NOTE 3

– LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2016 and December 31, 2015 is presented as follows:

	As of June 30,			As of December 31,
	2016			2015

C&I loans	$	706,261,186		$	648,159,892
CRE loans
Owner-occupied CRE		258,688,445			252,523,164
Commercial construction, land development, and other land		48,948,825			49,083,844
Other non owner-occupied CRE		476,741,839			422,761,757
		784,379,109			724,368,765

Direct financing leases *		169,927,481			173,655,605
Residential real estate loans **		180,482,005			170,432,530
Installment and other consumer loans		73,658,172			73,669,493
		1,914,707,953			1,790,286,285
Plus deferred loan/lease origination costs, net of fees		8,065,444			7,736,390
		1,922,773,397			1,798,022,675
Less allowance		(28,097,490	)		(26,140,906	)
	$	1,894,675,907		$	1,771,881,769


* Direct financing leases:
Net minimum lease payments to be received	$	190,107,687		$	195,476,230
Estimated unguaranteed residual values of leased assets		1,085,154			1,165,706
Unearned lease/residual income		(21,265,360	)		(22,986,331	)
		169,927,481			173,655,605
Plus deferred lease origination costs, net of fees		6,339,871			6,594,582
		176,267,352			180,250,187
Less allowance		(3,226,194	)		(3,395,088	)
	$	173,041,158		$	176,855,099

*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 and six months ended June 30, 2016 and 2015.

**Includes residential real estate loans held for sale totaling $1,558,500 and $565,850 as of June 30, 2016, and December 31, 2015, respectively.

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2016 and December 31, 2015 is presented as follows:

	As of June 30, 2016
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	$	687,859,076		$	400,711		$	13,225,353		$	-		$	4,776,046		$	706,261,186
CRE
Owner-Occupied CRE		257,503,344			141,571			-			-			1,043,530			258,688,445
Commercial Construction, Land Development, and Other Land		48,759,844			-			-			-			188,981			48,948,825
Other Non Owner-Occupied CRE		473,256,279			530,808			1,384,387			84,500			1,485,865			476,741,839
Direct Financing Leases		165,927,453			1,036,764			1,230,235			-			1,733,029			169,927,481
Residential Real Estate		179,075,229			-			215,561			-			1,191,215			180,482,005
Installment and Other Consumer		72,831,797			446,971			59,391			1,868			318,145			73,658,172
	$	1,885,213,022		$	2,556,825		$	16,114,927		$	86,368		$	10,736,811		$	1,914,707,953

As a percentage of total loan/lease portfolio		98.46	%		0.13	%		0.84	%		0.00	%		0.56	%		100.00	%

	As of December 31, 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	%

* Inflated due to a small number of loans that were not renewed timely. Since June 30, 2016, these loans were renewed without issue.

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NPLs by classes of loans/leases as of June 30, 2016 and December 31, 2015 are presented as follows:

	As of June 30, 2016
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Accruing TDRs		Total NPLs		Percentage of Total NPLs

C&I	$	-	$	4,776,046	$	171,108	$	4,947,154		39.34	%
CRE
Owner-Occupied CRE		-		1,043,530		-		1,043,530		8.30	%
Commercial Construction, Land Development, and Other Land		-		188,981		-		188,981		1.50	%
Other Non Owner-Occupied CRE		84,500		1,485,865		-		1,570,365		12.49	%
Direct Financing Leases		-		1,733,029		1,059,919		2,792,948		22.21	%
Residential Real Estate		-		1,191,215		393,799		1,585,014		12.60	%
Installment and Other Consumer		1,868		318,145		128,151		448,164		3.56	%
	$	86,368	$	10,736,811	$	1,752,977	$	12,576,156		100.00	%

*Nonaccrual loans/leases included $2,351,137 of TDRs, including $767,261 in C&I loans, $1,422,722 in CRE loans, $34,850 in direct financing leases, $113,031 in residential real estate loans, and $13,273 in installment loans.

	As of December 31, 2015
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Accruing TDRs		Total NPLs		Percentage of Total NPLs

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	%

**Nonaccrual loans/leases included $1,533,657 of TDRs, 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.

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Changes in the allowance by portfolio segment for the three and six months ended June 30, 2016 and 2015, respectively, are presented as follows:

	Three Months Ended June 30, 2016
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Balance, beginning	$	10,991,979		$	10,090,567		$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442
Provisions (credits) charged to expense		(241,600	)		919,596			460,997			194,988			(136,131	)		1,197,850
Loans/leases charged off		(48,983	)		(23,101	)		(534,716	)		(17,523	)		(9,892	)		(634,215	)
Recoveries on loans/leases previously charged off		23,110			-			12,682			900			101,721			138,413
Balance, ending	$	10,724,506		$	10,987,062		$	3,226,194		$	2,014,987		$	1,144,741		$	28,097,490

	Three Months Ended June 30, 2015
	C&I			CRE		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

	Six Months Ended June 30, 2016

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

Balance, beginning	$	10,484,080		$	9,375,117		$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Provisions (credits) charged to expense		498,231			1,635,046			939,242			257,644			(59,328	)		3,270,835
Loans/leases charged off		(292,549	)		(23,101	)		(1,135,654	)		(33,707	)		(17,488	)		(1,502,499	)
Recoveries on loans/leases previously charged off		34,744			-			27,518			900			125,086			188,248
Balance, ending	$	10,724,506		$	10,987,062		$	3,226,194		$	2,014,987		$	1,144,741		$	28,097,490

	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

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The allowance by impairment evaluation and by portfolio segment as of June 30, 2016 and December 31, 2015 is presented as follows:

	As of June 30, 2016
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total

Allowance for impaired loans/leases	$	1,242,430		$	123,079		$	555,819		$	198,020		$	138,490		$	2,257,838
Allowance for nonimpaired loans/leases		9,482,076			10,863,983			2,670,375			1,816,967			1,006,251			25,839,652
	$	10,724,506		$	10,987,062		$	3,226,194		$	2,014,987		$	1,144,741		$	28,097,490


Impaired loans/leases	$	4,454,638		$	2,616,301		$	2,678,521		$	1,585,013		$	446,297		$	11,780,770
Nonimpaired loans/leases		701,806,548			781,762,808			167,248,960			178,896,992			73,211,875			1,902,927,183
	$	706,261,186		$	784,379,109		$	169,927,481		$	180,482,005		$	73,658,172		$	1,914,707,953


Allowance as a percentage of impaired loans/leases		27.89	%		4.70	%		20.75	%		12.49	%		31.03	%		19.17	%
Allowance as a percentage of nonimpaired loans/leases		1.35	%		1.39	%		1.60	%		1.02	%		1.37	%		1.36	%
Total allowance as a percentage of total loans/leases		1.52	%		1.40	%		1.90	%		1.12	%		1.55	%		1.46	%

	As of December 31, 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	%		1.45	%

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

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, 2016 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:
C&I	$	639,448	$	780,390	$	-	$	3,197,308	$	5,343	$	5,343
CRE
Owner-Occupied CRE		-		93,774		-		163,216		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,516,555		1,516,555		-		1,243,616		-		-
Direct Financing Leases		1,652,661		1,652,661		-		1,398,419		31,500		31,500
Residential Real Estate		672,061		711,262		-		627,715		2,051		2,051
Installment and Other Consumer		231,730		231,730		-		281,740		-		-
	$	4,712,455	$	4,986,372	$	-	$	6,912,014	$	38,894	$	38,894

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	3,815,190	$	3,819,029	$	1,242,430	$	1,775,881	$	-	$	-
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		188,981		200,981		79,911		191,384		-		-
Other Non Owner-Occupied CRE		910,765		910,765		43,168		595,714		-		-
Direct Financing Leases		1,025,860		1,025,860		555,819		866,749		-		-
Residential Real Estate		912,952		948,530		198,020		872,297		3,906		3,906
Installment and Other Consumer		214,567		214,567		138,490		212,806		2,968		2,968
	$	7,068,315	$	7,119,732	$	2,257,838	$	4,514,831	$	6,874	$	6,874

Total Impaired Loans/Leases:
C&I	$	4,454,638	$	4,599,419	$	1,242,430	$	4,973,189	$	5,343	$	5,343
CRE
Owner-Occupied CRE		-		93,774		-		163,216		-		-
Commercial Construction, Land Development, and Other Land		188,981		200,981		79,911		191,384		-		-
Other Non Owner-Occupied CRE		2,427,320		2,427,320		43,168		1,839,330		-		-
Direct Financing Leases		2,678,521		2,678,521		555,819		2,265,168		31,500		31,500
Residential Real Estate		1,585,013		1,659,792		198,020		1,500,012		5,957		5,957
Installment and Other Consumer		446,297		446,297		138,490		494,546		2,968		2,968
	$	11,780,770	$	12,106,104	$	2,257,838	$	11,426,845	$	45,768	$	45,768

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

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended June 30, 2016 and 2015, respectively, are presented as follows:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
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:
C&I	$	2,524,056	$	3,519	$	3,519	$	320,187	$	1,860	$	1,860
CRE
Owner-Occupied CRE		121,444		-		-		550,374		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		222,926		-		-
Other Non Owner-Occupied CRE		1,311,540		-		-		2,474,448		-		-
Direct Financing Leases		1,510,987		19,897		19,897		582,316		1,878		1,878
Residential Real Estate		621,354		1,013		1,013		969,580		-		-
Installment and Other Consumer		229,207		-		-		705,750		475		475
	$	6,318,588	$	24,429	$	24,429	$	5,825,581	$	4,213	$	4,213

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	2,292,483	$	-	$	-	$	4,912,917	$	-	$	-
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		190,174		-		-		139,250		-		-
Other Non Owner-Occupied CRE		658,220		-		-		1,657,506		-		-
Direct Financing Leases		995,446		-		-		561,840		-		-
Residential Real Estate		919,271		1,948		1,948		869,073		1,967		1,967
Installment and Other Consumer		218,742		1,468		1,468		608,277		2,252		2,252
	$	5,274,336	$	3,416	$	3,416	$	8,748,863	$	4,219	$	4,219

Total Impaired Loans/Leases:
C&I	$	4,816,539	$	3,519	$	3,519	$	5,233,104	$	1,860	$	1,860
CRE
Owner-Occupied CRE		121,444		-		-		550,374		-		-
Commercial Construction, Land Development, and Other Land		190,174		-		-		362,176		-		-
Other Non Owner-Occupied CRE		1,969,760		-		-		4,131,954		-		-
Direct Financing Leases		2,506,433		19,897		19,897		1,144,156		1,878		1,878
Residential Real Estate		1,540,625		2,961		2,961		1,838,653		1,967		1,967
Installment and Other Consumer		447,949		1,468		1,468		1,314,027		2,727		2,727
	$	11,592,924	$	27,845	$	27,845	$	14,574,444	$	8,432	$	8,432

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

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2015 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance

Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	234,636	$	346,072	$	-
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		-		228,818		-
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		871,884		871,884		-
Residential Real Estate		613,486		649,064		-
Installment and Other Consumer		377,304		377,304		-
	$	3,932,541	$	4,402,147	$	-

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	5,051,846	$	5,055,685	$	2,592,270
CRE
Owner-Occupied CRE		-		-		-
Commercial Construction, Land Development, and Other Land		193,804		205,804		76,934
Other Non Owner-Occupied CRE		-		-		-
Direct Financing Leases		829,457		829,457		306,193
Residential Real Estate		805,301		805,301		185,801
Installment and Other Consumer		210,438		210,438		143,089
	$	7,090,846	$	7,106,685	$	3,304,287

Total Impaired Loans/Leases:
C&I	$	5,286,482	$	5,401,757	$	2,592,270
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		193,804		434,622		76,934
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		1,701,341		1,701,341		306,193
Residential Real Estate		1,418,787		1,454,365		185,801
Installment and Other Consumer		587,742		587,742		143,089
	$	11,023,387	$	11,508,832	$	3,304,287

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

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

For C&I and CRE 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 June 30, 2016 and December 31, 2015:

	As of June 30, 2016
			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)	$	678,225,838	$	247,914,237	$	44,672,408	$	458,961,143	$	1,429,773,626		95.92	%
Special Mention (Rating 6)		6,381,586		2,114,505		1,780,000		5,954,788		16,230,879		1.09	%
Substandard (Rating 7)		21,653,762		8,659,703		2,496,417		11,825,908		44,635,790		2.99	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	706,261,186	$	258,688,445	$	48,948,825	$	476,741,839	$	1,490,640,295		100.00	%

	As of June 30, 2016
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total

Performing	$	167,134,533	$	178,896,991	$	73,210,008	$	419,241,532		98.86	%
Nonperforming		2,792,948		1,585,014		448,164		4,826,126		1.14	%
	$	169,927,481	$	180,482,005	$	73,658,172	$	424,067,658		100.00	%

	As of December 31, 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)		-		-		-		-		-		-
	$	648,159,892	$	252,523,164	$	49,083,844	$	422,761,757	$	1,372,528,657		100.00	%

	As of December 31, 2015
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total

Performing	$	171,951,421	$	169,013,743	$	73,081,751	$	414,046,915		99.11	%
Nonperforming		1,704,184		1,418,787		587,742		3,710,713		0.89	%
	$	173,655,605	$	170,432,530	$	73,669,493	$	417,757,628		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.

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

As of June 30, 2016 and December 31, 2015, TDRs totaled $4,104,114 and $2,587,413, 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, 2016. 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, 2016
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	$	52,286	$	52,286	$	-
		1	$	52,286	$	52,286	$	-

CONCESSION - Significant Payment Delay
C&I		1	$	62,140	$	62,140	$	-
Direct Financing Leases		4		494,692		494,692		-
		5	$	556,832	$	556,832	$	-

CONCESSION - Interest Rate Adjusted Below Market
CRE - Other		1	$	1,233,740	$	1,233,740	$	-
		1	$	1,233,740	$	1,233,740	$	-

TOTAL		7	$	1,842,858	$	1,842,858	$	-

	For the six months ended June 30, 2016
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	$	52,286	$	52,286	$	-
Direct Financing Leases		4		410,653		410,653		-
		5	$	462,939	$	462,939	$	-

CONCESSION - Significant Payment Delay
C&I		1	$	62,140	$	62,140	$	-
Direct Financing Leases		5		540,631		540,631		-
		6	$	602,771	$	602,771	$	-

CONCESSION - Interest Rate Adjusted Below Market
CRE - Other		1	$	1,233,740	$	1,233,740	$	-
		1	$	1,233,740	$	1,233,740	$	-

TOTAL		12	$	2,299,450	$	2,299,450	$	-

Of the TDRs reported above, one with a post-modification recorded balance of $1,233,740 was on nonaccrual as of June 30, 2016.

For the three and six months ended June 30, 2016 and 2015, 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.