Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2012

Allowance for Loan Losses [Abstract]

Allowance for loan losses

Changes in the allowance for loan losses for the years ended December 31 are as follows:

	December 31
	2012			2011			2010
Balance, Beginning of Year	$	15,649,594		$	28,280,077		$	31,400,641
Provision for Loan Losses		6,784,767			8,250,000			13,350,000
Loans Charged Off		(10,454,175	)		(22,850,673	)		(17,622,454	)
Recoveries of Loans Previously Charged Off		756,735			1,970,190			1,151,890
Balance, End of Year	$	12,736,921		$	15,649,594		$	28,280,077

The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the years ended December 31.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.

2012	Beginning Balance		Charge-Offs			Recoveries		Provision			Ending Balance
Commercial and Agricultural
Commercial	$	1,070,560	$	(653,389	)	$	139,802	$	424,048		$	981,021
Agricultural		297,168		(3,028	)		-		2,035			296,175
Real Estate
Commercial Construction		3,122,594		(4,106,124	)		209,352		2,664,378			1,890,200
Residential Construction		138,092		-			-		-			138,092
Commercial		6,448,064		(4,325,642	)		232,880		2,807,537			5,162,839
Residential		3,695,357		(960,620	)		47,690		623,520			3,405,947
Farmland		364,663		(224,725	)		4,716		145,872			290,526
Consumer and Other
Consumer		205,154		(169,249	)		81,956		109,913			227,774
Other		307,942		(11,398	)		40,339		7,464			344,347
	$	15,649,594	$	(10,454,175	)	$	756,735	$	6,784,767		$	12,736,921
2011
Commercial and Agricultural
Commercial	$	4,414,817	$	(841,887	)	$	127,490	$	(2,629,860	)	$	1,070,560
Agricultural		698,637		(455,165	)		454,453		(400,757	)		297,168
Real Estate
Commercial Construction		4,126,043		(6,957,181	)		557,168		5,396,564			3,122,594
Residential Construction		519,766		(481	)		-		(381,193	)		138,092
Commercial		8,029,525		(12,492,097	)		527,996		10,382,640			6,448,064
Residential		5,941,696		(1,704,887	)		149,173		(690,625	)		3,695,357
Farmland		944,323		(60,447	)		411		(519,624	)		364,663
Consumer and Other
Consumer		3,074,220		(222,878	)		145,279		(2,791,467	)		205,154
Other		531,050		(115,650	)		8,220		(115,678	)		307,942
	$	28,280,077	$	(22,850,673	)	$	1,970,190	$	8,250,000		$	15,649,594

2010	Beginning Balance		Charge-Offs			Recoveries		Provision		Ending Balance
Commercial and Agricultural
Commercial	$	3,930,760	$	(469,214	)	$	80,181	$	873,090	$	4,414,817
Agricultural		779,337		(255,627	)		1,377		173,550		698,637
Real Estate
Commercial Construction		7,402,484		(4,648,124	)		184,868		1,186,815		4,126,043
Residential Construction		447,676		-			-		72,090		519,766
Commercial		8,790,443		(7,459,619	)		141,931		6,556,770		8,029,525
Residential		5,025,839		(2,929,668	)		439,940		3,405,585		5,941,696
Farmland		942,019		(271,750	)		7,639		266,415		944,323
Consumer and Other
Consumer		2,826,058		(548,834	)		245,641		551,355		3,074,220
Other		1,256,025		(1,039,618	)		50,313		264,330		531,050
	$	31,400,641	$	(17,622,454	)	$	1,151,890	$	13,350,000	$	28,280,077

Allowance for loan losses, segregated by impairment methodology

The Company determines its individual loan reserves during its quarterly review of substandard loans.  This process involves reviewing all loans with a risk grade of 6 or greater and an outstanding relationship balance of $50,000 or more, regardless of the loan's impairment classification.  Since not all loans in the substandard category are considered impaired, this quarterly review process may result in the identification of specific reserves on nonimpaired loans.  Management considers those loans graded substandard, but not classified as impaired, to be higher risk loans and will make specific allocations of the allowance to those loans if warranted.  Since these loans are not considered impaired, they are included in the "Collectively Evaluated for Impairment" column of the following tables.  At December 31, 2012 and 2011, substandard loans, not classified as impaired, for which a specific allocation was made totaled $10,795,911 and $16,746,384, respectively.  The specific allocation associated with these loans for December 31, 2012 and 2011 was $898,773 and $1,926,438.  At December 31, 2012, 2011 and 2010, impaired loans totaling $1,026,624, $995,168 and $976,971, respectively, were below the $50,000 review threshold and were not individually reviewed for impairment.  Those loans were subject to the bank's general loan loss reserve methodology and are included in the "Collectively Evaluated for Impairment" column of the following tables.  The following tables present breakdowns of the allowance for loan losses, segregated by impairment methodology for December 31, 2012 and 2011:

	Ending Allowance Balance						Ending Loan Balance
2012	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Commercial and Agricultural
Commercial	$	462,555	$	518,466	$	981,021	$	2,512,133	$	53,172,359	$	55,684,492
Agricultural		-		296,175		296,175		-		6,210,953		6,210,953
Real Estate
Commercial Construction		1,732,534		157,666		1,890,200		13,892,135		39,915,921		53,808,056
Residential Construction		-		138,092		138,092		-		5,852,238		5,852,238
Commercial		1,236,526		3,926,313		5,162,839		28,205,405		306,180,772		334,386,177
Residential		840,492		2,565,455		3,405,947		8,022,249		195,822,273		203,844,522
Farmland		-		290,526		290,526		2,393,775		46,663,086		49,056,861
Consumer and Other
Consumer		-		227,774		227,774		28,007		29,749,769		29,777,776
Other		-		344,347		344,347		17,491		8,411,445		8,428,936
Total End of Year Balance	$	4,272,107	$	8,464,814	$	12,736,921	$	55,071,195	$	691,978,816	$	747,050,011

	Ending Allowance Balance						Ending Loan Balance
2011	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Commercial and Agricultural
Commercial	$	308,211	$	762,349	$	1,070,560	$	2,237,878	$	46,748,224	$	48,986,102
Agricultural		-		297,168		297,168		-		8,421,884		8,421,884
Real Estate
Commercial Construction		2,693,571		429,023		3,122,594		24,212,519		34,333,301		58,545,820
Residential Construction		-		138,092		138,092		-		3,530,502		3,530,502
Commercial		2,060,815		4,387,249		6,448,064		35,715,026		279,565,722		315,280,748
Residential		674,998		3,020,359		3,695,357		5,614,744		188,023,073		193,637,817
Farmland		11,878		352,785		364,663		486,683		47,738,723		48,225,406
Consumer and Other
Consumer		1,632		203,522		205,154		9,596		30,439,707		30,449,303
Other		-		307,942		307,942		-		9,243,739		9,243,739
Total End of Year Balance	$	5,751,105	$	9,898,489	$	15,649,594	$	68,276,446	$	648,044,875	$	716,321,321

	Ending Allowance Balance						Ending Loan Balance
2010	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Commercial and Agricultural
Commercial	$	336,011	$	4,078,806	$	4,414,817	$	2,131,375	$	51,088,966	$	53,220,341
Agricultural		-		698,637		698,637		274,679		10,277,112		10,551,791
Real Estate
Commercial Construction		3,501,117		624,926		4,126,043		28,392,107		43,917,124		72,309,231
Residential Construction		-		519,766		519,766		194,881		4,178,130		4,373,011
Commercial		7,539,533		489,992		8,029,525		58,562,946		304,315,619		362,878,565
Residential		1,561,952		4,379,744		5,941,696		13,645,907		193,825,906		207,471,813
Farmland		-		944,323		944,323		1,416,538		51,361,851		52,778,389
Consumer and Other
Consumer		3,033		3,071,187		3,074,220		76,420		33,487,443		33,563,863
Other		-		531,050		531,050		113,002		15,990,667		16,103,669
Total End of Year Balance	$	12,941,646	$	15,338,431	$	28,280,077	$	104,807,855	$	708,442,818	$	813,250,673