| 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 March 31, 2017 and December 31, 2016 was as follows: March 31, December 31, Residential real estate $ 819,639 $ 802,494 Commercial real estate 1,096,475 1,050,780 Commercial 333,607 333,639 Home equity 322,826 329,907 Consumer 16,669 17,332 HPFC 55,923 60,412 Total loans $ 2,645,139 $ 2,594,564 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: March 31, December 31, Net unamortized fair value mark discount on acquired loans $ 8,125 $ 8,810 Net unamortized loan origination (costs) fees (248 ) (66 ) Total $ 7,877 $ 8,744 The Bank’s lending activities are primarily conducted in Maine, but also include a mortgage loan production office in Massachusetts and a commercial loan production office in New Hampshire. 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. Effective February 19, 2016, the Company closed HPFC's operations and is no longer originating loans. 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. Effective January 1, 2017, the Company's internal policy for assessing individual loans for impairment was changed to increase the principal balance threshold for a loan from $250,000 to $500,000 . The qualitative factors for assessing a loan individually for impairment in accordance with the Company's internal policy were unchanged, and continue to require the loan to be classified as substandard or doubtful and on non-accrual status. There were no other significant changes in the Company's ALL methodology during the three months ended March 31, 2017 . 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. The 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 & equipment, 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 presents the activity in the ALL and select loan information by portfolio segment for the three months ended March 31, 2017 and 2016, and for the year ended December 31, 2016 : Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Three Months Ended March 31, 2017 ALL: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (5 ) (3 ) (136 ) (1 ) (14 ) — (159 ) Recoveries — 103 77 1 2 — 183 Provision (credit) (1) 116 472 119 (87 ) 6 (45 ) 581 Ending balance $ 4,271 $ 12,726 $ 3,815 $ 2,107 $ 175 $ 627 $ 23,721 ALL balance attributable to loans: Individually evaluated for impairment $ 485 $ 1,100 $ — $ 83 $ — $ 66 $ 1,734 Collectively evaluated for impairment 3,786 11,626 3,815 2,024 175 561 21,987 Total ending ALL $ 4,271 $ 12,726 $ 3,815 $ 2,107 $ 175 $ 627 $ 23,721 Loans: Individually evaluated for impairment $ 4,408 $ 13,191 $ 1,994 $ 430 $ 7 $ 98 $ 20,128 Collectively evaluated for impairment 815,231 1,083,284 331,613 322,396 16,662 55,825 2,625,011 Total ending loans balance $ 819,639 $ 1,096,475 $ 333,607 $ 322,826 $ 16,669 $ 55,923 $ 2,645,139 For The Three Months Ended March 31, 2016 ALL: Beginning balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ 21,166 Loans charged off (210 ) (222 ) (226 ) (128 ) (15 ) — (801 ) Recoveries 40 9 52 1 2 — 104 Provision (1) 141 161 231 18 2 317 870 Ending balance $ 4,516 $ 10,380 $ 3,298 $ 2,622 $ 182 $ 341 $ 21,339 ALL balance attributable to loans: Individually evaluated for impairment $ 512 $ 158 $ 214 $ 89 $ — $ 307 $ 1,280 Collectively evaluated for impairment 4,004 10,222 3,084 2,533 182 34 20,059 Total ending ALL $ 4,516 $ 10,380 $ 3,298 $ 2,622 $ 182 $ 341 $ 21,339 Loans: Individually evaluated for impairment $ 6,033 $ 3,130 $ 3,862 $ 492 $ 7 $ 357 $ 13,881 Collectively evaluated for impairment 805,941 949,351 288,202 344,005 17,182 74,072 2,478,753 Total ending loans balance $ 811,974 $ 952,481 $ 292,064 $ 344,497 $ 17,189 $ 74,429 $ 2,492,634 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC 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 to 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 ending loans balance $ 802,494 $ 1,050,780 $ 333,639 $ 329,907 $ 17,332 $ 60,412 $ 2,594,564 (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 March 31, 2017 and 2016, and December 31, 2016 , the reserve for unfunded commitments was $9,000 , $24,000 and $11,000 , respectively. The following reconciles the three months ended March 31, 2017 and 2016, and year ended December 31, 2016 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income: Three Months Ended Year Ended December 31, 2016 2017 2016 Provision for loan losses $ 581 $ 870 $ 5,269 Change in reserve for unfunded commitments (2 ) 2 (11 ) Provision for credit losses $ 579 $ 872 $ 5,258 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 March 31, 2017 , the non-residential building operators' industry exposure was 13% of the Company's total loan portfolio and 31% of the total commercial real estate portfolio. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of March 31, 2017 . 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, residential real estate, and HPFC 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 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 March 31, 2017 Pass (Grades 1-6) $ 808,075 $ 1,038,096 $ 321,667 $ — $ — $ 53,669 $ 2,221,507 Performing — — — 321,278 16,665 — 337,943 Special Mention (Grade 7) 952 15,625 5,486 — — 239 22,302 Substandard (Grade 8) 10,612 42,754 5,017 — — 2,015 60,398 Doubtful (Grade 9) — — 1,437 — — — 1,437 Non-performing — — — 1,548 4 — 1,552 Total $ 819,639 $ 1,096,475 $ 333,607 $ 322,826 $ 16,669 $ 55,923 $ 2,645,139 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 The Company closely monitors the performance of its loan portfolio. 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 may 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 March 31, 2017 Residential real estate $ 2,188 $ 354 $ 3,376 $ 5,918 $ 813,721 $ 819,639 $ — $ 4,105 Commercial real estate 2,393 127 12,653 15,173 1,081,302 1,096,475 — 12,858 Commercial 76 92 1,566 1,734 331,873 333,607 — 1,994 Home equity 870 188 1,346 2,404 320,422 322,826 — 1,548 Consumer 18 12 4 34 16,635 16,669 — 4 HPFC 1,056 259 476 1,791 54,132 55,923 — 1,014 Total $ 6,601 $ 1,032 $ 19,421 $ 27,054 $ 2,618,085 $ 2,645,139 $ — $ 21,523 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 Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $210,000 and $184,000 for the three months ended March 31, 2017 and 2016 , 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 net realizable value, 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 the periods indicated: Number of Contracts Recorded Investment Specific Reserve March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Residential real estate 22 21 $ 3,354 $ 3,221 $ 485 $ 483 Commercial real estate 3 3 1,003 1,008 15 — Commercial 10 10 1,497 1,502 — — Home equity 1 1 14 16 — — Total 36 35 $ 5,868 $ 5,747 $ 500 $ 483 At March 31, 2017 , the Company had performing and non-performing TDRs with a recorded investment balance of $4.6 million and $1.3 million , respectively. 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. The following represents loan modifications that qualify as TDRs that occurred for the three months ended March 31, 2017 and 2016: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve 2017 2016 2017 2016 2017 2016 2017 2016 Residential real estate: Maturity concession 1 — $ 151 $ — $ 151 $ — $ 15 $ — Total 1 — $ 151 $ — $ 151 $ — $ 15 $ — For the three months ended March 31, 2017 and 2016, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. 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 three months ended March 31, 2017 and 2016, and as of and for the year-ended December 31, 2016: Three Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31 , 2017 : With an allowance recorded: Residential real estate $ 3,048 $ 3,048 $ 485 $ 3,025 $ 26 Commercial real estate 11,791 11,791 1,100 11,654 — Commercial 1 1 — — — Home equity 297 297 83 298 — Consumer — — — — — HPFC 98 98 66 98 — Ending balance 15,235 15,235 1,734 15,075 26 Without an allowance recorded: Residential real estate 1,360 1,740 — 1,292 2 Commercial real estate 1,400 1,707 — 1,704 10 Commercial 1,993 3,167 — 2,024 3 Home equity 133 269 — 139 — Consumer 7 10 — 7 — HPFC — — — — — Ending balance 4,893 6,893 — 5,166 15 Total impaired loans $ 20,128 $ 22,128 $ 1,734 $ 20,241 $ 41 March 31 , 2016 : With an allowance recorded: Residential real estate $ 3,137 $ 3,137 $ 512 $ 3,156 $ 27 Commercial real estate 540 538 158 1,256 — Commercial 321 334 214 239 — Home equity 303 303 89 303 — Consumer — — — — — HPFC 357 383 307 230 — Ending Balance 4,658 4,695 1,280 5,184 27 Without an allowance recorded: Residential real estate 2,896 3,832 — 2,954 2 Commercial real estate 2,590 3,327 — 2,643 11 Commercial 3,541 3,996 — 3,664 4 Home equity 189 452 — 218 — Consumer 7 10 — 7 — HPFC — — — — — Ending Balance 9,223 11,617 — 9,486 17 Total impaired loans $ 13,881 $ 16,312 $ 1,280 $ 14,670 $ 44 Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2016: With an 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 an 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 Loan Sales: For the three months ended March 31, 2017 and 2016, the Company sold $43.0 million and $38.9 million , respectively, of fixed rate residential mortgage loans on the secondary market that resulted in gains on the sale of loans (net of costs) of $1.3 million and $819,000 , respectively. At March 31, 2017 and December 31, 2016 , the Company had certain residential mortgage loans with a principal balance of $5.7 million and $15.1 million , respectively, designated as held for sale. The Company has elected the fair value option of accounting for its loans held for sale, and at March 31, 2017 and December 31, 2016, recorded an unrealized loss of $35,000 and $289,000 , respectively. For the three months ended March 31, 2017 and 2016 , the Company recorded within non-interest income on its consolidated statements of income the net change in unrealized gains of $254,000 and $6,000 , respectively. In-Process Foreclosure Proceedings: At March 31, 2017 and December 31, 2016 , the Company had $1.8 million and $1.4 million , respectively, 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. FHLB Advances: FHLB advances are those borrowings from the FHLBB greater than 90 days. FHLB advances are collateralized by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one- to four-family properties, certain commercial real estate loans, certain pledged investment securities and other qualified assets. The carrying value of residential real estate and commercial loans pledged as collateral was $1.1 billion at March 31, 2017 and December 31, 2016 . Refer to Notes 3 and 11 of the consolidated financial statements for discussion of securities pledged as collateral. |
