Note 3 - Loans Leases Receivable

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Financing Receivables [Text Block]

NOTE

3

– LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of

March 31, 2018

and

December 31, 2017

is presented as follows:

	As of March 31,			As of December 31,
	2018			2017
C&I loans*	$	1,201,085,625		$	1,134,516,315
CRE loans
Owner-occupied CRE		346,996,627			332,742,477
Commercial construction, land development, and other land		171,404,628			186,402,404
Other non owner-occupied CRE		839,302,131			784,347,000
		1,357,703,386			1,303,491,882
Direct financing leases **		137,614,465			141,448,232
Residential real estate loans ***		254,484,231			258,646,265
Installment and other consumer loans		95,911,569			118,610,799
		3,046,799,276			2,956,713,493
Plus deferred loan/lease origination costs, net of fees		8,103,163			7,771,907
		3,054,902,439			2,964,485,400
Less allowance		(36,532,602	)		(34,355,728	)
	$	3,018,369,837		$	2,930,129,672
* Direct financing leases:
Net minimum lease payments to be received	$	152,430,047		$	156,583,887
Estimated unguaranteed residual values of leased assets		929,932			929,932
Unearned lease/residual income		(15,745,514	)		(16,065,587	)
		137,614,465			141,448,232
Plus deferred lease origination costs, net of fees		4,350,767			4,624,027
		141,965,232			146,072,259
Less allowance		(2,730,301	)		(2,382,098	)
	$	139,234,931		$	143,690,161

* Includes equipment financing agreements outstanding at

m2,

totaling

$78,911,791

and

$66,758,397

as of

March 31, 2018

and

December 31, 2017,

respectively.

**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

months ended

March 31, 2018

and

2017.

***Includes residential real estate loans held for sale totaling

$279,750

and

$645,001

as of

March 31, 2018,

and

December 31, 2017,

respectively.

Changes in accretable yield for acquired loans were as follows:

	Three months ended March 31, 2018
	PCI			Performing
	Loans			Loans			Total
Balance at the beginning of the period	$	(191,132	)	$	(6,280,075	)	$	(6,471,207	)
Accretion recognized		34,236			620,532			654,768
Balance at the end of the period	$	(156,896	)	$	(5,659,543	)	$	(5,816,439	)

	Three months ended March 31, 2017
	PCI			Performing
	Loans			Loans			Total
Balance at the beginning of the period	$	(194,306	)	$	(9,115,614	)	$	(9,309,920	)
Accretion recognized		66,690			2,171,540			2,238,230
Balance at the end of the period	$	(127,616	)	$	(6,944,074	)	$	(7,071,690	)

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

March 31, 2018

and

December 31, 2017

is presented as follows:

	As of March 31, 2018
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	$	1,197,675,583		$	1,714,614		$	210,724		$	36,162		$	1,448,542		$	1,201,085,625
CRE
Owner-Occupied CRE		346,524,727			142,587			-			-			329,313			346,996,627
Commercial Construction, Land Development, and Other Land		168,928,348			55,561			568,523			-			1,852,196			171,404,628
Other Non Owner-Occupied CRE		834,328,826			105,223			-			-			4,868,082			839,302,131
Direct Financing Leases		133,012,415			1,196,302			599,350			-			2,806,398			137,614,465
Residential Real Estate		250,956,900			2,304,607			35,457			-			1,187,267			254,484,231
Installment and Other Consumer		95,435,771			190,027			13,806			4,778			267,187			95,911,569
	$	3,026,862,570		$	5,708,921		$	1,427,860		$	40,940		$	12,758,985		$	3,046,799,276
As a percentage of total loan/lease portfolio		99.34	%		0.19	%		0.05	%		0.00	%		0.42	%		100.00	%

	As of December 31, 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	$	1,124,734,486		$	8,306,829		$	243,647		$	-		$	1,231,353		$	1,134,516,315
CRE
Owner-Occupied CRE		331,868,142			540,435			-			-			333,900			332,742,477
Commercial Construction, Land Development, and Other Land		181,558,092			-			-			-			4,844,312			186,402,404
Other Non Owner-Occupied CRE		782,526,249			572,877			4,146			-			1,243,728			784,347,000
Direct Financing Leases		137,708,397			1,305,191			259,600			-			2,175,044			141,448,232
Residential Real Estate		253,261,821			3,552,709			393,410			74,519			1,363,806			258,646,265
Installment and Other Consumer		117,773,259			517,537			56,760			14,152			249,091			118,610,799
	$	2,929,430,446		$	14,795,578		$	957,563		$	88,671		$	11,441,234		$	2,956,713,493
As a percentage of total loan/lease portfolio		99.08	%		0.50	%		0.03	%		0.00	%		0.39	%		100.00	%

NPLs by classes of loans/leases as of

March 31, 2018

and

December 31, 2017

are presented as follows:

	As of March 31, 2018
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	36,162	$	1,448,542	$	4,714,450	$	6,199,154		34.29	%
CRE
Owner-Occupied CRE		-		329,313		107,322		436,635		2.42	%
Commercial Construction, Land Development, and Other Land		-		1,852,196		-		1,852,196		10.25	%
Other Non Owner-Occupied CRE		-		4,868,082		-		4,868,082		26.93	%
Direct Financing Leases		-		2,806,398		169,198		2,975,596		16.46	%
Residential Real Estate		-		1,187,267		271,694		1,458,961		8.07	%
Installment and Other Consumer		4,778		267,187		12,828		284,793		1.58	%
	$	40,940	$	12,758,985	$	5,275,492	$	18,075,417		100.00	%

*Nonaccrual loans/leases included

$2,637,483

of TDRs, including

$25,984

in C&I loans,

$1,312,469

in CRE loans,

$1,208,050

in direct financing leases,

$84,555

in residential real estate loans, and

$6,425

in installment loans.

	As of December 31, 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	$	-	$	1,231,353	$	5,224,182	$	6,455,535		34.63	%
CRE
Owner-Occupied CRE		-		333,900		107,322		441,222		2.37	%
Commercial Construction, Land Development, and Other Land		-		4,844,312		-		4,844,312		25.99	%
Other Non Owner-Occupied CRE		-		1,243,728		-		1,243,728		6.67	%
Direct Financing Leases		-		2,175,044		1,494,448		3,669,492		19.68	%
Residential Real Estate		74,519		1,363,806		272,493		1,710,818		9.18	%
Installment and Other Consumer		14,152		249,091		14,027		277,270		1.49	%
	$	88,671	$	11,441,234	$	7,112,472	$	18,642,377		100.00	%

**Nonaccrual loans/leases included

$2,282,495

of TDRs, including

$122,598

in C&I loans,

$1,336,871

in CRE loans,

$700,255

in direct financing leases,

$115,190

in residential real estate loans, and

$7,581

in installment loans.

Changes in the allowance by portfolio segment for the

three

months ended

March 31, 2018

and

2017,

respectively, are presented as follows:

	Three Months Ended March 31, 2018
	C&I			CRE		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	14,323,036		$	13,962,688	$	2,382,098		$	2,466,431		$	1,221,475		$	34,355,728
Provisions (credits) charged to expense		808,161			965,383		604,783			(39,337	)		200,849			2,539,839
Loans/leases charged off		(95,499	)		-		(283,887	)		(52,325	)		(4,747	)		(436,458	)
Recoveries on loans/leases previously charged off		29,547			9,949		27,307			450			6,240			73,493
Balance, ending	$	15,065,245		$	14,938,020	$	2,730,301		$	2,375,219		$	1,423,817		$	36,532,602

	Three Months Ended March 31, 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		593,359			966,271		505,015			43,520			(3,056	)		2,105,109
Loans/leases charged off		(218,273	)		-		(658,684	)		(13,623	)		(2,046	)		(892,626	)
Recoveries on loans/leases previously charged off		33,894			6,386		20,031			3,623			25,285			89,219
Balance, ending	$	12,954,090		$	12,643,266	$	2,978,260		$	2,375,864		$	1,107,670		$	32,059,150

The allowance by impairment evaluation and by portfolio segment as of

March 31, 2018

and

December 31, 2017

is presented as follows:

	As of March 31, 2018
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	567,321		$	1,670,897		$	628,379		$	248,592		$	112,177		$	3,227,366
Allowance for nonimpaired loans/leases		14,497,924			13,267,123			2,101,922			2,126,627			1,311,640			33,305,236
	$	15,065,245		$	14,938,020		$	2,730,301		$	2,375,219		$	1,423,817		$	36,532,602
Impaired loans/leases	$	6,010,688		$	7,094,483		$	2,975,596		$	1,556,817		$	281,197		$	17,918,781
Nonimpaired loans/leases		1,195,074,937			1,350,608,903			134,638,869			252,927,414			95,630,372			3,028,880,495
	$	1,201,085,625		$	1,357,703,386		$	137,614,465		$	254,484,231		$	95,911,569		$	3,046,799,276
Allowance as a percentage of impaired loans/leases		9.44	%		23.55	%		21.12	%		15.97	%		39.89	%		18.01	%
Allowance as a percentage of nonimpaired loans/leases		1.21	%		0.98	%		1.56	%		0.84	%		1.37	%		1.10	%
Total allowance as a percentage of total loans/leases		1.25	%		1.10	%		1.98	%		0.93	%		1.48	%		1.20	%

	As of December 31, 2017
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	715,627		$	1,429,460		$	504,469		$	355,167		$	38,596		$	3,043,319
Allowance for nonimpaired loans/leases		13,607,409			12,533,228			1,877,629			2,111,264			1,182,879			31,312,409
	$	14,323,036		$	13,962,688		$	2,382,098		$	2,466,431		$	1,221,475		$	34,355,728
Impaired loans/leases	$	6,248,209		$	6,529,262		$	3,669,492		$	1,704,846		$	202,354		$	18,354,163
Nonimpaired loans/leases		1,128,268,106			1,296,962,620			137,778,740			256,941,419			118,408,445			2,938,359,330
	$	1,134,516,315		$	1,303,491,882		$	141,448,232		$	258,646,265		$	118,610,799		$	2,956,713,493
Allowance as a percentage of impaired loans/leases		11.45	%		21.89	%		13.75	%		20.83	%		19.07	%		16.58	%
Allowance as a percentage of nonimpaired loans/leases		1.21	%		0.97	%		1.36	%		0.82	%		1.00	%		1.07	%
Total allowance as a percentage of total loans/leases		1.26	%		1.07	%		1.68	%		0.95	%		1.03	%		1.16	%

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

three

months ended

March 31, 2018

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	$	5,038,888	$	5,053,164	$	-	$	5,297,775	$	75,406	$	75,406
CRE
Owner-Occupied CRE		289,261		289,261		-		289,261		5,822		5,822
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,227,579		1,227,579		-		1,235,654		-		-
Direct Financing Leases		1,927,663		1,927,663		-		2,355,745		6,291		6,291
Residential Real Estate		911,804		986,583		-		884,441		-		-
Installment and Other Consumer		140,857		140,857		-		120,043		-		-
	$	9,536,052	$	9,625,107	$	-	$	10,182,919	$	87,519	$	87,519
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	957,524	$	957,524	$	567,321	$	824,536	$	1,983	$	1,983
CRE
Owner-Occupied CRE		147,375		147,375		43,875		149,669		-		-
Commercial Construction, Land Development, and Other Land		5,430,268		5,430,268		1,627,022		5,137,290		-		-
Other Non Owner-Occupied CRE		-		-		-		-		-		-
Direct Financing Leases		1,047,933		1,047,933		628,379		962,961		-		-
Residential Real Estate		547,158		570,234		248,592		544,558		2,934		2,934
Installment and Other Consumer		140,340		140,340		112,177		128,285		83		83
	$	8,270,598	$	8,293,674	$	3,227,366	$	7,747,299	$	5,000	$	5,000
Total Impaired Loans/Leases:
C&I	$	5,996,412	$	6,010,688	$	567,321	$	6,122,311	$	77,389	$	77,389
CRE
Owner-Occupied CRE		436,636		436,636		43,875		438,930		5,822		5,822
Commercial Construction, Land Development, and Other Land		5,430,268		5,430,268		1,627,022		5,137,290		-		-
Other Non Owner-Occupied CRE		1,227,579		1,227,579		-		1,235,654		-		-
Direct Financing Leases		2,975,596		2,975,596		628,379		3,318,706		6,291		6,291
Residential Real Estate		1,458,962		1,556,817		248,592		1,428,999		2,934		2,934
Installment and Other Consumer		281,197		281,197		112,177		248,328		83		83
	$	17,806,650	$	17,918,781	$	3,227,366	$	17,930,218	$	92,519	$	92,519

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

March 31, 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	$	835,955	$	846,392	$	-	$	927,387	$	7,352	$	7,352
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,174,260		1,174,260		-		1,183,813		-		-
Direct Financing Leases		1,593,104		1,593,104		-		1,868,355		18,895		18,895
Residential Real Estate		1,147,434		1,222,215		-		1,025,656		1,161		1,161
Installment and Other Consumer		175,957		175,957		-		115,846		-		-
	$	4,926,710	$	5,011,928	$	-	$	5,121,057	$	27,408	$	27,408
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	8,352,499	$	8,356,338	$	1,751,774	$	8,110,658	$	62,666	$	62,666
CRE
Owner-Occupied CRE		322,148		322,148		57,398		322,148		-		-
Commercial Construction, Land Development, and Other Land		4,349,267		4,349,267		823,061		4,351,542		-		-
Other Non Owner-Occupied CRE		78,386		78,386		7,986		39,193		-		-
Direct Financing Leases		1,488,964		1,488,964		795,840		1,300,811		-		-
Residential Real Estate		633,340		633,340		274,566		636,134		4,240		4,240
Installment and Other Consumer		48,770		48,770		37,932		49,563		112		112
	$	15,273,374	$	15,277,213	$	3,748,557	$	14,810,049	$	67,018	$	67,018
Total Impaired Loans/Leases:
C&I	$	9,188,454	$	9,202,730	$	1,751,774	$	9,038,045	$	70,018	$	70,018
CRE
Owner-Occupied CRE		322,148		322,148		57,398		322,148		-		-
Commercial Construction, Land Development, and Other Land		4,349,267		4,349,267		823,061		4,351,542		-		-
Other Non Owner-Occupied CRE		1,252,646		1,252,646		7,986		1,223,006		-		-
Direct Financing Leases		3,082,068		3,082,068		795,840		3,169,166		18,895		18,895
Residential Real Estate		1,780,774		1,855,555		274,566		1,661,790		5,401		5,401
Installment and Other Consumer		224,727		224,727		37,932		165,409		112		112
	$	20,200,084	$	20,289,141	$	3,748,557	$	19,931,106	$	94,426	$	94,426

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, 2017

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	$	1,634,269	$	1,644,706	$	-
CRE
Owner-Occupied CRE		289,261		289,261		-
Commercial Construction, Land Development, and Other Land		-		-		-
Other Non Owner-Occupied CRE		1,171,565		1,171,565		-
Direct Financing Leases		2,944,540		2,944,540		-
Residential Real Estate		943,388		1,018,167		-
Installment and Other Consumer		134,245		134,245		-
	$	7,117,268	$	7,202,484	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,613,940	$	4,617,879	$	715,627
CRE
Owner-Occupied CRE		151,962		151,962		48,462
Commercial Construction, Land Development, and Other Land		4,844,312		4,844,312		1,379,235
Other Non Owner-Occupied CRE		72,163		72,163		1,763
Direct Financing Leases		724,953		724,953		504,469
Residential Real Estate		761,458		761,458		355,167
Installment and Other Consumer		68,109		68,109		38,596
	$	11,236,897	$	11,240,836	$	3,043,319
Total Impaired Loans/Leases:
C&I	$	6,248,209	$	6,262,585	$	715,627
CRE
Owner-Occupied CRE		441,222		441,222		48,462
Commercial Construction, Land Development, and Other Land		4,844,312		4,844,312		1,379,235
Other Non Owner-Occupied CRE		1,243,728		1,243,728		1,763
Direct Financing Leases		3,669,492		3,669,492		504,469
Residential Real Estate		1,704,846		1,779,625		355,167
Installment and Other Consumer		202,354		202,354		38,596
	$	18,354,163	$	18,443,318	$	3,043,319

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 certain C&I loans (equipment financing agreements), 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

March 31, 2018

and

December 31, 2017:

	As of March 31, 2018
			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)	$	1,079,132,775	$	337,628,357	$	166,752,090	$	813,622,461	$	2,397,135,683		96.66	%
Special Mention (Rating 6)		20,327,365		5,576,201		1,780,000		15,242,642		42,926,208		1.73	%
Substandard (Rating 7)		22,713,694		3,792,069		2,872,538		10,437,028		39,815,329		1.61	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	1,122,173,834	$	346,996,627	$	171,404,628	$	839,302,131	$	2,479,877,220		100.00	%

	As of March 31, 2018
Delinquency Status *	C&I		Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	77,987,539	$	134,638,869	$	253,025,270	$	95,626,776	$	561,278,454		99.00	%
Nonperforming		924,252		2,975,596		1,458,961		284,793		5,643,602		1.00	%
	$	78,911,791	$	137,614,465	$	254,484,231	$	95,911,569	$	566,922,056		100.00	%

	As of December 31, 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)	$	1,031,963,703	$	318,293,608	$	179,142,839	$	767,119,909	$	2,296,520,059		96.85	%
Special Mention (Rating 6)		10,944,924		8,230,060		1,780,000		10,068,870		31,023,854		1.31	%
Substandard (Rating 7)		24,578,731		6,218,809		5,479,565		7,158,221		43,435,326		1.83	%
Doubtful (Rating 8)		270,559		-		-		-		270,559		0.01	%
	$	1,067,757,917	$	332,742,477	$	186,402,404	$	784,347,000	$	2,371,249,799		100.00	%

	As of December 31, 2017
Delinquency Status *	C&I		Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	65,847,177	$	137,778,740	$	256,935,448	$	118,333,529	$	578,894,894		98.88	%
Nonperforming		911,220		3,669,492		1,710,818		277,270		6,568,800		1.12	%
	$	66,758,397	$	141,448,232	$	258,646,266	$	118,610,799	$	585,463,694		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

March 31, 2018

and

December 31, 2017,

TDRs totaled

$7,912,975

and

$9,394,967,

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

months ended

March 31, 2018

and

2017.

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 March 31, 2018								For the three months ended March 31, 2017
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		-	$	-	$	-	$	-		2	$	133,689	$	133,689	$	-
Residential Real Estate		1		46,320		46,320		-		-		-		-		-
Direct Financing Leases		2		47,524		47,524		-		8		669,861		669,861		-
		3	$	93,844	$	93,844	$	-		10	$	803,550	$	803,550	$	-
CONCESSION - Extension of Maturity
Direct Financing Leases		-	$	-	$	-	$	-		1	$	6,263	$	6,263	$	-
		-	$	-	$	-	$	-		1	$	6,263	$	6,263	$	-
TOTAL		3	$	93,844	$	93,844	$	-		11	$	809,813	$	809,813	$	-

Of the TDRs reported above,

one

with a post-modification recorded balance of

$46,320

was on nonaccrual as of

March 31, 2018.

Of the TDRs reported above,

none

were on nonaccrual as of

March 31, 2017.

For the

three

months ended

March 31, 2018,

eight

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. Three of these TDRs were related to

one

customer whose loans were restructured in the

second

quarter of

2017

with pre-modification balances totaling

$78

thousand and the other TDRs related to other customers whose loans were restructured in the

second

and

third

quarters of

2017

with pre-modification balances totaling

$378

thousand.

For the

three

months ended

March 31, 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.