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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2019
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 March 31, 2019 and December 31, 2018, were as follows:

           
  March 31, 2019   December 31, 2018
           
Commercial, financial and agricultural loans $   88,999,975   23.6%   $  88,403,215   23.5%
Real estate:          
Construction loans 26,092,085 6.9%   24,890,536 6.6%
Commercial mortgage loans 121,855,453 32.3%   123,477,369 32.8%
Residential loans 103,995,725 27.5%   103,347,898 27.4%
Agricultural loans 31,505,959 8.3%   31,561,686 8.4%
Consumer & other loans     5,262,568     1.4%       5,086,984 1.3%
           
         Loans outstanding 377,711,765 100.0%   376,767,688 100.0%
           
Unearned interest and discount (         17,390)     (        17,451)  
Allowance for loan losses (    3,366,927)     (   3,428,869)  
       Net loans $ 374,327,448     $ 373,321,368  
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 March 31, 2019.

 

 

 

  

Commercial,

Financial,

Agricultural and

Construction

  
       
Distribution of loans which are due:      
     In one year or less $   35,327,184  
     After one year but within five years   54,757,452  
     After five years   25,007,424  
       
          Total $    115,092,060  
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 March 31, 2019.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
             
Commercial, financial,            
agricultural and construction   $ 76,439,177   $ 3,325,699   $ 79,764,876
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 March 31, 2019

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

Commercial, financial and

agricultural loans

 $   556,388 $     0 $   556,388  $              0   $ 88,443,587 $ 88,999,975
Real estate:            
Construction loans    536,090 0    536,090 0 25,555,995 26,092,085
Commercial mortgage loans 204,250 0 204,250 839,854 120,811,349 121,855,453
Residential loans 1,638,063 0 1,638,063 65,214 102,292,448 103,995,725
Agricultural loans 193,800 0 193,800 0 31,312,159 31,505,959
Consumer & other loans      31,862          0      31,862               0     5,230,706     5,262,568
             
         Total loans $3,160,453 $     0 $3,160,453   $   905,068 $373,646,244 $377,711,765

 

 

Age Analysis of Past Due Loans

As of December 31, 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

 $    247,397 $        0 $    247,397  $     36,157   $   88,119,661 $  88,403,215
Real estate:            
Construction loans    0 0    0 0 24,890,536 24,890,536
Commercial mortgage loans 0 0 0 1,022,550 122,454,819 123,477,369
Residential loans 1,560,913 0 1,560,913 146,154 101,640,831 103,347,898
Agricultural loans 321,319 0 321,319 0 31,240,367 31,561,686
Consumer & other loans      36,654          0      36,654               0       5,050,330     5,086,984
             
         Total loans $ 2,166,283 $         0 $ 2,166,283   $ 1,204,861 $ 373,396,544 $ 376,767,688
Schedule of Impaired Loans Segregated by Class of Loans

The following tables present impaired loans, segregated by class of loans as of March 31, 2019, and December 31, 2018:

 

  Unpaid Recorded Investment  

Year-to-date

Average

Interest

Income Received

March 31, 2019 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment
               

Commercial, financial and

agricultural loans

 $1,420,052 $     78,507 $1,254,891 $1,333,398 $  562,925 $    461,763 $ 8,225
Real estate:              
Construction loans 393,898 273,098 0 273,098 0 273,098 5,253
Commercial mortgage loans 1,661,727 346,979 954,250 1,301,229 38,678 1,097,539 9,701
Residential loans 1,432,181 327,454 1,083,815 1,411,269 225,215 1,318,080 28,979
Agricultural loans 0 0 0 0 0 0 0
Consumer & other loans      13,415               0      13,415      13,415        899        13,415      346
               
         Total loans $4,921,273 $1,026,038 $3,306,371 $4,332,409 $827,717 $ 3,163,895 $52,504
  Unpaid Recorded Investment  

Year-to-date

Average

Interest

Income Received

December 31, 2018 Principal Balance With No Allowance With Allowance Total Related Allowance Recorded Investment During Impairment
               

Commercial, financial and

agricultural loans

 $   184,899 $   87,525 $   568,816 $   656,341 $ 276,392 $   370,038 $ 52,411
Real estate:              
Construction loans 402,234 281,434 0 281,434 0 281,434 25,364
Commercial mortgage loans 1,787,305 1,277,611 333,892 1,611,503 51,854 1,544,299 45,403
Residential loans 1,801,002 1,027,647 752,443 1,780,090 188,368 1,594,390 127,806
Agricultural loans 12,526 12,526 0 12,526 0 12,526 5,530
Consumer & other loans               0               0      14,487      14,487     1,616        14,487        820
               
         Total loans $4,187,966 $2,686,743 $1,669,638 $4,356,381 $518,230 $3,817,174 $257,334
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.

  March 31, 2019
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and

agricultural loans

 

$

 

4,275

 

$

 

0

  

 

1

 

$

 

4,275

  

 

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   0   0   0   0   0   0
Total TDR’s $ 4,275 $ 0   1 $ 4,275   0 $ 0

 

  December 31, 2018
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and

agricultural loans

 

$

 

5,570

 

$

 

0

  

 

1

 

$

 

5,570

  

 

0

 

$

 

0

Real estate:                        
   Construction loans   0   0   0   0   0   0
   Commercial mortgage loans   0   0   0   0   0   0
   Residential loans   1,888   0   1   1,888   0   0
   Agricultural loans   0   0   0   0   0   0
Consumer & other loans   0   0   0   0   0   0
Total TDR’s $ 7,458 $ 0   2 $ 7,458   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 March 31, 2019, and December 31, 2018.

 

    March 31, 2019   December 31, 2018
    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   1   4,275   0   0   1   1,888   0   0
Forbearance of interest   0   0   0   0   1   5,570   0   0
Total   1 $ 4,275   0 $ 0   2 $ 7,458   0 $ 0
Schedule of Internal Loan Grading by Class of Loans

The following tables present internal loan grading by class of loans as of March 31, 2019, and December 31, 2018:

March 31, 2019

 

Commercial, Financial, and Agricultural

 Construction Real Estate Commercial Real Estate Residential Real Estate Agricultural Real Estate Consumer and Other Total
Rating:              
Grade 1- Exceptional $  1,389,477 $                0   $                  0 $         22,656 $                0 $    199,257 $    1,611,390
Grade 2- Above Avg. 0 0 0 0 0 43,134 43,134
Grade 3- Acceptable 23,896,901 2,140,022 28,634,023 26,258,915 17,060,292 1,815,446 99,805,599
Grade 4- Fair 62,003,261 23,429,965 88,485,618 73,773,119 14,445,667 3,184,099 265,321,729
Grade 5a- Watch 758,902 273,098 1,908,525 2,006,308 0 14,950 4,961,783
Grade 5b- OAEM 244,637 0 0 0 0 0 244,637
Grade 6- Substandard 702,441 249,000 2,400,340 712,620 0 4,397 4,068,798
Grade 7- Doubtful          4,356                 0        426,947     1,222,107                 0         1,285      1,654,695
       Total loans $88,999,975 $26,092,085 $121,855,453 $103,995,725 $31,505,959 $5,262,568 $377,711,765

 

December 31, 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 $  1,237,602 $                0   $                  0 $       22,905 $                0 $    210,045 $    1,470,552
Grade 2- Above Avg. 0 0 0 0 0 43,711 43,711
Grade 3- Acceptable 23,821,846 1,860,003 30,398,565 25,839,646 16,863,356 1,151,239 99,934,655
Grade 4- Fair 58,753,931 22,749,099 88,122,957 73,114,310 14,698,330 3,657,108 261,095,735
Grade 5a- Watch 473,616 0 2,411,710 722,441 0 6,206 3,613,973
Grade 5b- OAEM 3,079,098 0 446,841 1,299,587 0 2,168 4,827,694
Grade 6- Substandard 787,309 281,434 2,097,296 2,349,009 0 16,507 5,531,555
Grade 7- Doubtful      249,813                 0                 0                 0                 0               0        249,813
       Total loans $88,403,215 $24,890,536 $123,477,369 $103,347,898 $31,561,686 $5,086,984 $376,767,688
Schedule of Allowance for Loan Losses Methodology

The annualized net charge-offs to average loans outstanding ratio was 0.19% for the three months ended March 31, 2019, compared with 0.13% at December 31, 2018.

  

 Three months ended March 31, 2019:

 

March 31, 2019 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, 2018 $     402,251 $  1,043,027 $  1,210,302 $     458,871 $    108,878 $   205,540 $    3,428,869
               
Charge-offs 0 0 184,696 0 0 0 184,696
Recoveries         2,696                     0          3,368                   0                0             782           6,846
Net charge-offs (2,696) 0 181,328 0 0 (782) 177,850
Provisions charged to operations       98,375                 0        48,695                   0      (31,998)        836        115,908
Balance at end of period, March 31, 2019 $     503,322 $  1,043,027 $  1,077,669 $       458,871 $      76,880 $   207,158 $    3,366,927
               
Ending balance -              

Individually evaluated

for impairment

 $     562,925 $                0 $       38,678 $    225,215 $               0 $          899 $       827,717
Collectively evaluated for impairment      (59,603)   1,043,027   1,038,991        233,656       76,880    206,259     2,539,210
Balance at end of period $     503,322 $  1,043,027 $  1,077,669 $       458,871 $      76,880 $   207,158 $    3,366,927
               
Loans :              
Ending balance -              

Individually evaluated

for impairment

 $  1,333,398 $     273,098 $    1,301,229 $  1,411,269 $                0 $     13,415 $    4,332,409
Collectively evaluated for impairment 87,666,577 25,818,987 120,554,224 102,584,456 31,505,959 5,249,153 373,379,356
Balance at end of period $88,999,975 $26,092,085 $121,855,453 $103,995,725 $31,505,959 $5,262,568 $377,711,765

  

 

The following table details activity in the ALL and loans evaluated for impairment by class of loans for the year ended December 31, 2018.

 

December 31, 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 548,460 783 43,349 6,909 0 6,844 606,345
Recoveries       12,025                 0             590                 0     147,252        2,215        162,082
Net charge-offs 536,435 783 42,759 6,909 (147,252) 4,629 444,263
Provisions charged to operations      614,426             727      196,466        49,306     (49,934)      18,509        829,500
Balance at end of period, December 31, 2018 $     402,251 $  1,043,027 $  1,210,302 $     458,871 $    108,878 $   205,540 $    3,428,869
               
Ending balance -              

Individually evaluated

for impairment

 $     276,392 $                0 $       51,854 $    188,368 $              0 $       1,616 $       518,230
Collectively evaluated for impairment      125,859   1,043,027   1,158,448      270,503    108,878    203,924     2,910,639
Balance at end of period $     402,251 $  1,043,027 $  1,210,302 $     458,871 $    108,878 $   205,540 $    3,428,869
               
Loans :              
Ending balance -              

Individually evaluated

for impairment

 $    656,341 $    281,434 $   1,611,503 $   1,929,214 $      12,526 $     14,487 $    4,505,505
Collectively evaluated for impairment 87,746,874 24,609,102 121,865,866 101,418,684 31,549,160 5,072,497 372,262,183
Balance at end of period $88,403,215 $24,890,536 $123,477,369 $103,347,898 $31,561,686 $5,086,984 $376,767,688