Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of major classifications of loans

Major classifications of loans (net of deferred loan fees and costs of $1,128,775 at June 30, 2020 and $155,697 at December 31, 2019, respectively) are as follows:

	June 30, 2020			December 31, 2019
Commercial	$	42,680,070		$	52,848,455
Commercial Real Estate:
Construction		14,301,901			12,491,078
Other		140,469,962			143,821,990
Consumer:
Real Estate		71,183,544			59,533,045
Other		4,728,864			5,377,992
Paycheck Protection Program		36,542,964			—
		309,907,305			274,072,560
Allowance for loan losses		(4,110,630	)		(4,003,758	)
Loans, net	$	305,796,675		$	270,068,802

Schedule of credit risks by category and internally assigned grades

The following tables illustrate credit quality by class and internally assigned grades at June 30, 2020 and December 31, 2019. “Pass” includes loans internally graded as excellent, good and satisfactory.

June 30, 2020
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Pass	$	35,665,736	$	13,461,039	$	118,080,815	$	68,776,698	$	4,430,294	$	—	$	240,414,582
Watch		4,701,530		840,862		20,069,519		869,152		219,765		—		26,700,828
OAEM		388,727		—		238,227		622,731		36,909		—		1,286,594
Substandard		1,924,077		—		2,081,401		914,963		41,896		—		4,962,337
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
Unrated		—		—		—		—		—		36,542,964		36,542,964
Total	$	42,680,070	$	14,301,901	$	140,469,962	$	71,183,544	$	4,728,864	$	36,542,964	$	309,907,305

December 31, 2019
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Pass	$	48,098,936	$	12,005,834	$	137,641,011	$	56,034,247	$	4,966,615	$	—	$	258,746,643
Watch		2,303,568		485,244		3,758,220		2,096,445		315,375		—		8,958,852
OAEM		460,551		—		649,039		522,600		44,232		—		1,676,422
Substandard		1,985,400		—		1,773,720		879,753		51,770		—		4,690,643
Doubtful		—		—		—		—		—		—		—
Loss		—		—		—		—		—		—		—
Unrated		—		—		—		—		—		—		—
Total	$	52,848,455	$	12,491,078	$	143,821,990	$	59,533,045	$	5,377,992	$	—	$	274,072,560

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.

June 30, 2020
	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	$	—	$	210,121	$	—	$	210,121	$	42,469,949	$	42,680,070	$	—
Commercial Real Estate Construction		—		—		—		—		14,301,901		14,301,901		—
Commercial Real Estate Other		335,448		423,170		638,139		1,396,757		139,073,205		140,469,962		—
Consumer Real Estate		—		—		665,114		665,114		70,518,430		71,183,544		—
Consumer Other		—		2,560		—		2,560		4,726,304		4,728,864		—
Paycheck Protection Program		—		—		—		—		36,542,964		36,542,964		—
Total	$	335,448	$	635,851	$	1,303,253	$	2,274,552	$	307,632,753	$	309,907,305	$	—

December 31, 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	$	39,329	$	—	$	178,975	$	218,304	$	52,630,151	$	52,848,455	$	—
Commercial Real Estate Construction		—		—		—		—		12,491,078		12,491,078		—
Commercial Real Estate Other		620,837		300,240		582,419		1,503,496		142,318,494		143,821,990		—
Consumer Real Estate		—		2,965		629,999		632,964		58,900,081		59,533,045		—
Consumer Other		32,842		—		—		32,842		5,345,150		5,377,992		—
Paycheck Protection Program		—		—		—		—		—		—		—
Total	$	693,008	$	303,205	$	1,391,393	$	2,387,606	$	271,684,954	$	274,072,560	$	—

Schedule of non-accrual loans

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

	Loans Receivable on Non-Accrual
		June 30, 2020		December 31, 2019
Commercial	$	190,751	$	178,975
Commercial Real Estate Construction		—		—
Commercial Real Estate Other		912,067		857,327
Consumer Real Estate		665,114		629,999
Consumer Other		13,450		—
Paycheck Protection Program		—		—
Total	$	1,781,382	$	1,666,301

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 six months ended June 30, 2020 and 2019. 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 June 30, 2020
	Commercial			Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other			Paycheck Protection Program		Total
Allowance for Loan Losses:
Beginning balance	$	1,416,267		$	123,069	$	1,212,647	$	562,000	$	700,230		$	—	$	4,014,213
Charge-offs		—			—		—		—		(76,410	)		—		(76,410	)
Recoveries		71,511			—		99,801		—		1,515			—		172,827
Provisions		(469,228	)		27,738		164,571		321,300		(44,381	)		—		—
Ending balance	$	1,018,550		$	150,807	$	1,477,019	$	883,300	$	580,954		$	—	$	4,110,630

	Six Months Ended June 30, 2020
	Commercial			Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other			Paycheck Protection Program		Total
Allowance for Loan Losses:
Beginning balance	$	1,429,917		$	109,235	$	1,270,445	$	496,221	$	697,940		$	—	$	4,003,758
Charge-offs		—			—		—		—		(116,002	)		—		(116,002	)
Recoveries		87,011			—		99,801		—		36,062			—		222,874
Provisions		(498,378	)		41,572		106,773		387,079		(37,046	)		—		—
Ending balance	$	1,018,550		$	150,807	$	1,477,019	$	883,300	$	580,954		$	—	$	4,110,630

	Three Months Ended June 30, 2019
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other			Paycheck Protection Program		Total
Allowance for Loan Losses:
Beginning balance	$	1,528,577	$	81,047	$	1,318,918	$	377,641	$	683,239		$	—	$	3,989,422
Charge-offs		—		—		—		—		(2,009	)		—		(2,009	)
Recoveries		5,500		—		—		—		2,635			—		8,135
Provisions		5,575		16,940		13,885		150,888		(52,288	)		—		135,000
Ending balance	$	1,539,652	$	97,987	$	1,332,803	$	528,529	$	631,577		$	—	$	4,130,548

	Six Months Ended June 30, 2019
	Commercial			Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other			Paycheck Protection Program		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			—		—		—		2,954			—		8,954
Provisions		97,634			34,111		40,457		141,944		(169,146	)		—		145,000
Ending balance	$	1,539,652		$	97,987	$	1,332,803	$	528,529	$	631,577		$	—	$	4,130,548

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.

	June 30, 2020
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Allowance for Loan Losses
Individually evaluated for impairment	$	466,463	$	—	$	29,199	$	170,794	$	—	$	—	$	666,456
Collectively evaluated for impairment		552,087		150,807		1,447,820		712,506		580,954		—		3,444,174
Total Allowance for Loan Losses	$	1,018,550	$	150,807	$	1,477,019	$	883,300	$	580,954	$	—	$	4,110,630
Loans Receivable
Individually evaluated for impairment	$	1,924,077	$	—	$	2,084,973	$	914,964	$	41,896	$	—	$	4,965,910
Collectively evaluated for impairment		40,755,993		14,301,901		138,384,989		70,268,580		4,686,968		36,542,964		304,941,395
Total Loans Receivable	$	42,680,070	$	14,301,901	$	140,469,962	$	71,183,544	$	4,728,864	$	36,542,964	$	309,907,305

	December 31, 2019
	Commercial		Commercial Real Estate Construction		Commercial Real Estate Other		Consumer Real Estate		Consumer Other		Paycheck Protection Program		Total
Allowance for Loan Losses
Individually evaluated for impairment	$	683,278	$	—	$	1,782	$	—	$	90	$	—	$	685,150
Collectively evaluated for impairment		746,639		109,235		1,268,663		496,221		697,850		—		3,318,608
Total Allowance for Loan Losses	$	1,429,917	$	109,235	$	1,270,445	$	496,221	$	697,940	$	—	$	4,003,758
Loans Receivable
Individually evaluated for impairment	$	2,065,732	$	—	$	1,679,872	$	879,753	$	51,770	$	—	$	4,677,127
Collectively evaluated for impairment		50,782,723		12,491,078		142,142,118		58,653,292		5,326,222		—		269,395,433
Total Loans Receivable	$	52,848,455	$	12,491,078	$	143,821,990	$	59,533,045	$	5,377,992	$	—	$	274,072,560

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

As of June 30, 2020 and December 31, 2019, loans individually evaluated and considered impaired are presented in the following table.

	Impaired Loans as of
	June 30, 2020						December 31, 2019
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
With no related allowance recorded:
Commercial	$	956,102	$	956,102	$	—	$	1,355,875	$	1,355,875	$	—
Commercial Real Estate Construction		—		—		—		—		—		—
Commercial Real Estate Other		1,749,438		1,749,438		—		1,432,988		1,432,988		—
Consumer Real Estate		249,850		249,850		—		879,753		879,753		—
Consumer Other		41,896		41,896		—		—		—		—
Paycheck Protection Program		—		—		—		—		—		—
Total		2,997,286		2,997,286		—		3,668,616		3,668,616		—
With an allowance recorded:
Commercial		967,975		967,975		466,463		709,857		709,857		683,278
Commercial Real Estate Construction		—		—		—		—		—		—
Commercial Real Estate Other		435,336		335,535		29,199		346,685		246,884		1,782
Consumer Real Estate		665,114		665,114		170,794		—		—		—
Consumer Other		—		—		—		51,770		51,770		90
Paycheck Protection Program		—		—		—		—		—		—
Total		2,068,425		1,968,624		666,456		1,108,312		1,008,511		685,150
Commercial		1,924,077		1,924,077		466,463		2,065,732		2,065,732		683,278
Commercial Real Estate Construction		—		—		—		—		—		—
Commercial Real Estate Other		2,184,774		2,084,973		29,199		1,779,673		1,679,872		1,782
Consumer Real Estate		914,964		914,964		170,794		879,753		879,753		—
Consumer Other		41,896		41,896		—		51,770		51,770		90
Paycheck Protection Program		—		—		—		—		—		—
Total	$	5,065,711	$	4,965,910	$	666,456	$	4,776,928	$	4,677,127	$	685,150

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 June 30,
	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	960,398	$	14,480	$	117,741	$	2,071
Commercial Real Estate Construction		—		—		—		—
Commercial Real Estate Other		1,752,669		21,646		863,351		10,354
Consumer Real Estate		249,800		2,647		879,753		14,257
Consumer Other		42,163		683		—		—
Paycheck Protection Program		—		—		—		—
		3,005,030		39,456		1,860,845		26,682
With an allowance recorded:
Commercial		1,052,358		11,434		1,582,324		25,869
Commercial Real Estate Construction		—		—		—		—
Commercial Real Estate Other		235,734		—		501,279		2,735
Consumer Real Estate		665,058		—		—		—
Consumer Other		—		—		17,108		224
Paycheck Protection Program		—		—		—		—
		1,953,150		11,434		2,100,711		28,828
Total
Commercial		2,012,756		25,914		1,700,065		27,940
Commercial Real Estate Construction		—		—		—		—
Commercial Real Estate Other		1,988,403		21,646		1,364,630		13,089
Consumer Real Estate		914,858		2,647		879,753		14,257
Consumer Other		42,163		683		17,108		224
Paycheck Protection Program		—		—		—		—
	$	4,958,180	$	50,890	$	3,961,556	$	55,510

		Six Months Ended June 30,
		2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial	$	1,024,907	$	29,570	$	123,509	$	4,334
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		1,772,945		37,824		967,076		20,700
Consumer Real Estate		249,754		6,472		879,753		28,357
Consumer Other		43,903		1,342		—		—
Paycheck Protection Program		—		—		—		—
		3,091,509		75,208		1,970,338		53,391
With an allowance recorded:
Commercial		1,184,428		26,662		1,597,013		51,983
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		229,149		—		403,001		5,498
Consumer Real Estate		664,701		—		—		—
Consumer Other		—		—		18,279		478
Paycheck Protection Program		—		—		—		—
		2,078,278		26,662		2,018,293		57,959
Total
Commercial		2,209,335		56,232		1,720,522		56,317
Commercial Real Estate - Construction		—		—		—		—
Commercial Real Estate - Other		2,002,094		37,824		1,370,077		26,198
Consumer Real Estate		914,455		6,472		879,753		28,357
Consumer Other		43,903		1,342		18,279		478
Paycheck Protection Program		—		—		—		—
	$	5,169,787	$	101,870	$	3,988,631	$	111,350