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Note 4 - Loans/Leases Receivable

12 Months Ended

Dec. 31, 2014

Note 4. Loans/Leases Receivable

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

	2014			2013

Commercial and industrial loans	$	523,927,140		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		260,069,080			261,215,912
Commercial construction, land development, and other land		68,118,989			57,844,902
Other non owner-occupied commercial real estate		373,952,353			352,692,115
		702,140,422			671,752,929

Direct financing leases *		166,032,416			128,901,442
Residential real estate loans **		158,632,492			147,356,323
Installment and other consumer loans		72,606,480			76,033,810
		1,623,338,950			1,455,732,633
Plus deferred loan/lease orgination costs, net of fees		6,664,120			4,546,925
		1,630,003,070			1,460,279,558
Less allowance for estimated losses on loans/leases		(23,074,365	)		(21,448,048	)
	$	1,606,928,705		$	1,438,831,510


* Direct financing leases:
Net minimum lease payments to be received	$	188,181,432		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,488,342			1,694,499
Unearned lease/residual income		(23,637,358	)		(18,455,311	)
		166,032,416			128,901,442
Plus deferred lease origination costs, net of fees		6,639,244			4,814,183
		172,671,660			133,715,625
Less allowance for estimated losses on leases		(3,442,915	)		(2,517,217	)
	$	169,228,745		$	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 during the years ended December 31, 2014, 2013, and 2012. At December 31, 2014, the Company had 27 leases remaining with residual values totaling $1,488,342 that were not protected with a lease end options rider. 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. 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 $553,000 and $1,358,290 as of December 31, 2014 and 2013, respectively.

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

	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	$	515,616,752		$	323,145		$	-		$	822		$	7,986,421		$	523,927,140
Commercial Real Estate
Owner-Occupied Commercial Real Estate		259,166,743			239,771			-			-			662,566			260,069,080
Commercial Construction, Land Development, and Other Land		67,021,157			729,983			111,837			-			256,012			68,118,989
Other Non Owner-Occupied Commercial Real Estate		360,970,551			3,448,902			2,840,862			60,000			6,632,038			373,952,353
Direct Financing Leases		164,059,914			573,575			293,212			-			1,105,715			166,032,416
Residential Real Estate		154,303,644			2,528,287			475,343			25,673			1,299,545			158,632,492
Installment and Other Consumer		71,534,329			172,872			246,882			6,916			645,481			72,606,480
	$	1,592,673,090		$	8,016,535		$	3,968,136		$	93,411		$	18,587,778		$	1,623,338,950

As a percentage of total loan/lease portfolio		98.11	%		0.49	%		0.24	%		0.01	%		1.15	%		100.00	%

	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 December 31, 2014 and 2013 is presented as follows:

	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	$	822	$	7,986,421	$	235,926	$	8,223,169		40.91	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		662,566		-		662,566		3.30	%
Commercial Construction, Land Development, and Other Land		-		256,012		-		256,012		1.27	%
Other Non Owner-Occupied Commercial Real Estate		60,000		6,632,038		-		6,692,038		33.29	%
Direct Financing Leases		-		1,105,715		233,557		1,339,272		6.66	%
Residential Real Estate		25,673		1,299,545		489,183		1,814,401		9.02	%
Installment and Other Consumer		6,916		645,481		462,552		1,114,949		5.55	%
	$	93,411	$	18,587,778	$	1,421,218	$	20,102,407		100.00	%

*At December 31, 2014, nonaccrual loans/leases included $5,013,041 of troubled debt restructurings, including $1,227,537 in commercial and industrial loans, $3,214,468 in commercial real estate loans, $61,144 in direct financing leases, $506,283 in residential real estate loans, and $3,609 in installment loans.

	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.

Changes in the allowance for estimated losses on loans/leases by portfolio segment for the years ended December 31, 2014, 2013, and 2012 are presented as follows:

	Year Ended December 31, 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 charged to expense		4,213,738			(13,326	)		2,361,647			251,030			(6,089	)		6,807,000
Loans/leases charged off		(1,475,885	)		(2,756,083	)		(1,504,181	)		(130,900	)		(268,656	)		(6,135,705	)
Recoveries on loans/leases previously charged off		363,690			417,361			68,232			9,973			95,766			955,022
Balance, ending	$	8,750,317		$	8,353,386		$	3,442,915		$	1,525,952		$	1,001,795		$	23,074,365

	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

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

	2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Allowance for impaired loans/leases	$	3,300,199		$	1,170,020		$	356,996		$	151,663		$	265,795		$	5,244,673
Allowance for nonimpaired loans/leases		5,450,118			7,183,366			3,085,919			1,374,289			736,000			17,829,692
	$	8,750,317		$	8,353,386		$	3,442,915		$	1,525,952		$	1,001,795		$	23,074,365


Impaired loans/leases	$	7,279,709		$	7,433,383		$	1,339,272		$	1,788,729		$	1,165,548		$	19,006,641
Nonimpaired loans/leases		516,647,431			694,707,039			164,693,144			156,843,763			71,440,932			1,604,332,309
	$	523,927,140		$	702,140,422		$	166,032,416		$	158,632,492		$	72,606,480		$	1,623,338,950


Allowance as a percentage of impaired loans/leases		45.33	%		15.74	%		26.66	%		8.48	%		22.80	%		27.59	%
Allowance as a percentage of nonimpaired loans/leases		1.05	%		1.03	%		1.87	%		0.88	%		1.03	%		1.11	%
Total allowance as a percentage of total loans/leaess		1.67	%		1.19	%		2.07	%		0.96	%		1.38	%		1.42	%

	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 of nonimpaired loans/leases		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	%

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, 2014, 2013, and 2012 are presented as follows:

	2014
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	$	246,308	$	342,391	$	-	$	525,543	$	7,599	$	7,599
Commercial Real Estate
Owner-Occupied Commercial Real Estate		67,415		163,638		-		548,464		-		-
Commercial Construction, Land Development, and Other Land		31,936		143,136		-		1,656,401		-		-
Other Non Owner-Occupied Commercial Real Estate		491,717		491,717		-		4,925,681		13,283		13,283
Direct Financing Leases		561,414		561,414		-		867,657		31,911		31,911
Residential Real Estate		1,060,770		1,060,770		-		1,269,213		3,032		3,032
Installment and Other Consumer		671,319		671,319		-		898,764		-		-
	$	3,130,879	$	3,434,385	$	-	$	10,691,723	$	55,825	$	55,825

Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	7,033,401	$	8,190,495	$	3,300,199	$	3,159,985	$	14,837	$	14,837
Commercial Real Estate
Owner-Occupied Commercial Real Estate		620,896		620,896		4,462		316,743		-		-
Commercial Construction, Land Development, and Other Land		337,076		577,894		12,087		528,564		-		-
Other Non Owner-Occupied Commercial Real Estate		5,884,343		6,583,934		1,153,471		4,240,000		-		-
Direct Financing Leases		777,858		777,858		356,996		514,144		-		-
Residential Real Estate		727,959		763,537		151,663		538,678		2,967		2,967
Installment and Other Consumer		494,229		494,229		265,795		386,009		3,564		3,564
	$	15,875,762	$	18,008,843	$	5,244,673	$	9,684,123	$	21,368	$	21,368

Total Impaired Loans/Leases:
Commercial and Industrial	$	7,279,709	$	8,532,886	$	3,300,199	$	3,685,528	$	22,436	$	22,436
Commercial Real Estate
Owner-Occupied Commercial Real Estate		688,311		784,534		4,462		865,207		-		-
Commercial Construction, Land Development, and Other Land		369,012		721,030		12,087		2,184,965		-		-
Other Non Owner-Occupied Commercial Real Estate		6,376,060		7,075,651		1,153,471		9,165,681		13,283		13,283
Direct Financing Leases		1,339,272		1,339,272		356,996		1,381,801		31,911		31,911
Residential Real Estate		1,788,729		1,824,307		151,663		1,807,891		5,999		5,999
Installment and Other Consumer		1,165,548		1,165,548		265,795		1,284,773		3,564		3,564
	$	19,006,641	$	21,443,228	$	5,244,673	$	20,375,846	$	77,193	$	77,193

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

	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.

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. 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, 2014 and 2013:

	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)	$	491,883,568	$	245,237,462	$	65,691,737	$	354,581,419	$	1,157,394,186
Special Mention (Rating 6)		17,034,909		12,637,930		-		3,285,191		32,958,030
Substandard (Rating 7)		15,008,663		2,193,688		2,427,252		16,085,743		35,715,346
Doubtful (Rating 8)		-		-		-		-		-
	$	523,927,140	$	260,069,080	$	68,118,989	$	373,952,353	$	1,226,067,562

	2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total

Performing	$	164,693,144	$	156,818,091	$	71,491,531	$	393,002,766
Nonperforming		1,339,272		1,814,401		1,114,949		4,268,622
	$	166,032,416	$	158,632,492	$	72,606,480	$	397,271,388

	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

*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, 2014 and 2013, troubled debt restructurings totaled $6,434,259 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 years ended December 31, 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 restructuring. The specific allowance is as of December 31, 2014 and 2013, respectively. The following excludes any troubled debt restructurings that were restructured and paid off or charged off in the same year.

	2014
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		1	$	58,987	$	58,987	$	58,987
Direct Financing Leases		2		303,701		303,701		12,644
Residential Real Estate		1		159,680		159,680		25,360
Installment and Other Consumer		1		113,653		113,653		113,653
		5	$	636,021	$	636,021	$	210,644

CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	217,524
		3	$	889,154	$	889,154	$	217,524

CONCESSION - Foregiveness of principal
Commercial and Industrial		1		96,439		71,760		6,948
		1	$	96,439	$	71,760	$	6,948

CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	60,429
		1	$	427,849	$	427,849	$	60,429

TOTAL		10	$	2,049,463	$	2,024,784	$	495,545

Of the troubled debt restructurings reported above, five with post-modification recorded investments totaling $1,387,147 were on nonaccrual as of December 31, 2014.

For the year ended December 31, 2014, the Company had no troubled debt restructurings 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.

Not included in the table above, the Company had one troubled debt restructuring that was restructured and charged off in 2014, totaling $89,443.

	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, nine 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.

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, 2014, 2013, and 2012, is as follows:

	2014			2013			2012

Balance, beginning	$	39,192,966		$	20,502,058		$	19,155,542
Net increase due to change in related parties		1,040,278			17,124,702			2,784,143
Advances		13,284,475			6,213,381			6,754,970
Repayments		(11,048,608	)		(4,647,175	)		(8,192,597	)
Balance, ending	$	42,469,111		$	39,192,966		$	20,502,058

The Company’s loan portfolio includes a geographic concentration in the Midwest. Additionally, the loan portfolio included a concentration of loans in certain industries as of December 31, 2014 and 2013 as follows:

	2014					2013
Industry Name	Balance		Percentage of Total Loans/Leases			Balance		Percentage of Total Loans/Leases

Lessors of Non-Residential Buildings	$	256,436,213		16	%	$	237,049,149		16	%
Lessors of Residential Buildings		74,667,674		5	%		69,087,354		5	%
Bank Holding Companies		60,910,570		4	%		56,716,875		4	%

Concentrations within the leasing portfolio are monitored by equipment type – none of which represent a concentration within the total loans/leases portfolio. Within the leasing portfolio, diversification is spread among construction, manufacturing and the service industries.