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

NOTE 3 – LOANS/LEASES RECEIVABLE


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


   

As of September 30,

    

As of December 31,

  
   

2015

    

2014

  
                 

Commercial and industrial loans

   $ 647,398,566     $ 523,927,140  

Commercial real estate loans

                

Owner-occupied commercial real estate

     247,779,183       260,069,080  

Commercial construction, land development, and other land

     45,011,361       68,118,989  

Other non owner-occupied commercial real estate

     399,778,590       373,952,353  
      692,569,134       702,140,422  
                 

Direct financing leases *

     173,304,223       166,032,416  

Residential real estate loans **

     165,060,663       158,632,492  

Installment and other consumer loans

     69,862,991       72,606,480  
      1,748,195,577       1,623,338,950  

Plus deferred loan/lease origination costs, net of fees

     7,476,792       6,664,120  
      1,755,672,369       1,630,003,070  

Less allowance for estimated losses on loans/leases

     (25,534,344 )     (23,074,365 )
    $ 1,730,138,025     $ 1,606,928,705  
                 
                 

* Direct financing leases:

                

Net minimum lease payments to be received

   $ 195,626,557     $ 188,181,432  

Estimated unguaranteed residual values of leased assets

     1,165,706       1,488,342  

Unearned lease/residual income

     (23,488,040 )     (23,637,358 )
      173,304,223       166,032,416  

Plus deferred lease origination costs, net of fees

     6,710,311       6,639,244  
      180,014,534       172,671,660  

Less allowance for estimated losses on leases

     (3,248,633 )     (3,442,915 )
    $ 176,765,901     $ 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, which is combined with 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 nine months ended September 30, 2015 and 2014.


**Includes residential real estate loans held for sale totaling $533,225 and $553,000 as of September 30, 2015, and December 31, 2014, respectively.


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


   

As of September 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

   $ 637,545,096     $ 4,169,089     $ 148,932     $ -     $ 5,535,449     $ 647,398,566  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     246,787,360       80,056       -       -       911,767       247,779,183  

Commercial Construction, Land Development, and Other Land

     44,788,952       -       -       -       222,409       45,011,361  

Other Non Owner-Occupied Commercial Real Estate

     397,650,373       163,163       349,588       -       1,615,466       399,778,590  

Direct Financing Leases

     171,036,424       892,496       279,815       -       1,095,488       173,304,223  

Residential Real Estate

     163,433,860       46,638       46,626       -       1,533,539       165,060,663  

Installment and Other Consumer

     69,333,416       121,009       51,505       2,411       354,650       69,862,991  
    $ 1,730,575,481     $ 5,472,451     $ 876,466     $ 2,411     $ 11,268,768     $ 1,748,195,577  
                                                 

As a percentage of total loan/lease portfolio

     99.00 %     0.31 %     0.05 %     0.00 %     0.64 %     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 September 30, 2015 and December 31, 2014 are presented as follows: 


   

As of September 30, 2015

  

Classes of Loans/Leases

  

Accruing Past Due 90 Days or More

    

Nonaccrual Loans/Leases *

    

Accruing

TDRs

    

Total NPLs

    

Percentage of Total NPLs

  
                                         

Commercial and Industrial

   $ -     $ 5,535,449     $ 174,071     $ 5,709,520       46.37 %

Commercial Real Estate

                                        

Owner-Occupied Commercial Real Estate

     -       911,767       -       911,767       7.41 %

Commercial Construction, Land Development, and Other Land

     -       222,409       -       222,409       1.81 %

Other Non Owner-Occupied Commercial Real Estate

     -       1,615,466       -       1,615,466       13.12 %

Direct Financing Leases

     -       1,095,488       -       1,095,488       8.90 %

Residential Real Estate

     -       1,533,539       406,712       1,940,251       15.76 %

Installment and Other Consumer

     2,411       354,650       459,129       816,190       6.63 %
    $ 2,411     $ 11,268,768     $ 1,039,912     $ 12,311,091       100.00 %

*Nonaccrual loans/leases includes $1,865,749 of TDRs, including $1,260,992 in commercial and industrial loans, $335,409 in commercial real estate loans, $47,846 in direct financing leases, $207,299 in residential real estate loans, and $14,203 in installment loans.  


   

As of December 31, 2014

  

Classes of Loans/Leases

  

Accruing Past Due 90 Days or More

    

Nonaccrual Loans/Leases **

    

Accruing

TDRs

    

Total NPLs

    

Percentage of Total NPLs

  
                                         

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 nine months ended September 30, 2015 and 2014, respectively, are presented as follows: 


   

Three Months Ended September 30, 2015

  
                                                 
   

Commercial and Industrial

    

Commercial Real Estate

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

  
                                                 

Balance, beginning

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

Provisions charged to expense

     520,058       573,119       361,071       130,742       50,273       1,635,263  

Loans/leases charged off

     (145,665 )     (1,813,973 )     (483,420 )     (25,928 )     (6,837 )     (2,475,823 )

Recoveries on loans/leases previously charged off

     136,909       19,913       18,679       4,107       49,296       228,904  

Balance, ending

   $ 10,532,168     $ 8,708,715     $ 3,248,633     $ 1,829,056     $ 1,215,772     $ 25,534,344  

   

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  

   

Nine Months Ended September 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

     1,513,430       2,490,766       1,238,505       324,925       126,758       5,694,384  

Loans/leases charged off

     (391,303 )     (2,165,049 )     (1,496,010 )     (25,928 )     (40,886 )     (4,119,176 )

Recoveries on loans/leases previously charged off

     659,724       29,612       63,223       4,107       128,105       884,771  

Balance, ending

   $ 10,532,168     $ 8,708,715     $ 3,248,633     $ 1,829,056     $ 1,215,772     $ 25,534,344  

   

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  

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


   

As of September 30, 2015

  
   

Commercial and Industrial

    

Commercial Real Estate

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

  
                                                 

Allowance for impaired loans/leases

   $ 2,649,170     $ 154,086     $ 153,333     $ 250,084     $ 345,457     $ 3,552,130  

Allowance for nonimpaired loans/leases

     7,882,998       8,554,629       3,095,300       1,578,972       870,315       21,982,214  
    $ 10,532,168     $ 8,708,715     $ 3,248,633     $ 1,829,056     $ 1,215,772     $ 25,534,344  
                                                 
                                                 

Impaired loans/leases

   $ 5,036,852     $ 2,739,644     $ 1,095,486     $ 1,940,250     $ 813,778     $ 11,626,010  

Nonimpaired loans/leases

     642,361,714       689,829,490       172,208,737       163,120,413       69,049,213       1,736,569,567  
    $ 647,398,566     $ 692,569,134     $ 173,304,223     $ 165,060,663     $ 69,862,991     $ 1,748,195,577  
                                                 
                                                 

Allowance as a percentage of impaired loans/leases

     52.60 %     5.62 %     14.00 %     12.89 %     42.45 %     30.55 %

Allowance as a percentage of nonimpaired loans/leases

     1.23 %     1.24 %     1.80 %     0.97 %     1.26 %     1.27 %
      1.63 %     1.26 %     1.87 %     1.11 %     1.74 %     1.45 %

   

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 nine months ended September 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

   $ 360,420     $ 470,197     $ -     $ 370,376     $ 5,579     $ 5,579  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     431,065       524,839       -       510,604       -       -  

Commercial Construction, Land Development, and Other Land

     -       -       -       17,291       -       -  

Other Non Owner-Occupied Commercial Real Estate

     1,973,169       1,973,169       -       3,412,360       -       -  

Direct Financing Leases

     579,219       579,219       -       797,396       4,142       4,142  

Residential Real Estate

     661,490       697,067       -       1,036,845       1,845       1,845  

Installment and Other Consumer

     12,666       12,666       -       448,095       4,387       4,387  
    $ 4,018,029     $ 4,257,157     $ -     $ 6,592,967     $ 15,953     $ 15,953  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                                

Commercial and Industrial

   $ 4,676,432     $ 4,681,930     $ 2,649,170     $ 4,792,439     $ -     $ -  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     -       -       -       -       -       -  

Commercial Construction, Land Development, and Other Land

     335,410       576,228       154,086       335,963       -       -  

Other Non Owner-Occupied Commercial Real Estate

     -       -       -       -       -       -  

Direct Financing Leases

     516,267       516,267       153,333       379,841       -       -  

Residential Real Estate

     1,278,760       1,278,760       250,084       835,674       6,778       6,778  

Installment and Other Consumer

     801,112       801,112       345,457       699,182       5,903       5,903  
    $ 7,607,981     $ 7,854,297     $ 3,552,130     $ 7,043,099     $ 12,681     $ 12,681  
                                                 

Total Impaired Loans/Leases:

                                                

Commercial and Industrial

   $ 5,036,852     $ 5,152,127     $ 2,649,170     $ 5,162,815     $ 5,579     $ 5,579  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     431,065       524,839       -       510,604       -       -  

Commercial Construction, Land Development, and Other Land

     335,410       576,228       154,086       353,254       -       -  

Other Non Owner-Occupied Commercial Real Estate

     1,973,169       1,973,169       -       3,412,360       -       -  

Direct Financing Leases

     1,095,486       1,095,486       153,333       1,177,237       4,142       4,142  

Residential Real Estate

     1,940,250       1,975,827       250,084       1,872,519       8,623       8,623  

Installment and Other Consumer

     813,778       813,778       345,457       1,147,277       10,290       10,290  
    $ 11,626,010     $ 12,111,454     $ 3,552,130     $ 13,636,066     $ 28,634     $ 28,634  

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


   

Three Months Ended September 30, 2015

    

Three Months Ended September 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

   $ 365,798     $ 1,870     $ 1,870     $ 621,836     $ 17,855     $ 17,855  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     451,851       -       -       751,191       -       -  

Commercial Construction, Land Development, and Other Land

     9,968       -       -       1,397,733       -       -  

Other Non Owner-Occupied Commercial Real Estate

     2,868,950       -       -       4,051,261       -       -  

Direct Financing Leases

     634,378       325       325       1,152,456       -       -  

Residential Real Estate

     900,938       1,362       1,362       1,186,197       704       704  

Installment and Other Consumer

     328,669       3,912       3,912       494,498       -       -  
    $ 5,560,552     $ 7,469     $ 7,469     $ 9,655,172     $ 18,559     $ 18,559  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                                

Commercial and Industrial

   $ 4,735,149     $ -     $ -     $ 3,454,429     $ -     $ -  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     -       -       -       439,701       -       -  

Commercial Construction, Land Development, and Other Land

     335,707       -       -       796,194       -       -  

Other Non Owner-Occupied Commercial Real Estate

     -       -       -       6,034,473       -       -  

Direct Financing Leases

     488,860       -       -       578,317       -       -  

Residential Real Estate

     984,558       1,981       1,981       564,278       1,296       1,296  

Installment and Other Consumer

     723,674       1,391       1,391       826,092       890       890  
    $ 7,267,948     $ 3,372     $ 3,372     $ 12,693,484     $ 2,186     $ 2,186  
                                                 

Total Impaired Loans/Leases:

                                                

Commercial and Industrial

   $ 5,100,947     $ 1,870     $ 1,870     $ 4,076,265     $ 17,855     $ 17,855  

Commercial Real Estate

                                                

Owner-Occupied Commercial Real Estate

     451,851       -       -       1,190,892       -       -  

Commercial Construction, Land Development, and Other Land

     345,675       -       -       2,193,927       -       -  

Other Non Owner-Occupied Commercial Real Estate

     2,868,950       -       -       10,085,734       -       -  

Direct Financing Leases

     1,123,238       325       325       1,730,773       -       -  

Residential Real Estate

     1,885,496       3,343       3,343       1,750,475       2,000       2,000  

Installment and Other Consumer

     1,052,343       5,303       5,303       1,320,590       890       890  
    $ 12,828,500     $ 10,841     $ 10,841     $ 22,348,656     $ 20,745     $ 20,745  

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 consists of 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, 2015 and December 31, 2014:


   

As of September 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)

   $ 619,562,207     $ 237,616,448     $ 42,172,844     $ 386,936,606     $ 1,286,288,105       96.00 %

Special Mention (Rating 6)

     15,739,256       8,064,486       1,780,000       4,878,807       30,462,549       2.27 %

Substandard (Rating 7)

     12,097,103       2,098,249       1,058,517       7,963,177       23,217,046       1.73 %

Doubtful (Rating 8)

     -       -       -       -       -       -  
    $ 647,398,566     $ 247,779,183     $ 45,011,361     $ 399,778,590     $ 1,339,967,700       100.00 %
                                                 
                                                 

   

As of September 30, 2015

          

Delinquency Status *

  

Direct Financing Leases

    

Residential Real Estate

    

Installment and Other Consumer

    

Total

    

As a % of Total

          
                                                 

Performing

   $ 172,208,735     $ 163,120,412     $ 69,046,801     $ 404,375,948       99.06 %        

Nonperforming

     1,095,488       1,940,251       816,190       3,851,929       0.94 %        
    $ 173,304,223     $ 165,060,663     $ 69,862,991     $ 408,227,877       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 September 30, 2015 and December 31, 2014, TDRs totaled $2,905,661 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 nine months ended September 30, 2014. There was one TDR that was restructured during the three and nine months ended September 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 September 30, 2015

    

For the three months ended September 30, 2014

  

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

                                                                

Installment and Other Consumer

     1     $ 14,203     $ 14,203     $ -       -     $ -     $ -     $ -  
      1     $ 14,203     $ 14,203     $ -       -     $ -     $ -     $ -  
                                                                 

CONCESSION - Other

                                                                

Commercial and Industrial

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

TOTAL

     1     $ 14,203     $ 14,203       -       1     $ 96,439     $ 71,760       7,125  

   

For the nine months ended September 30, 2015

    

For the nine months ended September 30, 2014

  

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  

Direct Financing Leases

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

CONCESSION - Interest rate adjusted below market

                                                                

Installment and Other Consumer

     1     $ 14,203     $ 14,203     $ -       -     $ -     $ -     $ -  
      1     $ 14,203     $ 14,203     $ -       -     $ -     $ -     $ -  
                                                                 

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  

Residential Real Estate

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

TOTAL

     1     $ 14,203     $ 14,203       -       7     $ 1,573,029     $ 1,548,350     $ 384,603  

Of the TDRs reported above, one with a post-modification recorded investment of $14,203 was on nonaccrual as of September 30, 2015, and three with post-modification recorded investments totaling $75,767 were on nonaccrual as of September 30, 2014.


For the three and nine months ended September 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.