Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The composition of the Company’s loan portfolio, excluding residential loans held for sale, at December 31, 2016 and 2015 was as follows: December 31, 2016 2015 Residential real estate loans $ 802,494 $ 820,617 Commercial real estate loans 1,050,780 927,951 Commercial loans 333,639 297,721 Home equity loans 329,907 348,634 Consumer loans 17,332 17,953 HPFC 60,412 77,330 Total loans $ 2,594,564 $ 2,490,206 The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination (costs) fees totaling: December 31, 2016 2015 Net unamortized fair value mark discount on acquired loans $ 8,810 $ 13,083 Net unamortized loan origination (costs) fees (66 ) 370 Total $ 8,744 $ 13,453 The Bank’s lending activities are primarily conducted in Maine, and its footprint continues to expand into other New England states, including New Hampshire and Massachusetts. The Company originates single family and multi-family residential loans, commercial real estate loans, business loans, municipal loans and a variety of consumer loans. In addition, the Company makes loans for the construction of residential homes, multi-family properties and commercial real estate properties. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographic area and the general economy. The HPFC loan portfolio consists of niche commercial lending to the small business medical field, including dentists, optometrists and veterinarians across the U.S. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the success of the borrower's business. Unlike the Bank's loan portfolio, there is, generally, little to no indication of credit quality issues and/or concerns of borrowers honoring their commitments until a payment is delinquent. Generally, once a payment is delinquent, if the payment is not received shortly thereafter to bring the loan current, the loan is deemed impaired (typically within 45 days). Effective February 19, 2016, the Company closed HPFC's operations and is no longer originating loans. The Bank, in the normal course of business, has made loans to certain officers, directors and their associated companies, under terms that are consistent with the Company’s lending policies and regulatory requirements. Loans, including any unused lines of credit, to related parties were as follows: December 31, 2016 2015 Balance at beginning of year $ 16,628 $ 17,469 Loans made/advanced and additions 434 374 Repayments and reductions (1,120 ) (1,215 ) Balance at end of year $ 15,942 $ 16,628 The ALL is management’s best estimate of the inherent risk of loss in the Company’s loan portfolio as of the consolidated statement of condition date. Management makes various assumptions and judgments about the collectability of the loan portfolio and provides an allowance for potential losses based on a number of factors including historical losses. If those assumptions are incorrect, the ALL may not be sufficient to cover losses and may cause an increase in the allowance in the future. Among the factors that could affect the Company’s ability to collect loans and require an increase to the allowance in the future are: (i) financial condition of borrowers; (ii) real estate market changes; (iii) state, regional, and national economic conditions; and (iv) a requirement by federal and state regulators to increase the provision for loan losses or recognize additional charge-offs. The Board of Directors monitors credit risk through the Directors' Loan Review Committee, which reviews large credit exposures, monitors the external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, concentration levels, and the ALL methodology. Credit Risk Administration and the Credit Risk Policy Committee oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, maintain the integrity of the loan rating system, determine the adequacy of the ALL and support the oversight efforts of the Directors' Loan Review Committee and the Board of Directors. The Company's practice is to proactively manage the portfolio such that management can identify problem credits early, assess and implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. For purposes of determining the ALL, the Company disaggregates its loans into portfolio segments, which include residential real estate, commercial real estate, commercial, home equity, consumer and HPFC. Each portfolio segment possesses unique risk characteristics that are considered when determining the appropriate level of allowance. These risk characteristics unique to each portfolio segment include: Residential Real Estate . Residential real estate loans held in the Company's loan portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Collateral consists of mortgage liens on one- to four-family residential properties. Commercial Real Estate. Commercial real estate loans consist of mortgage loans to finance investments in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational, health care facilities and other specific use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial real estate loans are primarily paid by the cash flow generated from the real property, such as operating leases, rents, or other operating cash flows from the borrower. Commercial. Commercial loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured. Home Equity. Home equity loans and lines are made to qualified individuals for legitimate purposes secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. The home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. The home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Consumer. Consumer loan products including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. HPFC. Prior to the Company's closing of HPFC's operations, effective February 19, 2016, it provided commercial lending to dentists, optometrists and veterinarians, many of which were start-up companies. HPFC's loan portfolio consists of term loan obligations extended for the purpose of financing working capital and/or purchase of equipment. Collateral consists of pledges of business assets including, but not limited to, accounts receivable, inventory, and/or equipment. These loans are primarily paid by the operating cash flow of the borrower and the terms range from seven to ten years. The following table presents the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 2016 , 2015 , and 2014 : Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Unallocated Total For The Year Ended December 31, 2016: ALL: Beginning balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 Loans charged off (356 ) (315 ) (2,218 ) (308 ) (101 ) (507 ) — (3,805 ) Recoveries 95 50 332 2 7 — — 486 Provision (credit) (1) (124 ) 1,987 2,400 (231 ) 82 1,155 — 5,269 Ending balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ — $ 23,116 ALL balance attributable loans: Individually evaluated for impairment $ 483 $ 1,373 $ — $ 86 $ — $ 65 $ — $ 2,007 Collectively evaluated for impairment 3,677 10,781 3,755 2,108 181 607 — 21,109 Total ending ALL $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ — $ 23,116 Loans: Individually evaluated for impairment $ 4,348 $ 13,317 $ 2,028 $ 457 $ 7 $ 97 $ — $ 20,254 Collectively evaluated for impairment 798,146 1,037,463 331,611 329,450 17,325 60,315 — 2,574,310 Total loan balances $ 802,494 $ 1,050,780 $ 333,639 $ 329,907 $ 17,332 $ 60,412 $ — $ 2,594,564 For The Year Ended December 31, 2015: ALL: Beginning balance $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 Loans charged off (801 ) (481 ) (655 ) (525 ) (154 ) — — (2,616 ) Recoveries 55 74 389 188 22 — — 728 Provision (credit) (1) 392 2,888 153 821 44 24 (2,384 ) 1,938 Ending balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 ALL balance attributable loans: Individually evaluated for impairment $ 544 $ 644 $ 92 $ 89 $ — $ — $ — $ 1,369 Collectively evaluated for impairment 4,001 9,788 3,149 2,642 193 24 — 19,797 Total ending ALL $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 Loans: Individually evaluated for impairment $ 6,026 $ 4,610 $ 3,937 $ 588 $ 74 $ — $ — $ 15,235 Collectively evaluated for impairment 814,591 923,341 293,784 348,046 17,879 77,330 — 2,474,971 Total loan balances $ 820,617 $ 927,951 $ 297,721 $ 348,634 $ 17,953 $ 77,330 $ — $ 2,490,206 For The Year Ended December 31, 2014: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Unallocated Total ALL: Beginning balance $ 5,603 $ 7,206 $ 3,388 $ 2,403 $ 319 $ — $ 2,671 $ 21,590 Loans charged off (785 ) (361 ) (1,544 ) (611 ) (143 ) — — (3,444 ) Recoveries 165 136 394 19 32 — — 746 Provision (credit) (1) (84 ) 970 1,116 436 73 — (287 ) 2,224 Ending balance $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 ALL balance attributable loans: Individually evaluated for impairment $ 787 $ 78 $ 10 $ — $ 78 $ — $ — $ 953 Collectively evaluated for impairment 4,112 7,873 3,344 2,247 203 — 2,384 20,163 Total ending ALL $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 Loans: Individually evaluated for impairment $ 6,411 $ 5,379 $ 646 $ 331 $ 157 $ — $ — $ 12,924 Collectively evaluated for impairment 579,057 635,282 256,869 271,378 17,100 — — 1,759,686 Total loan balances $ 585,468 $ 640,661 $ 257,515 $ 271,709 $ 17,257 $ — $ — $ 1,772,610 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2016 , 2015 , and 2014 , the reserve for unfunded commitments was $11,000 , $22,000 and $17,000 , respectively. The following table reconciles the year ended December 31, 2016 , 2015 , and 2014 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income: For the Year Ended December 31, 2016 2015 2014 Provision for loan losses $ 5,269 $ 1,938 $ 2,224 Change in reserve for unfunded commitments (11 ) (2 ) (4 ) Provision for credit losses $ 5,258 $ 1,936 $ 2,220 The Company did not have any significant changes to its ALL methodology for the year ended December 31, 2016. In the fourth quarter of 2015, the Company revised its methodology for the ALL whereby it no longer provided for an unallocated reserve, but, instead, incorporated the qualitative factors into the Company's general reserve. Historically, the unallocated reserve served as a method to account for qualitative risks, including general economic and market risks, within its portfolio without specifically assigning to any one or more portfolio segments. At December 31, 2016 and 2015, the Company’s reported unallocated reserve was $0 . The change in methodology did not have any impact on the Company's reported ALL or provision for loan losses at or for the year ended December 31, 2015. The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To ensure that credit concentrations can be effectively identified, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored by Credit Risk Administration. As of December 31, 2016 , the non-residential building operators' industry concentration was 12% of the Company's total loan portfolio and 31% of the total commercial real estate portfolio. There were no other industry concentrations exceeding 10% of the Company's total loan portfolio as of December 31, 2016 . To further identify loans with similar risk profiles, the Company categorizes each portfolio segment into classes by credit risk characteristic and applies a credit quality indicator to each portfolio segment. The indicators for commercial, commercial real estate and residential real estate loans are represented by Grades 1 through 10 as outlined below. In general, risk ratings are adjusted periodically throughout the year as updated analysis and review warrants. This process may include, but is not limited to, annual credit and loan reviews, periodic reviews of loan performance metrics, such as delinquency rates, and quarterly reviews of adversely risk rated loans. The Company uses the following definitions when assessing grades for the purpose of evaluating the risk and adequacy of the ALL: • Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties. • Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification. • Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral. • Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. • Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted. Asset quality indicators are periodically reassessed to appropriately reflect the risk composition of the Company’s loan portfolio. Home equity and consumer loans are not individually risk rated, but rather analyzed as groups taking into account delinquency rates and other economic conditions which may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due over 90 days and non-accrual loans, including TDRs, are considered non-performing. The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total December 31, 2016: Pass (Grades 1 – 6) $ 789,554 $ 1,003,386 $ 321,148 $ — $ — $ 58,943 $ 2,173,031 Performing — — — 328,287 17,328 — 345,615 Special Mention (Grade 7) 2,387 5,724 5,598 — — 257 13,966 Substandard (Grade 8) 10,553 41,670 5,437 — — 1,212 58,872 Doubtful (Grade 9) — — 1,456 — — — 1,456 Non-performing — — — 1,620 4 — 1,624 Total $ 802,494 $ 1,050,780 $ 333,639 $ 329,907 $ 17,332 $ 60,412 $ 2,594,564 December 31, 2015: Pass (Grades 1 – 6) $ 802,873 $ 868,664 $ 281,553 $ — $ — $ 70,173 $ 2,023,263 Performing — — — 346,701 17,835 — 364,536 Special Mention (Grade 7) 3,282 20,732 7,527 — — 3,179 34,720 Substandard (Grade 8) 14,462 38,555 8,641 — — 3,978 65,636 Non-performing — — — 1,933 118 — 2,051 Total $ 820,617 $ 927,951 $ 297,721 $ 348,634 $ 17,953 $ 77,330 $ 2,490,206 The Company closely monitors the performance of its loan portfolio for both the Bank and HPFC. A loan is placed on non-accrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is well-secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on non-accrual status, all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual status. All previously accrued and unpaid interest is reversed at this time. A loan will return to accrual status when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period. Unsecured loans, however, are not normally placed on non-accrual status because they are charged-off once their collectability is in doubt. The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates: 30 – 59 Days Past Due 60 – 89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Outstanding Loans > 90 Days Past Due and Accruing Non-Accrual Loans December 31, 2016: Residential real estate $ 1,783 $ 924 $ 2,904 $ 5,611 $ 796,883 802,494 $ — $ 3,945 Commercial real estate 855 223 12,625 13,703 1,037,077 1,050,780 — 12,849 Commercial 633 218 1,675 2,526 331,113 333,639 — 2,088 Home equity 892 134 1,321 2,347 327,560 329,907 — 1,620 Consumer 38 — 4 42 17,290 17,332 — 4 HPFC 438 688 110 1,236 59,176 60,412 — 207 Total $ 4,639 $ 2,187 $ 18,639 $ 25,465 $ 2,569,099 $ 2,594,564 $ — $ 20,713 December 31, 2015: Residential real estate $ 3,325 $ 571 $ 6,077 $ 9,973 $ 810,644 $ 820,617 $ — $ 7,253 Commercial real estate 4,219 2,427 1,584 8,230 919,721 927,951 — 4,529 Commercial 267 550 1,002 1,819 295,902 297,721 — 4,489 Home equity 643 640 1,505 2,788 345,846 348,634 — 1,933 Consumer 112 7 118 237 17,716 17,953 — 118 HPFC 165 — — 165 77,165 77,330 — — Total $ 8,731 $ 4,195 $ 10,286 $ 23,212 $ 2,466,994 $ 2,490,206 $ — $ 18,322 Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms for the year ended December 31, 2016 , 2015 , and 2014 was $888,000 , $586,000 , and $842,000 , respectively. TDRs: The Company takes a conservative approach with credit risk management and remains focused on community lending and reinvesting. The Company works closely with borrowers experiencing credit problems to assist in loan repayment or term modifications. TDR loans consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that it would not otherwise consider. TDRs, typically, involve term modifications or a reduction of either interest or principal. Once such an obligation has been restructured, it will remain a TDR until paid in full, or until the loan is again restructured at current market rates and no concessions are granted. The specific reserve allowance was determined by discounting the total expected future cash flows from the borrower at the original loan interest rate, or if the loan is currently collateral-dependent, using the NRV, which was obtained through independent appraisals and internal evaluations. The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of December 31: Number of Contracts Recorded Investment Specific Reserve 2016 2015 2016 2015 2016 2015 Residential real estate 21 22 $ 3,221 $ 3,398 $ 483 $ 544 Commercial real estate 3 6 1,008 1,459 — 48 Commercial 10 9 1,502 399 — 11 Consumer and home equity 1 1 16 21 — — Total 35 38 $ 5,747 $ 5,277 $ 483 $ 603 At December 31, 2016 , the Company had performing and non-performing TDRs with a recorded investment balance of $4.3 million and $1.4 million , respectively. At December 31, 2015 , the Company had performing and non-performing TDRs with a recorded investment balance of $4.8 million and $446,000 , respectively. The following represents loan modifications that occurred for the year ended December 31, 2016 , 2015 and 2014 that qualify as TDRs and the type of loan modification made by portfolio segment at December 31: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Residential real estate: Maturity concession — — 1 $ — $ — $ 136 $ — $ — $ 149 $ — $ — $ 43 Court ordered — 1 — — 74 — — 78 — — 27 — Commercial real estate: Maturity concession — — 1 — — 235 — — 235 — — — Commercial: Maturity concession 6 — — 2,973 — — 2,973 — — 1,400 — — Court ordered — — 3 — — 77 — — 77 — — 6 Home equity: Principal forgiveness and maturity — — 1 — — 40 — — 30 — — — Total 6 1 6 $ 2,973 $ 74 $ 488 $ 2,973 $ 78 $ 491 $ 1,400 $ 27 $ 49 During the third quarter of 2016, the Company completed the restructure of one commercial relationship for which there were six individual commercial loans. The Company had a specific reserve on these loans totaling $1.4 million that was charged-off subsequent to the loan modification. Additionally, as part of the restructure, the Company committed to lend additional funds of up to $280,000 , and, at December 31, 2016, the Company had loaned $47,000 on its commitment. The Company did no t have any other commitments to lend additional funds to borrowers with loans classified as TDRs as of December 31, 2016. For the year ended December 31, 2016, 2015 and 2014, the Company did no t have any loans that had been modified as a TDR within the previous 12 months and for which the borrower subsequently defaulted for the periods indicated. Impaired Loans: Impaired loans consist of non-accrual and TDR loans that are individually evaluated for impairment in accordance with the Company's policy. The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the year ended December 31, 2016 , 2015 and 2014 : Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2016: With related allowance recorded: Residential real estate $ 3,019 $ 3,019 $ 483 $ 3,088 $ 106 Commercial real estate 11,443 11,443 1,373 5,165 — Commercial — — — 762 — Home equity 299 299 86 305 — Consumer — — — — — HPFC 97 97 65 98 — Ending Balance 14,858 14,858 2,007 9,418 106 Without related allowance recorded: Residential real estate 1,329 1,800 — 2,057 9 Commercial real estate 1,874 2,369 — 2,214 51 Commercial 2,028 3,209 — 2,507 16 Home equity 158 368 — 180 — Consumer 7 10 — 12 — HPFC — — — — — Ending Balance 5,396 7,756 — 6,970 76 Total impaired loans $ 20,254 $ 22,614 $ 2,007 $ 16,388 $ 182 December 31, 2015: With related allowance recorded: Residential real estate $ 3,191 $ 3,191 $ 544 $ 6,064 $ 112 Commercial real estate 1,825 1,857 644 1,753 — Commercial 156 156 92 945 2 Home equity 303 303 89 900 — Consumer — — — 195 — HPFC — — — — — Ending Balance 5,475 5,507 1,369 9,857 114 Without related allowance recorded: Residential real estate 2,835 4,353 — 2,175 8 Commercial real estate 2,785 3,426 — 2,719 65 Commercial 3,781 4,325 — 1,412 17 Home equity 285 688 — 369 — Consumer 74 150 — 20 — HPFC — — — — — Ending Balance 9,760 12,942 — 6,695 90 Total impaired loans $ 15,235 $ 18,449 $ 1,369 $ 16,552 $ 204 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2014: With related allowance recorded: Residential real estate $ 4,468 $ 4,468 $ 787 $ 9,254 $ 125 Commercial real estate 1,140 1,140 78 4,721 — Commercial 183 183 10 2,366 8 Home equity — — — 1,428 — Consumer 140 140 78 348 — Ending Balance 5,931 5,931 953 18,117 133 Without related allowance recorded: Residential real estate 1,943 2,604 — 2,257 7 Commercial real estate 4,239 4,502 — 2,869 40 Commercial 463 606 — 791 11 Home equity 331 581 — 399 — Consumer 17 37 — 21 — Ending Balance 6,993 8,330 — 6,337 58 Total impaired loans $ 12,924 $ 14,261 $ 953 $ 24,454 $ 191 The impaired loan information presented above as of and for the year ended December 31, 2015 and 2014 has been revised to disclose only those impaired loans that are individually evaluated for impairment in accordance with the Company's policy, which includes (i) loans with a principal balance greater than $250,000 or more and are classified as substandard or doubtful and are on non-accrual status and (ii) all TDRs. Previously, the Company's impaired loan disclosures included certain non-accrual loans which were collectively evaluated under ASC 450-20. The revision of prior period information had no impact on the Company's ALL, provision for loan losses, or its asset quality ratios as of and for the year ended December 31, 2015 and 2014. In-Process Foreclosure Proceedings: At December 31, 2016 and 2015 , the Company had $1.4 million and $2.9 million of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process. The Company continues to be focused on working these consumer mortgage loans through the foreclosure process to resolution; however, the foreclosure process, typically, will take 18 to 24 months due to the State of Maine foreclosure laws. |