Loans | Loans The composition of the loan portfolio, by class of loan, as of December 31, 2018 and December 31, 2017 was as follows: 12/31/2018 12/31/2017 (In thousands) Loan Balance Accrued Interest Receivable Recorded Investment Loan Balance Accrued Interest Receivable Recorded Investment Commercial, financial and agricultural * $ 1,072,786 $ 4,603 $ 1,077,389 $ 1,053,453 $ 4,413 $ 1,057,866 Commercial real estate * 1,283,045 4,750 1,287,795 1,167,607 4,283 1,171,890 Construction real estate: Commercial 175,300 801 176,101 125,389 401 125,790 Mortgage 70,541 151 70,692 52,203 133 52,336 Installment 2,433 7 2,440 3,878 13 3,891 Residential real estate: Commercial 429,730 1,150 430,880 393,094 1,029 394,123 Mortgage 1,134,278 1,227 1,135,505 1,110,426 1,516 1,111,942 HELOC 215,283 1,159 216,442 203,178 974 204,152 Installment 14,327 36 14,363 18,526 53 18,579 Consumer 1,292,136 3,756 1,295,892 1,241,736 3,808 1,245,544 Leases 2,273 26 2,299 2,993 36 3,029 Total loans $ 5,692,132 $ 17,666 $ 5,709,798 $ 5,372,483 $ 16,659 $ 5,389,142 * Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class. Loans are shown net of deferred origination fees, costs and unearned income of $12.5 million at December 31, 2018 and of $12.2 million at December 31, 2017 , which represented a net deferred income position in both years. At December 31, 2018 , loans included a purchase accounting adjustment of $4.4 million , which represented a net deferred income position. This fair market value adjustment is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans. Overdrawn deposit accounts of $2.3 million and $1.9 million had been reclassified to loans at December 31, 2018 and 2017 , respectively, and are included in the commercial, financial and agricultural loan class above. Credit Quality The following table presents the recorded investment in nonaccrual loans, accruing TDRs, and loans past due 90 days or more and still accruing by class of loan as of December 31, 2018 and December 31, 2017 : 12/31/2018 (In thousands) Nonaccrual Loans Accruing TDRs Loans Past Due 90 Days or More and Accruing Total Nonperforming Loans Commercial, financial and agricultural $ 14,998 $ 196 $ 10 $ 15,204 Commercial real estate 25,566 2,860 — 28,426 Construction real estate: Commercial 1,866 — — 1,866 Mortgage — 15 20 35 Installment 19 9 — 28 Residential real estate: Commercial 2,610 122 — 2,732 Mortgage 16,892 9,100 1,124 27,116 HELOC 2,158 1,028 9 3,195 Installment 468 1,049 24 1,541 Consumer 3,377 843 1,115 5,335 Total loans $ 67,954 $ 15,222 $ 2,302 $ 85,478 12/31/2017 (In thousands) Nonaccrual Loans Accruing TDRs Loans Past Due 90 Days or More and Accruing Total Nonperforming Loans Commercial, financial and agricultural $ 16,773 $ 1,291 $ — $ 18,064 Commercial real estate 12,979 5,163 — 18,142 Construction real estate: Commercial 986 338 — 1,324 Mortgage 8 92 — 100 Installment 52 — — 52 Residential real estate: Commercial 18,835 224 — 19,059 Mortgage 16,841 10,766 568 28,175 HELOC 1,593 1,025 14 2,632 Installment 586 616 7 1,209 Consumer 3,403 662 1,256 5,321 Total loans $ 72,056 $ 20,177 $ 1,845 $ 94,078 The following table provides additional information regarding those nonaccrual and accruing TDR loans that are individually evaluated for impairment and those collectively evaluated for impairment as of December 31, 2018 and December 31, 2017 . 12/31/2018 12/31/2017 (In thousands) Nonaccrual and accruing TDRs Loans individually evaluated for impairment Loans collectively evaluated for impairment Nonaccrual and accruing TDRs Loans individually evaluated for impairment Loans collectively evaluated for impairment Commercial, financial and agricultural $ 15,194 $ 15,120 $ 74 $ 18,064 $ 18,039 $ 25 Commercial real estate 28,426 28,426 — 18,142 18,142 — Construction real estate: Commercial 1,866 1,866 — 1,324 1,324 — Mortgage 15 — 15 100 — 100 Installment 28 — 28 52 — 52 Residential real estate: Commercial 2,732 2,732 — 19,059 19,059 — Mortgage 25,992 — 25,992 27,607 — 27,607 HELOC 3,186 — 3,186 2,618 — 2,618 Installment 1,517 — 1,517 1,202 — 1,202 Consumer 4,220 — 4,220 4,065 — 4,065 Total loans $ 83,176 $ 48,144 $ 35,032 $ 92,233 $ 56,564 $ 35,669 All of the loans individually evaluated for impairment were evaluated using the fair value of the collateral or the present value of expected future cash flows as the measurement method. The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2018 and December 31, 2017 . 12/31/2018 12/31/2017 (In thousands) Unpaid principal balance Recorded investment Allowance for loan losses allocated Unpaid principal balance Recorded investment Allowance for loan losses allocated With no related allowance recorded Commercial, financial and agricultural $ 8,999 $ 3,713 $ — $ 19,899 $ 14,704 $ — Commercial real estate 26,663 26,213 — 18,974 18,060 — Construction real estate: Commercial 4,679 1,866 — 2,788 1,324 — Residential real estate: Commercial 2,691 2,374 — 19,346 19,012 — With an allowance recorded Commercial, financial and agricultural 13,736 11,407 2,169 5,394 3,335 681 Commercial real estate 2,255 2,213 86 137 82 2 Construction real estate: Commercial — — — — — — Residential real estate: Commercial 358 358 18 47 47 1 Total $ 59,381 $ 48,144 $ 2,273 $ 66,585 $ 56,564 $ 684 Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. At December 31, 2018 and December 31, 2017 , there were $8.8 million and $7.9 million , respectively, of partial charge-offs on loans individually evaluated for impairment with no related allowance recorded and $2.4 million and $2.1 million , respectively, of partial charge-offs on loans individually evaluated for impairment that also had a specific reserve allocated. The allowance for loan losses included specific reserves related to loans individually evaluated for impairment at December 31, 2018 and 2017 , of $2.3 million and $0.7 million , respectively. These loans with specific reserves had a recorded investment of $14.0 million and $3.5 million as of December 31, 2018 and 2017 , respectively. Interest income on nonaccrual loans individually evaluated for impairment is recognized on a cash basis only when Park expects to receive the entire recorded investment of the loan. Interest income on accruing TDRs individually evaluated for impairment continues to be recorded on an accrual basis. The following tables present the average recorded investment and interest income recognized subsequent to impairment on loans individually evaluated for impairment as of and for the years ended December 31, 2018 , 2017 , and 2016 : Year ended December 31, 2018 (In thousands) Recorded Investment as of December 31, 2018 Average recorded investment Interest income recognized Commercial, financial and agricultural $ 15,120 $ 21,000 $ 695 Commercial real estate 28,426 23,024 1,047 Construction real estate: Commercial 1,866 1,709 34 Residential real estate: Commercial 2,732 5,308 114 Consumer — — — Total $ 48,144 $ 51,041 $ 1,890 Year ended December 31, 2017 (In thousands) Recorded Investment as of December 31, 2017 Average recorded investment Interest income recognized Commercial, financial and agricultural $ 18,039 $ 23,154 $ 963 Commercial real estate 18,142 21,692 903 Construction real estate: Commercial 1,324 1,729 64 Residential real estate: Commercial 19,059 20,490 778 Consumer — 5 — Total $ 56,564 $ 67,070 $ 2,708 Year ended December 31, 2016 (In thousands) Recorded Investment as of December 31, 2016 Average recorded investment Interest income recognized Commercial, financial and agricultural $ 20,624 $ 26,821 $ 885 Commercial real estate 24,474 22,828 884 Construction real estate: Commercial 2,226 5,503 66 Residential real estate: Commercial 23,102 24,341 2,942 Consumer — 3 — Total $ 70,426 $ 79,496 $ 4,777 The following tables present the aging of the recorded investment in past due loans as of December 31, 2018 and December 31, 2017 by class of loan. 12/31/2018 (In thousands) Accruing loans past due 30-89 days Past due, nonaccrual loans and loans past due 90 days or more and accruing (1) Total past due Total current (2) Total recorded investment Commercial, financial and agricultural $ 4,786 $ 1,375 $ 6,161 $ 1,071,228 $ 1,077,389 Commercial real estate 780 3,584 4,364 1,283,431 1,287,795 Construction real estate: Commercial — 1,635 1,635 174,466 176,101 Mortgage 133 20 153 70,539 70,692 Installment 28 19 47 2,393 2,440 Residential real estate: Commercial 683 1,104 1,787 429,093 430,880 Mortgage 13,210 8,553 21,763 1,113,742 1,135,505 HELOC 620 907 1,527 214,915 216,442 Installment 155 274 429 13,934 14,363 Consumer 9,524 2,131 11,655 1,284,237 1,295,892 Leases — — — 2,299 2,299 Total loans $ 29,919 $ 19,602 $ 49,521 $ 5,660,277 $ 5,709,798 (1) Includes an aggregate of $2.3 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans. (2) Includes an aggregate of $50.7 million of nonaccrual loans which are current in regards to contractual principal and interest payments. 12/31/2017 (In thousands) Accruing loans past due 30-89 days Past due, nonaccrual loans and loans past due 90 days or more and accruing (1) Total past due Total current (2) Total recorded investment Commercial, financial and agricultural $ 145 $ 1,043 $ 1,188 $ 1,056,678 $ 1,057,866 Commercial real estate 856 2,360 3,216 1,168,674 1,171,890 Construction real estate: Commercial 29 — 29 125,761 125,790 Mortgage 256 — 256 52,080 52,336 Installment 54 19 73 3,818 3,891 Residential real estate: Commercial 16 1,586 1,602 392,521 394,123 Mortgage 11,515 9,232 20,747 1,091,195 1,111,942 HELOC 616 876 1,492 202,660 204,152 Installment 239 253 492 18,087 18,579 Consumer 11,515 2,407 13,922 1,231,622 1,245,544 Leases — — — 3,029 3,029 Total loans $ 25,241 $ 17,776 $ 43,017 $ 5,346,125 $ 5,389,142 (1) Includes an aggregate of $1.8 million of loans past due 90 days or more and accruing. The remaining are past due, nonaccrual loans. (2) Includes an aggregate of $56.1 million of nonaccrual loans which are current in regards to contractual principal and interest payments. Credit Quality Indicators Management utilizes past due information as a credit quality indicator across the loan portfolio. Past due information as of December 31, 2018 and 2017 is included in the tables above. The past due information is the primary credit quality indicator within the following classes of loans: (1) mortgage loans and installment loans in the construction real estate segment; (2) mortgage loans, HELOC and installment loans in the residential real estate segment; and (3) consumer loans. The primary credit indicator for commercial loans is based on an internal grading system that grades all commercial loans on a scale from 1 to 8. Credit grades are continuously monitored by the responsible loan officer and adjustments are made when appropriate. A grade of 1 indicates little or no credit risk and a grade of 8 is considered a loss. Commercial loans that are pass-rated (graded a 1 through a 4) are considered to be of acceptable credit risk. Commercial loans graded a 5 (special mention) are considered to be watch list credits and a higher loan loss reserve percentage is allocated to these loans. Loans classified as special mention have potential weaknesses that require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of Park’s credit position at some future date. Commercial loans graded a 6 (substandard), also considered watch list credits, are considered to represent higher credit risk and, as a result, a higher loan loss reserve percentage is allocated to these loans. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or the value of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Park will sustain some loss if the deficiencies are not corrected. Commercial loans graded a 7 (doubtful) are shown as nonaccrual and Park generally charges these loans down to their fair value by taking a partial charge-off or recording a specific reserve. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Certain 6-rated loans and all 7-rated loans are placed on nonaccrual status and included within the impaired category. A loan is deemed impaired when management determines the borrower's ability to perform in accordance with the contractual loan agreement is in doubt. Any commercial loan graded an 8 (loss) is completely charged off. The tables below present the recorded investment by loan grade at December 31, 2018 and December 31, 2017 for all commercial loans: 12/31/2018 (In thousands) 5 Rated 6 Rated Nonaccrual and Accruing TDRs Purchased Credit Impaired (1) Pass-Rated Recorded Investment Commercial, financial and agricultural* $ 11,509 $ 444 $ 15,194 $ 148 $ 1,050,094 $ 1,077,389 Commercial real estate* 2,707 — 28,426 3,059 1,253,603 $ 1,287,795 Construction real estate: Commercial 1,560 — 1,866 503 172,172 $ 176,101 Residential real estate: Commercial 272 41 2,732 251 427,584 $ 430,880 Leases — — — — 2,299 $ 2,299 Total Commercial Loans $ 16,048 $ 485 $ 48,218 $ 3,961 $ 2,905,752 $ 2,974,464 * Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class. (1) Excludes loans acquired with deteriorated credit quality which are nonaccrual or TDRs due to additional credit deterioration or modification post acquisition. These loans had a recorded investment of $475,000 at December 31, 2018 . 12/31/2017 (In thousands) 5 Rated 6 Rated Nonaccrual and Accruing TDRs Purchased Credit Impaired Pass Rated Recorded Investment Commercial, financial and agricultural* $ 17,272 $ 153 $ 18,064 $ — $ 1,022,377 $ 1,057,866 Commercial real estate* 5,322 457 18,142 — 1,147,969 1,171,890 Construction real estate: Commercial 278 — 1,324 — 124,188 125,790 Residential real estate: Commercial 216 1 19,059 — 374,847 394,123 Leases — — — — 3,029 3,029 Total Commercial Loans $ 23,088 $ 611 $ 56,589 $ — $ 2,672,410 $ 2,752,698 * Included within commercial, financial and agricultural loans and commercial real estate loans is an immaterial amount of consumer loans that were not broken out by class. Purchased Credit Impaired ("PCI") Loans In conjunction with the NewDominion acquisition, Park acquired loans with a book value of $277.9 million as of July 1, 2018. These loans were recorded at the initial fair value of $272.8 million . Loans acquired with deteriorated credit quality with a book value of $5.1 million were recorded at the initial fair value of $4.9 million . The carrying amount of loans acquired with deteriorated credit quality at December 31, 2018 was $4.4 million , while the outstanding customer balance was $4.6 million . At December 31, 2018 , no allowance for loan losses had been recognized related to the acquired impaired loans. The following table provides changes in accretable discount for loans acquired with deteriorated credit quality: For the Year Ended (in thousands) December 31, 2018 December 31, 2017 Balance at the beginning of the period $ — $ — Acquisitions 176 — Reductions due to change in projected cash flows — — Reclass from non-accretable difference — — Transfers out 16 — Accretion 16 — Balance at end of period $ 144 $ — TDRs Management classifies loans as TDRs when a borrower is experiencing financial difficulties and Park has granted a concession to the borrower as part of a modification or in the loan renewal process. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of the borrower's debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy. Management’s policy is to modify loans by extending the term or by granting a temporary or permanent contractual interest rate below the market rate, not by forgiving debt. A court's discharge of a borrower's debt in a Chapter 7 bankruptcy is considered a concession when the borrower does not reaffirm the discharged debt. Certain loans which were modified during the years ended December 31, 2018 and December 31, 2017 did not meet the definition of a TDR as the modification was a delay in a payment that was considered to be insignificant. Management considers a forbearance period of up to three months or a delay in payment of up to 30 days to be insignificant. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. Management reviews all accruing TDRs quarterly to ensure payments continue to be made in accordance with the modified terms. Quarterly, management reviews renewals/modifications of loans previously identified as TDRs to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification does not contain a concessionary interest rate or other concessionary terms and the terms of the renewal/modification are considered to be market terms based on the current risk characteristics of the borrower, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed as the borrower has complied with the terms of the loan at the date of the renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. The majority of these TDRs were originally considered restructurings in a prior year as a result of a renewal/modification with an interest rate that was not commensurate with the risk of the underlying loan at the time of the renewal/modification. During the years ended December 31, 2018 and 2017 , Park removed the TDR classification on $2.4 million and $0.5 million , respectively, of loans that met the requirements discussed above. At December 31, 2018 and 2017 , there were $24.6 million and $38.5 million , respectively, of TDRs included in the nonaccrual loan totals. At December 31, 2018 and 2017 , $19.2 million and $32.4 million , respectively, of these nonaccrual TDRs were performing in accordance with the terms of the restructured note. As of December 31, 2018 and 2017 , loans with a recorded investment of $15.2 million and $20.2 million , respectively, were included in accruing TDR loan totals. Management will continue to review the restructured loans and may determine it appropriate to move certain nonaccrual TDRs to accrual status in the future. At December 31, 2018 and 2017 , Park had commitments to lend $0.3 million and $1.3 million , respectively, of additional funds to borrowers whose outstanding loan terms had been modified in a TDR. The specific reserve related to TDRs at December 31, 2018 and 2017 was $1.2 million and $0.5 million , respectively. Modifications made in 2017 and 2018 were largely the result of renewals and extending the maturity date of the loan, at terms consistent with the original note. These modifications were deemed to be TDRs primarily due to Park’s conclusion that the borrower would likely not have qualified for similar terms through another lender. Many of the modifications deemed to be TDRs were previously identified as impaired loans, and thus were also previously evaluated for impairment under ASC 310. Additional specific reserves of $0.2 million were recorded during the year ended December 31, 2018 , as a result of TDRs identified in the 2018 year. Additional specific reserves of $0.3 million were recorded during the year ended December 31, 2017 as a result of TDRs identified in the 2017 year. Additional specific reserves of $1.0 million were recorded during the year ended December 31, 2016 as a result of TDRs identified in the 2016 year. The terms of certain other loans were modified during the years ended December 31, 2018 and 2017 that did not meet the definition of a TDR. Substandard commercial loans modified during the years ended December 31, 2018 and 2017 which did not meet the definition of a TDR had a total recorded investment of $368,000 and $106,000 , respectively. The renewal/modification of these loans: (1) resulted in a delay in a payment that was considered to be insignificant, or (2) resulted in Park obtaining additional collateral or guarantees that improved the likelihood of the ultimate collection of the loan such that the modification was deemed to be at market terms. Consumer loans modified during 2018 which did not meet the definition of a TDR had a total recorded investment as of December 31, 2018 of $20.9 million . Consumer loans modified during 2017 which did not meet the definition of a TDR had a total recorded investment as of December 31, 2017 of $8.9 million . Many of these loans were to borrowers who were not experiencing financial difficulties but who were looking to reduce their cost of funds. The following tables detail the number of contracts modified as TDRs during the years ended December 31, 2018 , 2017 and 2016 as well as the recorded investment of these contracts at December 31, 2018 , 2017 , and 2016 . The recorded investment pre- and post-modification is generally the same due to the fact that Park does not typically forgive principal. Year ended December 31, 2018 (In thousands) Number of Contracts Accruing Nonaccrual Recorded Investment Commercial, financial and agricultural 21 $ 28 $ 829 $ 857 Commercial real estate 17 414 3,172 3,586 Construction real estate: Commercial 1 — — — Mortgage — — — — Installment 2 10 — 10 Residential real estate: Commercial 3 54 363 417 Mortgage 25 842 854 1,696 HELOC 21 558 86 644 Installment 19 459 69 528 Consumer 283 204 1,249 1,453 Total loans 392 $ 2,569 $ 6,622 $ 9,191 Year ended December 31, 2017 (In thousands) Number of Contracts Accruing Nonaccrual Recorded Investment Commercial, financial and agricultural 29 $ 945 $ 2,770 $ 3,715 Commercial real estate 9 1,050 313 1,363 Construction real estate: Commercial — — — — Mortgage 1 — 8 8 Installment — — — — Residential real estate: Commercial 15 144 486 630 Mortgage 33 888 1,359 2,247 HELOC 19 474 102 576 Installment 11 251 43 294 Consumer 309 171 1,121 1,292 Total loans 426 $ 3,923 $ 6,202 $ 10,125 Year ended December 31, 2016 (In thousands) Number of Contracts Accruing Nonaccrual Recorded Investment Commercial, financial and agricultural 32 $ 191 $ 8,450 $ 8,641 Commercial real estate 14 3,844 2,537 6,381 Construction real estate: Commercial 2 — 1,143 1,143 Mortgage — — — — Installment 1 — — — Residential real estate: Commercial 11 89 1,033 1,122 Mortgage 34 114 2,292 2,406 HELOC 13 104 178 282 Installment 5 102 3 105 Consumer 293 184 994 1,178 Total loans 405 $ 4,628 $ 16,630 $ 21,258 Of those loans which were modified and determined to be a TDR during the year ended December 31, 2018 , $0.5 million were on nonaccrual status as of December 31, 2017 . Of those loans which were modified and determined to be a TDR during the year ended December 31, 2017 , $1.8 million were on nonaccrual status as of December 31, 2016 . Of those loans which were modified and determined to be a TDR during the year ended December 31, 2016 , $9.4 million were on nonaccrual status as of December 31, 2015 . The following table presents the recorded investment in financing receivables which were modified as TDRs within the previous 12 months and for which there was a payment default during the year ended December 31, 2018 , December 31, 2017 , and December 31, 2016 . For this table, a loan is considered to be in default when it becomes 30 days contractually past due under the modified terms. The additional allowance for loan loss resulting from the defaults on TDR loans was immaterial. Year ended December 31, 2018 Year ended Year ended (In thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Commercial, financial and agricultural 3 $ 104 — $ — 7 $ 419 Commercial real estate — — 2 82 5 843 Construction real estate: Commercial — — — — — — Mortgage — — — — — — Installment — — — — — — Residential real estate: Commercial — — 2 117 7 848 Mortgage 8 518 6 467 15 1,201 HELOC 2 32 4 194 — — Installment 1 29 — — 1 3 Consumer 59 636 50 375 62 484 Leases — — — — — — Total loans 73 $ 1,319 $ 64 $ 1,235 97 $ 3,798 Of the $1.3 million in modified TDRs which defaulted during the year ended December 31, 2018 , $86,000 were accruing loans and $1.2 million were nonaccrual loans. Of the $1.2 million in modified TDRs which defaulted during the year ended December 31, 2017 , $180,000 were accruing loans and $1.1 million were nonaccrual loans. Of the $3.8 million in modified TDRs which defaulted during the year ended December 31, 2016 , $111,000 were accruing loans and $3.7 million were nonaccrual loans. Certain of the Corporation’s executive officers, directors and related entities of directors are loan customers of PNB. As of December 31, 2018 and 2017 , credit exposure aggregating approximately $35.9 million and $42.1 million , respectively, was outstanding to such parties. Of this total exposure, approximately $25.9 million and $31.1 million was outstanding at December 31, 2018 and 2017 , respectively, with the remaining balance representing available credit. During 2018 , new loans and advances on existing loans were made to these executive officers, directors and related entities of directors totaling $1.4 million and $4.9 million , respectively. These extensions of credit were offset by principal payments of $11.5 million . During 2017 , new loans and advances on existing loans were $1.6 million and $11.4 million , respectively. These extensions of credit were offset by principal payments of $11.4 million . |