5. Loans, Allowance for Loan Losses and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Composition of net loans

The composition of net loans as of the balance sheet dates was as follows:

	September 30,			December 31,			September 30,
	2014			2013			2013
Commercial & industrial	$	63,959,230		$	55,619,285		$	55,500,735
Commercial real estate		162,275,498			156,935,803			147,280,787
Residential real estate - 1st lien		165,662,426			172,847,074			174,508,009
Residential real estate - Jr lien		44,147,861			45,687,405			45,279,400
Consumer		7,943,615			8,819,359			9,412,856
		443,988,630			439,908,926			431,981,787
Deduct (add):
Allowance for loan losses		4,885,791			4,854,915			4,799,431
Deferred net loan costs		(288,898	)		(300,429	)		(281,747	)
		4,596,893			4,554,486			4,517,684
Net Loans	$	439,391,737		$	435,354,440		$	427,464,103

Past due loans by segment

The following is an age analysis of past due loans (including non-accrual), by portfolio segment:

													90 Days or
			90 Days		Total						Non-Accrual		More
September 30, 2014	30-89 Days		or More		Past Due		Current		Total Loans		Loans		and Accruing
Commercial & industrial	$	450,811	$	612,822	$	1,063,633	$	62,895,597	$	63,959,230	$	1,068,390	$	0
Commercial real estate		1,137,779		48,520		1,186,299		161,089,199		162,275,498		1,754,002		5,313
Residential real estate - 1st lien		2,230,067		1,239,799		3,469,866		162,192,560		165,662,426		1,740,509		554,327
Residential real estate - Jr lien		256,212		76,089		332,301		43,815,560		44,147,861		410,187		57,385
Consumer		55,034		8,859		63,893		7,879,722		7,943,615		0		8,859
Total	$	4,129,903	$	1,986,089	$	6,115,992	$	437,872,638	$	443,988,630	$	4,973,088	$	625,884

													90 Days or
			90 Days		Total						Non-Accrual		More
December 31, 2013	30-89 Days		or More		Past Due		Current		Total Loans		Loans		and Accruing
Commercial & industrial	$	1,060,971	$	310,669	$	1,371,640	$	54,247,645	$	55,619,285	$	527,105	$	21,902
Commercial real estate		713,160		215,507		928,667		156,007,136		156,935,803		1,403,541		5,313
Residential real estate - 1st lien		5,184,457		1,655,950		6,840,407		166,006,667		172,847,074		2,203,106		817,109
Residential real estate - Jr lien		533,134		289,169		822,303		44,865,102		45,687,405		593,125		56,040
Consumer		136,922		7,784		144,706		8,674,653		8,819,359		0		7,784
Total	$	7,628,644	$	2,479,079	$	10,107,723	$	429,801,203	$	439,908,926	$	4,726,877	$	908,148

													90 Days or
			90 Days		Total						Non-Accrual		More
September 30, 2013	30-89 Days		or More		Past Due		Current		Total Loans		Loans		and Accruing
Commercial & industrial	$	75,101	$	269,744	$	344,845	$	55,155,890	$	55,500,735	$	493,272	$	0
Commercial real estate		982,378		546,252		1,528,630		145,752,157		147,280,787		1,740,350		50,965
Residential real estate - 1st lien		1,270,029		1,071,400		2,341,429		172,166,580		174,508,009		1,999,274		344,193
Residential real estate - Jr lien		539,828		223,200		763,028		44,516,372		45,279,400		669,292		62,359
Consumer		95,907		8,755		104,662		9,308,194		9,412,856		0		8,755
Total	$	2,963,243	$	2,119,351	$	5,082,594	$	426,899,193	$	431,981,787	$	4,902,188	$	466,272

Changes in the allowance for loan losses

The following summarizes changes in the allowance for loan losses and select loan information, by portfolio segment:

Three Months Ended September 30, 2014
							Residential			Residential
	Commercial			Commercial			Real Estate			Real Estate
	& Industrial			Real Estate			1st Lien			Jr Lien			Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	687,416		$	2,155,738		$	1,337,011		$	294,614		$	84,115		$	317,922		$	4,876,816
Charge-offs		(27,881	)		(24,100	)		(28,382	)		(33,875	)		(24,255	)		0			(138,493	)
Recoveries		3,028			0			1,725			60			7,655			0			12,468
Provision (credit)		11,893			118,614			(22,894	)		23,329			23,252			(19,194	)		135,000
Ending balance	$	674,456		$	2,250,252		$	1,287,460		$	284,128		$	90,767		$	298,728		$	4,885,791

Nine Months Ended September 30, 2014
							Residential			Residential
	Commercial			Commercial			Real Estate			Real Estate
	& Industrial			Real Estate			1st Lien			Jr Lien			Consumer			Unallocated		Total
Allowance for loan losses
Beginning balance	$	516,382		$	2,143,398		$	1,452,184		$	366,471		$	105,279		$	271,201	$	4,854,915
Charge-offs		(115,095	)		(154,919	)		(28,382	)		(33,875	)		(90,024	)		0		(422,295	)
Recoveries		5,265			0			12,823			180			29,903			0		48,171
Provision (credit)		267,904			261,773			(149,165	)		(48,648	)		45,609			27,527		405,000
Ending balance	$	674,456		$	2,250,252		$	1,287,460		$	284,128		$	90,767		$	298,728	$	4,885,791
Allowance for loan losses
Evaluated for impairment
Individually	$	21,200		$	62,000		$	45,400		$	0		$	0		$	0	$	128,600
Collectively		653,256			2,188,252			1,242,060			284,128			90,767			298,728		4,757,191
Total	$	674,456		$	2,250,252		$	1,287,460		$	284,128		$	90,767		$	298,728	$	4,885,791
Loans evaluated for impairment
Individually	$	983,044		$	1,728,772		$	947,329		$	334,926		$	0				$	3,994,071
Collectively		62,976,186			160,546,726			164,715,097			43,812,935			7,943,615					439,994,559
Total	$	63,959,230		$	162,275,498		$	165,662,426		$	44,147,861		$	7,943,615				$	443,988,630

Twelve Months Ended December 31, 2013
							Residential			Residential
	Commercial			Commercial			Real Estate			Real Estate
	& Industrial			Real Estate			1st Lien			Jr Lien			Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	428,381		$	1,536,440		$	1,563,576		$	332,556		$	138,699		$	312,428		$	4,312,080
Charge-offs		(83,344	)		(124,849	)		(56,430	)		(56,797	)		(67,009	)		0			(388,429	)
Recoveries		2,953			185,791			15,819			21,277			35,424			0			261,264
Provision (credit)		168,392			546,016			(70,781	)		69,435			(1,835	)		(41,227	)		670,000
Ending balance	$	516,382		$	2,143,398		$	1,452,184		$	366,471		$	105,279		$	271,201		$	4,854,915
Allowance for loan losses
Evaluated for impairment
Individually	$	27,500		$	147,700		$	99,700		$	76,500		$	0		$	0		$	351,400
Collectively		488,882			1,995,698			1,352,484			289,971			105,279			271,201			4,503,515
Total	$	516,382		$	2,143,398		$	1,452,184		$	366,471		$	105,279		$	271,201		$	4,854,915
Loans evaluated for impairment
Individually	$	373,696		$	1,386,477		$	1,788,793		$	559,250		$	0					$	4,108,216
Collectively		55,245,589			155,549,326			171,058,281			45,128,155			8,819,359						435,800,710
Total	$	55,619,285		$	156,935,803		$	172,847,074		$	45,687,405		$	8,819,359					$	439,908,926

Three Months Ended September 30, 2013
							Residential			Residential
	Commercial			Commercial			Real Estate			Real Estate
	& Industrial			Real Estate			1st Lien			Jr Lien		Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	515,244		$	1,698,040		$	1,527,962		$	414,161	$	116,248		$	250,524		$	4,522,179
Charge-offs		(42,327	)		(16,913	)		(3,957	)		0		(10,647	)		0			(73,844	)
Recoveries		1,126			185,791			3,128			21,110		2,441			0			213,596
Provision (credit)		4,891			72,698			(14,415	)		81,589		22,894			(30,157	)		137,500
Ending balance	$	478,934		$	1,939,616		$	1,512,718		$	516,860	$	130,936		$	220,367		$	4,799,431

Nine Months Ended September 30, 2013
							Residential			Residential
	Commercial			Commercial			Real Estate			Real Estate
	& Industrial			Real Estate			1st Lien			Jr Lien		Consumer			Unallocated			Total
Allowance for loan losses
Beginning balance	$	428,381		$	1,536,440		$	1,563,576		$	332,556	$	138,699		$	312,428		$	4,312,080
Charge-offs		(61,614	)		(124,849	)		(7,009	)		0		(36,655	)		0			(230,127	)
Recoveries		2,117			185,791			11,764			21,230		32,826			0			253,728
Provision (credit)		110,050			342,234			(55,613	)		163,074		(3,934	)		(92,061	)		463,750
Ending balance	$	478,934		$	1,939,616		$	1,512,718		$	516,860	$	130,936		$	220,367		$	4,799,431
Allowance for loan losses
Evaluated for impairment
Individually	$	0		$	115,700		$	110,500		$	185,700	$	0		$	0		$	411,900
Collectively		478,934			1,823,916			1,402,218			331,160		130,936			220,367			4,387,531
Total	$	478,934		$	1,939,616		$	1,512,718		$	516,860	$	130,936		$	220,367		$	4,799,431
Loans evaluated for impairment
Individually	$	319,010		$	1,716,870		$	1,734,139		$	669,292	$	0					$	4,439,311
Collectively		55,181,725			145,563,917			172,773,870			44,610,108		9,412,856						427,542,476
Total	$	55,500,735		$	147,280,787		$	174,508,009		$	45,279,400	$	9,412,856					$	431,981,787

Impaired loans by segment

Impaired loans, by portfolio segment, were as follows:

	As of September 30, 2014
			Unpaid				Average		Average
	Recorded		Principal		Related		Recorded		Recorded
	Investment		Balance		Allowance		Investment(1)		Investment(2)
With no related allowance recorded
Commercial & industrial	$	726,688	$	772,605	$	0	$	772,852	$	536,388
Commercial real estate		1,305,203		1,414,604		0		1,321,387		1,186,767
Residential real estate - 1st lien		812,609		903,309		0		822,309		1,062,894
Residential real estate - Jr lien		245,666		391,644		0		257,789		193,995
With an allowance recorded
Commercial & industrial		256,356		294,950		21,200		335,613		198,362
Commercial real estate		423,569		439,630		62,000		322,093		299,003
Residential real estate - 1st lien		134,720		163,115		45,400		338,782		339,732
Residential real estate - Jr lien		89,260		0		0		95,062		209,531
Total
Commercial & industrial	$	983,044	$	1,067,555	$	21,200	$	1,108,465	$	734,750
Commercial real estate		1,728,772		1,854,234		62,000		1,643,480		1,485,770
Residential real estate - 1st lien		947,329		1,066,424		45,400		1,161,091		1,402,626
Residential real estate - Jr lien		334,926		391,644		0		352,851		403,526
Total	$	3,994,071	$	4,379,857	$	128,600	$	4,265,887	$	4,026,672

(1) For the Three Months Ended September 30, 2014

(2) For the Nine Months Ended September 30, 2014

			As of December 31, 2013						2013
					Unpaid				Average
			Recorded		Principal		Related		Recorded
			Investment		Balance		Allowance		Investment
With no related allowance recorded
Commercial & industrial			$	314,510	$	363,618	$	0	$	339,519
Commercial real estate				944,845		1,021,143		0		1,325,504
Residential real estate - 1st lien				1,354,432		1,654,023		0		1,088,631
Residential real estate - Jr lien				164,137		228,134		0		64,606
With an allowance recorded
Commercial & industrial				59,186		59,186		27,500		11,837
Commercial real estate				441,632		446,963		147,700		272,174
Residential real estate - 1st lien				434,361		474,496		99,700		515,685
Residential real estate - Jr lien				395,113		429,167		76,500		380,855
Total
Commercial & industrial			$	373,696	$	422,804	$	27,500	$	351,356
Commercial real estate				1,386,477		1,468,106		147,700		1,597,678
Residential real estate - 1st lien				1,788,793		2,128,519		99,700		1,604,316
Residential real estate - Jr lien				559,250		657,301		76,500		445,461
Total			$	4,108,216	$	4,676,730	$	351,400	$	3,998,811
	As of September 30, 2013
			Unpaid				Average		Average
	Recorded		Principal		Related		Recorded		Recorded
	Investment		Balance		Allowance		Investment (1)		Investment (2)
With no related allowance recorded
Commercial & industrial	$	319,010	$	366,022	$	0	$	312,218	$	345,772
Commercial real estate		1,199,398		1,269,979		0		1,085,322		1,420,668
Residential real estate - 1st lien		1,156,159		1,390,485		0		1,026,675		1,022,181
Residential real estate - Jr lien		102,913		110,997		0		63,752		39,723
With an allowance recorded
Commercial & industrial		0		0		0		0		0
Commercial real estate		517,472		517,472		115,700		307,194		229,809
Residential real estate - 1st lien		577,980		657,154		110,500		523,738		536,016
Residential real estate - Jr lien		566,379		595,494		185,700		445,302		377,291
Total
Commercial & industrial	$	319,010	$	366,022	$	0	$	312,218	$	345,772
Commercial real estate		1,716,870		1,787,451		115,700		1,392,516		1,650,477
Residential real estate - 1st lien		1,734,139		2,047,639		110,500		1,550,413		1,558,197
Residential real estate - Jr lien		669,292		706,491		185,700		509,054		417,014
Total	$	4,439,311	$	4,907,603	$	411,900	$	3,764,201	$	3,971,460

(1) For the Three Months Ended September 30, 2013

(2) For the Nine Months Ended September 30, 2013

Risk ratings

The risk ratings within the loan portfolio, by segment, as of the balance sheet dates were as follows:

As of September 30, 2014
					Residential		Residential
	Commercial		Commercial		Real Estate		Real Estate
	& Industrial		Real Estate		1st Lien		Jr Lien		Consumer		Total
Group A	$	60,077,761	$	153,398,713	$	162,739,339	$	43,546,848	$	7,934,756	$	427,697,417
Group B		2,717,261		3,447,445		205,415		163,910		0		6,534,031
Group C		1,164,208		5,429,340		2,717,672		437,103		8,859		9,757,182
Total	$	63,959,230	$	162,275,498	$	165,662,426	$	44,147,861	$	7,943,615	$	443,988,630

As of December 31, 2013
					Residential		Residential
	Commercial		Commercial		Real Estate		Real Estate
	& Industrial		Real Estate		1st Lien		Jr Lien		Consumer		Total
Group A	$	51,740,744	$	148,516,895	$	169,771,357	$	44,739,736	$	8,800,365	$	423,569,097
Group B		2,824,169		3,292,200		160,468		460,844		0		6,737,681
Group C		1,054,372		5,126,708		2,915,249		486,825		18,994		9,602,148
Total	$	55,619,285	$	156,935,803	$	172,847,074	$	45,687,405	$	8,819,359	$	439,908,926

As of September 30, 2013
					Residential		Residential
	Commercial		Commercial		Real Estate		Real Estate
	& Industrial		Real Estate		1st Lien		Jr Lien		Consumer		Total
Group A	$	51,937,275	$	139,168,914	$	171,694,502	$	44,144,667	$	9,404,101	$	416,349,459
Group B		2,412,663		3,572,369		175,081		497,992		0		6,658,105
Group C		1,150,797		4,539,504		2,638,426		636,741		8,755		8,974,223
Total	$	55,500,735	$	147,280,787	$	174,508,009	$	45,279,400	$	9,412,856	$	431,981,787

Loans modified as TDRs

TDRs, by portfolio segment, for the periods presented were as follows:

	Three Months Ended September 30, 2014					Nine Months Ended September 30, 2014
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Residential real estate
1st lien	2	$	432,573	$	436,963	8	$	913,471	$	947,700

	Twelve Months Ended December 31, 2013
		Pre-		Post-
		Modification		Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
Residential real estate - 1st lien	4	$	321,406	$	330,266
Residential real estate - Jr lien	1		23,425		23,425
Total	5	$	344,831	$	353,691

There were no TDR’s for the three months ended September 30, 2013.

	Nine Months Ended September 30, 2013
		Pre-		Post-
		Modification		Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Contracts	Investment		Investment
Residential real estate - Jr lien	1	$	23,425	$	23,425

TDRs payment default

The TDR’s for which there was a payment default during the twelve month period ended September 30, 2014 were as follows:

	Number of	Recorded
	Contracts	Investment
Residential real estate - 1st lien	5	$	438,428