Note 5 - Premises and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment Disclosure [Text Block]

Note

Premises and Equipment

The following summarizes the components of premises and equipment as of

December 31,

2017

and

2016:

	2017		2016

Land	$	13,466,930	$	12,936,223
Buildings (useful lives 15 to 50 years)		53,633,788		51,546,499
Furniture and equipment (useful lives 3 to 10 years)		31,984,631		28,458,946
Premises and equipment		99,085,349		92,941,668
Less accumulated depreciation		36,247,094		32,298,160
Premises and equipment, net	$	62,838,255	$	60,643,508

Certain facilities are leased under operating leases. Rental expense was

$348,467,

$334,977,

and

$339,839

for the years ended

December 31, 2017,

2016,

and

2015,

respectively.

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

December 31,

2017:

Year ending December 31:
2018		363,791
2019		355,727
2020		259,798
2021		159,708
2022		91,969
Thereafter		62,858
	$	1,293,851

During

2016,

the Company entered into a material related party transaction with a

n 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

was estimated at

$3.7

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

$2.2

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

December 31, 2017,

the project was complete and there was

outstanding commitment remaining.