Note 5 - Premises and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment Disclosure [Text Block]

Note 5. Premises and Equipment

The following summarizes the components of premises and equipment as of December 31, 2018 and 2017:


	2018		2017

Land	$	15,581,430	$	13,466,930
Buildings (useful lives 15 to 50 years)		64,299,322		53,633,788
Furniture and equipment (useful lives 3 to 10 years)		36,399,218		31,984,631
Premises and equipment		116,279,970		99,085,349
Less accumulated depreciation		40,697,852		36,247,094
Premises and equipment, net	$	75,582,118	$	62,838,255

Certain facilities are leased under operating leases. Rental expense was $555,436, $348,467, and $334,977 for the years ended December 31, 2018, 2017, and 2016, respectively.

Note 5. Premises and Equipment (continued)

Future minimum rental commitments under noncancelable leases are as follows as of December 31, 2018:


Year ending December 31:
2019		591,688
2020		452,457
2021		200,167
2022		123,828
2023		73,035
Thereafter		1,403
	$	1,442,578

During 2016, the Company entered into a material related party transaction with an 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 were 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 no outstanding commitment remaining.