Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Community Bancorp /VT | |
Entity Central Index Key | 718,413 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer | No | |
Is Entity a Voluntary Filer | No | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,086,739 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Assets | |||
Cash and due from banks | $ 21,659,982 | $ 10,943,344 | $ 20,573,382 |
Federal funds sold and overnight deposits | 15,365,739 | 18,670,942 | 3,760,906 |
Total cash and cash equivalents | 37,025,721 | 29,614,286 | 24,334,288 |
Securities held-to-maturity (HTM) (fair value $37,065,000 at 06/30/17, $51,035,000 at 12/31/16 and $34,682,000 at 06/30/16) | 36,418,414 | 49,886,631 | 34,013,002 |
Securities available-for-sale (AFS) | 35,634,716 | 33,715,051 | 28,079,675 |
Restricted equity securities, at cost | 1,942,550 | 2,755,850 | 2,610,050 |
Loans held-for-sale | 571,200 | 0 | 581,250 |
Loans | 502,772,845 | 487,249,226 | 471,567,355 |
Allowance for loan losses (ALL) | (5,374,378) | (5,278,445) | (5,077,420) |
Deferred net loan costs | 323,371 | 310,130 | 320,298 |
Net loans | 497,721,838 | 482,280,911 | 466,810,233 |
Bank premises and equipment, net | 10,555,451 | 10,830,556 | 10,996,815 |
Accrued interest receivable | 1,746,403 | 1,818,510 | 1,557,749 |
Bank owned life insurance (BOLI) | 4,673,739 | 4,625,406 | 4,572,871 |
Core deposit intangible | 136,341 | 272,691 | 409,036 |
Goodwill | 11,574,269 | 11,574,269 | 11,574,269 |
Other real estate owned (OREO) | 343,928 | 394,000 | 409,000 |
Other assets | 9,829,772 | 9,885,504 | 10,259,495 |
Total assets | 648,174,342 | 637,653,665 | 596,207,733 |
Deposits: | |||
Demand, non-interest bearing | 110,398,464 | 104,472,268 | 95,419,388 |
Interest-bearing transaction accounts | 116,869,761 | 118,053,360 | 106,925,038 |
Money market funds | 73,279,696 | 79,042,619 | 70,354,509 |
Savings | 97,929,768 | 86,776,856 | 86,733,253 |
Time deposits, $250,000 and over | 23,808,349 | 19,274,880 | 14,764,902 |
Other time deposits | 111,021,241 | 97,115,049 | 94,786,066 |
Total deposits | 533,307,279 | 504,735,032 | 468,983,156 |
Borrowed funds | 13,550,000 | 31,550,000 | 30,350,000 |
Repurchase agreements | 28,862,766 | 30,423,195 | 26,837,466 |
Capital lease obligations | 435,243 | 483,161 | 515,256 |
Junior subordinated debentures | 12,887,000 | 12,887,000 | 12,887,000 |
Accrued interest and other liabilities | 3,014,740 | 3,123,760 | 3,680,616 |
Total liabilities | 592,057,028 | 583,202,148 | 543,253,494 |
Shareholders' Equity | |||
Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value) | 2,500,000 | 2,500,000 | 2,500,000 |
Common stock - $2.50 par value; 15,000,000 shares authorized, 5,297,753 shares issued at 06/30/17, 5,269,053 shares issued at 12/31/16 and 5,236,891 shares issued at 06/30/16 | 13,244,383 | 13,172,633 | 13,092,228 |
Additional paid-in capital | 31,227,266 | 30,825,658 | 30,449,175 |
Retained earnings | 11,809,846 | 10,666,782 | 9,302,122 |
Accumulated other comprehensive (loss) income | (41,404) | (90,779) | 233,491 |
Less: treasury stock, at cost; 210,101 shares at 06/30/17, 12/31/16, and 06/30/16 | (2,622,777) | (2,622,777) | (2,622,777) |
Total shareholders' equity | 56,117,314 | 54,451,517 | 52,954,239 |
Total liabilities and shareholders' equity | $ 648,174,342 | $ 637,653,665 | $ 596,207,733 |
Book value per common share outstanding | $ 10.54 | $ 10.27 | $ 10.04 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Assets | |||
Securities held-to-maturity, fair value | $ 37,065,000 | $ 51,035,000 | $ 34,682,000 |
Shareholder's Equity | |||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 25 | 25 | 25 |
Preferred stock, shares outstanding (in shares) | 25 | 25 | 25 |
Preferred stock liquidation value | $ 100,000 | $ 100,000 | $ 100,000 |
Common stock par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 5,297,753 | 5,269,053 | 5,236,891 |
Treasury stock (in shares) | 210,101 | 210,101 | 210,101 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income | ||||
Interest and fees on loans | $ 5,875,766 | $ 5,478,997 | $ 11,492,633 | $ 10,849,421 |
Interest on debt securities | ||||
Taxable | 164,644 | 128,197 | 316,370 | 255,646 |
Tax-exempt | 336,197 | 322,150 | 660,729 | 602,247 |
Dividends | 40,864 | 29,334 | 76,660 | 58,713 |
Interest on federal funds sold and overnight deposits | 27,366 | 4,700 | 54,838 | 15,606 |
Total interest income | 6,444,837 | 5,963,378 | 12,601,230 | 11,781,633 |
Interest expense | ||||
Interest on deposits | 568,110 | 508,701 | 1,105,899 | 1,025,295 |
Interest on borrowed funds | 28,044 | 34,245 | 80,279 | 53,403 |
Interest on repurchase agreements | 22,235 | 19,314 | 43,762 | 37,305 |
Interest on junior subordinated debentures | 131,115 | 114,735 | 253,975 | 224,254 |
Total interest expense | 749,504 | 676,995 | 1,483,915 | 1,340,257 |
Net interest income | 5,695,333 | 5,286,383 | 11,117,315 | 10,441,376 |
Provision for loan losses | 150,000 | 150,000 | 300,000 | 250,000 |
Net interest income after provision for loan losses | 5,545,333 | 5,136,383 | 10,817,315 | 10,191,376 |
Non-interest income | ||||
Service fees | 772,238 | 655,540 | 1,520,355 | 1,273,219 |
Income from sold loans | 184,072 | 231,297 | 374,367 | 452,491 |
Other income from loans | 209,288 | 210,703 | 394,905 | 406,591 |
Net realized gain on sale of securities available-for-sale | 1,270 | 0 | 3,400 | 0 |
Other income | 214,863 | 221,159 | 458,922 | 424,249 |
Total non-interest income | 1,381,731 | 1,318,699 | 2,751,949 | 2,556,550 |
Non-interest expense | ||||
Salaries and wages | 1,703,751 | 1,725,000 | 3,414,875 | 3,450,000 |
Employee benefits | 692,418 | 685,082 | 1,333,979 | 1,370,164 |
Occupancy expenses, net | 661,294 | 606,358 | 1,348,727 | 1,252,104 |
Other expenses | 1,835,105 | 1,658,740 | 3,526,106 | 3,285,204 |
Total non-interest expense | 4,892,568 | 4,675,180 | 9,623,687 | 9,357,472 |
Income before income taxes | 2,034,496 | 1,779,902 | 3,945,577 | 3,390,454 |
Income tax expense | 534,983 | 484,703 | 1,031,848 | 925,761 |
Net income | $ 1,499,513 | $ 1,295,199 | $ 2,913,729 | $ 2,464,693 |
Earnings per common share | $ 0.29 | $ 0.25 | $ 0.57 | $ 0.48 |
Weighted average number of common shares used in computing earnings per share | 5,077,698 | 5,016,097 | 5,070,453 | 5,008,121 |
Dividends declared per common share | $ 0.17 | $ 0.16 | $ 0.34 | $ 0.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,499,513 | $ 1,295,199 | $ 2,913,729 | $ 2,464,693 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gain on available-for-sale securities arising during the period | 95,682 | 87,670 | 78,212 | 422,553 |
Reclassification adjustment for gain realized in income | (1,270) | 0 | (3,400) | 0 |
Unrealized gain during the year | 94,412 | 87,670 | 74,812 | 422,553 |
Tax effect | (32,100) | (29,808) | (25,437) | (143,668) |
Other comprehensive income, net of tax | 62,312 | 57,862 | 49,375 | 278,885 |
Total comprehensive income | $ 1,561,825 | $ 1,353,061 | $ 2,963,104 | $ 2,743,578 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 2,913,729 | $ 2,464,693 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, bank premises and equipment | 512,956 | 514,925 |
Provision for loan losses | 300,000 | 250,000 |
Deferred income tax | (216,506) | (182,039) |
Gain on sale of securities available-for-sale | (3,400) | 0 |
Gain on sale of loans | (159,123) | (212,500) |
Loss on sale of bank premises and equipment | 1,580 | 0 |
Loss on sale of OREO | 617 | 4,965 |
Income from Trust LLC | (198,514) | (183,581) |
Amortization of bond premium, net | 56,186 | 65,277 |
Write down of OREO | 0 | 26,000 |
Proceeds from sales of loans held for sale | 7,600,841 | 11,538,775 |
Originations of loans held for sale | (8,012,918) | (10,708,125) |
Increase in taxes payable | 539,738 | 164,820 |
Decrease in interest receivable | 72,107 | 75,464 |
Decrease in mortgage servicing rights | 59,454 | 28,931 |
Increase in other assets | (462,492) | (126,928) |
Increase in cash surrender value of BOLI | (48,333) | (52,385) |
Amortization of core deposit intangible | 136,350 | 136,350 |
Amortization of limited partnerships | 308,616 | 292,980 |
Increase in unamortized loan costs | (13,241) | (3,807) |
Increase in interest payable | 52,847 | 8,020 |
Decrease in accrued expenses | (108,774) | (49,844) |
(Decrease) increase in other liabilities | (68,688) | 4,964 |
Net cash provided by operating activities | 3,263,032 | 4,056,955 |
Cash Flows from Investing Activities: | ||
Investments - held-to-maturity Maturities and pay downs | 22,418,808 | 22,584,457 |
Purchases | (8,950,591) | (13,243,040) |
Investments - available-for-sale Maturities, calls, pay downs and sales | 2,324,014 | 3,954,848 |
Purchases | (4,221,653) | (5,206,847) |
Proceeds from redemption of restricted equity securities | 813,300 | 822,100 |
Purchases of restricted equity securities | 0 | (990,500) |
Decrease in limited partnership contributions payable | (27,000) | 0 |
Increase in loans, net | (16,101,325) | (14,070,392) |
Capital expenditures for bank premises and equipment | (239,431) | (51,533) |
Proceeds from sales of OREO | 383,117 | 217,143 |
Recoveries of loans charged off | 39,977 | 42,900 |
Net cash used in investing activities | (3,560,784) | (5,940,864) |
Cash Flows from Financing Activities: | ||
Net increase (decrease) in demand and interest-bearing transaction accounts | 4,742,597 | (21,916,430) |
Net increase (decrease) in money market and savings accounts | 5,389,989 | (6,574,416) |
Net increase in time deposits | 18,439,661 | 1,988,440 |
Net (decrease) increase in repurchase agreements | (1,560,429) | 4,764,228 |
Net (decrease) increase in short-term borrowings | (20,000,000) | 20,000,000 |
Proceeds from long-term borrowings | 2,000,000 | 350,000 |
Decrease in capital lease obligations | (47,918) | (43,109) |
Dividends paid on preferred stock | (48,438) | (43,750) |
Dividends paid on common stock | (1,206,275) | (1,158,656) |
Net cash provided by (used in) financing activities | 7,709,187 | (2,633,693) |
Net increase (decrease) in cash and cash equivalents | 7,411,435 | (4,517,602) |
Cash and cash equivalents: | ||
Beginning | 29,614,286 | 28,851,890 |
Ending | 37,025,721 | 24,334,288 |
Supplemental Schedule of Cash Paid During the Period: | ||
Interest | 1,431,068 | 1,332,237 |
Income taxes, net of refunds | 400,000 | 650,000 |
Supplemental Schedule of Noncash Investing and Financing Activities: | ||
Change in unrealized gain on securities available-for-sale | 74,812 | 422,553 |
Loans transferred to OREO | 333,662 | 395,108 |
Common Shares Dividends Paid: | ||
Dividends declared | 1,722,227 | 1,600,917 |
Increase in dividends payable attributable to dividends declared | (42,594) | (1,589) |
Dividends reinvested | (473,358) | (440,672) |
Total | $ 1,206,275 | $ 1,158,656 |
1. Basis of Presentation and Co
1. Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Note 1. Basis of Presentation and Consolidation | The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the consolidated financial condition and results of operations of the Company and its subsidiary, Community National Bank (the Bank), contained herein have been made. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full annual period ending December 31, 2017, or for any other interim period. Certain amounts in the 2016 unaudited consolidated income statements have been reclassified to conform to the 2017 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. |
2. Recent Accounting Developmen
2. Recent Accounting Developments | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Note 2. Recent Accounting Developments | In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments A modified version of these requirements also applies to debt securities classified as available for sale, which will require that credit losses on those securities be recorded through an allowance for credit losses rather than a write-down. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the impact In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company has goodwill from its acquisition of LyndonBank in 2007 and performs an impairment test annually or more frequently if circumstances warrant (see Note 6). The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements, but does not anticipate any material impact at this time. The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers FASB formed a Transition Resource Group to assist it in identifying implementation issues that may require further clarification or amendment to ASU No. 2014-09. As a result of that group’s deliberations, FASB has issued several amendments, which will be effective concurrently with ASU No. 2014-09, including ASU No. 2016-08, Principal versus Agent Considerations |
3. Earnings per Common Share
3. Earnings per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Note 3. Earnings per Common Share | Earnings per common share amounts are computed based on the weighted average number of shares of common stock issued during the period (retroactively adjusted for stock splits and stock dividends, if any), including Dividend Reinvestment Plan shares issuable upon reinvestment of dividends declared, and reduced for shares held in treasury. The following tables illustrate the calculation of earnings per common share for the periods presented, as adjusted for the cash dividends declared on the preferred stock: Three Months Ended June 30, 2017 2016 Net income, as reported $ 1,499,513 $ 1,295,199 Less: dividends to preferred shareholders 25,000 21,875 Net income available to common shareholders $ 1,474,513 $ 1,273,324 Weighted average number of common shares used in calculating earnings per share 5,077,698 5,016,097 Earnings per common share $ 0.29 $ 0.25 Six Months Ended June 30, 2017 2016 Net income, as reported $ 2,913,729 $ 2,464,693 Less: dividends to preferred shareholders 48,438 43,750 Net income available to common shareholders $ 2,865,291 $ 2,420,943 Weighted average number of common shares used in calculating earnings per share 5,070,453 5,008,121 Earnings per common share $ 0.57 $ 0.48 |
4. Investment Securities
4. Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities | |
Note 4. Investment Securities | Securities AFS and HTM as of the balance sheet dates consisted of the following: Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value June 30, 2017 U.S. Government sponsored enterprise (GSE) debt securities $ 18,356,415 $ 14,654 $ 57,881 $ 18,313,188 Agency mortgage-backed securities (Agency MBS) 13,128,034 23,950 73,365 13,078,619 Other investments 4,213,000 31,180 1,271 4,242,909 $ 35,697,449 $ 69,784 $ 132,517 $ 35,634,716 December 31, 2016 U.S. GSE debt securities $ 17,365,805 $ 24,854 $ 73,331 $ 17,317,328 Agency MBS 13,265,790 3,896 115,458 13,154,228 Other investments 3,221,000 24,947 2,452 3,243,495 $ 33,852,595 $ 53,697 $ 191,241 $ 33,715,051 June 30, 2016 U.S. GSE debt securities $ 11,752,750 $ 138,140 $ 0 $ 11,890,890 Agency MBS 13,000,152 166,905 15,410 13,151,647 Other investments 2,973,000 64,138 0 3,037,138 $ 27,725,902 $ 369,183 $ 15,410 $ 28,079,675 Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* June 30, 2017 States and political subdivisions $ 36,418,414 $ 646,586 $ 0 $ 37,065,000 December 31, 2016 States and political subdivisions $ 49,886,631 $ 1,148,369 $ 0 $ 51,035,000 June 30, 2016 States and political subdivisions $ 34,013,002 $ 668,998 $ 0 $ 34,682,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. Investments pledged as collateral for repurchase agreements consisted of U.S. GSE debt securities, Agency MBS securities and certificates of deposit (CDs). These repurchase agreements mature daily. These investments as of the balance sheet dates were as follows: Amortized Fair Cost Value June 30, 2017 $ 35,697,449 $ 35,634,716 December 31, 2016 33,604,595 33,469,254 June 30, 2016 27,725,902 28,079,675 The scheduled maturities of debt securities AFS as of the balance sheet dates were as follows: Amortized Fair Cost Value June 30, 2017 Due in one year or less $ 3,001,770 $ 3,001,473 Due from one to five years 17,322,645 17,326,400 Due from five to ten years 2,245,000 2,228,224 Agency MBS 13,128,034 13,078,619 $ 35,697,449 $ 35,634,716 December 31, 2016 Due in one year or less $ 2,006,027 $ 2,010,287 Due from one to five years 17,335,778 17,329,503 Due from five to ten years 1,245,000 1,221,033 Agency MBS 13,265,790 13,154,228 $ 33,852,595 $ 33,715,051 June 30, 2016 Due in one year or less $ 1,000,000 $ 1,003,413 Due from one to five years 12,480,750 12,674,932 Due from five to ten years 1,245,000 1,249,683 Agency MBS 13,000,152 13,151,647 $ 27,725,902 $ 28,079,675 Because the actual maturities of Agency MBS usually differ from their contractual maturities due to the right of borrowers to prepay the underlying mortgage loans, usually without penalty, those securities are not presented in the table by contractual maturity date. The scheduled maturities of debt securities HTM as of the balance sheet dates were as follows: Amortized Fair Cost Value* June 30, 2017 Due in one year or less $ 11,987,857 $ 11,988,000 Due from one to five years 3,987,322 4,149,000 Due from five to ten years 3,744,385 3,906,000 Due after ten years 16,698,850 17,022,000 $ 36,418,414 $ 37,065,000 December 31, 2016 Due in one year or less $ 25,368,725 $ 25,369,000 Due from one to five years 4,030,900 4,318,000 Due from five to ten years 4,013,242 4,300,000 Due after ten years 16,473,764 17,048,000 $ 49,886,631 $ 51,035,000 June 30, 2016 Due in one year or less $ 11,824,312 $ 11,824,000 Due from one to five years 4,152,445 4,320,000 Due from five to ten years 3,466,701 3,634,000 Due after ten years 14,569,544 14,904,000 $ 34,013,002 $ 34,682,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. There were no debt securities HTM in an unrealized loss position as of the balance sheet dates. Debt securities AFS with unrealized losses as of the balance sheet dates are presented in the table below. There were no debt securities with unrealized losses of 12 months or more as of the balance sheet dates presented. Less than 12 months Number of Fair Unrealized Securities Value Loss June 30, 2017 U.S. GSE debt securities 9 $ 10,724,642 $ 57,881 Agency MBS 13 8,751,252 73,365 Other investments 4 990,729 1,271 26 $ 20,466,623 $ 132,517 December 31, 2016 U.S. GSE debt securities 4 $ 5,176,669 $ 73,331 Agency MBS 15 10,704,717 115,458 Other investments 2 493,548 2,452 21 $ 16,374,934 $ 191,241 June 30, 2016 Agency MBS 3 $ 1,548,890 $ 15,410 The unrealized losses for all periods presented were principally attributable to changes in prevailing interest rates for similar types of securities and not deterioration in the creditworthiness of the issuer. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions, or adverse developments relating to the issuer, warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than the carrying value, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer's financial condition. As of June 30, 2017, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be other than temporary. |
5. Loans, Allowance for Loan Lo
5. Loans, Allowance for Loan Losses and Credit Quality | 6 Months Ended |
Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Note 5. Loans, Allowance for Loan Losses and Credit Quality | The composition of net loans as of the balance sheet dates was as follows: June 30, December 31, June 30, 2017 2016 2016 Commercial & industrial $ 79,361,739 $ 68,730,573 $ 72,878,438 Commercial real estate 209,886,793 201,728,280 185,950,674 Residential real estate - 1st lien 164,398,836 166,691,962 161,361,864 Residential real estate - Junior (Jr) lien 42,166,407 42,927,335 44,078,168 Consumer 6,959,070 7,171,076 7,298,211 Gross Loans 502,772,845 487,249,226 471,567,355 Deduct (add): Allowance for loan losses 5,374,378 5,278,445 5,077,420 Deferred net loan costs (323,371 ) (310,130 ) (320,298 ) Net Loans $ 497,721,838 $ 482,280,911 $ 466,810,233 The following is an age analysis of past due loans (including non-accrual) as of the balance sheet dates, by portfolio segment: 90 Days or 90 Days Total Non-Accrual More and June 30, 2017 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 121,737 $ 86,994 $ 208,731 $ 79,153,008 $ 79,361,739 $ 135,379 $ 0 Commercial real estate 2,398,960 228,621 2,627,581 207,259,212 209,886,793 728,093 15,011 Residential real estate - 1st lien 1,886,256 1,225,362 3,111,618 161,287,218 164,398,836 1,403,312 354,988 - Jr lien 252,557 237,483 490,040 41,676,367 42,166,407 398,862 71,614 Consumer 54,835 0 54,835 6,904,235 6,959,070 0 0 $ 4,714,345 $ 1,778,460 $ 6,492,805 $ 496,280,040 $ 502,772,845 $ 2,665,646 $ 441,613 90 Days or 90 Days Total Non-Accrual More and December 31, 2016 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 328,684 $ 26,042 $ 354,726 $ 68,375,847 $ 68,730,573 $ 143,128 $ 26,042 Commercial real estate 824,836 222,738 1,047,574 200,680,706 201,728,280 765,584 0 Residential real estate - 1st lien 4,881,496 1,723,688 6,605,184 160,086,778 166,691,962 1,227,220 1,068,083 - Jr lien 984,849 116,849 1,101,698 41,825,637 42,927,335 338,602 27,905 Consumer 53,972 2,176 56,148 7,114,928 7,171,076 0 2,176 $ 7,073,837 $ 2,091,493 $ 9,165,330 $ 478,083,896 $ 487,249,226 $ 2,474,534 $ 1,124,206 90 Days or 90 Days Total Non-Accrual More and June 30, 2016 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 62,073 $ 120,111 $ 182,184 $ 72,696,254 $ 72,878,438 $ 256,456 $ 120,111 Commercial real estate 793,208 432,638 1,225,846 184,724,828 185,950,674 966,071 406,451 Residential real estate - 1st lien 1,432,806 905,157 2,337,963 159,023,901 161,361,864 1,467,171 694,007 - Jr lien 212,319 0 212,319 43,865,849 44,078,168 377,911 0 Consumer 83,668 0 83,668 7,214,543 7,298,211 0 0 $ 2,584,074 $ 1,457,906 $ 4,041,980 $ 467,525,375 $ 471,567,355 $ 3,067,609 $ 1,220,569 For all loan segments, loans over 30 days past due are considered delinquent. As of the balance sheet dates presented, residential mortgage loans in process of foreclosure consisted of the following: Number of loans Balance June 30, 2017 7 $ 448,622 December 31, 2016 8 322,663 June 30, 2016 3 84,458 Allowance for loan losses The ALL is established through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. Unsecured loans, primarily consumer loans, are charged off when they become uncollectible and no later than 120 days past due. Unsecured loans to customers who subsequently file bankruptcy are charged off within 30 days of receipt of the notification of filing or by the end of the month in which the loans become 120 days past due, whichever occurs first. For secured loans, both residential and commercial, the potential loss on impaired loans is carried as a loan loss reserve specific allocation; the loss portion is charged off when collection of the full loan appears unlikely. The unsecured portion of a real estate loan is that portion of the loan exceeding the "fair value" of the collateral less the estimated cost to sell. Value of the collateral is determined in accordance with the Company’s appraisal policy. The unsecured portion of an impaired real estate secured loan is charged off by the end of the month in which the loan becomes 180 days past due. As described below, the allowance consists of general, specific and unallocated components. However, the entire allowance is available to absorb losses in the loan portfolio, regardless of specific, general and unallocated components considered in determining the amount of the allowance. General component The general component of the ALL is based on historical loss experience and various qualitative factors and is stratified by the following loan segments: commercial and industrial, commercial real estate, residential real estate 1st lien, residential real estate Jr lien and consumer loans. The Company does not disaggregate its portfolio segments further into classes. Loss ratios are calculated by loan segment for one year, two year, three year, four year and five year look back periods. Management uses an average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment in the current economic climate. During periods of economic stability, a relatively longer period (e.g., five years) may be appropriate. During periods of significant expansion or contraction, the Company may appropriately shorten the historical time period. The Company is currently using an extended look back period of five years. Qualitative factors include the levels of and trends in delinquencies and non-performing loans, levels of and trends in loan risk groups, trends in volumes and terms of loans, effects of any changes in loan related policies, experience, ability and the depth of management, documentation and credit data exception levels, national and local economic trends, external factors such as competition and regulation and lastly, concentrations of credit risk in a variety of areas, including portfolio product mix, the level of loans to individual borrowers and their related interests, loans to industry segments, and the geographic distribution of commercial real estate loans. This evaluation is inherently subjective as it requires estimates that are susceptible to revision as more information becomes available. The qualitative factors are determined based on the various risk characteristics of each loan segment. The Company has policies, procedures and internal controls that management believes are commensurate with the risk profile of each of these segments. Major risk characteristics relevant to each portfolio segment are as follows: Commercial & Industrial – Commercial Real Estate – Residential Real Estate – 1st Lien – Residential Real Estate – Jr Lien – Consumer – Specific component The specific component of the ALL relates to loans that are impaired. Impaired loans include all troubled debt restructurings (TDR) and loans to a borrower that in the aggregate are greater than $100,000 and that are in non-accrual status. A specific allowance is established for an impaired loan when its estimated impaired basis is less than the total recorded investment in the loan. For all loan segments, except consumer loans, a loan is considered impaired when, based on current information and events, in management’s estimation it is probable that the Company 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 probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant or temporary payment delays and payment shortfalls generally are not classified as impaired. Management evaluates 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 and frequency 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, 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. A TDR occurs when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would otherwise not be granted. TDRs may include the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan’s terms, or a combination of the two. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment evaluation, unless such loans are subject to a restructuring agreement. Unallocated component An unallocated component of the ALL is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component reflects management’s estimate of the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. ALL methodology changes implemented as of June 30, 2017 During the second quarter of 2017, the Company transitioned to a software solution for preparing the ALL calculation and related reports, replacing previously used Excel spreadsheets. The software solution provides the Company with stronger data integrity, ease and efficiency in ALL preparation, and helps ready the Company for the future transition to the CECL model. During the implementation and testing of the software, several changes to the underlying ALL methodology were made. Those changes included (i) removing the government guaranteed balances from the calculation of the ALL for both the pooled loans and impaired loans, (ii) treating all TDRs as impaired regardless of size, and (iii) using a fixed look back period for historical losses based on loss history and economic conditions versus applying the highest look back period of the last 5 years. The Company has a solid history of collection of government guarantees. The impact of not reserving for government guaranteed balances reduced required reserves by approximately $207,000. The change to the historical loss methodology saw required reserves fall by approximately $151,000. Management expects this change will eliminate sharp increases or decreases in loss ratios brought on by isolated losses rolling into or out of the look back period and is more reflective of the Company’s loss history during a period of economic stability. The inclusion of all TDRs in the impaired calculation required the individual analysis of fifty-seven loans versus eleven loans, with nineteen of the additional loans requiring specific reserves ranging from $400 to $30,000, increasing required reserves by approximately $111,000. Loans individually evaluated for impairment under the new method, that would not have been individually evaluated under the old method, amount to $4,493,655 at June 30, 2017. The ability to individually analyze a greater number of loans is facilitated by the new software. The net impact of the foregoing methodology changes reduced required reserves by approximately $247,000 for the quarter ended June 30, 2017. The second quarter required reserves increased by $29,396. The general component of the ALL associated with strong loan growth accounted for approximately $165,000 in required reserves, while increases in qualitative factors for delinquency/non-accrual and criticized and classified loan levels for the commercial real estate and residential real estate portfolios accounted for an increase of $110,000. These increases were largely offset by the one-time adjustment to reflect the methodology changes noted above. The tables below summarize changes in the ALL and select loan information, by portfolio segment, for the periods indicated. As of or for the three months ended June 30, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 719,773 $ 2,521,121 $ 1,312,795 $ 370,454 $ 61,322 $ 272,975 $ 5,258,440 Charge-offs 0 0 0 (15,311 ) (37,326 ) 0 (52,637 ) Recoveries 1,422 230 3,981 60 12,882 0 18,575 Provision (credit) (25,532 ) 8,864 46,548 19,161 14,417 86,542 150,000 Ending balance $ 695,663 $ 2,530,215 $ 1,363,324 $ 374,364 $ 51,295 $ 359,517 $ 5,374,378 As of or for the six months ended June 30, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Charge-offs 0 (160,207 ) (4,735 ) (15,311 ) (63,791 ) 0 (244,044 ) Recoveries 4,318 230 10,217 120 25,092 0 39,977 Provision (credit) (35,503 ) 194,107 (11,915 ) 18,379 6,021 128,911 300,000 Ending balance $ 695,663 $ 2,530,215 $ 1,363,324 $ 374,364 $ 51,295 $ 359,517 $ 5,374,378 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 74,249 $ 154,760 $ 126,053 $ 0 $ 0 $ 355,062 Collectively 695,663 2,455,966 1,208,564 248,311 51,295 359,517 5,019,316 $ 695,663 $ 2,530,215 $ 1,363,324 $ 374,364 $ 51,295 $ 359,517 $ 5,374,378 Loans evaluated for impairment Individually $ 135,379 $ 1,968,144 $ 3,577,837 $ 419,550 $ 0 $ 6,100,910 Collectively 79,226,360 207,918,649 160,820,999 41,746,857 6,959,070 496,671,935 $ 79,361,739 $ 209,886,793 $ 164,398,836 $ 42,166,407 $ 6,959,070 $ 502,772,845 As of or for the year ended December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (49,009 ) 0 (244,149 ) 0 (15,404 ) 0 (308,562 ) Recoveries 36,032 0 23,712 240 15,145 0 75,129 Provision (credit) 26,923 343,407 222,166 (51,886 ) 8,543 (49,153 ) 500,000 Ending balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 86,400 $ 6,200 $ 114,800 $ 0 $ 0 $ 207,400 Collectively 726,848 2,409,685 1,363,557 256,376 83,973 230,606 5,071,045 $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Loans evaluated for impairment Individually $ 48,385 $ 687,495 $ 946,809 $ 224,053 $ 0 $ 1,906,742 Collectively 68,682,188 201,040,785 165,745,153 42,703,282 7,171,076 485,342,484 $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of or for the three months ended June 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 730,375 $ 2,295,303 $ 1,338,927 $ 423,025 $ 58,456 $ 263,402 $ 5,109,488 Charge-offs 0 0 (192,237 ) 0 (7,298 ) 0 (199,535 ) Recoveries 1,180 0 5,374 60 10,853 0 17,467 Provision (credit) 93,687 21,663 142,208 (9,003 ) 18,549 (117,104 ) 150,000 Ending balance $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 As of or for the six months ended June 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (10,836 ) 0 (192,549 ) 0 (23,973 ) 0 (227,358 ) Recoveries 20,475 0 5,686 120 16,619 0 42,900 Provision (credit) 102,701 164,288 113,107 (8,860 ) 12,225 (133,461 ) 250,000 Ending balance $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 59,900 $ 121,500 $ 0 $ 0 $ 181,400 Collectively 825,242 2,316,966 1,234,372 292,582 80,560 146,298 4,896,020 $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 Loans evaluated for impairment Individually $ 191,919 $ 895,626 $ 1,990,686 $ 373,028 $ 0 $ 3,451,259 Collectively 72,686,519 185,055,048 159,371,178 43,705,140 7,298,211 468,116,096 $ 72,878,438 $ 185,950,674 $ 161,361,864 $ 44,078,168 $ 7,298,211 $ 471,567,355 Impaired loans, by portfolio segment, were as follows: As of June 30, 2017 Unpaid Average Average Interest Recorded Principal Related Recorded Recorded Income Investment Balance Allowance Investment (1) Investment (2) Recognized (2) Related allowance recorded Commercial real estate $ 210,499 $ 228,074 $ 74,249 $ 212,451 $ 215,053 $ 0 Residential real estate - 1st lien 1,038,752 1,074,246 154,760 545,895 454,686 15,720 Residential real estate - Jr lien 283,626 348,416 126,053 252,853 243,253 1,301 1,532,877 1,650,736 355,062 1,011,199 912,992 17,021 No related allowance recorded Commercial & industrial 135,379 218,023 91,882 77,383 0 Commercial real estate 1,763,013 2,324,546 1,109,536 895,437 32,923 Residential real estate - 1st lien 2,556,076 2,802,565 1,484,683 1,214,864 57,116 Residential real estate - Jr lien 136,821 136,821 136,821 91,214 0 4,591,289 5,481,955 2,822,922 2,278,898 90,039 $ 6,124,166 $ 7,132,691 $ 355,062 $ 3,834,121 $ 3,191,890 $ 107,060 (1) For the three months ended June 30, 2017 (2) For the six months ended June 30, 2017 As of December 31, 2016 2016 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment Related allowance recorded Commercial real estate $ 220,257 $ 232,073 $ 86,400 $ 89,664 Residential real estate - 1st lien 271,962 275,118 6,200 350,709 Residential real estate - Jr lien 224,053 284,342 114,800 241,965 716,272 791,533 207,400 682,338 No related allowance recorded Commercial & industrial 48,385 62,498 183,925 Commercial real estate 467,238 521,991 1,059,542 Residential real estate - 1st lien 674,847 893,741 877,237 Residential real estate - Jr lien 0 0 15,888 1,190,470 1,478,230 2,136,592 $ 1,906,742 $ 2,269,763 $ 207,400 $ 2,818,930 As of June 30, 2016 Unpaid Average Average Recorded Principal Related Recorded Recorded Investment Balance Allowance Investment(1) Investment(2) Related allowance recorded Residential real estate - 1st lien $ 871,603 $ 1,027,861 $ 59,900 $ 435,802 $ 209,078 Residential real estate - Jr lien 293,587 348,757 121,500 262,589 151,836 1,165,190 1,376,618 181,400 698,391 360,914 No related allowance recorded Commercial & industrial 191,919 263,839 198,137 136,542 Commercial real estate 895,626 953,181 901,468 870,937 Residential real estate - 1st lien 1,119,083 1,319,907 918,378 616,555 Residential real estate - Jr lien 79,441 87,675 39,721 15,888 2,286,069 2,624,602 2,057,704 1,639,922 $ 3,451,259 $ 4,001,220 $ 181,400 $ 2,756,095 $ 2,000,836 (1) For the three months ended June 30, 2016 (2) For the six months ended June 30, 2016 Interest income recognized on impaired loans was immaterial for the December 31, 2016 and June 30, 2016 periods presented. For all loan segments, the accrual of interest is discontinued when a loan is specifically determined to be impaired or when the loan is delinquent 90 days and management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is considered by management to be doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is generally not recognized on specific impaired loans unless the likelihood of further loss is considered by management to be remote. Interest payments received on impaired loans are generally applied as a reduction of the loan principal balance. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are considered by management to be reasonably assured. Credit Quality Grouping In developing the ALL, management uses credit quality grouping to help evaluate trends in credit quality. The Company groups credit risk into Groups A, B and C. The manner the Company utilizes to assign risk grouping is driven by loan purpose. Commercial purpose loans are individually risk graded while the retail portion of the portfolio is generally grouped by delinquency pool. Group A loans - Acceptable Risk Group B loans – Management Involved Group C loans – Unacceptable Risk Commercial purpose loan ratings are assigned by the commercial account officer; for larger and more complex commercial loans, the credit rating is a collaborative assignment by the lender and the credit analyst. The credit risk rating is based on the borrower's expected performance, i.e., the likelihood that the borrower will be able to service its obligations in accordance with the loan terms. Credit risk ratings are meant to measure risk versus simply record history. Assessment of expected future payment performance requires consideration of numerous factors. While past performance is part of the overall evaluation, expected performance is based on an analysis of the borrower's financial strength, and historical and projected factors such as size and financing alternatives, capacity and cash flow, balance sheet and income statement trends, the quality and timeliness of financial reporting, and the quality of the borrower’s management. Other factors influencing the credit risk rating to a lesser degree include collateral coverage and control, guarantor strength and commitment, documentation, structure and covenants and industry conditions. There are uncertainties inherent in this process. Credit risk ratings are dynamic and require updating whenever relevant information is received. The risk ratings of larger or more complex loans, and Group B and C rated loans, are assessed at the time of their respective annual reviews, during quarterly updates, in action plans or at any other time that relevant information warrants update. Lenders are required to make immediate disclosure to the Chief Credit Officer of any known increase in loan risk, even if considered temporary in nature. The risk ratings within the loan portfolio, by segment, as of the balance sheet dates were as follows: As of June 30, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 75,971,101 $ 199,768,226 $ 162,224,767 $ 41,503,823 $ 6,959,070 $ 486,426,987 Group B 520,555 1,169,093 0 162,321 0 1,851,969 Group C 2,870,083 8,949,474 2,174,069 500,263 0 14,493,889 $ 79,361,739 $ 209,886,793 $ 164,398,836 $ 42,166,407 $ 6,959,070 $ 502,772,845 As of December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 67,297,983 $ 191,755,393 $ 164,708,778 $ 42,289,062 $ 7,168,901 $ 473,220,117 Group B 512,329 2,971,364 0 169,054 0 3,652,747 Group C 920,261 7,001,523 1,983,184 469,219 2,175 10,376,362 $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of June 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 70,175,375 $ 173,220,709 $ 158,425,776 $ 43,400,606 $ 7,298,211 $ 452,520,677 Group B 1,764,165 4,318,817 587,586 156,846 0 6,827,414 Group C 938,898 8,411,148 2,348,502 520,716 0 12,219,264 $ 72,878,438 $ 185,950,674 $ 161,361,864 $ 44,078,168 $ 7,298,211 $ 471,567,355 Modifications of Loans and TDRs A loan is classified as a TDR if, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. The Company is deemed to have granted such a concession if it has modified a troubled loan in any of the following ways: ● Reduced accrued interest; ● Reduced the original contractual interest rate to a rate that is below the current market rate for the borrower; ● Converted a variable-rate loan to a fixed-rate loan; ● Extended the term of the loan beyond an insignificant delay; ● Deferred or forgiven principal in an amount greater than three months of payments; or ● Performed a refinancing and deferred or forgiven principal on the original loan. An insignificant delay or insignificant shortfall in the amount of payments typically would not require the loan to be accounted for as a TDR. However, pursuant to regulatory guidance, any payment delay longer than three months is generally not considered insignificant. Management’s assessment of whether a concession has been granted also takes into account payments expected to be received from third parties, including third-party guarantors, provided that the third party has the ability to perform on the guarantee. The Company’s TDRs are principally a result of extending loan repayment terms to relieve cash flow difficulties. The Company has only, on a limited basis, reduced interest rates for borrowers below the current market rate for the borrower. The Company has not forgiven principal or reduced accrued interest within the terms of original restructurings, nor has it converted variable rate terms to fixed rate terms. However, the Company evaluates each TDR situation on its own merits and does not foreclose the granting of any particular type of concession. There were no new TDRs for the three months ended June 30, 2017. New TDRs, by portfolio segment, during the periods presented were as follows: Six months ended June 30, 2017 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 1 $41,857 $57,418 Year ended December 31, 2016 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate - 1st lien 8 $ 572,418 $ 598,030 Residential real estate - Jr lien 2 62,819 64,977 10 $ 635,237 $ 663,007 Three months ended June 30, 2016 Six months ended June 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Residential real estate - 1st lien 0 $ 0 $ 0 5 $ 395,236 $ 412,923 - Jr lien 1 52,558 54,637 2 62,819 64,977 1 $ 52,558 $ 54,637 7 $ 458,055 $ 477,900 The TDR’s for which there was a payment default during the twelve month periods presented were as follows: Twelve months ended June 30, 2017 Number of Recorded Contracts Investment Residential real estate – 1st lien 2 $ 80,485 Twelve months ended December 31, 2016 Number of Recorded Contracts Investment Residential real estate - 1st lien 2 $ 93,230 Residential real estate - Jr lien 1 54,557 3 $ 147,787 Twelve months ended June 30, 2016 Number of Recorded Contracts Investment Commercial & industrial 1 $ 71,808 Commercial real estate 2 373,767 Residential real estate - 1st lien 1 58,792 4 $ 504,367 TDRs are treated as other impaired loans and carry individual specific reserves with respect to the calculation of the ALL. These loans are categorized as non-performing, may be past due, and are generally adversely risk rated. The TDRs that have defaulted under their restructured terms are generally in collection status and their reserve is typically calculated using the fair value of collateral method. The specific allowances related to TDRs as of the balance sheet dates are presented in the table below. June 30, December 31, June 30, 2017 2016 2016 Specific Allocation $ 237,551 $ 92,600 $ 68,500 As of the balance sheet dates, the Company evaluates whether it is contractually committed to lend additional funds to debtors with impaired, non-accrual or modified loans. The Company is contractually committed to lend on one Small Business Administration guaranteed line of credit to a borrower whose lending relationship was previously restructured. |
6. Goodwill and Other Intangibl
6. Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Note 6. Goodwill and Other Intangible Assets | As a result of a merger with LyndonBank on December 31, 2007, the Company recorded goodwill amounting to $11,574,269. The goodwill is not amortizable and is not deductible for tax purposes. The Company also initially recorded $4,161,000 of acquired identified intangible assets in the LyndonBank merger, representing the core deposit intangible which is subject to amortization as a non-interest expense over a ten year period. The accumulated amortization expense was $4,024,659 and $3,751,964 as of June 30, 2017 and 2016, respectively. Amortization expense for the core deposit intangible for the first six months of 2017 and 2016 was $136,350. The future amortization expense related to the remaining core deposit intangible is $136,341 and will be fully expensed in 2017. Management evaluates goodwill for impairment annually and the core deposit intangible for impairment if conditions warrant. As of the date of the most recent evaluation (December 31, 2016), management concluded that no impairment existed in either category. |
7. Fair Value
7. Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Note 7. Fair Value | Certain assets and liabilities are recorded at fair value to provide additional insight into the Company’s quality of earnings. The fair values of some of these assets and liabilities are measured on a recurring basis while others are measured on a non-recurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available-for-sale are recorded at fair value on a recurring basis. Other assets, such as MSRs, loans held-for-sale, impaired loans, and OREO are recorded at fair value on a non-recurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded 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. The level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasury, other U.S. Government debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes MSRs, impaired loans and OREO. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following methods and assumptions were used by the Company in estimating its fair value measurements and disclosures: Cash and cash equivalents: Securities AFS and HTM: Restricted equity securities: Loans and loans held-for-sale: The fair value of loans held-for-sale is based upon an actual purchase and sale agreement between the Company and an independent market participant. The sale is executed within a reasonable period following quarter end at the stated fair value. MSRs: OREO: Deposits, repurchase agreements and borrowed funds: Capital lease obligations: Junior subordinated debentures: Accrued interest: Off-balance-sheet credit related instruments: FASB Accounting Standards Codification (ASC) Topic 825 “Financial Instruments”, requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, if the fair values can be reasonably determined. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: June 30, 2017 Level 2 Assets: (market approach) U.S. GSE debt securities $ 18,313,188 Agency MBS 13,078,619 Other investments 4,242,909 $ 35,634,716 December 31, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,317,328 Agency MBS 13,154,228 Other investments 3,243,495 $ 33,715,051 June 30, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 11,890,890 Agency MBS 13,151,647 Other investments 3,037,138 $ 28,079,675 There were no Level 1 or Level 3 assets or liabilities measured on a recurring basis as of the balance sheet dates presented. Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The following table includes assets measured at fair value on a non-recurring basis that have had a fair value adjustment since their initial recognition. Impaired loans measured at fair value only include impaired loans with a related specific ALL and are presented net of specific allowances as disclosed in Note 5. Assets measured at fair value on a non-recurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: June 30, 2017 Level 2 Assets: (market approach) MSRs (1) $ 1,151,241 Impaired loans, net of related allowance 25,050 OREO 343,928 December 31, 2016 Level 2 Assets: (market approach) MSRs (1) $ 1,210,695 Impaired loans, net of related allowance 508,872 OREO 394,000 June 30, 2016 Level 2 Assets: (market approach) MSRs (1) $ 1,264,148 Impaired loans, net of related allowance 983,790 OREO 409,000 (1) Represents MSRs at lower of cost or fair value, including MSRs deemed to be impaired and for which a valuation allowance was established to carry at fair value as of the balance sheet dates presented. There were no Level 1 or Level 3 assets or liabilities measured on a non-recurring basis as of the balance sheet dates presented. The estimated fair values of commitments to extend credit and letters of credit were immaterial as of the dates presented in the tables below. The estimated fair values of the Company's financial instruments were as follows: June 30, 2017 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 37,026 $ 37,026 $ 0 $ 0 $ 37,026 Securities held-to-maturity 36,418 0 37,065 0 37,065 Securities available-for-sale 35,635 0 35,635 0 35,635 Restricted equity securities 1,943 0 1,943 0 1,943 Loans and loans held-for-sale Commercial & industrial 78,609 0 0 79,311 79,311 Commercial real estate 207,207 0 0 208,632 208,632 Residential real estate - 1st lien 163,489 0 25 166,085 166,110 Residential real estate - Jr lien 41,762 0 0 42,199 42,199 Consumer 6,903 0 0 7,147 7,147 MSRs (1) 1,151 0 1,341 0 1,341 Accrued interest receivable 1,746 0 1,746 0 1,746 Financial liabilities: Deposits Other deposits 479,131 0 478,412 0 478,412 Brokered deposits 54,176 0 54,177 0 54,177 Short-term borrowings 10,000 0 10,000 0 10,000 Long-term borrowings 3,550 0 3,205 0 3,205 Repurchase agreements 28,863 0 28,863 0 28,863 Capital lease obligations 435 0 435 0 435 Subordinated debentures 12,887 0 12,844 0 12,844 Accrued interest payable 125 0 125 0 125 (1) Reported fair value represents all MSRs for loans serviced by the Company at June 30, 2017, regardless of carrying amount. December 31, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 29,614 $ 29,614 $ 0 $ 0 $ 29,614 Securities held-to-maturity 49,887 0 51,035 0 51,035 Securities available-for-sale 33,715 0 33,715 0 33,715 Restricted equity securities 2,756 0 2,756 0 2,756 Loans and loans held-for-sale Commercial & industrial 67,972 0 48 68,727 68,775 Commercial real estate 199,136 0 601 201,560 202,161 Residential real estate - 1st lien 165,243 0 941 166,858 167,799 Residential real estate - Jr lien 42,536 0 109 42,948 43,057 Consumer 7,084 0 0 7,371 7,371 MSRs(1) 1,211 0 1,302 0 1,302 Accrued interest receivable 1,819 0 1,819 0 1,819 Financial liabilities: Deposits Other deposits 470,002 0 469,323 0 469,323 Brokered deposits 34,733 0 34,745 0 34,745 Short-term borrowings 30,000 0 30,000 0 30,000 Long-term borrowings 1,550 0 1,376 0 1,376 Repurchase agreements 30,423 0 30,423 0 30,423 Capital lease obligations 483 0 483 0 483 Subordinated debentures 12,887 0 12,849 0 12,849 Accrued interest payable 73 0 73 0 73 (1) Reported fair value represents all MSRs for loans serviced by the Company at December 31, 2016, regardless of carrying amount. June 30, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 24,334 $ 24,334 $ 0 $ 0 $ 24,334 Securities held-to-maturity 34,013 0 34,682 0 34,682 Securities available-for-sale 28,080 0 28,080 0 28,080 Restricted equity securities 2,610 0 2,610 0 2,610 Loans and loans held-for-sale Commercial & industrial 72,030 0 192 73,096 73,288 Commercial real estate 183,577 0 896 188,112 189,008 Residential real estate - 1st lien 160,599 0 1,931 162,930 164,861 Residential real estate - Jr lien 43,650 0 252 44,080 44,332 Consumer 7,215 0 0 7,533 7,533 Mortgage servicing rights 1,264 0 1,333 0 1,333 Accrued interest receivable 1,558 0 1,558 0 1,558 Financial liabilities: Deposits Other deposits 448,752 0 449,061 0 449,061 Brokered deposits 20,231 0 20,237 0 20,237 Short-term borrowings 30,000 0 30,000 0 30,000 Long-term borrowings 350 0 328 0 328 Repurchase agreements 26,837 0 26,837 0 26,837 Capital lease obligations 515 0 515 0 515 Subordinated debentures 12,887 0 12,853 0 12,853 Accrued interest payable 61 0 61 0 61 (1) Reported fair value represents all MSRs for loans serviced by the Company at June 30, 2016, regardless of carrying amount. |
8. Loan Servicing
8. Loan Servicing | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Note 8. Loan Servicing | The following table shows the changes in the carrying amount of the mortgage servicing rights, included in other assets in the consolidated balance sheets, for the periods indicated: Six Months Ended Year Ended Six Months Ended June 30, 2017 December 31, 2016 June 30, 2016 Balance at beginning of year $ 1,210,695 $ 1,293,079 $ 1,293,079 Mortgage servicing rights capitalized 54,603 176,705 98,054 Mortgage servicing rights amortized (114,057 ) (266,603 ) (134,499 ) Change in valuation allowance 0 7,514 7,514 Balance at end of period $ 1,151,241 $ 1,210,695 $ 1,264,148 |
9. Legal Proceedings
9. Legal Proceedings | 6 Months Ended |
Jun. 30, 2017 | |
Legal Proceedings | |
Note 9. Legal Proceedings | In the normal course of business, the Company and its subsidiary are involved in litigation that is considered incidental to their business. Management does not expect that any such litigation will be material to the Company's consolidated financial condition or results of operations. |
10. Subsequent Event
10. Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Note 10. Subsequent Event | The Company has evaluated events and transactions through the date that the financial statements were issued for potential recognition or disclosure in these financial statements, as required by US GAAP. On June 15, 2017, the Company declared a cash dividend of $0.17 per common share payable August 1, 2017 to shareholders of record as of July 15, 2017. This dividend, amounting to $862,376, was accrued at June 30, 2017. |
1. Basis of Presentation and 17
1. Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the consolidated financial condition and results of operations of the Company and its subsidiary, Community National Bank (the Bank), contained herein have been made. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full annual period ending December 31, 2017, or for any other interim period. Certain amounts in the 2016 unaudited consolidated income statements have been reclassified to conform to the 2017 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. |
Recent Accounting Developments | In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments A modified version of these requirements also applies to debt securities classified as available for sale, which will require that credit losses on those securities be recorded through an allowance for credit losses rather than a write-down. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the impact In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company has goodwill from its acquisition of LyndonBank in 2007 and performs an impairment test annually or more frequently if circumstances warrant (see Note 6). The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements, but does not anticipate any material impact at this time. The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers FASB formed a Transition Resource Group to assist it in identifying implementation issues that may require further clarification or amendment to ASU No. 2014-09. As a result of that group’s deliberations, FASB has issued several amendments, which will be effective concurrently with ASU No. 2014-09, including ASU No. 2016-08, Principal versus Agent Considerations |
3. Earnings per Common Share (T
3. Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share | Three Months Ended June 30, 2017 2016 Net income, as reported $ 1,499,513 $ 1,295,199 Less: dividends to preferred shareholders 25,000 21,875 Net income available to common shareholders $ 1,474,513 $ 1,273,324 Weighted average number of common shares used in calculating earnings per share 5,077,698 5,016,097 Earnings per common share $ 0.29 $ 0.25 Six Months Ended June 30, 2017 2016 Net income, as reported $ 2,913,729 $ 2,464,693 Less: dividends to preferred shareholders 48,438 43,750 Net income available to common shareholders $ 2,865,291 $ 2,420,943 Weighted average number of common shares used in calculating earnings per share 5,070,453 5,008,121 Earnings per common share $ 0.57 $ 0.48 |
4. Investment Securities (Table
4. Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities | |
Schedule Of Available For Sale Securities | Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value June 30, 2017 U.S. Government sponsored enterprise (GSE) debt securities $ 18,356,415 $ 14,654 $ 57,881 $ 18,313,188 Agency mortgage-backed securities (Agency MBS) 13,128,034 23,950 73,365 13,078,619 Other investments 4,213,000 31,180 1,271 4,242,909 $ 35,697,449 $ 69,784 $ 132,517 $ 35,634,716 December 31, 2016 U.S. GSE debt securities $ 17,365,805 $ 24,854 $ 73,331 $ 17,317,328 Agency MBS 13,265,790 3,896 115,458 13,154,228 Other investments 3,221,000 24,947 2,452 3,243,495 $ 33,852,595 $ 53,697 $ 191,241 $ 33,715,051 June 30, 2016 U.S. GSE debt securities $ 11,752,750 $ 138,140 $ 0 $ 11,890,890 Agency MBS 13,000,152 166,905 15,410 13,151,647 Other investments 2,973,000 64,138 0 3,037,138 $ 27,725,902 $ 369,183 $ 15,410 $ 28,079,675 |
Schedule Of Held to Maturity Securities | Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* June 30, 2017 States and political subdivisions $ 36,418,414 $ 646,586 $ 0 $ 37,065,000 December 31, 2016 States and political subdivisions $ 49,886,631 $ 1,148,369 $ 0 $ 51,035,000 June 30, 2016 States and political subdivisions $ 34,013,002 $ 668,998 $ 0 $ 34,682,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. |
Schedule of Maturities of Debt Securities Available for Sale | Amortized Fair Cost Value June 30, 2017 $ 35,697,449 $ 35,634,716 December 31, 2016 33,604,595 33,469,254 June 30, 2016 27,725,902 28,079,675 Amortized Fair Cost Value June 30, 2017 Due in one year or less $ 3,001,770 $ 3,001,473 Due from one to five years 17,322,645 17,326,400 Due from five to ten years 2,245,000 2,228,224 Agency MBS 13,128,034 13,078,619 $ 35,697,449 $ 35,634,716 December 31, 2016 Due in one year or less $ 2,006,027 $ 2,010,287 Due from one to five years 17,335,778 17,329,503 Due from five to ten years 1,245,000 1,221,033 Agency MBS 13,265,790 13,154,228 $ 33,852,595 $ 33,715,051 June 30, 2016 Due in one year or less $ 1,000,000 $ 1,003,413 Due from one to five years 12,480,750 12,674,932 Due from five to ten years 1,245,000 1,249,683 Agency MBS 13,000,152 13,151,647 $ 27,725,902 $ 28,079,675 |
Schedule Of Maturities of Debt Securities Held to Maturity | Amortized Fair Cost Value* June 30, 2017 Due in one year or less $ 11,987,857 $ 11,988,000 Due from one to five years 3,987,322 4,149,000 Due from five to ten years 3,744,385 3,906,000 Due after ten years 16,698,850 17,022,000 $ 36,418,414 $ 37,065,000 December 31, 2016 Due in one year or less $ 25,368,725 $ 25,369,000 Due from one to five years 4,030,900 4,318,000 Due from five to ten years 4,013,242 4,300,000 Due after ten years 16,473,764 17,048,000 $ 49,886,631 $ 51,035,000 June 30, 2016 Due in one year or less $ 11,824,312 $ 11,824,000 Due from one to five years 4,152,445 4,320,000 Due from five to ten years 3,466,701 3,634,000 Due after ten years 14,569,544 14,904,000 $ 34,013,002 $ 34,682,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. |
Schedule Of Unrealized Loss | Less than 12 months Number of Fair Unrealized Securities Value Loss June 30, 2017 U.S. GSE debt securities 9 $ 10,724,642 $ 57,881 Agency MBS 13 8,751,252 73,365 Other investments 4 990,729 1,271 26 $ 20,466,623 $ 132,517 December 31, 2016 U.S. GSE debt securities 4 $ 5,176,669 $ 73,331 Agency MBS 15 10,704,717 115,458 Other investments 2 493,548 2,452 21 $ 16,374,934 $ 191,241 June 30, 2016 Agency MBS 3 $ 1,548,890 $ 15,410 |
5. Loans, Allowance for Loan 20
5. Loans, Allowance for Loan Losses and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Composition of net loans | June 30, December 31, June 30, 2017 2016 2016 Commercial & industrial $ 79,361,739 $ 68,730,573 $ 72,878,438 Commercial real estate 209,886,793 201,728,280 185,950,674 Residential real estate - 1st lien 164,398,836 166,691,962 161,361,864 Residential real estate - Junior (Jr) lien 42,166,407 42,927,335 44,078,168 Consumer 6,959,070 7,171,076 7,298,211 Gross Loans 502,772,845 487,249,226 471,567,355 Deduct (add): Allowance for loan losses 5,374,378 5,278,445 5,077,420 Deferred net loan costs (323,371 ) (310,130 ) (320,298 ) Net Loans $ 497,721,838 $ 482,280,911 $ 466,810,233 |
Past due loans by segment | 90 Days or 90 Days Total Non-Accrual More and June 30, 2017 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 121,737 $ 86,994 $ 208,731 $ 79,153,008 $ 79,361,739 $ 135,379 $ 0 Commercial real estate 2,398,960 228,621 2,627,581 207,259,212 209,886,793 728,093 15,011 Residential real estate - 1st lien 1,886,256 1,225,362 3,111,618 161,287,218 164,398,836 1,403,312 354,988 - Jr lien 252,557 237,483 490,040 41,676,367 42,166,407 398,862 71,614 Consumer 54,835 0 54,835 6,904,235 6,959,070 0 0 $ 4,714,345 $ 1,778,460 $ 6,492,805 $ 496,280,040 $ 502,772,845 $ 2,665,646 $ 441,613 90 Days or 90 Days Total Non-Accrual More and December 31, 2016 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 328,684 $ 26,042 $ 354,726 $ 68,375,847 $ 68,730,573 $ 143,128 $ 26,042 Commercial real estate 824,836 222,738 1,047,574 200,680,706 201,728,280 765,584 0 Residential real estate - 1st lien 4,881,496 1,723,688 6,605,184 160,086,778 166,691,962 1,227,220 1,068,083 - Jr lien 984,849 116,849 1,101,698 41,825,637 42,927,335 338,602 27,905 Consumer 53,972 2,176 56,148 7,114,928 7,171,076 0 2,176 $ 7,073,837 $ 2,091,493 $ 9,165,330 $ 478,083,896 $ 487,249,226 $ 2,474,534 $ 1,124,206 90 Days or 90 Days Total Non-Accrual More and June 30, 2016 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 62,073 $ 120,111 $ 182,184 $ 72,696,254 $ 72,878,438 $ 256,456 $ 120,111 Commercial real estate 793,208 432,638 1,225,846 184,724,828 185,950,674 966,071 406,451 Residential real estate - 1st lien 1,432,806 905,157 2,337,963 159,023,901 161,361,864 1,467,171 694,007 - Jr lien 212,319 0 212,319 43,865,849 44,078,168 377,911 0 Consumer 83,668 0 83,668 7,214,543 7,298,211 0 0 $ 2,584,074 $ 1,457,906 $ 4,041,980 $ 467,525,375 $ 471,567,355 $ 3,067,609 $ 1,220,569 |
Residential mortgage loans in process of foreclosure | Number of loans Balance June 30, 2017 7 $ 448,622 December 31, 2016 8 322,663 June 30, 2016 3 84,458 |
Changes in the allowance for loan losses | As of or for the three months ended June 30, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 719,773 $ 2,521,121 $ 1,312,795 $ 370,454 $ 61,322 $ 272,975 $ 5,258,440 Charge-offs 0 0 0 (15,311 ) (37,326 ) 0 (52,637 ) Recoveries 1,422 230 3,981 60 12,882 0 18,575 Provision (credit) (25,532 ) 8,864 46,548 19,161 14,417 86,542 150,000 Ending balance $ 695,663 $ 2,530,215 $ 1,363,324 $ 374,364 $ 51,295 $ 359,517 $ 5,374,378 As of or for the six months ended June 30, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Charge-offs 0 (160,207 ) (4,735 ) (15,311 ) (63,791 ) 0 (244,044 ) Recoveries 4,318 230 10,217 120 25,092 0 39,977 Provision (credit) (35,503 ) 194,107 (11,915 ) 18,379 6,021 128,911 300,000 Ending balance $ 695,663 $ 2,530,215 $ 1,363,324 $ 374,364 $ 51,295 $ 359,517 $ 5,374,378 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 74,249 $ 154,760 $ 126,053 $ 0 $ 0 $ 355,062 Collectively 695,663 2,455,966 1,208,564 248,311 51,295 359,517 5,019,316 $ 695,663 $ 2,530,215 $ 1,363,324 $ 374,364 $ 51,295 $ 359,517 $ 5,374,378 Loans evaluated for impairment Individually $ 135,379 $ 1,968,144 $ 3,577,837 $ 419,550 $ 0 $ 6,100,910 Collectively 79,226,360 207,918,649 160,820,999 41,746,857 6,959,070 496,671,935 $ 79,361,739 $ 209,886,793 $ 164,398,836 $ 42,166,407 $ 6,959,070 $ 502,772,845 As of or for the year ended December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (49,009 ) 0 (244,149 ) 0 (15,404 ) 0 (308,562 ) Recoveries 36,032 0 23,712 240 15,145 0 75,129 Provision (credit) 26,923 343,407 222,166 (51,886 ) 8,543 (49,153 ) 500,000 Ending balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 86,400 $ 6,200 $ 114,800 $ 0 $ 0 $ 207,400 Collectively 726,848 2,409,685 1,363,557 256,376 83,973 230,606 5,071,045 $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Loans evaluated for impairment Individually $ 48,385 $ 687,495 $ 946,809 $ 224,053 $ 0 $ 1,906,742 Collectively 68,682,188 201,040,785 165,745,153 42,703,282 7,171,076 485,342,484 $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of or for the three months ended June 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 730,375 $ 2,295,303 $ 1,338,927 $ 423,025 $ 58,456 $ 263,402 $ 5,109,488 Charge-offs 0 0 (192,237 ) 0 (7,298 ) 0 (199,535 ) Recoveries 1,180 0 5,374 60 10,853 0 17,467 Provision (credit) 93,687 21,663 142,208 (9,003 ) 18,549 (117,104 ) 150,000 Ending balance $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 As of or for the six months ended June 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (10,836 ) 0 (192,549 ) 0 (23,973 ) 0 (227,358 ) Recoveries 20,475 0 5,686 120 16,619 0 42,900 Provision (credit) 102,701 164,288 113,107 (8,860 ) 12,225 (133,461 ) 250,000 Ending balance $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 59,900 $ 121,500 $ 0 $ 0 $ 181,400 Collectively 825,242 2,316,966 1,234,372 292,582 80,560 146,298 4,896,020 $ 825,242 $ 2,316,966 $ 1,294,272 $ 414,082 $ 80,560 $ 146,298 $ 5,077,420 Loans evaluated for impairment Individually $ 191,919 $ 895,626 $ 1,990,686 $ 373,028 $ 0 $ 3,451,259 Collectively 72,686,519 185,055,048 159,371,178 43,705,140 7,298,211 468,116,096 $ 72,878,438 $ 185,950,674 $ 161,361,864 $ 44,078,168 $ 7,298,211 $ 471,567,355 |
Impaired loans by segment | As of June 30, 2017 Unpaid Average Average Interest Recorded Principal Related Recorded Recorded Income Investment Balance Allowance Investment (1) Investment (2) Recognized (2) Related allowance recorded Commercial real estate $ 210,499 $ 228,074 $ 74,249 $ 212,451 $ 215,053 $ 0 Residential real estate - 1st lien 1,038,752 1,074,246 154,760 545,895 454,686 15,720 Residential real estate - Jr lien 283,626 348,416 126,053 252,853 243,253 1,301 1,532,877 1,650,736 355,062 1,011,199 912,992 17,021 No related allowance recorded Commercial & industrial 135,379 218,023 91,882 77,383 0 Commercial real estate 1,763,013 2,324,546 1,109,536 895,437 32,923 Residential real estate - 1st lien 2,556,076 2,802,565 1,484,683 1,214,864 57,116 Residential real estate - Jr lien 136,821 136,821 136,821 91,214 0 4,591,289 5,481,955 2,822,922 2,278,898 90,039 $ 6,124,166 $ 7,132,691 $ 355,062 $ 3,834,121 $ 3,191,890 $ 107,060 (1) For the three months ended June 30, 2017 (2) For the six months ended June 30, 2017 As of December 31, 2016 2016 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment Related allowance recorded Commercial real estate $ 220,257 $ 232,073 $ 86,400 $ 89,664 Residential real estate - 1st lien 271,962 275,118 6,200 350,709 Residential real estate - Jr lien 224,053 284,342 114,800 241,965 716,272 791,533 207,400 682,338 No related allowance recorded Commercial & industrial 48,385 62,498 183,925 Commercial real estate 467,238 521,991 1,059,542 Residential real estate - 1st lien 674,847 893,741 877,237 Residential real estate - Jr lien 0 0 15,888 1,190,470 1,478,230 2,136,592 $ 1,906,742 $ 2,269,763 $ 207,400 $ 2,818,930 As of June 30, 2016 Unpaid Average Average Recorded Principal Related Recorded Recorded Investment Balance Allowance Investment(1) Investment(2) Related allowance recorded Residential real estate - 1st lien $ 871,603 $ 1,027,861 $ 59,900 $ 435,802 $ 209,078 Residential real estate - Jr lien 293,587 348,757 121,500 262,589 151,836 1,165,190 1,376,618 181,400 698,391 360,914 No related allowance recorded Commercial & industrial 191,919 263,839 198,137 136,542 Commercial real estate 895,626 953,181 901,468 870,937 Residential real estate - 1st lien 1,119,083 1,319,907 918,378 616,555 Residential real estate - Jr lien 79,441 87,675 39,721 15,888 2,286,069 2,624,602 2,057,704 1,639,922 $ 3,451,259 $ 4,001,220 $ 181,400 $ 2,756,095 $ 2,000,836 (1) For the three months ended June 30, 2016 (2) For the six months ended June 30, 2016 |
Risk ratings | As of June 30, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 75,971,101 $ 199,768,226 $ 162,224,767 $ 41,503,823 $ 6,959,070 $ 486,426,987 Group B 520,555 1,169,093 0 162,321 0 1,851,969 Group C 2,870,083 8,949,474 2,174,069 500,263 0 14,493,889 $ 79,361,739 $ 209,886,793 $ 164,398,836 $ 42,166,407 $ 6,959,070 $ 502,772,845 As of December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 67,297,983 $ 191,755,393 $ 164,708,778 $ 42,289,062 $ 7,168,901 $ 473,220,117 Group B 512,329 2,971,364 0 169,054 0 3,652,747 Group C 920,261 7,001,523 1,983,184 469,219 2,175 10,376,362 $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of June 30, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 70,175,375 $ 173,220,709 $ 158,425,776 $ 43,400,606 $ 7,298,211 $ 452,520,677 Group B 1,764,165 4,318,817 587,586 156,846 0 6,827,414 Group C 938,898 8,411,148 2,348,502 520,716 0 12,219,264 $ 72,878,438 $ 185,950,674 $ 161,361,864 $ 44,078,168 $ 7,298,211 $ 471,567,355 |
Loans modified as TDRs | Six months ended June 30, 2017 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 1 $41,857 $57,418 Year ended December 31, 2016 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate - 1st lien 8 $ 572,418 $ 598,030 Residential real estate - Jr lien 2 62,819 64,977 10 $ 635,237 $ 663,007 Three months ended June 30, 2016 Six months ended June 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Contracts Investment Investment Contracts Investment Investment Residential real estate - 1st lien 0 $ 0 $ 0 5 $ 395,236 $ 412,923 - Jr lien 1 52,558 54,637 2 62,819 64,977 1 $ 52,558 $ 54,637 7 $ 458,055 $ 477,900 |
TDRs payment default | Twelve months ended June 30, 2017 Number of Recorded Contracts Investment Residential real estate – 1st lien 2 $ 80,485 Twelve months ended December 31, 2016 Number of Recorded Contracts Investment Residential real estate - 1st lien 2 $ 93,230 Residential real estate - Jr lien 1 54,557 3 $ 147,787 Twelve months ended June 30, 2016 Number of Recorded Contracts Investment Commercial & industrial 1 $ 71,808 Commercial real estate 2 373,767 Residential real estate - 1st lien 1 58,792 4 $ 504,367 |
Specific allowances | June 30, December 31, June 30, 2017 2016 2016 Specific Allocation $ 237,551 $ 92,600 $ 68,500 |
7. Fair Value (Tables)
7. Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value Assets and Liabilities On Recurring Basis | June 30, 2017 Level 2 Assets: (market approach) U.S. GSE debt securities $ 18,313,188 Agency MBS 13,078,619 Other investments 4,242,909 $ 35,634,716 December 31, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,317,328 Agency MBS 13,154,228 Other investments 3,243,495 $ 33,715,051 June 30, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 11,890,890 Agency MBS 13,151,647 Other investments 3,037,138 $ 28,079,675 |
Schedule of Fair Value Assets and Liabilities Non-recurring Basis | June 30, 2017 Level 2 Assets: (market approach) MSRs (1) $ 1,151,241 Impaired loans, net of related allowance 25,050 OREO 343,928 December 31, 2016 Level 2 Assets: (market approach) MSRs (1) $ 1,210,695 Impaired loans, net of related allowance 508,872 OREO 394,000 June 30, 2016 Level 2 Assets: (market approach) MSRs (1) $ 1,264,148 Impaired loans, net of related allowance 983,790 OREO 409,000 (1) Represents MSRs at lower of cost or fair value, including MSRs deemed to be impaired and for which a valuation allowance was established to carry at fair value as of the balance sheet dates presented. |
Schedule Of Estimated Fair Values Of Financial Instruments | June 30, 2017 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 37,026 $ 37,026 $ 0 $ 0 $ 37,026 Securities held-to-maturity 36,418 0 37,065 0 37,065 Securities available-for-sale 35,635 0 35,635 0 35,635 Restricted equity securities 1,943 0 1,943 0 1,943 Loans and loans held-for-sale Commercial & industrial 78,609 0 0 79,311 79,311 Commercial real estate 207,207 0 0 208,632 208,632 Residential real estate - 1st lien 163,489 0 25 166,085 166,110 Residential real estate - Jr lien 41,762 0 0 42,199 42,199 Consumer 6,903 0 0 7,147 7,147 MSRs (1) 1,151 0 1,341 0 1,341 Accrued interest receivable 1,746 0 1,746 0 1,746 Financial liabilities: Deposits Other deposits 479,131 0 478,412 0 478,412 Brokered deposits 54,176 0 54,177 0 54,177 Short-term borrowings 10,000 0 10,000 0 10,000 Long-term borrowings 3,550 0 3,205 0 3,205 Repurchase agreements 28,863 0 28,863 0 28,863 Capital lease obligations 435 0 435 0 435 Subordinated debentures 12,887 0 12,844 0 12,844 Accrued interest payable 125 0 125 0 125 (1) Reported fair value represents all MSRs for loans serviced by the Company at June 30, 2017, regardless of carrying amount. December 31, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 29,614 $ 29,614 $ 0 $ 0 $ 29,614 Securities held-to-maturity 49,887 0 51,035 0 51,035 Securities available-for-sale 33,715 0 33,715 0 33,715 Restricted equity securities 2,756 0 2,756 0 2,756 Loans and loans held-for-sale Commercial & industrial 67,972 0 48 68,727 68,775 Commercial real estate 199,136 0 601 201,560 202,161 Residential real estate - 1st lien 165,243 0 941 166,858 167,799 Residential real estate - Jr lien 42,536 0 109 42,948 43,057 Consumer 7,084 0 0 7,371 7,371 MSRs(1) 1,211 0 1,302 0 1,302 Accrued interest receivable 1,819 0 1,819 0 1,819 Financial liabilities: Deposits Other deposits 470,002 0 469,323 0 469,323 Brokered deposits 34,733 0 34,745 0 34,745 Short-term borrowings 30,000 0 30,000 0 30,000 Long-term borrowings 1,550 0 1,376 0 1,376 Repurchase agreements 30,423 0 30,423 0 30,423 Capital lease obligations 483 0 483 0 483 Subordinated debentures 12,887 0 12,849 0 12,849 Accrued interest payable 73 0 73 0 73 (1) Reported fair value represents all MSRs for loans serviced by the Company at December 31, 2016, regardless of carrying amount. June 30, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 24,334 $ 24,334 $ 0 $ 0 $ 24,334 Securities held-to-maturity 34,013 0 34,682 0 34,682 Securities available-for-sale 28,080 0 28,080 0 28,080 Restricted equity securities 2,610 0 2,610 0 2,610 Loans and loans held-for-sale Commercial & industrial 72,030 0 192 73,096 73,288 Commercial real estate 183,577 0 896 188,112 189,008 Residential real estate - 1st lien 160,599 0 1,931 162,930 164,861 Residential real estate - Jr lien 43,650 0 252 44,080 44,332 Consumer 7,215 0 0 7,533 7,533 Mortgage servicing rights 1,264 0 1,333 0 1,333 Accrued interest receivable 1,558 0 1,558 0 1,558 Financial liabilities: Deposits Other deposits 448,752 0 449,061 0 449,061 Brokered deposits 20,231 0 20,237 0 20,237 Short-term borrowings 30,000 0 30,000 0 30,000 Long-term borrowings 350 0 328 0 328 Repurchase agreements 26,837 0 26,837 0 26,837 Capital lease obligations 515 0 515 0 515 Subordinated debentures 12,887 0 12,853 0 12,853 Accrued interest payable 61 0 61 0 61 (1) Reported fair value represents all MSRs for loans serviced by the Company at June 30, 2016, regardless of carrying amount. |
8. Loan Servicing (Tables)
8. Loan Servicing (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule Of Mortgage Servicing Rights | Six Months Ended Year Ended Six Months Ended June 30, 2017 December 31, 2016 June 30, 2016 Balance at beginning of year $ 1,210,695 $ 1,293,079 $ 1,293,079 Mortgage servicing rights capitalized 54,603 176,705 98,054 Mortgage servicing rights amortized (114,057 ) (266,603 ) (134,499 ) Change in valuation allowance 0 7,514 7,514 Balance at end of period $ 1,151,241 $ 1,210,695 $ 1,264,148 |
3. Earnings per Common Share (D
3. Earnings per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income, as reported | $ 1,499,513 | $ 1,295,199 | $ 2,913,729 | $ 2,464,693 |
Less: dividends to preferred shareholders | 25,000 | 21,875 | 48,438 | 43,750 |
Net income available to common shareholders | $ 1,474,513 | $ 1,273,324 | $ 2,865,291 | $ 2,420,943 |
Weighted average number of common shares used in calculating earnings per share | 5,077,698 | 5,016,097 | 5,070,453 | 5,008,121 |
Earnings per common share | $ 0.29 | $ 0.25 | $ 0.57 | $ 0.48 |
4. Investment Securities (Detai
4. Investment Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | $ 35,697,449 | $ 27,725,902 | $ 33,852,595 |
Gross Unrealized Gains - Available for sale Securities | 69,784 | 369,183 | 53,697 |
Gross Unrealized Losses - Available for sale Securities | 132,517 | 15,410 | 191,241 |
Fair Value - Available for sale Securities | 35,634,716 | 28,079,675 | 33,715,051 |
U.S. GSE debt securities | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 18,356,415 | 11,752,750 | 17,365,805 |
Gross Unrealized Gains - Available for sale Securities | 14,654 | 64,138 | 24,854 |
Gross Unrealized Losses - Available for sale Securities | 57,881 | 0 | 73,331 |
Fair Value - Available for sale Securities | 18,313,188 | 11,890,890 | 17,317,328 |
Agency mortgage-backed securities (Agency MBS) | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 13,128,034 | 13,000,152 | 13,265,790 |
Gross Unrealized Gains - Available for sale Securities | 23,950 | 166,905 | 3,896 |
Gross Unrealized Losses - Available for sale Securities | 73,365 | 15,410 | 115,458 |
Fair Value - Available for sale Securities | 13,078,619 | 13,151,647 | 13,154,228 |
Other investments | |||
Available for sale Securities | |||
Amortized Cost - Available for sale Securities | 4,213,000 | 2,973,000 | 3,221,000 |
Gross Unrealized Gains - Available for sale Securities | 31,180 | 64,138 | 24,947 |
Gross Unrealized Losses - Available for sale Securities | 1,271 | 0 | 2,452 |
Fair Value - Available for sale Securities | $ 4,242,909 | $ 3,037,138 | $ 3,243,495 |
4. Investment Securities (Det25
4. Investment Securities (Details 1) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Held-to-Maturity Securities | ||||
Fair Value - Held-to-Maturity | $ 37,065,000 | $ 34,682,000 | $ 51,035,000 | |
States and political subdivisions [Member] | ||||
Held-to-Maturity Securities | ||||
Amortized Cost - Held-to-Maturity | 36,418,414 | 34,013,002 | 49,886,631 | |
Gross Unrealized Gains - Held-to-Maturity | 646,586 | 668,998 | 1,148,369 | |
Gross Unrealized Losses - Held-to-Maturity | 0 | 0 | 0 | |
Fair Value - Held-to-Maturity | [1] | $ 37,065,000 | $ 34,682,000 | $ 51,035,000 |
[1] | Method used to determine fair value of HTM securities rounds values to nearest thousand. |
4. Investment Securities (Det26
4. Investment Securities (Details 2) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Investment Securities Details 2 | |||
Book value of available for sale securities, pledged as collateral for repurchase agreements | $ 35,697,449 | $ 33,604,595 | $ 27,725,902 |
Fair value of available for sale securities, pledged as collateral for repurchase agreements | $ 35,634,716 | $ 33,469,254 | $ 28,079,675 |
4. Investment Securities (Det27
4. Investment Securities (Details 3) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Available for sale Securities | ||||
Amortized Cost | ||||
Due in one year or less, Amortized Cost | $ 3,001,770 | $ 2,006,027 | $ 1,000,000 | |
Due from one to five years, Amortized Cost | 17,322,645 | 17,335,778 | 12,480,750 | |
Due from five to ten years | 2,245,000 | 1,245,000 | 1,245,000 | |
Agency MBS | 13,128,034 | 13,265,790 | 13,000,152 | |
Amortization Cost of Debt | 35,697,449 | 33,852,595 | 27,725,902 | |
Fair Value | ||||
Due in one year or less, fair value | 3,001,473 | 2,010,287 | 1,003,413 | |
Due from one to five years, fair value | 17,326,400 | 17,329,503 | 12,674,932 | |
Due from five to ten years, fair value | 2,228,224 | 1,221,033 | 1,249,683 | |
Agency MBS | 13,078,619 | 13,154,228 | 13,151,647 | |
Fair value of debt | 35,634,716 | 33,715,051 | 28,079,675 | |
Held to maturity Securities | ||||
Amortized Cost | ||||
Due in one year or less, Amortized Cost | 11,987,857 | 25,368,725 | 11,824,312 | |
Due from one to five years, Amortized Cost | 3,987,322 | 4,030,900 | 4,152,445 | |
Due from five to ten years, Amortized Cost | 3,744,385 | 4,013,242 | 3,466,701 | |
Due after ten years, Amortized Cost | 16,698,850 | 16,473,764 | 14,569,544 | |
Amortization Cost of Debt | 36,418,414 | 49,886,631 | 34,013,002 | |
Fair Value | ||||
Due in one year or less, fair value | [1] | 11,988,000 | 25,369,000 | 11,824,000 |
Due from one to five years, fair value | [1] | 4,149,000 | 4,318,000 | 4,320,000 |
Due from five to ten years, fair value | [1] | 3,906,000 | 4,300,000 | 3,634,000 |
Due after ten years, fair value | [1] | 17,022,000 | 17,048,000 | 14,904,000 |
Fair value of debt | [1] | $ 37,065,000 | $ 51,035,000 | $ 34,682,000 |
[1] | Method used to determine fair value of HTM securities rounds values to nearest thousand. |
4. Investment Securities (Det28
4. Investment Securities (Details 4) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)integer | Jun. 30, 2016USD ($)integer | Dec. 31, 2016USD ($)integer | |
Fair Value Less than 12 months | $ 20,466,623 | $ 1,548,890 | $ 16,374,934 |
Unrealized Loss Less than 12 months | 132,517 | 15,410 | 191,241 |
Fair Value | 20,466,623 | 1,548,890 | 16,374,934 |
Unrealized Loss | $ 132,517 | $ 15,410 | $ 191,241 |
Number of Securities | integer | 26 | 3 | 21 |
U.S. GSE debt securities | |||
Fair Value Less than 12 months | $ 10,724,642 | $ 5,176,669 | |
Unrealized Loss Less than 12 months | 57,881 | 73,331 | |
Fair Value | 10,724,642 | 5,176,669 | |
Unrealized Loss | $ 57,881 | $ 0 | $ 73,331 |
Number of Securities | integer | 9 | 4 | |
Agency mortgage-backed securities (Agency MBS) | |||
Fair Value Less than 12 months | $ 8,751,252 | 1,548,890 | $ 10,704,717 |
Unrealized Loss Less than 12 months | 73,365 | 15,410 | 115,458 |
Fair Value | 8,751,252 | 1,548,890 | 10,704,717 |
Unrealized Loss | $ 73,365 | $ 15,410 | $ 115,458 |
Number of Securities | integer | 13 | 3 | 15 |
Other investments | |||
Fair Value Less than 12 months | $ 990,729 | $ 493,548 | |
Unrealized Loss Less than 12 months | 1,271 | 2,452 | |
Fair Value | 990,729 | 493,548 | |
Unrealized Loss | $ 1,271 | $ 0 | $ 2,452 |
Number of Securities | integer | 4 | 2 |
5. Loans, Allowance for Loan 29
5. Loans, Allowance for Loan Losses and Credit Quality (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Abstract] | ||||||
Commercial & industrial | $ 79,361,739 | $ 68,730,573 | $ 72,878,438 | |||
Commercial real estate | 209,886,793 | 201,728,280 | 185,950,674 | |||
Residential real estate - 1st lien | 164,398,836 | 166,691,962 | 161,361,864 | |||
Residential real estate -Junior (Jr) lien | 42,166,407 | 42,927,335 | 44,078,168 | |||
Consumer | 6,959,070 | 7,171,076 | 7,298,211 | |||
Gross Loans | 502,772,845 | 487,249,226 | 471,567,355 | |||
Deduct (add): | ||||||
Allowance for loan losses | 5,374,378 | $ 5,258,440 | 5,278,445 | 5,077,420 | $ 5,109,488 | $ 5,011,878 |
Deferred net loan costs | (323,371) | (310,130) | (320,298) | |||
Net loans | $ 497,721,838 | $ 482,280,911 | $ 466,810,233 |
5. Loans, Allowance for Loan 30
5. Loans, Allowance for Loan Losses and Credit Quality (Details 1) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
30-89 Days | $ 4,714,345 | $ 7,073,837 | $ 2,584,074 |
90 Days or more | 1,778,460 | 2,091,493 | 1,457,906 |
Total Past Due | 6,492,805 | 9,165,330 | 4,041,980 |
Current | 496,280,040 | 478,083,896 | 467,525,375 |
Total Loans | 502,772,845 | 487,249,226 | 471,567,355 |
Non-Accrual Loans | 2,665,646 | 2,474,534 | 3,067,609 |
90 Days or More and Accruing | 441,613 | 1,124,206 | 1,220,569 |
Commercial and industrial | |||
30-89 Days | 121,737 | 328,684 | 62,073 |
90 Days or more | 86,994 | 26,042 | 120,111 |
Total Past Due | 208,731 | 354,726 | 182,184 |
Current | 79,153,008 | 68,375,847 | 72,696,254 |
Total Loans | 79,361,739 | 68,730,573 | 72,878,438 |
Non-Accrual Loans | 135,379 | 143,128 | 256,456 |
90 Days or More and Accruing | 0 | 26,042 | 120,111 |
Commercial Real Estate | |||
30-89 Days | 2,398,960 | 824,836 | 793,208 |
90 Days or more | 228,621 | 222,738 | 432,638 |
Total Past Due | 2,627,581 | 1,047,574 | 1,225,846 |
Current | 207,259,212 | 200,680,706 | 184,724,828 |
Total Loans | 209,886,793 | 201,728,280 | 185,950,674 |
Non-Accrual Loans | 728,093 | 765,584 | 966,071 |
90 Days or More and Accruing | 15,011 | 0 | 406,451 |
Residential real estate - 1st lien | |||
30-89 Days | 1,886,256 | 4,881,496 | 1,432,806 |
90 Days or more | 1,225,362 | 1,723,688 | 905,157 |
Total Past Due | 3,111,618 | 6,605,184 | 2,337,963 |
Current | 161,287,218 | 160,086,778 | 159,023,901 |
Total Loans | 164,398,836 | 166,691,962 | 161,361,864 |
Non-Accrual Loans | 1,403,312 | 1,227,220 | 1,467,171 |
90 Days or More and Accruing | 354,988 | 1,068,083 | 694,007 |
Residential real estate - Jr lien | |||
30-89 Days | 252,557 | 984,849 | 212,319 |
90 Days or more | 237,483 | 116,849 | 0 |
Total Past Due | 490,040 | 1,101,698 | 212,319 |
Current | 41,676,367 | 41,825,637 | 43,865,849 |
Total Loans | 42,166,407 | 42,927,335 | 44,078,168 |
Non-Accrual Loans | 398,862 | 338,602 | 377,911 |
90 Days or More and Accruing | 71,614 | 27,905 | 0 |
Consumer | |||
30-89 Days | 54,835 | 53,972 | 83,668 |
90 Days or more | 0 | 2,176 | 0 |
Total Past Due | 54,835 | 56,148 | 83,668 |
Current | 6,904,235 | 7,114,928 | 7,214,543 |
Total Loans | 6,959,070 | 7,171,076 | 7,298,211 |
Non-Accrual Loans | 0 | 0 | 0 |
90 Days or More and Accruing | $ 0 | $ 2,176 | $ 0 |
5. Loans, Allowance for Loan 31
5. Loans, Allowance for Loan Losses and Credit Quality (Details 2) | Jun. 30, 2017USD ($)integer | Dec. 31, 2016USD ($)integer | Jun. 30, 2016USD ($)integer |
Loans Allowance For Loan Losses And Credit Quality Details 2 | |||
Residential mortgage loans in process of foreclosure, number of loans | integer | 7 | 8 | 3 |
Residential mortgage loans in process of foreclosure, current balance | $ | $ 448,622 | $ 322,663 | $ 84,458 |
5. Loans, Allowance for Loan 32
5. Loans, Allowance for Loan Losses and Credit Quality (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allowance for loan losses, Beginning balance | $ 5,258,440 | $ 5,109,488 | $ 5,278,445 | $ 5,011,878 | $ 5,011,878 |
Charge-offs | (52,637) | (199,535) | (244,044) | (227,358) | (308,562) |
Recoveries | 18,575 | 17,467 | 39,977 | 42,900 | 75,129 |
Provisions (credit) | 150,000 | 150,000 | 300,000 | 250,000 | 500,000 |
Allowance for loan losses, Ending balance | 5,374,378 | 5,077,420 | 5,374,378 | 5,077,420 | 5,278,445 |
Allowance for loan losses evaluated for impairment, Individually | 355,062 | 181,400 | 355,062 | 181,400 | 207,400 |
Allowance for loan losses evaluated for impairment, Collectively | 5,019,316 | 4,896,020 | 5,019,316 | 4,896,020 | 5,071,045 |
Allowance for loan losses | 5,374,378 | 5,077,420 | 5,374,378 | 5,077,420 | 5,278,445 |
Loans evaluated for impairment, Individually | 6,100,910 | 3,451,259 | 6,100,910 | 3,451,259 | 1,906,742 |
Loans evaluated for impairment, Collectively | 496,671,935 | 468,116,096 | 496,671,935 | 468,116,096 | 485,342,484 |
Total Loans | 502,772,845 | 471,567,355 | 502,772,845 | 471,567,355 | 487,249,226 |
Commercial and industrial | |||||
Allowance for loan losses, Beginning balance | 719,773 | 730,375 | 726,848 | 712,902 | 712,902 |
Charge-offs | 0 | 0 | 0 | (10,836) | (49,009) |
Recoveries | 1,422 | 1,180 | 4,318 | 20,475 | 36,032 |
Provisions (credit) | (25,532) | 93,687 | (35,503) | 102,701 | 26,923 |
Allowance for loan losses, Ending balance | 695,663 | 825,242 | 695,663 | 825,242 | 726,848 |
Allowance for loan losses evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 695,663 | 825,242 | 695,663 | 825,242 | 726,848 |
Allowance for loan losses | 695,663 | 825,242 | 695,663 | 825,242 | 726,848 |
Loans evaluated for impairment, Individually | 135,379 | 191,919 | 135,379 | 191,919 | 48,385 |
Loans evaluated for impairment, Collectively | 79,226,360 | 72,686,519 | 79,226,360 | 72,686,519 | 68,682,188 |
Total Loans | 79,361,739 | 72,878,438 | 79,361,739 | 72,878,438 | 68,730,573 |
Commercial Real Estate | |||||
Allowance for loan losses, Beginning balance | 2,521,121 | 2,295,303 | 2,496,085 | 2,152,678 | 2,152,678 |
Charge-offs | 0 | 0 | (160,207) | 0 | 0 |
Recoveries | 230 | 0 | 230 | 0 | 0 |
Provisions (credit) | 8,864 | 21,663 | 194,107 | 164,288 | 343,407 |
Allowance for loan losses, Ending balance | 2,530,215 | 2,316,966 | 2,530,215 | 2,316,966 | 2,496,085 |
Allowance for loan losses evaluated for impairment, Individually | 74,249 | 0 | 74,249 | 0 | 86,400 |
Allowance for loan losses evaluated for impairment, Collectively | 2,455,966 | 2,316,966 | 2,455,966 | 2,316,966 | 2,409,685 |
Allowance for loan losses | 2,530,215 | 2,316,966 | 2,530,215 | 2,316,966 | 2,496,085 |
Loans evaluated for impairment, Individually | 1,968,144 | 895,626 | 1,968,144 | 895,626 | 687,495 |
Loans evaluated for impairment, Collectively | 207,918,649 | 185,055,048 | 207,918,649 | 185,055,048 | 201,040,785 |
Total Loans | 209,886,793 | 185,950,674 | 209,886,793 | 185,950,674 | 201,728,280 |
Residential Real Estate - 1st Lien | |||||
Allowance for loan losses, Beginning balance | 1,312,795 | 1,338,927 | 1,369,757 | 1,368,028 | 1,368,028 |
Charge-offs | 0 | (192,237) | (4,735) | (192,549) | (244,149) |
Recoveries | 3,981 | 5,374 | 10,217 | 5,686 | 23,712 |
Provisions (credit) | 46,548 | 142,208 | (11,915) | 113,107 | 222,166 |
Allowance for loan losses, Ending balance | 1,363,324 | 1,294,272 | 1,363,324 | 1,294,272 | 1,369,757 |
Allowance for loan losses evaluated for impairment, Individually | 154,760 | 59,900 | 154,760 | 59,900 | 6,200 |
Allowance for loan losses evaluated for impairment, Collectively | 1,208,564 | 1,234,372 | 1,208,564 | 1,234,372 | 1,363,557 |
Allowance for loan losses | 1,363,324 | 1,294,272 | 1,363,324 | 1,294,272 | 1,369,757 |
Loans evaluated for impairment, Individually | 3,577,837 | 1,990,686 | 3,577,837 | 1,990,686 | 946,809 |
Loans evaluated for impairment, Collectively | 160,820,999 | 159,371,178 | 160,820,999 | 159,371,178 | 165,745,153 |
Total Loans | 164,398,836 | 161,361,864 | 164,398,836 | 161,361,864 | 166,691,962 |
Residential Real Estate Jr Lien | |||||
Allowance for loan losses, Beginning balance | 370,454 | 423,025 | 371,176 | 422,822 | 422,822 |
Charge-offs | (15,311) | 0 | (15,311) | 0 | 0 |
Recoveries | 60 | 60 | 120 | 120 | 240 |
Provisions (credit) | 19,161 | (9,003) | 18,379 | (8,860) | (51,886) |
Allowance for loan losses, Ending balance | 374,364 | 414,082 | 374,364 | 414,082 | 371,176 |
Allowance for loan losses evaluated for impairment, Individually | 126,053 | 121,500 | 126,053 | 121,500 | 114,800 |
Allowance for loan losses evaluated for impairment, Collectively | 248,311 | 292,582 | 248,311 | 292,582 | 256,376 |
Allowance for loan losses | 374,364 | 414,082 | 374,364 | 414,082 | 371,176 |
Loans evaluated for impairment, Individually | 419,550 | 373,028 | 419,550 | 373,028 | 224,053 |
Loans evaluated for impairment, Collectively | 41,746,857 | 43,705,140 | 41,746,857 | 43,705,140 | 42,703,282 |
Total Loans | 42,166,407 | 44,078,168 | 42,166,407 | 44,078,168 | 42,927,335 |
Consumer | |||||
Allowance for loan losses, Beginning balance | 61,322 | 58,456 | 83,973 | 75,689 | 75,689 |
Charge-offs | (37,326) | (7,298) | (63,791) | (23,973) | (15,404) |
Recoveries | 12,882 | 10,853 | 25,092 | 16,619 | 15,145 |
Provisions (credit) | 14,417 | 18,549 | 6,021 | 12,225 | 8,543 |
Allowance for loan losses, Ending balance | 51,295 | 80,560 | 51,295 | 80,560 | 83,973 |
Allowance for loan losses evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 51,295 | 80,560 | 51,295 | 80,560 | 83,973 |
Allowance for loan losses | 51,295 | 80,560 | 51,295 | 80,560 | 83,973 |
Loans evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Loans evaluated for impairment, Collectively | 6,959,070 | 7,298,211 | 6,959,070 | 7,298,211 | 7,171,076 |
Total Loans | 6,959,070 | 7,298,211 | 6,959,070 | 7,298,211 | 7,171,076 |
Unallocated | |||||
Allowance for loan losses, Beginning balance | 272,975 | 263,402 | 230,606 | 279,759 | 279,759 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provisions (credit) | 86,542 | (117,104) | 128,911 | (133,461) | (49,153) |
Allowance for loan losses, Ending balance | 359,517 | 146,298 | 359,517 | 146,298 | 230,606 |
Allowance for loan losses evaluated for impairment, Individually | 0 | 0 | 0 | 0 | 0 |
Allowance for loan losses evaluated for impairment, Collectively | 359,517 | 146,298 | 359,517 | 146,298 | 230,606 |
Allowance for loan losses | $ 359,517 | $ 146,298 | $ 359,517 | $ 146,298 | $ 230,606 |
5. Loans, Allowance for Loan 33
5. Loans, Allowance for Loan Losses and Credit Quality (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Recorded Investment With an allowance recorded | $ 1,532,877 | $ 1,165,190 | $ 1,532,877 | $ 1,165,190 | $ 716,272 |
Unpaid Principal Balance With an allowance recorded | 1,650,736 | 1,376,618 | 1,650,736 | 1,376,618 | 791,533 |
Related Allowance With an allowance recorded | 355,062 | 181,400 | 355,062 | 181,400 | 207,400 |
Average Recorded Investment With an allowance recorded | 1,011,199 | 698,391 | 912,992 | 360,914 | 682,338 |
Interest income recognized With an allowance recorded | 17,021 | ||||
Recorded Investment With no related allowance recorded | 4,591,289 | 2,286,069 | 4,591,289 | 2,286,069 | 1,190,470 |
Unpaid Principal Balance With no related allowance recorded | 5,481,955 | 2,624,602 | 5,481,955 | 2,624,602 | 1,478,230 |
Average Recorded Investment With no related allowance recorded | 2,822,922 | 2,057,704 | 2,278,898 | 1,639,922 | 2,136,592 |
Interest income recognized With no related allowance recorded | 90,039 | ||||
Recorded Investment allowance recorded | 6,124,166 | 3,451,259 | 6,124,166 | 3,451,259 | 1,906,742 |
Unpaid Principal Balance allowance recorded | 7,132,691 | 4,001,220 | 7,132,691 | 4,001,220 | 2,269,763 |
Related Allowance allowance recorded | 355,062 | 181,400 | 355,062 | 181,400 | 207,400 |
Average Recorded Investment Allowance recorded | 3,834,121 | 2,756,095 | 3,191,890 | 2,000,836 | 2,818,930 |
Interest income recognized | 107,060 | ||||
Commercial and industrial | |||||
Recorded Investment With no related allowance recorded | 135,379 | 191,919 | 135,379 | 191,919 | 48,385 |
Unpaid Principal Balance With no related allowance recorded | 218,023 | 263,839 | 218,023 | 263,839 | 62,498 |
Average Recorded Investment With no related allowance recorded | 91,882 | 198,137 | 77,383 | 136,542 | 183,925 |
Interest income recognized With no related allowance recorded | 0 | ||||
Commercial Real Estate | |||||
Recorded Investment With an allowance recorded | 210,499 | 210,499 | 220,257 | ||
Unpaid Principal Balance With an allowance recorded | 228,074 | 228,074 | 232,073 | ||
Related Allowance With an allowance recorded | 74,249 | 74,249 | 86,400 | ||
Average Recorded Investment With an allowance recorded | 212,451 | 215,053 | 89,664 | ||
Interest income recognized With an allowance recorded | 0 | ||||
Recorded Investment With no related allowance recorded | 1,763,013 | 895,626 | 1,763,013 | 895,626 | 467,238 |
Unpaid Principal Balance With no related allowance recorded | 2,324,546 | 953,181 | 2,324,546 | 953,181 | 521,991 |
Average Recorded Investment With no related allowance recorded | 1,109,536 | 901,468 | 895,437 | 870,937 | 1,059,542 |
Interest income recognized With no related allowance recorded | 32,923 | ||||
Residential real estate - 1st lien | |||||
Recorded Investment With an allowance recorded | 1,038,752 | 871,603 | 1,038,752 | 871,603 | 271,962 |
Unpaid Principal Balance With an allowance recorded | 1,074,246 | 1,027,861 | 1,074,246 | 1,027,861 | 275,118 |
Related Allowance With an allowance recorded | 154,760 | 59,900 | 154,760 | 59,900 | 6,200 |
Average Recorded Investment With an allowance recorded | 545,895 | 435,802 | 454,686 | 209,078 | 350,709 |
Interest income recognized With an allowance recorded | 15,720 | ||||
Recorded Investment With no related allowance recorded | 2,556,076 | 1,119,083 | 2,556,076 | 1,119,083 | 674,847 |
Unpaid Principal Balance With no related allowance recorded | 2,802,565 | 1,319,907 | 2,802,565 | 1,319,907 | 893,741 |
Average Recorded Investment With no related allowance recorded | 1,484,683 | 918,378 | 1,214,864 | 616,555 | 877,237 |
Interest income recognized With no related allowance recorded | 57,116 | ||||
Residential real estate - Jr lien | |||||
Recorded Investment With an allowance recorded | 283,626 | 293,587 | 283,626 | 293,587 | 224,053 |
Unpaid Principal Balance With an allowance recorded | 348,416 | 348,757 | 348,416 | 348,757 | 284,342 |
Related Allowance With an allowance recorded | 126,053 | 121,500 | 126,053 | 121,500 | 114,800 |
Average Recorded Investment With an allowance recorded | 252,853 | 262,589 | 243,253 | 151,836 | 241,965 |
Interest income recognized With an allowance recorded | 1,301 | ||||
Recorded Investment With no related allowance recorded | 136,821 | 79,441 | 136,821 | 79,441 | 0 |
Unpaid Principal Balance With no related allowance recorded | 136,821 | 87,675 | 136,821 | 87,675 | 0 |
Average Recorded Investment With no related allowance recorded | $ 136,821 | $ 39,721 | 91,214 | $ 15,888 | $ 15,888 |
Interest income recognized With no related allowance recorded | $ 0 |
5. Loans, Allowance for Loan 34
5. Loans, Allowance for Loan Losses and Credit Quality (Details 5) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Group A | $ 486,426,987 | $ 473,220,117 | $ 452,520,677 |
Group B | 1,851,969 | 3,652,747 | 6,827,414 |
Group C | 14,493,889 | 10,376,362 | 12,219,264 |
Total Loans | 502,772,845 | 487,249,226 | 471,567,355 |
Commercial and industrial | |||
Group A | 75,971,101 | 67,297,983 | 70,175,375 |
Group B | 520,555 | 512,329 | 1,764,165 |
Group C | 2,870,083 | 920,261 | 938,898 |
Total Loans | 79,361,739 | 68,730,573 | 72,878,438 |
Commercial Real Estate | |||
Group A | 199,768,226 | 191,755,393 | 173,220,709 |
Group B | 1,169,093 | 2,971,364 | 4,318,817 |
Group C | 8,949,474 | 7,001,523 | 8,411,148 |
Total Loans | 209,886,793 | 201,728,280 | 185,950,674 |
Residential real estate - 1st lien | |||
Group A | 162,224,767 | 164,708,778 | 158,425,776 |
Group B | 0 | 0 | 587,586 |
Group C | 2,174,069 | 1,983,184 | 2,348,502 |
Total Loans | 164,398,836 | 166,691,962 | 161,361,864 |
Residential real estate - Jr lien | |||
Group A | 41,503,823 | 42,289,062 | 43,400,606 |
Group B | 162,321 | 169,054 | 156,846 |
Group C | 500,263 | 469,219 | 520,716 |
Total Loans | 42,166,407 | 42,927,335 | 44,078,168 |
Consumer | |||
Group A | 6,959,070 | 7,168,901 | 7,298,211 |
Group B | 0 | 0 | 0 |
Group C | 0 | 2,175 | 0 |
Total Loans | $ 6,959,070 | $ 7,171,076 | $ 7,298,211 |
5. Loans, Allowance for Loan 35
5. Loans, Allowance for Loan Losses and Credit Quality (Details 6) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)integer | Jun. 30, 2017USD ($)integer | Jun. 30, 2016USD ($)integer | Dec. 31, 2016USD ($)integer | |
Number of Contracts modified as TDRs | integer | 1 | 7 | 10 | |
Pre-Modification Outstanding Recorded Investment | $ 52,558 | $ 458,055 | $ 635,237 | |
Post- Modification Outstanding Recorded Investment | $ 54,637 | $ 477,900 | $ 663,007 | |
Commercial and industrial | ||||
Number of Contracts modified as TDRs | integer | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 41,857 | |||
Post- Modification Outstanding Recorded Investment | $ 57,418 | |||
Residential real estate - 1st lien | ||||
Number of Contracts modified as TDRs | integer | 0 | 5 | 8 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 395,236 | $ 572,418 | |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 412,923 | $ 598,030 | |
Residential Real Estate Jr Lien | ||||
Number of Contracts modified as TDRs | integer | 1 | 2 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 52,558 | $ 62,819 | $ 62,819 | |
Post- Modification Outstanding Recorded Investment | $ 54,637 | $ 64,977 | $ 64,977 |
5. Loans, Allowance for Loan 36
5. Loans, Allowance for Loan Losses and Credit Quality (Details 7) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)integer | Jun. 30, 2016USD ($)integer | Dec. 31, 2016USD ($)integer | |
Number of Contracts | integer | 2 | 4 | 3 |
Recorded Investment | $ | $ 80,485 | $ 504,367 | $ 147,787 |
Commercial | |||
Number of Contracts | integer | 1 | ||
Recorded Investment | $ | $ 71,808 | ||
Commercial Real Estate | |||
Number of Contracts | integer | 2 | ||
Recorded Investment | $ | $ 373,767 | ||
Residential Real Estate - 1st Lien | |||
Number of Contracts | integer | 2 | 1 | 2 |
Recorded Investment | $ | $ 80,485 | $ 58,792 | $ 93,230 |
Residential Real Estate Jr Lien | |||
Number of Contracts | integer | 1 | ||
Recorded Investment | $ | $ 54,557 |
5. Loans, Allowance for Loan 37
5. Loans, Allowance for Loan Losses and Credit Quality (Details 8) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Specific Allocation | $ 237,551 | $ 92,600 | $ 68,500 |
6. Goodwill and Other Intangi38
6. Goodwill and Other Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated amortization expense | $ 4,024,659 | $ 3,751,964 |
Amortization expense for the core deposit intangible | $ 136,350 | $ 136,350 |
7. Fair Value (Details)
7. Fair Value (Details) - Fair Value Level 2 - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Assets: (market approach) | |||
U.S. GSE debt securities | $ 18,313,188 | $ 17,317,328 | $ 11,890,890 |
Agency MBS | 13,078,619 | 13,154,228 | 13,151,647 |
Other investments | 4,242,909 | 3,243,495 | 3,037,138 |
Total | $ 35,634,716 | $ 33,715,051 | $ 28,079,675 |
7. Fair Value (Details 1)
7. Fair Value (Details 1) - Fair Value Level 2 - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Assets: (market approach) | ||||
Residential mortgage servicing rights | [1] | $ 1,151,241 | $ 1,210,695 | $ 1,264,148 |
Impaired loans, net of related allowance | 25,050 | 508,872 | 983,790 | |
OREO | $ 343,928 | $ 394,000 | $ 409,000 | |
[1] | Represents MSRs at lower of cost or fair value, including MSRs deemed to be impaired and for which a valuation allowance was established to carry at fair value as of the balance sheet dates presented. |
7. Fair Value (Details 2)
7. Fair Value (Details 2) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |||
Carrying Amount | ||||||
Financial assets: (Dollars in Thousands) | ||||||
Cash and cash equivalents | $ 37,026 | $ 29,614 | $ 24,334 | |||
Securities held-to-maturity | 36,418 | 49,887 | 34,013 | |||
Securities available-for-sale | 35,635 | 33,715 | 28,080 | |||
Restricted equity securities | 1,943 | 2,756 | 2,610 | |||
Loans and loans held-for-sale | ||||||
Commercial & Industrial | 78,609 | 67,972 | 72,030 | |||
Commercial real estate | 207,207 | 199,136 | 183,577 | |||
Residential real estate - 1st lien | 163,489 | 165,243 | 160,599 | |||
Residential real estate - Jr. lien | 41,762 | 42,536 | 43,650 | |||
Consumer | 6,903 | 7,084 | 7,215 | |||
MSRs | 1,151 | [1] | 1,211 | [2] | 1,264 | [3] |
Accrued interest receivable | 1,746 | 1,819 | 1,558 | |||
Deposits | ||||||
Deposits, Other deposits | 479,131 | 470,002 | 448,752 | |||
Deposits, Brokered deposits | 54,176 | 34,733 | 20,231 | |||
Federal funds purchased and short-term borrowings | 10,000 | 30,000 | 30,000 | |||
Long-term borrowings | 3,550 | 1,550 | 350 | |||
Repurchase agreements | 28,863 | 30,423 | 26,837 | |||
Capital lease obligations | 435 | 483 | 515 | |||
Subordinated debentures | 12,887 | 12,887 | 12,887 | |||
Accrued interest payable | 125 | 73 | 61 | |||
Fair Value Level 1 | ||||||
Financial assets: (Dollars in Thousands) | ||||||
Cash and cash equivalents | 37,026 | 29,614 | 24,334 | |||
Securities held-to-maturity | 0 | 0 | 0 | |||
Securities available-for-sale | 0 | 0 | 0 | |||
Restricted equity securities | 0 | 0 | 0 | |||
Loans and loans held-for-sale | ||||||
Commercial & Industrial | 0 | 0 | 0 | |||
Commercial real estate | 0 | 0 | 0 | |||
Residential real estate - 1st lien | 0 | 0 | 0 | |||
Residential real estate - Jr. lien | 0 | 0 | 0 | |||
Consumer | 0 | 0 | 0 | |||
MSRs | 0 | [1] | 0 | [2] | 0 | [3] |
Accrued interest receivable | 0 | 0 | 0 | |||
Deposits | ||||||
Deposits, Other deposits | 0 | 0 | 0 | |||
Deposits, Brokered deposits | 0 | 0 | 0 | |||
Federal funds purchased and short-term borrowings | 0 | 0 | 0 | |||
Long-term borrowings | 0 | 0 | 0 | |||
Repurchase agreements | 0 | 0 | 0 | |||
Capital lease obligations | 0 | 0 | 0 | |||
Subordinated debentures | 0 | 0 | 0 | |||
Accrued interest payable | 0 | 0 | 0 | |||
Fair Value Level 2 | ||||||
Financial assets: (Dollars in Thousands) | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Securities held-to-maturity | 37,065 | 51,035 | 34,682 | |||
Securities available-for-sale | 35,635 | 33,715 | 28,080 | |||
Restricted equity securities | 1,943 | 2,756 | 2,610 | |||
Loans and loans held-for-sale | ||||||
Commercial & Industrial | 0 | 48 | 192 | |||
Commercial real estate | 0 | 601 | 896 | |||
Residential real estate - 1st lien | 25 | 941 | 1,931 | |||
Residential real estate - Jr. lien | 0 | 109 | 252 | |||
Consumer | 0 | 0 | 0 | |||
MSRs | 1,341 | [1] | 1,302 | [2] | 1,333 | [3] |
Accrued interest receivable | 1,746 | 1,819 | 1,558 | |||
Deposits | ||||||
Deposits, Other deposits | 478,412 | 469,323 | 449,061 | |||
Deposits, Brokered deposits | 54,177 | 34,745 | 20,237 | |||
Federal funds purchased and short-term borrowings | 10,000 | 30,000 | 30,000 | |||
Long-term borrowings | 3,205 | 1,376 | 328 | |||
Repurchase agreements | 28,863 | 30,423 | 26,837 | |||
Capital lease obligations | 435 | 483 | 515 | |||
Subordinated debentures | 12,844 | 12,849 | 12,853 | |||
Accrued interest payable | 125 | 73 | 61 | |||
Fair Value Level 3 | ||||||
Financial assets: (Dollars in Thousands) | ||||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Securities held-to-maturity | 0 | 0 | 0 | |||
Securities available-for-sale | 0 | 0 | 0 | |||
Restricted equity securities | 0 | 0 | 0 | |||
Loans and loans held-for-sale | ||||||
Commercial & Industrial | 79,311 | 68,727 | 73,096 | |||
Commercial real estate | 208,632 | 201,560 | 188,112 | |||
Residential real estate - 1st lien | 166,085 | 166,858 | 162,930 | |||
Residential real estate - Jr. lien | 42,199 | 42,948 | 44,080 | |||
Consumer | 7,147 | 7,371 | 7,533 | |||
MSRs | 0 | [1] | 0 | [2] | 0 | [3] |
Accrued interest receivable | 0 | 0 | 0 | |||
Deposits | ||||||
Deposits, Other deposits | 0 | 0 | 0 | |||
Deposits, Brokered deposits | 0 | 0 | 0 | |||
Federal funds purchased and short-term borrowings | 0 | 0 | 0 | |||
Long-term borrowings | 0 | 0 | 0 | |||
Repurchase agreements | 0 | 0 | 0 | |||
Capital lease obligations | 0 | 0 | 0 | |||
Subordinated debentures | 0 | 0 | 0 | |||
Accrued interest payable | 0 | 0 | 0 | |||
Fair Value | ||||||
Financial assets: (Dollars in Thousands) | ||||||
Cash and cash equivalents | 37,026 | 29,614 | 24,334 | |||
Securities held-to-maturity | 37,065 | 51,035 | 34,682 | |||
Securities available-for-sale | 35,635 | 33,715 | 28,080 | |||
Restricted equity securities | 1,943 | 2,756 | 2,610 | |||
Loans and loans held-for-sale | ||||||
Commercial & Industrial | 79,311 | 68,775 | 73,288 | |||
Commercial real estate | 208,632 | 202,161 | 189,008 | |||
Residential real estate - 1st lien | 166,110 | 167,799 | 164,861 | |||
Residential real estate - Jr. lien | 42,199 | 43,057 | 44,332 | |||
Consumer | 7,147 | 7,371 | 7,533 | |||
MSRs | 1,341 | [1] | 1,302 | [2] | 1,333 | [3] |
Accrued interest receivable | 1,746 | 1,819 | 1,558 | |||
Deposits | ||||||
Deposits, Other deposits | 478,412 | 469,323 | 449,061 | |||
Deposits, Brokered deposits | 54,177 | 34,745 | 20,237 | |||
Federal funds purchased and short-term borrowings | 10,000 | 30,000 | 30,000 | |||
Long-term borrowings | 3,205 | 1,376 | 328 | |||
Repurchase agreements | 28,863 | 30,423 | 26,837 | |||
Capital lease obligations | 435 | 483 | 515 | |||
Subordinated debentures | 12,844 | 12,849 | 12,853 | |||
Accrued interest payable | $ 125 | $ 73 | $ 61 | |||
[1] | Reported fair value represents all MSRs for loans serviced by the Company at June 30, 2017, regardless of carrying amount. | |||||
[2] | Reported fair value represents all MSRs for loans serviced by the Company at December 31, 2016, regardless of carrying amount. | |||||
[3] | Reported fair value represents all MSRs for loans serviced by the Company at June 30, 2016, regardless of carrying amount. |
8. Loan Servicing (Details)
8. Loan Servicing (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Balance at beginning of year | $ 1,210,695 | $ 1,293,079 | $ 1,293,079 |
Mortgage servicing rights capitalized | 54,603 | 98,054 | 176,705 |
Mortgage servicing rights amortized | (114,057) | (134,499) | (266,603) |
Change in valuation allowance | 0 | 7,514 | 7,514 |
Balance at end of period | $ 1,151,241 | $ 1,264,148 | $ 1,210,695 |
10. Subsequent Event (Details)
10. Subsequent Event (Details) | Jun. 30, 2017USD ($) |
Subsequent Event [Member] | |
Dividend accrued | $ 862,376 |