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 March 31, 2018 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Beginning balance $ 2,317 $ 11,441 $ 5,800 $ 1,841 $ 586 $ 6,512 $ 1,184 $ 642 $ 30,323 Charge-offs (1 ) — (80 ) — (194 ) (205 ) — — (480 ) Recoveries — 15 209 14 78 50 — — 366 (Benefit) provision (146 ) 39 (517 ) (119 ) 100 35 167 205 (236 ) Ending balance $ 2,170 $ 11,495 $ 5,412 $ 1,736 $ 570 $ 6,392 $ 1,351 $ 847 $ 29,973 Ending balance: Individ. evaluated for impairment $ 190 $ 154 $ 448 $ 130 $ 56 $ 2,113 — — $ 3,091 Loans pooled for evaluation $ 1,910 $ 11,281 $ 4,956 $ 1,606 $ 514 $ 4,249 $ 1,351 $ 847 $ 26,714 Loans acquired with deteriorated credit quality $ 70 $ 60 $ 8 — — $ 30 — — $ 168 Loans, net of unearned fees – As of March 31, 2018 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Ending balance: Total loans $ 386,111 $ 1,973,268 $ 283,251 $ 41,932 $ 23,606 $ 216,015 $ 71,598 $ 73,952 $ 3,069,733 Individ. evaluated for impairment $ 5,535 $ 11,110 $ 2,450 $ 1,673 $ 278 $ 4,621 $ 136 — $ 25,803 Loans pooled for evaluation $ 378,832 $ 1,954,120 $ 279,140 $ 39,774 $ 23,285 $ 208,889 $ 71,462 $ 73,952 $ 3,029,454 Loans acquired with deteriorated credit quality $ 1,744 $ 8,038 $ 1,661 $ 485 $ 43 $ 2,505 — — $ 14,476 Allowance for Loan Losses—Year Ended December 31, 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 ) (186 ) (98 ) (332 ) (1,186 ) (1,444 ) (1,104 ) — (4,410 ) Recoveries — 397 698 242 375 428 — 1 2,141 (Benefit) provision (371 ) (287 ) (1,844 ) (713 ) 775 1,697 871 (39 ) 89 Ending balance $ 2,317 $ 11,441 $ 5,800 $ 1,841 $ 586 $ 6,512 $ 1,184 $ 642 $ 30,323 Ending balance: Individ. evaluated for impairment $ 230 $ 30 $ 427 $ 107 $ 57 $ 1,848 — — $ 2,699 Loans pooled for evaluation $ 1,932 $ 11,351 $ 5,356 $ 1,734 $ 529 $ 4,624 $ 1,184 $ 642 $ 27,352 Loans acquired with deteriorated credit quality $ 155 $ 60 $ 17 — — $ 40 — — $ 272 Loans, net of unearned fees – As of December 31, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Ending balance: Total loans $ 385,426 $ 1,914,896 $ 288,688 $ 43,031 $ 25,155 $ 220,412 $ 67,930 $ 69,627 $ 3,015,165 Individ. evaluated for impairment $ 5,298 $ 13,911 $ 2,688 $ 1,470 $ 257 $ 4,470 $ 140 — $ 28,234 Loans pooled for evaluation $ 378,743 $ 1,892,422 $ 283,502 $ 41,076 $ 24,853 $ 213,358 $ 67,790 $ 69,627 $ 2,971,371 Loans acquired with deteriorated credit quality $ 1,385 $ 8,563 $ 2,498 $ 485 $ 45 $ 2,584 — — $ 15,560 Allowance for Loan Losses – Three Months Ended March 31, 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 — — (71 ) (31 ) (174 ) (133 ) — — (409 ) Recoveries — 110 46 12 141 170 — 1 480 (Benefit) provision (86 ) (85 ) (489 ) (174 ) 6 (542 ) (78 ) (109 ) (1,557 ) Ending balance $ 2,662 $ 11,542 $ 6,530 $ 2,451 $ 595 $ 5,326 $ 1,339 $ 572 $ 31,017 Ending balance: Individ. evaluated for impairment $ 249 $ 124 $ 400 $ 57 $ 31 $ 811 $ 14 — $ 1,686 Loans pooled for evaluation $ 2,188 $ 9,971 $ 6,122 $ 2,328 $ 564 $ 3,873 $ 1,282 $ 572 $ 26,900 Loans acquired with deteriorated credit quality $ 225 $ 1,447 $ 8 $ 66 — $ 642 $ 43 — $ 2,431 Loans, net of unearned fees – As of March 31, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Ending balance: Total loans $ 309,701 $ 1,761,114 $ 283,596 $ 40,241 $ 29,313 $ 212,685 $ 59,699 $ 64,843 $ 2,761,192 Individ. evaluated for impairment $ 3,849 $ 16,979 $ 2,204 $ 1,241 $ 280 $ 3,072 $ 25 — $ 27,650 Loans pooled for evaluation $ 304,493 $ 1,731,785 $ 277,388 $ 37,867 $ 28,967 $ 205,832 $ 58,830 $ 64,843 $ 2,710,005 Loans acquired with deteriorated credit quality $ 1,359 $ 12,350 $ 4,004 $ 1,133 $ 66 $ 3,781 $ 844 — $ 23,537 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 March 31, 2018 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Originated loans: Pass $ 317,799 $ 1,716,599 $ 263,270 $ 35,730 $ 21,067 $ 193,829 $ 71,482 $ 68,846 $ 2,688,622 Special mention 2,274 23,679 1,628 1,532 238 7,263 — 4,855 41,469 Substandard 3,088 13,784 1,753 1,627 117 4,581 107 — 25,057 Loss — — — — — — — — — Total originated $ 323,161 $ 1,754,062 $ 266,651 $ 38,889 $ 21,422 $ 205,673 $ 71,589 $ 73,701 $ 2,755,148 PNCI loans: Pass $ 59,184 $ 201,641 $ 13,686 $ 2,301 $ 2,067 $ 7,837 $ 9 $ 251 $ 286,976 Special mention 214 8,977 282 184 37 — — — 9,694 Substandard 1,808 550 971 73 37 — — — 3,439 Loss — — — — — — — — — Total PNCI $ 61,206 $ 211,168 $ 14,939 $ 2,558 $ 2,141 $ 7,837 $ 9 $ 251 $ 300,109 PCI loans $ 1,744 $ 8,038 $ 1,661 $ 485 $ 43 $ 2,505 — — $ 14,476 Total loans $ 386,111 $ 1,973,268 $ 283,251 $ 41,932 $ 23,606 $ 216,015 $ 71,598 $ 73,952 $ 3,069,733 Credit Quality Indicators – As of December 31, 2017 RE Mortgage Home Equity Other Construction (in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Originated loans: Pass $ 315,120 $ 1,649,333 $ 265,345 $ 37,428 $ 22,432 $ 195,208 $ 67,813 $ 64,492 $ 2,617,171 Special mention 2,234 18,434 2,558 800 272 9,492 — 4,872 38,662 Substandard 3,168 22,743 2,039 1,620 155 4,737 107 — 34,569 Loss — — — — — — — — — Total originated $ 320,522 $ 1,690,510 $ 269,942 $ 39,848 $ 22,859 $ 209,437 $ 67,920 $ 69,364 $ 2,690,402 PNCI loans: Pass $ 61,411 $ 203,751 $ 14,866 $ 2,433 $ 2,207 $ 8,390 $ 10 $ 263 $ 293,331 Special mention 218 11,513 450 188 38 1 — — 12,408 Substandard 1,890 559 932 77 6 — — — 3,464 Loss — — — — — — — — — Total PNCI $ 63,519 $ 215,823 $ 16,248 $ 2,698 $ 2,251 $ 8,391 $ 10 $ 263 $ 309,203 PCI loans $ 1,385 $ 8,563 $ 2,498 $ 485 $ 45 $ 2,584 — — $ 15,560 Total loans $ 385,426 $ 1,914,896 $ 288,688 $ 43,031 25,155 $ 220,412 $ 67,930 $ 69,627 $ 3,015,165 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 March 31, 2018 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 $ 2,217 $ 5,531 $ 938 $ 1,490 $ 63 $ 915 $ 298 $ — $ 11,452 60-89 — — 26 18 18 534 — 1,249 1,845 > 90 Days 846 1,162 320 154 — 1,557 — — 4,039 Total past due 3,063 6,693 1,284 1,662 81 3,006 298 1,249 17,336 Current 320,098 1,747,369 265,367 37,227 21,341 202,667 71,291 72,452 2,737,812 Total originated loans $ 323,161 $ 1,754,062 $ 266,651 $ 38,889 $ 21,422 $ 205,673 $ 71,589 $ 73,701 $ 2,755,148 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 2,235 $ 7,925 $ 733 $ 1,193 $ 4 $ 3,990 — — $ 16,080 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 March 31, 2018 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 $ 2,537 — $ 362 $ 2 — $ 1 — — $ 2,902 60-89 — — — — 4 — — — 4 > 90 Days — — 146 — 28 — — — 174 Total past due 2,537 — 508 2 32 1 — — 3,080 Current 58,669 211,168 14,431 2,556 2,109 7,836 9 251 297,029 Total PNCI loans $ 61,206 $ 211,168 $ 14,939 $ 2,558 $ 2,141 $ 7,837 $ 9 $ 251 $ 300,109 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 1,067 — $ 571 $ 40 $ 33 — — — $ 1,711 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, 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 Days $ 1,740 $ 158 $ 528 $ 511 $ 56 $ 956 $ 34 — $ 3,983 60-89 Days 510 987 48 107 36 738 — — 2,426 > 90 Days 243 — 372 373 3 1,527 — — 2,518 Total past due $ 2,493 $ 1,145 $ 948 $ 991 $ 95 $ 3,221 $ 34 — $ 8,927 Current 318,029 1,689,365 268,994 38,857 22,764 206,216 67,886 $ 69,364 2,681,475 Total originated loans $ 320,522 $ 1,690,510 $ 269,942 $ 39,848 $ 22,859 $ 209,437 $ 67,920 $ 69,364 $ 2,690,402 > 90 Days and still accruing — — — — — — — — — Nonaccrual loans $ 1,725 $ 8,144 $ 811 $ 1,106 $ 7 $ 3,669 — — $ 15,462 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, 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 Days $ 1,495 $ 70 $ 298 $ 30 $ 6 — — — $ 1,899 60-89 Days 90 — 228 — 26 — — — 344 > 90 Days 109 — 330 — — — — — 439 Total past due $ 1,694 $ 70 $ 856 $ 30 $ 32 — — — $ 2,682 Current 61,825 215,753 15,392 2,668 2,219 $ 8,391 $ 10 $ 263 306,521 Total PNCI loans $ 63,519 $ 215,823 $ 16,248 $ 2,698 $ 2,251 $ 8,391 $ 10 $ 263 $ 309,203 > 90 Days and still accruing $ 81 — $ 200 — — — — — $ 281 Nonaccrual loans $ 1,012 — $ 402 $ 44 $ 5 — — — $ 1,463 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 Three Months Ended, March 31, 2018 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 $ 2,678 $ 9,848 $ 888 $ 1,193 — $ 881 $ 136 — $ 15,624 Unpaid principal $ 2,829 $ 10,126 $ 944 $ 1,548 — $ 894 $ 136 — $ 16,477 Average recorded investment $ 2,368 $ 11,474 $ 991 $ 1,150 $ 2 $ 728 $ 138 — $ 16,851 Interest income recognized $ 19 $ 35 $ 6 — — $ 9 $ 2 — $ 71 With an allowance recorded: Recorded investment $ 1,525 $ 1,262 $ 527 $ 196 $ 4 $ 3,740 — — $ 7,254 Unpaid principal $ 1,549 $ 1,281 $ 534 $ 196 $ 4 $ 3,862 — — $ 7,426 Related allowance $ 190 $ 154 $ 146 $ 10 $ 4 $ 2,113 — — $ 2,617 Average recorded investment $ 1,703 $ 1,036 $ 464 $ 197 $ 4 $ 3,817 — — $ 7,221 Interest income recognized $ 9 $ 9 $ 4 $ 2 — $ 17 — — $ 41 Impaired PNCI Loans – As of, or for the Three Months Ended, March 31, 2018 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 $ 1,332 — $ 501 $ 40 $ 28 — — — $ 1,901 Unpaid principal $ 1,390 — $ 529 $ 54 $ 28 — — — $ 2,001 Average recorded investment $ 1,345 — $ 546 $ 42 $ 14 — — — $ 1,947 Interest income recognized $ 2 — $ 2 — — — — $ 4 With an allowance recorded: Recorded investment — — $ 534 $ 244 $ 246 — — — $ 1,024 Unpaid principal — — $ 536 $ 244 $ 246 — — — $ 1,026 Related allowance — — $ 302 $ 120 $ 52 — — — $ 474 Average recorded investment — — $ 568 $ 183 $ 248 — — — $ 999 Interest income recognized — — $ 3 $ 3 $ 2 — — — $ 8 Impaired Originated Loans – As of, or for the Twelve Months Ended, December 31, 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 $ 2,058 $ 13,101 $ 1,093 $ 1,107 $ 4 $ 575 $ 140 — $ 18,078 Unpaid principal $ 2,109 $ 13,360 $ 1,175 $ 1,429 $ 52 $ 585 $ 140 — $ 18,850 Average recorded investment $ 1,875 $ 13,123 $ 1,287 $ 852 $ 10 $ 668 $ 76 — $ 17,891 Interest income recognized $ 85 $ 609 $ 39 $ 14 — $ 18 $ 9 — $ 774 With an allowance recorded: Recorded investment $ 1,881 $ 810 $ 401 $ 198 $ 3 $ 3,895 — — $ 7,188 Unpaid principal $ 1,914 $ 826 $ 406 $ 198 $ 3 $ 3,981 — — $ 7,328 Related allowance $ 230 $ 30 $ 111 $ 10 $ 3 $ 1,848 — — $ 2,232 Average recorded investment $ 1,626 $ 728 $ 415 $ 341 $ 10 $ 3,615 — — $ 6,735 Interest income recognized $ 58 $ 36 $ 8 $ 10 — $ 166 — — $ 278 Impaired PNCI Loans – As of, or for the Twelve Months Ended, December 31, 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 $ 1,359 — $ 591 $ 44 — — — — $ 1,994 Unpaid principal $ 1,404 — $ 612 $ 57 — — — — $ 2,073 Average recorded investment $ 911 $ 913 $ 663 $ 56 $ 2 — — — $ 2,545 Interest income recognized $ 24 — $ 22 — — — — — $ 46 With an allowance recorded: Recorded investment — — $ 603 $ 121 $ 250 — — — $ 974 Unpaid principal — — $ 604 $ 121 $ 250 — — — $ 975 Related allowance — — $ 316 $ 97 $ 54 — — — $ 467 Average recorded investment $ 130 $ 66 $ 577 $ 61 $ 184 — — — $ 1,018 Interest income recognized — — $ 26 $ 6 $ 11 — — — $ 43 Impaired Originated Loans – As of, or for the Three Months Ended, March 31, 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 $ 1,782 $ 14,431 $ 1,064 $ 743 $ 5 $ 1,289 $ 11 — $ 19,325 Unpaid principal $ 1,793 $ 14,881 $ 1,144 $ 1,085 $ 6 $ 1,312 $ 16 — $ 20,237 Average recorded investment $ 2,834 $ 20,770 $ 2,013 $ 845 $ 12 $ 932 $ 7 — $ 27,413 Interest income recognized $ 20 $ 98 $ 6 $ 1 — $ 7 — — $ 132 With an allowance recorded: Recorded investment $ 1,378 $ 640 $ 427 $ 440 $ 21 $ 1,783 $ 14 — $ 4,703 Unpaid principal $ 1,382 $ 640 $ 440 $ 443 $ 22 $ 1,842 $ 14 — $ 4,783 Related allowance $ 172 $ 18 $ 106 $ 57 $ 14 $ 811 $ 14 — $ 1,192 Average recorded investment $ 1,692 $ 1,029 $ 1,076 $ 557 $ 11 $ 1,938 $ 7 — $ 6,310 Interest income recognized $ 11 $ 9 $ 1 $ 5 — $ 14 — — $ 40 Impaired PNCI Loans – As of, or for the Three Months Ended, March 31, 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 $ 433 $ 1,777 $ 220 $ 58 $ 138 — — — $ 2,626 Unpaid principal $ 455 $ 2,011 $ 233 $ 67 $ 139 — — — $ 2,905 Average recorded investment $ 654 $ 1,455 $ 337 $ 64 $ 86 $ 1 — $ 245 $ 2,842 Interest income recognized $ 2 — $ 1 — $ 2 — — — $ 5 With an allowance recorded: Recorded investment $ 256 $ 131 $ 493 — $ 116 — — — $ 996 Unpaid principal $ 256 $ 131 $ 493 — $ 116 — — — $ 996 Related allowance $ 77 $ 106 $ 295 — $ 16 — — — $ 494 Average recorded investment $ 128 $ 1,440 $ 550 $ 19 $ 175 — — — $ 2,312 Interest income recognized $ 2 $ 2 $ 5 — $ 1 — — — $ 10 At March 31, 2018, $9,781,000 of originated loans were TDR and classified as impaired. The Company had obligations to lend $1,000 of additional funds on these TDR as of March 31, 2018. At March 31, 2018, $1,471,000 of PNCI loans were TDR and classified as impaired. The Company had no obligations to lend additional funds on these TDR as of March 31, 2018. At December 31, 2017, $12,517,000 of Originated loans were TDRs and classified as impaired. The Company had obligations to lend $1,000 of additional funds on these TDRs as of December 31, 2017. At December 31, 2017, $1,352,000 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, 2017. At March 31, 2017, $12,285,000 of originated loans were TDR and classified as impaired. The Company had obligations to lend $70,000 of additional funds on these TDR as of March 31, 2017. At March 31, 2017, $1,470,000 of PNCI loans were TDR and classified as impaired. The Company had no obligations to lend additional funds on these TDR as of March 31, 2017. The following table shows certain information regarding TDRs that occurred during the period indicated: TDR Information for the Three Months Ended March 31, 2018 RE Mortgage Home Equity Other Construction (dollars in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Number — 1 1 1 — — — — 3 Pre-mod — $ 384 $ 133 $ 121 — — — — $ 638 Post-mod — $ 384 $ 138 $ 121 — — — — $ 643 Financial impact due to TDR taken as additional provision — $ 11 — — — — — — $ 11 Number that defaulted during the period — 1 — — — — — — 1 Recorded investment of TDRs that defaulted during the period — $ 169 — — — — — — $ 169 Financial impact due to the default of previous TDR taken as charge-offs or additional provisions — — — — — — — — — The following table shows certain information regarding TDRs that occurred during the period indicated: TDR Information for the Year Ended December 31, 2017 RE Mortgage Home Equity Other Construction (dollars in thousands) Resid. Comm. Lines Loans Consum. C&I Resid. Comm. Total Number 1 8 3 1 1 11 1 — 26 Pre-mod $ 939 $ 3,721 $ 187 $ 252 $ 14 $ 1,854 $ 144 — $ 7,111 Post-mod $ 939 $ 3,695 $ 187 $ 252 $ 14 $ 1,747 $ 144 — $ 6,978 Financial impact due to TDR taken as additional provision $ 169 $ (111 ) $ 27 — $ 11 $ 37 — — $ 133 Number that defaulted during the period 2 1 1 1 — — — — 5 Recorded investment of TDRs that defaulted during the period $ 223 $ 219 $ 127 $ 55 — — — — $ 624 Financial impact due to the default of previous TDR taken as charge-offs or additional provisions — — $ (5 ) — — — — — $ (5 ) 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. |