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Note 4 - Loans/Leases Receivable
 6 Months Ended
Jun. 30, 2013
Receivables [Abstract]  
Financing Receivables [Text Block]

NOTE 4 – LOANS/LEASES RECEIVABLE


The composition of the loan/lease portfolio as of June 30, 2013 and December 31, 2012 is presented as follows:


   

As of June 30,

2013

   

As of December 31,

2012

 
                 

Commercial and industrial loans

  $ 470,416,356     $ 394,244,252  

Commercial real estate loans

               

Owner-occupied commercial real estate

    266,927,092       204,911,308  

Commercial construction, land development, and other land

    48,013,677       44,962,381  

Other non owner-occupied commercial real estate

    409,065,105       344,105,550  
      724,005,874       593,979,239  
                 

Direct financing leases *

    114,754,757       103,685,656  

Residential real estate loans **

    143,093,342       115,581,573  

Installment and other consumer loans

    74,568,755       76,720,514  
      1,526,839,084       1,284,211,234  

Plus deferred loan/lease origination costs, net of fees

    3,887,018       3,176,405  
      1,530,726,102       1,287,387,639  

Less allowance for estimated losses on loans/leases

    (21,156,379 )     (19,925,204 )
    $ 1,509,569,723     $ 1,267,462,435  
                 
                 

* Direct financing leases:

               

Net minimum lease payments to be received

  $ 129,915,909     $ 117,719,380  

Estimated unguaranteed residual values of leased assets

    1,344,853       1,095,848  

Unearned lease/residual income

    (16,506,005 )     (15,129,572 )
      114,754,757       103,685,656  

Plus deferred lease origination costs, net of fees

    4,318,828       3,907,140  
      119,073,585       107,592,796  

Less allowance for estimated losses on leases

    (2,187,605 )     (1,990,395 )
    $ 116,885,980     $ 105,602,401  

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 for the three and six months ended June 30, 2013 and 2012.


**Includes residential real estate loans held for sale totaling $2,083,075 and $4,577,233 as of June 30, 2013, and December 31, 2012, respectively.


The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2013 and December 31, 2012 is presented as follows:


   

As of June 30, 2013

 

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

  $ 465,430,639     $ 1,349,678     $ 262,201     $ -     $ 3,373,838     $ 470,416,356  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    259,065,675       193,040       77,828       -       7,590,549       266,927,092  

Commercial Construction, Land Development, and Other Land

    46,609,905       -       270,796       -       1,132,976       48,013,677  

Other Non Owner-Occupied Commercial Real Estate

    392,880,893       1,851,491       1,695,414       -       12,637,307       409,065,105  

Direct Financing Leases

    112,797,068       998,918       258,197       -       700,574       114,754,757  

Residential Real Estate

    141,298,113       369,329       149,816       -       1,276,084       143,093,342  

Installment and Other Consumer

    73,194,203       283,495       16,932       3,248       1,070,877       74,568,755  
    $ 1,491,276,496     $ 5,045,951     $ 2,731,184     $ 3,248     $ 27,782,205     $ 1,526,839,084  
                                                 

As a percentage of total loan/lease portfolio

    97.67 %     0.33 %     0.18 %     0.00 %     1.82 %     100.00 %

   

As of December 31, 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 %

Nonperforming loans/leases by classes of loans/leases as of June 30, 2013 and December 31, 2012 is presented as follows:


   

As of June 30, 2013

 

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

  $ -     $ 3,373,838     $ 893,875     $ 4,267,713       14.24 %

Commercial Real Estate

                                       

Owner-Occupied Commercial Real Estate

    -       7,590,549       47,958       7,638,507       25.49 %

Commercial Construction, Land Development, and Other Land

    -       1,132,976       300,000       1,432,976       4.78 %

Other Non Owner-Occupied Commercial Real Estate

    -       12,637,307       269,327       12,906,634       43.08 %

Direct Financing Leases

    -       700,574       -       700,574       2.34 %

Residential Real Estate

    -       1,276,084       296,436       1,572,520       5.25 %

Installment and Other Consumer

    3,248       1,070,877       370,000       1,444,125       4.82 %
    $ 3,248     $ 27,782,205     $ 2,177,596     $ 29,963,049       100.00 %

*Nonaccrual loans/leases includes $7,740,416 of troubled debt restructurings, including $145,914 in commercial and industrial loans, $6,934,208 in commercial real estate loans, $379,769 in residential real estate loans, and $280,525 in installment loans.


   

As of December 31, 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 %

**Nonaccrual loans/leases includes $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.


Changes in the allowance for estimated losses on loans/leases by portfolio segment for the three and six months ended June 30, 2013 and 2012, respectively, are presented as follows:


   

Three Months Ended June 30, 2013

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

  $ 4,466,264     $ 12,188,953     $ 2,296,523     $ 966,336     $ 851,386     $ 20,769,462  

Provisions charged to expense

    348,298       672,077       340,137       195,774       (36,149 )     1,520,137  

Loans/leases charged off

    (38,685 )     (820,725 )     (449,622 )     -       (23,875 )     (1,332,907 )

Recoveries on loans/leases previously charged off

    14,951       150,192       567       3,231       30,746       199,687  

Balance, ending

  $ 4,790,828     $ 12,190,497     $ 2,187,605     $ 1,165,341     $ 822,108     $ 21,156,379  

   

Three Months Ended June 30, 2012

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

  $ 4,585,467     $ 10,855,442     $ 1,366,528     $ 963,157     $ 1,236,050     $ 19,006,644  

Provisions charged to expense

    (683,718 )     1,275,510       258,469       23,557       174,651       1,048,469  

Loans/leases charged off

    (79,334 )     (1,427,987 )     (27,543 )     -       (199,935 )     (1,734,799 )

Recoveries on loans/leases previously charged off

    358,377       7,026       13,545       -       25,273       404,221  

Balance, ending

  $ 4,180,792     $ 10,709,991     $ 1,610,999     $ 986,714     $ 1,236,039     $ 18,724,535  

   

Six Months Ended June 30, 2013

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

  $ 4,531,545     $ 11,069,502     $ 1,990,395     $ 1,070,328     $ 1,263,434     $ 19,925,204  

Provisions charged to expense

    260,491       1,786,371       718,760       204,673       (392,376 )     2,577,919  

Loans/leases charged off

    (38,900 )     (820,725 )     (522,671 )     (112,891 )     (140,487 )     (1,635,674 )

Recoveries on loans/leases previously charged off

    37,692       155,349       1,121       3,231       91,537       288,930  

Balance, ending

  $ 4,790,828     $ 12,190,497     $ 2,187,605     $ 1,165,341     $ 822,108     $ 21,156,379  

   

Six Months Ended June 30, 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

    (774,618 )     1,533,374       573,915       286,525       209,719       1,828,915  

Loans/leases charged off

    (455,742 )     (1,427,987 )     (343,264 )     (4,757 )     (327,801 )     (2,559,551 )

Recoveries on loans/leases previously charged off

    533,146       7,646       40,852       -       84,265       665,909  

Balance, ending

  $ 4,180,792     $ 10,709,991     $ 1,610,999     $ 986,714     $ 1,236,039     $ 18,724,535  

The allowance for estimated losses on loans/leases by impairment evaluation and by portfolio segment as of June 30, 2013 and December 31, 2012 is presented as follows:


   

As of June 30, 2013

 
   

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

  $ 1,039,328     $ 4,303,557     $ 116,077     $ 90,235     $ 35,927     $ 5,585,124  

Allowance for loans/leases collectively evaluated for impairment

    3,751,500       7,886,940       2,071,528       1,075,106       786,181       15,571,255  
    $ 4,790,828     $ 12,190,497     $ 2,187,605     $ 1,165,341     $ 822,108     $ 21,156,379  
                                                 
                                                 

Loans/leases individually evaluated for impairment

  $ 2,907,420     $ 18,873,036     $ 700,574     $ 1,572,520     $ 1,440,877     $ 25,494,427  

Loans/leases collectively evaluated for impairment

    467,508,936       705,132,838       114,054,183       141,520,822       73,127,878       1,501,344,657  
    $ 470,416,356     $ 724,005,874     $ 114,754,757     $ 143,093,342     $ 74,568,755     $ 1,526,839,084  
                                                 
                                                 

Allowance as a percentage of loans/leases individually evaluated for impairment

    35.75 %     22.80 %     16.57 %     5.74 %     2.49 %     21.91 %

Allowance as a percentage of loans/leases collectively evaluated for impairment

    0.80 %     1.12 %     1.82 %     0.76 %     1.08 %     1.04 %
      1.02 %     1.68 %     1.91 %     0.81 %     1.10 %     1.38 %

   

As of December 31, 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 %
      1.15 %     1.86 %     1.92 %     0.93 %     1.65 %     1.55 %

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 six months ended June 30, 2013 is presented as follows:


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

  $ 678,239     $ 1,149,252     $ -     $ 690,717     $ 3,861     $ 3,861  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    3,554,904       4,934,815       -       1,318,703       -       -  

Commercial Construction, Land Development, and Other Land

    300,000       300,000       -       331,250       -       -  

Other Non Owner-Occupied Commercial Real Estate

    224,719       224,719       -       1,782,488       40,773       40,773  

Direct Financing Leases

    542,497       542,497       -       845,413       -       -  

Residential Real Estate

    1,271,905       1,538,919       -       934,120       -       -  

Installment and Other Consumer

    1,019,980       1,032,521       -       792,024       5,112       5,112  
    $ 7,592,244     $ 9,722,723     $ -     $ 6,694,715     $ 49,746     $ 49,746  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 2,229,181     $ 2,238,999     $ 1,039,328     $ 722,935     $ 15,307     $ 15,307  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    980,236       980,236       400,000       326,908       -       -  

Commercial Construction, Land Development, and Other Land

    3,652,434       3,652,434       1,428,466       3,626,128       5,419       5,419  

Other Non Owner-Occupied Commercial Real Estate

    10,160,743       10,413,703       2,475,091       10,088,904       4,501       4,501  

Direct Financing Leases

    158,077       158,077       116,077       124,691       -       -  

Residential Real Estate

    300,615       300,615       90,235       305,587       -       -  

Installment and Other Consumer

    420,897       420,897       35,927       289,628       -       -  
    $ 17,902,183     $ 18,164,961     $ 5,585,124     $ 15,484,781     $ 25,199     $ 25,199  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 2,907,420     $ 3,388,251     $ 1,039,328     $ 1,413,652     $ 19,168     $ 19,168  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    4,535,140       5,915,051       400,000       1,645,611       -       -  

Commercial Construction, Land Development, and Other Land

    3,952,434       3,952,434       1,428,466       3,957,378       5,419       5,419  

Other Non Owner-Occupied Commercial Real Estate

    10,385,462       10,638,422       2,475,091       11,871,392       45,274       45,274  

Direct Financing Leases

    700,574       700,574       116,077       970,104       -       -  

Residential Real Estate

    1,572,520       1,839,534       90,235       1,239,707       -       -  

Installment and Other Consumer

    1,440,877       1,453,418       35,927       1,081,652       5,112       5,112  
    $ 25,494,427     $ 27,887,684     $ 5,585,124     $ 22,179,496     $ 74,973     $ 74,973  

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


Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended June 30, 2013 and 2012, respectively, is presented as follows:


   

Three Months Ended June 30, 2013

   

Three Months Ended June 30, 2012

 

Classes of Loans/Leases

 

Average Recorded Investment

   

Interest Income Recognized

   

Interest Income Recognized for Cash Payments Received

   

Average Recorded Investment

   

Interest Income Recognized

   

Interest Income Recognized for Cash Payments Received

 
                                                 

Impaired Loans/Leases with No Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 613,506     $ 1,937     $ 1,937     $ 870,085     $ -     $ -  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    3,107,106       -       -       668,313       -       -  

Commercial Construction, Land Development, and Other Land

    325,000       -       -       4,773,032       1,683       1,683  

Other Non Owner-Occupied Commercial Real Estate

    353,972       657       657       6,997,797       -       -  

Direct Financing Leases

    822,718       -       -       585,845       -       -  

Residential Real Estate

    1,057,657       -       -       734,485       1,673       1,673  

Installment and Other Consumer

    915,478       2,686       2,686       974,591       101       101  
    $ 7,195,437     $ 5,280     $ 5,280     $ 15,604,148     $ 3,457     $ 3,457  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 1,229,737     $ 15,307     $ 15,307     $ 314,872     $ 1,971     $ 1,971  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    653,815       -       -       66,660       -       -  

Commercial Construction, Land Development, and Other Land

    3,656,226       2,716       2,716       2,348,194       -       -  

Other Non Owner-Occupied Commercial Real Estate

    10,143,708       -       -       8,354,604       83,113       83,113  

Direct Financing Leases

    133,038       -       -       118,275       -       -  

Residential Real Estate

    302,334       -       -       462,406       -       -  

Installment and Other Consumer

    430,427       -       -       1,998       -       -  
    $ 16,549,285     $ 18,023     $ 18,023     $ 11,667,009     $ 85,084     $ 85,084  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 1,843,243     $ 17,244     $ 17,244     $ 1,184,957     $ 1,971     $ 1,971  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    3,760,921       -       -       734,973       -       -  

Commercial Construction, Land Development, and Other Land

    3,981,226       2,716       2,716       7,121,226       1,683       1,683  

Other Non Owner-Occupied Commercial Real Estate

    10,497,680       657       657       15,352,401       83,113       83,113  

Direct Financing Leases

    955,756       -       -       704,120       -       -  

Residential Real Estate

    1,359,991       -       -       1,196,891       1,673       1,673  

Installment and Other Consumer

    1,345,905       2,686       2,686       976,589       101       101  
    $ 23,744,722     $ 23,303     $ 23,303     $ 27,271,157     $ 88,541     $ 88,541  

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


Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2012 is presented as follows:


Classes of Loans/Leases

 

Recorded Investment

   

Unpaid Principal Balance

   

Related Allowance

 
                         

Impaired Loans/Leases with No Specific Allowance Recorded:

                       

Commercial and Industrial

  $ 438,355     $ 1,203,710     $ -  

Commercial Real Estate

                       

Owner-Occupied Commercial Real Estate

    503,321       503,321       -  

Commercial Construction, Land Development, and Other Land

    678,523       678,523       -  

Other Non Owner-Occupied Commercial Real Estate

    495,702       495,702       -  

Direct Financing Leases

    777,645       777,645       -  

Residential Real Estate

    944,211       1,127,242       -  

Installment and Other Consumer

    534,368       534,368       -  
    $ 4,372,125     $ 5,320,511     $ -  
                         

Impaired Loans/Leases with Specific Allowance Recorded:

                       

Commercial and Industrial

  $ 568,597     $ 590,849     $ 280,170  

Commercial Real Estate

                       

Owner-Occupied Commercial Real Estate

    -       -       -  

Commercial Construction, Land Development, and Other Land

    3,967,583       3,967,583       1,105,795  

Other Non Owner-Occupied Commercial Real Estate

    14,738,717       14,991,676       2,899,247  

Direct Financing Leases

    221,157       221,157       125,000  

Residential Real Estate

    273,045       273,045       105,565  

Installment and Other Consumer

    152,987       152,987       71,992  
    $ 19,922,086     $ 20,197,297     $ 4,587,769  
                         

Total Impaired Loans/Leases:

                       

Commercial and Industrial

  $ 1,006,952     $ 1,794,559     $ 280,170  

Commercial Real Estate

                       

Owner-Occupied Commercial Real Estate

    503,321       503,321       -  

Commercial Construction, Land Development, and Other Land

    4,646,106       4,646,106       1,105,795  

Other Non Owner-Occupied Commercial Real Estate

    15,234,419       15,487,378       2,899,247  

Direct Financing Leases

    998,802       998,802       125,000  

Residential Real Estate

    1,217,256       1,400,287       105,565  

Installment and Other Consumer

    687,355       687,355       71,992  
    $ 24,294,211     $ 25,517,808     $ 4,587,769  

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 an as needed basis depending on the specific circumstances of the loan.


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 June 30, 2013 and December 31, 2012:


   

As of June 30, 2013

 
           

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)

  $ 444,731,963     $ 254,134,556     $ 34,521,499     $ 374,410,742     $ 1,107,798,760  

Special Mention (Rating 6)

    10,507,646       3,349,849       6,843,887       8,026,958       28,728,340  

Substandard (Rating 7)

    15,176,747       9,442,687       6,648,291       26,627,405       57,895,130  

Doubtful (Rating 8)

    -       -       -       -       -  
    $ 470,416,356     $ 266,927,092     $ 48,013,677     $ 409,065,105     $ 1,194,422,230  

   

As of June 30, 2013

         

Delinquency Status *

 

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

         
                                         

Performing

  $ 114,054,183     $ 141,520,822     $ 73,124,630     $ 328,699,635          

Nonperforming

    700,574       1,572,520       1,444,125       3,717,219          
    $ 114,754,757     $ 143,093,342     $ 74,568,755     $ 332,416,854          

   

As of December 31, 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  

   

As of December 31, 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          

*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 June 30, 2013 and December 31, 2012, troubled debt restructurings totaled $9,918,012 and $12,958,374, 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 three and six months ended June 30, 2013 and 2012. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of the restructuring.


   

For the three months ended June 30, 2013

   

For the three months ended June 30, 2012

 

Classes of Loans/Leases

 

Number of Loans / Leases

   

Pre-Modification Recorded Investment

   

Post-Modification Recorded Investment

   

Specific Allowance

   

Number of Loans / Leases

   

Pre-Modification Recorded Investment

   

Post-Modification Recorded Investment

   

Specific Allowance

 
                                                                 

CONCESSION - Significant payment delay

                                                               

Residential Real Estate

    1     $ 91,581     $ 91,581     $ -       -     $ -     $ -     $ -  

Installment and Other Consumer

    1       370,000       370,000       -       -       -       -       -  
      2     $ 461,581     $ 461,581     $ -       -     $ -     $ -     $ -  
                                                                 

CONCESSION - Interest rate adjusted below market

                                                               

Commercial Construction, Land Development, and Other Land

    1     $ 337,500     $ 337,500     $ -       -     $ -     $ -     $ -  

Residential Real Estate

    1       160,627       160,627       -       -       -       -       -  
      2     $ 498,127     $ 498,127     $ -       -     $ -     $ -     $ -  
                                                                 

TOTAL

    4     $ 959,708     $ 959,708     $ -       -     $ -     $ -     $ -  

   

For the six months ended June 30, 2013

   

For the six months ended June 30, 2012

 

Classes of Loans/Leases

 

Number of Loans / Leases

   

Pre-Modification Recorded Investment

   

Post-Modification Recorded Investment

   

Specific Allowance

   

Number of Loans / Leases

   

Pre-Modification Recorded Investment

   

Post-Modification Recorded Investment

   

Specific Allowance

 
                                                                 

CONCESSION - Extension of maturity

                                                               

Commercial and Industrial

    3     $ 809,494     $ 809,494     $ 188,700       -     $ -     $ -     $ -  
      3     $ 809,494     $ 809,494     $ 188,700       -     $ -     $ -     $ -  
                                                                 

CONCESSION - Significant payment delay

                                                               

Owner-Occupied Commercial Real Estate

    1     $ 47,958     $ 47,958     $ -       -     $ -     $ -     $ -  

Residential Real Estate

    1       91,581       91,581       -       -       -       -       -  

Installment and Other Consumer

    1       370,000       370,000       -       -       -       -       -  

Commercial Construction, Land Development, and Other Land

    -       -       -       -       2       200,000       200,000       144,000  
      3     $ 509,539     $ 509,539     $ -       2     $ 200,000     $ 200,000     $ 144,000  
                                                                 

CONCESSION - Interest rate adjusted below market

                                                               

Commercial Construction, Land Development, and Other Land

    1     $ 337,500     $ 337,500     $ -       1     $ 337,500     $ 337,500     $ -  

Residential Real Estate

    1       160,627       160,627       -       1       167,739       167,739       -  

Installment and Other Consumer

    -       -       -       -       1       16,043       16,043       -  
      2     $ 498,127     $ 498,127     $ -       3     $ 521,282     $ 521,282     $ -  
                                                                 

TOTAL

    8     $ 1,817,160     $ 1,817,160     $ 188,700       5     $ 721,282     $ 721,282     $ 144,000  

Of the troubled debt restructurings reported above, three with post-modification recorded investments totaling $178,007 were on nonaccrual as of June 30, 2013, and two with post-modification recorded investments totaling $200,000 were on nonaccrual as of June 30, 2012.


For the three and six months ended June 30, 2013 and 2012, 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.