XML 61 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 4 - Loans/Leases Receivable
 9 Months Ended
Sep. 30, 2013
Receivables [Abstract]  
Financing Receivables [Text Block]

NOTE 4 – LOANS/LEASES RECEIVABLE


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


   

As of September 30,

2013

   

As of December 31,

2012

 
                 

Commercial and industrial loans

  $ 471,256,974     $ 394,244,252  

Commercial real estate loans

               

Owner-occupied commercial real estate

    259,500,453       204,911,308  

Commercial construction, land development, and other land

    49,585,072       44,962,381  

Other non owner-occupied commercial real estate

    405,615,528       344,105,550  
      714,701,053       593,979,239  
                 

Direct financing leases *

    121,267,997       103,685,656  

Residential real estate loans **

    150,825,156       115,581,573  

Installment and other consumer loans

    77,226,363       76,720,514  
      1,535,277,543       1,284,211,234  

Plus deferred loan/lease origination costs, net of fees

    4,106,282       3,176,405  
      1,539,383,825       1,287,387,639  

Less allowance for estimated losses on loans/leases

    (22,062,389 )     (19,925,204 )
    $ 1,517,321,436     $ 1,267,462,435  
                 
                 

* Direct financing leases:

               

Net minimum lease payments to be received

  $ 136,848,442     $ 117,719,380  

Estimated unguaranteed residual values of leased assets

    1,775,830       1,095,848  

Unearned lease/residual income

    (17,356,275 )     (15,129,572 )
      121,267,997       103,685,656  

Plus deferred lease origination costs, net of fees

    4,514,946       3,907,140  
      125,782,943       107,592,796  

Less allowance for estimated losses on leases

    (2,323,509 )     (1,990,395 )
    $ 123,459,434     $ 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 nine months ended September 30, 2013 and 2012.


**Includes residential real estate loans held for sale totaling $1,445,900 and $4,577,233 as of September 30, 2013, and December 31, 2012, respectively.


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


   

As of September 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

  $ 466,597,618     $ 1,493,016     $ 208,603     $ -     $ 2,957,737     $ 471,256,974  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    257,258,899       41,296       58,933       -       2,141,325       259,500,453  

Commercial Construction, Land Development, and Other Land

    46,919,007       1,506,409       509,601       59,975       590,080       49,585,072  

Other Non Owner-Occupied Commercial Real Estate

    391,773,134       515,680       346,985       -       12,979,729       405,615,528  

Direct Financing Leases

    118,820,384       1,429,405       319,620       -       698,588       121,267,997  

Residential Real Estate

    148,740,223       346,108       52,029       -       1,686,796       150,825,156  

Installment and Other Consumer

    76,029,956       100,410       22,876       939       1,072,182       77,226,363  
    $ 1,506,139,221     $ 5,432,324     $ 1,518,647     $ 60,914     $ 22,126,437     $ 1,535,277,543  
                                                 

As a percentage of total loan/lease portfolio

    98.10 %     0.35 %     0.10 %     0.00 %     1.44 %     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 September 30, 2013 and December 31, 2012 are presented as follows:


   

As of September 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

  $ -     $ 2,957,737     $ 886,165     $ 3,843,902       15.42 %

Commercial Real Estate

                                       

Owner-Occupied Commercial Real Estate

    -       2,141,325       -       2,141,325       8.59 %

Commercial Construction, Land Development, and Other Land

    59,975       590,080       300,000       950,055       3.81 %

Other Non Owner-Occupied Commercial Real Estate

    -       12,979,729       809,162       13,788,891       55.32 %

Direct Financing Leases

    -       698,588       -       698,588       2.80 %

Residential Real Estate

    -       1,686,796       373,922       2,060,718       8.27 %

Installment and Other Consumer

    939       1,072,182       370,000       1,443,121       5.79 %
    $ 60,914     $ 22,126,437     $ 2,739,249     $ 24,926,600       100.00 %

*Nonaccrual loans/leases includes $13,712,367 of troubled debt restructurings, including $130,655 in commercial and industrial loans, $12,935,422 in commercial real estate loans, $374,102 in residential real estate loans, and $272,188 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 nine months ended September 30, 2013 and 2012, respectively, are presented as follows:


   

Three Months Ended September 30, 2013

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

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

Provisions charged to expense

    765,582       88,761       338,984       102,523       71,134       1,366,984  

Loans/leases charged off

    (214,920 )     (443,721 )     (203,724 )     (13,599 )     (51,673 )     (927,637 )

Recoveries on loans/leases previously charged off

    26,034       375,325       644       13,240       51,420       466,663  

Balance, ending

  $ 5,367,524     $ 12,210,862     $ 2,323,509     $ 1,267,505     $ 892,989     $ 22,062,389  

   

Three Months Ended September 30, 2012

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

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

Provisions charged to expense

    136,766       721,358       350,194       233,226       54,650       1,496,194  

Loans/leases charged off

    (214,036 )     (552,959 )     (111,326 )     (183,031 )     (88,378 )     (1,149,730 )

Recoveries on loans/leases previously charged off

    69,959       175,467       35,118       -       65,205       345,749  

Balance, ending

  $ 4,173,481     $ 11,053,857     $ 1,884,985     $ 1,036,909     $ 1,267,516     $ 19,416,748  

   

Nine Months Ended September 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

    1,026,073       1,875,132       1,057,744       307,196       (321,242 )     3,944,903  

Loans/leases charged off

    (253,820 )     (1,264,446 )     (726,395 )     (126,490 )     (192,160 )     (2,563,311 )

Recoveries on loans/leases previously charged off

    63,726       530,674       1,765       16,471       142,957       755,593  

Balance, ending

  $ 5,367,524     $ 12,210,862     $ 2,323,509     $ 1,267,505     $ 892,989     $ 22,062,389  

   

Nine Months Ended September 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

    (637,852 )     2,254,732       924,109       519,751       264,369       3,325,109  

Loans/leases charged off

    (669,778 )     (1,980,946 )     (454,590 )     (187,788 )     (416,179 )     (3,709,281 )

Recoveries on loans/leases previously charged off

    603,105       183,113       75,970       -       149,470       1,011,658  

Balance, ending

  $ 4,173,481     $ 11,053,857     $ 1,884,985     $ 1,036,909     $ 1,267,516     $ 19,416,748  

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


   

As of September 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

  $ 1,112,008     $ 4,987,850     $ 134,533     $ 206,700     $ 52,567     $ 6,493,658  

Allowance for loans/leases collectively evaluated for impairment

    4,255,516       7,223,012       2,188,976       1,060,805       840,422       15,568,731  
    $ 5,367,524     $ 12,210,862     $ 2,323,509     $ 1,267,505     $ 892,989     $ 22,062,389  
                                                 
                                                 

Loans/leases individually evaluated for impairment

  $ 2,574,217     $ 16,517,483     $ 698,588     $ 2,060,718     $ 1,442,182     $ 23,293,188  

Loans/leases collectively evaluated for impairment

    468,682,757       698,183,570       120,569,409       148,764,438       75,784,181       1,511,984,355  
    $ 471,256,974     $ 714,701,053     $ 121,267,997     $ 150,825,156     $ 77,226,363     $ 1,535,277,543  
                                                 
                                                 

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

    43.20 %     30.20 %     19.26 %     10.03 %     3.64 %     27.88 %

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

    0.91 %     1.03 %     1.82 %     0.71 %     1.11 %     1.03 %
      1.14 %     1.71 %     1.92 %     0.84 %     1.16 %     1.43 %

   

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 nine months ended September 30, 2013 are 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

  $ 701,450     $ 1,108,661     $ -     $ 796,262     $ 5,811     $ 5,811  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    705,653       705,653       -       1,517,083       -       -  

Commercial Construction, Land Development, and Other Land

    1,760,962       1,760,962       -       2,031,439       -       -  

Other Non Owner-Occupied Commercial Real Estate

    1,584,704       1,584,704       -       2,807,422       41,127       41,127  

Direct Financing Leases

    460,298       460,298       -       812,758       -       -  

Residential Real Estate

    1,404,241       1,404,241       -       1,033,428       -       -  

Installment and Other Consumer

    1,004,643       1,004,643       -       863,712       6,801       6,801  
    $ 7,621,951     $ 8,029,162     $ -     $ 9,862,104     $ 53,739     $ 53,739  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 1,872,767     $ 1,886,717     $ 1,112,008     $ 1,044,843     $ 24,647     $ 24,647  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    1,325,513       2,170,954       461,491       633,230       -       -  

Commercial Construction, Land Development, and Other Land

    1,882,762       1,882,762       1,842,784       1,874,976       7,411       7,411  

Other Non Owner-Occupied Commercial Real Estate

    9,257,889       9,510,848       2,683,575       8,673,807       30,957       30,957  

Direct Financing Leases

    238,290       238,290       134,533       89,468       -       -  

Residential Real Estate

    656,477       656,477       206,700       410,364       801       801  

Installment and Other Consumer

    437,539       437,539       52,567       334,233       -       -  
    $ 15,671,237     $ 16,783,587     $ 6,493,658     $ 13,060,921     $ 63,816     $ 63,816  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 2,574,217     $ 2,995,378     $ 1,112,008     $ 1,841,105     $ 30,458     $ 30,458  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    2,031,166       2,876,607       461,491       2,150,313       -       -  

Commercial Construction, Land Development, and Other Land

    3,643,724       3,643,724       1,842,784       3,906,415       7,411       7,411  

Other Non Owner-Occupied Commercial Real Estate

    10,842,593       11,095,552       2,683,575       11,481,229       72,084       72,084  

Direct Financing Leases

    698,588       698,588       134,533       902,226       -       -  

Residential Real Estate

    2,060,718       2,060,718       206,700       1,443,792       801       801  

Installment and Other Consumer

    1,442,182       1,442,182       52,567       1,197,945       6,801       6,801  
    $ 23,293,188     $ 24,812,749     $ 6,493,658     $ 22,923,025     $ 117,555     $ 117,555  

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 September 30, 2013 and 2012, respectively, are presented as follows:


   

Three Months Ended September 30, 2013

   

Three Months Ended September 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

  $ 834,405     $ 1,950     $ 1,950     $ 754,844     $ -     $ -  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    2,295,969       -       -       550,725       -       -  

Commercial Construction, Land Development, and Other Land

    1,943,718       -       -       1,323,689       1,701       1,701  

Other Non Owner-Occupied Commercial Real Estate

    1,739,053       354       354       5,798,404       -       -  

Direct Financing Leases

    527,153       -       -       680,817       -       -  

Residential Real Estate

    1,273,943       -       -       943,926       1,691       1,691  

Installment and Other Consumer

    1,012,035       1,689       1,689       1,063,519       121       121  
    $ 9,626,276     $ 3,993     $ 3,993     $ 11,115,924     $ 3,513     $ 3,513  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 1,913,841     $ 9,340     $ 9,340     $ 223,917     $ 1,984     $ 1,984  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    1,181,798       -       -       -       -       -  

Commercial Construction, Land Development, and Other Land

    1,897,759       1,992       1,992       2,157,696       -       -  

Other Non Owner-Occupied Commercial Real Estate

    8,893,535       26,484       26,484       12,036,134       86,744       86,744  

Direct Financing Leases

    172,428       -       -       210,299       -       -  

Residential Real Estate

    561,752       801       801       524,031       -       -  

Installment and Other Consumer

    422,808       -       -       68,898       -       -  
    $ 15,043,921     $ 38,617     $ 38,617     $ 15,220,975     $ 88,728     $ 88,728  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 2,748,246     $ 11,290     $ 11,290     $ 978,761     $ 1,984     $ 1,984  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    3,477,767       -       -       550,725       -       -  

Commercial Construction, Land Development, and Other Land

    3,841,477       1,992       1,992       3,481,385       1,701       1,701  

Other Non Owner-Occupied Commercial Real Estate

    10,632,588       26,838       26,838       17,834,538       86,744       86,744  

Direct Financing Leases

    699,581       -       -       891,116       -       -  

Residential Real Estate

    1,835,695       801       801       1,467,957       1,691       1,691  

Installment and Other Consumer

    1,434,843       1,689       1,689       1,132,417       121       121  
    $ 24,670,197     $ 42,610     $ 42,610     $ 26,336,899     $ 92,241     $ 92,241  

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 are 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 September 30, 2013 and December 31, 2012:


   

As of September 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)

  $ 445,104,945     $ 249,985,030     $ 36,776,727     $ 374,036,916     $ 1,105,903,618  

Special Mention (Rating 6)

    11,374,381       3,261,364       5,292,606       9,717,356       29,645,707  

Substandard (Rating 7)

    14,733,895       6,095,333       7,515,739       21,861,256       50,206,223  

Doubtful (Rating 8)

    43,753       158,726       -       -       202,479  
    $ 471,256,974     $ 259,500,453     $ 49,585,072     $ 405,615,528     $ 1,185,958,027  

   

As of September 30, 2013

 

Delinquency Status *

 

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                 

Performing

  $ 120,569,409     $ 148,764,438     $ 75,783,242     $ 345,117,089  

Nonperforming

    698,588       2,060,718       1,443,121       4,202,427  
    $ 121,267,997     $ 150,825,156     $ 77,226,363     $ 349,319,516  

   

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 September 30, 2013 and December 31, 2012, troubled debt restructurings totaled $16,451,616 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 nine months ended September 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 September 30, 2013

   

For the three months ended September 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

                                                               

Owner-Occupied Commercial Real Estate

    1     $ 61,517     $ 61,517     $ -       -     $ -     $ -     $ -  

Other Non Owner-Occupied Commercial Real Estate

    7       6,637,835       6,637,835       1,518,303       4       1,184,289       1,184,289       325,923  
      8     $ 6,699,352     $ 6,699,352     $ 1,518,303       4     $ 1,184,289     $ 1,184,289     $ 325,923  
                                                                 

CONCESSION - Interest rate adjusted below market

                                                               

Other Non Owner-Occupied Commercial Real Estate

    -     $ -     $ -     $ -       2     $ 1,542,784     $ 1,289,825     $ 55,187  

Residential Real Estate

    1       79,661       79,661       24,408       -       -       -       -  
      1     $ 79,661     $ 79,661     $ 24,408       -     $ -     $ -     $ -  
                                                                 

TOTAL

    9     $ 6,779,013     $ 6,779,013     $ 1,542,711       4     $ 1,184,289     $ 1,184,289     $ 325,923  

   

For the nine months ended September 30, 2013

   

For the nine months ended September 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       -     $ -     $ -     $ -  

Owner-Occupied Commercial Real Estate

    1       61,517       61,517       -       -       -       -       -  

Other Non Owner-Occupied Commercial Real Estate

    7       6,637,835       6,637,835       1,518,303       4       1,184,289       1,184,289       325,923  
      11     $ 7,508,846     $ 7,508,846     $ 1,707,003       4     $ 1,184,289     $ 1,184,289     $ 325,923  
                                                                 

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     $ -  

Other Non Owner-Occupied Commercial Real Estate

    -       -       -       -       2       1,542,784       1,289,825       55,187  

Residential Real Estate

    2       240,288       240,288       24,408       1       167,739       167,739       -  

Installment and Other Consumer

    -       -       -       -       1       16,043       16,043       -  
      3     $ 577,788     $ 577,788     $ 24,408       5     $ 2,064,066     $ 1,811,107     $ 55,187  
                                                                 

TOTAL

    17     $ 8,596,173     $ 8,596,173     $ 1,731,411       11     $ 3,448,355     $ 3,195,396     $ 525,110  

Of the troubled debt restructurings reported above, 10 with post-modification recorded investments totaling $6,087,296 were on nonaccrual as of September 30, 2013, and four with post-modification recorded investments totaling $4,337,321 were on nonaccrual as of September 30, 2012.


For the three and nine months ended September 30, 2013, the Company had one troubled debt restructuring that redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status. The one troubled debt restructuring had a pre-modification and post-modification recorded investment of $61,517 with no specific allowance. The troubled debt restructuring was placed on nonaccrual status during the three months ended September 30, 2013.


For the three and nine months ended September 30, 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.