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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2015
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, 2015 and December 31, 2014, were as follows:

 

    September 30, 2015   December 31, 2014
                 
Commercial, financial and agricultural loans   $ 51,760,609       21.6 %   $ 47,861,368       21.3 %
Real estate:                                
Construction loans     15,735,675       6.6 %     12,257,185       5.4 %
Commercial mortgage loans     87,000,052       36.4 %     76,915,794       34.3 %
Residential loans     65,416,041       27.4 %     69,304,248       30.9 %
Agricultural loans     16,115,915       6.7 %     14,996,076       6.7 %
Consumer & other loans     3,077,694       1.3 %     3,091,067       1.4 %
                                 
 Loans outstanding     239,105,986       100.0 %     224,425,738       100.0 %
                                 
Unearned interest and discount     (20,206 )             (25,921 )        
Allowance for loan losses     (3,180,110 )             (3,114,151 )        
 Net loans   $ 235,905,670             $ 221,285,666          
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, 2015.

 

   

Commercial,

Financial,

Agricultural and

Construction

     
Distribution of loans which are due:        
 In one year or less   $ 19,712,301  
 After one year but within five years     35,575,228  
 After five years     12,208,755  
         
 Total   $ 67,496,284  
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, 2015.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
             
Commercial, financial,            
agricultural and construction   $ 46,552,102   $ 1,231,881   $ 47,783,983
             
Schedule of 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.

 

    Age Analysis of Past Due Loans
As of September 30, 2015
    30-89 Days Past Due   Greater than 90 Days   Total Past Due Loans   Nonaccrual Loans   Current Loans   Total Loans
                         
Commercial, financial and
agricultural loans		   $ 777,406     $ 0     $ 777,406     $ 45,842     $ 50,937,361     $ 51,760,609  
Real estate:                                                
Construction loans     0       0       0       0       15,735,675       15,735,675  
Commercial mortgage loans     1,160,479       0       1,160,479       0       85,839,573       87,000,052  
Residential loans     1,909,654       0       1,909,654       406,923       63,099,464       65,416,041  
Agricultural loans     0       0       0       906,077       15,209,838       16,115,915  
Consumer & other loans     30,724       0       30,724       0       3,046,970       3,077,694  
                                                 
 Total loans   $ 3,878,263     $ 0     $ 3,878,263     $ 1,358,842     $ 233,868,881     $ 239,105,986  

 

    Age Analysis of Past Due Loans
As of December 31, 2014
    30-89 Days Past Due   Greater than 90 Days   Total Past Due Loans   Nonaccrual Loans   Current Loans   Total Loans
                         
Commercial, financial and
agricultural loans		   $ 518,578     $ 0     $ 518,578     $ 25,500     $ 47,317,290     $ 47,861,368  
Real estate:                                                
Construction loans     233,734       0       233,734       0       12,023,451       12,257,185  
Commercial mortgage loans     517,488       0       517,488       681,360       75,716,946       76,915,794  
Residential loans     534,896       0       534,896       21,796       68,747,556       69,304,248  
Agricultural loans     0       0       0       37,707       14,958,369       14,996,076  
Consumer & other loans     70,142       0       70,142       19,209       3,001,716       3,091,067  
                                                 
 Total loans   $ 1,874,838     $ 0     $ 1,874,838     $ 785,572     $ 221,765,328     $ 224,425,738  
Schedule of Impaired Loans Segregated by Class of Loans

The following tables present impaired loans, segregated by class of loans as of September 30, 2015, and December 31, 2014:

 

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income Received
September 30, 2015   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 170,030     $ 0     $ 170,030     $ 170,030     $ 90,455     $ 301,824     $ 5,956  
Real estate:                                                        
Construction loans     196,735       75,935       0       75,935       0       120,456       11,879  
Commercial mortgage loans     986,671       504,272       482,399       986,671       84,277       1,867,491       44,563  
Residential loans     2,128,527       794,713       1,312,902       2,107,615       99,733       3,884,213       83,305  
Agricultural loans     259,829       259,829       0       259,829       0       579,228       23,390  
Consumer & other loans     5,617       5,617       0       5,617       0       5,416       692  
                                                         
 Total loans   $ 3,747,409     $ 1,640,366     $ 1,965,331     $ 3,605,697     $ 274,465     $ 6,758,628     $ 169,785  

 

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income Received
December 31, 2014   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 202,323     $ 25,500     $ 176,823     $ 202,323     $ 99,067     $ 210,968     $ 12,192  
Real estate:                                                        
Construction loans     208,121       87,321       0       87,321       0       76,555       17,925  
Commercial mortgage loans     1,170,496       0       1,170,496       1,170,496       240,899       1,309,828       49,522  
Residential loans     2,336,711       568,909       1,746,890       2,315,799       129,060       2,232,148       110,730  
Agricultural loans     323,808       148,090       175,718       323,808       9,788       425,865       59,802  
Consumer & other loans     30,953       27,210       0       27,210       0       23,937       1,324  
                                                         
 Total loans   $ 4,272,412     $ 857,030     $ 3,269,927     $ 4,126,957     $ 478,814     $ 4,279,301     $ 251,495  
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 30 days past due.

 

    September 30, 2015
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 0     $ 0       0     $ 0       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     0       0       0       0       0       0  
Consumer & other loans     5,616       0       4       5,616       0       0  
Total TDR’s   $ 5,616     $ 0       4     $ 5,616       0     $ 0  

 

    December 31, 2014
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 31,713     $ 0       1     $ 31,713       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     175,718       0       1       175,718       0       0  
Consumer & other loans     8,001       0       1       868       3       7,133  
Total TDR’s   $ 215,432     $ 0       3     $ 208,299       3     $ 7,133  
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, 2015, and December 31, 2014.

    September 30, 2015   December 31, 2014
    Accruing   Non-accruing   Accruing   Non-accruing
    #   Balance   #   Balance   #   Balance   #   Balance
Type of concession:                                                                
Payment modification     0     $ 0       0     $ 0       1     $ 175,718       0     $ 0  
Rate reduction     0       0       0       0       0       0       0       0  
Rate reduction, payment modification     4       5,616       0       0       4       8,001       0       0  
Forbearance of interest     0       0       0       0       1       31,713       0       0  
Total     4     $ 5,616       0     $ 0       6     $ 215,432       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, 2015, and December 31, 2014:

 

September 30, 2015   Commercial, Financial, and Agricultural   Construction Real Estate   Commercial Real Estate   Residential Real Estate   Agricultural Real Estate   Consumer and Other   Total
Rating:                            
Grade 1- Exceptional   $ 801,554     $ 0     $ 0     $ 26,246     $ 0     $ 422,326     $ 1,250,126  
Grade 2- Above Avg.     0       0       0       10,688       390,476       0       401,164  
Grade 3- Acceptable     26,474,520       5,746,270       26,650,466       31,392,542       10,372,814       1,641,933       102,278,545  
Grade 4- Fair     23,761,279       8,737,482       56,610,340       28,270,458       3,667,515       977,646       122,024,720  
Grade 5a- Watch     132,214       1,106,999       2,320,705       788,597       217,150       6,476       4,572,141  
Grade 5b- OAEM     401,132       0       527,745       1,479,499       392,661       11,074       2,812,111  
Grade 6- Substandard     48,947       144,924       890,796       3,448,011       1,075,299       17,513       5,625,490  
Grade 7- Doubtful     140,963       0       0       0       0       726       141,689  
 Total loans   $ 51,760,609     $ 15,735,675     $ 87,000,052     $ 65,416,041     $ 16,115,915     $ 3,077,694     $ 239,105,986  

 

December 31, 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   $ 926,512     $ 0     $ 0     $ 27,017     $ 0     $ 39,353     $ 992,882  
Grade 2- Above Avg.     0       0       0       89,109       356,081       0       445,190  
Grade 3- Acceptable     28,793,317       3,656,979       28,294,037       34,766,811       10,183,723       2,014,924       107,709,791  
Grade 4- Fair     17,498,283       7,298,860       45,578,932       28,691,419       2,525,044       959,978       102,552,516  
Grade 5a- Watch     392,644       1,135,991       1,411,604       795,450       0       868       3,736,557  
Grade 5b- OAEM     38,414       0       590,011       1,240,299       1,755,510       31,872       3,656,106  
Grade 6- Substandard     212,198       165,355       1,041,210       3,660,179       175,718       44,072       5,298,732  
Grade 7- Doubtful     0       0       0       33,964       0       0       33,964  
 Total loans   $ 47,861,368     $ 12,257,185     $ 76,915,794     $ 69,304,248     $ 14,996,076     $ 3,091,067     $ 224,425,738  
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 nine month period ended September 30, 2015. 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 0.04% for the nine months ended September 30, 2015.

 

Three months ended September 30, 2015:

    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, 2015		   $ 298,548     $ 1,043,083     $ 1,192,098     $ 376,556     $ 86,656     $ 183,200     $ 3,180,141  
                                                         
Charge-offs     42,712       0       0       33,238       0       1,474       77,424  
Recoveries     6,537       0       0       1,786       0       17,770       26,093  
Net charge-offs     36,175       0       0       31,452       0       (16,296 )     51,331  
Provisions charged to operations     36,153       0       0       31,433       0       (16,286 )     51,300  
Balance at end of period, September 30, 2015   $ 298,526     $ 1,043,083     $ 1,192,098     $ 376,537     $ 86,656     $ 183,210     $ 3,180,110  

 

Nine months ended September 30, 2015:

 

    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, 2014   $ 299,850     $ 1,043,083     $ 1,192,098     $ 312,822     $ 86,656     $ 179,642     $ 3,114,151  
                                                         
Charge-offs     109,298       0       0       33,238       0       21,428       163,964  
Recoveries     41,487       0       0       16,693       0       30,443       88,623  
Net charge-offs     67,811       0       0       16,545       0       (9,015 )     75,341  
Provisions charged to operations     66,487       0       0       80,260       0       (5,447 )     141,300  
Balance at end of period, September 30, 2015   $ 298,526     $ 1,043,083     $ 1,192,098     $ 376,537     $ 86,656     $ 183,210     $ 3,180,110  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 90,455     $ 0     $ 84,277     $ 99,733     $ 0     $ 0     $ 274,465  
Collectively evaluated for impairment     208,071       1,043,083       1,107,821       276,804       86,656       183,210       2,905,645  
Balance at end of period   $ 298,526     $ 1,043,083     $ 1,192,098     $ 376,537     $ 86,656     $ 183,210     $ 3,180,110  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 183,193     $ 1,023,852     $ 3,160,521     $ 3,424,634     $ 1,075,300     $ 5,617     $ 8,873,117  
Collectively evaluated for impairment     51,577,416       14,711,823       83,839,531       61,991,407       15,040,615       3,072,077       230,232,869  
Balance at end of period   $ 51,760,609     $ 15,735,675     $ 87,000,052     $ 65,416,041     $ 16,115,915     $ 3,077,694     $ 239,105,986  

 

 

The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 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     37,186       120,800       0       157,744       0       25,647       341,377  
Recoveries     11,957       0       0       30,247       0       5,763       47,967  
Net charge-offs     25,229       120,800       0       127,497       0       19,884       293,410  
Provisions charged to operations     27,533       131,830       0       139,150       9,788       21,699       330,000  
Balance at end of period, December 31, 2014   $ 299,850     $ 1,043,083     $ 1,192,098     $ 312,822     $ 86,656     $ 179,642     $ 3,114,151  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 99,067     $ 0     $ 240,899     $ 129,060     $ 9,788     $ 0     $ 478,814  
Collectively evaluated for impairment     200,783       1,043,083       951,199       183,762       76,868       179,642       2,635,337  
Balance at end of period   $ 299,850     $ 1,043,083     $ 1,192,098     $ 312,822     $ 86,656     $ 179,642     $ 3,114,151  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 202,323     $ 1,066,771     $ 2,623,475     $ 3,415,987     $ 1,317,256     $ 27,210     $ 8,653,022  
Collectively evaluated for impairment     47,659,045       11,190,414       74,292,319       65,888,261       13,678,820       3,063,857       215,772,716  
Balance at end of period   $ 47,861,368     $ 12,257,185     $ 76,915,794     $ 69,304,248     $ 14,996,076     $ 3,091,067     $ 224,425,738