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 September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Beginning balance $ 2,495 $ 10,119 $ 6,156 $ 2,354 $ 645 $ 4,729 $ 1,179 $ 466 $ 28,143 Charge-offs (60 ) (20 ) (14 ) (94 ) (349 ) (291 ) (33 ) — (861 ) Recoveries — 238 189 121 91 61 — — 700 (Benefit) provision (217 ) 1,033 (610 ) (390 ) 203 303 284 159 765 Ending balance $ 2,218 $ 11,370 $ 5,721 $ 1,991 $ 590 $ 4,802 $ 1,430 $ 625 $ 28,747 Allowance for Loan Losses – Nine Months Ended September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Beginning balance $ 2,748 $ 11,517 $ 7,044 $ 2,644 $ 622 $ 5,831 $ 1,417 $ 680 $ 32,503 Charge-offs (60 ) (170 ) (98 ) (331 ) (831 ) (1,188 ) (1,104 ) — (3,782 ) Recoveries — 365 487 146 300 315 — 1 1,614 (Benefit) provision (470 ) (342 ) (1,712 ) (468 ) 499 (156 ) 1,117 (56 ) (1,588 ) Ending balance $ 2,218 $ 11,370 $ 5,721 $ 1,991 $ 590 $ 4,802 $ 1,430 $ 625 $ 28,747 Ending balance: Individ. evaluated for impairment $ 240 $ 73 $ 363 $ 111 $ 77 $ 1,276 — — $ 2,140 Loans pooled for evaluation $ 1,978 $ 11,022 $ 5,347 $ 1,879 $ 513 $ 3,526 $ 1,430 $ 625 $ 26,320 Loans acquired with deteriorated credit quality — $ 275 $ 12 — — — — — $ 287 Loans, net of unearned fees – As of September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Ending balance: Total loans $ 391,072 $ 1,803,802 $ 289,506 $ 45,033 $ 26,781 $ 227,479 $ 75,120 $ 72,820 $ 2,931,613 Individ. evaluated for impairment $ 5,027 $ 19,788 $ 2,219 $ 1,842 $ 267 $ 2,938 $ 144 — $ 32,225 Loans pooled for evaluation $ 384,640 $ 1,775,843 $ 284,335 $ 42,454 $ 26,470 $ 221,846 $ 74,976 $ 72,820 $ 2,883,384 Loans acquired with deteriorated credit quality $ 1,405 $ 8,171 $ 2,952 $ 737 $ 44 $ 2,695 — — $ 16,004 Allowance for Loan Losses – Year Ended December 31, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Beginning balance $ 2,896 $ 11,015 $ 11,253 $ 3,177 $ 688 $ 5,271 $ 899 $ 812 $ 36,011 Charge-offs (321 ) (827 ) (585 ) (219 ) (823 ) (455 ) — — (3,230 ) Recoveries 880 920 2,317 590 449 404 54 78 5,692 (Benefit) provision (694 ) 395 (5,940 ) (903 ) 308 611 463 (210 ) (5,970 ) Ending balance $ 2,761 $ 11,503 $ 7,045 $ 2,645 $ 622 $ 5,831 $ 1,416 $ 680 $ 32,503 Ending balance: Individ. evaluated for impairment $ 258 $ 4 $ 411 $ 215 $ 28 $ 1,130 — — $ 2,046 Loans pooled for evaluation $ 2,317 $ 10,050 $ 6,617 $ 2,366 $ 594 $ 3,765 $ 1,371 $ 680 $ 27,760 Loans acquired with deteriorated credit quality $ 186 $ 1,449 $ 17 $ 64 — $ 936 $ 45 — $ 2,697 Loans, net of unearned fees – As of December 31, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Ending balance: Total loans $ 368,343 $ 1,685,121 $ 289,715 $ 46,182 $ 30,766 $ 217,047 $ 55,429 $ 66,990 $ 2,759,593 Individ. evaluated for impairment $ 4,094 $ 15,081 $ 3,196 $ 1,508 $ 154 $ 4,096 $ 11 — $ 28,140 Loans pooled for evaluation $ 362,780 $ 1,657,238 $ 282,159 $ 42,992 $ 30,547 $ 208,960 $ 54,743 $ 66,990 $ 2,706,409 Loans acquired with deteriorated credit quality $ 1,469 $ 12,802 $ 4,360 $ 1,682 $ 65 $ 3,991 $ 675 — $ 25,044 Allowance for Loan Losses – Three Months Ended September 30, 2016 RE Mortgage Home Equity Auto Other Construction (in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total Beginning balance $ 3,081 $ 11,934 $ 9,203 $ 3,057 — $ 696 $ 5,265 $ 1,321 $ 952 $ 35,509 Charge-offs (50 ) — (122 ) (25 ) — (160 ) (307 ) — — (664 ) Recoveries 391 20 1,580 429 — 107 85 — — 2,612 (Benefit) provision (653 ) (378 ) (2,261 ) (360 ) — 24 199 (16 ) (528 ) (3,973 ) Ending balance $ 2,769 $ 11,576 $ 8,400 $ 3,101 — $ 667 $ 5,242 $ 1,305 $ 424 $ 33,484 Allowance for Loan Losses – Nine Months Ended September 30, 2016 RE Mortgage Home Equity Auto Other Construction (in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total Beginning balance $ 2,896 $ 11,015 $ 11,253 $ 3,177 — $ 688 $ 5,271 $ 899 $ 812 $ 36,011 Charge-offs (212 ) (793 ) (450 ) (118 ) — (600 ) (421 ) — — (2,594 ) Recoveries 618 902 1,921 501 — 338 323 — 1 4,604 (Benefit) provision (533 ) 452 (4,324 ) (459 ) — 241 69 406 (389 ) (4,537 ) Ending balance $ 2,769 $ 11,576 $ 8,400 $ 3,101 — $ 667 $ 5,242 $ 1,305 $ 424 $ 33,484 Ending balance: Individ. evaluated for impairment $ 418 $ 644 $ 511 $ 311 — $ 72 $ 822 — — $ 2,778 Loans pooled for evaluation $ 2,157 $ 9,493 $ 7,864 $ 2,730 — $ 595 $ 3,426 $ 1,257 $ 424 $ 27,946 Loans acquired with deteriorated credit quality $ 181 $ 1,453 $ 25 $ 59 — — $ 994 $ 48 — $ 2,760 Loans, net of unearned fees – As of September 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 $ 368,223 $ 1,625,897 $ 301,884 $ 48,314 — $ 31,611 $ 217,110 $ 57,892 $ 61,295 $ 2,712,226 Individ. evaluated for impairment $ 5,414 $ 14,706 $ 3,820 $ 2,650 — $ 278 $ 2,397 $ 11 — $ 29,276 Loans pooled for evaluation $ 361,336 $ 1,597,876 $ 292,833 $ 43,552 — $ 31,272 $ 210,565 $ 57,338 $ 61,295 $ 2,656,067 Loans acquired with deteriorated credit quality $ 1,473 $ 13,315 $ 5,231 $ 2,112 — $ 61 $ 4,148 $ 543 — $ 26,883 As part of the on-going (iii) non-performing 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 September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Originated loans: Pass $ 317,577 $ 1,553,178 $ 266,066 $ 38,885 $ 23,978 $ 209,215 $ 75,000 $ 60,921 $ 2,544,820 Special mention 1,831 13,484 2,196 815 368 3,390 — 8,531 30,615 Substandard 2,444 22,128 1,208 1,786 89 3,341 108 — 31,104 Loss — — — — — — — — — Total originated $ 321,852 $ 1,588,790 $ 269,470 $ 41,486 $ 24,435 $ 215,946 $ 75,108 $ 69,452 $ 2,606,539 PNCI loans: Pass $ 65,700 $ 191,518 $ 15,832 $ 2,534 $ 2,257 $ 8,832 $ 12 $ 3,368 $ 290,053 Special mention 223 13,155 452 209 39 — — — 14,078 Substandard 1,892 2,168 800 67 6 6 — — 4,939 Loss — — — — — — — — — Total PNCI $ 67,815 $ 206,841 $ 17,084 $ 2,810 $ 2,302 $ 8,838 $ 12 $ 3,368 $ 309,070 PCI loans $ 1,405 $ 8,171 $ 2,952 $ 737 $ 44 $ 2,695 — — $ 16,004 Total loans $ 391,072 $ 1,803,802 $ 289,506 $ 45,033 $ 26,781 $ 227,479 $ 75,120 $ 72,820 $ 2,931,613 Credit Quality Indicators – As of December 31, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Originated loans: Pass $ 278,635 $ 1,399,936 $ 258,024 $ 37,844 $ 27,542 $ 190,902 $ 54,602 $ 57,808 $ 2,305,293 Special mention 2,992 14,341 2,518 891 385 6,133 — 311 27,571 Substandard 2,912 11,551 3,048 2,001 240 3,700 11 — 23,463 Loss — — — — — — — — — Total originated $ 284,539 $ 1,425,828 $ 263,590 $ 40,736 $ 28,167 $ 200,735 $ 54,613 $ 58,119 $ 2,356,327 PNCI loans: Pass $ 79,000 $ 233,326 $ 20,442 $ 3,506 $ 2,437 $ 12,320 $ 141 $ 8,871 $ 360,043 Special mention 1,849 5,925 509 173 92 1 — — 8,549 Substandard 1,486 7,240 814 85 5 — — — 9,630 Loss — — — — — — — — — Total PNCI $ 82,335 $ 246,491 $ 21,765 $ 3,764 $ 2,534 $ 12,321 $ 141 $ 8,871 $ 378,222 PCI loans $ 1,469 $ 12,802 $ 4,360 $ 1,682 $ 65 $ 3,991 $ 675 — $ 25,044 Total loans $ 368,343 $ 1,685,121 $ 289,715 $ 46,182 $ 30,766 $ 217,047 $ 55,429 $ 66,990 $ 2,759,593 Consumer loans, whether unsecured or secured by real estate, automobiles, or other personal property, are susceptible to three primary risks; non-payment non-payment 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 Commercial real estate loans generally fall into two categories, owner-occupied and non-owner non-owner Construction loans, whether owner occupied or non-owner 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 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 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 September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Originated loan balance: Past due: 30-59 $ 721 $ 2,241 $ 695 $ 662 $ 150 $ 362 — — $ 4,831 60-89 403 793 299 — 83 1 — — 1,579 > 90 Days 343 744 82 468 1 407 — — 2,045 Total past due 1,467 3,778 1,076 1,130 234 770 — — 8,455 Current 320,385 1,585,012 268,394 40,356 24,201 215,176 75,108 69,452 2,598,084 Total orig. loans $ 321,852 $ 1,588,790 $ 269,470 $ 41,486 $ 24,435 $ 215,946 $ 75,108 $ 69,452 $ 2,606,539 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 1,037 $ 6,954 $ 534 $ 1,199 $ 13 $ 1,951 — — $ 11,688 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 September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total PNCI loan balance: Past due: 30-59 $ 39 — $ 100 $ 27 $ 12 — — — $ 178 60-89 159 1,599 129 18 5 1 — — 1,911 > 90 Days 1,021 — — — — 6 — — $ 1,027 Total past due 1,219 1,599 229 45 17 7 — — 3,116 Current 66,596 205,242 16,855 2,765 2,285 8,831 12 3,368 305,954 Total PNCI loans $ 67,815 $ 206,841 $ 17,084 $ 2,810 $ 2,302 $ 8,838 $ 12 $ 3,368 $ 309,070 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 1,089 $ 1,599 $ 276 $ 50 $ 6 $ 6 — — $ 3,026 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, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Originated loan balance: Past due: 30-59 $ 552 $ 317 $ 754 $ 646 $ 16 $ 1,148 $ 921 — $ 4,354 60-89 269 1,387 — 395 30 84 — $ 421 2,586 > 90 Days — 216 687 184 15 634 11 — 1,747 Total past due 821 1,920 1,441 1,225 61 1,866 932 421 8,687 Current 283,718 1,423,908 262,149 39,511 28,106 198,869 53,681 57,698 2,347,640 Total orig. loans $ 284,539 $ 1,425,828 $ 263,590 $ 40,736 $ 28,167 $ 200,735 $ 54,613 $ 58,119 $ 2,356,327 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 255 $ 7,651 $ 1,211 $ 803 $ 33 $ 2,930 $ 11 — $ 12,894 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, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total PNCI loan balance: Past due: 30-59 $ 1,510 $ 73 $ 274 $ 39 — — — — $ 1,896 60-89 — — — — — — — — — > 90 Days 21 81 589 13 — — — — 704 Total past due 1,531 154 863 52 — — — — 2,600 Current 80,804 246,337 20,902 3,712 $ 2,534 $ 12,321 $ 141 $ 8,871 375,622 Total PNCI loans $ 82,335 $ 246,491 $ 21,765 $ 3,764 $ 2,534 $ 12,321 $ 141 $ 8,871 $ 378,222 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 194 $ 1,826 $ 742 $ 67 $ 5 — — — $ 2,834 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 original 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 Nine Months Ended, September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total With no related allowance recorded: Recorded investment $ 1,777 $ 17,039 $ 1,108 $ 1,470 $ 3 $ 884 $ 144 — $ 22,425 Unpaid principal $ 1,819 $ 17,493 $ 1,209 $ 1,892 $ 47 $ 1,139 $ 144 — $ 23,743 Average recorded Investment $ 1,734 $ 15,092 $ 1,294 $ 1,034 $ 9 $ 823 $ 78 — $ 20,064 Interest income Recognized $ 51 $ 474 $ 25 $ 25 ($ 25 ) $ 16 $ 7 — $ 573 With an allowance recorded: Recorded investment $ 1,644 $ 1,150 $ 110 $ 199 $ 11 $ 2,048 — — $ 5,162 Unpaid principal $ 1,670 $ 1,150 $ 115 $ 199 $ 12 $ 2,123 — — $ 5,269 Related allowance $ 167 $ 73 $ 33 $ 13 $ 7 $ 1,270 — — $ 1,563 Average recorded Investment $ 1,508 $ 898 $ 270 $ 342 $ 14 $ 2,691 — — $ 5,723 Interest income Recognized $ 39 $ 40 — $ 7 — $ 53 — — $ 139 Impaired PNCI Loans – As of, or for the Nine Months Ended, September 30, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total With no related allowance recorded: Recorded investment $ 1,356 $ 1,599 $ 394 $ 50 — — — — $ 3,399 Unpaid principal $ 1,384 $ 1,869 $ 413 $ 62 — — — — $ 3,728 Average recorded Investment $ 910 $ 1,712 $ 564 $ 59 $ 2 — — — $ 3,247 Interest income Recognized $ 17 — $ 8 — — — — — $ 25 With an allowance recorded: Recorded investment $ 250 — $ 607 $ 123 $ 253 $ 6 — — $ 1,239 Unpaid principal $ 250 — $ 607 $ 123 $ 253 $ 6 — — $ 1,239 Related allowance $ 73 — $ 328 $ 99 $ 71 $ 6 — — $ 577 Average recorded Investment $ 255 $ 66 $ 579 $ 62 $ 185 $ 3 — — $ 1,150 Interest income Recognized $ 7 — $ 20 $ 5 $ 8 — — — $ 40 Impaired Originated Loans – As of December 31, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total With no related allowance recorded: Recorded investment $ 1,821 $ 12,897 $ 1,480 $ 715 $ 15 $ 762 $ 11 — $ 17,701 Unpaid principal $ 1,829 $ 13,145 $ 1,561 $ 1,135 $ 29 $ 926 $ 16 — $ 18,641 Average recorded Investment $ 2,853 $ 20,003 $ 2,221 $ 831 $ 17 $ 669 $ 7 — $ 26,601 Interest income Recognized $ 92 $ 570 $ 40 $ 6 $ 1 $ 48 — — $ 757 With an allowance recorded: Recorded investment $ 1,551 $ 357 $ 430 $ 594 $ 19 $ 3,334 — — $ 6,285 Unpaid principal $ 1,552 $ 357 $ 440 $ 596 $ 19 $ 3,385 — — $ 6,349 Related allowance $ 180 $ 4 $ 110 $ 107 $ 13 $ 1,130 — — $ 1,544 Average recorded Investment $ 1,779 $ 888 $ 1,076 $ 634 $ 9 $ 2,714 — — $ 7,100 Interest income Recognized $ 65 $ 22 $ 9 $ 31 $ 2 $ 77 — — $ 206 Impaired PNCI Loans – As of December 31, 2016 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total With no related allowance recorded: Recorded investment $ 463 $ 1,826 $ 735 $ 67 $ 3 — — — $ 3,094 Unpaid principal $ 486 $ 2,031 $ 746 $ 74 $ 4 — — — $ 3,341 Average recorded Investment $ 669 $ 1,479 $ 594 $ 69 $ 18 $ 1 — $ 245 $ 3,075 Interest income Recognized $ 7 — $ 9 $ 1 — — — — $ 17 With an allowance recorded: Recorded investment $ 259 — $ 551 $ 132 $ 118 — — — $ 1,060 Unpaid principal $ 259 — $ 551 $ 132 $ 118 — — — $ 1,060 Related allowance $ 79 — $ 300 $ 108 $ 15 — — — $ 502 Average recorded Investment $ 130 $ 1,374 $ 579 $ 85 $ 176 — — — $ 2,344 Interest income Recognized $ 10 — $ 27 $ 7 $ 5 — — — $ 49 Impaired Originated Loans – As of, or for the Nine Months Ended, September 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 $ 2,392 $ 7,011 $ 1,888 $ 1,360 — $ 7 $ 574 $ 11 — $ 13,243 Unpaid principal $ 3,083 $ 7,286 $ 2,318 $ 1,979 — $ 11 $ 749 $ 16 — $ 15,442 Average recorded Investment $ 3,139 $ 17,059 $ 2,425 $ 1154 $ 1 $ 12 $ 575 $ 7 — $ 24,372 Interest income Recognized $ 63 $ 232 $ 26 $ 9 — — $ 26 — — $ 356 With an allowance recorded: Recorded investment $ 2,613 $ 5,820 $ 923 $ 1,059 — $ 8 $ 1,823 — — $ 12,246 Unpaid principal $ 2,701 $ 5,843 $ 931 $ 1,115 — $ 8 $ 1,869 — — $ 12,467 Related allowance $ 381 $ 644 $ 263 $ 201 — $ 3 $ 822 — — $ 2,314 Average recorded Investment $ 2,309 $ 3,620 $ 1,324 $ 866 — $ 4 $ 1,959 — — $ 10,082 Interest income Recognized $ 68 $ 216 $ 16 $ 36 — — $ 55 — — $ 391 Impaired PNCI Loans – As of, or for the Nine Months Ended, September 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 $ 474 $ 1,874 $ 502 $ 97 — $ 6 — — — $ 2,953 Unpaid principal $ 492 $ 2,048 $ 573 $ 103 — $ 7 — — — $ 3,223 Average recorded Investment $ 674 $ 1,503 $ 478 $ 84 — $ 19 $ 1 — $ 245 $ 3,004 Interest income Recognized $ 7 — $ 2 $ 1 — — — — — $ 10 With an allowance recorded: Recorded investment $ 263 — $ 507 $ 134 — $ 257 — — — $ 1,161 Unpaid principal $ 263 — $ 507 $ 134 — $ 257 — — — $ 1,161 Related allowance $ 81 — $ 248 $ 109 — $ 69 — — — $ 507 Average recorded Investment $ 131 $ 1,374 $ 557 $ 86 — $ 246 — — — $ 2,394 Interest income Recognized $ 7 — $ 16 $ 5 — $ 8 — — — $ 36 At September 30, 2017, $13,352,000 of originated loans were TDR and classified as impaired. The Company had obligations to lend additional $209,000 on these TDR as of September 30, 2017. At September 30, 2017, $1,611,000 of PNCI loans were TDR and classified as impaired. The Company had obligations to lend $3,000 of additional funds on these TDR as of September 30, 2017. At December 31, 2016, $12,371,000 of Originated loans were TDRs and classified as impaired. The Company had obligations to lend $25,000 of additional funds on these TDRs as of December 31, 2016. At December 31, 2016, $1,324,000 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, 2016. At September 30, 2016, $14,882,000 of originated loans were TDR and classified as impaired. The Company had obligations to lend $65,000 of additional funds on these TDR as of September 30, 2016. At September 30, 2016, $1,476,000 of PNCI loans were TDR and classified as impaired. The Company had no obligations to lend additional funds on these TDR as of September 30, 2016. . The following tables show certain information regarding Troubled Debt Restructurings (TDRs) that occurred during the periods indicated: TDR Information for the Three Months Ended September 30, 2017 RE Mortgage Home Equity Other Construction ($ in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Number 1 4 — 1 — 8 1 — 15 Pre-mod $ 939 $ 2,886 — $ 252 — $ 1,109 $ 144 — $ 5,330 Post-mod $ 939 $ 2,886 — $ 252 — $ 1,109 $ 144 — $ 5,330 Financial impact due to TDR taken as additional provision $ 169 $ 14 — — — $ 28 — — $ 211 Number that defaulted during the period 1 1 — — — — — — 2 Recorded investment of TDRs that defaulted during the period $ 99 $ 219 — — — — — — $ 318 Financial impact due to the default of previous TDR taken as charge-offs or additional provisions — — — — — — — — — TDR Information for the Nine Months Ended September 30, 2017 RE Mortgage Home Equity Other Construction ($ in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Number 1 7 3 1 1 11 1 — 25 Pre-mod $ 939 $ 3,509 $ 187 $ 252 $ 14 $ 1,854 $ 144 — $ 6,898 Post-mod $ 939 $ 3,482 $ 187 $ 252 $ 14 $ 1,748 $ 144 — $ 6,765 Financial impact due to TDR taken as additional provision $ 169 $ (111 ) $ 27 — $ 11 $ 37 — — $ 133 Number that defaulted during the period 2 1 — — — — — — 3 Recorded investment of TDRs that defaulted during the period $ 223 $ 219 — — — — — — $ 442 Financial impact due to the default of previous TDR taken as charge-offs or additional provisions — — — — — — — — — TDR Information for the Three Months Ended September 30, 2016 RE Mortgage Home Equity Auto Other Construction ($ in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total Number 2 2 2 — — 1 3 — — 10 Pre-mod $ 318 $ 170 $ 113 — — $ 8 $ 65 — — $ 674 Post-mod $ 324 $ 170 $ 114 — — $ 8 $ 66 — — $ 682 Financial impact due to TDR taken as additional provision $ 6 — — — — — $ 15 — — $ 21 Number that defaulted during the period 1 — 1 — — — — — — 2 Recorded investment of TDRs that defaulted during the period $ 14 — $ 229 — — — — — — $ 243 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 Nine Months Ended September 30, 2016 RE Mortgage Home Equity Auto Other Construction ($ in thousands) Resid. Comm. Lines Loans Indirect Consum. C&I Resid. Comm. Total Number 3 3 9 3 — 2 4 — — 24 Pre-mod $ 650 $ 248 $ 707 $ 280 — $ 27 $ 77 — — $ 1,989 Post-mod $ 656 $ 249 $ 709 $ 317 — $ 27 $ 77 — — $ 2,035 Financial impact due to TDR taken as additional provision $ 50 — $ 205 $ 46 — $ 2 $ 23 — — $ 326 Number that defaulted during the period 2 — 1 — — — — — — 3 Recorded investment of TDRs that defaulted during the period $ 101 — $ 229 — — — — — — $ 330 Financial impact due to the default of previous TDR taken as charge-offs or additional provisions — — — — — — — — — — 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. |