Note 5 - Premises and Equipment

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

5.

Premises and Equipment

The following summarizes the components of premises and equipment as of

December

31,

2016

and

2015:

	2016		2015
Land	$	12,936,223	$	6,655,796
Buildings (useful lives 15 to 50 years)		51,546,499		34,615,006
Furniture and equipment (useful lives 3 to 10 years)		28,458,946		24,953,570
Premises and equipment		92,941,668		66,224,372
Less accumulated depreciation		32,298,160		28,874,020
Premises and equipment, net	$	60,643,508	$	37,350,352

As a result of the acquisition of CSB in

2016,

the Company assumed ownership of the related fixed assets, valued at approximately

$20.7

million as of the acquisition date. This accounts for the increase in premises and equipment during

2016.

Certain facilities are leased under operating leases. Rental expense was

$334,977,

$339,839,

and

$484,868

for the years ended

December

31,

2016,

2015,

and

2014,

respectively.

Future minimum rental commitments under noncancelable leases are as follows as of

December

31,

2016:

Year ending December 31:
2017		226,283
2018		226,643
2019		162,833
	$	615,759

During

2016,

the Company entered into a material related party transaction with an entity that is owned and controlled by a CRBT director. That business was chosen as the general contractor for the remodel of the Waterloo branch. The business was the original contractor for the branch and is recognized as a leader in Iowa and the Midwest market for the design and construction of financial services and professional office buildings. Based on the entity’s expertise, its experience as the original designer/builder of the branch location and a decline to bid from

two

other contractors, management chose the entity as the general contractor. Management determined that the bids received from the entity were at market rates.

The project total is estimated at

$3.7

million. This is the full contract price, as subcontractors will be utilized to complete the work. It is estimated that the entity will receive

$2.2

million for its work as the general contractor, including payments for a portion of the actual construction costs as the entity is completing a portion of the subcontracting work in addition to being the general contractor.

As of

December

31,

2016,

the Company had an outstanding commitment of

$1.8

million left on the

$3.7

million contract for the remodel of the Waterloo branch.