Loans Receivable and Allowance for Loan Losses | 6. Loans Receivable and Allowance for Loan Losses Loans acquired in connection with The Wilton acquisition in November 2013 and The Quinnipiac acquisition in October 2014 are referred to as “acquired” loans as a result of the manner in which they are accounted for, which was at fair value at the date of acquisition. All other loans are referred to as “originated” loans. Accordingly, selected credit quality disclosures that follow are presented separately for the originated loan portfolio and the acquired loan portfolio. The following table sets forth a summary of the loan portfolio at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Originated Acquired Total Originated Acquired Total (In thousands) Real estate loans: Residential $ 186,107 $ 7,417 $ 193,524 $ 187,098 $ 8,631 $ 195,729 Commercial 945,277 41,965 987,242 802,156 43,166 845,322 Construction 101,636 — 101,636 107,329 112 107,441 1,233,020 49,382 1,282,402 1,096,583 51,909 1,148,492 Commercial business 249,719 10,276 259,995 198,456 17,458 215,914 Consumer 192 427 619 672 861 1,533 Total loans 1,482,931 60,085 1,543,016 1,295,711 70,228 1,365,939 Allowance for loan losses (18,848 ) (56 ) (18,904 ) (17,883 ) (99 ) (17,982 ) Deferred loan origination fees, net (3,242 ) — (3,242 ) (4,071 ) — (4,071 ) Unamortized loan premiums 8 — 8 9 — 9 Loans receivable, net $ 1,460,849 $ 60,029 $ 1,520,878 $ 1,273,766 $ 70,129 $ 1,343,895 Lending activities are conducted principally in the New York metropolitan area, including the Fairfield and New Haven County regions of Connecticut, and consist of residential and commercial real estate loans, commercial business loans and a variety of consumer loans. Loans may also be granted for the construction of residential homes and commercial properties. All residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The following table summarizes activity in the accretable yields for the acquired loan portfolio for the years ended December 31, 2017 and 2016: 2017 2016 (In thousands) Balance at beginning of period $ 666 $ 871 Accretion (113 ) (154 ) Other (a) — (51 ) Balance at end of period $ 553 $ 666 (a) Represents changes in cash flows expected to be collected due to loan sales or payoffs. Risk management The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and extends credit of up to 80% of the market value of the collateral, depending on the borrowers’ creditworthiness and the type of collateral. The borrower’s ability to service the debt is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, time deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans, to be based on the borrower’s ability to generate continuing cash flows. In the fourth quarter of 2017 management made the strategic decision to no longer originate residential mortgage loans. The Company’s policy for residential lending allowed that, generally, the amount of the loan may not exceed 80% of the original appraised value of the property. In certain situations, the amount may have exceeded 80% LTV either with private mortgage insurance being required for that portion of the residential loan in excess of 80% of the appraised value of the property or where secondary financing is provided by a housing authority program second mortgage, a community’s low/moderate income housing program, or a religious or civic organization. Private mortgage insurance may have been required for that portion of the residential first mortgage loan in excess of 80% of the appraised value of the property. Credit quality of loans and the allowance for loan losses Management segregates the loan portfolio into portfolio segments. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The Company’s loan portfolio is segregated into the following portfolio segments: Residential Real Estate: Commercial Real Estate: Construction: Commercial Business: Consumer: Allowance for loan losses As of December 31, 2017 the Company has changed its methodology to estimate its allowance for loan losses. The change in methodology resulted in an update to the underlying loan loss assumptions, incorporating the most recent industry, peer and product loss trends. This resulted in a non-recurring, pretax $1.3 million reduction in the reserve. The following tables set forth the activity in the Company’s allowance for loan losses for the years ended December 31, 2017, 2016 and 2015, by portfolio segment: Residential Commercial Construction Commercial Consumer Total (In thousands) December 31, 2017 Originated Beginning balance $ 1,802 $ 9,386 $ 2,105 $ 4,240 $ 350 $ 17,883 Charge-offs — — — (478 ) (32 ) (510 ) Recoveries 146 — — 4 3 153 Provisions (227 ) 3,355 (1,198 ) (288 ) (320 ) 1,322 Ending balance $ 1,721 $ 12,741 $ 907 $ 3,478 $ 1 $ 18,848 Acquired Beginning balance $ — $ 29 $ — $ 43 $ 27 $ 99 Charge-offs — — — (43 ) (19 ) (62 ) Recoveries — — — — — — Provisions — 7 — 20 (8 ) 19 Ending balance $ — $ 36 $ — $ 20 $ — $ 56 Total Beginning balance $ 1,802 $ 9,415 $ 2,105 $ 4,283 $ 377 $ 17,982 Charge-offs — — — (521 ) (51 ) (572 ) Recoveries 146 — — 4 3 153 Provisions (227 ) 3,362 (1,198 ) (268 ) (328 ) 1,341 Ending balance $ 1,721 $ 12,777 $ 907 $ 3,498 $ 1 $ 18,904 Residential Commercial Construction Commercial Consumer Total (In thousands) December 31, 2016 Originated Beginning balance $ 1,618 $ 7,693 $ 1,504 $ 3,310 $ 3 $ 14,128 Charge-offs — — — (59 ) (10 ) (69 ) Recoveries — — — — 8 8 Provisions 184 1,693 601 989 349 3,816 Ending balance $ 1,802 $ 9,386 $ 2,105 $ 4,240 $ 350 $ 17,883 Acquired Beginning balance $ — $ 12 $ — $ 24 $ 5 $ 41 Charge-offs — — (7 ) (10 ) (25 ) (42 ) Recoveries — — — — 2 2 Provisions — 17 7 29 45 98 Ending balance $ — $ 29 $ — $ 43 $ 27 $ 99 Total Beginning balance $ 1,618 $ 7,705 $ 1,504 $ 3,334 $ 8 $ 14,169 Charge-offs — — (7 ) (69 ) (35 ) (111 ) Recoveries — — — — 10 10 Provisions 184 1,710 608 1,018 394 3,914 Ending balance $ 1,802 $ 9,415 $ 2,105 $ 4,283 $ 377 $ 17,982 Residential Commercial Construction Commercial Consumer Total (In thousands) December 31, 2015 Originated Beginning balance $ 1,636 $ 5,480 $ 1,102 $ 2,638 $ 4 $ 10,860 Charge-offs — — — — (6 ) (6 ) Recoveries — — — — 7 7 Provisions (18 ) 2,213 402 672 (2 ) 3,267 Ending balance $ 1,618 $ 7,693 $ 1,504 $ 3,310 $ 3 $ 14,128 Acquired Beginning balance $ — $ — $ — $ — $ — $ — Charge-offs — — — (15 ) (9 ) (24 ) Recoveries — — — 100 2 102 Provisions — 12 — (61 ) 12 (37 ) Ending balance $ — $ 12 $ — $ 24 $ 5 $ 41 Total Beginning balance $ 1,636 $ 5,480 $ 1,102 $ 2,638 $ 4 $ 10,860 Charge-offs — — — (15 ) (15 ) (30 ) Recoveries — — — 100 9 109 Provisions (18 ) 2,225 402 611 10 3,230 Ending balance $ 1,618 $ 7,705 $ 1,504 $ 3,334 $ 8 $ 14,169 Loans evaluated for impairment and the related allowance for loan losses as of December 31, 2017 and 2016 were as follows: Originated Loans Acquired Loans Total Portfolio Allowance Portfolio Allowance Portfolio Allowance (In thousands) December 31, 2017 Loans individually evaluated for impairment: Residential real estate $ 4,168 $ 8 $ 439 $ — $ 4,607 $ 8 Commercial real estate 6,416 842 1,170 34 7,586 876 Commercial business 2,126 51 534 20 2,660 71 Subtotal 12,710 901 2,143 54 14,853 955 Loans collectively evaluated for impairment: Residential real estate 181,939 1,713 6,978 — 188,917 1,713 Commercial real estate 938,861 11,899 40,795 2 979,656 11,901 Construction 101,636 907 — — 101,636 907 Commercial business 247,593 3,427 9,742 — 257,335 3,427 Consumer 192 1 427 — 619 1 Subtotal 1,470,221 17,947 57,942 2 1,528,163 17,949 Total $ 1,482,931 $ 18,848 $ 60,085 $ 56 $ 1,543,016 $ 18,904 Originated Loans Acquired Loans Total Portfolio Allowance Portfolio Allowance Portfolio Allowance (In thousands) December 31, 2016 Loans individually evaluated for impairment: Residential real estate $ 1,228 $ — $ 453 $ — $ 1,681 $ — Commercial real estate 774 1 144 7 918 8 Commercial business 920 5 962 37 1,882 42 Consumer 341 341 27 27 368 368 Subtotal 3,263 347 1,586 71 4,849 418 Loans collectively evaluated for impairment: Residential real estate 185,870 1,802 8,178 — 194,048 1,802 Commercial real estate 801,382 9,385 43,022 22 844,404 9,407 Construction 107,329 2,105 112 — 107,441 2,105 Commercial business 197,536 4,235 16,496 6 214,032 4,241 Consumer 331 9 834 — 1,165 9 Subtotal 1,292,448 17,536 68,642 28 1,361,090 17,564 Total $ 1,295,711 $ 17,883 $ 70,228 $ 99 $ 1,365,939 $ 17,982 Credit quality indicators To measure credit risk for the loan portfolios, the Company employs a credit risk rating system. This risk rating represents an assessed level of the loan’s risk based on the character and creditworthiness of the borrower/guarantor, the capacity of the borrower to adequately service the debt, any credit enhancements or additional sources of repayment, and the quality, value and coverage of the collateral, if any. The objectives of the Company’s risk rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize credit loss, to identify relevant trends affecting the collectability of the loan portfolio and to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for loan losses. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default. Risk ratings of 1 through 5 are Pass categories and risk ratings of 6 through 9 are criticized asset categories as defined by the regulatory agencies. A “Special Mention” (6) credit has a potential weakness which, if uncorrected, may result in a deterioration of the repayment prospects or inadequately protect the Company’s credit position at some time in the future. “Substandard” loans (7) are credits that have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt. An asset rated “Doubtful” (8) has all the weaknesses inherent in a substandard asset and which, in addition, make collection or liquidation in full highly questionable and improbable, when considering existing facts, conditions, and values. Loans classified as “Loss” (9) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value; rather, it is not practical or desirable to defer writing-off this basically worthless asset even though partial recovery may be made in the future. Risk ratings are assigned as necessary to differentiate risk within the portfolio. They are reviewed on an ongoing basis through the annual loan review process performed by Company personnel, normal renewal activity and the quarterly watchlist and watched asset report process. They are revised to reflect changes in the borrowers’ financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage as well as other considerations. In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers. The following table presents credit risk ratings by loan segment as of December 31, 2017 and 2016: Commercial Credit Quality Indicators At December 31, 2017 At December 31, 2016 Commercial Construction Commercial Total Commercial Construction Commercial Total (In thousands) Originated loans: Pass $ 920,216 $ 101,636 $ 242,828 $ 1,264,680 $ 797,249 $ 107,329 $ 196,436 $ 1,101,014 Special mention 9,262 — 4,019 13,281 4,605 — 115 4,720 Substandard 15,799 — 2,872 18,671 302 — 1,905 2,207 Doubtful — — — — — — — — Loss — — — — — — — — Total originated loans 945,277 101,636 249,719 1,296,632 802,156 107,329 198,456 1,107,941 Acquired loans: Pass 40,686 — 9,742 50,428 41,582 112 16,836 58,530 Special mention 109 — — 109 1,584 — 86 1,670 Substandard 1,170 — 425 1,595 — — 536 536 Doubtful — — 109 109 — — — — Loss — — — — — — — — Total acquired loans 41,965 — 10,276 52,241 43,166 112 17,458 60,736 Total loans: Pass 960,902 101,636 252,570 1,315,108 838,831 107,441 213,272 1,159,544 Special mention 9,371 — 4,019 13,390 6,189 — 201 6,390 Substandard 16,969 — 3,297 20,266 302 — 2,441 2,743 Doubtful — — 109 109 — — — — Loss — — — — — — — — Total loans $ 987,242 $ 101,636 $ 259,995 $ 1,348,873 $ 845,322 $ 107,441 $ 215,914 $ 1,168,677 Residential and Consumer Credit Quality Indicators At December 31, 2017 At December 31, 2016 Residential Consumer Total Residential Consumer Total (In thousands) Originated loans: Pass $ 181,939 $ 192 $ 182,131 $ 185,252 $ 331 $ 185,583 Special mention — — — 216 — 216 Substandard 4,168 — 4,168 1,630 — 1,630 Doubtful — — — — — — Loss — — — — 341 341 Total originated loans 186,107 192 186,299 187,098 672 187,770 Acquired loans: Pass 6,978 427 7,405 7,646 835 8,481 Special mention — — — 49 — 49 Substandard 439 — 439 936 2 938 Doubtful — — — — — — Loss — — — — 24 24 Total acquired loans 7,417 427 7,844 8,631 861 9,492 Total loans: Pass 188,917 619 189,536 192,898 1,166 194,064 Special mention — — — 265 — 265 Substandard 4,607 — 4,607 2,566 2 2,568 Doubtful — — — — — — Loss — — — — 365 365 Total loans $ 193,524 $ 619 $ 194,143 $ 195,729 $ 1,533 $ 197,262 Loan portfolio aging analysis When a loan is 15 days past due, the Company sends the borrower a late notice. The Company 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 Company mails the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency and ensure the borrower understands the terms of the loan. If necessary, subsequent 90th day of delinquency, the Company may take other appropriate legal action. A summary report of all loans 30 days or more past due is provided to the board of directors of the Company each month. Loans greater than 90 days past due are generally put on nonaccrual status. A nonaccrual loan is restored to accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt. A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms. The following tables set forth certain information with respect to our loan portfolio delinquencies by portfolio segment and amount as of December 31, 2017 and December 31, 2016: As of December 31, 2017 31 – 60 Days 61 – 90 Days Greater Than Total Past Current Total Loans (In thousands) Originated Loans Real estate loans: Residential real estate $ 1,092 $ 2,244 $ 969 $ 4,305 $ 181,802 $ 186,107 Commercial real estate 9,529 4,116 1,444 15,089 930,188 945,277 Construction — — — — 101,636 101,636 Commercial business 4,223 — 142 4,365 245,354 249,719 Consumer — — — — 192 192 Total originated loans 14,844 6,360 2,555 23,759 1,459,172 1,482,931 Acquired Loans Real estate loans: Residential real estate 156 — 192 348 7,069 7,417 Commercial real estate 499 — 630 1,129 40,836 41,965 Commercial business 95 162 339 596 9,680 10,276 Consumer 3 — 2 5 422 427 Total acquired loans 753 162 1,163 2,078 58,007 60,085 Total loans $ 15,597 $ 6,522 $ 3,718 $ 25,837 $ 1,517,179 $ 1,543,016 As of December 31, 2016 31 – 60 Days 61 – 90 Days Greater Than Total Past Current Total Loans (In thousands) Originated Loans Real estate loans: Residential real estate $ — $ 173 $ 969 $ 1,142 $ 185,956 $ 187,098 Commercial real estate 147 1,848 302 2,297 799,859 802,156 Construction — — — — 107,329 107,329 Commercial business — — 378 378 198,078 198,456 Consumer — — — — 672 672 Total originated loans 147 2,021 1,649 3,817 1,291,894 1,295,711 Acquired Loans Real estate loans: Residential real estate — — 453 453 8,178 8,631 Commercial real estate 866 722 143 1,731 41,435 43,166 Construction — — — — 112 112 Commercial business 99 249 — 348 17,110 17,458 Consumer 6 — — 6 855 861 Total acquired loans 971 971 596 2,538 67,690 70,228 Total loans $ 1,118 $ 2,992 $ 2,245 $ 6,355 $ 1,359,584 $ 1,365,939 There were no loans delinquent greater than 90 days and still accruing as of December 31, 2017 and there were no loans delinquent greater than 90 days and still accruing as of December 31, 2016. Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of December 31, 2017 and 2016: December 31, 2017 2016 (In thousands) Residential real estate $ 1,590 $ 1,612 Commercial real estate 3,371 446 Commercial business 520 538 Consumer — 341 Total $ 5,481 $ 2,937 Lost interest income on originated loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the years ended December 31, 2017, 2016 and 2015 was $174 thousand, $17 thousand and $25 thousand, respectively. The amount of actual interest income recognized on these loans was $68 thousand, $74 thousand and $43 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017 and 2016, there were no commitments to lend additional funds to borrowers on nonaccrual status, respectively. Impaired loans An impaired loan generally is one for which it is probable, based on current information, the Company will not collect all the amounts due in accordance with the contractual terms of the loan. Loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it provides a specific valuation allowance for that portion of the asset that is estimated to be impaired. The following table summarizes impaired loans by portfolio segment and the average carrying amount and interest income recognized on impaired loans by portfolio segment as of December 31, 2017, 2016 and 2015: As of and for the Year Ended December 31, 2017 Carrying Unpaid Associated Average Interest (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ 3,076 $ 3,094 $ — $ 3,080 $ — Commercial real estate 859 875 — 881 11 Construction — — — — — Commercial business 1,548 1,548 — 1,621 70 Total impaired loans without a valuation allowance $ 5,483 $ 5,517 $ — $ 5,582 $ 81 Impaired loans with a valuation allowance: Residential real estate $ 1,092 $ 1,092 $ 8 $ 1,100 $ — Commercial real estate 5,557 5,557 842 5,603 261 Commercial business 578 578 51 588 47 Total impaired loans with a valuation allowance 7,227 7,227 901 7,291 308 Total originated impaired loans $ 12,710 $ 12,744 $ 901 $ 12,873 $ 389 Acquired Impaired loans without a valuation allowance: Residential real estate $ 439 $ 462 $ — $ 450 $ — Commercial real estate 982 1,040 — 1,035 10 Commercial Business 402 476 — 488 19 Consumer — — — — — Total impaired loans without a valuation allowance $ 1,823 $ 1,978 $ — $ 1,973 $ 29 Impaired loans with a valuation allowance: Commercial real estate $ 188 $ 188 $ 34 $ 251 $ — Commercial business 132 134 20 285 — Total impaired loans with a valuation allowance 320 322 54 536 — Total acquired impaired loans $ 2,143 $ 2,300 $ 54 $ 2,509 $ 29 As of and for the Year Ended December 31, 2016 Carrying Unpaid Associated Average Interest (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ 1,228 $ 1,238 $ — $ 1,236 $ 10 Commercial real estate 651 651 — 668 29 Commercial business 551 584 — 987 76 Total impaired loans without a valuation allowance $ 2,430 $ 2,473 $ — $ 2,891 $ 115 Impaired loans with a valuation allowance: Commercial real estate $ 123 $ 123 $ 1 $ 128 $ 6 Commercial business 369 369 5 417 22 Consumer 341 341 341 341 — Total impaired loans with a valuation allowance 833 833 347 886 28 Total originated impaired loans $ 3,263 $ 3,306 $ 347 $ 3,777 $ 143 Acquired Impaired loans without a valuation allowance: Residential real estate $ 453 $ 462 $ — $ 456 $ 9 Commercial Business 572 593 — 629 36 Total impaired loans without a valuation allowance $ 1,025 $ 1,055 $ — $ 1,085 $ 45 Impaired loans with a valuation allowance: Commercial real estate $ 144 $ 144 $ 7 $ 144 $ — Commercial business 390 390 37 406 19 Consumer 27 27 27 27 — Total impaired loans with a valuation allowance 561 561 71 577 19 Total acquired impaired loans $ 1,586 $ 1,616 $ 71 $ 1,662 $ 64 As of and for the Year Ended December 31, 2015 Carrying Unpaid Associated Average Interest (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ 1,391 $ 1,393 $ — $ 1,402 $ 37 Commercial real estate 4,291 4,291 — 4,308 124 Commercial business 1,351 1,372 — 1,374 49 Total impaired loans without a valuation allowance $ 7,033 $ 7,056 $ — $ 7,084 $ 210 Impaired loans with a valuation allowance: Residential real estate $ 864 $ 864 $ 2 $ 864 $ 28 Commercial business 626 690 71 673 34 Total impaired loans with a valuation allowance 1,490 1,554 73 1,537 62 Total originated impaired loans $ 8,523 $ 8,610 $ 73 $ 8,621 $ 272 Acquired Impaired loans without a valuation allowance: Residential real estate $ 197 $ 200 $ — $ 198 $ 2 Commercial real estate 611 678 — 602 6 Commercial Business 963 963 — 999 54 Total impaired loans without a valuation allowance $ 1,771 $ 1,841 $ — $ 1,799 $ 62 Impaired loans with a valuation allowance: Commercial real estate $ 151 $ 151 $ 12 $ 151 $ 3 Commercial business 470 480 21 506 14 Consumer 7 7 5 7 1 Total impaired loans with a valuation allowance 628 638 38 664 18 Total acquired impaired loans $ 2,399 $ 2,479 $ 38 $ 2,463 $ 80 Troubled debt restructurings (TDRs) Modifications to a loan are considered to be a troubled debt restructuring when one or both of the following conditions is met: 1) the borrower is experiencing financial difficulties and/or 2) the modification constitutes a concession that is not in line with market rates and/or terms. Modified terms are dependent upon the financial position and needs of the individual borrower. Troubled debt restructurings are classified as impaired loans. If a performing loan is restructured into a TDR it remains in performing status. If a nonperforming loan is restructured into a TDR, it continues to be carried in nonaccrual status. Nonaccrual classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of six months. Troubled debt restructured loans are reported as such for at least one year from the date of restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring agreement specifies a market rate of interest equal to that which would be provided to a borrower with similar credit at the time of restructuring and the loan is not deemed to be impaired based on the modified terms. The recorded investment in TDRs was $4.9 million at December 31, 2017 and $1.4 million at December 31, 2016. The following table presents loans whose terms were modified as TDRs during the periods presented: Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification 2017 2016 2015 2017 2016 2015 2017 2016 2015 (Dollars in thousands) Years ended December 31, Commercial real estate — 1 3 $ — $ 62 $ 4,044 $ — $ 62 $ 4,044 Residential real estate 2 — — 2,957 — — 2,957 — — Commercial business 4 2 1 741 237 39 741 237 39 Total 6 3 4 $ 3,698 $ 299 $ 4,083 $ 3,698 $ 299 $ 4,083 All TDRs at December 31, 2017 and December 31, 2016 were performing in compliance with their modified terms, except for four non-accrual loans totaling $553 thousand at December 31, 2017 and one non-accrual loan totaling $66 thousand at December 31, 2016. The following table provides information on how loans were modified as a TDR for the years ended December 31, 2017 and 2016. December 31, 2017 2016 2015 (In thousands) Maturity Concession $ 638 $ 299 $ — Maturity/amortization concession — — 825 Maturity and payment concession 1,925 — 3,258 Maturity and rate concession 1,032 — — Payment concession 103 — — Total $ 3,698 $ 299 $ 4,083 There were 3 loans modified in a troubled debt restructuring, for which there was a payment default during the year ended December 31, 2017. The total recorded investment in these loans was $1.2 million at December 31, 2017. There were no loans modified in a troubled debt restructuring, for which there was a payment default during the years ended December 31, 2016 and 2015, respectively. |