Note 3 - Loans Leases Receivable

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

3

– LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of

June 30, 2017

and

December 31, 2016

is presented as follows:

	As of June 30,			As of December 31,
	2017			2016
C&I loans	$	942,538,419		$	827,637,263
CRE loans
Owner-occupied CRE		317,225,055			332,387,621
Commercial construction, land development, and other land		179,316,027			165,149,491
Other non owner-occupied CRE		635,365,041			595,921,748
		1,131,906,123			1,093,458,860
Direct financing leases *		153,336,548			165,419,360
Residential real estate loans **		233,870,678			229,233,104
Installment and other consumer loans		84,047,403			81,665,695
		2,545,699,171			2,397,414,282
Plus deferred loan/lease origination costs, net of fees		7,866,437			8,072,703
		2,553,565,608			2,405,486,985
Less allowance		(33,356,632	)		(30,757,448	)
	$	2,520,208,976		$	2,374,729,537
* Direct financing leases:
Net minimum lease payments to be received	$	170,143,561		$	184,274,802
Estimated unguaranteed residual values of leased assets		1,085,154			1,085,154
Unearned lease/residual income		(17,892,167	)		(19,940,596	)
		153,336,548			165,419,360
Plus deferred lease origination costs, net of fees		5,216,015			5,881,778
		158,552,563			171,301,138
Less allowance		(2,638,301	)		(3,111,898	)
	$	155,914,262		$	168,189,240

*

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, 2017

and

2016.

**Includes residential real estate loans h

eld for sale totaling

$705,800

and

$1,135,500

as of

June 30, 2017,

and

December 31, 2016,

respectively.

Changes in accretable yield for acquired loans were as follows:

	Three months ended June 30, 2017									Six months ended June 30, 2017
	PCI			Performing						PCI			Performing
	Loans			Loans			Total			Loans			Loans			Total
Balance at the beginning of the period	$	(127,616	)	$	(6,944,074	)	$	(7,071,690	)	$	(194,306	)	$	(9,115,614	)	$	(9,309,920	)
Accretion recognized		43,756			1,618,603			1,662,359			110,446			3,790,143			3,900,589
Balance at the end of the period	$	(83,860	)	$	(5,325,471	)	$	(5,409,331	)	$	(83,860	)	$	(5,325,471	)	$	(5,409,331	)

The aging of the loan/lease portfolio by classe

s of loans/leases as of

June 30, 2017

and

December 31, 2016

is presented as follows:

	As of June 30, 2017
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	$	937,716,988		$	271,248		$	430,367		$	45,812		$	4,074,004		$	942,538,419
CRE
Owner-Occupied CRE		316,555,536			514,499			-			-			155,020			317,225,055
Commercial Construction, Land Development, and Other Land		174,851,763			117,247			-			-			4,347,017			179,316,027
Other Non Owner-Occupied CRE		632,539,426			1,503,560			-			-			1,322,055			635,365,041
Direct Financing Leases		151,027,116			155,553			106,185			-			2,047,694			153,336,548
Residential Real Estate		232,076,296			92,966			395,734			257,771			1,047,911			233,870,678
Installment and Other Consumer		83,377,699			253,751			71,882			120,363			223,708			84,047,403
	$	2,528,144,824		$	2,908,824		$	1,004,168		$	423,946		$	13,217,409		$	2,545,699,171
As a percentage of total loan/lease portfolio		99.31	%		0.11	%		0.04	%		0.02	%		0.52	%		100.00	%

	As of December 31, 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	%

NPLs

by classes of loans/leases as of

June 30, 2017

and

December 31, 2016

are presented as follows:

	As of June 30, 2017
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	45,812	$	4,074,004	$	4,858,983	$	8,978,799		43.68	%
CRE
Owner-Occupied CRE		-		155,020		-		155,020		0.75	%
Commercial Construction, Land Development, and Other Land		-		4,347,017		-		4,347,017		21.15	%
Other Non Owner-Occupied CRE		-		1,322,055		-		1,322,055		6.43	%
Direct Financing Leases		-		2,047,694		1,689,086		3,736,780		18.18	%
Residential Real Estate		257,771		1,047,911		350,704		1,656,386		8.06	%
Installment and Other Consumer		120,363		223,708		16,400		360,471		1.75	%
	$	423,946	$	13,217,409	$	6,915,173	$	20,556,528		100.00	%

*

Nonaccrual loans/leases included

$2,167,863

of TDRs, including

$268,629

in C&I loans,

$1,148,818

in CRE loans,

$519,178

in direct financing leases,

$179,881

in construction loans,

$41,465

in residential real estate loans, and

$9,892

in installment loans.

	As of December 31, 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	%

**

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.

Changes in the allowance by

portfolio segment for the

three

and

six

months ended

June 30, 2017

and

2016,

respectively, are presented as follows:

	Three Months Ended June 30, 2017
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	12,954,090		$	12,643,266		$	2,978,260		$	2,375,864		$	1,107,670		$	32,059,150
Provisions (credits) charged to expense		1,281,786			339,857			297,672			116,151			(12,473	)		2,022,993
Loans/leases charged off		(74,071	)		(10,375	)		(684,079	)		(61,561	)		(21,518	)		(851,604	)
Recoveries on loans/leases previously charged off		45,928			26,485			46,448			-			7,232			126,093
Balance, ending	$	14,207,733		$	12,999,233		$	2,638,301		$	2,430,454		$	1,080,911		$	33,356,632

	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

	Six Months Ended June 30, 2017
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	12,545,110		$	11,670,609		$	3,111,898		$	2,342,344		$	1,087,487		$	30,757,448
Provisions (credits) charged to expense		1,875,144			1,306,128			802,687			159,671			(15,528	)		4,128,102
Loans/leases charged off		(292,344	)		(10,375	)		(1,342,763	)		(75,184	)		(23,564	)		(1,744,230	)
Recoveries on loans/leases previously charged off		79,823			32,871			66,479			3,623			32,516			215,312
Balance, ending	$	14,207,733		$	12,999,233		$	2,638,301		$	2,430,454		$	1,080,911		$	33,356,632

	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

The allowance by impairment evaluation and by portfolio

segment as of

June 30, 2017

and

December 31, 2016

is presented as follows:

	As of June 30, 2017
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	1,580,113		$	938,450		$	550,575		$	266,217		$	20,365		$	3,355,720
Allowance for nonimpaired loans/leases		12,627,620			12,060,783			2,087,726			2,164,237			1,060,546			30,000,912
	$	14,207,733		$	12,999,233		$	2,638,301		$	2,430,454		$	1,080,911		$	33,356,632
Impaired loans/leases	$	8,985,913		$	5,727,375		$	3,553,173		$	1,398,615		$	240,107		$	19,905,183
Nonimpaired loans/leases		933,552,506			1,126,178,748			149,783,375			232,472,063			83,807,296			2,525,793,988
	$	942,538,419		$	1,131,906,123		$	153,336,548		$	233,870,678		$	84,047,403		$	2,545,699,171
Allowance as a percentage of impaired loans/leases		17.58	%		16.39	%		15.50	%		19.03	%		8.48	%		16.86	%
Allowance as a percentage of nonimpaired loans/leases		1.35	%		1.07	%		1.39	%		0.93	%		1.27	%		1.19	%
Total allowance as a percentage of total loans/leases		1.51	%		1.15	%		1.72	%		1.04	%		1.29	%		1.31	%

	As of December 31, 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	%

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, 2017

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	$	993,551	$	1,003,988	$	-	$	802,367	$	16,751	$	16,751
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,148,818		1,148,818		-		1,171,229		-		-
Direct Financing Leases		2,739,319		2,739,319		-		2,557,608		57,844		57,844
Residential Real Estate		710,118		784,896		-		628,555		1,161		1,161
Installment and Other Consumer		189,018		189,019		-		144,838		218		218
	$	5,780,824	$	5,866,040	$	-	$	5,304,597	$	75,974	$	75,974
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	7,992,362	$	7,996,201	$	1,580,113	$	7,930,142	$	97,721	$	97,721
CRE
Owner-Occupied CRE		155,020		155,020		111,520		266,439		-		-
Commercial Construction, Land Development, and Other Land		4,347,017		4,347,017		820,811		4,350,034		-		-
Other Non Owner-Occupied CRE		76,519		76,519		6,119		25,506		-		-
Direct Financing Leases		813,854		813,854		550,575		739,561		-		-
Residential Real Estate		688,497		688,497		266,217		604,450		7,229		7,229
Installment and Other Consumer		51,090		51,090		20,365		29,137		-		-
	$	14,124,359	$	14,128,198	$	3,355,720	$	13,945,269	$	104,950	$	104,950
Total Impaired Loans/Leases:
C&I	$	8,985,913	$	9,000,189	$	1,580,113	$	8,732,509	$	114,472	$	114,472
CRE
Owner-Occupied CRE		155,020		155,020		111,520		266,439		-		-
Commercial Construction, Land Development, and Other Land		4,347,017		4,347,017		820,811		4,350,033		-		-
Other Non Owner-Occupied CRE		1,225,337		1,225,337		6,119		1,196,735		-		-
Direct Financing Leases		3,553,173		3,553,173		550,575		3,297,169		57,844		57,844
Residential Real Estate		1,398,615		1,473,393		266,217		1,233,005		8,390		8,390
Installment and Other Consumer		240,108		240,109		20,365		173,975		218		218
	$	19,905,183	$	19,994,2388	$	3,355,720	$	19,249,865	$	180,924	$	180,924

Impaired loans/leases for which

no

allowance has been provided have adequate collateral, based on management

’s current estimates.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the

three

months ended

June 30, 2017

and

2016,

respectively, are presented as follows:

	Three Months Ended June 30, 2017						Three Months Ended June 30, 2016
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	$	805,309	$	9,399	$	9,399	$	2,524,056	$	3,519	$	3,519
CRE
Owner-Occupied CRE		-		-		-		121,444		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,160,161		-		-		1,311,540		-		-
Direct Financing Leases		2,560,019		38,949		38,949		1,510,987		19,897		19,897
Residential Real Estate		712,793		-		-		621,354		1,013		1,013
Installment and Other Consumer		173,585		218		218		229,207		-		-
	$	5,411,867	$	48,566	$	48,566	$	6,318,588	$	24,429	$	24,429
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	8,066,702	$	35,055	$	35,055	$	2,292,483	$	-	$	-
CRE
Owner-Occupied CRE		238,584		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		4,348,142		-		-		190,174		-		-
Other Non Owner-Occupied CRE		38,260		-		-		658,220		-		-
Direct Financing Leases		757,602		-		-		995,446		-		-
Residential Real Estate		624,641		2,989		2,989		919,271		1,948		1,948
Installment and Other Consumer		34,333		-		-		218,742		1,468		1,468
	$	14,108,264	$	38,044	$	38,044	$	5,274,336	$	3,416	$	3,416
Total Impaired Loans/Leases:
C&I	$	8,872,011	$	44,454	$	44,454	$	4,816,539	$	3,519	$	3,519
CRE
Owner-Occupied CRE		238,584		-		-		121,444		-		-
Commercial Construction, Land Development, and Other Land		4,348,142		-		-		190,174		-		-
Other Non Owner-Occupied CRE		1,198,421		-		-		1,969,760		-		-
Direct Financing Leases		3,317,621		38,949		38,949		2,506,433		19,897		19,897
Residential Real Estate		1,337,434		2,989		2,989		1,540,625		2,961		2,961
Installment and Other Consumer		207,918		218		218		447,949		1,468		1,468
	$	19,520,131	$	86,610	$	86,610	$	11,592,924	$	27,845	$	27,845

Impaired loans/leases for which

no

allowance has been provided have adequate collateral, based on management

’s current estimates.

Loans/leases, by classes of financing receivable, considered to be impaired as of

December 31, 2016

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	$	841,895	$	951,600	$	-
CRE
Owner-Occupied CRE		-		93,774		-
Commercial Construction, Land Development, and Other Land		-		-		-
Other Non Owner-Occupied CRE		1,196,549		1,196,549		-
Direct Financing Leases		1,690,121		1,690,121		-
Residential Real Estate		853,294		892,495		-
Installment and Other Consumer		55,734		55,734		-
	$	4,637,593	$	4,880,273	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	8,094,556	$	8,098,395	$	1,771,537
CRE
Owner-Occupied CRE		322,148		322,148		57,398
Commercial Construction, Land Development, and Other Land		4,353,819		4,353,817		577,611
Other Non Owner-Occupied CRE		239,600		239,600		58,910
Direct Financing Leases		1,566,141		1,566,143		848,919
Residential Real Estate		807,886		882,018		289,112
Installment and Other Consumer		50,356		50,356		39,481
	$	15,434,506	$	15,512,477	$	3,642,968
Total Impaired Loans/Leases:
C&I	$	8,936,451	$	9,049,995	$	1,771,537
CRE
Owner-Occupied CRE		322,148		415,922		57,398
Commercial Construction, Land Development, and Other Land		4,353,819		4,353,817		577,611
Other Non Owner-Occupied CRE		1,436,149		1,436,149		58,910
Direct Financing Leases		3,256,262		3,256,264		848,919
Residential Real Estate		1,661,180		1,774,513		289,112
Installment and Other Consumer		106,090		106,090		39,481
	$	20,072,099	$	20,392,750	$	3,642,968

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 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, 2017

and

December 31, 2016:

	As of June 30, 2017
			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)	$	904,511,211	$	301,874,401	$	172,442,816	$	622,588,629	$	2,001,417,057		96.48	%
Special Mention (Rating 6)		10,814,298		10,448,915		1,780,000		4,693,909		27,737,122		1.34	%
Substandard (Rating 7)		27,212,910		4,901,739		5,093,211		8,082,503		45,290,363		2.18	%
Doubtful (Rating 8)		-		-		-		-		-		0.00	%
	$	942,538,419	$	317,225,055	$	179,316,027	$	635,365,041	$	2,074,444,542		100.00	%

	As of June 30, 2017
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	149,599,768	$	232,214,292	$	83,686,932	$	465,500,992		98.78	%
Nonperforming		3,736,780		1,656,386		360,471		5,753,637		1.22	%
	$	153,336,548	$	233,870,678	$	84,047,403	$	471,254,629		100.00	%

	As of December 31, 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	%

	As of December 31, 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	%

*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.

As of

June 30, 2017

and

December 31, 2016,

TDRs totaled

$9,083,036

and

$8,647,007,

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, 2017

and

2016.

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, 2017								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		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		1	$	98,119	$	98,119	$	-		-	$	-	$	-	$	-
		1	$	98,119	$	98,119	$	-		1	$	52,286	$	52,286	$	-
CONCESSION - Significant Payment Delay
C&I		1	$	47,509	$	47,509	$	-		1	$	62,140	$	62,140	$	-
Direct Financing Leases		15		802,542		802,542		-		4		494,692		494,692		-
		16	$	850,051	$	850,051	$	-		5	$	556,832	$	556,832	$	-
CONCESSION - Significant Payment Delay
C&I		-	$	-	$	-	$	-		1	$	1,233,740	$	1,233,740	$	-
		-	$	-	$	-	$	-		1	$	1,233,740	$	1,233,740	$	-
TOTAL		17	$	948,170	$	948,170	$	-		7	$	1,842,858	$	1,842,858	$	-

	For the six months ended June 30, 2017								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		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		2		104,382		104,382		-		4		410,653		410,653		-
		2	$	104,382	$	104,382	$	-		5	$	462,939	$	462,939	$	-
CONCESSION - Significant Payment Delay
C&I		3	$	181,198	$	181,198	$	-		1	$	62,140	$	62,140	$	-
Direct Financing Leases		23		1,472,403		1,472,403		-		5		540,631		540,631		-
		26	$	1,653,601	$	1,653,601	$	-		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		28	$	1,757,983	$	1,757,983	$	-		12	$	2,299,450	$	2,299,450	$	-

Of the

TDRs reported above,

none

were on nonaccrual as of

June 30, 2017.

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, 2017,

two

of the Company’s TDRs redefaulted within

12

months subsequent to restructure where default is defined as delinquency of

90

days or more and/or placement on nonaccrual status. These

two

TDRs were related to the same customer and were restructured in the

fourth

quarter of

2016

with pre-modification balances totaling

$195

thousand.

For the

three

and

six

months ended

June 30, 2016,

none

of the Company’s TDRs had redefaulted within

12

months subsequent to restructure.