Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 Loans originated for investment are stated at their principal amount outstanding adjusted for partial charge-offs, the allowance, and net deferred loan fees and costs. Interest income on loans is accrued over the term of the loans primarily using the simple interest method based on the principal balance outstanding. Interest is not Acquired loans were recorded at estimated fair value at acquisition. The acquired loans were segregated between those considered to be performing (“acquired non-impaired loans”) and those with evidence of credit deterioration (“acquired impaired loans”). Acquired loans are considered impaired if there is evidence of credit deterioration and if it is probable, at acquisition, all contractually required payments will not not The fair value estimates for acquired loans are based on expected prepayments and the amount and timing of discounted expected principal, interest and other cash flows. Credit discounts representing the principal losses expected over the life of the loan are also a component of the initial fair value. In determining the Merger Date fair value of acquired impaired loans, and in subsequent accounting, we have generally aggregated acquired commercial and consumer loans into pools of loans with common risk characteristics. The difference between the fair value of an acquired non-impaired loan and contractual amounts due at acquisition is accreted into interest income over the estimated life of the loan. Contractually required payments represent the total undiscounted amount of all uncollected principal and interest payments. Acquired non-impaired loans are placed on nonaccrual status and reported as nonperforming or past due using the same criteria applied to the originated loan portfolio. The excess of an acquired impaired loan’s contractually required payments over the amount of its undiscounted cash flows expected to be collected is referred to as the non-accretable difference. The non-accretable difference, which is neither accreted into income nor recorded on the Consolidated Balance Sheets, reflects estimated future credit losses and uncollectable contractual interest expected to be incurred over the life of the acquired impaired loan. The excess cash flows expected to be collected over the carrying amount of the acquired loan is referred to as the accretable yield. This amount is accreted into interest income over the remaining life of the acquired loans or pools using the level yield method. The accretable yield is affected by changes in interest rate indices for variable rate loans, changes in prepayment speed assumptions and changes in expected principal and interest payments over the estimated lives of the acquired impaired loans. We evaluate quarterly the remaining contractually required payments receivable and estimate cash flows expected to be collected over the lives of the impaired loans. Contractually required payments receivable may not Increases in expected cash flows of acquired impaired loans subsequent to acquisition are recognized prospectively through adjustments of the yield on the loans or pools over their remaining lives, while decreases in expected cash flows are recognized as impairment through a provision for loan losses and an increase in the allowance. Year-end loans disaggregated by class of loan within the loan portfolio segments were as follows: December 31, 2019 December 31, 2018 Percent Increase Balance % Balance % (Decrease) Originated Loans Commercial: Commercial and industrial $ 799,421,000 30.6 % $ 768,698,000 31.3 % 4.0 % Vacant land, land development, and residential construction 52,097,000 2.0 39,950,000 1.6 30.4 Real estate – owner occupied 542,561,000 20.8 500,188,000 20.4 8.5 Real estate – non-owner occupied 776,994,000 29.7 745,127,000 30.4 4.3 Real estate – multi-family and residential rental 100,344,000 3.8 98,035,000 4.0 2.4 Total commercial 2,271,417,000 86.9 2,151,998,000 87.7 5.5 Retail: Home equity and other 61,060,000 2.3 65,023,000 2.7 (6.1 ) 1-4 family mortgages 282,248,000 10.8 235,425,000 9.6 19.9 Total retail 343,308,000 13.1 300,448,000 12.3 14.3 Total originated loans $ 2,614,725,000 100.0 % $ 2,452,446,000 100.0 % 6.6 % December 31, 2019 December 31, 2018 Percent Increase Balance % Balance % (Decrease) Acquired Loans Commercial: Commercial and industrial $ 47,130,000 19.4 % $ 54,025,000 18.0 % (12.8 %) Vacant land, land development, and residential construction 4,022,000 1.7 4,935,000 1.6 (18.5 ) Real estate – owner occupied 36,442,000 15.1 48,431,000 16.1 (24.8 ) Real estate – non-owner occupied 58,352,000 24.1 71,155,000 23.7 (18.0 ) Real estate – multi-family and residential rental 24,181,000 10.0 29,562,000 9.8 (18.2 ) Total commercial 170,127,000 70.3 208,108,000 69.2 (18.3 ) Retail: Home equity and other 14,314,000 5.9 20,416,000 6.8 (29.9 ) 1-4 family mortgages 57,501,000 23.8 72,115,000 24.0 (20.3 ) Total retail 71,815,000 29.7 92,531,000 30.8 (22.4 ) Total acquired loans $ 241,942,000 100.0 % $ 300,639,000 100.0 % (19.5 %) December 31, 2019 December 31, 2018 Percent Increase Balance % Balance % (Decrease) Total Loans Commercial: Commercial and industrial $ 846,551,000 29.6 % $ 822,723,000 29.9 % 2.9 % Vacant land, land development, and residential construction 56,119,000 2.0 44,885,000 1.6 25.0 Real estate – owner occupied 579,003,000 20.3 548,619,000 19.9 5.5 Real estate – non-owner occupied 835,346,000 29.2 816,282,000 29.7 2.3 Real estate – multi-family and residential rental 124,525,000 4.4 127,597,000 4.6 (2.4 ) Total commercial 2,441,544,000 85.5 2,360,106,000 85.7 3.5 Retail: Home equity and other 75,374,000 2.6 85,439,000 3.1 (11.8 ) 1-4 family mortgages 339,749,000 11.9 307,540,000 11.2 10.5 Total retail 415,123,000 14.5 392,979,000 14.3 5.6 Total loans $ 2,856,667,000 100.0 % $ 2,753,085,000 100.0 % 3.8 % The total contractually required payments and carrying value of acquired impaired loans were $5.7 $3.4 December 31, 2019. $8.0 $4.6 December 31, 2018. December 31, 2019 December 31, 2018 2019 Balance at December 31, 2018 $ 1,274,000 Additions 9,000 Accretion income (407,000 ) Net reclassification from nonaccretable to accretable 488,000 Reductions (1) (88,000 ) Balance at December 31, 2019 $ 1,276,000 2018 Balance at December 31, 2017 $ 1,404,000 Additions 0 Accretion income (490,000 ) Net reclassification from nonaccretable to accretable 437,000 Reductions (1) (77,000 ) Balance at December 31, 2018 $ 1,274,000 ( 1 Concentrations within the loan portfolio were as follows at year-end: 2019 2018 Percentage of Percentage of Balance Loan Portfolio Balance Loan Portfolio Commercial real estate loans to lessors of non-residential buildings $ 580,708,000 20.3 % $ 568,134,000 20.6 % Year-end nonperforming originated loans were as follows: 2019 2018 Loans past due 90 days or more still accruing interest $ 0 $ 0 Nonaccrual loans 677,000 803,000 Total nonperforming loans $ 677,000 $ 803,000 Year-end nonperforming acquired loans were as follows: 2019 2018 Loans past due 90 days or more still accruing interest $ 0 $ 0 Nonaccrual loans 1,607,000 3,338,000 Total nonperforming loans $ 1,607,000 $ 3,338,000 The recorded principal balance of all nonperforming loans was as follows: December 31, 2019 December 31, 2018 Commercial: Commercial and industrial $ 0 $ 17,000 Vacant land, land development, and residential construction 0 0 Real estate – owner occupied 134,000 950,000 Real estate – non-owner occupied 0 0 Real estate – multi-family and residential rental 2,000 141,000 Total commercial 136,000 1,108,000 Retail: Home equity and other 255,000 454,000 1-4 family mortgages 1,893,000 2,579,000 Total retail 2,148,000 3,033,000 Total nonperforming loans $ 2,284,000 $ 4,141,000 Acquired impaired loans are not An age analysis of past due loans is as follows as of December 31, 2019: 30 – 59 Days Past Due 60 – 89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans Recorded Balance > 89 Days and Accruing Originated Loans Commercial: Commercial and industrial $ 0 $ 0 $ 0 $ 0 $ 799,421,000 $ 799,421,000 $ 0 Vacant land, land development, and residential construction 0 0 0 0 52,097,000 52,097,000 0 Real estate – owner occupied 0 0 134,000 134,000 542,427,000 542,561,000 0 Real estate – non-owner occupied 0 0 0 0 776,994,000 776,994,000 0 Real estate – multi-family and residential rental 0 0 0 0 100,344,000 100,344,000 0 Total commercial 0 0 134,000 134,000 2,271,283,000 2,271,417,000 0 Retail: Home equity and other 107,000 50,000 0 157,000 60,903,000 61,060,000 0 1- 4 family mortgages 61,000 0 130,000 191,000 282,057,000 282,248,000 0 Total retail 168,000 50,000 130,000 348,000 342,960,000 343,308,000 0 Total past due loans $ 168,000 $ 50,000 $ 264,000 $ 482,000 $ 2,614,243,000 $ 2,614,725,000 $ 0 30 – 59 Days Past Due 60 – 89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans Recorded Balance > 89 Days and Accruing Acquired Loans Commercial: Commercial and industrial $ 0 $ 0 $ 0 $ 0 $ 47,130,000 $ 47,130,000 $ 0 Vacant land, land development, and residential construction 191,000 0 0 191,000 3,831,000 4,022,000 0 Real estate – owner occupied 0 0 0 0 36,442,000 36,442,000 0 Real estate – non-owner occupied 0 0 0 0 58,352,000 58,352,000 0 Real estate – multi-family and residential rental 0 0 0 0 24,181,000 24,181,000 0 Total commercial 191,000 0 0 191,000 169,936,000 170,127,000 0 Retail: Home equity and other 64,000 15,000 20,000 99,000 14,215,000 14,314,000 0 1- 4 family mortgages 684,000 29,000 399,000 1,112,000 56,389,000 57,501,000 0 Total retail 748,000 44,000 419,000 1,211,000 70,604,000 71,815,000 0 Total past due loans $ 939,000 $ 44,000 $ 419,000 $ 1,402,000 $ 240,540,000 $ 241,942,000 $ 0 An age analysis of past due loans is as follows as of December 31, 2018: 30 – 59 Days Past Due 60 – 89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans Recorded Balance > 89 Days and Accruing Originated Loans Commercial: Commercial and industrial $ 186,000 $ 0 $ 0 $ 186,000 $ 768,512,000 $ 768,698,000 $ 0 Vacant land, land development, and residential construction 0 0 0 0 39,950,000 39,950,000 0 Real estate – owner occupied 0 0 0 0 500,188,000 500,188,000 0 Real estate – non-owner occupied 0 0 0 0 745,127,000 745,127,000 0 Real estate – multi-family and residential rental 0 0 0 0 98,035,000 98,035,000 0 Total commercial 186,000 0 0 186,000 2,151,812,000 2,151,998,000 0 Retail: Home equity and other 44,000 0 0 44,000 64,979,000 65,023,000 0 1- 4 family mortgages 291,000 0 137,000 428,000 234,997,000 235,425,000 0 Total retail 335,000 0 137,000 472,000 299,976,000 300,448,000 0 Total past due loans $ 521,000 $ 0 $ 137,000 $ 658,000 $ 2,451,788,000 $ 2,452,446,000 $ 0 30 – 59 Days Past Due 60 – 89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans Recorded Balance > 89 Days and Accruing Acquired Loans Commercial: Commercial and industrial $ 8,000 $ 0 $ 0 $ 8,000 $ 54,017,000 $ 54,025,000 $ 0 Vacant land, land development, and residential construction 19,000 0 0 19,000 4,916,000 4,935,000 0 Real estate – owner occupied 108,000 950,000 0 1,058,000 47,373,000 48,431,000 0 Real estate – non-owner occupied 62,000 0 0 62,000 71,093,000 71,155,000 0 Real estate – multi-family and residential rental 0 0 0 0 29,562,000 29,562,000 0 Total commercial 197,000 950,000 0 1,147,000 206,961,000 208,108,000 0 Retail: Home equity and other 167,000 31,000 0 198,000 20,218,000 20,416,000 0 1- 4 family mortgages 821,000 347,000 612,000 1,780,000 70,335,000 72,115,000 0 Total retail 988,000 378,000 612,000 1,978,000 90,553,000 92,531,000 0 Total past due loans $ 1,185,000 $ 1,328,000 $ 612,000 $ 3,125,000 $ 297,514,000 $ 300,639,000 $ 0 Impaired originated loans with no December 31, 2019: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With no related allowance recorded: Commercial: Commercial and industrial $ 7,826,000 $ 7,826,000 $ 11,259,000 Vacant land, land development and residential construction 85,000 85,000 89,000 Real estate – owner occupied 655,000 607,000 893,000 Real estate – non-owner occupied 0 0 0 Real estate – multi-family and residential rental 0 0 25,000 Total commercial 8,566,000 8,518,000 12,266,000 Retail: Home equity and other 708,000 691,000 682,000 1-4 family mortgages 1,117,000 514,000 385,000 Total retail 1,825,000 1,205,000 1,067,000 Total with no related allowance recorded $ 10,391,000 $ 9,723,000 $ 13,333,000 Impaired originated loans with an allowance recorded and total impaired originated loans were as follows as of December 31, 2019: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With an allowance recorded: Commercial: Commercial and industrial $ 332,000 $ 332,000 $ 172,000 $ 5,567,000 Vacant land, land development and residential construction 0 0 0 0 Real estate – owner occupied 978,000 978,000 978,000 1,573,000 Real estate – non-owner occupied 0 0 0 0 Real estate – multi-family and residential rental 0 0 0 53,000 Total commercial 1,310,000 1,310,000 1,150,000 7,193,000 Retail: Home equity and other 347,000 332,000 247,000 383,000 1-4 family mortgages 0 0 0 267,000 Total retail 347,000 332,000 247,000 650,000 Total with an allowance recorded $ 1,657,000 $ 1,642,000 $ 1,397,000 $ 7,843,000 Total impaired loans: Commercial $ 9,876,000 $ 9,828,000 $ 1,150,000 $ 19,459,000 Retail 2,172,000 1,537,000 247,000 1,717,000 Total impaired originated loans $ 12,048,000 $ 11,365,000 $ 1,397,000 $ 21,176,000 Impaired acquired loans with no December 31, 2019: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With no related allowance recorded: Commercial: Commercial and industrial $ 303,000 $ 303,000 $ 351,000 Vacant land, land development and residential construction 0 0 0 Real estate – owner occupied 60,000 60,000 627,000 Real estate – non-owner occupied 178,000 178,000 131,000 Real estate – multi-family and residential rental 29,000 9,000 19,000 Total commercial 570,000 550,000 1,128,000 Retail: Home equity and other 571,000 518,000 521,000 1-4 family mortgages 2,155,000 1,454,000 1,693,000 Total retail 2,726,000 1,972,000 2,214,000 Total with no related allowance recorded $ 3,296,000 $ 2,522,000 $ 3,342,000 Impaired acquired loans with an allowance recorded and total impaired acquired loans were as follows as of December 31, 2019: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With an allowance recorded: Commercial: Commercial and industrial $ 128,000 $ 126,000 $ 30,000 $ 142,000 Vacant land, land development and residential construction 0 0 0 0 Real estate – owner occupied 100,000 100,000 4,000 99,000 Real estate – non-owner occupied 0 0 0 80,000 Real estate – multi-family and residential rental 0 0 0 1,000 Total commercial 228,000 226,000 34,000 322,000 Retail: Home equity and other 155,000 153,000 109,000 275,000 1-4 family mortgages 358,000 356,000 83,000 393,000 Total retail 513,000 509,000 192,000 668,000 Total with an allowance recorded $ 741,000 $ 735,000 $ 226,000 $ 990,000 Total impaired loans: Commercial $ 798,000 $ 776,000 $ 34,000 $ 1,450,000 Retail 3,239,000 2,481,000 192,000 2,882,000 Total impaired acquired loans $ 4,037,000 $ 3,257,000 $ 226,000 $ 4,332,000 Impaired originated loans with no December 31, 2018: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With no related allowance recorded: Commercial: Commercial and industrial $ 8,604,000 $ 8,604,000 $ 2,096,000 Vacant land, land development and residential construction 94,000 94,000 65,000 Real estate – owner occupied 632,000 632,000 1,145,000 Real estate – non-owner occupied 0 0 0 Real estate – multi-family and residential rental 0 0 187,000 Total commercial 9,330,000 9,330,000 3,493,000 Retail: Home equity and other 607,000 586,000 691,000 1-4 family mortgages 1,053,000 390,000 414,000 Total retail 1,660,000 976,000 1,105,000 Total with no related allowance recorded $ 10,990,000 $ 10,306,000 $ 4,598,000 Impaired originated loans with an allowance recorded and total impaired originated loans were as follows as of December 31, 2018: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With an allowance recorded: Commercial: Commercial and industrial $ 5,011,000 $ 5,011,000 $ 83,000 $ 3,455,000 Vacant land, land development and residential construction 0 0 0 0 Real estate – owner occupied 2,658,000 2,658,000 363,000 2,072,000 Real estate – non-owner occupied 0 0 0 0 Real estate – multi-family and residential rental 140,000 135,000 5,000 112,000 Total commercial 7,809,000 7,804,000 451,000 5,639,000 Retail: Home equity and other 442,000 431,000 193,000 600,000 1-4 family mortgages 409,000 341,000 44,000 299,000 Total retail 851,000 772,000 237,000 899,000 Total with an allowance recorded $ 8,660,000 $ 8,576,000 $ 688,000 $ 6,538,000 Total impaired loans: Commercial $ 17,139,000 $ 17,134,000 $ 451,000 $ 9,132,000 Retail 2,511,000 1,748,000 237,000 2,004,000 Total impaired originated loans $ 19,650,000 $ 18,882,000 $ 688,000 $ 11,136,000 Impaired acquired loans with no December 31, 2018: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With no related allowance recorded: Commercial: Commercial and industrial $ 398,000 $ 398,000 $ 690,000 Vacant land, land development and residential construction 0 0 0 Real estate – owner occupied 1,193,000 1,193,000 749,000 Real estate – non-owner occupied 0 0 182,000 Real estate – multi-family and residential rental 45,000 26,000 73,000 Total commercial 1,636,000 1,617,000 1,694,000 Retail: Home equity and other 388,000 361,000 615,000 1-4 family mortgages 2,494,000 1,849,000 2,031,000 Total retail 2,882,000 2,210,000 2,646,000 Total with no related allowance recorded $ 4,518,000 $ 3,827,000 $ 4,340,000 Impaired acquired loans with an allowance recorded and total impaired acquired loans were as follows as of December 31, 2018: Unpaid Contractual Principal Balance Recorded Principal Balance Related Allowance Year-To- Date Average Recorded Principal Balance With an allowance recorded: Commercial: Commercial and industrial $ 175,000 $ 166,000 $ 43,000 $ 33,000 Vacant land, land development and residential construction 0 0 0 0 Real estate – owner occupied 147,000 147,000 0 349,000 Real estate – non-owner occupied 210,000 210,000 0 42,000 Real estate – multi-family and residential rental 3,000 3,000 0 1,000 Total commercial 535,000 526,000 43,000 425,000 Retail: Home equity and other 462,000 440,000 178,000 95,000 1-4 family mortgages 418,000 371,000 89,000 74,000 Total retail 880,000 811,000 267,000 169,000 Total with an allowance recorded $ 1,415,000 $ 1,337,000 $ 310,000 $ 594,000 Total impaired loans: Commercial $ 2,171,000 $ 2,143,000 $ 43,000 $ 2,119,000 Retail 3,762,000 3,021,000 267,000 2,815,000 Total impaired acquired loans $ 5,933,000 $ 5,164,000 $ 310,000 $ 4,934,000 Impaired loans for which no $1.3 $1.1 $0.4 2019, 2018 2017, $ 0.1 2019 2018, $0.5 2017, $0.1 2019 $ 0.3 2018 2017. Credit Quality Indicators. ten Loans by credit quality indicators were as follows as of December 31, 2019: Originated Loans Commercial credit exposure – credit risk profiled by internal credit risk grades: Commercial and Industrial Commercial Vacant Land, Land Development, and Residential Construction Commercial Real Estate - Owner Occupied Commercial Real Estate - Non-Owner Occupied Commercial Real Estate - Multi-Family and Residential Rental Internal credit risk grade groupings: Grades 1 – 4 $ 491,385,000 $ 25,037,000 $ 333,051,000 $ 515,914,000 $ 69,474,000 Grades 5 – 7 293,678,000 26,975,000 203,318,000 261,080,000 30,727,000 Grades 8 – 9 14,358,000 85,000 6,192,000 0 143,000 Total commercial $ 799,421,000 $ 52,097,000 $ 542,561,000 $ 776,994,000 $ 100,344,000 Retail credit exposure – credit risk profiled by collateral type: Retail Retail Home Equity 1-4 Family and Other Mortgages Total retail $ 61,060,000 $ 282,248,000 Acquired Loans Commercial credit exposure – credit risk profiled by internal credit risk grades: Commercial and Industrial Commercial Vacant Land, Land Development, and Residential Construction Commercial Real Estate - Owner Occupied Commercial Real Estate - Non-Owner Occupied Commercial Real Estate - Multi-Family and Residential Rental Internal credit risk grade groupings: Grades 1 – 4 $ 30,535,000 $ 1,028,000 $ 18,620,000 $ 47,173,000 $ 15,678,000 Grades 5 – 7 16,146,000 2,741,000 17,662,000 11,044,000 8,476,000 Grades 8 – 9 449,000 253,000 160,000 135,000 27,000 Total commercial $ 47,130,000 $ 4,022,000 $ 36,442,000 $ 58,352,000 $ 24,181,000 Retail credit exposure – credit risk profiled by collateral type: Retail Retail Home Equity 1-4 Family and Other Mortgages Total retail $ 14,314,000 $ 57,501,000 Loans by credit quality indicators were as follows as of December 31, 2018: Originated Loans Commercial credit exposure – credit risk profiled by internal credit risk grades: Commercial and Industrial Commercial Vacant Land, Land Development, and Residential Construction Commercial Real Estate - Owner Occupied Commercial Real Estate - Non-Owner Occupied Commercial Real Estate - Multi-Family and Residential Rental Internal credit risk grade groupings: Grades 1 – 4 $ 508,611,000 $ 28,170,000 $ 325,459,000 $ 526,445,000 $ 75,051,000 Grades 5 – 7 238,942,000 11,686,000 163,455,000 218,682,000 22,798,000 Grades 8 – 9 21,145,000 94,000 11,274,000 0 186,000 Total commercial $ 768,698,000 $ 39,950,000 $ 500,188,000 $ 745,127,000 $ 98,035,000 Retail credit exposure – credit risk profiled by collateral type: Retail Retail Home Equity 1-4 Family and Other Mortgages Total retail $ 65,023,000 $ 235,425,000 Acquired Loans Commercial credit exposure – credit risk profiled by internal credit risk grades: Commercial and Industrial Commercial Vacant Land, Land Development, and Residential Construction Commercial Real Estate - Owner Occupied Commercial Real Estate - Non-Owner Occupied Commercial Real Estate - Multi-Family and Residential Rental Internal credit risk grade groupings: Grades 1 – 4 $ 34,678,000 $ 1,246,000 $ 21,595,000 $ 54,401,000 $ 16,050,000 Grades 5 – 7 19,122,000 3,431,000 25,485,000 16,687,000 13,460,000 Grades 8 – 9 225,000 258,000 1,351,000 67,000 52,000 Total commercial $ 54,025,000 $ 4,935,000 $ 48,431,000 $ 71,155,000 $ 29,562,000 Retail credit exposure – credit risk profiled by collateral type: Retail Retail Home Equity 1-4 Family and Other Mortgages Total retail $ 20,416,000 $ 72,115,000 All commercial loans are graded using the following number system: Grade 1. Grade 2. Grade 3. Grade 4. Grade 5. Grade 6. may not Grade 7. Grade 8. Grade 9. Grade 10. not The primary risk elements with respect to commercial loans are the financial condition of the borrower, the sufficiency of collateral, and timeliness of scheduled payments. We have a policy of requesting and reviewing periodic financial statements from commercial loan customers and employ a disciplined and formalized review of the existence of collateral and its value. The primary risk element with respect to each residential real estate loan and consumer loan is the timeliness of scheduled payments. We have a reporting system that monitors past due loans and have adopted policies to pursue creditor’s rights in order to preserve our collateral position. The allowance for originated loan losses and recorded investments in originated loans for the year-ended December 31, 2019 Commercial Loans Retail Loans Unallocated Total Allowance for loan losses: Beginning balance $ 19,442,000 $ 2,068,000 $ 44,000 $ 21,554,000 Provision for loan losses 1,521,000 320,000 26,000 1,867,000 Charge-offs (455,000 ) (428,000 ) 0 (883,000 ) Recoveries 326,000 302,000 0 628,000 Ending balance $ 20,834,000 $ 2,262,000 $ 70,000 $ 23,166,000 Ending balance: individually evaluated for impairment $ 1,150,000 $ 247,000 $ 0 $ 1,397,000 Ending balance: collectively evaluated for impairment $ 19,684,000 $ 2,015,000 $ 70,000 $ 21,769,000 Total loans: Ending balance $ 2,271,417,000 $ 343,308,000 $ 2,614,725,000 Ending balance: individually evaluated for impairment $ 9,828,000 $ 1,537,000 $ 11,365,000 Ending balance: collectively evaluated for impairment $ 2,261,589,000 $ 341,771,000 $ 2,603,360,000 The allowance for acquired loan losses for the year-ended December 31, 2019 Commercial Loans Retail Loans Unallocated Total Allowance for loan losses: Beginning balance $ 177,000 $ 649,000 $ 0 $ 826,000 Provision for loan losses 57,000 (174,000 ) 0 (117,000 ) Charge-offs 0 0 0 0 Recoveries 2,000 12,000 0 14,000 Ending balance $ 236,000 $ 487,000 $ 0 $ 723,000 The allowance for originated loan losses and recorded investments in originated loans for the year-ended December 31, 2018 Commercial Loans Retail Loans Unallocated Total Allowance for loan losses: Beginning balance $ 16,456,000 $ 2,584,000 $ 93,000 $ 19,133,000 Provision for loan losses 826,000 (377,000 ) (49,000 ) 400,000 Charge-offs (428,000 ) (761,000 ) 0 (1,189,000 ) Recoveries 2,588,000 622,000 0 3,210,000 Ending balance $ 19,442,000 $ 2,068,000 $ 44,000 $ 21,554,000 Ending balance: individually evaluated for impairment $ 451,000 $ 237,000 $ 0 $ 688,000 Ending balance: collectively evaluated for impairment $ 18,991,000 $ 1,831,000 $ 44,000 $ 20,866,000 Total loans: Ending balance $ 2,151,998,000 $ 300,448,000 $ 2,452,446,000 Ending balance: individually evaluated for impairment $ 17,134,000 $ 1,748,000 $ 18,882,000 Ending balance: collectively evaluated for impairment $ 2,134,864,000 $ 298,700,000 $ 2,433,564,000 The allowance for acquired loan losses for the year-ended December 31, 2018 Commercial Loans Retail Loans Unallocated Total Allowance for loan losses: Beginning balance $ 291,000 $ 77,000 $ 0 $ 368,000 Provision for loan losses 132,000 568,000 0 700,000 Charge-offs (246,000 ) (15,000 ) 0 (261,000 ) Recoveries 0 19,000 0 19,000 Ending balance $ 177,000 $ 649,000 $ 0 $ 826,000 The allowance for originated loan losses and recorded investments in originated loans for the year-ended December 31, 2017 Commercial Loans Retail Loans Unallocated Total Allowance for loan losses: Beginning balance $ 16,026,000 $ 1,882,000 $ (40,000 ) $ 17,868,000 Provision for loan losses 1,148,000 1,360,000 133,000 2,641,000 Charge-offs (2,292,000 ) (891,000 ) 0 (3,183,000 ) Recoveries 1,574,000 233,000 0 1,807,000 Ending balance $ 16,456,000 $ 2,584,000 $ 93,000 $ 19,133,000 Ending balance: individually evaluated for impairment $ 1,202,000 $ 665,000 $ 0 $ 1,867,000 Ending balance: collectively evaluated for impairment $ 15,254,000 $ 1,919,000 $ 93,000 $ 17,266,000 Total loans: Ending balance $ 1,934,228,000 $ 235,729,000 $ 2,169,957,000 Ending balance: individually evaluated for impairment $ 6,394,000 $ 2,393,000 $ 8,787,000 Ending balance: collectively evaluated for impairment $ 1,927,834,000 $ 233,336,000 $ 2,161,170,000 The allowance for acquired loan losses for the year-ended December 31, 2017 Commercial Loans Retail Loans Unallocated Total Allowance for loan losses: Beginning balance $ 75,000 $ 18,000 $ 0 $ 93,000 Provision for loan losses 210,000 99,000 0 309,000 Charge-offs (12,000 ) (40,000 ) 0 (52,000 ) Recoveries 18,000 0 0 18,000 Ending balance $ 291,000 $ 77,000 $ 0 $ 368,000 Loans modified as troubled debt restructurings during the year-ended December 31, 2019 Pre- Post- Modification Modification Recorded Recorded Number of Principal Principal Contracts Balance Balance Originated Loans Commercial: Commercial and industrial 5 $ 435,000 $ 435,000 Vacant land, land development and residential construction 1 87,000 87,000 Real estate – owner occupied 1 1,567,000 1,567,000 Real estate – non-owner occupied 0 0 0 Real estate – multi-family and residential rental 0 0 0 Total commercial 7 2,089,000 2,089,000 Retail: Home equity and other 4 51,000 51,000 1-4 family mortgages 0 0 0 Total retail 4 51,000 51,000 Total 11 $ 2,140,000 $ 2,140,000 Acquired Loans Commercial: Commercial and industrial 0 $ 0 $ 0 Vacant land, land development and residential construction 0 0 0 Real estate – owner occupied 1 102,000 102,000 Real estate – non-owner occupied 0 0 0 Real estate – multi-family and residential rental 0 0 0 Total commercial 1 102,000 102,000 Retail: Home equity and other 16 244,000 245,000 1-4 family mortgages 8 310,000 310,000 Total retail 24 554,000 555,000 Total 25 $ 656,000 $ 657,000 Loans modified as troubled debt restructurings during the year-ended December 31, 2018 Pre- Post- Modification Modification Recorded Recorded Number of Principal Principal Contracts Balance Balance Originated Loans Commercial: Commercial and industrial 9 $ 12,297,000 $ 12,263,000 Vacant land, land development and residential construction 0 0 0 Real estate – owner occupied 1 2,284,000 2,284,000 Real estate – non-owner occupied 0 0 0 Real estate – multi-family and residential rental 0 0 0 Total commercial 10 14,581,000 14,547,000 Retail: Home equity and other 2 63,000 63,000 1-4 family mortgages 0 0 0 Total retail 2 63,000 63,000 Total 12 $ 14,644,000 $ 14,610,000 Acquired Loans Commercial: Commercial and industrial 0 $ 0 $ 0 Vacant land, land development and residential construction 0 0 0 Real estate – owner occupied 1 150,000 150,000 Real estate – non-owner occupied 0 0 0 Real estate – multi-family and residential rental 0 0 0 Total commercial 1 150,000 150,000 Retail: Home equity and other 16 414,000 416,000 1-4 family mortgages 4 91,000 90,000 Total retail 20 505,000 506,000 Total 21 $ 655,000 $ 656,000 The following originated loans, modified as troubled debt restructurings within the previous twelve 30 December 31, 2019 ( Number of Contracts Recorded Principal Balance Commercial: Commercial and industrial 0 $ 0 Vacant land, land development and residential construction 0 0 Real estate – owner occupied 0 0 Real estate – non-owner occupied 0 0 Real estate – multi-family and residential rental 0 0 Total commercial 0 0 Retail: Home equity and other 0 0 1-4 family mortgages 0 0 Total retail 0 0 Total 0 $ 0 The following acquired loans, modified as troubled debt restructurings within the previous twelve 30 December 31, 2019 ( Number of Contracts Recorded Principal Balance Commercial: Commercial and industrial 0 $ 0 Vacant land, land development and residential construction 0 0 Real estate – owner occupied 0 0 Real estate – non-owner occupied 0 0 Real estate – multi-family and residential rental 0 0 Total commercial 0 0 Retail: Home equity and other 1 20,000 1-4 family mortgages 2 106,000 Total retail 3 126,000 Total 3 $ 126,000 The following originated loans, modified as troubled debt restructurings within the previous twelve 30 December 31, 2018 ( Number of Contracts Recorded Principal Balance Commercial: Commercial and industrial 0 $ 0 Vacant land, land development and residential construction 0 0 Real estate – owner occupied 0 0 Real estate – non-owner occupied 0 0 Real estate – multi-family and residential rental 0 0 Total commercial 0 0 Retail: Home equity and other 0 0 1-4 family mortgages 0 0 Total retail 0 0 Total 0 $ 0 The following acquired loans, modified as troubled debt restructurings within the previous twelve 30 December 31, 2018 ( Number of Contracts Recorded Principal Balance Commercial: Commercial and industrial 0 $ 0 Vacant land, land development and residential construction 0 0 Real estate – owner occupied 0 0 Real estate – non-owner occupied 0 0 Real estate – multi-family and residential rental 0 0 Total commercial 0 0 Retail: Home equity and other 0 0 1-4 family mortgages 0 0 Total retail 0 0 Total 0 $ 0 Activity for originated loans categorized as troubled debt restructurings during the year-ended December 31, 2019 Commercial and Commercial Vacant Land, Land Development, and Residential Commercial Real Estate - Owner Commercial Real Estate - Non-Owner Commercial Real Estate - Multi-Family and Residential Industrial Construction Occupied Occupied Rental Commercial Loan Portfolio: Beginning Balance $ 13,590,000 $ 0 $ 2,682,000 $ 0 $ 0 Charge-Offs 0 0 0 0 0 Payments (20,244,000 ) (2,000 ) (2,947,000 ) 0 0 Transfers to ORE 0 0 0 0 0 Net Additions/Deletions 14,812,000 87,000 1,250,000 0 0 Ending Balance $ 8,158,000 $ 85,000 $ 985,000 $ 0 $ 0 Retail Home Equity and Other Retail 1-4 Family Mortgages Retail Loan Portfolio: Beginning Balance $ 938,000 $ 142,000 Charge-Offs 0 0 Payments (114,000 ) (110,00 |