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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of major classifications of loans

Major classifications of loans (net of deferred loan fees of $156,287 at September 30, 2019 and $156,309 at December 31, 2018) are as follows:

 

    September 30, 2019     December 31, 2018  
Commercial   $ 51,362,787     $ 54,829,078  
Commercial real estate:                
Construction     11,058,317       7,304,300  
Other     146,677,103       143,703,401  
Consumer:                
Real estate     61,031,686       63,787,411  
Other     5,397,391       5,040,077  
      275,527,284       274,664,267  
Allowance for loan losses     (4,141,415 )     (4,214,331 )
Loans, net   $ 271,385,869     $ 270,449,936
Schedule of credit risks by category and internally assigned grades

The following tables illustrate credit quality by class and internally assigned grades at September 30, 2019 and December 31, 2018. “Pass” includes loans internally graded as excellent, good and satisfactory.

 

September 30, 2019  
    Commercial     Commercial
Real Estate
Construction		     Commercial
Real Estate -
Other		     Consumer
Real Estate		     Consumer
Other		     Total  
Pass   $ 47,353,253     $ 10,567,442     $ 140,204,499     $ 56,969,235     $ 4,988,881     $ 260,083,310  
Watch     1,992,952       490,875       4,338,999       2,665,466       348,693       9,836,985  
OAEM     467,044       —       655,956       517,232       4,645       1,644,877  
Sub-standard     1,549,538       —       1,477,649       879,753       55,172       3,962,112  
Doubtful     —       —       —       —       —       —  
Loss     —       —       —       —       —       —  
Total   $ 51,362,787     $ 11,058,317     $ 146,677,103     $ 61,031,686     $ 5,397,391     $ 275,527,284  

  

    December 31, 2018  
    Commercial     Commercial
Real Estate -
Construction		     Commercial
Real Estate -
Other		     Consumer
Real Estate		     Consumer
Other		     Total  
Pass   $ 50,663,356     $ 7,304,300     $ 136,804,420     $ 60,480,317     $ 4,726,494     $ 259,978,887  
Watch     1,973,675       —       4,938,711       2,077,341       226,117       9,215,844  
OAEM     157,300       —       590,294       350,000       —       1,097,594  
Sub-standard     2,034,747       —       1,369,976       879,753       87,466       4,371,942  
Doubtful     —       —       —       —       —       —  
Loss     —       —       —       —       —       —  
Total   $ 54,829,078     $ 7,304,300     $ 143,703,401     $ 63,787,411     $ 5,040,077     $ 274,664,267  
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, 2019  
    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   $ 48,963     $ 501,278     $ 9,348     $ 559,589     $ 50,803,198     $ 51,362,787     $ —  
Commercial Real Estate - Construction     —       —       —       —       11,058,317       11,058,317       —  
Commercial Real Estate - Other     273,190       349,842       582,419       1,205,451       145,471,652       146,677,103       —  
Consumer Real Estate     416,967       —       779,998       1,196,965       59,834,721       61,031,686       149,999  
Consumer Other     2,042       —       —       2,042       5,395,349       5,397,391       —  
Total   $ 741,162     $ 851,120     $ 1,371,765     $ 2,964,047     $ 272,563,237     $ 275,527,284     $ 149,999  

  

    December 31, 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   $ 266,567     $ 17,492     $ 229,395     $ 513,454     $ 54,315,624     $ 54,829,078     $ —  
Commercial Real Estate - Construction     —       —       —       —       7,304,300       7,304,300       —  
Commercial Real Estate - Other     35,000       215,049       571,292       821,341       142,882,060       143,703,401       —  
Consumer Real Estate     —       —       —       —       63,787,411       63,787,411       —  
Consumer Other     24,621       —       —       24,621       5,015,456       5,040,077       —  
Total   $ 326,188     $ 232,541     $ 800,687     $ 1,359,416     $ 273,304,851     $ 274,664,267     $ —  
Schedule of non-accrual loans

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

 

    Loans Receivable on Non-Accrual  
    September 30, 2019     December 31, 2018  
                 
Commercial   $ 188,324     $ 251,219  
Commercial Real Estate - Construction     —       —  
Commercial Real Estate - Other     855,609       571,292  
Consumer Real Estate     629,999       —  
Consumer Other     —       1,023  
Total   $ 1,673,932     $ 823,534  
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 loan category for the three and nine months ended September 30, 2019 and 2018. 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, 2019
    Commercial     Commercial Real
Estate -
Construction		     Commercial Real
Estate - Other		     Consumer Real
Estate		     Consumer
Other		     Total  
Allowance for Loan Losses:                                                
Beginning Balance   $ 1,539,652     $ 97,987     $ 1,332,803     $ 528,529     $ 631,577     $ 4,130,548  
Charge-offs     —       —       —       —       —       —  
Recoveries     —       —       —       —       867       867  
Provisions     (494,762 )     (1,281 )     (39,630 )     (27,382 )     573,055       10,000  
Ending Balance   $ 1,044,890     $ 96,706     $ 1,293,173     $ 501,147     $ 1,205,499     $ 4,141,415  

 

Nine Months Ended September 30, 2019
    Commercial     Commercial Real
Estate -
Construction		     Commercial Real
Estate - Other		     Consumer Real
Estate		     Consumer
Other		     Total  
Allowance for Loan Losses:                                                
Beginning Balance   $ 1,665,413     $ 63,876     $ 1,292,346     $ 386,585     $ 806,111     $ 4,214,331  
Charge-offs     (229,395 )     —       —       —       (8,342 )     (237,737 )
Recoveries     6,000       —       —       —       3,821       9,821  
Provisions     (397,128 )     32,830       827       114,562       403,909       155,000  
Ending Balance   $ 1,044,890     $ 96,706     $ 1,293,173     $ 501,147     $ 1,205,499     $ 4,141,415  

  

    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  
Schedule of allocation of the allowance for loan losses and the gross investment in loans by class and reserving methodology

The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans, for the periods indicated.

 

   September 30, 2019
   Commercial   Commercial Real Estate - Construction   Commercial Real Estate - Other   Consumer Real Estate   Consumer Other   Total 
Allowance for Loan Losses                              
Individually evaluated for impairment  $178,975   $—   $1,782   $—   $135   $180,892 
Collectively evaluated for impairment   865,915    96,706    1,291,391    501,147    1,205,364    3,960,523 
Total Allowance for Loan Losses  $1,044,890   $96,706   $1,293,173   $501,147   $1,205,499   $4,141,415 
Loans Receivable                              
Individually evaluated for impairment  $1,638,910   $—   $1,385,118   $879,753   $55,172   $3,958,953 
Collectively evaluated for impairment   49,723,877    11,058,317    145,291,985    60,151,933    5,342,219    271,568,331 
Total Loans Receivable  $51,362,787   $11,058,317   $146,677,103   $61,031,686   $5,397,391   $275,527,284 

 

    December 31, 2018
   Commercial  

Commercial Real Estate -

Construction

  

Commercial

Real Estate - Other

   Consumer Real
Estate		  

Consumer

Other

   Total 
Allowance for Loan Losses                              
Individually evaluated for impairment  $1,132,805   $—   $37,416   $—   $21,324   $1,191,545 
Collectively evaluated for impairment   532,608    63,876    1,254,930    386,585    784,787    3,022,786 
Total Allowance for Loan Losses  $1,665,413   $63,876   $1,292,346   $386,585   $806,111   $4,214,331 
Loans Receivable                              
Individually evaluated for impairment  $1,996,579   $—   $1,280,890   $879,753   $21,324   $4,178,546 
Collectively evaluated for impairment   52,832,499    7,304,300    142,422,511    62,907,658    5,018,753    270,485,721 
Total Loans Receivable  $54,829,078   $7,304,300   $143,703,401   $63,787,411   $5,040,077   $274,664,267 

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

As of September 30, 2019 and December 31, 2018, loans individually evaluated and considered impaired are presented in the following table.

 

    Impaired Loans as of
    September 30, 2019   December 31, 2018
    Unpaid Principal Balance   Recorded Investment   Related Allowance   Unpaid Principal Balance   Recorded Investment   Related Allowance
With no related allowance recorded:                                              
Commercial   $ 1,459,935     $ 1,459,935     $ —     $ 115,983     $ 115,983     $ —
Commercial Real Estate - Construction     —       —       —       —       —       —
Commercial Real Estate - Other     1,138,234       1,138,234       —       974,249       974,249       —
Consumer Real Estate     879,753       879,753       —       879,753       879,753       —
Consumer Other     —       —       —       —       —       —
Total     3,477,922       3,477,922       —       1,969,985       1,969,985       —
                                               
With an allowance recorded:                                              
Commercial     178,975       178,975       178,975       1,880,596       1,880,596       1,132,805
Commercial Real Estate - Construction     —       —       —       —       —       —
Commercial Real Estate - Other     346,685       246,884       1,782       406,442       306,641       37,416
Consumer Real Estate     —       —       —       —       —       —
Consumer Other     55,172       55,172       135       21,324       21,324       21,324
Total     580,832       481,031       180,892       2,308,362       2,208,561       1,191,545
                                               
Total                                              
Commercial     1,638,910       1,638,910       178,975       1,996,579       1,996,579       1,132,805
Commercial Real Estate - Construction     —       —       —       —       —       —
Commercial Real Estate - Other     1,484,919       1,385,118       1,782       1,380,691       1,280,890       37,416
Consumer Real Estate     879,753       879,753       —       879,753       879,753       —
Consumer Other     55,172       55,172       135       21,324       21,324       21,324
Total   $ 4,058,754     $ 3,958,953     $ 180,892     $ 4,278,347     $ 4,178,546     $ 1,191,545
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 segment, for the periods indicated.

 

   Three Months Ended September 30,
   2019  2018
   Average Recorded Investment  Interest Income Recognized  Average Recorded Investment  Interest Income Recognized
With no related allowance recorded:                   
Commercial  $1,475,751   $23,707   $128,953   $2,178
Commercial Real Estate - Construction   —    —    —    —
Commercial Real Estate - Other   1,136,872    11,832    984,499    10,378
Consumer Real Estate   879,753    4,041    879,753    8,562
Consumer Other   —    —    —    —
    3,492,376    39,580    1,993,205    21,118
                    
With an allowance recorded:                   
Commercial   178,975    —    1,702,976    26,195
Commercial Real Estate - Construction   —    —    —    —
Commercial Real Estate - Other   346,685    —    411,107    2,739
Consumer Real Estate   —    —    —    —
Consumer Other   57,540    898    24,518    329
    583,200    898    2,138,601    29,263
Total                   
Commercial   1,654,726    23,707    1,831,929    28,373
Commercial Real Estate - Construction   —    —    —    —
Commercial Real Estate - Other   1,483,557    11,832    1,395,606    13,117
Consumer Real Estate   879,753    4,041    879,753    8,562
Consumer Other   57,540    898    24,518    329
   $4,075,576   $40,478   $4,131,806   $50,381

 

   Nine Months Ended September 30,
   2019  2018
   Average Recorded Investment  Interest Income Recognized  Average Recorded Investment  Interest Income Recognized
With no related allowance recorded:                   
Commercial  $1,519,222   $73,276   $137,445   $6,551
Commercial Real Estate - Construction   —    —    —    —
Commercial Real Estate - Other   1,239,519    40,709    983,516    29,724
Consumer Real Estate   879,753    26,676    879,753    37,847
Consumer Other   —    —    —    —
    3,638,494    140,661    2,000,714    74,122
                    
With an allowance recorded:                   
Commercial   178,976    5,779    1,742,743    81,553
Commercial Real Estate - Construction   —    —    —    —
Commercial Real Estate - Other   246,884    —    419,231    8,209
Consumer Real Estate   —    —    —    —
Consumer Other   61,089    2,644    27,469    1,084
    486,949    8,423    2,189,443    90,846
Total                   
Commercial   1,698,198    79,055    1,880,188    88,104
Commercial Real Estate - Construction   —    —    —    —
Commercial Real Estate - Other   1,486,403    40,709    1,402,747    37,933
Consumer Real Estate   879,753    26,676    879,753    37,847
Consumer Other   61,089    2,644    27,469    1,084
   $4,125,443   $149,084   $4,190,157   $164,968