Note 3 - Loans Leases Receivable

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

3

– LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of

September 30, 2017

and

December 31, 2016

is presented as follows:

	As of September 30,			As of December 31,
	2017			2016
C&I loans***	$	1,034,530,786		$	827,637,263
CRE loans
Owner-occupied CRE		327,144,766			332,387,621
Commercial construction, land development, and other land		168,992,704			165,149,491
Other non owner-occupied CRE		661,718,193			595,921,748
Direct financing leases *		147,062,893			165,419,360
Residential real estate loans **		239,957,916			229,233,104
Installment and other consumer loans		89,605,855			81,665,695
		2,669,013,113			2,397,414,282
Plus deferred loan/lease origination costs, net of fees		7,741,698			8,072,703
		2,676,754,811			2,405,486,985
Less allowance		(34,982,341	)		(30,757,448	)
	$	2,641,772,470		$	2,374,729,537
* Direct financing leases:
Net minimum lease payments to be received	$	162,728,461		$	184,274,802
Estimated unguaranteed residual values of leased assets		1,085,154			1,085,154
Unearned lease/residual income		(16,750,722	)		(19,940,596	)
		147,062,893			165,419,360
Plus deferred lease origination costs, net of fees		4,800,719			5,881,778
		151,863,612			171,301,138
Less allowance		(2,652,758	)		(3,111,898	)
	$	149,210,854		$	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

nine

months ended

September 30, 2017

and

2016.

**Includes residential real estate loans h

eld for sale totaling

$290,320

and

$1,135,500

as of

September 30, 2017,

and

December 31, 2016,

respectively.

*** Includes equipment financing agreements outstanding at

m2

totaling

$60,981,381

and

$38,668,209

as of

September 30, 2017

and

December 31, 2016,

respectively.

Changes in accretable yield for acquired loans were as follows:

	Three months ended September 30, 2017									Nine months ended September 30, 2017
	PCI			Performing						PCI			Performing
	Loans			Loans			Total			Loans			Loans			Total
Balance at the beginning of the period	$	(83,860	)	$	(5,325,471	)	$	(5,409,331	)	$	(194,306	)	$	(9,115,614	)	$	(9,309,920	)
Accretion recognized		25,158			658,547			683,705			135,604			4,448,690			4,584,294
Balance at the end of the period	$	(58,702	)	$	(4,666,924	)	$	(4,725,626	)	$	(58,702	)	$	(4,666,924	)	$	(4,725,626	)

	Three months ended September 30, 2016									Nine months ended September 30, 2016
	PCI			Performing						PCI			Performing
	Loans			Loans			Total			Loans			Loans			Total
Balance at the beginning of the period	$	-		$	-		$	-		$	-		$	-		$	-
Discount added at acquisition		(277,579	)		(11,916,009	)		(12,193,588	)		(277,579	)		(11,916,009	)		(12,193,588	)
Accretion recognized		29,317			366,293			395,610			29,317			366,293			395,610
Balance at the end of the period	$	(248,262	)	$	(11,549,716	)	$	(11,797,978	)	$	(248,262	)	$	(11,549,716	)	$	(11,797,978	)

The aging of the loan/lease portfolio by classe

s of loans/leases as of

September 30, 2017

and

December 31, 2016

is presented as follows:

	As of September 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	$	1,031,800,612		$	1,149,469		$	-		$	12,892		$	1,567,813		$	1,034,530,786
CRE
Owner-Occupied CRE		326,879,997			109,749			-			-			155,020			327,144,766
Commercial Construction, Land Development, and Other Land		164,647,962			-			-			-			4,344,742			168,992,704
Other Non Owner-Occupied CRE		650,410,884			325,464			-			-			10,981,845			661,718,193
Direct Financing Leases		142,413,187			1,558,490			852,844			-			2,238,372			147,062,893
Residential Real Estate		237,860,369			116,095			755,919			307,676			917,857			239,957,916
Installment and Other Consumer		89,153,013			73,731			39,311			102,312			237,488			89,605,855
	$	2,643,166,024		$	3,332,998		$	1,648,074		$	422,880		$	20,443,137		$	2,669,013,113
As a percentage of total loan/lease portfolio		99.03	%		0.12	%		0.06	%		0.02	%		0.77	%		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

September 30, 2017

and

December 31, 2016

are presented as follows:

	As of September 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	$	12,892	$	1,567,813	$	5,298,358	$	6,879,063		24.19	%
CRE
Owner-Occupied CRE		-		155,020		-		155,020		0.55	%
Commercial Construction, Land Development, and Other Land		-		4,344,742		-		4,344,742		15.28	%
Other Non Owner-Occupied CRE		-		10,981,845		-		10,981,845		38.63	%
Direct Financing Leases		-		2,238,372		1,899,707		4,138,079		14.56	%
Residential Real Estate		307,676		917,857		349,538		1,575,071		5.54	%
Installment and Other Consumer		102,312		237,488		15,218		355,018		1.25	%
	$	422,880	$	20,443,137	$	7,562,821	$	28,428,838		100.00	%

*

Nonaccrual loans/leases included

$2,291,666

of TDRs, including

$258,598

in C&I loans,

$1,198,439

in CRE loans,

$607,882

in direct financing leases,

$177,606

in construction loans,

$40,405

in residential real estate loans, and

$8,736

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

nine

months ended

September 30, 2017

and

2016,

respectively, are presented as follows:

	Three Months Ended September 30, 2017
	C&I			CRE		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	14,207,733		$	12,999,233	$	2,638,301		$	2,430,454		$	1,080,911		$	33,356,632
Provisions (credits) charged to expense		469,977			1,349,393		179,190			(11,654	)		99,530			2,086,436
Loans/leases charged off		(338,361	)		-		(268,669	)		(25,822	)		(16,872	)		(649,724	)
Recoveries on loans/leases previously charged off		63,366			10,748		103,936			6,000			4,947			188,997
Balance, ending	$	14,402,715		$	14,359,374	$	2,652,758		$	2,398,978		$	1,168,516		$	34,982,341

	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

	Nine Months Ended September 30, 2017
	C&I			CRE			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 charged to expense		2,345,121			2,655,521			981,877			148,017			84,002			6,214,538
Loans/leases charged off		(630,704	)		(10,375	)		(1,611,432	)		(101,006	)		(40,436	)		(2,393,953	)
Recoveries on loans/leases previously charged off		143,188			43,619			170,415			9,623			37,463			404,308
Balance, ending	$	14,402,715		$	14,359,374		$	2,652,758		$	2,398,978		$	1,168,516		$	34,982,341

	Nine Months Ended September 30, 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		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

The allowance by impairment evaluation and by portfolio

segment as of

September 30, 2017

and

December 31, 2016

is presented as follows:

	As of September 30, 2017
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	1,062,424		$	2,374,308		$	652,775		$	261,097		$	24,487		$	4,375,091
Allowance for nonimpaired loans/leases		13,340,291			11,985,066			1,999,983			2,137,881			1,144,029			30,607,250
	$	14,402,715		$	14,359,374		$	2,652,758		$	2,398,978		$	1,168,516		$	34,982,341
Impaired loans/leases	$	6,567,909		$	15,588,929		$	3,952,190		$	1,328,160		$	191,941		$	27,629,129
Nonimpaired loans/leases		1,027,962,877			1,142,266,734			143,110,703			238,629,756			89,413,914			2,641,383,984
	$	1,034,530,786		$	1,157,855,663		$	147,062,893		$	239,957,916		$	89,605,855		$	2,669,013,113
Allowance as a percentage of impaired loans/leases		16.18	%		15.23	%		16.52	%		19.66	%		12.76	%		15.84	%
Allowance as a percentage of nonimpaired loans/leases		1.30	%		1.05	%		1.40	%		0.90	%		1.28	%		1.16	%
Total allowance as a percentage of total loans/leases		1.39	%		1.24	%		1.80	%		1.00	%		1.30	%		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

nine

months ended

September 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	$	1,414,985	$	1,425,422	$	-	$	1,129,388	$	42,567	$	42,567
CRE
Owner-Occupied CRE		107,322		107,322		-		26,831		6,783		6,783
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,198,439		1,198,439		-		1,178,032		-		-
Direct Financing Leases		2,971,485		2,971,485		-		2,708,433		97,603		97,603
Residential Real Estate		711,098		785,877		-		619,466		1,161		1,161
Installment and Other Consumer		137,704		137,704		-		124,530		-		-
	$	6,541,033	$	6,626,249	$	-	$	5,786,680	$	148,114	$	148,114
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	5,152,924	$	5,156,763	$	1,062,424	$	4,994,557	$	150,848	$	150,848
CRE
Owner-Occupied CRE		155,020		155,020		51,520		238,584		-		-
Commercial Construction, Land Development, and Other Land		4,344,742		4,344,742		818,536		4,348,711		-		-
Other Non Owner-Occupied CRE		9,783,406		9,783,406		1,504,252		2,464,981		-		-
Direct Financing Leases		980,705		980,705		652,775		736,537		-		-
Residential Real Estate		617,062		617,062		261,097		496,243		12,830		12,830
Installment and Other Consumer		54,237		54,237		24,487		33,162		317		317
	$	21,088,096	$	21,091,935	$	4,375,091	$	13,312,775	$	163,995	$	163,995
Total Impaired Loans/Leases:
C&I	$	6,567,909	$	6,582,185	$	1,062,424	$	6,123,945	$	193,415	$	193,415
CRE
Owner-Occupied CRE		262,342		262,342		51,520		265,415		6,783		6,783
Commercial Construction, Land Development, and Other Land		4,344,742		4,344,742		818,536		4,348,711		-		-
Other Non Owner-Occupied CRE		10,981,845		10,981,845		1,504,252		3,643,013		-		-
Direct Financing Leases		3,952,190		3,952,190		652,775		3,444,970		97,603		97,603
Residential Real Estate		1,328,160		1,402,939		261,097		1,115,709		13,991		13,991
Installment and Other Consumer		191,941		191,941		24,487		157,692		317		317
	$	27,629,129	$	27,718,184	$	4,375,091	$	19,099,455	$	312,109	$	312,109

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

September 30, 2017

and

2016,

respectively, are presented as follows:

	Three Months Ended September 30, 2017						Three Months Ended September 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	$	1,301,977	$	25,816	$	25,816	$	1,677,527	$	3,301	$	3,301
CRE
Owner-Occupied CRE		53,661		6,783		6,783		767,032		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,173,629		-		-		1,969,034		-		-
Direct Financing Leases		2,820,518		39,759		39,759		2,008,095		21,095		21,095
Residential Real Estate		690,791		-		-		1,481,340		941		941
Installment and Other Consumer		139,533		-		-		322,738		-		-
	$	6,180,109	$	72,358	$	72,358	$	8,225,766	$	25,337	$	25,337
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	5,157,671	$	53,127	$	53,127	$	4,188,621	$	-	$	-
CRE
Owner-Occupied CRE		155,020		-		-		363,911		-		-
Commercial Construction, Land Development, and Other Land		4,345,880		-		-		187,831		-		-
Other Non Owner-Occupied CRE		4,929,960		-		-		135,141		-		-
Direct Financing Leases		893,042		-		-		793,769		-		-
Residential Real Estate		550,476		5,601		5,601		807,827		1,503		1,503
Installment and Other Consumer		48,164		99		99		160,301		1,458		1,458
	$	16,080,213	$	58,827	$	58,827	$	6,637,401	$	2,961	$	2,961
Total Impaired Loans/Leases:
C&I	$	6,459,648	$	78,943	$	78,943	$	5,866,148	$	3,301	$	3,301
CRE
Owner-Occupied CRE		208,681		6,783		6,783		1,130,943		-		-
Commercial Construction, Land Development, and Other Land		4,345,880		-		-		187,831		-		-
Other Non Owner-Occupied CRE		6,103,589		-		-		2,104,175		-		-
Direct Financing Leases		3,713,560		39,759		39,759		2,801,864		21,095		21,095
Residential Real Estate		1,241,267		5,601		5,601		2,289,167		2,444		2,444
Installment and Other Consumer		187,697		99		99		483,039		1,458		1,458
	$	22,260,322	$	131,185	$	131,185	$	14,863,167	$	28,298	$	28,298

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		4,353,817		4,353,817		577,611
Other Non Owner-Occupied CRE		239,600		239,600		58,910
Direct Financing Leases		1,566,143		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		4,353,817		4,353,817		577,611
Other Non Owner-Occupied CRE		1,436,149		1,436,149		58,910
Direct Financing Leases		3,256,264		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

September 30, 2017

and

December 31, 2016:

	As of September 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)	$	1,000,751,792	$	313,179,076	$	161,772,865	$	639,045,018	$	2,114,748,751		96.45	%
Special Mention (Rating 6)		9,694,041		9,155,153		2,167,999		6,297,895		27,315,088		1.25	%
Substandard (Rating 7)		24,084,953		4,810,537		5,051,840		16,375,280		50,322,610		2.30	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	1,034,530,786	$	327,144,766	$	168,992,704	$	661,718,193	$	2,192,386,449		100.00	%

	As of September 30, 2017
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	142,924,814	$	238,382,845	$	89,250,837	$	470,558,496		98.73	%
Nonperforming		4,138,079		1,575,071		355,018		6,068,168		1.27	%
	$	147,062,893	$	239,957,916	$	89,605,855	$	476,626,664		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

September 30, 2017

and

December 31, 2016,

TDRs totaled

$9,854,487

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

nine

months ended

September 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 September 30, 2017								For the three months ended September 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 - Significant Payment Delay
C&I		4	$	620,452	$	620,452	$	-		-	$	-	$	-	$	-
Direct Financing Leases		4		416,597		416,597		-		2		461,643		461,643		-
		8	$	1,037,049	$	1,037,049	$	-		2	$	461,643	$	461,643	$	-
TOTAL		8	$	1,037,049	$	1,037,049	$	-		2	$	461,643	$	461,643	$	-

	For the nine months ended September 30, 2017								For the nine months ended September 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		7	$	801,650	$	801,650	$	-		1	$	62,140	$	62,140	$	-
Direct Financing Leases		27		1,889,000		1,889,000		-		6		771,672		771,672		-
		34	$	2,690,650	$	2,690,650	$	-		7	$	833,812	$	833,812	$	-
CONCESSION - Interest Rate Adjusted Below Market
CRE - Other		-	$	-	$	-	$	-		1	$	1,233,740	$	1,233,740	$	-
		-	$	-	$	-	$	-		1	$	1,233,740	$	1,233,740	$	-
TOTAL		36	$	2,795,032	$	2,795,032	$	-		13	$	2,530,491	$	2,530,491	$	-

Of the

TDRs reported above,

three

with a post-modification recorded balance of

$139,241

were on nonaccrual as of

September 30, 2017.

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, 2017,

four

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. Two of these TDRs were related to

one

customer whose loans were restructured in the

second

quarter of

2017

with pre-modification balances totaling

$112

thousand and the other

two

TDRs related to another customer whose loans were restructured in the

fourth

quarter of

2016

with pre-modification balances totaling

$195

thousand.

For the

three

and

nine

months ended

September 30, 2016,

none

of the Company’s TDRs had redefaulted within

12

months subsequent to restructure.