Allowance for Credit Losses [Text Block] | Note 4: Allowance for Loan Losses, Nonperforming Assets and Impaired Loans Impaired loans are those loans that have been modified in a troubled debt restructure (“TDR” or “restructure”) and larger, non-homogeneous loans that are in nonaccrual or exhibit payment history or financial status that indicate the probability that collection will not occur when due according to the loan’s original contractual terms. Generally, impaired loans are given risk ratings that indicate higher risk, such as “classified” or “other assets especially mentioned.” Impaired loans are individually evaluated to determine appropriate reserves and are measured at the lower of the invested amount or the fair value. Impaired loans that are not troubled debt restructures and for which fair value measurement indicates an impairment loss are designated nonaccrual. A restructured loan that maintains current status for at least six months may be in accrual status. Please refer to Note 1 of the Company’s 2015 Form 10-K, “Summary of Significant Accounting Policies” for additional information on evaluation of impaired loans and associated specific reserves, and policies regarding nonaccruals, past due status and charge-offs. Troubled debt restructures impact the estimation of the appropriate level of the allowance for loan losses. If the restructuring included forgiveness of a portion of principal, the charge-off is included in the historical charge-off rates incorporated in the collective evaluation methodology. Further, restructured loans are individually evaluated for impairment and any amount of book value that exceeds fair value is accrued in the allowance for loan losses. TDRs that experience a payment default are examined to determine whether the default indicates collateral dependency or a decline in estimates of cash flow used in the fair value measurement. TDRs that are determined to be collateral-dependent, as well as all impaired loans that are determined to be collateral dependent, are charged down to fair value net of estimated costs to sell. Deficiencies indicated by impairment measurements for TDRs that are not collateral dependent may be accrued in the allowance for loan losses or charged off if deemed uncollectible. The Company evaluated characteristics in the loan portfolio and determined major segments and smaller classes within each segment. These characteristics include collateral type, repayment sources, and (if applicable) the borrower’s business model. The methodology for calculating reserves for collectively-evaluated loans is applied at the class level. Portfolio Segments and Classes The segments and classes used in determining the allowance for loan losses are as follows. Real Estate Construction Construction, residential Construction, other Consumer Real Estate Equity lines Residential closed-end first liens Residential closed-end junior liens Investor-owned residential real estate Commercial Real Estate Multifamily real estate Commercial real estate, owner-occupied Commercial real estate, other Commercial Non Real Estate Commercial and industrial Public Sector and IDA Public sector and IDA Consumer Non Real Estate Credit cards Automobile Other consumer loans Historical Loss Rates The Company’s allowance methodology for collectively-evaluated loans applies historical loss rates by class to current class balances as part of the process of determining required reserves. Class loss rates are calculated as the net charge-offs for the class as a percentage of average class balance. The Company averages loss rates for the most recent 8 quarters to determine the historical loss rate for each class. Two loss rates for each class are calculated: total net charge-offs for the class as a percentage of average class loan balance (“class loss rate”), and total net charge-offs for the class as a percentage of average classified loans in the class (“classified loss rate”). Classified loans are those with risk ratings of “substandard”, “doubtful” or “loss”. Net charge-offs in both calculations include charge-offs and recoveries of classified and non-classified loans as well as those associated with impaired loans. Class historical loss rates are applied to non-classified loan balances at the reporting date, and classified historical loss rates are applied to classified loan balances that are not individually evaluated at the reporting date. Risk Factors In addition to historical loss rates, risk factors pertinent to credit risk for each class are analyzed to estimate reserves for collectively-evaluated loans. Factors include changes in national and local economic and business conditions, the nature and volume of classes within the portfolio, loan quality, loan officers’ experience, lending policies and the Company’s loan review system. The analysis of certain factors results in standard allocations to all segments and classes. These factors include loan officers’ average years of experience, the risk from changes in loan review, unemployment levels, bankruptcy rates, the interest rate environment, and the competitive, legal and regulatory environments. Factors analyzed for each class, with resultant allocations based upon the level of risk assessed for each class, include the risk from changes in lending policies, levels of past due loans, nonaccrual loans, current class balance as a percentage of total loans, and the percentage of high risk loans within the class. Additionally, factors specific to each segment are analyzed and result in allocations to the segment. Please refer to the Company’s 2015 10-K, Note 1: Summary of Significant Accounting Policies for a discussion of risk factors pertinent to each class. Real estate construction loans are subject to general risks from changing commercial building and housing market trends and economic conditions that may impact demand for completed properties and the costs of completion. These risks are measured by market-area unemployment rates, bankruptcy rates, housing market trends, and interest rates. The credit quality of consumer real estate is subject to risks associated with the borrower’s repayment ability and collateral value, measured generally by analyzing local unemployment and bankruptcy trends, local housing market trends, and interest rates. The commercial real estate segment includes loans secured by multifamily residential real estate, commercial real estate occupied by the owner/borrower, and commercial real estate leased to non-owners. Loans in the commercial real estate segment are impacted by economic risks from changing commercial real estate markets, rental markets for multi-family housing and commercial buildings, business bankruptcy rates, local unemployment and interest rate trends that would impact the businesses housed by the commercial real estate. Commercial non real estate loans are secured by collateral other than real estate, or are unsecured. Credit risk for commercial non real estate loans is subject to economic conditions, generally monitored by local business bankruptcy trends, and interest rates. Public sector and IDA loans are extended to municipalities and related entities. Credit risk is based upon the entity’s ability to repay and interest rate trends. Consumer non real estate includes credit cards, automobile and other consumer loans. Credit cards and certain other consumer loans are unsecured, while collateral is obtained for automobile loans and other consumer loans. Credit risk stems primarily from the borrower’s ability to repay, measured by average unemployment, average personal bankruptcy rates and interest rates. Factor allocations applied to each class are increased for loans rated special mention and increased to a greater extent for loans rated classified. The Company allocates additional reserves for “high risk” loans. High risk loans include junior liens, interest only and high loan to value loans. A detailed analysis showing the allowance roll-forward by portfolio segment and related loan balance by segment follows. A ctivity in the Allowance for Loan Losses for the Nine Months Ended September 30, 2016 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Balance, December 31, 2015 $ 576 $ 1,866 $ 4,109 $ 655 $ 436 $ 627 $ 28 $ 8,297 Charge-offs (29 ) (131 ) (149 ) (767 ) --- (191 ) --- (1,267 ) Recoveries --- 2 71 6 --- 44 --- 123 Provision for loan losses (43 ) 111 (525 ) 1,493 (66 ) 152 26 1,148 Balance, September 30, 2016 $ 504 $ 1,848 $ 3,506 $ 1,387 $ 370 $ 632 $ 54 $ 8,301 A ctivity in the Allowance for Loan Losses for the Nine Months Ended September 30, 2015 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Balance, December 31, 2014 $ 612 $ 1,662 $ 3,537 $ 1,475 $ 327 $ 602 $ 48 $ 8,263 Charge-offs --- (201 ) (155 ) (453 ) --- (193 ) --- (1,002 ) Recoveries --- 1 36 1 --- 84 --- 122 Provision for loan losses $ (77 ) 332 420 (153 ) 170 21 21 734 Balance, September 30, 2015 $ 535 $ 1,794 $ 3,838 $ 870 $ 497 $ 514 $ 69 $ 8,117 A ctivity in the Allowance for Loan Losses for the Year Ended December 31, 2015 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Balance, December 31, 2014 $ 612 $ 1,662 $ 3,537 $ 1,475 $ 327 $ 602 $ 48 $ 8,263 Charge-offs --- (205 ) (1,114 ) (490 ) --- (311 ) --- (2,120 ) Recoveries --- 2 49 1 --- 93 --- 145 Provision for loan losses $ (36 ) $ 407 $ 1,637 $ (331 ) $ 109 $ 243 $ (20 ) $ 2,009 Balance, December 31, 2015 $ 576 $ 1,866 $ 4,109 $ 655 $ 436 $ 627 $ 28 $ 8,297 Allowance for Loan Losses as of September 30, 2016 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Individually evaluated for impairment $ --- $ 27 $ --- $ --- $ --- $ --- $ --- $ 27 Collectively evaluated for impairment 504 1,821 3,506 1,387 370 632 54 8,274 Total $ 504 $ 1,848 $ 3,506 $ 1,387 $ 370 $ 632 $ 54 $ 8,301 Allowance for Loan Losses as of December 31, 2015 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Individually evaluated for impairment $ --- $ 22 $ 23 $ --- $ --- $ --- $ --- $ 45 Collectively evaluated for impairment 576 1,844 4,086 655 436 627 28 8,252 Total $ 576 $ 1,866 $ 4,109 $ 655 $ 436 $ 627 $ 28 $ 8,297 Loans as of September 30, 2016 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Individually evaluated for impairment $ 273 $ 889 $ 8,448 $ 297 $ --- $ 3 $ --- $ 9,910 Collectively evaluated for impairment 39,917 150,263 316,641 41,273 45,957 33,076 --- 627,127 Total loans $ 40,190 $ 151,152 $ 325,089 $ 41,570 $ 45,957 $ 33,079 $ --- $ 637,037 Loans as of December 31, 2015 Real Estate Construction Consumer Real Estate Commercial Real Estate Commercial Non Real Estate Public Sector and IDA Consumer Non Real Estate Unallocated Total Individually evaluated for impairment $ 718 $ 962 $ 12,575 $ 1,091 $ --- $ --- $ --- $ 15,346 Collectively evaluated for impairment 47,533 142,542 296,803 36,480 51,335 29,845 --- 604,538 Total $ 48,251 $ 143,504 $ 309,378 $ 37,571 $ 51,335 $ 29,845 $ --- $ 619,884 A summary of ratios for the allowance for loan losses follows. As of the Nine Months Ended September 30, For the Year E nded December 31, 2016 2015 2015 Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees 1.30 % 1.30 % 1.34 % Ratio of net charge-offs to average loans, net of unearned income and deferred fees (1) 0.25 % 0.19 % 0.32 % (1) A summary of nonperforming assets follows. September 30, December 31, 2016 2015 2015 Nonperforming assets: Nonaccrual loans $ 1,592 $ 3,207 $ 2,043 Restructured loans in nonaccrual 3,901 5,781 4,639 Total nonperforming loans 5,493 8,988 6,682 Other real estate owned, net 3,188 4,194 4,165 Total nonperforming assets $ 8,681 $ 13,182 $ 10,847 Ratio of nonperforming assets to loans, net of unearned income and deferred fees, plus other real estate owned 1.36 % 2.09 % 1.74 % Ratio of allowance for loan losses to nonperforming loans ( 1 ) 151.12 % 90.31 % 124.17 % (1) A summary of loans past due 90 days or more and impaired loans follows. September 30, December 31, 2016 2015 2015 Loans past due 90 days or more and still accruing $ 195 $ 47 $ 156 Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees 0.03 % 0.01 % 0.03 % Accruing restructured loans $ 4,662 $ 6,080 $ 8,814 Impaired loans: Impaired loans with no valuation allowance $ 9,290 $ 12,548 $ 12,973 Impaired loans with a valuation allowance 620 2,464 2,373 Total impaired loans $ 9,910 $ 15,012 $ 15,346 Valuation allowance (27 ) (144 ) (45 ) Impaired loans, net of allowance $ 9,883 $ 14,868 $ 15,301 Average recorded investment in impaired loans (1) $ 12,908 $ 15,902 $ 17,297 Interest income recognized on impaired loans, after designation as impaired $ 476 $ 267 $ 769 Amount of income recognized on a cash basis $ --- $ --- $ --- (1) Nonaccrual loans that meet the Company’s balance threshold of $250 and all TDRs are designated as impaired. No interest income was recognized on nonaccrual loans for the nine months ended September 30, 2016 or September 30, 2015 or for the year ended December 31, 2015. A detailed analysis of investment in impaired loans, associated reserves and interest income recognized, segregated by loan class follows. Impaired Loans as of September 30, 2016 Principal Balance Total Recorded Investment (1) Recorded Investment (1 ) Which There is No Related Allowance Recorded Investment (1) Which There is a Related Allowance Related Allowance Real Estate Construction (2) Construction 1-4 family residential $ 280 $ 273 $ 273 $ --- $ --- Co nsumer Real Estate (2) Residential closed-end first liens 653 615 269 346 15 Residential closed-end junior liens 201 201 --- 201 8 Investor-owned residential real estate 73 73 --- 73 4 Commercial Real Estate (2) Multifamily real estate 1,732 1,459 1,459 --- --- Commercial real estate, owner-occupied 4,277 4,228 4,228 --- --- Commercial real estate, other 3,012 2,761 2,761 --- --- Commercial Non Real Estate (2) Commercial and industrial 311 297 297 --- --- Consumer Non Real Estate Automobile 3 3 3 --- --- Total $ 10,542 $ 9,910 $ 9,290 $ 620 $ 27 (1) (2) Impaired Loans as of December 31, 2015 Principal Balance Total Recorded Investment (1) Recorded Investment (1) Which There is No Related Allowance Recorded Investment (1) Which There is a Related Allowance Related Allowance Real Estate Construction (2) Construction 1-4 family residential $ 718 $ 718 $ 718 $ --- $ --- Co nsumer Real Estate (2) Residential closed-end first liens 713 669 305 364 13 Residential closed-end junior liens 218 218 --- 218 5 Investor-owned residential real estate 75 75 --- 75 4 Commercial Real Estate (2) Multifamily real estate 1,988 1,728 1,728 --- --- Commercial real estate, owner occupied 5,068 5,020 3,304 1,716 23 Commercial real estate, other 5,990 5,827 5,827 --- --- Commercial Non Real Estate (2) Commercial and industrial 1,099 1,091 1,091 --- --- Total $ 15,869 $ 15,346 $ 12,973 $ 2,373 $ 45 (1) (2) Only classes with impaired loans are shown. The following tables show the average recorded investment and interest income recognized for impaired loans. For the Nine Months Ended September 30, 2016 Average Recorded Investment (1) Interest Income Recognized Real Estate Construction (2) Construction 1-4 family residential $ 529 $ --- Co nsumer Real Estate (2) Residential closed-end first liens 652 28 Residential closed-end junior liens 210 10 Investor-owned residential real estate 74 3 Commercial Real Estate (2) Multifamily real estate 1,741 7 Commercial real estate, owner occupied 4,629 175 Commercial real estate, other 4,372 252 Commercial Non Real Estate (2) Commercial and industrial 697 1 Consumer Non Real Estate Automobile 4 --- Total $ 12,908 $ 476 (1) Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status. (2) Only classes with impaired loans are shown. For the Nine Months Ended September 30, 2015 Average Recorded Investment (1) Interest Income Recognized Co nsumer Real Estate (2) Residential closed-end first liens $ 685 $ 33 Residential closed-end junior liens 231 11 Investor-owned residential real estate 76 4 Commercial Real Estate (2) Multifamily real estate 2,670 --- Commercial real estate, owner occupied 5,302 86 Commercial real estate, other 5,924 128 Commercial Non Real Estate (2) Commercial and industrial 1,014 5 Total $ 15,902 $ 267 (1) Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status. (2) Only classes with impaired loans are shown. For the Year Ended December 31, 2015 Averag e Recorded Investment (1) Interest Income Recognized Real Estate Construction (2) Construction 1-4 family residential $ 612 $ 23 Consumer Real Estate (2) Residential closed-end first liens 681 43 Residential closed-end junior liens 228 15 Investor-owned residential real estate 76 5 Commercial Real Estate (2) Multifamily real estate 2,581 84 Commercial real estate, owner occupied 6,141 251 Commercial real estate, other 5,888 308 Commercial Non Real Estate (2) Commercial and industrial 1,090 40 Total $ 17,297 $ 769 (1) Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status. (2) Only classes with impaired loans are shown. The Company reviews nonaccrual loans on an individual loan basis to determine whether future payments are reasonably assured. To satisfy this criteria, the Company’s evaluation must determine that the underlying cause of the original delinquency or weakness that indicated nonaccrual status has been resolved, such as receipt of new guarantees, increased cash flows that cover the debt service or other resolution. Nonaccrual loans that demonstrate reasonable assurance of future payments and that have made at least six consecutive payments in accordance with repayment terms and timeframes may be returned to accrual status. A restructured loan that maintains current status for at least six months may be returned to accrual status. An analysis of past due and nonaccrual loans September 30, 2016 30 – 89 Days Past Due 90 or M ore Days Past Due 90 or More Days Past Due and Still Accruing Nonaccruals (Including Impaired Nonaccruals) Real Estate Construction (1) Construction residential $ --- $ --- $ --- $ 273 Consumer Real Estate (1) Equity lines 37 --- --- --- Residential closed-end first liens 801 181 137 44 Residential closed-end junior liens 117 37 37 --- Investor-owned residential real estate 239 --- --- 19 Commercial Real Estate (1) Multifamily real estate 318 1,459 --- 1,459 Commercial real estate, owner-occupied 127 455 --- 574 Commercial real estate, other --- --- --- 2,760 Commercial Non Real Estate (1) Commercial and industrial 66 335 --- 361 Consumer Non Real Estate (1) Credit cards 3 11 11 --- Automobile 225 6 6 3 Other consumer loans 74 4 4 --- Total $ 2,007 $ 2,488 $ 195 $ 5,493 (1) December 31, 2015 30 – 89 Days Past Due 90 or M ore Days Past Due 90 or More Days Past Due and Still Accruing Nonaccruals (Including Impaired Nonaccruals) Real Estate Construction Construction, residential $ --- $ --- $ --- $ 718 Construction, other 26 --- --- --- Consumer Real Estate Equity lines 16 --- --- --- Residential closed-end first liens 1,402 106 106 14 Residential closed-end junior liens 123 39 39 --- Investor-owned residential real estate 248 --- --- --- Commercial Real Estate Multifamily real estate 684 1,728 --- 1,728 Commercial real estate, owner occupied --- 357 --- 494 Commercial real estate, other --- --- --- 2,845 Commercial Non Real Estate Commercial and industrial 142 883 --- 883 Public Sector and IDA Public sector and IDA --- --- --- --- Consumer Non Real Estate Credit cards 5 6 6 --- Automobile 286 5 5 --- Other consumer loans 60 --- --- --- Total $ 2,992 $ 3,124 $ 156 $ 6,682 The estimate of credit risk for non-impaired loans is obtained by applying allocations for internal and external factors. The allocations are increased for loans that exhibit greater credit quality risk. Credit quality indicators, which the Company terms risk grades, are assigned through the Company’s credit review function for larger loans and selective review of loans that fall below credit review thresholds. Loans that do not indicate heightened risk are graded as “pass.” Loans that appear to have elevated credit risk because of frequent or persistent past due status, which is less than 75 days, or that show weakness in the borrower’s financial condition are risk graded “special mention.” Loans with frequent or persistent delinquency exceeding 75 days or that have a higher level of weakness in the borrower’s financial condition are graded “classified.” Classified loans have regulatory risk ratings of “substandard” and “doubtful.” Allowance for loan loss allocations are increased by 50% and by 100% for loans with grades of “special mention” and “classified,” respectively. Determination of risk grades was completed for the portfolio as of September 30, 2016 and December 31, 2015. The following displays collectively-evaluated loans by credit quality indicator. September 30, 2016 Pass Special Mention (Excluding Impaired) Classified (Excluding Impaired) Real Estate Construction Construction, 1-4 family residential $ 14,169 $ 3,580 $ --- Construction, other 22,168 --- --- Consumer Real Estate Equity lines 16,631 39 13 Closed-end first liens 82,284 1,061 1,114 Closed-end junior liens 5,006 16 56 Investor-owned residential real estate 43,271 29 743 Commercial Real Estate Multifamily residential real estate 98,654 458 1,287 Commercial real estate owner-occupied 115,544 1,230 384 Commercial real estate, other 99,028 56 --- Commercial Non Real Estate Commercial and industrial 39,177 1,550 546 Public Sector and IDA States and political subdivisions 45,957 --- --- Consumer Non Real Estate Credit cards 5,835 --- --- Automobile 14,251 104 168 Other consumer 12,641 58 19 Total $ 614,616 $ 8,181 $ 4,330 The following displays collectively-evaluated loans by credit quality indicator. December 31, 201 5 Pass Special Mention (Excluding Impaired) Classified (Excluding Impaired) Real Estate Construction Construction, 1-4 family residential $ 10,626 $ 3,694 $ --- Construction, other 33,213 --- --- Consumer Real Estate Equity lines 16,236 15 87 Closed-end first liens 78,614 708 1,370 Closed-end junior liens 4,983 55 61 Investor-owned residential real estate 39,616 31 766 Commercial Real Estate Multifamily residential real estate 77,060 --- 1,804 Commercial real estate owner-occupied 121,741 1,165 1,274 Commercial real estate, other 93,701 58 --- Commercial Non Real Estate Commercial and industrial 35,652 285 543 Public Sector and IDA States and political subdivisions 51,335 --- --- Consumer Non Real Estate Credit cards 5,773 --- --- Automobile 12,414 102 138 Other consumer 11,359 31 28 Total $ 592,323 $ 6,144 $ 6,071 Sales , Purchases and Reclassification of Loans The Company finances mortgages under “best efforts” contracts with mortgage purchasers. The mortgages are designated as held for sale upon initiation. There have been no reclassifications from portfolio loans to held for sale. There have been no loans held for sale transferred to portfolio loans. Occasionally, the Company purchases or sells participations in loans. All participation loans purchased met the Company’s normal underwriting standards at the time the participation was entered. Participation loans are included in the appropriate portfolio balances to which the allowance methodology is applied. Troubled Debt Restructurings From time to time the Company modifies loans in troubled debt restructurings. Total troubled debt restructurings amounted to $8,563 at September 30, 2016, $13,453 at December 31, 2015, and $11,861 at September 30, 2015. The following table presents restructurings by class that were identified during the three month period ended September 30, 2016. Restructurings That Occurred During the Three Months Ended September 30, 2016 Number of Contracts Pre-Modification Outstanding Principal Balance Post-Modification Outstanding Principal Balance Commercial Non R eal E state Commercial and industrial 1 $ 28 $ 30 Consumer Non Real Estate Automobile 1 5 5 Total 2 $ 33 $ 35 During the three month period ended September 30, 2016, the Company identified one commercial non-real estate loan and one automobile loan modified in troubled debt restructurings. The modifications provided payment relief by extending the maturity date and capitalizing interest. The loans are in nonaccrual status. The loans are collateral dependent and the fair value is measured using the collateral method. Impairment measurement did not result in a specific allocation for any of the four restructured loans. The Company did not modify any loans in troubled debt restructures during the three months ended September 30, 2015. The following tables present restructurings by class that occurred during the nine month periods ended September 30, 2016 and 2015. Restructurings That Occurred During the Nine Months Ended September 30, 2016 Number of Contracts Pre-Modification Outstanding Principal Balance Post-Modification Outstanding Principal Balance Commercial R eal E state Commercial real estate, other 2 $ 3,008 $ 3,008 Commercial Non Real Estate Commercial and industrial 1 28 30 Consumer Non Real Estate Automobile 1 5 5 Total 4 $ 3,041 $ 3,043 In addition to the loans identified as troubled debt restructures during the three month period ended September, 30, 2016, the Company identified two other loans as troubled debt restructures during the first six months of 2016. Two commercial real estate loans restructured during the second quarter of 2016 were originally modified in troubled debt restructurings in 2014 to provide payment relief by lowering the interest rate and allowing interest-only payments. The restructurings completed in 2016 lowered the interest rate from the 2014 restructured terms and returned the loans to amortization with payments of principal and interest. The loans were in nonaccrual status prior to the 2016 restructuring and will remain in nonaccrual until they have met the Company's policy to return to accrual status. The loans are collateral dependent and the fair value is measured using the collateral method. Impairment measurement did not result in a specific allocation. Restructurings That Occurred During the Nine Months Ended September 30, 2015 Number of Contracts Pre-Modification Outstanding Principal Balance Post-Modification Outstanding Principal Balance Commercial R eal E state Commercial real estate, owner occupied 1 $ 994 $ 907 Total 1 $ 994 $ 907 During the nine month period ended September 30, 2015, the Company restructured 1 loan to provide payment relief. The restructuring provided payment relief by forgiving principal of $100, capitalizing interest and re-amortizing payments. As of September 30, 2015, the restructured loan was in nonaccrual status. The fair value measurement of the restructured loan as of September 30, 2015 resulted in no specific allocation to the allowance for loan losses. The Company analyzed its TDR portfolio for loans that defaulted during the nine month periods ended September 30, 2016 and September 30, 2015, and that were modified within 12 months prior to default. The Company defines default as one or more payments that occur more than 90 days past the due date, charge-offs, or foreclosure after the date of restructuring. There were no restructured loans that defaulted that were modified within 12 months prior to default for the nine month periods ended September 30, 2016 and 2015. |