NOTE 3

– LOANS/LEASES RECEIVABLE

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

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

C&I loans	$	804,307,562		$	648,159,892
CRE loans
Owner-occupied CRE		317,899,011			252,523,164
Commercial construction, land development, and other land		160,527,094			49,083,844
Other non owner-occupied CRE		591,878,656			422,761,757
		1,070,304,761			724,368,765

Direct financing leases *		166,924,077			173,655,605
Residential real estate loans **		229,080,600			170,432,530
Installment and other consumer loans		81,917,732			73,669,493
		2,352,534,732			1,790,286,285
Plus deferred loan/lease origination costs, net of fees		8,065,780			7,736,390
		2,360,600,512			1,798,022,675
Less allowance		(28,826,835	)		(26,140,906	)
	$	2,331,773,677		$	1,771,881,769


* Direct financing leases:
Net minimum lease payments to be received	$	186,183,516		$	195,476,230
Estimated unguaranteed residual values of leased assets		1,085,154			1,165,706
Unearned lease/residual income		(20,344,593	)		(22,986,331	)
		166,924,077			173,655,605
Plus deferred lease origination costs, net of fees		6,018,484			6,594,582
		172,942,561			180,250,187
Less allowance		(3,041,962	)		(3,395,088	)
	$	169,900,599		$	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 nine months ended September 30, 2016 and 2015.

**Includes residential real estate loans held for sale totaling $1,377,875 and $565,850 as of September 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 September 30, 2016 and December 31, 2015 is presented as follows:

	As of September 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	$	796,943,072		$	358,503		$	232,297		$	266,485		$	6,507,205		$	804,307,562
CRE
Owner-Occupied CRE		316,299,798			-			-			-			1,599,213			317,899,011
Commercial Construction, Land Development, and Other Land		160,034,828			-			-			-			492,266			160,527,094
Other Non Owner-Occupied CRE		585,545,037			4,617,055			-			-			1,716,564			591,878,656
Direct Financing Leases		162,556,659			1,180,356			998,896			-			2,188,166			166,924,077
Residential Real Estate		227,061,212			122,744			114,638			104,789			1,677,217			229,080,600
Installment and Other Consumer		81,576,782			89,104			41,332			20,492			190,022			81,917,732
	$	2,330,017,388		$	6,367,762		$	1,387,163		$	391,766		$	14,370,653		$	2,352,534,732

As a percentage of total loan/lease portfolio		99.05	%		0.27	%		0.06	%		0.02	%		0.61	%		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	%

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

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

	As of September 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	$	266,485	$	6,507,205	$	170,113	$	6,943,803		41.86	%
CRE
Owner-Occupied CRE		-		1,599,213		-		1,599,213		9.64	%
Commercial Construction, Land Development, and Other Land		-		492,266		-		492,266		2.97	%
Other Non Owner-Occupied CRE		-		1,716,564		-		1,716,564		10.35	%
Direct Financing Leases		-		2,188,166		1,138,335		3,326,501		20.05	%
Residential Real Estate		104,789		1,677,217		390,039		2,172,045		13.09	%
Installment and Other Consumer		20,492		190,022		126,998		337,512		2.03	%
	$	391,766	$	14,370,653	$	1,825,485	$	16,587,904		100.00	%

*Nonaccrual loans/leases included $4,859,420 of TDRs, including $2,241,205 in C&I loans, $1,937,655 in CRE loans, $463,859 in direct financing leases, $110,702 in residential real estate loans, and $105,999 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 nine months ended September 30, 2016 and 2015, respectively, are presented as follows:

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

Balance, beginning	$	10,724,506		$	10,987,062	$	3,226,194		$	2,014,987		$	1,144,741		$	28,097,490
Provisions charged to expense		859,031			8,962		641,435			79,221			19,337			1,607,986
Loans/leases charged off		(96,330	)		-		(847,668	)		(38,554	)		(4,530	)		(987,082	)
Recoveries on loans/leases previously charged off		70,759			6,500		22,001			-			9,181			108,441
Balance, ending	$	11,557,966		$	11,002,524	$	3,041,962		$	2,055,654		$	1,168,729		$	28,826,835

	Three Months Ended September 30, 2015
	C&I			CRE			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

	Nine Months Ended September 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		1,357,262			1,644,008			1,580,677			336,865			(39,991	)		4,878,821
Loans/leases charged off		(388,879	)		(23,101	)		(1,983,322	)		(72,261	)		(22,018	)		(2,489,581	)
Recoveries on loans/leases previously charged off		105,503			6,500			49,519			900			134,267			296,689
Balance, ending	$	11,557,966		$	11,002,524		$	3,041,962		$	2,055,654		$	1,168,729		$	28,826,835

	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

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

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

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

Allowance for impaired loans/leases	$	1,114,680		$	175,743		$	739,207		$	169,147		$	148,320		$	2,347,097
Allowance for nonimpaired loans/leases		10,443,286			10,826,781			2,302,755			1,886,507			1,020,409			26,479,738
	$	11,557,966		$	11,002,524		$	3,041,962		$	2,055,654		$	1,168,729		$	28,826,835


Impaired loans/leases	$	5,874,093		$	3,495,386		$	2,925,205		$	2,230,829		$	368,924		$	14,894,437
Nonimpaired loans/leases		798,433,469			1,066,809,375			163,998,872			226,849,771			81,548,808			2,337,640,295
	$	804,307,562		$	1,070,304,761		$	166,924,077		$	229,080,600		$	81,917,732		$	2,352,534,732


Allowance as a percentage of impaired loans/leases		18.98	%		5.03	%		25.27	%		7.58	%		40.20	%		15.76	%
Allowance as a percentage of nonimpaired loans/leases		1.31	%		1.01	%		1.40	%		0.83	%		1.25	%		1.13	%
Total allowance as a percentage of total loans/leases		1.44	%		1.03	%		1.82	%		0.90	%		1.43	%		1.22	%

	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 nine months ended September 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	$	1,846,140	$	1,987,082	$	-	$	3,864,852	$	8,644	$	8,644
CRE
Owner-Occupied CRE		767,032		860,806		-		621,553		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		2,042,391		2,042,391		-		1,789,571		-		-
Direct Financing Leases		1,860,773		1,860,773		-		1,755,969		52,595		52,595
Residential Real Estate		1,418,957		1,458,158		-		1,455,159		2,992		2,992
Installment and Other Consumer		208,916		208,916		-		430,322		-		-
	$	8,144,209	$	8,418,126	$	-	$	9,917,426	$	64,231	$	64,231

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,027,953	$	4,031,792	$	1,114,680	$	2,195,524	$	-	$	-
CRE
Owner-Occupied CRE		322,148		322,148		57,398		401,050		-		-
Commercial Construction, Land Development, and Other Land		186,681		186,681		77,611		190,208		-		-
Other Non Owner-Occupied CRE		177,134		177,134		40,734		67,571		-		-
Direct Financing Leases		1,064,432		1,064,432		739,207		653,884		-		-
Residential Real Estate		811,872		886,004		169,147		799,427		5,409		5,409
Installment and Other Consumer		160,008		160,008		148,320		145,962		4,426		4,426
	$	6,750,228	$	6,828,199	$	2,347,097	$	4,453,626	$	9,835	$	9,835

Total Impaired Loans/Leases:
C&I	$	5,874,093	$	6,018,874	$	1,114,680	$	6,060,376	$	8,644	$	8,644
CRE
Owner-Occupied CRE		1,089,180		1,182,954		57,398		1,022,603		-		-
Commercial Construction, Land Development, and Other Land		186,681		186,681		77,611		190,208		-		-
Other Non Owner-Occupied CRE		2,219,525		2,219,525		40,734		1,857,142		-		-
Direct Financing Leases		2,925,205		2,925,205		739,207		2,409,853		52,595		52,595
Residential Real Estate		2,230,829		2,344,162		169,147		2,254,586		8,401		8,401
Installment and Other Consumer		368,924		368,924		148,320		576,284		4,426		4,426
	$	14,894,437	$	15,246,325	$	2,347,097	$	14,371,052	$	74,066	$	74,066

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 September 30, 2016 and 2015, respectively, are presented as follows:

	Three Months Ended September 30, 2016						Three Months Ended September 30, 2015
Classes of Loans/Leases	Averag e 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	$	1,677,527	$	3,301	$	3,301	$	365,798	$	1,870	$	1,870
CRE
Owner-Occupied CRE		767,032		-		-		451,851		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		9,968		-		-
Other Non Owner-Occupied CRE		1,969,034		-		-		2,868,950		-		-
Direct Financing Leases		2,008,095		21,095		21,095		634,378		325		325
Residential Real Estate		1,481,340		941		941		900,938		1,362		1,362
Installment and Other Consumer		322,738		-		-		328,669		3,912		3,912
	$	8,225,766	$	25,337	$	25,337	$	5,560,552	$	7,469	$	7,469

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,188,621	$	-	$	-	$	4,735,149	$	-	$	-
CRE
Owner-Occupied CRE		363,911		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		187,831		-		-		335,707		-		-
Other Non Owner-Occupied CRE		135,141		-		-		-		-		-
Direct Financing Leases		793,769		-		-		488,860		-		-
Residential Real Estate		807,827		1,503		1,503		984,558		1,981		1,981
Installment and Other Consumer		160,301		1,458		1,458		723,674		1,391		1,391
	$	6,637,401	$	2,961	$	2,961	$	7,267,948	$	3,372	$	3,372

Total Impaired Loans/Leases:
C&I	$	5,866,148	$	3,301	$	3,301	$	5,100,947	$	1,870	$	1,870
CRE
Owner-Occupied CRE		1,130,943		-		-		451,851		-		-
Commercial Construction, Land Development, and Other Land		187,831		-		-		345,675		-		-
Other Non Owner-Occupied CRE		2,104,175		-		-		2,868,950		-		-
Direct Financing Leases		2,801,864		21,095		21,095		1,123,238		325		325
Residential Real Estate		2,289,167		2,444		2,444		1,885,496		3,343		3,343
Installment and Other Consumer		483,039		1,458		1,458		1,052,343		5,303		5,303
	$	14,863,167	$	28,298	$	28,298	$	12,828,500	$	10,841	$	10,841

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 September 30, 2016 and December 31, 2015:

	As of September 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)	$	770,822,390	$	307,017,431	$	153,401,738	$	572,769,744	$	1,804,011,303		96.24	%
Special Mention (Rating 6)		10,160,760		1,737,127		1,780,000		5,894,259		19,572,146		1.04	%
Substandard (Rating 7)		23,324,412		9,144,453		5,345,356		13,214,653		51,028,874		2.72	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	804,307,562	$	317,899,011	$	160,527,094	$	591,878,656	$	1,874,612,323		100.00	%

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

Performing	$	163,597,576	$	226,908,556	$	81,580,220	$	472,086,352		98.78	%
Nonperforming		3,326,501		2,172,044		337,512		5,836,057		1.22	%
	$	166,924,077	$	229,080,600	$	81,917,732	$	477,922,409		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 September 30, 2016 and December 31, 2015, TDRs totaled $6,684,905 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 nine months ended September 30, 2016 and 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, 2016								For the three months ended September 30, 2015
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
Direct Financing Leases		2	$	461,643	$	461,643	$	-					$	-	$	-
		2	$	461,643	$	461,643	$	-		-	$	-	$	-	$	-

CONCESSION - Interest Rate Adjusted Below Market
Installment and Other Consumer		-	$	-	$	-	$	-		1	$	14,203	$	14,203	$	-
		-	$	-	$	-	$	-		1	$	14,203	$	14,203	$	-

TOTAL		2	$	461,643	$	461,643	$	-		1	$	14,203	$	14,203	$	-

	For the nine months ended September 30, 2016								For the nine months ended September 30, 2015
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 - 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		6		771,672		771,672		-		-		-		-		-
		7	$	833,812	$	833,812	$	-		-	$	-	$	-	$	-

CONCESSION - Interest Rate Adjusted Below Market
CRE - Other		1	$	1,233,740	$	1,233,740	$	-		-	$	-	$	-	$	-
Installment and Other Consumer		-		-		-		-		1		14,203		14,203		-
		1	$	1,233,740	$	1,233,740	$	-		1	$	14,203	$	14,203	$	-

TOTAL		13	$	2,530,491	$	2,530,491	$	-		1	$	14,203	$	14,203	$	-

Of the TDRs reported above, two with a post-modification recorded balance of $1,384,680 were on nonaccrual as of September 30, 2016. Not included in the table above, the Company had one TDR that was restructured and charged off in 2016, totaling $236,545.

For the three and nine months ended September 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.