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LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSS (Tables)
 6 Months Ended
Jun. 30, 2015
Receivables [Abstract]  
Schedule of Loans Held for Investment by Class or Segment
The following table provides a breakdown, by class of our loans held for investment at June 30, 2015 and December 31, 2014.
Loans held for Investment
 
 
June 30, 2015
 
December 31, 2014
Commercial
$
141,487,772

 
$
138,430,999

Real estate
 
 
 
Construction
175,253,142

 
172,502,330

Residential (1-4 family)
115,106,251

 
109,404,283

Home equity lines
63,241,585

 
67,487,000

Multifamily
17,011,090

 
21,809,189

Commercial
273,184,540

 
256,966,820

Real estate subtotal
643,796,608

 
628,169,622

Consumers
 
 
 
Consumer and installment loans
7,807,746

 
5,968,990

Overdraft protection loans
77,049

 
96,736

Loans to individuals subtotal
7,884,795

 
6,065,726

Total gross loans
793,169,175

 
772,666,347

Unamortized loan fees net of deferred costs
(207,533
)
 
(76,812
)
Loans held for investment, net of unearned income
792,961,642

 
772,589,535

Allowance for loan losses
(8,676,361
)
 
(8,948,837
)
Total net loans
$
784,285,281

 
$
763,640,698
Schedule of Loans Segregated Between Pass and Watchlist Loans, Delineated By Segments
The following table segregates our portfolio between pass and watch list loans, delineated by segments, within loan type for June 30, 2015 and December 31, 2014. The "Weighted Average Risk Grade" looks at the dollar value per risk grade within a segment compared to the total value of that segment. All segments fall within the average to acceptable range.
 
  
June 30, 2015
  


Watch List


 
Weighted Average Risk Grade

Pass

Special Mention

Substandard

Total
 
Commercial
$
139,826,706


$
1,030,495


$
630,571


$
141,487,772

 
3.35

Real estate
 

 

 


 
 
Construction
173,982,189


696,510


574,443


175,253,142

 
3.22

Residential (1-4 family)
110,045,957


1,076,204


3,984,090


115,106,251

 
3.82

Home equity lines
61,888,353


—


1,353,232


63,241,585

 
4.14

Multifamily
17,011,090


—


—


17,011,090

 
3.59

Commercial
271,946,819


843,806


393,915


273,184,540

 
3.49

Real estate subtotal
634,874,408


2,616,520


6,305,680


643,796,608

 
3.56

Consumers







 
 
Consumer and installment loans
7,737,896


—


69,850


7,807,746

 
4.03

Overdraft protection loans
74,283


—


2,766


77,049

 
4.58

Loans to individuals subtotal
7,812,179


—


72,616


7,884,795

 
4.03

Total gross loans
$
782,513,293


$
3,647,015


$
7,008,867


$
793,169,175

 
3.51

 
 
 
 
 
 
 
 
 
 
  
December 31, 2014



Watch List


 
Weighted Average Risk Grade
  
Pass

Special Mention

Substandard

Total
 
Commercial
$
135,292,747


$
1,588,289


$
1,549,963


$
138,430,999

 
3.31

Real estate
 
 
 
 
 


 
 
Construction
171,136,553


93,397


1,272,380


172,502,330

 
3.26

Residential (1-4 family)
101,860,683


177,735


7,365,865


109,404,283

 
3.93

Home equity lines
66,282,828


102,575


1,101,597


67,487,000

 
4.12

Multifamily
19,616,130


2,193,059


—


21,809,189

 
3.53

Commercial
253,525,106


2,029,203


1,412,511


256,966,820

 
3.54

Real estate subtotal
612,421,300


4,595,969


11,152,353


628,169,622

 
3.59

Consumers







 
 
Consumer and installment loans
5,893,286


—


75,704


5,968,990

 
4.04

Overdraft protection loans
96,736


—


—


96,736

 
4.64

Loans to individuals subtotal
5,990,022


—


75,704


6,065,726

 
4.05

Total gross loans
$
753,704,069


$
6,184,258


$
12,778,020


$
772,666,347

 
3.55
Schedule of Loan Portfolio by Class Aging
An aging of our loan portfolio by class as of June 30, 2015 and December 31, 2014 is as follows:
 
Age Analysis of Past Due Loans
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater
Than
90 Days
 
Total
Past Due
 
Current
 
Recorded
Investment  >
90 days and
Accruing
 
Recorded
Investment
Nonaccrual
Loans
June 30, 2015

 

 

 

 

 

 

Commercial
$
127,483

 
$
509,334

 
$
—

 
$
636,817

 
$
140,850,955

 
$
—

 
$
628,580

Real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
109,063

 
—

 
—

 
109,063

 
175,144,079

 
—

 
109,063

Residential (1-4 family)
—

 
—

 
753,467

 
753,467

 
114,352,784

 
—

 
1,053,472

Home equity lines
280,419

 
—

 
244,190

 
524,609

 
62,716,976

 
—

 
244,190

Multifamily
—

 
—

 
—

 
—

 
17,011,090

 
—

 
—

Commercial
—

 
—

 
230,994

 
230,994

 
272,953,546

 
—

 
230,994

Real estate subtotal
389,482

 
—

 
1,228,651

 
1,618,133

 
642,178,475

 
—

 
1,637,719

Consumers

 

 

 

 

 

 

Consumer and installment loans
126,701

 
—

 
—

 
126,701

 
7,681,045

 
—

 
—

Overdraft protection loans
—

 
—

 
—

 
—

 
77,049

 
—

 
—

Loans to individuals subtotal
126,701

 
—

 
—

 
126,701

 
7,758,094

 
—

 
—

Total gross loans
$
643,666

 
$
509,334

 
$
1,228,651

 
$
2,381,651

 
$
790,787,524

 
$
—

 
$
2,266,299

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014

 

 

 

 

 

 

Commercial
$
—

 
$
—

 
$
582,059

 
$
582,059

 
$
137,848,940

 
$
—

 
$
582,059

Real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
248,420

 
—

 
100,000

 
348,420

 
172,153,910

 
—

 
212,552

Residential (1-4 family)
761,696

 
2,412,128

 
1,252,644

 
4,426,468

 
104,977,815

 
174,976

 
1,427,931

Home equity lines
109,456

 
—

 
249,915

 
359,371

 
67,127,629

 
—

 
249,915

Multifamily
—

 
—

 
—

 
—

 
21,809,189

 
—

 
—

Commercial
—

 
166,618

 
230,994

 
397,612

 
256,569,208

 
—

 
230,994

Real estate subtotal
1,119,572

 
2,578,746

 
1,833,553

 
5,531,871

 
622,637,751

 
174,976

 
2,121,392

Consumers

 

 

 

 

 

 

Consumer and installment loans
139,446

 
—

 
—

 
139,446

 
5,829,544

 
—

 
1,121

Overdraft protection loans
—

 
—

 
—

 
—

 
96,736

 
—

 
—

Loans to individuals subtotal
139,446

 
—

 
—

 
139,446

 
5,926,280

 
—

 
1,121

Total gross loans
$
1,259,018

 
$
2,578,746

 
$
2,415,612

 
$
6,253,376

 
$
766,412,971

 
$
174,976

 
$
2,704,572
Schedule of Troubled Debt Restructurings
Additional information on restructured loans in our portfolio as of June 30, 2015 is as follows:
Troubled Debt Restructurings
 
Number of Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Quarter Ended June 30, 2015
One
 
$237,782
 
$237,782
Six Months Ended June 30, 2015
One
 
$237,782
 
$237,782
Troubled Debt Restructurings That Subsequently Defaulted
 
 
Number of Contracts
  
Recorded Investment
Quarter Ended June 30, 2015
None
  
—
Six Months Ended June 30, 2015
None
 
—
Schedule of the activity in the allowance for loan losses account
A summary of the activity in the allowance for loan losses account is as follows:
Allocation of the Allowance for Loan Losses
 
 
 
 
Real Estate
June 30, 2015
 
Commercial
 
Construction
 
Residential
 
Home Equity
 
Multifamily
 
Commercial
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,157,867

 
$
1,678,022

 
$
2,456,418

 
$
1,911,634

 
$
85,056

 
$
1,458,664

Charge-offs
 
(207,059
)
 
(17,500
)
 
(658,953
)
 
—

 
—

 
—

Recoveries
 
3,600

 
36,561

 
19,719

 
53,025

 
—

 
—

Provision
 
707,959

 
(41,341
)
 
21,232

 
(296,862
)
 
(18,713
)
 
166,921

Ending balance
 
$
1,662,367

 
$
1,655,742

 
$
1,838,416

 
$
1,667,797

 
$
66,343

 
$
1,625,585

 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
939,399

 
$
77,298

 
$
537,578

 
$
475,740

 
$
—

 
$
330,057

Collectively evaluated for impairment
 
722,968

 
1,578,444

 
1,300,838

 
1,192,057

 
66,343

 
1,295,528

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
 
$
141,487,772

 
$
175,253,142

 
$
115,106,251

 
$
63,241,585

 
$
17,011,090

 
$
273,184,540

Ending balance: individually evaluated for impairment
 
1,110,092

 
1,270,953

 
4,365,870

 
1,353,232

 
—

 
2,099,953

Ending balance: collectively evaluated for impairment
 
$
140,377,680

 
$
173,982,189

 
$
110,740,381

 
$
61,888,353

 
$
17,011,090

 
$
271,084,587

 
 
 
Consumers
 
 
 
 
 
 
Consumer and
Installment loans
 
Overdraft
Protection
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
Beginning balance
 
$
104,661

 
$
260

 
$
96,255

 
$
8,948,837

Charge-offs
 
(1,869
)
 
—

 
—

 
(885,381
)
Recoveries
 
—

 
—

 
—

 
112,905

Provision
 
3,323

 
23

 
(42,542
)
 
500,000

Ending balance
 
$
106,115

 
$
283

 
$
53,713

 
$
8,676,361

 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
69,850

 
$
—

 
$
—

 
$
2,429,922

Collectively evaluated for impairment
 
36,265

 
283

 
53,713

 
6,246,439

Loans:
 
 
 
 
 
 
 
 
Ending balance
 
$
7,807,746

 
$
77,049

 
$
—

 
$
793,169,175

Ending balance: individually evaluated for impairment
 
69,850

 
2,766

 
—

 
10,272,716

Ending balance: collectively evaluated for impairment
 
$
7,737,896

 
$
74,283

 
$
—

 
$
782,896,459

 
 
 
 
Real Estate
December 31, 2014
 
Commercial
 
Construction
 
Residential
 
Home Equity
 
Multifamily
 
Commercial
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,219,255

 
$
1,978,320

 
$
1,685,502

 
$
2,132,916

 
$
59,586

 
$
1,305,131

Charge-offs
 
(21,789
)
 
(190,812
)
 
(163,048
)
 
(174,319
)
 
—

 
—

Recoveries
 
205,200

 
79,922

 
31,505

 
122,809

 
—

 
—

Provision
 
(244,799
)
 
(189,408
)
 
902,459

 
(169,772
)
 
25,470

 
153,533

Ending balance
 
$
1,157,867

 
$
1,678,022

 
$
2,456,418

 
$
1,911,634

 
$
85,056

 
$
1,458,664

 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
441,265

 
$
100,159

 
$
1,261,490

 
$
547,172

 
$
—

 
$
335,033

Collectively evaluated for impairment
 
716,602

 
1,577,863

 
1,194,928

 
1,364,462

 
85,056

 
1,123,631

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
 
$
138,430,999

 
$
172,502,330

 
$
109,404,283

 
$
67,487,000

 
$
21,809,189

 
$
256,966,820

Ending balance: individually evaluated for impairment
 
1,549,963

 
1,272,380

 
7,198,325

 
1,101,597

 
—

 
3,130,893

Ending balance: collectively evaluated for impairment
 
$
136,881,036

 
171,229,950

 
$
102,205,958

 
$
66,385,403

 
$
21,809,189

 
$
253,835,927

 
 
 
Consumers
 
 
 
 
 
 
Consumer and
Installment loans
 
Overdraft
Protection
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
Beginning balance
 
$
99,271

 
$
688

 
$
580,700

 
$
9,061,369

Charge-offs
 
—

 
(2,000
)
 
—

 
(551,968
)
Recoveries
 
—

 
—

 
—

 
439,436

Provision
 
5,390

 
1,572

 
(484,445
)
 
—

Ending balance
 
$
104,661

 
$
260

 
$
96,255

 
$
8,948,837

 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
74,582

 
$
—

 
—

 
$
2,759,701

Collectively evaluated for impairment
 
30,079

 
260

 
96,255

 
6,189,136

Loans:
 
 
 
 
 
 
 
 
Ending balance
 
$
5,968,990

 
$
96,736

 
$
—

 
$
772,666,347

Ending balance: individually evaluated for impairment
 
75,704

 
—

 
—

 
14,328,862

Ending balance: collectively evaluated for impairment
 
$
5,893,286

 
$
96,736

 
$
—

 
$
758,337,485
Schedule of Impaired Loans and Leases Receivable
The following table sets forth our impaired loans at June 30, 2015 and December 31, 2014.
Impaired Loans
 
With No Related Allowance
  
Recorded
Investment
 
Unpaid Principal
Balance
 
Average Recorded
Investment
 
Interest Income
Recognized
June 30, 2015
 
 
 
 
 
 
 
Commercial
$
25,978

 
$
25,978

 
$
33,228

 
$
852

Real estate
 
 
 
 
 
 
 
Construction
1,040,390

 
1,040,390

 
966,577

 
30,607

Residential (1-4 family)
2,622,287

 
2,782,112

 
2,673,004

 
47,644

Home equity lines
444,716

 
444,716

 
445,194

 
7,381

Multifamily
—

 
—

 
—

 
—

Commercial
539,375

 
539,375

 
545,281

 
17,868

Consumers
 
 
 
 
 
 
 
Consumer and installment loans
—

 
715

 
199

 
—

Overdraft protection loans
2,766

 
2,766

 
2,916

 
360

Total
$
4,675,512

 
$
4,836,052

 
$
4,666,399

 
$
104,712

December 31, 2014
 
 
 
 
 
 
 
Commercial
$
—

 
$
—

 
$
—

 
$
—

Real estate
 
 
 
 
 
 
 
Construction
935,467

 
935,467

 
954,181

 
56,004

Residential (1-4 family)
2,704,883

 
2,880,739

 
3,067,193

 
119,011

Home equity lines
115,925

 
115,925

 
115,324

 
3,962

Multifamily
—

 
—

 
—

 
—

Commercial
1,430,533

 
1,430,533

 
1,317,972

 
79,891

Consumers
 
 
 
 
 
 
 
Consumer and installment loans
1,122

 
2,729

 
3,088

 
—

Overdraft protection loans
—

 
—

 
—

 
—

Total
$
5,187,930

 
$
5,365,393

 
$
5,457,758

 
$
258,868

 
 
With Related Allowance
  
Recorded
Investment
 
Unpaid Principal
Balance
 
Related
Allowance
 
Average Recorded
Investment
 
Interest Income
Recognized
June 30, 2015
 
 
 
 
 
 
 
 
 
Commercial
$
1,084,114

 
$
1,084,114

 
$
939,399

 
$
1,309,774

 
$
26,100

Real estate
 
 
 
 
 
 
 
 
 
Construction
230,563

 
254,598

 
77,298

 
231,899

 
5,183

Residential (1-4 family)
1,743,583

 
1,746,842

 
537,578

 
1,742,161

 
35,470

Home equity lines
908,516

 
914,240

 
475,740

 
902,466

 
14,150

Multifamily
—

 
—

 
—

 
—

 
—

Commercial
1,560,578

 
1,560,578

 
330,057

 
1,560,678

 
26,901

Consumers
 
 
 
 
 
 
 
 
 
Consumer and installment loans
69,850

 
69,850

 
69,850

 
72,550

 
1,268

Overdraft protection loans
—

 
—

 
—

 
—

 
—

Total
$
5,597,204

 
$
5,630,222

 
$
2,429,922

 
$
5,819,528

 
$
109,072

December 31, 2014
 
 
 
 
 
 
 
 
 
Commercial
$
1,549,963

 
$
1,549,963

 
$
441,265

 
$
1,618,461

 
$
93,073

Real estate
 
 
 
 
 
 
 
 
 
Construction
336,913

 
441,459

 
100,159

 
408,460

 
12,358

Residential (1-4 family)
4,493,442

 
4,535,549

 
1,261,490

 
4,564,008

 
232,522

Home equity lines
985,672

 
985,672

 
547,172

 
988,494

 
46,161

Multifamily
—

 
—

 
—

 
—

 
—

Commercial
1,700,360

 
1,700,360

 
335,033

 
1,721,563

 
79,323

Consumers
 
 
 
 
 
 
 
 
 
Consumer and installment loans
74,582

 
74,582

 
74,582

 
79,632

 
2,792

Overdraft protection loans
—

 
—

 
—

 
—

 
—

Total
$
9,140,932

 
$
9,287,585

 
$
2,759,701

 
$
9,380,618

 
$
466,229