XML 25 R13.htm IDEA: XBRL DOCUMENT v3.19.2
Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Allowance for Loan Losses
Note 5. Allowance for Loan Losses
The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans and other relevant factors.
The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated.
 
  Three months ended
June 30,		  Six months ended
June 30,		 
  
2019
  2018  
2019
  2018 
  
(in thousands)
 
Allowance for loan losses, beginning of period
 
$
28,848
  $26,695  
$
28,543
  $26,255 
Loans charged off
  
(75
) 
  (72)   
(218
) 
  (159) 
Recoveries on loans previously
charged-off
  
47
   71   
120
   148 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net recoveries (charge-offs)
  
(28
) 
  (1)   
(98
) 
  (11) 
Provision charged to expense
  
250
   450   
625
   900 
  
 
 
  
 
 
  
 
 
  
 
 
 
Allowance for loan losses, end of period
 
$
29,070
  $27,144  
$
29,070
  $27,144 
  
 
 
  
 
 
  
 
 
  
 
 
 
Further information pertaining to the allowance for loan losses for the three months ending June 30, 2019 follows:
 
  
Construction
and Land
Development
  
Commercial
and
Industrial
  
Municipal
  
Commercial
Real Estate
  
Residential
Real
Estate
  
Consumer
  
Home
Equity
  
Unallocated
  
Total
 
  
(in thousands)
 
Allowance for loan losses:
    
Balance at March 31, 2019
 
$
1,011
  
$
11,156
  
$
1,998
  
$
10,767
  
$
2,135
  
$
342
  
$
1,101
  
$
338
  
$
28,848
 
Charge-offs
  
—  
   
(8
) 
  
—  
   
—  
   
—  
   
(67
) 
  
—  
   
—  
   
(75
) 
Recoveries
  
—  
   
7
   
—  
   
—  
   
—  
   
40
   
—  
   
—  
   
47
 
Provision
  
41
   
183
   
(166
) 
  
81
   
75
   
65
   
19
   
(48
) 
  
250
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance at June 30, 2019
 
$
1,052
  
$
11,338
  
$
1,832
  
$
10,848
  
$
2,210
  
$
380
  
$
1,120
  
$
290
  
$
29,070
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans deemed to be impaired
 
$
—  
  
$
248
  
$
—  
  
$
85
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
333
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans not deemed to be impaired
 
$
1,052
  
$
11,090
  
$
1,832
  
$
10,763
  
$
2,210
  
$
380
  
$
1,120
  
$
290
  
$
28,737
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans:
                                    
Ending balance
 
$
13,751
  
$
764,492
  
$
95,682
  
$
758,242
  
$
346,585
  
$
22,609
  
$
311,210
  
$
—  
  
$
2,312,571
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans deemed to be impaired
 
$
—  
  
$
548
  
$
—  
  
$
3,365
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
3,913
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans not deemed to be impaired
 
$
13,751
  
$
763,944
  
$
95,682
  
$
754,877
  
$
346,585
  
$
22,609
  
$
311,210
  
$
—  
  
$
2,308,658
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Further information pertaining to the allowance for loan losses for the six months ending June 30, 2019 follows:
 
  
Construction
and Land
Development
  
Commercial
and
Industrial
  
Municipal
  
Commercial
Real Estate
  
Residential
Real
Estate
  
Consumer
  
Home
Equity
  
Unallocated
  
Total
 
  
(in thousands)
 
Allowance for loan losses:
    
Balance at December 31, 2018
 
$
1,092
  
$
10,998
  
$
1,838
  
$
10,663
  
$
2,190
  
$
365
  
$
1,111
  
$
286
  
$
28,543
 
Charge-offs
  
—  
   
(51
) 
  
—  
   
—  
   
—  
   
(167
) 
  
—  
   
—  
   
(218
) 
Recoveries
  
—  
   
25
   
—  
   
—  
   
—  
   
95
   
—  
   
—  
   
120
 
Provision
  
(40
) 
  
366
   
(6
) 
  
185
   
20
   
87
   
9
   
4
   
625
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance at June 30, 2019
 
$
1,052
  
$
11,338
  
$
1,832
  
$
10,848
  
$
2,210
  
$
380
  
$
1,120
  
$
290
  
$
29,070
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans deemed to be impaired
 
$
—  
  
$
248
  
$
—  
  
$
85
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
333
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans not deemed to be impaired
 
$
1,052
  
$
11,090
  
$
1,832
  
$
10,763
  
$
2,210
  
$
380
  
$
1,120
  
$
290
  
$
28,737
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans:
                                    
Ending balance
 
$
13,751
  
$
764,492
  
$
95,682
  
$
758,242
  
$
346,585
  
$
22,609
  
$
311,210
  
$
—  
  
$
2,312,571
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans deemed to be impaired
 
$
—  
  
$
548
  
$
—  
  
$
3,365
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
3,913
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans not deemed to be impaired
 
$
13,751
  
$
763,944
  
$
95,682
  
$
754,877
  
$
346,585
  
$
22,609
  
$
311,210
  
$
—  
  
$
2,308,658
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Further information pertaining to the allowance for loan losses for the three months ending June 30, 2018 follows:
 
  Construction
and Land
Development		  Commercial
and
Industrial		  Municipal  Commercial
Real Estate		  Residential
Real Estate		  Consumer  Home
Equity		  Unallocated  Total 
  (in thousands) 
Allowance for loan losses:
    
Balance at March 31, 2018
 $1,438  $9,664  $1,720  $9,787  $2,459  $321  $1,067  $239  $26,695 
Charge-offs
  —     —     —     —     —     (72)   —     —     (72) 
Recoveries
  —     10   —     —     —     61   —     —     71 
Provision
  (805)   710   (16)   422   34   26   11   68   450 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance at June 30, 2018
 $633  $10,384  $1,704  $10,209  $2,493  $336  $1,078  $307  $27,144 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans deemed to be impaired
 $—    $47  $—    $91  $575  $—    $—    $—    $713 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans not deemed to be impaired
 $633  $10,337  $1,704  $10,118  $1,918  $336  $1,078  $307  $26,431 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans:
                                    
Ending balance
 $7,729  $761,467  $103,027  $735,083  $316,248  $21,662  $276,397  $—    $2,221,613 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans deemed to be impaired
 $—    $592  $—    $2,505  $2,675  $—    $—    $—    $5,772 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans not deemed to be impaired
 $7,729  $760,875  $103,027  $732,578  $313,573  $21,662  $276,397  $—    $2,215,841 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Further information pertaining to the allowance for loan losses for the six months ending June 30, 2018 follows:
 
  Construction
and Land
Development		  Commercial
and
Industrial		  Municipal  Commercial
Real Estate		  Residential
Real Estate		  Consumer  Home
Equity		  Unallocated  Total 
  (in thousands) 
Allowance for loan losses:
    
Balance at December 31, 2107
 $1,645  $9,651  $1,720  $9,728  $1,873  $373  $989  $276  $26,255 
Charge-offs
  —     (5)   —     —     —     (154)   —     —     (159) 
Recoveries
  —     33   —     —     —     115   —     —     148 
Provision
  (1,012)   705   (16)   481   620   2   89   31   900 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Ending balance at June 30, 2018
 $633  $10,384  $1,704  $10,209  $2,493  $336  $1,078  $307  $27,144 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans deemed to be impaired
 $—    $47  $—    $91  $575  $—    $—    $—    $713 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Amount of allowance for loan losses for loans not deemed to be impaired
 $633  $10,337  $1,704  $10,118  $1,918  $336  $1,078  $307  $26,431 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans:
                                    
Ending balance
 $7,729  $761,467  $103,027  $735,083  $316,248  $21,662  $276,397  $—    $2,221,613 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans deemed to be impaired
 $—    $592  $—    $2,505  $2,675  $—    $—    $—    $5,772 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Loans not deemed to be impaired
 $7,729  $760,875  $103,027  $732,578  $313,573  $21,662  $276,397  $—    $2,215,841 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
The Company utilizes a six grade internal loan rating system for commercial real estate, construction and commercial loans as follows:
Loans rated
1-3
(Pass):
Loans in this category are considered “pass” rated loans with low to average risk.
Loans rated 4 (Monitor):
These loans represent classified loans that management is closely monitoring for credit quality. These loans have had or may have minor credit quality deterioration as of June 30, 2019 and December 31, 2018.
Loans rated 5 (Substandard):
Substandard loans represent classified loans that management is closely monitoring for credit quality. These loans have had more significant credit quality deterioration as of June 30, 2019 and December 31, 2018.
Loans rated 6 (Doubtful):
Doubtful loans represent classified loans that management is closely monitoring for credit quality. These loans had more significant credit quality deterioration as of June 30, 2019 and December 31, 2018 and are doubtful for full collection.
Impaired:
Impaired loans represent classified loans that management is closely monitoring for credit quality. A loan is classified as impaired when it is probable that the Company will be unable to collect all amounts due.
The following table presents the Company’s loans by risk rating at June 30, 2019.
 
  
Construction
and Land
Development
  
Commercial
and
Industrial
  
Municipal
  
Commercial
Real Estate
 
  
(in thousands)
 
Grade:
    
1-3
(Pass)
 
$
13,751
  
$
759,919
  
$
95,682
  
$
730,131
 
4 (Monitor)
  
—  
   
4,025
   
—  
   
24,746
 
5 (Substandard)
  
—  
   
—  
   
—  
   
—  
 
6 (Doubtful)
  
—  
   
—  
   
—  
   
—  
 
Impaired
  
—  
   
548
   
—  
   
3,365
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 
$
13,751
  
$
764,492
  
$
95,682
  
$
758,242
 
  
 
 
  
 
 
  
 
 
  
 
 
 
The following table presents the Company’s loans by risk rating at December 31, 2018.
 
  Construction
and Land
Development		  Commercial
and
Industrial		  Municipal  Commercial
Real Estate		 
  (in thousands) 
Grade:
    
1-3
(Pass)
 $13,628  $757,089  $97,290  $723,170 
4 (Monitor)
  —     4,135   —     24,542 
5 (Substandard)
  —     —     —     —   
6 (Doubtful)
  —     —     —     —   
Impaired
  —     401   —     2,650 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $13,628  $761,625  $97,290  $750,362 
  
 
 
  
 
 
  
 
 
  
 
 
 
Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at June 30, 2019 and are included within the total loan portfolio.
 
  
Commercial
and
Industrial
  
Municipal
  
Commercial
Real
Estate
  
Total
 
  
(in thousands)
 
Credit Rating:
    
Aaa – Aa3
 
$
482,138
  
$
53,532
  
$
41,016
  
$
576,686
 
A1 – A3
  
188,195
   
7,480
   
150,687
   
346,362
 
Baa1 – Baa3
  
—  
   
26,970
   
120,048
   
147,018
 
Ba2
  
—  
   
5,900
   
—  
   
5,900
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 
$
670,333
  
$
93,882
  
$
311,751
  
$
1,075,966
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at December 31, 2018.
 
  
Commercial
and
Industrial
  
Municipal
  
Commercial
Real
Estate
  
Total
 
  
(in thousands)
 
Credit Rating:
    
Aaa – Aa3
 $491,247  $54,105  $42,790  $588,142 
A1 – A3
  172,472   7,605   151,381   331,458 
Baa1 – Baa3
  —     26,970   118,197   145,167 
Ba2
  —     6,810   —     6,810 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $663,719  $95,490  $312,368  $1,071,577 
  
 
 
  
 
 
  
 
 
  
 
 
 
The Company utilized payment performance as credit quality indicators for the loan types listed below. The indicators are depicted in the table “aging of past due loans,” below.
Further information pertaining to the allowance for loan losses at June 30, 2019 follows:
 
  
Accruing
30-89

Days
Past Due
  
Non
Accrual
  
Accruing
Greater
than
90 Days
  
Total
Past
Due
  
Current
Loans
  
Total
 
  
(in thousands)
 
Construction and land development
 
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
13,751
  
$
13,751
 
Commercial and industrial
  
173
   
258
   
—  
   
431
   
764,061
   
764,492
 
Municipal
  
—  
   
—  
   
—  
   
—  
   
95,682
   
95,682
 
Commercial real estate
  
158
   
1,140
   
—  
   
1,298
   
756,944
   
758,242
 
Residential real estate
  
1,906
   
518
   
—  
   
2,424
   
344,161
   
346,585
 
Consumer and overdrafts
  
7
   
2
   
—  
   
9
   
22,600
   
22,609
 
Home equity
  
1,239
   
981
   
—  
   
2,220
   
308,990
   
311,210
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 
$
3,483
  
$
2,899
  
$
—  
  
$
6,382
  
$
2,306,189
  
$
2,312,571
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Further information pertaining to the allowance for loan losses at December 31, 2018 follows:
 
  
Accruing
30-89 Days

Past Due
  
Non
Accrual
  
Accruing
Greater
than
90 Days
  
Total
Past
Due
  
Current
Loans
  
Total
 
  
(in thousands)
 
Construction and land development
 $—    $—    $—    $—    $13,628  $13,628 
Commercial and industrial
  187   115   —     302   761,323   761,625 
Municipal
  —     —     —     —     97,290   97,290 
Commercial real estate
  774   190   —     964   749,398   750,362 
Residential real estate
  2,554   569   —     3,123   345,127   348,250 
Consumer and overdrafts
  24   14   —     38   22,045   22,083 
Home equity
  1,108   425   —     1,533   290,807   292,340 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $4,647  $1,313  $—    $5,960  $2,279,618  $2,285,578 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Impaired loans
A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company measures impairment based on a loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans are
charged-off
when management believes that the collectability of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectability of the loan’s principal is not probable include: the delinquency status of the loan, the fair value of the collateral, if secured, and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is
charged-off
against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. The Company’s policy for recognizing interest income on impaired loans is contained within Note 1 of the consolidated financial statements contained in the Company’s Annual Report for the fiscal year ended December 31, 2018.
 
The following is information pertaining to impaired loans for June 30, 2019:
 
  
Carrying
Value
  
Unpaid
Principal
Balance
  
Required
Reserve
  
Average
Carrying
Value
for 3 Months
Ending
6/30/19
  
Interest
Income
Recognized
for 3 Months
Ending
6/30/19
  
Average
Carrying
Value
for 6 Months
Ending
6/30/19
  
Interest
Income
Recognized
for 6 Months
Ending
6/30/19
 
  
(in thousands)
 
With no required reserve recorded:
            
Construction and land development
 
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
 
Commercial and industrial
  
78
   
283
   
—  
   
83
   
1
   
84
   
2
 
Municipal
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Commercial real estate
  
1,441
   
1,585
   
—  
   
812
   
5
   
545
   
11
 
Residential real estate
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Consumer
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Home equity
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Total
 
$
1,519
  
$
1,868
  
$
—  
  
$
895
  
$
6
  
$
629
  
$
13
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
With required reserve recorded:
                            
Construction and land development
 
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
 
Commercial and industrial
  
470
   
470
   
248
   
349
   
3
   
317
   
6
 
Municipal
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Commercial real estate
  
1,924
   
1,924
   
85
   
2,213
   
17
   
2,409
   
34
 
Residential real estate
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Consumer
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Home equity
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Total
 
$
2,394
  
$
2,394
  
$
333
  
$
2,562
  
$
20
  
$
2,726
  
$
40
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total:
                            
Construction and land development
 
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
  
$
—  
 
Commercial and industrial
  
548
   
753
   
248
   
432
   
4
   
401
   
8
 
Municipal
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Commercial real estate
  
3,365
   
3,509
   
85
   
3,025
   
22
   
2,954
   
45
 
Residential real estate
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Consumer
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Home equity
  
—  
   
—  
   
—  
   
—  
   
—  
   
—  
   
—  
 
Total
 
$
3,913
  
$
4,262
  
$
333
  
$
3,457
  
$
26
  
$
3,355
  
$
53
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
 
The following is information pertaining to impaired loans for June 30, 2018:
 
  Carrying
Value		  Unpaid
Principal
Balance		  Required
Reserve		  Average
Carrying
Value
for 3 Months
Ending
6/30/18		  Interest
Income
Recognized
for 3 Months
Ending
6/30/18		  Average
Carrying
Value
for 6 Months
Ending
6/30/18		  Interest
Income
Recognized
for 6 Months
Ending
6/30/18		 
  (in thousands) 
With no required reserve recorded:
    
Construction and land development
 $—    $—    $—    $—    $—    $—    $—   
Commercial and industrial
  162   366   —     170   —     170   —   
Municipal
  —     —     —     —     —     —     —   
Commercial real estate
  524   658   —     528   —     534   —   
Residential real estate
  —     —     —     —     —     —     —   
Consumer
  —     —     —     —     —     —     —   
Home equity
  —     —     —     —     —     —     —   
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $686  $1,024  $—    $698  $—    $704  $—   
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
With required reserve recorded:
                            
Construction and land development
 $—    $—    $—    $—    $—    $—    $—   
Commercial and industrial
  430   430   47   431   7   433   12 
Municipal
  —     —     —     —     —     —     —   
Commercial real estate
  1,981   1,981   91   1,985   40   1,992   63 
Residential real estate
  2,675   2,675   575   2,675   10   2,675   16 
Consumer
  —     —     —     —     —     —     —   
Home equity
  —     —     —     —     —     —     —   
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $5,086  $5,086  $713  $5,091  $57  $5,100  $91 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total:
                            
Construction and land development
 $—    $—    $—    $—    $—    $—    $—   
Commercial and industrial
  592   796   47   601   7   603   12 
Municipal
  —     —     —     —     —     —     —   
Commercial real estate
  2,505   2,639   91   2,513   40   2,526   63 
Residential real estate
  2,675   2,675   575   2,675   10   2,675   16 
Consumer
  —     —     —     —     —     —     —   
Home equity
  —     —     —     —     —     —     —   
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Total
 $5,772  $6,110  $713  $5,789  $57  $5,804  $91 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Troubled debt restructurings are identified as a modification in which a concession was granted to a customer who was having financial difficulties. This concession may be below market rate, longer amortization/term, or a lower payment amount. The present value calculation of the modification did not result in an increase in the allowance for these loans beyond any previously established allocations.
There was no troubled debt restructuring that occurred during the six month period ended June 30, 2019. Also, there were no commitments to lend additional funds to troubled debt restructuring borrowers. There were no troubled debt restructurings that subsequently defaulted during the first six months of 2019.
There was one residential real estate loan and one consumer loan that were modified and considered troubled debt restructurings during the first quarter of 2018. The loans were modified by reducing the interest rates as well as extending the terms on both loans. The
pre-modification
and post-modification outstanding recorded investment was $2,675,000 for the residential real estate loan that was not accruing interest and had a specific reserve of $575,000. The
pre-modification
and post-modification outstanding recorded investment was $17,000 for the consumer loan that was accruing and had a specific reserve of $1,000. The financial impact for the modifications was not material. There were no troubled debt restructurings that subsequently defaulted during the first six months of 2018.