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Note 4 - Loans/Leases Receivable
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Financing Receivables [Text Block]

Note 4.     Loans/Leases Receivable


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


   

2015

    

2014

  
                 

C&I loans

   $ 648,159,892     $ 523,927,140  

CRE loans

                

Owner-occupied CRE

     252,523,164       260,069,080  

Commercial construction, land development, and other land

     49,083,844       68,118,989  

Other non owner-occupied CRE

     422,761,757       373,952,353  
      724,368,765       702,140,422  
                 

Direct financing leases *

     173,655,605       166,032,416  

Residential real estate loans **

     170,432,530       158,632,492  

Installment and other consumer loans

     73,669,493       72,606,480  
      1,790,286,285       1,623,338,950  

Plus deferred loan/lease orgination costs, net of fees

     7,736,390       6,664,120  
      1,798,022,675       1,630,003,070  

Less allowance

     (26,140,906 )     (23,074,365 )
    $ 1,771,881,769     $ 1,606,928,705  
                 

* Direct financing leases:

                

Net minimum lease payments to be received

   $ 195,476,230     $ 188,181,432  

Estimated unguaranteed residual values of leased assets

     1,165,706       1,488,342  

Unearned lease/residual income

     (22,986,331 )     (23,637,358 )
      173,655,605       166,032,416  

Plus deferred lease origination costs, net of fees

     6,594,582       6,639,244  
      180,250,187       172,671,660  

Less allowance

     (3,395,088 )     (3,359,400 )
    $ 176,855,099     $ 169,312,260  

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, 2015, 2014, and 2013. At December 31, 2015, the Company had 16 leases remaining with residual values totaling $1,165,706 that were not protected with a lease end options rider. 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. 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 $565,850 and $553,000 as of December 31, 2015 and 2014, respectively.


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


   

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

  
                                                 

C&I

   $ 640,725,241     $ 1,636,860     $ 5,816     $ -     $ 5,791,975     $ 648,159,892  

CRE

                                                

Owner-Occupied CRE

     251,612,752       182,949       -       -       727,463       252,523,164  

Commercial Construction, Land Development, and Other Land

     48,890,040       -       -       -       193,804       49,083,844  

Other Non Owner-Occupied CRE

     420,819,874       614,732       219,383       -       1,107,768       422,761,757  

Direct Financing Leases

     170,021,289       1,490,818       439,314       2,843       1,701,341       173,655,605  

Residential Real Estate

     166,415,118       2,800,589       200,080       -       1,016,743       170,432,530  

Installment and Other Consumer

     73,134,197       412,052       14,127       -       109,117       73,669,493  
    $ 1,771,618,511     $ 7,138,000     $ 878,720     $ 2,843     $ 10,648,211     $ 1,790,286,285  
                                                 

As a percentage of total loan/lease portfolio

     98.96 %     0.40 %     0.05 %     0.00 %     0.59 %     100.00 %

   

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

  
                                                 

C&I

   $ 515,616,752     $ 323,145     $ -     $ 822     $ 7,986,421     $ 523,927,140  

CRE

                                                

Owner-Occupied CRE

     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 CRE

     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 %

Nonperforming loans/leases by classes of loans/leases as of December 31, 2015 and 2014 is presented as follows:


   

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

  
                                         

C&I

   $ -     $ 5,791,975     $ 173,087     $ 5,965,062       50.96 %

CRE

                                        

Owner-Occupied CRE

     -       727,463       -       727,463       6.22 %

Commercial Construction, Land Development, and Other Land

     -       193,804       -       193,804       1.66 %

Other Non Owner-Occupied CRE

     -       1,107,768       -       1,107,768       9.46 %

Direct Financing Leases

     2,843       1,701,341       -       1,704,184       14.56 %

Residential Real Estate

     -       1,016,743       402,044       1,418,787       12.12 %

Installment and Other Consumer

     -       109,117       478,625       587,742       5.02 %
    $ 2,843     $ 10,648,211     $ 1,053,756     $ 11,704,810       100.00 %

*At December 31, 2015, nonaccrual loans/leases included $1,533,657 of troubled debt restructurings, including $1,164,423 in C&I loans, $193,804 in CRE loans, $42,098 in direct financing leases, $119,305 in residential real estate loans, and $14,027 in installment loans.


   

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

  
                                         

C&I

   $ 822     $ 7,986,421     $ 235,926     $ 8,223,169       40.91 %

CRE

                                        

Owner-Occupied CRE

     -       662,566       -       662,566       3.30 %

Commercial Construction, Land Development, and Other Land

     -       256,012       -       256,012       1.27 %

Other Non Owner-Occupied CRE

     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 C&I loans, $3,214,468 in CRE 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 years ended December 31, 2015, 2014, and 2013 are presented as follows:


   

Year Ended December 31, 2015

  
                                                 
   

C&I

    

CRE

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and

Other Consumer

    

Total

  
                                                 

Balance, beginning

   $ 8,833,832     $ 8,353,386     $ 3,359,400     $ 1,525,952     $ 1,001,795     $ 23,074,365  

Provisions charged to expense

     1,470,526       3,080,611       1,688,031       430,087       201,645       6,870,900  

Loans/leases charged off

     (453,782 )     (2,560,749 )     (1,788,772 )     (169,996 )     (251,838 )     (5,225,137 )

Recoveries on loans/leases previously charged off

     633,504       501,869       136,429       4,107       144,869       1,420,778  

Balance, ending

   $ 10,484,080     $ 9,375,117     $ 3,395,088     $ 1,790,150     $ 1,096,471     $ 26,140,906  

   

Year Ended December 31, 2014

  
                                                 
   

C&I

    

CRE

    

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

     4,297,253       (13,326 )     2,278,132       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

   $ 8,833,832     $ 8,353,386     $ 3,359,400     $ 1,525,952     $ 1,001,795     $ 23,074,365  

   

Year Ended December 31, 2013

  
                                                 
   

C&I

    

CRE

    

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  

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


   

2015

  
   

C&I

    

CRE

    

Direct Financing Leases

    

Residential Real Estate

    

Installment and

Other Consumer

    

Total

  
                                                 

Allowance for impaired loans/leases

   $ 2,592,270     $ 76,934     $ 306,193     $ 185,801     $ 143,089     $ 3,304,287  

Allowance for nonimpaired loans/leases

     7,891,810       9,298,183       3,088,895       1,604,349       953,382       22,836,619  
    $ 10,484,080     $ 9,375,117     $ 3,395,088     $ 1,790,150     $ 1,096,471     $ 26,140,906  
                                                 
                                                 

Impaired loans/leases

   $ 5,286,482     $ 2,029,035     $ 1,701,341     $ 1,418,787     $ 587,742     $ 11,023,387  

Nonimpaired loans/leases

     642,873,410       722,339,730       171,954,264       169,013,743       73,081,751       1,779,262,898  
    $ 648,159,892     $ 724,368,765     $ 173,655,605     $ 170,432,530     $ 73,669,493     $ 1,790,286,285  
                                                 
                                                 

Allowance as a percentage of impaired loans/leases

     49.04 %     3.79 %     18.00 %     13.10 %     24.35 %     29.98 %

Allowance as a percentage of nonimpaired loans/leases

     1.23 %     1.29 %     1.80 %     0.95 %     1.30 %     1.28 %

Total allowance as a percentage of total loans/leases

     1.62 %     1.29 %     1.96 %     1.05 %     1.49 %     1.46 %

   

2014

  
   

C&I

    

CRE

    

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

     5,533,633       7,183,366       3,002,404       1,374,289       736,000       17,829,692  
    $ 8,833,832     $ 8,353,386     $ 3,359,400     $ 1,525,952     $ 1,001,795     $ 23,074,365  
                                                 
                                                 

Impaired loans/leases

   $ 7,279,709     $ 7,433,383     $ 1,339,272     $ 1,788,728     $ 1,108,033     $ 18,949,125  

Nonimpaired loans/leases

     516,647,431       694,707,039       164,693,144       156,843,764       71,498,447       1,604,389,825  
    $ 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 %     23.99 %     27.68 %

Allowance as a percentage of nonimpaired loans/leases

     1.07 %     1.03 %     1.82 %     0.88 %     1.03 %     1.11 %

Total allowance as a percentage of total loans/leases

     1.69 %     1.19 %     2.02 %     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 years ended December 31, 2015, 2014, and 2013 are presented as follows:


   

2015

  

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:

                                                

C&I

   $ 234,636     $ 346,072     $ -     $ 380,495     $ 7,436     $ 7,436  

CRE

                                                

Owner-Occupied CRE

     256,761       350,535       -       447,144       -       -  

Commercial Construction, Land Development, and Other Land

     -       228,818       -       117,406       -       -  

Other Non Owner-Occupied CRE

     1,578,470       1,578,470       -       2,953,888       -       -  

Direct Financing Leases

     871,884       871,884       -       892,281       4,142       4,142  

Residential Real Estate

     613,486       649,064       -       1,047,001       3,929       3,929  

Installment and Other Consumer

     377,304       377,304       -       817,854       9,563       9,563  
    $ 3,932,541     $ 4,402,147     $ -     $ 6,656,069     $ 25,070     $ 25,070  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                                

C&I

   $ 5,051,846     $ 5,055,685     $ 2,592,270     $ 4,811,046     $ -     $ -  

CRE

                                                

Owner-Occupied CRE

     -       -       -       -       -       -  

Commercial Construction, Land Development, and Other Land

     193,804       205,804       76,934       195,986       -       -  

Other Non Owner-Occupied CRE

     -       -       -       -       -       -  

Direct Financing Leases

     829,457       829,457       306,193       474,458       -       -  

Residential Real Estate

     805,301       805,301       185,801       712,085       7,913       7,913  

Installment and Other Consumer

     210,438       210,438       143,089       189,539       5,693       5,693  
    $ 7,090,846     $ 7,106,685     $ 3,304,287     $ 6,383,114     $ 13,606     $ 13,606  
                                                 

Total Impaired Loans/Leases:

                                                

C&I

   $ 5,286,482     $ 5,401,757     $ 2,592,270     $ 5,191,541     $ 7,436     $ 7,436  

CRE

                                                

Owner-Occupied CRE

     256,761       350,535       -       447,144       -       -  

Commercial Construction, Land Development, and Other Land

     193,804       434,622       76,934       313,392       -       -  

Other Non Owner-Occupied CRE

     1,578,470       1,578,470       -       2,953,888       -       -  

Direct Financing Leases

     1,701,341       1,701,341       306,193       1,366,739       4,142       4,142  

Residential Real Estate

     1,418,787       1,454,365       185,801       1,759,086       11,842       11,842  

Installment and Other Consumer

     587,742       587,742       143,089       1,007,393       15,256       15,256  
    $ 11,023,387     $ 11,508,832     $ 3,304,287     $ 13,039,183     $ 38,676     $ 38,676  

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


   

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:

                                                

C&I

   $ 246,308     $ 342,391     $ -     $ 525,543     $ 7,599     $ 7,599  

CRE

                                                

Owner-Occupied CRE

     67,415       163,638       -       548,464       -       -  

Commercial Construction, Land Development, and Other Land

     31,936       143,136       -       1,656,401       -       -  

Other Non Owner-Occupied CRE

     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

     613,804       813,804       -       893,971       -       -  
    $ 3,073,364     $ 3,576,870     $ -     $ 10,686,930     $ 55,825     $ 55,825  
                                                 

Impaired Loans/Leases with Specific Allowance Recorded:

                                                

C&I

   $ 7,033,401     $ 8,190,495     $ 3,300,199     $ 3,159,985     $ 14,837     $ 14,837  

CRE

                                                

Owner-Occupied CRE

     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 CRE

     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

     727,958       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  
    $ 15,875,761     $ 18,008,843     $ 5,244,673     $ 9,684,123     $ 21,368     $ 21,368  
                                                 

Total Impaired Loans/Leases:

                                                

C&I

   $ 7,279,709     $ 8,532,886     $ 3,300,199     $ 3,685,528     $ 22,436     $ 22,436  

CRE

                                                

Owner-Occupied CRE

     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 CRE

     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

     1,788,728       1,824,307       151,663       1,807,891       5,999       5,999  

Installment and Other Consumer

     1,108,033       1,308,033       265,795       1,279,980       3,564       3,564  
    $ 18,949,125     $ 21,585,713     $ 5,244,673     $ 20,371,053     $ 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:

                                                

C&I

   $ 492,622     $ 568,951     $ -     $ 747,134     $ 7,749     $ 7,749  

CRE

                                                

Owner-Occupied CRE

     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 CRE

     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:

                                                

C&I

   $ 1,269,228     $ 1,956,755     $ 927,453     $ 1,222,449     $ 33,703     $ 33,703  

CRE

                                                

Owner-Occupied CRE

     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 CRE

     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:

                                                

C&I

   $ 1,761,850     $ 2,525,706     $ 927,453     $ 1,969,583     $ 41,452     $ 41,452  

CRE

                                                

Owner-Occupied CRE

     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 CRE

     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.


For C&I and CRE 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, 2015 and 2014:


   

2015

  
           

CRE

                  
                   

Non Owner-Occupied

                  

Internally Assigned Risk Rating

  

C&I

    

Owner-Occupied

CRE

    

Commercial Construction,

Land

Development, and Other Land

    

Other CRE

    

Total

    

As a % of

Total

  
                                                 

Pass (Ratings 1 through 5)

   $ 616,200,797     $ 238,119,608     $ 46,929,876     $ 406,027,442     $ 1,307,277,723       95.24 %

Special Mention (Rating 6)

     18,031,845       8,630,658       1,780,000       8,846,286       37,288,789       2.72 %

Substandard (Rating 7)

     13,927,250       5,772,898       373,968       7,888,029       27,962,145       2.04 %

Doubtful (Rating 8)

     -       -       -       -       -       0.00 %
    $ 648,159,892     $ 252,523,164     $ 49,083,844     $ 422,761,757     $ 1,372,528,657       100.00 %

   

2015

  

Delinquency Status *

  

Direct Financing Leases

    

Residential Real Estate

    

Installment and

Other Consumer

    

Total

    

As a % of

Total

  
                                         

Performing

   $ 171,951,419     $ 169,013,743     $ 73,081,751     $ 414,046,913       99.11 %

Nonperforming

     1,704,186       1,418,787       587,742       3,710,715       0.89 %
    $ 173,655,605     $ 170,432,530     $ 73,669,493     $ 417,757,628       100.00 %

   

2014

  
           

CRE

                  
                   

Non Owner-Occupied

                  

Internally Assigned Risk Rating

  

C&I

    

Owner-Occupied

CRE

    

Commercial Construction,

Land

Development, and Other Land

    

Other CRE

    

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)

     -       -       -       -       -       0.00 %
    $ 523,927,140     $ 260,069,080     $ 68,118,989     $ 373,952,353     $ 1,226,067,562       100.00 %

    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 troubled debt restructurings.


As of December 31, 2015 and 2014, TDRs totaled $2,587,413 and $6,434,259, 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, 2015 and 2014. 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, 2015 and 2014, respectively. The following excludes any troubled debt restructurings that were restructured and paid off or charged off in the same year.


   

2015

  

Classes of Loans/Leases

  

Number of Loans/Leases

    

Pre-

Modification Recorded

Investment

    

Post-

Modification Recorded

Investment

    

Specific

Allowance

  
                                 

CONCESSION - Interest rate adjusted below market

                                

Installment and Other Consumer

     2     $ 37,979     $ 37,979     $ 12,013  
      2     $ 37,979     $ 37,979     $ 12,013  
                                 

TOTAL

     2     $ 37,979     $ 37,979     $ 12,013  

Of the TDRs reported above, one with a post-modification recorded investment totaling $14,027 was on nonaccrual as of December 31, 2015.


For the year ended December 31, 2015, the Company had no TDRs 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 Company had no TDRs that were both restructured and charged off in 2015.


   

2014

  

Classes of Loans/Leases

  

Number of Loans/Leases

    

Pre-

Modification Recorded

Investment

    

Post-

Modification Recorded

Investment

    

Specific

Allowance

  
                                 

CONCESSION - Extension of maturity

                                

C&I

     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

                                

C&I

     3     $ 889,154     $ 889,154     $ 217,524  
      3     $ 889,154     $ 889,154     $ 217,524  
                                 

CONCESSION - Forgiveness of principal

                                

C&I

     1       96,439       71,760       6,948  
      1     $ 96,439     $ 71,760     $ 6,948  
                                 

CONCESSION - Other

                                

C&I

     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 TDRs 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 TDRs 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 TDR that was restructured and charged off in 2014, totaling $89,443.


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, 2015, 2014, and 2013, is as follows:


   

2015

    

2014

    

2013

  
                         

Balance, beginning

   $ 42,469,111     $ 39,192,966     $ 20,502,058  

Net increase (decrease) due to change in related parties

     (3,606,418 )     1,040,278       17,124,702  

Advances

     19,040,675       13,284,475       6,213,381  

Repayments

     (15,891,055 )     (11,048,608 )     (4,647,175 )

Balance, ending

   $ 42,012,313     $ 42,469,111     $ 39,192,966  

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, 2015 and 2014 as follows:


   

2015

    

2014

  

Industry Name

  

Balance

    

Percentage of Total Loans/Leases

    

Balance

    

Percentage of Total Loans/Leases

  
                                 

Lessors of Non-Residential Buildings

   $ 311,138,005       17 %   $ 256,436,213       16 %

Lessors of Residential Buildings

     91,811,101       5 %     74,667,674       5 %

Bank Holding Companies

     55,840,984       3 %     60,910,570       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. Geographically, the lease portfolio is diversified across all 50 states. No individual state represents a concentration within the total loan/lease portfolio.