Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 20, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Security Federal Corporation | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000818677 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 3,252,884 | ||
Entity Public Float | $ 57.5 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and Cash Equivalents | $ 12,536,311 | $ 12,705,910 |
Certificates of Deposit with Other Banks | 950,005 | 1,200,010 |
Investment and Mortgage-Backed Securities: | ||
Available For Sale: (Amortized Cost of $420,876,924 and $430,241,854 at December 31, 2014 and 2013, Respectively) | 414,644,840 | 386,100,837 |
Held To Maturity: (Fair Value of $69,965,869 and $34,122,925 at March 31, 2012 and 2011, Respectively) | 19,246,935 | 23,638,013 |
Investments | 433,891,775 | 409,738,850 |
Held For Sale | 3,990,606 | 1,781,985 |
Loans and Leases Receivable, Net Amount | 448,868,129 | 428,271,532 |
Total Loans Receivable, Net | 452,858,735 | 430,053,517 |
Accrued Interest Receivable: | ||
Loans | 1,211,826 | 1,257,683 |
Mortgage-Backed Securities | 551,214 | 591,849 |
Investment Securities | 1,635,497 | 1,877,844 |
Total Accrued Interest Receivable | 3,398,537 | 3,727,376 |
Premises and Equipment, Net | 27,219,883 | 24,174,707 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 2,536,500 | 2,204,000 |
Other Real Estate Owned (OREO) | 677,740 | 722,442 |
Bank Owned Life Insurance (BOLI) | 21,501,647 | 21,237,893 |
Goodwill | 1,199,754 | 1,199,754 |
Other Assets | 3,737,978 | 5,649,800 |
Total Assets | 963,227,541 | 912,614,259 |
Liabilities: | ||
Deposit Accounts | 771,407,482 | 767,496,707 |
Advances From FHLB | 38,138,000 | 34,030,000 |
Other Borrowings | 11,579,819 | 10,698,429 |
Other Notes Payable, Noncurrent | 0 | 2,362,500 |
Junior Subordinated Debentures | 5,155,000 | 5,155,000 |
Advance Payments By Borrowers For Taxes and Insurance | 207,582 | 258,505 |
Senior Convertible Debentures | 6,044,000 | 6,064,000 |
Other Liabilities | 6,204,122 | 6,030,685 |
Total Liabilities | 871,469,536 | 832,095,826 |
Commitments (Notes 5 and 19) | ||
Shareholders' Equity: | ||
Common Stock, $.01 Par Value; Authorized 5,000,000 Shares; Issued And Outstanding Shares, 3,144,934 And 2,944,001, Respectively, At March 31, 2012 And 2011 | 31,578 | 31,548 |
Additional Paid-In Capital | 12,308,179 | 12,235,341 |
Treasury Stock, At Cost (200,933 Shares At March 31, 2012 And 2011, Respectively) | (4,330,712) | (4,330,712) |
Nonvested Restricted Stock | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | 4,467,527 | (27,909) |
Retained Earnings | 79,281,433 | 72,610,165 |
Total Shareholders' Equity | 91,758,005 | 80,518,433 |
Total Liabilities and Shareholders' Equity | $ 963,227,541 | $ 912,614,259 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | $ 408,695,280 | $ 386,141,513 |
Fair Value of Investment And Mortgage-Backed Securities Held To Maturity | 19,805,841 | 23,249,400 |
Allowance For Loan Losses | $ 9,225,574 | $ 9,171,717 |
Shareholders' Equity: | ||
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 | 22,000 | 22,000 |
Serial Preferred Stock Shares Outstanding | 22,000 | 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 | 3,157,787 | 3,154,829 |
Common Stock Shares Outstanding | 2,956,854 | 2,953,896 |
Treasury Stock Shares Held | 200,933 | 200,933 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income: | |||
Loans | $ 24,669,073 | $ 22,903,299 | $ 20,072,107 |
Mortgage-Backed Securities | 6,657,925 | 5,437,099 | 4,802,240 |
Investment Securities | 5,504,563 | 4,658,194 | 4,869,996 |
Other | 102,550 | 73,483 | 42,562 |
Total Interest Income | 36,934,111 | 33,072,075 | 29,786,905 |
Interest Expense: | |||
NOW and Money Market Accounts | 2,060,844 | 1,164,373 | 584,425 |
Statement Savings Accounts | 73,961 | 54,173 | 41,819 |
Certificate Accounts | 4,308,596 | 2,643,555 | 1,920,182 |
FHLB Advances and Other Borrowings | 961,947 | 670,486 | 571,810 |
Interest Expense, Other | 35,515 | 231,958 | 419,732 |
Senior Convertible Debentures | 483,520 | 483,520 | 486,031 |
Junior Subordinated Debentures | 216,492 | 201,354 | 151,302 |
Total Interest Expense | 8,311,500 | 5,449,419 | 4,175,301 |
Net Interest Income | 28,622,611 | 27,622,656 | 25,611,604 |
Provision for Loan Losses | (375,000) | (925,000) | (300,000) |
Net Interest Income After Provision For Loan Losses | 28,247,611 | 26,697,656 | 25,311,604 |
Non-Interest Income: | |||
Gain on Sale of Investment Securities | 819,053 | 573,266 | 494,146 |
Gain on Sale of Loans | 1,728,741 | 1,250,530 | 1,179,837 |
Service Fees on Deposit Accounts | 1,069,470 | 1,060,159 | 1,048,345 |
Commissions From Insurance Agency | 674,991 | 682,367 | 584,020 |
Trust Income | 1,061,200 | 974,000 | 796,000 |
BOLI Income | 678,609 | 540,000 | 1,160,133 |
Check card revenue | 1,449,416 | 1,284,954 | 1,138,501 |
Grant Revenue | 478,049 | 343,078 | 227,282 |
Other | 1,137,614 | 960,792 | 716,019 |
Total Non-Interest Income | 9,097,143 | 7,669,146 | 7,344,283 |
Non-Interest Expense: | |||
Compensation and Employee Benefits | 16,838,702 | 15,504,020 | 14,375,064 |
Occupancy | 2,354,347 | 2,228,521 | 2,180,404 |
Advertising | 796,213 | 546,799 | 596,440 |
Depreciation and Maintenance of Equipment | 2,601,104 | 2,307,555 | 2,057,038 |
FDIC Insurance Premiums | 84,022 | 278,287 | 185,541 |
Net (Recovery) Cost of Operation of OREO | (65,772) | (361,513) | 9,729 |
Payments of FHLBank Borrowings, Financing Activities | 0 | ||
Other | 5,262,101 | 5,086,386 | 4,897,871 |
Total Non-Interest Expense | 27,870,717 | 25,590,055 | 24,302,087 |
Income Before Income Taxes | 9,474,037 | 8,776,747 | 8,353,800 |
Provision For Income Taxes | 1,679,550 | 1,569,526 | 1,829,267 |
income tax expense excluding adjustment | 1,569,526 | ||
Write down of deferred tax asset | 0 | 0 | 606,193 |
Net Income | 7,794,487 | 7,207,221 | $ 5,918,340 |
Net Income Available To Common Shareholders | $ 7,794,487 | $ 7,207,221 | |
Net Income Per Common Share (Basic) | $ 2.64 | $ 2.44 | $ 2.01 |
Net Income Per Common Share (Diluted) | 2.50 | 2.32 | 1.91 |
Cash Dividend Per Share On Common Stock | $ 0.40 | $ 0.36 | $ 0.36 |
Weighted Average Shares Outstanding (Basic) | 2,955,737 | 2,953,446 | 2,945,918 |
Weighted Average Shares Outstanding (Diluted) | 3,257,937 | 3,256,646 | 3,250,069 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 7,794,487 | $ 7,207,221 | $ 5,918,340 |
Other Comprehensive Income: | |||
Reclassification Adjustment for Gains Included in Net Income, Net of Taxes of $204,763; $143,317 and $187,775 at December 31, 2019, 2018 and 2017, Respectively | (614,290) | (429,949) | (306,371) |
Unrealized Holding Gains (Losses) on Securities Available For Sale, Net of Taxes of $1,675,405; $(1,001,537) and $1,330,097 at December 31, 2019, 2018 and 2017, Respectively | (5,133,884) | 3,065,211 | (2,161,122) |
Amortization of Unrealized Gains on AFS Securities Transferred to HTM | (24,158) | (75,962) | (102,715) |
Other Comprehensive Income (Loss) | 4,495,436 | (3,571,122) | 1,752,036 |
Comprehensive Income | $ 12,289,923 | $ 3,636,099 | $ 7,670,376 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Taxes on Unrealized Holding Gains On Securities Available For Sale | $ 1,675,405 | $ (1,001,537) | $ 1,330,097 |
Taxes on Reclassification Adjustment For Gains Included In Net Income | $ 204,763 | $ 143,317 | $ 187,775 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity and Comprehensive Income - USD ($) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Retained Earnings |
Nonvested Restricted Stock | $ 0 | |||||
Balance at at Dec. 31, 2018 | 80,518,433 | $ 31,548 | $ 12,235,341 | $ (4,330,712) | $ (27,909) | $ 72,610,165 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 7,794,487 | |||||
Other Comprehensive Loss, Net of Tax: | 4,495,436 | |||||
Cash Dividends On Common Stock | (1,123,219) | |||||
Balance at at Dec. 31, 2019 | 91,758,005 | $ 31,578 | $ 12,308,179 | $ (4,330,712) | $ 4,467,527 | $ 79,281,433 |
Nonvested Restricted Stock | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 7,794,487 | $ 7,207,221 | $ 5,918,340 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | |||
Depreciation Expense | 1,589,671 | 1,500,000 | 1,500,000 |
Stock Option Compensation Expense | 0 | 25,358 | |
Discount Accretion and Premium Amortization, Net | 5,290,316 | 5,705,663 | 5,678,074 |
Provisions for Loan Losses | 375,000 | 925,000 | 300,000 |
Earnings on BOLI | (540,000) | (540,000) | (506,000) |
BOLI death benefits | (138,609) | 0 | (654,133) |
Gain on Sales of Loans | (1,728,741) | (1,250,530) | (1,179,837) |
Loss (Gain) on Sales of Mortgage-Backed Securities (MBS) | 139,390 | (139,739) | (246,212) |
Gain on Sales of Investment Securities | (958,443) | (204,185) | (248,469) |
Gain (Loss) on Sale of Other Investments | (229,342) | ||
Gain on Sales of OREO | (184,864) | (588,720) | (359,629) |
Write Down on OREO | 22,000 | 56,000 | 158,121 |
Amortization of Deferred Costs on Loans | 202,684 | 110,036 | 159,284 |
Proceeds From Sale of Loans Held For Sale | 61,466,054 | 46,595,060 | 43,156,408 |
Origination of Loans Held For Sale | (61,945,934) | (44,074,565) | (40,784,614) |
Decrease (Increase) in Accrued Interest Receivable: | |||
Loans | 45,857 | (190,026) | (29,213) |
MBS | 40,635 | (2,849) | 16,474 |
Investment Securities | 242,347 | (177,883) | (292,038) |
(Decrease) Increase in Advance Payments By Borrowers | (50,923) | (11,256) | 9,181 |
Other, Net | 233,478 | (177,273) | 978,912 |
Net Cash Provided By Operating Activities | 12,266,241 | 14,500,346 | 13,567,409 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from Maturities, Prepayments and Calls of Held-to-maturity Securities | 1,000,000 | 2,000,000 | 1,000,000 |
Payments for Other Deposits | 0 | 0 | (600,005) |
Purchase of MBS Available For Sale (AFS) | (106,828,636) | (55,486,020) | (63,945,253) |
Proceeds from Maturities, Prepayments and Calls of MBS AFS | 32,283,649 | 37,491,568 | 38,559,363 |
Purchase of MBS Held To Maturity (HTM) | 0 | (1,989,922) | (2,917,426) |
Purchase of Investment Securities AFS | (83,980,247) | (57,280,900) | (95,561,763) |
Proceeds from Payments and Maturities of Investment Securities AFS | 35,243,895 | 31,024,291 | 24,035,102 |
Maturities of Investment Securities Held To Maturity | 3,165,575 | 3,119,612 | 3,892,085 |
Proceeds from Sale of Investment Securities AFS | 35,174,873 | 15,198,888 | 51,788,340 |
Payments to Acquire Held-to-maturity Securities | 0 | 0 | 3,997,750 |
Proceeds From Sale of Mortgage-Backed Securities AFS | 61,306,939 | 18,081,756 | 20,549,491 |
Redemption of Certificates of Deposits with Other Banks | 250,005 | 750,000 | 1,095,000 |
Purchase of FHLB Stock | (11,907,800) | (5,717,400) | (7,019,800) |
Redemption of FHLB Stock | 11,575,300 | 6,445,300 | 6,864,400 |
Payment to Acquire Life Insurance Policy, Investing Activities | 0 | (1,900,000) | (2,000,000) |
Proceeds from Life Insurance Policy | 414,855 | 0 | 1,463,285 |
Increase in Loans Receivable | (22,007,081) | (42,300,871) | (33,002,340) |
Proceeds from Sale of OREO | 1,040,366 | 1,361,499 | 2,387,799 |
Purchase and Improvement of Premises and Equipment | (4,634,847) | (2,864,597) | (3,065,662) |
Net Cash Used By Investing Activities | (47,903,154) | (52,066,796) | (60,475,134) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Increase in Deposit Accounts | 3,910,775 | 65,390,088 | 48,003,341 |
Proceeds from FHLB Advances | 342,223,000 | 204,923,000 | 227,436,000 |
Repayment of FHLB Advances | (338,115,000) | (222,573,000) | (224,151,000) |
Proceeds from (Repayments of) Notes Payable | (2,362,500) | (6,137,500) | (4,500,000) |
Proceeds from (Repayments of) Other Debt | 881,390 | (608,732) | 1,969,013 |
Repayments of Convertible Debt | 0 | 0 | (20,000) |
Proceeds from Stock Options Exercised | 0 | 10,310 | 176,175 |
Dividends to Common Stock Shareholders | (1,123,219) | (1,063,626) | (1,060,729) |
Net Cash Provided By Financing Activities | 35,467,314 | 39,952,736 | 47,852,800 |
Net (Decrease) Increase in Cash and Cash Equivalents | (169,599) | 2,386,286 | 945,075 |
Cash and Cash Equivalents at Beginning of Year | 12,705,910 | 10,319,624 | 9,374,549 |
Cash And Cash Equivalents At End Of Year | 12,536,311 | 12,705,910 | 10,319,624 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest | 7,882,527 | 5,574,723 | 4,128,260 |
Income Taxes | 1,764,541 | 1,521,811 | 1,667,673 |
Supplemental Schedule of Non Cash Transactions: | |||
Transfers from Loans Receivable to OREO | 832,800 | 435,550 | 580,748 |
Increase (Decrease) in Unrealized Gains on Securities AFS, Net of Taxes | $ 4,495,436 | $ (3,571,122) | $ 1,752,036 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | e following is a description of the more significant accounting and reporting policies used in the preparation and presentation of the accompanying consolidated financial statements. All significant intercompany transactions have been eliminated in consolidation. Basis of Consolidation and Nature of Operations The accompanying consolidated financial statements include the accounts of Security Federal Corporation (the “Company”) and its wholly owned subsidiary, Security Federal Bank (the “Bank”) and the Bank’s wholly owned subsidiaries, Security Federal Insurance, Inc. (“SFINS”), Security Federal Investments, Inc. ("SFINV") and Security Financial Services Corporation (“SFSC”). Security Federal Corporation has a wholly owned subsidiary, Security Federal Statutory Trust (the “Trust”), which issued and sold fixed and floating rate capital securities of the Trust. However, under current accounting guidance, the Trust is not consolidated in the financial statements. The Bank is primarily engaged in the business of accepting savings and demand deposits and originating mortgage loans and other loans to individuals and small businesses for various personal and commercial purposes. SFINS is an insurance agency offering auto, business, health and home insurance. SFINS has a wholly owned subsidiary, Collier Jennings Financial Corporation which has as subsidiaries Security Federal Auto Insurance, The Auto Insurance Store Inc., and Security Federal Premium Pay Plans Inc. Security Federal Premium Pay Plans Inc. has one wholly owned premium finance subsidiary and also has an ownership interest in four other premium finance subsidiaries. SFINV was formed to hold investment securities and allow for better management of the securities portfolio. SFSC is currently inactive. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, interest-bearing balances in other banks, and federal funds sold. Cash equivalents have original maturities of three months or less. Investment and Mortgage-Backed Securities Investment securities, including mortgage-backed securities, are classified in one of three categories: held to maturity, available for sale, or trading. Management determines the appropriate classification of debt securities at the time of purchase. Investment securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. These securities are recorded at cost and adjusted for amortization of premiums and accretion of discounts over a level yield basis. Callable debt securities held at a premium are amortized until the earliest call date. Prepayment assumptions on mortgage-backed securities are anticipated. Management classifies investment securities that are not considered to be held to maturity as available for sale. This type of investment is stated at fair value with unrealized gains and losses, net of tax, reported in a separate component of shareholders' equity (“accumulated other comprehensive income (loss)”). Gains and losses from sales of investment and mortgage-backed securities available for sale are determined using the specific identification method. The Company had no investment in trading securities. Loans Receivable Held for Investment Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest is recognized over the term of the loan based on the outstanding loan balance. Fees charged for originating loans, if any, are deferred and offset by the deferral of certain direct expenses associated with loans originated. The net deferred fees are recognized as yield adjustments by applying the interest method. Allowance for Loan Losses 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. (1) Significant 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 bank regulatory agencies 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 less estimated selling costs. In accordance with our policy, non-accrual commercial loans with a balance less than $200,000 and non-accrual consumer loans with a balance less than $100,000 are deemed immaterial and therefore excluded from the individual impairment review. 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. Loans Receivable Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations. Other Real Estate Owned Other real estate owned represents real estate and other assets acquired through foreclosure or repossession and are initially recorded at the estimated fair value less costs to sell. Subsequent improvements are capitalized. Costs of holding real estate, such as property taxes, insurance, general maintenance and interest expense, are expensed as a period cost. Fair values are reviewed regularly and allowances for possible losses are established when the carrying value of the asset owned exceeds the fair value less estimated costs to sell. Fair values are generally determined by reference to an outside appraisal. Premises and Equipment Premises and equipment are carried at cost, net of accumulated depreciation. Depreciation of premises and equipment is amortized on a straight-line method over the estimated useful life of the related asset. Estimated lives are 7 to 40 years for buildings and improvements and generally 3 to 10 years for furniture, fixtures and equipment. Maintenance and repairs are charged to current expense. The cost of major renewals and improvements are capitalized. Intangible Assets and Goodwill The Company's goodwill is a result of the excess of the cost over the fair value of net assets resulting from the Company's acquisition of Collier Jennings Financial Corporation in July 2006. Goodwill is reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Intangible assets are amortized over their estimated economic lives using methods that reflect the pattern in which the economic benefits are utilized. The intangible assets, which consisted of the customer list and employment contracts resulting from the Company’s acquisition of Collier Jennings Financial Corporation, were fully amortized at December 31, 2019 . Income Taxes Income tax expense or benefit is recognized for the net change during the year in the deferred tax liability or asset. That amount together with income taxes currently payable is the total amount of income tax expense or benefit for the year. Deferred taxes are provided for by the differences in financial reporting bases for assets and liabilities compared with their tax bases. Generally, a current tax liability or asset is established for taxes presently payable or refundable and a deferred tax liability or asset is established for future tax items. A valuation allowance, if applicable, is established for deferred tax assets that may not be realized. Tax bad debt reserves in excess of the base year amount (established as taxable years ending March 31, 1988 or later) would create a deferred tax liability. Deferred income taxes are provided for in differences between the provision for loan losses for financial statement purposes and those allowed for income tax purposes. (1) Significant Accounting Policies, Continued The Company adopted accounting guidance which prescribes a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosures. There have been no gross amounts of unrecognized tax benefits or interest or penalties related to uncertain tax positions since adoption. There are no unrecognized tax benefits that would, if recognized, affect the effective tax rate. There are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months. Years prior to December 31, 2016 are closed for federal, state and local income tax matters. Loan Fees and Costs Associated with Originating Loans Loan fees received, net of direct incremental costs of originating loans, are deferred and amortized over the contractual life of the related loan. The net fees are recognized as yield adjustments by applying the interest method. Prepayments are not anticipated. Interest Income Interest on loans is accrued and credited to income monthly based on the principal balance outstanding and the contractual rate on the loan. The Company places loans on non-accrual status when they become greater than 90 days delinquent or when, in the opinion of management, full collection of principal or interest is unlikely. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received first to principal and then to interest income. The loans are returned to an accrual status when full collection of principal and interest appears likely. Advertising Expense Advertising and public relations costs are generally expensed as incurred. External costs relating to direct mailing costs are expensed in the period in which the direct mailings are sent. Advertising and public relations costs of $796,000 , $547,000 , and $596,000 were included in the Company’s results of operations for the years ended December 31, 2019, 2018 and 2017 , respectively. Stock-Based Compensation The Company accounts for compensation costs under its stock option plans using the fair value method. This method requires the measurement of the cost of employee services received in exchange for an award of equity instruments based upon the fair value of the award on the grant date. The cost of the award is recognized in the income statement over the vesting period of the award. Net Income Per Common Share Accounting guidance specifies computation and presentation requirements for both basic net income per common share ("EPS") and, for entities with complex capital structures, diluted EPS. Basic EPS is computed by dividing net income available to common shareholders 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 potential common shares had been issued. The dilutive effect of options and warrants outstanding is reflected in diluted earnings per share by application of the treasury stock method. The following tables show the effect of dilutive options on the Company’s net income per common share. Year Ended December 31, 2019 Income Shares Per Share Basic EPS $ 7,794,487 2,955,737 $ 2.64 Effect of Dilutive Securities: Senior Convertible Debentures 362,640 302,200 (0.14 ) Diluted EPS $ 8,157,127 3,257,937 $ 2.50 (1) Significant Accounting Policies, Continued Year Ended December 31, 2018 Year Ended December 31, 2017 Income Shares Per Share Income Shares Per Share Basic EPS $ 7,207,221 2,953,446 $ 2.44 $ 5,918,340 2,945,918 $ 2.01 Effect of Dilutive Securities: Stock Options — 0 — — 951 — Senior Convertible Debentures 362,640 303,200 (0.12 ) 301,339 303,200 (0.10 ) Diluted EPS $ 7,569,861 3,256,646 $ 2.32 $ 6,219,679 3,250,069 $ 1.91 There were no stock options outstanding as of December 31, 2019 and 2018; and therefore, no dilutive options in the calculation of diluted EPS for those periods. The average market price used in calculating the assumed number of dilutive shares issued for the year ended December 31, 2017 was $29.05 . Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of income and expenses during the reporting periods. Actual results could differ from those estimates. Recently Issued Accounting Standards The following is a summary of recent authoritative pronouncements that could affect accounting, reporting, and disclosure of financial information by the Company: In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. In July 2018, the FASB further amended the Leases Topic of the ASC to make narrow amendments to clarify how to apply certain aspects of the new leases standard. The amendments also give entities another additional and optional method for transition to the new guidance and to provide lessors with a practical expedient. The amendments were effective for reporting periods beginning after December 15, 2018. The Company adopted the new standard and recorded a right-of-use asset and lease liability of $3.1 million effective January 1, 2019. Additional disclosures required by the ASC have been included in "Note 5 - Premises and Equipment, Net and Leases." In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The guidance significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. The amendments will be effective for the Company for reporting periods beginning after December 15, 2022. Early adoption is permitted. The Company is in the process of identifying required changes to the loan loss estimation models and processes and evaluating the impact of this new guidance. Once adopted, we expect our allowance for loan losses to increase, however, until our evaluation is complete the magnitude of the increase will be unknown. In March 2017, the FASB issued guidance on Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The guidance shortens the amortization period for certain callable debt securities held at a premium. The amendments were effective for the Company for reporting periods beginning after December 15, 2018. The adoption of these amendments did not have a material effect on its consolidated financial statements. In June 2018, the FASB amended the Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as the earlier of the commitment date or date performance was completed. The guidance requires the awards to be measured at the grant-date fair value of the equity instrument. This ASU became effective for reporting periods beginning after December 15, 2018. The adoption of these amendments did not have a material effect on the Company's consolidated financial statements. (1) Significant Accounting Policies, Continued Recently Issued Accounting Standards In August 2018, the FASB amended the Fair Value Measurement Topic of the ASC to remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. The amendments are effective for reporting periods beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this guidance and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2019, the FASB issued guidance to address concerns by lessors that are not manufacturers or dealers when assessing the fair value of underlying assets under the leases standard discussed above and to clarify that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new standard. The amendments are effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In April 2019, the FASB issued guidance to provide entities that have certain financial instruments measured at amortized cost that have credit losses, to irrevocably elect the fair value option in Subtopic 825-10, upon adoption of the June 2016 guidance related to accounting for credit losses and modifying the impairment model for certain debt securities. The fair value option applies to available-for-sale debt securities. This guidance should be applied at adoption on a modified-retrospective basis as a cumulative-effect adjustment to the opening balance of retained earnings in the statement of financial condition. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In December 2019, the FASB issued guidance simplifying the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendments also improve consistent application or and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting authorities are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risk: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default on the Company’s loan portfolio that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable, the valuation of real estate held by the Company, and the valuation of loans held for sale and securities available for sale. The Company is subject to the regulations of various government agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the bank regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loss allowances, and operating restrictions, resulting from the regulators’ judgments based on information available to them at the time of their examination. Reclassifications Certain amounts in prior years’ consolidated financial statements have been reclassified to conform to current period classifications. |
Investment and Mortgage-Backed
Investment and Mortgage-Backed Securities, Available for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment and Mortgage-Backed Securities, Available for Sale | At December 31, 2019 , the Bank held an amortized cost and fair value of $63.2 million and $63.9 million , respectively, in GNMA mortgage-backed securities compared to an amortized cost and fair value of $80.4 million and $80.2 million , respectively, at December 31, 2018 . 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 December 31, 2019 the Bank held an amortized cost and fair value of $15.8 million and $16.1 million , respectively, in private label CMO mortgage-backed securities, compared to an amortized cost and fair value of $29.7 million and $29.5 million , respectively, at December 31, 2018 . 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 are as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair value Student Loan Pools $ 41,088,231 $ — $ 856,401 $ 40,231,830 Small Business Administration (“SBA”) Bonds 111,927,938 622,105 656,944 111,893,099 Tax Exempt Municipal Bonds 43,153,086 4,088,408 — 47,241,494 Taxable Municipal Bonds 15,169,737 35,359 364,686 14,840,410 Mortgage-Backed Securities 197,356,288 3,664,621 582,902 200,438,007 $ 408,695,280 $ 8,410,493 $ 2,460,933 $ 414,644,840 December 31, 2018 Amortized Cost Gross Gross Fair value Student Loan Pools $ 12,934,037 $ 20,713 $ 69,249 $ 12,885,501 SBA Bonds 125,777,016 560,352 890,837 125,446,531 Tax Exempt Municipal Bonds 60,141,164 1,518,974 329,769 61,330,369 Taxable Municipal Bonds 1,998,258 3,546 23,919 1,977,885 Mortgage-Backed Securities 185,291,038 1,073,432 1,903,919 184,460,551 $ 386,141,513 $ 3,177,017 $ 3,217,693 $ 386,100,837 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 December 31, 2019 , the Bank held an amortized cost and fair value of $63.2 million and $63.9 million , respectively, in GNMA mortgage-backed securities compared to an amortized cost and fair value of $80.4 million and $80.2 million , respectively, at December 31, 2018 . 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 December 31, 2019 the Bank held an amortized cost and fair value of $15.8 million and $16.1 million , respectively, in private label CMO mortgage-backed securities, compared to an amortized cost and fair value of $29.7 million and $29.5 million , respectively, at December 31, 2018 . The amortized cost and fair value of investment and mortgage-backed securities available for sale at December 31, 2019 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 below. Amortized Cost Fair Value Due in less than one year $ 18,237 $ 18,134 Due in one year to five years 6,314,205 6,342,172 Due in five to ten years 57,236,558 57,209,659 Due in ten years or more 147,769,992 150,636,868 Mortgage-Backed Securities 197,356,288 200,438,007 $ 408,695,280 $ 414,644,840 (2) Investment and Mortgage-Backed Securities, Available For Sale, Continued 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 $171.4 million and $173.1 million , respectively, at December 31, 2019 and $111.8 million and $111.7 million , respectively, at December 31, 2018 . The Bank received $96.5 million , $33.3 million and $72.3 million in gross proceeds from sales of available for sale securities during the years ended December 31, 2019 , 2018 and 2017 , respectively. As a result, the Bank recognized gross gains of $1.5 million , $732,000 and $1.0 million , respectively, and gross losses of $636,000 , $159,000 and $510,000 , respectively, during the years ended December 31, 2019 , 2018 and 2017 . The tables below summarize gross unrealized losses and the related fair value, aggregated by investment category and length of time that individual available for sale securities have been in a continuous unrealized loss position for the periods indicated. December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Student Loan Pools $ 30,079,497 $ 534,048 $ 10,152,333 $ 322,353 $ 40,231,830 $ 856,401 SBA Bonds 13,844,666 106,110 47,395,036 550,834 61,239,702 656,944 Taxable Municipal Bonds 13,810,279 364,686 — — 13,810,279 364,686 Mortgage-Backed Securities 55,326,064 480,958 7,975,863 101,944 63,301,927 582,902 $ 113,060,506 $ 1,485,802 $ 65,523,232 $ 975,131 $ 178,583,738 $ 2,460,933 December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Student Loan Pools $ 8,384,145 $ 69,249 $ — $ — $ 8,384,145 $ 69,249 SBA Bonds 59,496,936 479,955 25,054,861 410,882 84,551,797 890,837 Tax Exempt Municipal Bonds 4,585,849 91,281 9,626,613 238,488 14,212,462 329,769 Taxable Municipal Bonds — — 980,520 23,919 980,520 23,919 Mortgage-Backed Securities 38,168,598 249,050 81,947,249 1,654,869 120,115,847 1,903,919 $ 110,635,528 $ 889,535 $ 117,609,243 $ 2,328,158 $ 228,244,771 $ 3,217,693 Securities classified as available-for-sale are recorded at fair market value. At December 31, 2019 and 2018 , 39.6% and 72.4% of the unrealized losses, representing 69 and 92 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 Company's review of its investment securities portfolio 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 of the impairment 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 years ended December 31, 2019, 2018 and 2017 . |
Investment and Mortgage-Backe_2
Investment and Mortgage-Backed Securities, Held to Maturity | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment and Mortgage-Backed Securities, Held to Maturity | Investment and Mortgage-Backed Securities, Held to Maturity At December 31, 2019, the Company's entire held to maturity portfolio was comprised of mortgage-backed securities. The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of held to maturity securities at December 31, 2019 and 2018 were as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-Backed Securities (1) $ 19,246,935 $ 560,067 $ 1,161 $ 19,805,841 Total Held To Maturity $ 19,246,935 $ 560,067 $ 1,161 $ 19,805,841 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value FHLMC Bond $ 998,541 $ — $ 20,564 $ 977,977 Mortgage-Backed Securities (1) 22,639,472 78,281 446,330 22,271,423 Total Held To Maturity $ 23,638,013 $ 78,281 $ 466,894 $ 23,249,400 (1) COMPRISED OF GSES OR GNMA MORTGAGE-BACKED SECURITIES 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. At December 31, 2019 , the Bank held an amortized cost and fair value of $11.3 million and $11.6 million , respectively, in GNMA mortgage-backed securities classified as held to maturity compared to an amortized cost and fair value of $13.3 million and $13.1 million , respectively, at December 31, 2018 . The Company has not invested in any private label mortgage-backed securities classified as held to maturity. At December 31, 2019 , 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 $17.5 million and $18.0 million , respectively, compared to an amortized cost and fair value of $19.8 million and $19.4 million , respectively, at December 31, 2018 . The following tables show gross unrealized losses, fair value and length of time that individual held to maturity securities were in a continuous unrealized loss position at December 31, 2019 and 2018 . December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-Backed Securities (1) $ — $ — $ 820,313 $ 1,161 $ 820,313 $ 1,161 $ — $ — $ 820,313 $ 1,161 $ 820,313 $ 1,161 December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses FHLMC Bond $ — $ — $ 977,977 $ 20,564 $ 977,977 $ 20,564 Mortgage-Backed Securities (1) — — 16,855,973 446,330 16,855,973 446,330 $ — $ — $ 17,833,950 $ 466,894 $ 17,833,950 $ 466,894 (1) COMPRISED OF GSES OR GNMA MORTGAGE-BACKED SECURITIES |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net, at December 31, 2019 and 2018 are summarized below. December 31, 2019 2018 Balance % of Total Gross Loans Balance % of Total Gross Loans Residential Real Estate Loans $ 86,404,304 18.4 % $ 83,965,416 18.9 % Consumer Loans 56,331,013 12.0 % 56,907,555 12.8 % Commercial Business Loans 22,234,189 4.8 % 28,086,686 6.3 % Commercial Real Estate Loans 303,550,905 64.8 % 275,960,438 62.0 % Total Loans Held For Investment 468,520,411 100.0 % 444,920,095 100.0 % Loans Held For Sale 3,990,606 1,781,985 Total Loans Receivable, Gross 472,511,017 446,702,080 Less: Allowance For Loan Losses 9,225,574 9,171,717 Loans in Process 9,957,140 7,225,271 Deferred Loan Fees 469,568 251,575 19,652,282 16,648,563 Total Loans Receivable, Net $ 452,858,735 $ 430,053,517 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 following tables summarize the loan grades used by the Company to measure the credit quality of gross loans receivable, excluding those held for sale, by loan segment at December 31, 2019 and 2018 . December 31, 2019 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 76,674,539 $ 4,612,182 $ 1,155,802 $ 3,961,781 $ 86,404,304 Consumer 44,294,400 9,617,301 624,248 1,795,064 56,331,013 Commercial Business 16,140,592 5,486,393 301,462 305,742 22,234,189 Commercial Real Estate 230,810,756 56,025,352 14,285,015 2,429,782 303,550,905 Total $ 367,920,287 $ 75,741,228 $ 16,366,527 $ 8,492,369 $ 468,520,411 December 31, 2018 Special Residential Real Estate $ 75,558,544 $ 3,369,776 $ 958,354 $ 4,078,742 $ 83,965,416 Consumer 46,948,251 6,899,912 567,682 2,491,710 56,907,555 Commercial Business 22,670,318 4,708,036 339,533 368,799 28,086,686 Commercial Real Estate 204,197,354 45,653,796 18,492,785 7,616,503 275,960,438 Total $ 349,374,467 $ 60,631,520 $ 20,358,354 $ 14,555,754 $ 444,920,095 (4) Loans Receivable, Net, Continued The following tables present an age analysis of past due balances by category at December 31, 2019 and 2018 . December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Total Past Due Current Total Loans Receivable Residential Real Estate $ — $ 355,290 $ 144,209 $ 499,499 $ 85,904,805 $ 86,404,304 Consumer 422,443 217,542 81,736 721,721 55,609,292 56,331,013 Commercial Business 147,959 76,515 20,316 244,790 21,989,399 22,234,189 Commercial Real Estate 3,849,424 — 1,352,716 5,202,140 298,348,765 303,550,905 Total $ 4,419,826 $ 649,347 $ 1,598,977 $ 6,668,150 $ 461,852,261 $ 468,520,411 December 31, 2018 30-59 Days 60-89 Days 90 Days or Total Past Due Current Total Loans Residential Real Estate $ — $ 332,000 $ 497,713 $ 829,713 $ 83,135,703 $ 83,965,416 Consumer 555,798 247,894 1,120,462 1,924,154 54,983,401 56,907,555 Commercial Business 205,613 106,163 18,648 330,424 27,756,262 28,086,686 Commercial Real Estate 1,556,863 424,103 1,634,770 3,615,736 272,344,702 275,960,438 Total $ 2,318,274 $ 1,110,160 $ 3,271,593 $ 6,700,027 $ 438,220,068 $ 444,920,095 At December 31, 2019 and 2018 , 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 December 31, 2019 compared to 2018 . December 31, 2019 December 31, 2018 Decrease Amount Percent (1) Amount Percent (1) $ % Non-accrual Loans: Residential Real Estate $ 1,520,485 0.3 % $ 2,084,870 0.5 % $ (564,385 ) (27.1 )% Consumer 319,280 0.1 1,274,673 0.3 (955,393 ) (75.0 ) Commercial Business 122,605 — 124,458 — (1,853 ) (1.5 ) Commercial Real Estate 1,474,036 0.3 3,564,494 0.8 (2,090,458 ) (58.6 ) Total Non-accrual Loans $ 3,436,406 0.7 % $ 7,048,495 1.6 % $ (3,612,089 ) (51.2 )% (1) PERCENT OF GROSS LOANS RECEIVABLE HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS. (4) Loans Receivable, Net, Continued The following tables show the allowance for loan losses by loan category for the years ended December 31, 2019, 2018 and 2017 . For the Year Ended December 31, 2019 Residential Real Estate Consumer Commercial Business Commercial Real Estate Total Beginning Balance $ 1,191,443 $ 1,203,593 $ 923,600 $ 5,853,081 $ 9,171,717 Provision 227,624 324,394 (392,817 ) 215,799 375,000 Charge-Offs (34,599 ) (432,003 ) (1,132 ) (517,583 ) (985,317 ) Recoveries 6,126 114,865 15,113 528,070 664,174 Ending Balance $ 1,390,594 $ 1,210,849 $ 544,764 $ 6,079,367 $ 9,225,574 For the Year Ended December 31, 2018 Residential Commercial Commercial Beginning Balance $ 1,233,843 $ 1,144,815 $ 1,011,227 $ 4,831,733 $ 8,221,618 Provision 2,411 173,235 (55,109 ) 804,463 925,000 Charge-Offs (46,419 ) (224,954 ) (32,518 ) (351,894 ) (655,785 ) Recoveries 1,608 110,497 — 568,779 680,884 Ending Balance $ 1,191,443 $ 1,203,593 $ 923,600 $ 5,853,081 $ 9,171,717 For the Year Ended December 31, 2017 Residential Commercial Commercial Beginning Balance $ 1,360,346 $ 996,620 $ 882,999 $ 5,116,266 $ 8,356,231 Provision 82,909 257,180 261,599 (301,688 ) 300,000 Charge-Offs (211,780 ) (184,161 ) (133,371 ) (301,260 ) (830,572 ) Recoveries 2,368 75,176 — 318,415 395,959 Ending Balance $ 1,233,843 $ 1,144,815 $ 1,011,227 $ 4,831,733 $ 8,221,618 The following tables summarize the impaired loans evaluated individually and collectively for impairment within the allowance for loan losses and loans receivable balances at December 31, 2019 and 2018 . Allowance For Loan Losses Loans Receivable December 31, 2019 Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Residential Real Estate $ — $ 1,390,594 $ 1,390,594 1,086,433 $ 85,317,871 $ 86,404,304 Consumer — 1,210,849 1,210,849 184,402 56,146,611 56,331,013 Commercial Business — 544,764 544,764 64,406 22,169,783 22,234,189 Commercial Real Estate — 6,079,367 6,079,367 1,894,642 301,656,263 303,550,905 Total $ — $ 9,225,574 $ 9,225,574 $ 3,229,883 $ 465,290,528 $ 468,520,411 (4) 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 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 sale, 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 total impaired loans was $6.4 million for year ended December 31, 2019 compared to $11.0 million for the year ended December 31, 2018 . The following tables present information related to impaired loans by loan category as of and for the years ended December 31, 2019, 2018 and 2017 . December 31, 2019 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Recorded: Residential Real Estate $ 1,086,433 $ 1,086,433 $ — $ 1,322,609 $ — Consumer 184,402 192,702 — 1,106,795 — Commercial Business 64,406 959,406 — 71,422 — Commercial Real Estate 1,894,642 2,066,862 — 3,893,786 54,372 Total Residential Real Estate 1,086,433 1,086,433 — 1,322,609 — Consumer 184,402 192,702 — 1,106,795 — Commercial Business 64,406 959,406 — 71,422 — Commercial Real Estate 1,894,642 2,066,862 — 3,893,786 54,372 Total $ 3,229,883 $ 4,305,403 $ — $ 6,394,612 $ 54,372 (4) Loans Receivable, Net, Continued December 31, 2018 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Recorded: Residential Real Estate $ 1,700,861 $ 1,700,861 $ — $ 1,743,906 $ 31,853 Consumer 986,380 994,680 — 502,479 — Commercial Business 77,206 972,206 — 85,020 — Commercial Real Estate 5,084,458 6,116,761 — 8,052,817 212,186 With an Allowance Recorded: Consumer 73,662 73,662 73,662 6,139 — Commercial Real Estate 1,441,558 1,441,558 665,000 636,387 84,881 Total Residential Real Estate 1,700,861 1,700,861 — 1,743,906 31,853 Consumer 1,060,042 1,068,342 73,662 508,618 — Commercial Business 77,206 972,206 — 85,020 — Commercial Real Estate 6,526,016 7,558,319 665,000 8,689,204 297,067 Total $ 9,364,125 $ 11,299,728 $ 738,662 $ 11,026,748 $ 328,920 December 31, 2017 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Recorded: Residential Real Estate $ 1,883,741 $ 2,333,741 $ — $ 2,889,065 $ 24,273 Consumer 181,617 209,427 — 279,183 — Commercial Business 100,401 950,401 — 141,940 — Commercial Real Estate 6,276,547 7,583,847 — 7,483,035 189,373 Total Residential Real Estate 1,883,741 2,333,741 — 2,889,065 24,273 Consumer 181,617 209,427 — 279,183 — Commercial Business 100,401 950,401 — 141,940 — Commercial Real Estate 6,276,547 7,583,847 — 7,483,035 189,373 Total $ 8,442,306 $ 11,077,416 $ — $ 10,793,223 $ 213,646 (4) 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 (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. They 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). The Bank had five TDRs with a total balance of $825,000 included in impaired loans at December 31, 2019 compared to seven TDRs totaling $1.4 million at December 31, 2018 . There were no TDRs restructured during the years ended December 31, 2019, 2018 and 2017 . At December 31, 2019 , there were no TDRs in default. At December 31, 2018 and 2017, one previously restructured loan with a balance of $374,000 and two previously restructured loans with a total balance of $610,000 , respectively, were in default, none of which had been restructured during the same period. 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 will continue to 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 become current and then make a minimum of six consecutive payments in accordance with the loan terms before that loan can be placed back on accrual status. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | Premises and Equipment, Net and Leases Premises and equipment, net, are summarized as follows: December 31, 2019 2018 Land $ 7,708,424 $ 6,693,927 Buildings and Improvements 25,336,734 23,319,946 Furniture and Equipment 12,748,562 11,878,563 Construction in Progress 1,751,176 1,391,986 Total Premises and Equipment 47,544,896 43,284,422 Less: Accumulated Depreciation (20,325,013 ) (19,109,715 ) Total Premises and Equipment, Net $ 27,219,883 $ 24,174,707 Construction in progress of $1.8 million at December 31, 2019 primarily included building and construction costs associated with our newest branch in Augusta, Georgia, scheduled for opening in 2021. At December 31, 2019 the estimated additional costs to complete and equip the branch were approximately $2.0 million. Depreciation expense on premises and equipment was $1.6 million , $1.5 million and $1.5 million for the years ended December 31, 2019, 2018 and 2017 , respectively. Effective January 1, 2019 the Company adopted ASC 842 “Leases.” Currently, the Company has operating leases on six of its branches that are accounted for under this standard. As a result of this standard, the Company recognized both a right-of-use (ROU) asset and lease liability of $3.1 million effective January 1, 2019. During the year ended December 31, 2019 , the Company made cash payments in the amount of $444,000 for operating leases. The lease expense recognized during this period amounted to $458,000 and the lease liability was reduced by $358,000. At December 31, 2019, the Company had ROU assets of $2.7 million and a lease liability of $2.7 million recorded on its consolidated balance sheet. The remaining weighted average lease term is seven years and the weighted average discount rate used is 3.2%. At December 31, 2019, future undiscounted lease payments for operating leases with initial terms of one year or more were as follows: Year ended December 31, 2020 435,553 2021 426,040 2022 437,463 2023 449,271 2024 450,657 Thereafter 869,050 Total undiscounted lease payments 3,068,034 Less: effect of discounting 334,503 Present value of estimated lease payments (lease liability) $ 2,733,531 Total rental expense was $460,000 , $454,000 , and $409,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Five lease agreements with monthly expenses of $7,350 , $900 , $7,900 , $9,950 , and $10,600 have multiple renewal options totaling 30 , 10 , 15 , 45 , and 20 years, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Goodwill Goodwill was recorded in connection with the Company's acquisition of Collier Jennings Financial Corporation in July 2006. The goodwill balance of $1.2 million remained unchanged at both December 31, 2019 and 2018 . In accordance with accounting guidance, the Company evaluates its goodwill on an annual basis. The evaluations were performed as of September 30, 2019 and 2018 for the years ended December 31, 2019 and 2018 , respectively. At the time of the evaluations the Company determined that no impairment existed. Therefore, there was no write-down of goodwill for the years ended December 31, 2019 and 2018 . |
FHLB Stock
FHLB Stock | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
FHLB Stock | FHLB Stock The Bank, as a member of the FHLB of Atlanta, is required to acquire and hold shares of capital stock in the FHLB of Atlanta in an amount equal to a membership component, which was 0.09% of total assets at both December 31, 2019 and 2018 , plus a transaction component equal to 4.25% of outstanding advances (borrowings) from the FHLB of Atlanta at December 31, 2019 and 2018 . The Bank is in compliance with this requirement with an investment in FHLB of Atlanta stock of $2.5 million and $2.2 million at December 31, 2019 and 2018 , respectively. No readily available market exists for this stock and it has no quoted fair value. However, because redemption of this stock has historically been at par, it is carried at cost. |
Repossessed Assets Acquired In
Repossessed Assets Acquired In Settlement Of Loans | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Repossessed Assets Acquired in Settlement of Loans | Other Real Estate Owned The Bank owned $678,000 and $722,000 in OREO at December 31, 2019 and 2018 , respectively. Transactions in OREO for the years ended December 31, 2019, 2018 and 2017 are summarized below. 2019 2018 2017 Balance, beginning of year $ 722,442 $ 1,115,671 $ 2,721,214 Additions 832,800 435,550 580,748 Sales (855,502 ) (772,779 ) (2,028,170 ) Write-downs (22,000 ) (56,000 ) (158,121 ) Balance, end of year $ 677,740 $ 722,442 $ 1,115,671 There were no mortgage loans collateralized by residential real estate property in the process of foreclosure at December 31, 2019 compared to $320,000 at December 31, 2018. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Deposits outstanding at December 31, 2019 and 2018 are summarized below by account type. December 31, 2019 December 31, 2018 Balance Weighted Rate Interest Rate Range Balance Weighted Interest Rate Checking Accounts $ 260,135,924 0.11% 0.00-1.98% $ 219,515,207 0.09% 0.00-1.98% Money Market Accounts 230,693,518 0.72% 0.00-1.48% 261,136,008 0.65% 0.00-2.23% Savings Accounts 51,124,806 0.16% 0.00-1.00% 48,391,799 0.14% 0.00-0.14% Total $ 541,954,248 0.36% 0.00-1.98% $ 529,043,014 0.31% 0.00-2.23% Certificate Accounts: 0.00 – 0.99% $ 28,599,107 $ 70,854,896 1.00 – 1.99% 122,164,536 120,011,938 2.00 – 2.99% 78,689,591 47,586,859 Total $ 229,453,234 1.71% 0.45-2.96% $ 238,453,693 1.37% 0.35-2.86% Total Deposits $ 771,407,482 0.76% 0.00-2.96% $ 767,496,707 0.64% 0.00-2.86% Included in the certificates above were $34.6 million and $33.1 million in brokered deposits at December 31, 2019 and 2018 , respectively, with a weighted average interest rate of 1.87% and 1.86% , respectively. Of the $34.6 million in brokered deposits at December 31, 2019 , $2.0 million mature within one year. At December 31, 2019 and 2018 , the Bank had $141,000 and $59,000 , respectively, in overdrafts that were reclassified to loans. The aggregate amount of certificates of deposit with a minimum denomination of $100,000 was $144.2 million and $151.5 million at December 31, 2019 and 2018 , respectively. Certificate of deposits that met or exceeded the FDIC insurance limit of $250,000 were $77.5 million and $89.2 million at December 31, 2019 and 2018 , respectively. The amounts and scheduled maturities of all certificates of deposit were as follows at December 31, 2019 and 2018 : December 31, 2019 2018 Within 1 Year $ 149,481,000 $ 160,771,824 After 1 Year, Within 2 Years 42,689,147 43,330,060 After 2 Years, Within 3 Years 18,737,910 23,990,251 After 3 Years, Within 4 Years 3,272,862 6,358,577 After 4 Years, Within 5 Years 15,272,315 3,488,598 Thereafter — 514,383 Total Certificates of Deposits $ 229,453,234 $ 238,453,693 |
Advances From Federal Home Loan
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings | Advances From Federal Home Loan Bank and Other Borrowings Advances from the FHLB are summarized by year of maturity and weighted average interest rate at December 31, 2019 below. Amount Weighted Rate 2020 $ 13,138,000 1.88% 2021 25,000,000 1.97% Total $ 38,138,000 1.94% These advances are secured by a blanket collateral agreement with the FHLB by pledging the Bank’s portfolio of residential first mortgage loans and investment securities with an amortized cost and fair value of $100.5 million and $96.7 million , respectively, at December 31, 2019 and $79.1 million and $71.4 million , respectively, at December 31, 2018 . FHLB advances are subject to prepayment penalties. During the years ended December 31, 2019 , 2018 and 2017, the Bank prepaid no FHLB advances. Callable advances are callable at the option of the FHLB. If an advance is called, the Bank has the option to pay off the advance without penalty, re-borrow funds on different terms, or convert the advance to a three-month floating rate advance tied to LIBOR. The Bank did not have any callable FHLB advances at December 31, 2019 . At December 31, 2019 and 2018 , the Bank had $259.2 million and $236.6 million in additional borrowing capacity, respectively, at the FHLB. The Bank had $11.6 million and $10.7 million in other borrowings at December 31, 2019 and 2018 , respectively. These borrowings consist of short-term repurchase agreements with certain commercial demand deposit customers for sweep accounts. The repurchase agreements typically mature within one to three days and the interest rate paid on these borrowings floats monthly with money market type rates. At December 31, 2019 and 2018 , the interest rate paid on the repurchase agreements was 0.50% and 0.25% , respectively. The maximum amount outstanding at any one month end during the year ended December 31, 2019 was $15.8 million compared to $14.3 million during the year ended December 31, 2018 . The Bank had pledged as collateral for these repurchase agreements investment and mortgage-backed securities with amortized costs and fair values of $20.4 million and $20.5 million , respectively, at December 31, 2019 and $16.2 million and $16.5 million , respectively, at December 31, 2018 . |
Junior Subordinated Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures | Junior Subordinated Debentures On September 21, 2006, Security Federal Statutory Trust (the “Trust”), a wholly-owned subsidiary of the Company, issued and sold fixed and floating rate capital securities of the Trust (the “Capital Securities”), which are reported on the consolidated balance sheet as junior subordinated debentures, generating proceeds of $5.2 million . The Trust loaned these proceeds to the Company to use for general corporate purposes, primarily to provide capital to the Bank. The Capital Securities accrue and pay distributions quarterly at a floating rate of three month LIBOR plus 170 basis points which was a rate per annum equal to 3.59% and 4.49% at December 31, 2019 and 2018 , respectively. The distribution rate payable on the Capital Securities is cumulative and payable quarterly in arrears. The Company has the right, subject to events of default, to defer payments of interest on the Capital Securities for a period not to exceed 20 consecutive quarterly periods, provided that no extension period may extend beyond the maturity date of December 15, 2036. The Company has no current intention to exercise its right to defer payments of interest on the Capital Securities. The Capital Securities mature or are mandatorily redeemable upon maturity on December 15, 2036, or upon earlier optional redemption as provided in the indenture. The Company has had the right to redeem the Capital Securities in whole or in part since September 15, 2011. (14) Subordinated Debentures On November 22, 2019, the Company sold and issued to certain institutional investors $17.5 million in aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due 2029 (the “10-Year Notes”) and $12.5 million in aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due 2034 (the “15-Year Notes”, and together with the 10-Year Notes, the “Notes”). The 10-Year Notes have a stated maturity of November 22, 2029, and bear interest at a fixed rate of 5.25% per year, from and including November 22, 2019 but excluding November 22, 2024. From and including November 22, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset semi-annually to an interest rate equal to the then-current three-month LIBOR rate plus 369 basis points. The 15-Year Notes have a stated maturity of November 22, 2034, and bear interest at a fixed rate of 5.25% per year, from and including November 22, 2019 but excluding November 22, 2029. From and including November 22, 2029 to but excluding the maturity date or early redemption date, the interest rate for the 15-Year Notes shall reset semi-annually to an interest rate equal to the then-current three-month LIBOR rate plus 357 basis points. The Notes are payable semi-annually in arrears on June 1 and December 1 of each year commencing June 1, 2020. The Notes are not subject to redemption at the option of the holder and may be redeemed by the Company only under certain limited circumstances prior to November 22, 2024, with respect to the 10-Year Notes, and November 22, 2029, with respect to the 15-Year Notes. The Company may redeem the 10-Year Notes and the 15-Year Notes at its option, in whole at any time, or in part from time to time, after November 22, 2024 and November 22, 2029, respectively. The Notes are unsecured, subordinated obligations of the Company and rank junior in right to payment to the Company’s current and future senior indebtedness, and each Note is equal in right to payment with respect to the other Notes. The Notes have been structured to qualify as Tier 2 capital for the Company under applicable regulatory guidelines. The Company used the net proceeds from the sale of the Notes to fund the redemption of the convertible senior debentures and for general corporate purposes to support future growth. |
Senior Convertible Debentures
Senior Convertible Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Senior Convertible Debentures | Senior Convertible Debentures Effective December 1, 2009, the Company issued $6.1 million in 8.0% convertible senior debentures with a maturity date of December 1, 2029. Since December 1, 2019, the Company had the right to redeem the debentures, in whole or in part, at the option of the Company, at a price equal to 100% of the principal amount of the debentures to be purchased plus any accrued and unpaid interest to, but excluding, the date of redemption. |
SUBORDINATED DEBENTURES (Notes)
SUBORDINATED DEBENTURES (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
SUBORDINATED DEBENTURES [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Junior Subordinated Debentures On September 21, 2006, Security Federal Statutory Trust (the “Trust”), a wholly-owned subsidiary of the Company, issued and sold fixed and floating rate capital securities of the Trust (the “Capital Securities”), which are reported on the consolidated balance sheet as junior subordinated debentures, generating proceeds of $5.2 million . The Trust loaned these proceeds to the Company to use for general corporate purposes, primarily to provide capital to the Bank. The Capital Securities accrue and pay distributions quarterly at a floating rate of three month LIBOR plus 170 basis points which was a rate per annum equal to 3.59% and 4.49% at December 31, 2019 and 2018 , respectively. The distribution rate payable on the Capital Securities is cumulative and payable quarterly in arrears. The Company has the right, subject to events of default, to defer payments of interest on the Capital Securities for a period not to exceed 20 consecutive quarterly periods, provided that no extension period may extend beyond the maturity date of December 15, 2036. The Company has no current intention to exercise its right to defer payments of interest on the Capital Securities. The Capital Securities mature or are mandatorily redeemable upon maturity on December 15, 2036, or upon earlier optional redemption as provided in the indenture. The Company has had the right to redeem the Capital Securities in whole or in part since September 15, 2011. (14) Subordinated Debentures On November 22, 2019, the Company sold and issued to certain institutional investors $17.5 million in aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due 2029 (the “10-Year Notes”) and $12.5 million in aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due 2034 (the “15-Year Notes”, and together with the 10-Year Notes, the “Notes”). The 10-Year Notes have a stated maturity of November 22, 2029, and bear interest at a fixed rate of 5.25% per year, from and including November 22, 2019 but excluding November 22, 2024. From and including November 22, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset semi-annually to an interest rate equal to the then-current three-month LIBOR rate plus 369 basis points. The 15-Year Notes have a stated maturity of November 22, 2034, and bear interest at a fixed rate of 5.25% per year, from and including November 22, 2019 but excluding November 22, 2029. From and including November 22, 2029 to but excluding the maturity date or early redemption date, the interest rate for the 15-Year Notes shall reset semi-annually to an interest rate equal to the then-current three-month LIBOR rate plus 357 basis points. The Notes are payable semi-annually in arrears on June 1 and December 1 of each year commencing June 1, 2020. The Notes are not subject to redemption at the option of the holder and may be redeemed by the Company only under certain limited circumstances prior to November 22, 2024, with respect to the 10-Year Notes, and November 22, 2029, with respect to the 15-Year Notes. The Company may redeem the 10-Year Notes and the 15-Year Notes at its option, in whole at any time, or in part from time to time, after November 22, 2024 and November 22, 2029, respectively. The Notes are unsecured, subordinated obligations of the Company and rank junior in right to payment to the Company’s current and future senior indebtedness, and each Note is equal in right to payment with respect to the other Notes. The Notes have been structured to qualify as Tier 2 capital for the Company under applicable regulatory guidelines. The Company used the net proceeds from the sale of the Notes to fund the redemption of the convertible senior debentures and for general corporate purposes to support future growth. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was comprised of the following for the dates indicated below: Years Ended December 31, 2019 2018 2017 Current: Federal $ 1,437,595 $ 1,454,049 $ 1,500,337 State 145,412 202,292 209,396 Total Current Tax Expense 1,583,007 1,656,341 1,709,733 Deferred: Federal 105,960 (79,034 ) 736,390 State (9,417 ) (7,781 ) (10,663 ) Total Deferred Tax Expense (Benefit) 96,543 (86,815 ) 725,727 Total Income Tax Expense $ 1,679,550 $ 1,569,526 $ 2,435,460 ( 15 ) Income Taxes, Continued The Company's income taxes differ from those computed at the statutory federal income tax rate, as follows: Years Ended December 31, 2019 2018 2017 Tax at Statutory Income Tax Rate $ 1,989,548 $ 1,843,117 $ 2,840,292 State Tax and Other 100,820 157,417 44,764 Tax Exempt Interest (291,768 ) (338,497 ) (730,477 ) Life Insurance (142,508 ) (113,400 ) (394,445 ) Valuation Allowance 23,458 20,889 69,133 Impact of Federal Rate Change on Deferred Taxes — — 606,193 Total Income Tax Expense $ 1,679,550 $ 1,569,526 $ 2,435,460 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2019 and 2018 are presented below. Net deferred tax assets were included in other assets at December 31, 2019 and 2018 . December 31, 2019 2018 Deferred Tax Assets: Deferred Compensation $ 587,322 $ 498,764 Provision for Loan Losses 2,000,131 1,978,481 Other Real Estate Owned — 18,283 Net Fees Deferred for Financial Reporting 76,262 73,892 Net Operating Losses 356,759 333,301 Other 126,492 240,724 Total Gross Deferred Tax Assets 3,146,966 3,143,445 Less: Valuation Allowance (356,759 ) (333,301 ) Net Deferred Tax Assets 2,790,207 2,810,144 Deferred Tax Liabilities: FHLB Stock Basis Over Tax Basis 72,208 71,717 Depreciation 585,520 507,601 Prepaid Expenses 35,033 36,837 Unrealized Gain on Securities Available for Sale 1,473,077 10,487 Total Gross Deferred Tax Liability 2,165,838 626,642 Net Deferred Tax Asset $ 624,369 $ 2,183,502 The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Deferred tax assets represent the future tax benefit of deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the recorded deferred tax assets to net realizable value. As of December 31, 2019 , management has determined that it is more likely than not that the total deferred tax asset will be realized except for the deferred tax asset associated with state net operating loss carryforwards, and, accordingly, has established a valuation allowance only for this item. The change in the valuation allowance was approximately $23,000 . The Company had state net operating losses attributable to the non-bank entities of $9.0 million and $8.4 million for the years ended December 31, 2019 and 2018 , respectively. Retained earnings at December 31, 2019 included tax bad debt reserves of $2.1 million , for which no provision for federal income tax has been made. If, in the future, these amounts are used for any purpose other than to absorb bad debt losses, including dividends, stock redemptions, or distributions in liquidation, or the Company ceases to be qualified as a bank holding company, they may be subject to federal income tax at the prevailing corporate tax rate. At December 31, 2019 , the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company's policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Tax returns for 2016 and subsequent years are subject to examination by taxing authorities. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
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 $3.0 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 $3.0 billion or more in assets, at December 31, 2019 , it would have exceeded all regulatory capital requirements with Common Equity Tier 1 ("CET1") capital, Tier 1 leverage-based capital, Tier 1 risk-based capital and total risk-based capital ratios of 15.4% , 9.6% , 16.3% and 23.0% , respectively. Based on its capital levels at December 31, 2019 , 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 December 31, 2019 , 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. The tables below provide the Bank’s regulatory capital requirements and actual results at December 31, 2019 and 2018 . Actual For Capital Adequacy To Be Well Capitalized (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Tier 1 Risk-Based Core Capital $ 101,280 18.2 % $ 33,418 6.0 % $ 44,558 8.0 % Total Risk-Based Capital 108,270 19.4 % 44,558 8.0 % 55,697 10.0 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 101,280 18.2 % 25,064 4.5 % 36,203 6.5 % Tier 1 Leverage (Core) Capital 101,280 10.4 % 39,134 4.0 % 48,917 5.0 % December 31, 2018 Tier 1 Risk-Based Core Capital $ 89,188 16.2 % $ 33,005 6.0 % $ 44,007 8.0 % Total Risk-Based Capital 96,092 17.5 % 44,007 8.0 % 55,009 10.0 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 89,188 16.2 % 24,754 4.5 % 35,756 6.5 % Tier 1 Leverage (Core) Capital 89,188 9.8 % 36,486 4.0 % 45,608 5.0 % In addition to the minimum capital requirements, the Bank must maintain a capital conservation buffer, consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. At December 31, 2019 the Bank’s conservation buffer was 11.4% . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company is participating in a multiple employer defined contribution employee benefit plan covering substantially all employees with six months or more of service. The Company matches a portion of the employees’ contributions and the plan has a discretionary profit sharing provision. Total employer contributions were $273,000 , $263,000 and $232,000 for the years ended December 31, 2019, 2018 and 2017 , respectively. The Company has an Employee Stock Purchase Plan (“ESPP”). The ESPP allows employees of the Company to purchase stock quarterly through a payroll deduction at a discount calculated as 15% of the market value with a floor equal to the Company’s book value. The ESPP, which was approved by stockholders in April 2018, became effective July 1, 2018. Participation in the ESPP is voluntary. Employees are limited to investing $25,000 or 5% of their annual salary, whichever is lower, during the year. At December 31, 2019 , there were 29 employees participating. The Company implemented an Incentive Compensation Plan (the "Plan") during the year ended December 31, 2014. Incentive awards are based on the financial and operating performance of the Company as well as other participant specific objectives. The Plan allows employees of the Company to earn up to 7.5 days of their annual salary for successfully completing specific goals established by the participants and their respective supervisors plus an additional 2.5 days of their annual salary if the Company meets an annual predetermined net operating income amount determined by the Board of Directors. The Company also implemented an Incentive Compensation Plan for executive level officers (the "Executive Plan"). Under this plan incentive awards are based on contributions to performance as measured by critical operating and financial ratios, and other participant specific objectives. The Company has to meet the annual predetermined net operating income amount determined by the Board of Directors for any incentive awards to be paid under the Executive Plan. If the Company does not meet the required net income amount, no incentives are paid regardless of the executive's performance on individual objectives or entity wide objectives. In 2016, the Company implemented a Quarterly Branch Incentive Compensation Plan, and all branch employees were moved from the Plan to the Branch Incentive Plan. This plan is for retail branch employees only and pays incentive on a quarterly basis based on specific performance goals established for each branch location. Participation in all three plans is voluntary. During the years ended December 31, 2019 and 2018 , the Company incurred expenses of $100,000 and $240,000 , respectively, related to these incentive plans. Certain officers of the Company participate in a supplemental retirement plan. These benefits are not qualified under the Internal Revenue Code and they are not funded. During the years ended December 31, 2019, 2018 and 2017 , the Company incurred expenses of $496,000 , $396,000 , and $318,000 , respectively, for this plan. Certain officers and directors of the Company participate in incentive and non-qualified stock option plans. In 2008, the 2008 Equity Incentive Plan (the "2008 Plan") was approved by stockholders and implemented by the Company. The 2008 Plan provided for the grant of non-qualified and incentive stock options, stock appreciation rights (“SARS”), and restricted stock awards. Under the 2008 Plan, 50,000 shares of common stock were reserved for the issuance of stock options and SARS in addition to 50,000 shares subject to restricted stock awards. 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 2008 Plan expired during the year ended December 31, 2018. Since that date, there are no shares available for issuance under this plan for stock options or SARS. There were no stock options granted by the Company during the years ended December 31, 2019, 2018 and 2017 . At December 31, 2019 , the Company had no options outstanding. (17) Employee Benefit Plans, Continued The following is a summary of the activity under the Company’s incentive and non-qualified stock option plans for the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 Weighted Avg. Weighted Avg. Balance, Beginning of Period 4,500 $ 22.91 21,500 $ 23.57 Options Exercised 450 22.91 7,500 23.49 Options Forfeited 4,050 22.91 9,500 23.95 Balance, End of Period — $ — 4,500 $ 22.91 Options Exercisable — $ — 4,500 $ 22.91 Weighted-Average Remaining Life of Exercisable Options — 0.4 years Options Available for Grant — 50,000 During the years ended December 31, 2019 and 2018, no options vested. During the year ended December 31, 2017 , 3,300 options with a weighted average exercise price of $23.33 vested. The aggregate intrinsic value of the stock options outstanding and exercisable was $0 at December 31, 2019, 2018 and 2017 and there was no compensation expense related to stock options during those years. As of December 31, 2019 , there was no unrecognized compensation cost related to non-vested stock options. |
Bank Owned Life Insurance
Bank Owned Life Insurance | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Bank Owned Life Insurance | Bank Owned Life Insurance BOLI provides key person life insurance on certain officers of the Company. The cash value of the life insurance policies are recorded as a separate line item in the accompanying balance sheets at $21.5 million and $21.2 million at December 31, 2019 and 2018 , respectively. The earnings portion of the insurance policies grows tax deferred and helps offset the cost of the Company’s benefits programs. The Company recorded earnings of $540,000 , $540,000 and $506,000 for the growth in the cash value of life insurance during the years ended December 31, 2019, 2018 and 2017 , respectively. In addition to the earnings above, the Company received $139,000 and $654,000 in death benefits during the years ended December 31, 2019 and 2017, respectively. There were no death benefits received during the year ended December 31, 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company has various outstanding commitments and contingent liabilities that are not reflected in the accompanying consolidated financial statements. In addition, the Company is a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company. In conjunction with its lending activities, the Bank enters into various commitments to extend credit and issue letters of credit. Loan commitments (unfunded loans and unused lines of credit) and letters of credit are issued to accommodate the financing needs of the Bank's customers. Loan commitments are agreements by the Bank to lend at a future date, so long as there are no violations of any conditions established in the agreement. Letters of credit commit the Bank to make payments on behalf of customers when certain specified events occur. Financial instruments where the contract amount represents the Bank's credit risk include commitments under pre-approved but unused lines of credit of $108.0 million and $83.7 million and letters of credit of $1.5 million and $1.6 million at December 31, 2019 and 2018 , respectively. ( 19 ) Commitments and Contingencies, Continued These loan and letter of credit commitments are subject to the same credit policies and reviews as loans on the balance sheet. Collateral, both the amount and nature, is obtained based upon management's assessment of the credit risk. Since many of the extensions of credit are expected to expire without being drawn, the total commitment amounts do not necessarily represent future cash requirements. Included in the loan commitments noted above were unused credit card loan commitments of $6.2 million and $5.6 million and undisbursed loans in process of $10.0 million and $7.2 million at December 31, 2019 and 2018 , respectively. The Bank also had $282,000 in outstanding commitments on mortgage loans approved but not yet closed at December 31, 2019 compared to none at December 31, 2018. These commitments, which are funded subject to certain limitations, extend over varying periods of time with the majority being funded within 45 days. At December 31, 2019 and 2018 , the Bank had outstanding commitments to sell approximately $4.0 million and $1.8 million of loans, respectively, which encompassed the Bank’s held for sale loans. The Bank also has commitments to sell mortgage loans not yet closed, on a best efforts basis. Best efforts means the Bank suffers no penalty if they are unable to deliver the loans to the potential buyers. The fair value of the Bank’s commitment to originate mortgage loans at committed interest rates and to sell such loans to permanent investors is insignificant. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Certain directors, executive officers and companies with which they are affiliated are customers of, and have banking transactions with, the Bank in the ordinary course of business. These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable arms-length transactions. A summary of loan transactions with directors, including their affiliates, and executive officers follows: Years Ended December 31, 2019 2018 2017 Balance, Beginning of Period $ 32,961 $ 94,292 $ 141,972 New Loans 417,590 674 1,078 Less Loan Payments (19,035 ) (62,005 ) (48,758 ) Balance, End of Period $ 431,516 $ 32,961 $ 94,292 Loans to all employees, officers, and directors of the Company, in the aggregate constituted approximately 4.5% and 3.9% of the Company’s total shareholders' equity at December 31, 2019 and 2018 , respectively. Deposits from executive officers and directors of the Company and the Bank and their related interests were approximately $15.9 million at $14.9 million at December 31, 2019 and 2018 and have substantially the same terms, including interest rates, as those prevailing at the time with other non-related depositors. The Company leased office space from a related party during the years ended December 31, 2019, 2018 and 2017 . The lease is with a company in which the related party, who is a director of the Company, has an ownership interest. The Company incurred rent expense of $87,600 , $85,000 and $83,000 for the years ended December 31, 2019, 2018 and 2017 , respectively, related to this lease. Management is of the opinion that the transactions with respect to office rent were made on terms that are comparable to those which would be made with unaffiliated persons. |
Stock Issuance and Exchange
Stock Issuance and Exchange | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock Issuance and Exchange | Stock Issuance and Exchange The Company was approved to participate in the Treasury’s Community Development Capital Initiative (“CDCI”) program. The CDCI was established by the Treasury under the Troubled Asset Relief Program to invest lower cost capital in Community Development Financial Institutions (“CDFI”), supporting their efforts to provide credit to small businesses and other qualified customers in connection with the downturn in the economy. In connection with its participation in the CDCI, on September 29, 2010, the Company (i) exchanged all $18.0 million (aggregate liquidation preference amount) of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”), previously sold to the Treasury pursuant to the Capital Purchase Program ("CPP"), for $18.0 million (aggregate liquidation preference amount) of the Company’s newly designated Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), (ii) sold 400,000 shares of its common stock at $10.00 per share in a private offering to board members of the Company for aggregate gross proceeds of $4.0 million ; and (iii) received an additional $4.0 million investment from the Treasury through the sale of an additional $4.0 million (aggregate liquidation preference amount) of its Series B Preferred Stock to the Treasury. The additional $4.0 million investment from the Treasury was contingent upon the Company’s completion of the $4.0 million separate stock offering for the same amount, as required by the Company’s primary regulator at the time, the Office of Thrift Supervision. In conjunction with its participation in the CPP in 2008, the Company sold a warrant to the Treasury to purchase 137,966 shares of the Company’s common stock. The warrant had a 10 -year term and was immediately exercisable upon issuance. The warrant remained outstanding after the exchange until its repurchase by the Company in 2013 at a fair market value of $50,000 . As a result of the transaction, the warrant was canceled, which reduced warrants outstanding by $400,000 and increased additional paid in capital by $350,000 . Participation in the CDCI provided the Company with $8.0 million in additional capital and lowered the cost of the capital received from the Treasury. The annual dividend rate on the Series A Preferred Stock was 5% and was scheduled to increase to 9% on February 15, 2014. The annual dividend rate on the Series B Preferred Stock was 2% for the first eight years from the date of issuance, or until September 19, 2018, and 9% thereafter if still then outstanding. The annual dividend rate on the Series B Preferred Stock also could be increased if the Company and the Bank did not maintain eligibility as a CDFI under Treasury regulations. On October 31, 2016, the Company repurchased all 22,000 shares of its Series B Preferred Stock from the Treasury for a repurchase amount of $21.3 million plus accrued interest of $93,000 for a total payment amount of $21.4 million. The repurchase was partially funded through cash on hand and a $14.0 million term loan from another financial institution. As a result of this transaction, the Company received a one-time preferred stock redemption discount of $660,000, which was recognized in net income available to common shareholders during the year ended December 31, 2016. |
Unvested Restricted Stock (Note
Unvested Restricted Stock (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Unvested Restricted Stock [Text Block] | (21) Unvested Restricted Stock Issuance On February 12 2015, the Company issued 1,473 shares of restricted stock at $17.22 per share to the Company’s Chief Executive Officer (“CEO”). The issuance was in lieu of annual incentive pay for the 2014 Incentive Plan year. Based on restrictions set forth in our agreement with Treasury as part of the Company’s participation in the CDCI program, the CEO was not permitted to receive cash incentive pay. The shares cliff vested at the end of two years in February 2017. All dividends were held in an escrow account until that date. There were no shares of restricted stock issued by the Company during the years ended December 31, 2019 and 2018. |
Security Federal Corporation Co
Security Federal Corporation Condensed Financial Statements (Parent Company Only) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Security Federal Corporation Condensed Financial Statements (Parent Company Only) | Security Federal Corporation Condensed Financial Statements (Parent Company Only) The following is condensed financial information of Security Federal Corporation (Parent Company only). The primary asset is its investment in the Bank subsidiary and the principal source of income for the Company is equity in undistributed earnings from the Bank. Condensed Balance Sheet Data December 31, 2019 2018 Assets: Cash $ 25,685,744 $ 3,619,418 Investment in Security Federal Statutory Trust 155,000 155,000 Investment in Security Federal Bank 106,947,285 90,359,718 Accounts Receivable and Other Assets 386,889 14,492 Total Assets $ 133,174,918 $ 94,148,628 Liabilities and Shareholders’ Equity: Accounts Payable and Other Liabilities $ 219,213 $ 49,995 Long-term Debt 41,199,000 13,581,500 Shareholders’ Equity 91,756,705 80,517,133 Total Liabilities and Shareholders’ Equity $ 133,174,918 $ 94,148,628 Condensed Statements of Income Data Years Ended December 31, 2019 2018 2017 Income: Equity in Earnings of Security Federal Bank $ 2,092,130 $ 1,523,443 $ 136,682 Dividend Income from Security Federal Bank 6,400,000 6,400,000 6,400,000 Gain on Sale of Investments — — 118,725 Miscellaneous Income 62,390 21,235 15,807 Total Income 8,554,520 7,944,678 6,671,214 Expenses: Interest Expense 906,152 916,832 1,057,065 Other Expenses 39,331 11,099 14,349 Total Expenses 945,483 927,931 1,071,414 Income Before Income Taxes 7,609,037 7,016,747 5,599,800 Income Tax Benefit (185,450 ) (190,474 ) (318,540 ) Net Income $ 7,794,487 $ 7,207,221 $ 5,918,340 (21) Security Federal Corporation Condensed Financial Statements (Parent Company Only), Continued Condensed Statements of Cash Flow Data Years Ended December 31, 2019 2018 2017 Operating Activities: Net Income $ 7,794,487 $ 7,207,221 $ 5,918,340 Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: Equity in Earnings of Security Federal Bank (2,092,130 ) (1,523,443 ) (136,682 ) Deferred Compensation Expense — — 25,358 (Increase) Decrease in Accounts Receivable and Other Assets (372,398 ) 13,666 3,117 Increase (Decrease) in Accounts Payable 169,218 1,635 (33,612 ) Net Cash Provided By Operating Activities 5,499,177 5,699,079 5,776,521 Investing Activities: Capital Pushdown to Security Federal Bank (10,000,000 ) — — Proceeds from Sale of Investments — — 95,438 Net Cash (Used) Provided By Investing Activities (10,000,000 ) — 95,438 Financing Activities: Redemption of Convertible Debentures — — (20,000 ) Proceeds from Stock Options Exercised — 10,310 176,175 Employee Stock Plan Purchases 52,868 12,196 — Proceeds from Subordinated Debentures 30,000,000 — — Repayment of Note Payable (2,362,500 ) (6,137,500 ) (4,500,000 ) Dividends Paid to Shareholders-Common Stock (1,123,219 ) (1,063,626 ) (1,060,729 ) Net Cash Provided (Used) By Financing Activities 26,567,149 (7,178,620 ) (5,404,554 ) Net Increase (Decrease) in Cash 22,066,326 (1,479,541 ) 467,405 Cash at Beginning of Period 3,619,418 5,098,959 4,631,554 Cash at End of Period $ 25,685,744 $ 3,619,418 $ 5,098,959 |
Carrying Amounts and Fair Value
Carrying Amounts and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Value of Financial Instruments | Carrying Amounts and Fair Value of Financial Instruments GAAP requires 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. 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 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 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 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 December 31, 2019 , the Company’s investment portfolio was comprised of student loan pools, government and agency bonds, mortgage-backed securities issued by government agencies or GSEs, private label CMO mortgage-backed securities and municipal securities. 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 such, these securities are classified as Level 2. 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 institutional 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 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. (22) Carrying Amounts and Fair Value of Financial Instruments, Continued 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 individually impaired, management measures impairment. 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 December 31, 2019 , most of the total impaired loans were 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. As of December 31, 2019 and 2018 , the recorded investment in impaired loans was $3.2 million and $9.4 million , respectively. The average recorded investment in impaired loans was $6.4 million and $11.0 million for the years ended December 31, 2019 and 2018 , respectively. Foreclosed Assets Foreclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, they 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 less estimated selling costs. The Company records all foreclosed assets as nonrecurring level 3. The tables below present the balances of assets measured at fair value on a recurring basis at December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Student Loan Pools $ — $ 40,231,830 $ — $ — $ 12,885,501 $ — SBA Bonds — 111,893,099 — — 125,446,531 — Tax Exempt Municipal Bonds — 47,241,494 — — 61,330,369 — Taxable Municipal Bonds — 14,840,410 — — 1,977,885 — Mortgage-Backed Securities — 200,438,007 — — 184,460,551 — Total $ — $ 414,644,840 $ — $ — $ 386,100,837 $ — There were no liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 . (22) Carrying Amounts and Fair Value of Financial Instruments, Continued 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 table below presents assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall. December 31, 2019 Assets Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 3,990,606 $ — $ 3,990,606 Collateral Dependent Impaired Loans (1) — — 3,222,746 3,222,746 Foreclosed Assets — — 677,740 677,740 Total $ — $ 3,990,606 $ 3,900,486 $ 7,891,092 December 31, 2018 Assets Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 1,781,985 $ — $ 1,781,985 Collateral Dependent Impaired Loans (1) — — 8,613,570 8,613,570 Foreclosed Assets — — 722,442 722,442 Total $ — $ 1,781,985 $ 9,336,012 $ 11,117,997 (1) REPORTED NET OF SPECIFIC RESERVES OF $0 AND $738,662 AT DECEMBER 31, 2019 AND 2018, RESPECTIVELY. There were no liabilities measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018 . For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis, the significant unobservable inputs used in the fair value measurements were as follows as of December 31, 2019 and 2018 : Valuation Significant 2019 2018 Level 3 Assets Technique Unobservable Inputs Range Range Collateral Dependent Impaired Loans Appraised Value Discount Rates/ Discounts to Appraised Values Foreclosed Assets Appraised Value/Comparable Sales Discount Rates/ Discounts to Appraised Values For assets and liabilities not presented on the balance sheet at fair value, the following methods are used to determine 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 deposits 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 —The fair value of loans are estimated using an exit price notion. The exit price notion uses a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument and also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. The 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. 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. (22) Carrying Amounts and Fair Value of Financial Instruments, Continued FHLB Stock —The fair value approximates the carrying 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 using discounted cash flows with current market rates for borrowings 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. Subordinated 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. The following tables summarize the carrying value and estimated fair value of the Company’s financial instruments as of December 31, 2019 and 2018 presented in accordance with the applicable accounting guidance. December 31, 2019 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 12,536 $ 12,536 $ 12,536 $ — $ — Certificates of Deposits with Other Banks 950 950 — 950 — Investment and Mortgage-Backed Securities 433,892 434,451 — 434,451 — Loans Receivable, Net 452,859 450,796 — — 450,796 FHLB Stock 2,537 2,537 2,537 — — Financial Liabilities: Deposits: Checking, Savings and Money Market Accounts $ 541,954 $ 541,954 $ 541,954 $ — $ — Certificate Accounts 229,453 229,363 — 229,363 — Advances From FHLB 38,138 38,233 — 38,233 — Other Borrowed Money 11,580 11,580 11,580 — — Subordinated Debentures 30,000 30,000 — 30,000 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — Senior Convertible Debentures 6,044 6,044 — 6,044 — (22) Carrying Amounts and Fair Value of Financial Instruments, Continued December 31, 2018 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 12,706 $ 12,706 $ 12,706 $ — $ — Certificates of Deposits with Other Banks 1,200 1,200 — 1,200 — Investment and Mortgage-Backed Securities 409,739 409,350 — 409,350 — Loans Receivable, Net 430,054 421,379 — — 421,379 FHLB Stock 2,204 2,204 2,204 — — Financial Liabilities: Deposits: Checking, Savings and Money Market Accounts $ 529,043 $ 529,043 $ 529,043 $ — $ — Certificate Accounts 238,454 236,103 — 236,103 — Advances From FHLB 34,030 33,771 — 33,771 — Other Borrowed Money 10,698 10,698 10,698 — — Note Payable 2,363 2,363 — 2,363 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — Senior Convertible Debentures 6,064 6,064 — 6,064 — At December 31, 2019 , the Bank had $85.3 million of 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 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. 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 23) Quarterly Financial Data (Unaudited) Unaudited condensed financial data by quarter for the years ended December 31, 2019 and 2018 is as follows (dollars, except per share data, in thousands): Quarter ended 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Interest Income $ 9,031 $ 9,128 $ 9,641 $ 9,134 Interest Expense 1,774 2,009 2,291 2,237 Net Interest Income 7,257 7,119 7,350 6,897 Provision for Loan Losses 100 — 75 200 Net Interest Income After Provision for Loan Losses 7,157 7,119 7,275 6,697 Non-interest Income 2,196 2,492 2,408 2,000 Non-interest Expense 6,744 7,241 6,989 6,896 Income Before Income Tax 2,609 2,370 2,694 1,801 Provision for Income Taxes 520 486 475 199 Net Income $ 2,089 $ 1,884 $ 2,219 $ 1,602 Basic Net Income Per Common Share $ 0.71 $ 0.64 $ 0.75 $ 0.54 Diluted Net Income Per Common Share $ 0.67 $ 0.61 $ 0.71 $ 0.51 Basic Weighted Average Shares Outstanding 2,954,515 2,955,650 2,956,156 2,956,600 Diluted Weighted Average Shares Outstanding 3,256,715 3,257,850 3,258,356 3,258,800 Quarter ended 3/31/2018 6/30/2018 9/30/2018 12/31/2018 Interest Income $ 7,774 $ 8,029 $ 8,507 $ 8,763 Interest Expense 1,169 1,286 1,430 1,565 Net Interest Income 6,605 6,743 7,077 7,198 Provision For Loan Losses — — 150 775 Net Interest Income After Provision for Loan Losses 6,605 6,743 6,927 6,423 Non-interest Income 2,044 1,744 2,070 1,811 Non-interest Expense 6,519 6,240 6,418 6,413 Income Before Income Tax 2,130 2,247 2,579 1,821 Provision for Income Taxes 400 427 471 271 Net Income $ 1,730 $ 1,820 $ 2,108 $ 1,550 Basic Net Income Per Common Share $ 0.59 $ 0.62 $ 0.71 $ 0.52 Diluted Net Income Per Common Share $ 0.56 $ 0.59 $ 0.68 $ 0.50 Basic Weighted Average Shares Outstanding 2,953,180 2,953,412 2,953,424 2,953,763 Diluted Weighted Average Shares Outstanding 3,257,532 3,257,017 3,256,624 3,256,963 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
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 financial statements were available to be issued and determined the following subsequent events required disclosure: On January 2, 2020, the Company announced its intention to redeem all of the convertible debentures on March 2, 2020. Subsequent to the announcement, $5.9 million was converted into 295,600 common shares by holders of the debt. The Company redeemed the remaining $132,000 for cash on March 2, 2020. The 2019 novel coronavirus (or “COVID-19”) has adversely affected, and may continue to adversely affect economic activity globally, nationally and locally. Following the COVID-19 outbreak in December 2019 and January 2020, market interest rates have declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. Such events also may adversely affect business and consumer confidence, generally, and the Company and its customers, and their respective suppliers, vendors and processors may be adversely affected. On March 3, 2020, the Federal Open Market Committee reduced the target federal funds rate by 50 basis points to 1.00% to 1.25%. This rate was further reduced to 0% to 0.25% on March 16, 2020. These reductions in interest rates and other effects of the COVID-19 outbreak may adversely affect the Company’s financial condition and results of operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Nature of Operations | Basis of Consolidation and Nature of Operations The accompanying consolidated financial statements include the accounts of Security Federal Corporation (the “Company”) and its wholly owned subsidiary, Security Federal Bank (the “Bank”) and the Bank’s wholly owned subsidiaries, Security Federal Insurance, Inc. (“SFINS”), Security Federal Investments, Inc. ("SFINV") and Security Financial Services Corporation (“SFSC”). Security Federal Corporation has a wholly owned subsidiary, Security Federal Statutory Trust (the “Trust”), which issued and sold fixed and floating rate capital securities of the Trust. However, under current accounting guidance, the Trust is not consolidated in the financial statements. The Bank is primarily engaged in the business of accepting savings and demand deposits and originating mortgage loans and other loans to individuals and small businesses for various personal and commercial purposes. SFINS is an insurance agency offering auto, business, health and home insurance. SFINS has a wholly owned subsidiary, Collier Jennings Financial Corporation which has as subsidiaries Security Federal Auto Insurance, The Auto Insurance Store Inc., and Security Federal Premium Pay Plans Inc. Security Federal Premium Pay Plans Inc. has one wholly owned premium finance subsidiary and also has an ownership interest in four other premium finance subsidiaries. SFINV was formed to hold investment securities and allow for better management of the securities portfolio. SFSC is currently inactive |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, interest-bearing balances in other banks, and federal funds sold. Cash equivalents have original maturities of three months or les |
Investment and Mortgage-Backed Securities | Investment and Mortgage-Backed Securities Investment securities, including mortgage-backed securities, are classified in one of three categories: held to maturity, available for sale, or trading. Management determines the appropriate classification of debt securities at the time of purchase. Investment securities are classified as held to maturity when the Company has the positive intent and ability to hold the securities to maturity. These securities are recorded at cost and adjusted for amortization of premiums and accretion of discounts over a level yield basis. Callable debt securities held at a premium are amortized until the earliest call date. Prepayment assumptions on mortgage-backed securities are anticipated. Management classifies investment securities that are not considered to be held to maturity as available for sale. This type of investment is stated at fair value with unrealized gains and losses, net of tax, reported in a separate component of shareholders' equity (“accumulated other comprehensive income (loss)”). Gains and losses from sales of investment and mortgage-backed securities available for sale are determined using the specific identification method. The Company had no investment in trading securitie |
Loans Receivable Held for Investment | Loans Receivable Held for Investment Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest is recognized over the term of the loan based on the outstanding loan balance. Fees charged for originating loans, if any, are deferred and offset by the deferral of certain direct expenses associated with loans originated. The net deferred fees are recognized as yield adjustments by applying the interest method. |
Allowance for Loan Losses | Allowance for Loan Losses 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. (1) Significant 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 bank regulatory agencies 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 less estimated selling costs. In accordance with our policy, non-accrual commercial loans with a balance less than $200,000 and non-accrual consumer loans with a balance less than $100,000 are deemed immaterial and therefore excluded from the individual impairment review. 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. |
Loans Receivable Held for Sale | . Loans Receivable Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations. |
Repossessed Assets Acquired in Settlement of Loans | Other Real Estate Owned Other real estate owned represents real estate and other assets acquired through foreclosure or repossession and are initially recorded at the estimated fair value less costs to sell. Subsequent improvements are capitalized. Costs of holding real estate, such as property taxes, insurance, general maintenance and interest expense, are expensed as a period cost. Fair values are reviewed regularly and allowances for possible losses are established when the carrying value of the asset owned exceeds the fair value less estimated costs to sell. Fair values are generally determined by reference to an outside appraisal. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost, net of accumulated depreciation. Depreciation of premises and equipment is amortized on a straight-line method over the estimated useful life of the related asset. Estimated lives are 7 to 40 years for buildings and improvements and generally 3 to 10 years for furniture, fixtures and equipment. Maintenance and repairs are charged to current expense. The cost of major renewals and improvements are capitalized. |
Intangible Assets and Goodwill | zed. Intangible Assets and Goodwill The Company's goodwill is a result of the excess of the cost over the fair value of net assets resulting from the Company's acquisition of Collier Jennings Financial Corporation in July 2006. Goodwill is reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Intangible assets are amortized over their estimated economic lives using methods that reflect the pattern in which the economic benefits are utilized. The intangible assets, which consisted of the customer list and employment contracts resulting from the Company’s acquisition of Collier Jennings Financial Corporation, were fully amortized at December 31, 2019 . |
Income Taxes | Income Taxes Income tax expense or benefit is recognized for the net change during the year in the deferred tax liability or asset. That amount together with income taxes currently payable is the total amount of income tax expense or benefit for the year. Deferred taxes are provided for by the differences in financial reporting bases for assets and liabilities compared with their tax bases. Generally, a current tax liability or asset is established for taxes presently payable or refundable and a deferred tax liability or asset is established for future tax items. A valuation allowance, if applicable, is established for deferred tax assets that may not be realized. Tax bad debt reserves in excess of the base year amount (established as taxable years ending March 31, 1988 or later) would create a deferred tax liability. Deferred income taxes are provided for in differences between the provision for loan losses for financial statement purposes and those allowed for income tax purposes. (1) Significant Accounting Policies, Continued The Company adopted accounting guidance which prescribes a threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosures. There have been no gross amounts of unrecognized tax benefits or interest or penalties related to uncertain tax positions since adoption. There are no unrecognized tax benefits that would, if recognized, affect the effective tax rate. There are no positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months. Years prior to December 31, 2016 are closed for federal, state and local income |
Loan Fees and Costs Associated with Originating Loans | Loan Fees and Costs Associated with Originating Loans Loan fees received, net of direct incremental costs of originating loans, are deferred and amortized over the contractual life of the related loan. The net fees are recognized as yield adjustments by applying the interest method. Prepayments are not anticipated. |
Interest Income | Interest Income Interest on loans is accrued and credited to income monthly based on the principal balance outstanding and the contractual rate on the loan. The Company places loans on non-accrual status when they become greater than 90 days delinquent or when, in the opinion of management, full collection of principal or interest is unlikely. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received first to principal and then to interest income. The loans are returned to an accrual status when full collection of principal and interest appears likely. |
Advertising Expense | Advertising Expense Advertising and public relations costs are generally expensed as incurred. External costs relating to direct mailing costs are expensed in the period in which the direct mailings are sent. Advertising and public relations costs of $796,000 , $547,000 , and $596,000 were included in the Company’s results of operations for the years ended December 31, 2019, 2018 and 2017 , respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for compensation costs under its stock option plans using the fair value method. This method requires the measurement of the cost of employee services received in exchange for an award of equity instruments based upon the fair value of the award on the grant date. The cost of the award is recognized in the income statement over the vesting period of the award. |
Earnings Per Share | Net Income Per Common Share Accounting guidance specifies computation and presentation requirements for both basic net income per common share ("EPS") and, for entities with complex capital structures, diluted EPS. Basic EPS is computed by dividing net income available to common shareholders 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 potential common shares had been issued. The dilutive effect of options and warrants outstanding is reflected in diluted earnings per share by application of the treasury stock method. |
Use of Estimates | . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The following is a summary of recent authoritative pronouncements that could affect accounting, reporting, and disclosure of financial information by the Company: In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. In July 2018, the FASB further amended the Leases Topic of the ASC to make narrow amendments to clarify how to apply certain aspects of the new leases standard. The amendments also give entities another additional and optional method for transition to the new guidance and to provide lessors with a practical expedient. The amendments were effective for reporting periods beginning after December 15, 2018. The Company adopted the new standard and recorded a right-of-use asset and lease liability of $3.1 million effective January 1, 2019. Additional disclosures required by the ASC have been included in "Note 5 - Premises and Equipment, Net and Leases." In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The guidance significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model. The amendments will be effective for the Company for reporting periods beginning after December 15, 2022. Early adoption is permitted. The Company is in the process of identifying required changes to the loan loss estimation models and processes and evaluating the impact of this new guidance. Once adopted, we expect our allowance for loan losses to increase, however, until our evaluation is complete the magnitude of the increase will be unknown. In March 2017, the FASB issued guidance on Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The guidance shortens the amortization period for certain callable debt securities held at a premium. The amendments were effective for the Company for reporting periods beginning after December 15, 2018. The adoption of these amendments did not have a material effect on its consolidated financial statements. In June 2018, the FASB amended the Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as the earlier of the commitment date or date performance was completed. The guidance requires the awards to be measured at the grant-date fair value of the equity instrument. This ASU became effective for reporting periods beginning after December 15, 2018. The adoption of these amendments did not have a material effect on the Company's consolidated financial statements. (1) Significant Accounting Policies, Continued Recently Issued Accounting Standards In August 2018, the FASB amended the Fair Value Measurement Topic of the ASC to remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements. The amendments are effective for reporting periods beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this guidance and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2019, the FASB issued guidance to address concerns by lessors that are not manufacturers or dealers when assessing the fair value of underlying assets under the leases standard discussed above and to clarify that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new standard. The amendments are effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In April 2019, the FASB issued guidance to provide entities that have certain financial instruments measured at amortized cost that have credit losses, to irrevocably elect the fair value option in Subtopic 825-10, upon adoption of the June 2016 guidance related to accounting for credit losses and modifying the impairment model for certain debt securities. The fair value option applies to available-for-sale debt securities. This guidance should be applied at adoption on a modified-retrospective basis as a cumulative-effect adjustment to the opening balance of retained earnings in the statement of financial condition. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In December 2019, the FASB issued guidance simplifying the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendments also improve consistent application or and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting authorities are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Risks and Uncertainties | Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risk: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different bases, than its interest-earning assets. Credit risk is the risk of default on the Company’s loan portfolio that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable, the valuation of real estate held by the Company, and the valuation of loans held for sale and securities available for sale. The Company is subject to the regulations of various government agencies. These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the bank regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loss allowances, and operating restrictions, resulting from the regulators’ judgments based on information available to them at the time of the |
Reclassifications | lassifications Certain amounts in prior years’ consolidated financial statements have been reclassified to conform to current period classifications. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of net income to net income available to common shareholders | The following tables show the effect of dilutive options on the Company’s net income per common share The following tables show the effect of dilutive options on the Company’s net income per common share. Year Ended December 31, 2019 Income Shares Per Share Basic EPS $ 7,794,487 2,955,737 $ 2.64 Effect of Dilutive Securities: Senior Convertible Debentures 362,640 302,200 (0.14 ) Diluted EPS $ 8,157,127 3,257,937 $ 2.50 (1) Significant Accounting Policies, Continued Year Ended December 31, 2018 Year Ended December 31, 2017 Income Shares Per Share Income Shares Per Share Basic EPS $ 7,207,221 2,953,446 $ 2.44 $ 5,918,340 2,945,918 $ 2.01 Effect of Dilutive Securities: Stock Options — 0 — — 951 — Senior Convertible Debentures 362,640 303,200 (0.12 ) 301,339 303,200 (0.10 ) Diluted EPS $ 7,569,861 3,256,646 $ 2.32 $ 6,219,679 3,250,069 $ 1.91 There were no stock options outstanding as of December 31, 2019 and 2018; and therefore, no dilutive options in the calculation of diluted EPS for those periods. The average market price used in calculating the assumed number of dilutive shares issued for the year ended December 31, 2017 was $29.05 . |
Investment and Mortgage-Backe_3
Investment and Mortgage-Backed Securities, Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 are as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair value Student Loan Pools $ 41,088,231 $ — $ 856,401 $ 40,231,830 Small Business Administration (“SBA”) Bonds 111,927,938 622,105 656,944 111,893,099 Tax Exempt Municipal Bonds 43,153,086 4,088,408 — 47,241,494 Taxable Municipal Bonds 15,169,737 35,359 364,686 14,840,410 Mortgage-Backed Securities 197,356,288 3,664,621 582,902 200,438,007 $ 408,695,280 $ 8,410,493 $ 2,460,933 $ 414,644,840 December 31, 2018 Amortized Cost Gross Gross Fair value Student Loan Pools $ 12,934,037 $ 20,713 $ 69,249 $ 12,885,501 SBA Bonds 125,777,016 560,352 890,837 125,446,531 Tax Exempt Municipal Bonds 60,141,164 1,518,974 329,769 61,330,369 Taxable Municipal Bonds 1,998,258 3,546 23,919 1,977,885 Mortgage-Backed Securities 185,291,038 1,073,432 1,903,919 184,460,551 $ 386,141,513 $ 3,177,017 $ 3,217,693 $ 386,100,837 |
Schedule of Available For Sale Securities, Contractual Maturities | Amortized Cost Fair Value Due in less than one year $ 18,237 $ 18,134 Due in one year to five years 6,314,205 6,342,172 Due in five to ten years 57,236,558 57,209,659 Due in ten years or more 147,769,992 150,636,868 Mortgage-Backed Securities 197,356,288 200,438,007 $ 408,695,280 $ 414,644,840 |
Schedule of Temporarily Impaired Securities, Fair Value and Unrealized Losses | The tables below summarize gross unrealized losses and the related fair value, aggregated by investment category and length of time that individual available for sale securities have been in a continuous unrealized loss position for the periods indicated. December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Student Loan Pools $ 30,079,497 $ 534,048 $ 10,152,333 $ 322,353 $ 40,231,830 $ 856,401 SBA Bonds 13,844,666 106,110 47,395,036 550,834 61,239,702 656,944 Taxable Municipal Bonds 13,810,279 364,686 — — 13,810,279 364,686 Mortgage-Backed Securities 55,326,064 480,958 7,975,863 101,944 63,301,927 582,902 $ 113,060,506 $ 1,485,802 $ 65,523,232 $ 975,131 $ 178,583,738 $ 2,460,933 December 31, 2018 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Student Loan Pools $ 8,384,145 $ 69,249 $ — $ — $ 8,384,145 $ 69,249 SBA Bonds 59,496,936 479,955 25,054,861 410,882 84,551,797 890,837 Tax Exempt Municipal Bonds 4,585,849 91,281 9,626,613 238,488 14,212,462 329,769 Taxable Municipal Bonds — — 980,520 23,919 980,520 23,919 Mortgage-Backed Securities 38,168,598 249,050 81,947,249 1,654,869 120,115,847 1,903,919 $ 110,635,528 $ 889,535 $ 117,609,243 $ 2,328,158 $ 228,244,771 $ 3,217,693 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable, net, at December 31, 2019 and 2018 are summarized below. December 31, 2019 2018 Balance % of Total Gross Loans Balance % of Total Gross Loans Residential Real Estate Loans $ 86,404,304 18.4 % $ 83,965,416 18.9 % Consumer Loans 56,331,013 12.0 % 56,907,555 12.8 % Commercial Business Loans 22,234,189 4.8 % 28,086,686 6.3 % Commercial Real Estate Loans 303,550,905 64.8 % 275,960,438 62.0 % Total Loans Held For Investment 468,520,411 100.0 % 444,920,095 100.0 % Loans Held For Sale 3,990,606 1,781,985 Total Loans Receivable, Gross 472,511,017 446,702,080 Less: Allowance For Loan Losses 9,225,574 9,171,717 Loans in Process 9,957,140 7,225,271 Deferred Loan Fees 469,568 251,575 19,652,282 16,648,563 Total Loans Receivable, Net $ 452,858,735 $ 430,053,517 |
Financing Receivable Credit Quality Indicators | The following tables summarize the loan grades used by the Company to measure the credit quality of gross loans receivable, excluding those held for sale, by loan segment at December 31, 2019 and 2018 . December 31, 2019 Pass Caution Special Mention Substandard Total Loans Residential Real Estate $ 76,674,539 $ 4,612,182 $ 1,155,802 $ 3,961,781 $ 86,404,304 Consumer 44,294,400 9,617,301 624,248 1,795,064 56,331,013 Commercial Business 16,140,592 5,486,393 301,462 305,742 22,234,189 Commercial Real Estate 230,810,756 56,025,352 14,285,015 2,429,782 303,550,905 Total $ 367,920,287 $ 75,741,228 $ 16,366,527 $ 8,492,369 $ 468,520,411 December 31, 2018 Special Residential Real Estate $ 75,558,544 $ 3,369,776 $ 958,354 $ 4,078,742 $ 83,965,416 Consumer 46,948,251 6,899,912 567,682 2,491,710 56,907,555 Commercial Business 22,670,318 4,708,036 339,533 368,799 28,086,686 Commercial Real Estate 204,197,354 45,653,796 18,492,785 7,616,503 275,960,438 Total $ 349,374,467 $ 60,631,520 $ 20,358,354 $ 14,555,754 $ 444,920,095 |
Past Due Financing Receivables | The following tables present an age analysis of past due balances by category at December 31, 2019 and 2018 . December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Total Past Due Current Total Loans Receivable Residential Real Estate $ — $ 355,290 $ 144,209 $ 499,499 $ 85,904,805 $ 86,404,304 Consumer 422,443 217,542 81,736 721,721 55,609,292 56,331,013 Commercial Business 147,959 76,515 20,316 244,790 21,989,399 22,234,189 Commercial Real Estate 3,849,424 — 1,352,716 5,202,140 298,348,765 303,550,905 Total $ 4,419,826 $ 649,347 $ 1,598,977 $ 6,668,150 $ 461,852,261 $ 468,520,411 December 31, 2018 30-59 Days 60-89 Days 90 Days or Total Past Due Current Total Loans Residential Real Estate $ — $ 332,000 $ 497,713 $ 829,713 $ 83,135,703 $ 83,965,416 Consumer 555,798 247,894 1,120,462 1,924,154 54,983,401 56,907,555 Commercial Business 205,613 106,163 18,648 330,424 27,756,262 28,086,686 Commercial Real Estate 1,556,863 424,103 1,634,770 3,615,736 272,344,702 275,960,438 Total $ 2,318,274 $ 1,110,160 $ 3,271,593 $ 6,700,027 $ 438,220,068 $ 444,920,095 |
Schedule of Financing Receivables, Non Accrual Status | The following table shows non-accrual loans by category at December 31, 2019 compared to 2018 . December 31, 2019 December 31, 2018 Decrease Amount Percent (1) Amount Percent (1) $ % Non-accrual Loans: Residential Real Estate $ 1,520,485 0.3 % $ 2,084,870 0.5 % $ (564,385 ) (27.1 )% Consumer 319,280 0.1 1,274,673 0.3 (955,393 ) (75.0 ) Commercial Business 122,605 — 124,458 — (1,853 ) (1.5 ) Commercial Real Estate 1,474,036 0.3 3,564,494 0.8 (2,090,458 ) (58.6 ) Total Non-accrual Loans $ 3,436,406 0.7 % $ 7,048,495 1.6 % $ (3,612,089 ) (51.2 )% (1) PERCENT OF GROSS LOANS RECEIVABLE HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS. |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | The following tables show the allowance for loan losses by loan category for the years ended December 31, 2019, 2018 and 2017 . For the Year Ended December 31, 2019 Residential Real Estate Consumer Commercial Business Commercial Real Estate Total Beginning Balance $ 1,191,443 $ 1,203,593 $ 923,600 $ 5,853,081 $ 9,171,717 Provision 227,624 324,394 (392,817 ) 215,799 375,000 Charge-Offs (34,599 ) (432,003 ) (1,132 ) (517,583 ) (985,317 ) Recoveries 6,126 114,865 15,113 528,070 664,174 Ending Balance $ 1,390,594 $ 1,210,849 $ 544,764 $ 6,079,367 $ 9,225,574 For the Year Ended December 31, 2018 Residential Commercial Commercial Beginning Balance $ 1,233,843 $ 1,144,815 $ 1,011,227 $ 4,831,733 $ 8,221,618 Provision 2,411 173,235 (55,109 ) 804,463 925,000 Charge-Offs (46,419 ) (224,954 ) (32,518 ) (351,894 ) (655,785 ) Recoveries 1,608 110,497 — 568,779 680,884 Ending Balance $ 1,191,443 $ 1,203,593 $ 923,600 $ 5,853,081 $ 9,171,717 For the Year Ended December 31, 2017 Residential Commercial Commercial Beginning Balance $ 1,360,346 $ 996,620 $ 882,999 $ 5,116,266 $ 8,356,231 Provision 82,909 257,180 261,599 (301,688 ) 300,000 Charge-Offs (211,780 ) (184,161 ) (133,371 ) (301,260 ) (830,572 ) Recoveries 2,368 75,176 — 318,415 395,959 Ending Balance $ 1,233,843 $ 1,144,815 $ 1,011,227 $ 4,831,733 $ 8,221,618 |
Allowance for Credit Losses on Financing Receivables | The following tables summarize the impaired loans evaluated individually and collectively for impairment within the allowance for loan losses and loans receivable balances at December 31, 2019 and 2018 . Allowance For Loan Losses Loans Receivable December 31, 2019 Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Individually Evaluated For Impairment Collectively Evaluated For Impairment Total Residential Real Estate $ — $ 1,390,594 $ 1,390,594 1,086,433 $ 85,317,871 $ 86,404,304 Consumer — 1,210,849 1,210,849 184,402 56,146,611 56,331,013 Commercial Business — 544,764 544,764 64,406 22,169,783 22,234,189 Commercial Real Estate — 6,079,367 6,079,367 1,894,642 301,656,263 303,550,905 Total $ — $ 9,225,574 $ 9,225,574 $ 3,229,883 $ 465,290,528 $ 468,520,411 (4) Loans Receivable, Net, Continued |
Impaired Financing Receivables | The following tables present information related to impaired loans by loan category as of and for the years ended December 31, 2019, 2018 and 2017 . December 31, 2019 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Recorded: Residential Real Estate $ 1,086,433 $ 1,086,433 $ — $ 1,322,609 $ — Consumer 184,402 192,702 — 1,106,795 — Commercial Business 64,406 959,406 — 71,422 — Commercial Real Estate 1,894,642 2,066,862 — 3,893,786 54,372 Total Residential Real Estate 1,086,433 1,086,433 — 1,322,609 — Consumer 184,402 192,702 — 1,106,795 — Commercial Business 64,406 959,406 — 71,422 — Commercial Real Estate 1,894,642 2,066,862 — 3,893,786 54,372 Total $ 3,229,883 $ 4,305,403 $ — $ 6,394,612 $ 54,372 (4) Loans Receivable, Net, Continued December 31, 2018 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Recorded: Residential Real Estate $ 1,700,861 $ 1,700,861 $ — $ 1,743,906 $ 31,853 Consumer 986,380 994,680 — 502,479 — Commercial Business 77,206 972,206 — 85,020 — Commercial Real Estate 5,084,458 6,116,761 — 8,052,817 212,186 With an Allowance Recorded: Consumer 73,662 73,662 73,662 6,139 — Commercial Real Estate 1,441,558 1,441,558 665,000 636,387 84,881 Total Residential Real Estate 1,700,861 1,700,861 — 1,743,906 31,853 Consumer 1,060,042 1,068,342 73,662 508,618 — Commercial Business 77,206 972,206 — 85,020 — Commercial Real Estate 6,526,016 7,558,319 665,000 8,689,204 297,067 Total $ 9,364,125 $ 11,299,728 $ 738,662 $ 11,026,748 $ 328,920 December 31, 2017 Impaired Loans Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Recorded: Residential Real Estate $ 1,883,741 $ 2,333,741 $ — $ 2,889,065 $ 24,273 Consumer 181,617 209,427 — 279,183 — Commercial Business 100,401 950,401 — 141,940 — Commercial Real Estate 6,276,547 7,583,847 — 7,483,035 189,373 Total Residential Real Estate 1,883,741 2,333,741 — 2,889,065 24,273 Consumer 181,617 209,427 — 279,183 — Commercial Business 100,401 950,401 — 141,940 — Commercial Real Estate 6,276,547 7,583,847 — 7,483,035 189,373 Total $ 8,442,306 $ 11,077,416 $ — $ 10,793,223 $ 213,646 |
Troubled Debt Restructurings on Financing Receivables | 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 (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. They 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). The Bank had five TDRs with a total balance of $825,000 included in impaired loans at December 31, 2019 compared to seven TDRs totaling $1.4 million at December 31, 2018 . There were no TDRs restructured during the years ended December 31, 2019, 2018 and 2017 . At December 31, 2019 , there were no TDRs in default. At December 31, 2018 and 2017, one previously restructured loan with a balance of $374,000 and two previously restructured loans with a total balance of $610,000 , respectively, were in default, none of which had been restructured during the same period. The Bank considers any loan 30 days or more past due to be in default. d |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and equipment, net | Premises and equipment, net, are summarized as follows: December 31, 2019 2018 Land $ 7,708,424 $ 6,693,927 Buildings and Improvements 25,336,734 23,319,946 Furniture and Equipment 12,748,562 11,878,563 Construction in Progress 1,751,176 1,391,986 Total Premises and Equipment 47,544,896 43,284,422 Less: Accumulated Depreciation (20,325,013 ) (19,109,715 ) Total Premises and Equipment, Net $ 27,219,883 $ 24,174,707 |
Future minimum payments under non-cancelable operating leases |
Repossessed Assets Acquired I_2
Repossessed Assets Acquired In Settlement Of Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Transactions in repossessed assets | Transactions in OREO for the years ended December 31, 2019, 2018 and 2017 are summarized below. 2019 2018 2017 Balance, beginning of year $ 722,442 $ 1,115,671 $ 2,721,214 Additions 832,800 435,550 580,748 Sales (855,502 ) (772,779 ) (2,028,170 ) Write-downs (22,000 ) (56,000 ) (158,121 ) Balance, end of year $ 677,740 $ 722,442 $ 1,115,671 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits outstanding by type | Deposits outstanding at December 31, 2019 and 2018 are summarized below by account type. December 31, 2019 December 31, 2018 Balance Weighted Rate Interest Rate Range Balance Weighted Interest Rate Checking Accounts $ 260,135,924 0.11% 0.00-1.98% $ 219,515,207 0.09% 0.00-1.98% Money Market Accounts 230,693,518 0.72% 0.00-1.48% 261,136,008 0.65% 0.00-2.23% Savings Accounts 51,124,806 0.16% 0.00-1.00% 48,391,799 0.14% 0.00-0.14% Total $ 541,954,248 0.36% 0.00-1.98% $ 529,043,014 0.31% 0.00-2.23% Certificate Accounts: 0.00 – 0.99% $ 28,599,107 $ 70,854,896 1.00 – 1.99% 122,164,536 120,011,938 2.00 – 2.99% 78,689,591 47,586,859 Total $ 229,453,234 1.71% 0.45-2.96% $ 238,453,693 1.37% 0.35-2.86% Total Deposits $ 771,407,482 0.76% 0.00-2.96% $ 767,496,707 0.64% 0.00-2.86% |
Amounts and scheduled maturities of all certificates of deposit | The amounts and scheduled maturities of all certificates of deposit were as follows at December 31, 2019 and 2018 : December 31, 2019 2018 Within 1 Year $ 149,481,000 $ 160,771,824 After 1 Year, Within 2 Years 42,689,147 43,330,060 After 2 Years, Within 3 Years 18,737,910 23,990,251 After 3 Years, Within 4 Years 3,272,862 6,358,577 After 4 Years, Within 5 Years 15,272,315 3,488,598 Thereafter — 514,383 Total Certificates of Deposits $ 229,453,234 $ 238,453,693 |
Advances From Federal Home Lo_2
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Advances from the FHLB summarized by year of maturity and weighted average interest rate | Advances from the FHLB are summarized by year of maturity and weighted average interest rate at December 31, 2019 below. Amount Weighted Rate 2020 $ 13,138,000 1.88% 2021 25,000,000 1.97% Total $ 38,138,000 1.94% |
Callable FHLB advances |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income tax expense | Income tax expense was comprised of the following for the dates indicated below: Years Ended December 31, 2019 2018 2017 Current: Federal $ 1,437,595 $ 1,454,049 $ 1,500,337 State 145,412 202,292 209,396 Total Current Tax Expense 1,583,007 1,656,341 1,709,733 Deferred: Federal 105,960 (79,034 ) 736,390 State (9,417 ) (7,781 ) (10,663 ) Total Deferred Tax Expense (Benefit) 96,543 (86,815 ) 725,727 Total Income Tax Expense $ 1,679,550 $ 1,569,526 $ 2,435,460 |
Income tax reconciliation | Years Ended December 31, 2019 2018 2017 Tax at Statutory Income Tax Rate $ 1,989,548 $ 1,843,117 $ 2,840,292 State Tax and Other 100,820 157,417 44,764 Tax Exempt Interest (291,768 ) (338,497 ) (730,477 ) Life Insurance (142,508 ) (113,400 ) (394,445 ) Valuation Allowance 23,458 20,889 69,133 Impact of Federal Rate Change on Deferred Taxes — — 606,193 Total Income Tax Expense $ 1,679,550 $ 1,569,526 $ 2,435,460 |
Deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2019 and 2018 are presented below. Net deferred tax assets were included in other assets at December 31, 2019 and 2018 . December 31, 2019 2018 Deferred Tax Assets: Deferred Compensation $ 587,322 $ 498,764 Provision for Loan Losses 2,000,131 1,978,481 Other Real Estate Owned — 18,283 Net Fees Deferred for Financial Reporting 76,262 73,892 Net Operating Losses 356,759 333,301 Other 126,492 240,724 Total Gross Deferred Tax Assets 3,146,966 3,143,445 Less: Valuation Allowance (356,759 ) (333,301 ) Net Deferred Tax Assets 2,790,207 2,810,144 Deferred Tax Liabilities: FHLB Stock Basis Over Tax Basis 72,208 71,717 Depreciation 585,520 507,601 Prepaid Expenses 35,033 36,837 Unrealized Gain on Securities Available for Sale 1,473,077 10,487 Total Gross Deferred Tax Liability 2,165,838 626,642 Net Deferred Tax Asset $ 624,369 $ 2,183,502 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory capital amounts and ratios | The tables below provide the Bank’s regulatory capital requirements and actual results at December 31, 2019 and 2018 . Actual For Capital Adequacy To Be Well Capitalized (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Tier 1 Risk-Based Core Capital $ 101,280 18.2 % $ 33,418 6.0 % $ 44,558 8.0 % Total Risk-Based Capital 108,270 19.4 % 44,558 8.0 % 55,697 10.0 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 101,280 18.2 % 25,064 4.5 % 36,203 6.5 % Tier 1 Leverage (Core) Capital 101,280 10.4 % 39,134 4.0 % 48,917 5.0 % December 31, 2018 Tier 1 Risk-Based Core Capital $ 89,188 16.2 % $ 33,005 6.0 % $ 44,007 8.0 % Total Risk-Based Capital 96,092 17.5 % 44,007 8.0 % 55,009 10.0 % Common Equity Tier 1 Capital (To Risk Weighted Assets) 89,188 16.2 % 24,754 4.5 % 35,756 6.5 % Tier 1 Leverage (Core) Capital 89,188 9.8 % 36,486 4.0 % 45,608 5.0 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Activity under the incentive and non-qualified stock option plans | The following is a summary of the activity under the Company’s incentive and non-qualified stock option plans for the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 Weighted Avg. Weighted Avg. Balance, Beginning of Period 4,500 $ 22.91 21,500 $ 23.57 Options Exercised 450 22.91 7,500 23.49 Options Forfeited 4,050 22.91 9,500 23.95 Balance, End of Period — $ — 4,500 $ 22.91 Options Exercisable — $ — 4,500 $ 22.91 Weighted-Average Remaining Life of Exercisable Options — 0.4 years Options Available for Grant — 50,000 |
Options outstanding |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Loan transactions with directors, including their affiliates, and executive officers | A summary of loan transactions with directors, including their affiliates, and executive officers follows: Years Ended December 31, 2019 2018 2017 Balance, Beginning of Period $ 32,961 $ 94,292 $ 141,972 New Loans 417,590 674 1,078 Less Loan Payments (19,035 ) (62,005 ) (48,758 ) Balance, End of Period $ 431,516 $ 32,961 $ 94,292 |
Security Federal Corporation _2
Security Federal Corporation Condensed Financial Statements (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet Data | Condensed Balance Sheet Data December 31, 2019 2018 Assets: Cash $ 25,685,744 $ 3,619,418 Investment in Security Federal Statutory Trust 155,000 155,000 Investment in Security Federal Bank 106,947,285 90,359,718 Accounts Receivable and Other Assets 386,889 14,492 Total Assets $ 133,174,918 $ 94,148,628 Liabilities and Shareholders’ Equity: Accounts Payable and Other Liabilities $ 219,213 $ 49,995 Long-term Debt 41,199,000 13,581,500 Shareholders’ Equity 91,756,705 80,517,133 Total Liabilities and Shareholders’ Equity $ 133,174,918 $ 94,148,628 |
Condensed Statements of Income Data | Condensed Statements of Income Data Years Ended December 31, 2019 2018 2017 Income: Equity in Earnings of Security Federal Bank $ 2,092,130 $ 1,523,443 $ 136,682 Dividend Income from Security Federal Bank 6,400,000 6,400,000 6,400,000 Gain on Sale of Investments — — 118,725 Miscellaneous Income 62,390 21,235 15,807 Total Income 8,554,520 7,944,678 6,671,214 Expenses: Interest Expense 906,152 916,832 1,057,065 Other Expenses 39,331 11,099 14,349 Total Expenses 945,483 927,931 1,071,414 Income Before Income Taxes 7,609,037 7,016,747 5,599,800 Income Tax Benefit (185,450 ) (190,474 ) (318,540 ) Net Income $ 7,794,487 $ 7,207,221 $ 5,918,340 |
Condensed Statements of Cash Flow Data | Condensed Statements of Cash Flow Data Years Ended December 31, 2019 2018 2017 Operating Activities: Net Income $ 7,794,487 $ 7,207,221 $ 5,918,340 Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: Equity in Earnings of Security Federal Bank (2,092,130 ) (1,523,443 ) (136,682 ) Deferred Compensation Expense — — 25,358 (Increase) Decrease in Accounts Receivable and Other Assets (372,398 ) 13,666 3,117 Increase (Decrease) in Accounts Payable 169,218 1,635 (33,612 ) Net Cash Provided By Operating Activities 5,499,177 5,699,079 5,776,521 Investing Activities: Capital Pushdown to Security Federal Bank (10,000,000 ) — — Proceeds from Sale of Investments — — 95,438 Net Cash (Used) Provided By Investing Activities (10,000,000 ) — 95,438 Financing Activities: Redemption of Convertible Debentures — — (20,000 ) Proceeds from Stock Options Exercised — 10,310 176,175 Employee Stock Plan Purchases 52,868 12,196 — Proceeds from Subordinated Debentures 30,000,000 — — Repayment of Note Payable (2,362,500 ) (6,137,500 ) (4,500,000 ) Dividends Paid to Shareholders-Common Stock (1,123,219 ) (1,063,626 ) (1,060,729 ) Net Cash Provided (Used) By Financing Activities 26,567,149 (7,178,620 ) (5,404,554 ) Net Increase (Decrease) in Cash 22,066,326 (1,479,541 ) 467,405 Cash at Beginning of Period 3,619,418 5,098,959 4,631,554 Cash at End of Period $ 25,685,744 $ 3,619,418 $ 5,098,959 |
Carrying Amounts and Fair Val_2
Carrying Amounts and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring basis | sets measured at fair value on a recurring basis at December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Student Loan Pools $ — $ 40,231,830 $ — $ — $ 12,885,501 $ — SBA Bonds — 111,893,099 — — 125,446,531 — Tax Exempt Municipal Bonds — 47,241,494 — — 61,330,369 — Taxable Municipal Bonds — 14,840,410 — — 1,977,885 — Mortgage-Backed Securities — 200,438,007 — — 184,460,551 — Total $ — $ 414,644,840 $ — $ — $ 386,100,837 $ — |
Fair value measurements, nonrecurring basis | The table below presents assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall. December 31, 2019 Assets Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 3,990,606 $ — $ 3,990,606 Collateral Dependent Impaired Loans (1) — — 3,222,746 3,222,746 Foreclosed Assets — — 677,740 677,740 Total $ — $ 3,990,606 $ 3,900,486 $ 7,891,092 December 31, 2018 Assets Level 1 Level 2 Level 3 Total Mortgage Loans Held For Sale $ — $ 1,781,985 $ — $ 1,781,985 Collateral Dependent Impaired Loans (1) — — 8,613,570 8,613,570 Foreclosed Assets — — 722,442 722,442 Total $ — $ 1,781,985 $ 9,336,012 $ 11,117,997 |
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, the significant unobservable inputs used in the fair value measurements were as follows as of December 31, 2019 and 2018 : Valuation Significant 2019 2018 Level 3 Assets Technique Unobservable Inputs Range Range Collateral Dependent Impaired Loans Appraised Value Discount Rates/ Discounts to Appraised Values Foreclosed Assets Appraised Value/Comparable Sales Discount Rates/ Discounts to Appraised Values |
Summary of the carrying value and estimated fair value of financial instruments | The following tables summarize the carrying value and estimated fair value of the Company’s financial instruments as of December 31, 2019 and 2018 presented in accordance with the applicable accounting guidance. December 31, 2019 Carrying Fair Value (In Thousands) Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and Cash Equivalents $ 12,536 $ 12,536 $ 12,536 $ — $ — Certificates of Deposits with Other Banks 950 950 — 950 — Investment and Mortgage-Backed Securities 433,892 434,451 — 434,451 — Loans Receivable, Net 452,859 450,796 — — 450,796 FHLB Stock 2,537 2,537 2,537 — — Financial Liabilities: Deposits: Checking, Savings and Money Market Accounts $ 541,954 $ 541,954 $ 541,954 $ — $ — Certificate Accounts 229,453 229,363 — 229,363 — Advances From FHLB 38,138 38,233 — 38,233 — Other Borrowed Money 11,580 11,580 11,580 — — Subordinated Debentures 30,000 30,000 — 30,000 — Junior Subordinated Debentures 5,155 5,155 — 5,155 — Senior Convertible Debentures 6,044 6,044 — 6,044 — |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited condensed financial data by quarter | Unaudited condensed financial data by quarter for the years ended December 31, 2019 and 2018 is as follows (dollars, except per share data, in thousands): Quarter ended 3/31/2019 6/30/2019 9/30/2019 12/31/2019 Interest Income $ 9,031 $ 9,128 $ 9,641 $ 9,134 Interest Expense 1,774 2,009 2,291 2,237 Net Interest Income 7,257 7,119 7,350 6,897 Provision for Loan Losses 100 — 75 200 Net Interest Income After Provision for Loan Losses 7,157 7,119 7,275 6,697 Non-interest Income 2,196 2,492 2,408 2,000 Non-interest Expense 6,744 7,241 6,989 6,896 Income Before Income Tax 2,609 2,370 2,694 1,801 Provision for Income Taxes 520 486 475 199 Net Income $ 2,089 $ 1,884 $ 2,219 $ 1,602 Basic Net Income Per Common Share $ 0.71 $ 0.64 $ 0.75 $ 0.54 Diluted Net Income Per Common Share $ 0.67 $ 0.61 $ 0.71 $ 0.51 Basic Weighted Average Shares Outstanding 2,954,515 2,955,650 2,956,156 2,956,600 Diluted Weighted Average Shares Outstanding 3,256,715 3,257,850 3,258,356 3,258,800 Quarter ended 3/31/2018 6/30/2018 9/30/2018 12/31/2018 Interest Income $ 7,774 $ 8,029 $ 8,507 $ 8,763 Interest Expense 1,169 1,286 1,430 1,565 Net Interest Income 6,605 6,743 7,077 7,198 Provision For Loan Losses — — 150 775 Net Interest Income After Provision for Loan Losses 6,605 6,743 6,927 6,423 Non-interest Income 2,044 1,744 2,070 1,811 Non-interest Expense 6,519 6,240 6,418 6,413 Income Before Income Tax 2,130 2,247 2,579 1,821 Provision for Income Taxes 400 427 471 271 Net Income $ 1,730 $ 1,820 $ 2,108 $ 1,550 Basic Net Income Per Common Share $ 0.59 $ 0.62 $ 0.71 $ 0.52 Diluted Net Income Per Common Share $ 0.56 $ 0.59 $ 0.68 $ 0.50 Basic Weighted Average Shares Outstanding 2,953,180 2,953,412 2,953,424 2,953,763 Diluted Weighted Average Shares Outstanding 3,257,532 3,257,017 3,256,624 3,256,963 |
Significant Accounting Polici_4
Significant Accounting Policies (Change in Fiscal Year) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Interest Income | $ 9,134,000 | $ 9,641,000 | $ 9,128,000 | $ 9,031,000 | $ 8,763,000 | $ 8,507,000 | $ 8,029,000 | $ 7,774,000 | $ 36,934,111 | $ 33,072,075 | $ 29,786,905 |
Interest Expense | 2,237,000 | 2,291,000 | 2,009,000 | 1,774,000 | 1,565,000 | 1,430,000 | 1,286,000 | 1,169,000 | 8,311,500 | 5,449,419 | 4,175,301 |
Net Interest Income | 6,897,000 | 7,350,000 | 7,119,000 | 7,257,000 | 7,198,000 | 7,077,000 | 6,743,000 | 6,605,000 | 28,622,611 | 27,622,656 | 25,611,604 |
Provision For Loan Losses | 200,000 | 75,000 | 0 | 100,000 | 775,000 | 150,000 | 0 | 0 | 375,000 | 925,000 | 300,000 |
Net Interest Income After Provision For Loan Losses | 6,697,000 | 7,275,000 | 7,119,000 | 7,157,000 | 6,423,000 | 6,927,000 | 6,743,000 | 6,605,000 | 28,247,611 | 26,697,656 | 25,311,604 |
Non-Interest Income | 2,000,000 | 2,408,000 | 2,492,000 | 2,196,000 | 1,811,000 | 2,070,000 | 1,744,000 | 2,044,000 | 9,097,143 | 7,669,146 | 7,344,283 |
General And Administrative Expenses | 6,896,000 | 6,989,000 | 7,241,000 | 6,744,000 | 6,413,000 | 6,418,000 | 6,240,000 | 6,519,000 | 27,870,717 | 25,590,055 | 24,302,087 |
Income Before Income Taxes | 1,801,000 | 2,694,000 | 2,370,000 | 2,609,000 | 1,821,000 | 2,579,000 | 2,247,000 | 2,130,000 | 9,474,037 | 8,776,747 | 8,353,800 |
Provision For Income Taxes | 199,000 | 475,000 | 486,000 | 520,000 | 271,000 | 471,000 | 427,000 | 400,000 | 1,679,550 | 1,569,526 | 1,829,267 |
Net Income | $ 1,602,000 | $ 2,219,000 | $ 1,884,000 | $ 2,089,000 | $ 1,550,000 | $ 2,108,000 | $ 1,820,000 | $ 1,730,000 | 7,794,487 | 7,207,221 | $ 5,918,340 |
Net Income Available To Common Shareholders | $ 7,794,487 | $ 7,207,221 | |||||||||
Net Income Per Common Share (Basic) | $ 0.54 | $ 0.75 | $ 0.64 | $ 0.71 | $ 0.52 | $ 0.71 | $ 0.62 | $ 0.59 | $ 2.64 | $ 2.44 | $ 2.01 |
Net Income Per Common Share (Diluted) | $ 0.51 | $ 0.71 | $ 0.61 | $ 0.67 | $ 0.50 | $ 0.68 | $ 0.59 | $ 0.56 | 2.50 | 2.32 | 1.91 |
Cash Dividend Per Share On Common Stock | $ 0.40 | $ 0.36 | $ 0.36 |
Significant Accounting Polici_5
Significant Accounting Policies (Premises and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building and Improvements [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Building and Improvements [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Furniture and Equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Furniture and Equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Significant Accounting Polici_6
Significant Accounting Policies (Earnings Per Share - Reconciliation of net income to net income available to common shareholders) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Available To Common Shareholders | |||||||||||
Net Income | $ 1,602,000 | $ 2,219,000 | $ 1,884,000 | $ 2,089,000 | $ 1,550,000 | $ 2,108,000 | $ 1,820,000 | $ 1,730,000 | $ 7,794,487 | $ 7,207,221 | $ 5,918,340 |
Income | $ 7,794,487 | $ 7,207,221 |
Significant Accounting Polici_7
Significant Accounting Policies (Earnings Per Share - Effects of dilutive options and warrants) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic EPS | |||||||||||
Income | $ 7,794,487 | $ 7,207,221 | |||||||||
Shares | 2,956,600 | 2,956,156 | 2,955,650 | 2,954,515 | 2,953,763 | 2,953,424 | 2,953,412 | 2,953,180 | 2,955,737 | 2,953,446 | 2,945,918 |
Per Share Amounts | $ 0.54 | $ 0.75 | $ 0.64 | $ 0.71 | $ 0.52 | $ 0.71 | $ 0.62 | $ 0.59 | $ 2.64 | $ 2.44 | $ 2.01 |
Effect of Diluted Securities: | |||||||||||
Senior Convertible Debentures | 302,200 | 303,200 | |||||||||
Senior Convertible Debentures (per Share) | $ (0.14) | $ (0.12) | |||||||||
Diluted EPS | |||||||||||
Income | $ 8,157,127 | $ 7,569,861 | |||||||||
Shares | 3,258,800 | 3,258,356 | 3,257,850 | 3,256,715 | 3,256,963 | 3,256,624 | 3,257,017 | 3,257,532 | 3,257,937 | 3,256,646 | 3,250,069 |
Per Share Amounts | $ 0.51 | $ 0.71 | $ 0.61 | $ 0.67 | $ 0.50 | $ 0.68 | $ 0.59 | $ 0.56 | $ 2.50 | $ 2.32 | $ 1.91 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 362,640 | $ 362,640 | |||||||||
Weighted Average [Member] | |||||||||||
Diluted EPS | |||||||||||
Share Price | $ 29.05 |
Significant Accounting Polici_8
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Cash Equivalents, Original Maturity Period, Maximum | 3 months | ||
Loans and Leases Receivable, Placed on Nonaccrual Status, Period Delinquent | 90 days | ||
Advertising | $ 796,213 | $ 546,799 | $ 596,440 |
Investment and Mortgage-Backe_4
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of Available for Sale Securities) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | $ 408,695,280 | $ 386,141,513 | |
Available-for-sale Securities, Gross Unrealized Gains | 8,410,493 | 3,177,017 | |
Available-for-sale Securities, Gross Unrealized Losses | 2,460,933 | 3,217,693 | |
Available-for-sale Securities, Fair Value Disclosure | 414,644,840 | 386,100,837 | |
Proceeds From Sale of Available For Sale Securities Including Mortgage Backed Securities | 96,500,000 | 33,300,000 | $ 72,000,000 |
Available For Sale Securities Pledged as Collateral, Amortized Cost Basis | 171,400,000 | 111,800,000 | |
AFS Securities Pledged as Collateral - Fair Value | 173,100,000 | 111,700,000 | |
Available-for-sale Securities, Gross Realized Gains | 1,456,000 | 732,000 | 1,004,500 |
Available-for-sale Securities, Gross Realized Losses | 636,000 | 159,000 | $ 510,000 |
Student loan pools [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 41,088,231 | 12,934,037 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 20,713 | |
Available-for-sale Securities, Gross Unrealized Losses | 856,401 | 69,249 | |
SBA Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 111,927,938 | 125,777,016 | |
Available-for-sale Securities, Gross Unrealized Gains | 622,105 | 560,352 | |
Available-for-sale Securities, Gross Unrealized Losses | 656,944 | 890,837 | |
MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 197,356,288 | 185,291,038 | |
Available-for-sale Securities, Gross Unrealized Gains | 3,664,621 | 1,073,432 | |
Available-for-sale Securities, Gross Unrealized Losses | 582,902 | 1,903,919 | |
Nontaxable Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 43,153,086 | 60,141,164 | |
Available-for-sale Securities, Gross Unrealized Gains | 4,088,408 | 1,518,974 | |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 329,769 | |
Taxable Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 15,169,737 | 1,998,258 | |
Available-for-sale Securities, Gross Unrealized Gains | 35,359 | 3,546 | |
Available-for-sale Securities, Gross Unrealized Losses | 364,686 | 23,919 | |
GNMA Mortgage-Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 63,200,000 | 80,400,000 | |
Available-for-sale Securities, Fair Value Disclosure | 63,900,000 | 80,200,000 | |
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 | $ 15,800,000 | $ 29,700,000 |
Investment and Mortgage-Backe_5
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of AFS Securities, Contractual Maturities) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Less Than One Year, Amortized Cost | $ 18,237 | |
One – Five Years, Amortized Cost | 6,314,205 | |
Five – Ten Years, Amortized Cost | 57,236,558 | |
After Ten Years, Amortized Cost | 147,769,992 | |
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 408,695,280 | $ 386,141,513 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 408,695,280 | |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less Than One Year, Fair Value | 18,134 | |
One – Five Years, Fair Value | 6,342,172 | |
Five – Ten Years, Fair Value | 57,209,659 | |
After Ten Years, Fair Value | 150,636,868 | |
Available-for-sale Securities, Fair Value Disclosure | 414,644,840 | $ 386,100,837 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 414,644,840 |
Investment and Mortgage-Backe_6
Investment and Mortgage-Backed Securities, Available for Sale (Schedule of Temporarily Impaired Securities, Fair Value and Unrealized losses) (Details) | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Investment Securities, Available For Sale | $ 414,644,840 | $ 386,100,837 |
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 408,695,280 | 386,141,513 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 113,060,506 | 110,635,528 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 65,523,232 | 117,609,243 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 178,583,738 | 228,244,771 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 1,485,802 | 889,535 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 975,131 | 2,328,158 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | $ 2,460,933 | $ 3,217,693 |
Number of individual securities available for sale that are in unrealized continuous loss positions for twelve months or more | security | 69 | 92 |
Percent of unrealized losses for securities in a continuous loss position for 12 months or more | 39.60% | 72.40% |
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 | $ 15,800,000 | $ 29,700,000 |
GNMA Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment Securities, Available For Sale | 63,900,000 | 80,200,000 |
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 63,200,000 | 80,400,000 |
SBA Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 111,927,938 | 125,777,016 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 13,844,666 | 59,496,936 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 47,395,036 | 25,054,861 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 61,239,702 | 84,551,797 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 106,110 | 479,955 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 550,834 | 410,882 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 656,944 | 890,837 |
Tax Exempt Municipal Bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,585,849 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 9,626,613 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 14,212,462 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 91,281 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 238,488 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 329,769 | |
MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost of Investment And Mortgage-Backed Securities Available For Sale | 197,356,288 | 185,291,038 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 55,326,064 | 38,168,598 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 7,975,863 | 81,947,249 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 63,301,927 | 120,115,847 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | 480,958 | 249,050 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | 101,944 | 1,654,869 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses | 582,902 | 1,903,919 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investment Securities, Available For Sale | $ 414,644,840 | $ 386,100,837 |
Investment and Mortgage-Backe_7
Investment and Mortgage-Backed Securities, Held to Maturity (Schedule of investment and mortgage-backed securities held to maturity) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 0 | |
Held to maturity, gross unrealized gains | 560,067 | $ 78,281 |
Held to maturity, gross unrealized losses | 1,161 | 466,894 |
Held To Maturity, Amortized Cost | 19,246,935 | 23,638,013 |
Fair Value of Investment And Mortgage-Backed Securities Held To Maturity | 19,805,841 | 23,249,400 |
Debt Securities, Held-to-maturity, Restricted [Extensible List] | 17,500,000 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 820,313 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,161 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 820,313 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | 1,161 | |
Held to maturity pledged as collateral, fair value | 18,000,000 | 19,800,000 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value of Investment And Mortgage-Backed Securities Held To Maturity | 11,600,000 | 13,100,000 |
Debt Securities, Held-to-maturity | 11,300,000 | |
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 | 0 | 0 |
Held to maturity, gross unrealized gains | 560,067 | 78,281 |
Held to maturity, gross unrealized losses | 1,161 | 446,330 |
Fair Value of Investment And Mortgage-Backed Securities Held To Maturity | 19,805,841 | 22,271,423 |
Debt Securities, Held-to-maturity | 19,246,935 | 22,639,472 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 820,313 | 16,855,973 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,161 | 446,330 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 820,313 | 16,855,973 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | $ 1,161 | 446,330 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, gross unrealized gains | 0 | |
Held to maturity, gross unrealized losses | 20,564 | |
Fair Value of Investment And Mortgage-Backed Securities Held To Maturity | 977,977 | |
Debt Securities, Held-to-maturity | $ 998,541 |
Loans Receivable, Net (Schedule
Loans Receivable, Net (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 468,520,411 | $ 444,920,095 |
Loans Held For Sale | 3,990,606 | 1,781,985 |
Total Loans Receivable, Gross | 472,511,017 | 446,702,080 |
Allowance For Loan Losses | 9,225,574 | 9,171,717 |
Loans in Process | 9,957,140 | 7,225,271 |
Deferred Loan Fees | 469,568 | 251,575 |
Loans, Allowances, and Fees | 19,652,282 | 16,648,563 |
Total Loans Receivable, Net | 452,858,735 | 430,053,517 |
Residential Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 86,404,304 | 83,965,416 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 56,331,013 | 56,907,555 |
Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 22,234,189 | 28,086,686 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 303,550,905 | $ 275,960,438 |
Loans Receivable, Net (Financin
Loans Receivable, Net (Financing Receivable Credit Quality Indicators) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 468,520,411 | $ 444,920,095 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 86,404,304 | 83,965,416 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 56,331,013 | 56,907,555 |
Commercial Business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 22,234,189 | 28,086,686 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 303,550,905 | 275,960,438 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 367,920,287 | 349,374,467 |
Pass [Member] | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 76,674,539 | 75,558,544 |
Pass [Member] | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 44,294,400 | 46,948,251 |
Pass [Member] | Commercial Business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,140,592 | 22,670,318 |
Pass [Member] | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 230,810,756 | 204,197,354 |
Caution [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 75,741,228 | 60,631,520 |
Caution [Member] | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 4,612,182 | 3,369,776 |
Caution [Member] | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 9,617,301 | 6,899,912 |
Caution [Member] | Commercial Business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,486,393 | 4,708,036 |
Caution [Member] | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 56,025,352 | 45,653,796 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,366,527 | 20,358,354 |
Special Mention [Member] | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,155,802 | 958,354 |
Special Mention [Member] | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 624,248 | 567,682 |
Special Mention [Member] | Commercial Business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 301,462 | 339,533 |
Special Mention [Member] | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 14,285,015 | 18,492,785 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 8,492,369 | 14,555,754 |
Substandard [Member] | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,961,781 | 4,078,742 |
Substandard [Member] | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,795,064 | 2,491,710 |
Substandard [Member] | Commercial Business | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 305,742 | 368,799 |
Substandard [Member] | Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 2,429,782 | $ 7,616,503 |
Loans Receivable, Net (Schedu_2
Loans Receivable, Net (Schedule of Allowance for Loan Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 9,171,717 | $ 8,221,618 | $ 8,356,231 |
Provision For Loan Losses | 375,000 | 925,000 | 300,000 |
Charge-Offs | (985,317) | (655,785) | (830,572) |
Recoveries | 664,174 | 680,884 | 395,959 |
Ending Balance | 9,225,574 | 9,171,717 | 8,221,618 |
Residential Real Estate | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 1,191,443 | 1,233,843 | 1,360,346 |
Provision For Loan Losses | 227,624 | 2,411 | 82,909 |
Charge-Offs | (34,599) | (46,419) | (211,780) |
Recoveries | 6,126 | 1,608 | 2,368 |
Ending Balance | 1,390,594 | 1,191,443 | 1,233,843 |
Consumer | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 1,203,593 | 1,144,815 | 996,620 |
Provision For Loan Losses | 324,394 | 173,235 | 257,180 |
Charge-Offs | (432,003) | (224,954) | (184,161) |
Recoveries | 114,865 | 110,497 | 75,176 |
Ending Balance | 1,210,849 | 1,203,593 | 1,144,815 |
Commercial Business | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 923,600 | 1,011,227 | 882,999 |
Provision For Loan Losses | (392,817) | (55,109) | 261,599 |
Charge-Offs | (1,132) | (32,518) | (133,371) |
Recoveries | 15,113 | 0 | 0 |
Ending Balance | 544,764 | 923,600 | 1,011,227 |
Commercial Real Estate 1 [Member] | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 5,853,081 | 4,831,733 | 5,116,266 |
Provision For Loan Losses | 215,799 | 804,463 | (301,688) |
Charge-Offs | (517,583) | (351,894) | (301,260) |
Recoveries | 528,070 | 568,779 | 318,415 |
Ending Balance | $ 6,079,367 | $ 5,853,081 | $ 4,831,733 |
Loans Receivable, Net (Past Due
Loans Receivable, Net (Past Due Financing Receivables) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 6,668,150 | $ 6,700,027 |
Current | 461,852,261 | 438,220,068 |
Total | 468,520,411 | 444,920,095 |
Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 499,499 | 829,713 |
Current | 85,904,805 | 83,135,703 |
Total | 86,404,304 | 83,965,416 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 721,721 | 1,924,154 |
Current | 55,609,292 | 54,983,401 |
Total | 56,331,013 | 56,907,555 |
Commercial Business | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 244,790 | 330,424 |
Current | 21,989,399 | 27,756,262 |
Total | 22,234,189 | 28,086,686 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,202,140 | 3,615,736 |
Current | 298,348,765 | 272,344,702 |
Total | 303,550,905 | 275,960,438 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,419,826 | 2,318,274 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 422,443 | 555,798 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Business | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 147,959 | 205,613 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,849,424 | 1,556,863 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 649,347 | 1,110,160 |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 355,290 | 332,000 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 217,542 | 247,894 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Business | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 76,515 | 106,163 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 424,103 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,598,977 | 3,271,593 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 144,209 | 497,713 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 81,736 | 1,120,462 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Business | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20,316 | 18,648 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 1,352,716 | $ 1,634,770 |
Loans Receivable, Net (Schedu_3
Loans Receivable, Net (Schedule of non-accrual loans by category) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | $ 3,436,406 | $ 7,048,495 | |
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | [1] | 0.70% | 1.60% |
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | $ (3,612,089) | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (51.20%) | ||
Residential Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | $ 1,520,485 | $ 2,084,870 | |
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | [1] | 0.30% | 0.50% |
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | $ (564,385) | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (27.10%) | ||
Commercial Business | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | $ 122,605 | $ 124,458 | |
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | [1] | 0.00% | 0.00% |
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | $ (1,853) | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (1.50%) | ||
Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | $ 1,474,036 | $ 3,564,494 | |
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | [1] | 0.30% | 0.80% |
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | $ (2,090,458) | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (58.60%) | ||
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount | $ 319,280 | $ 1,274,673 | |
Financing Receivable, Recorded Investment, Nonaccrual Status, Percentage (1) | [1] | 0.10% | 0.30% |
Financing Receivable, Recorded Investment, Nonaccrual Status, Amount, Increase (Decrease) | $ (955,393) | ||
Financing Receivable, Recorded Investment, Nonaccrual Status, Percent, Increase (Decrease) | (75.00%) | ||
[1] | PERCENT OF GROSS LOANS RECEIVABLE 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 ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated For Impairment | $ 0 | $ 738,662 |
Collectively Evaluated For Impairment | 9,225,574 | 8,433,055 |
Total | 9,225,574 | 9,171,717 |
Financing Receivable, Individually Evaluated for Impairment | 3,229,883 | 9,364,125 |
Financing Receivable, Collectively Evaluated for Impairment | 465,290,528 | 435,555,970 |
Total | 468,520,411 | 444,920,095 |
Residential Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 1,390,594 | 1,191,443 |
Total | 1,390,594 | 1,191,443 |
Financing Receivable, Individually Evaluated for Impairment | 1,086,433 | 1,700,861 |
Financing Receivable, Collectively Evaluated for Impairment | 85,317,871 | 82,264,555 |
Total | 86,404,304 | 83,965,416 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated For Impairment | 0 | 73,662 |
Collectively Evaluated For Impairment | 1,210,849 | 1,129,931 |
Total | 1,210,849 | 1,203,593 |
Financing Receivable, Individually Evaluated for Impairment | 184,402 | 1,060,043 |
Financing Receivable, Collectively Evaluated for Impairment | 56,146,611 | 55,847,512 |
Total | 56,331,013 | 56,907,555 |
Commercial Business | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated For Impairment | 0 | 0 |
Collectively Evaluated For Impairment | 544,764 | 923,600 |
Total | 544,764 | 923,600 |
Financing Receivable, Individually Evaluated for Impairment | 64,406 | 77,206 |
Financing Receivable, Collectively Evaluated for Impairment | 22,169,783 | 28,009,480 |
Total | 22,234,189 | 28,086,686 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually Evaluated For Impairment | 0 | 665,000 |
Collectively Evaluated For Impairment | 6,079,367 | 5,188,081 |
Total | 6,079,367 | 5,853,081 |
Financing Receivable, Individually Evaluated for Impairment | 1,894,642 | 6,526,015 |
Financing Receivable, Collectively Evaluated for Impairment | 301,656,263 | 269,434,423 |
Total | $ 303,550,905 | $ 275,960,438 |
Loans Receivable, Net (Impaired
Loans Receivable, Net (Impaired Financing Receivables) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, related allowance | $ 0 | $ 738,662 | $ 0 |
Impaired financing receivable, recorded investment | 3,229,883 | 9,364,125 | 8,442,306 |
Impaired financing receivable, unpaid principal balance | 4,305,403 | 11,299,728 | 11,077,416 |
Impaired financing receivable, average recorded investment | 6,394,612 | 11,026,748 | 10,793,223 |
Impaired financing receivable, interest income, accrual method | 54,372 | 328,920 | 213,646 |
Residential Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 1,086,433 | 1,700,861 | 1,883,741 |
Impaired financing receivable, with no related allowance, unpaid principal balance | 1,086,433 | 1,700,861 | 2,333,741 |
Impaired financing receivable, with no related allowance, average recorded investment | 1,322,609 | 1,743,906 | 2,889,065 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 31,853 | 24,273 |
Impaired financing receivable, related allowance | 0 | 0 | 0 |
Impaired financing receivable, recorded investment | 1,086,433 | 1,700,861 | 1,883,741 |
Impaired financing receivable, unpaid principal balance | 1,086,433 | 1,700,861 | 2,333,741 |
Impaired financing receivable, average recorded investment | 1,322,609 | 1,743,906 | 2,889,065 |
Impaired financing receivable, interest income, accrual method | 0 | 31,853 | 24,273 |
Consumer Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 184,402 | 986,380 | 181,617 |
Impaired financing receivable, with no related allowance, unpaid principal balance | 192,702 | 994,680 | 209,427 |
Impaired financing receivable, with no related allowance, average recorded investment | 1,106,795 | 502,479 | 279,183 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired financing receivable, with related allowance, recorded investment | 73,662 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 73,662 | ||
Impaired financing receivable, related allowance | 0 | 73,662 | 0 |
Impaired financing receivable, with related allowance, average recorded investment | 6,139 | ||
Impaired financing receivable, with related allowance, interest income, accrual method | 0 | ||
Impaired financing receivable, recorded investment | 184,402 | 1,060,042 | 181,617 |
Impaired financing receivable, unpaid principal balance | 192,702 | 1,068,342 | 209,427 |
Impaired financing receivable, average recorded investment | 1,106,795 | 508,618 | 279,183 |
Impaired financing receivable, interest income, accrual method | 0 | 0 | 0 |
Commercial Business | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 64,406 | 77,206 | 100,401 |
Impaired financing receivable, with no related allowance, unpaid principal balance | 959,406 | 972,206 | 950,401 |
Impaired financing receivable, with no related allowance, average recorded investment | 71,422 | 85,020 | 141,940 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 0 | 0 | 0 |
Impaired financing receivable, related allowance | 0 | 0 | 0 |
Impaired financing receivable, recorded investment | 64,406 | 77,206 | 100,401 |
Impaired financing receivable, unpaid principal balance | 959,406 | 972,206 | 950,401 |
Impaired financing receivable, average recorded investment | 71,422 | 85,020 | 141,940 |
Impaired financing receivable, interest income, accrual method | 0 | 0 | 0 |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, recorded investment | 1,894,642 | 5,084,458 | 6,276,547 |
Impaired financing receivable, with no related allowance, unpaid principal balance | 2,066,862 | 6,116,761 | 7,583,847 |
Impaired financing receivable, with no related allowance, average recorded investment | 3,893,786 | 8,052,817 | 7,483,035 |
Impaired financing receivable, with no related allowance, interest income, accrual method | 54,372 | 212,186 | 189,373 |
Impaired financing receivable, with related allowance, recorded investment | 1,441,558 | ||
Impaired financing receivable, with related allowance, unpaid principal balance | 1,441,558 | ||
Impaired financing receivable, related allowance | 0 | 665,000 | 0 |
Impaired financing receivable, with related allowance, average recorded investment | 636,387 | ||
Impaired financing receivable, with related allowance, interest income, accrual method | 84,881 | ||
Impaired financing receivable, recorded investment | 1,894,642 | 6,526,016 | 6,276,547 |
Impaired financing receivable, unpaid principal balance | 2,066,862 | 7,558,319 | 7,583,847 |
Impaired financing receivable, average recorded investment | 3,893,786 | 8,689,204 | 7,483,035 |
Impaired financing receivable, interest income, accrual method | $ 54,372 | $ 297,067 | $ 189,373 |
Loans Receivable, Net (Summary
Loans Receivable, Net (Summary of loans restructured as Troubled Debt Restructurings) (Details) | 12 Months Ended |
Dec. 31, 2018loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts - Troubled Debt Restructurings That Subsequently Defaulted During the Period | 0 |
Loans Receivable, Net (Narrativ
Loans Receivable, Net (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)paymentsloan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Receivables [Abstract] | |||
Review period to request a new third party appraisal | 24 months | ||
Impaired financing receivable, average recorded investment | $ | $ 6,394,612 | $ 11,026,748 | $ 10,793,223 |
TDRs included in impaired loans | $ | $ 825,000 | $ 1,369,000 | |
Number of Contracts - Troubled Debt Restructurings | 5 | 7 | |
Number of Contracts - loans that had been previously restructured that were in default | loan | 0 | 1 | 2 |
Number of Contracts - Troubled Debt Restructurings That Subsequently Defaulted During the Period | loan | 0 | ||
Nonperforming Loans, Minimum Consecutive Payments | payments | 6 |
Premises and Equipment, Net (De
Premises and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 47,544,896 | $ 43,284,422 | |
Less: Accumulated Depreciation | (20,325,013) | (19,109,715) | |
Total Premises and Equipment, Net | 27,219,883 | 24,174,707 | |
Depreciation Expense | 1,589,671 | 1,500,000 | $ 1,500,000 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 7,708,424 | 6,693,927 | |
Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 25,336,734 | 23,319,946 | |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 12,748,562 | 11,878,563 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,751,176 | $ 1,391,986 |
Premises and Equipment, Net (Fu
Premises and Equipment, Net (Future minimum payments under non-cancelable operating leases) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)lease_agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Total rental expense | $ 460,000 | $ 454,000 | $ 409,000 |
Number of operating lease agreements | lease_agreement | 5 | ||
Lease One [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Monthly rent expense | $ 7,350 | ||
Operating lease renewal option | 30 years | ||
Lease Two [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Monthly rent expense | $ 900 | ||
Operating lease renewal option | 10 years | ||
Lease Three [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Monthly rent expense | $ 9,950 | ||
Operating lease renewal option | 45 years | ||
Lease Four [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Monthly rent expense | $ 10,600 | ||
Operating lease renewal option | 20 years | ||
Lease Five [Member] [Domain] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Monthly rent expense | $ 7,900 | ||
Operating lease renewal option | 15 years |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Changes in intangible assets and goodwill) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Goodwill | $ 1,199,754 | $ 1,199,754 |
FHLB Stock (Details)
FHLB Stock (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (FHLB) Stock, at Cost | $ 2,536,500 | $ 2,204,000 |
Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank Stock, Membership Component, Percent of Total Assets | 0.09% | 0.09% |
Federal Home Loan Bank Stock, Transaction Component, % of Outstanding Advances | 4.30% | |
Federal Home Loan Bank (FHLB) Stock, at Cost | $ 2,200,000 |
Repossessed Assets Acquired I_3
Repossessed Assets Acquired In Settlement Of Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate and Other Assets Repossessed [Roll Forward] | |||
Balance, beginning of year | $ 722,442 | $ 1,115,671 | $ 2,721,214 |
Additions | 832,800 | 435,550 | 580,748 |
Sales | (855,502) | (772,779) | (2,028,170) |
Write-downs | (22,000) | (56,000) | (158,121) |
Balance, end of year | $ 677,740 | $ 722,442 | $ 1,115,671 |
Deposits (Deposits outstanding
Deposits (Deposits outstanding by type) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits, by Type [Abstract] | ||
Checking Accounts | $ 260,135,924 | $ 219,515,207 |
Money Market Accounts | 230,693,518 | 261,136,008 |
Savings Accounts | 51,124,806 | 48,391,799 |
Total | 541,954,248 | 529,043,014 |
Certificate Accounts | 229,453,234 | 238,453,693 |
Total Deposits | $ 771,407,482 | $ 767,496,707 |
Weighted Average Rate Domestic Deposit Liabilities [Abstract] | ||
Checking Accounts, Weighted Rate | 0.11% | 0.09% |
Money Market Accounts, Weighted Rate | 0.72% | 0.65% |
Statement Savings Accounts, Weighted Rate | 0.16% | 0.14% |
Total, Weighted Rate | 0.36% | 0.31% |
Certificate Accounts, Weighted Rate | 1.71% | 1.37% |
Total Deposit, Weighted Rate | 0.76% | 0.64% |
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing Domestic Deposit, Brokered | $ 34,600,000 | $ 33,100,000 |
Weighted Average Rate Domestic Deposit, Brokered | 1.87% | 1.86% |
Interest Bearing Domestic Deposit Maturities, Brokered, Next Twelve Months | $ 2,000,000 | |
Time Deposits, $100,000 or More | 144,200,000 | $ 151,500,000 |
Overdrafts reclassified to loans | $ 141,000 | |
Minimum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Checking | 0.00% | 0.00% |
Interest Rate Domestic Deposit, Money Market | 0.00% | 0.10% |
Interest Rate Domestic Deposit, Savings | 0.00% | 0.00% |
Interest Rate Domestic Deposit, Excluding Time Deposits | 0.00% | 0.00% |
Interest Rate Domestic Deposit, Time Deposits | 0.05% | 0.04% |
Interest Rate Domestic Deposit | 0.00% | 0.00% |
Maximum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Checking | 0.20% | 0.20% |
Interest Rate Domestic Deposit, Money Market | 0.50% | 0.17% |
Interest Rate Domestic Deposit, Savings | 0.10% | 0.10% |
Interest Rate Domestic Deposit, Excluding Time Deposits | 0.50% | 0.20% |
Interest Rate Domestic Deposit, Time Deposits | 2.00% | 2.52% |
Interest Rate Domestic Deposit | 2.00% | 2.52% |
1.00 – 1.99% | ||
Deposits, by Type [Abstract] | ||
Certificate Accounts | $ 122,164,536 | $ 120,011,938 |
1.00 – 1.99% | Minimum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Time Deposits | 0.00% | |
1.00 – 1.99% | Maximum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Time Deposits | 0.99% | |
2.00 – 2.99% | ||
Deposits, by Type [Abstract] | ||
Certificate Accounts | $ 78,689,591 | 47,586,859 |
2.00 – 2.99% | Minimum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Time Deposits | 2.00% | |
2.00 – 2.99% | Maximum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Time Deposits | 2.99% | |
3.00 – 3.99% | Minimum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Time Deposits | 3.00% | |
3.00 – 3.99% | Maximum | ||
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest Rate Domestic Deposit, Time Deposits | 3.99% | |
0.00% - 0.99% [Member] | ||
Deposits, by Type [Abstract] | ||
Certificate Accounts | $ 28,599,107 | |
Interest Rate range 4 [Member] | ||
Deposits, by Type [Abstract] | ||
Certificate Accounts | $ 70,854,896 |
Deposits (Amounts and scheduled
Deposits (Amounts and scheduled maturities of all certificates of deposit) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Time deposits, $250,000 or more | $ 77,500,000 | $ 89,200,000 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Within 1 Year | 149,481,000 | 160,771,824 |
After 1 Year, Within 2 Years | 42,689,147 | 43,330,060 |
After 2 Years, Within 3 Years | 18,737,910 | 23,990,251 |
After 3 Years, Within 4 Years | 3,272,862 | 6,358,577 |
After 4 Years, Within 5 Years | 15,272,315 | 3,488,598 |
Time Deposit Maturities, after Year Five | 0 | 514,383 |
Time Deposits | $ 229,453,234 | $ 238,453,693 |
Advances From Federal Home Lo_3
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings (Advances from the FHLB summarized by year of maturity and weighted average interest rate) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Due in Next Twelve Months | $ 13,138,000 | |
Due in Year Three | 25,000,000 | |
Advances From FHLB | $ 38,138,000 | $ 34,030,000 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
Weighted Rate of Amounts Due within One Year of Balance Sheet Date | 1.88% | |
Weighted Rate, Two to Three Years from Balance Sheet Date | 1.97% | |
Federal Home Loan Bank, Advances, Weighted Rate | 1.94% | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | ||
Federal Home Loan Bank, Advances, Collateral Pledged, Amortized Cost | $ 100,500,000 | 79,100,000 |
Federal Home Loan Bank, Advances, Collateral Pledged, Fair Value | $ 96,700,000 | $ 71,400,000 |
Advances From Federal Home Lo_4
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings (Callable FHLB advances) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Federal Home Loan Bank Advances [Line Items] | ||
Advances From FHLB | $ 38,138,000 | $ 34,030,000 |
Amount of Additional Borrowing Capacity | $ 259,200,000 | $ 236,600,000 |
Advances From Federal Home Lo_5
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings (Other Borrowings) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Other Borrowings | $ 11,579,819 | $ 10,698,429 |
Financial Instruments, Owned and Pledged as Collateral, at Amortized Cost | 20,400,000 | 16,200,000 |
Financial Instruments, Owned and Pledged as Collateral, at Fair Value | $ 20,500,000 | 16,500,000 |
Minimum | ||
Short-term Debt [Line Items] | ||
Repurchase agreements, maturity term | 1 day | |
Maximum | ||
Short-term Debt [Line Items] | ||
Repurchase agreements, maturity term | 3 days | |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.50% | |
Short-term Debt, Maximum Month-end Outstanding Amount | $ 15,800,000 | $ 14,300,000 |
Advances From Federal Home Lo_6
Advances From Federal Home Loan Bank (FHLB) And Other Borrowings Federal Home Loan Bank Advance Prepayments (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Disclosure [Abstract] | |
Payments of FHLBank Borrowings, Financing Activities | $ 0 |
Junior Subordinated Debentures
Junior Subordinated Debentures (Details) - Junior Subordinated Debt [Member] - Capital Securities [Member] $ in Millions | Sep. 21, 2006USD ($) | Dec. 31, 2019QuarterlyPeriods | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Subordinated Long-term Debt | $ | $ 5.2 | ||
Annual Distribution Rate | 4.49% | ||
Floating basis spread on variable rate | 1.70% | 1.70% | |
Debt Instrument, Rights to Defer Interest Payments, Consecutive Quarterly Periods | QuarterlyPeriods | 20 |
Senior Convertible Debentures (
Senior Convertible Debentures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 01, 2009 | |
Debt Instrument [Line Items] | |||
Senior Convertible Debentures | $ 6,044,000 | $ 6,064,000 | |
Senior Convertible Debt [Member] | Senior Convertible Debentures issued December 1, 2009 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Convertible Debentures | $ 6,100,000 | ||
Interest rate per year | 8.00% | ||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Income Taxes (Income tax expens
Income Taxes (Income tax expense) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Federal | $ 1,437,595 | $ 1,454,049 | $ 1,500,337 | ||||||||
State | 145,412 | 202,292 | 209,396 | ||||||||
Total Current Tax Expense | 1,583,007 | 1,656,341 | 1,709,733 | ||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Federal | 105,960 | (79,034) | 736,390 | ||||||||
State | (9,417) | (7,781) | (10,663) | ||||||||
Total Deferred Tax Expense (Benefit) | 96,543 | (86,815) | 725,727 | ||||||||
Total Income Tax Expense | $ 199,000 | $ 475,000 | $ 486,000 | $ 520,000 | $ 271,000 | $ 471,000 | $ 427,000 | $ 400,000 | $ 1,679,550 | $ 1,569,526 | 1,829,267 |
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Asset, Income Tax Expense | $ 2,435,460 |
Income Taxes (Income tax reconc
Income Taxes (Income tax reconciliation) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax at Statutory Income Tax Rate | $ 1,989,548 | $ 1,843,117 | $ 2,840,292 | ||||||||
State Tax and Other | 100,820 | 157,417 | 44,764 | ||||||||
Tax Exempt Interest | (291,768) | (338,497) | (730,477) | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Life Insurance, Amount | (142,508) | (113,400) | (394,445) | ||||||||
Valuation Allowance | 23,458 | 20,889 | 69,133 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | 0 | 606,193 | ||||||||
Total Income Tax Expense | $ 199,000 | $ 475,000 | $ 486,000 | $ 520,000 | $ 271,000 | $ 471,000 | $ 427,000 | $ 400,000 | $ 1,679,550 | $ 1,569,526 | 1,829,267 |
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Asset, Income Tax Expense | $ 2,435,460 |
Income Taxes (Deferred tax asse
Income Taxes (Deferred tax assets and deferred tax liabilities) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets: | ||
Deferred Compensation | $ 587,322 | $ 498,764 |
Provision for Loan Losses | 2,000,131 | 1,978,481 |
Other Real Estate Owned | 0 | 18,283 |
Net Fees Deferred for Financial Reporting | 76,262 | 73,892 |
Net Operating Losses | 356,759 | 333,301 |
Other | 126,492 | 240,724 |
Total Gross Deferred Tax Assets | 3,146,966 | 3,143,445 |
Less: Valuation Allowance | (356,759) | (333,301) |
Net Deferred Tax Assets | 2,790,207 | 2,810,144 |
Deferred Tax Liabilities: | ||
FHLB Stock Basis Over Tax Basis | 72,208 | 71,717 |
Depreciation | 585,520 | 507,601 |
Prepaid Expenses | 35,033 | 36,837 |
Unrealized Gain on Securities Available for Sale | 1,473,077 | 10,487 |
Total Gross Deferred Tax Liability | 2,165,838 | 626,642 |
Net Deferred Tax Asset | 624,369 | $ 2,183,502 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 23,458 | |
Bad Debt Reserve for Tax Purposes of Qualified Lender | $ 2,100,000 |
Income Taxes (Operating Loss Ca
Income Taxes (Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | $ 9 | $ 8.4 |
Regulatory Matters (Regulatory
Regulatory Matters (Regulatory capital amounts and ratios) (Details) - Security Federal Bank [Member] | Dec. 31, 2018 |
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets) | |
For Capital Adequacy, Ratio | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% |
Total Risk-Based Capital (To Risk Weighted Assets) | |
For Capital Adequacy, Ratio | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% |
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets) | |
For Capital Adequacy, Ratio | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% |
Employee Benefit Plans (Retirem
Employee Benefit Plans (Retirement Benefits) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Defined contribution plan, requisite service period | 6 months | ||
Defined contribution plan, employer contributions | $ 273,000 | $ 263,000 | $ 232,000 |
Supplemental retirement plan, expense | $ 496,000 | 396,000 | $ 318,000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum Days Earned For Bonus | 7 days 12 hours | ||
Minimum Days Earned for Bonus | 2 days 12 hours | ||
Accrued Bonuses | $ 100,050 | $ 240,000 | |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Stock Purchase Plan, purchase discount of the market value | 15.00% | ||
Employee Stock Purchase Plan, maximum annual employee purchase amount | $ 25,000 | ||
Employee Stock Purchase Plan, maximum annual employee purchase amount as a percent of annual salary | 5.00% |
Employee Benefit Plans (Activit
Employee Benefit Plans (Activity under the incentive and non-qualified stock option plans) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Balance, Beginning of Period, Shares | 4,500 | 21,500 |
Options Exercised, Shares | 450 | 7,500 |
Options Forfeited, Shares | 4,050 | 9,500 |
Balance, End of Period, Shares | 0 | 4,500 |
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 | $ 23.57 |
Options Exercised, Weighted Avg. Exercise Price | 22.91 | 23.49 |
Options Forfeited, Weighted Avg. Exercise Price | 22.91 | 23.95 |
Balance, End of Period, Weighted Avg. Exercise Price | $ 0 | $ 22.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options Exercisable, Shares | 0 | 4,500 |
Options Exercisable, Weighted Avg. Exercise Price | $ 0 | $ 22.91 |
Weighted-Average Remaining Life of Exercisable Options | 5 months | |
Options Available for Grant | 0 | 50,000 |
Employee Benefit Plans (Stock O
Employee Benefit Plans (Stock Option Plans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Mar. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vested during period, shares | 0 | 3,300 | |
Options vested during period, shares, weighted average exercise price | $ 23.33 | ||
Options outstanding and exercisable, instrinsic value | $ 0 | ||
Compensation expense related to stock options | 0 | ||
Unrecognized compensation cost related to non-vested stock options | $ 0 | ||
2008 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for the issuance | 50,000 | ||
2008 Equity Incentive Plan [Member] | Stock Options and SARS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for the issuance | 50,000 | ||
2008 Equity Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for the issuance | 50,000 |
Stock Warrants (Details)
Stock Warrants (Details) - USD ($) | Jul. 31, 2013 | Dec. 31, 2008 |
Class of Warrant or Right [Line Items] | ||
Payments for Repurchase of Warrants | $ 50,000 | |
Adjustments to Additional Paid in Capital, Warrant Repurchased | $ 350,000 | |
US Department of Treasury Capital Purchase Program [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 137,966 |
Bank Owned Life Insurance (Deta
Bank Owned Life Insurance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, All Other Investments [Abstract] | |||
Payment to Acquire Life Insurance Policy, Investing Activities | $ 0 | $ 1,900,000 | $ 2,000,000 |
Bank Owned Life Insurance (BOLI) | 21,501,647 | 21,237,893 | |
Life Insurance, Corporate or Bank Owned, Change in Value | 540,000 | 540,000 | 506,000 |
BOLI death benefits | $ 138,609 | $ 0 | $ 654,133 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments, Period of Time to Provide Funding | 45 days | |
Loans and Leases Receivable, Commitments to Purchase or Sell | $ 4,000,000 | $ 1,800,000 |
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unused Commitments to Extend Credit | 108,000,000 | 83,700,000 |
Commitments for Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unused Commitments to Extend Credit | 1,500,000 | 1,600,000 |
Unused Credit Card Loan Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unused Commitments to Extend Credit | 6,200,000 | 5,571,000 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unused Commitments to Extend Credit | $ 300,000 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Management [Member] | |||
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, Beginning of Period | $ 32,961 | $ 94,292 | $ 141,972 |
New Loans | 417,590 | 674 | 1,078 |
Less Loan Payments | (19,035) | (62,005) | (48,758) |
Balance, End of Period | 431,516 | 32,961 | $ 94,292 |
Related Party Deposit Liabilities | $ 15,900,000 | $ 14,900,000 | |
All Employees, Officers and Directors [Member] | |||
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Loans and Leases Receivable, Related Party, Aggregate as Percent of Equity | 4.50% | 3.90% | |
Director and Officer [Member] | |||
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 88,000 |
Stock Issuance and Exchange (De
Stock Issuance and Exchange (Details) - USD ($) | Jul. 31, 2013 | Sep. 29, 2010 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 12, 2015 |
Class of Stock [Line Items] | ||||||
Shares Issued, Price Per Share | $ 17.22 | |||||
Stock Issuance, Value | $ 8,000,000 | |||||
Common Stock Par Value Per Share | $ 0.01 | $ 0.01 | ||||
Payments for Repurchase of Warrants | $ 50,000 | |||||
Adjustments to Additional Paid in Capital, Warrant Repurchased | $ 350,000 | |||||
Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | 18,000,000 | |||||
Series B Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Liquidation Preference, Value | 18,000,000 | |||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 4,000,000 | |||||
Stock Issuance, Value | $ 4,000,000 | |||||
Management [Member] | Common Stock | Private Placement [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 400,000 | |||||
Shares Issued, Price Per Share | $ 10 | |||||
Proceeds from Issuance of Private Placement | $ 4,000,000 | |||||
Prior to February 15, 2014 [Member] | Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||||
After February 15, 2014 [Member] | Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 9.00% | |||||
During First Eight Years from Date of Issuance [Member] | Series B Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 2.00% | |||||
After First Eight Years from Date of Issuance [Member] | Series B Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Stock, Dividend Rate, Percentage | 9.00% |
Unvested Restricted Stock (Deta
Unvested Restricted Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Feb. 12, 2015 | |
Earnings Per Share [Abstract] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 1,473 | |
Shares Issued, Price Per Share | $ 17.22 |
Security Federal Corporation _3
Security Federal Corporation Condensed Financial Statements (Parent Company Only) (Condensed Balance Sheet Data) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS: | ||||
Cash | $ 12,536,311 | $ 12,705,910 | $ 10,319,624 | $ 9,374,549 |
Investment Securities, Available For Sale | 414,644,840 | 386,100,837 | ||
Total Assets | 963,227,541 | 912,614,259 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||
Other Notes Payable, Noncurrent | 0 | 2,362,500 | ||
Junior Subordinated Debentures | 5,155,000 | 5,155,000 | ||
Senior Convertible Debentures | 6,044,000 | 6,064,000 | ||
Stockholders' Equity Attributable to Parent | 91,758,005 | 80,518,433 | ||
Total Liabilities and Shareholders' Equity | 963,227,541 | 912,614,259 | ||
Parent Company [Member] | ||||
ASSETS: | ||||
Cash | 25,685,744 | 3,619,418 | $ 5,098,959 | $ 4,631,554 |
Investment in Security Federal Statutory Trust | 155,000 | 155,000 | ||
Investment In Security Federal Bank | 106,947,285 | 90,359,718 | ||
Accounts Receivable And Other Assets | 386,889 | 14,492 | ||
Total Assets | 133,174,918 | 94,148,628 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||
Accounts Payable And Other Liabilities | 219,213 | 49,995 | ||
Stockholders' Equity Attributable to Parent | 91,756,705 | 80,517,133 | ||
Total Liabilities and Shareholders' Equity | $ 133,174,918 | $ 94,148,628 |
Security Federal Corporation _4
Security Federal Corporation Condensed Financial Statements (Parent Company Only) (Condensed Statements of Income Data) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income: | |||||||||||
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Subsidiaries and Equity Method Investees | $ 6,400,000 | $ 6,400,000 | $ 6,400,000 | ||||||||
Interest Income | $ 9,134,000 | $ 9,641,000 | $ 9,128,000 | $ 9,031,000 | $ 8,763,000 | $ 8,507,000 | $ 8,029,000 | $ 7,774,000 | 36,934,111 | 33,072,075 | 29,786,905 |
Miscellaneous Income | 2,000,000 | 2,408,000 | 2,492,000 | 2,196,000 | 1,811,000 | 2,070,000 | 1,744,000 | 2,044,000 | 9,097,143 | 7,669,146 | 7,344,283 |
Expenses: | |||||||||||
Interest Expense | 2,237,000 | 2,291,000 | 2,009,000 | 1,774,000 | 1,565,000 | 1,430,000 | 1,286,000 | 1,169,000 | 8,311,500 | 5,449,419 | 4,175,301 |
Other Expenses | 5,262,101 | 5,086,386 | 4,897,871 | ||||||||
Income Before Income Taxes | 1,801,000 | 2,694,000 | 2,370,000 | 2,609,000 | 1,821,000 | 2,579,000 | 2,247,000 | 2,130,000 | 9,474,037 | 8,776,747 | 8,353,800 |
Income Tax Benefit | 199,000 | 475,000 | 486,000 | 520,000 | 271,000 | 471,000 | 427,000 | 400,000 | 1,679,550 | 1,569,526 | 1,829,267 |
Net Income | $ 1,602,000 | $ 2,219,000 | $ 1,884,000 | $ 2,089,000 | $ 1,550,000 | $ 2,108,000 | $ 1,820,000 | $ 1,730,000 | 7,794,487 | 7,207,221 | 5,918,340 |
Net Income Available To Common Shareholders | 7,794,487 | 7,207,221 | |||||||||
Parent Company [Member] | |||||||||||
Income: | |||||||||||
Equity in Earnings of Security Federal Bank | 2,092,130 | 1,523,443 | 136,682 | ||||||||
Interest Income | 0 | 0 | 118,725 | ||||||||
Miscellaneous Income | 62,390 | 21,235 | 15,807 | ||||||||
Total Income | 8,554,520 | 7,944,678 | 6,671,214 | ||||||||
Expenses: | |||||||||||
Interest Expense | 906,152 | 916,832 | 1,057,065 | ||||||||
Other Expenses | 39,331 | 11,099 | 14,349 | ||||||||
Total Expenses | 945,483 | 927,931 | 1,071,414 | ||||||||
Income Before Income Taxes | 7,609,037 | 7,016,747 | 5,599,800 | ||||||||
Income Tax Benefit | (185,450) | (190,474) | (318,540) | ||||||||
Net Income | $ 7,794,487 | $ 7,207,221 | $ 5,918,340 |
Security Federal Corporation _5
Security Federal Corporation Condensed Financial Statements (Parent Company Only) (Condensed Statements of Cash Flow Data) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||||||||||
Net Income | $ 1,602,000 | $ 2,219,000 | $ 1,884,000 | $ 2,089,000 | $ 1,550,000 | $ 2,108,000 | $ 1,820,000 | $ 1,730,000 | $ 7,794,487 | $ 7,207,221 | $ 5,918,340 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | |||||||||||
Stock Compensation Expense | 0 | 25,358 | |||||||||
Net Cash Provided By Operating Activities | 12,266,241 | 14,500,346 | 13,567,409 | ||||||||
Investing Activities: | |||||||||||
Increase in Loans Receivable | (22,007,081) | (42,300,871) | (33,002,340) | ||||||||
Net Cash Provided By Investing Activities | (47,903,154) | (52,066,796) | (60,475,134) | ||||||||
Financing Activities: | |||||||||||
Repayments of Convertible Debt | 0 | 0 | (20,000) | ||||||||
Proceeds from Stock Options Exercised | 0 | 10,310 | 176,175 | ||||||||
Dividends Paid to Shareholders-Common Stock | (1,123,219) | (1,063,626) | (1,060,729) | ||||||||
Net Cash Provided (Used) By Financing Activities | 35,467,314 | 39,952,736 | 47,852,800 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (169,599) | 2,386,286 | 945,075 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 12,705,910 | 10,319,624 | 12,705,910 | 10,319,624 | 9,374,549 | ||||||
Cash And Cash Equivalents At End Of Year | 12,536,311 | 12,705,910 | 12,536,311 | 12,705,910 | 10,319,624 | ||||||
Parent Company [Member] | |||||||||||
Operating Activities: | |||||||||||
Net Income | 7,794,487 | 7,207,221 | 5,918,340 | ||||||||
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | |||||||||||
Equity in Earnings of Security Federal Bank | (2,092,130) | (1,523,443) | (136,682) | ||||||||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | 0 | ||||||||||
(Increase) Decrease In Accounts Receivable And Other Assets | (372,398) | 13,666 | 3,117 | ||||||||
Increase (Decrease) in Accounts Payable | 169,218 | 1,635 | (33,612) | ||||||||
Net Cash Provided By Operating Activities | 5,499,177 | 5,699,079 | 5,776,521 | ||||||||
Proceeds from Sale of Other Investments | 0 | ||||||||||
Investing Activities: | |||||||||||
Increase in Loans Receivable | 0 | 95,438 | |||||||||
Net Cash Provided By Investing Activities | (10,000,000) | 0 | 95,438 | ||||||||
Financing Activities: | |||||||||||
Repayments of Notes Payable | (2,362,500) | (6,137,500) | |||||||||
Repayments of Convertible Debt | 0 | ||||||||||
Proceeds from Stock Options Exercised | 0 | ||||||||||
Proceeds from Notes Payable | 30,000,000 | 0 | |||||||||
Dividends Paid to Shareholders-Common Stock | (1,123,219) | (1,063,626) | (1,060,729) | ||||||||
Net Cash Provided (Used) By Financing Activities | 26,567,149 | (7,178,620) | (5,404,554) | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 22,066,326 | (1,479,541) | 467,405 | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 3,619,418 | $ 5,098,959 | 3,619,418 | 5,098,959 | 4,631,554 | ||||||
Cash And Cash Equivalents At End Of Year | $ 25,685,744 | $ 3,619,418 | $ 25,685,744 | $ 3,619,418 | $ 5,098,959 |
Carrying Amounts and Fair Val_3
Carrying Amounts and Fair Value of Financial Instruments (Fair value measurements, recurring basis) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | $ 414,644,840 | $ 386,100,837 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 414,644,840 | 386,100,837 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Student loan pools [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Student loan pools [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 40,231,830 | 12,885,501 |
Student loan pools [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Taxable Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Taxable Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 14,840,410 | 1,977,885 |
Taxable Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 200,438,007 | 184,460,551 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Nontaxable Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
Nontaxable Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 47,241,494 | 61,330,369 |
Nontaxable Municipal Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
SBA Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 0 | |
SBA Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | 111,893,099 | $ 125,446,531 |
SBA Bonds [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Securities, Available For Sale | $ 0 |
Carrying Amounts and Fair Val_4
Carrying Amounts and Fair Value of Financial Instruments (Fair value measurements, nonrecurring basis) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment Securities, Available For Sale | $ 414,644,840 | $ 386,100,837 | |||
Impaired financing receivable, related allowance | 0 | 738,662 | $ 0 | ||
Other Real Estate Owned (OREO) | 677,740 | 722,442 | $ 1,115,671 | $ 2,721,214 | |
LIABILITIES, FAIR VALUE, NONRECURRING | 0 | ||||
Fair Value, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 7,891,092 | 11,117,997 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 0 | 0 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 3,990,606 | 1,781,985 | |||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 3,900,486 | 9,336,012 | |||
Mortgage Loans Held For Sale | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 3,990,606 | 1,781,985 | |||
Mortgage Loans Held For Sale | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 0 | 0 | |||
Mortgage Loans Held For Sale | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 3,990,606 | ||||
Mortgage Loans Held For Sale | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 0 | 0 | |||
Collateral Dependent Impaired Loans (1) | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired financing receivable, related allowance | 0 | 738,662 | |||
ASSETS FAIR VALUE, NONRECURRING | [1] | 3,222,746 | 8,613,570 | ||
Collateral Dependent Impaired Loans (1) | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | [1] | 0 | 0 | ||
Collateral Dependent Impaired Loans (1) | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | [1] | 0 | 0 | ||
Collateral Dependent Impaired Loans (1) | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | [1] | 3,222,746 | 8,613,570 | ||
Foreclosed Assets | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 677,740 | 722,442 | |||
Foreclosed Assets | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | 0 | 0 | |||
Foreclosed Assets | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
ASSETS FAIR VALUE, NONRECURRING | $ 0 | $ 0 | |||
[1] | (22) Carrying Amounts and Fair Value of Financial InstrumentsGAAP requires 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. 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 1Valuation 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 2Valuation 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 3Valuation 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 December 31, 2019, the Company’s investment portfolio was comprised of student loan pools, government and agency bonds, mortgage-backed securities issued by government agencies or GSEs, private label CMO mortgage-backed securities and municipal securities. 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 such, these securities are classified as Level 2.Mortgage 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 institutional 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 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.(22) Carrying Amounts and Fair Value of Financial Instruments, ContinuedImpaired 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 individually impaired, management measures impairment.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 December 31, 2019, most of the total impaired loans were 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. As of December 31, 2019 and 2018, the recorded investment in impaired loans was $3.2 million and $9.4 million, respectively. The average recorded investment in impaired loans was $6.4 million and $11.0 million for the years ended December 31, 2019 and 2018, respectively. Foreclosed AssetsForeclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, they are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral less estimated selling costs. The Company records all foreclosed assets as nonrecurring level 3.The tables below present the balances of assets measured at fair value on a recurring basis at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3Student Loan Pools$— $40,231,830 $— $— $12,885,501 $—SBA Bonds— 111,893,099 — — 125,446,531 —Tax Exempt Municipal Bonds— 47,241,494 — — 61,330,369 —Taxable Municipal Bonds— 14,840,410 — — 1,977,885 —Mortgage-Backed Securities— 200,438,007 — — 184,460,551 —Total$— $414,644,840 $— $— $386,100,837 $—There were no liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018. (22) Carrying Amounts and Fair Value of Financial Instruments, ContinuedThe Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. The table below presents assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018, aggregated by the level in the fair value hierarchy within which those measurements fall. December 31, 2019Assets Level 1 Level 2 Level 3 TotalMortgage Loans Held For Sale$— $3,990,606 $— $3,990,606Collateral Dependent Impaired Loans (1)— — 3,222,746 3,222,746Foreclosed Assets— — 677,740 677,740Total$— $3,990,606 $3,900,486 $7,891,092 December 31, 2018Assets Level 1 Level 2 Level 3 TotalMortgage Loans Held For Sale$— $1,781,985 $— $1,781,985Collateral Dependent Impaired Loans (1)— — 8,613,570 8,613,570Foreclosed Assets— — 722,442 722,442Total$— $1,781,985 $9,336,012 $11,117,997(1) REPORTED NET OF SPECIFIC RESERVES OF $0 AND $738,662 AT DECEMBER 31, 2019 AND 2018, RESPECTIVELY.There were no liabilities measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis, the significant unobservable inputs used in the fair value measurements were as follows as of December 31, 2019 and 2018: Valuation Significant 2019 2018Level 3 Assets Technique Unobservable Inputs Range RangeCollateral Dependent Impaired Loans Appraised Value Discount Rates/ Discounts to Appraised Values 8% - 92% 7% - 97%Foreclosed Assets Appraised Value/Comparable Sales Discount Rates/ Discounts to Appraised Values 18% - 42% 16% - 100%For assets and liabilities not presented on the balance sheet at fair value, the following methods are used to determine 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 deposits 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—The fair value of loans are estimated using an exit price notion. The exit price notion uses a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument and also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. The 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. 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. (22) Carrying Amounts and Fair Value of Financial Instruments, ContinuedFHLB Stock—The fair value approximates the carrying 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 using discounted cash flows with current market rates for borrowings 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.Subordinated 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.The following tables summarize the carrying value and estimated fair value of the Company’s financial instruments as of December 31, 2019 and 2018 presented in accordance with the applicable accounting guidance. December 31, 2019 Carrying Fair Value(In Thousands)Amount Total Level 1 Level 2 Level 3Financial Assets: Cash and Cash Equivalents$12,536 $12,536 $12,536 $— $—Certificates of Deposits with Other Banks950 950 — 950 —Investment and Mortgage-Backed Securities433,892 434,451 — 434,451 —Loans Receivable, Net452,859 450,796 — — 450,796FHLB Stock2,537 2,537 2,537 — — Financial Liabilities: Deposits: Checking, Savings and Money Market Accounts$541,954 $541,954 $541,954 $— $— Certificate Accounts229,453 229,363 — 229,363 —Advances From FHLB38,138 38,233 — 38,233 —Other Borrowed Money11,580 11,580 11,580 — —Subordinated Debentures30,000 30,000 — 30,000 —Junior Subordinated Debentures5,155 5,155 — 5,155 —Senior Convertible Debentures6,044 6,044 — 6,044 — |
Carrying Amounts and Fair Val_5
Carrying Amounts and Fair Value of Financial Instruments (Significant unobservable inputs used in the fair value measurements) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment Securities, Available For Sale | $ 414,644,840 | $ 386,100,837 |
Impaired Loans | Fair Value, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurements, Valuation Processes, Description | Appraised Value | |
Significant Unobservable Inputs | Discount Rates/ Discounts to Appraised Values | |
Foreclosed Assets | Fair Value, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Measurements, Valuation Processes, Description | Appraised Value/Comparable Sales | |
Significant Unobservable Inputs | Discount Rates/ Discounts to Appraised Values | |
Minimum | Impaired Loans | Fair Value, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Inputs, Percentage Range | 7.00% | 0.00% |
Minimum | Foreclosed Assets | Fair Value, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Inputs, Percentage Range | 16.00% | 13.00% |
Maximum | Impaired Loans | Fair Value, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Inputs, Percentage Range | 97.00% | 98.00% |
Maximum | Foreclosed Assets | Fair Value, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Inputs, Percentage Range | 100.00% | 100.00% |
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 ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||||
Cash and Cash Equivalents, at Carrying Value | $ 12,536,311 | $ 12,705,910 | $ 10,319,624 | $ 9,374,549 |
Cash and Cash Equivalents | 12,536,311 | 12,706,000 | ||
Certificates of Deposit with Other Banks | 950,005 | 1,200,010 | ||
Certificates of Deposits with Other Banks | 950,000 | 1,200,000 | ||
Investments | 433,891,775 | 409,738,850 | ||
Investment and Mortgage-Backed Securities | 434,451,000 | 409,350,000 | ||
Financing Receivable, after Allowance for Credit Loss | 452,858,735 | 430,053,517 | ||
Loans Receivable, Net | 450,796,000 | 421,379,000 | ||
Federal Home Loan Bank (FHLB) Stock, at Cost | 2,536,500 | 2,204,000 | ||
FHLB Stock | 2,537,000 | 2,204,000 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 541,954,000 | 529,043,000 | ||
Time Deposits | 229,453,234 | 238,453,693 | ||
Certificate Accounts | 229,363,000 | 236,103,000 | ||
Advances from Federal Home Loan Banks | 38,138,000 | 34,030,000 | ||
Advances From FHLB | 38,233,000 | 33,771,000 | ||
Other Borrowed Money | 11,580,000 | 10,698,000 | ||
Subordinated Debt Obligations, Fair Value Disclosure | 5,155,000 | 5,155,000 | ||
Senior Convertible Debentures | 6,044,000 | 6,064,000 | ||
Fair Value, Inputs, Level 1 | ||||
Financial Assets: | ||||
Cash and Cash Equivalents | 12,536,311 | 12,706,000 | ||
Certificates of Deposits with Other Banks | 0 | 0 | ||
Investment and Mortgage-Backed Securities | 0 | 0 | ||
Loans Receivable, Net | 0 | 0 | ||
FHLB Stock | 2,537,000 | 2,204,000 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 541,954,000 | 529,043,000 | ||
Certificate Accounts | 0 | 0 | ||
Advances From FHLB | 0 | 0 | ||
Other Borrowed Money | 11,580,000 | 10,698,000 | ||
Subordinated Debt Obligations, Fair Value Disclosure | 0 | 0 | ||
Senior Convertible Debentures | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial Assets: | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Certificates of Deposits with Other Banks | 950,000 | 1,200,000 | ||
Investment and Mortgage-Backed Securities | 434,451,000 | 409,350,000 | ||
Loans Receivable, Net | 0 | 0 | ||
FHLB Stock | 0 | 0 | ||
Financial Liabilities: | ||||
Checking, Savings, And Money Market Accounts | 0 | 0 | ||
Certificate Accounts | 229,363,000 | 236,103,000 | ||
Advances From FHLB | 38,233,000 | 33,771,000 | ||
Other Borrowed Money | 0 | 0 | ||
Subordinated Debt Obligations, Fair Value Disclosure | 5,155,000 | 5,155,000 | ||
Senior Convertible Debentures | 6,044,000 | 6,064,000 | ||
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 | 450,796,000 | 421,379,000 | ||
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 | ||
Subordinated Debt Obligations, Fair Value Disclosure | 0 | 0 | ||
Senior Convertible Debentures | $ 0 | $ 0 |
Carrying Amounts and Fair Val_7
Carrying Amounts and Fair Value of Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |||
Investor funding period | 30 days | ||
Review period to request a new third party appraisal | 24 months | ||
Impaired financing receivable, recorded investment | $ 3,229,883 | $ 9,364,125 | $ 8,442,306 |
Impaired financing receivable, average recorded investment | 6,394,612 | $ 11,026,748 | $ 10,793,223 |
Liabilities, fair value disclosure, recurring | 0 | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 85,300,000 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 9,134,000 | $ 9,641,000 | $ 9,128,000 | $ 9,031,000 | $ 8,763,000 | $ 8,507,000 | $ 8,029,000 | $ 7,774,000 | $ 36,934,111 | $ 33,072,075 | $ 29,786,905 |
Interest Expense | 2,237,000 | 2,291,000 | 2,009,000 | 1,774,000 | 1,565,000 | 1,430,000 | 1,286,000 | 1,169,000 | 8,311,500 | 5,449,419 | 4,175,301 |
Net Interest Income | 6,897,000 | 7,350,000 | 7,119,000 | 7,257,000 | 7,198,000 | 7,077,000 | 6,743,000 | 6,605,000 | 28,622,611 | 27,622,656 | 25,611,604 |
Provision For Loan Losses | 200,000 | 75,000 | 0 | 100,000 | 775,000 | 150,000 | 0 | 0 | 375,000 | 925,000 | 300,000 |
Net Interest Income After Provision For Loan Losses | 6,697,000 | 7,275,000 | 7,119,000 | 7,157,000 | 6,423,000 | 6,927,000 | 6,743,000 | 6,605,000 | 28,247,611 | 26,697,656 | 25,311,604 |
Non-Interest Income | 2,000,000 | 2,408,000 | 2,492,000 | 2,196,000 | 1,811,000 | 2,070,000 | 1,744,000 | 2,044,000 | 9,097,143 | 7,669,146 | 7,344,283 |
Non-interest Expense | 6,896,000 | 6,989,000 | 7,241,000 | 6,744,000 | 6,413,000 | 6,418,000 | 6,240,000 | 6,519,000 | 27,870,717 | 25,590,055 | 24,302,087 |
Income Before Income Taxes | 1,801,000 | 2,694,000 | 2,370,000 | 2,609,000 | 1,821,000 | 2,579,000 | 2,247,000 | 2,130,000 | 9,474,037 | 8,776,747 | 8,353,800 |
Provision For Income Taxes | 199,000 | 475,000 | 486,000 | 520,000 | 271,000 | 471,000 | 427,000 | 400,000 | 1,679,550 | 1,569,526 | 1,829,267 |
Net Income | $ 1,602,000 | $ 2,219,000 | $ 1,884,000 | $ 2,089,000 | $ 1,550,000 | $ 2,108,000 | $ 1,820,000 | $ 1,730,000 | 7,794,487 | 7,207,221 | $ 5,918,340 |
Net Income Available To Common Shareholders | $ 7,794,487 | $ 7,207,221 | |||||||||
Net Income Per Common Share (Basic) | $ 0.54 | $ 0.75 | $ 0.64 | $ 0.71 | $ 0.52 | $ 0.71 | $ 0.62 | $ 0.59 | $ 2.64 | $ 2.44 | $ 2.01 |
Net Income Per Common Share (Diluted) | $ 0.51 | $ 0.71 | $ 0.61 | $ 0.67 | $ 0.50 | $ 0.68 | $ 0.59 | $ 0.56 | $ 2.50 | $ 2.32 | $ 1.91 |
Weighted Average Shares Outstanding (Basic) | 2,956,600 | 2,956,156 | 2,955,650 | 2,954,515 | 2,953,763 | 2,953,424 | 2,953,412 | 2,953,180 | 2,955,737 | 2,953,446 | 2,945,918 |
Weighted Average Shares Outstanding (Diluted) | 3,258,800 | 3,258,356 | 3,257,850 | 3,256,715 | 3,256,963 | 3,256,624 | 3,257,017 | 3,257,532 | 3,257,937 | 3,256,646 | 3,250,069 |
Subsequent Events Securities So
Subsequent Events Securities Sold Subsequent Event Disclosures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | |||
Gain on Sale of Investment Securities | $ 819,053 | $ 573,266 | $ 494,146 |
Payments of FHLBank Borrowings, Financing Activities | 0 | ||
Gains (Losses) on Sales of Other Real Estate | $ 184,864 | $ 588,720 | $ 359,629 |