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

NOTE 3 – LOANS/LEASES RECEIVABLE


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


   

As of September 30,

   

As of December 31,

 
   

2014

   

2013

 
                 

Commercial and industrial loans

  $ 479,747,059     $ 431,688,129  

Commercial real estate loans

               

Owner-occupied commercial real estate

    251,076,360       261,215,912  

Commercial construction, land development, and other land

    69,856,024       57,844,902  

Other non owner-occupied commercial real estate

    376,795,649       352,692,115  
      697,728,033       671,752,929  
                 

Direct financing leases *

    162,476,079       128,901,442  

Residential real estate loans **

    154,954,020       147,356,323  

Installment and other consumer loans

    71,760,173       76,033,810  
      1,566,665,364       1,455,732,633  

Plus deferred loan/lease origination costs, net of fees

    6,203,781       4,546,925  
      1,572,869,145       1,460,279,558  

Less allowance for estimated losses on loans/leases

    (22,767,917 )     (21,448,048 )
    $ 1,550,101,228     $ 1,438,831,510  
                 
                 

* Direct financing leases:

               

Net minimum lease payments to be received

  $ 184,475,603     $ 145,662,254  

Estimated unguaranteed residual values of leased assets

    1,538,482       1,694,499  

Unearned lease/residual income

    (23,538,006 )     (18,455,311 )
      162,476,079       128,901,442  

Plus deferred lease origination costs, net of fees

    6,339,575       4,814,183  
      168,815,654       133,715,625  

Less allowance for estimated losses on leases

    (3,106,887 )     (2,517,217 )
    $ 165,708,767     $ 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 nine months ended September 30, 2014 and 2013.


**Includes residential real estate loans held for sale totaling $1,642,300 and $1,358,290 as of September 30, 2014, and December 31, 2013, respectively. 


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


   

As of September 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

  $ 470,898,126     $ 638,002     $ 284,380     $ -     $ 7,926,551     $ 479,747,059  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    249,903,102       -       -       -       1,173,258       251,076,360  

Commercial Construction, Land Development, and Other Land

    68,732,309       510,364       -       -       613,351       69,856,024  

Other Non Owner-Occupied Commercial Real Estate

    363,737,989       266,956       25,543       -       12,765,161       376,795,649  

Direct Financing Leases

    159,714,653       699,590       392,119       -       1,669,717       162,476,079  

Residential Real Estate

    153,145,275       49,543       382,281       51,094       1,325,827       154,954,020  

Installment and Other Consumer

    70,404,267       284,429       203,591       4,312       863,574       71,760,173  
    $ 1,536,535,721     $ 2,448,884     $ 1,287,914     $ 55,406     $ 26,337,439     $ 1,566,665,364  
                                                 

As a percentage of total loan/lease portfolio

    98.08 %     0.16 %     0.08 %     0.00 %     1.68 %     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 September 30, 2014 and December 31, 2013 are presented as follows:


   

As of September 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

  $ -     $ 7,926,551     $ 1,437,974     $ 9,364,525       32.83 %

Commercial Real Estate

                                       

Owner-Occupied Commercial Real Estate

    -       1,173,258       -       1,173,258       4.11 %

Commercial Construction, Land Development, and Other Land

    -       613,351       -       613,351       2.15 %

Other Non Owner-Occupied Commercial Real Estate

    -       12,765,161       -       12,765,161       44.76 %

Direct Financing Leases

    -       1,669,717       -       1,669,717       5.85 %

Residential Real Estate

    51,094       1,325,827       333,895       1,710,816       6.00 %

Installment and Other Consumer

    4,312       863,574       357,000       1,224,886       4.29 %
    $ 55,406     $ 26,337,439     $ 2,128,869     $ 28,521,714       100.00 %

*Nonaccrual loans/leases includes $9,620,674 of troubled debt restructurings, including $81,043 in commercial and industrial loans, $8,768,590 in commercial real estate loans, $64,144 in direct financing leases, $515,827 in residential real estate loans, and $191,070 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 nine months ended September 30, 2014 and 2013, respectively, are presented as follows:


   

Three Months Ended September 30, 2014

 
                                                 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Balance, beginning

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

Provisions (credits) charged to expense

    851,542       (196,865 )     509,657       (53,963 )     (47,048 )     1,063,323  

Loans/leases charged off

    (741,127 )     (120,505 )     (741,478 )     (42,022 )     (86,370 )     (1,731,502 )

Recoveries on loans/leases previously charged off

    254,265       68,346       19,577       9,870       17,014       369,072  

Balance, ending

  $ 6,914,058     $ 10,028,668     $ 3,106,887     $ 1,353,070     $ 1,365,234     $ 22,767,917  

   

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 (credits) 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  

   

Nine Months Ended September 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

    1,930,050       (460,356 )     1,428,678       42,712       218,280       3,159,364  

Loans/leases charged off

    (967,207 )     (436,056 )     (885,966 )     (95,464 )     (102,107 )     (2,486,800 )

Recoveries on loans/leases previously charged off

    302,441       219,646       46,958       9,973       68,287       647,305  

Balance, ending

  $ 6,914,058     $ 10,028,668     $ 3,106,887     $ 1,353,070     $ 1,365,234     $ 22,767,917  

   

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 (credits) 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  

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


   

As of September 30, 2014

 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 

Allowance for impaired loans/leases

  $ 2,204,926     $ 2,473,500     $ 165,617     $ 129,859     $ 506,860     $ 5,480,762  

Allowance for nonimpaired loans/leases

    4,709,132       7,555,168       2,941,270       1,223,211       858,374       17,287,155  
    $ 6,914,058     $ 10,028,668     $ 3,106,887     $ 1,353,070     $ 1,365,234     $ 22,767,917  
                                                 
                                                 
Impaired loans/leases   $ 8,258,681     $ 14,431,006     $ 1,669,717     $ 1,659,722     $ 1,278,089     $ 27,297,215  
Nonimpaired loans/leases     471,488,378       683,297,027       160,806,362       153,294,298       70,482,084       1,539,368,149  
    $ 479,747,059     $ 697,728,033     $ 162,476,079     $ 154,954,020     $ 71,760,173     $ 1,566,665,364  
                                                 
                                                 
Allowance as a percentage of impaired loans/leases     26.70 %     17.14 %     9.92 %     7.82 %     39.66 %     20.08 %
Allowance as a percentage nonimpaired loans/leases     1.00 %     1.11 %     1.83 %     0.80 %     1.22 %     1.12 %
      1.44 %     1.44 %     1.91 %     0.87 %     1.90 %     1.45 %

   

As of December 31, 2013

 
   

Commercial and Industrial

   

Commercial Real Estate

   

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                                 
Allowance for impaired loans/leases   $ 927,453     $ 3,174,704     $ 192,847     $ 246,266     $ 467,552     $ 5,008,822  
Allowance for nonimpaired loans/leases     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  
                                                 
Impaired loans/leases   $ 1,761,850     $ 12,956,915     $ 894,458     $ 2,116,747     $ 1,350,450     $ 19,080,420  
Nonimpaired loans/leases     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 impaired loans/leases     52.64 %     24.50 %     21.56 %     11.63 %     34.62 %     26.25 %
Allowance as a percentage nonimpaired loans/leases     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 nine months ended September 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

  $ 560,005     $ 667,983     $ -     $ 647,016     $ 19,754     $ 19,754  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    760,586       873,808       -       536,402       -       -  

Commercial Construction, Land Development, and Other Land

    1,385,356       1,496,556       -       1,615,643       -       -  

Other Non Owner-Occupied Commercial Real Estate

    4,989,393       5,044,816       -       3,169,784       13,283       13,283  

Direct Financing Leases

    1,109,844       1,109,884       -       966,959       -       -  

Residential Real Estate

    1,113,535       1,113,535       -       1,332,539       2,879       2,879  

Installment and Other Consumer

    455,457       455,457       -       520,020       -       -  
    $ 10,374,176     $ 10,762,039     $ -     $ 8,788,363     $ 35,916     $ 35,916  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 7,698,676     $ 8,464,069     $ 2,204,926     $ 1,702,548     $ -     $ -  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    439,701       439,701       143,453       282,878       -       -  

Commercial Construction, Land Development, and Other Land

    794,703       806,703       457,086       801,643       -       -  

Other Non Owner-Occupied Commercial Real Estate

    6,061,267       6,760,858       1,872,961       5,971,713       -       -  

Direct Financing Leases

    559,873       559,873       165,617       425,472       -       -  

Residential Real Estate

    546,187       546,187       129,859       520,782       2,074       2,074  

Installment and Other Consumer

    822,632       822,632       506,860       779,968       2,670       2,670  
    $ 16,923,039     $ 18,400,023     $ 5,480,762     $ 10,485,004     $ 4,744     $ 4,744  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 8,258,681     $ 9,132,052     $ 2,204,926     $ 2,349,564     $ 19,754     $ 19,754  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    1,200,287       1,313,509       143,453       819,280       -       -  

Commercial Construction, Land Development, and Other Land

    2,180,059       2,303,259       457,086       2,417,286       -       -  

Other Non Owner-Occupied Commercial Real Estate

    11,050,660       11,805,674       1,872,961       9,141,497       13,283       13,283  

Direct Financing Leases

    1,669,717       1,669,757       165,617       1,392,431       -       -  

Residential Real Estate

    1,659,722       1,659,722       129,859       1,853,321       4,953       4,953  

Installment and Other Consumer

    1,278,089       1,278,089       506,860       1,299,988       2,670       -  
    $ 27,297,215     $ 29,162,062     $ 5,480,762     $ 19,273,367     $ 40,660     $ 40,660  

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


   

Three Months Ended September 30, 2014

   

Three Months Ended September 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

  $ 621,836     $ 17,855     $ 17,855     $ 834,405     $ 1,950     $ 1,950  

Commercial Real Estate

                    -                          

Owner-Occupied Commercial Real Estate

    751,191       -       -       2,295,969       -       -  

Commercial Construction, Land Development, and Other Land

    1,397,733       -       -       1,943,718       -       -  

Other Non Owner-Occupied Commercial Real Estate

    4,051,261       -       -       1,739,053       354       354  

Direct Financing Leases

    1,152,456       -       -       527,153       -       -  

Residential Real Estate

    1,186,197       704       704       1,273,943       -       -  

Installment and Other Consumer

    494,498       -       -       1,012,035       1,689       1,689  
    $ 9,655,172     $ 18,559     $ 18,559     $ 9,626,276     $ 3,993     $ 3,993  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                               

Commercial and Industrial

  $ 3,454,429     $ -     $ -     $ 1,913,841     $ 9,340     $ 9,340  

Commercial Real Estate

                    -                          

Owner-Occupied Commercial Real Estate

    439,701       -       -       1,181,798       -       -  

Commercial Construction, Land Development, and Other Land

    796,194       -       -       1,897,759       1,992       1,992  

Other Non Owner-Occupied Commercial Real Estate

    6,034,473       -       -       8,893,535       26,484       26,484  

Direct Financing Leases

    578,317       -       -       172,428       -       -  

Residential Real Estate

    564,278       1,296       1,296       561,752       801       801  

Installment and Other Consumer

    826,092       890       890       422,808       -       -  
    $ 12,693,484     $ 2,186     $ 2,186     $ 15,043,921     $ 38,617     $ 38,617  
                                                 

Total Impaired Loans/Leases:

                                               

Commercial and Industrial

  $ 4,076,265     $ 17,855     $ 17,855     $ 2,748,246     $ 11,290     $ 11,290  

Commercial Real Estate

                                               

Owner-Occupied Commercial Real Estate

    1,190,892       -       -       3,477,767       -       -  

Commercial Construction, Land Development, and Other Land

    2,193,927       -       -       3,841,477       1,992       1,992  

Other Non Owner-Occupied Commercial Real Estate

    10,085,734       -       -       10,632,588       26,838       26,838  

Direct Financing Leases

    1,730,773       -       -       699,581       -       -  

Residential Real Estate

    1,750,475       2,000       2,000       1,835,695       801       801  

Installment and Other Consumer

    1,320,590       890       890       1,434,843       1,689       1,689  
    $ 22,348,656     $ 20,745     $ 20,745     $ 24,670,197     $ 42,610     $ 42,610  

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 September 30, 2014 and December 31, 2013:


   

As of September 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)

  $ 448,093,142     $ 241,429,419     $ 66,448,462     $ 349,173,522     $ 1,105,144,545  

Special Mention (Rating 6)

    15,306,200       6,598,947       -       2,058,884       23,964,031  

Substandard (Rating 7)

    16,347,717       3,047,994       3,407,562       25,563,243       48,366,516  

Doubtful (Rating 8)

    -       -       -       -       -  
    $ 479,747,059     $ 251,076,360     $ 69,856,024     $ 376,795,649     $ 1,177,475,092  

   

As of September 30, 2014

 

Delinquency Status *

 

Direct Financing Leases

   

Residential Real Estate

   

Installment and Other Consumer

   

Total

 
                                 

Performing

  $ 160,806,362     $ 153,243,203     $ 70,535,287     $ 384,584,852  

Nonperforming

    1,669,717       1,710,817       1,224,886       4,605,420  
    $ 162,476,079     $ 154,954,020     $ 71,760,173     $ 389,190,272  

   

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 September 30, 2014 and December 31, 2013, troubled debt restructurings totaled $11,749,543 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 nine months ended September 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 September 30, 2014

   

For the three months ended September 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 - Interest rate adjusted below market

                                                               

Residential Real Estate

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

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  
      -     $ -     $ -     $ -       8     $ 6,699,352     $ 6,699,352     $ 1,518,303  
                                                                 

CONCESSION - Other

                                                               

Residential Real Estate

    1     $ 96,439     $ 71,760     $ 7,125       -     $ -     $ -     $ -  
      1     $ 96,439     $ 71,760     $ 7,125       -     $ -     $ -     $ -  
                                                                 

TOTAL

    1     $ 96,439     $ 71,760     $ 7,125       9     $ 6,779,013     $ 6,779,013     $ 1,542,711  

   

For the nine months ended September 30, 2014

   

For the nine months ended September 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

    -       -       -       -       2       240,288       240,288       24,408  
      -     $ -     $ -     $ -       3     $ 577,788     $ 577,788     $ 24,408  
                                                                 

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  

Direct Financing Leases

    1       70,144       70,144       24,246       -       -       -       -  
      1     $ 70,144     $ 70,144     $ 24,246       11     $ 7,508,846     $ 7,508,846     $ 1,707,003  
                                                                 

CONCESSION - Other

                                                               

Commercial and Industrial

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

Residential Real Estate

    1     $ 96,439     $ 71,760     $ 7,125                                  
      2     $ 524,288     $ 499,609     $ 120,574       -     $ -     $ -     $ -  
                                                                 

TOTAL

    7     $ 1,573,029     $ 1,548,350     $ 384,603       17     $ 8,596,173     $ 8,596,173     $ 1,731,411  

Of the troubled debt restructurings reported above, three with a post-modification recorded investment totaling $75,767 were on nonaccrual as of September 30, 2014, and ten with post-modification recorded investments totaling $6,087,296 were on nonaccrual as of September 30, 2013.


For the three and nine months ended September 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.