Loans (Tables)

9 Months Ended

Sep. 30, 2017

Summary of delinquencies and nonaccruals, by portfolio class

	Single and
	multifamily		Construction		Commercial
	residential		and		real estate -		Commercial
	real estate		development		other		business		Consumer		Total
September 30, 2017
30-59 days past due	$	30,706	$	-	$	-	$	123,335	$	-	$	154,041
60-89 days past due		61,579		-		-		-		4,623		66,202
90-120 days past due		-		-		-		-		11,051		11,051
Nonaccrual		-		-		-		638,205		-		638,205
Total past due and nonaccrual		92,285		-		-		761,540		15,674		869,499
Current		11,635,874		6,787,780		18,602,481		12,026,811		5,271,171		54,324,117
Total loans (gross of deferred fees)	$	11,728,159	$	6,787,780	$	18,602,481	$	12,788,351	$	5,286,845	$	55,193,616
Deferred fees												(105,377	)
Loan loss reserve												(1,372,000	)
Total Loans, net											$	53,716,239

	Single and
	multifamily		Construction		Commercial
	residential		and		real estate -		Commercial
	real estate		development		other		business		Consumer		Total
December 31, 2016
30-59 days past due	$	442,295	$	-	$	-	$	617,052	$	-	$	1,059,347
60-89 days past due		-		-		-		409,675		-		409,675
90-120 days past due		-		-		-		-		-		-
Nonaccrual		108,951		-		195,500		-		-		304,451
Total past due and nonaccrual		551,246		-		195,500		1,026,727		-		1,773,473
Current		12,762,884		7,913,783		21,838,090		14,927,379		1,434,449		58,876,585
Total loans (gross of deferred fees)	$	13,314,130	$	7,913,783	$	22,033,590	$	15,954,106	$	1,434,449	$	60,650,058
Deferred fees												(167,062	)
Loan loss reserve												(1,338,149	)
Total Loans, net											$	59,144,847

Summarizes management's internal credit risk grades, by portfolio class

	Single and
	multifamily		Construction		Commercial
	residential		and		real estate -		Commercial
September 30, 2017	real estate		development		other		business		Consumer		Total
Pass Loans	$	7,820,727	$	1,175,703	$	-	$	-	$	5,275,594	$	14,272,224
Grade 1 - Prime		-		-		-		-		-		-
Grade 2 - Good		-		-		-		-		-		-
Grade 3 - Acceptable		1,142,061		1,756,778		8,536,445		6,097,063		-		17,532,347
Grade 4 – Acceptable w/ Care		2,703,791		3,792,063		8,550,572		5,734,583		-		20,781,009
Grade 5 – Special Mention		-		63,236		750,426		-		-		813,662
Grade 6 - Substandard		61,580		-		765,038		956,705		-		1,783,323
Grade 7 - Doubtful		-		-		-		-		11,051		11,051
Total loans (gross of deferred fees)	$	11,728,159	$	6,787,780	$	18,602,481	$	12,788,351	$	5,286,845	$	55,193,616

	Single and
	multifamily		Construction		Commercial
	residential		and		real estate -		Commercial
December 31, 2016	real estate		development		other		business		Consumer		Total
Pass Loans	$	8,246,567	$	1,462,925	$	-	$	-	$	1,434,449	$	11,143,941
Grade 1 - Prime		-		-		-		-		-		-
Grade 2 - Good		-		-		-		-		-		-
Grade 3 - Acceptable		1,919,685		1,108,334		11,057,550		7,676,592		-		21,762,161
Grade 4 – Acceptable w/ Care		2,877,013		5,273,411		9,232,019		7,307,961		-		24,690,404
Grade 5 – Special Mention		-		69,113		766,388		-		-		835,501
Grade 6 - Substandard		270,865		-		977,633		969,553		-		2,218,051
Grade 7 - Doubtful		-		-		-		-		-		-
Total loans (gross of deferred fees)	$	13,314,130	$	7,913,783	$	22,033,590	$	15,954,106	$	1,434,449	$	60,650,058

Summarizes information relative to impaired loans, by portfolio class

	Unpaid principal balance		Recorded investment		Related allowance		Average impaired investment		Year to date interest income
September 30, 2017
With no related allowance recorded:
Single and multifamily residential real estate	$	-	$	-	$	-	$	106,250	$	-
Construction and development		-		-		-		54,830		-
Commercial real estate - other		-		-		-		552,872		31,097
Commercial business		-		-		-		104,260		-
Consumer		-		-		-		-		-
With related allowance recorded:
Single and multifamily residential real estate		61,580		61,580		3,980		131,268		2,393
Construction and development		-		-		-		49,070		-
Commercial real estate - other		-		-		-		262,142		4,458
Commercial business		789,056		752,319		596,568		473,672		-
Consumer		-		-		-		-		-
Total:
Single and multifamily residential real estate		61,580		61,580		3,980		237,518		2,393
Construction and development		-		-		-		103,900		-
Commercial real estate - other		-		-		-		815,014		35,555
Commercial business		789,056		752,319		596,568		577,932		-
Consumer		-		-		-		-		-
	$	850,636	$	813,899	$	600,548	$	1,734,364	$	37,948

December 31, 2016
With no related allowance recorded:
Single and multifamily residential real estate	$	99,794	$	99,794	$	-	$	179,235	$	3,261
Construction and development		-		-		-		109,660		6,130
Commercial real estate - other		782,133		782,133		-		718,589		46,778
Commercial business		231,448		231,448		-		96,283		4,744
Consumer		-		-		-		-		-
With related allowance recorded:
Single and multifamily residential real estate		171,071		171,071		93,471		201,000		3,251
Construction and development		-		-		-		98,139		-
Commercial real estate - other		195,500		195,500		30,500		524,283		-
Commercial business		738,105		738,105		487,490		191,329		46,315
Consumer		-		-		-		-		-
Total:
Single and multifamily residential real estate		270,865		270,865		93,471		380,235		6,512
Construction and development		-		-		-		207,799		6,130
Commercial real estate - other		977,633		977,633		30,500		1,242,872		46,778
Commercial business		969,553		969,553		487,490		287,612		51,059
Consumer		-		-		-		-		-
	$	2,218,051	$	2,218,051	$	611,461	$	2,118,518	$	110,479

Schedule of activity related to allowance for loan losses

	Single and multifamily residential real estate			Construction and development			Commercial real estate - other			Commercial business			Consumer			Total
September 30, 2017
Allowance for loan losses:
Balance, beginning of period	$	235,797		$	73,630		$	330,785		$	684,679		$	13,258		$	1,338,149
Provision (reversal of provision) for loan losses		-			-			-			23,000			156,543			179,543
Loan charge-offs		(88,951	)		-			(30,500	)		-			(28,358	)		(147,809	)
Loan recoveries		1,000			-			1,117			-			-			2,117
Net loans charged-off		(87,951	)		-			(29,383	)		-			(28,358	)		(145,692	)
Balance, end of period	$	147,846		$	73,630		$	301,402		$	707,679		$	141,443		$	1,372,000

Individually reviewed for impairment	$	3,980		$	-		$	-		$	596,568		$	-		$	600,548
Collectively reviewed for impairment		143,866			73,630			301,402			111,111			141,443			771,452
Total allowance for loan losses	$	147,846		$	73,630		$	301,402		$	707,679		$	141,443		$	1,372,000

Gross loans, end of period:
Individually reviewed for impairment	$	61,580		$	-		$	-		$	789,056		$	-		$	850,636
Collectively reviewed for impairment		11,666,579			6,787,780			18,602,481			11,999,295			5,286,845			54,342,980
Total loans (gross of deferred fees)	$	11,728,159		$	6,787,780		$	18,602,481		$	12,788,351		$	5,286,845		$	55,193,616

September 30, 2016
Allowance for loan losses:
Balance, beginning of year	$	265,797		$	184,130		$	439,830		$	244,679		$	5,073		$	1,139,509
Provision (reversal of provision) for loan losses		(30,000	)		(60,000	)		45,000			(28,000	)		5,000			(68,000	)
Loan charge-offs		-			(10,500	)		(209,045	)		-			(139	)		(219,684	)
Loan recoveries		-			-			-			-			1,312			1,312
Net loans charged-off		-			(10,500	)		(209,045	)		-			1,173			(218,372	)
Balance, end of period	$	235,797		$	113,630		$	275,785		$	216,679		$	11,246		$	853,137

Individually reviewed for impairment	$	101,283		$	-		$	28,188		$	-		$	-		$	129,471
Collectively reviewed for impairment		134,514			113,630			247,597			216,679			11,246			723,666
Total allowance for loan losses	$	235,797		$	113,630		$	275,785		$	216,679		$	11,246		$	853,137

Gross loans, end of period:
Individually reviewed for impairment	$	200,483		$	-		$	981,286		$	242,646		$	-		$	1,424,415
Collectively reviewed for impairment		12,905,727			8,664,401			22,650,227			16,068,808			1,811,517			62,100,680
Total loans (gross of deferred fees)	$	13,106,210		$	8,664,401		$	23,631,513		$	16,311,454		$	1,811,517		$	63,525,095

Schedule of non accrual loan activities

	September 30,			September 30,
	2017			2016
Nonaccrual loans	$	638,205		$	331,233
Average gross loans	$	60,468,110		$	64,628,769
Net loans charged-off as a percentage of average gross loans		0.24	%		0.34	%
Allowance for loan losses as a percentage of total gross loans		2.49	%		1.34	%
Allowance for loan losses as a percentage of non-accrual loans		214.98	%		257.56	%

Schedule of loan maturity distribution by type and related interest rate

			After one but
	One year or			within five		After five
	less			years		years		Total
September 30, 2017
Single and multifamily residential real estate	$	1,309,158		$	6,316,493	$	4,102,508	$	11,728,159
Construction and development		2,082,172			3,997,008		708,600		6,787,780
Commercial real estate - other		3,364,591			13,353,636		1,884,254		18,602,481
Commercial business		4,460,366			7,715,910		612,075		12,788,351
Consumer		320,435			4,928,997		37,413		5,286,845
Total	$	11,536,722		$	36,312,044	$	7,344,850	$	55,193,616

				After one but
	One year or			within five		After five
	less			years		years		Total
December 31, 2016
Single and multifamily residential real estate	$	1,445,328		$	6,710,484	$	5,158,318	$	13,314,130
Construction and development		2,987,321			4,829,172		97,290		7,913,783
Commercial real estate - other		3,144,814			16,958,206		1,930,570		22,033,590
Commercial business		6,203,428			8,736,000		1,014,678		15,954,106
Consumer		540,500			821,639		72,310		1,434,449
Total	$	14,321,391		$	38,055,501	$	8,273,166	$	60,650,058

Loans maturing after one year with:	September 30, 2017		December 31, 2016
Fixed interest rates	$	19,326,434	$	16,767,328
Floating interest rates	$	24,330,460	$	29,561,339

Independence Bancshares, Inc. 10-Q