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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 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 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          
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, 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  
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, 2019.

 

    Loans With        
    Predetermined   Loans With    
    Rates   Floating Rates   Total
                     
Commercial, financial,                    
agricultural and construction   $ 74,824,037     $ 1,253,917   $ 76,077,954  
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, 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  
Schedule of Impaired Loans Segregated by Class of Loans

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  
Schedule of Troubled Debt Restructuring by Loan Class

    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  
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, 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  
Schedule of Internal Loan Grading by Class of Loans

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  
Schedule of Allowance for Loan Losses Methodology

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  

 

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