Allowance for Loan Losses

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Allowance for Loan Losses

Note 5 – Allowance for Loan Losses

The following tables summarize the activity in the allowance for loan losses, and ending balance of loans, net of unearned fees for the periods indicated.

	Allowance for Loan Losses – Three Months Ended March 31, 2018
	RE Mortgage						Home Equity						Other						Construction
(in thousands)	Resid.			Comm.			Lines			Loans			Consum.			C&I			Resid.			Comm.			Total
Beginning balance	$	2,317		$	11,441		$	5,800		$	1,841		$	586		$	6,512		$	1,184		$	642		$	30,323
Charge-offs		(1	)		—			(80	)		—			(194	)		(205	)		—			—			(480	)
Recoveries		—			15			209			14			78			50			—			—			366
(Benefit) provision		(146	)		39			(517	)		(119	)		100			35			167			205			(236	)
Ending balance	$	2,170		$	11,495		$	5,412		$	1,736		$	570		$	6,392		$	1,351		$	847		$	29,973
Ending balance:
Individ. evaluated for impairment	$	190		$	154		$	448		$	130		$	56		$	2,113			—			—		$	3,091
Loans pooled for evaluation	$	1,910		$	11,281		$	4,956		$	1,606		$	514		$	4,249		$	1,351		$	847		$	26,714
Loans acquired with deteriorated credit quality	$	70		$	60		$	8			—			—		$	30			—			—		$	168
	Loans, net of unearned fees – As of March 31, 2018
	RE Mortgage						Home Equity						Other						Construction
(in thousands)	Resid.			Comm.			Lines			Loans			Consum.			C&I			Resid.			Comm.			Total
Ending balance:
Total loans	$	386,111		$	1,973,268		$	283,251		$	41,932		$	23,606		$	216,015		$	71,598		$	73,952		$	3,069,733
Individ. evaluated for impairment	$	5,535		$	11,110		$	2,450		$	1,673		$	278		$	4,621		$	136			—		$	25,803
Loans pooled for evaluation	$	378,832		$	1,954,120		$	279,140		$	39,774		$	23,285		$	208,889		$	71,462		$	73,952		$	3,029,454
Loans acquired with deteriorated credit quality	$	1,744		$	8,038		$	1,661		$	485		$	43		$	2,505			—			—		$	14,476
	Allowance for Loan Losses—Year Ended December 31, 2017
	RE Mortgage						Home Equity						Other						Construction
(in thousands)	Resid.			Comm.			Lines			Loans			Consum.			C&I			Resid.			Comm.			Total
Beginning balance	$	2,748		$	11,517		$	7,044		$	2,644		$	622		$	5,831		$	1,417		$	680		$	32,503
Charge-offs		(60	)		(186	)		(98	)		(332	)		(1,186	)		(1,444	)		(1,104	)		—			(4,410	)
Recoveries		—			397			698			242			375			428			—			1			2,141
(Benefit) provision		(371	)		(287	)		(1,844	)		(713	)		775			1,697			871			(39	)		89
Ending balance	$	2,317		$	11,441		$	5,800		$	1,841		$	586		$	6,512		$	1,184		$	642		$	30,323
Ending balance:
Individ. evaluated for impairment	$	230		$	30		$	427		$	107		$	57		$	1,848			—			—		$	2,699
Loans pooled for evaluation	$	1,932		$	11,351		$	5,356		$	1,734		$	529		$	4,624		$	1,184		$	642		$	27,352
Loans acquired with deteriorated credit quality	$	155		$	60		$	17			—			—		$	40			—			—		$	272
	Loans, net of unearned fees – As of December 31, 2017
	RE Mortgage						Home Equity						Other						Construction
(in thousands)	Resid.			Comm.			Lines			Loans			Consum.			C&I			Resid.			Comm.			Total
Ending balance:
Total loans	$	385,426		$	1,914,896		$	288,688		$	43,031		$	25,155		$	220,412		$	67,930		$	69,627		$	3,015,165
Individ. evaluated for impairment	$	5,298		$	13,911		$	2,688		$	1,470		$	257		$	4,470		$	140			—		$	28,234
Loans pooled for evaluation	$	378,743		$	1,892,422		$	283,502		$	41,076		$	24,853		$	213,358		$	67,790		$	69,627		$	2,971,371
Loans acquired with deteriorated credit quality	$	1,385		$	8,563		$	2,498		$	485		$	45		$	2,584			—			—		$	15,560
	Allowance for Loan Losses – Three Months Ended March 31, 2017
	RE Mortgage						Home Equity						Other						Construction
(in thousands)	Resid.			Comm.			Lines			Loans			Consum.			C&I			Resid.			Comm.			Total
Beginning balance	$	2,748		$	11,517		$	7,044		$	2,644		$	622		$	5,831		$	1,417		$	680		$	32,503
Charge-offs		—			—			(71	)		(31	)		(174	)		(133	)		—			—			(409	)
Recoveries		—			110			46			12			141			170			—			1			480
(Benefit) provision		(86	)		(85	)		(489	)		(174	)		6			(542	)		(78	)		(109	)		(1,557	)
Ending balance	$	2,662		$	11,542		$	6,530		$	2,451		$	595		$	5,326		$	1,339		$	572		$	31,017
Ending balance:
Individ. evaluated for impairment	$	249		$	124		$	400		$	57		$	31		$	811		$	14			—		$	1,686
Loans pooled for evaluation	$	2,188		$	9,971		$	6,122		$	2,328		$	564		$	3,873		$	1,282		$	572		$	26,900
Loans acquired with deteriorated credit quality	$	225		$	1,447		$	8		$	66			—		$	642		$	43			—		$	2,431
	Loans, net of unearned fees – As of March 31, 2017
	RE Mortgage						Home Equity						Other						Construction
(in thousands)	Resid.			Comm.			Lines			Loans			Consum.			C&I			Resid.			Comm.			Total
Ending balance:
Total loans	$	309,701		$	1,761,114		$	283,596		$	40,241		$	29,313		$	212,685		$	59,699		$	64,843		$	2,761,192
Individ. evaluated for impairment	$	3,849		$	16,979		$	2,204		$	1,241		$	280		$	3,072		$	25			—		$	27,650
Loans pooled for evaluation	$	304,493		$	1,731,785		$	277,388		$	37,867		$	28,967		$	205,832		$	58,830		$	64,843		$	2,710,005
Loans acquired with deteriorated credit quality	$	1,359		$	12,350		$	4,004		$	1,133		$	66		$	3,781		$	844			—		$	23,537

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio.

The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows:

• Pass – This grade represents loans ranging from acceptable to very little or no credit risk. These loans typically meet most if not all policy standards in regard to: loan amount as a percentage of collateral value, debt service coverage, profitability, leverage, and working capital.

• Special Mention – This grade represents “Other Assets Especially Mentioned” in accordance with regulatory guidelines and includes loans that display some potential weaknesses which, if left unaddressed, may result in deterioration of the repayment prospects for the asset or may inadequately protect the Company’s position in the future. These loans warrant more than normal supervision and attention.

• Substandard – This grade represents “Substandard” loans in accordance with regulatory guidelines. Loans within this rating typically exhibit weaknesses that are well defined to the point that repayment is jeopardized. Loss potential is, however, not necessarily evident. The underlying collateral supporting the credit appears to have sufficient value to protect the Company from loss of principal and accrued interest, or the loan has been written down to the point where this is true. There is a definite need for a well-defined workout/rehabilitation program.

• Doubtful – This grade represents “Doubtful” loans in accordance with regulatory guidelines. An asset classified as Doubtful has all the weaknesses inherent in a loan classified 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. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and financing plans.

• Loss – This grade represents “Loss” loans in accordance with regulatory guidelines. A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though some recovery may be affected in the future. The portion of the loan that is graded loss should be charged off no later than the end of the quarter in which the loss is identified.

The following tables present ending loan balances by loan category and risk grade for the periods indicated:

	Credit Quality Indicators – As of March 31, 2018
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
Originated loans:
Pass	$	317,799	$	1,716,599	$	263,270	$	35,730	$	21,067	$	193,829	$	71,482	$	68,846	$	2,688,622
Special mention		2,274		23,679		1,628		1,532		238		7,263		—		4,855		41,469
Substandard		3,088		13,784		1,753		1,627		117		4,581		107		—		25,057
Loss		—		—		—		—		—		—		—		—		—
Total originated	$	323,161	$	1,754,062	$	266,651	$	38,889	$	21,422	$	205,673	$	71,589	$	73,701	$	2,755,148
PNCI loans:
Pass	$	59,184	$	201,641	$	13,686	$	2,301	$	2,067	$	7,837	$	9	$	251	$	286,976
Special mention		214		8,977		282		184		37		—		—		—		9,694
Substandard		1,808		550		971		73		37		—		—		—		3,439
Loss		—		—		—		—		—		—		—		—		—
Total PNCI	$	61,206	$	211,168	$	14,939	$	2,558	$	2,141	$	7,837	$	9	$	251	$	300,109
PCI loans	$	1,744	$	8,038	$	1,661	$	485	$	43	$	2,505		—		—	$	14,476
Total loans	$	386,111	$	1,973,268	$	283,251	$	41,932	$	23,606	$	216,015	$	71,598	$	73,952	$	3,069,733
	Credit Quality Indicators – As of December 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
Originated loans:
Pass	$	315,120	$	1,649,333	$	265,345	$	37,428	$	22,432	$	195,208	$	67,813	$	64,492	$	2,617,171
Special mention		2,234		18,434		2,558		800		272		9,492		—		4,872		38,662
Substandard		3,168		22,743		2,039		1,620		155		4,737		107		—		34,569
Loss		—		—		—		—		—		—		—		—		—
Total originated	$	320,522	$	1,690,510	$	269,942	$	39,848	$	22,859	$	209,437	$	67,920	$	69,364	$	2,690,402
PNCI loans:
Pass	$	61,411	$	203,751	$	14,866	$	2,433	$	2,207	$	8,390	$	10	$	263	$	293,331
Special mention		218		11,513		450		188		38		1		—		—		12,408
Substandard		1,890		559		932		77		6		—		—		—		3,464
Loss		—		—		—		—		—		—		—		—		—
Total PNCI	$	63,519	$	215,823	$	16,248	$	2,698	$	2,251	$	8,391	$	10	$	263	$	309,203
PCI loans	$	1,385	$	8,563	$	2,498	$	485	$	45	$	2,584		—		—	$	15,560
Total loans	$	385,426	$	1,914,896	$	288,688	$	43,031		25,155	$	220,412	$	67,930	$	69,627	$	3,015,165

Consumer loans, whether unsecured or secured by real estate, automobiles, or other personal property, are susceptible to three primary risks; non-payment due to income loss, over-extension of credit and, when the borrower is unable to pay, shortfall in collateral value. Typically non-paymentis due to loss of job and will follow general economic trends in the marketplace driven primarily by rises in the unemployment rate. Loss of collateral value can be due to market demand shifts, damage to collateral itself or a combination of the two.

Problem consumer loans are generally identified by payment history of the borrower (delinquency). The Bank manages its consumer loan portfolios by monitoring delinquency and contacting borrowers to encourage repayment, suggest modifications if appropriate, and, when continued scheduled payments become unrealistic, initiate repossession or foreclosure through appropriate channels. Collateral values may be determined by appraisals obtained through Bank approved, licensed appraisers, qualified independent third parties, public value information (blue book values for autos), sales invoices, or other appropriate means. Appropriate valuations are obtained at initiation of the credit and periodically (every 3-12 months depending on collateral type) once repayment is questionable and the loan has been classified.

Commercial real estate loans generally fall into two categories, owner-occupied and non-owner occupied. Loans secured by owner occupied real estate are primarily susceptible to changes in the business conditions of the related business. This may be driven by, among other things, industry changes, geographic business changes, changes in the individual fortunes of the business owner, and general economic conditions and changes in business cycles. These same risks apply to commercial loans whether secured by equipment or other personal property or unsecured. Losses on loans secured by owner occupied real estate, equipment, or other personal property generally are dictated by the value of underlying collateral at the time of default and liquidation of the collateral. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven by more general economic conditions, underlying collateral generally has devalued more and results in larger losses due to default. Loans secured by non-owner occupied real estate are primarily susceptible to risks associated with swings in occupancy or vacancy and related shifts in lease rates, rental rates or room rates. Most often these shifts are a result of changes in general economic or market conditions or overbuilding and resultant over-supply. Losses are dependent on value of underlying collateral at the time of default. Values are generally driven by these same factors and influenced by interest rates and required rates of return as well as changes in occupancy costs.

Construction loans, whether owner occupied or non-owner occupied commercial real estate loans or residential development loans, are not only susceptible to the related risks described above but the added risks of construction itself including cost over-runs, mismanagement of the project, or lack of demand or market changes experienced at time of completion. Again, losses are primarily related to underlying collateral value and changes therein as described above.

Problem C&I loans are generally identified by periodic review of financial information which may include financial statements, tax returns, rent rolls and payment history of the borrower (delinquency). Based on this information the Bank may decide to take any of several courses of action including demand for repayment, additional collateral or guarantors, and, when repayment becomes unlikely through borrower’s income and cash flow, repossession or foreclosure of the underlying collateral.

Collateral values may be determined by appraisals obtained through Bank approved, licensed appraisers, qualified independent third parties, public value information (blue book values for autos), sales invoices, or other appropriate means. Appropriate valuations are obtained at initiation of the credit and periodically (every 3-12 months depending on collateral type) once repayment is questionable and the loan has been classified.

Once a loan becomes delinquent and repayment becomes questionable, a Bank collection officer will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Bank will estimate its probable loss, using a recent valuation as appropriate to the underlying collateral less estimated costs of sale, and charge the loan down to the estimated net realizable amount. Depending on the length of time until ultimate collection, the Bank may revalue the underlying collateral and take additional charge-offs as warranted. Revaluations may occur as often as every 3-12 months depending on the underlying collateral and volatility of values. Final charge-offs or recoveries are taken when collateral is liquidated and actual loss is known. Unpaid balances on loans after or during collection and liquidation may also be pursued through lawsuit and attachment of wages or judgment liens on borrower’s other assets.

The following table shows the ending balance of current, past due, and nonaccrual originated loans by loan category as of the date indicated:

	Analysis of Past Due and Nonaccrual Originated Loans – As of March 31, 2018
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
Originated loan balance:
Past due:
30-59 Days	$	2,217	$	5,531	$	938	$	1,490	$	63	$	915	$	298	$	—	$	11,452
60-89 Days		—		—		26		18		18		534		—		1,249		1,845
> 90 Days		846		1,162		320		154		—		1,557		—		—		4,039
Total past due		3,063		6,693		1,284		1,662		81		3,006		298		1,249		17,336
Current		320,098		1,747,369		265,367		37,227		21,341		202,667		71,291		72,452		2,737,812
Total originated loans	$	323,161	$	1,754,062	$	266,651	$	38,889	$	21,422	$	205,673	$	71,589	$	73,701	$	2,755,148
> 90 Days and still accruing		—		—		—		—		—		—		—		—		—
Nonaccrual loans	$	2,235	$	7,925	$	733	$	1,193	$	4	$	3,990		—		—	$	16,080

The following table shows the ending balance of current, past due, and nonaccrual PNCI loans by loan category as of the date indicated:

	Analysis of Past Due and Nonaccrual PNCI Loans – As of March 31, 2018
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
PNCI loan balance:
Past due:
30-59 Days	$	2,537		—	$	362	$	2		—	$	1		—		—	$	2,902
60-89 Days		—		—		—		—		4		—		—		—		4
> 90 Days		—		—		146		—		28		—		—		—		174
Total past due		2,537		—		508		2		32		1		—		—		3,080
Current		58,669		211,168		14,431		2,556		2,109		7,836		9		251		297,029
Total PNCI loans	$	61,206	$	211,168	$	14,939	$	2,558	$	2,141	$	7,837	$	9	$	251	$	300,109
> 90 Days and still accruing		—		—		—		—		—		—		—		—		—
Nonaccrual loans	$	1,067		—	$	571	$	40	$	33		—		—		—	$	1,711

The following table shows the ending balance of current, past due, and nonaccrual originated loans by loan category as of the date indicated:

	Analysis of Past Due and Nonaccrual Originated Loans – As of December 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
Originated loan balance:
Past due:
30-59 Days	$	1,740	$	158	$	528	$	511	$	56	$	956	$	34		—	$	3,983
60-89 Days		510		987		48		107		36		738		—		—		2,426
> 90 Days		243		—		372		373		3		1,527		—		—		2,518
Total past due	$	2,493	$	1,145	$	948	$	991	$	95	$	3,221	$	34		—	$	8,927
Current		318,029		1,689,365		268,994		38,857		22,764		206,216		67,886	$	69,364		2,681,475
Total originated loans	$	320,522	$	1,690,510	$	269,942	$	39,848	$	22,859	$	209,437	$	67,920	$	69,364	$	2,690,402
> 90 Days and still accruing		—		—		—		—		—		—		—		—		—
Nonaccrual loans	$	1,725	$	8,144	$	811	$	1,106	$	7	$	3,669		—		—	$	15,462

The following table shows the ending balance of current, past due, and nonaccrual PNCI loans by loan category as of the date indicated:

	Analysis of Past Due and Nonaccrual PNCI Loans – As of December 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
PNCI loan balance:
Past due:
30-59 Days	$	1,495	$	70	$	298	$	30	$	6		—		—		—	$	1,899
60-89 Days		90		—		228		—		26		—		—		—		344
> 90 Days		109		—		330		—		—		—		—		—		439
Total past due	$	1,694	$	70	$	856	$	30	$	32		—		—		—	$	2,682
Current		61,825		215,753		15,392		2,668		2,219	$	8,391	$	10	$	263		306,521
Total PNCI loans	$	63,519	$	215,823	$	16,248	$	2,698	$	2,251	$	8,391	$	10	$	263	$	309,203
> 90 Days and still accruing	$	81		—	$	200		—		—		—		—		—	$	281
Nonaccrual loans	$	1,012		—	$	402	$	44	$	5		—		—		—	$	1,463

Impaired originated loans are those where management has concluded that it is probable that the borrower will be unable to pay all amounts due under the original contractual terms. The following tables show the recorded investment (financial statement balance), unpaid principal balance, average recorded investment, and interest income recognized for impaired Originated and PNCI loans, segregated by those with no related allowance recorded and those with an allowance recorded for the periods indicated.

	Impaired Originated Loans – As of, or for the Three Months Ended, March 31, 2018
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
With no related allowance recorded:
Recorded investment	$	2,678	$	9,848	$	888	$	1,193		—	$	881	$	136		—	$	15,624
Unpaid principal	$	2,829	$	10,126	$	944	$	1,548		—	$	894	$	136		—	$	16,477
Average recorded investment	$	2,368	$	11,474	$	991	$	1,150	$	2	$	728	$	138		—	$	16,851
Interest income recognized	$	19	$	35	$	6		—		—	$	9	$	2		—	$	71
With an allowance recorded:
Recorded investment	$	1,525	$	1,262	$	527	$	196	$	4	$	3,740		—		—	$	7,254
Unpaid principal	$	1,549	$	1,281	$	534	$	196	$	4	$	3,862		—		—	$	7,426
Related allowance	$	190	$	154	$	146	$	10	$	4	$	2,113		—		—	$	2,617
Average recorded investment	$	1,703	$	1,036	$	464	$	197	$	4	$	3,817		—		—	$	7,221
Interest income recognized	$	9	$	9	$	4	$	2		—	$	17		—		—	$	41
	Impaired PNCI Loans – As of, or for the Three Months Ended, March 31, 2018
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
With no related allowance recorded:
Recorded investment	$	1,332		—	$	501	$	40	$	28		—		—		—	$	1,901
Unpaid principal	$	1,390		—	$	529	$	54	$	28		—		—		—	$	2,001
Average recorded investment	$	1,345		—	$	546	$	42	$	14		—		—		—	$	1,947
Interest income recognized	$	2		—	$	2				—		—		—		—	$	4
With an allowance recorded:
Recorded investment		—		—	$	534	$	244	$	246		—		—		—	$	1,024
Unpaid principal		—		—	$	536	$	244	$	246		—		—		—	$	1,026
Related allowance		—		—	$	302	$	120	$	52		—		—		—	$	474
Average recorded investment		—		—	$	568	$	183	$	248		—		—		—	$	999
Interest income recognized		—		—	$	3	$	3	$	2		—		—		—	$	8
	Impaired Originated Loans – As of, or for the Twelve Months Ended, December 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
With no related allowance recorded:
Recorded investment	$	2,058	$	13,101	$	1,093	$	1,107	$	4	$	575	$	140		—	$	18,078
Unpaid principal	$	2,109	$	13,360	$	1,175	$	1,429	$	52	$	585	$	140		—	$	18,850
Average recorded investment	$	1,875	$	13,123	$	1,287	$	852	$	10	$	668	$	76		—	$	17,891
Interest income recognized	$	85	$	609	$	39	$	14		—	$	18	$	9		—	$	774
With an allowance recorded:
Recorded investment	$	1,881	$	810	$	401	$	198	$	3	$	3,895		—		—	$	7,188
Unpaid principal	$	1,914	$	826	$	406	$	198	$	3	$	3,981		—		—	$	7,328
Related allowance	$	230	$	30	$	111	$	10	$	3	$	1,848		—		—	$	2,232
Average recorded investment	$	1,626	$	728	$	415	$	341	$	10	$	3,615		—		—	$	6,735
Interest income recognized	$	58	$	36	$	8	$	10		—	$	166		—		—	$	278
	Impaired PNCI Loans – As of, or for the Twelve Months Ended, December 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
With no related allowance recorded:
Recorded investment	$	1,359		—	$	591	$	44		—		—		—		—	$	1,994
Unpaid principal	$	1,404		—	$	612	$	57		—		—		—		—	$	2,073
Average recorded investment	$	911	$	913	$	663	$	56	$	2		—		—		—	$	2,545
Interest income recognized	$	24		—	$	22		—		—		—		—		—	$	46
With an allowance recorded:
Recorded investment		—		—	$	603	$	121	$	250		—		—		—	$	974
Unpaid principal		—		—	$	604	$	121	$	250		—		—		—	$	975
Related allowance		—		—	$	316	$	97	$	54		—		—		—	$	467
Average recorded investment	$	130	$	66	$	577	$	61	$	184		—		—		—	$	1,018
Interest income recognized		—		—	$	26	$	6	$	11		—		—		—	$	43

	Impaired Originated Loans – As of, or for the Three Months Ended, March 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
With no related allowance recorded:
Recorded investment	$	1,782	$	14,431	$	1,064	$	743	$	5	$	1,289	$	11		—	$	19,325
Unpaid principal	$	1,793	$	14,881	$	1,144	$	1,085	$	6	$	1,312	$	16		—	$	20,237
Average recorded investment	$	2,834	$	20,770	$	2,013	$	845	$	12	$	932	$	7		—	$	27,413
Interest income recognized	$	20	$	98	$	6	$	1		—	$	7		—		—	$	132
With an allowance recorded:
Recorded investment	$	1,378	$	640	$	427	$	440	$	21	$	1,783	$	14		—	$	4,703
Unpaid principal	$	1,382	$	640	$	440	$	443	$	22	$	1,842	$	14		—	$	4,783
Related allowance	$	172	$	18	$	106	$	57	$	14	$	811	$	14		—	$	1,192
Average recorded investment	$	1,692	$	1,029	$	1,076	$	557	$	11	$	1,938	$	7		—	$	6,310
Interest income recognized	$	11	$	9	$	1	$	5		—	$	14		—		—	$	40
	Impaired PNCI Loans – As of, or for the Three Months Ended, March 31, 2017
	RE Mortgage				Home Equity				Other				Construction
(in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
With no related allowance recorded:
Recorded investment	$	433	$	1,777	$	220	$	58	$	138		—		—		—	$	2,626
Unpaid principal	$	455	$	2,011	$	233	$	67	$	139		—		—		—	$	2,905
Average recorded investment	$	654	$	1,455	$	337	$	64	$	86	$	1		—	$	245	$	2,842
Interest income recognized	$	2		—	$	1		—	$	2		—		—		—	$	5
With an allowance recorded:
Recorded investment	$	256	$	131	$	493		—	$	116		—		—		—	$	996
Unpaid principal	$	256	$	131	$	493		—	$	116		—		—		—	$	996
Related allowance	$	77	$	106	$	295		—	$	16		—		—		—	$	494
Average recorded investment	$	128	$	1,440	$	550	$	19	$	175		—		—		—	$	2,312
Interest income recognized	$	2	$	2	$	5		—	$	1		—		—		—	$	10

At March 31, 2018, $9,781,000 of originated loans were TDR and classified as impaired. The Company had obligations to lend $1,000 of additional funds on these TDR as of March 31, 2018. At March 31, 2018, $1,471,000 of PNCI loans were TDR and classified as impaired. The Company had no obligations to lend additional funds on these TDR as of March 31, 2018.

At December 31, 2017, $12,517,000 of Originated loans were TDRs and classified as impaired. The Company had obligations to lend $1,000 of additional funds on these TDRs as of December 31, 2017. At December 31, 2017, $1,352,000 of PNCI loans were TDRs and classified as impaired. The Company had no obligations to lend additional funds on these TDRs as of December 31, 2017.

At March 31, 2017, $12,285,000 of originated loans were TDR and classified as impaired. The Company had obligations to lend $70,000 of additional funds on these TDR as of March 31, 2017. At March 31, 2017, $1,470,000 of PNCI loans were TDR and classified as impaired. The Company had no obligations to lend additional funds on these TDR as of March 31, 2017.

The following table shows certain information regarding TDRs that occurred during the period indicated:

	TDR Information for the Three Months Ended March 31, 2018
	RE Mortgage				Home Equity				Other				Construction
(dollars in thousands)	Resid.		Comm.		Lines		Loans		Consum.		C&I		Resid.		Comm.		Total
Number		—		1		1		1		—		—		—		—		3
Pre-mod outstanding principal balance		—	$	384	$	133	$	121		—		—		—		—	$	638
Post-mod outstanding principal balance		—	$	384	$	138	$	121		—		—		—		—	$	643
Financial impact due to TDR taken as additional provision		—	$	11		—		—		—		—		—		—	$	11
Number that defaulted during the period		—		1		—		—		—		—		—		—		1
Recorded investment of TDRs that defaulted during the period		—	$	169		—		—		—		—		—		—	$	169
Financial impact due to the default of previous TDR taken as charge-offs or additional provisions		—		—		—		—		—		—		—		—		—

The following table shows certain information regarding TDRs that occurred during the period indicated:     

	TDR Information for the Year Ended December 31, 2017
	RE Mortgage					Home Equity					Other				Construction
(dollars in thousands)	Resid.		Comm.			Lines			Loans		Consum.		C&I		Resid.		Comm.		Total
Number		1		8			3			1		1		11		1		—		26
Pre-mod outstanding principal balance	$	939	$	3,721		$	187		$	252	$	14	$	1,854	$	144		—	$	7,111
Post-mod outstanding principal balance	$	939	$	3,695		$	187		$	252	$	14	$	1,747	$	144		—	$	6,978
Financial impact due to TDR taken as additional provision	$	169	$	(111	)	$	27			—	$	11	$	37		—		—	$	133
Number that defaulted during the period		2		1			1			1		—		—		—		—		5
Recorded investment of TDRs that defaulted during the period	$	223	$	219		$	127		$	55		—		—		—		—	$	624
Financial impact due to the default of previous TDR taken as charge-offs or additional provisions		—		—		$	(5	)		—		—		—		—		—	$	(5	)

Modifications classified as TDRs can include one or a combination of the following: rate modifications, term extensions, interest only modifications, either temporary or long-term, payment modifications, and collateral substitutions/additions.

For all new TDRs, an impairment analysis is conducted. If the loan is determined to be collateral dependent, any additional amount of impairment will be calculated based on the difference between estimated collectible value and the current carrying balance of the loan. This difference could result in an increased provision and is typically charged off. If the asset is determined not to be collateral dependent, the impairment is measured on the net present value difference between the expected cash flows of the restructured loan and the cash flows which would have been received under the original terms. The effect of this could result in a requirement for additional provision to the reserve. The effect of these required provisions for the period are indicated above.

Typically if a TDR defaults during the period, the loan is then considered collateral dependent and, if it was not already considered collateral dependent, an appropriate provision will be reserved or charge will be taken. The additional provisions required resulting from default of previously modified TDR’s are noted above.