Loans, Allowance for Loan Losses, and Credit Quality Indicators | NOTE 5 – LOANS, ALLOWANCE FOR LOAN LOSSES, AND CREDIT QUALITY INDICATORS: Loans are stated at the amount of unpaid principal net of loan premiums or discounts for purchased loans, net deferred loan origination fees, discounts associated with retained portions of loans sold, and an allowance for loan losses. Interest on loans is calculated using the simple-interest method on daily balances of the principal amount outstanding. Loan origination fees, net of origination costs and discounts, are amortized over the lives of the loans as adjustments to yield. Major classifications of loans at December 31 are as follows: December 31, % of gross December 31, % of gross 2015 loans 2014 loans Real estate secured loans: Multi-family residential $ 66,445 4.7 % $ 51,586 4.9 % Residential 1-4 family 53,776 3.8 % 47,222 4.5 % Owner-occupied commercial 364,742 26.0 % 259,805 24.8 % Nonowner-occupied commercial 300,774 21.4 % 201,558 19.3 % Total permanent real estate loans 785,737 55.9 % 560,171 53.5 % Construction loans: Multi-family residential 7,027 0.5 % 8,472 0.8 % Residential 1-4 family 30,856 2.2 % 28,109 2.7 % Commercial real estate 42,680 3.0 % 18,595 1.8 % Commercial bare land and acquisition & development 20,537 1.5 % 12,159 1.2 % Residential bare land and acquisition & development 7,268 0.5 % 6,632 0.6 % Total construction real estate loans 108,368 7.7 % 73,967 7.1 % Total real estate loans 894,105 63.6 % 634,138 60.6 % Commercial loans 501,976 35.7 % 406,568 38.9 % Consumer loans 3,351 0.2 % 3,862 0.4 % Other loans 6,580 0.5 % 1,443 0.1 % Gross loans 1,406,012 100.00 % 1,046,011 100.0 % Deferred loan origination fees (1,530 ) (990 ) 1,404,482 1,045,021 Allowance for loan losses (17,301 ) (15,637 ) Total loans, net of allowance for loan losses and net deferred fees $ 1,387,181 $ 1,029,384 At December 31, 2015, outstanding loans to dental professionals totaled $340,162 and represented 24.19% of total outstanding loans compared to dental professional loans of $306,391 or 29.29% of total loans at December 31, 2014. Additional information about the Company’s dental portfolio can be found in Note 6. There are no other industry concentrations in excess of 10.00% of the total loan portfolio. However, as of December 31, 2015, 63.60% of the Company’s loan portfolio was collateralized by real estate and is, therefore, susceptible to changes in local market conditions. While appropriate action is taken to manage identified concentration risks, management believes that the loan portfolio is well diversified by geographic location and among industry groups. Purchased Loans The following table represents the contractually required principal payments and the carrying balance of loans acquired in the Century Bank acquisition and the Capital Pacific Bank acquisition, at December 31, 2015, 2014 and 2013, respectively. December 31, 2015 2014 2013 Contractually required principal payments $ 183,347 $ 28,187 $ 44,358 Purchase adjustment for credit and interest rate (3,958 ) (881 ) (1,341 ) Balance of acquired loans $ 179,389 $ 27,306 $ 43,017 Purchased Credit Impaired Loans On March 6, 2015, the Bank acquired purchased credit impaired loans with a fair value of $9,464, associated with the Capital Pacific Acquisition. The contractually required principal and interest payments at acquisition totaled $13,897, of which $646 were not expected to be collected . The following table represents the contractually required principal balance of purchased impaired loans and the carrying balance at December 31, 2015, 2014 and 2013: December 31, 2015 2014 2013 Contractually required principal payments for purchased credit impaired loans $ 11,528 $ 2,753 $ 3,257 Accretable yield (1,070 ) (151 ) (377 ) Nonaccretable yield (378 ) (321 ) (321 ) Balance of purchased credit impaired loans $ 10,080 $ 2,282 $ 2,559 The following tables summarize the changes in the accretable yield for purchased impaired loans for the year ended December 31, 2015 and 2014: Year ended December 31, 2015 Century Capital Pacific Total Balance, beginning of period $ 151 $ — $ 151 Additions — 1,569 1,569 Accretion to interest income (111 ) (539 ) (650 ) Balance, end of period $ 40 $ 1,030 $ 1,070 Year ended Century Balance, beginning of period $ 377 Additions — Accretion to interest income (226 ) Balance, end of period $ 151 Allowance for Loan Losses The allowance for loan losses is established as an amount that management considers adequate to absorb possible losses on existing loans within the portfolio. The allowance consists of general, specific, and unallocated components. The general component is based upon all loans collectively evaluated for impairment. The specific component is based upon all loans individually evaluated for impairment. The unallocated component represents credit losses inherent in the loan portfolio that may not have been contemplated in the general risk factors or the specific allowance analysis. Loans are charged against the allowance when management believes the collection of principal and interest is unlikely. The Company performs regular credit reviews of the loan portfolio to determine the credit quality and adherence to underwriting standards. When loans are originated, they are assigned a risk rating that is reassessed periodically during the term of the loan through the credit review process. The Company’s internal risk rating methodology assigns risk ratings ranging from one to ten, where a higher rating represents higher risk. The ten-point risk rating categories are a primary factor in determining an appropriate amount for the allowance for loan losses. Estimated credit losses reflect consideration of all significant factors that affect the collectability of the loan portfolio. The historical loss rate for each group of loans with similar risk characteristics is determined based on the Company’s own loss experience in that group. Historical loss experience and recent trends in losses provides a reasonable starting point for analysis, however they do not by themselves form a sufficient basis to determine the appropriate level for the allowance for loan losses. Qualitative or environmental factors that are likely to cause estimated credit losses to differ from historical losses are also considered including but not limited to: • Changes in international, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments, • Changes in the nature and volume of the portfolio and in the terms of loans, • Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans, • Changes in the quality of the institution’s loan review system, • Changes in the value of underlying collateral for collateral-dependent loans, • The existence and effect of any concentrations of credit, and changes in the level of such concentrations, • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio, • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses, and • Changes in the current and future US political environment, including debt ceiling negotiations, government shutdown and healthcare reform that may affect national, regional and local economic conditions, taxation, or disruption of national or global financial markets. The adequacy of the allowance for loan losses and the reserve for unfunded commitments is determined using a consistent, systematic methodology and is monitored regularly based on management’s evaluation of numerous factors. For each portfolio segment, these factors include: • The quality of the current loan portfolio, • The trend in the migration of the loan portfolio’s risk ratings, • The velocity of migration of losses and potential losses, • Current economic conditions, • Loan concentrations, • Loan growth rates, • Past-due and nonperforming trends, • Evaluation of specific loss estimates for all significant problem loans, • Recovery experience, and • Peer comparison loss rates. During 2013, the Company changed to full migration analysis from the method of probability of default and loss given default, to determine the appropriate amount of general reserves. The Company believes the change provides a more granular analysis accounting for changes in the composition of the portfolio and credit quality deterioration. This method of analysis involves tracking the loss experience on a rolling population of loans over a period of several quarters and the collection and analysis of historical data to determine what rate of loss the Bank has incurred on similarly criticized loans and how the current portfolio could migrate to loss. The change in methodology did not have a material impact on the allowance for loan losses calculation. The following tables present a summary of the activity in the allowance for loan losses by major loan classification for the periods ended December 31, 2015, 2014 and 2013: For the year ended December 31, 2015 Commercial Real Construction Consumer Unallocated Total Beginning balance $ 5,733 $ 7,494 $ 1,077 $ 54 $ 1,279 $ 15,637 Charge-offs (630 ) (61 ) — (9 ) — (700 ) Recoveries 562 76 16 15 — 669 Provision (reclassification) 684 788 165 (14 ) 72 1,695 Ending balance $ 6,349 $ 8,297 $ 1,258 $ 46 $ 1,351 $ 17,301 For the year ended December 31, 2014 Commercial Real Construction Consumer Unallocated Total Beginning balance $ 5,113 $ 7,668 $ 1,493 $ 68 $ 1,575 $ 15,917 Charge-offs (610 ) (58 ) (155 ) (12 ) — (835 ) Recoveries 348 186 16 5 — 555 Provision (reclassification) 882 (302 ) (277 ) (7 ) (296 ) — Ending balance $ 5,733 $ 7,494 $ 1,077 $ 54 $ 1,279 $ 15,637 For the year ended December 31, 2013 Commercial Real Construction Consumer Unallocated Total Beginning balance $ 3,846 $ 9,456 $ 1,987 $ 70 $ 986 $ 16,345 Charge-offs (1,658 ) (407 ) — (23 ) — (2,088 ) Recoveries 982 360 60 8 — 1,410 Provision (reclassification) 1,943 (1,741 ) (554 ) 13 589 250 Ending balance $ 5,113 $ 7,668 $ 1,493 $ 68 $ 1,575 $ 15,917 The following table presents the allowance and recorded investment in loans by major loan classification at December 31, 2015, and 2014: December 31, 2015 Commercial Real Construction Consumer Unallocated Total Ending allowance: collectively evaluated for impairment $ 6,303 $ 8,267 $ 1,159 $ 46 $ 1,351 $ 17,126 Ending allowance: individually evaluated for impairment 46 30 99 — — 175 Ending allowance: loans acquired with deteriorated credit quality — — — — — — Total ending allowance $ 6,349 $ 8,297 $ 1,258 $ 46 $ 1,351 $ 17,301 Ending loan balance: collectively evaluated for impairment $ 504,261 $ 771,543 $ 107,977 $ 3,351 $ — $ 1,387,132 Ending loan balance: individually evaluated for impairment 2,627 5,782 391 — — 8,800 Ending loan balance: loans acquired with deteriorated credit quality 1,668 8,412 — — — 10,080 Total ending loan balance $ 508,556 $ 785,737 $ 108,368 $ 3,351 $ — $ 1,406,012 December 31, 2014 Commercial Real Construction Consumer Unallocated Total Ending allowance: collectively evaluated for impairment $ 5,662 $ 7,438 $ 959 $ 54 $ 1,279 $ 15,392 Ending allowance: individually evaluated for impairment 71 56 118 — — 245 Ending allowance: loans acquired with deteriorated credit quality — — — — — — Total ending allowance $ 5,733 $ 7,494 $ 1,077 $ 54 $ 1,279 $ 15,637 Ending loan balance: collectively evaluated for impairment $ 405,414 $ 553,655 $ 73,610 $ 3,862 $ — $ 1,036,541 Ending loan balance: individually evaluated for impairment 2,514 4,317 357 — — 7,188 Ending loan balance: loans acquired with deteriorated credit quality 83 2,199 — — — 2,282 Total ending loan balance $ 408,011 $ 560,171 $ 73,967 $ 3,862 $ — $ 1,046,011 The 2015 ending allowance includes $175 in specific allowance for $8,800 of impaired loans ($7,527 net of government guarantees). At December 31, 2014, the Company had $7,188 of impaired loans ($6,065 net of government guarantees) with a specific allowance of $245 assigned. Management believes that the allowance for loan losses was adequate as of December 31, 2015. However, future loan losses may exceed the levels provided for in the allowance for loan losses and could possibly result in additional charges to the provision for loan losses. Credit Quality Indicators The Company uses the following loan grades, which are also often used by regulators when assessing the credit quality of a loan portfolio. Pass – Special Mention Substandard – Doubtful – Management strives to consistently apply these definitions when allocating its loans by loan grade. The loan portfolio is continuously monitored for changes in credit quality and management takes appropriate action to update the loan risk ratings accordingly. Management has not changed the Company’s policy towards its use of credit quality indicators during the periods reported. The following tables present the Company’s loan portfolio information by loan type and credit grade at December 31, 2015, and 2014: Credit Quality Indicators As of December 31, 2015 Loan Grade Pass Special Mention Substandard Doubtful Totals Real estate loans Multi-family residential $ 66,208 $ — $ 237 $ — $ 66,445 Residential 1-4 family 49,077 — 4,699 — 53,776 Owner-occupied commercial 353,249 — 11,493 — 364,742 Nonowner-occupied commercial 296,528 — 4,246 — 300,774 Total real estate loans 765,062 — 20,675 — 785,737 Construction Multi-family residential 7,027 — — — 7,027 Residential 1-4 family 30,803 — 53 — 30,856 Commercial real estate 42,580 — 100 — 42,680 Commercial bare land and acquisition & development 20,265 — 272 — 20,537 Residential bare land and acquisition & development 4,969 — 2,299 — 7,268 Total construction loans 105,644 — 2,724 — 108,368 Commercial and other 494,267 — 14,289 — 508,556 Consumer 3,350 — 1 — 3,351 Totals $ 1,368,323 $ — $ 37,689 $ — $ 1,406,012 Percentage of total portfolio 97.32 % 0.00 % 2.68 % 0.00 % 100.00 % Credit Quality Indicators As of December 31, 2014 Loan Grade Pass Special Mention Substandard Doubtful Totals Real estate loans Multi-family residential $ 50,074 $ — $ 1,512 $ — $ 51,586 Residential 1-4 family 39,527 — 7,695 — 47,222 Owner-occupied commercial 254,166 — 5,639 — 259,805 Nonowner-occupied commercial 197,940 — 3,618 — 201,558 Total real estate loans 541,707 — 18,464 — 560,171 Construction Multi-family residential 8,472 — — — 8,472 Residential 1-4 family 28,109 — — — 28,109 Commercial real estate 17,645 — 950 — 18,595 Commercial bare land and acquisition & development 11,917 — 242 — 12,159 Residential bare land and acquisition & development 5,954 — 678 — 6,632 Total construction loans 72,097 — 1,870 — 73,967 Commercial and other 395,918 — 12,093 — 408,011 Consumer 3,854 — 8 — 3,862 Totals $ 1,013,576 $ — $ 32,435 $ — $ 1,046,011 Percentage of total portfolio 96.90 % 0.00 % 3.10 % 0.00 % 100.00 % Past Due and Nonaccrual Loans The Company uses the terms “past due” and “delinquent” interchangeably. Amortizing loans are considered past due or delinquent based upon the number of contractually required payments not made. Delinquency status for all contractually matured loans, commercial and commercial real estate loans with non-monthly amortization, and all other extensions of credit is determined based upon the number of calendar months past due. The following tables present an aged analysis of past due and nonaccrual loans at December 31, 2015, and 2014: Aged Analysis of Loans Receivable As of December 31, 2015 Greater 30-59 Days 60-89 Days Than Total Past Past Due Past Due 90 Days Due and Total Total Loans Still Accruing Still Accruing Still Accruing Nonaccrual Nonaccrual Current Receivable Real estate loans Multi-family residential $ — $ — $ — $ — $ — $ 66,445 $ 66,445 Residential 1-4 family — — — 733 733 53,043 53,776 Owner-occupied commercial — — — 2,369 2,369 362,373 364,742 Nonowner-occupied commercial — — — 790 790 299,984 300,774 Total real estate loans — — — 3,892 3,892 781,845 785,737 Construction Multi-family residential — — — — — 7,027 7,027 Residential 1-4 family 480 — — 53 533 30,323 30,856 Commercial real estate — — — — — 42,680 42,680 Commercial bare land and acquisition & development — — — — — 20,537 20,537 Residential bare land and acquisition & development — — — — — 7,268 7,268 Total construction loans 480 — — 53 533 107,835 108,368 Commercial and other — — — 1,564 1,564 506,992 508,556 Consumer 1 3 — — 4 3,347 3,351 Total $ 481 $ 3 $ — $ 5,509 $ 5,993 $ 1,400,019 $ 1,406,012 Percentage of total portfolio 0.03 % 0.00 % 0.00 % 0.39 % 0.43 % 99.57 % 100.00 % Aged Analysis of Loans Receivable As of December 31, 2014 Greater 30-59 Days 60-89 Days Than Total Past Past Due Past Due 90 Days Due and Total Total Loans Still Accruing Still Accruing Still Accruing Nonaccrual Nonaccrual Current Receivable Real estate loans Multi-family residential $ — $ — $ — $ — $ — $ 51,586 $ 51,586 Residential 1-4 family 568 — — 320 888 46,333 47,221 Owner-occupied commercial — — — 599 599 259,206 259,805 Nonowner-occupied commercial 605 — — 906 1,511 200,047 201,558 Total real estate loans 1,173 — — 1,825 2,998 557,172 560,170 Construction Multi-family residential — — — — — 8,472 8,472 Residential 1-4 family — — — — — 28,109 28,109 Commercial real estate — — — — — 18,595 18,595 Commercial bare land and acquisition & development — — — — — 12,159 12,159 Residential bare land and acquisition & development — — — — — 6,632 6,632 Total construction loans — — — — — 73,967 73,967 Commercial and other 327 — — 870 1,197 406,815 408,012 Consumer 4 1 — — 5 3,857 3,862 Total $ 1,504 $ 1 $ — $ 2,695 $ 4,200 $ 1,041,811 $ 1,046,011 Percentage of total portfolio 0.14 % 0.00 % 0.00 % 0.26 % 0.40 % 99.60 % 100.00 % Impaired Loans Regular credit reviews of the portfolio are performed to identify loans that are considered potentially impaired. Potentially impaired loans are referred to the ALCO for review and are included in the specific calculation of allowance for loan losses. A loan is considered impaired when, based on current information and events, the Company is unlikely to collect all principal and interest due according to the terms of the loan agreement. When the amount of the impairment represents a confirmed loss it is charged off against the allowance for loan losses. Impaired loans are often reported net of government guarantees to the extent that the guarantees are expected to be collected. Impaired loans generally include all loans classified as nonaccrual and troubled debt restructurings. Accrual of interest is discontinued on impaired loans when management believes that, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of principal or interest is doubtful. Accrued, but uncollected interest is generally reversed when loans are placed on nonaccrual status. Interest income is subsequently recognized only to the extent cash payments are received satisfying all delinquent principal and interest amounts, and the prospects for future payments in accordance with the loan agreement appear relatively certain. In accordance with GAAP, payments received on nonaccrual loans are applied to the principal balance and no interest income is recognized. Interest income may be recognized on impaired loans that are not on nonaccrual status. The following tables display an analysis of the Company’s impaired loans at December 31, 2015, and 2014: Impaired Loan Analysis As of December 31, 2015 Recorded Specific Recorded With Specific Recorded Unpaid Average Related Real estate Multi-family residential $ — $ — $ — $ — $ — $ — Residential 1-4 family 374 308 682 911 766 5 Owner-occupied commercial 2,788 — 2,788 2,788 1,177 — Nonowner-occupied commercial 2,287 25 2,312 2,374 2,395 25 Total real estate loans 5,449 333 5,782 6,073 4,338 30 Construction Multi-family residential — — — — — — Residential 1-4 family 53 — 53 72 32 — Commercial real estate — — — — — — Commercial bare land and acquisition & development — — — — — — Residential bare land and acquisition & development — 338 338 338 347 99 Total construction loans 53 338 391 410 379 99 Commercial and other 2,091 536 2,627 3,018 2,404 46 Consumer — — — — — — Total impaired loans $ 7,593 $ 1,207 $ 8,800 $ 9,501 $ 7,121 $ 175 Impaired Loan Analysis As of December 31, 2014 Recorded Specific Recorded Specific Recorded Unpaid Average Related Real estate Multi-family residential $ — $ — $ — $ — $ — $ — Residential 1-4 family 455 313 768 996 1,005 2 Owner-occupied commercial 1,046 — 1,046 1,046 1,756 — Nonowner-occupied commercial 2,449 54 2,503 2,523 1,927 54 Total real estate loans 3,950 367 4,317 4,565 4,688 56 Construction Multi-family residential — — — — — — Residential 1-4 family — — — — — — Commercial real estate — — — — — — Commercial bare land and acquisition & development — — — — — — Residential bare land and acquisition & development — 357 357 357 365 118 Total construction loans — 357 357 357 365 118 Commercial and other 1,942 572 2,514 2,823 3,831 71 Consumer — — — — — — Total impaired loans $ 5,892 $ 1,296 $ 7,188 $ 7,745 $ 8,884 $ 245 The impaired balances reported above are not adjusted for government guarantees of $1,273 and $1,123 at December 31, 2015, and December 31, 2014, respectively. The recorded investment in impaired loans, net of government guarantees, totaled $7,527 and $6,065 at December 31, 2015, and December 31, 2014, respectively. Troubled Debt Restructurings In the normal course of business, the Company may modify the terms of certain loans, attempting to protect as much of its investment as possible. Management evaluates the circumstances surrounding each modification to determine whether it is a troubled debt restructuring (“TDR”). TDRs exist when 1) the restructuring constitutes a concession, and 2) the debtor is experiencing financial difficulties. The following table displays the Company’s TDRs by class at December 31, 2015, and 2014: Troubled Debt Restructurings as of December 31, 2015 December 31, 2014 Number of Outstanding Recorded Number of Outstanding Recorded Real estate Multifamily residential — $ — — $ — Residential 1-4 family 6 682 7 768 Owner-occupied commercial 3 2,788 2 1,046 Non owner-occupied commercial 7 2,312 7 2,503 Total real estate loans 16 5,782 16 4,317 Construction Multifamily residential — — — — Residential 1-4 family — — — — Commercial real estate — — — — Commercial bare land and acquisition & development — — — — Residential bare land and acquisition & development — — — — Total construction loans — — — — Commercial and other 11 2,170 12 2,259 Consumer — — — — 27 $ 7,952 28 $ 6,576 The recorded investment on TDRs in nonaccrual status totaled $1,807 and $1,649 at December 31, 2015, and December 31, 2014, respectively. The Bank’s policy is that loans placed on non-accrual will typically remain on non-accrual status until all principal and interest payments are brought current and the prospect for future payment in accordance with the loan agreement appear relatively certain. The Bank’s policy generally refers to six months of payment performance as sufficient to warrant a return to accrual status. For the twelve months ended December 31, 2015, the Company restructured two loans into troubled debt testructurings for which impairment was previously measured under the Company’s general loan loss allowance methodology. The total recorded investment in such receivables was $2,077, and the associated allowance for loan losses was $0 at December 31, 2015. The types of modifications offered can generally be described in the following categories: Rate Modification Term Modification Interest Only Modification Combination Modification The following tables present newly restructured loans that occurred during the twelve months ended December 31, 2015, and 2014, respectively: Troubled Debt Restructurings Identified during the twelve months ended December 31, 2015 Rate Term Interest Only Combination Real estate Multifamily residential $ — $ — $ — $ — Residential 1-4 family — — — — Owner-occupied commercial — 1,780 — — Non owner-occupied commercial — — — — Total real estate loans — 1,780 — — Construction Multifamily residential — — — — Residential 1-4 family — — — — Commercial real estate — — — — Commercial bare land and acquisition & development — — — — Residential bare land and acquisition & development — — — — Total construction loans — — — — Commercial and other 297 — — — Consumer — — — — $ 297 $ 1,780 $ — $ — Troubled Debt Restructurings Identified during the twelve months ended December 31, 2014 Rate Term Interest Only Combination Real estate Multifamily residential $ — $ — $ — $ — Residential 1-4 family — — — — Owner-occupied commercial — — — — Non owner-occupied commercial — 1,597 548 — Total real estate loans — 1,597 548 — Construction Multifamily residential — — — — Residential 1-4 family — — — — Commercial real estate — — — — Commercial bare land and acquisition & development — — — — Residential bare land and acquisition & development — — — — Total construction loans — — — — Commercial and other 221 274 483 — Consumer — — — — $ 221 $ 1,871 $ 1,031 $ — Subsequent to a loan being classified as a TDR, a borrower may become unwilling or unable to abide by the terms of the modified agreement. In such cases of default, the Company takes appropriate action to secure additional payments including the use of foreclosure proceedings. The following table presents loans receivable modified as troubled debt restructurings that subsequently defaulted within twelve months during the period: Troubled Debt Restructurings That Subsequently Defaulted within the 12 Months ended December 31, 2015 2014 Number of Recorded Number of Recorded Real estate Multifamily residential — $ — — $ — Residential 1-4 family — — — — Owner-occupied commercial — — — — Non owner-occupied commercial — — 3 548 Total real estate loans — — 3 548 Construction Multifamily residential — — — — Residential 1-4 family — — — — Commercial real estate — — — — Commercial bare land and acquisition & development — — — — Residential bare land and acquisition & development — — — — Total construction loans — — — — Commercial and other — — — — Consumer — — — — — $ — 3 $ 548 At December 31, 2015, and December 31, 2014, the Company had no commitments to lend additional funds on loans restructured as TDRs. |