b'Credit Quality IndicatorsAs of December 31, 2018Commercial and Consumer Credit ExposureCredit Risk Profile by Creditworthiness Category1a1 & 1a2 1c2a, 1c2b, 1c1, 1d 1e1 & 1e2 46b, 6c & 6d 10Secured by construction,Secured bySecured by land and landresidentialnonfarmCommercial andLoans to Risk Ratings development properties nonresidential industrial loans individuals Leases TotalExcellent (1) $3 7,781 $163,576 $-$626,724 $5 28,496 $- $1,356,577Good (2)919,00010,909,253 2,113,9955 6,735431,385 -1 4,430,368Above Average (3)8 ,434,16055,150,2711 0,021,1561,406,722 1,108,975-76,121,284Average (4) 10,697,52980,364,641 31,383,871 7 ,011,252 2,034,863 2 1,421 131,513,577Below Average (5) 4,311,308 3 2,897,842 21,917,668 4 ,244,594 1,038,019 1 6,831 64,426,262Watch (6)1 ,404,541 2 ,693,143 5,489,5913 31,21792,758 - 10,011,250Special Mention (7) - 1,607,782178,149 487,185 1 7,419 - 2,290,535Substandard (8)16,979 1 ,807,836633,6147 0,423 2 8,825 - 2,557,677Doubtful (9) - - - Loss (10)- - -Unrated * -2,240- - 169,001 -171,241Total $ 2 5,821,298 $ 185,596,584 $71,738,044 $1 4,234,852 $5,449,741 $3 8,252 $302,878,771* - Unrated loans secured by residential properties consist of loan modification receivable.Unrated loans to individuals consist of overdrafts, repossessed assets, and loan settlement accounts. When a loan is 10 days past due, the Bank sends the borrower a late notice.The Bank also contacts the borrower by phone if the delinquency is not corrected promptly after the notice has been sent.When the loan is 30 days past due, the Bank mails the borrower a consumers right to cure the default notice and attempts to contact the borrower personally to determine the reason for the delinquency in order to ensure that the borrower understands the terms of the loan and the importance of making payments on or before the due date.If necessary, subsequent delinquency notices are issued and the account is monitored on a regular basis thereafter.If the loan is secured by the borrowers primary residence, by the 90th day of delinquency the Bank will send the borrower a final demand for payment and on the 120th day of delinquency, foreclosure proceedings will commence.If the loan is not secured by the borrowers primary residence, by the 60th day of delinquency the Bank will begin action to secure the collateral associated with the loan.Loans are charged off when the Bank believes that the recovery of principal is improbable.A summary report of all loans 60 days or more past due is provided to the Board of Directors of the Bank each month.Loans are automatically placed on non-accrual status when payment of principal or interest is more than 90 days delinquent, unless in managements judgment collectability of interest is assured.When loans are placed on non-accrual status unpaid accrued interest is fully reversed.Cash collections on such loans are applied as reductions of the loan principal and no interest income is recognized on those loans until the loan returns to accrual status.Nonaccrual loans are restored to accrual status when all delinquent principal and interest have been paid and the loan remains current for six consecutive months.21'