LOANS

Portfolio loans consist of the following:

	March 31,			December 31,
	2017			2016
	(Dollars in thousands)
Commercial loans
Multifamily	$	108,330		$	93,597
Nonresidential		325,633			231,401
Land		9,276			8,373
Construction		94,727			68,158
Secured		161,945			95,343
Unsecured		8,453			7,386
Total commercial loans		708,364			504,258
Residential mortgage loans
One-to four-family		839,413			762,926
Construction		51,372			35,695
Total residential mortgage loans		890,785			798,621
Consumer loans
Home equity		190,751			165,054
Auto		46,804			39,609
Marine		1,672			1,796
Recreational vehicle		7,066			7,602
Other		4,922			2,537
Total consumer loans		251,215			216,598
Total loans		1,850,364			1,519,477
Less:
Allowance for loan losses		18,970			19,087
Deferred loan costs, net		(3,606	)		(3,187	)
Total		15,364			15,900
Loans, net	$	1,835,000		$	1,503,577

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and are based on impairment method as of March 31, 2017 and December 31, 2016 and activity for the three months ended March 31, 2017 and 2016.

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
	(Dollars in thousands)
For the three months ended March 31, 2017
Beginning balance	$	10,824		$	5,538		$	2,725		$	19,087
Provision		522			570			383			1,475
Charge-offs		(1,311	)		(230	)		(329	)		(1,870	)
Recoveries		147			34			97			278
Ending balance	$	10,182		$	5,912		$	2,876		$	18,970
March 31, 2017
Period-end amount allocated to:
Loans individually evaluated for impairment	$	19		$	1,231		$	482			1,732
Loans collectively evaluated for impairment		10,163			4,681			2,394			17,238
Loans acquired with deteriorated credit quality		—			—			—			—
Ending balance	$	10,182		$	5,912		$	2,876		$	18,970
Period-end balances:
Loans individually evaluated for impairment		2,685			16,902			8,252			27,839
Loans collectively evaluated for impairment		704,241			873,883			242,963			1,821,087
Loans acquired with deteriorated credit quality		1,438			—			—			1,438
Ending balance	$	708,364		$	890,785		$	251,215		$	1,850,364

Allowance For Loan Losses

	Commercial Loans			Residential Loans			Consumer Loans			Total
For the three months ended March 31, 2016
Beginning balance	$	8,077		$	6,630		$	3,005		$	17,712
Provision (recovery)		2,724			(594	)		25			2,155
Charge-offs		(2,346	)		(362	)		(479	)		(3,187	)
Recoveries		66			62			95			223
Ending balance	$	8,521		$	5,736		$	2,646		$	16,903
December 31, 2016
Period-end amount allocated to:
Loans individually evaluated for impairment	$	1,271		$	1,245		$	500		$	3,016
Loans collectively evaluated for impairment		9,553			4,293			2,225			16,071
Ending balance	$	10,824		$	5,538		$	2,725		$	19,087
Period-end balances:
Loans individually evaluated for impairment	$	6,018		$	17,485		$	8,045		$	31,548
Loans collectively evaluated for impairment		498,240			781,136			208,553			1,487,929
Ending balance	$	504,258		$	798,621		$	216,598		$	1,519,477

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required based on an analysis using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, general economic conditions in the market area and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.

Other loans not reviewed specifically by management are evaluated as a homogenous group of loans (generally single-family residential mortgage loans and all consumer credits except marine loans) using a loss factor applied to the outstanding loan balance to determine the level of reserve required. This loss factor consists of two components, a quantitative and a qualitative component. The quantitative component is based on a historical analysis of all charged-off loans, net of recoveries. In determining the qualitative factors, consideration is given to such attributes as lending policies, economic conditions, nature and volume of the portfolio, management, loan quality trend, loan review, collateral value, concentrations, economic cycles and other external factors. As of March 31, 2017, the Company evaluated 19 quarters of net charge-off history and applied this information to the current period. This component is combined with the qualitative component to arrive at the loss factor, which is applied to the outstanding balance of homogenous loans.

The following table presents loans individually evaluated for impairment by class of loans as of and for three months ended March 31, 2017:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	476	$	419	$	—	$	210	$	9	$	9
Nonresidential		738		166		—		828		22		22
Land		3,922		9		—		22		—		—
Construction		3,593		—		—		—		—		—
Secured		242		189		—		190		—		—
Unsecured		607		—		—		—		17		17
Total commercial loans		9,578		783		—		1,250		48		48
Residential mortgage loans
One-to four-family		7,584		5,764		—		6,261		53		46
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,584		5,764		—		6,261		53		46
Consumer loans
Home equity		2,179		1,612		—		1,598		12		11
Auto		24		13		—		8		—		—
Marine		584		195		—		231		1		1
Recreational vehicle		674		220		—		170		3		2
Other		—		—		—		—		—		—
Total consumer loans		3,461		2,040		—		2,007		16		14
Total	$	20,623	$	8,587	$	—	$	9,518	$	117	$	108
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		1,946		1,902		19		3,018		35		33
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		—		—		—		86		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		1,946		1,902		19		3,104		35		33
Residential mortgage loans
One-to four-family		11,252		11,138		1,231		10,933		162		122
Construction		—		—		—		—		—		—
Total residential mortgage loans		11,252		11,138		1,231		10,933		162		122
Consumer loans
Home equity		5,461		5,382		409		5,359		92		76
Auto		—		—		—		—		—		—
Marine		106		106		1		107		2		1
Recreational vehicle		734		724		72		677		10		9
Other		—		—		—		—		—		—
Total consumer loans		6,301		6,212		482		6,143		104		86
Total		19,499		19,252		1,732		20,180		301		241
Total impaired loans	$	40,122	$	27,839	$	1,732	$	29,698	$	418	$	349

The following table presents loans individually evaluated for impairment by class of loans as of and for three months ended March 31, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
With no specific allowance recorded
Commercial loans
Multifamily	$	97	$	—	$	—	$	—	$	—	$	—
Nonresidential		1,042		212		—		259		1		1
Land		3,922		384		—		384		—		—
Construction		3,593		—		—		—		—		—
Secured		3,860		3,700		—		3,700		—		—
Unsecured		1,124		—		—		—		—		—
Total commercial loans		13,638		4,296		—		4,343		1		1
Residential mortgage loans
One-to four-family		7,875		6,081		—		5,974		20		14
Construction		—		—		—		—		—		—
Total residential mortgage loans		7,875		6,081		—		5,974		20		14
Consumer loans
Home equity		1,951		1,332		—		1,525		3		2
Auto		15		9		—		12		—		—
Marine		546		303		—		287		—		—
Recreational vehicle		534		289		—		184		1		1
Other		3		3		—		3		—		—
Total consumer loans		3,049		1,936		—		2,011		4		3
Total	$	24,562	$	12,313	$	—	$	12,328	$	25	$	18
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	—	$	—
Nonresidential		11,348		8,924		936		6,954		109		107
Land		—		—		—		—		—		—
Construction		—		—		—		—		—		—
Secured		1,054		960		93		642		—		—
Unsecured		—		—		—		—		—		—
Total commercial loans		12,402		9,884		1,029		7,596		109		107
Residential mortgage loans
One-to four-family		12,710		12,710		1,407		13,096		189		136
Construction		—		—		—		—		—		—
Total residential mortgage loans		12,710		12,710		1,407		13,096		189		136
Consumer loans
Home equity		6,857		6,857		497		7,047		110		90
Auto		—		—		—		—		—		—
Marine		159		159		3		161		2		2
Recreational vehicle		688		688		86		905		7		7
Other		—		—		—		4		—		—
Total consumer loans		7,704		7,704		586		8,117		119		99
Total		32,816		30,298		3,022		28,809		417		342
Total impaired loans	$	57,378	$	42,611	$	3,022	$	41,137	$	442	$	360

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016:

Impaired Loans

(Dollars in thousands)

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no specific allowance recorded
Commercial loans
Multifamily	$	55	$	—	$	—
Nonresidential		2,278		1,489		—
Land		3,922		34		—
Construction		3,594		—		—
Secured		242		190		—
Unsecured		713		—		—
Total commercial loans		10,804		1,713		—
Residential mortgage loans
One-to four-family		8,736		6,758		—
Construction		—		—		—
Total residential mortgage loans		8,736		6,758		—
Consumer loans
Home equity		2,159		1,583		—
Auto		11		3		—
Marine		585		267		—
Recreational vehicle		433		120		—
Other		—		—		—
Total consumer loans		3,188		1,973		—
Total	$	22,728	$	10,444	$	—
With a specific allowance recorded
Commercial loans
Multifamily	$	—	$	—	$	—
Nonresidential		6,930		4,133		1,193
Land		—		—		—
Construction		—		—		—
Secured		237		172		78
Unsecured		—		—		—
Total commercial loans		7,167		4,305		1,271
Residential mortgage loans
One-to four-family		10,810		10,727		1,245
Construction		—		—		—
Total residential mortgage loans		10,810		10,727		1,245
Consumer loans
Home equity		5,390		5,335		426
Auto		—		—		—
Marine		108		108		1
Recreational vehicle		639		629		73
Other		—		—		—
Total consumer loans		6,137		6,072		500
Total		24,114		21,104		3,016
Total impaired loans	$	46,842	$	31,548	$	3,016

The unpaid principal balance is the total amount of the loan that is due to Home Savings. The recorded investment includes the unpaid principal balance less any charge-offs or partial charge-offs applied to specific loans. The unpaid principal balance and the recorded investment both exclude accrued interest receivable and deferred loan costs, both of which are immaterial.

Home Savings reclassifies a collateralized mortgage loan and a consumer loan secured by real estate to real estate owned and other repossessed assets once it has either obtained legal title to the real estate collateral or the borrower voluntarily conveys all interest in the real property to the Bank to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The table below presents loans that are in the process of foreclosure at March 31, 2017 and December 31, 2016, but legal title, deed in lieu of foreclosure or similar legal agreement to the property has not yet been obtained:

	March 31, 2017				December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment
	(Dollars in thousands)				(Dollars in thousands)
Mortgage loans in process of foreclosure	$	3,356	$	2,986	$	3,025	$	2,576
Consumer loans in process of foreclosure		1,309		1,016		1,069		795

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of March 31, 2017:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of March 31, 2017

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	419	$	—
Nonresidential		1,398		—
Land		9		—
Construction		—		—
Secured		354		—
Unsecured		—		—
Total commercial loans		2,180		—
Residential mortgage loans
One-to four-family		5,868		—
Construction		—		—
Total residential mortgage loans		5,868		—
Consumer Loans
Home equity		2,042		—
Auto		92		—
Marine		195		—
Recreational vehicle		176		—
Other		8		—
Total consumer loans		2,513		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	10,561	$	—

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans as of December 31, 2016:

Nonaccrual Loans and Loans Past Due Over 90 Days and Still Accruing

As of December 31, 2016

	Nonaccrual		Loans past due over 90 days and still accruing
	(Dollars in thousands)
Commercial loans
Multifamily	$	—	$	—
Nonresidential		3,546		—
Land		34		—
Construction		—		—
Secured		361		—
Unsecured		—		—
Total commercial loans		3,941		—
Residential mortgage loans
One-to four-family		6,084		—
Construction		—		—
Total residential mortgage loans		6,084		—
Consumer Loans
Home equity		1,936		—
Auto		31		—
Marine		267		—
Recreational vehicle		178		—
Other		2		—
Total consumer loans		2,414		—
Total nonaccrual loans and loans past due over 90 days and still accruing	$	12,439	$	—

The following table presents an age analysis of past-due loans, segregated by class of loans as of March 31, 2017:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	108,330	$	108,330
Nonresidential		25		—		22		47		325,586		325,633
Land		—		—		9		9		9,267		9,276
Construction		—		—		—		—		94,727		94,727
Secured		83		—		354		437		161,508		161,945
Unsecured		—		—		—		—		8,453		8,453
Total commercial loans		108		—		385		493		707,871		708,364
Residential mortgage loans
One- to four-family		4,429		1,348		5,117		10,894		828,519		839,413
Construction		—		—		—		—		51,372		51,372
Total residential mortgage loans		4,429		1,348		5,117		10,894		879,891		890,785
Consumer loans:
Home equity		534		389		1,747		2,670		188,081		190,751
Automobile		103		41		25		169		46,635		46,804
Marine		—		—		195		195		1,477		1,672
Recreational vehicle		16		112		104		232		6,834		7,066
Other		15		3		8		26		4,896		4,922
Total consumer loans		668		545		2,079		3,292		247,923		251,215
Total loans	$	5,205	$	1,893	$	7,581	$	14,679	$	1,835,685	$	1,850,364

The following table presents an age analysis of past-due loans, segregated by class of loans as of December 31, 2016:

Past Due Loans

(Dollars in thousands)

	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current Loans		Total Loans
Commercial loans
Multifamily	$	—	$	—	$	—	$	—	$	93,597	$	93,597
Nonresidential		3,511		—		61		3,572		227,829		231,401
Land		—		—		34		34		8,339		8,373
Construction		—		—		—		—		68,158		68,158
Secured				—		361		361		94,982		95,343
Unsecured				—		—		—		7,386		7,386
Total commercial loans		3,511		—		456		3,967		500,291		504,258
Residential mortgage loans
One- to four-family		3,774		1,717		5,461		10,952		751,974		762,926
Construction		—		—		—		—		35,695		35,695
Total residential mortgage loans		3,774		1,717		5,461		10,952		787,669		798,621
Consumer loans:
Home equity		941		458		1,669		3,068		161,986		165,054
Automobile		130		—		3		133		39,476		39,609
Marine		—		-		267		267		1,529		1,796
Recreational vehicle		131		347		-		478		7,124		7,602
Other		1		3		2		6		2,531		2,537
Total consumer loans		1,203		808		1,941		3,952		212,646		216,598
Total loans	$	8,488	$	2,525	$	7,858	$	18,871	$	1,500,606	$	1,519,477

As of March 31, 2017 and December 31, 2016, the Company has a recorded investment in troubled debt restructurings of $23.1 million and $26.6 million, respectively. The Company allocated $1.7 million of specific allowance for those loans at March 31, 2017 and $3.0 million at December 31, 2016. The Company has committed to lend additional amounts totaling up to $34,000 and $31,000 at March 31, 2017 and December 31, 2016, respectively.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended March 31, 2017:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(In thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		—		—		—
Residential mortgage loans
One- to four-family		1		75		84
Construction		—		—		—
Total residential mortgage loans		1		75		84
Consumer loans
Home equity		—		—		—
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		1		115		115
Other		—		—		—
Total consumer loans		1		115		115
Total restructured loans		2	$	190	$	199

The troubled debt restructurings described above increased the allowance for loan losses by $6,000 and resulted in no charge-offs during the three months ended March 31, 2017.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended March 31, 2016:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—	$	—
Nonresidential		1		88		88
Land		—		—		—
Construction		—		—		—
Secured		—		—		—
Unsecured		—		—		—
Total commercial loans		1		88		88
Residential mortgage loans
One- to four-family		2		219		237
Construction		—		—		—
Total residential mortgage loans		2		219		237
Consumer loans
Home equity		1		20		20
Auto		—		—		—
Marine		—		—		—
Recreational vehicle		—		—		—
Other		—		—		—
Total consumer loans		1		20		20
Total restructured loans		4	$	327	$	345

The troubled debt restructurings described above increased the allowance for loan losses by $5,000, and resulted in $30,000 in charge-offs during the three months ended March 31, 2016.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended March 31, 2017.

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One- to four-family		1		165
Construction		—		—
Total residential mortgage loans		1		165
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		1	$	165

The troubled debt restructurings that subsequently defaulted described above resulted in no charge-offs during the three months ended March 31, 2017, and had no effect on the provision for loan losses.

The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within a twelve month cycle following the modification during the period ended March 31, 2016:

	Number of loans		Recorded Investment
			(Dollars in thousands)
Commercial loans
Multifamily		—	$	—
Nonresidential		—		—
Land		—		—
Construction		—		—
Secured		—		—
Unsecured		—		—
Total commercial loans		—		—
Residential mortgage loans
One- to four-family		2		25
Construction		—		—
Total residential mortgage loans		2		25
Consumer loans
Home equity		—		—
Auto		—		—
Marine		—		—
Recreational vehicle		—		—
Other		—		—
Total consumer loans		—		—
Total restructured loans		2	$	25

The troubled debt restructurings that subsequently defaulted described above resulted in $3,000 of charge-offs during the three months ended March 31, 2016, and had no effect on the provision for loan losses.

A troubled debt restructuring is considered to be in payment default once it is 30 days contractually past due under the modified terms.

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 its debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Company’s internal underwriting policy.

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans past due 90 cumulative days, and all non-homogeneous loans, including commercial loans and commercial real estate loans. Smaller balance homogeneous loans are primarily monitored by payment status.

Asset quality ratings are divided into two groups: Pass (unclassified) and Classified. Within the unclassified group, certain loans that display potential weakness are risk rated as special mention. In addition, there are three classified risk ratings: substandard, doubtful and loss. These specific credit risk categories are defined as follows:

Special Mention. Loans classified as special mention have potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or 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 the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. 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.

Loss. Loans classified as loss are considered uncollectible and of such little value, that continuance as assets is not warranted. Although there may be a chance of recovery on these assets, it is not practical or desirable to defer writing off the asset.

The Company monitors loans on a monthly basis to determine if they should be included in one of the categories listed above. All impaired non-homogeneous credits classified as substandard, doubtful or loss are analyzed on an individual basis for a specific reserve requirement. This analysis is performed on each individual credit at least annually or more frequently if warranted.

As of March 31, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loans

March 31, 2017

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	104,037	$	3,524	$	769	$	—	$	—	$	769	$	108,330
Nonresidential		310,787		7,873		6,973		—		—		6,973		325,633
Land		9,267		—		9		—		—		9		9,276
Construction		94,727		—		—		—		—		—		94,727
Secured		138,543		7,721		15,681		—		—		15,681		161,945
Unsecured		8,358		—		95		—		—		95		8,453
Total commercial loans		665,719		19,118		23,527		—		—		23,527		708,364
Residential mortgage loans
One- to four-family		831,964		257		7,192		—		—		7,192		839,413
Construction		51,372		—		—		—		—		—		51,372
Total residential mortgage loans		883,336		257		7,192		—		—		7,192		890,785
Consumer loans
Home equity		188,709		—		2,042		—		—		2,042		190,751
Auto		46,712		—		92		—		—		92		46,804
Marine		1,477		—		195		—		—		195		1,672
Recreational vehicle		6,890		—		176		—		—		176		7,066
Other		4,914		—		8		—		—		8		4,922
Total consumer loans		248,702		—		2,513		—		—		2,513		251,215
Total loans	$	1,797,757	$	19,375	$	33,232	$	—	$	—	$	33,232	$	1,850,364

Loans

December 31, 2016

(Dollars in thousands)

	Unclassified				Classified
	Unclassified		Special Mention		Substandard		Doubtful		Loss		Total Classified		Total Loans
Commercial Loans
Multifamily	$	89,468	$	3,564	$	565	$	—	$	—	$	565	$	93,597
Nonresidential		217,204		6,037		8,160		—		—		8,160		231,401
Land		8,339		—		34		—		—		34		8,373
Construction		68,158		—		—		—		—		—		68,158
Secured		89,756		3,420		2,167		—		—		2,167		95,343
Unsecured		7,291		—		95		—		—		95		7,386
Total commercial loans		480,216		13,021		11,021		—		—		11,021		504,258
Residential mortgage loans
One- to four-family		754,996		104		7,826		—		—		7,826		762,926
Construction		35,695		—		—		—		—		—		35,695
Total residential mortgage loans		790,691		104		7,826		—		—		7,826		798,621
Consumer loans
Home equity		163,101		—		1,953		—		—		1,953		165,054
Auto		39,577		1		31		—		—		31		39,609
Marine		1,530		—		266		—		—		266		1,796
Recreational vehicle		7,424		—		178		—		—		178		7,602
Other		2,535		—		2		—		—		2		2,537
Total consumer loans		214,167		1		2,430		—		—		2,430		216,598
Total loans	$	1,485,074	$	13,126	$	21,277	$	—	$	—	$	21,277	$	1,519,477

Purchased Credit Impaired Loans:

The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows:

	March 31, 2017
	(Dollars in thousands)
Commercial loans	$	1,438
Residential mortgage loans		—
Consumer loans		—
Outstanding balance	$	1,438

Carrying amount, net of allowance of $0	$	1,438

Accretable yield, or income expected to be collected, is as follows:

	March 31, 2017
	(Dollars in thousands)
Balance at January 1	$	—
New loans purchased		1,797
Accretion of income		30
Reclassifications from nonaccretable difference		—
Principal payments received		21
Disposals		308
Balance at March 31	$	1,438

For the purchased credit impaired loans disclosed above, there was no change in the allowance for loan losses.

Purchased credit impaired loans purchased during the three months ended March 31, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows:

	March 31, 2017
	(Dollars in thousands)
Contractually required payments receivable of loans purchased during the year:
Commercial loans	$	4,499
Residential mortgage loans		—
Consumer loans		—
	$	4,499

Cash flow expected to be collected at acquisition	$	1,600
Fair value of acquired loans at acquisition		1,797

Income is not recognized on purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected. The carrying amounts of such loans are as follows:

	March 31, 2017
	(Dollars in thousands)
Loans at beginning of year	$	—
Loans purchased during the year		1,797
Loans at end of period		1,438