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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [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, 2018 and December 31, 2017, were as follows:

           
  September 30, 2018   December 31, 2017
           
Commercial, financial and agricultural loans $   87,717,667   23.9%   $  73,146,397   22.2%
Real estate:          
Construction loans 30,799,672 8.4%   22,287,012 6.8%
Commercial mortgage loans 105,935,188 28.9%   106,458,342 32.2%
Residential loans 104,797,473 28.6%   99,159,607 30.0%
Agricultural loans 32,234,234 8.8%   25,373,621 7.7%
Consumer & other loans      5,177,979     1.4%       3,766,332 1.1%
           
         Loans outstanding 366,662,213 100.0%   330,191,311 100.0%
           
Unearned interest and discount (         17,490)     (        17,921)  
Allowance for loan losses (    3,078,098)     (   3,043,632)  
       Net loans $ 363,566,625     $ 327,129,758  
Summary of Maturities of Loan Portfolio

The following table shows maturities of the commercial, financial, agricultural, and construction loan portfolio at September 30, 2018.

 

 

  

Commercial,

Financial,

Agricultural and

Construction

  
       
Distribution of loans which are due:      
     In one year or less $   32,541,661  
     After one year but within five years   57,128,967  
     After five years    28,846,711  
       
          Total $    118,517,339  
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, 2018.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
             
Commercial, financial,            
agricultural and construction   $ 82,364,691   $ 3,610,987   $ 85,975,678
Schedule of Past Due Loans and Nonaccrual Loans

The following tables present an age analysis of past due loans still accruing interest and nonaccrual loans segregated by class of loans.

 

 

Age Analysis of Past Due Loans

As of September 30, 2018

  30-89 Days Past Due  90 Days or Greater Total Past Due Loans Nonaccrual Loans Current Loans Total Loans
             

Commercial, financial and

agricultural loans

 $   517,622 $         0 $   517,622  $    225,511   $  86,974,534 $  87,717,667
Real estate:            
Construction loans    314,468 0 314,468 189,830 30,295,374 30,799,672
Commercial mortgage loans 200,614 0 200,614 1,022,550 104,712,024 105,935,188
Residential loans 472,119 0 472,119 275,430 104,049,924 104,797,473
Agricultural loans 0 0 0 332,679 31,901,555 32,234,234
Consumer & other loans      21,776          0      21,776      77,416     5,078,787     5,177,979
             
         Total loans $ 1,526,599 $         0 $ 1,526,599   $ 2,123,416 $363,012,198 $366,662,213

 

 

Age Analysis of Past Due Loans

As of December 31, 2017

  30-89 Days Past Due

90 Days

or Greater

 Total Past Due Loans Nonaccrual Loans Current Loans Total Loans
             

Commercial, financial and

agricultural loans

 $   364,527 $     0 $   364,527  $    394,455   $ 72,387,415 $ 73,146,397
Real estate:            
Construction loans    198,861 0    198,861 0 22,088,151 22,287,012
Commercial mortgage loans 645,214 0 645,214 757,085 105,056,043 106,458,342
Residential loans 2,023,517 0 2,023,517 518,301 96,617,789 99,159,607
Agricultural loans 0 0 0 0 25,373,621 25,373,621
Consumer & other loans      30,033          0      30,033        4,815     3,731,484     3,766,332
             
         Total loans $3,262,152 $     0 $3,262,152   $1,674,656 $325,254,503 $330,191,311
Schedule of Impaired Loans Segregated by Class of Loans

The following tables present impaired loans, segregated by class of loans as of September 30, 2018, and December 31, 2017:

 

  Unpaid Recorded Investment  

Year-to-date

Average

Interest

Income Received

September 30, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment
               

Commercial, financial and

agricultural loans

 $1,263,609 $   291,049 $   640,388 $ 931,437 $319,392 $    283,622 $  31,832
Real estate:              
Construction loans 413,803 293,003 0 293,003 0 254,788 17,823
Commercial mortgage loans 1,791,395 1,279,924 335,669 1,615,593 53,632 1,348,557 37,349
Residential loans 2,046,205 520,694 1,504,599 2,025,293 253,824 1,888,312 100,152
Agricultural loans 345,405 345,405 0 345,405 0 13,454 5,260
Consumer & other loans      14,506             31      14,475      14,506     1,604       14,506        688
               
         Total loans $5,874,923 $2,730,106 $2,495,131 $5,225,237 $628,452 $ 3,803,239 $193,104

 

  Unpaid Recorded Investment  

Year-to-date

Average

Interest

Income Received

December 31, 2017 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment
               

Commercial, financial and

agricultural loans

 $   459,003 $   208,032 $   250,971 $   459,003 $    44,468 $    169,930 $ 10,920
Real estate:              
Construction loans 549,599 428,799 0 428,799 0 162,698 24,487
Commercial mortgage loans 1,615,811 1,107,654 339,440 1,447,094 57,403 1,071,663 54,582
Residential loans 2,476,728 316,230 2,079,823 2,396,053 224,916 2,233,562 108,472
Agricultural loans 142,966 142,966 0 142,966 0 142,966 8,198
Consumer & other loans      21,815           846      20,969      21,815     4,992         9,003        521
               
         Total loans $5,265,922 $2,204,527 $2,691,203 $4,895,730 $331,779 $ 3,789,822 $207,180
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 or more days past due.

  September 30, 2018
            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   2,293   0   1   2,293   0   0
   Agricultural loans   0   0   0   0   0   0
Consumer & other loans   31   0   1   31   0   0
Total TDR’s $ 2,324 $ 0   2 $ 2,324   0 $ 0

 

  December 31, 2017
            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   3,397   0   1   3,397   0   0
   Agricultural loans   0   0   0   0   0   0
Consumer & other loans   846   0   1   846   0   0
Total TDR’s $ 4,243 $ 0   2 $ 4,243   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, 2018, and December 31, 2017.

    September 30, 2018   December 31, 2017
    Accruing   Nonaccruing   Accruing   Nonaccruing
    #   Balance   #   Balance   #   Balance   #   Balance
Type of concession:                                
Payment modification   0 $ 0   0 $ 0   0 $ 0   0 $ 0
Rate reduction   0   0   0   0   0   0   0   0
Rate reduction, payment modification   2   2,324   0   0   2   4,243   0   0
Forbearance of interest   0   0   0   0   0   0   0   0
Total   2 $ 2,324   0 $ 0   2 $ 4,243   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, 2018, and December 31, 2017:

 

September 30, 2018 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total
Rating:              
Grade 1- Exceptional $  1,154,573 $                0   $                  0 $         23,162 $                0 $    224,196 $    1,401,931
Grade 2- Above Avg. 0 0 0 0 0 47,124 47,124
Grade 3- Acceptable 24,816,412 2,808,071 29,509,132 25,720,496 17,661,087 1,279,310 101,794,508
Grade 4- Fair 56,818,038 27,698,598 71,453,241 74,159,559 14,240,468 3,595,146 247,965,050
Grade 5a- Watch 439,329 0 349,677 943,656 0 16,242 1,748,904
Grade 5b- OAEM 3,120,647 0 467,918 1,312,638 0 31 4,901,234
Grade 6- Substandard 995,450 293,003 4,155,220 2,637,962 332,679 15,930 8,430,244
Grade 7- Doubtful      373,218                 0                 0                   0                 0               0        373,218
       Total loans $87,717,667 $30,799,672 $105,935,188 $104,797,473 $32,234,234 $5,177,979 $366,662,213

 

December 31, 2017 Commercial, Financial, and Agricultural Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total
Rating:              
Grade 1- Exceptional $  1,371,135 $                0   $                  0 $       23,919 $                0 $    325,236 $    1,720,290
Grade 2- Above Avg. 0 0 0 0 0 51,421 51,421
Grade 3- Acceptable 27,024,359 2,085,620 30,090,030 26,304,640 11,071,244 866,455 97,442,348
Grade 4- Fair 42,821,117 19,772,593 70,518,545 68,103,351 13,781,326 2,494,509 217,491,441
Grade 5a- Watch 120,626 0 1,027,581 757,628 39,344 7,572 1,952,751
Grade 5b- OAEM 557,070 0 3,073,051 1,226,841 338,741 1,357 5,197,060
Grade 6- Substandard 945,238 428,799 1,749,135 2,743,228 142,966 19,782 6,029,148
Grade 7- Doubtful      306,852                 0                 0                 0                 0               0        306,852
       Total loans $73,146,397 $22,287,012 $106,458,342 $99,159,607 $25,373,621 $3,766,332 $330,191,311
Schedule of Allowance for Loan Losses Methodology

The annualized net charge-offs to average loans outstanding ratio was 0.22% for the nine months ended September 30, 2018, compared with 0.12% at December 31, 2017.

 

 Three months ended September 30, 2018:

  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, 2018

 $     437,661 $     938,690 $  1,084,477 $     445,196 $       91,022 $   195,651 $    3,192,697
               
Charge-offs 315,792 0 43,349 0 0 6,843 365,984
Recoveries          2,184                 0                  0                0                0           201            2,385
Net charge-offs 313,608 0 43,349 0 0 6,642 363,599
Provisions charged to operations       225,030            342       18,936          3,018        (524)        2,198        249,000
Balance at end of period, September 30, 2018 $     349,083 $     939,032 $  1,060,064 $     448,214 $     90,498 $   191,207 $    3,078,098
               

Nine months ended September 30, 2018:

September 30, 2018   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, 2017   $ 324,260     $ 1,043,083     $ 1,056,595     $ 416,474     $ 11,560     $ 191,660     $ 3,043,632  
                                                         
Charge-offs     524,620       783       43,349       6,909       0       6,844       582,505  
Recoveries     9,460       0       0       0       1,200       1,811       12,471  
Net charge-offs     515,160       783       43,349       6,909       (1,200 )     5,033       570,034  
Provisions charged to operations     539,983       (103,268 )     46,818       38,649       77,738       4,580       604,500  
Balance at end of period, September 30, 2018   $ 349,083     $ 939,032     $ 1,060,064     $ 448,214     $ 90,498     $ 191,207     $ 3,078,098  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 319,392     $ 0     $ 53,632     $ 253,824     $ 0     $ 1,604     $ 628,452  
Collectively evaluated for impairment     29,691       939,032       1,006,432       194,390       90,498       189,603       2,449,646  
Balance at end of period   $ 349,083     $ 939,032     $ 1,060,064     $ 448,214     $ 90,498     $ 191,207     $ 3,078,098  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 931,437     $ 293,003     $ 1,615,593     $ 2,159,147     $ 345,405     $ 14,506     $ 5,359,091  
Collectively evaluated for impairment     86,786,230       30,506,669       104,319,595       102,638,326       31,888,829       5,163,473       361,303,122  
Balance at end of period   $ 87,717,667     $ 30,799,672     $ 105,935,188     $ 104,797,473     $ 32,234,234     $ 5,177,979     $ 366,662,213  

 

At September 30, 2018, of the $5,359,091 loans that were individually evaluated for impairment, only $5,225,237 were deemed impaired.

 

The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 2017.

 

December 31, 2017   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, 2016   $ 191,267     $ 1,043,083     $ 1,192,098     $ 420,189     $ 86,656     $ 191,318     $ 3,124,611  
                                                         
Charge-offs     113,334       0       168,717       59,764       93,503       12,429       447,747  
Recoveries     63,486       0       0       0       0       3,282       66,768  
Net charge-offs     49,848       0       168,717       59,764       93,503       9,147       380,979  
Provisions charged to operations     182,841       0       33,214       56,049       18,407       9,489       300,000  
Balance at end of period, December 31, 2017   $ 324,260     $ 1,043,083     $ 1,056,595     $ 416,474     $ 11,560     $ 191,660     $ 3,043,632  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 44,468     $ 0     $ 57,403     $ 224,916     $ 0     $ 4,992     $ 331,779  
Collectively evaluated for impairment     279,792       1,043,083       999,192       191,558       11,560       186,668       2,711,853  
Balance at end of period   $ 324,260     $ 1,043,083     $ 1,056,595     $ 416,474     $ 11,560     $ 191,660     $ 3,043,632  
                                                         
Loans :                                                        
Ending balance -                                                        
Individually evaluated
for impairment		   $ 459,003     $ 428,799     $ 4,561,198     $ 2,448,531     $ 142,966     $ 21,815     $ 8,062,312  
Collectively evaluated for impairment     72,687,394       21,858,213       101,897,144       96,711,076       25,230,655       3,744,517       322,128,999  
Balance at end of period   $ 73,146,397     $ 22,287,012     $ 106,458,342     $ 99,159,607     $ 25,373,621     $ 3,766,332     $ 330,191,311