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Note 3 - Loans/Leases Receivable
 6 Months Ended
Jun. 30, 2014
Receivables [Abstract]  
Financing Receivables [Text Block]

NOTE 3 – LOANS/LEASES RECEIVABLE


The composition of the loan/lease portfolio as of June 30, 2014 and December 31, 2013 is presented as follows:


   

As of June 30,

   

As of December 31,

 
   

2014

   

2013

 
                 

Commercial and industrial loans

  $ 480,494,321     $ 431,688,129  

Commercial real estate loans

               

Owner-occupied commercial real estate

    247,596,151       261,215,912  

Commercial construction, land development, and other land

    58,042,089       57,844,902  

Other non owner-occupied commercial real estate

    377,737,501       352,692,115  
      683,375,741       671,752,929  
                 

Direct financing leases *

    155,004,018       128,901,442  

Residential real estate loans **

    153,199,719       147,356,323  

Installment and other consumer loans

    71,443,399       76,033,810  
      1,543,517,198       1,455,732,633  

Plus deferred loan/lease origination costs, net of fees

    5,850,551       4,546,925  
      1,549,367,749       1,460,279,558  

Less allowance for estimated losses on loans/leases

    (23,067,024 )     (21,448,048 )
    $ 1,526,300,725     $ 1,438,831,510  
                 
                 

* Direct financing leases:

               

Net minimum lease payments to be received

  $ 175,772,051     $ 145,662,254  

Estimated unguaranteed residual values of leased assets

    1,642,309       1,694,499  

Unearned lease/residual income

    (22,410,342 )     (18,455,311 )
      155,004,018       128,901,442  

Plus deferred lease origination costs, net of fees

    5,935,700       4,814,183  
      160,939,718       133,715,625  

Less allowance for estimated losses on leases

    (3,319,131 )     (2,517,217 )
    $ 157,620,587     $ 131,198,408  

*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, 2014 and 2013.


**Includes residential real estate loans held for sale totaling $1,302,175 and $1,358,290 as of June 30, 2014, and December 31, 2013, respectively.


The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2014 and December 31, 2013 is presented as follows:


   

As of June 30, 2014

 

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

  $ 478,425,272     $ 162,344     $ 110,714     $ 41,950     $ 1,754,041     $ 480,494,321  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    244,861,764       81,356       1,380,715       39,852       1,232,464       247,596,151  

Commercial Construction, Land Development, and Other Land

    56,324,561       1,086,827       -       -       630,701       58,042,089  

Other Non Owner-Occupied Commercial Real Estate

    366,941,393       924,340       18,800       -       9,852,968       377,737,501  

Direct Financing Leases

    151,796,790       599,582       802,650       13,167       1,791,829       155,004,018  

Residential Real Estate

    151,334,965       65,549       347,400       -       1,451,805       153,199,719  

Installment and Other Consumer

    70,353,793       94,038       49,196       8,646       937,726       71,443,399  
    $ 1,520,038,538     $ 3,014,036     $ 2,709,475     $ 103,615     $ 17,651,534     $ 1,543,517,198  
                                                 

As a percentage of total loan/lease portfolio

    98.48 %     0.20 %     0.18 %     0.01 %     1.14 %     100.00 %

   

As of December 31, 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 %

Nonperforming loans/leases by classes of loans/leases as of June 30, 2014 and December 31, 2013 are presented as follows:


    As of June 30, 2014  

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

  $ 41,950     $ 1,754,041     $ 1,483,846     $ 3,279,837       16.45 %

Commercial Real Estate

                                       

Owner-Occupied Commercial Real Estate

    39,852       1,232,464       -       1,272,316       6.38 %

Commercial Construction, Land Development, and Other Land

    -       630,701       -       630,701       3.16 %

Other Non Owner-Occupied Commercial Real Estate

    -       9,852,968       -       9,852,968       49.41 %

Direct Financing Leases

    13,167       1,791,829       -       1,804,996       9.05 %

Residential Real Estate

    -       1,451,805       343,322       1,795,127       9.00 %

Installment and Other Consumer

    8,646       937,726       357,000       1,303,372       6.54 %
    $ 103,615     $ 17,651,534     $ 2,184,168     $ 19,939,317       100.00 %

*Nonaccrual loans/leases includes $9,778,112 of troubled debt restructurings, including $83,922 in commercial and industrial loans, $8,897,061 in commercial real estate loans, $156,800 in direct financing leases, $443,224 in residential real estate loans, and $197,105 in installment loans.


    As of December 31, 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 %

**Nonaccrual loans/leases includes $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.


Changes in the allowance for estimated losses on loans/leases by portfolio segment for the three and six months ended June 30, 2014 and 2013, respectively, are presented as follows:


   

Three Months Ended June 30, 2014

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

  $ 6,647,658     $ 10,587,657     $ 2,820,239     $ 1,388,885     $ 1,208,831     $ 22,653,270  

Provisions (credits) charged to expense

    101,718       (33,506 )     566,374       101,030       266,263       1,001,879  

Loans/leases charged off

    (222,057 )     (311,453 )     (78,755 )     (50,730 )     (12,982 )     (675,977 )

Recoveries on loans/leases previously charged off

    22,059       34,994       11,273       -       19,526       87,852  

Balance, ending

  $ 6,549,378     $ 10,277,692     $ 3,319,131     $ 1,439,185     $ 1,481,638     $ 23,067,024  

   

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 (credits) 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  

   

Six Months Ended June 30, 2014

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

  $ 5,648,774     $ 10,705,434     $ 2,517,217     $ 1,395,849     $ 1,180,774     $ 21,448,048  

Provisions (credits) charged to expense

    1,078,508       (263,491 )     919,021       96,675       265,328       2,096,041  

Loans/leases charged off

    (226,080 )     (315,551 )     (144,488 )     (53,442 )     (15,737 )     (755,298 )

Recoveries on loans/leases previously charged off

    48,176       151,300       27,381       103       51,273       278,233  

Balance, ending

  $ 6,549,378     $ 10,277,692     $ 3,319,131     $ 1,439,185     $ 1,481,638     $ 23,067,024  

   

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 (credits) 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  

The allowance for estimated losses on loans/leases by impairment evaluation and by portfolio segment as of June 30, 2014 and December 31, 2013 is presented as follows:


   

As of June 30, 2014

 
   

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

  $ 848,593     $ 2,567,526     $ 534,043     $ 237,358     $ 471,025     $ 4,658,545  

Allowance for loans/leases collectively evaluated for impairment

    5,700,785       7,710,166       2,785,088       1,201,827       1,010,613       18,408,479  
    $ 6,549,378     $ 10,277,692     $ 3,319,131     $ 1,439,185     $ 1,481,638     $ 23,067,024  
                                                 
                                                 

Loans/leases individually evaluated for impairment

  $ 2,104,768     $ 11,264,502     $ 1,791,828     $ 1,795,128     $ 1,294,726     $ 18,250,952  

Loans/leases collectively evaluated for impairment

    478,389,553       672,111,239       153,212,190       151,404,591       70,148,673       1,525,266,246  
    $ 480,494,321     $ 683,375,741     $ 155,004,018     $ 153,199,719     $ 71,443,399     $ 1,543,517,198  
                                                 
                                                 

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

    40.32 %     22.79 %     29.80 %     13.22 %     36.38 %     25.52 %

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

    1.19 %     1.15 %     1.82 %     0.79 %     1.44 %     1.21 %
      1.36 %     1.50 %     2.14 %     0.94 %     2.07 %     1.49 %

   

As of December 31, 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 %
      1.31 %     1.59 %     1.95 %     0.95 %     1.55 %     1.47 %

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, 2014 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

  $ 575,419     $ 730,020     $ -     $ 631,165     $ 1,899     $ 1,899  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    380,931       380,931       -       410,136       -       -  

Commercial Construction, Land Development, and Other Land

    1,622,016       1,856,416       -       1,923,766       -       -  

Other Non Owner-Occupied Commercial Real Estate

    1,941,116       1,941,116       -       2,695,138       13,283       13,283  

Direct Financing Leases

    793,247       793,247       -       651,516       -       -  

Residential Real Estate

    954,464       954,464       -       1,137,735       2,175       2,175  

Installment and Other Consumer

    457,611       457,611       -       501,576       1,780       1,780  
    $ 6,724,804     $ 7,113,805     $ -     $ 7,951,032     $ 19,137     $ 19,137  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 1,529,349     $ 2,049,051     $ 848,593     $ 855,050     $ -     $ -  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    552,923       552,923       176,287       223,337       -       -  

Commercial Construction, Land Development, and Other Land

    600,920       600,920       461,671       605,198       -       -  

Other Non Owner-Occupied Commercial Real Estate

    6,166,596       6,866,187       1,929,568       5,974,240       -       -  

Direct Financing Leases

    998,581       998,581       534,043       648,487       -       -  

Residential Real Estate

    840,664       840,664       237,358       767,008       778       778  

Installment and Other Consumer

    837,115       837,115       471,025       788,112       -       -  
    $ 11,526,148     $ 12,745,441     $ 4,658,545     $ 9,861,432     $ 778     $ 778  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 2,104,768     $ 2,779,071     $ 848,593     $ 1,486,215     $ 1,899     $ 1,899  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    933,854       933,854       176,287       633,473       -       -  

Commercial Construction, Land Development, and Other Land

    2,222,936       2,457,336       461,671       2,528,964       -       -  

Other Non Owner-Occupied Commercial Real Estate

    8,107,712       8,807,303       1,929,568       8,669,378       13,283       13,283  

Direct Financing Leases

    1,791,828       1,791,828       534,043       1,300,003       -       -  

Residential Real Estate

    1,795,128       1,795,128       237,358       1,904,743       2,953       2,953  

Installment and Other Consumer

    1,294,726       1,294,726       471,025       1,289,688       1,780       1,780  
    $ 18,250,952     $ 19,859,246     $ 4,658,545     $ 17,812,464     $ 19,915     $ 19,915  

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, 2014 and 2013, respectively, are presented as follows:


   

Three Months Ended June 30, 2014

   

Three Months Ended June 30, 2013

 

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

  $ 589,889     $ 11     $ 11     $ 613,506     $ 1,937     $ 1,937  

Commercial Real Estate

                    -                          

Owner-Occupied Commercial Real Estate

    383,861       -       -       3,107,106       -       -  

Commercial Construction, Land Development, and Other Land

    1,642,205       -       -       325,000       -       -  

Other Non Owner-Occupied Commercial Real Estate

    2,222,582       -       -       353,972       657       657  

Direct Financing Leases

    700,607       -       -       822,718       -       -  

Residential Real Estate

    1,014,286       720       720       1,057,657       -       -  

Installment and Other Consumer

    465,820       890       890       915,478       2,686       2,686  
    $ 7,019,250     $ 1,621     $ 1,621     $ 7,195,437     $ 5,280     $ 5,280  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 989,979     $ -     $ -     $ 1,229,737     $ 15,307     $ 15,307  

Commercial Real Estate

                    -                          

Owner-Occupied Commercial Real Estate

    334,236       -       -       653,815       -       -  

Commercial Construction, Land Development, and Other Land

    602,498       -       -       3,656,226       2,716       2,716  

Other Non Owner-Occupied Commercial Real Estate

    6,057,384       -       -       10,143,708       -       -  

Direct Financing Leases

    855,628       -       -       133,038       -       -  

Residential Real Estate

    779,104       4       4       302,334       -       -  

Installment and Other Consumer

    817,994       -       -       430,427       -       -  
    $ 10,436,823     $ 4     $ 4     $ 16,549,285     $ 18,023     $ 18,023  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 1,579,868     $ 11     $ 11     $ 1,843,243     $ 17,244     $ 17,244  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    718,097       -       -       3,760,921       -       -  

Commercial Construction, Land Development, and Other Land

    2,244,703       -       -       3,981,226       2,716       2,716  

Other Non Owner-Occupied Commercial Real Estate

    8,279,966       -       -       10,497,680       657       657  

Direct Financing Leases

    1,556,235       -       -       955,756       -       -  

Residential Real Estate

    1,793,390       724       724       1,359,991       -       -  

Installment and Other Consumer

    1,283,814       890       890       1,345,905       2,686       2,686  
    $ 17,456,073     $ 1,625     $ 1,625     $ 23,744,722     $ 23,303     $ 23,303  

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, 2013 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

  $ 492,622     $ 568,951     $ -  

Commercial Real Estate

                       

Owner-Occupied Commercial Real Estate

    392,542       392,542       -  

Commercial Construction, Land Development, and Other Land

    1,943,168       2,054,368       -  

Other Non Owner-Occupied Commercial Real Estate

    1,790,279       1,902,279       -  

Direct Financing Leases

    557,469       557,469       -  

Residential Real Estate

    1,071,927       1,071,927       -  

Installment and Other Consumer

    509,667       509,667       -  
    $ 6,757,674     $ 7,057,203     $ -  
                         

Impaired Loans/Leases with Specific Allowance Recorded:

                       

Commercial and Industrial

  $ 1,269,228     $ 1,956,755     $ 927,453  

Commercial Real Estate

                       

Owner-Occupied Commercial Real Estate

    159,247       159,247       67,498  

Commercial Construction, Land Development, and Other Land

    888,547       1,011,747       503,825  

Other Non Owner-Occupied Commercial Real Estate

    7,783,132       8,488,414       2,603,381  

Direct Financing Leases

    336,989       336,989       192,847  

Residential Real Estate

    1,044,820       1,044,820       246,266  

Installment and Other Consumer

    840,783       840,783       467,552  
    $ 12,322,746     $ 13,838,755     $ 5,008,822  
                         

Total Impaired Loans/Leases:

                       

Commercial and Industrial

  $ 1,761,850     $ 2,525,706     $ 927,453  

Commercial Real Estate

                       

Owner-Occupied Commercial Real Estate

    551,789       551,789       67,498  

Commercial Construction, Land Development, and Other Land

    2,831,715       3,066,115       503,825  

Other Non Owner-Occupied Commercial Real Estate

    9,573,411       10,390,693       2,603,381  

Direct Financing Leases

    894,458       894,458       192,847  

Residential Real Estate

    2,116,747       2,116,747       246,266  

Installment and Other Consumer

    1,350,450       1,350,450       467,552  
    $ 19,080,420     $ 20,895,958     $ 5,008,822  

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, 2014 and December 31, 2013:


   

As of June 30, 2014

 
           

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)

  $ 444,280,023     $ 228,602,988     $ 54,249,436     $ 349,022,456     $ 1,076,154,903  

Special Mention (Rating 6)

    22,616,136       10,214,621       -       1,475,286       34,306,043  

Substandard (Rating 7)

    13,598,162       8,778,542       3,792,653       27,239,759       53,409,116  

Doubtful (Rating 8)

    -       -       -       -       -  
    $ 480,494,321     $ 247,596,151     $ 58,042,089     $ 377,737,501     $ 1,163,870,062  

   

As of June 30, 2014

 

Delinquency Status *

 

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                 

Performing

  $ 153,199,022     $ 151,404,592     $ 70,140,027     $ 374,743,641  

Nonperforming

    1,804,996       1,795,127       1,303,372       4,903,495  
    $ 155,004,018     $ 153,199,719     $ 71,443,399     $ 379,647,136  

   

As of December 31, 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  

   

As of December 31, 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  

*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, 2014 and December 31, 2013, troubled debt restructurings totaled $11,962,280 and $13,413,366, 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, 2014 and 2013. 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, 2014

   

For the three months ended June 30, 2013

 

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

                                                               

Commercial and Industrial

    3     $ 889,154     $ 889,154     $ 239,783       -     $ -     $ -     $ -  

Residential Real Estate

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

Installment and Other Consumer

    -     $ -     $ -     $ -       1     $ 370,000     $ 370,000     $ -  
      3     $ 889,154     $ 889,154     $ 239,783       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     $ -  
                                                                 

CONCESSION - Other

                                                               

Commercial and Industrial

    1     $ 427,849     $ 427,849     $ 113,449       -     $ -     $ -     $ -  
      1     $ 427,849     $ 427,849     $ 113,449       -     $ -     $ -     $ -  
                                                                 

TOTAL

    4     $ 1,317,003     $ 1,317,003     $ 353,232       4     $ 959,708     $ 959,708     $ -  

   

For the six months ended June 30, 2014

   

For the six months ended June 30, 2013

 

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

                                                               

Commercial and Industrial

    3     $ 889,154     $ 889,154     $ 239,783       -     $ -     $ -     $ -  

Owner-Occupied Commercial Real Estate

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

Direct Financing Leases

    1     $ 89,443     $ 89,443     $ -       -     $ -     $ -     $ -  

Residential Real Estate

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

Installment and Other Consumer

    -     $ -     $ -       -       1     $ 370,000     $ 370,000     $ -  
      4     $ 978,597     $ 978,597     $ 239,783       3     $ 509,539     $ 509,539     $ -  
                                                                 

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     $ -  
                                                                 

CONCESSION - Extension of maturity

                                                               

Commercial and Industrial

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

Direct Financing Leases

    1     $ 70,144     $ 70,144     $ 24,246       -     $ -     $ -     $ -  
      1     $ 70,144     $ 70,144     $ 24,246       3     $ 809,494     $ 809,494     $ 188,700  
                                                                 

CONCESSION - Other

                                                               

Commercial and Industrial

    1     $ 427,849     $ 427,849     $ 113,449       -     $ -     $ -     $ -  
      1     $ 427,849     $ 427,849     $ 113,449       -     $ -     $ -     $ -  
                                                                 

TOTAL

    6     $ 1,476,590     $ 1,476,590     $ 377,478       8     $ 1,817,160     $ 1,817,160     $ 188,700  

Of the troubled debt restructurings reported above, four with a post-modification recorded investment totaling $168,751 were on nonaccrual as of June 30, 2014, and three with post-modification recorded investments totaling $178,007 were on nonaccrual as of June 30, 2013.


For the three and six months ended June 30, 2014 and 2013, 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.