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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 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 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          
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 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  
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 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
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
                         
  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  
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 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  
Schedule of Impaired Loans Segregated by Class of Loans

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  
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.

 

    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  
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 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  
Schedule of Internal Loan Grading By Class of Loans

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  
Schedule of Allowance For Loan Losses Methodology

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  
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.

 

    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