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Loans and Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2013
Loans and Leases Receivable, Allowance [Abstract]  
Loans and Allowance for Loan Losses

NOTE 4

 

Loans and Allowance for Loan Losses

 

The composition of the Corporation’s loan portfolio and the percentage of loans in each category to total loans at September 30, 2013 and December 31, 2012, was as follows:

 

    September 30, 2013   December 31, 2012
                 
Commercial, financial and agricultural loans   $ 38,163,965       17.2 %   $ 40,506,802       19.8 %
Real estate:                                
Construction loans     20,612,820       9.3 %     16,988,817       8.3 %
Commercial mortgage loans     81,277,953       36.7 %     70,059,410       34.3 %
Residential loans     64,595,499       29.2 %     62,433,339       30.6 %
Agricultural loans     13,402,652       6.0 %     10,169,251       5.0 %
Consumer & other loans     3,468,760       1.6 %     4,009,497       2.0 %
                                 
         Loans outstanding     221,521,649       100.0 %     204,167,116       100.0 %
                                 
Unearned interest and discount     (29,821 )             (30,100 )        
Allowance for loan losses     (3,099,203 )             (2,844,903 )        
       Net loans   $ 218,392,625             $ 201,292,113          

 

The Corporation’s only significant concentration of credit at September 30, 2013, occurred in real estate loans which totaled $179,888,924. However, this amount was not concentrated in any specific segment within the market or geographic area. Average loans outstanding were $221,797,582 for the three months and $212,480,276 for the nine months ended September 30, 2013.

 

Beginning in 2009, certain 1-4 family mortgage loans were pledged to Federal Home Loan Bank to secure outstanding advances. At September 30, 2013, $31,715,369 loans were pledged in this capacity.

 

The following table shows maturities as well as interest sensitivity of the commercial, financial, agricultural, and construction loan portfolio at September 30, 2013.

 

   

Commercial,

Financial,

Agricultural and

Construction

     
Distribution of loans which are due:        
     In one year or less   $ 26,581,471  
     After one year but within five years     28,243,394  
     After five years     3,951,920  
         
          Total   $ 58,776,785  

 

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 September 30, 2013.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
             
Commercial, financial,            
agricultural and construction   $ 31,644,806   $ 550,508   $ 32,195,314

 

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
                         
  September 30, 2013     $ 1,134,004     $ 0     $ 265,384     $ 72,315     $ 1,471,703     $ 581,287  
  December 31, 2012     $ 25,187     $ 0     $ 198,794     $ 372,098     $ 596,079     $ 1,689,861  

 

Appraisal Policy

 

When a loan is first identified as a problem loan, the appraisal is reviewed to determine if the appraised value is still appropriate for the collateral. For the duration that a loan is considered a problem loan, the appraised value of the collateral is monitored on a quarterly basis. If significant changes occur in market conditions or in the condition of the collateral, a new appraisal will be obtained.

 

Nonaccrual Policy

 

The Corporation does not accrue interest on any loan (1) that is maintained on a cash basis due to the deteriorated financial condition of the borrower, (2) for which payment in full of principal or interest is not expected, or (3) upon which principal or interest has been past due for ninety days or more unless the loan is well secured and in the process of collection.

 

A loan subsequently placed on nonaccrual status may be returned to accrual status if (1) all past due interest and principal is paid with expectations of any remaining contractual principal and interest being repaid or (2) the loan becomes well secured and in the process of collection.

 

Loans placed on nonaccrual status amounted to $1,134,004 and $25,187 at September 30, 2013 and December 31, 2012, respectively. There were no past due loans over ninety days and still accruing at September 30, 2013, or December 31, 2012. The accrual of interest is discontinued when the loan is placed on nonaccrual. Interest income that would have been recorded on these nonaccrual loans in accordance with their original terms totaled $5,200 for September 30, 2013, and $0 for December 31, 2012.

 

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 September 30, 2013
    30-89 Days Past Due   Greater than 90 Days   Total Accruing Past Due Loans   Nonaccrual Loans   Current Loans   Total Loans
                         
Commercial, financial and
agricultural loans		   $ 655,948     $ 0     $ 655,948     $ 3,389     $ 37,504,628     $ 38,163,965  
Real estate:                                                
Construction loans     297,887       0       297,887       0       20,314,933       20,612,820  
Commercial mortgage loans     97,577       0       97,577       798,452       80,381,924       81,277,953  
Residential loans     2,196,918       0       2,196,918       148,630       62,249,951       64,595,499  
Agricultural loans     38,547       0       38,547       183,533       13,180,572       13,402,652  
Consumer & other loans     29,022       0       29,022       0       3,439,738       3,468,760  
                                                 
         Total loans   $ 3,315,899     $ 0     $ 3,315,899     $ 1,134,004     $ 217,071,746     $ 221,521,649  

 

    Age Analysis of Past Due Loans
As of December 31, 2012
    30-89 Days Past Due   Greater than 90 Days   Total Accruing 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  

 

Impaired Loans

 

A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

 

At September 30, 2013, and December 31, 2012, impaired loans amounted to $2,833,051 and $2,189,199, respectively. A reserve amount of $376,477 and $245,811 were recorded in the allowance for loan losses for these impaired loans as of September 30, 2013, and December 31, 2012, respectively.

 

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

 

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income
Received
September 30, 2013   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 40,351     $ 0     $ 40,351     $ 40,351     $ 22,142     $ 55,503     $ 3,482  
Real estate:                                                        
Construction loans     0       0       0       0       0       0       0  
Commercial mortgage loans     748,358       318,095       366,907       685,002       84,870       582,228       31,774  
Residential loans     1,900,189       44,519       1,834,758       1,879,277       171,112       1,525,421       106,615  
Agricultural loans     203,171       0       203,171       203,171       98,353       101,864       7,034  
Consumer & other loans     25,250       25,250       0       25,250       0       13,200       1,276  
                                                         
         Total loans   $ 2,917,319     $ 387,864     $ 2,445,187     $ 2,833,051     $ 376,477     $ 2,278,216     $ 150,181  

 

    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  

 

At September 30, 2013, and December 31, 2012, included in impaired loans were $583,478 and $52,190, respectively, of troubled debt restructurings.

 

Troubled Debt Restructurings (TDR)

 

Loans are considered to have been modified in a TDR when due to a borrower’s financial difficulty; the Corporation makes certain concessions to the borrower that it would not otherwise consider for new debt with similar risk characteristics. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower’s specific circumstances at a point in time. Not all loan modifications are TDRs. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period.

 

Loan modifications are reviewed and recommended by the Corporation’s senior credit officer, who determines whether the loan meets the criteria for a TDR. The Loan Committee either approves or denies such requests. Generally, the types of concessions granted to borrowers that are evaluated in determining whether the loan is classified as a TDR include:

 

  · Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not be able to obtain elsewhere under similar circumstances.

 

  · Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral.

 

  · Principal reductions – Arise when the Corporation charge’s off a portion of the principal that is not fully collateralized and collectability is uncertain; however, this portion of principal may be recovered in the future under certain circumstances.

 

The following tables present the amount of troubled debt restructuring by loan class, classified separately as accrual and non-accrual at September 30, 2013, and December 31, 2012, as well as those currently paying under restructured terms and those that have defaulted under restructured terms at September 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.

 

    September 30, 2013
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 36,962     $ 0       1     $ 36,962       0     $ 0  
Real estate:                                                
   Construction loans     0       0       0       0       0       0  
   Commercial mortgage loans     0       318,095       0       0       1       318,095  
   Residential loans     0       0       0       0       0       0  
   Agricultural loans     203,171       0       1       203,171       0       0  
Consumer & other loans     25,251       0       5       25,251       0       0  
Total TDR’s   $ 265,384     $ 318,095       7     $ 265,384       1     $ 318,095  

 

    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  

 

The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and non-accrual at September 30, 2013, and December 31, 2012.

 

    September 30, 2013   December 31, 2012
    Accruing   Non-accruing   Accruing   Non-accruing
    #   Balance   #   Balance   #   Balance   #   Balance
Type of concession:                                                                
Payment modification     1     $ 36,962       0     $ 0       1     $ 39,277       0     $ 0  
Rate reduction     1       4,413       0       0       4       138,435       0       0  
Rate reduction, payment modification     5       224,009       0       0       3       21,082       0       0  
Rate reduction, forbearance of principal     0       0       1       318,095                                  
Total     7     $ 265,384       1     $ 318,095       8     $ 198,794       0     $ 0  

 

As of September 30, 2013, and December 31, 2012, the Corporation had a balance of $583,479 and $198,794, respectively, in troubled debt restructurings. The Corporation had one charge-off of $63,356 on such loans as of September 30, 2013, and no charge-offs as of December 31, 2012. The Corporation’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $117,106 and $18,881 at September 30, 2013, and December 31, 2012, respectively. The Corporation had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of September 30, 2013.

 

Credit Risk Monitoring and Loan Grading

 

The Corporation employs several means to monitor the risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical loss experience and economic conditions.

 

Loans are subject to an internal risk grading system which indicates the risk and acceptability of that loan. The loan grades used by the Corporation are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions.

 

The general characteristics of the risk grades are as follows:

 

Grade 1 – Exceptional – Loans graded 1 are characterized as having a very high credit quality, exhibit minimum risk to the Corporation and have low administrative cost. These loans are usually secured by highly liquid and marketable collateral and a strong primary and secondary source of repayment is available.

 

Grade 2 – Above Average – Loans graded 2 are basically sound credits secured by sound assets and/or backed by the financial strength of borrowers of integrity with a history of satisfactory payments of credit obligations.

 

Grade 3 – Acceptable – Loans graded 3 are secured by sound assets of sufficient value and/or supported by the sufficient financial strength of the borrower. The borrower will have experience in their business area or employed a reasonable amount of time at their current employment. The borrower will have a sound primary source of repayment, and preferably a secondary source, which will allow repayment in a prompt and reasonable period of time.

 

Grade 4 – Fair – Loans graded 4 are those which exhibit some weakness or downward trend in financial condition and although the repayment history is satisfactory, it requires supervision by bank personnel. The borrower may have little experience in their business area or employed only a short amount of time at their current employment. The loan may be secured by good collateral; however, it may require close supervision as to value and/or quality and may not have sufficient liquidation value to completely cover the loan.

 

Grade 5a – Watch – Loans graded 5a contain a discernible weakness; however, the weakness is not sufficiently pronounced so as to cause concern for the possible loss of interest or principal. Loans in this category may exhibit outward signs of stress, such as slowness in financial disclosures or recent payments. However, such signs are not of long duration or of sufficient severity that default appears imminent. Loans in this category are not so deficient as to cause alarm, but do require close monitoring for further deterioration and possible downgrade.

 

Grade 5b – Other Assets Especially Mentioned (OAEM) – Loans graded 5b may otherwise be classified more severely except that the loan is well secured by properly margined collateral, it is generally performing in accordance with the original contract or modification thereof and such performance has seasoned for a period of 90 days, or the ultimate collection of all principal and interest is reasonably expected. Loans in this grade are unsupported by sufficient evidence of the borrower’s sound net worth or repayment capacity or may be subject to third party action that would cause concern for future prompt repayment.

 

Grade 6 – Substandard – Loans graded 6 contain clearly pronounced credit weaknesses that are below acceptable credit standards for the Corporation. Such weaknesses may be due to either collateral deficiencies or inherent financial weakness of the borrower, but in either case represents less than acceptable credit risk. Loans in this grade are unsupported by sufficient evidence of the borrower’s sound net worth, repayment capacity or acceptable collateral.

 

Grade 7 – Doubtful – Loans graded 7 have such a pronounced credit weaknesses that the Corporation is clearly exposed to a significant degree of potential loss of principal or interest. Theses loan generally have a defined weakness which jeopardizes the ultimate repayment of the debt.

 

Grade 8 – Loss – Loans graded 8 are of such deteriorated credit quality that repayment of principal and interest can no longer be considered. These loans are of such little value that their continuance as an active bank asset is not warranted. As of September 30, 2013, all Grade 8 loans have been charged-off.

 

The following tables present internal loan grading by class of loans as of September 30, 2013, and December 31, 2012:

 

September 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   $ 357,960     $ 0     $ 0     $ 28,907     $ 0     $ 314,329     $ 701,196  
Grade 2- Above Avg.     0       1,023,595       0       98,401       400,284       1,617       1,523,897  
Grade 3- Acceptable     27,911,032       7,819,750       32,947,768       36,436,386       7,376,785       2,220,265       114,711,986  
Grade 4- Fair     9,544,995       10,273,618       43,102,798       21,508,632       4,531,273       871,001       89,832,317  
Grade 5a- Watch     134,188       949,473       2,080,697       1,208,883       261,124       27,187       4,661,552  
Grade 5b- OAEM     22,530       248,497       1,711,617       850,910       630,015       3,432       3,467,001  
Grade 6- Substandard     193,260       297,887       1,435,073       4,429,194       203,171       30,929       6,589,514  
Grade 7- Doubtful     0       0       0       34,186       0       0       34,186  
       Total loans   $ 38,163,965     $ 20,612,820     $ 81,277,953     $ 64,595,499     $ 13,402,652     $ 3,468,760     $ 221,521,649  

 

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 allowance for loan losses (ALL) is determined by a calculation based on segmenting the loans into the following categories: (1) impaired loans and nonaccrual loans, (2) loans with a credit risk rating of 5b, 6, 7 or 8, (3) other outstanding loans, and (4) other commitments to lend. In addition, unallocated general reserves are estimated based on migration and economic analysis of the loan portfolio.

 

The ALL is calculated by the addition of the estimated loss derived from each of the above categories. The impaired loans and nonaccrual loans over $50,000 are analyzed on an individual basis to determine if the future collateral value is sufficient to support the outstanding debt of the loan. If an estimated loss is calculated, it is included in the estimated ALL until it is charged to the loan loss reserve. The calculation for loan risk graded 5, 6, 7 or 8, other outstanding loans and other commitments to lend is based on assigning an estimated loss factor based on a twelve quarter rolling historical net loss rate. The estimated requirement for unallocated general reserves from migration and economic analysis is determined by considering (1) trends in asset quality, (2) level and trends in charge-off experience, (3) macro-economic trends and conditions, (4) micro economic trends and conditions and (5) risk profile of lending activities. Within each of these categories, a high risk factor percentage and a low risk factor percentage from a rating of excessive, high, moderate or low will be determined by management and applied to the loan portfolio. This results in a high and low range of the estimated reserves required. By adding the estimated high and low value from the migration and economic analysis to the estimated reserve from the loan portfolio, a high and low range of total estimated loss reserves is obtained. This amount is then compared to the actual amount in the loan loss reserve.

 

The calculation of ALL is performed on a monthly basis and is presented to the Loan Committee and the Board of Directors.

 

The following table details activity in the ALL and loans evaluated for impairment by class of loans for the three and nine month periods ended September 30, 2013. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. The annualized net charge-offs to average loans outstanding ratio was 0.10% for the three months and 0.04% for the nine months ended September 30, 2013.

 

Three months ended September 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,
June 30, 2013		   $ 392,704     $ 1,032,053     $ 1,049,614     $ 286,185     $ 119,522     $ 168,976     $ 3,049,054  
                                                         
Charge-offs     0       0       63,356       0       0       716       64,072  
Recoveries     5,684       0       0       3,431       0       106       9,221  
Net charge-offs     (5,684 )     0       63,356       (3,431 )     0       610       54,851  
Provisions charged to operations     (71,849 )     0       146,030       44,369       (21,169 )     7,619       105,000  
Balance at end of period, September 30, 2013   $ 326,539     $ 1,032,053     $ 1,132,288     $ 333,985     $ 98,353     $ 175,985     $ 3,099,203  

 

Nine months ended September 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       63,356       16,000       0       9,179       102,892  
Recoveries     21,813       0       2,000       13,154       0       5,225       42,192  
Net charge-offs     (7,456 )     0       61,356       2,846       0       3,954       60,700  
Provisions charged to operations     9,137       0       146,352       52,228       98,353       8,930       315,000  
Balance at end of period, September 30, 2013   $ 326,539     $ 1,032,053     $ 1,132,288     $ 333,985     $ 98,353     $ 175,985     $ 3,099,203  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 22,142     $ 0     $ 84,870     $ 171,112     $ 98,353     $ 0     $ 376,477  
Collectively evaluated for impairment     304,397       1,032,053       1,047,418       162,873       0       175,985       2,722,726  
Balance at end of period   $ 326,539     $ 1,032,053     $ 1,132,288     $ 333,985     $ 98,353     $ 175,985     $ 3,099,203  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 40,351     $ 956,325     $ 4,590,794     $ 4,115,190     $ 386,704     $ 25,250     $ 10,114,614  
Collectively evaluated for impairment     38,123,614       19,656,495       76,687,159       60,480,309       13,015,948       3,443,510       211,407,035  
Balance at end of period   $ 38,163,965     $ 20,612,820     $ 81,277,953     $ 64,595,499     $ 13,402,652     $ 3,468,760     $ 221,521,649  

 

 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  

  

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.

 

    September 30,   December 31,
    2013   2012
         
Allowance for loss on impaired loans   $ 376,477     $ 245,811  
Recorded balance of impaired loans   $ 2,833,051     $ 2,189,199  

 

Transfers from Loans

 

Transfers from loans to other real estate owned and repossessed assets are non-cash transactions, and are not included in the statements of cash flow. Such transfers totaled $104,330 and $688,000 for the periods ended September 30, 2013, and 2012, respectively.