Loans

9 Months Ended

Sep. 30, 2016

Loans Receivable, Net [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

8. Loans

 

Loans receivable consist of the following:

	September 30, 2016		December 31, 2015
	(In Thousands)
Real Estate:
Secured by 1-4 family residential	$	209,097	$	205,330
Secured by multi-family residential		199,829		167,558
Secured by commercial real estate		843,991		780,870
Construction		177,075		163,877
		1,429,992		1,317,635
Other Loans:
Commercial		456,099		419,349
Home equity and improvement		118,165		116,962
Consumer finance		17,251		16,281
		591,515		552,592
Total loans		2,021,507		1,870,227
Deduct:
Undisbursed loan funds		(94,552)		(66,902)
Net deferred loan origination fees and costs		(1,261)		(1,108)
Allowance for loan loss		(25,923)		(25,382)
Totals	$	1,899,771	$	1,776,835

Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics.

The following table discloses allowance for loan loss activity for the quarter ended September 30, 2016 and 2015 by portfolio segment (In Thousands):

Quarter Ended  September 30, 2016	1-4 Family Residential Real Estate		Multi-Family Residential Real Estate		Commercial Real Estate		Construction		Commercial		Home Equity and Improvement		Consumer Finance		Total
Beginning Allowance	$	2,839	$	2,365	$	10,904	$	633	$	6,740	$	2,278	$	189	$	25,948
Charge-Offs		(111)		0		(79)		0		(26)		(74)		(24)		(314)
Recoveries		3		0		62		0		159		40		10		274
Provisions		(299)		(185)		(280)		(221)		1,006		(47)		41		15
Ending Allowance	$	2,432	$	2,180	$	10,607	$	412	$	7,879	$	2,197	$	216	$	25,923

Quarter Ended  September 30, 2015	1-4 Family Residential Real Estate		Multi-Family Residential Real Estate		Commercial Real Estate		Construction		Commercial		Home Equity and Improvement		Consumer Finance		Total
Beginning Allowance	$	2,877	$	2,269	$	12,096	$	308	$	5,567	$	2,107	$	160	$	25,384
Charge-Offs		(185)		0		(64)		0		(43)		(110)		(5)		(407)
Recoveries		105		0		25		0		42		76		11		259
Provisions		(18)		(25)		96		(69)		(155)		152		(8)		(27)
Ending Allowance	$	2,779	$	2,244	$	12,153	$	239	$	5,411	$	2,225	$	158	$	25,209

The following table discloses allowance for loan loss activity for the year-to-date periods ended September 30, 2016 and September 30, 2015 by portfolio segment and impairment method (In Thousands):

Year-to-date Period Ended September 30, 2016	1-4 Family Residential Real Estate		Multi-Family Residential Real Estate		Commercial Real Estate		Construction		Commercial		Home Equity and Improvement		Consumer		Total
Beginning Allowance	$	3,212	$	2,151	$	11,772	$	517	$	5,255	$	2,304	$	171	$	25,382
Charge-Offs		(203)		0		(92)		0		(381)		(170)		(41)		(887)
Recoveries		123		0		468		0		234		113		58		996
Provisions		(700)		29		(1,541)		(105)		2,771		(50)		28		432
Ending Allowance	$	2,432	$	2,180	$	10,607	$	412	$	7,879	$	2,197	$	216	$	25,923

Year-to-date Period Ended September 30, 2015	1-4 Family Residential Real Estate		Multi- Family Residential Real Estate		Commercial Real Estate		Construction		Commercial		Home Equity and Improvement		Consumer		Total
Beginning Allowance	$	2,494	$	2,453	$	11,268	$	221	$	6,509	$	1,704	$	117	$	24,766
Charge-Offs		(275)		(114)		(250)		0		(68)		(340)		(21)		(1,068)
Recoveries		178		0		789		0		255		156		40		1,418
Provisions		382		(95)		346		18		(1,285)		705		22		93
Ending Allowance	$	2,779	$	2,244	$	12,153	$	239	$	5,411	$	2,225	$	158	$	25,209

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2016 (In Thousands):

	1-4 Family		Multi Family
	Residential		Residential		Commercial						Home Equity		Consumer
	Real Estate		Real Estate		Real Estate		Construction		Commercial		& Improvement		Finance		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	101	$	1	$	89	$	-	$	24	$	39	$	-	$	254
Collectively evaluated for impairment		2,331		2,179		10,518		412		7,855		2,158		216		25,669
Acquired with deteriorated credit quality		-		-		-		-		-		-		-		-
Total ending allowance balance	$	2,432	$	2,180	$	10,607	$	412	$	7,879	$	2,197	$	216	$	25,923
Loans:
Loans individually evaluated for impairment	$	6,767	$	3,580	$	16,885	$	-	$	4,416	$	1,424	$	66	$	33,138
Loans collectively evaluated for impairment		202,600		196,409		829,692		82,254		453,130		117,290		17,186		1,898,561
Loans acquired with deteriorated credit quality		-		-		144		-		12		-		-		156
Total ending loans balance	$	209,367	$	199,989	$	846,721	$	82,254	$	457,558	$	118,714	$	17,252	$	1,931,855

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2015 (In Thousands):

	1-4 Family		Multi Family
	Residential		Residential		Commercial						Home Equity		Consumer
	Real Estate		Real Estate		Real Estate		Construction		Commercial		& Improvement		Finance		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	201	$	-	$	139	$	-	$	63	$	34	$	-	$	437
Collectively evaluated for impairment		3,011		2,151		11,633		517		5,192		2,270		171		24,945
Acquired with deteriorated credit quality		-		-		-		-		-		-		-		-
Total ending allowance balance	$	3,212	$	2,151	$	11,772	$	517	$	5,255	$	2,304	$	171	$	25,382
Loans:
Loans individually evaluated for impairment	$	7,574	$	3,313	$	23,493	$	-	$	6,107	$	1,491	$	71	$	42,049
Loans collectively evaluated for impairment		198,106		164,382		759,281		96,845		414,527		115,977		16,199		1,765,317
Loans acquired with deteriorated credit quality		-		-		153		-		16		-		-		169
Total ending loans balance	$	205,680	$	167,695	$	782,927	$	96,845	$	420,650	$	117,468	$	16,270	$	1,807,535

The following table presents the average balance, interest income recognized and cash basis income recognized on impaired loans by class of loans (In Thousands):

	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
	Average Balance		Interest Income Recognized		Cash Basis Income Recognized		Average Balance		Interest Income Recognized		Cash Basis Income Recognized
Residential Owner Occupied	$	3,876	$	34	$	33	$	3,892	$	109	$	106
Residential Non Owner Occupied		2,935		29		29		3,234		95		94
Total Residential Real Estate		6,811		63		62		7,126		204		200
Construction		-		-		-		-		-		-
Multi-Family		3,607		14		14		4,087		68		68
CRE Owner Occupied		7,171		30		30		7,810		134		115
CRE Non Owner Occupied		6,341		73		73		5,220		178		175
Agriculture Land		1,851		16		2		2,427		66		16
Other CRE		1,570		13		13		1,556		31		31
Total Commercial Real Estate		16,933		132		118		17,013		409		337
Commercial Working Capital		2,259		26		11		1,769		56		33
Commercial Other		2,198		8		7		2,742		36		34
Total Commercial		4,457		34		18		4,511		92		67
Home Equity and Home Improvement		1,446		12		12		1,631		40		40
Consumer Finance		65		1		1		69		3		3
Total Impaired Loans	$	33,319	$	256	$	225	$	34,437	$	816	$	715

The following table presents the average balance, interest income recognized and cash basis income recognized on impaired loans by class of loans (In Thousands):

	Three Months Ended September 30, 2015						Nine Months Ended September 30, 2015
	Average Balance		Interest Income Recognized		Cash Basis Income Recognized		Average Balance		Interest Income Recognized		Cash Basis Income Recognized
Residential Owner Occupied	$	5,750	$	67	$	66	$	5,854	$	203	$	201
Residential Non Owner Occupied		3,762		38		38		4,045		117		117
Total Residential Real Estate		9,512		105		104		9,899		320		318
Construction		-		-		-		50		2		2
Multi-Family		3,168		12		11		2,680		25		25
CRE Owner Occupied		6,475		39		39		6,566		117		117
CRE Non Owner Occupied		2,696		29		29		7,445		273		273
Agriculture Land		2,236		21		2		1,741		53		30
Other CRE		1,509		5		5		2,023		31		30
Total Commercial Real Estate		12,916		94		75		17,775		474		450
Commercial Working Capital		1,030		11		11		1,478		38		36
Commercial Other		2,989		7		6		3,483		33		41
Total Commercial		4,019		18		17		4,961		71		77
Home Equity and Home Improvement		2,160		19		19		2,257		60		60
Consumer Finance		58		1		2		55		2		3
Total Impaired Loans	$	31,833	$	249	$	228	$	37,677	$	954	$	935

The following table presents loans individually evaluated for impairment by class of loans (In Thousands):

	September 30, 2016						December 31, 2015
	Unpaid Principal Balance*		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance*		Recorded Investment		Allowance for Loan Losses Allocated
With no allowance recorded:
Residential Owner Occupied	$	1,591	$	1,569	$	-	$	1,383	$	1,360	$	-
Residential Non Owner Occupied		2,486		2,478		-		2,147		2,141		-
Total 1-4 Family Residential Real Estate		4,077		4,047		-		3,530		3,501		-
Multi-Family Residential Real Estate		3,675		3,525		-		3,463		3,313		-
CRE Owner Occupied		5,646		5,331		-		4,869		4,520		-
CRE Non Owner Occupied		6,373		5,940		-		7,932		7,685		-
Agriculture Land		1,841		1,884		-		3,546		3,596		-
Other CRE		1,256		1,152		-		4,076		4,046		-
Total Commercial Real Estate		15,116		14,307		-		20,423		19,847		-
Construction		-		-		-		-		-		-
Commercial Working Capital		2,176		2,162		-		1,644		1,648		-
Commercial Other		2,005		1,917		-		3,573		3,607		-
Total Commercial		4,181		4,079		-		5,217		5,255		-
Home Equity and Home Improvement		716		670		-		817		772		-
Consumer Finance		59		59		-		60		59		-
Total loans with no allowance recorded	$	27,824	$	26,687	$	-	$	33,510	$	32,747	$	-
With an allowance recorded:
Residential Owner Occupied	$	2,340	$	2,313	$	93	$	2,918	$	2,837	$	188
Residential Non Owner Occupied		415		407		8		1,231		1,236		13
Total 1-4 Family Residential Real Estate		2,755		2,720		101		4,149		4,073		201
Multi-Family Residential Real Estate		54		55		1		-		-		-
CRE Owner Occupied		2,261		1,791		79		3,250		2,767		132
CRE Non Owner Occupied		340		341		4		385		308		2
Agriculture Land		46		47		1		68		69		2
Other CRE		822		399		5		926		502		3
Total Commercial Real Estate		3,469		2,578		89		4,629		3,646		139
Construction		-		-		-		-		-		-
Commercial Working Capital		107		107		2		594		596		62
Commercial Other		367		230		22		252		256		1
Total Commercial		474		337		24		846		852		63
Home Equity and Home Improvement		788		754		39		724		719		34
Consumer Finance		8		7		-		12		12		-
Total loans with an allowance recorded	$	7,548	$	6,451	$	254	$	10,360	$	9,302	$	437

* Presented gross of charge offs

The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned on the dates indicated: 

	September 30, 2016		December 31, 2015
	(In Thousands)
Non-accrual loans	$	18,198	$	16,261
Loans over 90 days past due and still accruing		-		-
Total non-performing loans		18,198		16,261
Real estate and other assets held for sale		704		1,321
Total non-performing assets	$	18,902	$	17,582
Troubled debt restructuring, still accruing	$	9,113	$	11,178

The following table presents the aging of the recorded investment in past due and non accrual loans as of September 30, 2016 by class of loans (In Thousands):

	Current		30-59 days		60-89 days		90+ days		Total Past Due		Total Non Accrual
Residential Owner Occupied	$	141,829	$	30	$	573	$	847	$	1,450	$	1,834
Residential Non Owner Occupied		65,410		481		78		119		678		1,081
Total 1-4 Family Residential Real Estate		207,239		511		651		966		2,128		2,915
Multi-Family Residential Real Estate		199,989		-		-		-		-		2,713
CRE Owner Occupied		348,245		134		1,128		1,678		2,940		4,972
CRE Non Owner Occupied		331,569		158		488		272		918		1,753
Agriculture Land		107,249		53		-		-		53		857
Other Commercial Real Estate		55,498		-		-		249		249		1,004
Total Commercial Real Estate		842,561		345		1,616		2,199		4,160		8,586
Construction		82,254		-		-		-		-		-
Commercial Working Capital		202,496		-		790		39		829		1,207
Commercial Other		252,800		188		17		1,228		1,433		2,059
Total Commercial		455,296		188		807		1,267		2,262		3,266
Home Equity/Home Improvement		117,737		657		162		158		977		719
Consumer Finance		17,057		131		64		-		195		13
Total Loans	$	1,922,133	$	1,832	$	3,300	$	4,590	$	9,722	$	18,212

The following table presents the aging of the recorded investment in past due and non accrual loans as of December 31, 2015 by class of loans (In Thousands):

	Current		30-59 days		60-89 days		90+ days		Total Past Due		Total Non Accrual
Residential Owner Occupied	$	138,974	$	159	$	673	$	391	$	1,223	$	1,428
Residential Non Owner Occupied		64,577		324		356		226		906		1,179
Total 1-4 Family Residential Real Estate		203,551		483		1,029		617		2,129		2,607
Multi-Family Residential Real Estate		165,671		-		-		2,024		2,024		2,417
CRE Owner Occupied		322,940		772		1,218		1,266		3,256		4,141
CRE Non Owner Occupied		304,166		-		106		538		644		1,229
Agriculture Land		98,055		57		-		-		57		695
Other Commercial Real Estate		53,494		-		-		315		315		1,364
Total Commercial Real Estate		778,655		829		1,324		2,119		4,272		7,429
Construction		96,845		-		-		-		-		-
Commercial Working Capital		168,938		16		-		154		170		251
Commercial Other		249,070		203		46		2,223		2,472		2,833
Total Commercial		418,008		219		46		2,377		2,642		3,084
Home Equity and Home Improvement		116,599		733		92		44		869		689
Consumer Finance		16,216		27		3		24		54		36
Total Loans	$	1,795,545	$	2,291	$	2,494	$	7,205	$	11,990	$	16,262

Troubled Debt Restructurings

As of September 30, 2016 and December 31, 2015, the Company had a recorded investment in troubled debt restructurings (“TDRs”) of $14.7 million and $17.6 million, respectively. The Company allocated $254,000 and $335,000 of specific reserves to those loans at September 30, 2016 and December 31, 2015, and has committed to lend additional amounts totaling up to $10,000 and $48,000 at September 30, 2016 and December 31, 2015, respectively.

The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Each TDR is uniquely designed to meet the specific needs of the borrower. Commercial and industrial loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral or an additional guarantor is often requested when granting a concession. Commercial mortgage loans modified in a TDR often involve temporary interest-only payments, re-amortization of remaining debt in order to lower payments, and sometimes reducing the interest rate lower than the current market rate. Residential mortgage loans modified in a TDR are comprised of loans where monthly payments are lowered, either through interest rate reductions or principal only payments for a period of time, to accommodate the borrowers’ financial needs, interest is capitalized into principal, or the term and amortization are extended. Home equity modifications are made infrequently and usually involve providing an interest rate that is lower than the borrower would be able to obtain due to credit issues. All retail loans where the borrower is in bankruptcy are classified as TDRs regardless of whether or not a concession is made.

Of the loans modified in a TDR, $5.5 million are on non-accrual status and partial charge-offs have in some cases been taken against the outstanding balance. Loans modified as a TDR may have the financial effect of increasing the allowance associated with the loan. If the loan is determined to be collateral dependent, the estimated fair value of the collateral, less any selling costs is used to determine if there is a need for a specific allowance or charge-off. If the loan is determined to be cash flow dependent, the allowance is measured based on the present value of expected future cash flows discounted at the loan’s pre-modification effective interest rate.

The following table presents loans by class modified as troubled debt restructurings that occurred during the three and nine month periods ending September 30, 2016 and September 30, 2015:

	Loans Modified as a TDR for the Three Months Ended September 30, 2016 ($ in thousands)				Loans Modified as a TDR for the Nine Months Ended September 30, 2016 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
1-4 Family Owner Occupied		5	$	86		10	$	208
1-4 Family Non Owner Occupied		1		8		3		128
Multi Family		0		-		1		54
CRE Owner Occupied		0		-		0		-
CRE Non Owner Occupied		2		215		4		870
Agriculture Land		1		46		1		46
Other CRE		0		-		0		-
Commercial Working Capital		0		-		1		226
Commercial Other		0		-		1		590
Home Equity and Improvement		4		52		8		340
Consumer Finance		1		13		2		16
Total		14	$	420		31	$	2,478

The loans described above increased the ALLL by $31,000 in the three month period ending September 30, 2016 and decreased the ALLL by $9,000 in the nine month period ending September 30, 2016.

	Loans Modified as a TDR for the Three Months Ended September 30, 2015 ($ in thousands)				Loans Modified as a TDR for the Nine Months Ended September 30, 2015 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
1-4 Family Owner Occupied		0	$	-		3	$	226
1-4 Family Non Owner Occupied		0		-		4		63
CRE Owner Occupied		1		72		2		632
CRE Non Owner Occupied		0		-		2		252
Agriculture Land		0		-		3		1,552
Other CRE		0		-		0		-
Commercial Working Capital		2		114		4		119
Commercial Other		1		19		2		73
Home Equity and Improvement		4		114		11		217
Consumer Finance		2		2		6		37
Total		10	$	321		37	$	3,171

The loans described above decreased the ALLL by $3,000 in the three month period ending September 30, 2015 and $23,000 in the nine month period ending September 30, 2015.

Of the 2016 modifications, 10 were made TDRs due to the fact that the borrower has been in bankruptcy, 1 was made a TDR due to an interest only period, 6 were made TDRs due to extending the maturity, 4 were made TDRs due to advancing funds to a watchlist credit, 1 was to term out a line of credit and 9 were made to refinance current debt for payment relief.

The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three and nine month periods ended September 30, 2016 and September 30, 2015:

	Three Months Ended September 30, 2016 ($ in thousands)				Nine Months Ended September 30, 2016 ($ in thousands)
Troubled Debt Restructurings That Subsequently Defaulted	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
1-4 Family Owner Occupied		1	$	190		1	$	190
1-4 Family Non Owner Occupied		0		-		0		-
CRE Owner Occupied		0		-		0		-
CRE Non Owner Occupied		0		-		1		11
Agriculture Land		0		-		0		-
Other CRE		0		-		0		-
Commercial Working Capital or Other		0		-		0		-
Commercial Other		0		-		0		-
Home Equity and Improvement		0		-		0		-
Consumer Finance		0		-		0		-
Total		1	$	190		2	$	201

The TDRs that subsequently defaulted described above had no effect on the allowance for loan losses for the three and nine month periods ended September 30, 2016.

	Three Months Ended September 30, 2015 ($ in thousands)				Nine Months Ended September 30, 2015 ($ in thousands)
Troubled Debt Restructurings That Subsequently Defaulted	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
1-4 Family Owner Occupied		0	$	-		0	$	-
1-4 Family Non Owner Occupied		0		-		1		105
CRE Owner Occupied		0		-		0		-
CRE Non Owner Occupied		0		-		0		-
Agriculture Land		0		-		0		-
Other CRE		0		-		0		-
Commercial Working Capital or Other		1		120		1		120
Commercial Other		5		1,829		5		1,829
Home Equity and Improvement		0		-		1		22
Consumer Finance		0		-		0		-
Total		6	$	1,949		8	$	2,076

The TDRs that subsequently defaulted described above had no effect on the allowance for loan losses for the three and nine month periods ended September 30, 2015.

The terms of certain other loans were modified during the period ending September 30, 2016 that did not meet the definition of a TDR. The modification of these loans involved a modification of the terms of a loan to borrowers who were not experiencing financial difficulties. A total of 81 loans were modified under this definition during the three month period ended September 30, 2016 and a total of 284 loans were modified under this definition during the nine month period ended September 30, 2016.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification.

Credit Quality Indicators

Loans are categorized 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, among other factors. Loans are analyzed individually by classifying the loans as to credit risk. This analysis includes all non-homogeneous loans, such as commercial and commercial real estate loans and certain homogenous mortgage, home equity and consumer loans. This analysis is performed on a quarterly basis. First Defiance uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a 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.

Not Graded. Loans classified as not graded are generally smaller balance residential real estate, home equity and consumer installment loans which are originated primarily by using an automated underwriting system. These loans are monitored based on their delinquency status and are evaluated individually only if they are seriously delinquent.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (In Thousands):

Class	Pass		Special Mention		Substandard		Doubtful		Not Graded		Total
1-4 Family Owner Occupied	$	5,585	$	286	$	1,637	$	-	$	135,771	$	143,279
1-4 Family Non Owner Occupied		57,485		926		3,581		-		4,096		66,088
Total 1-4 Family Real Estate		63,070		1,212		5,218		-		139,867		209,367
Multi-Family Residential Real Estate		195,606		310		3,958		-		115		199,989
CRE Owner Occupied		319,942		23,239		7,564		-		440		351,185
CRE Non Owner Occupied		325,109		1,016		6,355		-		6		332,486
Agriculture Land		102,228		2,869		2,206		-		-		107,303
Other CRE		52,585		-		2,420		-		742		55,747
Total Commercial Real Estate		799,864		27,124		18,545		-		1,188		846,721
Construction		63,927		-		-		-		18,327		82,254
Commercial Working Capital		189,208		11,509		2,608		-		-		203,325
Commercial Other		244,846		6,579		2,808		-		-		254,233
Total Commercial		434,054		18,088		5,416		-		-		457,558
Home Equity and Home Improvement		-		-		691		-		118,023		118,714
Consumer Finance		-		-		13		-		17,239		17,252
Total Loans	$	1,556,521	$	46,734	$	33,841	$	-	$	294,759	$	1,931,855

As of December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (In Thousands):

Class	Pass		Special Mention		Substandard		Doubtful		Not Graded		Total
Residential Owner Occupied	$	5,828	$	123	$	2,427	$	-	$	131,820	$	140,198
Residential Non Owner Occupied		55,169		1,420		4,439		-		4,454		65,482
Total 1-4 Family Real Estate		60,997		1,543		6,866		-		136,274		205,680
Multi-Family Residential Real Estate		163,405		498		3,675		-		117		167,695
CRE Owner Occupied		297,856		17,896		9,730		-		714		326,196
CRE Non Owner Occupied		293,057		2,143		9,595		-		15		304,810
Agriculture Land		92,262		1,947		3,903		-		-		98,112
Other CRE		47,109		469		5,739		-		492		53,809
Total Commercial Real Estate		730,284		22,455		28,967		-		1,221		782,927
Construction		76,152		2,159		-		-		18,534		96,845
Commercial Working Capital		163,071		2,497		3,540		-		-		169,108
Commercial Other		243,308		2,706		5,528		-		-		251,542
Total Commercial		406,379		5,203		9,068		-		-		420,650
Home Equity and Home Improvement		-		-		689		-		116,779		117,468
Consumer Finance		-		-		15		-		16,255		16,270
Total Loans	$	1,437,217	$	31,858	$	49,280	$	-	$	289,180	$	1,807,535

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $142,000 as of September 30, 2016.