Loans Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable, net, consisted of the following as of the dates shown:



	June 30, 2013			December 31, 2012
Residential Real Estate Loans	$	86,599,007		$	90,677,625
Consumer Loans	52,847,476			56,595,093
Commercial Business	7,454,477			8,063,901
Commercial Real Estate	236,750,839			250,924,094
Total Loans Held For Investment	383,651,799			406,260,713
Loans Held For Sale	3,474,933			4,770,760
Total Loans Receivable, Gross	387,126,732			411,031,473
Less:
Allowance For Loan Losses	11,007,279			11,318,371
Loans In Process	2,085,769			2,002,595
Deferred Loan Fees (Costs)	(15,415		)	4,687
	13,077,633			13,325,653
Total Loans Receivable, Net	$	374,049,099		$	397,705,820

Schedule of Allowance for Loan Losses

Changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 are summarized as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Balance At Beginning Of Period	$	11,105,226		$	14,615,198		$	11,318,371		$	14,261,374
Provision For Loan Losses	900,000			725,000			2,045,381			2,675,000
Charge Offs	(1,081,851		)	(2,822,025		)	(2,467,311		)	(4,439,535		)
Recoveries	83,904			166,154			110,838			187,488
Total Allowance For Loan Losses	$	11,007,279		$	12,684,327		$	11,007,279		$	12,684,327

Financing Receivable Credit Quality Indicators

The following tables list the loan grades used by the Company as credit quality indicators and the balance in each category at the dates presented, excluding loans held for sale.



	Credit Quality Measures
June 30, 2013	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	78,789,013	$	486,435	$	408,320	$	6,915,239	$	86,599,007
Consumer	50,822,120		148,152		170,351		1,706,853		52,847,476
Commercial Business	5,951,357		240,266		465,402		797,452		7,454,477
Commercial Real Estate	146,176,809		37,793,000		20,616,263		32,164,767		236,750,839
Total	$	281,739,299	$	38,667,853	$	21,660,336	$	41,584,311	$	383,651,799

9. Loans Receivable, Net, Continued



	Credit Quality Measures
December 31, 2012	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	82,565,630	$	222,046	$	293,079	$	7,596,870	$	90,677,625
Consumer	54,899,665		152,368		184,731		1,358,329		56,595,093
Commercial Business	7,256,607		151,521		514,253		141,520		8,063,901
Commercial Real Estate	162,570,021		32,049,447		17,417,778		38,886,848		250,924,094
Total	$	307,291,923	$	32,575,382	$	18,409,841	$	47,983,567	$	406,260,713

Past Due Financing Receivables

The following table presents an age analysis of past due balances by category at June 30, 2013:



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable
Residential Real Estate	$	2,474,549	$	636,030	$	3,053,149	$	6,163,728	$	80,435,279	$	86,599,007
Consumer	794,883		688,555		505,138		1,988,576		50,858,900		52,847,476
Commercial Business	230,356		132,802		2,264		365,422		7,089,055		7,454,477
Commercial Real Estate	8,931,343		2,600,012		8,644,831		20,176,186		216,574,653		236,750,839
Total	$	12,431,131	$	4,057,399	$	12,205,382	$	28,693,912	$	354,957,887	$	383,651,799

The following table presents an age analysis of past due balances by category at December 31, 2012:



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable
Residential Real Estate	$	—	$	1,794,644	$	3,757,801	$	5,552,445	$	85,125,180	$	90,677,625
Consumer	1,862,611		211,756		646,136		2,720,503		53,874,590		56,595,093
Commercial Business	445,113		36,079		86,991		568,183		7,495,718		8,063,901
Commercial Real Estate	2,432,423		4,852,227		13,913,190		21,197,840		229,726,254		250,924,094
Total	$	4,740,147	$	6,894,706	$	18,404,118	$	30,038,971	$	376,221,742	$	406,260,713

Schedule of Financing Receivables, Non Accrual Status

9. Loans Receivable, Net, Continued

The following table shows non-accrual loans by category at June 30, 2013 compared to December 31, 2012:



	At June 30, 2013				At December 31, 2012				$			%
	Amount		Percent ⁽¹⁾		Amount		Percent ⁽¹⁾		Decrease			Decrease
Non-accrual Loans:
Residential Real Estate	$	3,053,149	0.8	%	$	3,757,801	0.9	%	$	(704,652	)	(18.8	)%
Commercial Business	2,264		—		86,991		—		(84,727		)	(97.4	)
Commercial Real Estate	8,644,831		2.3		13,913,190		3.4		(5,268,359		)	(37.9	)
Consumer	505,138		0.1		646,136		0.2		(140,998		)	(21.8	)
Total Non- accrual Loans	$	12,205,382	3.2	%	$	18,404,118	4.5	%	$	(6,198,736	)	(33.7	)%

^{(1) PERCENT OF GROSS LOANS RECEIVABLE, NET OF DEFERRED FEES AND LOANS IN PROCESS AND LOANS HELD FOR SALE.}

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent

The following tables show the activity in the allowance for loan losses by category for the periods indicated:



	For the Three Months Ended June 30, 2013
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	1,591,884		$	908,393		$	542,903		$	8,062,046		$	11,105,226
Provision	156,264			66,151			(57,981		)	735,566			900,000
Charge-Offs	(82,277		)	(96,499		)	—			(903,075		)	(1,081,851		)
Recoveries	—			10,868			3,632			69,404			83,904
Ending Balance	$	1,665,871		$	888,913		$	488,554		$	7,963,941		$	11,007,279



	For the Three Months Ended June 30, 2012
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	1,928,625		$	1,498,111		$	644,855		$	10,543,607		$	14,615,198
Provision	319,110			(134,166		)	16,574			523,482			725,000
Charge-Offs	(226,972		)	(120,427		)	(188,730		)	(2,285,896		)	(2,822,025		)
Recoveries	9,759			8,281			525			147,589			166,154
Ending Balance	$	2,030,522		$	1,251,799		$	473,224		$	8,928,782		$	12,684,327



	For the Six Months Ended June 30, 2013
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	1,521,559		$	1,001,271		$	618,919		$	8,176,622		$	11,318,371
Provision	255,835			(15,662		)	(135,047		)	1,940,255			2,045,381
Charge-Offs	(111,523		)	(116,075		)	(4,436		)	(2,235,277		)	(2,467,311		)
Recoveries	—			19,379			9,118			82,341			110,838
Ending Balance	$	1,665,871		$	888,913		$	488,554		$	7,963,941		$	11,007,279

9. Loans Receivable, Net, Continued



	For the Six Months Ended June 30, 2012
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	2,416,356		$	996,780		$	720,405		$	10,127,833		$	14,261,374
Provision	97,062			1,408,134			(59,501		)	1,229,305			2,675,000
Charge-Offs	(492,655		)	(1,182,205		)	(188,730		)	(2,575,945		)	(4,439,535		)
Recoveries	9,759			29,090			1,050			147,589			187,488
Ending Balance	$	2,030,522		$	1,251,799		$	473,224		$	8,928,782		$	12,684,327

Allowance for Credit Losses on Financing Receivables

he following tables present information related to impaired loans evaluated individually for impairment and collectively evaluated for impairment in loans receivable for the periods indicated:



	Loans Receivable
June 30, 2013	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	3,740,741	$	82,858,266	$	86,599,007
Consumer	304,436		52,543,040		52,847,476
Commercial Business	22,264		7,432,213		7,454,477
Commercial Real Estate	30,460,094		206,290,745		236,750,839
Total	$	34,527,535	$	349,124,264	$	383,651,799



	Loans Receivable
December 31, 2012	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	4,500,902	$	86,176,723	$	90,677,625
Consumer	322,588		56,272,505		56,595,093
Commercial Business	7,853		8,056,048		8,063,901
Commercial Real Estate	35,115,195		215,808,899		250,924,094
Total	$	39,946,538	$	366,314,175	$	406,260,713

The following tables present information related to impaired loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses:



	Allowance For Loan Losses
June 30, 2013	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	118,000	$	1,547,871	$	1,665,871
Consumer	—		888,913		888,913
Commercial Business	—		488,554		488,554
Commercial Real Estate	423,493		7,540,448		7,963,941
Total	$	541,493	$	10,465,786	$	11,007,279



	Allowance For Loan Losses
December 31, 2012	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	—	$	1,521,559	$	1,521,559
Consumer	—		1,001,271		1,001,271
Commercial Business	—		618,919		618,919
Commercial Real Estate	440,000		7,736,622		8,176,622
Total	$	440,000	$	10,878,371	$	11,318,371

Impaired Financing Receivables

The following tables are a summary of information related to impaired loans as of and for the three months ended June 30, 2013 and 2012.



			At				For The Three Months Ended June 30,
	June 30, 2013						2013				2012
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	3,143,808	$	3,372,407	$	—	$	3,202,717	$	3,890	$	2,385,897	$	19,202
Consumer Loans	304,436		368,436		—		300,998		2,875		1,139,528		3,498
Commercial Business	22,264		22,264		—		23,302		—		18,948		161
Commercial Real Estate	26,341,863		30,170,137		—		26,980,203		180,095		32,966,362		211,447
With An Allowance Recorded:
Residential Real Estate	596,933		596,933		118,000		596,933		1,938		1,088,933		—
Consumer Loans	—		—		—		—		—		9,784		—
Commercial Business	—		—		—		—		—		74,305		—
Commercial Real Estate	4,118,231		5,529,591		423,493		4,191,700		26,979		4,030,147		—
Total
Residential Real Estate	3,740,741		3,969,340		118,000		3,799,650		5,828		3,474,830		19,202
Consumer Loans	304,436		368,436		—		300,998		2,875		1,149,312		3,498
Commercial Business	22,264		22,264		—		23,302		—		93,253		161
Commercial Real Estate	30,460,094		35,699,728		423,493		31,171,903		207,074		36,996,509		211,447
Total	$	34,527,535	$	40,059,768	$	541,493	$	35,295,853	$	215,777	$	41,713,904	$	234,308

9. Loans Receivable, Net, Continued



	For The Six Months Ended June 30,
	2013				2012
Impaired Loans	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	3,236,129	$	6,087	$	2,225,982	$	78,521
Consumer Loans	300,783		3,467		1,768,913		10,581
Commercial Business	24,819		—		156,921		161
Commercial Real Estate	27,549,900		506,537		28,493,205		927,888
With An Allowance Recorded:
Residential Real Estate	596,933		9,548		837,521		6,137
Consumer Loans	—		—		18,983		—
Commercial Business	—		—		140,720		956
Commercial Real Estate	4,216,012		63,051		4,358,679		185,521
Total
Residential Real Estate	3,833,062		15,635		3,063,503		84,658
Consumer Loans	300,783		3,467		1,787,896		10,581
Commercial Business	24,819		—		297,641		1,117
Commercial Real Estate	31,765,912		569,588		32,851,884		1,113,409
Total	$	35,924,576	$	588,690	$	38,000,924	$	1,209,765

9. Loans Receivable, Net, Continued



	December 31, 2012
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	4,500,902	$	4,611,873	$	—	$	4,531,543	$	130,896
Consumer Loans	322,588		386,588		—		342,916		28,419
Commercial Business	7,853		7,853		—		12,236		—
Commercial Real Estate	31,808,577		35,373,833		—		32,963,079		1,036,344
With An Allowance Recorded:
Residential Real Estate	—		—		—		—		—
Consumer Loans	—		—		—		—		—
Commercial Business	—		—		—		—		—
Commercial Real Estate	3,306,618		4,766,031		440,000		3,705,660		—
Total
Residential Real Estate	4,500,902		4,611,873		—		4,531,543		130,896
Consumer Loans	322,588		386,588		—		342,916		28,419
Commercial Business	7,853		7,853		—		12,236		—
Commercial Real Estate	35,115,195		40,139,864		440,000		36,668,739		1,036,344
Total	$	39,946,538	$	45,146,178	$	440,000	$	41,555,434	$	1,195,659

Troubled Debt Restructurings on Financing Receivables

The following table is a summary of loans restructured as TDRs during the periods indicated:



	For the Three Months Ended June 30, 2013					For the Three Months Ended June 30, 2012
Troubled Debt Restructurings	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Residential Real Estate	—	$	—	$	—	—	$	—	$	—
Consumer Loans	—	—		—		—	—		—
Commercial Business	—	—		—		—	—		—
Commercial Real Estate	1	329,999		329,999		—	—		—
Total	1	$	329,999	$	329,999	—	$	—	$	—



	For the Six Months Ended June 30, 2013					For the Six Months Ended June 30, 2012
Troubled Debt Restructurings	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Residential Real Estate	—	$	—	$	—	—	$	—	$	—
Consumer Loans	—	—		—		1	15,358		15,358
Commercial Business	—	—		—		—	—		—
Commercial Real Estate	4	1,651,023		1,651,023		9	7,871,114		7,871,114
Total	4	$	1,651,023	$	1,651,023	10	$	7,886,472	$	7,886,472