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5. Loans, Allowance for Loan Losses and Credit Quality (Tables)
 6 Months Ended
Jun. 30, 2015
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Composition of net loans
    June 30,     December 31,     June 30,  
    2015     2014     2014  
                   
Commercial & industrial   $ 73,561,125     $ 64,390,220     $ 64,475,384  
Commercial real estate     172,565,221       166,611,830       164,302,843  
Residential real estate - 1st lien     162,109,916       163,966,124       169,367,709  
Residential real estate - Jr lien     43,816,552       44,801,483       44,564,026  
Consumer     7,429,236       8,035,298       7,883,342  
      459,482,050       447,804,955       450,593,304  
Deduct (add):                        
Allowance for loan losses     5,095,212       4,905,874       4,876,816  
Deferred net loan costs     (307,235 )     (303,394 )     (288,237 )
      4,787,977       4,602,480       4,588,579  
     Net Loans   $ 454,694,073     $ 443,202,475     $ 446,004,725  
Past due loans by segment
                                        90 Days or  
          90 Days     Total                 Non-Accrual     More  
June 30, 2015   30-89 Days     or More     Past Due     Current     Total Loans     Loans     and Accruing  
                                           
Commercial & industrial   $ 177,758     $ 174,184     $ 351,942     $ 73,209,183     $ 73,561,125     $ 767,235     $ 0  
Commercial real estate     740,547       239,619       980,166       171,585,055       172,565,221       1,909,917       5,313  
Residential real estate - 1st lien     2,222,425       828,694       3,051,119       159,058,797       162,109,916       1,927,300       528,211  
Residential real estate - Jr lien     346,444       82,021       428,465       43,388,087       43,816,552       311,571       82,021  
Consumer     38,159       8,987       47,146       7,382,090       7,429,236       0       8,987  
     Total   $ 3,525,333     $ 1,333,505     $ 4,858,838     $ 454,623,212     $ 459,482,050     $ 4,916,023     $ 624,532  
                                                         
                                                    90 Days or  
            90 Days     Total                     Non-Accrual     More  
December 31, 2014   30-89 Days     or More     Past Due     Current     Total Loans     Loans     and Accruing  
                                                         
Commercial & industrial   $ 439,151     $ 299,095     $ 738,246     $ 63,651,974     $ 64,390,220     $ 552,386     $ 23,579  
Commercial real estate     988,924       5,313       994,237       165,617,593       166,611,830       1,934,096       5,313  
Residential real estate - 1st lien     4,446,138       1,484,334       5,930,472       158,035,652       163,966,124       1,263,046       980,138  
Residential real estate - Jr lien     637,917       179,920       817,837       43,983,646       44,801,483       404,061       115,852  
Consumer     56,392       0       56,392       7,978,906       8,035,298       0       0  
     Total   $ 6,568,522     $ 1,968,662     $ 8,537,184     $ 439,267,771     $ 447,804,955     $ 4,153,589     $ 1,124,882  
                                                         
                                                    90 Days or  
            90 Days     Total                     Non-Accrual     More  
June 30, 2014   30-89 Days     or More     Past Due     Current     Total Loans     Loans     and Accruing  
                                                         
Commercial & industrial   $ 373,363     $ 605,406     $ 978,769     $ 63,496,615     $ 64,475,384     $ 1,347,748     $ 102,961  
Commercial real estate     1,378,654       94,609       1,473,263       162,829,580       164,302,843       1,661,324       5,313  
Residential real estate - 1st lien     2,542,507       991,146       3,533,653       165,834,056       169,367,709       1,943,475       231,085  
Residential real estate - Jr lien     228,014       110,451       338,465       44,225,561       44,564,026       453,304       57,241  
Consumer     54,479       17,927       72,406       7,810,936       7,883,342       0       17,927  
     Total   $ 4,577,017     $ 1,819,539     $ 6,396,556     $ 444,196,748     $ 450,593,304     $ 5,405,851     $ 414,527  
Changes in the allowance for loan losses

The following tables summarize changes in the allowance for loan losses and select loan information, by portfolio segment, for the periods indicated:

 

As of or for the three months ended June 30, 2015  
                Residential     Residential                    
    Commercial     Commercial     Real Estate     Real Estate                    
    & Industrial     Real Estate     1st Lien     Jr Lien     Consumer     Unallocated     Total  
Allowance for loan losses  
Beginning balance   $ 750,491     $ 2,325,111     $ 1,322,017     $ 321,407     $ 86,084     $ 197,939     $ 5,003,049  
  Charge-offs     0       0       (78,700 )     0       (22,816 )     0       (101,516 )
  Recoveries     37,306       0       0       60       6,313       0       43,679  
  Provision (credit)     93,297       (340,552 )     115,187       30,658       (5,768 )     257,178       150,000  
Ending balance   $ 881,094     $ 1,984,559     $ 1,358,504     $ 352,125     $ 63,813     $ 455,117     $ 5,095,212  

 

As of or for the six months ended June 30, 2015  
                Residential     Residential                    
    Commercial     Commercial     Real Estate     Real Estate                    
    & Industrial     Real Estate     1st Lien     Jr Lien     Consumer     Unallocated     Total  
Allowance for loan losses  
Beginning balance   $ 646,719     $ 2,311,936     $ 1,270,766     $ 321,099     $ 118,819     $ 236,535     $ 4,905,874  
  Charge-offs     (35,059 )     0       (94,575 )     (20,199 )     (28,105 )     0       (177,938 )
  Recoveries     42,913       0       6,042       120       18,201       0       67,276  
  Provision (credit)     226,521       (327,377 )     176,271       51,105       (45,102 )     218,582       300,000  
Ending balance   $ 881,094     $ 1,984,559     $ 1,358,504     $ 352,125     $ 63,813     $ 455,117     $ 5,095,212  
                                                         
Allowance for loan losses  
Evaluated for impairment                                                        
  Individually   $ 70,000     $ 0     $ 71,800     $ 47,500     $ 0     $ 0     $ 189,300  
  Collectively     811,094       1,984,559       1,286,704       304,625       63,813       455,117       4,905,912  
     Total   $ 881,094     $ 1,984,559     $ 1,358,504     $ 352,125     $ 63,813     $ 455,117     $ 5,095,212  
   
Loans evaluated for impairment  
  Individually   $ 594,176     $ 1,845,751     $ 1,345,820     $ 238,623     $ 0             $ 4,024,370  
  Collectively     72,966,949       170,719,470       160,764,096       43,577,929       7,429,236               455,457,680  
     Total   $ 73,561,125     $ 172,565,221     $ 162,109,916     $ 43,816,552     $ 7,429,236             $ 459,482,050  

 

As of or for the year ended December 31, 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     (153,329 )     (167,841 )     (58,904 )     (51,389 )     (112,376 )     0       (543,839 )
  Recoveries     6,249       0       14,543       240       33,766       0       54,798  
  Provision (credit)     277,417       336,379       (137,057 )     5,777       92,150       (34,666 )     540,000  
Ending balance   $ 646,719     $ 2,311,936     $ 1,270,766     $ 321,099     $ 118,819     $ 236,535     $ 4,905,874  
                                                         
Allowance for loan losses  
Evaluated for impairment                                                        
  Individually   $ 0     $ 34,400     $ 43,400     $ 0     $ 0     $ 0     $ 77,800  
  Collectively     646,719       2,277,536       1,227,366       321,099       118,819       236,535       4,828,074  
     Total   $ 646,719     $ 2,311,936     $ 1,270,766     $ 321,099     $ 118,819     $ 236,535     $ 4,905,874  
   
Loans evaluated for impairment  
  Individually   $ 390,605     $ 1,930,993     $ 721,241     $ 328,889     $ 0             $ 3,371,728  
  Collectively     63,999,615       164,680,837       163,244,883       44,472,594       8,035,298               444,433,227  
     Total   $ 64,390,220     $ 166,611,830     $ 163,966,124     $ 44,801,483     $ 8,035,298             $ 447,804,955  

 

As of or for the three months ended June 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   $ 556,223     $ 2,172,678     $ 1,396,934     $ 348,738     $ 100,386     $ 262,619     $ 4,837,578  
  Charge-offs     (70,534 )     (30,819 )     0       0       (14,241 )     0       (115,594 )
  Recoveries     2,124       0       1,725       60       15,923       0       19,832  
  Provision (credit)     199,603       13,879       (61,648 )     (54,184 )     (17,953 )     55,303       135,000  
Ending balance   $ 687,416     $ 2,155,738     $ 1,337,011     $ 294,614     $ 84,115     $ 317,922     $ 4,876,816  

 

As of or for the six months ended June 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     (87,214 )     (130,819 )     0       0       (65,769 )     0       (283,802 )
  Recoveries     2,236       0       11,098       120       22,249       0       35,703  
  Provision (credit)     256,012       143,159       (126,271 )     (71,977 )     22,356       46,721       270,000  
Ending balance   $ 687,416     $ 2,155,738     $ 1,337,011     $ 294,614     $ 84,115     $ 317,922     $ 4,876,816  
                                                         
Allowance for loan losses  
Evaluated for impairment                                                        
  Individually   $ 99,300     $ 18,900     $ 100,600     $ 13,100     $ 0     $ 0     $ 231,900  
  Collectively     588,116       2,136,838       1,236,411       281,514       84,115       317,922       4,644,916  
     Total   $ 687,416     $ 2,155,738     $ 1,337,011     $ 294,614     $ 84,115     $ 317,922     $ 4,876,816  
   
Loans evaluated for impairment  
  Individually   $ 1,233,885     $ 1,558,186     $ 1,374,851     $ 370,775     $ 0             $ 4,537,697  
  Collectively     63,241,499       162,744,657       167,992,858       44,193,251       7,883,342               446,055,607  
     Total   $ 64,475,384     $ 164,302,843     $ 169,367,709     $ 44,564,026     $ 7,883,342             $ 450,593,304  
Impaired loans by segment

Impaired loans, by portfolio segment, were as follows:

 

    As of June 30, 2015              
          Unpaid           Average     Average  
    Recorded     Principal     Related     Recorded     Recorded  
    Investment     Balance     Allowance     Investment(1)     Investment(2)  
                               
With no related allowance recorded                              
   Commercial & industrial   $ 502,237     $ 560,173     $ 0     $ 555,057     $ 300,144  
   Commercial real estate     1,845,751       1,856,008       0       1,976,769       1,136,004  
   Residential real estate - 1st lien     1,095,830       1,470,050       0       780,255       433,329  
   Residential real estate - Jr lien     0       0       0       120,465       113,964  
    $ 3,443,818     $ 3,886,231     $ 0     $ 3,432,546     $ 1,983,441  
                                         
With an allowance recorded                                        
   Commercial & industrial   $ 91,940     $ 94,826     $ 70,000     $ 93,398     $ 37,359  
   Commercial real estate     0       0       0       0       40,902  
   Residential real estate - 1st lien     249,989       284,200       71,800       302,937       144,196  
   Residential real estate - Jr lien     238,623       284,202       47,500       152,865       61,146  
    $ 580,552     $ 663,228     $ 189,300     $ 549,200     $ 283,603  
                                         
     Total   $ 4,024,370     $ 4,549,459     $ 189,300     $ 3,981,746     $ 2,267,044  
   
(1) For the three months ended June 30, 2015  
(2) For the six months ended June 30, 2015  

 

    As of December 31, 2014     2014  
          Unpaid           Average  
    Recorded     Principal     Related     Recorded  
    Investment     Balance     Allowance     Investment  
                         
With no related allowance recorded                        
   Commercial & industrial   $ 390,605     $ 424,598     $ 0     $ 507,232  
   Commercial real estate     1,726,482       1,689,772       0       1,294,710  
   Residential real estate - 1st lien     606,133       875,841       0       971,542  
   Residential real estate - Jr lien     328,889       390,260       0       238,826  
    $ 3,052,109     $ 3,380,471     $ 0     $ 3,012,310  
                                 
With an allowance recorded                                
   Commercial & industrial   $ 0     $ 0     $ 0     $ 158,690  
   Commercial real estate     204,511       220,981       34,400       280,104  
   Residential real estate - 1st lien     115,108       144,708       43,400       294,807  
   Residential real estate - Jr lien     0       0       0       149,772  
    $ 319,619     $ 365,689     $ 77,800     $ 883,373  
                                 
     Total   $ 3,371,728     $ 3,746,160     $ 77,800     $ 3,895,683  

 

    As of June 30, 2014              
          Unpaid           Average     Average  
    Recorded     Principal     Related     Recorded     Recorded  
    Investment     Balance     Allowance     Investment(1)     Investment(2)  
                               
With no related allowance recorded  
   Commercial & industrial   $ 819,016     $ 884,377     $ 0     $ 552,178     $ 472,955  
   Commercial real estate     1,337,570       1,431,199       0       1,248,510       1,147,288  
   Residential real estate - 1st lien     832,008       905,092       0       1,042,268       1,146,323  
   Residential real estate - Jr lien     269,912       316,506       0       183,089       176,772  
    $ 3,258,506     $ 3,537,174     $ 0     $ 3,026,045     $ 2,943,338  
With an allowance recorded                                        
   Commercial & industrial     414,869       415,759       99,300       238,953       179,031  
   Commercial real estate     220,616       231,221       18,900       165,405       257,481  
   Residential real estate - 1st lien     542,843       579,363       100,600       394,924       408,070  
   Residential real estate - Jr lien     100,863       109,217       13,100       176,875       249,621  
    $ 1,279,191     $ 1,335,560     $ 231,900     $ 976,157     $ 1,094,203  
                                         
     Total   $ 4,537,697     $ 4,872,734     $ 231,900     $ 4,002,202     $ 4,037,541  
                                         
(1) For the three months ended June 30, 2014                                  
(2) For the six months ended June 30, 2014                                  
Risk ratings

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

 

As of June 30, 2015  
                Residential     Residential              
    Commercial     Commercial     Real Estate     Real Estate              
    & Industrial     Real Estate     1st Lien     Jr Lien     Consumer     Total  
                                     
Group A   $ 70,152,385     $ 162,191,020     $ 158,224,270     $ 43,196,452     $ 7,420,249     $ 441,184,376  
Group B     2,451,677       4,819,930       231,391       228,892       0       7,731,890  
Group C     957,063       5,554,271       3,654,255       391,208       8,987       10,565,784  
     Total   $ 73,561,125     $ 172,565,221     $ 162,109,916     $ 43,816,552     $ 7,429,236     $ 459,482,050  

 

As of December 31, 2014  
                Residential     Residential              
    Commercial     Commercial     Real Estate     Real Estate              
    & Industrial     Real Estate     1st Lien     Jr Lien     Consumer     Total  
                                     
Group A   $ 61,201,586     $ 157,767,641     $ 160,912,689     $ 44,018,956     $ 8,035,298     $ 431,936,170  
Group B     2,316,908       3,280,904       228,148       251,822       0       6,077,782  
Group C     871,726       5,563,285       2,825,287       530,705       0       9,791,003  
     Total   $ 64,390,220     $ 166,611,830     $ 163,966,124     $ 44,801,483     $ 8,035,298     $ 447,804,955  

 

As of June 30, 2014  
                Residential     Residential              
    Commercial     Commercial     Real Estate     Real Estate              
    & Industrial     Real Estate     1st Lien     Jr Lien     Consumer     Total  
                                     
Group A   $ 60,373,539     $ 155,124,213     $ 166,345,054     $ 43,883,107     $ 7,865,415     $ 433,591,328  
Group B     2,730,275       3,586,566       598,381       147,531       0       7,062,753  
Group C     1,371,570       5,592,064       2,424,274       533,388       17,927       9,939,223  
     Total   $ 64,475,384     $ 164,302,843     $ 169,367,709     $ 44,564,026     $ 7,883,342     $ 450,593,304  
Loans modified as TDRs

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

 

    Three months ended June 30, 2015     Six months ended June 30, 2015  
          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  
                                     
Commercial & industrial     3     $ 198,999     $ 198,829       3     $ 198,999     $ 198,829  
Residential real estate                                                
 - 1st lien     3       618,317       660,196       8       962,646       1,021,102  
 - Jr lien     0       0       0       2       117,745       121,672  
          Total     6     $ 817,316     $ 859,025       13     $ 1,279,390     $ 1,341,603  

 

    Year ended December 31, 2014  
          Pre-     Post-  
          Modification     Modification  
          Outstanding     Outstanding  
    Number of     Recorded     Recorded  
    Contracts     Investment     Investment  
                   
Commercial real estate     1     $ 301,823     $ 301,823  
Residential real estate - 1st lien     11       1,294,709       1,332,336  
          Total     12     $ 1,596,532     $ 1,634,159  

 

   Three months ended June 30, 2014  Six months ended June 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   3   $218,330   $237,090    6   $480,899   $510,737 
TDRs payment default

The TDR’s for which there was a payment default during the twelve month periods presented were as follows:

 

Twelve months ended June 30, 2015            
    Number of     Recorded  
    Contracts     Investment  
             
Commercial     1     $ 82,336  
Residential real estate - 1st lien     3       258,568  
          Total     4     $ 340,904  

 

Year ended December 31, 2014

 

  
    Number of     Recorded  
    Contracts     Investment  
             
Residential real estate - 1st lien     2     $ 137,830  
                 

 

Twelve months ended June 30, 2014            
    Number of     Recorded  
    Contracts     Investment  
             
Residential real estate – 1st lien     5     $ 441,679