Loans | Loans Peoples' loan portfolio consists of various types of loans originated primarily as a result of lending opportunities within Peoples' primary market areas of northeastern, central, southwestern and southeastern Ohio, west central West Virginia, and eastern Kentucky. Acquired loans consist of loans purchased in 2012 or thereafter. Loans that were acquired and subsequently re-underwritten, are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit). The major classifications of loan balances (in each case, net of deferred fees and costs), excluding loans held for sale, were as follows at December 31: (Dollars in thousands) 2018 2017 Originated loans: Commercial real estate, construction $ 124,013 $ 107,118 Commercial real estate, other 632,200 595,447 Commercial real estate 756,213 702,565 Commercial and industrial 530,207 438,051 Residential real estate 296,860 304,523 Home equity lines of credit 93,326 88,902 Consumer, indirect 407,167 340,390 Consumer, direct 71,674 67,010 Consumer 478,841 407,400 Deposit account overdrafts 583 849 Total originated loans $ 2,156,030 $ 1,942,290 Acquired loans: Commercial real estate, construction $ 12,404 $ 8,319 Commercial real estate, other 184,711 165,120 Commercial real estate 197,115 173,439 Commercial and industrial 35,537 34,493 Residential real estate 296,937 184,864 Home equity lines of credit 40,653 20,575 Consumer, indirect 136 329 Consumer, direct 2,370 1,147 Consumer 2,506 1,476 Total acquired loans $ 572,748 $ 414,847 Total loans $ 2,728,778 $ 2,357,137 Peoples has acquired various loans through business combinations for which there was, at acquisition, evidence of deterioration of credit quality since origination, and for which it was probable that all contractually required payments would not be collected. The carrying amounts of these purchased credit impaired loans included in the loan balances above are summarized as follows at December 31: (Dollars in thousands) 2018 2017 Commercial real estate $ 11,955 $ 8,117 Commercial and industrial 1,287 767 Residential real estate 20,062 19,532 Consumer 58 33 Total outstanding balance $ 33,362 $ 28,449 Net carrying amount $ 22,475 $ 19,564 Changes in the accretable yield for purchased credit impaired loans during the year ended December 31 were as follows: (Dollars in thousands) 2018 2017 Balance, beginning of period $ 6,704 $ 7,132 Reclassification from nonaccretable to accretable 2,019 1,285 Additions: ASB 2,047 — Accretion (1,815 ) (1,713 ) Balance, December 31 $ 8,955 $ 6,704 Peoples completes annual re-estimations of cash flows on acquired purchased credit impaired loans in August of each year. At the end of each quarter, Peoples evaluates factors to determine if a material change has occurred in acquired loans accounted for and if a re-estimation is needed. Factors evaluated to determine if a re-estimation is needed include changes in: risk ratings, maturity dates, charge-offs, payoffs, nonaccrual status and loans that have become past due. Prepayments affect the estimated life of the loans and could change the amount of interest income, and possibly the amount of principal, expected to be collected. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. Peoples evaluates changes quarterly and compares the new estimated cash flows to those at the previous cash flow re-estimation date and the related materiality of the changes, and when compared to the total loan portfolio, the differences in estimated cash flows at the most recent cash flow re-estimation date compared to the previous cash flow re-estimation date would not have a material impact on amounts recorded since the last re-estimation. Peoples completed a re-estimation of cash flows on purchased credit impaired loans in August 2018, resulting in the reclassification from nonaccretable to accretable yield shown in the table above. Cash flows expected to be collected on purchased credit impaired loans are estimated by incorporating several key assumptions similar to those used in the initial estimate of fair value. These key assumptions include probability of default, and the amount of actual prepayments after the acquisition date. In reforecasting future estimated cash flows, credit loss expectations are adjusted as necessary. Pledged Loans Peoples has pledged certain loans secured by one-to-four family and multifamily residential mortgages under a blanket collateral agreement to secure borrowings from the FHLB. The amount of such pledged loans totaled $ 505.7 million and $ 487.2 million at December 31, 2018 and 2017 , respectively. Peoples also had pledged commercial loans to secure borrowings with the FRB. The outstanding balances of these loans totaled $ 180.9 million and $ 74.0 million at December 31, 2018 and 2017 , respectively. Related Party Loans In the normal course of its business, Peoples Bank has granted loans to certain directors and officers of Peoples Bancorp Inc., including their affiliates, families and entities in which they are principal owners. At December 31, 2018 , no related party loan was past due 90 or more days, renegotiated or on nonaccrual status. Activity in related party loans is presented in the table below. Other changes primarily consist of changes in related party status, and the addition and exit of directors during the year, as applicable. (Dollars in thousands) Balance, December 31, 2017 $ 15,102 New loans and disbursements 5,508 Repayments (3,720 ) Other changes (101 ) Balance, December 31, 2018 $ 16,789 Nonaccrual and Past Due Loans A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. A loan may be placed on nonaccrual status regardless of whether or not such loan is considered past due. The recorded investments in loans on nonaccrual status and loans delinquent for 90 days or more and accruing were as follows at December 31: Accruing Loans 90+ Days Past Due Nonaccrual Loans (Dollars in thousands) 2018 2017 2018 2017 Originated loans: Commercial real estate, construction $ 710 $ 754 $ — $ — Commercial real estate, other 6,565 6,877 786 — Commercial real estate 7,275 7,631 786 — Commercial and industrial 1,673 739 — — Residential real estate 4,105 3,546 398 548 Home equity lines of credit 596 550 7 50 Consumer, indirect 480 256 — — Consumer, direct 56 39 — 16 Consumer 536 295 — 16 Total originated loans $ 14,185 $ 12,761 $ 1,191 $ 614 Acquired loans: Commercial real estate, other $ 319 $ 192 $ 15 $ 215 Commercial and industrial 36 259 18 45 Residential real estate 1,921 2,168 1,032 730 Home equity lines of credit 637 312 — 22 Total acquired loans $ 2,913 $ 2,931 $ 1,065 $ 1,012 Total loans $ 17,098 $ 15,692 $ 2,256 $ 1,626 The following tables present the aging of the recorded investment in past due loans at December 31: Loans Past Due Current Total (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total 2018 Originated loans: Commercial real estate, construction $ — $ — $ 710 $ 710 $ 123,303 $ 124,013 Commercial real estate, other 12 736 7,151 7,899 624,301 632,200 Commercial real estate 12 736 7,861 8,609 747,604 756,213 Commercial and industrial 1,678 3,520 1,297 6,495 523,712 530,207 Residential real estate 4,457 1,319 2,595 8,371 288,489 296,860 Home equity lines of credit 531 30 431 992 92,334 93,326 Consumer, indirect 3,266 488 165 3,919 403,248 407,167 Consumer, direct 308 50 42 400 71,274 71,674 Consumer 3,574 538 207 4,319 474,522 478,841 Deposit account overdrafts — — — — 583 583 Total originated loans $ 10,252 $ 6,143 $ 12,391 $ 28,786 $ 2,127,244 $ 2,156,030 Loans Past Due Current Total (Dollars in thousands) 30 - 59 days 60 - 89 days 90 + Days Total 2018 Acquired loans: Commercial real estate, construction $ 511 $ — $ — $ 511 $ 11,893 $ 12,404 Commercial real estate, other 523 457 233 1,213 183,498 184,711 Commercial real estate 1,034 457 233 1,724 195,391 197,115 Commercial and industrial 111 13 18 142 35,395 35,537 Residential real estate 6,124 1,823 1,885 9,832 287,105 296,937 Home equity lines of credit 238 233 534 1,005 39,648 40,653 Consumer, indirect — — — — 136 136 Consumer, direct 23 6 — 29 2,341 2,370 Consumer 23 6 — 29 2,477 2,506 Total acquired loans $ 7,530 $ 2,532 $ 2,670 $ 12,732 $ 560,016 $ 572,748 Total loans $ 17,782 $ 8,675 $ 15,061 $ 41,518 $ 2,687,260 $ 2,728,778 2017 Originated loans: Commercial real estate, construction $ — $ — $ — $ — $ 107,118 $ 107,118 Commercial real estate, other 990 — 6,492 7,482 587,965 595,447 Commercial real estate 990 — 6,492 7,482 695,083 702,565 Commercial and industrial 1,423 92 706 2,221 435,830 438,051 Residential real estate 4,562 1,234 2,408 8,204 296,319 304,523 Home equity lines of credit 502 80 395 977 87,925 88,902 Consumer, indirect 2,153 648 105 2,906 337,484 340,390 Consumer, direct 417 46 48 511 66,499 67,010 Consumer 2,570 694 153 3,417 403,983 407,400 Deposit account overdrafts — — — — 849 849 Total originated loans $ 10,047 $ 2,100 $ 10,154 $ 22,301 $ 1,919,989 $ 1,942,290 Acquired loans: Commercial real estate, construction $ — $ — $ — $ — $ 8,319 $ 8,319 Commercial real estate, other 775 948 312 2,035 163,085 165,120 Commercial real estate 775 948 312 2,035 171,404 173,439 Commercial and industrial — 1 171 172 34,321 34,493 Residential real estate 4,656 1,391 1,910 7,957 176,907 184,864 Home equity lines of credit 126 — 301 427 20,148 20,575 Consumer, indirect 3 — — 3 326 329 Consumer, direct 10 11 — 21 1,126 1,147 Consumer 13 11 — 24 1,452 1,476 Total acquired loans $ 5,570 $ 2,351 $ 2,694 $ 10,615 $ 404,232 $ 414,847 Total loans $ 15,617 $ 4,451 $ 12,848 $ 32,916 $ 2,324,221 $ 2,357,137 Delinquency trends remained stable as 98.5% of Peoples' portfolio was considered "current" at December 31, 2018 , compared to 98.6% at December 31, 2017 . Credit Quality Indicators As discussed in Note 1 Summary of Significant Accounting Policies, Peoples categorizes the majority of its loans into risk categories based upon an established risk grading matrix using a scale of 1 to 8. A description of the general characteristics of the risk grades used by Peoples is as follows: "Pass" (grades 1 through 4): Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk category would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the loans if required, for any weakness that may exist. "Special Mention" (grade 5): Loans in this risk category are the equivalent of the regulatory "Other Assets Especially Mentioned" classification. Loans in this risk category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and/or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the loans or in Peoples' credit position. "Substandard" (grade 6): Loans in this risk category are inadequately protected by the borrower's current financial condition and payment capability, or by the collateral pledged, if any. Loans so classified have one or more well-defined weaknesses that jeopardize the orderly repayment of the loans. They are characterized by the distinct possibility that Peoples will sustain some loss if the deficiencies are not corrected. "Doubtful" (grade 7): Loans in this risk category have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, classification of these loans as an estimate loss is deferred until their more exact status may be determined. "Loss" (grade 8): Loans in this risk category are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean each such loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, Peoples typically does not maintain a recorded investment in loans within this risk category. Consumer loans and other smaller-balance loans are evaluated and categorized as "substandard," "doubtful" or "loss" based upon the regulatory definition of these classes and consistent with regulatory requirements. All other loans not evaluated individually, nor meeting the regulatory conditions to be categorized as described above, would be considered as being "not rated." The following tables summarize the risk category of Peoples' loan portfolio based upon the most recent analysis performed at December 31: Pass Rated Special Mention Substandard Doubtful Not Rated Total (Dollars in thousands) (Grades 1 - 4) (Grade 5) (Grade 6) (Grade 7) 2018 Originated loans: Commercial real estate, construction $ 121,457 $ — $ 1,472 $ — $ 1,084 $ 124,013 Commercial real estate, other 612,099 10,898 9,203 — — 632,200 Commercial real estate 733,556 10,898 10,675 — 1,084 756,213 Commercial and industrial 476,290 45,990 7,692 — 235 530,207 Residential real estate 14,229 500 11,971 409 269,751 296,860 Home equity lines of credit 453 — — — 92,873 93,326 Consumer, indirect 8 — — — 407,159 407,167 Consumer, direct 30 — — — 71,644 71,674 Consumer 38 — — — 478,803 478,841 Deposit account overdrafts — — — — 583 583 Total originated loans $ 1,224,566 $ 57,388 $ 30,338 $ 409 $ 843,329 $ 2,156,030 Pass Rated Special Mention Substandard Doubtful Not Rated Total (Dollars in thousands) (Grades 1 - 4) (Grade 5) (Grade 6) (Grade 7) 2018 Acquired loans: Commercial real estate, construction $ 8,976 $ 1,795 $ 1,633 $ — $ — $ 12,404 Commercial real estate, other 169,260 7,241 8,114 96 — 184,711 Commercial real estate 178,236 9,036 9,747 96 — 197,115 Commercial and industrial 32,471 2,008 1,058 — — 35,537 Residential real estate 17,370 1,938 2,033 137 275,459 296,937 Home equity lines of credit 33 — — — 40,620 40,653 Consumer, indirect 4 — — — 132 136 Consumer, direct 31 — — — 2,339 2,370 Consumer 35 — — — 2,471 2,506 Total acquired loans $ 228,145 $ 12,982 $ 12,838 $ 233 $ 318,550 $ 572,748 Total loans $ 1,452,711 $ 70,370 $ 43,176 $ 642 $ 1,161,879 $ 2,728,778 2017 Originated loans: Commercial real estate, construction $ 100,409 $ 5,502 $ 754 $ — $ 453 $ 107,118 Commercial real estate, other 561,320 17,189 16,938 — — 595,447 Commercial real estate 661,729 22,691 17,692 — 453 702,565 Commercial and industrial 420,477 13,062 4,512 — — 438,051 Residential real estate 17,896 1,000 11,371 216 274,040 304,523 Home equity lines of credit 454 — — — 88,448 88,902 Consumer, indirect 55 8 — — 340,327 340,390 Consumer, direct 33 — — — 66,977 67,010 Consumer 88 8 — — 407,304 407,400 Deposit account overdrafts — — — — 849 849 Total originated loans $ 1,100,644 $ 36,761 $ 33,575 $ 216 $ 771,094 $ 1,942,290 Acquired loans: Commercial real estate, construction $ 8,267 $ — $ 52 $ — $ — $ 8,319 Commercial real estate, other 149,486 6,527 9,107 — — 165,120 Commercial real estate 157,753 6,527 9,159 — — 173,439 Commercial and industrial 32,011 157 2,325 — — 34,493 Residential real estate 12,543 593 1,105 — 170,623 184,864 Home equity lines of credit 124 — — — 20,451 20,575 Consumer, indirect 12 — — — 317 329 Consumer, direct 35 — — — 1,112 1,147 Consumer 47 — — — 1,429 1,476 Total acquired loans $ 202,478 $ 7,277 $ 12,589 $ — $ 192,503 $ 414,847 Total loans $ 1,303,122 $ 44,038 $ 46,164 $ 216 $ 963,597 $ 2,357,137 During 2018, Peoples' classified loans, which are loans categorized as substandard or doubtful, declined compared to the balances at December 31, 2017 mostly due to paydowns on classified loans, which were partially offset by acquired ASB loans. Impaired Loans The following table summarizes loans classified as impaired at December 31: Unpaid Principal Balance Recorded Investment Total Recorded Investment Average Recorded Investment Interest Income Recognized With Without Related Allowance (Dollars in thousands) Allowance Allowance 2018 Commercial real estate, construction $ 2,376 $ — $ 2,376 $ 2,376 $ — $ 1,732 $ 74 Commercial real estate, other 15,464 274 14,946 15,220 119 14,043 455 Commercial real estate 17,840 274 17,322 17,596 119 15,775 529 Commercial and industrial 3,305 790 2,436 3,226 157 2,423 72 Residential real estate 25,990 644 24,034 24,678 154 22,769 1,134 Home equity lines of credit 2,291 424 1,869 2,293 73 1,832 109 Consumer, indirect 496 — 503 503 — 278 15 Consumer, direct 79 22 57 79 6 63 20 Consumer 575 22 560 582 6 341 35 Total $ 50,001 $ 2,154 $ 46,221 $ 48,375 $ 509 $ 43,140 $ 1,879 2017 Commercial real estate, construction $ 821 $ — $ 754 754 $ — $ 788 $ — Commercial real estate, other 14,909 14 13,606 13,620 1 14,392 503 Commercial real estate 15,730 14 14,360 14,374 1 15,180 503 Commercial and industrial 1,690 951 572 1,523 199 1,668 65 Residential real estate 24,743 477 22,626 23,103 58 23,195 1,246 Home equity lines of credit 1,707 81 1,624 1,705 18 1,505 85 Consumer, indirect 273 70 206 276 26 184 20 Consumer, direct 87 56 28 84 37 79 7 Consumer 360 126 234 360 63 263 27 Total $ 44,230 $ 1,649 $ 39,416 $ 41,065 $ 339 $ 41,811 $ 1,926 Peoples' loans classified as impaired shown in the table above, included loans that were classified as TDRs. The following table summarizes the loans that were modified as TDRs during the years ended December 31, 2018 and 2017 . Recorded Investment (1) (Dollars in thousands) Number of Contracts Pre-Modification Post-Modification Remaining Recorded Investment 2018 Originated loans: Commercial and industrial 1 $ 714 $ 714 $ 714 Residential real estate 9 904 904 899 Home equity lines of credit 8 666 666 660 Consumer, indirect 27 485 485 412 Consumer, direct 5 32 32 29 Consumer 32 517 517 441 Total 50 $ 2,801 $ 2,801 $ 2,714 Acquired loans: Commercial real estate, construction 1 $ 50 $ 50 $ 45 Residential real estate 15 1,258 1,258 1,226 Home equity lines of credit 6 196 196 193 Total 22 $ 1,504 $ 1,504 $ 1,464 2017 Originated loans: Commercial real estate, other 1 $ 14 $ 14 $ 14 Commercial and industrial 4 210 210 149 Residential real estate 7 483 483 473 Home equity lines of credit 6 296 296 289 Consumer, indirect 15 218 218 201 Consumer, direct 2 10 10 8 Consumer 17 228 228 209 Total 35 $ 1,231 $ 1,231 $ 1,134 Acquired loans: Commercial real estate, construction 3 $ 288 $ 288 $ 280 Residential real estate 9 442 442 412 Home equity lines of credit 5 328 328 320 Consumer, direct 1 2 2 — Total 18 $ 1,060 $ 1,060 $ 1,012 (1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. The following table presents those loans modified into a TDR during the year that subsequently defaulted (i.e., 90 days or more past due following a modification) during the years ended December 31: 2018 2017 (Dollars in thousands) Number of Contracts Recorded Investment (1) Impact on the Allowance for Loan Losses Number of Contracts Recorded Investment (1) Impact on the Allowance for Loan Losses Originated loans: Residential real estate 1 $ 56 $ — — $ — $ — Home equity lines of credit 1 32 — — — — Total 2 $ 88 $ — — $ — $ — Acquired loans: Residential real estate — $ — $ — 2 $ 64 $ — Home equity lines of credit 1 10 — — — — Total 1 $ 10 $ — 2 $ 64 $ — (1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. Peoples had no commitments to lend additional funds to the related borrowers whose loan terms have been modified in a TDR. Allowance for Loan Losses Changes in the allowance for loan losses in the periods ended December 31 were as follows: (Dollars in thousands) Commercial Real Estate Commercial and Industrial Residential Real Estate Home Equity Lines of Credit Consumer, indirect Consumer, direct Deposit Account Overdrafts Total Balance, January 1, 2018 $ 7,797 $ 5,813 $ 904 $ 693 $ 2,944 $ 464 $ 70 $ 18,685 Charge-offs (849 ) (38 ) (355 ) (107 ) (2,515 ) (358 ) (965 ) (5,187 ) Recoveries 60 18 232 14 474 140 205 1,143 Net charge-offs (789 ) (20 ) (123 ) (93 ) (2,041 ) (218 ) (760 ) (4,044 ) Provision for loan losses 995 385 433 18 2,311 105 771 5,018 Balance, December 31, 2018 $ 8,003 $ 6,178 $ 1,214 $ 618 $ 3,214 $ 351 $ 81 $ 19,659 Period-end amount allocated to: Loans individually evaluated for impairment $ 119 $ 157 $ 154 $ 73 $ — $ 6 $ — $ 509 Loans collectively evaluated for impairment 7,884 6,021 1,060 545 3,214 345 81 19,150 Balance, December 31, 2018 $ 8,003 $ 6,178 $ 1,214 $ 618 $ 3,214 $ 351 $ 81 $ 19,659 Balance, January 1, 2017 $ 7,172 $ 6,353 $ 982 $ 688 $ 2,312 $ 518 $ 171 $ 18,196 Charge-offs (408 ) (175 ) (637 ) (131 ) (2,110 ) (372 ) (1,038 ) (4,871 ) Recoveries 146 1 152 13 764 179 215 1,470 Net charge-offs (262 ) (174 ) (485 ) (118 ) (1,346 ) (193 ) (823 ) (3,401 ) Provision for (recovery of) loan losses 887 (366 ) 407 123 1,978 139 722 3,890 Balance, December 31, 2017 $ 7,797 $ 5,813 $ 904 $ 693 $ 2,944 $ 464 $ 70 $ 18,685 Period-end amount allocated to: Loans individually evaluated for impairment $ 1 $ 199 $ 58 $ 18 $ 26 $ 37 $ — $ 339 Loans collectively evaluated for impairment 7,796 5,614 846 675 2,918 427 70 18,346 Balance, December 31, 2017 $ 7,797 $ 5,813 $ 904 $ 693 $ 2,944 $ 464 $ 70 $ 18,685 The increase in total allowance for loan losses in 2018 was primarily due to total loan growth of 16% , or $371.6 million . The increase was primarily the result of commercial loan growth of $170.5 million , or 13% , which includes commercial real estate and commercial and industrial loan balances. Additionally, indirect consumer lending had growth of $66.6 million , or 20% , compared to December 31, 2017, and was partially offset by reductions in residential real estate loans. Historical loss rates are calculated using charge-offs and recoveries within each portfolio over the past five years. Allowance for Acquired Loan Losses Acquired loans are recorded at their fair value as of the acquisition date with no valuation allowance, and monitored for changes in credit quality and subsequent increases or decreases in expected cash flows. Decreases in expected cash flows of acquired purchased credit impaired loans are recognized as an impairment, with the amount of the expected loss included in management's evaluation of the appropriateness of the allowance for loan losses. The methods utilized to estimate the required allowance for loan losses for nonimpaired acquired loans are similar to those utilized for originated loans; however, Peoples records a provision for loan losses only when the computed allowance for loan losses exceeds the remaining fair value adjustment. The following table presents activity in the allowance for loan losses for acquired loans as of December 31: (Dollars in thousands) 2018 2017 Nonimpaired loans: Balance, January 1 $ — $ — Provision for loan losses 383 — Balance, December 31 $ 383 $ — Purchased credit impaired loans: Balance, January 1 $ 108 $ 233 Charge-offs (2 ) (7 ) Provision for (recovery of) loan losses 47 (118 ) Balance, December 31 $ 153 $ 108 During 2018, as a result of the ASB acquisition, Peoples recorded provision for loan losses for nonimpaired loans. The remaining fair value adjustment recorded for the nonimpaired loans acquired from ASB was not sufficient based on the calculation of the allowance for loan losses as of December 31, 2018. During 2017, Peoples recognized a recovery of loan losses that was related to an acquired purchased credit impaired loan that was paid off. |