Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2013

Loans and Leases Receivable, Allowance [Abstract]

Schedule of Loan Portfolio and Percentage of Loans in Each Category to Total Loans

The composition of the Corporation’s loan portfolio and the percentage of loans in each category to total loans at March 31, 2013 and December 31, 2012, was as follows:

	March 31, 2013					December 31, 2012
Commercial, financial and agricultural loans	$	37,985,807		18.3	%	$	40,506,802		19.8	%
Real estate:
Construction loans		17,270,573		8.3	%		16,988,817		8.3	%
Commercial mortgage loans		75,798,812		36.5	%		70,059,410		34.3	%
Residential loans		61,701,029		29.7	%		62,433,339		30.6	%
Agricultural loans		11,447,026		5.5	%		10,169,251		5.0	%
Consumer & other loans		3,584,526		1.7	%		4,009,497		2.0	%
Loans Outstanding		207,787,773		100.0	%		204,167,116		100.0	%
Unearned interest and discount		(28,092	)				(30,100	)
Allowance for loan losses		(2,943,568	)				(2,844,903	)
Net loans	$	204,816,113				$	201,292,113

Summary of Maturities of Loan Portfolio

The following table shows maturities as well as interest sensitivity of the commercial, financial, agricultural, and construction loan portfolio at March 31, 2013.

	Commercial, Financial, Agricultural and Construction
Distribution of loans which are due:
In one year or less	$	16,775,774
After one year but within five years		32,802,920
After five years		5,677,686
Total	$	55,256,380

Summary of Loans Due After One Year

The following table shows, for such loans due after one year, the amounts which have predetermined interest rates and the amounts which have floating or adjustable interest rates at March 31, 2013.

	Loans With
	Predetermined	Loans With
	Rates	Floating Rates	Total
Commercial, financial,
agricultural and construction	$ 35,327,316	$ 3,153,290	$ 38,480,606

Schedule of Outstanding Balances of Nonaccrual, Past-Due, Renegotiated, Potential Problem Loans and Foreclosed Assets

The following table presents information concerning outstanding balances of nonaccrual and accruing loans for 90 days past-due, troubled debt restructured and other potential problem loans as well as foreclosed assets for the indicated period.

			Accruing Loans
	Nonaccrual Loans		90 Days Past-Due		Troubled Debt Restructured		Potential Problem		Total		Foreclosed Assets
March 31, 2013	$	847,757	$	0	$	601,328	$	293,979	$	1,743,064	$	1,524,156
December 31, 2012	$	25,187	$	0	$	198,794	$	372,098	$	596,079	$	1,689,861

Past Due Loans And Nonaccrual Loans

The following tables present an age analysis of past due loans and nonaccrual loans segregated by class of loans. We do not have any accruing loans that are 90 days or more past due.

	Age Analysis of Past Due Loans As of March 31, 2013
	30-89 Days Past Due		Greater than 90 Days		Total Past Due Loans		Nonaccrual Loans		Current Loans		Total Loans
Commercial, financial and agricultural loans	$	182,332	$	0	$	182,332	$	0	$	37,803,475	$	37,985,807
Real estate:
Construction loans		324,786		0		324,786		0		16,945,787		17,270,573
Commercial mortgage loans		889,762		0		889,762		181,435		74,727,615		75,798,812
Residential loans		528,061		0		528,061		666,322		60,506,646		61,701,029
Agricultural loans		0		0		0		0		11,447,026		11,447,026
Consumer & other loans		58,126		0		58,126		0		3,526,400		3,584,526
Total loans	$	1,983,067	$	0	$	1,983,067	$	847,757	$	204,956,949	$	207,787,773

	Age Analysis of Past Due Loans As of December 31, 2012
	30-89 Days Past Due		Greater than 90 Days		Total Past Due Loans		Nonaccrual Loans		Current Loans		Total Loans
Commercial, financial and agricultural loans	$	317,692	$	0	$	317,692	$	0	$	40,189,110	$	40,506,802
Real estate:
Construction loans		306,673		0		306,673		0		16,682,144		16,988,817
Commercial mortgage loans		568,127		0		568,127		0		69,491,283		70,059,410
Residential loans		4,923,435		0		4,923,435		25,187		57,484,717		62,433,339
Agricultural loans		0		0		0		0		10,169,251		10,169,251
Consumer & other loans		52,963		0		52,963		0		3,956,534		4,009,497
Total loans	$	6,168,890	$	0	$	6,168,890	$	25,187	$	197,973,039	$	204,167,116

Schedule of Impaired Loans Segragated by Class of Loans

The following tables present impaired loans, segregated by class of loans as of March 31, 2013, and December 31, 2012:

	Unpaid		Recorded Investment								Year-to-date Average		Interest Income Received
March 31, 2013	Principal Balance		With No Allowance		With Allowance		Total		Related Allowance		Recorded Investment		During Impairment
Commercial, financial and agricultural loans	$	249,751	$	0	$	249,751	$	249,751	$	229,354	$	39,287	$	6,216
Real estate:
Construction loans		0		0		0		0		0		0		0
Commercial mortgage loans		956,651		181,435		775,216		956,651		156,695		487,679		36,453
Residential loans		1,739,408		552,656		1,186,752		1,739,408		146,511		964,821		73,752
Agricultural loans		0		0		0		0		0		0		0
Consumer & other loans		11,838		11,838		0		11,838		0		2,464		362
Total loans	$	2,957,648	$	745,929	$	2,211,719	$	2,957,648	$	532,560	$	1,494,251	$	116,783

	Unpaid		Recorded Investment								Year-to-date Average		Interest Income Received
December 31, 2012	Principal Balance		With No Allowance		With Allowance		Total		Related Allowance		Recorded Investment		During Impairment
Commercial, financial and agricultural loans	$	53,634	$	0	$	53,634	$	53,634	$	33,238	$	29,551	$	1,878
Real estate:
Construction loans		0		0		0		0		0		0		0
Commercial mortgage loans		588,776		182,253		406,523		588,776		70,040		341,311		29,708
Residential loans		1,536,147		0		1,536,147		1,536,147		137,040		743,770		63,470
Agricultural loans		0		0		0		0		0		0		0
Consumer & other loans		10,642		5,149		5,493		10,642		5,493		3,884		225
Total loans	$	2,189,199	$	187,402	$	2,001,797	$	2,189,199	$	245,811	$	1,118,516	$	95,281

Schedule of Troubled Debt Restructuring by Loan Class

Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 90 days past due.

	March 31, 2013
					Under restructured terms
	Accruing		Non-accruing		#		Current		#		Default
Commercial, financial, and agricultural loans	$	38,709	$	0		1	$	38,709		0	$	0
Real estate:
Construction loans		81,786		0		1		81,786		0		0
Commercial mortgage loans		406,608		0		1		406,608		0		0
Residential loans		43,137		0		1		43,137		0		0
Agricultural loans		0		0		0		0		0		0
Consumer & other loans		31,088		0		5		31,088		0		0
Total TDR’s	$	601,328	$	0		9	$	601,328		0	$	0

	December 31, 2012
					Under restructured terms
	Accruing		Non-accruing		#		Current		#		Default
Commercial, financial, and agricultural loans	$	39,277	$	0		1	$	39,277		0	$	0
Real estate:
Construction loans		82,171		0		1		82,171		0		0
Commercial mortgage loans		0		0		0		0		0		0
Residential loans		43,351		0		1		43,351		0		0
Agricultural loans		0		0		0		0		0		0
Consumer & other loans		33,995		0		5		33,995		0		0
Total TDR’s	$	198,794	$	0		8	$	198,794		0	$	0

Schedule of Troubled Debt Restructurings by Types of Concessions Made

The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and non-accrual at March 31, 2013, and December 31, 2012.

	March 31, 2013								December 31, 2012
	Accruing				Non-accruing				Accruing				Non-accruing
	#		Balance		#		Balance		#		Balance		#		Balance
Type of concession:
Payment modification		1	$	38,709		0	$	0		1	$	39,277		0	$	0
Rate reduction		3		129,799		0		0		4		138,435		0		0
Rate reduction, payment modification		5		432,820		0		0		3		21,082		0		0
Total		9	$	601,328		0	$	0		8	$	198,794		0	$	0

Schedule of Internal Loan Grading By Class of Loans

The following tables present internal loan grading by class of loans as of March 31, 2013, and December 31, 2012:

March 31, 2013	Commercial, Financial, and Agricultural		Construction Real Estate		Commercial Real Estate		Residential Real Estate		Agricultural Real Estate		Consumer and Other		Total
Rating:
Grade 1- Exceptional	$	230,912	$	0	$	0	$	29,359	$	0	$	259,828	$	520,099
Grade 2- Above Avg.		74,500		1,060,575		0		116,027		400,284		4,391		1,655,777
Grade 3- Acceptable		28,761,975		7,325,429		30,210,188		35,377,498		6,728,250		2,438,144		110,841,484
Grade 4- Fair		8,206,626		7,614,093		40,389,759		19,624,437		3,491,190		784,941		80,111,046
Grade 5a- Watch		281,865		967,438		1,775,714		1,218,771		382,950		38,641		4,665,379
Grade 5b- OAEM		11,598		0		1,682,160		689,481		444,352		12,563		2,840,154
Grade 6- Substandard		418,331		303,038		1,740,991		4,610,601		0		46,018		7,118,979
Grade 7- Doubtful		0		0		0		34,855		0		0		34,855
Total loans	$	37,985,807	$	17,270,573	$	75,798,812	$	61,701,029	$	11,447,026	$	3,584,526	$	207,787,773

December 31, 2012	Commercial, Financial, and Agricultural		Construction Real Estate		Commercial Real Estate		Residential Real Estate		Agricultural Real Estate		Consumer and Other		Total
Rating:
Grade 1- Exceptional	$	320,295	$	0	$	0	$	29,588	$	0	$	292,305	$	642,188
Grade 2- Above Avg.		208,000		1,079,020		665		118,152		939,469		5,172		2,350,478
Grade 3- Acceptable		31,149,578		5,135,542		28,992,688		36,791,734		5,661,101		2,731,528		110,462,171
Grade 4- Fair		8,117,676		9,500,573		35,906,982		19,854,579		2,654,197		847,579		76,881,586
Grade 5a- Watch		471,472		967,009		1,643,198		852,787		385,412		57,009		4,376,887
Grade 5b- OAEM		13,415		0		1,685,218		681,156		454,991		35,889		2,870,669
Grade 6- Substandard		226,366		306,673		1,830,659		4,070,488		74,081		40,015		6,548,282
Grade 7- Doubtful		0		0		0		34,855		0		0		34,855
Total loans	$	40,506,802	$	16,988,817	$	70,059,410	$	62,433,339	$	10,169,251	$	4,009,497	$	204,167,116

Allowance For Loan Losses Methodology

The annualized net charge-offs to average loans outstanding ratio was 0.01% for the three months ended March 31, 2013.

Three months ended March 31, 2013:

	Commercial, Financial, and Agricultural		Construction Real Estate		Commercial Real Estate			Residential Real Estate			Agricultural Real Estate		Consumer and Other		Total
Allowance for loan losses:
Beginning balance, December 31, 2012	$	309,946	$	1,032,053	$	1,047,292		$	284,603		$	0	$	171,009	$	2,844,903
Charge-offs		14,357		0		0			0			0		8,463		22,820
Recoveries		4,763		0		2,000			6,202			0		3,520		16,485
Net charge-offs		9,594		0		(2,000	)		(6,202	)		0		4,943		6,335
Provisions charged to operations		40,090		35,021		53			29,073			0		763		105,000
Balance at end of period, March 31, 2013	$	340,442	$	1,067,074	$	1,049,345		$	319,878		$	0	$	166,829	$	2,943,568
Ending balance -
Individually evaluated for impairment	$	229,354	$	0	$	156,695		$	146,511		$	0	$	0	$	532,560
Collectively evaluated for impairment		111,088		1,067,074		892,650			173,367			0		166,829		2,411,382
Balance at end of period	$	340,442	$	1,067,074	$	1,049,345		$	319,878		$	0	$	166,829	$	2,943,568
Loans :
Ending balance -
Individually evaluated for impairment	$	249,751	$	221,252	$	2,219,814		$	3,926,127		$	115,216	$	11,838	$	6,743,998
Collectively evaluated for impairment		37,736,056		17,049,321		73,578,998			57,774,902			11,331,810		3,572,688		201,043,775
Balance at end of period	$	37,985,807	$	17,270,573	$	75,798,812		$	61,701,029		$	11,447,026	$	3,584,526	$	207,787,773

The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 2012.

	Commercial, Financial, and Agricultural		Construction Real Estate		Commercial Real Estate			Residential Real Estate		Agricultural Real Estate		Consumer and Other		Total
Allowance for loan losses:
Beginning balance, December 31, 2011	$	392,222	$	1,122,650	$	1,046,827		$	365,455	$	0	$	172,846	$	3,100,000
Charge-offs		285,710		248,637		9,439			241,176		0		11,890		796,852
Recoveries		59,909		0		10,716			19,283		0		6,847		96,755
Net charge-offs		225,801		248,637		(1,277	)		221,893		0		5,043		700,097
Provisions charged to operations		143,525		158,040		(812	)		141,041		0		3,206		445,000
Balance at end of period, December 31, 2012	$	309,946	$	1,032,053	$	1,047,292		$	284,603	$	0	$	171,009	$	2,844,903
Ending balance -
Individually evaluated for impairment	$	33,238	$	0	$	70,040		$	137,040	$	0	$	5,493	$	245,811
Collectively evaluated for impairment		276,708		1,032,053		977,252			147,563		0		165,516		2,599,092
Balance at end of period	$	309,946	$	1,032,053	$	1,047,292		$	284,603	$	0	$	171,009	$	2,844,903
Loans :
Ending balance -
Individually evaluated for impairment	$	53,634	$	224,502	$	1,943,134		$	3,778,183	$	74,081	$	10,642	$	6,084,176
Collectively evaluated for impairment		40,453,168		16,764,315		68,116,276			58,655,156		10,095,170		3,998,855		198,082,940
Balance at end of period	$	40,506,802	$	16,988,817	$	70,059,410		$	62,433,339	$	10,169,251	$	4,009,497	$	204,167,116

Impaired Loans With Specific Reserves and Recorded Balance of Related Loans

The following table is a summary of amounts included in the ALL for the impaired loans with specific reserves and the recorded balance of the related loans.

	March 31,		December 31,
	2013		2012
Allowance for loss on impaired loans	$	532,560	$	245,811
Recorded balance of impaired loans	$	2,957,648	$	2,189,199