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Loans and Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2014
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 June 30, 2014 and December 31, 2013, were as follows:

  

    June 30, 2014   December 31, 2013
                 
Commercial, financial and agricultural loans   $ 46,828,060       20.6 %   $ 43,674,774       20.0 %
Real estate:                                
Construction loans     15,315,160       6.7 %     15,858,863       7.2 %
Commercial mortgage loans     81,544,240       35.9 %     78,722,646       36.0 %
Residential loans     66,785,389       29.4 %     64,382,656       29.4 %
Agricultural loans     13,631,032       6.0 %     12,605,851       5.8 %
Consumer & other loans     3,194,460       1.4 %     3,469,059       1.6 %
                                 
        Loans outstanding     227,298,341       100.0 %     218,713,849       100.0 %
                                 
Unearned interest and discount     (25,760 )             (25,941 )        
Allowance for loan losses     (3,126,754 )             (3,077,561 )        
      Net loans   $ 224,145,827             $ 215,610,347          

 

The Corporation’s only significant concentration of credit at June 30, 2014, occurred in real estate loans which totaled $177,275,821. However, this amount was not concentrated in any specific segment within the market or geographic area.

 

Beginning in 2009, certain 1-4 family mortgage loans were pledged to Federal Home Loan Bank to secure outstanding advances. At June 30, 2014, $35,263,098 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 June 30, 2014.

 

     

Commercial,

Financial,

Agricultural and

Construction

  
         
Distribution of loans which are due:        
    In one year or less   $ 14,759,764  
    After one year but within five years     44,547,544  
    After five years     2,835,912  
         
         Total   $ 62,143,220  

 

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, 2014.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
                     
Commercial, financial, agricultural and construction   $ 43,481,796     $ 3,901,660     $ 47,838,456  
                         

 

 

 

The following table presents information concerning outstanding balances of nonaccrual and accruing loans for 30 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, 2014     $ 1,006,183     $ 0     $ 237,793     $ 2,081,950     $ 3,325,926     $ 437,736  
December 31, 2013     $ 912,785     $ 0     $ 255,699     $ 672,255     $ 1,840,739     $ 405,508  

 

 

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 $1,006,183 and $912,785 at June 30, 2014, and December 31, 2013, respectively. There were no past due loans over ninety days and still accruing at June 30, 2014, or December 31, 2013. 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 $17,631 for June 30, 2014, and $6,195 for December 31, 2013.

 

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, 2014
    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		   $ 145,041     $ 0     $ 145,041     $ 30,021     $ 46,652,998     $ 46,828,060  
Real estate:                                                
Construction loans     79,317       0       79,317       0       15,235,843       15,315,160  
Commercial mortgage loans     430,564       0       430,564       949,434       80,164,242       81,544,240  
Residential loans     901,140       0       901,140       0       65,884,249       66,785,389  
Agricultural loans     37,862       0       37,862       0       13,593,170       13,631,032  
Consumer & other loans     74,179       0       74,179       26,728       3,093,553       3,194,460  
                                                 
        Total loans   $ 1,668,103     $ 0     $ 1,668,103     $ 1,006,183     $ 224,624,055     $ 227,298,341  

   

    Age Analysis of Past Due Loans
As of December 31, 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		   $ 171,713     $ 0     $ 171,713     $ 36,893     $ 43,466,168     $ 43,674,774  
Real estate:                                                
Construction loans     3,383,103       0       3,383,103       215,804       12,259,956       15,858,863  
Commercial mortgage loans     199,323       0       199,323       484,222       78,039,101       78,722,646  
Residential loans     2,959,263       0       2,959,263       167,614       61,255,779       64,382,656  
Agricultural loans     38,166       0       38,166       0       12,567,685       12,605,851  
Consumer & other loans     35,303       0       35,303       8,252       3,425,504       3,469,059  
                                                 
Total loans   $ 6,786,871     $ 0     $ 6,786,871     $ 912,785     $ 211,014,193     $ 218,713,849  

 

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 June 30, 2014, and December 31, 2013, impaired loans amounted to $4,776,409 and $2,997,359, respectively. A reserve amount of $348,199 and $469,302 were recorded in the allowance for loan losses for these impaired loans as of June 30, 2014, and December 31, 2013, respectively.

 

The following tables present impaired loans, segregated by class of loans as of June 30, 2014, and December 31, 2013:

 

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income Received
June 30, 2014   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 207,078     $ 25,500     $ 181,578     $ 207,078       79,617     $ 114,625     $ 4,176  
Real estate:                                                        
Construction loans     212,065       91,265       0       91,265       0       34,006       13,402  
Commercial mortgage loans     1,442,866       949,434       493,432       1,442,866       95,310       781,196       18,308  
Residential loans     1,723,656       0       1,702,744       1,702,744       113,117       2,166,681       50,198  
Agricultural loans     1,289,494       1,103,831       185,663       1,289,494       60,155       503,982       56,517  
Consumer & other loans     42,962       42,962       0       42,962       0       24,669       782  
                                                         
Total loans   $ 4,918,121     $ 2,212,992     $ 2,563,417     $ 4,776,409     $ 348,199     $ 3,625,159       143,383  

 

 

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income Received
December 31, 2013   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 56,429     $ 0     $ 56,429     $ 56,429     $ 38,219     $ 63,317     $ 2,301  
Real estate:                                                        
Construction loans     0       0       0       0       0       0       0  
Commercial mortgage loans     894,722       118,537       712,829       831,366       221,512       454,169       19,285  
Residential loans     1,940,949       167,614       1,722,330       1,889,944       132,703       1,982,756       81,454  
Agricultural loans     197,398       0       197,398       197,398       76,868       148,725       9,198  
Consumer & other loans     22,222       22,222       0       22,222       0       17,473       1,451  
                                                         
Total loans   $ 3,111,720     $ 308,373     $ 2,688,986     $ 2,997,359     $ 469,302     $ 2,666,440     $ 113,689  

 

At June 30, 2014, and December 31, 2013, included in impaired loans were $237,793 and $374,236, 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 June 30, 2014, and December 31, 2013, as well as those currently paying under restructured terms and those that have defaulted under restructured terms at June 30, 2014, and December 31, 2013. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 30 days past due.

 

    June 30, 2014
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 33,936     $ 0       1     $ 33,936       0     $ 0  
Real estate:                                                
Construction loans     0       0       0       0       0       0  
Commercial mortgage loans     0       0       0       0       0       0  
Residential loans     0       0       0       0       0       0  
Agricultural loans     187,622       0       1       187,622       0       0  
Consumer & other loans     16,235       0       1       2,503       4       13,732  
Total TDR’s   $ 237,793     $ 0       3     $ 224,061       4     $ 13,732  

 

    December 31, 2013
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 36,079     $ 0       1     $ 36,079       0     $ 0  
Real estate:                                                
Construction loans     0       0       0       0       0       0  
Commercial mortgage loans     0       118,537       0       0       1       118,537  
Residential loans     0       0       0       0       0       0  
Agricultural loans     197,398       0       1       197,398       0       0  
Consumer & other loans     22,222       0       5       22,222       0       0  
Total TDR’s   $ 255,699     $ 118,537       7     $ 255,699       1     $ 118,537  

 

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, 2014, and December 31, 2013.

 

    June 30, 2014   December 31, 2013
    Accruing   Non-accruing   Accruing   Non-accruing
    #   Balance   #   Balance   #   Balance   #   Balance
Type of concession:                                                                
Forbearance of interest     1     $ 33,936       0     $ 0       0     $ 0       1     $ 118,537  
Payment modification     1       187,622       0       0       1       36,079       0       0  
Rate reduction     4       12,776       0       0       1       4,131       0       0  
Rate reduction, payment modification     1       3,459       0       0       5       215,489       0       0  
Total     7     $ 237,793       0     $ 0       7     $ 255,699       1     $ 118,537  

 

As of June 30, 2014, and December 31, 2013, the Corporation had a balance of $237,793 and $374,236, respectively, in troubled debt restructurings. The Corporation had no charge-offs on such loans as of June 30, 2014, and $211,829 at December 31, 2013. The Corporation’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $76,821 and $94,737 at June 30, 2014, and December 31, 2013, respectively. The Corporation had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of June 30, 2014.

 

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 June 30, 2014, all Grade 8 loans have been charged-off.

 

The following tables present internal loan grading by class of loans as of June 30, 2014, and December 31, 2013:

 

June 30, 2014   Commercial, Financial, and Agricultural   Construction Real Estate   Commercial Real Estate   Residential Real Estate   Agricultural Real Estate   Consumer and Other   Total
Rating:                                                        
Grade 1- Exceptional   $ 298,051     $ 0     $ 0     $ 27,580     $ 0     $ 371,375     $ 697,006  
Grade 2- Above Avg.     0       86,013       0       92,926       374,899       0       553,838  
Grade 3- Acceptable     34,101,434       5,326,167       33,752,680       34,726,198       7,767,979       1,911,435       117,585,893  
Grade 4- Fair     11,775,027       8,759,689       43,608,358       25,552,634       3,368,249       809,581       93,873,538  
Grade 5a- Watch     392,495       933,671       1,967,690       831,711       1,264,312       2,502       5,392,381  
Grade 5b- OAEM     38,598       0       134,484       1,402,937       669,930       51,845       2,297,794  
Grade 6- Substandard     222,455       209,620       2,081,028       4,116,805       185,663       39,470       6,855,041  
Grade 7- Doubtful     0       0       0       34,598       0       8,252       42,850  
      Total loans   $ 46,828,060     $ 15,315,160     $ 81,544,240     $ 66,785,389     $ 13,631,032     $ 3,194,460     $ 227,298,341  

  

December 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   $ 377,030     $ 0     $ 0     $ 28,675     $ 0     $ 367,222     $ 772,927  
Grade 2- Above Avg.     14,500       635,975       0       96,613       383,104       408       1,130,600  
Grade 3- Acceptable     31,122,794       4,835,273       33,044,849       34,569,435       7,175,714       2,183,886       112,931,951  
Grade 4- Fair     11,800,838       8,866,362       40,678,393       23,093,070       4,017,325       844,609       89,300,597  
Grade 5a- Watch     127,359       936,550       2,060,701       1,091,573       164,132       13,523       4,393,838  
Grade 5b- OAEM     39,994       248,497       1,702,801       598,666       668,181       20,108       3,278,247  
Grade 6- Substandard     192,259       336,206       1,235,902       4,869,802       197,397       39,303       6,870,869  
Grade 7- Doubtful     0       0       0       34,820       0       0       34,820  
Total loans   $ 43,674,774     $ 15,858,863     $ 78,722,646     $ 64,382,654     $ 12,605,853     $ 3,469,059     $ 218,713,849  

 

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 six month periods ended June 30, 2014. 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 0.2% for the six months ended June 30, 2014.

  

Three months ended June 30, 2014:

 

    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, 2014		   $ 297,718     $ 1,085,716     $ 1,131,001     $ 312,280     $ 69,069     $ 177,678     $ 3,073,462  
                                                         
Charge-offs     0       0       0       26,266       0       1,436       27,702  
Recoveries     1,467       0       0       3,800       0       726       5,993  
Net charge-offs     (1,467 )     0       0       22,466       0       710       21,709  
Provisions charged to operations     (4,320 )     0       61,097       16,397       (1,115 )     2,942       75,000  
Balance at end of period, June 30, 2014   $ 294,865     $ 1,085,716     $ 1,192,098     $ 306,211     $ 67,954     $ 179,910     $ 3,126,754  
                                                         

 

Six months ended June 30, 2014:

 

    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, 2013   $ 297,546     $ 1,032,053     $ 1,192,098     $ 301,169     $ 76,868     $ 177,827     $ 3,077,561  
                                                         
Charge-offs     0       120,800       0       26,266       0       5,556       152,622  
Recoveries     6,036       0       0       14,912       0       867       21,815  
Net charge-offs     (6,036 )     120,800       0       11,354       0       4,689       130,807  
Provisions charged to operations     (8,717 )     174,463       0       16,396       (8,914 )     6,772       180,000  
Balance at end of period, June 30, 2014   $ 294,865     $ 1,085,716     $ 1,192,098     $ 306,211     $ 67,954     $ 179,910     $ 3,126,754  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 79,617     $ 0     $ 95,310     $ 113,117     $ 60,155     $ 0     $ 348,199  
Collectively evaluated for impairment     215,248       1,085,716       1,096,788       193,094       7,799       179,910       2,778,555  
Balance at end of period   $ 294,865     $ 1,085,716     $ 1,192,098     $ 306,211     $ 67,954     $ 179,910     $ 3,126,754  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 210,878     $ 1,086,447     $ 3,574,579     $ 4,037,748     $ 1,487,878     $ 45,344     $ 10,442,874  
Collectively evaluated for impairment     46,617,182       14,228,713       77,969,661       62,747,641       12,143,154       3,149,116       216,855,467  
Balance at end of period   $ 46,828,060     $ 15,315,160     $ 81,544,240     $ 66,785,389     $ 13,631,032     $ 3,194,460     $ 227,298,341  

 

 

The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 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     17,746       0       160,824       46,093       0       9,179       233,842  
Recoveries     23,187       0       4,497       13,154       0       5,662       46,500  
Net charge-offs     (5,441 )     0       156,327       32,939       0       3,517       187,342  
Provisions charged to operations     (17,841 )     0       301,133       49,505       76,868       10,335       420,000  
Balance at end of period, December 31, 2013   $ 297,546     $ 1,032,053     $ 1,192,098     $ 301,169     $ 76,868     $ 177,827     $ 3,077,561  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 38,219     $ 0     $ 221,512     $ 132,703     $ 76,868     $ 0     $ 469,302  
Collectively evaluated for impairment     259,327       1,032,053       970,586       168,466       0       177,827       2,608,259  
Balance at end of period   $ 297,546     $ 1,032,053     $ 1,192,098     $ 301,169     $ 76,868     $ 177,827     $ 3,077,561  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 72,971     $ 944,387     $ 4,372,425     $ 4,256,508     $ 380,931     $ 30,474     $ 10,057,696  
Collectively evaluated for impairment     43,601,803       14,914,476       74,350,221       60,126,148       12,224,920       3,438,585       208,656,153  
Balance at end of period   $ 43,674,774     $ 15,858,863     $ 78,722,646     $ 64,382,656     $ 12,605,851     $ 3,469,059     $ 218,713,849  

 

 

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 $260,548 and $104,330 for the periods ending June 30, 2014, and 2013, respectively.