Note 4 - Loans Leases Receivable

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Financing Receivables [Text Block]

Note

4.

Loans/Leases Receivable

The composition of the loan/lease portfolio as of

December

31,

2016

and

2015

is presented as follows:

	2016			2015
C&I loans	$	827,637,263		$	648,159,892
CRE loans
Owner-occupied CRE		332,387,621			252,523,164
Commercial construction, land development, and other land		165,149,491			49,083,844
Other non owner-occupied CRE		595,921,748			422,761,757
		1,093,458,860			724,368,765
Direct financing leases *		165,419,360			173,655,605
Residential real estate loans **		229,233,104			170,432,530
Installment and other consumer loans		81,665,695			73,669,493
		2,397,414,282			1,790,286,285
Plus deferred loan/lease origination costs, net of fees		8,072,703			7,736,390
		2,405,486,985			1,798,022,675
Less allowance		(30,757,448	)		(26,140,906	)
	$	2,374,729,537		$	1,771,881,769
* Direct financing leases:
Net minimum lease payments to be received	$	184,274,802		$	195,476,230
Estimated unguaranteed residual values of leased assets		1,085,154			1,165,706
Unearned lease/residual income		(19,940,596	)		(22,986,331	)
		165,419,360			173,655,605
Plus deferred lease origination costs, net of fees		5,881,778			6,594,582
		171,301,138			180,250,187
Less allowance		(3,111,898	)		(3,395,088	)
	$	168,189,240		$	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 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,

2016,

2015,

and

2014.

At

December

31,

2016,

the Company had

13

leases remaining with residual values totaling

$1,085,164

that were not protected with a lease end options rider. 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. 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

$1,135,500

and

$565,850

as of

December

31,

2016

and

2015,

respectively.

The aging of the loan/lease portfolio by classes of loans/leases as of

December

31,

2016

and

2015

is presented as follows:

	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	$	821,637,507		$	1,455,185		$	10,551		$	346,234		$	4,187,786		$	827,637,263
CRE
Owner-Occupied CRE		331,812,571			-			242,902			-			332,148			332,387,621
Commercial Construction, Land Development, and Other Land		160,760,034			35,638			-			-			4,353,819			165,149,491
Other Non Owner-Occupied CRE		594,384,926			100,673			-			-			1,436,149			595,921,748
Direct Financing Leases		161,452,627			730,627			574,700			215,225			2,446,181			165,419,360
Residential Real Estate		227,023,552			473,478			365,581			294,854			1,075,639			229,233,104
Installment and Other Consumer		81,199,766			204,973			63,111			110,501			87,344			81,665,695
	$	2,378,270,983		$	3,000,574		$	1,256,845		$	966,814		$	13,919,066		$	2,397,414,282
As a percentage of total loan/lease portfolio		99.20	%		0.13	%		0.05	%		0.04	%		0.58	%		100.00	%

	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	%

NPLs by classes of loans/leases as of

December

31,

2016

and

2015

is presented as follows:

	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	$	346,234	$	4,187,786	$	4,733,997	$	9,268,017		43.65	%
CRE
Owner-Occupied CRE		-		332,148		-		332,148		1.56	%
Commercial Construction, Land Development, and Other Land		-		4,353,819		-		4,353,819		20.51	%
Other Non Owner-Occupied CRE		-		1,436,149		-		1,436,149		6.77	%
Direct Financing Leases		215,225		2,446,181		1,008,244		3,669,650		17.28	%
Residential Real Estate		294,854		1,075,639		585,541		1,956,034		9.21	%
Installment and Other Consumer		110,501		87,344		18,746		216,591		1.02	%
	$	966,814	$	13,919,066	$	6,346,528	$	21,232,408		100.00	%

*At

December

31,

2016,

nonaccrual loans/leases included

$2,300,479

of TDRs, including

$48,501

in C&I loans,

$1,380,047

in CRE loans,

$816,149

in direct financing leases,

$43,579

in residential real estate loans, and

$12,203

in installment loans.

	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	%

**

At

December

31,

2015,

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.

Changes in the allowance by portfolio segment for the years ended

December

31,

2016,

2015,

and

2014

are presented as follows:

	Year Ended December 31, 2016
	C&I			CRE			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		2,478,912			2,286,953			2,127,463			628,114			(43,276	)		7,478,166
Loans/leases charged off		(527,152	)		(24,304	)		(2,503,417	)		(76,820	)		(112,490	)		(3,244,183	)
Recoveries on loans/leases previously charged off		109,270			32,843			92,764			900			146,782			382,559
Balance, ending	$	12,545,110		$	11,670,609		$	3,111,898		$	2,342,344		$	1,087,487		$	30,757,448

	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 (credits) 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

The allowance by impairment evaluation and by portfolio segment as of

December

31,

2016

and

2015

is presented as follows:

	2016
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	1,771,537		$	693,919		$	848,919		$	289,112		$	39,481		$	3,642,968
Allowance for nonimpaired loans/leases		10,773,573			10,976,690			2,262,979			2,053,232			1,048,006			27,114,480
	$	12,545,110		$	11,670,609		$	3,111,898		$	2,342,344		$	1,087,487		$	30,757,448
Impaired loans/leases	$	8,936,451		$	6,112,114		$	3,256,264		$	1,661,180		$	106,090		$	20,072,099
Nonimpaired loans/leases		818,700,812			1,087,346,746			162,163,096			227,571,924			81,559,605			2,377,342,183
	$	827,637,263		$	1,093,458,860		$	165,419,360		$	229,233,104		$	81,665,695		$	2,397,414,282
Allowance as a percentage of impaired loans/leases		19.82	%		11.35	%		26.07	%		17.40	%		37.21	%		18.15	%
Allowance as a percentage of nonimpaired loans/leases		1.32	%		1.01	%		1.40	%		0.90	%		1.28	%		1.14	%
Total allowance as a percentage of total loans/leases		1.52	%		1.07	%		1.88	%		1.02	%		1.33	%		1.28	%

	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	%

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,

2016,

2015,

and

2014

are presented as follows:

	2016
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	$	841,895	$	951,600	$	-	$	2,858,343	$	16,748	$	16,748
CRE
Owner-Occupied CRE		-		93,774		-		312,242		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,196,549		1,196,549		-		1,322,654		-		-
Direct Financing Leases		1,690,121		1,690,121		-		1,731,982		43,461		43,461
Residential Real Estate		853,294		892,495		-		964,590		9,903		9,903
Installment and Other Consumer		55,734		55,734		-		321,175		4,475		4,475
	$	4,637,593	$	4,880,273	$	-	$	7,510,986	$	74,587	$	74,587
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	8,094,556	$	8,098,395	$	1,771,537	$	2,959,495	$	17,742	$	17,742
CRE
Owner-Occupied CRE		322,148		322,148		57,398		385,269		-		-
Commercial Construction, Land Development, and Other Land		4,353,817		4,353,817		577,611		1,022,930		-		-
Other Non Owner-Occupied CRE		239,600		239,600		58,910		47,920		-		-
Direct Financing Leases		1,566,143		1,566,143		848,919		841,733		36,303		36,303
Residential Real Estate		807,886		882,018		289,112		573,211		11,675		11,675
Installment and Other Consumer		50,356		50,356		39,481		40,384		527		527
	$	15,434,506	$	15,512,477	$	3,642,968	$	5,870,942	$	66,247	$	66,247
Total Impaired Loans/Leases:
C&I	$	8,936,451	$	9,049,995	$	1,771,537	$	5,817,838	$	34,490	$	34,490
CRE
Owner-Occupied CRE		322,148		415,922		57,398		697,511		-		-
Commercial Construction, Land Development, and Other Land		4,353,817		4,353,817		577,611		1,022,930		-		-
Other Non Owner-Occupied CRE		1,436,149		1,436,149		58,910		1,370,574		-		-
Direct Financing Leases		3,256,264		3,256,264		848,919		2,573,715		79,764		79,764
Residential Real Estate		1,661,180		1,774,513		289,112		1,537,801		21,578		21,578
Installment and Other Consumer		106,090		106,090		39,481		361,559		5,002		5,002
	$	20,072,099	$	20,392,750	$	3,642,968	$	13,381,928	$	140,834	$	140,834

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

	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.

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,

2016

and

2015:

	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)	$	796,568,451	$	314,447,662	$	158,108,465	$	582,854,048	$	1,851,978,626		96.40	%
Special Mention (Rating 6)		6,305,772		7,559,380		1,780,000		4,437,122		20,082,274		1.05	%
Substandard (Rating 7)		24,763,040		10,380,369		5,261,026		8,630,578		49,035,013		2.55	%
Doubtful (Rating 8)		-		210		-		-		210		0.00	%
	$	827,637,263	$	332,387,621	$	165,149,491	$	595,921,748	$	1,921,096,123		100.00	%

	2016
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	161,749,710	$	227,277,070	$	81,449,104	$	470,475,884		98.77	%
Nonperforming		3,669,650		1,956,034		216,591		5,842,275		1.23	%
	$	165,419,360	$	229,233,104	$	81,665,695	$	476,318,159		100.00	%

	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	$	171,951,421	$	169,013,743	$	73,081,751	$	414,046,913		99.11	%
Nonperforming		1,704,184		1,418,787		587,742		3,710,715		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 troubled debt restructurings.

As of

December

31,

2016

and

2015,

TDRs totaled

$8,647,007

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 years ended

December

31,

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 restructuring. The specific allowance is as of

December

31,

2016

and

2015,

respectively. The following excludes any TDRs that were restructured and paid off or charged off in the same year.

	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		3	$	247,476	$	247,476	$	60,767
Direct Financing Leases		4		410,653		410,653		38,476
Residential Real Estate		1		277,092		277,092		187,492
		8	$	935,221	$	935,221	$	286,735
CONCESSION - Significant Payment Delay
C&I		7	$	4,562,427	$	4,562,427	$	813,041
Direct Financing Leases		13		1,149,493		1,149,493		125,940
		20	$	5,711,920	$	5,711,920	$	938,981
CONCESSION - Interest Rate Adjusted Below Market
CRE - Other		1	$	1,233,740	$	1,233,740	$	-
		1	$	1,233,740	$	1,233,740	$	-
TOTAL		29	$	7,880,881	$	7,880,881	$	1,225,716

	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,

eight

with a post-modification recorded investment totaling

$2,008,424

were on nonaccrual as of

December

31,

2016

and

one

with a post-modification recorded investment totaling

$14,027

was on nonaccrual as of

December

31,

2015.

For the years ended

December

31,

2016

and

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.

Not included in the table above, the Company had

three

TDRs that were restructured and charged off in

2016,

totaling

$341,952.

There were no TDRs that were both restructured and charged off in

2015.

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,

2016,

2015,

and

2014,

is as follows:

	2016			2015			2014
Balance, beginning	$	42,012,313		$	42,469,111		$	39,192,966
Net increase (decrease) due to change in related parties		19,945,960			(3,606,418	)		1,040,278
Advances		4,806,616			19,040,675			13,284,475
Repayments		(5,155,913	)		(15,891,055	)		(11,048,608	)
Balance, ending	$	61,608,976		$	42,012,313		$	42,469,111

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,

2016

and

2015

as follows:

	2016					2015
Industry Name	Balance		Percentage of Total Loans/Leases			Balance		Percentage of Total Loans/Leases
Lessors of Non-Residential Buildings	$	359,040,649		15	%	$	311,138,005		17	%
Lessors of Residential Buildings		166,036,201		7	%		91,811,101		5	%
Nonresidential Property Managers		76,504,076		3	%		10,500,305		1	%
Bank Holding Companies		66,069,612		3	%		55,840,984		3	%

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.