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, 2019 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance Mortgage loans on real estate: Residential 1-4 $ 2,500 $ (2 ) $ 3 $ 75 $ 2,576 Commercial 12,330 — 10 (241 ) 12,099 Total mortgage loans on real estate 14,830 (2 ) 13 (166 ) 14,675 Consumer: Home equity lines of credit 6,015 — 183 (339 ) 5,859 Home equity loans 1,286 — 171 (215 ) 1,242 Other 1,040 (153 ) 108 456 1,451 Total consumer loans 8,341 (153 ) 462 (98 ) 8,552 Commercial 6,078 (138 ) 85 720 6,745 Construction: Residential 2,408 — — 130 2,538 Commercial 407 — — (49 ) 358 Total construction 2,815 — — 81 2,896 Total $ 32,064 $ (293 ) $ 560 $ 537 $ 32,868 Allowance for Loan Losses – Six Months Ended June 30, 2019 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance Mortgage loans on real estate: Residential 1-4 $ 2,676 $ (2 ) $ 5 $ (103 ) $ 2,576 Commercial 12,944 — 1,391 (2,236 ) 12,099 Total mortgage loans on real estate 15,620 (2 ) 1,396 (2,339 ) 14,675 Consumer: Home equity lines of credit 6,042 — 278 (461 ) 5,859 Home equity loans 1,540 — 258 (556 ) 1,242 Other 793 (360 ) 183 835 1,451 Total consumer loans 8,375 (360 ) 719 (182 ) 8,552 Commercial 6,090 (657 ) 253 1,059 6,745 Construction: Residential 1,834 — — 704 2,538 Commercial 663 — — (305 ) 358 Total construction 2,497 — — 399 2,896 Total $ 32,582 $ (1,019 ) $ 2,368 $ (1,063 ) $ 32,868 Allowance for Loan Losses – As of June 30, 2019 (in thousands) Loans pooled Individually Loans acquired Total allowance Mortgage loans on real estate: Residential 1-4 $ 2,522 $ 54 $ — $ 2,576 Commercial 12,015 84 — 12,099 Total mortgage loans on real estate 14,537 138 — 14,675 Consumer: Home equity lines of credit 5,764 85 10 5,859 Home equity loans 1,181 61 — 1,242 Other 1,433 18 — 1,451 Total consumer loans 8,378 164 10 8,552 Commercial 4,605 2,140 — 6,745 Construction: Residential 2,538 — — 2,538 Commercial 358 — — 358 Total construction 2,896 — — 2,896 Total $ 30,416 $ 2,442 $ 10 $ 32,868 Loans, Net of Unearned fees – As of June 30, 2019 (in thousands) Loans pooled Individually Loans acquired Total loans, net Mortgage loans on real estate: Residential 1-4 $ 500,304 $ 4,305 $ 1,440 $ 506,049 Commercial 2,655,692 11,030 5,959 2,672,681 Total mortgage loans on real estate 3,155,996 15,335 7,399 3,178,730 Consumer: Home equity lines of credit 327,726 2,046 1,128 330,900 Home equity loans 29,860 2,056 429 32,345 Other 70,986 156 1 71,143 Total consumer loans 428,572 4,258 1,558 434,388 Commercial 268,405 5,102 2,538 276,045 Construction: Residential 157,515 — — 157,515 Commercial 57,009 — — 57,009 Total construction 214,524 — — 214,524 Total $ 4,067,497 $ 24,695 $ 11,495 $ 4,103,687 Allowance for Loan Losses – Year Ended December 31, 2018 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance Mortgage loans on real estate: Residential 1-4 $ 2,317 $ (77 ) $ — $ 436 $ 2,676 Commercial 11,441 (15 ) 68 1,450 12,944 Total mortgage loans on real estate 13,758 (92 ) 68 1,886 15,620 Consumer: Home equity lines of credit 5,800 (277 ) 846 (327 ) 6,042 Home equity loans 1,841 (24 ) 297 (574 ) 1,540 Other 586 (783 ) 288 702 793 Total consumer loans 8,227 (1,084 ) 1,431 (199 ) 8,375 Commercial 6,512 (1,188 ) 541 225 6,090 Construction: Residential 1,184 — — 650 1,834 Commercial 642 — — 21 663 Total construction 1,826 — — 671 2,497 Total $ 30,323 $ (2,364 ) $ 2,040 $ 2,583 $ 32,582 Allowance for Loan Losses – As of December 31, 2018 (in thousands) Loans pooled Individually Loans acquired Total allowance Mortgage loans on real estate: Residential 1-4 $ 2,620 $ 56 $ — $ 2,676 Commercial 12,737 91 116 12,944 Total mortgage loans on real estate 15,357 147 116 15,620 Consumer: Home equity lines of credit 5,838 198 6 6,042 Home equity loans 1,486 54 — 1,540 Other 779 14 — 793 Total consumer loans 8,103 266 6 8,375 Commercial 4,309 1,781 — 6,090 Construction: Residential 1,834 — — 1,834 Commercial 663 — — 663 Total construction 2,497 — — 2,497 Total $ 30,266 $ 2,194 $ 122 $ 32,582 Loans, Net of Unearned fees – As of December 31, 2018 (in thousands) Loans pooled Individually Loans acquired Total loans, net Mortgage loans on real estate: Residential 1-4 $ 509,267 $ 4,321 $ 1,674 $ 515,262 Commercial 2,606,819 12,563 8,456 2,627,838 Total mortgage loans on real estate 3,116,086 16,884 10,130 3,143,100 Consumer: Home equity lines of credit 322,764 2,646 1,167 326,577 Home equity loans 33,142 3,103 439 36,684 Other 55,483 196 42 55,721 Total consumer loans 411,389 5,945 1,648 418,982 Commercial 268,885 5,218 2,445 276,548 Construction: Residential 121,296 — — 121,296 Commercial 62,088 — — 62,088 Total construction 183,384 — — 183,384 Total $ 3,979,744 $ 28,047 $ 14,223 $ 4,022,014 Allowance for Loan Losses – Three Months Ended June 30, 2018 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance Mortgage loans on real estate: Residential 1-4 $ 2,170 $ (51 ) $ — $ (128 ) $ 1,991 Commercial 11,495 (15 ) 21 106 11,607 Total mortgage loans on real estate 13,665 (66 ) 21 (22 ) 13,598 Consumer: Home equity lines of credit 5,412 (24 ) 317 (657 ) 5,048 Home equity loans 1,736 — 23 (227 ) 1,532 Other 570 (174 ) 66 95 557 Total consumer loans 7,718 (198 ) 406 (789 ) 7,137 Commercial 6,392 (54 ) 80 (40 ) 6,378 Construction: Residential 1,351 — — 83 1,434 Commercial 847 — — 130 977 Total construction 2,198 — — 213 2,411 Total $ 29,973 $ (318 ) $ 507 $ (638 ) $ 29,524 Allowance for Loan Losses – Six Months Ended June 30, 2018 (in thousands) Beginning Charge-offs Recoveries Provision Ending Balance Mortgage loans on real estate: Residential 1-4 $ 2,317 $ (52 ) $ — $ (274 ) $ 1,991 Commercial 11,441 (15 ) 36 145 11,607 Total mortgage loans on real estate 13,758 (67 ) 36 (129 ) 13,598 Consumer: Home equity lines of credit 5,800 (104 ) 526 (1,174 ) 5,048 Home equity loans 1,841 — 37 (346 ) 1,532 Other 586 (368 ) 144 195 557 Total consumer loans 8,227 (472 ) 707 (1,325 ) 7,137 Commercial 6,512 (259 ) 130 (5 ) 6,378 Construction: Residential 1,184 — — 250 1,434 Commercial 642 — — 335 977 Total construction 1,826 — — 585 2,411 Total $ 30,323 $ (798 ) $ 873 $ (874 ) $ 29,524 Allowance for Loan Losses – As of June 30, 2018 (in thousands) Loans pooled Individually Loans acquired Total allowance Mortgage loans on real estate: Residential 1-4 $ 1,794 $ 147 $ 50 $ 1,991 Commercial 11,466 82 59 11,607 Total mortgage loans on real estate 13,260 229 109 13,598 Consumer: Home equity lines of credit 4,754 287 7 5,048 Home equity loans 1,340 192 — 1,532 Other 503 54 — 557 Total consumer loans 6,597 533 7 7,137 Commercial 4,228 2,127 23 6,378 Construction: Residential 1,434 — — 1,434 Commercial 977 — — 977 Total construction 2,411 — — 2,411 Total $ 26,496 $ 2,889 $ 139 $ 29,524 Loans, Net of Unearned fees – As of June 30, 2018 (in thousands) Loans pooled Individually Loans acquired Total loans, net Mortgage loans on real estate: Residential 1-4 $ 376,628 $ 6,344 $ 1,720 $ 384,692 Commercial 1,997,591 11,162 7,595 2,016,348 Total mortgage loans on real estate 2,374,219 17,506 9,315 2,401,040 Consumer: Home equity lines of credit 282,611 2,250 1,575 286,436 Home equity loans 38,074 2,457 455 40,986 Other 23,213 247 43 23,503 Total consumer loans 343,898 4,954 2,073 350,925 Commercial 230,395 4,751 2,473 237,619 Construction: Residential 73,578 — — 73,578 Commercial 83,151 — — 83,151 Total construction 156,729 — — 156,729 Total $ 3,105,241 $ 27,211 $ 13,861 $ 3,146,313 As part of the on-going 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 Originated Loans – As of June 30, 2019 (in thousands) Pass Special Substandard Doubtful / Loss Total Originated Mortgage loans on real estate: Residential 1-4 $ 342,847 $ 1,048 $ 4,842 $ — $ 348,737 Commercial 1,964,292 32,562 9,131 — 2,005,985 Total mortgage loans on real estate 2,307,139 33,610 13,973 — 2,354,722 Consumer: Home equity lines of credit 290,524 1,673 2,344 — 294,541 Home equity loans 26,265 564 2,212 — 29,041 Other 53,044 189 107 — 53,340 Total consumer loans 369,833 2,426 4,663 — 376,922 Commercial 237,025 5,194 5,993 311 248,523 Construction: Residential 148,178 — 254 — 148,432 Commercial 55,958 331 — — 56,289 Total construction 204,136 331 254 — 204,721 Total loans $ 3,118,133 $ 41,561 $ 24,883 $ 311 $ 3,184,888 Credit Quality Indicators PNCI Loans – As of June 30, 2019 (in thousands) Pass Special Substandard Doubtful / Loss Total PNCI Mortgage loans on real estate: Residential 1-4 $ 154,238 $ 864 $ 770 $ — $ 155,872 Commercial 650,821 3,141 6,775 — 660,737 Total mortgage loans on real estate 805,059 4,005 7,545 — 816,609 Consumer: Home equity lines of credit 33,345 795 1,091 — 35,231 Home equity loans 2,727 69 79 — 2,875 Other 17,545 254 3 — 17,802 Total consumer loans 53,617 1,118 1,173 — 55,908 Commercial 24,650 1 333 — 24,984 Construction: Residential 9,083 — — — 9,083 Commercial 475 — 245 — 720 Total construction 9,558 — 245 — 9,803 Total loans $ 892,884 $ 5,124 $ 9,296 $ — $ 907,304 Credit Quality Indicators Originated Loans – As of December 31, 2018 (in thousands) Pass Special Substandard Doubtful / Loss Total Originated Mortgage loans on real estate: Residential 1-4 $ 337,189 $ 1,724 $ 4,883 $ — $ 343,796 Commercial 1,861,627 33,483 15,871 — 1,910,981 Total mortgage loans on real estate 2,198,816 35,207 20,754 — 2,254,777 Consumer: Home equity lines of credit 279,491 2,309 2,653 — 284,453 Home equity loans 29,289 1,054 2,317 — 32,660 Other 33,606 341 73 — 34,020 Total consumer loans 342,386 3,704 5,043 — 351,133 Commercial 217,126 6,127 5,382 — 228,635 Construction: Residential 90,412 32 259 — 90,703 Commercial 55,863 345 — — 56,208 Total construction 146,275 377 259 — 146,911 Total loans $ 2,904,603 $ 45,415 $ 31,438 $ — $ 2,981,456 Credit Quality Indicators PNCI Loans – As of December 31, 2018 (in thousands) Pass Special Substandard Doubtful / Loss Total PNCI Mortgage loans on real estate: Residential 1-4 $ 167,908 $ 1,086 $ 798 $ — $ 169,792 Commercial 701,868 3,085 3,448 — 708,401 Total mortgage loans on real estate 869,776 4,171 4,246 — 878,193 Consumer: Home equity lines of credit 38,780 1,124 1,053 — 40,957 Home equity loans 3,413 74 98 — 3,585 Other 21,481 173 5 — 21,659 Total consumer loans 63,674 1,371 1,156 — 66,201 Commercial 45,027 321 120 — 45,468 Construction: Residential 30,593 — — — 30,593 Commercial 5,880 — — — 5,880 Total construction 36,473 — — — 36,473 Total $ 1,014,950 $ 5,863 $ 5,522 $ — $ 1,026,335 Consumer loans, whether unsecured or secured by real estate, automobiles, or other personal property, are susceptible to three primary risks; non-payment non-payment 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 commercial 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 or revaluations are obtained at initiation of the credit and periodically, but not less than every twelve 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 The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated: Analysis of Originated Past Due Loans - As of June 30, 2019 (in thousands) 30-59 60-89 > 90 days Total Past Current Total > 90 Days and Mortgage loans on real estate: Residential 1-4 $ 635 $ 1,132 $ 758 $ 2,525 $ 346,212 $ 348,737 $ — Commercial 1,022 174 901 2,097 2,003,888 2,005,985 — Total mortgage loans on real estate 1,657 1,306 1,659 4,622 2,350,100 2,354,722 — Consumer: Home equity lines of credit 1,197 557 157 1,911 292,630 294,541 — Home equity loans 565 89 217 871 28,170 29,041 Other 44 13 7 64 53,276 53,340 12 Total consumer loans 1,806 659 381 2,846 374,076 376,922 12 Commercial 1,154 1,560 333 3,047 245,476 248,523 10 Construction: Residential 151 — — 151 148,281 148,432 — Commercial — — — — 56,289 56,289 — Total construction 151 — — 151 204,570 204,721 — Total originated loans $ 4,768 $ 3,525 $ 2,373 $ 10,666 $ 3,174,222 $ 3,184,888 $ 22 The following table shows the ending balance of current and past due PNCI loans by loan category as of the date indicated: Analysis of PNCI Past Due Loans - As of June 30, 2019 (in thousands) 30-59 60-89 > 90 days Total Past Current Total > 90 Days and Mortgage loans on real estate: Residential 1-4 $ — $ 682 $ — $ 682 $ 155,190 $ 155,872 $ — Commercial — 195 950 1,145 659,592 660,737 — Total mortgage loans on real estate — 877 950 1,827 814,782 816,609 — Consumer: Home equity lines of credit 101 73 24 198 35,033 35,231 — Home equity loans 62 — — 62 2,813 2,875 — Other 119 — — 119 17,683 17,802 — Total consumer loans 282 73 24 379 55,529 55,908 — Commercial 820 150 113 1,083 23,901 24,984 — Construction: Residential — — — — 9,083 9,083 — Commercial 245 — — 245 475 720 — Total construction 245 — — 245 9,558 9,803 — Total PNCI loans $ 1,347 $ 1,100 $ 1,087 $ 3,534 $ 903,770 $ 907,304 $ — The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated: Analysis of Originated Past Due Loans - As of December 31, 2018 (in thousands) 30-59 60-89 > 90 days Total Past Current Total > 90 Days and Mortgage loans on real estate: Residential 1-4 $ 1,675 $ 132 $ 478 $ 2,285 $ 341,511 $ 343,796 $ — Commercial 431 1,200 296 1,927 1,909,054 1,910,981 — Total mortgage loans on real estate 2,106 1,332 774 4,212 2,250,565 2,254,777 — Consumer: Home equity lines of credit 908 47 609 1,564 282,889 284,453 — Home equity loans 1,043 24 214 1,281 31,379 32,660 — Other 298 17 — 315 33,705 34,020 — Total consumer loans 2,249 88 823 3,160 347,973 351,133 — Commercial 1,053 579 1,247 2,879 225,756 228,635 — Construction: Residential 209 — — 209 90,494 90,703 — Commercial — — — — 56,208 56,208 — Total construction 209 — — 209 146,702 146,911 — Total loans $ 5,617 $ 1,999 $ 2,844 $ 10,460 $ 2,970,996 $ 2,981,456 $ — The following table shows the ending balance of current and past due PNCI loans by loan category as of the date indicated: Analysis of PNCI Past Due Loans - As of December 31, 2018 (in thousands) 30-59 60-89 > 90 days Total Past Current Total > 90 Days and Mortgage loans on real estate: Residential 1-4 $ 1,009 $ 133 $ 156 $ 1,298 $ 168,494 $ 169,792 $ — Commercial 1,646 1,136 1,082 3,864 704,537 708,401 — Total mortgage loans on real estate 2,655 1,269 1,238 5,162 873,031 878,193 — Consumer: Home equity lines of credit 304 35 237 576 40,381 40,957 — Home equity loans 74 — — 74 3,511 3,585 — Other 160 — — 160 21,499 21,659 — Total consumer loans 538 35 237 810 65,391 66,201 — Commercial 678 145 113 936 44,532 45,468 — Construction: Residential — — — — 30,593 30,593 — Commercial — — — — 5,880 5,880 — Total construction — — — — 36,473 36,473 — Total loans $ 3,871 $ 1,449 $ 1,588 $ 6,908 $ 1,019,427 $ 1,026,335 $ — Interest income on originated nonaccrual loans that would have been recognized during the three months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $289,000 and $341,000, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2019 and 2018 was $53,000 and $53,000, respectively. Interest income on PNCI nonaccrual loans that would have been recognized during the three months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $160,000 and $26,000, respectively. Interest income actually recognized on these PNCI loans during the three months ended June 30, 2019 and 2018 was $111,000 and $12,000. Interest income on originated nonaccrual loans that would have been recognized during the six months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $568,000 and $626,000, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2019 and 2018 was $86,000 and $75,000, respectively. Interest income on PNCI nonaccrual loans that would have been recognized during the six months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $281,000 and $54,000, respectively. Interest income actually recognized on these PNCI loans during the six months ended June 30, 2019 and 2018 was $171,000 and $11,000. The following table shows the ending balance of nonaccrual originated and PNCI loans by loan category as of the date indicated: Non Accrual Loans As of June 30, 2019 As of December 31, 2018 (in thousands) Originated PNCI Total Originated PNCI Total Mortgage loans on real estate: Residential 1-4 $ 3,357 $ 300 $ 3,657 $ 3,244 $ 334 $ 3,578 Commercial 4,354 3,461 7,815 9,263 1,468 10,731 Total mortgage loans on real estate 7,711 3,761 11,472 12,507 1,802 14,309 Consumer: Home equity lines of credit 880 516 1,396 1,429 885 2,314 Home equity loans 1,610 34 1,644 1,722 47 1,769 Other 58 3 61 3 4 7 Total consumer loans 2,548 553 3,101 3,154 936 4,090 Commercial 3,873 183 4,056 3,755 120 3,875 Construction: Residential — — — — — — Commercial — — — — — — Total construction — — — — — — Total non accrual loans $ 14,132 $ 4,497 $ 18,629 $ 19,416 $ 2,858 $ 22,274 Impaired originated loans are those where management has concluded that it is probable that the borrower will be unable to pay all amounts due in accordance with the original contractual terms of the loan agreement. 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. The average recorded investment in impaired loans and interest income recognized on impaired loans during the three months ended June 30, 2019 and 2018 was not considered significant for financial reporting purposes. Impaired Originated Loans – As of, or for the Six Months Ended, June 30, 2019 (in thousands) Unpaid Recorded Recorded Total recorded Related Average Interest income Mortgage loans on real estate: Residential 1-4 $ 4,739 $ 3,705 $ 300 $ 4,005 $ 54 $ 4,291 $ 18 Commercial 7,906 5,103 2,465 7,568 808 10,004 40 Total mortgage loans on real estate 12,645 8,808 2,765 11,573 862 14,295 58 Consumer: Home equity lines of credit 1,333 1,271 — 1,271 — 1,510 8 Home equity loans 2,373 1,571 268 1,839 61 2,003 4 Other 76 3 54 57 13 48 1 Total consumer loans 3,782 2,845 322 3,167 74 3,561 13 Commercial 5,150 1,884 3,035 4,919 1,301 5,065 15 Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total $ 21,577 $ 13,537 $ 6,122 $ 19,659 $ 2,237 $ 22,921 $ 86 Impaired PNCI Loans – As of, or for the Six Months Ended, June 30, 2019 (in thousands) Unpaid Recorded Recorded Total recorded Related Average Interest income Mortgage loans on real estate: Residential 1-4 $ 339 $ 300 $ — $ 300 $ — $ 317 $ — Commercial 5,079 3,462 — 3,462 — 2,465 171 Total mortgage loans on real estate 5,418 3,762 — 3,762 — 2,782 171 Consumer: Home equity lines of credit 612 534 241 775 85 889 — Home equity loans 167 148 69 217 44 229 — Other 62 62 37 99 6 105 — Total consumer loans 841 744 347 1,091 135 1,223 — Commercial 113 113 70 183 70 151 Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total $ 6,372 $ 4,619 $ 417 $ 5,036 $ 205 $ 4,156 $ 171 Impaired Originated Loans – As of, or for the Twelve Months Ended, December 31, 2018 (in thousands) Unpaid Recorded Recorded Total recorded Related Average Interest income Mortgage loans on real estate: Residential 1-4 $ 4,594 $ 3,663 $ 308 $ 3,971 $ 56 $ 3,517 $ 90 Commercial 13,081 10,676 1,765 12,441 42 13,115 137 Total mortgage loans on real estate 17,675 14,339 2,073 16,412 98 16,632 227 Consumer: Home equity lines of credit 1,900 1,749 111 1,860 71 1,885 43 Home equity loans 2,374 1,892 65 1,957 2 1,520 23 Other 3 — 3 3 3 17 2 Total consumer loans 4,277 3,641 179 3,820 76 3,422 68 Commercial 5,433 2,924 2,287 5,211 1,774 4,654 91 Construction: Residential — — — — — 5 — Commercial — — — — — — — Total construction — — — — — 5 — Total $ 27,385 $ 20,904 $ 4,539 $ 25,443 $ 1,948 $ 24,713 $ 386 Impaired PNCI Loans – As of, or for the Twelve Months Ended, December 31, 2018 (in thousands) Unpaid Recorded Recorded Total recorded Related Average Interest income Mortgage loans on real estate: Residential 1-4 $ 375 $ 334 $ — $ 334 $ — $ 529 $ 5 Commercial 3,110 1,468 — 1,468 — 1,713 183 Total mortgage loans on real estate 3,485 1,802 — 1,802 — 2,242 188 Consumer: Home equity lines of credit 1,027 587 367 954 127 1,120 18 Home equity loans 252 47 197 244 101 155 — Other 106 21 85 106 11 114 — Total consumer loans 1,385 655 649 1,304 239 1,389 18 Commercial 120 113 7 120 7 60 1 Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total $ 4,990 $ 2,570 $ 656 $ 3,226 $ 246 $ 3,691 $ 207 Impaired Originated Loans – As of, or for the Six Months Ended, June 30, 2018 (in thousands) Unpaid Recorded Recorded Total recorded Related Average Interest income Mortgage loans on real estate: Residential 1-4 $ 5,656 $ 3,947 $ 1,050 $ 4,997 $ 147 $ 4,600 $ 28 Commercial 11,280 9,763 1,076 10,839 82 10,975 9 Total mortgage loans on real estate 16,936 13,710 2,126 15,836 229 15,575 37 Consumer: Home equity lines of credit 1,244 1,108 106 1,214 29 1,315 3 Home equity loans 2,558 1,828 351 2,179 38 1,784 15 Other 3 — 3 3 3 3 — Total consumer loans 3,805 2,936 460 3,396 70 3,102 18 Commercial 4,952 809 3,942 4,751 2,127 4,686 20 Construction: Residential — — — — — 68 — Commercial — — — — — — — Total construction — — — — — 68 — Total $ 25,693 $ 17,455 $ 6,528 $ 23,983 $ 2,426 $ 23,431 $ 75 Impaired PNCI Loans – As of, or for the Six Months Ended, June 30, 2018 (in thousands) Unpaid Recorded Recorded Total recorded Related Average Interest income Mortgage loans on real estate: Residential 1-4 $ 1,417 $ 1,348 $ — $ 1,348 $ — $ 1,339 $ — Commercial 323 323 — 323 — 161 9 Total mortgage loans on real estate 1,740 1,671 — 1,671 — 1,500 9 Consumer: Home equity lines of credit 1,098 529 506 1,035 258 1,035 2 Home equity loans 293 36 242 278 154 281 — Other 244 — 244 244 51 259 — Total consumer loans 1,635 565 992 1,557 463 1,575 2 Commercial — — — — — — Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total $ 3,375 $ 2,236 $ 992 $ 3,228 $ 463 $ 3,075 $ 11 Originated loans classified as TDRs and impaired were $10,998,000, $10,253,000, and $9,450,000 at June 30, 2019, December 31, 2018, and June 30, 2018, respectively. PNCI loans classified as TDRs and impaired were $811,000, $615,000, and $1,459,000 at June 30, 2019, December 31, 2018 and June 30, 2018, respectively. The Company had no significant obligations to lend additional funds on Originated or PNCI TDRs as of June 30, 2019, December 31, 2018, or June 30, 2018. The following tables show certain information regarding TDRs that occurred during the periods indicated: TDR Information for the Three Months Ended June 30, 2019 (dollars in thousands) Number Pre-mod Post-mod Financial Number that Recorded Financial impact Mortgage loans on real estate: Residential 1-4 $ $ $ — — $ — $ — Commercial — — — — — — — Total mortgage loans on real estate — — — — — — — Consumer: Home equity lines of credit 1 65 68 — — — — Home equity loans 1 28 27 27 — — — Other — — — — — — — Total consumer loans 2 93 95 27 — — — Commercial 4 1,754 1,722 2 — Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total 6 $ 1,847 $ 1,817 $ 29 — $ — $ — TDR Information for the Six Months Ended June 30, 2019 (dollars in thousands) Number Pre-mod Post-mod Financial Number that Recorded Financial impact Mortgage loans on real estate: Residential 1-4 1 $ 163 $ 162 $ — — $ — $ — Commercial — — — — — — — Total mortgage loans on real estate 1 163 162 — — — — Consumer: Home equity lines of credit 1 65 68 — — — — Home equity loans 2 149 147 29 — — — Other — — — — — — — Total consumer loans 3 214 215 29 — — — Commercial 6 1,768 1,737 2 1 7 — Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total 10 $ 2,145 $ 2,114 $ 31 1 $ 7 $ — TDR Information for the Three Months Ended June 30, 2018 (dollars in thousands) Number Pre-mod Post-mod Financial Number that Recorded Financial impact Mortgage loans on real estate: Residential 1-4 — $ — $ — $ — — $ — $ — Commercial 1 34 34 34 — — — Total mortgage loans on real estate 1 34 34 34 — — — Consumer: Home equity lines of credit — — — — Home equity loans — — — — Other — — — — — — — Total consumer loans — — — — — — — Commercial 2 416 421 (2 ) 4 340 (2 ) Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total 3 $ 450 $ 455 $ 32 4 $ 340 $ (2 ) TDR Information for the Six Months Ended June 30, 2018 (dollars in thousands) Number Pre-mod Post-mod Financial Number that Recorded Financial impact Mortgage loans on real estate: Residential 1-4 — $ — $ — $ — — $ — $ — Commercial 2 417 417 46 1 169 — Total mortgage loans on real estate 2 417 417 46 1 169 — Consumer: Home equity lines of credit 1 133 138 — — — — Home equity loans 1 121 121 — — — — Other — — — — — — — Total consumer loans 2 254 259 — — — — Commercial 2 416 421 (2 ) 4 340 (2 ) Construction: Residential — — — — — — — Commercial — — — — — — — Total construction — — — — — — — Total 6 $ 1,087 $ 1,097 $ 44 5 $ 509 $ (2 ) 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 |