Note 4:

Allowance for Loan Losses, Nonperforming Assets and Impaired Loans

The allowance for loan losses methodology incorporates individual evaluation of impaired loans and collective evaluation of groups of non-impaired loans. The Company performs ongoing analysis of the loan portfolio to determine credit quality and to identify impaired loans. Credit quality is rated based on the loan’s payment history, the borrower’s current financial situation and the value of the underlying collateral.

Impaired loans are those loans that have been modified in a troubled debt restructure (“TDR” or “restructure”) and larger, non-homogeneous loans that are in nonaccrual or exhibit payment history or financial status that indicate the probability that collection will not occur when due according to the loan’s original terms. Generally, impaired loans are given risk ratings that indicate higher risk, such as “classified” or “other assets especially mentioned.” Impaired loans are individually evaluated to determine appropriate reserves and are measured at the lower of the invested amount or the fair value. Impaired loans that are not troubled debt restructures and for which fair value measurement indicates an impairment loss are designated nonaccrual. A restructured loan that maintains current status for at least six months may be in accrual status. Please refer to Note 1 of the Company’s 2015 Form 10-K, “Summary of Significant Accounting Policies” for additional information on evaluation of impaired loans and associated specific reserves, and policies regarding nonaccruals, past due status and charge-offs.

Troubled debt restructures impact the estimation of the appropriate level of the allowance for loan losses. If the restructuring included forgiveness of a portion of principal, the charge-off is included in the historical charge-off rates applied to the collective evaluation methodology. Further, restructured loans are individually evaluated for impairment and any amount of book value that exceeds fair value is accrued in the allowance for loan losses. TDRs that experience a payment default are examined to determine whether the default indicates collateral dependency or a decline in estimates of cash flow used in the fair value measurement. TDRs that are determined to be collateral-dependent, as well as all impaired loans that are determined to be collateral dependent, are charged down to fair value net of estimated costs to sell. Deficiencies indicated by impairment measurements for TDRs that are not collateral dependent may be accrued in the allowance for loan losses or charged off if deemed uncollectible.

The Company evaluated characteristics in the loan portfolio and determined major segments and smaller classes within each segment. These characteristics include collateral type, repayment sources, and (if applicable) the borrower’s business model. The methodology for calculating reserves for collectively-evaluated loans is applied at the class level.

Portfolio Segments and Classes

The segments and classes used in determining the allowance for loan losses are as follows.

Real Estate Construction	Commercial Non Real Estate
Construction, residential	Commercial and Industrial
Construction, other
	Public sector and IDA
Consumer Real Estate	Public Sector and IDA
Equity lines
Residential closed-end first liens	Consumer Non Real Estate
Residential closed-end junior liens	Credit cards
Investor-owned residential real estate	Automobile
	Other consumer loans
Commercial Real Estate
Multifamily real estate
Commercial real estate, owner-occupied
Commercial real estate, other

Historical Loss Rates

The Company’s allowance methodology for collectively-evaluated loans applies historical loss rates by class to current class balances as part of the process of determining required reserves. Class loss rates are calculated as the net charge-offs for the class as a percentage of average class balance. The Company averages loss rates for the most recent 8 quarters to determine the historical loss rate for each class.

Two loss rates for each class are calculated: total net charge-offs for the class as a percentage of average class loan balance (“class loss rate”), and total net charge-offs for the class as a percentage of average classified loans in the class (“classified loss rate”). Classified loans are those with risk ratings of “substandard”, “doubtful” or “loss”. Net charge-offs in both calculations include charge-offs and recoveries of classified and non-classified loans as well as those associated with impaired loans. Class historical loss rates are applied to non-classified loan balances at the reporting date, and classified historical loss rates are applied to classified loan balances and not individually evaluated at the reporting date.

Risk Factors

In addition to historical loss rates, risk factors pertinent to credit risk for each class are analyzed to estimate reserves for collectively-evaluated loans. Factors include changes in national and local economic and business conditions, the nature and volume of classes within the portfolio, loan quality, loan officers’ experience, lending policies and the Company’s loan review system.

The analysis of certain factors results in standard allocations to all segments and classes. These factors include loan officers’ average years of experience, the risk from changes in loan review, unemployment levels, bankruptcy rates, the interest rate environment, and the competitive, legal and regulatory environments.

Factors analyzed for each class, with resultant allocations based upon the level of risk assessed for each class, include the risk from changes in lending policies, levels of past due loans, nonaccrual loans, current class balance as a percentage of total loans, and the percentage of high risk loans within the class. Additionally, factors specific to each segment are analyzed and result in allocations to the segment. Please refer to the Company’s 2015 10-K, Note 1: Summary of Significant Accounting Policies for a discussion of risk factors pertinent to each class.

Real estate construction loans are subject to general risks from changing commercial building and housing market trends and economic conditions that may impact demand for completed properties and the costs of completion. These risks are measured by market-area unemployment rates, bankruptcy rates, housing market trends, and interest rates.

The credit quality of consumer real estate is subject to risks associated with the borrower’s repayment ability and collateral value, measured generally by analyzing local unemployment and bankruptcy trends, local housing market trends, and interest rates.

The commercial real estate segment includes loans secured by multifamily residential real estate, commercial real estate occupied by the owner/borrower, and commercial real estate leased to non-owners. Loans in the commercial real estate segment are impacted by economic risks from changing commercial real estate markets, rental markets for multi-family housing and commercial buildings, business bankruptcy rates, local unemployment and interest rate trends that would impact the businesses housed by the commercial real estate.

Commercial non real estate loans are secured by collateral other than real estate, or are unsecured. Credit risk for commercial non real estate loans is subject to economic conditions, generally monitored by local business bankruptcy trends, and interest rates.

Public sector and IDA loans are extended to municipalities and related entities. Credit risk is based upon the entity’s ability to repay and interest rate trends.

Consumer non real estate includes credit cards, automobile and other consumer loans. Credit cards and certain other consumer loans are unsecured, while collateral is obtained for automobile loans and other consumer loans. Credit risk stems primarily from the borrower’s ability to repay, measured by average unemployment, average personal bankruptcy rates and interest rates.

Factor allocations applied to each class are increased for loans rated special mention and increased to a greater extent for loans rated classified. The Company allocates additional reserves for “high risk” loans. High risk loans include junior liens, interest only and high loan to value loans.

A detailed analysis showing the allowance roll-forward by portfolio segment and related loan balance by segment follows.

	A ctivity in the Allowance for Loan Losses for the Three Months Ended March 31, 2016
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate			Commercial Non Real Estate			Public Sector and IDA			Consumer Non Real Estate			Unallocated		Total
Balance, December 31, 2015	$	576		$	1,866		$	4,109		$	655		$	436		$	627		$	28	$	8,297
Charge-offs		(29	)		(22	)		(124	)		(211	)		---			(67	)		---		(453	)
Recoveries		---			1			38			---			---			21			---		60
Provision for loan losses		(93	)		(115	)		(74	)		308			(25	)		3			199		203
Balance, March 31, 2016	$	454		$	1,730		$	3,949		$	752		$	411		$	584		$	227	$	8,107

	A ctivity in the Allowance for Loan Losses for the Three Months Ended March 31, 2015
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate			Commercial Non Real Estate			Public Sector and IDA		Consumer Non Real Estate			Unallocated			Total
Balance, December 31, 2014	$	612		$	1,662		$	3,537		$	1,475		$	327	$	602		$	48		$	8,263
Charge-offs		---			(72	)		(100	)		---			---		(88	)		---			(260	)
Recoveries		---			---			12			---			---		41			---			53
Provision for loan losses		(145	)		30			262			(59	)		106		21			(14	)		201
Balance, March 31, 2015	$	467		$	1,620		$	3,711		$	1,416		$	433	$	576		$	34		$	8,257

	Activity in th e Allowance for Loan Losses for the year ended December 31 , 201 5
	Real Estate Construction			Consumer Real Estate			Commercial Real Estate			Commercial Non Real Estate			Public Sector and IDA		Consumer Non Real Estate			Unallocated			Total
Balance, December 31, 2014	$	612		$	1,662		$	3,537		$	1,475		$	327	$	602		$	48		$	8,263
Charge-offs		---			(205	)		(1,114	)		(490	)		---		(311	)		---			(2,120	)
Recoveries		---			2			49			1			---		93			---			145
Provision for loan losses		(36	)		407			1,637			(331	)		109		243			(20	)		2,009
Balance, December 31, 2015	$	576		$	1,866		$	4,109		$	655		$	436	$	627		$	28		$	8,297

	Allowance for Loan Losses as of March 31, 2016
	Real Estate Construction		Consumer Real Estate		Commercial Real Estate		Commercial Non Real Estate		Public Sector and IDA		Consumer Non Real Estate		Unallocated		Total
Individually evaluated for impairment	$	---	$	22	$	58	$	---	$	---	$	---	$	---	$	80
Collectively evaluated for impairment		454		1,708		3,891		752		411		584		227		8,027
Total	$	454	$	1,730	$	3,949	$	752	$	411	$	584	$	227	$	8,107

	Allowance for Loan Losses as of December 31, 2015
	Real Estate Construction		Consumer Real Estate		Commercial Real Estate		Commercial Non Real Estate		Public Sector and IDA		Consumer Non Real Estate		Unallocated		Total
Individually evaluated for impairment	$	---	$	22	$	23	$	---	$	---	$	---	$	---	$	45
Collectively evaluated for impairment		576		1,844		4,086		655		436		627		28		8,252
Total	$	576	$	1,866	$	4,109	$	655	$	436	$	627	$	28	$	8,297

	Loans as of March 31, 2016
	Real Estate Construction		Consumer Real Estate		Commercial Real Estate		Commercial Non Real Estate		Public Sector and IDA		Consumer Non Real Estate		Unallocated		Total
Individually evaluated for impairment	$	682	$	953	$	11,537	$	817	$	---	$	---	$	---	$	13,989
Collectively evaluated for impairment		38,511		143,315		299,100		32,865		50,777		29,933		---		594,501
Total loans	$	39,193	$	144,268	$	310,637	$	33,682	$	50,777	$	29,933	$	---	$	608,490

	Loans as of December 31, 2015
	Real Estate Construction		Consumer Real Estate		Commercial Real Estate		Commercial Non Real Estate		Public Sector and IDA		Consumer Non Real Estate		Unallocated		Total
Individually evaluated for impairment	$	718	$	962	$	12,575	$	1,091	$	---	$	---	$	---	$	15,346
Collectively evaluated for impairment		47,533		142,542		296,803		36,480		51,335		29,845		---		604,538
Total	$	48,251	$	143,504	$	309,378	$	37,571	$	51,335	$	29,845	$	---	$	619,884

A summary of ratios for the allowance for loan losses follows.

	As of the Three Months Ended March 31,						For the Year E nded December 31,
	2016			2015			2015
Ratio of allowance for loan losses to the end of period loans, net of unearned income and deferred fees		1.33	%		1.33	%		1.34	%
Ratio of net charge-offs to average loans, net of unearned income and deferred fees (1)		0.26	%		0.14	%		0.32	%

(1)	Net charge-offs are on an annualized basis.

A summary of nonperforming assets follows.

	March 31,						December 31,
	2016			2015			2015
Nonperforming assets:
Nonaccrual loans	$	1,901		$	3,102		$	2,043
Restructured loans in nonaccrual		4,504			6,123			4,639
Total nonperforming loans		6,405			9,225			6,682
Other real estate owned, net		3,612			4,573			4,165
Total nonperforming assets	$	10,017		$	13,798		$	10,847
Ratio of nonperforming assets to loans, net of unearned income and deferred fees, plus other real estate owned		1.64	%		2.20	%		1.74	%
Ratio of allowance for loan losses to nonperforming loans ( 1 )		126.57	%		89.51	%		124.17	%

(1)	The Company defines nonperforming loans as nonaccrual loans. Loans 90 days or more past due and still accruing and accruing restructured loans are excluded.

A summary of loans past due 90 days or more and impaired loans follows.

	March 31,						December 31,
	2016			2015			2015
Loans past due 90 days or more and still accruing	$	328		$	272		$	156
Ratio of loans past due 90 days or more and still accruing to loans, net of unearned income and deferred fees		0.05	%		0.04	%		0.03	%
Accruing restructured loans	$	7,724		$	5,992		$	8,814
Impaired loans:
Impaired loans with no valuation allowance	$	12,171		$	11,265		$	12,973
Impaired loans with a valuation allowance		1,818			3,729			2,373
Total impaired loans	$	13,989		$	14,994		$	15,346
Valuation allowance		(80	)		(236	)		(45	)
Impaired loans, net of allowance	$	13,909		$	14,758		$	15,301
Average recorded investment in impaired loans (1)	$	14,796		$	15,192		$	17,297
Interest income recognized on impaired loans, after designation as impaired	$	125		$	174		$	769
Amount of income recognized on a cash basis	$	---		$	---		$	---

(1)

Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

Nonaccrual loans that meet the Company’s balance threshold of $250 and all TDRs are designated as impaired. No interest income was recognized on nonaccrual loans for the three months ended March 31, 2016 or March 31, 2015 or for the year ended December 31, 2015.

A detailed analysis of investment in impaired loans, associated reserves and interest income recognized, segregated by loan class follows.

	Impaired Loans as of March 31, 2016
	Principal Balance		Total Recorded Investment (1)		Recorded Investment (1 ) for Which There is No Related Allowance		Recorded Investment (1) for Which There is a Related Allowance		Related Allowance
Real Estate Construction (2)
Construction 1-4 family residential	$	689	$	682	$	682	$	---	$	---
Co nsumer Real Estate (2)
Residential closed-end first liens		708		664		303		361		13
Residential closed-end junior liens		214		214		---		214		5
Investor-owned residential real estate		75		75		---		75		4
Commercial Real Estate (2)
Multifamily real estate		1,867		1,594		1,594		---		---
Commercial real estate, owner-occupied		4,213		4,165		2,997		1,168		58
Commercial real estate, other		5,966		5,778		5,778		---		---
Commercial Non Real Estate (2)
Commercial and Industrial		824		817		817		---		---
Total	$	14,556	$	13,989	$	12,171	$	1,818	$	80

(1)

Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

(2)

Only classes with impaired loans are shown.

	Impaired Loans as of December 31, 2015
	Principal Balance		Total Recorded Investment (1)		Recorded Investment (1) for Which There is No Related Allowance		Recorded Investment (1) for Which There is a Related Allowance		Related Allowance
Real Estate Construction (2)
Construction 1-4 family residential	$	718	$	718	$	718	$	---	$	---
Co nsumer Real Estate (2)
Residential closed-end first liens		713		669		305		364		13
Residential closed-end junior liens		218		218		---		218		5
Investor-owned residential real estate		75		75		---		75		4
Commercial Real Estate (2)
Multifamily real estate		1,988		1,728		1,728		---		---
Commercial real estate, owner occupied		5,068		5,020		3,304		1,716		23
Commercial real estate, other		5,990		5,827		5,827		---		---
Commercial Non Real Estate (2)
Commercial and Industrial		1,099		1,091		1,091		---		---
Total	$	15,869	$	15,346	$	12,973	$	2,373	$	45

(1)

Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

(2)

Only classes with impaired loans are shown.

The following tables show the average recorded investment and interest income recognized for impaired loans.

	For the Three Months Ended March 31, 2016
	Average Recorded Investment (1)		Interest Income Recognized
Real Estate Construction (2)
Construction 1-4 family residential	$	682	$	---
Co nsumer Real Estate (2)
Residential closed-end first liens		667		10
Residential closed-end junior liens		216		4
Investor-owned residential real estate		75		1
Commercial Real Estate (2)
Multifamily real estate		1,595		---
Commercial real estate, owner occupied		4,949		68
Commercial real estate, other		5,793		42
Commercial Non Real Estate (2)
Commercial and Industrial		819		---
Total	$	14,796	$	125

(1)

Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

(2)

Only classes with impaired loans are shown.

	For the Three Months Ended March 31, 2015
	Average Recorded Investment (1)		Interest Income Recognized
Co nsumer Real Estate (2)
Residential closed-end first liens	$	501	$	7
Residential closed-end junior liens		236		4
Investor-owned residential real estate		76		1
Commercial Real Estate (2)
Multifamily real estate		2,708		25
Commercial real estate, owner occupied		4,974		58
Commercial real estate, other		6,023		80
Commercial Non Real Estate (2)
Commercial and Industrial		674		(1	)
Total	$	15,192	$	174

(1)

Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

(2)

Only classes with impaired loans are shown.

	For the Year Ended December 31, 2015
	Average Recorded Investment (1)		Interest Income Recognized
Real Estate Construction (2)
Construction 1-4 family residential	$	612	$	23
Consumer Real Estate (2)
Residential closed-end first liens		681		43
Residential closed-end junior liens		228		15
Investor-owned residential real estate		76		5
Commercial Real Estate (2)
Multifamily real estate		2,581		84
Commercial real estate, owner occupied		6,141		251
Commercial real estate, other		5,888		308
Commercial Non Real Estate (2)
Commercial and Industrial		1,090		40
Total	$	17,297	$	769

(1)

Recorded investment is net of charge-offs and interest paid while a loan is in nonaccrual status.

(2)

Only classes with impaired loans are shown.

The Company reviews nonaccrual loans on an individual loan basis to determine whether future payments are reasonably assured. To satisfy this criteria, the Company’s evaluation must determine that the underlying cause of the original delinquency or weakness that indicated nonaccrual status has been resolved, such as receipt of new guarantees, increased cash flows that cover the debt service or other resolution. Nonaccrual loans that demonstrate reasonable assurance of future payments and that have made at least six consecutive payments in accordance with repayment terms and timeframes may be returned to accrual status.

A restructured loan that maintains current status for at least six months may be returned to accrual status.

An analysis of past due and nonaccrual loans

follows.

March 31, 2016
	30 – 89 Days Past Due		90 or M ore Days Past Due		90 or More Days Past Due and Still Accruing		Nonaccruals (Including Impaired Nonaccruals)
Real Estate Construction (1)
Construction residential	$	---	$	---	$	---	$	683
Consumer Real Estate (1)
Equity lines		9		48		48		---
Residential closed-end first liens		1,049		239		239		---
Residential closed-end junior liens		290		38		38
Investor-owned residential real estate		319		---		---		11
Commercial Real Estate (1)
Multifamily real estate		676		1,594		---		1,594
Commercial real estate, owner-occupied		---		357		---		485
Commercial real estate, other		---		---		---		2,820
Commercial Non Real Estate (1)
Commercial and Industrial		22		812		---		812
Consumer Non Real Estate (1)
Credit cards		1		2		2		---
Automobile		195		---		---		---
Other consumer loans		21		2		1		---
Total	$	2,582	$	3,092	$	328	$	6,405

(1)

Only classes with past-due or nonaccrual loans are shown.

December 31, 2015
	30 – 89 Days Past Due		90 or M ore Days Past Due		90 or More Days Past Due and Still Accruing		Nonaccruals (Including Impaired Nonaccruals)
Real Estate Construction
Construction, residential	$	---	$	---	$	---	$	718
Construction, other		26		---		---		---
Consumer Real Estate
Equity lines		16		---		---		---
Residential closed-end first liens		1,402		106		106		14
Residential closed-end junior liens		123		39		39		---
Investor-owned residential real estate		248		---		---		---
Commercial Real Estate
Multifamily real estate		684		1,728		---		1,728
Commercial real estate, owner occupied		---		357		---		494
Commercial real estate, other		---		---		---		2,845
Commercial Non Real Estate
Commercial and Industrial		142		883		---		883
Public Sector and IDA
Public sector and IDA		---		---		---		---
Consumer Non Real Estate
Credit cards		5		6		6		---
Automobile		286		5		5		---
Other consumer loans		60		---		---		---
Total	$	2,992	$	3,124	$	156	$	6,682

The estimate of credit risk for non-impaired loans is obtained by applying allocations for internal and external factors. The allocations are increased for loans that exhibit greater credit quality risk.

Credit quality indicators, which the Company terms risk grades, are assigned through the Company’s credit review function for larger loans and selective review of loans that fall below credit review thresholds. Loans that do not indicate heightened risk are graded as “pass.” Loans that appear to have elevated credit risk because of frequent or persistent past due status, which is less than 75 days, or that show weakness in the borrower’s financial condition are risk graded “special mention.” Loans with frequent or persistent delinquency exceeding 75 days or that have a higher level of weakness in the borrower’s financial condition are graded “classified.” Classified loans have regulatory risk ratings of “substandard” and “doubtful.” Allowance for loan loss allocations are increased by 50% and by 100% for loans with grades of “special mention” and “classified,” respectively.

Determination of risk grades was completed for the portfolio as of March 31, 2016 and December 31, 2015.

The following displays collectively-evaluated loans by credit quality indicator.

March 31, 2016
	Pass		Special Mention (Excluding Impaired)		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	11,709	$	3,694	$	---
Construction, other		23,108		---		---
Consumer Real Estate
Equity lines		16,468		33		95
Closed-end first liens		76,645		728		1,729
Closed-end junior liens		5,041		23		130
Investor-owned residential real estate		41,635		30		758
Commercial Real Estate
Multifamily residential real estate		81,296		---		1,791
Commercial real estate owner-occupied		119,319		1,163		1,227
Commercial real estate, other		94,247		57		---
Commercial Non Real Estate
Commercial and Industrial		32,400		234		231
Public Sector and IDA
States and political subdivisions		50,777		---		---
Consumer Non Real Estate
Credit cards		5,808		---		---
Automobile		12,509		75		188
Other consumer		11,241		82		30
Total	$	582,203	$	6,119	$	6,179

The following displays collectively-evaluated loans by credit quality indicator.

December 31, 201 5
	Pass		Special Mention (Excluding Impaired)		Classified (Excluding Impaired)
Real Estate Construction
Construction, 1-4 family residential	$	10,626	$	3,694	$	---
Construction, other		33,213		---		---
Consumer Real Estate
Equity lines		16,236		15		87
Closed-end first liens		78,614		708		1,370
Closed-end junior liens		4,983		55		61
Investor-owned residential real estate		39,616		31		766
Commercial Real Estate
Multifamily residential real estate		77,060		---		1,804
Commercial real estate owner-occupied		121,741		1,165		1,274
Commercial real estate, other		93,701		58		---
Commercial Non Real Estate
Commercial and Industrial		35,652		285		543
Public Sector and IDA
States and political subdivisions		51,335		---		---
Consumer Non Real Estate
Credit cards		5,773		---		---
Automobile		12,414		102		138
Other consumer		11,359		31		28
Total	$	592,323	$	6,144	$	6,071

Sales

Purchases and Reclassification of Loans

The Company finances mortgages under “best efforts” contracts with mortgage purchasers. The mortgages are designated as held for sale upon initiation. There have been no reclassifications from portfolio loans to held for sale. There have been no loans held for sale transferred to portfolio loans. Occasionally, the Company purchases or sells participations in loans. All participation loans purchased met the Company’s normal underwriting standards at the time the participation was entered. Participation loans are included in the appropriate portfolio balances to which the allowance methodology is applied.

Troubled Debt Restructurings

The Company modifies loans in troubled debt restructurings. Total troubled debt restructurings amounted to $12,228 at March 31, 2016, $13,453 at December 31, 2015, and $12,115 at March 31, 2015. The Company did not modify any loans in troubled debt restructures during the three-month period ended March 31, 2016. The following table presents restructurings by class that occurred during the three-month period ended March 31, 2015.

Note: Only classes with restructured loans are presented.

	Restructurings That Occurred During the Three Months Ended March 31, 2015
	Number of Contracts		Pre-Modification Outstanding Principal Balance		Post-Modification Outstanding Principal Balance
Commercial R eal E state
Commercial real estate, owner occupied		1		994		907
Total		1	$	994	$	907

During the three-month period ended March 31, 2015, the Company restructured one loan to provide payment relief

. The restructuring provided payment relief by forgiving principal of $100, capitalizing interest and re-amortizing payments. The fair value measurement of the restructured loan as of March 31, 2015 resulted in no specific allocation to the allowance for loan losses.

The Company analyzed its TDR portfolio for loans that defaulted during the three month periods ended March 31, 2016 and March 31, 2015, and that were modified within 12 months prior to default. The Company defines default as one or more payments that occur more than 90 days past the due date, charge-offs, or foreclosure after the date of restructuring. There were no restructured loans that defaulted that were modified within 12 months prior to default for the three month periods ended March 31, 2016 and 2015.