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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2014
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, 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          
Past Due Loans And Nonaccrual Loans

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  
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, 2014.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
                     
Commercial, financial, agricultural and construction   $ 43,481,796     $ 3,901,660     $ 47,838,456  
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 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  
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, 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  
Schedule of Impaired Loans Segregated by Class of Loans

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  
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, 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  
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, 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  
Schedule of Internal Loan Grading By Class of Loans

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  
Schedule of Allowance For Loan Losses Methodology

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