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Note 4 - Loans/Leases Receivable

12 Months Ended

Dec. 31, 2013

Note 4. Loans/Leases Receivable

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

	2013			2012

Commercial and industrial loans	$	431,688,129		$	394,244,252
Commercial real estate loans
Owner-occupied commercial real estate		261,215,912			204,911,308
Commercial construction, land development, and other land		57,844,902			44,962,381
Other non owner-occupied commercial real estate		352,692,115			344,105,550
		671,752,929			593,979,239

Direct financing leases *		128,901,442			103,685,656
Residential real estate loans **		147,356,323			115,581,573
Installment and other consumer loans		76,033,810			76,720,514
		1,455,732,633			1,284,211,234
Plus deferred loan/lease orgination costs, net of fees		4,546,925			3,176,405
		1,460,279,558			1,287,387,639
Less allowance for estimated losses on loans/leases		(21,448,048	)		(19,925,204	)
	$	1,438,831,510		$	1,267,462,435


* Direct financing leases:
Net minimum lease payments to be received	$	145,662,254		$	117,719,380
Estimated unguaranteed residual values of leased assets		1,694,499			1,095,848
Unearned lease/residual income		(18,455,311	)		(15,129,572	)
		128,901,442			103,685,656
Plus deferred lease origination costs, net of fees		4,814,183			3,907,140
		133,715,625			107,592,796
Less allowance for estimated losses on leases		(2,517,217	)		(1,990,395	)
	$	131,198,408		$	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 during the years ended December 31, 2013, 2012, and 2011. At December 31, 2013, the Company had 33 leases remaining with residual values totaling $1,694,499 that were not protected with a lease end options rider. 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. 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 $1,358,290 and $4,577,233 as of December 31, 2013 and 2012, respectively.

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

	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	$	429,557,699		$	199,949		$	185,500		$	-		$	1,744,981		$	431,688,129
Commercial Real Estate
Owner-Occupied Commercial Real Estate		258,557,660			465,418			993,163			60,286			1,139,385			261,215,912
Commercial Construction, Land Development, and Other Land		56,301,186			358,626			-			-			1,185,090			57,844,902
Other Non Owner-Occupied Commercial Real Estate		341,743,730			476,877			151,017			-			10,320,491			352,692,115
Direct Financing Leases		126,878,515			714,464			414,005			-			894,458			128,901,442
Residential Real Estate		142,353,936			3,088,516			275,262			20,126			1,618,483			147,356,323
Installment and Other Consumer		74,811,489			127,082			116,468			3,762			975,009			76,033,810
	$	1,430,204,215		$	5,430,932		$	2,135,415		$	84,174		$	17,877,897		$	1,455,732,633

As a percentage of total loan/lease portfolio		98.25	%		0.37	%		0.15	%		0.01	%		1.23	%		100.00	%

	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 December 31, 2013 and 2012 is presented as follows:

	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	$	-	$	1,744,981	$	878,381	$	2,623,362		12.81	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		60,286		1,139,385		-		1,199,671		5.86	%
Commercial Construction, Land Development, and Other Land		-		1,185,090		-		1,185,090		5.79	%
Other Non Owner-Occupied Commercial Real Estate		-		10,320,491		905,205		11,225,696		54.80	%
Direct Financing Leases		-		894,458		-		894,458		4.37	%
Residential Real Estate		20,126		1,618,483		371,995		2,010,604		9.82	%
Installment and Other Consumer		3,762		975,009		367,000		1,345,771		6.57	%
	$	84,174	$	17,877,897	$	2,522,581	$	20,484,652		100.00	%

*At December 31, 2013, nonaccrual loans/leases included $10,890,785 of troubled debt restructurings, including $77,072 in commercial and industrial loans, $10,077,501 in commercial real estate loans, $446,996 in residential real estate loans, and $289,216 in installment loans.

	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.

Changes in the allowance for estimated losses on loans/leases by portfolio segment for the years ended December 31, 2013, 2012, and 2011 are presented as follows:

	Year Ended December 31, 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		1,453,455			2,635,327			1,431,246			471,060			(60,668	)		5,930,420
Loans/leases charged off		(962,607	)		(3,573,006	)		(916,836	)		(162,010	)		(229,447	)		(5,843,906	)
Recoveries on loans/leases previously charged off		626,381			573,611			12,412			16,471			207,455			1,436,330
Balance, ending	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048

	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

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

	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	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for loans/leases collectively evaluated for impairment		4,721,321			7,530,730			2,324,370			1,149,583			713,222			16,439,226
	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048


Loans/leases individually evaluated for impairment	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Loans/leases collectively evaluated for impairment		429,926,279			658,796,014			128,006,984			145,239,576			74,683,360			1,436,652,213
	$	431,688,129		$	671,752,929		$	128,901,442		$	147,356,323		$	76,033,810		$	1,455,732,633


Allowance as a percentage of loans/leases individually evaluated for impairment		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.10	%		1.14	%		1.82	%		0.79	%		0.95	%		1.14	%
Total allowance as a percentage of total loans/leaess		1.31	%		1.59	%		1.95	%		0.95	%		1.55	%		1.47	%

	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	%

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, 2013, 2012, and 2011 is presented as follows:

	2013
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	$	492,622	$	568,951	$	-	$	747,134	$	7,749	$	7,749
Commercial Real Estate
Owner-Occupied Commercial Real Estate		392,542		392,542		-		1,881,823		-		-
Commercial Construction, Land Development, and Other Land		1,943,168		2,054,368		-		2,666,039		-		-
Other Non Owner-Occupied Commercial Real Estate		1,790,279		1,902,279		-		3,869,493		58,534		58,534
Direct Financing Leases		557,469		557,469		-		802,825		-		-
Residential Real Estate		1,071,927		1,071,927		-		1,010,027		4,235		4,235
Installment and Other Consumer		509,667		509,667		-		606,282		4,464		4,464
	$	6,757,674	$	7,057,203	$	-	$	11,583,623	$	74,982	$	74,982

Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,269,228	$	1,956,755	$	927,453	$	1,222,449	$	33,703	$	33,703
Commercial Real Estate
Owner-Occupied Commercial Real Estate		159,247		159,247		67,498		87,035		-		-
Commercial Construction, Land Development, and Other Land		888,547		1,011,747		503,825		1,137,489		10,862		10,862
Other Non Owner-Occupied Commercial Real Estate		7,783,132		8,488,414		2,603,381		7,426,299		45,926		45,926
Direct Financing Leases		336,989		336,989		192,847		97,846		-		-
Residential Real Estate		1,044,820		1,044,820		246,266		641,217		1,883		1,883
Installment and Other Consumer		840,783		840,783		467,552		640,557		-		-
	$	12,322,746	$	13,838,755	$	5,008,822	$	11,252,892	$	92,374	$	92,374

Total Impaired Loans/Leases:
Commercial and Industrial	$	1,761,850	$	2,525,706	$	927,453	$	1,969,583	$	41,452	$	41,452
Commercial Real Estate
Owner-Occupied Commercial Real Estate		551,789		551,789		67,498		1,968,858		-		-
Commercial Construction, Land Development, and Other Land		2,831,715		3,066,115		503,825		3,803,528		10,862		10,862
Other Non Owner-Occupied Commercial Real Estate		9,573,411		10,390,693		2,603,381		11,295,792		104,460		104,460
Direct Financing Leases		894,458		894,458		192,847		900,671		-		-
Residential Real Estate		2,116,747		2,116,747		246,266		1,651,244		6,118		6,118
Installment and Other Consumer		1,350,450		1,350,450		467,552		1,246,839		4,464		4,464
	$	19,080,420	$	20,895,958	$	5,008,822	$	22,836,515	$	167,356	$	167,356

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

	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.

Note 4. Loans/Leases Receivable (continued)

	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.

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, 2013 and 2012:

	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)	$	407,294,743	$	250,028,731	$	51,868,919	$	326,168,882	$	1,035,361,275
Special Mention (Rating 6)		11,355,713		8,318,232		1,588,086		3,310,017		24,572,048
Substandard (Rating 7)		13,037,673		2,868,949		4,387,897		23,213,216		43,507,735
Doubtful (Rating 8)		-		-		-		-		-
	$	431,688,129	$	261,215,912	$	57,844,902	$	352,692,115	$	1,103,441,058

	2013
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total

Performing	$	128,006,984	$	145,345,719	$	74,688,039	$	348,040,742
Nonperforming		894,458		2,010,604		1,345,771		4,250,833
	$	128,901,442	$	147,356,323	$	76,033,810	$	352,291,575

	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

*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, 2013 and 2012, troubled debt restructurings totaled $13,413,366 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 years ended December 31, 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 restructuring. The specific allowance is as of December 31, 2013 and 2012, respectively. The following excludes any troubled debt restructurings that were restructured and paid off in the same year.

	2013
Classes of Loans/Leases	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	$	182,498
Owner-Occupied Commercial Real Estate		1		61,517		61,517		10,260
Other Non Owner-Occupied Commercial Real Estate *		8		6,637,835		6,637,835		1,535,154
		12	$	7,508,846	$	7,508,846	$	1,727,912

CONCESSION - Significant payment delay
Residential Real Estate		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		1		370,000		370,000		300
		2	$	461,581	$	461,581	$	300

CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		1	$	337,500	$	337,500	$	-
Other Non Owner-Occupied Commercial Real Estate **		1		-		-		4,837
Residential Real Estate		3		394,838		394,838		108,121
		5	$	732,338	$	732,338	$	112,958

TOTAL		19	$	8,702,765	$	8,702,765	$	1,841,170

*Includes one troubled debt restructuring that is a $136,000 line of credit that had nothing outstanding at the time of modification. The total amount outstanding as of December 31, 2013 was $135,477 with specific allowance of $67,745.

**Includes one troubled debt restructuring that is a $25,000 line of credit that had nothing outstanding at the time of modification. The total amount outstanding as of December 31, 2013 was $4,837 with specific allowance of $4,837.

Of the troubled debt restructurings reported above, 13 with post-modification recorded investments totaling $6,579,346 were on nonaccrual as of December 31, 2013.

For the year ended December 31, 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.

	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.

For the year ended December 31, 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.

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, 2013, 2012, and 2011, was as follows:

	2013			2012			2011

Balance, beginning	$	20,502,058		$	19,155,542		$	20,796,427
Net increase (decrease) due to change in related parties		17,124,702			2,784,143			(235,000	)
Advances		6,213,381			6,754,970			10,674,567
Repayments		(4,647,175	)		(8,192,597	)		(12,080,452	)
Balance, ending	$	39,192,966		$	20,502,058		$	19,155,542

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, 2013 and 2012 as follows:

	2013					2012
Industry Name	Balance		Percentage of Total Loans/Leases			Balance		Percentage of Total Loans/Leases

Lessors of Non-Residential Buildings	$	237,049,149		16	%	$	178,060,120		14	%
Lessors of Residential Buildings		69,087,354		5	%		61,459,574		5	%
Bank Holding Companies		56,716,875		4	%		47,662,055		4	%