| LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio is grouped into classes to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Consistent with ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, the segments are further broken down into classes to allow for differing risk characteristics within a segment. The risks associated with lending activities differ among the various loan classes and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact both the borrower’s ability to repay its loans and associated collateral. The Company has various types of commercial real estate loans, which have differing levels of credit risk. Owner occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner occupied loans mentioned above. Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including, if any, the guarantors of the project or other collateral securing the loan. Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest-rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the creditworthiness of the borrower and, to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility. The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the creditworthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance. Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to-value ratios of no greater than 90% of the value of the real estate taken as collateral. The creditworthiness of the borrower is considered including credit scores and debt-to-income ratios. Installment and other loans’ credit risk are mitigated through prudent underwriting standards, including evaluation of the creditworthiness of the borrower through credit scores and debt-to-income ratios and, if secured, the collateral value of the assets. These loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, and may present a greater risk to the Company than 1-4 family residential loans. The following table presents the loan portfolio by segment and class, excluding residential mortgage LHFS, at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Commercial real estate: Owner occupied $ 168,586 $ 170,884 Non-owner occupied 377,933 361,050 Multi-family 107,797 106,893 Non-owner occupied residential 118,773 120,038 Acquisition and development: 1-4 family residential construction 13,037 15,865 Commercial and land development 49,348 41,538 Commercial and industrial 235,791 214,554 Municipal 46,551 47,057 Residential mortgage: First lien 324,766 336,372 Home equity - term 13,337 14,030 Home equity - lines of credit 165,375 165,314 Installment and other loans 35,654 50,735 Total Loans $ 1,656,948 $ 1,644,330 In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including "Special Mention," "Substandard," "Doubtful" or "Loss." The Special Mention category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank's position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. Substandard loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as Loss is deferred. Loss loans are considered uncollectible, as the borrowers are often in bankruptcy, have suspended debt repayments, or have ceased business operations. Once a loan is classified as Loss, there is little prospect of collecting the loan’s principal or interest and it is charged-off. The Company has a loan review policy and program which is designed to identify and monitor risk in the lending function. The Management ERM Committee, comprised of executive officers and loan department personnel, is charged with the oversight of overall credit quality and risk exposure of the Company's loan portfolio. This includes the monitoring of the lending activities of all Company personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. A loan review program provides the Company with an independent review of the commercial loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event. Internal loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $500 thousand, which includes confirmation of risk rating by an independent credit officer. In addition, all commercial relationships greater than $500 thousand rated Substandard, Doubtful or Loss are reviewed quarterly and corresponding risk ratings are reaffirmed by the Company's Problem Loan Committee, with subsequent reporting to the Management ERM Committee and the Board of Directors. The following table summarizes the Company’s loan portfolio ratings based on its internal risk rating system at March 31, 2020 and December 31, 2019: Pass Special Mention Non-Impaired Substandard Impaired - Substandard Doubtful PCI Loans Total March 31, 2020 Commercial real estate: Owner occupied $ 152,679 $ 4,538 $ 3,013 $ 3,487 $ — $ 4,869 $ 168,586 Non-owner occupied 361,029 15,996 — — — 908 377,933 Multi-family 102,838 3,951 672 336 — — 107,797 Non-owner occupied residential 111,102 4,374 1,380 340 — 1,577 118,773 Acquisition and development: 1-4 family residential construction 12,523 514 — — — — 13,037 Commercial and land development 47,762 200 549 837 — — 49,348 Commercial and industrial 222,152 967 8,108 840 — 3,724 235,791 Municipal 42,221 4,330 — — — — 46,551 Residential mortgage: First lien 316,296 — — 2,188 — 6,282 324,766 Home equity - term 13,233 72 — 12 — 20 13,337 Home equity - lines of credit 164,549 73 36 717 — — 165,375 Installment and other loans 35,540 — — 20 — 94 35,654 $ 1,581,924 $ 35,015 $ 13,758 $ 8,777 $ — $ 17,474 $ 1,656,948 December 31, 2019 Commercial real estate: Owner occupied $ 151,161 $ 4,513 $ 3,163 $ 5,872 $ — $ 6,175 $ 170,884 Non-owner occupied 342,753 17,152 — — — 1,145 361,050 Multi-family 100,361 4,822 682 345 — 683 106,893 Non-owner occupied residential 111,697 4,534 1,115 235 — 2,457 120,038 Acquisition and development: 1-4 family residential construction 15,865 — — — — — 15,865 Commercial and land development 39,939 206 1,393 — — — 41,538 Commercial and industrial 198,951 1,133 8,899 1,763 — 3,808 214,554 Municipal 42,649 4,408 — — — — 47,057 Residential mortgage: First lien 323,040 978 — 2,590 — 9,764 336,372 Home equity - term 13,774 74 149 13 — 20 14,030 Home equity - lines of credit 164,469 74 38 733 — — 165,314 Installment and other loans 50,497 — — 85 — 153 50,735 $ 1,555,156 $ 37,894 $ 15,439 $ 11,636 $ — $ 24,205 $ 1,644,330 For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios and any TDRs are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. Updated fair values are incorporated into the impairment analysis in the next reporting period. Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value, the loan has been identified as uncollectible, and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two, and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant. At March 31, 2020 and December 31, 2019, nearly all of the Company’s loan impairments were measured based on the estimated fair value of the collateral securing the loan, except for TDRs. By definition, TDRs are considered impaired. All TDR impairment analyses are initially based on discounted cash flows for those loans. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it could also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral. Updated appraisals are generally required every 18 months for classified commercial loans in excess of $250 thousand. The “as is" value provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances, dictate that another value than that provided by the appraiser is more appropriate. Generally, impaired commercial loans secured by real estate, other than performing TDRs, are measured at fair value using certified real estate appraisals that had been completed within the last 18 months. Appraised values are discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on either an existing appraisal or a discounted cash flow analysis as determined by management. The approaches are discussed below: • Existing appraisal – if the existing appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the existing certified appraised value may be used. Discounts to the appraised value, as deemed appropriate for selling costs, are factored into the fair value. • Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches. Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable aging or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies. The Company distinguishes substandard loans on both an impaired and non-impaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. A substandard classification does not automatically meet the definition of impaired. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual extensions of credit classified as substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and development, and commercial and industrial loans rated substandard to be collectively evaluated for impairment. Although the Company believes these loans meet the definition of substandard, they are generally performing and management has concluded that it is likely the Company will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Larger groups of smaller balance homogeneous loans are collectively evaluated for impairment. Generally, the Company does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The following table, which excludes PCI loans, summarizes impaired loans by segment and class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at March 31, 2020 and December 31, 2019. The recorded investment in loans excludes accrued interest receivable due to insignificance. Related allowances established generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and any partial charge-off will be recorded when final information is received. Impaired Loans with a Specific Allowance Impaired Loans with No Specific Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) Related Allowance Recorded Investment (Book Balance) Unpaid Principal Balance (Legal Balance) March 31, 2020 Commercial real estate: Owner-occupied $ — $ — $ — $ 3,487 $ 4,246 Multi-family — — — 336 565 Non-owner occupied residential — — — 340 537 Acquisition and development: Commercial and land development — — — 837 875 Commercial and industrial — — — 840 2,159 Residential mortgage: First lien 724 724 37 1,464 2,777 Home equity—term — — — 12 14 Home equity—lines of credit — — — 717 1,028 Installment and other loans — — — 20 30 $ 724 $ 724 $ 37 $ 8,053 $ 12,231 December 31, 2019 Commercial real estate: Owner-occupied $ — $ — $ — $ 5,872 $ 8,086 Multi-family — — — 345 569 Non-owner occupied residential — — — 235 422 Commercial and industrial — — — 1,763 3,361 Residential mortgage: First lien 425 425 36 2,165 3,164 Home equity—term — — — 13 15 Home equity—lines of credit — — — 733 1,077 Installment and other loans — — — 85 97 $ 425 $ 425 $ 36 $ 11,211 $ 16,791 The following table, which excludes PCI loans, summarizes the average recorded investment in impaired loans and related recognized interest income for the three months ended March 31, 2020 and 2019: 2020 2019 Average Interest Average Interest Three Months Ended March 31, Commercial real estate: Owner occupied $ 5,234 $ 1 $ 1,863 $ — Non-owner occupied — — — — Multi-family 341 — 127 — Non-owner occupied residential 257 — 301 — Acquisition and development: 1-4 family residential construction — — — — Commercial and land development 209 — — — Commercial and industrial 1,313 — 277 — Residential mortgage: First lien 2,400 12 2,788 15 Home equity - term 12 — 15 — Home equity - lines of credit 726 — 758 — Installment and other loans 46 — 7 — $ 10,538 $ 13 $ 6,136 $ 15 The following table presents impaired loans that are TDRs, with the recorded investment at March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Number of Recorded Number of Recorded Accruing: Commercial real estate: Owner occupied 1 $ 29 1 $ 30 Residential mortgage: First lien 9 925 9 931 Home equity - lines of credit 1 17 1 18 11 971 11 979 Nonaccruing: Commercial real estate: Owner occupied 2 218 4 1,909 Residential mortgage: First lien 5 350 5 359 7 568 9 2,268 18 $ 1,539 20 $ 3,247 There were zero new TDR's for the three months ended March 31, 2020 and 2019. Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loan portfolio summarized by aging categories of performing loans and nonaccrual loans at March 31, 2020 and December 31, 2019: Days Past Due Current 30-59 60-89 90+ Total Non- Total March 31, 2020 Commercial real estate: Owner occupied $ 156,194 $ 4,065 $ — $ — $ 4,065 $ 3,458 $ 163,717 Non-owner occupied 377,025 — — — — — 377,025 Multi-family 107,180 281 — — 281 336 107,797 Non-owner occupied residential 116,222 634 — — 634 340 117,196 Acquisition and development: 1-4 family residential construction 12,780 257 — — 257 — 13,037 Commercial and land development 48,495 16 — — 16 837 49,348 Commercial and industrial 230,859 367 — 1 368 840 232,067 Municipal 46,551 — — — — — 46,551 Residential mortgage: First lien 305,689 10,705 621 206 11,532 1,263 318,484 Home equity - term 13,302 3 — — 3 12 13,317 Home equity - lines of credit 164,049 475 151 — 626 700 165,375 Installment and other loans 35,235 260 45 — 305 20 35,560 Subtotal 1,613,581 17,063 817 207 18,087 7,806 1,639,474 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 3,199 1,545 — 125 1,670 — 4,869 Non-owner occupied 338 — — 570 570 — 908 Non-owner occupied residential 1,296 1 — 280 281 — 1,577 Commercial and industrial 3,708 — — 16 16 — 3,724 Residential mortgage: First lien 3,551 1,814 — 917 2,731 — 6,282 Home equity - term 16 4 — — 4 — 20 Installment and other loans 67 10 17 — 27 — 94 Subtotal 12,175 3,374 17 1,908 5,299 — 17,474 $ 1,625,756 $ 20,437 $ 834 $ 2,115 $ 23,386 $ 7,806 $ 1,656,948 Days Past Due Current 30-59 60-89 90+ Total Non- Total December 31, 2019 Commercial real estate: Owner occupied $ 158,723 $ 144 $ — $ — $ 144 $ 5,842 $ 164,709 Non-owner occupied 359,425 480 — — 480 — 359,905 Multi-family 105,865 — — — — 345 106,210 Non-owner occupied residential 116,370 841 66 69 976 235 117,581 Acquisition and development: 1-4 family residential construction 15,587 278 — — 278 — 15,865 Commercial and land development 40,403 1,135 — — 1,135 — 41,538 Commercial and industrial 208,668 315 — — 315 1,763 210,746 Municipal 47,057 — — — — — 47,057 Residential mortgage: First lien 314,473 9,092 1,234 150 10,476 1,659 326,608 Home equity - term 13,993 — 4 — 4 13 14,010 Home equity - lines of credit 163,907 417 275 — 692 715 165,314 Installment and other loans 50,224 236 37 — 273 85 50,582 Subtotal 1,594,695 12,938 1,616 219 14,773 10,657 1,620,125 Loans acquired with credit deterioration: Commercial real estate: Owner occupied 6,015 — 129 31 160 — 6,175 Non-owner occupied 564 — — 581 581 — 1,145 Multi-family 683 — — — — — 683 Non-owner occupied residential 1,710 105 111 531 747 — 2,457 Commercial and industrial 3,792 — — 16 16 — 3,808 Residential mortgage: First lien 6,308 1,857 745 854 3,456 — 9,764 Home equity - term 16 4 — — 4 — 20 Installment and other loans 131 22 — — 22 — 153 Subtotal 19,219 1,988 985 2,013 4,986 — 24,205 $ 1,613,914 $ 14,926 $ 2,601 $ 2,232 $ 19,759 $ 10,657 $ 1,644,330 The Company maintains its ALL at a level management believes adequate for probable incurred credit losses. The ALL is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the ALL utilizing a defined methodology which considers specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes its approach properly addresses relevant accounting guidance for loans individually identified as impaired and for loans collectively evaluated for impairment, and other bank regulatory guidance. In connection with its quarterly evaluation of the adequacy of the ALL, management reviews its methodology to determine if it properly addresses the current risk in the loan portfolio. For each loan class, general allowances based on quantitative factors, principally historical loss trends, are provided for loans that are collectively evaluated for impairment. An adjustment to historical loss factors may be incorporated for delinquency and other potential risk not elsewhere defined within the ALL methodology. In addition to this quantitative analysis, adjustments to the ALL requirements are allocated on loans collectively evaluated for impairment based on additional qualitative factors, including: Nature and Volume of Loans – including loan growth in the current and subsequent quarters based on the Company’s targeted growth and strategic plan, coupled with the types of loans booked based on risk management and credit culture; the number of exceptions to loan policy; and supervisory loan to value exceptions. Concentrations of Credit and Changes within Credit Concentrations – including the composition of the Company’s overall portfolio makeup and management's evaluation related to concentration risk management and the inherent risk associated with the concentrations identified. Underwriting Standards and Recovery Practices – including changes to underwriting standards and perceived impact on anticipated losses; trends in the number of exceptions to loan policy; supervisory loan to value exceptions; and administration of loan recovery practices. Delinquency Trends – including delinquency percentages noted in the portfolio relative to economic conditions; severity of the delinquencies; and whether the ratios are trending upwards or downwards. Classified Loans Trends – including internal loan ratings of the portfolio; severity of the ratings; whether the loan segment’s ratings show a more favorable or less favorable trend; and underlying market conditions and impact on the collateral values securing the loans. Experience, Ability and Depth of Management/Lending staff – including the years’ experience of senior and middle management and the lending staff; turnover of the staff; and instances of repeat criticisms of ratings. Quality of Loan Review – including the years of experience of the loan review staff; in-house versus outsourced provider of review; turnover of staff and the perceived quality of their work in relation to other external information. National and Local Economic Conditions – including trends in the consumer price index, unemployment rates, the housing price index, housing statistics compared to the prior year, bankruptcy rates, regulatory and legal environment risks and competition. This factor was increased in the three months ended March 31, 2020 due to the anticipated impact of the COVID-19 pandemic on the Bank's loan portfolio. The following table presents the activity in the ALL for the three months ended March 31, 2020 and 2019: Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2020 Balance, beginning of period $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 Provision for loan losses 383 71 322 (1) 775 77 42 119 31 925 Charge-offs — — (75) — (75) (91) (72) (163) — (238) Recoveries 403 3 44 — 450 6 5 11 — 461 Balance, end of period $ 8,420 $ 1,033 $ 2,647 $ 99 $ 12,199 $ 3,139 $ 294 $ 3,433 $ 171 $ 15,803 March 31, 2019 Balance, beginning of period $ 6,876 $ 817 $ 1,656 $ 98 $ 9,447 $ 3,753 $ 244 $ 3,997 $ 570 $ 14,014 Provision for loan losses 103 150 159 — 412 189 (26) 163 (175) 400 Charge-offs (25) — (43) — (68) (246) (20) (266) — (334) Recoveries 71 2 42 — 115 69 19 88 — 203 Balance, end of period $ 7,025 $ 969 $ 1,814 $ 98 $ 9,906 $ 3,765 $ 217 $ 3,982 $ 395 $ 14,283 The following table summarizes the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related ALL loss allocation for each at March 31, 2020 and December 31, 2019. PCI loans are excluded from loans individually evaluated for impairment. Commercial Consumer Commercial Acquisition Commercial Municipal Total Residential Installment Total Unallocated Total March 31, 2020 Loans allocated by: Individually evaluated for impairment $ 4,163 $ 837 $ 840 $ — $ 5,840 $ 2,917 $ 20 $ 2,937 $ — $ 8,777 Collectively evaluated for impairment 768,926 61,548 234,951 46,551 1,111,976 500,561 35,634 536,195 — 1,648,171 $ 773,089 $ 62,385 $ 235,791 $ 46,551 $ 1,117,816 $ 503,478 $ 35,654 $ 539,132 $ — $ 1,656,948 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 37 $ — $ 37 $ — $ 37 Collectively evaluated for impairment 8,420 1,033 2,647 99 12,199 3,102 294 3,396 171 15,766 $ 8,420 $ 1,033 $ 2,647 $ 99 $ 12,199 $ 3,139 $ 294 $ 3,433 $ 171 $ 15,803 December 31, 2019 Loans allocated by: Individually evaluated for impairment $ 6,452 $ — $ 1,763 $ — $ 8,215 $ 3,336 $ 85 $ 3,421 $ — $ 11,636 Collectively evaluated for impairment 752,413 57,403 212,791 47,057 1,069,664 512,380 50,650 563,030 — 1,632,694 $ 758,865 $ 57,403 $ 214,554 $ 47,057 $ 1,077,879 $ 515,716 $ 50,735 $ 566,451 $ — $ 1,644,330 ALL allocated by: Individually evaluated for impairment $ — $ — $ — $ — $ — $ 36 $ — $ 36 $ — $ 36 Collectively evaluated for impairment 7,634 959 2,356 100 11,049 3,111 319 3,430 140 14,619 $ 7,634 $ 959 $ 2,356 $ 100 $ 11,049 $ 3,147 $ 319 $ 3,466 $ 140 $ 14,655 The following table provides activity for the accretable yield of PCI loans for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 Accretable yield, beginning of period $ 6,950 $ 2,065 Additions (1) 570 — Accretion of income (598) (171) Reclassifications from nonaccretable difference due to improvement in expected cash flows 17 — Other changes, net (2) (2,525) — Accretable yield, end of period $ 4,414 $ 1,894 |
