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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2013 and December 31, 2012, was as follows:

 

                 
    June 30, 2013   December 31, 2012
                 
Commercial, financial and agricultural loans   $ 38,165,726       17.4 %   $ 40,506,802       19.8 %
Real estate:                                
Construction loans     20,540,284       9.4 %     16,988,817       8.3 %
Commercial mortgage loans     80,147,221       36.5 %     70,059,410       34.3 %
Residential loans     63,665,870       29.0 %     62,433,339       30.6 %
Agricultural loans     13,293,358       6.1 %     10,169,251       5.0 %
Consumer & other loans     3,602,957       1.6 %     4,009,497       2.0 %
                                 
        Loans outstanding     219,415,416       100.0 %     204,167,116       100.0 %
                                 
Unearned interest and discount     (29,977 )             (30,100 )        
Allowance for loan losses     (3,049,055 )             (2,844,903 )        
      Net loans   $ 216,336,384             $ 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 June 30, 2013.

 

   

Commercial,

Financial,

Agricultural and

Construction

     
Distribution of loans which are due:        
    In one year or less   $ 20,595,634  
    After one year but within five years     32,271,178  
    After five years     5,839,198  
         
         Total   $ 58,706,010  
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 June 30, 2013.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
                     
Commercial, financial,                    
agricultural and construction   $ 34,962,136     $ 3,148,240   $ 38,110,376  
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
                         
  June 30, 2013     $ 749,359     $ 0     $ 274,856     $ 170,535     $ 1,194,750     $ 1,068,839  
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 June 30, 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		   $ 208,615     $ 0     $ 208,615     $ 0     $ 37,957,111     $ 38,165,726  
Real estate:                                                
Construction loans     219,369       0       219,369       0       20,320,915       20,540,284  
Commercial mortgage loans     171,714       0       171,714       749,359       79,226,148       80,147,221  
Residential loans     1,074,457       0       1,074,457       0       62,591,413       63,665,870  
Agricultural loans     186,968       0       186,968       0       13,106,390       13,293,358  
Consumer & other loans     24,419       0       24,419       0       3,578,538       3,602,957  
                                                 
        Total loans   $ 1,885,542     $ 0     $ 1,885,542     $ 749,359     $ 216,780,515     $ 219,415,416  

 

    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 Segregated by Class of Loans

The following tables present impaired loans, segregated by class of loans as of June 30, 2013, and December 31, 2012:

 

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income
Received
June 30, 2013   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 37,839     $ 0     $ 37,839     $ 37,839     $ 19,629     $ 47,273     $ 2,859  
Real estate:                                                        
Construction loans     0       0       0       0       0       0       0  
Commercial mortgage loans     749,359       0       749,359       749,359       149,315       472,957       26,987  
Residential loans     1,626,012       551,503       1,053,597       1,605,100       145,347       1,317,678       91,903  
Agricultural loans     208,862       0       208,862       208,862       119,522       52,072       4,783  
Consumer & other loans     28,155       28,155       0       28,155       0       7,326       909  
                                                         
        Total loans   $ 2,650,227     $ 579,658     $ 2,049,657     $ 2,629,315     $ 433,813     $ 1,897,306     $ 127,441  

  

    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

The following tables present the amount of troubled debt restructuring by loan class, classified separately as accrual and non-accrual at June 30, 2013, and December 31, 2012, as well as those currently paying under restructured terms and those that have defaulted under restructured terms at June 30, 2013, and December 31, 2012. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 90 days past due.

 

    June 30, 2013
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 37,839     $ 0       1     $ 37,839       0     $ 0  
Real estate:                                                
Construction loans     0       0       0       0       0       0  
Commercial mortgage loans     0       381,160       0       0       1       381,160  
Residential loans     0       0       0       0       0       0  
Agricultural loans     208,862       0       1       208,862       0       0  
Consumer & other loans     28,155       0       5       28,155       0       0  
Total TDR’s   $ 274,856     $ 381,160       7     $ 274,856       1     $ 381,160  

 

    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 June 30, 2013, and December 31, 2012.

 

    June 30, 2013   December 31, 2012
    Accruing   Non-accruing   Accruing   Non-accruing
    #   Balance   #   Balance   #   Balance   #   Balance
Type of concession:                                                                
Payment modification     1     $ 37,839       0     $ 0       1     $ 39,277       0     $ 0  
Rate reduction     1       4,600       0       0       4       138,435       0       0  
Rate reduction, payment modification     5       232,417       0       0       3       21,082       0       0  
Rate reduction, forbearance of principal     0       0       1       381,160                                  
Total     7     $ 274,856       1     $ 381,160       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 June 30, 2013, and December 31, 2012:

 

June 30, 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   $ 148,481     $ 0     $ 0     $ 29,134     $ 0     $ 266,511     $ 444,126  
Grade 2- Above Avg.     0       1,042,173       0       113,910       400,284       3,210       1,559,577  
Grade 3- Acceptable     29,438,509       8,526,405       34,470,429       36,516,695       7,068,077       2,387,051       118,407,166  
Grade 4- Fair     8,199,027       9,718,650       40,378,965       20,517,999       4,907,494       860,905       84,583,040  
Grade 5a- Watch     164,873       952,109       2,099,933       1,151,449       264,289       36,880       4,669,533  
Grade 5b- OAEM     8,821       0       1,681,089       967,044       444,352       15,406       3,116,712  
Grade 6- Substandard     206,015       300,947       1,516,805       4,334,784       208,862       32,994       6,600,407  
Grade 7- Doubtful     0       0       0       34,855       0       0       34,855  
                                                         
      Total loans   $ 38,165,726     $ 20,540,284     $ 80,147,221     $ 63,665,870     $ 13,293,358     $ 3,602,957     $ 219,415,416  

  

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  
Schedule of Allowance For Loan Losses Methodology

The annualized net charge-offs to average loans outstanding ratio was 0.00% for the three months and 0.01% for the six months ended June 30, 2013.

 

Three months ended June 30, 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,
March 31, 2013		   $ 340,442     $ 1,067,074     $ 1,049,345     $ 319,878     $ 0     $ 166,829     $ 2,943,568  
                                                         
Charge-offs     0       0       0       16,000       0       0       16,000  
Recoveries     11,366       0       0       3,520       0       1,600       16,486  
Net charge-offs     (11,366 )     0       0       12,480       0       (1,600 )     (486 )
Provisions charged to operations     40,896       (35,021 )     269       (21,213 )     119,522       547       105,000  
Balance at end of period, June 30, 2013   $ 392,704     $ 1,032,053     $ 1,049,614     $ 286,185     $ 119,522     $ 168,976     $ 3,049,054  

 

Six months ended June 30, 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       16,000       0       8,463       38,820  
Recoveries     16,129       0       2,000       9,723       0       5,119       32,971  
Net charge-offs     (1,772 )     0       (2,000 )     6,277       0       3,344       5,849  
Provisions charged to operations     80,986       0       322       7,859       119,522       1,311       210,000  
Balance at end of period, June 30, 2013   $ 392,704     $ 1,032,053     $ 1,049,614     $ 286,185     $ 119,522     $ 168,976     $ 3,049,054  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 19,629     $ 0     $ 149,315     $ 145,347     $ 119,522     $ 0     $ 433,813  
Collectively evaluated for impairment     373,075       1,032,053       900,299       140,838       0       168,976       2,615,241  
Balance at end of period   $ 392,704     $ 1,032,053     $ 1,049,614     $ 286,185     $ 119,522     $ 168,976     $ 3,049,054  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 37,839     $ 878,088     $ 3,682,950     $ 3,747,206     $ 208,862     $ 28,155     $ 8,583,100  
Collectively evaluated for impairment     38,127,887       19,662,196       76,464,271       59,918,664       13,084,496       3,574,802       210,832,316  
Balance at end of period   $ 38,165,726     $ 20,540,284     $ 80,147,221     $ 63,665,870     $ 13,293,358     $ 3,602,957     $ 219,415,416  

 

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.

 

    June 30,   December 31,
    2013   2012
                 
Allowance for loss on impaired loans   $ 433,813     $ 245,811  
Recorded balance of impaired loans   $ 2,629,315     $ 2,189,199