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Loans and Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2019
Receivables [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 September 30, 2019 and December 31, 2018, were as follows:

 

                 
    September 30, 2019   December 31, 2018
                 
Commercial, financial and agricultural loans   $ 91,063,471       23.1 %   $ 88,403,215       23.5 %
Real estate:                                
Construction loans     25,449,257       6.4 %     24,890,536       6.6 %
Commercial mortgage loans     139,295,471       35.3 %     123,477,369       32.8 %
Residential loans     101,723,469       25.8 %     103,347,898       27.4 %
Agricultural loans     31,769,398       8.1 %     31,561,686       8.4 %
Consumer & other loans     5,329,082       1.3 %     5,086,984       1.3 %
                                 
         Loans outstanding     394,630,148       100.0 %     376,767,688       100.0 %
                                 
Unearned interest and discount     (17,397 )             (17,451 )        
Allowance for loan losses     (3,505,044 )             (3,428,869 )        
       Net loans   $ 391,107,707             $ 373,321,368          

  

The Corporation’s only significant concentration of credit at September 30, 2019, occurred in real estate loans which totaled $298,237,595 compared with $283,277,489 at December 31, 2018. However, this amount was not concentrated in any specific segment within the market or geographic area.

 

At September 30, 2019, the lendable collateral value of the 1 – 4 family and multifamily mortgage loans that were pledged to FHLB to secure outstanding advances was $65,678,819. FHLB has a blanket lien on the 1 – 4 family and multifamily portfolios, which totaled $121,214,745

  

The following table shows maturities as well as interest sensitivity of the commercial, financial, agricultural, and construction loan portfolio at September 30, 2019.

   

Commercial,

Financial,

Agricultural and

Construction

     
Distribution of loans which are due:        
     In one year or less   $ 40,434,774  
     After one year but within five years     56,000,603  
     After five years     20,077,351  
         
          Total   $ 116,512,728  

 

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, 2019.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
                     
Commercial, financial,                    
agricultural and construction   $ 74,824,037     $ 1,253,917   $ 76,077,954  

 

 

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 $1,917,775 and $1,204,861 at September 30, 2019, and December 31, 2018, respectively. There were $4,532 past due loans over ninety days and still accruing at September 30, 2019, and none at December 31, 2018. 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 $67,145 for September 30, 2019, and $64,015 for December 31, 2018.

 

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, 2019
    30-89 Days Past Due  

Greater than 90

Days

   Total Past Due Loans   Nonaccrual Loans   Current Loans   Total Loans
                         
Commercial, financial and
agricultural loans		   $ 372,558     $ 0     $ 372,558     $ 550,699     $ 90,140,214     $ 91,063,471  
Real estate:                                                
Construction loans     0       0       0       185,239       25,264,018       25,449,257  
Commercial mortgage loans     695,138       0       695,138       787,000       137,813,333       139,295,471  
Residential loans     656,746       0       656,746       394,838       100,671,885       101,723,469  
Agricultural loans     11,790       0       11,790       0       31,757,608       31,769,398  
Consumer & other loans     49,416       4,532       53,948       0       5,275,134       5,329,082  
                                                 
         Total loans   $ 1,785,648     $ 4,532     $ 1,790,181     $ 1,917,775     $ 390,922,192     $ 394,630,148  

 

    Age Analysis of Past Due Loans
As of December 31, 2018
    30-89 Days Past Due  

Greater than 90

Days

   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  

 

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 September 30, 2019, and December 31, 2018, impaired loans amounted to $4,156,267 and $4,356,381, respectively. A reserve amount of $672,275 and $518,230 was recorded in the allowance for loan losses for these impaired loans as of September 30, 2019, and December 31, 2018, respectively.

The following tables present impaired loans, segregated by class of loans as of September 30, 2019, and December 31, 2018:

    Unpaid   Recorded Investment       Year-to-date
Average		   Interest
Income Received
September 30, 2019   Principal Balance   With No Allowance   With Allowance   Total   Related Allowance   Recorded Investment   During Impairment
                             
Commercial, financial and
agricultural loans		   $ 1,256,525     $ 65,774     $ 1,104,097     $ 1,169,871     $ 437,299     $ 758,854     $ 48,957  
Real estate:                                                        
Construction loans     390,576       269,776       0       269,776       0       269,776       12,072  
Commercial mortgage loans     1,640,771       252,437       937,983       1,190,420       46,292       1,087,462       34,327  
Residential loans     1,730,816       712,055       800,874       1,512,929       187,929       1,337,169       77,245  
Agricultural loans     0       0       0       0       0       0       0  
Consumer & other loans     13,271       0       13,271       13,271       755       13,271       674  
                                                         
         Total loans   $ 5,031,959     $ 1,300,042     $ 2,856,225     $ 4,156,267     $ 672,275     $ 3,466,532     $ 173,275  

 

    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  

 

At September 30, 2018, the year-to-date average recorded investment of impaired loans was $3,803,239 and the interest income received during impairment was $193,104.

 

At September 30, 2019, and December 31, 2018, included in impaired loans were $3,384 and $7,458, respectively, of troubled debt restructurings.

 

Troubled Debt Restructurings (TDR)

 

Loans are considered to have been modified in a troubled debt restructuring, or 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. 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 charges 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 nonaccrual at September 30, 2019, and December 31, 2018, as well as those currently paying under restructured terms and those that have defaulted under restructured terms as of September 30, 2019, and December 31, 2018. 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, 2019
            Under restructured terms
   

 

Accruing

   Non-accruing  

 

#

  

 

Current

  

 

#

  

 

Default

Commercial, financial, and
agricultural loans		   $ 3,384     $ 0       1     $ 3,384       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   $ 3,384     $ 0       1     $ 3,384       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  

 

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, 2019, and December 31, 2018.

 

    September 30, 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       3,384       0       0       1       1,888       0       0  
Forbearance of interest     0       0       0       0       1       5,570       0       0  
Total     1     $ 3,834       0     $ 0       2     $ 7,458       0     $ 0  

 

As of September 30, 2019, and December 31, 2018, the Corporation had a balance of $3,384 and $7,458, respectively, in troubled debt restructurings. The Corporation had no charge-offs on such loans at September 30, 2019, and December 31, 2018. The Corporation had $3,384 in the allowance for loan losses allocated to such troubled debt restructurings at September 30, 2019, and no balance allocated at December 31, 2018. The Corporation had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of September 30, 2019.

 

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 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 September 30, 2019, all Grade 8 loans have been charged-off.

  

The following tables present internal loan grading by class of loans as of September 30, 2019, and December 31, 2018:

September 30, 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   $ 1,656,967     $ 0     $ 0     $ 22,179     $ 0     $ 208,527     $ 1,887,673  
Grade 2- Above Avg.     24,350       0       910,378       189,986       1,200,000       34,135       2,358,849  
Grade 3- Acceptable     25,348,723       3,383,917       32,494,802       26,187,325       16,011,003       1,845,744       105,271,514  
Grade 4- Fair     61,686,810       21,669,594       101,643,753       69,424,473       14,106,195       3,222,036       271,752,861  
Grade 5a- Watch     1,743,039       269,775       1,452,992       2,325,553       0       17,551       5,808,910  
Grade 5b- OAEM     231,019       0       0       26,679       0       0       257,698  
Grade 6- Substandard     372,563       0       2,464,494       384,841       0       1,089       3,222,987  
Grade 7- Doubtful     0       125,971       329,052       3,162,433       452,200       0       4,069,656  
       Total loans   $ 91,063,471     $ 25,449,257     $ 139,295,471     $ 101,723,469     $ 31,769,398     $ 5,329,082     $ 394,630,148  

 

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  

 

 

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 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 5b, 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 weighted average 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) macroeconomic trends and conditions, (4) microeconomic trends and conditions and (5) risk profile of lending activities. Within each of these categories, a risk factor percentage from a rating of excessive, high, moderate or low will be determined by management and applied to the loan portfolio. By adding the estimated value from the migration and economic analysis to the estimated reserve from the loan portfolio, a 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 nine-month period ended September 30, 2019. 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 0.23% for the nine months ended September 30, 2019, compared with 0.13% at December 31, 2018.

 

Three months ended September 30, 2019:

 

September 30, 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, June 30, 2019   $ 533,553     $ 1,043,027     $ 1,126,245     $ 478,963     $ 76,880     $ 206,472     $ 3,465,140  
                                                         
Charge-offs     57,143       56,220       0       226,540       0       6,793       346,697  
Recoveries     6,773       0       0       0       0       931       7,704  
Net charge-offs     50 ,370       56,220       0       226,540       0       5,863       338,993  
Provisions charged to operations     10,912       39,216       188,691       132,955       0       7,123       378,897  
Balance at end of period, September 30, 2019   $ 494,095     $ 1,026,023     $ 1,314,936     $ 385,378     $ 76,880     $ 207,733     $ 3,505,044  
                                                         

Nine months ended September 30, 2019:

 

September 30, 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     159,360       56,220       274,550       226,540       0       13,571       730,241  
Recoveries     18,953       0       3,368       35,941       0       2,959       61,221  
Net charge-offs     140,407       56,220       271,182       190,599       0       10,612       699,020  
Provisions charged to operations     232,251       39,216       375,815       117,107       (31,998 )     12,804       745,195  
Balance at end of period, September 30, 2019   $ 494,095     $ 1,026,023     $ 1,314,935     $ 385,379     $ 76,880     $ 207,732     $ 3,505,044  
                                                         
Ending balance -                                                        
Individually evaluated
for impairment		   $ 437,299     $ 0     $ 46,292     $ 187,929     $ 0     $ 755     $ 672,275  
Collectively evaluated for impairment     56,796       1,026,023       1,268,643       197,450       76,880       206,977       2,832,769  
Balance at end of period   $ 494,095     $ 1,026,023     $ 1,314,935     $ 385,379     $ 76,880     $ 207,732     $ 3,505,044  

 

                             
Loans :                            
Ending balance -                            
Individually evaluated
for impairment		   $ 1,169,871     $ 269,776     $ 1,190,420     $ 1,512,929     $ 0     $ 13,271     $ 4,156,267  
Collectively evaluated for impairment     89,893,600       25,179,481       138,105,051       100,210,540       31,769,398       5,315,811       390,473,881  
Balance at end of period   $ 91,063,471     $ 25,449,257     $ 139,295,471     $ 101,723,469     $ 31,769,398     $ 5,329,082     $ 394,630,148  

 

At September 30, 2019, of the $4,156,267 loans that were individually evaluated for impairment, all $4,156,267 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, 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  

 

At December 31, 2018, of the $4,505,505 loans that were individually evaluated for impairment, only $4,356,381 were deemed impaired.