Loans Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable, net, at December 31, 2018 and 2017 are summarized below.



	December 31,
	2018				2017
	Balance		% of Total Gross Loans		Balance		% of Total Gross Loans
Residential Real Estate Loans	$	83,965,416	18.9	%	$	81,255,167	20.2	%
Consumer Loans	56,907,555		12.8	%	56,761,695		14.1	%
Commercial Business Loans	28,086,686		6.3	%	26,777,893		6.6	%
Commercial Real Estate Loans	275,960,438		62.0	%	237,814,628		59.1	%
Total Loans Held For Investment	444,920,095		100.0	%	402,609,383		100.0	%
Loans Held For Sale	1,781,985				3,051,950
Total Loans Receivable, Gross	446,702,080				405,661,333
Less:
Allowance For Loan Losses	9,171,717				8,221,618
Loans in Process	7,225,271				6,804,533
Deferred Loan Fees	251,575				141,985
	16,648,563				15,168,136
Total Loans Receivable, Net	$	430,053,517			$	390,493,197

Financing Receivable Credit Quality Indicators

The following tables summarize the loan grades used by the Company to measure the credit quality of gross loans receivable, excluding those held for sale, by loan segment at December 31, 2018 and 2017.



December 31, 2018	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	75,558,544	$	3,369,776	$	958,354	$	4,078,742	$	83,965,416
Consumer	46,948,251		6,899,912		567,682		2,491,710		56,907,555
Commercial Business	22,670,318		4,708,036		339,533		368,799		28,086,686
Commercial Real Estate	204,197,354		45,653,796		18,492,785		7,616,503		275,960,438
Total	$	349,374,467	$	60,631,520	$	20,358,354	$	14,555,754	$	444,920,095



December 31, 2017	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	73,225,237	$	2,352,536	$	1,384,222	$	4,293,172	$	81,255,167
Consumer	52,249,017		1,862,340		344,361		2,305,977		56,761,695
Commercial Business	23,396,550		2,066,749		767,048		547,546		26,777,893
Commercial Real Estate	158,232,465		53,798,061		21,269,279		4,514,823		237,814,628
Total	$	307,103,269	$	60,079,686	$	23,764,910	$	11,661,518	$	402,609,383

Past Due Financing Receivables

The following tables present an age analysis of past due balances by category at December 31, 2018 and 2017.



	December 31, 2018
	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	$	—	$	332,000	$	497,713	$	829,713	$	83,135,703	$	83,965,416
Consumer	555,798		247,894		1,120,462		1,924,154		54,983,401		56,907,555
Commercial Business	205,613		106,163		18,648		330,424		27,756,262		28,086,686
Commercial Real Estate	1,556,863		424,103		1,634,770		3,615,736		272,344,702		275,960,438
Total	$	2,318,274	$	1,110,160	$	3,271,593	$	6,700,027	$	438,220,068	$	444,920,095



	December 31, 2017
	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	$	395,763	$	—	$	948,875	$	1,344,638	$	79,910,529	$	81,255,167
Consumer	604,809		85,178		182,757		872,744		55,888,951		56,761,695
Commercial Business	185,526		102,244		—		287,770		26,490,123		26,777,893
Commercial Real Estate	2,207,655		364,515		1,919,292		4,491,462		233,323,166		237,814,628
Total	$	3,393,753	$	551,937	$	3,050,924	$	6,996,614	$	395,612,769	$	402,609,383

Schedule of Financing Receivables, Non Accrual Status

The following table shows non-accrual loans by category at December 31, 2018 compared to 2017.



	December 31, 2018				December 31, 2017				$ Increase (Decrease)		% Increase (Decrease)
	Amount		Percent ⁽¹⁾		Amount		Percent ⁽¹⁾		$ Increase (Decrease)		% Increase (Decrease)
Non-accrual Loans:
Residential Real Estate	$	2,084,870	0.5	%	$	1,948,524	0.5	%	$	136,346	7.0	%
Consumer	1,274,673		0.3		318,926		0.1		955,747		299.7
Commercial Business	124,458		—		109,401		—		15,057		13.8
Commercial Real Estate	3,564,494		0.8		3,340,904		0.8		223,590		6.7
Total Non-accrual Loans	$	7,048,495	1.6	%	$	5,717,755	1.4	%	$	1,330,740	23.3	%

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

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

The following tables show the allowance for loan losses by loan category for the years ended December 31, 2018, 2017 and 2016.



	For the Year Ended December 31, 2018
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	1,233,843		$	1,144,815		$	1,011,227		$	4,831,733		$	8,221,618
Provision	2,411			173,235			(55,109		)	804,463			925,000
Charge-Offs	(46,419		)	(224,954		)	(32,518		)	(351,894		)	(655,785		)
Recoveries	1,608			110,497			—			568,779			680,884
Ending Balance	$	1,191,443		$	1,203,593		$	923,600		$	5,853,081		$	9,171,717



	For the Year Ended December 31, 2017
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	1,360,346		$	996,620		$	882,999		$	5,116,266		$	8,356,231
Provision	82,909			257,180			261,599			(301,688		)	300,000
Charge-Offs	(211,780		)	(184,161		)	(133,371		)	(301,260		)	(830,572		)
Recoveries	2,368			75,176			—			318,415			395,959
Ending Balance	$	1,233,843		$	1,144,815		$	1,011,227		$	4,831,733		$	8,221,618



	For the Year Ended December 31, 2016
	Residential Real Estate			Consumer			Commercial Business			Commercial Real Estate			Total
Beginning Balance	$	1,323,183		$	1,063,153		$	773,948		$	5,114,849		$	8,275,133
Provision	223,232			88,466			247,320			(59,018		)	500,000
Charge-Offs	(197,381		)	(241,738		)	(150,000		)	(374,144		)	(963,263		)
Recoveries	11,312			86,739			11,731			434,579			544,361
Ending Balance	$	1,360,346		$	996,620		$	882,999		$	5,116,266		$	8,356,231

Allowance for Credit Losses on Financing Receivables

The following tables present information related to impaired loans evaluated individually and collectively for impairment in loans receivable at December 31, 2018 and 2017.



	Loans Receivable
December 31, 2018	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	1,700,861	$	82,264,555	$	83,965,416
Consumer	1,060,043		55,847,512		56,907,555
Commercial Business	77,206		28,009,480		28,086,686
Commercial Real Estate	6,526,015		269,434,423		275,960,438
Total	$	9,364,125	$	435,555,970	$	444,920,095



	Loans Receivable
December 31, 2017	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	1,883,741	$	79,371,426	$	81,255,167
Consumer	181,617		56,580,078		56,761,695
Commercial Business	100,401		26,677,492		26,777,893
Commercial Real Estate	6,276,547		231,538,081		237,814,628
Total	$	8,442,306	$	394,167,077	$	402,609,383

The following tables present allowance for loan losses information related to impaired loans evaluated individually and collectively for impairment at December 31, 2018 and 2017.



December 31, 2018	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	—	$	1,191,443	$	1,191,443
Consumer	73,662		1,129,931		1,203,593
Commercial Business	—		923,600		923,600
Commercial Real Estate	665,000		5,188,081		5,853,081
Total	$	738,662	$	8,433,055	$	9,171,717



December 31, 2017	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	—	$	1,233,843	$	1,233,843
Consumer	—		1,144,815		1,144,815
Commercial Business	—		1,011,227		1,011,227
Commercial Real Estate	—		4,831,733		4,831,733
Total	$	—	$	8,221,618	$	8,221,618

Impaired Financing Receivables

The following tables present information related to impaired loans by loan category as of and for the years ended December 31, 2018, 2017 and 2016.



	December 31, 2018
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,700,861	$	1,700,861	$	—	$	1,743,906	$	31,853
Consumer	986,380		994,680		—		502,479		—
Commercial Business	77,206		972,206		—		85,020		—
Commercial Real Estate	5,084,458		6,116,761		—		8,052,817		212,186
With an Allowance Recorded:
Consumer	73,662		73,662		73,662		6,139		—
Commercial Real Estate	1,441,558		1,441,558		665,000		636,387		84,881
Total
Residential Real Estate	1,700,861		1,700,861		—		1,743,906		31,853
Consumer	1,060,042		1,068,342		73,662		508,618		—
Commercial Business	77,206		972,206		—		85,020		—
Commercial Real Estate	6,526,016		7,558,319		665,000		8,689,204		297,067
Total	$	9,364,125	$	11,299,728	$	738,662	$	11,026,748	$	328,920



	December 31, 2017
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,883,741	$	2,333,741	$	—	$	2,889,065	$	24,273
Consumer	181,617		209,427		—		279,183		—
Commercial Business	100,401		950,401		—		141,940		—
Commercial Real Estate	6,276,547		7,583,847		—		7,483,035		189,373
Total
Residential Real Estate	1,883,741		2,333,741		—		2,889,065		24,273
Consumer	181,617		209,427		—		279,183		—
Commercial Business	100,401		950,401		—		141,940		—
Commercial Real Estate	6,276,547		7,583,847		—		7,483,035		189,373
Total	$	8,442,306	$	11,077,416	$	—	$	10,793,223	$	213,646

(4) Loans Receivable, Net, Continued



	December 31, 2016
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	2,181,740	$	2,263,240	$	—	$	3,443,140	$	6,371
Consumer	110,114		118,414		—		293,287		—
Commercial Business	145,401		995,401		—		300,386		—
Commercial Real Estate	5,424,701		7,207,688		—		8,688,506		227,441
With an Allowance Recorded:
Consumer	60,438		60,438		1,699		61,947		4,591
Commercial Real Estate	405,640		418,654		12,590		426,569		22,798
Total
Residential Real Estate	2,181,740		2,263,240		—		3,443,140		6,371
Consumer	170,552		178,852		1,699		355,234		4,591
Commercial Business	145,401		995,401		—		300,386		—
Commercial Real Estate	5,830,341		7,626,342		12,590		9,115,075		250,239
Total	$	8,328,034	$	11,063,835	$	14,289	$	13,213,835	$	261,201

Troubled Debt Restructurings on Financing Receivables

during the years ended December 31, 2018, 2017 and 2016. At December 31, 2018, one TDR with a balance of $374,000 was in default. The loan had not been restructured within the last 12 months. At both December 31, 2017 and 2016, two previously restructured loans were in default, none of which had been restructured within the last 12 months. At December 31, 2016, two previously restructured loans were in default, none of which had been restructured during the same period. The Bank considers any loan 30 days or more past due to be in default.