XML 45 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2013
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]  
Composition of the loan portfolio by type
The composition of the loan portfolio, net of deferred origination fees and cost, and unearned income is summarized as follows:
 
 
 
December 31, 2013
  
December 31, 2012
 
Commercial and agricultural:
 
  
 
Commercial and industrial
 
$
144,786,585
  
$
133,154,615
 
Agricultural
  
575,670
   
696,666
 
Commercial mortgages:
        
Construction
  
27,440,372
   
43,269,303
 
Commercial mortgages
  
345,706,661
   
276,928,123
 
Residential mortgages
  
195,996,599
   
200,475,097
 
Consumer loans:
        
Credit cards
  
1,756,414
   
1,851,145
 
Home equity lines and loans
  
95,905,130
   
87,045,421
 
Indirect consumer loans
  
164,845,874
   
130,573,200
 
Direct consumer loans
  
18,852,459
   
19,523,371
 
Total loans, net of deferred origination fees and costs, and unearned income
 
$
995,865,764
  
$
893,516,941
 
Interest receivable on loans
  
2,597,301
   
2,383,998
 
Total recorded investment in loans
 
$
998,463,065
  
$
895,900,939
 
Allowance for loan losses by portfolio segment
The following tables present the activity in the allowance for loan losses by portfolio segment for the years ending December 31, 2013, 2012 and 2011, respectively:

 
 
December 31, 2013
 
Allowance for loan losses
 
Commercial,
and
Agricultural
  
Commercial
Mortgages
  
Residential
Mortgages
  
Consumer
Loans
  
Unallocated
  
Total
 
Beginning balance:
 
$
1,707,596
  
$
4,427,698
  
$
1,565,571
  
$
2,705,639
  
$
26,146
  
$
10,432,650
 
Charge Offs:
  
(186,045
)
  
(44,049
)
  
(124,277
)
  
(1,139,061
)
  
-
   
(1,493,432
)
Recoveries:
  
537,476
   
97,953
   
65,180
   
381,015
   
-
   
1,081,624
 
Net recoveries (charge offs)
  
351,431
   
53,904
   
(59,097
)
  
(758,046
)
  
-
   
(411,808
)
Provision
  
(80,338
)
  
1,761,394
   
10,418
   
1,089,398
   
(26,146
)
  
2,754,726
 
Ending balance
 
$
1,978,689
  
$
6,242,996
  
$
1,516,892
  
$
3,036,991
  
$
-
  
$
12,775,568
 

 
 
December 31, 2012
 
Allowance for loan losses
 
Commercial,
and
Agricultural
  
Commercial
Mortgages
  
Residential
Mortgages
  
Consumer
Loans
  
Unallocated
  
Total
 
Beginning balance:
 
$
3,143,373
  
$
2,570,149
  
$
1,309,649
  
$
2,192,729
  
$
443,420
  
$
9,659,320
 
Reclassification of acquired loan discount
  
73,229
   
50,331
   
-
   
-
   
-
   
123,560
 
Charge Offs:
  
(180,999
)
  
(335,093
)
  
(82,442
)
  
(673,885
)
  
-
   
(1,272,419
)
Recoveries:
  
802,056
   
54,637
   
-
   
237,929
   
-
   
1,094,622
 
Net recoveries (charge offs)
  
621,057
   
(280,456
)
  
(82,442
)
  
(435,956
)
  
-
   
(177,797
)
Provision
  
(2,130,063
)
  
2,087,674
   
338,364
   
948,866
   
(417,274
)
  
827,567
 
Ending balance
 
$
1,707,596
  
$
4,427,698
  
$
1,565,571
  
$
2,705,639
  
$
26,146
  
$
10,432,650
 

 
 
December 31, 2011
 
Allowance for loan losses
 
Commercial,
and
Agricultural
  
Commercial
Mortgages
  
Residential
Mortgages
  
Consumer
Loans
  
Unallocated
  
Total
 
Beginning balance:
 
$
2,118,299
  
$
2,575,058
  
$
1,301,780
  
$
2,727,022
  
$
775,972
  
$
9,498,131
 
Charge Offs:
  
(686,192
)
  
(19,206
)
  
(67,333
)
  
(725,826
)
  
-
   
(1,498,557
)
Recoveries:
  
423,422
   
40,717
   
44,953
   
192,321
   
-
   
701,413
 
Net (charge offs) recoveries
  
(262,770
)
  
21,511
   
(22,380
)
  
(533,505
)
  
-
   
(797,144
)
Provision
  
1,287,844
   
(26,420
)
  
30,249
   
(788
)
  
(332,552
)
  
958,333
 
Ending balance
 
$
3,143,373
  
$
2,570,149
  
$
1,309,649
  
$
2,192,729
  
$
443,420
  
$
9,659,320
 
Allowance for loan losses and the recorded investment in loans based on impairment method
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2013 and December 31, 2012:

   
December 31, 2013
Allowance for loan losses
 
Commercial,  and Agricultural
   
Commercial Mortgages
   
Residential Mortgages
   
Consumer Loans
   
Unallocated
   
Total
 
Ending allowance balance
  attributable to loans:
                                   
Individually evaluated for
  impairment
 
$
575,995
   
$
466,055
   
$
-
   
$
3,972
   
$
-
   
$
1,046,022
 
Collectively evaluated for
  impairment
   
1,402,694
     
4,407,377
     
1,497,214
     
3,033,019
     
-
     
10,340,304
 
Loans acquired with
  deteriorated credit quality
   
-
     
1,369,564
     
19,678
     
-
     
-
     
1,389,242
 
Total ending allowance balance
 
$
1,978,689
   
$
6,242,996
   
$
1,516,892
   
$
3,036,991
   
$
-
   
$
12,775,568
 


   
December 31, 2012
Allowance for loan losses
 
Commercial,  and Agricultural
   
Commercial Mortgages
   
Residential Mortgages
   
Consumer Loans
   
Unallocated
   
Total
 
Ending allowance balance attributable to loans:
                                   
Individually evaluated for impairment
 
$
133,437
   
$
59,201
   
$
-
   
$
-
   
$
-
   
$
192,638
 
Collectively evaluated for impairment
   
1,459,432
     
3,533,365
     
1,565,571
     
2,705,639
     
26,146
     
9,290,153
 
Loans acquired with
  Deteriorated credit quality
   
114,727
     
835,132
     
-
     
-
     
-
     
949,859
 
Total ending allowance balance
 
$
1,707,596
   
$
4,427,698
   
$
1,565,571
   
$
2,705,639
   
$
26,146
   
$
10,432,650
 
 
   
December 31, 2013
 
Loans:
 
Commercial
and
Agricultural
   
Commercial Mortgages
   
Residential Mortgages
   
Consumer Loans
   
Total
 
Loans individually
  evaluated for impairment
 
$
2,945,524
   
$
10,702,816
   
$
117,278
   
$
130,929
   
$
13,896,547
 
Loans collectively
  evaluated for  impairment
   
142,107,931
     
354,636,380
     
196,146,739
     
281,978,972
     
974,870,022
 
Loans acquired with deteriorated
  credit quality
   
678,383
     
8,756,562
     
261,551
     
-
     
9,696,496
 
Total ending loans balance
 
$
145,731,838
   
$
374,095,758
   
$
196,525,568
   
$
282,109,901
   
$
998,463,065
 



   
December 31, 2012
 
Loans:
 
Commercial
and
Agricultural
   
Commercial Mortgages
   
Residential Mortgages
   
Consumer Loans
   
Total
 
Loans individually
  evaluated for impairment
 
$
1,907,395
   
$
10,620,274
   
$
131,909
   
$
-
   
$
12,659,578
 
Loans collectively
  evaluated for  impairment
   
131,045,609
     
301,172,164
     
200,622,600
     
239,689,455
     
872,529,828
 
Loans acquired with deteriorated
  credit quality
   
1,241,418
     
9,225,847
     
244,268
     
-
     
10,711,533
 
Total ending loans balance
 
$
134,194,422
   
$
321,018,285
   
$
200,998,777
   
$
239,689,455
   
$
895,900,939
 
 
Summary of impaired financing receivables
The following tables present loans individually evaluated for impairment recognized by class of loans as of December 31, 2013 and December 31, 2012, the average recorded investment and interest income recognized by class of loans as of the years ending December 31, 2013 and 2012:
 
   
December 31, 2013
 
December 31, 2012
 
   
Unpaid Principal Balance
   
Recorded Investment
   
Allowance for Loan Losses Allocated
   
Unpaid Principal Balance
   
Recorded Investment
     
Allowance for Loan Losses Allocated
   
With no related allowance recorded:
                                       
Commercial and agricultural:
                                       
  Commercial and industrial
 
$
1,905,782
   
$
1,909,412
   
$
-
   
$
2,059,027
 
$
1,462,157
   
$
-
   
Commercial mortgages:
                                               
  Construction
   
2,329,223
     
2,318,729
     
-
     
5,168,353
   
5,166,853
     
-
   
  Commercial mortgages other
   
7,406,355
     
7,439,358
     
-
     
5,678,565
   
5,090,399
     
-
   
Residential mortgages
   
117,278
     
117,278
     
-
     
131,909
   
131,909
     
-
   
Consumer loans:
                                               
  Home equity lines and loans
   
70,970
     
72,730
     
-
     
-
   
-
     
-
   
With an allowance recorded:
                                               
Commercial and agricultural:
                                               
  Commercial and industrial
   
1,036,381
     
1,036,112
     
575,995
     
446,330
   
445,238
     
133,437
   
Commercial mortgages:
                                               
  Commercial mortgages other
   
951,241
     
944,729
     
466,055
     
364,423
   
363,022
     
59,201
   
Consumer loans:
                                               
  Home equity lines and loans
   
57,828
     
58,199
     
3,972
     
-
   
-
     
-
   
  Total
 
$
13,875,058
   
$
13,896,547
   
$
1,046,022
   
$
13,848,607
 
$
12,659,578
   
$
192,638
   


   
December 31, 2013
   
December 31, 2012
   
December 31, 2011
   
   
Average Recorded Investment
   
Interest Income Recognized (1)
   
Average Recorded Investment
   
Interest Income Recognized (1)
   
Average Recorded Investment
     
Interest Income Recognized (1)
   
With no related allowance recorded:
                                       
Commercial and agricultural:
                                       
  Commercial and industrial
 
$
1,604,773
   
$
71,088
   
$
480,755
   
$
632
 
$
3,029,611
   
$
28,796
   
Commercial mortgages:
                                               
  Construction
   
3,364,173
     
95,235
     
73,316
     
870
   
20,578
     
-
   
  Commercial mortgages other
   
5,990,852
     
249,459
     
1,989,795
     
10,338
   
2,743,345
     
4,959
   
Residential mortgages
   
124,896
     
-
     
105,880
     
-
   
250,391
     
-
   
Consumer loans:
                                               
  Home equity lines & loans
   
47,472
     
2,043
     
29,784
     
-
   
-
     
-
   
With an allowance recorded:
                                               
Commercial and agricultural:
                                               
  Commercial and industrial
   
719,453
     
-
     
1,830,896
     
-
   
2,065,263
     
-
   
Commercial mortgages:
                                               
  Construction
   
-
     
-
     
4,148
     
-
   
14,893
     
-
   
  Commercial mortgages other
   
866,722
     
-
     
872,292
     
-
   
1,521,828
     
-
   
Residential mortgages
   
-
     
-
     
64,003
     
-
   
-
     
-
   
Consumer loans:
                             
 
               
  Home equity lines and loans
   
46,520
     
3,437
     
-
     
-
                 
  Direct consumer loans
   
3,050
     
-
     
-
     
-
   
-
     
-
   
  Total
 
$
12,767,911
   
$
421,262
   
$
5,450,869
   
$
11,840
 
$
9,645,909
   
$
33,755
   
 
Recorded investment in past due and non-accrual status by class of loans
The following tables present the recorded investment in past due and non-accrual status by class of loans as of December 31, 2013 and December 31, 2012:
                                                 
December 31, 2013
 
Current
   
30-89 Days Past Due
   
90 Days or more Past Due and accruing
     
Loans acquired with deteriorated credit quality
   
Non-Accrual (1)
   
Total
 
Commercial and agricultural:
                                     
  Commercial and industrial
 
$
143,099,999
   
$
28,888
   
$
-
   
$
678,383
   
$
1,347,435
   
$
145,154,705
 
  Agricultural
   
577,133
     
-
     
-
     
-
     
-
     
577,133
 
Commercial mortgages:
                                               
  Construction
   
24,743,496
     
-
     
1,453,180
     
773,738
     
539,725
     
27,510,139
 
  Commercial mortgages other
   
335,122,887
     
1,137,897
     
-
     
7,982,824
     
2,342,011
     
346,585,619
 
Residential mortgages
   
187,448,407
     
5,457,860
     
-
     
261,551
     
3,357,750
     
196,525,568
 
Consumer loans:
                                               
  Credit cards
   
1,727,573
     
9,427
     
19,414
     
-
     
-
     
1,756,414
 
  Home equity lines and loans
   
95,348,467
     
150,238
     
-
     
-
     
635,373
     
96,134,078
 
  Indirect consumer loans
   
163,809,750
     
1,235,404
     
-
     
-
     
249,258
     
165,294,412
 
  Direct consumer loans
   
18,830,404
     
49,155
     
-
     
-
     
45,438
     
18,924,997
 
  Total
 
$
970,708,116
   
$
8,068,869
   
$
1,472,594
   
$
9,696,496
   
$
8,516,990
   
$
998,463,065
 
(1)  Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2013.


                                                 
December 31, 2012
 
Current
   
30-89 Days Past Due
   
90 Days or more Past Due and accruing
     
Loans acquired with deteriorated credit quality
   
Non-Accrual (1)
   
Total
 
Commercial and agricultural:
                                     
  Commercial and industrial
 
$
131,404,371
   
$
183,269
   
$
-
   
$
1,241,418
   
$
666,912
   
$
133,495,970
 
  Agricultural
   
698,452
     
-
     
-
     
-
     
-
     
698,452
 
Commercial mortgages:
                                               
  Construction
   
36,988,222
     
294,565
     
4,481,066
     
1,182,037
     
434,338
     
43,380,228
 
  Commercial mortgages other
   
266,261,798
     
1,750,806
     
-
     
8,043,810
     
1,581,643
     
277,638,057
 
Residential mortgages
   
194,185,617
     
4,145,868
     
-
`
   
244,268
     
2,423,024
     
200,998,777
 
Consumer loans:
                                               
  Credit cards
   
1,847,837
     
-
     
3,308
     
-
     
-
     
1,851,145
 
  Home equity lines and loans
   
86,486,781
     
211,739
     
-
     
-
     
571,365
     
87,269,885
 
  Indirect consumer loans
   
129,789,672
     
852,818
     
-
     
-
     
335,285
     
130,977,775
 
 Direct consumer loans
   
19,481,693
     
89,619
     
-
     
-
     
19,338
     
19,590,650
 
  Total
 
$
867,144,443
   
$
7,528,684
   
$
4,484,374
   
$
10,711,533
   
$
6,031,905
   
$
895,900,939
 
(1)  Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2012.
 
Loans by class modified as troubled debt restructurings
The following table presents loans by class modified as troubled debt restructurings that occurred during the years ending December 31, 2013 and 2012:

December 31, 2013
 
Number of Loans
   
Pre-Modification Outstanding Recorded Investment
   
Post-Modification Outstanding Recorded Investment
   
Troubled debt restructurings:
                   
  Commercial and agricultural:
                         
    Commercial and industrial
   
5
   
$
1,342,690
   
$
1,342,690
   
  Commercial mortgages:
                         
    Construction
   
1
     
325,957
     
325,957
   
    Commercial mortgage other
   
1
     
133,000
     
133,000
   
  Consumer loans:
                         
    Home equity lines and loans
   
3
     
134,225
     
134,255
   
Total
   
10
   
$
1,935,872
   
$
1,935,872
   


December 31, 2012
 
Number of Loans
   
Pre-Modification Outstanding Recorded Investment
   
Post-Modification Outstanding Recorded Investment
   
Troubled debt restructurings:
                   
  Commercial and agricultural:
                         
    Commercial and industrial
   
4
   
$
1,307,188
   
$
1,307,188
   
  Commercial mortgages:
                         
    Construction
   
1
     
251,448
     
251,448
   
    Commercial mortgage other
   
3
     
3,871,779
     
3,871,779
   
Total
   
8
   
$
5,430,415
   
$
5,430,415
   
Risk category of the recorded investment of loans by class of loans
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be not rated loans.  Based on the analyses performed as of December 31, 2013 and December 31, 2012, the risk category of the recorded investment of loans by class of loans is as follows:

 
December 31, 2013
     
   
Not Rated
   
Pass
   
Loans acquired with deteriorated credit quality
   
Special Mention
   
Substandard
   
Doubtful
   
Commercial and agricultural:
                                     
  Commercial and industrial
 
$
-
   
$
133,614,964
   
$
678,383
   
$
5,116,316
   
$
4,724,318
   
$
1,020,725
   
  Agricultural
   
-
     
577,133
     
-
     
-
     
-
     
-
   
Commercial mortgages:
                                                 
  Construction
   
-
     
23,087,004
     
773,738
     
2,783,848
     
865,549
     
-
   
  Commercial mortgage other
   
-
     
313,955,960
     
7,982,824
     
13,611,331
     
11,035,504
     
-
   
Residential mortgages
   
192,995,108
     
-
     
261,551
     
-
     
3,268,909
     
-
   
Consumer loans:
                                                 
  Credit cards
   
1,756,414
     
-
     
-
     
-
     
-
     
-
   
  Home equity lines and loans
   
95,421,822
     
-
     
-
     
-
     
712,256
     
-
   
  Indirect consumer loans
   
165,045,154
     
-
     
-
     
-
     
249,257
     
-
   
  Direct consumer loans
   
18,879,559
     
-
     
-
     
-
     
45,438
     
-
   
Total
 
$
474,098,057
   
$
471,235,061
   
$
9,696,496
   
$
21,511,495
   
$
20,901,231
   
$
1,020,725
   
 
 
December 31, 2012
     
   
Not Rated
   
Pass
   
Loans acquired with deteriorated credit quality
   
Special Mention
   
Substandard
   
Doubtful
   
Commercial and agricultural:
                                     
  Commercial and industrial
 
$
-
   
$
121,145,761
   
$
1,241,418
   
$
8,008,002
   
$
2,606,529
   
$
494,260
   
  Agricultural
   
-
     
698,452
     
-
     
-
     
-
     
-
   
Commercial mortgages:
                                                 
  Construction
   
-
     
34,882,896
     
1,182,037
     
5,153,918
     
2,161,377
     
-
   
  Commercial mortgage other
   
-
     
247,793,150
     
8,043,810
     
11,974,716
     
9,826,381
     
-
   
Residential mortgages
   
198,336,641
     
-
     
244,268
     
-
     
2,417,868
     
-
   
Consumer loans:
                                                 
  Credit cards
   
1,851,145
     
-
     
-
     
-
     
-
     
-
   
  Home equity lines and loans
   
86,615,392
     
-
     
-
     
-
     
654,493
     
-
   
  Indirect consumer loans
   
130,642,490
     
-
     
-
     
-
     
335,285
     
-
   
  Direct consumer loans
   
19,571,312
     
-
     
-
     
-
     
19,338
     
-
   
Total
 
$
437,016,980
   
$
404,520,259
   
$
10,711,533
   
$
25,136,636
   
$
18,021,271
   
$
494,260
   

Recorded investment in residential and consumer loans based on payment activity
 
The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2013 and December 31, 2012:

   
December 31, 2013
         
Consumer Loans
 
   
Residential Mortgages
   
Credit Card
   
Home Equity Lines and Loans
   
Indirect Consumer Loans
   
Other Direct Consumer Loans
 
Performing
 
$
193,167,818
   
$
1,737,000
   
$
95,498,705
   
$
165,045,154
   
$
18,879,559
 
Non-Performing
   
3,357,750
     
19,414
     
635,373
     
249,258
     
45,438
 
   
$
196,525,568
   
$
1,756,414
   
$
96,134,078
   
$
165,294,412
   
$
18,924,997
 


   
December 31, 2012
         
Consumer Loans
 
   
Residential Mortgages
   
Credit Card
   
Home Equity Lines and Loans
   
Indirect Consumer Loans
   
Other Direct Consumer Loans
 
Performing
 
$
198,575,753
   
$
1,847,837
   
$
86,698,520
   
$
130,642,490
   
$
19,571,312
 
Non-Performing
   
2,423,024
     
3,308
     
571,365
     
335,285
     
19,338
 
   
$
200,998,777
   
$
1,851,145
   
$
87,269,885
   
$
130,977,775
   
$
19,590,650
 

Summary of changes in contractually required principal and interest on loans acquired
 
The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from January 1, 2013 to December 31, 2013:
   
Balance at December 31, 2012
   
Income Accretion
   
All Other Adjustments
   
Balance at December 31, 2013
 
Contractually required principal and interest
 
$
16,896,078
   
$
-
   
$
(5,665,656
)
 
$
11,230,422
 
Contractual cash flows not expected to be collected
  (nonaccretable discount)
   
(3,655,500
)
   
-
     
3,112,751
     
(542,749
)
Cash flows expected to be collected
   
13,240,578
     
-
     
(2,552,905
)
   
10,687,673
 
Interest component of expected cash flows (accretable yield)
   
(2,529,045
)
   
1,162,653
     
375,215
     
(991,177
)
Fair value of loans acquired with deteriorating credit quality
 
$
10,711,533
   
$
1,162,653
   
$
(2,177,690
)
 
$
9,696,496