Note 3 - Loans/Leases Receivable

12 Months Ended

Dec. 31, 2012

Financing Receivables [Text Block]

Note 3.                 Loans/Leases Receivable

The composition of the loan/lease portfolio as of December 31, 2012 and 2011 is presented as follows:

	2012			2011
Commercial and industrial loans	$	394,244,252		$	350,794,278
Commercial real estate loans
Owner-occupied commercial real estate		204,911,308			167,790,621
Commercial construction, land development, and other land		44,962,381			60,384,738
Other non owner-occupied commercial real estate		344,105,550			349,628,491
		593,979,239			577,803,850
Direct financing leases *		103,685,656			93,212,362
Residential real estate loans **		115,581,573			98,107,051
Installment and other consumer loans		76,720,514			78,223,080
		1,284,211,234			1,198,140,621
Plus deferred loan/lease orgination costs, net of fees		3,176,405			2,604,876
		1,287,387,639			1,200,745,497
Less allowance for estimated losses on loans/leases		(19,925,204	)		(18,789,262	)
	$	1,267,462,435		$	1,181,956,235
* Direct financing leases:
Net minimum lease payments to be received	$	117,719,380		$	106,389,988
Estimated unguaranteed residual values of leased assets		1,095,848			1,043,326
Unearned lease/residual income		(15,129,572	)		(14,220,952	)
		103,685,656			93,212,362
Plus deferred lease origination costs, net of fees		3,907,140			3,217,011
		107,592,796			96,429,373
Less allowance for estimated losses on leases		(1,990,395	)		(1,339,496	)
	$	105,602,401		$	95,089,877

Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum.  The evaluation consists of discussions with reputable and current vendors and management’s expertise and understanding of the current states of particular industries to determine informal valuations of the equipment.  As necessary and where available, management will utilize valuations by independent appraisers.  The large majority of leases with residual values contain a lease options rider which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value.  In these cases, the residual value is protected and the risk of loss is minimal.

There were no losses related to residual values during the years ended December 31, 2012 and 2011.  For the year ended December 31, 2010, the Company recognized losses totaling $617,000 in residual values for two direct financing equipment leases.  At December 31, 2012, the Company had 34 leases remaining with residual values totaling $1,095,848 that were not protected with a lease end options rider.   At December 31, 2011, the Company had 39 leases remaining with residual values totaling $1,043,326 that were not protected with a lease end options rider.  Management has performed specific evaluations of these residual values and determined that the valuations are appropriate.

**Includes residential real estate loans held for sale totaling $4,577,233 and $3,832,760 as of December 31, 2012 and 2011, respectively.

The aging of the loan/lease portfolio by classes of loans/leases as of December 31, 2012 and 2011 is presented as follows:

	2012
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	388,825,307		$	3,724,506		$	9,940		$	120,000		$	1,564,499		$	394,244,252
Commercial Real Estate
Owner-Occupied Commercial Real Estate		204,141,070			142,993			-			-			627,245			204,911,308
Commercial Construction, Land Development, and Other Land		42,180,819			-			-			-			2,781,562			44,962,381
Other Non Owner-Occupied Commercial Real Estate		332,644,532			86,986			1,111,856			-			10,262,176			344,105,550
Direct Financing Leases		101,635,084			877,210			174,560			-			998,802			103,685,656
Residential Real Estate		111,993,859			2,254,730			283,466			-			1,049,518			115,581,573
Installment and Other Consumer		75,711,203			301,025			20,112			39,481			648,693			76,720,514
	$	1,257,131,874		$	7,387,450		$	1,599,934		$	159,481		$	17,932,495		$	1,284,211,234
As a percentage of total loan/lease portfolio		97.89	%		0.58	%		0.12	%		0.01	%		1.40	%		100.00	%

	2011
Classes of Loans/Leases	Current			30-59 Days  Past Due			60-89 Days  Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	347,417,683		$	226,394		$	239,991		$	120,000		$	2,790,210		$	350,794,278
Commercial Real Estate
Owner-Occupied Commercial Real Estate		166,632,318			146,847			-			-			1,011,456			167,790,621
Commercial Construction, Land Development, and Other Land		55,741,827			211,878			486,802			968,919			2,975,312			60,384,738
Other Non Owner-Occupied Commercial Real Estate		336,080,128			522,323			3,732,935			-			9,293,105			349,628,491
Direct Financing Leases		91,273,406			826,187			396,344			-			716,425			93,212,362
Residential Real Estate		95,456,433			1,127,465			389,678			-			1,133,475			98,107,051
Installment and Other Consumer		76,376,399			737,543			12,122			22,160			1,074,856			78,223,080
	$	1,168,978,194		$	3,798,637		$	5,257,872		$	1,111,079		$	18,994,839		$	1,198,140,621
As a percentage of total loan/lease portfolio		97.57	%		0.32	%		0.44	%		0.09	%		1.59	%		100.00	%

Nonperforming loans/leases by classes of loans/leases as of December 31, 2012 and 2011 is presented as follows:

	2012
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	120,000	$	1,564,499	$	184,084	$	1,868,583		7.36	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		627,245		-		627,245		2.47	%
Commercial Construction, Land Development, and Other Land		-		2,781,562		1,016,023		3,797,585		14.96	%
Other Non Owner-Occupied Commercial Real Estate		-		10,262,176		5,820,765		16,082,941		63.34	%
Direct Financing Leases		-		998,802		-		998,802		3.93	%
Residential Real Estate		-		1,049,518		167,739		1,217,257		4.79	%
Installment and Other Consumer		39,481		648,693		110,982		799,156		3.15	%
	$	159,481	$	17,932,495	$	7,299,593	$	25,391,569		100.00	%

*At December 31, 2012, nonaccrual loans/leases included $5,658,781 of troubled debt restructurings, including $99,804 in commercial and industrial loans, $5,173,589 in commercial real estate loans, $64,722 in residential real estate loans, and $320,666 in installment loans.

	2011
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of  Total Nonperforming Loans/Leases
Commercial and Industrial	$	120,000	$	2,790,210	$	187,407	$	3,097,617		9.68	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		1,011,456		-		1,011,456		3.16	%
Commercial Construction, Land Development, and Other Land		968,919		2,975,312		6,076,143		10,020,374		31.30	%
Other Non Owner-Occupied Commercial Real Estate		-		9,293,105		5,049,795		14,342,900		44.81	%
Direct Financing Leases		-		716,425		590,238		1,306,663		4.08	%
Residential Real Estate		-		1,133,475		-		1,133,475		3.54	%
Installment and Other Consumer		22,160		1,074,856		-		1,097,016		3.43	%
	$	1,111,079	$	18,994,839	$	11,903,583	$	32,009,501		100.00	%

**At December 31, 2011, nonaccrual loans/leases included $8,622,874 of troubled debt restructurings, including $198,697 in commercial and industrial loans, $8,074,777 in commercial real estate loans, $64,726 in direct financing leases, and $284,674 in installment loans.

Changes in the allowance for estimated losses on loans/leases by portfolio segment for the years ended December 31, 2012, 2011, and 2010 are presented as follows:

	Year Ended December 31, 2012
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real  Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,878,006		$	10,596,958		$	1,339,496		$	704,946		$	1,269,856		$	18,789,262
Provisions charged to expense		(327,045	)		2,482,327			1,313,767			370,140			531,578			4,370,767
Loans/leases charged off		(682,877	)		(2,232,004	)		(739,755	)		(4,758	)		(717,035	)		(4,376,429	)
Recoveries on loans/leases previously charged off		663,461			222,221			76,887			-			179,035			1,141,604
Balance, ending	$	4,531,545		$	11,069,502		$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204

	Year Ended December 31, 2011
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real  Estate			Installment and Other Consumer			Total
Balance, beginning	$	7,548,922		$	9,087,315		$	1,530,572		$	748,028		$	1,449,819		$	20,364,656
Provisions charged to expense		256,945			4,759,003			907,014			(4,147	)		697,199			6,616,014
Loans/leases charged off		(3,262,742	)		(3,590,868	)		(1,100,886	)		(38,935	)		(1,068,320	)		(9,061,751	)
Recoveries on loans/leases previously charged off		334,881			341,508			2,796			-			191,158			870,343
Balance, ending	$	4,878,006		$	10,596,958		$	1,339,496		$	704,946		$	1,269,856		$	18,789,262

	Year Ended December 31, 2010
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	5,425,624		$	12,665,721		$	1,681,376		$	685,732		$	2,046,281		$	22,504,734
Provisions charged to expense		5,099,350			1,203,163			684,619			97,723			378,763			7,463,618
Loans/leases charged off		(3,309,273	)		(5,210,444	)		(998,737	)		(35,427	)		(1,146,395	)		(10,700,276	)
Recoveries on loans/leases previously charged off		333,221			428,875			163,314			-			171,170			1,096,580
Balance, ending	$	7,548,922		$	9,087,315		$	1,530,572		$	748,028		$	1,449,819		$	20,364,656

The allowance for estimated losses on loans/leases by impairment evaluation and by portfolio segment as of December 31, 2012 and 2011 is presented as follows:

	2012
	Commercial and Industrial			Commercial Real  Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	280,170		$	4,005,042		$	125,000		$	105,565		$	71,992		$	4,587,769
Allowance for loans/leases collectively evaluated for impairment		4,251,375			7,064,460			1,865,395			964,763			1,191,442			15,337,435
	$	4,531,545		$	11,069,502		$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204
Loans/leases individually evaluated for impairment	$	1,006,952		$	20,383,846		$	998,802		$	1,217,256		$	687,355		$	24,294,211
Loans/leases collectively evaluated for impairment		393,237,300			573,595,393			102,686,854			114,364,317			76,033,159			1,259,917,023
	$	394,244,252		$	593,979,239		$	103,685,656		$	115,581,573		$	76,720,514		$	1,284,211,234
Allowance as a percentage of loans/leases individually evaluated for impairment		27.82	%		19.65	%		12.51	%		8.67	%		10.47	%		18.88	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.08	%		1.23	%		1.82	%		0.84	%		1.57	%		1.22	%
Total allowance as a percentage of total loans/leaess		1.15	%		1.86	%		1.92	%		0.93	%		1.65	%		1.55	%

		2011
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	903,187		$	4,297,738		$	66,675		$	55,884		$	22,819		$	5,346,303
Allowance for loans/leases collectively evaluated for impairment		3,974,819			6,299,220			1,272,821			649,062			1,247,037			13,442,959
	$	4,878,006		$	10,596,958		$	1,339,496		$	704,946		$	1,269,856		$	18,789,262
Loans/leases individually evaluated for impairment	$	2,152,855		$	24,281,365		$	1,306,663		$	1,133,474		$	984,806		$	29,859,163
Loans/leases collectively evaluated for impairment		348,641,423			553,522,485			91,905,699			96,973,577			77,238,274			1,168,281,458
	$	350,794,278		$	577,803,850		$	93,212,362		$	98,107,051		$	78,223,080		$	1,198,140,621
Allowance as a percentage of loans/leases individually evaluated for impairment		41.95	%		17.70	%		5.10	%		4.93	%		2.32	%		17.91	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.14	%		1.14	%		1.38	%		0.67	%		1.61	%		1.15	%
Total allowance as a percentage of total loans/leaess		1.39	%		1.83	%		1.44	%		0.72	%		1.62	%		1.56	%

Information for impaired loans/leases is presented in the tables below.  The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease.  The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the years ended December 31, 2012, 2011, and 2010 is presented as follows:

	2012
Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	438,355	$	1,203,710	$	-	$	757,286	$	7,910	$	7,910
Commercial Real Estate
Owner-Occupied Commercial Real Estate		503,321		503,321		-		624,766		-		-
Commercial Construction, Land Development, and Other Land		678,523		678,523		-		3,359,435		3,549		3,549
Other Non Owner-Occupied Commercial Real Estate		495,702		495,702		-		5,288,820		2,017		2,017
Direct Financing Leases		777,645		777,645		-		871,076		-		-
Residential Real Estate		944,211		1,127,242		-		1,050,160		6,728		6,728
Installment and Other Consumer		534,368		534,368		-		815,720		629		629
	$	4,372,125	$	5,320,511	$	-	$	12,767,263	$	20,833	$	20,833
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	568,597	$	590,849	$	280,170	$	499,036	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		3,967,583		3,967,583		1,105,795		2,311,845		5,749		5,749
Other Non Owner-Occupied Commercial Real Estate		14,738,717		14,991,676		2,899,247		10,949,295		308,339		308,339
Direct Financing Leases		221,157		221,157		125,000		90,610		-		-
Residential Real Estate		273,045		273,045		105,565		258,677		-		-
Installment and Other Consumer		152,987		152,987		71,992		101,075		-		-
	$	19,922,086	$	20,197,297	$	4,587,769	$	14,210,538	$	314,088	$	314,088
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,006,952	$	1,794,559	$	280,170	$	1,256,322	$	7,910	$	7,910
Commercial Real Estate
Owner-Occupied Commercial Real Estate		503,321		503,321		-		624,766		-		-
Commercial Construction, Land Development, and Other Land		4,646,106		4,646,106		1,105,795		5,671,280		9,298		9,298
Other Non Owner-Occupied Commercial Real Estate		15,234,419		15,487,378		2,899,247		16,238,115		310,356		310,356
Direct Financing Leases		998,802		998,802		125,000		961,686		-		-
Residential Real Estate		1,217,256		1,400,287		105,565		1,308,837		6,728		6,728
Installment and Other Consumer		687,355		687,355		71,992		916,795		629		629
	$	24,294,211	$	25,517,808	$	4,587,769	$	26,977,801	$	334,921	$	334,921

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

	2011
Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	360,947	$	979,901	$	-	$	3,873,371	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		736,610		736,610		-		1,909,754		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		2,979,950		-		-
Other Non Owner-Occupied Commercial Real Estate		3,936,826		3,986,820		-		5,568,776		-		-
Direct Financing Leases		1,094,178		1,094,178		-		1,487,570		81,921		81,921
Residential Real Estate		788,685		862,298		-		892,480		-		-
Installment and Other Consumer		593,987		593,987		-		821,889		-		-
	$	7,511,233	$	8,253,794	$	-	$	17,533,790	$	81,921	$	81,921
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,791,908	$	1,791,908	$	903,187	$	1,175,105	$	36,984	$	36,984
Commercial Real Estate
Owner-Occupied Commercial Real Estate		217,059		217,059		47,911		121,201		-		-
Commercial Construction, Land Development, and Other Land		9,051,455		9,051,455		3,002,450		4,334,241		16,249		16,249
Other Non Owner-Occupied Commercial Real Estate		10,339,415		10,839,415		1,247,377		5,595,044		11,623		11,623
Direct Financing Leases		212,485		212,485		66,675		138,127		5,244		5,244
Residential Real Estate		344,789		344,789		55,884		282,020		-		-
Installment and Other Consumer		390,819		390,819		22,819		51,871		-		-
	$	22,347,930	$	22,847,930	$	5,346,303	$	11,697,609	$	70,100	$	70,100
Total Impaired Loans/Leases:
Commercial and Industrial	$	2,152,855	$	2,771,809	$	903,187	$	5,048,476	$	36,984	$	36,984
Commercial Real Estate
Owner-Occupied Commercial Real Estate		953,669		953,669		47,911		2,030,955		-		-
Commercial Construction, Land Development, and Other Land		9,051,455		9,051,455		3,002,450		7,314,191		16,249		16,249
Other Non Owner-Occupied Commercial Real Estate		14,276,241		14,826,235		1,247,377		11,163,820		11,623		11,623
Direct Financing Leases		1,306,663		1,306,663		66,675		1,625,697		87,165		87,165
Residential Real Estate		1,133,474		1,207,087		55,884		1,174,500		-		-
Installment and Other Consumer		984,806		984,806		22,819		873,760		-		-
	$	29,859,163	$	31,101,724	$	5,346,303	$	29,231,399	$	152,021	$	152,021

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

Note 3.                 Loans/Leases Receivable (Continued)

	2010
Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	1,459,790	$	3,350,036	$	-	$	1,782,357	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		681,727		681,727		-		553,012		-		-
Commercial Construction, Land Development, and Other Land		2,538,621		2,872,083		-		1,530,324		-		-
Other Non Owner-Occupied Commercial Real Estate		2,942,189		3,792,226		-		1,478,956		-		-
Direct Financing Leases		953,994		953,994		-		1,080,564		27,089		27,089
Residential Real Estate		758,031		758,031		-		721,757		-		-
Installment and Other Consumer		1,561,322		1,561,322		-		569,542		11,825		11,825
	$	10,895,674	$	13,969,419	$	-	$	7,716,512	$	38,914	$	38,914
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	7,364,880	$	7,866,634	$	3,331,436	$	5,962,381	$	19,891	$	19,891
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,074,210		1,074,210		232,194		847,507		45,641		45,641
Commercial Construction, Land Development, and Other Land		7,660,458		7,660,458		1,818,193		9,263,675		3,832		3,832
Other Non Owner-Occupied Commercial Real Estate		9,872,826		10,091,777		1,658,791		9,393,250		235,366		235,366
Direct Financing Leases		811,096		811,096		335,000		663,697		-		-
Residential Real Estate		528,246		528,246		27,355		565,051		-		-
Installment and Other Consumer		49,777		49,777		49,777		432,460		-		-
	$	27,361,493	$	28,082,198	$	7,452,746	$	27,128,021	$	304,730	$	304,730
Total Impaired Loans/Leases:
Commercial and Industrial	$	8,824,670	$	11,216,670	$	3,331,436	$	7,744,738	$	19,891	$	19,891
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,755,937		1,755,937		232,194		1,400,519		45,641		45,641
Commercial Construction, Land Development, and Other Land		10,199,079		10,532,541		1,818,193		10,793,999		3,832		3,832
Other Non Owner-Occupied Commercial Real Estate		12,815,015		13,884,003		1,658,791		10,872,206		235,366		235,366
Direct Financing Leases		1,765,090		1,765,090		335,000		1,744,261		27,089		27,089
Residential Real Estate		1,286,277		1,286,277		27,355		1,286,808		-		-
Installment and Other Consumer		1,611,099		1,611,099		49,777		1,002,002		11,825		11,825
	$	38,257,167	$	42,051,617	$	7,452,746	$	34,844,533	$	343,644	$	343,644

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

For commercial and industrial and commercial real estate loans, the Company’s credit quality indicator is internally assigned risk ratings.  Each commercial loan is assigned a risk rating upon origination.  The risk rating is reviewed every 15 months, at a minimum, and on as needed basis depending on the specific circumstances of the loan.  See Note 1 for further discussion on the Company’s risk ratings.

For direct financing leases, residential real estate loans, and installment and other consumer loans, the Company’s credit quality indicator is performance determined by delinquency status.  Delinquency status is updated daily by the Company’s loan system.

For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of December 31, 2012 and 2011:

	2012
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	371,856,380	$	195,567,523	$	38,125,793	$	312,370,393	$	917,920,089
Special Mention (Rating 6)		8,008,866		5,488,602		1,238,152		7,319,902		22,055,522
Substandard (Rating 7)		14,379,006		3,855,183		5,598,436		24,415,255		48,247,880
Doubtful (Rating 8)		-		-		-		-		-
	$	394,244,252	$	204,911,308	$	44,962,381	$	344,105,550	$	988,223,491

	2012
Delinquency Status *		Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing		$	102,686,854	$	114,364,316	$	75,921,358	$	292,972,528
Nonperforming			998,802		1,217,257		799,156		3,015,215
		$	103,685,656	$	115,581,573	$	76,720,514	$	295,987,743

	2011
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	324,225,905	$	158,955,618	$	46,268,554	$	310,401,972	$	839,852,049
Special Mention (Rating 6)		8,814,497		2,700,496		764,586		13,754,798		26,034,377
Substandard (Rating 7)		17,753,876		6,134,507		13,351,598		25,471,721		62,711,702
Doubtful (Rating 8)		-		-		-		-		-
	$	350,794,278	$	167,790,621	$	60,384,738	$	349,628,491	$	928,598,128

	2011
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	91,905,699	$	96,973,576	$	77,126,064	$	266,005,339
Nonperforming		1,306,663		1,133,475		1,097,016		3,537,154
	$	93,212,362	$	98,107,051	$	78,223,080	$	269,542,493

*Performing = loans/leases accruing and less than 90 days past due.  Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings.

As of December 31, 2012 and 2011, troubled debt restructurings totaled $12,958,374 and $20,526,457, respectively.

For each class of financing receivable, the following presents the number and recorded investment of troubled debt restructurings, by type of concession, that were restructured during the years ended December 31, 2012 and 2011.  The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of restructuring.

	2012
Classes of Loans/Leases	Number of Loans/Leases		Pre- Modification  Recorded Investment		Post- Modification  Recorded  Investment		Specific  Allowance
CONCESSION - Extension of maturity
Other Non Owner-Occupied Commercial Real Estate		1	$	733,442	$	733,442	$	176,526
CONCESSION - Significant payment delay
Commercial Construction, Land Development, and Other Land		8	$	1,274,172	$	1,274,172	$	190,997
Other Non Owner-Occupied Commercial Real Estate		2		264,173		264,173		36,724
Residential Real Estate		1		64,722		64,722		-
Installment and Other Consumer		2		35,318		35,318		5,332
		13	$	1,638,385	$	1,638,385	$	233,053
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		1	$	337,500	$	337,500	$	55,295
Other Non Owner-Occupied Commercial Real Estate		2		1,542,784		1,289,825		262,704
Residential Real Estate		1		167,739		167,739		-
Installment and Other Consumer		1		16,043		16,043		-
		5	$	2,064,066	$	1,811,107	$	317,999
TOTAL		19	$	4,435,893	$	4,182,934	$	727,578

Of the troubled debt restructurings reported above, 9 with post-modification recorded investments totaling $1,779,126 were on nonaccrual as of December 31, 2012.

	2011
Classes of Loans/Leases	Number of Loans/Leases		Pre- Modification  Recorded Investment		Post- Modification Recorded  Investment		Specific  Allowance
CONCESSION - Extension of maturity
Other Non Owner-Occupied Commercial Real Estate		1	$	2,851,134	$	2,851,134	$	-
CONCESSION - Significant payment delay
Commercial and Industrial		4	$	1,175,819	$	1,175,819	$	-
Other Non Owner-Occupied Commercial Real Estate		2		4,309,589		4,309,589		308,254
Direct Financing Leases		2		633,621		633,621		-
Installment and Other Consumer		1		187,650		187,650		125,928
		9	$	6,306,679	$	6,306,679	$	434,182
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		5	$	6,549,376	$	6,549,376	$	2,203,438
TOTAL		15	$	15,707,189	$	15,707,189	$	2,637,620

Of the troubled debt restructurings reported above, five with post-modification recorded investments totaling $4,480,398 were on nonaccrual at December 31, 2011.  None of the troubled debt restructurings reported above had partial charge-offs.

For the years ended December 31, 2012 and 2011, none of the Company’s troubled debt restructurings had redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status.

Loans are made in the normal course of business to directors, executive officers, and their related interests.  The terms of these loans, including interest rates and collateral, are similar to those prevailing for comparable transactions with other persons.  An analysis of the changes in the aggregate committed amount of loans greater than or equal to $60,000 during the years ended December 31, 2012, 2011, and 2010, was as follows:

	2012			2011			2010
Balance, beginning	$	19,155,542		$	20,796,427		$	25,532,422
Net increase (decrease) due to change in related parties		2,784,143			(235,000	)		(9,306,435	)
Advances		6,754,970			10,674,567			13,576,200
Repayments		(8,192,597	)		(12,080,452	)		(9,005,760	)
Balance, ending	$	20,502,058		$	19,155,542		$	20,796,427

The Company’s loan portfolio includes a geographic concentration in the Midwest.  Additionally, the loan portfolio includes a concentration of loans in certain industries as of December 31, 2012 and 2011 as follows:

	2012					2011
Industry Name	Balance		Percentage of  Total Loans/Leases			Balance		Percentage of Total Loans/Leases
Lessors of Non-Residential Buildings	$	178,060,120		14	%	$	179,510,937		15	%
Lessors of Residential Buildings		61,459,574		5	%		50,029,069		4	%
Bank Holding Companies		47,662,055		4	%		38,046,779		3	%