Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Entity [Abstract] | ||
Entity Registrant Name | Security Federal Corporation | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Central Index Key | 818,677 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 2,953,896 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Cash and Cash Equivalents | $ 20,109,901 | $ 10,319,624 |
Certificates of Deposit with Other Banks | 1,950,010 | 1,950,010 |
Investment and Mortgage-Backed Securities: | ||
Available For Sale (AFS) | 373,752,293 | 384,973,906 |
Investment and Mortgage-Backed Securities, Held to Maturity | 22,292,027 | 27,080,970 |
Total Investments And Mortgage-Backed Securities | 396,044,320 | 412,054,876 |
Loans Receivable, Net: | ||
Held For Sale | 737,098 | 3,051,950 |
Loans and Leases Receivable, Net Amount | 423,242,690 | 387,441,247 |
Total Loans Receivable, Net | 423,979,788 | 390,493,197 |
Accrued Interest Receivable: | ||
Loans | 1,197,332 | 1,067,657 |
Mortgage-Backed Securities | 577,644 | 589,000 |
Investment Securities | 1,750,315 | 1,699,961 |
Total Accrued Interest Receivable | 3,525,291 | 3,356,618 |
Premises and Equipment, Net | 24,060,662 | 22,797,844 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 2,485,700 | 2,931,900 |
Other Real Estate Owned (OREO) | 858,242 | 1,115,671 |
Bank Owned Life Insurance (BOLI) | 21,102,893 | 18,797,893 |
Goodwill | 1,199,754 | 1,199,754 |
Other Assets | 6,918,380 | 3,795,212 |
Total Assets | 902,234,941 | 868,812,599 |
Liabilities: | ||
Deposit Accounts | 750,998,309 | 702,106,619 |
Advance Payments By Borrowers For Taxes And Insurance | 633,625 | 269,761 |
Advances From FHLB | 39,000,000 | 51,680,000 |
Other Borrowings | 12,652,270 | 11,307,161 |
Junior Subordinated Debentures | 5,155,000 | |
Junior Subordinated Debentures | 5,155,000 | 5,155,000 |
Notes Payable | 3,900,000 | 8,500,000 |
Senior Convertible Debentures | 6,064,000 | |
Senior Convertible Debentures | 6,064,000 | 6,064,000 |
Other Liabilities | 6,945,324 | 5,806,604 |
Total Liabilities | 825,348,528 | 790,889,145 |
Shareholders' Equity: | ||
Common Stock, $.01 Par Value; Authorized 5,000,000 Shares; Issued and Outstanding Shares, 3,154,357 and 2,953,424, Respectively, at June 30, 2018 and 3,153,907 and 2,952,974, Respectively, at December 31, 2017 | 31,544 | 31,539 |
Additional Paid-In Capital | 12,223,149 | 12,212,844 |
Treasury Stock, at Cost (200,933 Shares) | (4,330,712) | (4,330,712) |
Accumulated Other Comprehensive Income (AOCI) | (2,364,215) | 2,932,122 |
Retained Earnings | 71,326,647 | 67,077,661 |
Total Shareholders' Equity | 76,886,413 | 77,923,454 |
Total Liabilities and Shareholders' Equity | $ 902,234,941 | $ 868,812,599 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | $ 376,910,106 | $ 380,374,568 |
Fair Value of Investment And Mortgage-Backed Securities Held To Maturity | 21,700,031 | 27,054,934 |
Allowance For Loan Losses | $ 8,602,078 | $ 8,221,618 |
Serial Preferred Stock Par Value Per Share | $ 0.01 | $ 0.01 |
Serial Preferred Stock Shares Authorized | 200,000 | 200,000 |
Serial Preferred Stock Shares Issued | 0 | 22,000 |
Serial Preferred Stock Shares Outstanding | 0 | 22,000 |
Common Stock Par Value Per Share | $ 0.01 | $ 0.01 |
Common Stock Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock Shares Issued | 3,154,357 | 3,153,907 |
Common Stock, Shares, Outstanding | 2,953,424 | 2,952,974 |
Treasury Stock Shares Held | 200,933 | 200,933 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Income: | ||||
Loans | $ 5,890,317 | $ 5,146,669 | $ 16,965,442 | $ 14,849,109 |
Mortgage-Backed Securities | 1,351,134 | 1,274,753 | 3,943,521 | 3,552,887 |
Investment Securities | 1,239,798 | 1,324,104 | 3,357,698 | 3,729,992 |
Other | 25,228 | 6,295 | 42,384 | 34,804 |
Total Interest Income | 8,506,477 | 7,751,821 | 24,309,045 | 22,166,792 |
Interest Expense: | ||||
NOW and Money Market Accounts | 325,427 | 151,874 | 774,637 | 426,080 |
Statement Savings Accounts | 14,120 | 10,726 | 38,420 | 30,000 |
Certificate Accounts | 706,590 | 503,505 | 1,856,348 | 1,401,910 |
FHLB Advances and Other Borrowed Money | 157,148 | 164,544 | 513,018 | 409,655 |
Interest Expense, Other | 51,856 | 105,762 | 190,790 | 328,613 |
Senior Convertible Debentures | 121,280 | 121,396 | 363,840 | 364,756 |
Junior Subordinated Debentures | 53,218 | 38,975 | 147,234 | 110,863 |
Total Interest Expense | 1,429,639 | 1,096,782 | 3,884,287 | 3,071,877 |
Net Interest Income | 7,076,838 | 6,655,039 | 20,424,758 | 19,094,915 |
Provision For Loan Losses | 150,000 | 100,000 | 150,000 | 100,000 |
Net Interest Income After Provision For Loan Losses | 6,926,838 | 6,555,039 | 20,274,758 | 18,994,915 |
Non-Interest Income: | ||||
Gain on Sale of Investment Securities | 0 | 79,363 | 436,304 | 707,902 |
Gain on Sale of Loans | 345,396 | 373,636 | 999,045 | 894,053 |
Service Fees on Deposit Accounts | 262,821 | 274,717 | 770,493 | 776,469 |
Commissions From Insurance Agency | 196,817 | 172,074 | 525,153 | 451,311 |
Trust Income | 249,000 | 186,000 | 725,000 | 554,000 |
BOLI Income | 135,000 | 788,133 | 405,000 | 1,028,133 |
Grant Revenue | 318,102 | 0 | 318,102 | 0 |
Check card revenue | 320,708 | 282,686 | 966,365 | 838,302 |
Other | 241,837 | 205,524 | 712,785 | 542,250 |
Total Non-Interest Income | 2,069,681 | 2,362,133 | 5,858,247 | 5,792,420 |
Non-Interest Expense: | ||||
Compensation and Employee Benefits | 4,032,245 | 3,872,102 | 11,683,664 | 10,916,386 |
Occupancy | 586,527 | 569,024 | 1,677,970 | 1,661,661 |
Advertising | 181,663 | 120,033 | 455,753 | 391,742 |
Depreciation and Maintenance of Equipment | 575,750 | 569,839 | 1,673,470 | 1,541,460 |
Federal Deposit Insurance Corporation (FDIC) Insurance Premiums | 72,837 | 64,518 | 206,218 | 168,707 |
Net Cost (Benefit) of Operation of OREO | (203,104) | 105,172 | (362,864) | (96,730) |
Other | 1,171,664 | 1,268,449 | 3,842,576 | 3,681,552 |
Total Non-Interest Expense | 6,417,582 | 6,569,137 | 19,176,787 | 18,264,778 |
Income Before Income Taxes | 2,578,937 | 2,348,035 | 6,956,218 | 6,522,557 |
Provision For Income Taxes | 471,245 | 445,133 | 1,298,455 | 1,513,090 |
Net Income | 2,107,692 | 1,902,902 | 5,657,763 | 5,009,467 |
Net Income | $ 2,107,692 | $ 1,902,902 | $ 5,657,763 | $ 5,009,467 |
Net Income Per Common Share (Basic) | $ 0.71 | $ 0.65 | $ 1.92 | $ 1.70 |
Net Income Per Common Share (Diluted) | 0.68 | 0.61 | 1.82 | 1.61 |
Cash Dividend Per Share on Common Stock | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.27 |
Weighted Average Shares Outstanding (Basic) | 2,953,424 | 2,945,474 | 2,953,340 | 2,945,215 |
Weighted Average Shares Outstanding (Diluted) | 3,256,624 | 3,252,436 | 3,256,540 | 3,251,666 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Income | $ 2,107,692 | $ 1,902,902 | $ 5,657,763 | $ 5,009,467 |
Other Comprehensive Income: | ||||
Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, Net of Tax | (23,019) | (64,238) | (81,884) | |
Reclassification Adjustment for Gains Included in Net Income, Net of Taxes of $17,156 at June 30, 2017 | 0 | (49,205) | (327,228) | (438,899) |
Amortization of Unrealized Gains on AFS Securities Transferred to HTM | (17,998) | |||
Unrealized Holding (Losses) Gains on Securities AFS, Net of Taxes of $(289,726) and $1,392,397 at June 30, 2018 and 2017, Respectively | 1,888,549 | 64,802 | 5,515,962 | (3,080,485) |
Other Comprehensive (Loss) Income | (1,906,547) | (137,026) | (5,907,428) | 2,559,702 |
Comprehensive Income | $ 201,145 | $ 1,765,876 | $ (249,665) | $ 7,569,169 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income, Amortization on Unrealized Gain on AFS Transfer to HTM, Tax | $ (5,999) | $ (14,084) | $ (23,718) | $ (50,102) |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | (618,602) | (39,600) | ||
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax | (1,804,885) | 1,892,760 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax | $ 0 | $ 30,158 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 109,076 | $ 269,003 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Nonvested restricted stock [Member] | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Retained Earnings |
Balance at at Dec. 31, 2016 | $ 71,112,274 | $ 31,464 | $ (25,358) | $ 12,036,744 | $ (4,330,712) | $ 1,180,086 | $ 62,220,050 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 5,009,467 | 5,009,467 | |||||
Other Comprehensive Income, Net Of Tax: | 2,559,702 | 2,559,702 | |||||
Proceeds from Stock Options Exercised | 0 | ||||||
Cash Dividends on Common Stock | (795,277) | (795,277) | |||||
Balance at at Sep. 30, 2017 | 77,911,524 | 31,464 | 12,036,744 | (4,330,712) | 3,739,788 | 66,434,240 | |
Nonvested Restricted Stock | 0 | ||||||
Balance at at Dec. 31, 2017 | 77,923,454 | 31,539 | 12,212,844 | (4,330,712) | 2,932,122 | 67,077,661 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 5,657,763 | 5,657,763 | |||||
Other Comprehensive Income, Net Of Tax: | (5,907,428) | (5,907,428) | |||||
Proceeds from Stock Options Exercised | 10,310 | ||||||
Cash Dividends on Common Stock | (797,686) | (797,686) | |||||
Balance at at Sep. 30, 2018 | $ 76,886,413 | $ 31,544 | $ 12,223,149 | $ (4,330,712) | $ (2,364,215) | $ 71,326,647 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 5,657,763 | $ 5,009,467 |
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: | ||
Depreciation Expense | 1,062,542 | 1,101,900 |
Stock Option Compensation Expense | 0 | 25,358 |
Discount Accretion and Premium Amortization | 4,271,865 | 4,190,700 |
Provisions for Losses on Loans | 150,000 | 100,000 |
Earnings on BOLI | (405,000) | (374,000) |
Proceeds from Insurance Settlement, Operating Activities | 0 | |
Payments for (Proceeds from) Life Insurance Policies | (654,133) | |
Gain on Sales of Loans | (999,045) | (894,053) |
Gain on Sales of Mortgage-Backed Securities (MBS) | (181,034) | (250,149) |
Gain on Sales of Investment Securities | (255,270) | (457,752) |
Gain (Loss) on Disposition of Property Plant Equipment | 0 | (1,900) |
Gain on Sales of OREO | (547,685) | (321,687) |
Write Down on OREO | 56,000 | 68,121 |
Amortization of Deferred Loan Costs | 73,163 | 127,058 |
Proceeds From Sale of Loans Held For Sale | 38,316,435 | 33,301,781 |
Origination of Loans Held For Sale | (35,002,538) | (29,434,231) |
(Increase) Decrease in Accrued Interest Receivable: | ||
Loans | (129,675) | 102,016 |
MBS | 11,356 | 17,509 |
Investment Securities | (50,354) | (308,595) |
Increase in Advance Payments By Borrowers | 363,864 | 408,911 |
Other, Net | (134,725) | 594,400 |
Net Cash Provided By Operating Activities | 12,257,662 | 12,350,721 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of MBS AFS | (41,314,618) | (42,875,234) |
Proceeds from Payments and Maturities of MBS AFS | 28,033,612 | 28,487,010 |
Proceeds from Payments and Maturities of MBS HTM | 2,000,000 | |
Proceeds from Maturities, Prepayments and Calls of Long-term Investments | 1,000,000 | |
Proceeds from (Payments for) in Interest-bearing Deposits in Banks | 0 | 1,095,000 |
Proceeds from Maturities, Prepayments and Calls of Mortgage Backed Securities (MBS) | 2,536,945 | 2,836,011 |
Purchase of Investment Securities AFS | (38,965,898) | (75,688,312) |
Proceeds from Sale, Maturity and Collection of Investments | 23,557,323 | 17,854,087 |
Proceeds From Sale of Investment Securities Available For Sale | 11,563,456 | 27,825,020 |
Payments to Acquire Held-to-maturity Securities | 0 | 3,997,750 |
Proceeds From Sale Of Mortgage-Backed Securities Available For Sale | 17,007,024 | 19,003,897 |
Purchase of FHLB Stock | (4,194,300) | (5,129,700) |
Redemption of FHLB Stock | 4,640,500 | 5,432,500 |
Payment to Acquire Life Insurance Policy, Investing Activities | (1,900,000) | (2,000,000) |
Proceeds from Insurance Settlement, Investing Activities | 0 | 1,463,285 |
Increase (Decrease) In Loans Receivable | (36,340,156) | (19,680,925) |
Proceeds From Sale of OREO | 1,064,664 | 1,558,891 |
Purchase and Improvement of Premises and Equipment | (2,325,360) | (2,769,640) |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 1,900 |
Net Cash Used By Investing Activities | (34,636,808) | (45,583,960) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase in Deposit Accounts | 48,891,690 | 47,510,082 |
Proceeds from FHLB Advances | 160,083,000 | 157,576,000 |
Repayment of FHLB Advances | (172,763,000) | (164,971,000) |
Proceeds from (Repayments of) Other Debt | 1,345,109 | 3,017,664 |
Repayments of Notes Payable | (4,600,000) | (3,300,000) |
Early Repayment of Senior Debt | 0 | (20,000) |
Proceeds from Stock Options Exercised | 10,310 | 0 |
Dividends to Common Stock Shareholders | (797,686) | (795,277) |
Net Cash Provided By Financing Activities | 32,169,423 | 39,017,469 |
Net Increase in Cash and Cash Equivalents | 9,790,277 | 5,784,230 |
Cash and Cash Equivalents at Beginning of Period | 10,319,624 | 9,374,549 |
Cash and Cash Equivalents at End of Period | 20,109,901 | 15,158,779 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 3,719,123 | 2,937,283 |
Income Taxes | 992,273 | 1,162,000 |
Supplemental Schedule of Non Cash Transactions: | ||
Transfers From Loans Receivable to OREO | $ 315,550 | $ 491,748 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and accounting principles generally accepted in the United States of America ("U.S. GAAP"); therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows. Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods. Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited consolidated financial statements appearing in Security Federal Corporation’s (the “Company”) 2017 Annual Report to Shareholders which was filed as an exhibit to our Annual Report on Form 10-K for the year ended December 31, 2017 (“2017 10-K”) when reviewing interim financial statements. |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Critical Accounting Policies
Critical Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies | Critical Accounting Policies The Company has adopted various accounting policies, which govern the application of accounting principles generally accepted in the United States in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to the audited consolidated financial statements at December 31, 2017 included in our 2017 Annual Report to Shareholders. Certain accounting policies involve significant judgments and assumptions by management, which have a material impact on the carrying value of certain assets and liabilities, and, as such, have a greater possibility of producing results that could be materially different than originally reported. We consider these accounting policies to be critical accounting policies. The judgments and assumptions we use are based on historical experience and other factors, which we believe to be reasonable under the circumstances. Because of the nature of the judgments and assumptions we make, actual results could differ from these judgments and estimates which could have a material impact on our carrying values of assets and liabilities and our results of operations. The Company believes the allowance for loan losses is a critical accounting policy that requires the most significant judgments and estimates used in preparation of the consolidated financial statements. The impact of an unexpected and sudden large loss could deplete the allowance and potentially require increased provisions to replenish the allowance, which would negatively affect earnings. The Company provides for loan losses using the allowance method. Accordingly, all loan losses are charged to the related allowance and all recoveries are credited to the allowance for loan losses. Additions to the allowance for loan losses are provided by charges to operations based on various factors, which, in management’s judgment, deserve current recognition in estimating possible losses. Such factors considered by management include the fair value of the underlying collateral, stated guarantees by the borrower (if applicable), the borrower’s ability to repay from other economic resources, growth and composition of the loan portfolio, the relationship of the allowance for loan losses to the outstanding loans, loss experience, delinquency trends, and general economic conditions. Management evaluates the carrying value of the loans periodically and the allowance is adjusted accordingly. 3. Critical Accounting Policies, Continued While management uses the best information available to make evaluations, future adjustments may be necessary if economic conditions differ substantially from the assumptions used in making these evaluations. The allowance for loan losses is subject to periodic evaluations by our bank regulatory agencies, including the Board of Governors of the Federal Reserve System ("Federal Reserve"), the FDIC and the South Carolina Board of Financial Institutions, that may require adjustments to be made to the allowance based upon the information that is available at the time of their examination. The Company values impaired loans at the loan’s fair value if it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement at the present value of expected cash flows, the market price of the loan, if available, or the value of the underlying collateral. Expected cash flows are required to be discounted at the loan’s effective interest rate. When the ultimate collectibility of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. When this doubt does not exist, cash receipts are applied under the contractual terms of the loan agreement first to interest and then to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to interest income to the extent that any interest has been foregone. Further cash receipts are recorded as recoveries of any amounts previously charged off. The Company uses assumptions and estimates in determining income taxes payable or refundable for the current year, deferred income tax liabilities and assets for events recognized differently in its financial statements and income tax returns, and income tax expense. Determining these amounts requires analysis of certain transactions and interpretation of tax laws and regulations. The Company exercises considerable judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments and estimates are reevaluated on a continual basis as regulatory and business factors change. No assurance can be given that either the tax returns submitted by us or the income tax reported on the Consolidated Financial Statements will not be adjusted by either adverse rulings by the United States Tax Court, changes in the tax code, or assessments made by the Internal Revenue Service. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Three Months Ended September 30, 2018 2017 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 2,107,692 2,953,424 $ 0.71 $ 1,902,902 2,945,474 $ 0.65 Effect of Dilutive Securities: Stock Options — — — — 3,762 (0.01 ) Senior Convertible Debentures 90,960 303,200 (0.03 ) 75,266 303,200 (0.02) Diluted EPS $ 2,198,652 3,256,624 $ 0.68 $ 1,978,168 3,252,436 $ 0.61 4. Earnings Per Common Share, Continued Nine Months Ended September 30, 2018 2017 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 5,657,763 2,953,340 $ 1.92 $ 5,009,467 2,945,215 $ 1.70 Effect of Dilutive Securities: Stock Options — — — — 3,251 (0.01 ) Senior Convertible Debentures 272,880 303,200 (0.10) 226,149 303,200 (0.08) Diluted EPS $ 5,930,643 3,256,540 $ 1.82 $ 5,235,616 3,251,666 $ 1.61 Earnings Per Common Share Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of options outstanding under the Company’s stock option plan is reflected in diluted EPS by application of the treasury stock method. There were no stock options outstanding at September 30, 2018 . All of the options outstanding at September 30, 2017 had an exercise price below the average market price during the three and nine months ended September 30, 2017 . Therefore, these options were considered to be dilutive to EPS in those periods. Diluted EPS also assumes the convertible debentures were converted into 303,200 shares of common stock as of the beginning of the period. The related interest expense recorded during the period is added back to the EPS numerator while the underlying shares are added to the denominator. The following tables include a summary of the Company's basic and diluted EPS for the periods indicated. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Stock-Based Compensation Certain officers and directors of the Company participate in incentive and non-qualified stock option plans. Options are granted at exercise prices not less than the fair value of the Company’s common stock on the date of the grant. The following is a summary of the activity under the Company’s stock option plans for the periods presented: Three Months Ended September 30, 2018 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance, Beginning of Period 1,650 $22.91 19,500 $23.49 Options Forfeited (1,650 ) 22.91 (1,000 ) 24.61 Balance, End of Period — — 18,500 $23.43 Nine Months Ended September 30, 2018 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance, Beginning of Period 4,500 $22.91 21,500 $23.57 Options Exercised (450 ) 22.91 — — Options Forfeited (4,050 ) 22.91 (3,000 ) 24.43 Balance, End of Period — — 18,500 $23.43 Options Exercisable — 18,500 Options Available For Grant 50,000 50,000 At September 30, 2018 , the Company had no options outstanding. |
Investment and Mortgage-Backed
Investment and Mortgage-Backed Securities, Available for Sale | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment and Mortgage-Backed Securities, Available for Sale | Investment and Mortgage-Backed Securities, Available For Sale The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment and mortgage-backed securities available for sale at the dates indicated were as follows: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Student Loan Pools $ 12,957,559 $ 33,076 $ 9,096 $ 12,981,539 Small Business Administration (“SBA”) Bonds 118,275,224 227,093 1,277,257 117,225,060 Tax Exempt Municipal Bonds 60,381,306 897,641 797,693 60,481,254 Taxable Municipal Bonds 3,007,036 — 66,401 2,940,635 Mortgage-Backed Securities 182,045,631 811,987 2,977,163 179,880,455 State Tax Credit 88,350 — — 88,350 Equity Securities 155,000 — — 155,000 Total Available For Sale $ 376,910,106 $ 1,969,797 $ 5,127,610 $ 373,752,293 December 31, 2017 Amortized Cost Gross Gross Fair Value Student Loan Pools $ 8,522,043 $ 1,288 $ 1,546 $ 8,521,785 SBA Bonds 123,324,802 1,113,160 189,518 124,248,444 Tax Exempt Municipal Bonds 59,623,185 2,789,233 56,851 62,355,567 Taxable Municipal Bonds 2,016,833 — 19,703 1,997,130 Mortgage-Backed Securities 186,732,705 1,936,847 973,572 187,695,980 Equity Securities 155,000 — — 155,000 Total Available For Sale $ 380,374,568 $ 5,840,528 $ 1,241,190 $ 384,973,906 Student Loan Pools are typically 97% guaranteed by the United States government while SBA bonds are 100% backed by the full faith and credit of the United States government. Included in the tables above and below in mortgage-backed securities are Government National Mortgage Association ("GNMA") mortgage-backed securities, which are also backed by the full faith and credit of the United States government. At September 30, 2018 , AFS GNMA mortgage-backed securities had an amortized cost and fair value of $82.1 million and $81.5 million , respectively, compared to an amortized cost and fair value of $101.3 million and $102.1 million , respectively, at December 31, 2017 . Also included in mortgage-backed securities in the tables above and below are private label collateralized mortgage obligation ("CMO") securities, which are issued by non-governmental real estate mortgage investment conduits and are not backed by the full faith and credit of the United States government. At September 30, 2018 the Bank held AFS private label CMO mortgage-backed securities with an amortized cost and fair value of $29.9 million and $29.8 million , respectively, compared to an amortized cost and fair value of $26.9 million at December 31, 2017 . 6. Investment and Mortgage-Backed Securities, Available For Sale, Continued The amortized cost and fair value of investment and mortgage-backed securities available for sale at September 30, 2018 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without call or prepayment penalties. Since mortgage-backed securities are not due at a single maturity date, they are disclosed separately, rather than allocated over the maturity groupings set forth in the table below. September 30, 2018 Investment Securities: Amortized Cost Fair Value One Year or Less $ 1,125,559 $ 1,122,015 After One – Five Years 11,035,958 10,987,529 After Five – Ten Years 42,005,204 41,714,850 More Than Ten Years 140,697,754 140,047,444 Mortgage-Backed Securities 182,045,631 179,880,455 Total Available For Sale $ 376,910,106 $ 373,752,293 At September 30, 2018 the amortized cost and fair value of investment and mortgage-backed securities available for sale pledged as collateral for certain deposit accounts, FHLB advances and other borrowings were $118.9 million and $118 million , respectively, compared to an amortized cost and fair value of $99.2 million and $100.5 million , respectively, at December 31, 2017 . The Bank received $28.6 million and $46.8 million in gross proceeds from sales of available for sale securities during the nine months ended September 30, 2018 and 2017 , respectively. As a result, the Bank recognized gross gains of $503,000 and $870,000 , respectively, with $67,000 and $162,000 gross losses recognized for the same periods. The following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that the individual available for sale securities were in a continuous unrealized loss position at the dates indicated. September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Student Loan Pools $ 2,057,695 $ 9,096 $ — $ — $ 2,057,695 $ 9,096 SBA Bonds 79,678,260 964,997 14,490,089 312,260 94,168,349 1,277,257 Tax Exempt Municipal Bonds 32,933,452 492,761 6,384,426 304,932 39,317,878 797,693 Taxable Municipal Bonds 1,969,285 32,952 971,350 33,449 2,940,635 66,401 Mortgage-Backed Securities 75,412,165 1,211,586 56,908,117 1,765,577 132,320,282 2,977,163 $ 192,050,857 $ 2,711,392 $ 78,753,982 $ 2,416,218 $ 270,804,839 $ 5,127,610 December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Student Loan Pools $ 7,556,014 $ 1,546 $ — $ — $ 7,556,014 $ 1,546 SBA Bonds 24,433,422 151,459 5,588,532 38,059 30,021,954 189,518 Tax Exempt Municipal Bonds 4,406,162 13,852 4,328,229 42,999 8,734,391 56,851 Taxable Municipal Bond 1,997,130 19,703 — — 1,997,130 19,703 Mortgage-Backed Securities 62,574,910 624,772 23,612,359 348,800 86,187,269 973,572 $ 100,967,638 $ 811,332 $ 33,529,120 $ 429,858 $ 134,496,758 $ 1,241,190 6. Investment and Mortgage-Backed Securities, Available For Sale, Continued Securities classified as available for sale are recorded at fair market value. At September 30, 2018 and December 31, 2017 , 47.1% and 34.6% of the unrealized losses, representing 64 and 30 individual securities, respectively, consisted of securities in a continuous loss position for 12 months or more. The Company has the ability and intent to hold these securities until such time as the value recovers or the securities mature. The Company believes, based on industry analyst reports and credit ratings, that the deterioration in value is attributable to changes in market interest rates and is not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary. The Company reviews its investment securities portfolio at least quarterly and more frequently when economic conditions warrant, assessing whether there is any indication of other-than-temporary impairment (“OTTI”). Factors considered in the review include estimated future cash flows, length of time and extent to which market value has been less than cost, the financial condition and near term prospects of the issuer, and our intent and ability to retain the security to allow for an anticipated recovery in market value. If the review determines that there is OTTI, then an impairment loss is recognized in earnings equal to the entire difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made, or the Company may recognize a portion in other comprehensive income. The fair value of investments on which OTTI is recognized then becomes the new cost basis of the investment. There was no OTTI recognized during the nine months ended September 30, 2018 . |
Investment and Mortgage-Backe_2
Investment and Mortgage-Backed Securities, Held to Maturity | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment and Mortgage-Backed Securities, Held to Maturity | 7. Investment and Mortgage-Backed Securities, Held to Maturity The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of held to maturity securities at the dates indicated below were as follows: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Federal Home Loan Mortgage Corporation ("FHLMC") Bond $ 998,434 $ — $ 32,813 $ 965,621 Mortgage-Backed Securities (1) 21,293,593 69,733 628,916 20,734,410 Total Held To Maturity $ 22,292,027 $ 69,733 $ 661,729 $ 21,700,031 December 31, 2017 Amortized Cost Gross Gross Fair Value FHLB Bonds $ 2,000,000 $ — $ 2,984 $ 1,997,016 FHLMC Bond 998,102 — 12,588 985,514 Mortgage-Backed Securities (1) 24,082,868 120,843 131,307 24,072,404 Total Held To Maturity $ 27,080,970 $ 120,843 $ 146,879 $ 27,054,934 (1) COMPRISED OF MORTGAGE-BACKED SECURITIES OF GSEs OR GNMA The FHLB, FHLMC and the Federal National Mortgage Association ("FNMA") are government sponsored enterprises ("GSEs") and the securities and bonds issued by GSEs are not backed by the full faith and credit of the United States government. At September 30, 2018 , the Bank held an amortized cost and fair value of $13.9 million and $13.5 million , respectively, in GNMA mortgage-backed securities classified as held to maturity, which are included in the table above, compared to an amortized cost and fair value of $15.9 million and $15.9 million , respectively, at December 31, 2017 . The Company has not invested in any private label mortgage-backed securities classified as held to maturity. At September 30, 2018 , the amortized cost and fair value of mortgage-backed securities held to maturity that were pledged as collateral for certain deposit accounts, FHLB advances and other borrowings were $20.4 million and $19.9 million , respectively, compared to an amortized cost and fair value of $22.3 million at December 31, 2017 . 7. Investment and Mortgage-Backed Securities, Held to Maturity, Continued The amortized cost and fair value of investment and mortgage-backed securities held to maturity at September 30, 2018 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without call or prepayment penalties. Since mortgage-backed securities are not due at a single maturity date, they are disclosed separately, rather than allocated over the maturity groupings set forth in the table below. September 30, 2018 Investment Securities: Amortized Cost Fair Value One – Five Years $ 998,434 $ 965,621 Mortgage-Backed Securities 21,293,593 20,734,410 Total Held to Maturity $ 22,292,027 $ 21,700,031 The following tables show gross unrealized losses, fair value, and length of time that individual held to maturity securities have been in a continuous unrealized loss position at the dates indicated below. September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses FHLMC Bond $ — $ — $ 965,621 $ 32,813 $ 965,621 $ 32,813 Mortgage-Backed Securities (1) 11,070,475 321,204 8,067,582 307,712 19,138,057 628,916 $ 11,070,475 $ 321,204 $ 9,033,203 $ 340,525 $ 20,103,678 $ 661,729 (1) COMPRISED OF MORTGAGE-BACKED SECURITIES OF GSEs OR GNMA December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized FHLB Bond $ 1,997,016 $ 2,984 $ — $ — $ 1,997,016 $ 2,984 FHLMC Bond 985,514 12,588 — — 985,514 12,588 Mortgage-Backed Securities (1) 17,645,676 103,387 1,284,971 27,920 18,930,647 131,307 $ 20,628,206 $ 118,959 $ 1,284,971 $ 27,920 $ 21,913,177 $ 146,879 (1) COMPRISED OF MORTGAGE-BACKED SECURITIES OF GSEs OR GNMA The Company’s held to maturity portfolio is recorded at amortized cost. The Company has the ability and intent to hold these securities to maturity. |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2018 | |
Loans Receivable, Net [Abstract] | |
Financing Receivables [Text Block] | Loans Receivable, Net Loans receivable, net, consisted of the following as of the dates indicated below: September 30, 2018 December 31, 2017 Residential Real Estate Loans $ 85,193,491 $ 81,255,167 Consumer Loans 57,962,835 56,761,695 Commercial Business Loans 27,407,959 26,777,893 Commercial Real Estate Loans 267,568,254 237,814,628 Total Loans Held For Investment 438,132,539 402,609,383 Loans Held For Sale 737,098 3,051,950 Total Loans Receivable, Gross $ 438,869,637 $ 405,661,333 Less: Allowance For Loan Losses 8,602,078 8,221,618 Loans in Process 6,048,974 6,804,533 Deferred Loan Fees 238,797 141,985 14,889,849 15,168,136 Total Loans Receivable, Net $ 423,979,788 $ 390,493,197 The Company uses a risk based approach based on the following credit quality measures when analyzing the loan portfolio: pass, caution, special mention, and substandard. These indicators are used to rate the credit quality of loans for the purposes of determining the Company’s allowance for loan losses. Pass loans are loans that are performing and are deemed adequately protected by the net worth of the borrower or the underlying collateral value. These loans are considered to have the least amount of risk in terms of determining the allowance for loan losses. Loans that are graded as substandard are considered to have the most risk. These loans typically have an identified weakness or weaknesses and are inadequately protected by the net worth of the borrower or collateral value. All loans 90 days or more past due are automatically classified in this category. The caution and special mention categories fall in between the pass and substandard grades and consist of loans that do not currently expose the Company to sufficient risk to warrant adverse classification but possess weaknesses. The tables below summarize the balance within each risk category by loan type, excluding loans held for sale, at September 30, 2018 and December 31, 2017 . September 30, 2018 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 76,083,485 $ 3,558,567 $ 1,308,296 $ 4,243,143 $ 85,193,491 Consumer 49,309,083 5,848,589 479,473 2,325,690 57,962,835 Commercial Business 22,569,651 4,135,663 359,785 342,860 27,407,959 Commercial Real Estate 190,029,320 47,269,195 20,101,394 10,168,345 267,568,254 Total $ 337,991,539 $ 60,812,014 $ 22,248,948 $ 17,080,038 $ 438,132,539 December 31, 2017 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 73,225,237 $ 2,352,536 $ 1,384,222 $ 4,293,172 $ 81,255,167 Consumer 52,249,017 1,862,340 344,361 2,305,977 56,761,695 Commercial Business 23,396,550 2,066,749 767,048 547,546 26,777,893 Commercial Real Estate 158,232,465 53,798,061 21,269,279 4,514,823 237,814,628 Total $ 307,103,269 $ 60,079,686 $ 23,764,910 $ 11,661,518 $ 402,609,383 8. Loans Receivable, Net, Continued The following tables present an age analysis of past due balances, including loans on non-accrual status, by category at September 30, 2018 and December 31, 2017 : September 30, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Residential Real Estate $ 473,728 $ — $ 494,065 $ 967,793 $ 84,225,698 $ 85,193,491 Consumer 275,395 164,359 908,797 1,348,551 56,614,284 57,962,835 Commercial Business 187,558 31,600 5,000 224,158 27,183,801 27,407,959 Commercial Real Estate 1,396,237 406,753 1,980,648 3,783,638 263,784,616 267,568,254 Total $ 2,332,918 $ 602,712 $ 3,388,510 $ 6,324,140 $ 431,808,399 $ 438,132,539 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Residential Real Estate $ 395,763 $ — $ 948,875 $ 1,344,638 $ 79,910,529 $ 81,255,167 Consumer 604,809 85,178 182,757 872,744 55,888,951 56,761,695 Commercial Business 185,526 102,244 — 287,770 26,490,123 26,777,893 Commercial Real Estate 2,207,655 364,515 1,919,292 4,491,462 233,323,166 237,814,628 Total $ 3,393,753 $ 551,937 $ 3,050,924 $ 6,996,614 $ 395,612,769 $ 402,609,383 At September 30, 2018 and December 31, 2017 , the Company did not have any loans that were 90 days or more past due and still accruing interest. Our strategy is to work with our borrowers to reach acceptable payment plans while protecting our interests in the existing collateral. In the event an acceptable arrangement cannot be reached, we may have to acquire these properties through foreclosure or other means and subsequently sell, develop, or liquidate them. The following table shows non-accrual loans by category at September 30, 2018 compared to December 31, 2017 : September 30, 2018 December 31, 2017 $ % Amount Percent (1) Amount Percent (1) Increase (Decrease) Increase (Decrease) Non-accrual Loans: Residential Real Estate $ 2,246,142 0.5 % $ 1,948,524 0.5 % $ 297,618 15.3% Consumer 1,181,304 0.3 318,926 0.1 $ 862,378 270.4 Commercial Business 83,006 — 109,401 — (26,395 ) (24.1) Commercial Real Estate 6,487,224 1.5 3,340,904 0.8 3,146,320 94.2 Total Non-accrual Loans $ 9,997,676 2.3 % $ 5,717,755 1.5 % $ 4,279,921 74.9% (1) PERCENT OF TOTAL LOANS HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS. 8. Loans Receivable, Net, Continued The following tables show the activity in the allowance for loan losses by category for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Residential Real Estate Consumer Commercial Business Commercial Real Estate Total Beginning Balance $ 1,309,069 $ 1,213,774 $ 1,077,433 $ 5,010,900 $ 8,611,176 Provision for Loan Losses 128,753 (21,106 ) (144,996 ) 187,349 150,000 Charge-Offs (27,489 ) (27,181 ) — (117,822 ) (172,492 ) Recoveries — 8,519 — 4,875 13,394 Ending Balance $ 1,410,333 $ 1,174,006 $ 932,437 $ 5,085,302 $ 8,602,078 Nine Months Ended September 30, 2018 Residential Real Estate Consumer Commercial Business Commercial Real Estate Total Beginning Balance $ 1,233,843 $ 1,144,815 $ 1,011,227 $ 4,831,733 $ 8,221,618 Provision for Loan Losses 217,702 51,275 (46,272 ) (72,705 ) 150,000 Charge-Offs (41,419 ) (118,207 ) (32,518 ) (127,712 ) (319,856 ) Recoveries 207 96,123 — 453,986 550,316 Ending Balance $ 1,410,333 $ 1,174,006 $ 932,437 $ 5,085,302 $ 8,602,078 Three Months Ended September 30, 2017 Residential Commercial Commercial Beginning Balance $ 1,450,176 $ 1,122,473 $ 880,642 $ 4,749,341 $ 8,202,632 Provision for Loan Losses 80,766 110,023 (842 ) (89,947 ) 100,000 Charge-Offs (114,869 ) (82,087 ) — (62,482 ) (259,438 ) Recoveries 1,014 15,392 — 109,588 125,994 Ending Balance $ 1,417,087 $ 1,165,801 $ 879,800 $ 4,706,500 $ 8,169,188 Nine Months Ended September 30, 2017 Residential Commercial Commercial Beginning Balance $ 1,360,346 $ 996,620 $ 882,999 $ 5,116,266 $ 8,356,231 Provision for Loan Losses 241,112 234,342 2,690 (378,144 ) 100,000 Charge-Offs (186,372 ) (123,942 ) (5,889 ) (198,482 ) (514,685 ) Recoveries 2,001 58,781 — 166,860 227,642 Ending Balance $ 1,417,087 $ 1,165,801 $ 879,800 $ 4,706,500 $ 8,169,188 8. Loans Receivable, Net, Continued The following tables present information related to impaired loans evaluated individually and collectively for impairment in the allowance for loan losses at the dates indicated: Allowance For Loan Losses September 30, 2018 Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Residential Real Estate $ — $ 1,410,333 $ 1,410,333 Consumer — 1,174,006 1,174,006 Commercial Business — 932,437 932,437 Commercial Real Estate — 5,085,302 5,085,302 Total $ — $ 8,602,078 $ 8,602,078 Allowance For Loan Losses December 31, 2017 Individually Evaluated For Collectively Evaluated For Residential Real Estate $ — $ 1,233,843 $ 1,233,843 Consumer — 1,144,815 1,144,815 Commercial Business — 1,011,227 1,011,227 Commercial Real Estate — 4,831,733 4,831,733 Total $ — $ 8,221,618 $ 8,221,618 The following tables present information related to impaired loans evaluated individually and collectively for impairment in loans receivable at the dates indicated: Loans Receivable September 30, 2018 Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Residential Real Estate $ 1,928,136 $ 83,265,355 $ 85,193,491 Consumer 956,087 57,006,748 57,962,835 Commercial Business 78,006 27,329,953 27,407,959 Commercial Real Estate 9,633,640 257,934,614 267,568,254 Total $ 12,595,869 $ 425,536,670 $ 438,132,539 Loans Receivable December 31, 2017 Individually Evaluated For Collectively Evaluated For Residential Real Estate $ 1,883,741 $ 79,371,426 $ 81,255,167 Consumer 181,617 56,580,078 56,761,695 Commercial Business 100,401 26,677,492 26,777,893 Commercial Real Estate 6,276,547 231,538,081 237,814,628 Total $ 8,442,306 $ 394,167,077 $ 402,609,383 8. Loans Receivable, Net, Continued Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired management measures the impairment and records the loan at fair value. Fair value is estimated using one of the following methods: fair value of the collateral less estimated costs to sell, discounted cash flows, or market value of the loan based on similar debt. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, the Company reviews the most recent appraisal and, if it is over 24 months old, will request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, management may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. The average balance of impaired loans was $12.9 million for the three months ended September 30, 2018 compared to $10.3 million for the three months ended September 30, 2017 . The following tables present information related to impaired loans by loan category at September 30, 2018 and December 31, 2017 and for the three and nine months ended September 30, 2018 and 2017 . There was no allowance recorded related to any impaired loans at September 30, 2018 . September 30, 2018 December 31, 2017 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Recorded Unpaid Residential Real Estate $ 1,928,137 $ 2,482,806 $ — $ 1,883,741 $ 2,333,741 $ — Consumer 956,086 964,386 — 181,617 209,427 — Commercial Business 78,006 973,006 — 100,401 950,401 — Commercial Real Estate 9,633,640 10,524,082 — 6,276,547 7,583,847 — Total $ 12,595,869 $ 14,944,280 $ — $ 8,442,306 $ 11,077,416 $ — Three Months Ended September 30, 2018 2017 Impaired Loans Average Interest Average Interest Residential Real Estate 1,967,761 — 2,613,299 2,226 Consumer 957,392 — 240,005 — Commercial Business 78,206 — 145,401 — Commercial Real Estate 9,926,344 42,699 7,331,736 44,296 Total $ 12,929,703 $ 42,699 $ 10,330,441 $ 46,522 Nine Months Ended September 30, 2018 2017 Impaired Loans Average Recorded Investment Interest Income Recognized Average Interest Residential Real Estate 2,407,872 10,585 2,939,263 25,339 Consumer 1,043,893 — 294,002 — Commercial Business 87,284 — 145,401 — Commercial Real Estate 10,495,262 162,763 7,517,744 159,584 Total $ 14,034,311 $ 173,348 $ 10,896,410 $ 184,923 8. Loans Receivable, Net, Continued In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. A troubled debt restructuring ("TDR") is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider (Financial Accounting Standards Board ("FASB") ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. The Bank grants such concessions to reassess the borrower’s financial status and develop a plan for repayment. At the date of modification, TDRs are initially classified as nonaccrual TDRs. TDR loans are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower's financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). TDRs included in impaired loans at September 30, 2018 and December 31, 2017 were $4.0 million and $4.1 million , respectively. There were no new TDRs during the three or nine months ended September 30, 2018 and 2017 . At September 30, 2018 , one TDR loan with a balance of $570,000 was in default. In comparison, at September 30, 2017 , two TDR loans totaling $611,000 were in default. None of these TDR loans defaulted during the three or nine months ended September 30, 2018 and 2017 . The Bank considers any loan 30 days or more past due to be in default. Our policy with respect to accrual of interest on loans restructured as a TDR follows relevant supervisory guidance. That is, if a borrower has demonstrated performance under the previous loan terms and shows capacity to perform under the restructured loan terms, continued accrual of interest at the restructured interest rate is probable. If a borrower was materially delinquent on payments prior to the restructuring but shows capacity to meet the restructured loan terms, the loan will likely continue as nonaccrual going forward. Lastly, if the borrower does not perform under the restructured terms, the loan is placed on nonaccrual status. We closely monitor these loans and will cease accruing interest on them if management believes that the borrowers may not continue performing based on the restructured note terms. If, after previously being classified as a TDR, a loan is restructured a second time, then that loan is automatically placed on nonaccrual status. Our policy with respect to nonperforming loans requires the borrower to make a minimum of six consecutive payments in accordance with the modified loan terms before that loan can be placed back on accrual status. Further, the borrower must demonstrate the capacity to continue making payments on the loan prior to restoration of accrual status. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters The Bank, as a state-chartered, federally insured savings bank, is subject to the capital requirements established by the FDIC. Under the FDIC's capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. The Company is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. For a bank holding company with less than $1.0 billion in assets, the capital guidelines apply on a bank only basis and the Federal Reserve expects the holding company's subsidiary banks to be well-capitalized under the prompt corrective action regulations. If Security Federal Corporation was subject to regulatory guidelines for bank holding companies with $1.0 billion or more in assets, at September 30, 2018 , it would have exceeded all regulatory capital requirements. Based on its capital levels at September 30, 2018 , the Bank exceeded all regulatory capital requirements as of that date. Consistent with the Bank's goals to operate a sound and profitable organization, it is the Bank's policy to maintain a "well-capitalized" status under the regulatory capital categories of the FDIC. Based on capital levels at September 30, 2018 , the Bank was considered to be "well-capitalized" under applicable regulatory requirements. Management monitors the capital levels to provide for current and future business opportunities and to maintain the Bank's "well-capitalized" status. 9. Regulatory Matters, Continued The tables below provide the Company’s and the Bank’s regulatory capital requirements and actual results at the dates indicated. Actual For Capital Adequacy To Be "Well-Capitalized" (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio SECURITY FEDERAL CORP. September 30, 2018 Tier 1 Risk-Based Core Capital $ 83,660 15.5% $ 32,339 6.0% N/A N/A Total Risk-Based Capital 90,418 16.8% 43,119 8.0% N/A N/A Common Equity Tier 1 Capital (To Risk Weighted Assets) 78,660 14.6% 24,255 4.5% N/A N/A Tier 1 Leverage (Core) Capital 83,660 9.3% 35,979 4.0% N/A N/A SECURITY FEDERAL BANK Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) $ 89,073 16.5% $ 32,330 6.0% $ 43,107 8.0% Total Risk-Based Capital (To Risk Weighted Assets) 95,831 17.8% 43,107 8.0% 53,883 10.0% Common Equity Tier 1 Capital (To Risk Weighted Assets) 89,073 16.5% 24,248 4.5% 35,024 6.5% Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) 89,073 9.9% 35,972 4.0% 44,965 5.0% SECURITY FEDERAL CORP. December 31, 2017 Tier 1 Risk-Based Core Capital $ 78,790 15.8% $ 29,998 6.0% Total Risk-Based Capital 85,066 17.0% 39,997 8.0% Common Equity Tier 1 Capital (To Risk Weighted Assets) 73,790 14.8% 22,498 4.5% Tier 1 Leverage (Core) Capital 78,790 9.1% 34,518 4.0% SECURITY FEDERAL BANK Tier 1 Risk-Based Core Capital $ 88,275 17.7% $ 29,989 6.0% $ 39,985 8.0% Total Risk-Based Capital 94,547 18.9% 39,985 8.0% 49,981 10.0% Common Equity Tier 1 Capital (To Risk Weighted Assets) 88,275 17.7% 22,491 4.5% 32,488 6.5% Tier 1 Leverage (Core) Capital 88,275 10.2% 34,512 4.0% 43,140 5.0% In addition to the minimum common equity Tier 1 ("CET1"), Tier 1 and total capital ratios, the Bank now has to maintain a capital conservation buffer consisting of additional CET1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of retained income that could be utilized for such actions. The capital conservation buffer requirement began to be phased in on January 1, 2016 when more than 0.625% of risk-weighted assets was required, and increases by 0.625% on each subsequent January 1, until fully implemented to an amount more than 2.5% of risk weighted assets in January 2019. At September 30, 2018 the Bank’s CET1 capital exceeded the required capital conservation buffer of an amount more than 1.875%. |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Value of Financial Instruments | Carrying Amounts and Fair Value of Financial Instruments The Company has adopted accounting guidance which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value under generally accepted accounting principles. During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet and to measure that fair value using an exit price notion, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at September 30, 2018 were determined based on these requirements. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. Accounting guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 - Quoted Market Price in Active Markets Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. 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. Treasuries and money market funds. Level 2 - Significant Other Observable Inputs Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities 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 certain derivative contracts. Level 3 - Significant Unobservable Inputs Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value. Investment Securities Available for Sale Investment securities available for sale are recorded at fair value on a recurring basis. At September 30, 2018 , the Company’s investment portfolio was comprised of government and agency bonds, mortgage-backed securities issued by government agencies or GSEs, private label CMO mortgage-backed securities, municipal securities, one state tax credit and one equity investment. Fair value measurement is based upon prices obtained from third party pricing services that use independent pricing models which rely on a variety of factors including reported trades, broker/dealer quotes, benchmark yields, economic and industry events and other relevant market information. As a result, these securities are classified as Level 2. 10. Carrying Amounts and Fair Value of Financial Instruments, Continued Mortgage Loans Held for Sale The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with the FHLMC or other investors, are carried in the Company’s loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with the Company’s customers. Therefore, these loans present very little market risk for the Company. The Company usually delivers a commitment to, and receives funding from, the investor within 30 days . Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts" basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination . These loans are classified as Level 2. Impaired Loans The Company does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established as necessary. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as impaired, management measures the impairment by determining the fair value of the collateral for the loan. Fair value is estimated using one of the following methods: fair value of the collateral less estimated costs to sell, discounted cash flows, or market value of the loan based on similar debt. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, the Company reviews the most recent appraisal and if it is over 24 months old will request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, management may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. Specifically as an example, in situations where the collateral on a nonperforming commercial real estate loan is out of the Company’s primary market area, management would typically order an independent appraisal immediately, at the earlier of the date the loan becomes nonperforming or immediately following the determination that the loan is impaired. However, as a second example, on a nonperforming commercial real estate loan where management is familiar with the property and surrounding areas and where the original appraisal value far exceeds the recorded investment in the loan, management may perform an internal analysis whereby the previous appraisal value would be reviewed and adjusted for current conditions including recent sales of similar properties in the area and any other relevant economic trends. These valuations are reviewed at a minimum on a quarterly basis. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2018 , our impaired loans were generally evaluated based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. The Company records impaired loans as nonrecurring Level 3. At September 30, 2018 and December 31, 2017 , the recorded investment in impaired loans was $12.6 million and $8.4 million , respectively. Foreclosed Assets Foreclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Foreclosed assets are recorded as nonrecurring Level 3. 10. Carrying Amounts and Fair Value of Financial Instruments, Continued Assets measured at fair value on a recurring basis were as follows at September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Student Loan Pools $ — $ 12,981,539 $ — $ — $ 8,521,785 $ — SBA Bonds — 117,225,060 — — 124,248,444 — Tax Exempt Municipal Bonds — 60,481,254 — — 62,355,567 — Taxable Municipal Bonds — 2,940,635 — — 1,997,130 — Mortgage-Backed Securities — 179,880,455 — — 187,695,980 — State Tax Credit — 88,350 — — — — Equity Securities — 155,000 — — 155,000 — Total $ — $ 373,752,293 $ — $ — $ 384,973,906 $ — There were no liabilities measured at fair value on a recurring basis at September 30, 2018 or December 31, 2017 . The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. The tables below present assets measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. September 30, 2018 Assets: Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 737,098 $ — $ 737,098 Collateral Dependent Impaired Loans (1) — — 12,595,869 12,595,869 Foreclosed Assets — — 858,242 858,242 Total $ — $ 737,098 $ 13,454,111 $ 14,191,209 December 31, 2017 Assets: Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 3,051,950 $ — $ 3,051,950 Collateral Dependent Impaired Loans (1) — — 8,442,306 8,442,306 Foreclosed Assets — — 1,115,671 1,115,671 Total $ — $ 3,051,950 $ 9,557,977 $ 12,609,927 (1) IMPAIRED LOANS ABOVE ARE REPORTED NET OF SPECIFIC RESERVES. THERE WERE no SPECIFIC RESRVES AT SEPTEMBER 30, 2018 AND DECEMBER 31, 2017. no There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2018 or December 31, 2017 . For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis at September 30, 2018 , the significant unobservable inputs used in the fair value measurements were as follows: Valuation Significant Level 3 Assets Fair Value Technique Unobservable Inputs Range Collateral Dependent Impaired Loans $ 12,595,869 Appraised Value Discount Rates/ Discounts to Appraised Values 7% - 97% Foreclosed Assets $ 858,242 Appraised Value/Comparable Sales Discount Rates/ Discounts to Appraised Values 13% - 100% 10. Carrying Amounts and Fair Value of Financial Instruments, Continued The following methods are used to determine the fair value of assets and liabilities not presented on the balance sheet at fair value: Cash and Cash Equivalents—The carrying amount of these financial instruments approximates fair value. All mature within 90 days and do not present unanticipated credit concerns. Certificates of Deposit with Other Banks—Fair value is based on market prices for similar assets. Investment Securities Held to Maturity—Securities held to maturity are valued at quoted market prices or dealer quotes. Loans Receivable, Net—As of September 30, 2018 , the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: commercial real estate, other commercial, residential real estate, consumer and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. As of December 31, 2017, the fair value of the Company’s loan portfolio included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption was intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio was initially fair valued using a segmented approach, as described above. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios were then further discounted to incorporate credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price as of December 31, 2017. FHLB Stock—The fair value approximates the carrying value. No ready market exists for this stock, and it has no quoted market value; however, redemption of this stock has historically been at par value. Accordingly, par value is deemed to be a reasonable estimate of fair value. Deposits—The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. FHLB Advances—Fair value is estimated based on discounted cash flows using current market rates for advances with similar terms. Other Borrowed Money—The carrying value of these short term borrowings approximates fair value. Note Payable—The carrying value of the note payable approximates fair value. Senior Convertible Debentures— The fair value is estimated by discounting the future cash flows using the current rates at which similar debenture offerings with similar terms and maturities would be issued by similar institutions. As discount rates are based on current debenture rates as well as management estimates, the fair values presented may not be indicative of the value negotiated in an actual sale. Junior Subordinated Debentures—The carrying value of junior subordinated debentures approximates fair value. 10. Carrying Amounts and Fair Value of Financial Instruments, Continued The following tables provide a summary of the carrying value and estimated fair value of the Company’s financial instruments at September 30, 2018 and December 31, 2017 presented in accordance with the applicable accounting guidance. September 30, 2018 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 20,110 $ 20,110 $ 20,110 $ — $ — Certificates of Deposits with Other Banks 1,950 1,950 — 1,950 — Investment and Mortgage-Backed Securities 396,044 395,452 — 395,452 — Loans Receivable, Net 423,980 414,125 — — 414,125 FHLB Stock 2,486 2,486 2,486 — — Financial Liabilities: Deposits: Checking, Savings & Money Market Accounts $ 511,154 $ 511,154 $ 511,154 $ — $ — Certificate Accounts 239,844 236,693 — 236,693 — Advances from FHLB 39,000 38,602 — 38,602 — Other Borrowed Money 12,652 12,652 12,652 — — Note Payable 3,900 3,900 — 3,900 — Senior Convertible Debentures 6,064 6,064 — 6,064 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — December 31, 2017 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 10,320 $ 10,320 $ 10,320 $ — $ — Certificates of Deposits with Other Banks 1,950 1,950 — 1,950 — Investment and Mortgage-Backed Securities 412,055 412,029 — 412,029 — Loans Receivable, Net 390,493 386,613 — — 386,613 FHLB Stock 2,932 2,932 2,932 — — Financial Liabilities: Deposits: Checking, Savings & Money Market Accounts $ 472,015 $ 472,015 $ 472,015 $ — $ — Certificate Accounts 230,092 227,949 — 227,949 — Advances from FHLB 51,680 51,318 — 51,318 — Other Borrowed Money 11,307 11,307 11,307 — — Note Payable 8,500 8,500 — 8,500 — Senior Convertible Debentures 6,064 6,064 — 6,064 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — At September 30, 2018 , the Bank had $86.2 million in off-balance sheet financial commitments. These commitments are to originate loans and unused consumer lines of credit and credit card lines. Because these obligations are based on current market rates, if funded, the original principal amount is considered to be a reasonable estimate of fair value. Fair value estimates are made on a specific date, based on relevant market data and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the Bank’s entire holdings of a particular financial instrument. 10. Carrying Amounts and Fair Value of Financial Instruments, Continued Because no active market exists for a significant portion of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in any of these assumptions used in calculating fair value would also significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, the Bank has significant assets and liabilities that are not considered financial assets or liabilities including deposit franchise values, loan servicing portfolios, deferred tax liabilities, and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The Company has used management’s best estimate of fair value on the above assumptions. Thus, the fair values presented may not be the amounts, which could be realized, in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses that would be incurred in an actual sale or settlement are not taken into consideration in the fair value presented. |
Non-interest Income (Notes)
Non-interest Income (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 12. Non-Interest Income The Company adopted the provisions of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), on January 1, 2018 and all subsequent ASUs that modified Topic 606. Results for reporting periods beginning after December 31, 2017 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported in accordance with Topic 605. The following table presents the Company's non-interest income for the three and nine months ended September 30, 2018 and 2017. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income, with the exception of gains on the sale of OREO, which are included in non-interest expense when applicable. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Non-interest income: Service fees on deposit accounts $ 262,821 $ 274,717 $ 770,493 $ 776,469 Check card fee income 320,708 282,686 966,365 838,302 Trust income 249,000 186,000 725,000 554,000 Insurance commissions (1) 196,817 172,074 525,153 451,311 Gain on sale of investment securities, net (1) — 79,363 436,304 707,902 Gain on sale of loans, net (1) 345,396 373,636 999,045 894,053 BOLI income (1) 135,000 788,133 405,000 1,028,133 Grant income (1) 318,102 — 318,102 — Other non-interest income (1) 241,837 205,524 712,785 542,250 Total non-interest income $ 2,069,681 $ 2,362,133 $ 5,858,247 $ 5,792,420 (1) Not within the scope of ASC 606 The Company recognizes revenue as it is earned and noted no impact to its revenue recognition policies as a result of the adoption of ASU 2014-09. The following is a discussion of key revenues within the scope of the new revenue guidance. Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. 12. Non-Interest Income, Continued Deposit Fees The Bank earns fees from its deposit customers for account maintenance, transaction-based and overdraft services. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposits accounts are charged to deposit customers for specific services provided to the customer, such as non-sufficient funds fees, overdraft fees, and wire fees. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer. Check Card Fee Income Check card fee income represents fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the Mastercard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the card. Certain expenses directly associated with the debit card are recorded on a net basis with the fee income. Trust Income Trust income includes monthly advisory fees that are based on assets under management and certain transaction fees that are assessed and earned monthly, concurrently with the investment management services provided to the customer. The Bank does not charge performance based fees for its trust services and does not currently have any institutional clients, hedge funds or mutual funds. Although trust income is included within the scope of ASC 606, based on the fees charged by the Bank, the Company does not anticipate any changes in the accounting for trust income at this time. Gains/Losses on OREO Sales Gains/losses on the sale of OREO are included in non-interest expense and are generally recognized when the performance obligation is complete. This is typically at delivery of control over the property to the buyer at the time of each real estate closing. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed all events occurring through the date the consolidated financial statements were available to be issued and determined that there were no subsequent events requiring disclosure. |
Critical Accounting Policies (P
Critical Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Allowance for Loan Losses | The Company believes the allowance for loan losses is a critical accounting policy that requires the most significant judgments and estimates used in preparation of the consolidated financial statements. The impact of an unexpected and sudden large loss could deplete the allowance and potentially require increased provisions to replenish the allowance, which would negatively affect earnings. The Company provides for loan losses using the allowance method. Accordingly, all loan losses are charged to the related allowance and all recoveries are credited to the allowance for loan losses. Additions to the allowance for loan losses are provided by charges to operations based on various factors, which, in management’s judgment, deserve current recognition in estimating possible losses. Such factors considered by management include the fair value of the underlying collateral, stated guarantees by the borrower (if applicable), the borrower’s ability to repay from other economic resources, growth and composition of the loan portfolio, the relationship of the allowance for loan losses to the outstanding loans, loss experience, delinquency trends, and general economic conditions. Management evaluates the carrying value of the loans periodically and the allowance is adjusted accordingly. 3. Critical Accounting Policies, Continued While management uses the best information available to make evaluations, future adjustments may be necessary if economic conditions differ substantially from the assumptions used in making these evaluations. The allowance for loan losses is subject to periodic evaluations by our bank regulatory agencies, including the Board of Governors of the Federal Reserve System ("Federal Reserve"), the FDIC and the South Carolina Board of Financial Institutions, that may require adjustments to be made to the allowance based upon the information that is available at the time of their examination. The Company values impaired loans at the loan’s fair value if it is probable that the Company will be unable to collect all amounts due according to the terms of the loan agreement at the present value of expected cash flows, the market price of the loan, if available, or the value of the underlying collateral. Expected cash flows are required to be discounted at the loan’s effective interest rate. When the ultimate collectibility of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. When this doubt does not exist, cash receipts are applied under the contractual terms of the loan agreement first to interest and then to principal. Once the recorded principal balance has been reduced to zero, future cash receipts are applied to interest income to the extent that any interest has been foregone. Further cash receipts are recorded as recoveries of any amounts previously charged off. |
Income Taxes | The Company uses assumptions and estimates in determining income taxes payable or refundable for the current year, deferred income tax liabilities and assets for events recognized differently in its financial statements and income tax returns, and income tax expense. Determining these amounts requires analysis of certain transactions and interpretation of tax laws and regulations. The Company exercises considerable judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. These judgments and estimates are reevaluated on a continual basis as regulatory and business factors change. No assurance can be given that either the tax returns submitted by us or the income tax reported on the Consolidated Financial Statements will not be adjusted by either adverse rulings by the United States Tax Court, changes in the tax code, or assessments made by the Internal Revenue Service. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of net income to net income available to common shareholders |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity under stock option plans | Three Months Ended September 30, 2018 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance, Beginning of Period 1,650 $22.91 19,500 $23.49 Options Forfeited (1,650 ) 22.91 (1,000 ) 24.61 Balance, End of Period — — 18,500 $23.43 Nine Months Ended September 30, 2018 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance, Beginning of Period 4,500 $22.91 21,500 $23.57 Options Exercised (450 ) 22.91 — — Options Forfeited (4,050 ) 22.91 (3,000 ) 24.43 Balance, End of Period — — 18,500 $23.43 Options Exercisable — 18,500 Options Available For Grant 50,000 50,000 |
Options outstanding | At September 30, 2018 , the Company had no options outstanding. |
Investment and Mortgage-Backe_3
Investment and Mortgage-Backed Securities, Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available for Sale Securities | The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment and mortgage-backed securities available for sale at the dates indicated were as follows: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Student Loan Pools $ 12,957,559 $ 33,076 $ 9,096 $ 12,981,539 Small Business Administration (“SBA”) Bonds 118,275,224 227,093 1,277,257 117,225,060 Tax Exempt Municipal Bonds 60,381,306 897,641 797,693 60,481,254 Taxable Municipal Bonds 3,007,036 — 66,401 2,940,635 Mortgage-Backed Securities 182,045,631 811,987 2,977,163 179,880,455 State Tax Credit 88,350 — — 88,350 Equity Securities 155,000 — — 155,000 Total Available For Sale $ 376,910,106 $ 1,969,797 $ 5,127,610 $ 373,752,293 December 31, 2017 Amortized Cost Gross Gross Fair Value Student Loan Pools $ 8,522,043 $ 1,288 $ 1,546 $ 8,521,785 SBA Bonds 123,324,802 1,113,160 189,518 124,248,444 Tax Exempt Municipal Bonds 59,623,185 2,789,233 56,851 62,355,567 Taxable Municipal Bonds 2,016,833 — 19,703 1,997,130 Mortgage-Backed Securities 186,732,705 1,936,847 973,572 187,695,980 Equity Securities 155,000 — — 155,000 Total Available For Sale $ 380,374,568 $ 5,840,528 $ 1,241,190 $ 384,973,906 |
Schedule of Available For Sale Securities, Contractual Maturities | September 30, 2018 Investment Securities: Amortized Cost Fair Value One Year or Less $ 1,125,559 $ 1,122,015 After One – Five Years 11,035,958 10,987,529 After Five – Ten Years 42,005,204 41,714,850 More Than Ten Years 140,697,754 140,047,444 Mortgage-Backed Securities 182,045,631 179,880,455 Total Available For Sale $ 376,910,106 $ 373,752,293 |
Schedule of Temporarily Impaired Securities, Fair Value and Unrealized Losses | The following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that the individual available for sale securities were in a continuous unrealized loss position at the dates indicated. September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Student Loan Pools $ 2,057,695 $ 9,096 $ — $ — $ 2,057,695 $ 9,096 SBA Bonds 79,678,260 964,997 14,490,089 312,260 94,168,349 1,277,257 Tax Exempt Municipal Bonds 32,933,452 492,761 6,384,426 304,932 39,317,878 797,693 Taxable Municipal Bonds 1,969,285 32,952 971,350 33,449 2,940,635 66,401 Mortgage-Backed Securities 75,412,165 1,211,586 56,908,117 1,765,577 132,320,282 2,977,163 $ 192,050,857 $ 2,711,392 $ 78,753,982 $ 2,416,218 $ 270,804,839 $ 5,127,610 December 31, 2017 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Student Loan Pools $ 7,556,014 $ 1,546 $ — $ — $ 7,556,014 $ 1,546 SBA Bonds 24,433,422 151,459 5,588,532 38,059 30,021,954 189,518 Tax Exempt Municipal Bonds 4,406,162 13,852 4,328,229 42,999 8,734,391 56,851 Taxable Municipal Bond 1,997,130 19,703 — — 1,997,130 19,703 Mortgage-Backed Securities 62,574,910 624,772 23,612,359 348,800 86,187,269 973,572 $ 100,967,638 $ 811,332 $ 33,529,120 $ 429,858 $ 134,496,758 $ 1,241,190 following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that the individual available for sale securities were in a continuous unrealized loss position at the dates indicated. September 30, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Student Loan Pools $ 2,057,695 $ 9,096 $ — $ — $ 2,057,695 $ 9,096 SBA Bonds 79,678,260 964,997 14,490,089 312,260 94,168,349 1,277,257 Tax Exempt Municipal Bonds 32,933,452 492,761 6,384,426 304,932 39,317,878 797,693 Taxable Municipal Bonds 1,969,285 32,952 971,350 33,449 2,940,635 66,401 Mortgage-Backed Securities 75,412,165 1,211,586 56,908,117 1,765,577 132,320,282 2,977,163 $ 192,050,857 $ 2,711,392 $ 78,753,982 $ 2,416,218 $ 270,804,839 $ 5,127,610 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans Receivable, Net [Abstract] | |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | The following table shows non-accrual loans by category at September 30, 2018 compared to December 31, 2017 : September 30, 2018 December 31, 2017 $ % Amount Percent (1) Amount Percent (1) Increase (Decrease) Increase (Decrease) Non-accrual Loans: Residential Real Estate $ 2,246,142 0.5 % $ 1,948,524 0.5 % $ 297,618 15.3% Consumer 1,181,304 0.3 318,926 0.1 $ 862,378 270.4 Commercial Business 83,006 — 109,401 — (26,395 ) (24.1) Commercial Real Estate 6,487,224 1.5 3,340,904 0.8 3,146,320 94.2 Total Non-accrual Loans $ 9,997,676 2.3 % $ 5,717,755 1.5 % $ 4,279,921 74.9% (1) PERCENT OF TOTAL LOANS HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS. |
Impaired Financing Receivables [Table Text Block] | The following tables present information related to impaired loans by loan category at September 30, 2018 and December 31, 2017 and for the three and nine months ended September 30, 2018 and 2017 . There was no allowance recorded related to any impaired loans at September 30, 2018 . September 30, 2018 December 31, 2017 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Recorded Unpaid Residential Real Estate $ 1,928,137 $ 2,482,806 $ — $ 1,883,741 $ 2,333,741 $ — Consumer 956,086 964,386 — 181,617 209,427 — Commercial Business 78,006 973,006 — 100,401 950,401 — Commercial Real Estate 9,633,640 10,524,082 — 6,276,547 7,583,847 — Total $ 12,595,869 $ 14,944,280 $ — $ 8,442,306 $ 11,077,416 $ — Three Months Ended September 30, 2018 2017 Impaired Loans Average Interest Average Interest Residential Real Estate 1,967,761 — 2,613,299 2,226 Consumer 957,392 — 240,005 — Commercial Business 78,206 — 145,401 — Commercial Real Estate 9,926,344 42,699 7,331,736 44,296 Total $ 12,929,703 $ 42,699 $ 10,330,441 $ 46,522 Nine Months Ended September 30, 2018 2017 Impaired Loans Average Recorded Investment Interest Income Recognized Average Interest Residential Real Estate 2,407,872 10,585 2,939,263 25,339 Consumer 1,043,893 — 294,002 — Commercial Business 87,284 — 145,401 — Commercial Real Estate 10,495,262 162,763 7,517,744 159,584 Total $ 14,034,311 $ 173,348 $ 10,896,410 $ 184,923 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | 0 |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] | The following tables show the activity in the allowance for loan losses by category for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Residential Real Estate Consumer Commercial Business Commercial Real Estate Total Beginning Balance $ 1,309,069 $ 1,213,774 $ 1,077,433 $ 5,010,900 $ 8,611,176 Provision for Loan Losses 128,753 (21,106 ) (144,996 ) 187,349 150,000 Charge-Offs (27,489 ) (27,181 ) — (117,822 ) (172,492 ) Recoveries — 8,519 — 4,875 13,394 Ending Balance $ 1,410,333 $ 1,174,006 $ 932,437 $ 5,085,302 $ 8,602,078 Nine Months Ended September 30, 2018 Residential Real Estate Consumer Commercial Business Commercial Real Estate Total Beginning Balance $ 1,233,843 $ 1,144,815 $ 1,011,227 $ 4,831,733 $ 8,221,618 Provision for Loan Losses 217,702 51,275 (46,272 ) (72,705 ) 150,000 Charge-Offs (41,419 ) (118,207 ) (32,518 ) (127,712 ) (319,856 ) Recoveries 207 96,123 — 453,986 550,316 Ending Balance $ 1,410,333 $ 1,174,006 $ 932,437 $ 5,085,302 $ 8,602,078 Three Months Ended September 30, 2017 Residential Commercial Commercial Beginning Balance $ 1,450,176 $ 1,122,473 $ 880,642 $ 4,749,341 $ 8,202,632 Provision for Loan Losses 80,766 110,023 (842 ) (89,947 ) 100,000 Charge-Offs (114,869 ) (82,087 ) — (62,482 ) (259,438 ) Recoveries 1,014 15,392 — 109,588 125,994 Ending Balance $ 1,417,087 $ 1,165,801 $ 879,800 $ 4,706,500 $ 8,169,188 Nine Months Ended September 30, 2017 Residential Commercial Commercial Beginning Balance $ 1,360,346 $ 996,620 $ 882,999 $ 5,116,266 $ 8,356,231 Provision for Loan Losses 241,112 234,342 2,690 (378,144 ) 100,000 Charge-Offs (186,372 ) (123,942 ) (5,889 ) (198,482 ) (514,685 ) Recoveries 2,001 58,781 — 166,860 227,642 Ending Balance $ 1,417,087 $ 1,165,801 $ 879,800 $ 4,706,500 $ 8,169,188 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans receivable, net, consisted of the following as of the dates indicated below: September 30, 2018 December 31, 2017 Residential Real Estate Loans $ 85,193,491 $ 81,255,167 Consumer Loans 57,962,835 56,761,695 Commercial Business Loans 27,407,959 26,777,893 Commercial Real Estate Loans 267,568,254 237,814,628 Total Loans Held For Investment 438,132,539 402,609,383 Loans Held For Sale 737,098 3,051,950 Total Loans Receivable, Gross $ 438,869,637 $ 405,661,333 Less: Allowance For Loan Losses 8,602,078 8,221,618 Loans in Process 6,048,974 6,804,533 Deferred Loan Fees 238,797 141,985 14,889,849 15,168,136 Total Loans Receivable, Net $ 423,979,788 $ 390,493,197 |
Schedule of Allowance for Loan Losses | |
Financing Receivable Credit Quality Indicators [Table Text Block] | The tables below summarize the balance within each risk category by loan type, excluding loans held for sale, at September 30, 2018 and December 31, 2017 . September 30, 2018 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 76,083,485 $ 3,558,567 $ 1,308,296 $ 4,243,143 $ 85,193,491 Consumer 49,309,083 5,848,589 479,473 2,325,690 57,962,835 Commercial Business 22,569,651 4,135,663 359,785 342,860 27,407,959 Commercial Real Estate 190,029,320 47,269,195 20,101,394 10,168,345 267,568,254 Total $ 337,991,539 $ 60,812,014 $ 22,248,948 $ 17,080,038 $ 438,132,539 December 31, 2017 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 73,225,237 $ 2,352,536 $ 1,384,222 $ 4,293,172 $ 81,255,167 Consumer 52,249,017 1,862,340 344,361 2,305,977 56,761,695 Commercial Business 23,396,550 2,066,749 767,048 547,546 26,777,893 Commercial Real Estate 158,232,465 53,798,061 21,269,279 4,514,823 237,814,628 Total $ 307,103,269 $ 60,079,686 $ 23,764,910 $ 11,661,518 $ 402,609,383 |
Past Due Financing Receivables [Table Text Block] | The following tables present an age analysis of past due balances, including loans on non-accrual status, by category at September 30, 2018 and December 31, 2017 : September 30, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Residential Real Estate $ 473,728 $ — $ 494,065 $ 967,793 $ 84,225,698 $ 85,193,491 Consumer 275,395 164,359 908,797 1,348,551 56,614,284 57,962,835 Commercial Business 187,558 31,600 5,000 224,158 27,183,801 27,407,959 Commercial Real Estate 1,396,237 406,753 1,980,648 3,783,638 263,784,616 267,568,254 Total $ 2,332,918 $ 602,712 $ 3,388,510 $ 6,324,140 $ 431,808,399 $ 438,132,539 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Residential Real Estate $ 395,763 $ — $ 948,875 $ 1,344,638 $ 79,910,529 $ 81,255,167 Consumer 604,809 85,178 182,757 872,744 55,888,951 56,761,695 Commercial Business 185,526 102,244 — 287,770 26,490,123 26,777,893 Commercial Real Estate 2,207,655 364,515 1,919,292 4,491,462 233,323,166 237,814,628 Total $ 3,393,753 $ 551,937 $ 3,050,924 $ 6,996,614 $ 395,612,769 $ 402,609,383 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Loans Receivable September 30, 2018 Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Residential Real Estate $ 1,928,136 $ 83,265,355 $ 85,193,491 Consumer 956,087 57,006,748 57,962,835 Commercial Business 78,006 27,329,953 27,407,959 Commercial Real Estate 9,633,640 257,934,614 267,568,254 Total $ 12,595,869 $ 425,536,670 $ 438,132,539 Loans Receivable December 31, 2017 Individually Evaluated For Collectively Evaluated For Residential Real Estate $ 1,883,741 $ 79,371,426 $ 81,255,167 Consumer 181,617 56,580,078 56,761,695 Commercial Business 100,401 26,677,492 26,777,893 Commercial Real Estate 6,276,547 231,538,081 237,814,628 Total $ 8,442,306 $ 394,167,077 $ 402,609,383 The following tables present information related to impaired loans evaluated individually and collectively for impairment in the allowance for loan losses at the dates indicated: Allowance For Loan Losses September 30, 2018 Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Residential Real Estate $ — $ 1,410,333 $ 1,410,333 Consumer — 1,174,006 1,174,006 Commercial Business — 932,437 932,437 Commercial Real Estate — 5,085,302 5,085,302 Total $ — $ 8,602,078 $ 8,602,078 Allowance For Loan Losses December 31, 2017 Individually Evaluated For Collectively Evaluated For Residential Real Estate $ — $ 1,233,843 $ 1,233,843 Consumer — 1,144,815 1,144,815 Commercial Business — 1,011,227 1,011,227 Commercial Real Estate — 4,831,733 4,831,733 Total $ — $ 8,221,618 $ 8,221,618 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory capital amounts and ratios | Actual For Capital Adequacy To Be "Well-Capitalized" (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio SECURITY FEDERAL CORP. September 30, 2018 Tier 1 Risk-Based Core Capital $ 83,660 15.5% $ 32,339 6.0% N/A N/A Total Risk-Based Capital 90,418 16.8% 43,119 8.0% N/A N/A Common Equity Tier 1 Capital (To Risk Weighted Assets) 78,660 14.6% 24,255 4.5% N/A N/A Tier 1 Leverage (Core) Capital 83,660 9.3% 35,979 4.0% N/A N/A SECURITY FEDERAL BANK Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) $ 89,073 16.5% $ 32,330 6.0% $ 43,107 8.0% Total Risk-Based Capital (To Risk Weighted Assets) 95,831 17.8% 43,107 8.0% 53,883 10.0% Common Equity Tier 1 Capital (To Risk Weighted Assets) 89,073 16.5% 24,248 4.5% 35,024 6.5% Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) 89,073 9.9% 35,972 4.0% 44,965 5.0% SECURITY FEDERAL CORP. December 31, 2017 Tier 1 Risk-Based Core Capital $ 78,790 15.8% $ 29,998 6.0% Total Risk-Based Capital 85,066 17.0% 39,997 8.0% Common Equity Tier 1 Capital (To Risk Weighted Assets) 73,790 14.8% 22,498 4.5% Tier 1 Leverage (Core) Capital 78,790 9.1% 34,518 4.0% SECURITY FEDERAL BANK Tier 1 Risk-Based Core Capital $ 88,275 17.7% $ 29,989 6.0% $ 39,985 8.0% Total Risk-Based Capital 94,547 18.9% 39,985 8.0% 49,981 10.0% Common Equity Tier 1 Capital (To Risk Weighted Assets) 88,275 17.7% 22,491 4.5% 32,488 6.5% Tier 1 Leverage (Core) Capital 88,275 10.2% 34,512 4.0% 43,140 5.0% |
Carrying Amounts and Fair Val_2
Carrying Amounts and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring basis | Assets measured at fair value on a recurring basis were as follows at September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Student Loan Pools $ — $ 12,981,539 $ — $ — $ 8,521,785 $ — SBA Bonds — 117,225,060 — — 124,248,444 — Tax Exempt Municipal Bonds — 60,481,254 — — 62,355,567 — Taxable Municipal Bonds — 2,940,635 — — 1,997,130 — Mortgage-Backed Securities — 179,880,455 — — 187,695,980 — State Tax Credit — 88,350 — — — — Equity Securities — 155,000 — — 155,000 — Total $ — $ 373,752,293 $ — $ — $ 384,973,906 $ — |
Fair value measurements, nonrecurring basis | The tables below present assets measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. September 30, 2018 Assets: Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 737,098 $ — $ 737,098 Collateral Dependent Impaired Loans (1) — — 12,595,869 12,595,869 Foreclosed Assets — — 858,242 858,242 Total $ — $ 737,098 $ 13,454,111 $ 14,191,209 December 31, 2017 Assets: Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 3,051,950 $ — $ 3,051,950 Collateral Dependent Impaired Loans (1) — — 8,442,306 8,442,306 Foreclosed Assets — — 1,115,671 1,115,671 Total $ — $ 3,051,950 $ 9,557,977 $ 12,609,927 (1) IMPAIRED LOANS ABOVE ARE REPORTED NET OF SPECIFIC RESERVES. THERE WERE no SPECIFIC RESRVES AT SEPTEMBER 30, 2018 AND DECEMBER 31, 2017. no |
Significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis at September 30, 2018 , the significant unobservable inputs used in the fair value measurements were as follows: Valuation Significant Level 3 Assets Fair Value Technique Unobservable Inputs Range Collateral Dependent Impaired Loans $ 12,595,869 Appraised Value Discount Rates/ Discounts to Appraised Values 7% - 97% Foreclosed Assets $ 858,242 Appraised Value/Comparable Sales Discount Rates/ Discounts to Appraised Values 13% - 100% |
Summary of the carrying value and estimated fair value of financial instruments | The following tables provide a summary of the carrying value and estimated fair value of the Company’s financial instruments at September 30, 2018 and December 31, 2017 presented in accordance with the applicable accounting guidance. September 30, 2018 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 20,110 $ 20,110 $ 20,110 $ — $ — Certificates of Deposits with Other Banks 1,950 1,950 — 1,950 — Investment and Mortgage-Backed Securities 396,044 395,452 — 395,452 — Loans Receivable, Net 423,980 414,125 — — 414,125 FHLB Stock 2,486 2,486 2,486 — — Financial Liabilities: Deposits: Checking, Savings & Money Market Accounts $ 511,154 $ 511,154 $ 511,154 $ — $ — Certificate Accounts 239,844 236,693 — 236,693 — Advances from FHLB 39,000 38,602 — 38,602 — Other Borrowed Money 12,652 12,652 12,652 — — Note Payable 3,900 3,900 — 3,900 — Senior Convertible Debentures 6,064 6,064 — 6,064 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — December 31, 2017 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 10,320 $ 10,320 $ 10,320 $ — $ — Certificates of Deposits with Other Banks 1,950 1,950 — 1,950 — Investment and Mortgage-Backed Securities 412,055 412,029 — 412,029 — Loans Receivable, Net 390,493 386,613 — — 386,613 FHLB Stock 2,932 2,932 2,932 — — Financial Liabilities: Deposits: Checking, Savings & Money Market Accounts $ 472,015 $ 472,015 $ 472,015 $ — $ — Certificate Accounts 230,092 227,949 — 227,949 — Advances from FHLB 51,680 51,318 — 51,318 — Other Borrowed Money 11,307 11,307 11,307 — — Note Payable 8,500 8,500 — 8,500 — Senior Convertible Debentures 6,064 6,064 — 6,064 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — |
Non-interest Income (Tables)
Non-interest Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income, by Component [Table Text Block] | The following table presents the Company's non-interest income for the three and nine months ended September 30, 2018 and 2017. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income, with the exception of gains on the sale of OREO, which are included in non-interest expense when applicable. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Non-interest income: Service fees on deposit accounts $ 262,821 $ 274,717 $ 770,493 $ 776,469 Check card fee income 320,708 282,686 966,365 838,302 Trust income 249,000 186,000 725,000 554,000 Insurance commissions (1) 196,817 172,074 525,153 451,311 Gain on sale of investment securities, net (1) — 79,363 436,304 707,902 Gain on sale of loans, net (1) 345,396 373,636 999,045 894,053 BOLI income (1) 135,000 788,133 405,000 1,028,133 Grant income (1) 318,102 — 318,102 — Other non-interest income (1) 241,837 205,524 712,785 542,250 Total non-interest income $ 2,069,681 $ 2,362,133 $ 5,858,247 $ 5,792,420 (1) Not within the scope of ASC 606 |
Earnings Per Common Share (Reco
Earnings Per Common Share (Reconciliation of Net Income to Net Income Available to Common Shareholders) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Available To Common Shareholders | ||||
Net Income | $ 2,107,692 | $ 1,902,902 | $ 5,657,763 | $ 5,009,467 |
Income | $ 2,107,692 | $ 1,902,902 | $ 5,657,763 | $ 5,009,467 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,348 | 1,152 | 0 |
Earnings Per Common Share Dilut
Earnings Per Common Share Diluted EPS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 2,107,692 | $ 1,902,902 | $ 5,657,763 | $ 5,009,467 |
Weighted Average Shares Outstanding (Basic) | 2,953,424 | 2,945,474 | 2,953,340 | 2,945,215 |
Net Income Per Common Share (Basic) | $ 0.71 | $ 0.65 | $ 1.92 | $ 1.70 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 90,960 | $ 75,266 | $ 272,880 | $ 226,149 |
Weighted Average Shares Outstanding, Senior Convertible Debentures | 303,200 | 303,200 | 303,200 | 303,200 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,348 | 1,152 | 0 | |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | (0.03) | (0.02) | (0.10) | (0.08) |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 2,198,652 | $ 1,978,168 | $ 5,930,643 | $ 5,235,616 |
Weighted Average Shares Outstanding (Diluted) | 3,256,624 | 3,252,436 | 3,256,540 | 3,251,666 |
Net Income Per Common Share (Diluted) | $ 0.68 | $ 0.61 | $ 1.82 | $ 1.61 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Plans) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Balance, Beginning of Period, Shares | 1,650 | 19,500 | 4,500 | 21,500 |
Options Exercised, Shares | (450) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (1,650) | (1,000) | (4,050) | (3,000) |
Balance, End of Period, Shares | 0 | 18,500 | 0 | 18,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Balance, Beginning of Period, Weighted Avg. Exercise Price | $ 22.91 | $ 23.49 | $ 22.91 | $ 23.57 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 22.91 | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 22.91 | 24.61 | 22.91 | 24.43 |
Balance, End of Period, Weighted Avg. Exercise Price | $ 0 | $ 23.43 | $ 0 | $ 23.43 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options Exercisable, Shares | 0 | 18,500 | 0 | 18,500 |
Options Available For Grant | 50,000 | 50,000 | 50,000 | 50,000 |
Stock-Based Compensation (Optio
Stock-Based Compensation (Options Outstanding) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 18,500 | 0 | 18,500 | 1,650 | 4,500 | 19,500 | 21,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0 | $ 23.43 | $ 0 | $ 23.43 | $ 22.91 | $ 22.91 | $ 23.49 | $ 23.57 |
Options Exercised, Shares | 450 | 0 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 22.91 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (1,650) | (1,000) | (4,050) | (3,000) | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 22.91 | $ 24.61 | $ 22.91 | $ 24.43 | ||||
$ 22.91 | ||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||
Outstanding Options | 1,650 | 1,650 | ||||||
Option Price | $ 22.91 | $ 22.91 |
Investment and Mortgage-Backe_4
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of Available for Sale Securities) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Gross Realized Losses | $ 67,000 | $ 162,000 | |
Available For Sale Securities Pledged as Collateral, Amortized Cost Basis | 118,900,000 | $ 99,200,000 | |
Pledged Assets Separately Reported, Other Debt Securities Available-for-sale or Held-for-investment | 118,000,000 | 100,500,000 | |
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 376,910,106 | 380,374,568 | |
Available-for-sale Securities, Gross Unrealized Gains | 1,969,797 | 5,840,528 | |
Available-for-sale Securities, Gross Unrealized Losses | 5,127,610 | 1,241,190 | |
Available-for-sale Securities, Fair Value Disclosure | 373,752,293 | 384,973,906 | |
Proceeds From Sale of Available For Sale Securities Including Mortgage Backed Securities | 28,600,000 | 46,800,000 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 60,381,306 | 59,623,185 | |
Available-for-sale Securities, Gross Unrealized Gains | 897,641 | 2,789,233 | |
Available-for-sale Securities, Gross Unrealized Losses | 797,693 | 56,851 | |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 29,900,000 | 26,900,000 | |
Available-for-sale Securities, Fair Value Disclosure | 29,800,000 | ||
Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | 503,000 | $ 870,000 | 1,288 |
Collateralized Loan Obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 12,957,559 | 8,522,043 | |
Available-for-sale Securities, Gross Unrealized Losses | 9,096 | 1,546 | |
Available-for-sale Securities, Gross Realized Gains | 33,076 | ||
SBA Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 118,275,224 | 123,324,802 | |
Available-for-sale Securities, Gross Unrealized Gains | 227,093 | 1,113,160 | |
Available-for-sale Securities, Gross Unrealized Losses | 1,277,257 | 189,518 | |
Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 182,045,631 | 186,732,705 | |
Available-for-sale Securities, Gross Unrealized Gains | 811,987 | 1,936,847 | |
Available-for-sale Securities, Gross Unrealized Losses | 2,977,163 | 973,572 | |
State Tax Credit investment [Domain] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 88,350 | ||
Equity Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 155,000 | 155,000 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 | |
Taxable Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 3,007,036 | 2,016,833 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | 66,401 | 19,703 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | 60,481,254 | 62,355,567 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Loan Obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | 12,981,539 | 8,521,785 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | SBA Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | 117,225,060 | 124,248,444 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | 179,880,455 | 187,695,980 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | State Tax Credit investment [Domain] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | 88,350 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | 155,000 | 155,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Taxable Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Fair Value Disclosure | $ 2,940,635 | $ 1,997,130 |
Investment and Mortgage-Backe_5
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of Held to Maturity Securities, Contractual Maturities) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Gross Realized Losses | $ 67,000 | $ 162,000 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Less Than One Year, Amortized Cost | 1,125,559 | |
One – Five Years, Amortized Cost | 11,035,958 | |
Five – Ten Years, Amortized Cost | 42,005,204 | |
After Ten Years, Amortized Cost | 140,697,754 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 376,910,106 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less Than One Year, Fair Value | 1,122,015 | |
One – Five Years, Fair Value | 10,987,529 | |
Five – Ten Years, Fair Value | 41,714,850 | |
After Ten Years, Fair Value | 140,047,444 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 373,752,293 |
Investment and Mortgage-Backe_6
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of Temporarily Impaired Securities, Fair Value and Unrealized losses) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available For Sale, Percent of Unrealized Losses for Securities in a Continuous Loss Position, 12 Months or Longer | 47.10% | 34.60% |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 192,050,857 | $ 100,967,638 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 78,753,982 | 33,529,120 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 270,804,839 | 134,496,758 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 2,711,392 | 811,332 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 2,416,218 | 429,858 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 5,127,610 | 1,241,190 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,057,695 | 7,556,014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,057,695 | 7,556,014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 9,096 | 1,546 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 9,096 | 1,546 |
SBA Bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 79,678,260 | 24,433,422 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 14,490,089 | 5,588,532 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 94,168,349 | 30,021,954 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 964,997 | 151,459 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 312,260 | 38,059 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 1,277,257 | 189,518 |
Tax Exempt Municipal Bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 32,933,452 | 4,406,162 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,384,426 | 4,328,229 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 39,317,878 | 8,734,391 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 492,761 | 13,852 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 304,932 | 42,999 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 797,693 | 56,851 |
Taxable Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,969,285 | 1,997,130 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 971,350 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,940,635 | 1,997,130 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 32,952 | 19,703 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 33,449 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 66,401 | 19,703 |
Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 75,412,165 | 62,574,910 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 56,908,117 | 23,612,359 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 132,320,282 | 86,187,269 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,211,586 | 624,772 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 1,765,577 | 348,800 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 2,977,163 | $ 973,572 |
Investment and Mortgage-Backe_7
Investment and Mortgage-Backed Securities, Available for Sale (Narrative) (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | $ 376,910,106 | $ 380,374,568 | |
Available-for-sale Securities, Fair Value Disclosure | 373,752,293 | 384,973,906 | |
Available For Sale Securities Pledged as Collateral, Amortized Cost Basis | 118,900,000 | $ 99,200,000 | |
Proceeds From Sale of Available For Sale Securities Including Mortgage Backed Securities | $ 28,600,000 | $ 46,800,000 | |
Percent of unrealized losses for securities in a continuous loss position for 12 months or more | 47.10% | 34.60% | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 64 | 30 | |
Available-for-sale Securities, Gross Realized Losses | $ 67,000 | 162,000 | |
GNMA Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 82,100,000 | $ 101,300,000 | |
Available-for-sale Securities, Fair Value Disclosure | 81,500,000 | 102,100,000 | |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 29,900,000 | 26,900,000 | |
Available-for-sale Securities, Fair Value Disclosure | 29,800,000 | ||
Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Gross Realized Gains | $ 503,000 | $ 870,000 | $ 1,288 |
Investment and Mortgage-Backe_8
Investment and Mortgage-Backed Securities, Held to Maturity (Schedule of investment and mortgage-backed securities held to maturity) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Held to maturity, gross unrealized gains | $ 69,733 | ||
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | 22,292,027 | ||
Held to maturity, gross unrealized losses | 661,729 | ||
Debt Securities, Held-to-maturity, Fair Value | 21,700,031 | $ 27,054,934 | |
Available-for-sale Securities, Gross Realized Losses | 67,000 | $ 162,000 | |
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt Securities, Held-to-maturity | 998,434 | ||
Held to maturity, gross unrealized gains | 0 | ||
Held to maturity, gross unrealized losses | 32,813 | ||
Debt Securities, Held-to-maturity, Fair Value | 965,621 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt Securities, Held-to-maturity | 21,293,593 | ||
Held to maturity, gross unrealized gains | 69,733 | ||
Held to maturity, gross unrealized losses | 628,916 | ||
Debt Securities, Held-to-maturity, Fair Value | $ 20,734,410 |
Investment and Mortgage-Backe_9
Investment and Mortgage-Backed Securities, Held to Maturity (Schedule of Held-to-maturity Securities) (Details) | Sep. 30, 2018USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 11,070,475 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 661,729 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 321,204 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 9,033,203 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 340,525 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 20,103,678 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |
Schedule of Held-to-maturity Securities [Line Items] | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 11,070,475 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 628,916 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 321,204 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 8,067,582 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 307,712 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | $ 19,138,057 |
Investment and Mortgage-Back_10
Investment and Mortgage-Backed Securities, Held to Maturity (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Proceeds from Sale of Held-to-maturity Securities | $ 0 | |
Debt Securities, Held-to-maturity, Fair Value | 21,700,031 | $ 27,054,934 |
Pledged Financial Instruments, Not Separately Reported, Other Debt Securities Held-to-maturity | 20,400,000 | 22,300,000 |
Held to maturity pledged as collateral, fair value | 19,900,000 | |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Held-to-maturity, Fair Value | 13,500,000 | 15,900,000 |
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment | $ 13,900,000 | $ 15,900,000 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Gross | $ 438,132,539 | $ 402,609,383 |
Loans Held For Sale | 737,098 | 3,051,950 |
Total Loans Receivable, Gross | 438,869,637 | 405,661,333 |
Allowance For Loan Losses | 8,602,078 | 8,221,618 |
Loans and Leases Receivable, Loans in Process | 6,048,974 | 6,804,533 |
Loans and Leases Receivable, Deferred Income | 238,797 | 141,985 |
Loans Receivable, Allowance, Loans in Process, and Deferred Loan Fees | 14,889,849 | 15,168,136 |
Total Loans Receivable, Net | 423,979,788 | 390,493,197 |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Gross | 85,193,491 | 81,255,167 |
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Gross | 57,962,835 | 56,761,695 |
Commercial Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Gross | 27,407,959 | 26,777,893 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Gross | $ 267,568,254 | $ 237,814,628 |
Loans Receivable, Net (Schedu_2
Loans Receivable, Net (Schedule of Allowance for Loan Losses) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance At Beginning of Period | $ 8,611,176 | $ 8,202,632 | $ 8,221,618 | $ 8,356,231 |
Provision for Loan Losses | 150,000 | 100,000 | 150,000 | 100,000 |
Charge Offs | (172,492) | (259,438) | (319,856) | (514,685) |
Recoveries | 13,394 | 125,994 | 550,316 | 227,642 |
Balance At End of Period | 8,602,078 | 8,169,188 | 8,602,078 | 8,169,188 |
Residential Real Estate 1 [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance At Beginning of Period | 1,309,069 | 1,450,176 | 1,233,843 | 1,360,346 |
Provision for Loan Losses | 128,753 | 80,766 | 217,702 | 241,112 |
Charge Offs | (27,489) | (114,869) | (41,419) | (186,372) |
Recoveries | 0 | 1,014 | 207 | 2,001 |
Balance At End of Period | 1,410,333 | 1,417,087 | 1,410,333 | 1,417,087 |
Consumer [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance At Beginning of Period | 1,213,774 | 1,122,473 | 1,144,815 | 996,620 |
Provision for Loan Losses | (21,106) | 110,023 | 51,275 | 234,342 |
Charge Offs | (27,181) | (82,087) | (118,207) | (123,942) |
Recoveries | 8,519 | 15,392 | 96,123 | 58,781 |
Balance At End of Period | 1,174,006 | 1,165,801 | 1,174,006 | 1,165,801 |
Commercial Business [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance At Beginning of Period | 1,077,433 | 880,642 | 1,011,227 | 882,999 |
Provision for Loan Losses | (144,996) | (842) | (46,272) | 2,690 |
Charge Offs | 0 | 0 | (32,518) | (5,889) |
Recoveries | 0 | 0 | 0 | 0 |
Balance At End of Period | 932,437 | 879,800 | 932,437 | 879,800 |
Commercial Real Estate 1 [Member] | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance At Beginning of Period | 5,010,900 | 4,749,341 | 4,831,733 | 5,116,266 |
Provision for Loan Losses | 187,349 | (89,947) | (72,705) | (378,144) |
Charge Offs | (117,822) | (62,482) | (127,712) | (198,482) |
Recoveries | 4,875 | 109,588 | 453,986 | 166,860 |
Balance At End of Period | $ 5,085,302 | $ 4,706,500 | $ 5,085,302 | $ 4,706,500 |
Loans Receivable, Net (Financin
Loans Receivable, Net (Financing Receivable Credit Quality Indicators) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Indicators [Table Text Block] | The tables below summarize the balance within each risk category by loan type, excluding loans held for sale, at September 30, 2018 and December 31, 2017 . September 30, 2018 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 76,083,485 $ 3,558,567 $ 1,308,296 $ 4,243,143 $ 85,193,491 Consumer 49,309,083 5,848,589 479,473 2,325,690 57,962,835 Commercial Business 22,569,651 4,135,663 359,785 342,860 27,407,959 Commercial Real Estate 190,029,320 47,269,195 20,101,394 10,168,345 267,568,254 Total $ 337,991,539 $ 60,812,014 $ 22,248,948 $ 17,080,038 $ 438,132,539 December 31, 2017 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 73,225,237 $ 2,352,536 $ 1,384,222 $ 4,293,172 $ 81,255,167 Consumer 52,249,017 1,862,340 344,361 2,305,977 56,761,695 Commercial Business 23,396,550 2,066,749 767,048 547,546 26,777,893 Commercial Real Estate 158,232,465 53,798,061 21,269,279 4,514,823 237,814,628 Total $ 307,103,269 $ 60,079,686 $ 23,764,910 $ 11,661,518 $ 402,609,383 | |
Financing Receivable, Gross | $ 438,132,539 | $ 402,609,383 |
Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 85,193,491 | 81,255,167 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 57,962,835 | 56,761,695 |
Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 27,407,959 | 26,777,893 |
Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 267,568,254 | 237,814,628 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 17,080,038 | 11,661,518 |
Substandard [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 4,243,143 | 4,293,172 |
Substandard [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 2,325,690 | 2,305,977 |
Substandard [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 342,860 | 547,546 |
Substandard [Member] | Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 10,168,345 | 4,514,823 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 22,248,948 | 23,764,910 |
Special Mention [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 1,308,296 | 1,384,222 |
Special Mention [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 479,473 | 344,361 |
Special Mention [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 359,785 | 767,048 |
Special Mention [Member] | Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 20,101,394 | 21,269,279 |
Caution [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 60,812,014 | 60,079,686 |
Caution [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 3,558,567 | 2,352,536 |
Caution [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 5,848,589 | 1,862,340 |
Caution [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 4,135,663 | 2,066,749 |
Caution [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 47,269,195 | 53,798,061 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 337,991,539 | 307,103,269 |
Pass [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 76,083,485 | 73,225,237 |
Pass [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 49,309,083 | 52,249,017 |
Pass [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | 22,569,651 | 23,396,550 |
Pass [Member] | Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Gross | $ 190,029,320 | $ 158,232,465 |
Loans Receivable, Net (Past Due
Loans Receivable, Net (Past Due Financing Receivables) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 6,324,140 | $ 6,996,614 |
Financing Receivable, Recorded Investment, Current | 431,808,399 | 395,612,769 |
Financing Receivable, Gross | 438,132,539 | 402,609,383 |
Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 967,793 | 1,344,638 |
Financing Receivable, Recorded Investment, Current | 84,225,698 | 79,910,529 |
Financing Receivable, Gross | 85,193,491 | 81,255,167 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,348,551 | 872,744 |
Financing Receivable, Recorded Investment, Current | 56,614,284 | 55,888,951 |
Financing Receivable, Gross | 57,962,835 | 56,761,695 |
Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 224,158 | 287,770 |
Financing Receivable, Recorded Investment, Current | 27,183,801 | 26,490,123 |
Financing Receivable, Gross | 27,407,959 | 26,777,893 |
Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,783,638 | 4,491,462 |
Financing Receivable, Recorded Investment, Current | 263,784,616 | 233,323,166 |
Financing Receivable, Gross | 267,568,254 | 237,814,628 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,332,918 | 3,393,753 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 473,728 | 395,763 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 275,395 | 604,809 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 187,558 | 185,526 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,396,237 | 2,207,655 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 602,712 | 551,937 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 164,359 | 85,178 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 31,600 | 102,244 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 406,753 | 364,515 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,388,510 | 3,050,924 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 494,065 | 948,875 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 908,797 | 182,757 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,000 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 1,980,648 | $ 1,919,292 |
Loans Receivable, Net (Schedu_3
Loans Receivable, Net (Schedule of non-accrual loans by category) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 9,997,676 | $ 5,717,755 | |
FInancing Receivable, Recorded Investment, Nonaccrual Status, Percentage | [1] | 2.30% | 1.50% |
Financing Receivable Recorded Investment in Non-accrual Status, Increase (Decrease) | $ 4,279,921 | ||
Financing Receivable Recorded Investment in Non-accrual Status, Percent, Increase (Decrease) | 74.90% | ||
Residential Real Estate 1 [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 2,246,142 | $ 1,948,524 | |
FInancing Receivable, Recorded Investment, Nonaccrual Status, Percentage | [1] | 0.50% | 0.50% |
Financing Receivable Recorded Investment in Non-accrual Status, Increase (Decrease) | $ 297,618 | ||
Financing Receivable Recorded Investment in Non-accrual Status, Percent, Increase (Decrease) | 15.30% | ||
Commercial Business [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 83,006 | $ 109,401 | |
FInancing Receivable, Recorded Investment, Nonaccrual Status, Percentage | [1] | 0.00% | 0.00% |
Financing Receivable Recorded Investment in Non-accrual Status, Increase (Decrease) | $ (26,395) | ||
Financing Receivable Recorded Investment in Non-accrual Status, Percent, Increase (Decrease) | (24.10%) | ||
Commercial Real Estate 1 [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 6,487,224 | $ 3,340,904 | |
FInancing Receivable, Recorded Investment, Nonaccrual Status, Percentage | [1] | 1.50% | 0.80% |
Financing Receivable Recorded Investment in Non-accrual Status, Increase (Decrease) | $ 3,146,320 | ||
Financing Receivable Recorded Investment in Non-accrual Status, Percent, Increase (Decrease) | 94.20% | ||
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 1,181,304 | $ 318,926 | |
FInancing Receivable, Recorded Investment, Nonaccrual Status, Percentage | [1] | 0.30% | 0.10% |
Financing Receivable Recorded Investment in Non-accrual Status, Increase (Decrease) | $ 862,378 | ||
Financing Receivable Recorded Investment in Non-accrual Status, Percent, Increase (Decrease) | 270.40% | ||
[1] | PERCENT OF TOTAL LOANS HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS. |
Loans Receivable, Net (Schedu_4
Loans Receivable, Net (Schedule of loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | $ 0 | $ 0 | ||
Balance At Beginning of Period | 8,611,176 | $ 8,202,632 | 8,221,618 | $ 8,356,231 | |
Provision for Loan Losses | 150,000 | 100,000 | 150,000 | 100,000 | |
Charge Offs | 172,492 | 259,438 | 319,856 | 514,685 | |
Recoveries | 13,394 | 125,994 | 550,316 | 227,642 | |
Balance At End of Period | 8,602,078 | 8,169,188 | 8,602,078 | 8,169,188 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,602,078 | 8,602,078 | 8,221,618 | ||
Financing Receivable, Allowance for Credit Losses | 8,602,078 | 8,602,078 | 8,221,618 | ||
Commercial Real Estate 1 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,085,302 | 5,085,302 | 4,831,733 | ||
Financing Receivable, Allowance for Credit Losses | 5,085,302 | 5,085,302 | 4,831,733 | ||
Commercial Business [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 932,437 | 932,437 | 1,011,227 | ||
Financing Receivable, Allowance for Credit Losses | 932,437 | 932,437 | 1,011,227 | ||
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,174,006 | 1,174,006 | 1,144,815 | ||
Financing Receivable, Allowance for Credit Losses | 1,174,006 | 1,174,006 | 1,144,815 | ||
Residential Real Estate 1 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,410,333 | 1,410,333 | 1,233,843 | ||
Financing Receivable, Allowance for Credit Losses | 1,410,333 | 1,410,333 | $ 1,233,843 | ||
Residential Real Estate 1 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance At Beginning of Period | 1,309,069 | 1,450,176 | 1,233,843 | 1,360,346 | |
Provision for Loan Losses | 128,753 | 80,766 | 217,702 | 241,112 | |
Charge Offs | 27,489 | 114,869 | 41,419 | 186,372 | |
Recoveries | 0 | 1,014 | 207 | 2,001 | |
Balance At End of Period | 1,410,333 | 1,417,087 | 1,410,333 | 1,417,087 | |
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance At Beginning of Period | 1,213,774 | 1,122,473 | 1,144,815 | 996,620 | |
Provision for Loan Losses | (21,106) | 110,023 | 51,275 | 234,342 | |
Charge Offs | 27,181 | 82,087 | 118,207 | 123,942 | |
Recoveries | 8,519 | 15,392 | 96,123 | 58,781 | |
Balance At End of Period | 1,174,006 | 1,165,801 | 1,174,006 | 1,165,801 | |
Commercial Business [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance At Beginning of Period | 1,077,433 | 880,642 | 1,011,227 | 882,999 | |
Provision for Loan Losses | (144,996) | (842) | (46,272) | 2,690 | |
Charge Offs | 0 | 0 | 32,518 | 5,889 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance At End of Period | 932,437 | 879,800 | 932,437 | 879,800 | |
Commercial Real Estate 1 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Balance At Beginning of Period | 5,010,900 | 4,749,341 | 4,831,733 | 5,116,266 | |
Provision for Loan Losses | 187,349 | (89,947) | (72,705) | (378,144) | |
Charge Offs | 117,822 | 62,482 | 127,712 | 198,482 | |
Recoveries | 4,875 | 109,588 | 453,986 | 166,860 | |
Balance At End of Period | $ 5,085,302 | $ 4,706,500 | $ 5,085,302 | $ 4,706,500 |
Loans Receivable, Net (Schedu_5
Loans Receivable, Net (Schedule of loans evaluated individually for impairment and collectively evaluated for impairment in loans receivable) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | $ 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 8,602,078 | 8,221,618 |
Financing Receivable, Allowance for Credit Losses | 8,602,078 | 8,221,618 |
Financing Receivable, Individually Evaluated for Impairment | 12,595,869 | 8,442,306 |
Financing Receivable, Collectively Evaluated for Impairment | 425,536,670 | 394,167,077 |
Financing Receivable, Gross | $ 438,132,539 | 402,609,383 |
Loans and Leases Receivable, Valuation Period for New Appraisal | 24 months | |
Residential Real Estate 1 [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,410,333 | 1,233,843 |
Financing Receivable, Allowance for Credit Losses | 1,410,333 | 1,233,843 |
Financing Receivable, Individually Evaluated for Impairment | 1,928,136 | 1,883,741 |
Financing Receivable, Collectively Evaluated for Impairment | 83,265,355 | 79,371,426 |
Financing Receivable, Gross | 85,193,491 | 81,255,167 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,174,006 | 1,144,815 |
Financing Receivable, Allowance for Credit Losses | 1,174,006 | 1,144,815 |
Financing Receivable, Individually Evaluated for Impairment | 956,087 | 181,617 |
Financing Receivable, Collectively Evaluated for Impairment | 57,006,748 | 56,580,078 |
Financing Receivable, Gross | 57,962,835 | 56,761,695 |
Commercial Business [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 932,437 | 1,011,227 |
Financing Receivable, Allowance for Credit Losses | 932,437 | 1,011,227 |
Financing Receivable, Individually Evaluated for Impairment | 78,006 | 100,401 |
Financing Receivable, Collectively Evaluated for Impairment | 27,329,953 | 26,677,492 |
Financing Receivable, Gross | 27,407,959 | 26,777,893 |
Commercial Real Estate 1 [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,085,302 | 4,831,733 |
Financing Receivable, Allowance for Credit Losses | 5,085,302 | 4,831,733 |
Financing Receivable, Individually Evaluated for Impairment | 9,633,640 | 6,276,547 |
Financing Receivable, Collectively Evaluated for Impairment | 257,934,614 | 231,538,081 |
Financing Receivable, Gross | $ 267,568,254 | $ 237,814,628 |
Loans Receivable, Net (Impaired
Loans Receivable, Net (Impaired Financing Receivables) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivables, Loans Defaulted | $ 570,000 | $ 611,000 | $ 570,000 | $ 611,000 | |
Impaired financing receivable, recorded investment | 12,595,869 | 12,595,869 | $ 8,442,306 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 14,944,280 | 14,944,280 | 11,077,416 | ||
Impaired Financing Receivable, Average Recorded Investment | 12,929,703 | 10,330,441 | 14,034,311 | 10,896,410 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 42,699 | 46,522 | 173,348 | 184,923 | |
Residential Real Estate 1 [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,928,137 | 1,928,137 | 1,883,741 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,482,806 | 2,482,806 | 2,333,741 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,967,761 | 2,613,299 | 2,407,872 | 2,939,263 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 2,226 | 10,585 | 25,339 | |
Impaired financing receivable, related allowance | 0 | 0 | 0 | ||
Impaired financing receivable, recorded investment | 1,928,137 | 1,928,137 | 1,883,741 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 2,482,806 | 2,482,806 | 2,333,741 | ||
Impaired Financing Receivable, Average Recorded Investment | 1,967,761 | 2,613,299 | 2,407,872 | 2,939,263 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 2,226 | 10,585 | 25,339 | |
Consumer [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 956,086 | 956,086 | 181,617 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 964,386 | 964,386 | 209,427 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 957,392 | 240,005 | 1,043,893 | 294,002 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | 0 | ||
Impaired financing receivable, recorded investment | 956,086 | 956,086 | 181,617 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 964,386 | 964,386 | 209,427 | ||
Impaired Financing Receivable, Average Recorded Investment | 957,392 | 240,005 | 1,043,893 | 294,002 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Commercial Business [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 78,006 | 78,006 | 100,401 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 973,006 | 973,006 | 950,401 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 78,206 | 145,401 | 87,284 | 145,401 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired financing receivable, related allowance | 0 | 0 | 0 | ||
Impaired financing receivable, recorded investment | 78,006 | 78,006 | 100,401 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 973,006 | 973,006 | 950,401 | ||
Impaired Financing Receivable, Average Recorded Investment | 78,206 | 145,401 | 87,284 | 145,401 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Commercial Real Estate 1 [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 9,633,640 | 9,633,640 | 6,276,547 | ||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 10,524,082 | 10,524,082 | 7,583,847 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 9,926,344 | 7,331,736 | 10,495,262 | 7,517,744 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 42,699 | 44,296 | 162,763 | 159,584 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | 0 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
Impaired financing receivable, related allowance | 0 | 0 | 0 | ||
Impaired financing receivable, recorded investment | 9,633,640 | 9,633,640 | 6,276,547 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 10,524,082 | 10,524,082 | 7,583,847 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment | 9,926,344 | 7,331,736 | 10,495,262 | 7,517,744 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 42,699 | $ 44,296 | 162,763 | $ 159,584 | |
Fair Value, Measurements, Nonrecurring | Impaired Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired financing receivable, related allowance | $ 0 | $ 0 | $ 0 |
Loans Receivable, Net (Narrativ
Loans Receivable, Net (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)loanpayments | Sep. 30, 2018USD ($)loan | Dec. 31, 2017USD ($) | Sep. 30, 2017loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Nonperforming Loans, Accrual Status, Minimum Consecutive Payments | 6 | 90 | ||
TDRs included in impaired loans | $ 4,000,000 | $ 4,000,000 | $ 4,100,000 | |
Financing Receivable, Modifications, Subsequent Default, Aggregate Number of Contracts | loan | 1 | 1 | 2 | |
Days Past Due to Be Considered In Default | 30 | |||
Review period to request a new third party appraisal | 24 months | |||
Impaired Financing Receivable, Recorded Investment | $ 12,595,869 | $ 12,595,869 | $ 8,442,306 |
Regulatory Matters (Regulatory
Regulatory Matters (Regulatory capital amounts and ratios) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | ||
Actual, Amount | $ 83,660,000 | $ 78,790,000 |
Actual, Ratio | 15.50% | 15.7591% |
For Capital Adequacy, Amount | $ 32,339,340 | $ 29,997,900 |
For Capital Adequacy, Ratio | 6.00% | 6.00% |
Total Risk-Based Capital (To Risk Weighted Assets) | ||
Actual, Amount | $ 90,418,000 | $ 85,066,000 |
Actual, Ratio | 16.80% | 17.01439% |
For Capital Adequacy, Amount | $ 43,119,120 | $ 39,997,200 |
For Capital Adequacy, Ratio | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 78,660,000 | $ 73,790,000 |
Common Equity Tier One Capital Ratio | 14.60% | 14.75903% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 24,254,505 | $ 22,498,425 |
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | ||
Actual, Amount | $ 83,660,000 | $ 78,790,000 |
Actual, Ratio | 9.30% | 9.13019% |
For Capital Adequacy, Amount | $ 35,978,600 | $ 34,518,440 |
For Capital Adequacy, Ratio | 4.00% | 4.00% |
Security Federal Bank [Member] | ||
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | ||
Actual, Amount | $ 89,073,000 | $ 88,275,000 |
Actual, Ratio | 16.53069% | 17.66175% |
For Capital Adequacy, Amount | $ 32,330,040 | $ 29,988,540 |
For Capital Adequacy, Ratio | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 43,107,000 | $ 39,985,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Total Risk-Based Capital (To Risk Weighted Assets) | ||
Actual, Amount | $ 95,831,000 | $ 94,547,000 |
Actual, Ratio | 17.78488% | 18.91663% |
For Capital Adequacy, Amount | $ 43,106,720 | $ 39,984,720 |
For Capital Adequacy, Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 53,883,000 | $ 49,981,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Common Equity Tier One Capital | $ 89,073,000 | $ 88,275,000 |
Common Equity Tier One Capital Ratio | 16.53069% | 17.66175% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 24,247,530 | $ 22,491,405 |
Common Equity Tier One Capital Required to be Well-Capitalized | 35,024,000 | 32,488,000 |
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | ||
Actual, Amount | $ 89,073,000 | $ 88,275,000 |
Actual, Ratio | 9.9046% | 10.23116% |
For Capital Adequacy, Amount | $ 35,972,360 | $ 34,512,200 |
For Capital Adequacy, Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 44,965,000 | $ 43,140,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Carrying Amounts and Fair Val_3
Carrying Amounts and Fair Value of Financial Instruments (Fair value measurements, recurring basis) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Liabilities, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | $ 0 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 373,752,293 | $ 384,973,906 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 373,752,293 | 384,973,906 |
State Tax Credit investment [Domain] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 88,350 | 0 |
Taxable Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 2,940,635 | 1,997,130 |
US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 81,500,000 | 102,100,000 |
Equity Securities | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 155,000 | 155,000 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 179,880,455 | 187,695,980 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 60,481,254 | 62,355,567 |
SBA Bonds | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 117,225,060 | 124,248,444 |
Collateralized Loan Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 12,981,539 | $ 8,521,785 |
Carrying Amounts and Fair Val_4
Carrying Amounts and Fair Value of Financial Instruments (Fair value measurements, nonrecurring basis) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 858,242 | $ 1,115,671 | |||
Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 14,191,209 | 12,609,927 | |||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | |||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 737,098 | 3,051,950 | |||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 13,454,111 | 9,557,977 | |||
Mortgage Loans Held For Sale | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 737,098 | 3,051,950 | |||
Mortgage Loans Held For Sale | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | |||
Mortgage Loans Held For Sale | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 737,098 | 3,051,950 | |||
Mortgage Loans Held For Sale | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | |||
Collateral Dependent Impaired Loans (1) | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | [1] | 8,442,306 | |||
Impaired financing receivable, related allowance | 0 | 0 | |||
Collateral Dependent Impaired Loans (1) | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | [2] | 0 | [1] | |
Collateral Dependent Impaired Loans (1) | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | [2] | 0 | [1] | |
Collateral Dependent Impaired Loans (1) | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 12,595,869 | [2] | 8,442,306 | [1] | |
Foreclosed Assets | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 858,242 | 1,115,671 | |||
Foreclosed Assets | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | |||
Foreclosed Assets | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 0 | 0 | |||
Foreclosed Assets | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 1,115,671 | ||||
[1] | IMPAIRED LOANS ABOVE ARE REPORTED NET OF SPECIFIC RESERVES. THERE WERE no SPECIFIC RESRVES AT SEPTEMBER 30, 2018 AND DECEMBER 31, 2017. no | ||||
[2] | 10. Carrying Amounts and Fair Value of Financial InstrumentsThe Company has adopted accounting guidance which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value under generally accepted accounting principles. During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet and to measure that fair value using an exit price notion, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at September 30, 2018 were determined based on these requirements. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets.Accounting guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).Level 1 - Quoted Market Price in Active MarketsValuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. 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. Treasuries and money market funds.Level 2 -Significant Other Observable InputsValuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities 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 certain derivative contracts.Level 3 - Significant Unobservable InputsValuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.Investment Securities Available for SaleInvestment securities available for sale are recorded at fair value on a recurring basis. At September 30, 2018, the Company’s investment portfolio was comprised of government and agency bonds, mortgage-backed securities issued by government agencies or GSEs, private label CMO mortgage-backed securities, municipal securities, one state tax credit and one equity investment. Fair value measurement is based upon prices obtained from third party pricing services that use independent pricing models which rely on a variety of factors including reported trades, broker/dealer quotes, benchmark yields, economic and industry events and other relevant market information. As a result, these securities are classified as Level 2.10. Carrying Amounts and Fair Value of Financial Instruments, ContinuedMortgage Loans Held for SaleThe Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with the FHLMC or other investors, are carried in the Company’s loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with the Company’s customers. Therefore, these loans present very little market risk for the Company.The Company usually delivers a commitment to, and receives funding from, the investor within 30 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts" basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination. These loans are classified as Level 2.Impaired LoansThe Company does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established as necessary. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as impaired, management measures the impairment by determining the fair value of the collateral for the loan.Fair value is estimated using one of the following methods: fair value of the collateral less estimated costs to sell, discounted cash flows, or market value of the loan based on similar debt. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, the Company reviews the most recent appraisal and if it is over 24 months old will request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, management may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. Specifically as an example, in situations where the collateral on a nonperforming commercial real estate loan is out of the Company’s primary market area, management would typically order an independent appraisal immediately, at the earlier of the date the loan becomes nonperforming or immediately following the determination that the loan is impaired. However, as a second example, on a nonperforming commercial real estate loan where management is familiar with the property and surrounding areas and where the original appraisal value far exceeds the recorded investment in the loan, management may perform an internal analysis whereby the previous appraisal value would be reviewed and adjusted for current conditions including recent sales of similar properties in the area and any other relevant economic trends. These valuations are reviewed at a minimum on a quarterly basis.Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2018, our impaired loans were generally evaluated based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. The Company records impaired loans as nonrecurring Level 3. At September 30, 2018 and December 31, 2017, the recorded investment in impaired loans was $12.6 million and $8.4 million, respectively. Foreclosed AssetsForeclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Foreclosed assets are recorded as nonrecurring Level 3. 10. Carrying Amounts and Fair Value of Financial Instruments, ContinuedAssets measured at fair value on a recurring basis were as follows at September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3Student Loan Pools$— $12,981,539 $— $— $8,521,785 $—SBA Bonds— 117,225,060 — — 124,248,444 —Tax Exempt Municipal Bonds— 60,481,254 — — 62,355,567 —Taxable Municipal Bonds— 2,940,635 — — 1,997,130 —Mortgage-Backed Securities— 179,880,455 — — 187,695,980 —State Tax Credit— 88,350 — — — —Equity Securities— 155,000 — — 155,000 —Total$— $373,752,293 $— $— $384,973,906 $—There were no liabilities measured at fair value on a recurring basis at September 30, 2018 or December 31, 2017. The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. The tables below present assets measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall. September 30, 2018Assets:Level 1 Level 2 Level 3 TotalMortgage Loans Held For Sale$— $737,098 $— $737,098Collateral Dependent Impaired Loans (1)— — 12,595,869 12,595,869Foreclosed Assets— — 858,242 858,242Total$— $737,098 $13,454,111 $14,191,209 December 31, 2017Assets:Level 1 Level 2 Level 3 TotalMortgage Loans Held For Sale$— $3,051,950 $— $3,051,950Collateral Dependent Impaired Loans (1)— — 8,442,306 8,442,306Foreclosed Assets— — 1,115,671 1,115,671Total$— $3,051,950 $9,557,977 $12,609,927 |
Carrying Amounts and Fair Val_5
Carrying Amounts and Fair Value of Financial Instruments (Significant unobservable inputs used in the fair value measurements) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Other Real Estate Owned (OREO) | $ 858,242 | $ 858,242 | $ 1,115,671 | ||||
Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | $ 14,191,209 | 14,191,209 | 12,609,927 | ||||
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | [1] | 8,442,306 | |||||
Significant Unobservable Inputs | Discount Rates/ Discounts to Appraised Values | ||||||
Foreclosed Assets | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | $ 858,242 | $ 858,242 | 1,115,671 | ||||
Significant Unobservable Inputs | Discount Rates/ Discounts to Appraised Values | ||||||
Minimum | Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Significant Unobservable Inputs, Percentage Range | 7.00% | ||||||
Minimum | Foreclosed Assets | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Significant Unobservable Inputs, Percentage Range | 13.00% | ||||||
Maximum | Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Significant Unobservable Inputs, Percentage Range | 97.00% | ||||||
Maximum | Foreclosed Assets | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Significant Unobservable Inputs, Percentage Range | 100.00% | ||||||
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | $ 13,454,111 | $ 13,454,111 | 9,557,977 | ||||
Fair Value, Inputs, Level 3 | Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | $ 12,595,869 | [2] | $ 12,595,869 | [2] | 8,442,306 | [1] | |
Fair Value, Inputs, Level 3 | Foreclosed Assets | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | $ 1,115,671 | ||||||
[1] | IMPAIRED LOANS ABOVE ARE REPORTED NET OF SPECIFIC RESERVES. THERE WERE no SPECIFIC RESRVES AT SEPTEMBER 30, 2018 AND DECEMBER 31, 2017. no | ||||||
[2] | 10. Carrying Amounts and Fair Value of Financial InstrumentsThe Company has adopted accounting guidance which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value under generally accepted accounting principles. During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet and to measure that fair value using an exit price notion, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company’s fair values for financial instruments at September 30, 2018 were determined based on these requirements. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets.Accounting guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).Level 1 - Quoted Market Price in Active MarketsValuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. 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. Treasuries and money market funds.Level 2 -Significant Other Observable InputsValuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, mortgage-backed securities, municipal bonds, corporate debt securities 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 certain derivative contracts.Level 3 - Significant Unobservable InputsValuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.Investment Securities Available for SaleInvestment securities available for sale are recorded at fair value on a recurring basis. At September 30, 2018, the Company’s investment portfolio was comprised of government and agency bonds, mortgage-backed securities issued by government agencies or GSEs, private label CMO mortgage-backed securities, municipal securities, one state tax credit and one equity investment. Fair value measurement is based upon prices obtained from third party pricing services that use independent pricing models which rely on a variety of factors including reported trades, broker/dealer quotes, benchmark yields, economic and industry events and other relevant market information. As a result, these securities are classified as Level 2.10. Carrying Amounts and Fair Value of Financial Instruments, ContinuedMortgage Loans Held for SaleThe Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with the FHLMC or other investors, are carried in the Company’s loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with the Company’s customers. Therefore, these loans present very little market risk for the Company.The Company usually delivers a commitment to, and receives funding from, the investor within 30 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts" basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination. These loans are classified as Level 2.Impaired LoansThe Company does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established as necessary. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as impaired, management measures the impairment by determining the fair value of the collateral for the loan.Fair value is estimated using one of the following methods: fair value of the collateral less estimated costs to sell, discounted cash flows, or market value of the loan based on similar debt. The fair value of the collateral less estimated costs to sell is the most frequently used method. Typically, the Company reviews the most recent appraisal and if it is over 24 months old will request a new third party appraisal. Depending on the particular circumstances surrounding the loan, including the location of the collateral, the date of the most recent appraisal and the value of the collateral relative to the recorded investment in the loan, management may order an independent appraisal immediately or, in some instances, may elect to perform an internal analysis. Specifically as an example, in situations where the collateral on a nonperforming commercial real estate loan is out of the Company’s primary market area, management would typically order an independent appraisal immediately, at the earlier of the date the loan becomes nonperforming or immediately following the determination that the loan is impaired. However, as a second example, on a nonperforming commercial real estate loan where management is familiar with the property and surrounding areas and where the original appraisal value far exceeds the recorded investment in the loan, management may perform an internal analysis whereby the previous appraisal value would be reviewed and adjusted for current conditions including recent sales of similar properties in the area and any other relevant economic trends. These valuations are reviewed at a minimum on a quarterly basis.Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2018, our impaired loans were generally evaluated based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. The Company records impaired loans as nonrecurring Level 3. At September 30, 2018 and December 31, 2017, the recorded investment in impaired loans was $12.6 million and $8.4 million, respectively. Foreclosed AssetsForeclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Foreclosed assets are recorded as nonrecurring Level 3. 10. Carrying Amounts and Fair Value of Financial Instruments, ContinuedAssets measured at fair value on a recurring basis were as follows at September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3Student Loan Pools$— $12,981,539 $— $— $8,521,785 $—SBA Bonds— 117,225,060 — — 124,248,444 —Tax Exempt Municipal Bonds— 60,481,254 — — 62,355,567 —Taxable Municipal Bonds— 2,940,635 — — 1,997,130 —Mortgage-Backed Securities— 179,880,455 — — 187,695,980 —State Tax Credit— 88,350 — — — —Equity Securities— 155,000 — — 155,000 —Total$— $373,752,293 $— $— $384,973,906 $—There were no liabilities measured at fair value on a recurring basis at September 30, 2018 or December 31, 2017. The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. The tables below present assets measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall. September 30, 2018Assets:Level 1 Level 2 Level 3 TotalMortgage Loans Held For Sale$— $737,098 $— $737,098Collateral Dependent Impaired Loans (1)— — 12,595,869 12,595,869Foreclosed Assets— — 858,242 858,242Total$— $737,098 $13,454,111 $14,191,209 December 31, 2017Assets:Level 1 Level 2 Level 3 TotalMortgage Loans Held For Sale$— $3,051,950 $— $3,051,950Collateral Dependent Impaired Loans (1)— — 8,442,306 8,442,306Foreclosed Assets— — 1,115,671 1,115,671Total$— $3,051,950 $9,557,977 $12,609,927 |
Carrying Amounts and Fair Val_6
Carrying Amounts and Fair Value of Financial Instruments (Summary of the carrying value and estimated fair value of financial instruments) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Financial Assets: | ||||
Cash And Cash Equivalents | $ 20,110,000 | $ 10,320,000 | ||
Cash and Cash Equivalents | 20,109,901 | 10,319,624 | $ 15,158,779 | $ 9,374,549 |
Certificates of Deposits With Other Banks | 1,950,000 | 1,950,000 | ||
Investments | 396,044,320 | 412,054,876 | ||
Certificates of Deposit with Other Banks | 1,950,010 | 1,950,010 | ||
Investment And Mortgage-Backed Securities | 395,452,000 | 412,029,000 | ||
Loans Receivable, Net | 423,979,788 | 390,493,197 | ||
Loans Receivable, Net | 414,125,000 | 386,613,000 | ||
FHLB Stock | 2,486,000 | 2,932,000 | ||
Federal Home Loan Bank (FHLB) Stock, at Cost | 2,485,700 | 2,931,900 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 511,154,000 | 472,015,000 | ||
Certificate Accounts, Carrying Value | 239,844,000 | 230,092,000 | ||
Certificate Accounts | 236,693,000 | 227,949,000 | ||
Advances From FHLB | 39,000,000 | 51,680,000 | ||
Advances From FHLB | 38,602,000 | 51,318,000 | ||
Other Borrowed Money | 12,652,000 | 11,307,000 | ||
Notes Payable | 3,900,000 | 8,500,000 | ||
Other Borrowings | 12,652,270 | 11,307,161 | ||
Notes Payable, Fair Value Disclosure | 3,900,000 | 8,500,000 | ||
Senior Convertible Debentures | 6,064,000 | 6,064,000 | ||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | ||
Fair Value, Inputs, Level 1 | ||||
Financial Assets: | ||||
Cash And Cash Equivalents | 10,320,000 | |||
Cash and Cash Equivalents | 20,110,000 | |||
Certificates of Deposits With Other Banks | 0 | 0 | ||
Investment And Mortgage-Backed Securities | 0 | 0 | ||
Loans Receivable, Net | 0 | 0 | ||
FHLB Stock | 2,932,000 | |||
Federal Home Loan Bank (FHLB) Stock, at Cost | 2,486,000 | |||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 511,154,000 | 472,015,000 | ||
Certificate Accounts | 0 | 0 | ||
Advances From FHLB | 0 | 0 | ||
Other Borrowed Money | 11,307,000 | |||
Other Borrowings | 12,652,000 | |||
Senior Convertible Debentures | 0 | 0 | ||
Junior Subordinated Debentures | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial Assets: | ||||
Cash And Cash Equivalents | 0 | 0 | ||
Certificates of Deposits With Other Banks | 1,950,000 | |||
Certificates of Deposit with Other Banks | 1,950,000 | |||
Investment And Mortgage-Backed Securities | 395,452,000 | 412,029,000 | ||
Loans Receivable, Net | 0 | 0 | ||
FHLB Stock | 0 | 0 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 0 | 0 | ||
Certificate Accounts | 236,693,000 | 227,949,000 | ||
Advances From FHLB | 38,602,000 | 51,318,000 | ||
Other Borrowed Money | 0 | 0 | ||
Notes Payable, Fair Value Disclosure | 3,900,000 | 8,500,000 | ||
Senior Convertible Debentures | 6,064,000 | 6,064,000 | ||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | ||
Fair Value, Inputs, Level 3 | ||||
Financial Assets: | ||||
Cash And Cash Equivalents | 0 | 0 | ||
Certificates of Deposits With Other Banks | 0 | 0 | ||
Investment And Mortgage-Backed Securities | 0 | 0 | ||
Loans Receivable, Net | 414,125,000 | 386,613,000 | ||
FHLB Stock | 0 | 0 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 0 | 0 | ||
Certificate Accounts | 0 | 0 | ||
Advances From FHLB | 0 | 0 | ||
Other Borrowed Money | 0 | 0 | ||
Senior Convertible Debentures | 0 | 0 | ||
Junior Subordinated Debentures | $ 0 | $ 0 |
Carrying Amounts and Fair Val_7
Carrying Amounts and Fair Value of Financial Instruments (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2018USD ($)investment | Dec. 31, 2017USD ($) | |
Fair Value Disclosures [Abstract] | ||
Number of equity investments | investment | 1 | |
Investor funding period | 30 days | |
Review period to request a new third party appraisal | 24 months | |
Impaired financing receivable, recorded investment | $ 12,595,869 | $ 8,442,306 |
Fair value disclosure, off-balance sheet risks, amount, liability | $ 86,200,000 |
Non-interest Income (Details)
Non-interest Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Service Fees on Deposit Accounts | $ 262,821 | $ 274,717 | $ 770,493 | $ 776,469 |
Check card revenue | 320,708 | 282,686 | 966,365 | 838,302 |
Trust Income | 249,000 | 186,000 | 725,000 | 554,000 |
Commissions From Insurance Agency | 196,817 | 172,074 | 525,153 | 451,311 |
Gain on Sale of Investment Securities | 0 | 79,363 | 436,304 | 707,902 |
Gain on Sale of Loans | 345,396 | 373,636 | 999,045 | 894,053 |
BOLI Income | 135,000 | 788,133 | 405,000 | 1,028,133 |
Other | 241,837 | 205,524 | 712,785 | 542,250 |
Noninterest Income | $ 2,069,681 | $ 2,362,133 | $ 5,858,247 | $ 5,792,420 |
Uncategorized Items - sfdl-2018
Label | Element | Value |
Dividends, Share-based Compensation | us-gaap_DividendsShareBasedCompensation | $ 25,358 |
AOCI Attributable to Parent [Member] | ||
Reclass from AOCI to Retained Earnings for stranded tax effect | sfdl_ReclassfromAOCItoRetainedEarningsforstrandedtaxeffect | 611,091 |
Additional Paid-in Capital [Member] | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalShareBasedCompensationStockOptionsRequisiteServicePeriodRecognition | 10,305 |
Retained Earnings [Member] | ||
Reclass from AOCI to Retained Earnings for stranded tax effect | sfdl_ReclassfromAOCItoRetainedEarningsforstrandedtaxeffect | (611,091) |
Common Stock [Member] | ||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 5 |
Nonvested restricted stock [Member] | ||
Dividends, Share-based Compensation | us-gaap_DividendsShareBasedCompensation | $ 25,358 |