Loans And Leases | 5. Loans and leases The classifications of loans and leases at March 31, 2019 and December 31, 2018 are summarized as follows: (dollars in thousands) March 31, 2019 December 31, 2018 Commercial and industrial $ 120,815 $ 126,884 Commercial real estate: Non-owner occupied 97,605 95,515 Owner occupied 122,721 124,092 Construction 4,266 6,761 Consumer: Home equity installment 32,311 32,729 Home equity line of credit 51,228 52,517 Auto loans 101,710 105,576 Direct finance leases 16,980 17,004 Other 5,190 6,314 Residential: Real estate 145,036 145,951 Construction 15,670 15,749 Total 713,532 729,092 Less: Allowance for loan losses (9,522) (9,747) Unearned lease revenue (992) (1,028) Loans and leases, net $ 703,018 $ 718,317 Net deferred loan costs of $2.5 million and $2.6 million have been included in the carrying values of loans at March 31, 2019 and December 31, 2018, respectively. Direct finance leases include the lease receivable and the guaranteed lease residual. Unearned lease revenue represents the difference between the lessor’s investment in the property and the gross investment in the lease. Unearned revenue is accrued over the life of the lease using the effective interest method. The Company services real estate loans for investors in the secondary mortgage market which are not included in the accompanying consolidated balance sheets. The approximate unpaid principal balance of mortgages serviced amounted to $311.1 million as of March 31, 2019 and $304.9 million as of December 31, 2018. Mortgage servicing rights amounted to $1.2 million and $1.1 million as of March 31, 2019 and December 31, 2018, respectively. Management is responsible for conducting the Company’s credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The Company utilizes an external independent loan review firm that reviews and validates the credit risk program on at least an annual basis. Results of these reviews are presented to management and the board of directors. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. Non-accrual loans The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. C&I and CRE loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged-off when the loan is 90 days or more past due as to principal and interest. The Company considers all non-accrual loans to be impaired loans. Non-accrual loans, segregated by class, at March 31, 2019 and December 31, 2018, were as follows: (dollars in thousands) March 31, 2019 December 31, 2018 Commercial and industrial $ 156 $ 156 Commercial real estate: Non-owner occupied 459 472 Owner occupied 1,788 1,634 Consumer: Home equity installment 54 463 Home equity line of credit 71 34 Auto loans 25 25 Residential: Real estate 1,199 1,514 Total $ 3,752 $ 4,298 Troubled Debt Restructuring A modification of a loan constitutes a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company considers all TDRs to be impaired loans. The Company typically considers the following concessions when modifying a loan, which may include lowering interest rates below the market rate, temporary interest-only payment periods, term extensions at interest rates lower than the current market rate for new debt with similar risk and/or converting revolving credit lines to term loans. The Company typically does not forgive principal when granting a TDR modification. Of the TDRs outstanding as of March 31, 2019 and 2018, when modified, the concessions granted consisted of temporary interest-only payments, extensions of maturity date, or a reduction in the rate of interest to a below-market rate for a contractual period of time. Other than the TDRs that were placed on non-accrual status, the TDRs were performing in accordance with their modified terms. There were no loans modified in a TDR for the three months ended March 31, 2019. The following presents by class, information related to loans modified in a TDR: Loans modified as TDRs for the three months ended: (dollars in thousands) March 31, 2019 March 31, 2018 Recorded Increase in Recorded Increase in Number investment allowance Number investment allowance of (as of (as of of (as of (as of contracts period end) period end) contracts period end) period end) Consumer home equity installment - $ - $ - 1 $ 414 $ 349 Residential real estate - - - 1 316 - Total - $ - $ - 2 $ 730 $ 349 In the above tables, the period end balance is inclusive of all partial pay downs and charge-offs since the modification date. For all loans modified in a TDR, the pre-modification recorded investment was the same as the post-modification recorded investment. Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. There were no loans modified as a TDR within the previous twelve months that subsequently defaulted (i.e. 90 days or more past due following modification) during the three months ended March 31, 2019 and 2018. The allowance for loan losses (allowance) may be increased, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. An allowance for impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price. If the loan is collateral dependent, the estimated fair value of the collateral is used to establish the allowance. As of March 31, 2019 and 2018, respectively, the allowance for impaired loans that have been modified in a TDR was $0.2 million and $0.8 million, respectively. Past due loans Loans are considered past due when the contractual principal and/or interest is not received by the due date. An aging analysis of past due loans, segregated by class, as of the period indicated is as follows (dollars in thousands): Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days March 31, 2019 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 307 $ 123 $ 422 $ 852 $ 119,963 $ 120,815 $ 266 Commercial real estate: Non-owner occupied 346 386 459 1,191 96,414 97,605 - Owner occupied 244 99 1,903 2,246 120,475 122,721 115 Construction - - - - 4,266 4,266 - Consumer: Home equity installment 83 - 54 137 32,174 32,311 - Home equity line of credit 223 - 193 416 50,812 51,228 122 Auto loans 195 6 26 227 101,483 101,710 1 Direct finance leases 14 - 12 26 15,962 15,988 (2) 12 Other 85 2 - 87 5,103 5,190 - Residential: Real estate 209 - 1,199 1,408 143,628 145,036 - Construction - - - - 15,670 15,670 - Total $ 1,706 $ 616 $ 4,268 $ 6,590 $ 705,950 $ 712,540 $ 516 (1) Includes $ 3.8 million of non-accrual loans. (2) Net of unearned lease revenue of $1.0 million. (3) Includes net deferred loan costs of $2.5 million. Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2018 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 1,711 $ 135 $ 156 $ 2,002 $ 124,882 $ 126,884 $ - Commercial real estate: Non-owner occupied 388 113 472 973 94,542 95,515 - Owner occupied 263 513 1,634 2,410 121,682 124,092 - Construction - - - - 6,761 6,761 - Consumer: Home equity installment 50 182 463 695 32,034 32,729 - Home equity line of credit 725 175 34 934 51,583 52,517 - Auto loans 262 86 25 373 105,203 105,576 - Direct finance leases 69 - - 69 15,907 15,976 (2) - Other 79 10 1 90 6,224 6,314 1 Residential: Real estate 557 573 1,514 2,644 143,307 145,951 - Construction - - - - 15,749 15,749 - Total $ 4,104 $ 1,787 $ 4,299 $ 10,190 $ 717,874 $ 728,064 $ 1 (1) Includes $4.3 million of non-accrual loans. (2) Net of unearned lease revenue of $1.0 million. (3) Includes net deferred loan costs of $2.6 million. Impaired loans A loan is considered impaired when, based on current information and events; it is probable that the Company will be unable to collect the payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. At March 31, 2019, impaired loans totaled $5.1 million consisting of $1.3 million in accruing TDRs and $3.8 million in non-accrual loans. At December 31, 2018, impaired loans totaled $6.1 million consisting of $1.8 million in accruing TDRs and $4.3 million in non-accrual loans. As of March 31, 2019, the non-accrual loans included three TDRs to three unrelated borrowers totaling $1.1 million compared with four TDRs to three unrelated borrowers totaling $1.7 million as of December 31, 2018. Impaired loans, segregated by class, as of the period indicated are detailed below: Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance March 31, 2019 Commercial and industrial $ 271 $ 156 $ 24 $ 180 $ 60 Commercial real estate: Non-owner occupied 1,156 857 108 965 194 Owner occupied 3,226 1,623 922 2,545 262 Consumer: Home equity installment 88 - 54 54 - Home equity line of credit 138 14 57 71 9 Auto loans 31 17 8 25 10 Residential: Real estate 1,772 689 510 1,199 38 Total $ 6,682 $ 3,356 $ 1,683 $ 5,039 $ 573 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2018 Commercial and industrial $ 251 $ 156 $ 24 $ 180 $ 41 Commercial real estate: Non-owner occupied 1,176 715 269 984 36 Owner occupied 3,266 1,473 1,455 2,928 559 Consumer: Home equity installment 496 414 49 463 356 Home equity line of credit 74 33 1 34 16 Auto loans 31 17 8 25 10 Residential: Real estate 2,091 29 1,485 1,514 2 Total $ 7,385 $ 2,837 $ 3,291 $ 6,128 $ 1,020 The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon. March 31, 2019 March 31, 2018 Cash basis Cash basis Average Interest interest Average Interest interest recorded income income recorded income income (dollars in thousands) investment recognized recognized investment recognized recognized Commercial and industrial $ 178 $ 1 $ - $ 227 $ - $ - Commercial real estate: Non-owner occupied 1,701 8 - 2,558 23 - Owner occupied 2,589 10 - 3,484 18 - Construction 75 - - 171 - - Consumer: Home equity installment 381 - - 95 2 - Home equity line of credit 42 - - 541 8 - Auto loans 35 - - 12 - - Other 4 - - 6 - - Residential: Real estate 1,347 9 - 1,345 22 - Total $ 6,352 $ 28 $ - $ 8,439 $ 73 $ - Credit Quality Indicators Commercial and industrial and commercial real estate The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the C&I and CRE portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the C&I and CRE portfolios. The following is a description of each risk rating category the Company uses to classify each of its C&I and CRE loans: Pass Loans in this category have an acceptable level of risk and are graded in a range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be competent, and a reasonable succession plan is evident. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality. Special Mention Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Cash flow may not be sufficient to support total debt service requirements. Substandard Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Other loans that are included in the substandard category can be accruing, as well as loans that are current or past due. Loans 90 days or more past due, unless otherwise fully supported, are classified substandard. Also, borrowers that are bankrupt or have loans categorized as TDRs can be graded substandard. Doubtful Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term. Many of the weaknesses present in a substandard loan exist. Liquidation of collateral, if any, is likely. Any loan graded lower than an eight is considered to be uncollectible and charged-off. Consumer and residential The consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. For these portfolios, the Company utilizes payment activity and history in assessing performance. Non-performing loans are comprised of non-accrual loans and loans past due 90 days or more and accruing. All loans not classified as non-performing are considered performing. The following table presents loans including $2.5 million and $2.6 million of deferred costs, segregated by class, categorized into the appropriate credit quality indicator category as of March 31, 2019 and December 31, 2018, respectively: Commercial credit exposure Credit risk profile by creditworthiness category March 31, 2019 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 119,047 $ 413 $ 1,355 $ - $ 120,815 Commercial real estate - non-owner occupied 91,944 1,175 4,486 - 97,605 Commercial real estate - owner occupied 113,266 3,432 6,023 - 122,721 Commercial real estate - construction 4,248 18 - - 4,266 Total commercial $ 328,505 $ 5,038 $ 11,864 $ - $ 345,407 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity March 31, 2019 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 32,257 $ 54 $ 32,311 Home equity line of credit 51,035 193 51,228 Auto loans 101,684 26 101,710 Direct finance leases (1) 15,976 12 15,988 Other 5,190 - 5,190 Total consumer 206,142 285 206,427 Residential Real estate 143,837 1,199 145,036 Construction 15,670 - 15,670 Total residential 159,507 1,199 160,706 Total consumer & residential $ 365,649 $ 1,484 $ 367,133 (1) Net of unearned lease revenue of $1.0 million. Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2018 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 125,272 $ 334 $ 1,278 $ - $ 126,884 Commercial real estate - non-owner occupied 90,373 938 4,204 - 95,515 Commercial real estate - owner occupied 116,577 1,685 5,830 - 124,092 Commercial real estate - construction 6,761 - - - 6,761 Total commercial $ 338,983 $ 2,957 $ 11,312 $ - $ 353,252 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2018 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 32,266 $ 463 $ 32,729 Home equity line of credit 52,483 34 52,517 Auto loans 105,551 25 105,576 Direct finance leases (2) 15,976 - 15,976 Other 6,313 1 6,314 Total consumer 212,589 523 213,112 Residential Real estate 144,437 1,514 145,951 Construction 15,749 - 15,749 Total residential 160,186 1,514 161,700 Total consumer & residential $ 372,775 $ 2,037 $ 374,812 (2) Net of unearned lease revenue of $1.0 million. Allowance for loan losses Management continually evaluates the credit quality of the Company’s loan portfolio and performs a formal review of the adequacy of the allowance on a quarterly basis. The allowance reflects management’s best estimate of the amount of credit losses in the loan portfolio. Management’s judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received. Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows: § identification of specific impaired loans by loan category; § identification of specific loans that are not impaired, but have an identified potential for loss; § calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence; § determination of loans with similar credit characteristics within each class of the loan portfolio segment and eliminating the impaired loans; § application of historical loss percentages (trailing twelve-quarter average) to pools to determine the allowance allocation; § application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. § Qualitative factor adjustments include: o levels of and trends in delinquencies and non-accrual loans; o levels of and trends in charge-offs and recoveries; o trends in volume and terms of loans; o changes in risk selection and underwriting standards; o changes in lending policies and legal and regulatory requirements; o experience, ability and depth of lending management; o national and local economic trends and conditions; and o changes in credit concentrations. Allocation of the allowance for different categories of loans is based on the methodology as explained above. A key element of the methodology to determine the allowance is the Company’s credit risk evaluation process, which includes credit risk grading of individual C&I and CRE loans. C&I and CRE loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The credit risk grades for the C&I and CRE loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades. The loss factors applied are based upon the Company’s historical experience as well as what we believe to be best practices and common industry standards. Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs. The changes in allocations in the C&I and CRE loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies. Each quarter, management performs an assessment of the allowance. The Company’s Special Assets Committee meets quarterly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount, if applicable, based on current accounting guidance. The Special Assets Committee’s focus is on ensuring the pertinent facts are considered regarding not only loans considered for specific reserves, but also the collectability of loans that may be past due in payment. The assessment process also includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company’s Credit Administration function have assigned a criticized or classified risk rating. The Company’s policy is to charge-off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged-off at the point in time when the Company deems the balance, or a portion thereof, to be uncollectible. Information related to the change in the allowance and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: As of and for the three months ended March 31, 2019 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,432 $ 3,901 $ 2,548 $ 1,844 $ 22 $ 9,747 Charge-offs (28) (361) (89) (35) - (513) Recoveries 6 2 25 - - 33 Provision (3) 485 (354) 101 26 255 Ending balance $ 1,407 $ 4,027 $ 2,130 $ 1,910 $ 48 $ 9,522 Ending balance: individually evaluated for impairment $ 60 $ 456 $ 19 $ 38 $ - $ 573 Ending balance: collectively evaluated for impairment $ 1,347 $ 3,571 $ 2,111 $ 1,872 $ 48 $ 8,949 Loans Receivables: Ending balance (2) $ 120,815 $ 224,592 $ 206,427 (1) $ 160,706 $ - $ 712,540 Ending balance: individually evaluated for impairment $ 180 $ 3,510 $ 150 $ 1,199 $ - $ 5,039 Ending balance: collectively evaluated for impairment $ 120,635 $ 221,082 $ 206,277 $ 159,507 $ - $ 707,501 (1) Net of unearned lease revenue of $1.0 million. (2) Includes $2.5 million of net deferred loan costs. As of and for the year ended December 31, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Charge-offs (196) (268) (391) (371) - (1,226) Recoveries 77 42 211 - - 330 Provision 177 67 665 607 (66) 1,450 Ending balance $ 1,432 $ 3,901 $ 2,548 $ 1,844 $ 22 $ 9,747 Ending balance: individually evaluated for impairment $ 41 $ 595 $ 382 $ 2 $ - $ 1,020 Ending balance: collectively evaluated for impairment $ 1,391 $ 3,306 $ 2,166 $ 1,842 $ 22 $ 8,727 Loans Receivables: Ending balance (2) $ 126,884 $ 226,368 $ 213,112 (1) $ 161,700 $ - $ 728,064 Ending balance: individually evaluated for impairment $ 180 $ 3,912 $ 522 $ 1,514 $ - $ 6,128 Ending balance: collectively evaluated for impairment $ 126,704 $ 222,456 $ 201,506 $ 160,186 $ - $ 710,852 (1) Net of unearned lease revenue of 1 .0 million. (2) Includes $2.6 million of net deferred loan costs. As of and for the three months ended March 31, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Charge-offs (15) (43) (112) (5) - (175) Recoveries 54 3 33 - - 90 Provision (177) (32) 486 59 (36) 300 Ending balance $ 1,236 $ 3,988 $ 2,470 $ 1,662 $ 52 $ 9,408 Direct finance leases On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) , and subsequent related updates to revise the accounting for leases. Additionally the Company early adopted ASU 2019-01, Codification Improvements , as of January 1, 2019. See Footnote 2, “New accounting pronouncements,” for additional information about adoption of these standards. Lessor accounting was largely unchanged as a result of the standard. Upon adoption of the standard, the lease residual was reclassified from other assets to direct finance leases within loans and leases in the current period and all comparative periods. Additional disclosures required under the standard are included in this section and in Footnote 11, “Leases”. The Company originates direct finance leases through two automobile dealerships. The carrying amount of the Company’s lease receivables was $4.7 million and $4.9 million as of March 31, 2019 and December 31, 2018. The residual value of the direct finance leases is fully guaranteed by the dealerships. Residual values amounted to $11.3 million and $11.1 million at March 31, 2019 and December 31, 2018, respectively. The undiscounted cash flows to be received on an annual basis for the direct finance leases are as follows: (dollars in thousands) Amount 2019 $ 4,521 2020 5,298 2021 4,966 2022 1,675 2023 511 2024 and thereafter 9 Total future minimum lease payments receivable 16,980 Less: Unearned income (992) Undiscounted cash flows to be received $ 15,988 |