,006 | 204,565 | 186,253 |
Employee Stock Ownership Plan [Member] | |||
Expected contribute from employer | $ 475,000 | 425,000 | 400,000 |
ESOP holds Corporation's outstanding common stock | 252,248 | ||
Number of shares are allocated to participants | 223,203 | ||
Unreleased shares are pledged as collateral | 29,045 | ||
Long-term debt incurred from repurchasing participants' shares | $ 640,000 | ||
Directors and Executive Officers Stock Purchase Plan [Member] | |||
Employee contributions | 900 | ||
Expense incurred | $ 248,800 | $ 265,900 | $ 290,573 |
Dividend Reinvestment and Share Purchase Plan [Member] | |||
Reinvestment of common stock dividends, voluntary cash payments description | not less than $5 nor more than $5,000 per month | ||
Shares issued through the plan | 5,726 | 5,286 | 6,955 |
Shares issued at an average price per share | $ 22.63 | $ 21.18 | $ 15.92 |
2013 Omnibus Incentive Plan [Member] | |||
Stock options exercise period | 5 years | ||
Common stock authorized for issuance | 125,000 | ||
Number of restricted stock awards shares granted during the period | 13,316 | ||
Restricted stock awards vested | 854 | ||
Incentive Plan [Member] | |||
Number of restricted stock awards shares granted during the period | 4,271 | ||
Equity Securities [Member] | |||
Targeted investment portfolio allocated | 20.00% | ||
Minimum [Member] | |||
Targeted investment portfolio allocated | 50.00% | ||
Maximum [Member] | |||
Targeted investment portfolio allocated | 90.00% | ||
Pension Plan [Member] | |||
Increase decrease in accrued pension liability | $ 40,601 | $ 503,167 |
Employee Benefits And Retirem_4
Employee Benefits And Retirement Plans - Schedule of Computed Benefit Obligations and Net Assets and Related Changes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Benefit obligation at beginning of year | $ 12,745,058 | $ 13,149,559 | $ 13,885,378 |
Service cost | 0 | 0 | 0 |
Interest cost | 657,845 | 712,228 | 764,323 |
Amendments | 0 | 0 | 0 |
Settlement | (100,395) | (129,172) | (841,941) |
Benefits paid | (1,097,859) | (1,116,643) | (1,131,148) |
Other - net | (412,047) | 129,086 | 472,947 |
Benefit obligation at end of year | 11,792,602 | 12,745,058 | 13,149,559 |
Fair value of plan assets at beginning of year | 10,672,811 | 10,574,145 | 11,420,270 |
Actual return on plan assets | (254,803) | 864,481 | 576,964 |
Employer contribution | 460,000 | 480,000 | 550,000 |
Benefits paid | (1,198,254) | (1,245,815) | (1,973,089) |
Fair value of plan assets at end of year | 9,679,754 | 10,672,811 | 10,574,145 |
Funded status | (2,112,848) | (2,072,247) | (2,575,414) |
Unrecognized net actuarial (gain)/loss | 0 | 0 | 0 |
Unrecognized prior service cost | 0 | 0 | 0 |
Pension liability included in other liabilities | (2,112,848) | (2,072,247) | (2,575,414) |
Accumulated benefit obligation | $ 11,792,602 | $ 12,745,058 | $ 13,149,559 |
Employee Benefits and Retirem_5
Employee Benefits and Retirement Plans - Amount Recognized in Consolidated Balance Sheet (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Accrued Pension | $ 2,112,848 | $ 2,072,247 | $ 2,575,414 |
Deferred tax assets | 443,698 | 435,172 | 875,641 |
Accumulated other comprehensive income | 1,669,150 | 1,637,075 | 1,699,773 |
Total | 2,112,848 | 2,072,247 | 2,575,414 |
Service cost | 0 | 0 | 0 |
Interest cost on benefit obligation | 657,845 | 712,228 | 764,323 |
Expected return on plan assets | (721,735) | (716,622) | (775,423) |
Other - net | 482,679 | 587,821 | 657,260 |
Net periodic pension cost | 418,789 | 583,427 | 646,160 |
Partial recognition of loss due to settlement | 0 | 0 | 426,599 |
Total | $ 418,789 | $ 583,427 | $ 1,072,759 |
Employee Benefits and Retirem_6
Employee Benefits and Retirement Plans - Amounts Recognized in Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Net loss (gain) | $ 40,601 | $ (503,167) | $ 110,306 |
Prior service costs | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 40,601 | (503,167) | 110,306 |
Net periodic pension cost | 418,789 | 583,427 | 646,160 |
Partial recognition of loss due to settlement | 0 | 0 | 426,599 |
Total recognized in net periodic pension cost and other comprehensive income | $ 459,390 | $ (80,260) | $ 1,183,065 |
Employee Benefits and Retirem_7
Employee Benefits and Retirement Plans - Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Discount rate | 5.70% | 5.70% |
Rate of compensation increase | 0.00% | 0.00% |
Employee Benefits and Retirem_8
Employee Benefits and Retirement Plans - Assumptions Used to Determine Net Periodic Pension Cost (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Discount rate | 5.70% | 5.70% | 5.75% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Employee Benefits and Retirem_9
Employee Benefits and Retirement Plans - Pension Asset Allocation and Fair Value Measurement (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Equity | $ 3,482,765 | $ 4,302,437 | ||
Equity, percentage | 36.00% | 40.00% | ||
Fixed income | $ 1,096,033 | $ 1,351,048 | ||
Fixed income, percentage | 11.00% | 13.00% | ||
Total | $ 4,578,798 | $ 5,653,485 | ||
Total, percentage | 47.00% | 53.00% | ||
Certificates of deposit | $ 4,521,110 | $ 4,283,144 | ||
Certificates of deposits, percentage | 47.00% | 40.00% | ||
Cash and cash equivalent | $ 579,846 | $ 736,182 | ||
Cash and cash equivalents, percentage | 6.00% | 7.00% | ||
Total | $ 5,100,956 | $ 5,019,326 | ||
Total, percentage | 53.00% | 47.00% | ||
Fair value of plan assets | $ 9,679,754 | $ 10,672,811 | $ 10,574,145 | $ 11,420,270 |
Fair value of plan assets, percentage | 100.00% | 100.00% | ||
Level 1 [Member] | ||||
Equity | $ 3,482,765 | $ 4,302,437 | ||
Fixed income | 1,096,033 | 1,351,048 | ||
Total | 4,578,798 | 5,653,485 | ||
Certificates of deposit | 4,521,110 | 4,283,144 | ||
Cash and cash equivalent | 579,846 | 736,182 | ||
Total | 5,100,956 | 5,019,326 | ||
Fair value of plan assets | $ 9,679,754 | $ 10,672,811 |
Employee Benefits and Retire_10
Employee Benefits and Retirement Plans - Estimated Future Benefit Payments (Details) | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2019 | $ 1,159,000 |
2020 | 1,127,000 |
2021 | 1,097,000 |
2022 | 1,113,000 |
2023 | 1,075,000 |
Years 2024 - 2028 | $ 4,744,000 |
Employee Benefits and Retire_11
Employee Benefits and Retirement Plans - Summary of Outstanding Restricted Stock Awards (Details) - Restricted Stock [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non-vested Number of Shares, beginning balance | 4,271 | 0 |
Non-vested Number of Shares, Granted | 13,316 | 4,271 |
Non-vested Number of Shares, Vested | (854) | 0 |
Non-vested Number of Shares, ending balance | 16,733 | 4,271 |
Non-vested Amount, beginning balance | $ 88,153 | $ 0 |
Non-vested Amount, Granted | 306,032 | 88,153 |
Non-vested Amount, Vested | (17,627) | 0 |
Non-vested Amount, ending balance | $ 376,558 | $ 88,153 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Additional income tax expense | $ 98,639 | $ 419,359 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current expense | $ 324,532 | $ 1,101,902 | $ 1,163,230 | ||||||||
Deferred taxes (benefit) | 639,637 | 517,998 | (10,754) | ||||||||
Total income taxes | $ 253,000 | $ 209,000 | $ 207,000 | $ (1,000) | $ 735,000 | $ 261,000 | $ 316,000 | $ 308,000 | $ 668,416 | $ 1,619,900 | $ 1,152,476 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Taxes at statutory income tax rate | $ 1,116,262 | $ 1,845,313 | $ 1,763,394 | ||||||||
Reductions in taxes resulting from exempt income | (272,486) | (524,347) | (547,556) | ||||||||
Other timing differences | (175,360) | 298,934 | (63,362) | ||||||||
Total income taxes | $ 253,000 | $ 209,000 | $ 207,000 | $ (1,000) | $ 735,000 | $ 261,000 | $ 316,000 | $ 308,000 | $ 668,416 | $ 1,619,900 | $ 1,152,476 |
Taxes at statutory income tax rate, percentage | 21.00% | 34.00% | 34.00% | ||||||||
Reductions in taxes resulting from exempt income, percentage | (5.10%) | (9.70%) | (10.60%) | ||||||||
Other timing differences, percentage | (3.30%) | 5.50% | (1.20%) | ||||||||
Total income taxes, percentage | 12.60% | 29.80% | 22.20% |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Nonqualified retirement plan | $ 0 | $ 0 | $ 0 |
Intangible asset amortization | 0 | 172,816 | 0 |
Deferred gain on covered transaction | 5,004 | 9,352 | 498 |
Nonaccrual loan interest | 8,369 | (6,896) | 32,157 |
Recognition of AMT tax credit carryforward | 332,776 | 0 | 0 |
Foreclosed assets expenses | 41,530 | (42,075) | (3,413) |
Bad debt expense in excess of tax | (80,902) | 423,203 | (31,405) |
Realized impairment gain on equity securities | 0 | 0 | 0 |
Accretion of discounted bonds | 16,805 | 14,772 | 33,187 |
Gain on disposition of discounted bonds | (4,188) | (28,215) | (23,059) |
Book and tax depreciation difference | 357,266 | (24,959) | (18,719) |
Other timing differences | (37,023) | 0 | 0 |
Total deferred taxes | $ 639,637 | $ 517,998 | $ (10,754) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Nonaccrual loan interest | $ 474 | $ 8,843 |
Deferred gain on covered transaction | 9,300 | 14,304 |
Alternative minimum tax | 0 | 332,776 |
Foreclosed assets expenses | 10,163 | 51,693 |
Intangible asset amortization | 125,883 | 125,883 |
Bad debt expense in excess of tax | 720,063 | 639,161 |
Realized loss on other-than-temporarily impaired equity securities | 214,353 | 214,353 |
Deferred directors compensation | 133,057 | 104,561 |
Capital loss carryforward | 32,878 | 32,878 |
Pension plan | 443,698 | 435,172 |
Unrealized losses on securities available for sale | 137,761 | 0 |
Total deferred tax assets | 1,827,630 | 1,959,624 |
Accretion on bonds and gain on discounted bonds | 68,307 | 55,690 |
Book and tax depreciation difference | 575,899 | 218,634 |
Unrealized gains on securities available for sale | 0 | 1,982 |
Total deferred tax liabilities | 506,445 | 276,306 |
Net deferred tax assets | $ 1,183,424 | $ 1,683,318 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Shares held in ESOP and trust | 252,248 | |
Number of shares pledged | 29,045 | |
Aggregate indebtedness to bank | $ 1,567,000 | $ 1,079,000 |
Loans from related parties | 811,000 | |
Repayment of loans | 323,000 | |
Directors and executive officers deposits | $ 2,015,000 | $ 2,072,000 |
Commitments, Contingent Liabi_3
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 9,100 | $ 15,600 | $ 15,600 |
Commitments, Contingent Liabi_4
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk - Contractual or Notional Amounts of Financial Instruments (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 39,418,110 | $ 24,706,357 |
Standby letters of credit and financial guarantees | $ 4,342,849 | $ 3,134,849 |
Commitments, Contingent Liabi_5
Commitments, Contingent Liabilities, and Financial Instruments with Off-Balance Sheet Risk - Schedule of Future Cash Payments (Details) | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Less than 1 Year | $ 5,148 |
1-3 Years | 5,148 |
4-5 Years | 0 |
After 5 Years | 0 |
Operating leases | $ 10,296 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures (Details Narrative) | Dec. 31, 2018 |
Minimum [Member] | |
Percentage of estimated selling cost range | 15.00% |
Percentage of nonaccrual impaired loan write down range | 80.00% |
Maximum [Member] | |
Percentage of estimated selling cost range | 20.00% |
Percentage of nonaccrual impaired loan write down range | 85.00% |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Schedule of Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. government treasury securities | $ 954,570 | $ 967,770 |
U.S. government agency securities | 45,207,005 | 43,860,090 |
State and municipal securities | 7,377,935 | 7,573,689 |
Residential mortgage-backed securities | 4,774,067 | 1,861,712 |
Total | 58,313,577 | 54,263,261 |
Level 1 [Member] | ||
U.S. government treasury securities | 954,570 | 967,770 |
U.S. government agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Total | 954,570 | 967,770 |
Level 2 [Member] | ||
U.S. government treasury securities | 0 | 0 |
U.S. government agency securities | 45,207,005 | 43,860,090 |
State and municipal securities | 7,377,935 | 7,573,689 |
Residential mortgage-backed securities | 4,774,067 | 1,861,712 |
Total | 57,359,007 | 53,295,491 |
Level 3 [Member] | ||
U.S. government treasury securities | 0 | 0 |
U.S. government agency securities | 0 | 0 |
State and municipal securities | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Schedule of Fair Value of Assets Recorded on a Nonrecurring Basis (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Foreclosed assets | $ 127,605 | $ 758,878 |
Impaired loans | 3,838,151 | 4,563,951 |
Total assets at fair value | 3,965,756 | 5,322,829 |
Level 1 [Member] | ||
Foreclosed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 [Member] | ||
Foreclosed assets | 0 | 0 |
Impaired loans | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 [Member] | ||
Foreclosed assets | 127,605 | 758,878 |
Impaired loans | 3,838,151 | 4,563,951 |
Total assets at fair value | $ 3,965,756 | $ 5,322,829 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures - Schedule of Carrying and Estimated Fair Value of Assets and Liabilities Recorded at Fair Value (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 35,498,792 | $ 34,138,421 | $ 26,519,916 | $ 31,080,273 |
Certificates of deposit in other banks | 2,732,000 | 1,985,000 | ||
Investment securities available for sale | 58,313,577 | 54,263,261 | ||
Investment securities held to maturity | 37,010,327 | 45,147,800 | ||
Federal Home Loan Bank stock | 1,820,300 | 2,438,200 | ||
Loans, net | 366,228,000 | 325,248,000 | ||
Bank owned life insurance | 6,779,242 | 6,553,318 | $ 5,356,683 | |
Deposits | 456,245,000 | 397,331,000 | ||
Federal Home Loan Bank advances | 31,591,000 | 46,658,000 | ||
Level 1 [Member] | ||||
Cash and cash equivalents | 35,499,000 | 34,138,000 | ||
Certificates of deposit in other banks | 2,732,000 | 1,985,000 | ||
Investment securities available for sale | 955,000 | 968,000 | ||
Investment securities held to maturity | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Bank owned life insurance | 0 | 0 | ||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Level 2 [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit in other banks | 0 | 0 | ||
Investment securities available for sale | 57,359,000 | 53,396,000 | ||
Investment securities held to maturity | 37,010,000 | 45,148,000 | ||
Federal Home Loan Bank stock | 1,820,000 | 2,438,000 | ||
Loans, net | 362,373,000 | 320,684,000 | ||
Bank owned life insurance | 6,779,000 | 6,553,000 | ||
Deposits | 456,245,000 | 397,331,000 | ||
Federal Home Loan Bank advances | 31,591,000 | 46,658,000 | ||
Level 3 [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit in other banks | 0 | 0 | ||
Investment securities available for sale | 0 | 0 | ||
Investment securities held to maturity | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Loans, net | 3,838,000 | 4,564,000 | ||
Bank owned life insurance | 0 | 0 | ||
Deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Carrying Amount [Member] | ||||
Cash and cash equivalents | 35,499,000 | 34,138,000 | ||
Certificates of deposit in other banks | 2,732,000 | 1,985,000 | ||
Investment securities available for sale | 58,314,000 | 54,364,000 | ||
Investment securities held to maturity | 36,827,000 | 44,591,000 | ||
Federal Home Loan Bank stock | 1,820,000 | 2,438,000 | ||
Loans, net | 373,321,000 | 327,130,000 | ||
Bank owned life insurance | 6,779,000 | 6,553,000 | ||
Deposits | 455,640,000 | 397,006,000 | ||
Federal Home Loan Bank advances | $ 31,629,000 | $ 47,029,000 |
Supplemental Financial Data - S
Supplemental Financial Data - Schedule of Components of Operating Expenses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Income Statement Elements [Abstract] | |||
Bank card interchange fees | $ 576,359 | $ 600,619 | $ 506,506 |
Other professional fees | 287,273 | 317,147 | 202,267 |
Advertising & public relations | 264,269 | 192,016 | 173,595 |
Directors & board committee fees | 241,523 | 278,821 | 328,919 |
FDIC insurance assessment | 233,878 | 247,963 | 201,605 |
Administrative expense - employee benefit plans | 209,399 | 207,602 | 231,311 |
Telephone expense | $ 284,586 | $ 180,559 | $ 155,393 |
Stockholders' Equity _ Regulato
Stockholders' Equity / Regulatory Matters (Details Narrative) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Net assets available for payment of dividends | $ 2,375,242 |
Bank reserves | $ 5,504,000 |
Bank regulatory framework for prompt corrective action description | Under the Basel III rules, the Bank must hold a capital conservation buffer above the minimum regulatory risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2018 is 1.875%. |
Investment in consolidated wholly-owned bank subsidiary, at equity | $ 41,497,254 |
Subsidiary Bank [Member] | |
Parent companys investments in net assets | $ 39,122,012 |
Stockholders' Equity _ Regula_2
Stockholders' Equity / Regulatory Matters - Summary of Leverage Ratio (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Total capital (to risk- weighted assets), Ratio | 8.00% | ||
Tier I capital (to risk- weighted assets), Ratio | 4.50% | ||
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 6.00% | ||
Southwest Georgia Bank [Member] | |||
Common equity Tier 1 (to risk-weighted assets) Actual Amount | $ 43,680,743 | $ 40,247,187 | |
Total capital (to risk- weighted assets), Actual Amount | 47,109,612 | 43,290,819 | |
Tier I capital (to risk- weighted assets), Actual Amount | 43,680,743 | 40,247,187 | |
Leverage (tier I capital to average assets), Actual Amount | $ 43,680,743 | $ 40,247,187 | |
Common equity Tier 1 (to risk-weighted assets), Ratio | 11.44% | 12.02% | |
Total capital (to risk- weighted assets), Ratio | 12.34% | 12.93% | |
Tier I capital (to risk- weighted assets), Ratio | 11.44% | 12.02% | |
Leverage (tier I capital to average assets), Ratio | 8.24% | 8.29% | |
Common equity Tier 1 (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 17,180,290 | $ 15,069,727 | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 30,542,738 | 26,790,625 | |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 22,907,053 | 20,092,969 | |
Leverage (tier I capital to average assets), For Capital Adequacy Purposes, Amount | $ 21,206,909 | $ 19,418,765 | |
Common equity Tier 1 (to risk-weighted assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | |
Leverage (tier I capital to average assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Common equity Tier 1 (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 24,815,974 | $ 21,767,383 | |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 38,178,422 | 33,488,282 | |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 30,542,738 | 26,790,625 | |
Leverage (tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 26,508,636 | $ 24,273,457 | |
Common equity Tier 1 (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% | |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% | |
Leverage (tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% | |
Southwest Georgia Financial Corporation [Member] | |||
Common equity Tier 1 (to risk-weighted assets) Actual Amount | $ 45,802,434 | $ 42,756,979 | |
Total capital (to risk- weighted assets), Actual Amount | 49,231,303 | 45,800,611 | |
Tier I capital (to risk- weighted assets), Actual Amount | 45,802,434 | 42,756,979 | |
Leverage (tier I capital to average assets), Actual Amount | $ 45,802,434 | $ 42,756,979 | |
Common equity Tier 1 (to risk-weighted assets), Ratio | 11.97% | 12.74% | |
Total capital (to risk- weighted assets), Ratio | 12.87% | 13.65% | |
Tier I capital (to risk- weighted assets), Ratio | 11.97% | 12.74% | |
Leverage (tier I capital to average assets), Ratio | 8.62% | 8.79% | |
Common equity Tier 1 (to risk-weighted assets), For Capital Adequacy Purposes, Amount | $ 17,217,892 | $ 15,098,672 | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 30,609,586 | 26,842,084 | |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Amount | 22,957,189 | 20,131,563 | |
Leverage (tier I capital to average assets), For Capital Adequacy Purposes, Amount | $ 21,265,996 | $ 19,467,338 | |
Common equity Tier 1 (to risk-weighted assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
Total capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Tier I capital (to risk- weighted assets), For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | |
Leverage (tier I capital to average assets), For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Common equity Tier 1 (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | $ 0 | $ 0 |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | 0 | 0 |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | 0 | 0 |
Leverage (tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | $ 0 | $ 0 |
Common equity Tier 1 (to risk-weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | [1] | 0.00% | 0.00% |
Total capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | [1] | 0.00% | 0.00% |
Tier I capital (to risk- weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | [1] | 0.00% | 0.00% |
Leverage (tier I capital to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | [1] | 0.00% | 0.00% |
[1] | N/A - As of December 31, 2017, the Corporation met the definition under the Basel III Capital Rules of a small bank holding company and, therefore, was exempt from consolidated risk-based and leverage capital adequacy guidelines for bank holding companies. |
Parent Company Financial Data -
Parent Company Financial Data - Schedule of Balance Sheet Information of Parent Company (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Investment in consolidated wholly-owned bank subsidiary, at equity | $ 41,497,254 | |||
Other assets | 4,835,329 | $ 4,734,148 | ||
Total assets | 534,833,167 | 489,072,375 | $ 448,501,230 | |
Total liabilities | 491,214,223 | 447,929,389 | ||
Common stock, $1 par value, 5,000,000 shares authorized, 2,545,776 shares and 4,293,835 shares issued for 2018 & 2017 | 2,545,776 | 4,293,835 | ||
Retained earnings | 24,841,569 | 33,020,030 | ||
Accumulated other comprehensive loss | (2,187,396) | (1,629,619) | ||
Treasury stock, at cost, 0 for 2018 and 1,752,330 for 2017 | 0 | (26,242,793) | ||
Total stockholders' equity | 43,618,944 | 41,142,986 | 38,422,334 | $ 36,097,690 |
Total liabilities and stockholders' equity | 534,833,167 | 489,072,375 | ||
Southwest Georgia Financial Corporation [Member] | ||||
Cash | 776,000 | 1,694,000 | 940,000 | 1,919,000 |
Investment in consolidated wholly-owned bank subsidiary, at equity | 41,497,000 | 38,633,000 | ||
Loans | 640,000 | 105,000 | ||
Other assets | 708,000 | 711,000 | ||
Total assets | 43,621,000 | 41,143,000 | ||
Total liabilities | 2,000 | 0 | ||
Common stock, $1 par value, 5,000,000 shares authorized, 2,545,776 shares and 4,293,835 shares issued for 2018 & 2017 | 2,546,000 | 4,294,000 | ||
Additional paid-in capital | 18,419,000 | 31,701,000 | ||
Retained earnings | 24,841,000 | 33,020,000 | $ 30,334,000 | $ 27,370,000 |
Accumulated other comprehensive loss | (2,187,000) | (1,629,000) | ||
Treasury stock, at cost, 0 for 2018 and 1,752,330 for 2017 | 0 | (26,243,000) | ||
Total stockholders' equity | 43,619,000 | 41,143,000 | ||
Total liabilities and stockholders' equity | $ 43,621,000 | $ 41,143,000 |
Parent Company Financial Data_2
Parent Company Financial Data - Schedule of Balance Sheet Information of Parent Company (Details) (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,545,776 | 4,293,835 |
Treasury stock, at cost | $ 0 | $ 1,752,330 |
Southwest Georgia Financial Corporation [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,545,776 | 4,293,835 |
Treasury stock, at cost | $ 0 | $ 1,752,330 |
Parent Company Financial Data_3
Parent Company Financial Data - Schedule of Statements of Operations Information of Parent Company (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income before income taxes and equity in Undistributed income of bank subsidiary | $ 1,376,000 | $ 1,353,000 | $ 1,355,000 | $ 1,231,000 | $ 1,452,000 | $ 1,213,000 | $ 1,389,000 | $ 1,373,000 | |||
Income tax benefit - allocated from consolidated return | 253,000 | 209,000 | 207,000 | (1,000) | 735,000 | 261,000 | 316,000 | 308,000 | $ 668,416 | $ 1,619,900 | $ 1,152,476 |
Net income | 1,123,000 | $ 1,144,000 | $ 1,148,000 | 1,232,000 | 717,000 | $ 952,000 | $ 1,073,000 | 1,065,000 | 4,647,119 | 3,807,492 | 4,033,977 |
Retained earnings - beginning of year | 33,020,030 | 33,020,030 | |||||||||
Retirement of treasury stock | 26,242,793 | 0 | 0 | ||||||||
Retained earnings - end of year | 24,841,569 | 33,020,030 | 24,841,569 | 33,020,030 | |||||||
Southwest Georgia Financial Corporation [Member] | |||||||||||
Dividend received from bank subsidiary | 1,200,000 | 2,000,000 | 0 | ||||||||
Interest income | 45,000 | 26,000 | 23,000 | ||||||||
Total income | 1,245,000 | 2,026,000 | 23,000 | ||||||||
Other | 189,000 | 172,000 | 178,000 | ||||||||
Income before income taxes and equity in Undistributed income of bank subsidiary | 1,056,000 | 1,854,000 | (155,000) | ||||||||
Income tax benefit - allocated from consolidated return | 40,000 | 88,000 | 91,000 | ||||||||
Income before equity in undistributed income of subsidiary | 1,096,000 | 1,942,000 | (64,000) | ||||||||
Equity in undistributed income of subsidiary | 3,551,000 | 1,865,000 | 4,098,000 | ||||||||
Net income | 4,647,000 | 3,807,000 | 4,034,000 | ||||||||
Retained earnings - beginning of year | $ 33,020,000 | $ 30,334,000 | 33,020,000 | 30,334,000 | 27,370,000 | ||||||
Adjustment to correct immaterial misstatement of investment in bank subsidiary in prior periods | (129,000) | 0 | 0 | ||||||||
Cash dividend declared | (1,196,000) | (1,121,000) | (1,070,000) | ||||||||
Retirement of treasury stock | (11,501,000) | 0 | 0 | ||||||||
Retained earnings - end of year | $ 24,841,000 | $ 33,020,000 | $ 24,841,000 | $ 33,020,000 | $ 30,334,000 |
Parent Company Financial Data_4
Parent Company Financial Data - Schedule of Cash Flow Information of Parent Company (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 1,123,000 | $ 1,144,000 | $ 1,148,000 | $ 1,232,000 | $ 717,000 | $ 952,000 | $ 1,073,000 | $ 1,065,000 | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 |
Net cash provided (used) for operating activities | 6,560,776 | 5,882,947 | 5,181,703 | ||||||||
Net cash provided (used) for investing activities | (47,249,700) | (35,086,383) | (39,552,022) | ||||||||
Payment to repurchase common stock | 306,032 | 122,340 | 6,658 | ||||||||
Net cash used for financing activities | 42,049,295 | 36,821,941 | 29,809,962 | ||||||||
Increase (decrease) in cash | 1,360,371 | 7,618,505 | (4,560,357) | ||||||||
Southwest Georgia Financial Corporation [Member] | |||||||||||
Net income | 4,647,000 | 3,807,000 | 4,034,000 | ||||||||
Equity in undistributed earnings of Subsidiary | (3,551,000) | (1,865,000) | (4,098,000) | ||||||||
Changes in: Other assets | 21,000 | (25,000) | (16,000) | ||||||||
Changes in: Other liabilities | 2,000 | 0 | 0 | ||||||||
Net cash provided (used) for operating activities | 1,119,000 | 1,917,000 | (80,000) | ||||||||
Net change in loans | (535,000) | 80,000 | 178,000 | ||||||||
Net cash provided (used) for investing activities | (535,000) | 80,000 | 178,000 | ||||||||
Cash dividend paid to stockholders | (1,196,000) | (1,121,000) | (1,070,000) | ||||||||
Payment to repurchase common stock | (306,000) | (122,000) | (7,000) | ||||||||
Net cash used for financing activities | (1,502,000) | (1,243,000) | (1,077,000) | ||||||||
Increase (decrease) in cash | (918,000) | 754,000 | (979,000) | ||||||||
Cash - beginning of year | $ 1,694,000 | $ 940,000 | 1,694,000 | 940,000 | 1,919,000 | ||||||
Cash - end of year | $ 776,000 | $ 1,694,000 | $ 776,000 | $ 1,694,000 | $ 940,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 1,123,000 | $ 1,144,000 | $ 1,148,000 | $ 1,232,000 | $ 717,000 | $ 952,000 | $ 1,073,000 | $ 1,065,000 | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 |
Net income available to common shareholders | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 | ||||||||
Average number of common shares outstanding | 2,545,565 | 2,547,421 | 2,547,778 | ||||||||
Effect of dilutive restricted stock | $ 0 | $ 1 | $ 0 | ||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 2,545,565 | 2,547,422 | 2,547,778 | ||||||||
Earnings per share - basic | $ 0.44 | $ 0.45 | $ 0.45 | $ 0.48 | $ 0.28 | $ 0.37 | $ 0.42 | $ 0.42 | $ 1.83 | $ 1.49 | $ 1.58 |
Earnings per share - diluted | $ 0.44 | $ 0.45 | $ 0.45 | $ 0.48 | $ 0.28 | $ 0.37 | $ 0.42 | $ 0.42 | $ 1.83 | $ 1.49 | $ 1.58 |
Quarterly Data - Schedule of Qu
Quarterly Data - Schedule of Quarterly Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 5,900,000 | $ 5,640,000 | $ 5,292,000 | $ 5,062,000 | $ 5,018,000 | $ 4,859,000 | $ 4,767,000 | $ 4,502,000 | |||
Interest expense | 1,116,000 | 867,000 | 725,000 | 614,000 | 559,000 | 472,000 | 435,000 | 436,000 | $ 3,322,414 | $ 1,902,165 | $ 1,612,093 |
Net interest income | 4,784,000 | 4,773,000 | 4,567,000 | 4,448,000 | 4,459,000 | 4,387,000 | 4,332,000 | 4,066,000 | 18,571,758 | 17,244,149 | 15,801,015 |
Provision for loan losses | 226,000 | 249,000 | 140,000 | 215,000 | 75,000 | 75,000 | 75,000 | 75,000 | 829,500 | 300,000 | 160,000 |
Net interest income after provision for loan losses | 4,558,000 | 4,524,000 | 4,427,000 | 4,233,000 | 4,384,000 | 4,312,000 | 4,257,000 | 3,991,000 | 17,742,258 | 16,944,149 | 15,641,015 |
Noninterest income | 1,175,000 | 978,000 | 1,060,000 | 994,000 | 960,000 | 969,000 | 1,100,000 | 1,283,000 | 4,206,731 | 4,312,522 | 4,459,259 |
Noninterest expenses | 4,357,000 | 4,149,000 | 4,132,000 | 3,996,000 | 3,892,000 | 4,068,000 | 3,968,000 | 3,901,000 | 16,633,454 | 15,829,279 | 14,913,821 |
Income before income taxes | 1,376,000 | 1,353,000 | 1,355,000 | 1,231,000 | 1,452,000 | 1,213,000 | 1,389,000 | 1,373,000 | |||
Provision for income taxes | 253,000 | 209,000 | 207,000 | (1,000) | 735,000 | 261,000 | 316,000 | 308,000 | 668,416 | 1,619,900 | 1,152,476 |
Net income | $ 1,123,000 | $ 1,144,000 | $ 1,148,000 | $ 1,232,000 | $ 717,000 | $ 952,000 | $ 1,073,000 | $ 1,065,000 | $ 4,647,119 | $ 3,807,492 | $ 4,033,977 |
Basic | $ 0.44 | $ 0.45 | $ 0.45 | $ 0.48 | $ 0.28 | $ 0.37 | $ 0.42 | $ 0.42 | $ 1.83 | $ 1.49 | $ 1.58 |
Diluted | $ 0.44 | $ 0.45 | $ 0.45 | $ 0.48 | $ 0.28 | $ 0.37 | $ 0.42 | $ 0.42 | $ 1.83 | $ 1.49 | $ 1.58 |
Segment Reporting (Details Narr
Segment Reporting (Details Narrative) | 12 Months Ended |
Dec. 31, 2018Integer | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Percentage of revenues derives from single external customer | 10.00% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Interest Income (expense) external customers | $ 18,571,758 | $ 17,244,000 | $ 15,801,000 | ||||||||
Net intersegment interest income (expense) | 0 | 0 | 0 | ||||||||
Net Interest Income | $ 4,784,000 | $ 4,773,000 | $ 4,567,000 | $ 4,448,000 | $ 4,459,000 | $ 4,387,000 | $ 4,332,000 | $ 4,066,000 | 18,571,758 | 17,244,149 | 15,801,015 |
Provision for Loan Losses | 226,000 | 249,000 | 140,000 | 215,000 | 75,000 | 75,000 | 75,000 | 75,000 | 829,500 | 300,000 | 160,000 |
Noninterest Income (expense) external customers | 4,206,731 | 4,312,000 | 4,459,000 | ||||||||
Intersegment noninterest income (expense) | 0 | 0 | 0 | ||||||||
Total Noninterest Income | 1,175,000 | 978,000 | 1,060,000 | 994,000 | 960,000 | 969,000 | 1,100,000 | 1,283,000 | 4,206,731 | 4,312,522 | 4,459,259 |
Depreciation | 1,036,986 | 881,000 | 923,578 | ||||||||
Amortization of intangibles | 15,625 | 15,625 | 15,625 | ||||||||
Other Noninterest expenses | 3,319,751 | 3,074,843 | 2,763,227 | ||||||||
Total Noninterest expenses | 4,357,000 | 4,149,000 | 4,132,000 | 3,996,000 | 3,892,000 | 4,068,000 | 3,968,000 | 3,901,000 | 16,633,454 | 15,829,279 | 14,913,821 |
Pre-tax Income | 5,315 | 5,427,000 | 5,186,000 | ||||||||
Provision for Income Taxes | 253,000 | 209,000 | 207,000 | (1,000) | 735,000 | 261,000 | 316,000 | 308,000 | 668,416 | 1,619,900 | 1,152,476 |
Net Income | 1,123,000 | $ 1,144,000 | $ 1,148,000 | $ 1,232,000 | 717,000 | $ 952,000 | $ 1,073,000 | $ 1,065,000 | 4,647,119 | 3,807,492 | 4,033,977 |
Assets | 534,833,167 | 489,072,375 | 534,833,167 | 489,072,375 | 448,501,230 | ||||||
Expenditures for Fixed Assets | 3,388,000 | 1,955,000 | 1,455,000 | ||||||||
Retail and Commercial Banking [Member] | |||||||||||
Net Interest Income (expense) external customers | 16,334,000 | 15,119,000 | 13,837,000 | ||||||||
Net intersegment interest income (expense) | 1,818,000 | 1,817,000 | 1,671,000 | ||||||||
Net Interest Income | 18,152,000 | 16,936,000 | 15,508,000 | ||||||||
Provision for Loan Losses | 830,000 | 300,000 | 160,000 | ||||||||
Noninterest Income (expense) external customers | 1,765,000 | 2,099,000 | 2,316,000 | ||||||||
Intersegment noninterest income (expense) | (20,000) | (16,000) | (11,000) | ||||||||
Total Noninterest Income | 1,745,000 | 2,083,000 | 2,305,000 | ||||||||
Depreciation | 845,000 | 685,000 | 738,000 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 10,974,000 | 10,328,000 | 9,260,000 | ||||||||
Total Noninterest expenses | 11,819,000 | 11,013,000 | 9,998,000 | ||||||||
Pre-tax Income | 7,248,000 | 7,706,000 | 7,655,000 | ||||||||
Provision for Income Taxes | 1,184,000 | 1,784,000 | 1,794,000 | ||||||||
Net Income | 6,064,000 | 5,922,000 | 5,861,000 | ||||||||
Assets | 628,222,000 | 567,723,000 | 628,222,000 | 567,723,000 | 507,538,000 | ||||||
Expenditures for Fixed Assets | 3,321,000 | 1,888,000 | 1,409,000 | ||||||||
Insurance Services [Member] | |||||||||||
Net Interest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Net intersegment interest income (expense) | 20,000 | 16,000 | 11,000 | ||||||||
Net Interest Income | 20,000 | 16,000 | 11,000 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 1,604,000 | 1,525,000 | 1,477,000 | ||||||||
Intersegment noninterest income (expense) | 20,000 | 16,000 | 11,000 | ||||||||
Total Noninterest Income | 1,624,000 | 1,541,000 | 1,488,000 | ||||||||
Depreciation | 37,000 | 33,000 | 30,000 | ||||||||
Amortization of intangibles | 16,000 | 16,000 | 16,000 | ||||||||
Other Noninterest expenses | 1,158,000 | 1,119,000 | 1,184,000 | ||||||||
Total Noninterest expenses | 1,211,000 | 1,168,000 | 1,230,000 | ||||||||
Pre-tax Income | 433,000 | 389,000 | 269,000 | ||||||||
Provision for Income Taxes | 68,000 | 86,000 | 61,000 | ||||||||
Net Income | 365,000 | 303,000 | 208,000 | ||||||||
Assets | 1,971,000 | 1,687,000 | 1,971,000 | 1,687,000 | 1,414,000 | ||||||
Expenditures for Fixed Assets | 2,000 | 48,000 | 15,000 | ||||||||
Wealth Strategies [Member] | |||||||||||
Net Interest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Net intersegment interest income (expense) | (7,000) | (6,000) | (6,000) | ||||||||
Net Interest Income | (7,000) | (6,000) | (6,000) | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 665,000 | 612,000 | 584,000 | ||||||||
Intersegment noninterest income (expense) | 31,000 | 32,000 | 32,000 | ||||||||
Total Noninterest Income | 696,000 | 644,000 | 616,000 | ||||||||
Depreciation | 18,000 | 24,000 | 23,000 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 624,000 | 592,000 | 585,000 | ||||||||
Total Noninterest expenses | 642,000 | 616,000 | 608,000 | ||||||||
Pre-tax Income | 47,000 | 22,000 | 2,000 | ||||||||
Provision for Income Taxes | 3,000 | (2,000) | (7,000) | ||||||||
Net Income | 44,000 | 24,000 | 9,000 | ||||||||
Assets | 267,000 | 177,000 | 267,000 | 177,000 | 199,000 | ||||||
Expenditures for Fixed Assets | 8,000 | 2,000 | 11,000 | ||||||||
Financial Management [Member] | |||||||||||
Net Interest Income (expense) external customers | 2,193,000 | 2,099,000 | 1,940,000 | ||||||||
Net intersegment interest income (expense) | (1,831,000) | (1,827,000) | (1,676,000) | ||||||||
Net Interest Income | 362,000 | 272,000 | 264,000 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 259,000 | 75,000 | 80,000 | ||||||||
Intersegment noninterest income (expense) | 0 | 0 | 0 | ||||||||
Total Noninterest Income | 259,000 | 75,000 | 80,000 | ||||||||
Depreciation | 56,000 | 56,000 | 57,000 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 752,000 | 780,000 | 737,000 | ||||||||
Total Noninterest expenses | 808,000 | 836,000 | 794,000 | ||||||||
Pre-tax Income | (187,000) | (489,000) | (450,000) | ||||||||
Provision for Income Taxes | (210,000) | 306,000 | (107,000) | ||||||||
Net Income | 23,000 | (795,000) | (343,000) | ||||||||
Assets | 132,033,000 | 138,598,000 | 132,033,000 | 138,598,000 | 148,099,000 | ||||||
Expenditures for Fixed Assets | 57,000 | 17,000 | 20,000 | ||||||||
Inter-segment Elimination [Member] | |||||||||||
Net Interest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Net intersegment interest income (expense) | 0 | 0 | 0 | ||||||||
Net Interest Income | 0 | 0 | 0 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | 0 | 0 | 0 | ||||||||
Intersegment noninterest income (expense) | (31,000) | (32,000) | (32,000) | ||||||||
Total Noninterest Income | (31,000) | (32,000) | (32,000) | ||||||||
Depreciation | 0 | 0 | 0 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 0 | 0 | 0 | ||||||||
Total Noninterest expenses | 0 | 0 | 0 | ||||||||
Pre-tax Income | (31,000) | (32,000) | (32,000) | ||||||||
Provision for Income Taxes | 0 | 0 | 0 | ||||||||
Net Income | (31,000) | (32,000) | (32,000) | ||||||||
Assets | (229,108,000) | (219,840,000) | (229,108,000) | (219,840,000) | (209,619,000) | ||||||
Expenditures for Fixed Assets | 0 | 0 | 0 | ||||||||
Other [Member] | |||||||||||
Net Interest Income (expense) external customers | 45,000 | 26,000 | 24,000 | ||||||||
Net intersegment interest income (expense) | 0 | 0 | 0 | ||||||||
Net Interest Income | 45,000 | 26,000 | 24,000 | ||||||||
Provision for Loan Losses | 0 | 0 | 0 | ||||||||
Noninterest Income (expense) external customers | (86,000) | 1,000 | 2,000 | ||||||||
Intersegment noninterest income (expense) | 0 | 0 | 0 | ||||||||
Total Noninterest Income | (86,000) | 1,000 | 2,000 | ||||||||
Depreciation | 81,000 | 83,000 | 76,000 | ||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||
Other Noninterest expenses | 2,073,000 | 2,113,000 | 2,208,000 | ||||||||
Total Noninterest expenses | 2,154,000 | 2,196,000 | 2,284,000 | ||||||||
Pre-tax Income | (2,195,000) | (2,169,000) | (2,258,000) | ||||||||
Provision for Income Taxes | (377,000) | (554,000) | (589,000) | ||||||||
Net Income | (1,818,000) | (1,615,000) | (1,669,000) | ||||||||
Assets | $ 1,448,000 | $ 727,000 | 1,448,000 | 727,000 | 870,000 | ||||||
Expenditures for Fixed Assets | $ 0 | $ 0 | $ 0 |