| Allowance for Loan Losses | Note 5 – Allowance for Loan Losses
The following tables summarize the activity in the allowance for
loan losses, and ending balance of loans, net of unearned fees for
the periods indicated.
Allowance for Loan Losses – Three
Months Ended June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Beginning balance $ 2,765 $ 11,895 $ 9,907 $ 3,111
— $ 687 $ 6,139 $ 1,066 $ 818 $ 36,388
Charge-offs (125 )
— (114 ) (93 )
— (233 ) (76 )
—
— (641 )
Recoveries 225 65 60 23
— 101 61
—
— 535
(Benefit) provision (173 ) 400 (651 ) (20 )
— 141 (859 ) 255 134 (773 )
Ending balance $ 2,692 $ 12,360 $ 9,202 $ 3,021
— $ 696 $ 5,265 $ 1,321 $ 952 $ 35,509
Allowance for Loan Losses – Six
Months Ended June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Beginning balance $ 2,507 $ 11,443 $ 11,253 $ 3,138
— $ 688 $ 5,271 $ 899 $ 812 $ 36,011
Charge-offs (162 ) (793 ) (328 ) (93 )
— (440 ) (114 )
—
— (1,930 )
Recoveries 227 882 341 72
— 231 238
— 1 1,992
(Benefit) provision 120 828 (2,064 ) (96 )
— 217 (130 ) 422 139 (564 )
Ending balance $ 2,692 $ 12,360 $ 9,202 $ 3,021
— $ 696 $ 5,265 $ 1,321 $ 952 $ 35,509
Ending balance:
Individ. evaluated for impairment $ 474 $ 253 $ 506 $ 203
— $ 87 $ 647
—
— $ 2,170
Loans pooled for evaluation $ 2,008 $ 10,648 $ 8,680 $ 2,818
— $ 609 $ 3,545 $ 1,271 $ 952 $ 30,531
Loans acquired with deteriorated credit quality $ 210 $ 1,459 $ 16
—
—
— $ 1,073 $ 50
— $ 2,808
Loans, net of unearned fees – As
of June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Ending balance:
Total loans $ 318,206 $ 1,594,818 $ 306,678 $ 42,002
— $ 32,434 $ 209,840 $ 62,331 $ 87,321 $ 2,653,630
Individ. evaluated for impairment $ 6,629 $ 12,152 $ 4,984 $ 1,944
— $ 277 $ 1,930 $ 11
— $ 27,927
Loans pooled for evaluation $ 309,952 $ 1,566,724 $ 295,444 $ 38,427
— $ 32,094 $ 203,626 $ 61,771 $ 87,321 $ 2,595,359
Loans acquired with deteriorated credit quality $ 1,625 $ 15,942 $ 6,250 $ 1,631
— $ 63 $ 4,284 $ 549
— $ 30,344
Allowance for Loan Losses - Year Ended
December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Beginning balance $ 3,086 $ 9,227 $ 15,676 $ 1,797 $ 9 $ 719 $ 4,226 $ 1,434 $ 411 $ 36,585
Charge-offs (224 )
— (694 ) (242 ) (4 ) (972 ) (680 )
—
— (2,816 )
Recoveries 204 243 666 252 42 500 677 1,728 140 4,452
(Benefit) provision (559 ) 1,973 (4,395 ) 1,331 (47 ) 441 1,048 (2,263 ) 261 (2,210 )
Ending balance $ 2,507 $ 11,443 $ 11,253 $ 3,138
— $ 688 $ 5,271 $ 899 $ 812 $ 36,011
Ending balance:
Individ. evaluated for impairment $ 335 $ 395 $ 605 $ 294
— $ 74 $ 1,187
—
— $ 2,890
Loans pooled for evaluation $ 2,112 $ 9,596 $ 10,423 $ 2,844
— $ 614 $ 2,983 $ 844 $ 812 $ 30,228
Loans acquired with deteriorated credit quality $ 60 $ 1,452 $ 225
—
—
— $ 1,101 $ 55
— $ 2,893
Loans, net of unearned fees – As
of December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Ending balance:
Total loans $ 314,265 $ 1,497,567 $ 322,492 $ 40,362
— $ 32,429 $ 194,913 $ 46,135 $ 74,774 $ 2,522,937
Individ. evaluated for impairment $ 6,767 $ 32,407 $ 5,747 $ 1,731
— $ 288 $ 2,671 $ 4 $ 490 $ 50,105
Loans pooled for evaluation $ 305,353 $ 1,442,100 $ 309,007 $ 37,004
— $ 32,077 $ 187,393 $ 45,410 $ 74,284 $ 2,432,628
Loans acquired with deteriorated credit quality $ 2,145 $ 23,060 $ 7,738 $ 1,627
— $ 64 $ 4,849 $ 721
— $ 40,204
Allowance for Loan Losses – Three
Months Ended June 30, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Beginning balance $ 2,765 $ 10,451 $ 15,233 $ 1,980 $ 6 $ 644 $ 3,976 $ 750 $ 250 $ 36,055
Charge-offs (128 )
— (84 ) (117 ) (4 ) (176 ) (5 )
—
— (514 )
Recoveries
— 53 230 6 16 107 121
— 14 547
(Benefit) provision 198 (363 ) (1,386 ) 259 (18 ) 130 310 92 145 (633 )
Ending balance $ 2,835 $ 10,141 $ 13,993 $ 2,128
— $ 705 $ 4,402 $ 842 $ 409 $ 35,455
Allowance for Loan Losses – Six
Months Ended June 30, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Beginning balance $ 3,086 $ 9,227 $ 15,676 $ 1,797 $ 9 $ 719 $ 4,226 $ 1,434 $ 411 $ 36,585
Charge-offs (209 )
— (425 ) (128 ) (4 ) (444 ) (539 )
—
— (1,749 )
Recoveries 1 149 349 9 36 259 208 11 33 1,055
(Benefit) provision (43 ) 765 (1,607 ) 450 (41 ) 171 507 (603 ) (35 ) (436 )
Ending balance $ 2,835 $ 10,141 $ 13,993 $ 2,128
— $ 705 $ 4,402 $ 842 $ 409 $ 35,455
Ending balance:
Individ. evaluated for impairment $ 857 $ 418 $ 1,779 $ 387
— $ 128 $ 676
—
— $ 4,245
Loans pooled for evaluation $ 1,884 $ 8,390 $ 11,798 $ 1,741
— $ 577 $ 2,536 $ 653 $ 409 $ 27,988
Loans acquired with deteriorated credit quality $ 94 $ 1,333 $ 416
—
—
— $ 1,190 $ 189
— $ 3,222
Loans, net of unearned fees – As
of June 30, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Ending balance:
Total loans $ 291,488 $ 1,395,079 $ 344,115 $ 34,572
— $ 33,101 $ 195,791 $ 41,958 $ 57,658 $ 2,393,762
Individ. evaluated for impairment $ 7,467 $ 47,118 $ 6,135 $ 1,438
— $ 403 $ 2,048 $ 328 $ 88 $ 65,025
Loans pooled for evaluation $ 280,147 $ 1,320,440 $ 329,788 $ 32,372
— $ 32,631 $ 188,642 $ 40,907 $ 57,570 $ 2,282,497
Loans acquired with deteriorated credit quality $ 3,874 $ 27,521 $ 8,192 $ 762
— $ 67 $ 5,101 $ 723
— $ 46,240
As part of the on-going monitoring of the credit quality of the
Company’s loan portfolio, management tracks certain credit
quality indicators including, but not limited to, trends relating
to (i) the level of criticized and classified loans, (ii) net
charge-offs, (iii) non-performing loans, and (iv) delinquency
within the portfolio.
The Company utilizes a risk grading system to assign a risk grade
to each of its loans. Loans are graded on a scale ranging from
Pass to Loss. A description of the general characteristics of
the risk grades is as follows:
• Pass
• Special Mention
• Substandard
• Doubtful
• Loss
The following tables present ending loan balances by loan category
and risk grade for the periods indicated:
Credit Quality Indicators – As of
June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Originated loans:
Pass $ 214,128 $ 1,271,457 $ 265,496 $ 32,662
— $ 29,100 $ 182,447 $ 48,608 $ 78,200 $ 2,122,098
Special mention 2,117 12,509 2,335 1,060
— 357 4,049
—
— 22,427
Substandard 5,215 13,892 6,018 2,795
— 166 2,998
—
— 31,084
Total originated $ 221,460 $ 1,297,858 $ 273,849 $ 36,517
— $ 29,623 $ 189,494 $ 48,608 $ 78,200 $ 2,175,609
PNCI loans:
Pass $ 93,348 $ 261,862 $ 25,075 $ 3,691
— $ 2,573 $ 15,995 $ 13,174 $ 9,121 $ 424,839
Special mention 540 8,107 410 74
— 57 8
—
— 9,196
Substandard 1,233 11,049 1,094 89
— 118 59
—
— 13,642
Total PNCI $ 95,121 $ 281,018 $ 26,579 $ 3,854
— $ 2,748 $ 16,062 $ 13,174 $ 9,121 $ 447,677
PCI loans $ 1,625 $ 15,942 $ 6,250 $ 1,631
— $ 63 $ 4,284 $ 549
— $ 30,344
Total loans $ 318,206 $ 1,594,818 $ 306,678 $ 42,002
— $ 32,434 $ 209,840 $ 62,331 $ 87,321 $ 2,653,630
Credit Quality Indicators – As of
December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Originated loans:
Pass $ 199,837 $ 1,118,868 $ 275,251 $ 31,427
— $ 28,339 $ 166,559 $ 31,440 $ 66,285 $ 1,918,006
Special mention 2,018 10,321 2,494 1,027
— 415 1,037 334
— 17,646
Substandard 5,730 34,454 7,674 2,263
— 244 2,724 4
— 53,093
Total originated $ 207,585 $ 1,163,643 $ 285,419 $ 34,717
— $ 28,998 $ 170,320 $ 31,778 $ 66,285 $ 1,988,745
PNCI loans:
Pass $ 102,895 $ 293,935 $ 27,378 $ 3,789
— $ 3,164 $ 19,666 $ 13,636 $ 8,489 $ 472,952
Special mention 600 10,795 445 80
— 74
—
—
— 11,994
Substandard 1,040 6,134 1,512 149
— 129 78
—
— 9,042
Total PNCI $ 104,535 $ 310,864 $ 29,335 $ 4,018
— $ 3,367 $ 19,744 $ 13,636 $ 8,489 $ 493,988
PCI loans $ 2,145 $ 23,060 $ 7,738 $ 1,627
— $ 64 $ 4,849 $ 721
— $ 40,204
Total loans $ 314,265 $ 1,497,567 $ 322,492 $ 40,362
— $ 32,429 $ 194,913 $ 46,135 $ 74,774 $ 2,522,937
Consumer loans, whether unsecured or secured by real estate,
automobiles, or other personal property, are susceptible to three
primary risks; non-payment due to income loss, over-extension of
credit and, when the borrower is unable to pay, shortfall in
collateral value. Typically non-payment is due to loss of job
and will follow general economic trends in the marketplace driven
primarily by rises in the unemployment rate. Loss of
collateral value can be due to market demand shifts, damage to
collateral itself or a combination of the two.
Problem consumer loans are generally identified by payment history
of the borrower (delinquency). The Bank manages its consumer
loan portfolios by monitoring delinquency and contacting borrowers
to encourage repayment, suggest modifications if appropriate, and,
when continued scheduled payments become unrealistic, initiate
repossession or foreclosure through appropriate
channels. Collateral values may be determined by appraisals
obtained through Bank approved, licensed appraisers, qualified
independent third parties, public value information (blue book
values for autos), sales invoices, or other appropriate
means. Appropriate valuations are obtained at initiation of
the credit and periodically (every 3-12 months depending on
collateral type) once repayment is questionable and the loan has
been classified.
Commercial real estate loans generally fall into two categories,
owner-occupied and non-owner occupied. Loans secured by owner
occupied real estate are primarily susceptible to changes in the
business conditions of the related business. This may be
driven by, among other things, industry changes, geographic
business changes, changes in the individual fortunes of the
business owner, and general economic conditions and changes in
business cycles. These same risks apply to commercial loans
whether secured by equipment or other personal property or
unsecured. Losses on loans secured by owner occupied real
estate, equipment, or other personal property generally are
dictated by the value of underlying collateral at the time of
default and liquidation of the collateral. When default is
driven by issues related specifically to the business owner,
collateral values tend to provide better repayment support and may
result in little or no loss. Alternatively, when default is
driven by more general economic conditions, underlying collateral
generally has devalued more and results in larger losses due to
default. Loans secured by non-owner occupied real estate are
primarily susceptible to risks associated with swings in occupancy
or vacancy and related shifts in lease rates, rental rates or room
rates. Most often these shifts are a result of changes in
general economic or market conditions or overbuilding and resultant
over-supply. Losses are dependent on value of underlying
collateral at the time of default. Values are generally driven
by these same factors and influenced by interest rates and required
rates of return as well as changes in occupancy costs.
Construction loans, whether owner occupied or non-owner occupied
commercial real estate loans or residential development loans, are
not only susceptible to the related risks described above but the
added risks of construction itself including cost over-runs,
mismanagement of the project, or lack of demand or market changes
experienced at time of completion. Again, losses are primarily
related to underlying collateral value and changes therein as
described above.
Problem C&I loans are generally identified by periodic review
of financial information which may include financial statements,
tax returns, rent rolls and payment history of the borrower
(delinquency). Based on this information the Bank may decide to
take any of several courses of action including demand for
repayment, additional collateral or guarantors, and, when repayment
becomes unlikely through borrower’s income and cash flow,
repossession or foreclosure of the underlying collateral.
Collateral values may be determined by appraisals obtained through
Bank approved, licensed appraisers, qualified independent third
parties, public value information (blue book values for autos),
sales invoices, or other appropriate means. Appropriate
valuations are obtained at initiation of the credit and
periodically (every 3-12 months depending on collateral type) once
repayment is questionable and the loan has been classified.
Once a loan becomes delinquent and repayment becomes questionable,
a Bank collection officer will address collateral shortfalls with
the borrower and attempt to obtain additional collateral. If
this is not forthcoming and payment in full is unlikely, the Bank
will estimate its probable loss, using a recent valuation as
appropriate to the underlying collateral less estimated costs of
sale, and charge the loan down to the estimated net realizable
amount. Depending on the length of time until ultimate
collection, the Bank may revalue the underlying collateral and take
additional charge-offs as warranted. Revaluations may occur as
often as every 3-12 months depending on the underlying collateral
and volatility of values. Final charge-offs or recoveries are
taken when collateral is liquidated and actual loss is
known. Unpaid balances on loans after or during collection and
liquidation may also be pursued through lawsuit and attachment of
wages or judgment liens on borrower’s other assets.
The following table shows the ending balance of current, past due,
and nonaccrual originated loans by loan category as of the date
indicated:
Analysis of Past Due and Nonaccrual
Originated Loans – As of June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Originated loan balance:
Past due:
30-59 Days $ 46 $ 1,948 $ 1,326 $ 272
— $ 47 $ 611
— $ 397 $ 4,647
60-89 Days 70 298 250 110
— 9 415
—
— 1,152
> 90 Days 344 364 219 482
— 9 295
—
— 1,713
Total past due $ 460 $ 2,610 $ 1,795 $ 864
— $ 65 $ 1,321
— $ 397 $ 7,512
Current 221,000 1,295,248 272,054 35,653
— 29,558 188,173 $ 48,608 77,803 2,168,097
Total orig. loans $ 221,460 $ 1,297,858 $ 273,849 $ 36,517
— $ 29,623 $ 189,494 $ 48,608 $ 78,200 $ 2,175,609
> 90 Days and still accruing
—
—
—
—
—
—
—
—
—
—
Nonaccrual loans $ 2,375 $ 2,961 $ 2,826 $ 1,396
— $ 9 $ 444 $ 11
— $ 10,022
The following table shows the ending balance of current, past due,
and nonaccrual PNCI loans by loan category as of the date
indicated:
Analysis of Past Due and Nonaccrual
PNCI Loans – As of June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
PNCI loan balance:
Past due:
30-59 Days
—
— $ 48 $ 20
— $ 21
—
—
— $ 89
60-89 Days $ 29 $ 744 11 33
—
—
—
—
— 817
> 90 Days 287 80
—
—
— 8
—
—
— 375
Total past due $ 316 $ 824 $ 59 $ 53
— $ 29
—
—
— $ 1,281
Current 94,805 280,194 26,520 3,801
— 2,719 $ 16,062 $ 13,174 $ 9,121 446,396
Total PNCI loans $ 95,121 $ 281,018 $ 26,579 $ 3,854
— $ 2,748 $ 16,062 $ 13,174 $ 9,121 $ 447,677
> 90 Days and still accruing
—
—
—
—
—
—
—
—
—
—
Nonaccrual loans $ 532 $ 2,667 $ 512 $ 70
— $ 8
—
—
— $ 3,789
The following table shows the ending balance of current, past due,
and nonaccrual originated loans by loan category as of the date
indicated:
Analysis of Past Due and Nonaccrual
Originated Loans – As of December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Originated loan balance:
Past due:
30-59 Days $ 791 $ 200 $ 1,033 $ 402
— $ 12 $ 2,197
—
— $ 4,635
60-89 Days
— 491 324 341
— 40
—
—
— 1,196
> 90 Days 271 3,425 520 82
— 19 24
—
— 4,341
Total past due 1,062 4,116 1,877 825
— 71 2,221
—
— 10,172
Current 206,523 1,159,527 283,542 33,892
— 28,927 168,099 $ 31,778 $ 66,285 1,978,573
Total orig. loans $ 207,585 $ 1,163,643 $ 285,419 $ 34,717
— $ 28,998 $ 170,320 $ 31,778 $ 66,285 $ 1,988,745
> 90 Days and still accruing
—
—
—
—
—
—
—
—
—
—
Nonaccrual loans $ 3,045 $ 14,196 $ 3,379 $ 1,195
— $ 21 $ 976 $ 12
— $ 22,824
The following table shows the ending balance of current, past due,
and nonaccrual PNCI loans by loan category as of the date
indicated:
Analysis of Past Due and Nonaccrual
PNCI Loans – As of December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
PNCI loan balance:
Past due:
30-59 Days $ 3,106 $ 4,037 $ 92 $ 23
—
— $ 1
—
— $ 7,259
60-89 Days
—
—
—
—
— $ 13
—
—
— 13
> 90 Days 58 748 275 71
— 10
—
— $ 490 1,652
Total past due 3,164 4,785 367 94
— 23 1
— 490 8,924
Current 101,371 306,079 28,968 3,924
— 3,344 19,743 $ 13,636 7,999 485,064
Total PNCI loans $ 104,535 $ 310,864 $ 29,335 $ 4,018
— $ 3,367 $ 19,744 $ 13,636 $ 8,489 $ 493,988
> 90 Days and still accruing
—
—
—
—
—
—
—
—
—
—
Nonaccrual loans $ 348 $ 3,742 $ 676 $ 109
— $ 33
—
— $ 490 $ 5,398
Impaired originated loans are those where management has concluded
that it is probable that the borrower will be unable to pay all
amounts due under the contractual terms. The following tables
show the recorded investment (financial statement balance), unpaid
principal balance, average recorded investment, and interest income
recognized for impaired Originated and PNCI loans, segregated by
those with no related allowance recorded and those with an
allowance recorded for the periods indicated.
Impaired Originated Loans – As
of, or for the Six Months Ended, June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
With no related allowance recorded:
Recorded investment $ 3,223 $ 7,927 $ 2,861 $ 1,217
— $ 9 $ 321 $ 11
— $ 15,569
Unpaid principal $ 4,706 $ 8,428 $ 5,267 $ 1,871 $ 7 $ 13 $ 356 $ 16
— $ 20,664
Average recorded Investment $ 3,554 $ 17,518 $ 2,912 $ 1,082 $ 1 $ 13 $ 448 $ 8
— $ 25,536
Interest income Recognized $ 43 $ 156 $ 12 $ 8
—
— $ 8
—
— $ 227
With an allowance recorded:
Recorded investment $ 2,338 $ 1,422 $ 1,115 $ 657
—
— $ 1,609
—
— $ 7,141
Unpaid principal $ 2,418 $ 1,467 $ 1,166 $ 687
—
— $ 1,655
—
— $ 7,393
Related allowance $ 389 $ 165 $ 268 $ 203
—
— $ 647
—
— $ 1,672
Average recorded Investment $ 2,172 $ 1,420 $ 1,420 $ 666
— $ 1 $ 1,852
—
— $ 7,531
Interest income Recognized $ 36 $ 39 $ 9 $ 12
—
— $ 36
—
— $ 132
Impaired PNCI Loans – As of, or
for the Six Months Ended, June 30, 2016
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
With no related allowance recorded:
Recorded investment $ 532 $ 2,667 $ 512 $ 70
— $ 8
—
—
— $ 3,789
Unpaid principal $ 701 $ 2,894 $ 578 $ 76
— $ 9
—
—
— $ 4,258
Average recorded Investment $ 704 $ 1,899 $ 483 $ 70
— $ 21 $ 1
— $ 245 $ 3,423
Interest income Recognized
—
—
—
—
—
—
—
—
—
—
With an allowance recorded:
Recorded investment $ 536 $ 136 $ 496
—
— $ 260
—
—
— $ 1,428
Unpaid principal $ 536 $ 136 $ 496
—
— $ 260
—
—
— $ 1,428
Related allowance $ 85 $ 88 $ 238
—
— $ 87
—
—
— $ 498
Average recorded Investment $ 268 $ 1,442 $ 551 $ 19
— $ 247
—
—
— $ 2,527
Interest income Recognized $ 9 $ 3 $ 11
—
— $ 6
—
—
— $ 29
Impaired Originated Loans – As of
December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
With no related allowance recorded:
Recorded investment $ 3,886 $ 27,109 $ 2,963 $ 947
— $ 20 $ 576 $ 4
— $ 35,505
Unpaid principal $ 5,998 $ 29,678 $ 6,079 $ 1,349
— $ 35 $ 688 $ 65
— $ 43,892
Average recorded Investment $ 3,586 $ 32,793 $ 2,982 $ 848
— $ 29 $ 494 $ 1,202 $ 50 $ 41,984
Interest income Recognized $ 81 $ 893 $ 23 $ 5
—
— $ 29
—
— $ 1,031
With an allowance recorded:
Recorded investment $ 2,006 $ 1,418 $ 1,724 $ 674
— $ 1 $ 2,094
—
— $ 7,917
Unpaid principal $ 2,073 $ 1,453 $ 1,904 $ 701
— $ 1 $ 2,117
—
— $ 8,249
Related allowance $ 335 $ 146 $ 525 $ 256
— $ 1 $ 1,187
—
— $ 2,450
Average recorded Investment $ 2,365 $ 2,180 $ 2,455 $ 589
— $ 23 $ 1,716 $ 141
— $ 9,469
Interest income Recognized $ 49 $ 74 $ 31 $ 26
—
— $ 122
—
— $ 302
Impaired PNCI Loans – As of
December 31, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
With no related allowance recorded:
Recorded investment $ 875 $ 1,132 $ 454 $ 71
— $ 33 $ 1
— $ 490 $ 3,056
Unpaid principal $ 908 $ 1,248 $ 505 $ 73
— $ 52 $ 1
— $ 490 $ 3,277
Average recorded Investment $ 609 $ 749 $ 400 $ 48
— $ 35 $ 4
— $ 245 $ 2,090
Interest income Recognized $ 31 $ 32 $ 3 $ 2
— $ 1
—
— $ 18 $ 87
With an allowance recorded:
Recorded investment
— $ 2,748 $ 606 $ 39
— $ 234
—
—
— $ 3,627
Unpaid principal
— $ 2,858 $ 612 $ 40
— $ 234
—
—
— $ 3,744
Related allowance
— $ 248 $ 80 $ 39
— $ 73
—
—
— $ 440
Average recorded Investment $ 417 $ 1,447 $ 521 $ 19
— $ 227
—
—
— $ 2,631
Interest income Recognized
— $ 149 $ 14
—
— $ 11
—
—
— $ 174
Impaired Originated Loans – As
of, or for the Six Months Ended, June 30, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
With no related allowance recorded:
Recorded investment $ 3,770 $ 40,294 $ 2,475 $ 779
— $ 23 $ 338 $ 328 $ 88 $ 48,095
Unpaid principal $ 5,901 $ 44,441 $ 5,340 $ 1,256
— $ 46 $ 366 $ 376 $ 183 $ 57,909
Average recorded Investment $ 3,528 $ 39,385 2,738 $ 764
— $ 31 $ 375 $ 1,364 $ 94 $ 48,279
Interest income Recognized $ 19 $ 795 $ 2
—
—
— $ 11 $ 9
— $ 836
With an allowance recorded:
Recorded investment $ 2,780 $ 2,365 $ 2,513 $ 598
— $ 37 $ 1,706
—
— $ 9,999
Unpaid principal $ 2,958 $ 2,448 $ 2,973 $ 704
— $ 47 $ 1,808
—
— $ 10,938
Related allowance $ 784 $ 216 $ 1,481 $ 346
— $ 15 $ 676
—
— $ 3,518
Average recorded Investment $ 2,752 $ 2,654 $ 2,849 $ 551
— $ 41 $ 1,522 $ 141
— $ 10,510
Interest income Recognized $ 40 $ 56 $ 25 $ 3
—
— $ 42
—
— $ 166
Impaired PNCI Loans – As of, or
for the Six Months Ended, June 30, 2015
RE Mortgage Home Equity Auto Other Construction
(in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
With no related allowance recorded:
Recorded investment $ 290 $ 3,633 $ 637 $ 20
— $ 42 $ 4
—
— $ 4,626
Unpaid principal $ 316 $ 3,713 $ 696 $ 22
— $ 62 $ 4
—
— $ 4,813
Average recorded Investment $ 317 $ 1,999 $ 492 $ 22
— $ 40 $ 5
—
— $ 2,875
Interest income Recognized $ 3 $ 74 $ 1
—
—
—
—
—
— $ 78
With an allowance recorded:
Recorded investment $ 627 $ 826 $ 511 $ 41
— $ 301
—
—
— $ 2,306
Unpaid principal $ 643 $ 836 $ 512 $ 42
— $ 301
—
—
— $ 2,334
Related allowance $ 72 $ 203 $ 298 $ 41
— $ 113
—
—
— $ 727
Average recorded Investment $ 731 $ 486 $ 474 $ 20
— $ 261
—
—
— $ 1,972
Interest income Recognized $ 4 $ 12 $ 9
—
— $ 6
—
—
— $ 31
At June 30, 2016, $15,616,000 of originated loans were TDR and
classified as impaired. The Company had obligations to lend $25,000
of additional funds on these TDR as of June 30, 2016. At June
30, 2016, $1,479,000 of PNCI loans were TDR and classified as
impaired. The Company had no obligations to lend additional funds
on these TDR as of June 30, 2016.
At December 31, 2015, $29,269,000 of Originated loans were TDRs and
classified as impaired. The Company had obligations to lend $35,000
of additional funds on these TDRs as of December 31, 2015. At
December 31, 2015, $1,396,000 of PNCI loans were TDRs and
classified as impaired. The Company had no obligations to lend
additional funds on these TDRs as of December 31, 2015.
At June 30, 2015, $43,047,000 of originated loans were TDR and
classified as impaired. The Company had obligations to lend $62,000
of additional funds on these TDR as of June 30, 2015. At June 30,
2015, $1,091,000 of PNCI loans were TDR and classified as impaired.
The Company had no obligations to lend additional funds on these
TDR as of June 30, 2015.
Modifications classified as TDRs can include one or a combination
of the following: rate modifications, term extensions, interest
only modifications, either temporary or long-term, payment
modifications, and collateral substitutions/additions. For all new
TDRs, an impairment analysis is conducted. If the loan is
determined to be collateral dependent, any additional amount of
impairment will be calculated based on the difference between
estimated collectible value and the current carrying balance of the
loan. This difference could result in an increased provision and is
typically charged off. If the asset is determined not to be
collateral dependent, the impairment is measured on the net present
value difference between the expected cash flows of the
restructured loan and the cash flows which would have been received
under the original terms. The effect of this could result in a
requirement for additional provision to the reserve. The effect of
these required provisions for the period are indicated above.
Typically if a TDR defaults during the period, the loan is then
considered collateral dependent and, if it was not already
considered collateral dependent, an appropriate provision will be
reserved or charge will be taken. The additional provisions
required resulting from default of previously modified TDR’s
are noted above.
The following table shows certain information regarding Troubled
Debt Restructurings (TDRs) that occurred during the period
indicated:
TDR Information for the Three Months
Ended June 30, 2016
RE Mortgage Home Equity Auto Other Construction
($ in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Number 1
— 3
—
—
—
—
—
— 4
Pre-mod outstanding principal balance $ 332
— $ 163
—
—
—
—
—
— $ 495
Post-mod outstanding principal balance $ 332
— $ 164
—
—
—
—
—
— $ 496
Financial impact due to TDR taken as additional provision $ 44
— $ 54
—
—
—
—
—
— $ 98
Number that defaulted during the period 1
—
—
—
—
—
—
—
— 1
Recorded investment of TDRs that defaulted during the period $ 86
—
—
—
—
—
—
—
— $ 86
Financial impact due to the default of previous TDR taken as
charge-offs or additional provisions
—
—
—
—
—
—
—
—
—
—
The following tables show certain information regarding TDRs that
occurred during the periods indicated:
TDR Information for the Six Months
Ended June 30, 2015
RE Mortgage Home Equity Auto Other Construction
($ in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Number 1 2 4 1
—
— 1
—
— 9
Pre-mod outstanding principal balance $ 332 $ 79 $ 295 $ 105
—
— $ 12
—
— $ 823
Post-mod outstanding principal balance $ 332 $ 116 $ 297 $ 105
—
— $ 12
—
— $ 862
Financial impact due to TDR taken as additional provision $ 44
— $ 73
—
—
— $ 8
—
— $ 125
Number that defaulted during the period 1
—
—
—
—
—
—
—
— 1
Recorded investment of TDRs that defaulted during the period $ 86
—
—
—
—
—
—
—
— $ 86
Financial impact due to the default of previous TDR taken as
charge-offs or additional provisions
—
—
—
—
—
—
—
—
—
—
TDR Information for the Three Months
Ended June 30, 2015
RE Mortgage Home Equity Auto Other Construction
($ in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Number
—
—
— 1
—
— 2
—
— 3
Pre-mod outstanding principal balance
—
—
— $ 69
—
— $ 182
—
— $ 251
Post-mod outstanding principal balance
—
—
— $ 73
—
— $ 182
—
— $ 255
Financial impact due to TDR taken as additional provision
—
—
—
—
—
— $ 86
—
— $ 86
Number that defaulted during the period 1 1
—
—
—
—
—
—
— 2
Recorded investment of TDRs that defaulted during the period $ 98 $ 37
—
—
—
—
—
—
— $ 135
Financial impact due to the default of previous TDR taken as
charge-offs or additional provisions
—
—
—
—
—
—
—
—
—
—
TDR Information for the Six Months
Ended June 30, 2015
RE Mortgage Home Equity Auto Other Construction
($ in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total
Number 1 1
— 1
— 2 3
—
— 8
Pre-mod outstanding principal balance $ 108 $ 124
— $ 69
— $ 89 $ 468
—
— $ 858
Post-mod outstanding principal balance $ 110 $ 124
— $ 74
— $ 89 $ 470
—
— $ 867
Financial impact due to TDR taken as additional provision $ 8 $ (5 )
—
—
— $ 5 $ 249
—
— $ 257
Number that defaulted during the period 1 1 1
—
—
—
—
—
— 3
Recorded investment of TDRs that defaulted during the period $ 98 $ 37 $ 46
—
—
—
—
—
— $ 181
Financial impact due to the default of previous TDR taken as
charge-offs or additional provisions
—
—
—
—
—
—
—
—
—
— |
