Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Schedule of major classifications of loans

Major classifications of loans (net of deferred loan fees of $159,418 as of September 30, 2018 and $152,047 as of December 31, 2017) are as follows:

	September 30, 2018			December 31, 2017
Commercial loans	$	55,372,741		$	51,723,237
Commercial real estate:
Construction		4,997,437			2,317,857
Other		140,978,428			140,186,324
Consumer:
Real estate		68,179,290			70,797,973
Other		5,099,907			5,155,249
		274,627,803			270,180,640
Allowance for loan losses		(4,105,930	)		(3,875,398	)
Loans, net	$	270,521,873		$	266,305,242

Schedule of credit quality by class and internally assigned grades

The following tables illustrate credit quality by class and internally assigned grades as of September 30, 2018 and December 31, 2017. “Pass” includes loans internally graded as excellent, good and satisfactory. 

September 30, 2018
		Commercial		Commercial Real Estate - Construction		Commercial Real Estate - Other		Consumer Real Estate		Consumer Other		Total
	Pass	$	52,477,930	$	4,997,437	$	136,098,726	$	65,689,519	$	4,796,814	$	264,060,426
	Watch		1,047,571		—		2,907,641		1,610,019		212,117		5,777,348
	OAEM		—		—		593,359		—		—		593,359
	Substandard		1,847,240		—		1,378,702		879,752		90,976		4,196,670
	Doubtful		—		—		—		—		—		—
	Loss		—		—		—		—		—		—
	Total	$	55,372,741	$	4,997,437	$	140,978,428	$	68,179,290	$	5,099,907	$	274,627,803

December 31, 2017
		Commercial		Commercial Real Estate - Construction		Commercial Real Estate - Other		Consumer Real Estate		Consumer Other		Total
	Pass	$	47,456,205	$	1,936,335	$	134,401,977	$	68,570,298	$	4,933,696	$	257,298,511
	Watch		2,403,978		381,522		3,605,621		1,934,802		185,746		8,511,669
	OAEM		—		—		610,806		—		—		610,806
	Substandard		1,863,054		—		1,567,920		292,873		35,807		3,759,654
	Doubtful		—		—		—		—		—		—
	Loss		—		—		—		—		—		—
	Total	$	51,723,237	$	2,317,857	$	140,186,324	$	70,797,973	$	5,155,249	$	270,180,640

Schedule of aging analysis of the recorded investment in loans segregated by class

The following tables include an aging analysis of the recorded investment in loans segregated by class: 

	September 30, 2018
		30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment ≥ 90 Days and Accruing
Commercial		$	284,995	$	229,396	$	—	$	514,391	$	54,858,350	$	55,372,741	$	—
Commercial Real Estate - Construction			—		—		—		—		4,997,437		4,997,437		—
Commercial Real Estate - Other			209,806		—		571,292		781,098		140,197,330		140,978,428		—
Consumer Real Estate			—		—		—		—		68,179,290		68,179,290		—
Consumer Other			13,622		—		—		13,622		5,086,285		5,099,907		—
Total		$	508,423	$	229,396	$	571,292	$	1,309,111	$	273,318,692	$	274,627,803	$	—

	December 31, 2017
		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total		Recorded Investment ≥ 90 Days and Accruing
Commercial		$	3,531	$	192,846	$	—	$	196,377	$	51,526,860	$	51,723,237	$	—
Commercial Real Estate - Construction			—		—		—		—		2,317,857		2,317,857		—
Commercial Real Estate - Other			—		—		651,578		651,578		139,534,746		140,186,324		—
Consumer Real Estate			—		—		—		—		70,797,973		70,797,973		—
Consumer Other			10,302		—		34,107		44,409		5,110,840		5,155,249		34,107
Total		$	13,833	$	192,846	$	685,685	$	892,364	$	269,288,276	$	270,180,640	$	34,107

Schedule of non-accrual loans

The following table summarizes the balances of non-accrual loans:

		Loans Receivable on Non-Accrual
		September 30, 2018		December 31, 2017
Commercial	$	27,230	$	41,651
Commercial Real Estate - Construction		—		—
Commercial Real Estate - Other		571,292		790,208
Consumer Real Estate		—		—
Consumer Other		3,405		—
Total	$	601,927	$	831,859

Schedule of change in allowance and an allocation of the allowance by loan categery

The following tables set forth the changes in the allowance for loan losses and an allocation of the allowance for loan losses by class for the three and nine months ended September 30, 2018 and September 30, 2017. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-impaired loans and is based on historical loss experience adjusted for current economic factors.

Three Months Ended September 30, 2018
	Commercial		Commercial Real Estate - Construction		Commercial Real Estate - Other		Consumer Real Estate			Consumer Other			Total
Allowance for Loan Losses:
Beginning Balance	$	1,343,760	$	29,091	$	972,038	$	589,051		$	1,073,524		$	4,007,464
Charge-offs		—		—		—		—			(12,794	)		(12,794	)
Recoveries		11,000		—		—		—			260			11,260
Provisions		146,752		4,404		10,334		(84,365	)		22,875			100,000
Ending Balance	$	1,501,512	$	33,495	$	982,372	$	504,686		$	1,083,865		$	4,105,930

Nine Months Ended September 30, 2018
	Commercial			Commercial Real Estate - Construction		Commercial Real Estate - Other			Consumer Real Estate			Consumer Other			Total
Allowance for Loan Losses:
Beginning Balance	$	1,403,588		$	23,638	$	1,549,755		$	796,918		$	101,499		$	3,875,398
Charge-offs		(31,250	)		—		—			—			(84,637	)		(115,887	)
Recoveries		13,500			—		56,827			45,412			680			116,419
Provisions		115,674			9,857		(624,210	)		(337,644	)		1,066,323			230,000
Ending Balance	$	1,501,512		$	33,495	$	982,372		$	504,686		$	1,083,865		$	4,105,930

Three Months Ended September 30, 2017
	Commercial		Commercial Real Estate - Construction			Commercial Real Estate - Other			Consumer Real Estate			Consumer Other			Total
Allowance for Loan Losses:
Beginning Balance	$	1,628,672	$	52,763		$	1,382,919		$	771,853		$	91,308		$	3,927,515
Charge-offs		—		—			—			(80,787	)		(2,489	)		(83,276	)
Recoveries		—		—			—			21,000			1,720			22,720
Provisions		403,920		(7,235	)		(209,108	)		(150,697	)		(16,880	)		20,000
Ending Balance	$	2,032,592	$	45,528		$	1,173,811		$	561,369		$	73,659		$	3,886,959

Nine Months Ended September 30, 2017
	Commercial		Commercial Real Estate - Construction			Commercial Real Estate - Other			Consumer Real Estate			Consumer Other			Total
Allowance for Loan Losses:
Beginning Balance	$	1,545,188	$	51,469		$	1,374,706		$	726,391		$	153,863		$	3,851,617
Charge-offs		—		—			—			(80,786	)		(4,863	)		(85,649	)
Recoveries		—		—			—			63,000			5,491			68,491
Provisions		487,404		(5,941	)		(200,895	)		(147,236	)		(80,832	)		52,500
Ending Balance	$	2,032,592	$	45,528		$	1,173,811		$	561,369		$	73,659		$	3,886,959

Schedule of allocation of the allowance for loan losses and the gross investment in loans

The following tables present, by class and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans:

September 30, 2018
	Commercial		Commercial Real Estate - Construction		Commercial Real Estate - Other		Consumer Real Estate		Consumer Other		Total
Allowance for Loan Losses
Individually evaluated for impairment	$	918,694	$	—	$	40,614	$	—	$	23,046	$	982,354
Collectively evaluated for impairment		582,818		33,495		941,758		504,686		1,060,819		3,123,576
Total Allowance for Loan Losses	$	1,501,512	$	33,495	$	982,372	$	504,686	$	1,083,865	$	4,105,930
Loans Receivable
Individually evaluated for impairment	$	1,807,958	$	—	$	1,390,661	$	879,753	$	23,046	$	4,101,418
Collectively evaluated for impairment		53,564,783		4,997,437		139,587,767		67,299,537		5,076,861		270,526,385
Total Loans Receivable	$	55,372,741	$	4,997,437	$	140,978,428	$	68,179,290	$	5,099,907	$	274,627,803

December 31, 2017
	Commercial		Commercial Real Estate - Construction		Commercial Real Estate - Other		Consumer Real Estate		Consumer Other		Total
Allowance for Loan Losses
Individually evaluated for impairment	$	832,571	$	—	$	99,523	$	43,042	$	34,107	$	1,009,243
Collectively evaluated for impairment		571,017		23,638		1,450,232		753,876		67,392		2,866,155
Total Allowance for Losses	$	1,403,588	$	23,638	$	1,549,755	$	796,918	$	101,499	$	3,875,398
Loans Receivable
Individually evaluated for impairment	$	1,812,461	$	—	$	1,584,821	$	292,873	$	34,107	$	3,724,262
Collectively evaluated for impairment		49,910,776		2,317,857		138,601,503		70,505,100		5,121,142		266,456,378
Total Loans Receivable	$	51,723,237	$	2,317,857	$	140,186,324	$	70,797,973	$	5,155,249	$	270,180,640

Schedule of loans individually evaluated for impairment and the corresponding allowance for loan losses

As of September 30, 2018 and December 31, 2017, loans individually evaluated for impairment and the corresponding allowance for loan losses are presented in the following table:

	Impaired and Restructured Loans As of
	September 30, 2018						December 31, 2017
		Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
With no related allowance recorded:
Commercial	$	124,983	$	124,983		—	$	152,490	$	152,490	$	—
Commercial Real Estate - Construction		—		—		—		—		—		—
Commercial Real Estate - Other		981,021		981,021		—		1,058,601		1,058,601		—
Consumer Real Estate		879,753		879,753		—		249,754		249,754		—
Consumer Other		—		—		—		—		—		—
Total		1,985,757		1,985,757		—		1,460,845		1,460,845		—
With an allowance recorded:
Commercial		1,682,975		1,682,975		918,694		1,659,971		1,659,971		832,571
Commercial Real Estate - Construction		—		—		—		—		—		—
Commercial Real Estate - Other		409,640		309,839		40,614		626,021		526,220		99,523
Consumer Real Estate		—		—		—		43,119		43,119		43,042
Consumer Other		23,046		23,046		23,046		34,107		34,107		34,107
Total		2,115,661		2,015,860		982,354		2,363,218		2,263,417		1,009,243
Total
Commercial		1,807,958		1,807,958		918,694		1,812,461		1,812,461		832,571
Commercial Real Estate - Construction		—		—		—		—		—		—
Commercial Real Estate - Other		1,390,661		1,290,860		40,614		1,684,622		1,584,821		99,523
Consumer Real Estate		879,753		879,753		—		292,873		292,873		43,042
Consumer Other		23,046		23,046		23,046		34,107		34,107		34,107
Total	$	4,101,418	$	4,001,617	$	982,354	$	3,824,063	$	3,724,262	$	1,009,243

Schedule of average impaired loans and interest income recognized on those impaired loans by class

The following table presents average impaired loans and interest income recognized on those impaired loans, by class, for the periods indicated:

	Three Months Ended September 30,
	2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	128,953	$	2,178	$	165,274	$	2,429
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		984,499		10,378		1,276,906		9,999
Consumer Real Estate		879,753		8,562		451,318		5,972
Consumer Other		—		—		—		—
Total		1,993,205		21,118		1,893,498		18,400
With an allowance recorded:
Commercial		1,702,976		26,195		1,685,930		26,484
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		411,107		2,739		933,243		2,792
Consumer Real Estate		—		—		43,119		462
Consumer Other		24,518		329		34,579		463
Total		2,138,601		29,263		2,696,871		30,201
Commercial		1,831,929		28,373		1,851,204		28,913
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		1,395,606		13,117		2,210,149		12,791
Consumer Real Estate		879,753		8,562		494,437		6,434
Consumer Other		24,518		329		34,579		463
Total	$	4,131,806	$	50,381	$	4,590,369	$	48,601

	Nine Months Ended September 30,
	2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	137,445	$	6,551	$	173,964	$	7,416
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		983,516		29,724		1,275,402		23,084
Consumer Real Estate		879,753		37,847		451,025		16,938
Consumer Other		—		—		—		—
Total		2,000,714		74,122		1,900,391		47,438
With an allowance recorded:
Commercial		1,742,743		81,553		1,711,259		76,544
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		419,231		8,209		930,420		5,367
Consumer Real Estate		—		—		43,119		1,296
Consumer Other		27,469		1,084		36,056		1,419
Total		2,189,443		90,846		2,720,854		84,626
Commercial		1,880,188		88,104		1,885,223		83,960
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		1,402,747		37,933		2,205,822		28,451
Consumer Real Estate		879,753		37,847		494,144		18,234
Consumer Other		27,469		1,084		36,056		1,419
Total	$	4,190,157	$	164,968	$	4,621,245	$	132,064