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Note 3 - Loans/Leases Receivable
 6 Months Ended
Jun. 30, 2015
Receivables [Abstract]  
Financing Receivables [Text Block]

NOTE 3 – LOANS/LEASES RECEIVABLE


The composition of the loan/lease portfolio as of June 30, 2015 and December 31, 2014 is presented as follows:


   

As of June 30,

    

As of December 31,

  
   

2015

    

2014

  
                 

Commercial and industrial loans

   $ 606,825,793     $ 523,927,140  

Commercial real estate loans

                

Owner-occupied commercial real estate

     256,919,047       260,069,080  

Commercial construction, land development, and other land

     44,706,637       68,118,989  

Other non owner-occupied commercial real estate

     394,496,695       373,952,353  
      696,122,379       702,140,422  
                 

Direct financing leases *

     170,798,682       166,032,416  

Residential real estate loans **

     161,985,249       158,632,492  

Installment and other consumer loans

     72,447,887       72,606,480  
      1,708,179,990       1,623,338,950  

Plus deferred loan/lease origination costs, net of fees

     7,204,208       6,664,120  
      1,715,384,198       1,630,003,070  

Less allowance for estimated losses on loans/leases

     (26,146,000 )     (23,074,365 )
    $ 1,689,238,198     $ 1,606,928,705  
                 
                 

* Direct financing leases:

                

Net minimum lease payments to be received

   $ 192,953,276     $ 188,181,432  

Estimated unguaranteed residual values of leased assets

     1,314,459       1,488,342  

Unearned lease/residual income

     (23,469,053 )     (23,637,358 )
      170,798,682       166,032,416  

Plus deferred lease origination costs, net of fees

     6,738,128       6,639,244  
      177,536,810       172,671,660  

Less allowance for estimated losses on leases

     (3,352,303 )     (3,442,915 )
    $ 174,184,507     $ 169,228,745  

*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 or six months ended June 30, 2015 and 2014.


**Includes residential real estate loans held for sale totaling $1,548,200 and $553,000 as of June 30, 2015, and December 31, 2014, respectively.


The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2015 and December 31, 2014 is presented as follows:


   

As of June 30, 2015

  

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

   $ 599,328,696     $ 1,719,643     $ 85,926     $ 15,775     $ 5,675,753     $ 606,825,793  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     256,089,271       117,244       263,007       -       449,525       256,919,047  

Commercial Construction, Land Development, and Other Land

     43,480,693       -       912,686       -       313,258       44,706,637  

Other Non Owner-Occupied Commercial Real Estate

     390,294,885       222,062       -       -       3,979,748       394,496,695  

Direct Financing Leases

     168,508,788       1,057,914       300,368       -       931,612       170,798,682  

Residential Real Estate

     160,158,002       47,053       359,936       -       1,420,258       161,985,249  

Installment and Other Consumer

     71,263,200       368,129       14,634       29,708       772,216       72,447,887  
    $ 1,689,123,535     $ 3,532,045     $ 1,936,557     $ 45,483     $ 13,542,370     $ 1,708,179,990  
                                                 

As a percentage of total loan/lease portfolio

     98.89 %     0.21 %     0.11 %     0.00 %     0.79 %     100.00 %

   

As of December 31, 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 %

NPLs by classes of loans/leases as of June 30, 2015 and December 31, 2014 are presented as follows:


   

As of June 30, 2015

  

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

   $ 15,775     $ 5,675,753     $ 175,024     $ 5,866,552       39.49 %

Commercial Real Estate

                                        

Owner-Occupied Commercial Real Estate

     -       449,525       -       449,525       3.03 %

Commercial Construction, Land Development, and Other Land

     -       313,258       -       313,258       2.11 %

Other Non Owner-Occupied Commercial Real Estate

     -       3,979,748       -       3,979,748       26.79 %

Direct Financing Leases

     -       931,612       219,381       1,150,993       7.75 %

Residential Real Estate

     -       1,420,258       410,484       1,830,742       12.32 %

Installment and Other Consumer

     29,708       772,216       461,176       1,263,100       8.50 %
    $ 45,483     $ 13,542,370     $ 1,266,065     $ 14,853,918       100.00 %

*Nonaccrual loans/leases includes $3,923,158 of TDRs, including $1,360,265 in commercial and industrial loans, $2,009,695 in commercial real estate loans, $52,245 in direct financing leases, $497,344 in residential real estate loans, and $3,609 in installment loans.


   

As of December 31, 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 %

**Nonaccrual loans/leases includes $5,013,041 of TDRs, 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.


Changes in the allowance by portfolio segment for the three and six months ended June 30, 2015 and 2014, respectively, are presented as follows:


   

Three Months Ended June 30, 2015

  
                                                 
   

Commercial and Industrial

    

Commercial Real Estate

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

  
                                                 

Balance, beginning

   $ 9,093,650     $ 8,838,204     $ 3,310,973     $ 1,597,754     $ 1,042,693     $ 23,883,274  

Provisions charged to expense

     604,731       1,081,753       473,982       122,381       65,818       2,348,665  

Loans/leases charged off

     (45,337 )     -       (465,098 )     -       (25,255 )     (535,690 )

Recoveries on loans/leases previously charged off

     367,822       9,699       32,446       -       39,784       449,751  

Balance, ending

   $ 10,020,866     $ 9,929,656     $ 3,352,303     $ 1,720,135     $ 1,123,040     $ 26,146,000  

   

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  

   

Six Months Ended June 30, 2015

  
                                                 
   

Commercial and Industrial

    

Commercial Real Estate

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

  
                                                 

Balance, beginning

   $ 8,750,317     $ 8,353,386     $ 3,442,915     $ 1,525,952     $ 1,001,795     $ 23,074,365  

Provisions charged to expense

     993,372       1,917,647       877,434       194,183       76,485       4,059,121  

Loans/leases charged off

     (245,638 )     (351,076 )     (1,012,590 )     -       (34,049 )     (1,643,353 )

Recoveries on loans/leases previously charged off

     522,815       9,699       44,544       -       78,809       655,867  

Balance, ending

   $ 10,020,866     $ 9,929,656     $ 3,352,303     $ 1,720,135     $ 1,123,040     $ 26,146,000  

   

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  

The allowance by impairment evaluation and by portfolio segment as of June 30, 2015 and December 31, 2014 is presented as follows:


   

As of June 30, 2015

  
   

Commercial and Industrial

    

Commercial Real Estate

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

  
                                                 

Allowance for impaired loans/leases

   $ 2,720,597     $ 1,688,756     $ 297,033     $ 208,069     $ 301,077     $ 5,215,532  

Allowance for nonimpaired loans/leases

     7,300,269       8,240,900       3,055,270       1,512,066       821,963       20,930,468  
    $ 10,020,866     $ 9,929,656     $ 3,352,303     $ 1,720,135     $ 1,123,040     $ 26,146,000  
                                                 
                                                 

Impaired loans/leases

   $ 5,165,042     $ 4,593,306     $ 1,150,993     $ 1,830,741     $ 1,290,907     $ 14,030,989  

Nonimpaired loans/leases

     601,660,751       691,529,073       169,647,689       160,154,508       71,156,980       1,694,149,001  
    $ 606,825,793     $ 696,122,379     $ 170,798,682     $ 161,985,249     $ 72,447,887     $ 1,708,179,990  
                                                 
                                                 

Allowance as a percentage of impaired loans/leases

     52.67 %     36.77 %     25.81 %     11.37 %     23.32 %     37.17 %

Allowance as a percentage of nonimpaired loans/leases

     1.21 %     1.19 %     1.80 %     0.94 %     1.16 %     1.24 %
      1.65 %     1.43 %     1.96 %     1.06 %     1.55 %     1.52 %

   

As of December 31, 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 %
      1.67 %     1.19 %     2.07 %     0.96 %     1.38 %     1.42 %

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, 2015 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

   $ 308,762     $ 359,552     $ -     $ 466,013     $ 3,709     $ 3,709  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     472,637       568,688       -       585,796       -       -  

Commercial Construction, Land Development, and Other Land

     216,690       339,890       -       225,204       -       -  

Other Non Owner-Occupied Commercial Real Estate

     2,110,976       2,110,976       -       2,988,012       -       -  

Direct Financing Leases

     523,106       523,106       -       755,041       3,817       3,817  

Residential Real Estate

     886,237       921,814       -       961,697       483       483  

Installment and Other Consumer

     685,166       685,166       -       686,196       475       475  
    $ 5,203,574     $ 5,509,192     $ -     $ 6,667,959     $ 8,484     $ 8,484  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                                

Commercial and Industrial

   $ 4,856,280     $ 4,860,119     $ 2,720,597     $ 4,910,839     $ -     $ -  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     -       -       -       -       -       -  

Commercial Construction, Land Development, and Other Land

     139,250       368,068       35,000       139,250       -       -  

Other Non Owner-Occupied Commercial Real Estate

     1,653,753       2,100,389       1,653,756       1,661,256       -       -  

Direct Financing Leases

     627,887       627,884       297,033       494,666       -       -  

Residential Real Estate

     944,504       944,504       208,069       723,402       4,797       4,797  

Installment and Other Consumer

     605,741       605,741       301,077       578,337       4,512       4,512  
    $ 8,827,415     $ 9,506,705     $ 5,215,532     $ 8,507,750     $ 9,309     $ 9,309  
                                                 

Total Impaired Loans/Leases:

                                                

Commercial and Industrial

   $ 5,165,042     $ 5,219,671     $ 2,720,597     $ 5,376,852     $ 3,709     $ 3,709  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     472,637       568,688       -       585,796       -       -  

Commercial Construction, Land Development, and Other Land

     355,940       707,958       35,000       364,454       -       -  

Other Non Owner-Occupied Commercial Real Estate

     3,764,729       4,211,365       1,653,756       4,649,268       -       -  

Direct Financing Leases

     1,150,993       1,150,990       297,033       1,249,707       3,817       3,817  

Residential Real Estate

     1,830,741       1,866,318       208,069       1,685,099       5,280       5,280  

Installment and Other Consumer

     1,290,907       1,290,907       301,077       1,264,533       4,987       4,987  
    $ 14,030,989     $ 15,015,897     $ 5,215,532     $ 15,175,709     $ 17,793     $ 17,793  

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, 2015 and 2014, respectively, are presented as follows:


   

Three Months Ended June 30, 2015

    

Three Months Ended June 30, 2014

  

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

   $ 320,187     $ 1,860     $ 1,860     $ 589,889     $ 11     $ 11  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     550,374       -       -       383,861       -       -  

Commercial Construction, Land Development, and Other Land

     222,926       -       -       1,642,205       -       -  

Other Non Owner-Occupied Commercial Real Estate

     2,474,448       -       -       2,222,582       -       -  

Direct Financing Leases

     582,316       1,878       1,878        700,607       -       -  

Residential Real Estate

     969,580       -       -       1,014,286       720       720  

Installment and Other Consumer

     705,750       475       475       465,820       890       890  
    $ 5,825,581     $ 4,213     $ 4,213     $ 7,019,250     $ 1,621     $ 1,621  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                                

Commercial and Industrial

   $ 4,912,917     $ -     $ -     $ 989,979     $ -     $ -  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     -       -       -       334,236       -       -  

Commercial Construction, Land Development, and Other Land

     139,250       -       -       602,498       -       -  

Other Non Owner-Occupied Commercial Real Estate

     1,657,506       -       -       6,057,384       -       -  

Direct Financing Leases

     561,840       -       -       855,628       -       -  

Residential Real Estate

     869,073       1,967       1,967       779,104       4       4  

Installment and Other Consumer

     608,277       2,252       2,252       817,994       -       -  
    $ 8,748,863     $ 4,219     $ 4,219     $ 10,436,823     $ 4     $ 4  
                                                 

Total Impaired Loans/Leases:

                                                

Commercial and Industrial

   $ 5,233,104     $ 1,860     $ 1,860     $ 1,579,868     $ 11     $ 11  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     550,374       -       -       718,097       -       -  

Commercial Construction, Land Development, and Other Land

     362,176       -       -       2,244,703       -       -  

Other Non Owner-Occupied Commercial Real Estate

     4,131,954       -       -       8,279,966       -       -  

Direct Financing Leases

     1,144,156       1,878       1,878        1,556,235       -       -  

Residential Real Estate

     1,838,653       1,967       1,967       1,793,390       724       724  

Installment and Other Consumer

     1,314,027       2,727       2,727       1,283,814       890       890  
    $ 14,574,444     $ 8,432     $ 8,432     $ 17,456,073     $ 1,625     $ 1,625  

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, 2014 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

   $ 246,308     $ 342,391     $ -  

Commercial Real Estate

                        

Owner-Occupied Commercial Real Estate

     67,415       163,638       -  

Commercial Construction, Land Development, and Other Land

     31,936       143,136       -  

Other Non Owner-Occupied Commercial Real Estate

     491,717       491,717       -  

Direct Financing Leases

     561,414       561,414       -  

Residential Real Estate

     1,060,770       1,060,770       -  

Installment and Other Consumer

     671,319       671,319       -  
    $ 3,130,879     $ 3,434,385     $ -  
                         

Impaired Loans/Leases with Specific Allowance Recorded:

                        

Commercial and Industrial

   $ 7,033,401     $ 8,190,495     $ 3,300,199  

Commercial Real Estate

                        

Owner-Occupied Commercial Real Estate

     620,896       620,896       4,462  

Commercial Construction, Land Development, and Other Land

     337,076       577,894       12,087  

Other Non Owner-Occupied Commercial Real Estate

     5,884,343       6,583,934       1,153,471  

Direct Financing Leases

     777,858       777,858       356,996  

Residential Real Estate

     727,959       763,537       151,663  

Installment and Other Consumer

     494,229       494,229       265,795  
    $ 15,875,762     $ 18,008,843     $ 5,244,673  
                         

Total Impaired Loans/Leases:

                        

Commercial and Industrial

   $ 7,279,709     $ 8,532,886     $ 3,300,199  

Commercial Real Estate

                        

Owner-Occupied Commercial Real Estate

     688,311       784,534       4,462  

Commercial Construction, Land Development, and Other Land

     369,012       721,030       12,087  

Other Non Owner-Occupied Commercial Real Estate

     6,376,060       7,075,651       1,153,471  

Direct Financing Leases

     1,339,272       1,339,272       356,996  

Residential Real Estate

     1,788,729       1,824,307       151,663  

Installment and Other Consumer

     1,165,548       1,165,548       265,795  
    $ 19,006,641     $ 21,443,228     $ 5,244,673  

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, 2015 and December 31, 2014:


   

As of June 30, 2015

  
           

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

    

As a % of Total

  
                                                 

Pass (Ratings 1 through 5)

   $ 576,067,054     $ 245,725,433     $ 41,653,406     $ 379,720,588     $ 1,243,166,481       95.42 %

Special Mention (Rating 6)

     18,480,974       9,396,349       1,780,000       5,436,144       35,093,467       2.69 %

Substandard (Rating 7)

     12,277,765       1,797,265       1,273,231       9,339,963       24,688,224       1.89 %

Doubtful (Rating 8)

     -       -       -       -       -       -  
    $ 606,825,793     $ 256,919,047     $ 44,706,637     $ 394,496,695     $ 1,302,948,172       100.00 %

   

As of June 30, 2015

  

Delinquency Status *

  

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

    

As a % of Total

  
                                         

Performing

   $ 169,647,689     $ 160,154,508     $ 71,184,787     $ 400,986,984       98.95 %

Nonperforming

     1,150,993       1,830,741       1,263,100       4,244,834       1.05 %
    $ 170,798,682     $ 161,985,249     $ 72,447,887     $ 405,231,818       100.00 %

   

As of December 31, 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

    

As a % of Total

  
                                                 

Pass (Ratings 1 through 5)

   $ 491,883,568     $ 245,237,462     $ 65,691,737     $ 354,581,419     $ 1,157,394,186       94.40 %

Special Mention (Rating 6)

     17,034,909       12,637,930       -       3,285,191       32,958,030       2.69 %

Substandard (Rating 7)

     15,008,663       2,193,688       2,427,252       16,085,743       35,715,346       2.91 %

Doubtful (Rating 8)

     -       -       -       -       -       -  
    $ 523,927,140     $ 260,069,080     $ 68,118,989     $ 373,952,353     $ 1,226,067,562       100.00 %

   

As of December 31, 2014

  

Delinquency Status *

  

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

    

As a % of Total

  
                                         

Performing

   $ 164,693,144     $ 156,818,091     $ 71,491,531     $ 393,002,766       98.93 %

Nonperforming

     1,339,272       1,814,401       1,114,949       4,268,622       1.07 %
    $ 166,032,416     $ 158,632,492     $ 72,606,480     $ 397,271,388       100.00 %

*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 TDRs.


As of June 30, 2015 and December 31, 2014, TDRs totaled $5,189,223 and $6,434,259, respectively.


For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the three and six months ended June 30, 2014. There were no TDRs that were restructured during the three and six months ended June 30, 2015. 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

  

Classes of Loans/Leases

  

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

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  

   

For the six months ended June 30, 2014

  

Classes of Loans/Leases

  

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  

Direct Financing Leases

     1     $ 89,443     $ 89,443     $ -  
      4     $ 978,597     $ 978,597     $ 239,783  
                                 

CONCESSION - Extension of Maturity

                                

Direct Financing Leases

     1     $ 70,144     $ 70,144     $ 24,246  
      1     $ 70,144     $ 70,144     $ 24,246  
                                 

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  

Of the TDRs reported above, four with post-modification recorded investments totaling $168,751 were on nonaccrual as of June 30, 2014.


For the three and six months ended June 30, 2015 and 2014, none of the Company’s TDRs 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.