NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2018 and December 31, 2017 is presented as follows:


	As of		As of
	June 30,		December 31,
	2018		2017

C&I loans*	$	1,273,000,094	$	1,134,516,315
CRE loans
Owner-occupied CRE		349,007,830		332,742,477
Commercial construction, land development, and other land		162,644,566		186,402,404
Other non owner-occupied CRE		837,666,518		784,347,000
		1,349,318,914		1,303,491,882
Direct financing leases **		133,196,613		141,448,232
Residential real estate loans ***		257,433,713		258,646,265
Installment and other consumer loans		92,952,124		118,610,799
		3,105,901,458		2,956,713,493
Plus deferred loan/lease origination costs, net of fees		8,890,965		7,771,907
		3,114,792,423		2,964,485,400
Less allowance		(37,545,076)		(34,355,728)
	$	3,077,247,347	$	2,930,129,672
** Direct financing leases:
Net minimum lease payments to be received	$	147,388,211	$	156,583,887
Estimated unguaranteed residual values of leased assets		929,932		929,932
Unearned lease/residual income		(15,121,530)		(16,065,587)
		133,196,613		141,448,232
Plus deferred lease origination costs, net of fees		4,159,711		4,624,027
		137,356,324		146,072,259
Less allowance		(2,724,355)		(2,382,098)
	$	134,631,969	$	143,690,161

* Includes equipment financing agreements outstanding at m2, totaling $92,815,742 and $66,758,397 as of June 30, 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 and six months ended June 30, 2018 and 2017.

*** Includes residential real estate loans held for sale totaling $1,033,700 and $645,001 as of June 30, 2018, and December 31, 2017, respectively.

Changes in accretable yield for acquired loans were as follows:


	Three months ended June 30, 2018						Six months ended June 30, 2018
	PCI		Performing				PCI		Performing
	Loans		Loans		Total		Loans		Loans		Total
Balance at the beginning of the period	$	(156,896)	$	(5,659,543)	$	(5,816,439)	$	(191,132)	$	(6,280,075)	$	(6,471,207)
Accretion recognized		14,848		608,119		622,967		49,084		1,228,651		1,277,735
Balance at the end of the period	$	(142,048)	$	(5,051,424)	$	(5,193,472)	$	(142,048)	$	(5,051,424)	$	(5,193,472)


	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 classes of loans/leases as of June 30, 2018 and December 31, 2017 is presented as follows:


	As of June 30, 2018
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total

C&I	$	1,270,508,073		$	602,885		$	403,841		$	—		$	1,485,295		$	1,273,000,094
CRE
Owner-Occupied CRE		348,357,289			228,703			—			—			421,838			349,007,830
Commercial Construction, Land Development, and Other Land		158,999,305			1,758,740			—			—			1,886,521			162,644,566
Other Non Owner-Occupied CRE		832,861,572			91,345			—			—			4,713,601			837,666,518
Direct Financing Leases		129,115,766			1,019,243			532,600			—			2,529,004			133,196,613
Residential Real Estate		254,927,412			374,480			816,670			—			1,315,151			257,433,713
Installment and Other Consumer		92,086,640			588,332			55,189			19,573			202,390			92,952,124
	$	3,086,856,057		$	4,663,728		$	1,808,300		$	19,573		$	12,553,800		$	3,105,901,458

As a percentage of total loan/lease portfolio		99.39	%		0.15	%		0.06	%		0.00	%		0.40	%		100.00	%


	As of December 31, 2017
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			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 June 30, 2018 and December 31, 2017 are presented as follows:


	As of June 30, 2018
	Accruing Past
	Due 90 Days or		Nonaccrual						Percentage of
Classes of Loans/Leases	More		Loans/Leases*		Accruing TDRs		Total NPLs		Total NPLs

C&I	$	—	$	1,485,295	$	800,176	$	2,285,471	16.44	%
CRE
Owner-Occupied CRE		—		421,838		106,874		528,712	3.80	%
Commercial Construction, Land Development, and Other Land		—		1,886,521		—		1,886,521	13.57	%
Other Non Owner-Occupied CRE		—		4,713,601		—		4,713,601	33.92	%
Direct Financing Leases		—		2,529,004		137,432		2,666,436	19.18	%
Residential Real Estate		—		1,315,151		270,903		1,586,054	11.41	%
Installment and Other Consumer		19,573		202,390		11,623		233,586	1.68	%
	$	19,573	$	12,553,800	$	1,327,008	$	13,900,381	100.00	%

* Nonaccrual loans/leases included $1,841,006 of TDRs, including $66,021 in C&I loans, $1,066,701 in CRE loans, $619,727 in direct financing leases, $83,287 in residential real estate loans, and $5,270 in installment loans.


	As of December 31, 2017
	Accruing Past
	Due 90 Days or		Nonaccrual						Percentage of
Classes of Loans/Leases	More		Loans/Leases **		Accruing TDRs		Total NPLs		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 and six months ended June 30, 2018 and 2017, respectively, are presented as follows:


	Three Months Ended June 30, 2018
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		Other Consumer		Total

Balance, beginning	$	15,065,245	$	14,938,020	$	2,730,301	$	2,375,219	$	1,423,817	$	36,532,602
Provisions (credits) charged to expense		777,013		871,475		687,908		57,283		(92,944)		2,300,735
Loans/leases charged off		(728,890)		—		(794,299)		—		(1,086)		(1,524,275)
Recoveries on loans/leases previously charged off		120,503		9,545		100,445		600		4,921		236,014
Balance, ending	$	15,233,871	$	15,819,040	$	2,724,355	$	2,433,102	$	1,334,708	$	37,545,076


	Three Months Ended June 30, 2017
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		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


	Six Months Ended June 30, 2018
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		Other Consumer		Total

Balance, beginning	$	14,323,036	$	13,962,688	$	2,382,098	$	2,466,431	$	1,221,475	$	34,355,728
Provisions charged to expense		1,585,174		1,836,858		1,292,691		17,946		107,905		4,840,574
Loans/leases charged off		(824,389)		—		(1,078,186)		(52,325)		(5,833)		(1,960,733)
Recoveries on loans/leases previously charged off		150,050		19,494		127,752		1,050		11,161		309,507
Balance, ending	$	15,233,871	$	15,819,040	$	2,724,355	$	2,433,102	$	1,334,708	$	37,545,076


	Six Months Ended June 30, 2017
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		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

The allowance by impairment evaluation and by portfolio segment as of June 30, 2018 and December 31, 2017 is presented as follows:


	As of June 30, 2018
							Direct Financing			Residential Real			Installment and
	C&I			CRE			Leases			Estate			Other Consumer			Total

Allowance for impaired loans/leases	$	308,091		$	2,109,374		$	375,803		$	239,419		$	106,878		$	3,139,565
Allowance for nonimpaired loans/leases		14,925,780			13,709,666			2,348,552			2,193,683			1,227,830			34,405,511
	$	15,233,871		$	15,819,040		$	2,724,355		$	2,433,102		$	1,334,708		$	37,545,076

Impaired loans/leases	$	1,551,445		$	6,967,425		$	2,529,004		$	1,449,866		$	214,655		$	12,712,395
Nonimpaired loans/leases		1,271,448,649			1,342,351,489			130,667,609			255,983,847			92,737,469			3,093,189,063
	$	1,273,000,094		$	1,349,318,914		$	133,196,613		$	257,433,713		$	92,952,124		$	3,105,901,458

Allowance as a percentage of impaired loans/leases		19.86	%		30.27	%		14.86	%		16.51	%		49.79	%		24.70	%
Allowance as a percentage of nonimpaired loans/leases		1.17	%		1.02	%		1.80	%		0.86	%		1.32	%		1.11	%
Total allowance as a percentage of total loans/leases		1.20	%		1.17	%		2.05	%		0.95	%		1.44	%		1.21	%


	As of December 31, 2017
							Direct Financing			Residential Real			Installment and
	C&I			CRE			Leases			Estate			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 six months ended June 30, 2018 are presented as follows:


											Interest Income
							Average				Recognized for
	Recorded		Unpaid Principal		Related		Recorded		Interest Income		Cash Payments
Classes of Loans/Leases	Investment		Balance		Allowance		Investment		Recognized		Received

Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	1,159,577	$	1,173,853	$	—	$	1,465,402	$	138,543	$	138,543
CRE
Owner-Occupied CRE		288,813		288,813		—		289,112		11,690		11,690
Commercial Construction, Land Development, and Other Land		—		—		—		—		—		—
Other Non Owner-Occupied CRE		982,428		982,428		—		1,151,245		—		—
Direct Financing Leases		1,903,173		1,903,173		—		2,551,149		9,292		9,292
Residential Real Estate		941,520		1,016,299		—		904,898		—		—
Installment and Other Consumer		99,814		99,814		—		95,448		—		—
	$	5,375,325	$	5,464,380	$	—	$	6,457,254	$	159,525	$	159,525

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	391,868	$	391,868	$	308,091	$	327,859	$	—	$	—
CRE
Owner-Occupied CRE		142,788		142,788		39,288		147,375		—		—
Commercial Construction, Land Development, and Other Land		5,553,396		5,553,396		2,070,086		5,275,992		—		—
Other Non Owner-Occupied CRE		—		—		—		—		—		—
Direct Financing Leases		625,831		625,831		375,803		521,142		—		—
Residential Real Estate		508,346		531,422		239,419		522,134		5,893		5,893
Installment and Other Consumer		114,841		114,841		106,878		109,254		159		159
	$	7,337,070	$	7,360,146	$	3,139,565	$	6,903,756	$	6,052	$	6,052

Total Impaired Loans/Leases:
C&I	$	1,551,445	$	1,565,721	$	308,091	$	1,793,261	$	138,543	$	138,543
CRE
Owner-Occupied CRE		431,601		431,601		39,288		436,487		11,690		11,690
Commercial Construction, Land Development, and Other Land		5,553,396		5,553,396		2,070,086		5,275,992		—		—
Other Non Owner-Occupied CRE		982,428		982,428		—		1,151,245		—		—
Direct Financing Leases		2,529,004		2,529,004		375,803		3,072,291		9,292		9,292
Residential Real Estate		1,449,866		1,547,721		239,419		1,427,032		5,893		5,893
Installment and Other Consumer		214,655		214,655		106,878		204,702		159		159
	$	12,712,395	$	12,824,526	$	3,139,565	$	13,361,010	$	165,577	$	165,577

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, 2018 and 2017, respectively, are presented as follows:


	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017
					Interest Income						Interest Income
	Average				Recognized for		Average				Recognized for
	Recorded		Interest Income		Cash Payments		Recorded		Interest Income		Cash Payments
Classes of Loans/Leases	Investment		Recognized		Received		Investment		Recognized		Received

Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	1,400,498	$	59,176	$	59,176	$	805,309	$	9,399	$	9,399
CRE
Owner-Occupied CRE		289,036		5,868		5,868		—		—		—
Commercial Construction, Land Development, and Other Land		—		—		—		—		—		—
Other Non Owner-Occupied CRE		1,105,004		—		—		1,160,161		—		—
Direct Financing Leases		2,198,852		2,544		2,544		2,560,019		38,949		38,949
Residential Real Estate		928,809		—		—		712,793		—		—
Installment and Other Consumer		101,582		—		—		173,585		218		218
	$	6,023,781	$	67,588	$	67,588	$	5,411,867	$	48,566	$	48,566

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	353,153	$	1,978	$	1,978	$	8,066,702	$	35,055	$	35,055
CRE
Owner-Occupied CRE		145,082		—		—		238,584		—		—
Commercial Construction, Land Development, and Other Land		5,491,832		—		—		4,348,142		—		—
Other Non Owner-Occupied CRE		—		—		—		38,260		—		—
Direct Financing Leases		566,063		—		—		757,602		—		—
Residential Real Estate		512,222		2,959		2,959		624,641		2,989		2,989
Installment and Other Consumer		116,887		76		76		34,333		—		—
	$	7,185,239	$	5,014	$	5,014	$	14,108,264	$	38,044	$	38,044

Total Impaired Loans/Leases:
C&I	$	1,753,651	$	61,154	$	61,154	$	8,872,011	$	44,454	$	44,454
CRE
Owner-Occupied CRE		434,118		5,868		5,868		238,584		—		—
Commercial Construction, Land Development, and Other Land		5,491,832		—		—		4,348,142		—		—
Other Non Owner-Occupied CRE		1,105,004		—		—		1,198,421		—		—
Direct Financing Leases		2,764,915		2,544		2,544		3,317,621		38,949		38,949
Residential Real Estate		1,441,031		2,959		2,959		1,337,434		2,989		2,989
Installment and Other Consumer		218,469		76		76		207,918		218		218
	$	13,209,020	$	72,602	$	72,602	$	19,520,131	$	86,610	$	86,610

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:


			Unpaid
	Recorded		Principal		Related
Classes of Loans/Leases	Investment		Balance		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 June 30, 2018 and December 31, 2017:


	As of June 30, 2018
			CRE
					Non Owner-Occupied
					Commercial
					Construction,
					Land
			Owner-Occupied		Development,						As a % of
Internally Assigned Risk Rating	C&I		CRE		and Other Land		Other CRE		Total		Total

Pass (Ratings 1 through 5)	$	1,135,035,263	$	342,518,625	$	160,224,065	$	805,031,050	$	2,442,809,003	96.57	%
Special Mention (Rating 6)		29,414,324		3,984,113		—		10,804,187		44,202,624	1.75	%
Substandard (Rating 7)		15,734,765		2,505,092		2,420,501		21,831,281		42,491,639	1.68	%
Doubtful (Rating 8)		—		—		—		—		—	—	%
	$	1,180,184,352	$	349,007,830	$	162,644,566	$	837,666,518	$	2,529,503,266	100.00	%


	As of June 30, 2018
			Direct Financing		Residential Real		Installment and				As a % of
Delinquency Status *	C&I		Leases		Estate		Other Consumer		Total		Total

Performing	$	92,361,366	$	130,530,177	$	255,847,659	$	92,718,538	$	571,457,740	99.14	%
Nonperforming		454,376		2,666,436		1,586,054		233,586		4,940,452	0.86	%
	$	92,815,742	$	133,196,613	$	257,433,713	$	92,952,124	$	576,398,192	100.00	%


	As of December 31, 2017
			CRE
					Non Owner-Occupied
					Commercial
					Construction,
					Land
			Owner-Occupied		Development,						As a % of
Internally Assigned Risk Rating	C&I		CRE		and Other Land		Other CRE		Total		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
			Direct Financing		Residential Real		Installment and				As a % of
Delinquency Status *	C&I		Leases		Estate		Other Consumer		Total		Total

Performing	$	65,847,177	$	137,778,740	$	256,935,447	$	118,333,529	$	578,894,893	98.88	%
Nonperforming		911,220		3,669,492		1,710,818		277,270		6,568,800	1.12	%
	$	66,758,397	$	141,448,232	$	258,646,265	$	118,610,799	$	585,463,693	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, 2018 and December 31, 2017, TDRs totaled $3,168,014 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 and six months ended June 30, 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. No loans were restructured during the three months ended June 30, 2018.


	For the three months ended June 30, 2018							For the three months ended June 30, 2017
		Pre-		Post-					Pre-		Post-
		Modification		Modification					Modification		Modification
	Number of	Recorded		Recorded		Specific		Number of	Recorded		Recorded		Specific
Classes of Loans/Leases	Loans / Leases	Investment		Investment		Allowance		Loans / Leases	Investment		Investment		Allowance

CONCESSION - Significant Payment Delay
C&I	—	$	—	$	—	$	—	1	$	47,509	$	47,509	$	—
Direct Financing Leases	—		—		—		—	15		802,542		802,542		—
	—	$	—	$	—	$	—	16	$	850,051	$	850,051	$	—

CONCESSION - Extension of Maturity
Direct Financing Leases	—	$	—	$	—	$	—	1	$	98,119	$	98,119	$	—
	—	$	—	$	—	$	—	1	$	98,119	$	98,119	$	—

TOTAL	—	$	—	$	—	$	—	17	$	948,170	$	948,170	$	—


	For the six months ended June 30, 2018							For the six months ended June 30, 2017
		Pre-		Post-					Pre-		Post-
		Modification		Modification					Modification		Modification
	Number of	Recorded		Recorded		Specific		Number of	Recorded		Recorded		Specific
Classes of Loans/Leases	Loans/Leases	Investment		Investment		Allowance		Loans/Leases	Investment		Investment		Allowance

CONCESSION - Extension of Maturity
Direct Financing Leases	—		—		—		—	2		104,382		104,382		—
	—	$	—	$	—	$	—	2	$	104,382	$	104,382	$	—

CONCESSION - Significant Payment Delay
C&I	—	$	—	$	—	$	—	3	$	181,198	$	181,198	$	—
Real Estate	1		46,320		46,320		—	—		—		—
Direct Financing Leases	2		47,524		47,524		—	23		1,472,403		1,472,403		—
	3	$	93,844	$	93,844	$	—	26	$	1,653,601	$	1,653,601	$	—

TOTAL	3	$	93,844	$	93,844	$	—	28	$	1,757,983	$	1,757,983	$	—

Of the TDRs reported above, one with a post-modification recorded balance of $46,320 was on nonaccrual as of June 30, 2018. Of the TDRs reported above, none were on nonaccrual as of June 30, 2017.

For the three and six months ended June 30, 2018, seven 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 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.

Not included in the table above, the Company had 8 TDRs that were restructured and charged off in 2018, totaling $577,377. The Company had 2 TDRs that were restructured and charged off in 2017, totaling $65,623.